FFD Financial : Earnings for Quarter Ended 12-31-2021

Date: January 21, 2022
FOR IMMEDIATE RELEASE:
CONTACT:
Trent B. Troyer, President & CEO	Greg W. Dorris, Senior Vice President & CFO
330-364-7777or [e-mail]	330-364-7777or [e-mail]

FFD Financial Corporation Reports Strong Net Earnings For

Three- and Six-Months Ended December 31, 2021

DOVER, OHIO - FFD Financial Corporation (OTC: FFDF), parent company of First Federal Community Bank, National Association, is pleased to report its unaudited earnings for the three- and six-months ended December 31, 2021. Net income was $2.2 million, or diluted earnings per share of $0.73 and $4.9 million, or diluted earnings per share of $1.64 for the quarter- and six-months ended December 31, 2021, respectively.

Highlights:

• Return on average assets was 1.43% and 1.61%, and return on average equity was 16.06% and 18.28%, for the three- and six-month periods ended December 31, 2021, respectively.
• Total assets increased 4.0%, net loans increased 7.1%, and total deposits increased 3.9% since fiscal year end June 30, 2021.
• Current book value is $18.57 per share. Shareholders' equity increased 7.0% since fiscal year end June 30, 2021. Closing share price December 31, 2021, was $28.99, which represents a price to book trading ratio of 156%.
• The bank continued to experience excellent credit quality as delinquency as a percentage of total loans was 0.11% and non-performing assets as a percentage of total assets was 0.07% for the period ending December 31, 2021. The bank increased its allowance for loan losses $188,000 since June 30, 2021, primarily due to provisions and partially due to recoveries. The bank's allowance for loan losses to total loans ratio was 0.97%.
• First Federal's capital ratios exceeded regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements.

Income Statement Details:

• Net interest income before provision increased 13.9% from the comparable six-month period ending December 2020 primarily due to increased revenue from loans and securities primarily as a result of higher balances, and decreased expense from deposits.
• Provision for Loan Losses totaled $175,000 this quarter based upon our methodology to provide for potential future losses from its loan portfolio and the provision was primarily due to loan growth.
• Noninterest income decreased $461,000 and $956,000 compared to the prior three- and six-month periods ending December 2020 primarily due less residential secondary market loan origination activity and was partially offset by increased service charges due to deposit account growth.
• Noninterest Expense - Noninterest expense increased $265,000 and $389,000 compared to the prior three- and six-month periods ending December 2020 primarily due to increased compensation expense and increased operational expenses due to growth.

FFD Financial Corporation is a bank holding company for First Federal Community Bank, National Association. First Federal was named a Great Place to Work in December 2019, 2020, and 2021 and continues to maintain a Bauer Financial 5-Star Superior rating, denoting the highest level of strength, safety, and performance. First Federal has eight full-service offices in Dover, New Philadelphia, Uhrichsville, Sugarcreek, Berlin, and Mt. Hope and online at firstfed.com.

FFD Financial Corporation

Condensed Consolidated Statements of Financial Condition

(In thousands)

(Unaudited)

		Dec 31,	Jun 30,
ASSETS		2021	2021	%Change
Cash and cash equivalents	$	62,408	75,373	-17.2%
Investment securities available for sale		44,928	43,810	2.6%
Loans receivable, net		470,835	439,503	7.1%
Loans held for sale		1,054	2,793	-62.3%
Other assets		36,214	30,023	20.6%
Total assets	$	615,439	591,502	4.0%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits	$	538,721	518,567	3.9%
Borrowings		15,365	15,637	-1.7%
Other liabilities		6,579	6,114	7.6%
Total liabilities		560,665	540,318	3.8%
Shareholders' equity		54,774	51,184	7.0%
Total liabilities and shareholders' equity	$	615,439	591,502	4.0%

FFD Financial Corporation

Condensed Consolidated Statements of Income

(In thousands, except share data)

(Unaudited)

			Six-months ended		Three-months ended
			December 31,				December 31,
		2021	2020	%Change		2021	2020	%Change
Interest and dividend income	$	10,747	10,128	6.1%	$	5,161	5,331	-3.2%
Interest expense		763	1,362	-44.0%		368	637	-42.2%
Net interest income		9,984	8,766	13.9%		4,793	4,694	2.1%
Provision for loan losses		175	500	-65.0%		150	300	-50.0%
Net interest income after provision
for losses on loans		9,809	8,266	18.7%		4,643	4,394	5.7%
Noninterest income		1,577	2,533	-37.7%		760	1,221	-37.8%
Noninterest expense		5,485	5,096	7.6%		2,769	2,504	10.6%
Income before income taxes		5,901	5,703	3.5%		2,634	3,111	-15.3%
Income tax expense		1,048	1,023	2.4%		465	558	-16.7%
Net Income	$	4,853	4,680	3.7%	$	2,169	2,553	-15.0%
Earnings per share
Basic	$	1.65	1.59		$	0.74	0.87
Diluted	$	1.64	1.59		$	0.73	0.87