FFDF F F D Financial (MM)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

OR

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to _______________

 Ohio 34-1821148
------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the issuer was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

APPLICABLE ONLY TO CORPORATE ISSUERS

Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

INDEX

 Page
 ----

PART I ITEM 1.-FINANCIAL STATEMENTS

 Consolidated Statements of Financial Condition 3

 Consolidated Statements of Earnings 4

 Consolidated Statements of Comprehensive Income 5

 Condensed Consolidated Statements of Cash Flows 6

 Notes to Consolidated Financial Statements 7

 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS 10

 ITEM 3. CONTROLS AND PROCEDURES 14

PART II - OTHER INFORMATION 15

SIGNATURES 17

 2

 FFD Financial Corporation

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands, except share data)

 March 31, June 30,
 ASSETS 2008 2007
 (Unaudited)

Cash and due from banks $ 2,019 $ 1,871
Interest-bearing deposits in other financial institutions 7,553 7,162
 -------- --------
 Cash and cash equivalents 9,572 9,033

Investment securities available for sale 4,739 3,448
Mortgage-backed securities available for sale 246 267
Mortgage-backed securities held to maturity
 fair value of $83 and $98 as of March 31,
 2008 and June 30, 2007, respectively 83 97
Loans receivable - net of allowance of $1,278 and $930 158,500 153,282
Loans held for sale 226 624
Premises and equipment, net 2,597 2,280
Federal Home Loan Bank Stock, at cost 2,358 2,327
Loan servicing rights 635 661
Accrued interest receivable 678 683
Prepaid expenses and other assets 261 292
 -------- --------

 Total assets $179,895 $172,994
 ======== ========

 LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
 Non interest bearing $ 9,393 $ 9,984
 Interest bearing 130,396 129,938
 -------- --------
 Total deposits 139,789 139,922
Federal Home Loan Bank advances 20,696 13,055
Accrued interest payable 210 225
Accrued and deferred federal income tax 171 409
Other liabilities 838 1,248
 -------- --------
 Total liabilities 161,704 154,859

Commitments - -

Shareholders' equity
 Preferred stock - authorized 1,000,000 shares without par
 value; no shares issued - -
 Common stock - authorized 5,000,000 shares without par or
 stated value; 1,454,750 shares issued - -
 Additional paid-in capital 8,274 8,256
 Retained earnings 15,267 14,856
 Accumulated comprehensive loss, net (8) (33)
 Treasury stock at cost (384,456 and 359,148 treasury shares
 at March 31, 2008 and June 30, 2007, respectively) (5,342) (4,944)
 -------- --------
 Total shareholders' equity 18,191 18,135
 -------- --------

 Total liabilities and shareholders' equity $179,895 $172,994
 ======== ========

The accompanying notes are an integral part of these statements.

FFD Financial Corporation

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

 For the three months For the nine months
 ended March 31, ended March 31,
 2008 2007 2008 2007
 (Unaudited)

Interest income
 Loans, including fees $2,791 $2,728 $8,606 $8,030
 Mortgage-backed securities 6 6 18 20
 Investment securities 47 49 131 126
 Interest-bearing deposits and other 62 90 225 293
 ------ ------ ------ ------
 2,906 2,873 8,980 8,469

Interest expense
 Deposits 1,066 1,103 3,418 3,050
 Borrowings 197 174 571 569
 ------ ------ ------ ------
 1,263 1,277 3,989 3,619
 ------ ------ ------ ------

 Net interest income 1,643 1,596 4,991 4,850

Provision for losses on loans 408 95 607 197
 ------ ------ ------ ------

 Net interest income after provision for losses on loans 1,235 1,501 4,384 4,653

Other income
 Net gain on sale of loans 49 35 113 127
 Service charges on deposit accounts 70 63 197 193
 Other 37 27 152 131
 ------ ------ ------ ------
 156 125 462 451
General, administrative and other expense
 Employee and director compensation and benefits 524 514 1,530 1,514
 Occupancy and equipment 119 108 352 300
 Franchise taxes 57 58 173 165
 Data processing 89 85 257 248
 Professional and consulting fees 69 42 195 159
 Postage and stationery supplies 39 32 108 113
 Advertising 31 54 122 169
 Checking account maintenance expense 54 48 169 150
 Other 167 157 528 481
 ------ ------ ------ ------
 1,149 1,098 3,434 3,299
 ------ ------ ------ ------

 Income before income taxes 242 528 1,412 1,805

 Income tax expense 83 181 483 617
 ------ ------ ------ ------

 Net Income $ 159 $ 347 $ 929 $1,188
 ====== ====== ====== ======

 Earnings per share
 Basic $.15 $.32 $.86 $1.04
 ==== ==== ==== =====

 Diluted $.15 $.31 $.85 $1.03
 ==== ==== ==== =====

 Dividends declared per share $.165 $.14 $.47 $.40
 ===== ==== ==== ====

The accompanying notes are an integral part of these statements.

FFD Financial Corporation

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

 For the three months For the nine months
 ended March 31, ended March 31,
 2008 2007 2008 2007
 (Unaudited)

Net earnings $159 $347 $929 $1,188

Other comprehensive income, net of related tax effects:
 Unrealized holding gains (losses) on securities during
 the period, net of taxes (benefits) of $(3), $6,
 $13 and $37, during the respective periods (6) 12 25 72
 ---- ---- ---- ------

Comprehensive income $153 $359 $954 $1,260
 ==== ==== ==== ======

The accompanying notes are an integral part of these statements.

FFD Financial Corporation

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine months ended March 31,
(In thousands)

 2008 2007
 (Unaudited)
Cash flows from operating activities:
 Net cash provided by operating activities $ 1,445 $ 1,674

Cash flows from investing activities:
 Purchase of investment securities designated
 as available for sale (4,749) -
 Proceeds from redemption of investment securities 3,500 -
 Principal repayments on mortgage-backed securities 32 180
 Loan originations and payments, net (11,110) (7,557)
 Proceeds from participation loan sales
 to other financial institutions 5,269 858
 Additions to premises and equipment (441) (210)
 -------- -------
 Net cash used in investing activities (7,499) (6,729)

Cash flows financing activities:
 Net changes in deposits (133) 11,349
 Proceeds from Federal Home Loan Bank Advances 8,000 4,600
 Repayments of Federal Home Loan Bank Advances (359) (6,308)
 Tax benefits of options exercised - 25
 Proceeds from exercise of stock options 19 197
 Purchase of treasury stock (416) (1,881)
 Cash dividends paid (518) (457)
 -------- -------
 Net cash from financing activities 6,593 7,525
 -------- -------

Net change in cash and cash equivalents 539 2,470

Beginning cash and cash equivalents 9,033 7,692
 -------- -------

Ending cash and cash equivalents $ 9,572 $10,162
 ======== =======


Supplemental disclosure of cash flow information:
 Cash paid during the period for:
 Federal income taxes $ 660 $ 883
 ======== =======

 Interest paid $ 4,004 $ 3,563
 ======== =======

The accompanying notes are an integral part of these statements.

FFD Financial Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the three- and nine-month periods ended March 31, 2008 and 2007

The accompanying unaudited consolidated financial statements were prepared in accordance with the instructions for Form 10-QSB and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto of FFD Financial Corporation (the "Corporation") included in the Corporation's Annual Report on Form 10-KSB for the year ended June 30, 2007. However, in the opinion of management, all adjustments (consisting of only normal recurring accruals) which are necessary for a fair presentation of the financial statements have been included. The results of operations for the three- and nine-month periods ended March 31, 2008, are not necessarily indicative of the results which may be expected for the entire fiscal year.

The accompanying consolidated financial statements include the accounts of the Corporation, First Federal Community Bank (the "Bank") and Dover Service Corporation, a wholly owned subsidiary of the Bank. All significant intercompany items have been eliminated.

Basic earnings per share is computed based upon the weighted-average common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under the Corporation's stock option plan. The computations are as follows:

 For the three months ended For the nine months ended
 March 31, March 31,
 2008 2007 2007 2006

Weighted-average common shares
 outstanding (basic) 1,075,054 1,106,219 1,084,595 1,143,448
Dilutive effect of assumed exercise
 of stock options 6,106 15,052 6,203 13,696
 --------- --------- --------- ---------
Weighted-average common shares
 outstanding (diluted) 1,081,160 1,121,271 1,090,798 1,157,144
 ========= ========= ========= =========

The FFD Financial Corporation 1996 Stock Option and Incentive Plan (the "Plan") provided for grants of options to purchase 169,838 authorized but unissued common shares. Although the Plan expired in October of 2006, options granted prior to the expiration date remain exercisable for ten years from the grant date, unless terminated in accordance with the Plan or the applicable award agreement.

During the fourth quarter of fiscal 2006, the Corporation early adopted Statement of Financial Accounting Standards ("SFAS") No. 123(R), Share-based Payment, using the modified prospective method. At the time of adoption, the Corporation accelerated the vesting of all unvested options.

Accordingly, the Corporation has recorded stock-based employee compensation cost using the fair value method beginning in the fourth quarter of fiscal 2006. Prior to the fourth quarter of fiscal 2006, employee compensation expense under stock options was reported using the intrinsic value method.

FFD Financial Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the nine- and three-month periods ended March 31, 2008 and 2007

A summary of the activity in the stock option plan for the nine months ended March 31, 2008 follows:

 Weighted
 Weighted average
 average remaining Aggregate
 exercise contractual intrinsic
 Shares price term value
 ------ -------- ----------- ---------

Outstanding at beginning of period 29,780 $10.75
Granted - -
Exercised (2,000) 9.25
Forfeited or expired - -
 ------ ------
Outstanding at end of period 27,780 $10.85 3.3 yrs $102,554
 ====== ====== ========

Exercisable at end of period 27,780 $10.85 3.3 yrs $102,554
 ====== ====== ========

Options available for grant -
 ======

Information related to the stock option plan during the nine months ended March 31, 2008 follows:

Intrinsic value of options exercised $12,200
Cash received from options exercised 18,500
Tax benefit from options exercised -

FFD Financial Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the nine- and three-month periods ended March 31, 2007 and 2006

In January 2007, the FASB issued Statement of Financial Accounting Standard No.
159 ("SFAS 159"), The Fair Value Option for Financial Assets and Financial Liabilities, which gives entities the option to measure eligible financial assets and financial liabilities at fair value on an instrument by instrument basis, that are otherwise not permitted to be accounted for at fair value under other accounting standards. The election to use the fair value option is available when an entity recognizes a financial asset or financial liability. Subsequent changes in fair value must be recorded in earnings. This statement is effective for the company as of July 1, 2008. The Corporation is in the process of analyzing the potential impact of SFAS 159.

In July 2006, the FASB issued Financial Accounting Standards Interpretation No.
48 ("FIN 48"), Accounting for Uncertainty in Income Taxes. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attributable for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. FIN 48 was effective for the Corporation after July 1, 2007. The adoption of this standard had no effect on the Corporation's financial statements.

The Corporation and its subsidiaries are subject to U.S. federal income tax as well as various other state income taxes. The Corporation is no longer subject to examination by taxing authorities for years prior to 2004. The Corporation does not expect the total amount of unrecognized tax benefit to significantly increase in the next twelve months.

The Corporation recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other expense. The Corporation did not have any amounts accrued for interest and penalties at either July 1, 2007 or March 31, 2008.

In September 2006, FASB issued SFAS No. 157, "Fair Value Measurements." SFAS No. 157 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles and expands disclosures about fair value measurements. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. Management does not expect that the adoption of this standard will have a material impact on the Corporation's financial statements. Management has not completed its evaluation of the impact of adoption of this standard.

On November 5, 2007, the SEC issued Staff Accounting Bulletin No. 109, Written Loan Commitments Recorded at Fair Value through Earnings ("SAB 109"). Previously, SAB 105, Application of Accounting Principles to Loan Commitments, stated that in measuring the fair value of a derivative loan commitment, a company should not incorporate the expected net future cash flows related to the associated servicing of the loan. SAB 109 supersedes SAB 105 and indicates that the expected net future cash flows related to the associated servicing of the loan should be included in measuring fair value for all written loan commitments that are accounted for at fair value through earnings. SAB 105 also indicated that internally-developed intangible assets should not be recorded as part of the fair value of a derivative loan commitment, and SAB 109 retains that view. SAB 109 is effective for derivative loan commitments issued or modified in fiscal quarters beginning after December 15, 2007. The Company's adoption of this bulletin did not have a material impact on FFD's consolidated financial statements.

FFD Financial Corporation

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

Certain statements contained in this report that are not historical facts are forward-looking statements that are subject to certain risks and uncertainties. When used herein, the terms "anticipates," "plans," "expects," "believes," and similar expressions as they relate to the Corporation, its subsidiaries or their management are intended to identify such forward looking statements. The Corporation's actual results, performance or achievements may materially differ from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause or contribute to such material differences include, but are not limited to, general and local economic conditions, changes in the interest rate environment, competitive conditions in the financial services industry, changes in law, governmental policies and regulations, and rapidly changing technology affecting financial services.

There have been no material changes to the critical accounting policies disclosed in the Corporation's Form 10-KSB for the year ended June 30, 2007.

The Corporation's total assets at March 31, 2008, were $179.9 million, a $6.9 million, or 4.0%, increase from the total at June 30, 2007.

Cash and cash equivalents totaled $9.6 million at March 31, 2008, an increase of $539,000, or 6.0%, from the total at June 30, 2007. Investment securities totaled $4.7 million at March 31, 2008, a $1.3 million, or 37.4%, increase from the total at June 30, 2007, as investment purchases of $4.7 million exceeded investment redemptions of $3.5 million. Additionally, mark-to-market adjustments under SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities" increased approximately $42,000 since June 30, 2007. Mortgage-backed securities totaled $329,000 at March 31, 2008, a $35,000, or 9.6%, decrease compared to the total at June 30, 2007, which resulted from principal repayments and a negative $3,000 mark-to-market adjustment under SFAS No. 115.

Loans receivable totaled $158.5 million at March 31, 2008, an increase of $5.2 million, or 3.4%, from the June 30, 2007 total. Loan originations during the period totaling $59.8 million were substantially offset by principal repayments of $39.9 million, loans sold in the secondary market of $9.2 million and loans sold to other financial institutions of $5.3 million. During the nine-month period ended March 31, 2008, loan originations were comprised of $28.1 million of one- to four-family residential real estate loans, $22.6 million of nonresidential real estate loans, $4.7 million of commercial loans, $3.2 million of consumer loans, and $1.2 million of multifamily loans. Nonresidential real estate and commercial lending generally involve a higher degree of risk than one- to four-family residential real estate lending due to the relatively larger loan amounts and the effects of general economic conditions on the successful operation of income-producing properties and businesses. The Corporation endeavors to reduce this risk by evaluating the credit history and past performance of the borrower, the location of the real estate, the quality of the management operating the property or business, the debt service ratio, the quality and characteristics of the income stream generated by the property or business and appraisals supporting the real estate or collateral valuation.

The allowance for loan losses totaled $1.3 million at March 31, 2008, an increase of $348,000, or 37.4%, from the June 30, 2007 balance of $930,000, and represented .80% and .60% of total loans at those respective dates. The increase resulted from a provision of $607,000, which was partially offset by net charge-offs of $259,000. The increase in the provision was due to net charge offs, the declining real estate market and declining overall economic conditions. Although management believes that the allowance for loan losses at March 31, 2008, is adequate based upon the available facts and circumstances, there can be no assurance that additions to the allowance will not be necessary in future periods, which could adversely affect the Corporation's results of operations.

FFD Financial Corporation

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)

Deposits totaled $139.8 million at March 31, 2008, a $133,000, or .1%, decrease from total deposits at June 30, 2007. The decrease was primarily attributable to closing the limited service office in Coshocton, Ohio December 31, 2007. FHLB advances totaled $20.7 million at March 31, 2008, a $7.6 million, or 58.5%, increase from the June 30, 2007 total. The FHLB advances were used to fund loan growth.

Shareholders' equity totaled $18.2 million at March 31, 2008, an increase of $56,000, or .3%, over June 30, 2007. The increase was due primarily to period net earnings of $929,000, proceeds from the exercise of stock options totaling $19,000, and a decrease in the unrealized losses on securities designated as available for sale of $25,000, which were partially offset by dividends paid of $518,000 and the purchase of treasury shares totaling $416,000. The Bank is required to meet minimum capital standards promulgated by the Office of Thrift Supervision, and at March 31, 2008, the Bank's regulatory capital exceeded the minimum capital requirements.

The Corporation's net earnings totaled $929,000 for the nine months ended March 31, 2008, a decrease of $259,000, or 21.8%, from the net earnings of $1.2 million recorded in the comparable period in 2007. The $259,000, or 21.8%, decrease in net earnings resulted from increases of $410,000, or 208.1%, in the provision for losses on loans and $135,000, or 4.1%, in general, administrative and other expenses, which were partially offset by increases of $141,000, or 2.9%, in net interest income and $11,000, or 2.4%, in other income and a decrease of $134,000, or 21.7%, in income tax expense.

Total interest income increased by $511,000, or 6.0%, to $9.0 million for the nine months ended March 31, 2008, compared to the nine months ended March 31, 2007. Interest income on loans increased by $576,000, or 7.2%, due to an increase of $12.0 million, or 8.2%, in the average loan portfolio balance outstanding, which was partially offset by a seven basis point decrease in yield. Interest income on investment securities increased by $5,000, or 4.0%, due to an increase of $139,000, or 4.06%, in the average balance, which was partially offset by a four basis point decrease in yield. Interest income on interest-bearing deposits and other assets decreased by $68,000, or 23.2%, for the nine months ended March 31, 2008, due to a $955,000, or 12.2%, decrease in the average balance outstanding and a six basis point decrease in yield. Interest income on mortgage-backed securities decreased by $2,000, or 10.0%, due to a decrease of $96,000, or 21.8%, in the average balance outstanding.

Total interest expense increased by $370,000, or 10.2%, to $4.0 million for the nine months ended March 31, 2008, compared to the nine months ended March 31, 2007. Interest expense on deposits increased by $368,000, or 12.1%, due to a 15 basis point increase in the average cost of deposits, to 3.28%, for the 2008 period and a $9.2 million, or 7.1%, increase in the average balance of deposits outstanding period to period. Interest expense on borrowings increased by $2,000, or .4%, due to an eight basis point decrease in the average cost of borrowings, which was more than offset by an increase of $2.6 million, or 17.5%, in the average balance of borrowings outstanding.

As a result of the foregoing changes in interest income and interest expense, net interest income increased by $141,000, or 2.9%, for the nine months ended March 31, 2008, compared to the same period in 2007. The interest rate spreads were 3.70% and 3.83%, and the net interest margins were 3.95% and 4.11%, for the nine-month periods ended March 31, 2008 and 2007, respectively.

FFD Financial Corporation

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)

The Corporation recorded a $607,000 provision for losses on loans during the nine months ended March 31, 2008, and a $197,000 provision for the comparable period in 2007. Even though First Federal has not been involved in sub-prime real estate lending management believes that it was appropriate to increase the allowance for loan losses due to the declining real estate market, declining general economic conditions, loan portfolio growth and downgrading the classifications of some loans. Net charge offs of $259,000 were primarily related to commercial loans and one commercial real estate loan. There can be no assurance that the loan loss allowance will be adequate to cover losses on nonperforming loans in the future, and additional amounts may be added to the allowance in the future, which may adversely affect the Corporation's results of operations.

Other income totaled $462,000 for the nine months ended March 31, 2008, an increase of $11,000, or 2.4%, from the 2007 total. The $11,000 increase in other income resulted from increases of $21,000, or 16.0%, in other income and $4,000, or 2.1%, in service charges on deposit accounts, which were partially offset by a $14,000, or 11.0%, decrease in net gain on sale of loans.

General, administrative and other expense totaled $3.4 million for the nine months ended March 31, 2008, an increase of $135,000, or 4.1%, compared to the same period in 2007. The increase in general, administrative and other expense includes increases of $52,000, or 17.3%, in occupancy and equipment, $47,000, or 9.8%, in other operating expense, $36,000, or 22.6%, in professional and consulting fees, $19,000, or 12.7%, in checking account maintenance expense, $16,000, or 1.1%, in employee and director compensation and benefits, $9,000, or 3.6%, in data processing, and $8,000, or 4.8%, in franchise tax, which were partially offset by decreases of $47,000, or 27.8%, in advertising and $5,000, or 4.4% in postage and stationery supplies. The increase in occupancy and equipment was due to equipment purchases to convert the Sugarcreek office from a limited service office to a full service office. The increase in other operating expense was the result of increases in internet banking expense. The increase in employee compensation was due to normal merit increases and additional staffing from the conversion of the Sugarcreek office to a full service office. The increase in data processing expense was due to the Corporation's growth period to period.

The Corporation recorded a $483,000 income tax expense for the nine months ended March 31, 2008, a decrease of $134,000, or 21.7%, over the same period in 2007. The decrease resulted from a $393,000, or 21.8%, decrease in earnings before taxes. The Corporation's effective tax rates were 34.2% for both of the nine months ended March 31, 2008 and March 31, 2007.

FFD Financial Corporation

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)

The Corporation's net earnings totaled $159,000 for the three months ended March 31, 2008, a decrease of $188,000, or 54.2%, from the net earnings of $347,000 recorded in the comparable period in 2007. The $188,000, or 54.2%, decrease in net earnings resulted from increases of $313,000, or 329.5%, in the provision for losses on loans and $51,000, or 4.6%, in general, administrative and other expenses, which were partially offset by increases of $47,000, or 2.9%, in net interest income and $31,000, or 24.8%, in other income and a decrease of $98,000, or 54.1%, in income tax expense.

Total interest income increased by $33,000, or 1.1%, to $2.9 million for the three months ended March 31, 2008, compared to the three months ended March 31, 2007. Interest income on loans increased by $63,000, or 2.3%, due to an increase of $11.2 million, or 7.5%, in the average loan portfolio balance outstanding, which was partially offset by a 36 basis point decrease in yield. The current period decrease in yield generally reflects repricing of adjustable rate loans in the portfolio and the overall lower interest rate environment. Interest income on investment securities, interest-bearing deposits and other assets decreased by $30,000, or 21.6%, to a total of $109,000 for the three months ended March 31, 2008, due to a $237,000, or 2.1%, decrease in the average balance outstanding and a 101 basis point decrease in yield. Interest income on mortgage-backed securities did not change quarter to quarter although the average balance declined by $55,000, or 14.1%, and the yield decreased 18 basis points.

Total interest expense decreased by $14,000, or 1.1%, to $1.3 million for the three months ended March 31, 2008, compared to the three months ended March 31, 2007. Interest expense on deposits decreased by $37,000, or 3.4%, due to a 23 basis point decrease in the average cost of deposits, to 3.07%, which was partially offset by a $4.9 million increase in the average balance outstanding period to period. Interest expense on borrowings increased by $23,000, or 13.2%, due to an increase of $6.0 million, or 43.4%, in the average balance of advances outstanding, which was partially offset by a 106 basis point decrease in the average cost of borrowings.

As a result of the foregoing changes in interest income and interest expense, net interest income increased by $47,000, or 2.9%, for the three months ended March 31, 2008, compared to the same period in 2007. The interest rate spreads were 3.62% and 3.73%, and the net interest margins were 3.85% and 4.00%, for the three-month periods ended March 31, 2008 and 2007, respectively.

The Corporation recorded a $408,000 provision for losses on loans during the three months ended March 31, 2008, which was an increase of $313,000, or 329.5%, over the $95,000 provision for the comparable quarter in 2007. The quarterly increase in the provision for loan losses considers the declining real estate market along with declining overall economic conditions. There can be no assurance that the loan loss allowance will be adequate to cover losses on nonperforming loans in the future, and additional amounts may be added to the allowance in the future, which can adversely affect the Corporation's results of operations.

Other income totaled $156,000 for the three months ended March 31, 2008, an increase of $31,000, or 24.8%, from the 2007 total. The increase was due to increases of $14,000, or 40.0%, in gain on sale of loans, $10,000, or 37.0%, in other operating income, and $7,000, or 11.1%, in service charges on deposit accounts.

FFD Financial Corporation

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS (CONTINUED)

General, administrative and other expense totaled $1.1 million for the three months ended March 31, 2008, an increase of $51,000, or 4.6%, compared to the same period in 2007. The increase in general, administrative and other expense includes increases of $27,000, or 64.3%, in professional and consulting fees, $11,000, or, 10.2% in occupancy and equipment, $10,000, or 6.4%, in other expense, $10,000, or 1.9%, in employee compensation and benefits, $7,000, or 21.9%, in postage and stationery supplies, $6,000, or 12.5%, in checking account maintenance expense, and $4,000, or 4.7%, in data processing, which were partially offset by decreases of $23,000, or 42.6%, in advertising, and $1,000, or 1.7%, in franchise tax.

The Corporation recorded a $83,000 income tax expense for the three months ended March 31, 2008, a decrease of $98,000, or 54.1%, over the same period in 2007. The decrease resulted from a $286,000, or 54.2%, decrease in earnings before taxes. The Corporation's effective tax rates were 34.3% for both the three months ended March 31, 2008 and March 31, 2007.

The Corporation's Chief Executive Officer and Chief Financial Officer have evaluated the Corporation's disclosure controls and procedures (as defined under Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Corporation's disclosure controls and procedures are effective. There were no changes in the Corporation's internal controls which materially affected, or are reasonably likely to materially effect, the Corporation's internal controls over financial reporting.

FFD Financial Corporation

PART II

Not applicable

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Purchases of Equity Securities

 (d)
 (c) Maximum number
 Total number (or approximate
 (a) of shares dollar amount)
 Total (b) purchased as of shares that may
 number Average part of publicly yet be purchased
 of shares price paid announced plan under the plans
Period purchased per share or programs (1) or programs (1)
------ --------- --------- ---------------- ------------------

January 1, 2008
 through
January 31, 2008 - $ - - 39,354

February 1, 2008
 through
February 29, 2008 11,352 $15.23 11,352 28,002

March 1, 2008
 through
March 31, 2008 - $ - - 28,002

--------------------
(1) The Corporation's Board of Directors approved the repurchase of up to an
 aggregate of 55,310 of the Corporation's common shares pursuant to a
 program announced May 8, 2007 (the "Program"). Unless earlier terminated
 by the Board of Directors, the Program will expire when the Corporation
 has repurchased all shares authorized for repurchase under the Program.
 The Corporation has no other publicly announced repurchase plans or
 programs and no plans or programs expired or were terminated in the
 reported periods.

Not applicable

FFD Financial Corporation

PART II (CONTINUED)

None

None

31.1 Section 302 Chief Executive Officer certification
31.2 Section 302 Chief Financial Officer certification
32.1 Section 906 Chief Executive Officer certification
32.2 Section 906 Chief Financial Officer certification

FFD Financial Corporation

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FFD FINANCIAL CORPORATION

Date: May 15, 2008 By: /s/Trent B. Troyer
 ----------------------- -------------------------------------
 Trent B. Troyer
 President and Chief Executive Officer


Date: May 15, 2008 By: /s/Robert R. Gerber
 ----------------------- -------------------------------------
 Robert R. Gerber
 Senior Vice President, Treasurer and
 Chief Financial Officer

Ffd Financial (NASDAQ:FFDF)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024

Ffd Financial (NASDAQ:FFDF)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024