FFD Financial Corp. (FFDF, Financial) filed Quarterly Report for the period ended 2009-12-31.
Ffd Financial Corp. has a market cap of $13.65 million; its shares were traded at around $13.5 with a P/E ratio of 17.53 and P/S ratio of 1.22. The dividend yield of Ffd Financial Corp. stocks is 5.04%. Ffd Financial Corp. had an annual average earning growth of 11.8% over the past 5 years.
The allowance for loan losses totaled $1.8 million at December 31, 2009, an increase of $107,000, or 6.3%, from June 30, 2009, and represented 1.05% of total loans on December 31, 2009 and 1.04% of total loans on June 30, 2009. The increase resulted from a provision of $167,000 and recoveries of $4,000, which were partially offset by charge-offs of $64,000. Nonaccrual loans were $2.6 million at December 31, 2009 and $949,000 at June 30, 2009, which represented 1.50% and .58% of loans receivable at those respective dates. Non-accruing non-residential mortgage loans increased by $1.2 million, one- to four-family properties secured by first liens increased by $411,000 and commercial and consumer loans increased by $40,000. Of the $2.6 million nonaccrual loans at December 31, 2009, $876,000 of the balances were guaranteed by a government agency. Of the $949,000 million nonaccrual loans at June 30, 2009, $533,000 of the balances were guaranteed by a government agency. Adjusting for the guaranteed portion, nonaccrual loans were $1.7 million at December 31, 2009 and $416,000 at June 30, 2009, which represented .99% and .26% of loans receivable at those respective dates. Delinquent loans to total loans were 3.64% on December 31, 2009 and 1.69% on June 30, 2009, due to an increase in non-residential properties delinquent 30-89 days and one- to four-family properties secured by first liens and nonresidential mortgage loans on nonaccrual. There were no loans past due over 90 days and still on accrual. Although the Company experienced increases in nonaccrual and delinquent loans from June 30, 2009 to December 31, 2009, management does not believe a further increases in the allowance and related provision are necessary. Management has reviewed these loans for loss exposure and determined them to be adequately collateralized in the event of liquidation. The composition of the loan portfolio remained relatively the same from June 30, 2009 to December 31, 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 $2.5 million with an allowance of $484,000 and $1.8 million with an allowance of $413,000 at December 31, 2009 and June 30, 2009, respectively. Although management believes that the allowance for loan losses at December 31, 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.
Total interest income decreased $308,000, or 5.7%, to $5.1 million for the six months ended December 31, 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 $254,000, or 4.9%, due to a 61 basis point decrease in yield, which more than offset an increase of $7.8 million, or 4.9%, in the average loan portfolio balance outstanding. Interest income on investment securities decreased by $20,000, or 14.1%, to $122,000 due to a 219 basis point decrease in yield, which was partially offset by a $2.6 million, or 47.3%, increase in the average balance outstanding. Interest income on interest bearing deposits, decreased $30,000, or 33.7%, to a total of $59,000 for the six months ended December 31, 2009, due to a 122 basis point decrease in yield, which was partially offset by a $2.8 million, or 37.4%, increase in the average balance outstanding. Interest income on mortgage-backed securities decreased by $4,000, or 44.4%, due to a decrease of $46,000, or 14.6%, in the average balance outstanding and a 200 basis point decrease in yield.
Noninterest income totaled $372,000 for the six months ended December 31, 2009, an increase of $40,000, or 12.1%, from the 2008 total. Net gain on sale of loans increased by $55,000, or 47.8%, to $170,000 for the six months ended December 31, 2009, compared to $115,000 for the six months ended December 31, 2008. The increase in gain on sale of loans was due to increased activity in residential mortgage refinancing and purchases. Service charges on deposit accounts increased by $22,000, or 16.4%, to $156,000 for the six months ended December 31, 2009 compared to $134,000 in 2008. The prior year six-month period also had a $9,000 security impairment charge that did not re-occur in the 2009 period. The mortgage servicing revenue loss net of amortization and impairment of $10,000 for the six months ended December 31, 2009, resulted from $58,000 of additional expense from increased amortization of the mortgage servicing rights asset as loans serviced payed off from loan refinances, which were partially offset by a $11,000 reversal of the valuation allowance for mortgage servicing rights due to changes in mortgage interest rates and prepayment speeds.
General, administrative and other expense totaled $2.8 million for the six months ended December 31, 2009, an increase of $337,000, or 13.8%, compared to the same period in 2008. The increase in noninterest expense includes increases of $146,000, or 13.5%, in employee compensation and benefits, $62,000, or 108.8%, in FDIC insurance expense, $39,000, or 17.2%, in occupancy and equipment expense, $32,000, or 46.4%, in postage and stationary supplies, $26,000, or 23.9%, in professional and consulting fees, $15,000 in loss on sale of real estate owned, $13,000, or 18.3%, in advertising expense, $8,000, or 4.5%, in data processing and $3,000, or 2.7%, in checking account maintenance expense, which were slightly offset by decreases of $4,000 in other operating expense and $3,000 in ATM processing. The increase in employee compensation was due to additional staffing in connection with the opening of the new Berlin, Ohio office. Portions of the increase in noninterest expense in advertising, postage and stationary supplies, occupancy and equipment expense and data processing were also the result of opening and marketing the new Berlin office.
General, administrative and other expense totaled $1.4 million for the three months ended December 31, 2009, an increase of $136,000, or 10.9%, compared to the same period in 2008. The increase in noninterest expense includes increases of $96,000, or 18.2%, in employee compensation and benefits, $30,000, or 79.0%, in professional and consulting fees, $28,000, or 24.6%, in occupancy and equipment expense, $20,000, or 74.1%, in postage and stationary supplies, $18,000, or 54.6%, in FDIC insurance expense, $8,000, or 9.2%, in data processing, and $1,000, in loss on sale of real estate owned, which were slightly offset by decreases of $49,000, or 21.3%, in other operating expense, $9,000, or 26.5%, in ATM processing, $6,000, or 16.2%, in advertising expense, and $1,000, or 1.7%, in checking account maintenance expense. The increase in employee compensation was due to additional staffing in connection with the opening of the new Berlin, Ohio office. Portions of the increase in noninterest expense in postage and stationary supplies, occupancy and equipment expense and data processing were also the result of opening and marketing the new Berlin office.
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Ffd Financial Corp. has a market cap of $13.65 million; its shares were traded at around $13.5 with a P/E ratio of 17.53 and P/S ratio of 1.22. The dividend yield of Ffd Financial Corp. stocks is 5.04%. Ffd Financial Corp. had an annual average earning growth of 11.8% over the past 5 years.
Highlight of Business Operations:
Loans receivable totaled $169.5 million at December 31, 2009, an increase of $8.0 million, or 5.0%, from the June 30, 2009 total. The portfolio of loans secured by one- to four-family residential real estate increased by $2.4 million, or 3.8%, to $65.3 million at December 31, 2009. Loans secured by nonresidential real estate and land totaled $72.2 million at June 30, 2009, compared to $75.6 million at December 31, 2009, an increase of $3.4 million, or 4.7%. Commercial loans totaled $17.7 million at June 30, 2009, compared to $18.9 million at December 31, 2009, an increase of $1.2 million, or 6.7%. Loan originations during the period totaling $47.2 million were partially offset by principal repayments of $38.1 million and adjustments to the allowance for loan losses and net unamortized fees and costs. During the six-month period ended December 31, 2009, loan originations were comprised of $26.6 million of one- to four-family residential real estate loans, $16.3 million of nonresidential real estate loans, $1.7 million of consumer loans, $1.7 million 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 $1.8 million at December 31, 2009, an increase of $107,000, or 6.3%, from June 30, 2009, and represented 1.05% of total loans on December 31, 2009 and 1.04% of total loans on June 30, 2009. The increase resulted from a provision of $167,000 and recoveries of $4,000, which were partially offset by charge-offs of $64,000. Nonaccrual loans were $2.6 million at December 31, 2009 and $949,000 at June 30, 2009, which represented 1.50% and .58% of loans receivable at those respective dates. Non-accruing non-residential mortgage loans increased by $1.2 million, one- to four-family properties secured by first liens increased by $411,000 and commercial and consumer loans increased by $40,000. Of the $2.6 million nonaccrual loans at December 31, 2009, $876,000 of the balances were guaranteed by a government agency. Of the $949,000 million nonaccrual loans at June 30, 2009, $533,000 of the balances were guaranteed by a government agency. Adjusting for the guaranteed portion, nonaccrual loans were $1.7 million at December 31, 2009 and $416,000 at June 30, 2009, which represented .99% and .26% of loans receivable at those respective dates. Delinquent loans to total loans were 3.64% on December 31, 2009 and 1.69% on June 30, 2009, due to an increase in non-residential properties delinquent 30-89 days and one- to four-family properties secured by first liens and nonresidential mortgage loans on nonaccrual. There were no loans past due over 90 days and still on accrual. Although the Company experienced increases in nonaccrual and delinquent loans from June 30, 2009 to December 31, 2009, management does not believe a further increases in the allowance and related provision are necessary. Management has reviewed these loans for loss exposure and determined them to be adequately collateralized in the event of liquidation. The composition of the loan portfolio remained relatively the same from June 30, 2009 to December 31, 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 $2.5 million with an allowance of $484,000 and $1.8 million with an allowance of $413,000 at December 31, 2009 and June 30, 2009, respectively. Although management believes that the allowance for loan losses at December 31, 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.
Total interest income decreased $308,000, or 5.7%, to $5.1 million for the six months ended December 31, 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 $254,000, or 4.9%, due to a 61 basis point decrease in yield, which more than offset an increase of $7.8 million, or 4.9%, in the average loan portfolio balance outstanding. Interest income on investment securities decreased by $20,000, or 14.1%, to $122,000 due to a 219 basis point decrease in yield, which was partially offset by a $2.6 million, or 47.3%, increase in the average balance outstanding. Interest income on interest bearing deposits, decreased $30,000, or 33.7%, to a total of $59,000 for the six months ended December 31, 2009, due to a 122 basis point decrease in yield, which was partially offset by a $2.8 million, or 37.4%, increase in the average balance outstanding. Interest income on mortgage-backed securities decreased by $4,000, or 44.4%, due to a decrease of $46,000, or 14.6%, in the average balance outstanding and a 200 basis point decrease in yield.
Noninterest income totaled $372,000 for the six months ended December 31, 2009, an increase of $40,000, or 12.1%, from the 2008 total. Net gain on sale of loans increased by $55,000, or 47.8%, to $170,000 for the six months ended December 31, 2009, compared to $115,000 for the six months ended December 31, 2008. The increase in gain on sale of loans was due to increased activity in residential mortgage refinancing and purchases. Service charges on deposit accounts increased by $22,000, or 16.4%, to $156,000 for the six months ended December 31, 2009 compared to $134,000 in 2008. The prior year six-month period also had a $9,000 security impairment charge that did not re-occur in the 2009 period. The mortgage servicing revenue loss net of amortization and impairment of $10,000 for the six months ended December 31, 2009, resulted from $58,000 of additional expense from increased amortization of the mortgage servicing rights asset as loans serviced payed off from loan refinances, which were partially offset by a $11,000 reversal of the valuation allowance for mortgage servicing rights due to changes in mortgage interest rates and prepayment speeds.
General, administrative and other expense totaled $2.8 million for the six months ended December 31, 2009, an increase of $337,000, or 13.8%, compared to the same period in 2008. The increase in noninterest expense includes increases of $146,000, or 13.5%, in employee compensation and benefits, $62,000, or 108.8%, in FDIC insurance expense, $39,000, or 17.2%, in occupancy and equipment expense, $32,000, or 46.4%, in postage and stationary supplies, $26,000, or 23.9%, in professional and consulting fees, $15,000 in loss on sale of real estate owned, $13,000, or 18.3%, in advertising expense, $8,000, or 4.5%, in data processing and $3,000, or 2.7%, in checking account maintenance expense, which were slightly offset by decreases of $4,000 in other operating expense and $3,000 in ATM processing. The increase in employee compensation was due to additional staffing in connection with the opening of the new Berlin, Ohio office. Portions of the increase in noninterest expense in advertising, postage and stationary supplies, occupancy and equipment expense and data processing were also the result of opening and marketing the new Berlin office.
General, administrative and other expense totaled $1.4 million for the three months ended December 31, 2009, an increase of $136,000, or 10.9%, compared to the same period in 2008. The increase in noninterest expense includes increases of $96,000, or 18.2%, in employee compensation and benefits, $30,000, or 79.0%, in professional and consulting fees, $28,000, or 24.6%, in occupancy and equipment expense, $20,000, or 74.1%, in postage and stationary supplies, $18,000, or 54.6%, in FDIC insurance expense, $8,000, or 9.2%, in data processing, and $1,000, in loss on sale of real estate owned, which were slightly offset by decreases of $49,000, or 21.3%, in other operating expense, $9,000, or 26.5%, in ATM processing, $6,000, or 16.2%, in advertising expense, and $1,000, or 1.7%, in checking account maintenance expense. The increase in employee compensation was due to additional staffing in connection with the opening of the new Berlin, Ohio office. Portions of the increase in noninterest expense in postage and stationary supplies, occupancy and equipment expense and data processing were also the result of opening and marketing the new Berlin office.
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