FFD Financial : Earnings Release for 12/31/2017

Date: January 19, 2018

FOR IMMEDIATE RELEASE:

CONTACT:

Trent B. Troyer, President & CEO 330-364-7777 [e-mail] W. Dorris, Senior Vice President & CFO 330-364-7777 [e-mail]

FFD Financial Corporation Reports Strong Net Earnings For

Three and Six Months Ended December 31, 2017

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, 2017. Net earnings for the quarter ended December 31, 2017, were $1.3 million, or diluted earnings per share of $1.26, an increase of $259,000, or 26.08%, from the $993,000, or $1.00 per diluted share, reported for the comparable three-month period in 2016. Net earnings for the six months ended December 31, 2017, were $2.5 million, or diluted earnings per share of $2.47; an increase of $234,000, or 10.55%, from the $2.2 million, or $2.24 per diluted share, of net earnings for the comparable six-month period in 2016.

Items to note:

•  Thanks to the Tax Reform and Jobs Act of 2017 passed by Congress and signed into law by President Trump, FFD made net estimated adjusting tax entries of $115,000 that favorably impacted net income this quarter. Excluding the adjusting tax entries, earnings per share were $1.15 and $2.36 for the quarter and six-months ended December 31, 2017.

•  Net interest income for the quarter and six-months ending December 31, 2017 increased $391,000 or 14.82% and $815,000 or 15.64% respectively, compared to the same periods in 2016 primarily due to increased revenue from loans, tax exempt securities, and other interest-bearing deposits, and was partially offset by increased interest expense from deposits;

•  Noninterest income for the quarter and six-months ending December 31, 2017 decreased $9,000 or 2.13% and $439,000 or 33.59% respectively, compared to the same periods in 2016 primarily due to a slowdown in mortgage banking activity and a one-time gain on sale of securities of $348,000 in the quarter ending September 30, 2016.

•  The bank continued to experience excellent credit quality as delinquency as a percentage of total loans was 0.66% and non-performing assets as a percentage of total assets was 0.51% for the quarter ending December 31, 2017.

Total assets were $357.7 million at December 31, 2017, an increase of $16.2 million, or 4.8%, over the June 30, 2017 balance of $341.5 million. Net loans increased by $14.7 million or 5.3% and total deposits increased by $8.9 million or 2.9%. The allowance for loan losses as a percentage of net loans was 1.08% at December 31, 2017 and 1.12% at June 30, 2017. Shareholders' equity was $32.0 million at December 31, 2017, an increase of $1.9 million or 6.2% over the June 30, 2017 balance of $30.2 million.

Notable key ratios: return on average assets (ROAA) of 1.42%, and 1.41%, and return on average equity (ROAE) of 15.87%, and 15.78%, for the three and six month periods ending December 31, 2017 respectively. As of December 31, 2017 the current book value is $32.28 per share compared to $30.40 at June 30, 2017. The closing share price at quarter-end was $43.95, which represents a price to book trading ratio of 1.36.

FFD Financial Corporation is traded on the Over the Counter Markets under the symbol FFDF. First Federal Community Bank has full service offices in downtown Dover, New Philadelphia, on the Boulevard in Dover, Sugarcreek, Berlin and Mt. Hope. First Federal again earned a Bauer Financial 5-Star Superior rating, denoting the highest level of strength, safety, and performance. FFD maintains an interactive web site atwww.firstfed.com

FFD Financial Corporation

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

December 31,

June 30,

ASSETS	2017	2017
(unaudited)
Cash and cash equivalents	$ 25,058	$	27,789
Certificates of deposits in other financial institutions	$ 1,145	$	1,145
Investment securities available for sale	19,623	17,388
Investment securities held to maturity	-	-
Loans receivable, net	292,359	277,627
Loans held for sale	956	234
Other assets	18,546	17,282
Total assets	$ 357,687	$	341,465
Deposits	$ 314,284	$	305,378
Borrowings	8,600	2,637
Other liabilities	2,764	3,278
Total liabilities	325,648	311,293
Shareholders' equity	32,039	30,172
Total liabilities and shareholders' equity	$ 357,687	$	341,465

FFD Financial Corporation

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share data)

(Unaudited)

Six-months ended	Three-months ended
December 31,	December 31,
2017 2016	2017 2016
(unaudited)	(unaudited)

Total interest income	$ 6,911	$ 5,767	$ 3,478	$ 2,915
Total interest expense	884	555	449	277
Net interest income	6,027	5,212	3,029	2,638
Provision for losses on loans	45	155	45	70
Net interest income after provision
for losses on loans	5,982	5,057	2,984	2,568
Noninterest income	868	1,307	414	423
Noninterest expense	3,626	3,308	1,830	1,649
Earnings before income taxes	3,224	3,056	1,568	1,342
Federal income taxes	771	837	316	349
NET EARNINGS	$ 2,453	$ 2,219	$ 1,252
EARNINGS PER SHARE
Basic	$ 2.47	$ 2.24	$ 1.26
Diluted	$ 2.47	$ 2.24	$ 1.26

• $ 993

• $ 1.00

• $ 1.00