FFD Financial Corp. (FFDF, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $15.65 million; its shares were traded at around $15.5 with a P/E ratio of 17.61 and P/S ratio of 1.4. The dividend yield of Ffd Financial Corp. stocks is 4.39%. Ffd Financial Corp. had an annual average earning growth of 11.8% over the past 5 years.
Loans receivable totaled $163.7 million at September 30, 2009, an increase of $2.2 million, or 1.4%, from the June 30, 2009 total. Loan originations during the period totaling $21.8 million were offset by principal repayments of $19.4 million and adjustments to the allowance for loan losses and net unamortized fees and costs . During the three-month period ended September 30, 2009, loan originations were comprised of $12.4 million of one- to four-family residential real estate loans, $7.4 million of nonresidential real estate loans, $900,000 million of consumer loans, $200,000 of commercial loans, and $900,000 of multifamily real estate loans. Nonresidential real estate and commercial lending generally involve 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.
The allowance for loan losses totaled $1.7 million at September 30, 2009, an increase of $30,000, or 1.8%, from June 30, 2009, and represented 1.04% of total loans at both dates. The increase resulted from a provision of $81,000 and recoveries of $2,000, which were partially offset by charge-offs of $53,000. Nonaccrual loans were $1.3 million at September 30, 2009 and were $949,000 at June 30, 2009. This represents .79% of loans receivable at September 30, 2009 and .59% of loans receivable on June 30, 2009. The increase was attributable to an increase in one- to four-family properties secured by first liens. Delinquent loans to total loans were 1.81% on September 30, 2009 and 1.69% on June 30, 2009. The increase was attributable to an increase in non-residential properties delinquent 30-89 days and one- to four-family properties secured by first liens on nonaccrual. There were no loans past due over 90 days and still on accrual. The composition of the loan portfolio remained relatively the same from June 30, 2009 to September 30, 2009. Real estate loans consisting of residential real estate, one- to four-family and multifamily and nonresidential real estate and land make up most of the portfolio. Impaired loan balances were $1,777,000 with an allowance of $445,000 and $1,823,000 with an allowance of $413,000 for September 30, 2009 and June 30, 2009 respectively. The 2.6% increase was not considered to be significant. Although management believes that the allowance for loan losses at September 30, 2009, is adequate based upon the available facts and circumstances, there can be no assurance that additions to the allowance will not be necessary in future periods, which could adversely affect the Corporations results of operations.
The Corporations net earnings totaled $172,000 for the three months ended September 30, 2009, a decrease of $159,000, or 48.0%, from the net earnings of $331,000 recorded in the comparable period in 2008. The decrease in net earnings resulted from an increase of $201,000, or 16.7%, in noninterest expense, a decrease of $110,000, or 6.7% in net interest income, which were partially offset by an increase of $41,000, or 24.7%, in noninterest income, and decreases of $24,000 in the provision for losses on loans and $87,000, or 49.2%, in federal income tax expense.
Total interest income decreased by $183,000, or 6.7%, to $2.5 million for the three months ended September 30, 2009, compared to the same period in 2008. The decrease was due primarily to decreases on yields across all categories of interest earning assets, despite general increases in average balances outstanding. Interest income on loans decreased by $134,000, or 5.2%, due to a 60 basis point decrease in yield, which more than offset an increase of $6.8 million, or 4.3%, in the average loan portfolio balance outstanding. Interest income on investment securities, decreased by $22,000, or 31.0%, to a total of $49,000, due to a 214 basis point decrease in yield, which was partially offset by a $1.1 million, or 18.9%, increase in the average balance outstanding. Interest income on interest bearing deposits, decreased by $25,000, or 44.6%, to a total of $31,000 for the three months ended September 30, 2009, due to a 197 basis point decrease in yield, which was partially offset by a $3.4 million, or 48.0%, increase in the average balance outstanding. Interest income on mortgage-backed securities decreased by $2,000, or 40.0%, due to a decrease of $60,000, or 18.9%, in the average balance outstanding and a 191 basis point decrease in yield.
General, administrative and other expense totaled $1.4 million for the three months ended September 30, 2009, an increase of $201,000, or 16.7%, compared to the same period in 2008. The increase in noninterest expense includes increases of $50,000, or 9.1%, in employee compensation and benefits, $45,000, or 35.2%, in other operating expense, $44,000, or 183.3%, in FDIC insurance expense, $19,000, or 55.9%, in advertising, $14,000, in loss on sale of real estate owned, $12,000, or 28.6%, in postage and stationary supplies, $11,000, or 9.7%, in occupancy and equipment expense, $6,000, or 17.7%, in ATM processing, and $4,000, or 7.41% in checking account maintenance expense, which were slightly offset by decreases of $4,000, or 5.6%, in professional and consulting fees. The increase in employee compensation was due to normal merit increases and additional staffing in connection with the opening of the new Berlin, Ohio office. Portions of the increase in other operating expense, advertising, postage and stationary supplies, occupancy and equipment expense were also the result of opening and marketing the new Berlin office.
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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 $15.65 million; its shares were traded at around $15.5 with a P/E ratio of 17.61 and P/S ratio of 1.4. The dividend yield of Ffd Financial Corp. stocks is 4.39%. Ffd Financial Corp. had an annual average earning growth of 11.8% over the past 5 years.
Highlight of Business Operations:
Cash and cash equivalents totaled $13.6 million at September 30, 2009, a decrease of $188,000, or 1.4%, from the total at June 30, 2009. Investment securities totaled $7.0 million at September 30, 2009, a $1.1 million, or 19.2%, increase from the total at June 30, 2009, resulting from the purchase of one investment security. As a result of principal repayments, mortgage-backed securities totaled $288,000 at September 30, 2009, a $5,000, or 1.7% decrease compared to the total at June 30, 2009.Loans receivable totaled $163.7 million at September 30, 2009, an increase of $2.2 million, or 1.4%, from the June 30, 2009 total. Loan originations during the period totaling $21.8 million were offset by principal repayments of $19.4 million and adjustments to the allowance for loan losses and net unamortized fees and costs . During the three-month period ended September 30, 2009, loan originations were comprised of $12.4 million of one- to four-family residential real estate loans, $7.4 million of nonresidential real estate loans, $900,000 million of consumer loans, $200,000 of commercial loans, and $900,000 of multifamily real estate loans. Nonresidential real estate and commercial lending generally involve 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.
The allowance for loan losses totaled $1.7 million at September 30, 2009, an increase of $30,000, or 1.8%, from June 30, 2009, and represented 1.04% of total loans at both dates. The increase resulted from a provision of $81,000 and recoveries of $2,000, which were partially offset by charge-offs of $53,000. Nonaccrual loans were $1.3 million at September 30, 2009 and were $949,000 at June 30, 2009. This represents .79% of loans receivable at September 30, 2009 and .59% of loans receivable on June 30, 2009. The increase was attributable to an increase in one- to four-family properties secured by first liens. Delinquent loans to total loans were 1.81% on September 30, 2009 and 1.69% on June 30, 2009. The increase was attributable to an increase in non-residential properties delinquent 30-89 days and one- to four-family properties secured by first liens on nonaccrual. There were no loans past due over 90 days and still on accrual. The composition of the loan portfolio remained relatively the same from June 30, 2009 to September 30, 2009. Real estate loans consisting of residential real estate, one- to four-family and multifamily and nonresidential real estate and land make up most of the portfolio. Impaired loan balances were $1,777,000 with an allowance of $445,000 and $1,823,000 with an allowance of $413,000 for September 30, 2009 and June 30, 2009 respectively. The 2.6% increase was not considered to be significant. Although management believes that the allowance for loan losses at September 30, 2009, is adequate based upon the available facts and circumstances, there can be no assurance that additions to the allowance will not be necessary in future periods, which could adversely affect the Corporations results of operations.
The Corporations net earnings totaled $172,000 for the three months ended September 30, 2009, a decrease of $159,000, or 48.0%, from the net earnings of $331,000 recorded in the comparable period in 2008. The decrease in net earnings resulted from an increase of $201,000, or 16.7%, in noninterest expense, a decrease of $110,000, or 6.7% in net interest income, which were partially offset by an increase of $41,000, or 24.7%, in noninterest income, and decreases of $24,000 in the provision for losses on loans and $87,000, or 49.2%, in federal income tax expense.
Total interest income decreased by $183,000, or 6.7%, to $2.5 million for the three months ended September 30, 2009, compared to the same period in 2008. The decrease was due primarily to decreases on yields across all categories of interest earning assets, despite general increases in average balances outstanding. Interest income on loans decreased by $134,000, or 5.2%, due to a 60 basis point decrease in yield, which more than offset an increase of $6.8 million, or 4.3%, in the average loan portfolio balance outstanding. Interest income on investment securities, decreased by $22,000, or 31.0%, to a total of $49,000, due to a 214 basis point decrease in yield, which was partially offset by a $1.1 million, or 18.9%, increase in the average balance outstanding. Interest income on interest bearing deposits, decreased by $25,000, or 44.6%, to a total of $31,000 for the three months ended September 30, 2009, due to a 197 basis point decrease in yield, which was partially offset by a $3.4 million, or 48.0%, increase in the average balance outstanding. Interest income on mortgage-backed securities decreased by $2,000, or 40.0%, due to a decrease of $60,000, or 18.9%, in the average balance outstanding and a 191 basis point decrease in yield.
General, administrative and other expense totaled $1.4 million for the three months ended September 30, 2009, an increase of $201,000, or 16.7%, compared to the same period in 2008. The increase in noninterest expense includes increases of $50,000, or 9.1%, in employee compensation and benefits, $45,000, or 35.2%, in other operating expense, $44,000, or 183.3%, in FDIC insurance expense, $19,000, or 55.9%, in advertising, $14,000, in loss on sale of real estate owned, $12,000, or 28.6%, in postage and stationary supplies, $11,000, or 9.7%, in occupancy and equipment expense, $6,000, or 17.7%, in ATM processing, and $4,000, or 7.41% in checking account maintenance expense, which were slightly offset by decreases of $4,000, or 5.6%, in professional and consulting fees. The increase in employee compensation was due to normal merit increases and additional staffing in connection with the opening of the new Berlin, Ohio office. Portions of the increase in other operating expense, advertising, postage and stationary supplies, occupancy and equipment expense were also the result of opening and marketing the new Berlin office.
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