FFD Financial : Earnings Release for 12/31/2018

Date: January 22, 2019

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 Increased Net Earnings For

Three and Six Months Ended December 31, 2018

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, 2018. Net earnings for the quarter ended December 31, 2018, were $1.5 million, or diluted earnings per share of $1.54, an increase of $277,000, or 22.12%, from the $1.3 million, or $1.26 per diluted share, reported for the comparable three-month period in 2017. Net earnings for the six months ended December 31, 2018, were $3.1 million, or diluted earnings per share of $3.09; an increase of $626,000, or 25.52%, from the $2.5 million, or $2.47 per diluted share, of net earnings for the comparable six-month period in 2017.

Items to note:

•  Thanks to the Tax Reform and Jobs Act of 2017 passed by Congress and signed into law by President Trump, FFD was favorably impacted by a reduced tax burden of about $239,000 or $0.24 EPS for the six-month period ending December 2018.

•  Net interest income for the quarter and six-months ending December 31, 2018 increased $612,000 or 20.20% and $1.0 million or 17.22% respectively, compared to the same periods in 2017 primarily due to increased revenue from loans, 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, 2018 was about the same when compared to the same periods in 2017 primarily due to a slowdown in mortgage banking activity and an increase in deposit service charges.

•  The bank continued to experience excellent credit quality as delinquency as a percentage of total loans was 0.41% and non-performing assets as a percentage of total assets was 0.29% for the quarter ending December 31, 2018.

Total assets were $394.1 million at December 31, 2018, an increase of $11.9 million, or 3.1%, over the June 30, 2018 balance of $382.2 million. Net loans increased by $12.3 million or 4.0% and total deposits increased by $19.7 million or 5.9%. The allowance for loan losses as a percentage of net loans was 1.07% at December 31, 2018 and 1.08% at June 30, 2018. Shareholders' equity was $36.0 million at December 31, 2018, an increase of $2.5 million or 7.4% over the June 30, 2018 balance of $33.6 million.

Notable key ratios: return on average assets (ROAA) of 1.57%, and 1.59%, and return on average equity (ROAE) of 17.30%, and 17.72%, for the three- and six-month periods ending December 31, 2018 respectively. As of December 31, 2018, the current book value is $36.27 per share compared to $33.78 at June 30, 2018. The closing share price at quarter-end was $50.20, which represents a price to book trading ratio of 1.38.

FFD Financial is traded on the Over the Counter Markets under the symbol FFDF. First Federal Community Bank has seven full service offices in downtown Dover, on the Boulevard in Dover, New Philadelphia, Uhrichsville, 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	2018	2018
(unaudited)
Cash and cash equivalents	$ 38,380	$	38,426
Certificates of deposits in other financial institutions	175	732
Investment securities available for sale	18,735	18,419
Investment securities held to maturity	-	-
Loans receivable, net	317,619	305,318
Loans held for sale	312	930
Other assets	18,863	18,364
Total assets	$ 394,084	$	382,189
Deposits	$ 351,629	$	331,954
Borrowings	3,507	13,542
Other liabilities	2,899	3,122
Total liabilities	358,035	348,618
Shareholders' equity	36,049	33,571
Total liabilities and shareholders' equity	$ 394,084	$	382,189

FFD Financial Corporation

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share data)

(Unaudited)

Six-months ended	Three-months ended
December 31,	December 31,
2018 2017	2018 2017

Total interest income	$ 8,427
Total interest expense	1,362
Net interest income	7,065
Provision for losses on loans	90
Net interest income after provision
for losses on loans	6,975
Noninterest income	867
Noninterest expense	4,109
Earnings before income taxes	3,733
Federal income taxes	654
NET EARNINGS
EARNINGS PER SHARE
Basic
Diluted

$ 6,911	$ 4,352	$ 3,478
884	711	449
6,027	3,641	3,029
45	45	45
5,982	3,596	2,984
868	412	414
3,626	2,151	1,830
3,224	1,857	1,568
771	328	316
$ 2,453	$ 1,529	$ 1,252
$ 3.10	$ 2.47	$ 1.54	$ 1.26
$ 3.09	$ 2.47	$ 1.54	$ 1.26

$ 3,079