FFD Financial Corporation Reports Net Earnings For Three Months Ended September 30, 2010

DOVER, Ohio, Oct. 28, 2010 (GLOBE NEWSWIRE) -- FFD Financial Corporation (Nasdaq:FFDF), parent company of First Federal Community Bank, reported net earnings for the three months ended September 30, 2010, of $414,000, or diluted earnings per share of $.41, compared to net earnings of $172,000, or $.17 per diluted share, reported for the comparable three-month period in 2009. The $242,000, or 140.7%, increase in net earnings resulted from increases of $297,000, or 19.3%, in net interest income and $174,000, or 84.1%, in other income, which were partially offset by increases of $105,000, or 129.6%, in the provision for losses on loans, and $125,000, or 138.9%, in the provision for federal income taxes.

The increase in net interest income was primarily due to deposit costs declining faster than the yields on interest earning assets. The yield on interest earning assets decreased approximately five basis points period to period on an annualized basis while the cost of interest bearing liabilities decreased approximately 49 basis points over the same time period.

The increase in noninterest income was primarily the result of a $189,000 increase in gain on sale of loans and a $15,000 increase in service charges on deposit accounts, which were partially offset by decreases of $29,000 on mortgage servicing revenue net of amortization and impairment and $2,000 in other noninterest income. The increase in gain on sale of loans resulted from increased sales into the secondary mortgage market due to significant increases in the number of newly originated loans and refinanced loans as a result of the prevailing low interest rate environment.

The increase in the provision for losses on loans was due to management's assessment of its loan portfolio, delinquency rates, net charge-offs, the amount of the allowance for loan losses and current economic conditions. Net charge offs were $78,000 for the quarter ended September 30, 2010, and $64,000 for the comparable quarter in 2009. Non-performing loans were $2.2 million, or 1.06%, of total assets at June 30, 2010, compared to $1.2 million, or .59%, at September 30, 2010, due partially to the favorable resolution of a large non-performing loan during the quarter.

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