FFD Financial : Earnings Release for 12/31/2016

Date: January 23, 2017

FOR IMMEDIATE RELEASE:

CONTACT:

Trent B. Troyer, President & CEO Greg W. Dorris, Vice President & Chief Financial Officer 330-364-7777 or [e-mail] 330-364-7777 or [e-mail]

FFD Financial Corporation Reports Increased Net Earnings For The Three-and Six-Month Periods Ended December 31, 2016

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, 2016. Net earnings for the quarter ended December 31, 2016, were $993,000, or diluted earnings per share of $1.00, an increase of $191,000, or 23.82%, from the $802,000, or $0.81 per diluted share, reported for the comparable three- month period in 2015. Net earnings for the six months ended December 31, 2016, were $2.2 million, or diluted earnings per share of $2.24; an increase of $644,000, or 40.89%, from the $1.58 million, or $1.59 per diluted share, of net earnings for the comparable six-month period in 2015.

Items to note:

• Net Loans increased $22.0 million or 9.2% to $261.1 million at December 31, 2016 from $239.0 million as of June 30, 2016 as a result of strong loan demand;

• Net interest income for the quarter and six-months ending December 31, 2016 increased $217,000 or 8.96% and $459,000 or 9.66% respectively, compared to the same period in 2015 primarily as a result of decreased interest expense on deposits and borrowings and increased revenue from loans;

• Noninterest income for the quarter and six-months ending December 31, 2016 increased $15,000 or 3.68% and $507,000 or 63.38% respectively compared the same periods in 2015. Increases for the quarter are primarily as a result of increases in mortgage banking income and bank owned life insurance; and increases for the six month period also include gain on sale of securities.

• The Bank continued to experience excellent credit quality as delinquency as a percentage of total loans was 0.47% for the three month period ending December 31, 2016 and net charge offs to total loans for the quarter was -0.01%.

Total assets were $318.7 million at December 31, 2016, an increase of $26.1 million, or 8.9%, over the June 30, 2016 balance of $292.6 million. Total deposits are up by $12.0 million, while borrowed funds are up $13.1 million. The allowance for loan losses as a percentage of total loans was 1.15% at December 31, 2016 and 1.18% at June 30, 2016. Shareholders' equity was $28.4 million at December 31, 2016, an increase of $1.0 million over the June 30, 2016 balance of $27.4 million.

Notable key ratios: return on average assets (ROAA) of 1.29%, and 1.47%, and return on average equity (ROAE) of 14.06%, and 15.87%, for the three and six month periods ending December 31, 2016 respectively. As of December 31, 2016 the current book value is $28.63 per share compared to $27.59 at June 30, 2016. The closing share price at quarter-end was $33.50, which represents a price to book trading ratio of 1.17.

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, downtown New Philadelphia, on the Boulevard in Dover, in Sugarcreek and in Berlin. First Federal earned a Bauer Financial 5-Star Superior rating, denoting the highest level of strength, safety, and performance. FFD maintains an interactive web site at www.onlinefirstfed.com

FFD Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

December 31, June 30, ASSETS 2016 2016

(unaudited)

Cash and cash equivalents	$ 22,969	$ 17,614
Certificates of deposits in other financial institutions	$ 650	$ 650
Investment securities available for sale	16,733	18,447
Investment securities held to maturity	5	15
Loans receivable, net	261,089	239,043
Loans held for sale	636	1,598
Other assets	16,570	15,215
Total assets	$ 318,652	$ 292,582
LIABILITIES AND SHAREHOLDERS' EQUITY Deposits	$ 262,373	$ 250,422
Borrowings	24,983	11,845
Other liabilities	2,901	2,958
Total liabilities	290,257	265,225
Shareholders' equity	28,395	27,357
Total liabilities and shareholders' equity	$ 318,652	$ 292,582

FFD Financial Corporation CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share data)

Six months ended December 31,		Three months ended December 31,
2016 2015 (unaudited)		2016 2015 (unaudited)
Total interest income	$ 5,767 $ 5,386		$2,915 $2,726
Total interest expense	555 633		277 305
Net interest income	5,212 4,753		2,638 2,421
Provision for losses on loans Net interest income after provision for losses on loans	155 62 5,057 4,691		70 41 2,568 2,380
Noninterest income	1,307 800		423 408
Noninterest expense	3,308 3,209		1,649 1,642
Earnings before income taxes	3,056 2,282		1,342 1,146
Federal income taxes	837 707		349 344
NET EARNINGS	$ 2,219 $ 1,575		$ 993 $ 802
EARNINGS PER SHARE
Basic	$ 2.24	$ 1.59	$ 1.00	$ 0.81
Diluted	$ 2.24	$ 1.59	$ 1.00	$ 0.81