FFD Financial Corp. (FFDF, Financial) filed Quarterly Report for the period ended 2008-12-31.
FFD Financial Corporation is a savings and loan holding company which owns all of the issued and outstanding common shares of First Federal Savings Bank of Dover now known as First Federal Community Bank a federal savings bank. FFD Financial Corp. has a market cap of $11.08 million; its shares were traded at around $10.42 with a P/E ratio of 10.8 and P/S ratio of 0.89. The dividend yield of FFD Financial Corp. stocks is 6.58%. FFD Financial Corp. had an annual average earning growth of 11.8% over the past 5 years.
$2.2 million, or 1.4%, from the June 30, 2008 total. During the period, the
Corporation originated $34.1 million of loans, which were substantially offset
by principal repayments of $31.5 million. During the six-month period ended
December 31, 2008, loan originations were comprised of $21.5 million of one- to
four-family residential real estate loans, $9.6 million of nonresidential real
estate loans, $1.6 million of consumer loans, $1.1 million of commercial loans,
and $400,000 of multifamily real estate loans. Nonresidential real estate and
commercial lending have historically demonstrated a higher degree of risk than
one- to four-family residential real estate lending due to the relatively
larger loan amounts and the effects of general economic conditions on the
successful operation of income-producing properties and businesses. The
Corporation endeavors to reduce this risk by evaluating the credit history and
past performance of the borrower, the location of the real estate, the quality
of the management operating the property or business, the debt service ratio,
the quality and characteristics of the income stream generated by the property
or business and appraisals supporting the real estate or collateral valuation.
To further reduce risk, First Federal has not and does not originate sub-prime
real estate loans.
Shareholders' equity totaled $17.9 million at December 31, 2008, a decrease of
$307,000, or 1.7%, over June 30, 2008. The decrease was due primarily the
purchase of 65,833 treasury shares for $794,000 and dividends paid of $359,000,
which were partially offset by period net earnings of $613,000, a decrease in
the unrealized loss on securities designated as available for sale of $87,000,
the return of previously paid RRP dividends of $65,000 to retained earnings,
and $45,000 from the exercise of stock options. At December 31, 2008, the
Bank's regulatory capital exceeded the requirements to be considered "well
capitalized."
Total interest income decreased by $696,000, or 11.5%, to $5.4 million for the
six months ended December 31, 2008, compared to the same period in 2007.
Interest income on loans decreased by $677,000, or 11.6%, due to a 94 basis
point decrease in yield, which was partially offset by an increase of $1.7
million, or 1.1%, in the average loan portfolio balance outstanding. Interest
income on investment securities, interest-bearing deposits and other decreased
by $16,000, or 6.5%, to a total of $231,000 for the six months ended December
31, 2008, despite a $2.8 million, or 27.8%, increase in the average balance
outstanding, which was more than offset by a 127 basis point decrease in yield.
Interest income on mortgage-backed securities decreased by $3,000, or 25.0%,
due to a decrease of $37,000, or 10.4%, in the average balance outstanding and
a 106 basis point decrease in yield.
General, administrative and other expense totaled $2.4 million for the six
months ended December 31, 2008, an increase of $160,000, or 7.0%, compared to
the same period in 2007. The increase in general, administrative and other
expense includes increases of $75,000, or 7.5%, in employee compensation and
benefits, $79,000, or 23.5%, in other operating expense, $30,000, or 38.0%, in
professional and consulting fees, and $11,000, or 6.6%, in data processing,
which were partially offset by decreases of $20,000, or 22.0%, in advertising,
$6,000, or 2.6%, in occupancy and equipment expense, $5,000, or 6.8%, in ATM
processing and $3,000, or 2.6%, in checking account maintenance expense. The
increase in employee compensation was due to normal merit increases and
additional staffing. A portion of the increase in other operating expense was a
$49,000 increase in FDIC insurance premiums. This increase was the result of
generally increased FDIC premiums and exhausting in the fourth quarter of
fiscal 2008 the FDIC credit related to the FDIC Reform Act of 2005.
Total interest income decreased by $350,000, or 11.7%, to $2.7 million for the
three months ended December 31, 2008, compared to the same period in 2007.
Interest income on loans decreased by $324,000, or 11.3%, due to an 89 basis
point decrease in yield, which was partially offset by an increase of $1.6
million, or 1.0%, in the average loan portfolio balance outstanding. Interest
income on investment securities, interest-bearing deposits and other decreased
by $24,000, or 18.8%, to a total of $104,000 for the three months ended
December 30, 2008, due to a 167 basis point decrease in yield, which was
partially offset by a $2.5 million, or 24.5%, increase in the average balance
outstanding. Interest income on mortgage-backed securities decreased by $2,000,
or 33.3%, due to a decrease of $34,000, or 9.9%, in the average balance
outstanding and a 150 basis point decrease in yield.
General, administrative and other expense totaled $1.2 million for the three
months ended December 31, 2008, an increase of $97,000, or 8.5%, compared to
the same period in 2007. The increase in general, administrative and other
expense includes increases of $62,000, or 30.8%, in other operating expense,
$38,000, or 7.7%, in employee compensation and benefits, $17,000, or 81.0%, in
professional and consulting fees, $15,000, or 15.2%, in occupancy and equipment
expense, and $4,000, or 4.8% in data processing, which were partially offset by
decreases of $15,000, or 35.7%, in postage and stationary supplies, $8,000, or
17.8%, in advertising and $4,000, or 6.5%, in checking account maintenance
expense. The increase in employee compensation was due to normal merit
increases and additional staffing. A portion of the increase in other operating
expense was a $29,000 increase in FDIC insurance premiums. This increase was
the result of generally increased FDIC premiums and exhausting in the fourth
quarter of fiscal 2008 the FDIC credit related to the FDIC Reform Act of 2005.
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FFD Financial Corporation is a savings and loan holding company which owns all of the issued and outstanding common shares of First Federal Savings Bank of Dover now known as First Federal Community Bank a federal savings bank. FFD Financial Corp. has a market cap of $11.08 million; its shares were traded at around $10.42 with a P/E ratio of 10.8 and P/S ratio of 0.89. The dividend yield of FFD Financial Corp. stocks is 6.58%. FFD Financial Corp. had an annual average earning growth of 11.8% over the past 5 years.
Highlight of Business Operations:
Loans receivable totaled $158.4 million at December 31, 2008, an increase of$2.2 million, or 1.4%, from the June 30, 2008 total. During the period, the
Corporation originated $34.1 million of loans, which were substantially offset
by principal repayments of $31.5 million. During the six-month period ended
December 31, 2008, loan originations were comprised of $21.5 million of one- to
four-family residential real estate loans, $9.6 million of nonresidential real
estate loans, $1.6 million of consumer loans, $1.1 million of commercial loans,
and $400,000 of multifamily real estate loans. Nonresidential real estate and
commercial lending have historically demonstrated a higher degree of risk than
one- to four-family residential real estate lending due to the relatively
larger loan amounts and the effects of general economic conditions on the
successful operation of income-producing properties and businesses. The
Corporation endeavors to reduce this risk by evaluating the credit history and
past performance of the borrower, the location of the real estate, the quality
of the management operating the property or business, the debt service ratio,
the quality and characteristics of the income stream generated by the property
or business and appraisals supporting the real estate or collateral valuation.
To further reduce risk, First Federal has not and does not originate sub-prime
real estate loans.
Shareholders' equity totaled $17.9 million at December 31, 2008, a decrease of
$307,000, or 1.7%, over June 30, 2008. The decrease was due primarily the
purchase of 65,833 treasury shares for $794,000 and dividends paid of $359,000,
which were partially offset by period net earnings of $613,000, a decrease in
the unrealized loss on securities designated as available for sale of $87,000,
the return of previously paid RRP dividends of $65,000 to retained earnings,
and $45,000 from the exercise of stock options. At December 31, 2008, the
Bank's regulatory capital exceeded the requirements to be considered "well
capitalized."
Total interest income decreased by $696,000, or 11.5%, to $5.4 million for the
six months ended December 31, 2008, compared to the same period in 2007.
Interest income on loans decreased by $677,000, or 11.6%, due to a 94 basis
point decrease in yield, which was partially offset by an increase of $1.7
million, or 1.1%, in the average loan portfolio balance outstanding. Interest
income on investment securities, interest-bearing deposits and other decreased
by $16,000, or 6.5%, to a total of $231,000 for the six months ended December
31, 2008, despite a $2.8 million, or 27.8%, increase in the average balance
outstanding, which was more than offset by a 127 basis point decrease in yield.
Interest income on mortgage-backed securities decreased by $3,000, or 25.0%,
due to a decrease of $37,000, or 10.4%, in the average balance outstanding and
a 106 basis point decrease in yield.
General, administrative and other expense totaled $2.4 million for the six
months ended December 31, 2008, an increase of $160,000, or 7.0%, compared to
the same period in 2007. The increase in general, administrative and other
expense includes increases of $75,000, or 7.5%, in employee compensation and
benefits, $79,000, or 23.5%, in other operating expense, $30,000, or 38.0%, in
professional and consulting fees, and $11,000, or 6.6%, in data processing,
which were partially offset by decreases of $20,000, or 22.0%, in advertising,
$6,000, or 2.6%, in occupancy and equipment expense, $5,000, or 6.8%, in ATM
processing and $3,000, or 2.6%, in checking account maintenance expense. The
increase in employee compensation was due to normal merit increases and
additional staffing. A portion of the increase in other operating expense was a
$49,000 increase in FDIC insurance premiums. This increase was the result of
generally increased FDIC premiums and exhausting in the fourth quarter of
fiscal 2008 the FDIC credit related to the FDIC Reform Act of 2005.
Total interest income decreased by $350,000, or 11.7%, to $2.7 million for the
three months ended December 31, 2008, compared to the same period in 2007.
Interest income on loans decreased by $324,000, or 11.3%, due to an 89 basis
point decrease in yield, which was partially offset by an increase of $1.6
million, or 1.0%, in the average loan portfolio balance outstanding. Interest
income on investment securities, interest-bearing deposits and other decreased
by $24,000, or 18.8%, to a total of $104,000 for the three months ended
December 30, 2008, due to a 167 basis point decrease in yield, which was
partially offset by a $2.5 million, or 24.5%, increase in the average balance
outstanding. Interest income on mortgage-backed securities decreased by $2,000,
or 33.3%, due to a decrease of $34,000, or 9.9%, in the average balance
outstanding and a 150 basis point decrease in yield.
General, administrative and other expense totaled $1.2 million for the three
months ended December 31, 2008, an increase of $97,000, or 8.5%, compared to
the same period in 2007. The increase in general, administrative and other
expense includes increases of $62,000, or 30.8%, in other operating expense,
$38,000, or 7.7%, in employee compensation and benefits, $17,000, or 81.0%, in
professional and consulting fees, $15,000, or 15.2%, in occupancy and equipment
expense, and $4,000, or 4.8% in data processing, which were partially offset by
decreases of $15,000, or 35.7%, in postage and stationary supplies, $8,000, or
17.8%, in advertising and $4,000, or 6.5%, in checking account maintenance
expense. The increase in employee compensation was due to normal merit
increases and additional staffing. A portion of the increase in other operating
expense was a $29,000 increase in FDIC insurance premiums. This increase was
the result of generally increased FDIC premiums and exhausting in the fourth
quarter of fiscal 2008 the FDIC credit related to the FDIC Reform Act of 2005.
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