FFD Financial Corporation This presentation may contain statements - - PDF document

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2016 Annual Shareholders Meeting

FFD Financial Corporation

This presentation may contain statements which are "forward-looking statements" within the meaning

• f

Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Act of 1934, as

• amended. Actual results could vary materially depending
• n a variety of factors, including, but not limited to, risks

and uncertainties inherent in general and local banking and economic conditions and competitive factors specific to markets in which FFD Financial Corporation and its subsidiaries operate. FFD Financial Corporation assumes no liability to update this information.

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2016 in Review

Highlights

• 7th consecutive year of diluted earnings per share improvement
• Asset growth of 7.3%, from $273 million to $293 million in total assets
• Growth in book value per share from $24.98 to $27.59
• Formation of Captive Insurance Company

Operating Environment

• Strong real estate markets & demand
• Oil & gas exploration activity slowing due to lower oil prices
• Heightened regulation and industry scrutiny
• Continued historically low interest rates

Credit Quality

• Remains good and performance above industry/peers

Record Earnings

• Improvement of net interest margin
• Strong credit quality & low net charge offs continue
• Tax strategy aided by formation of Captive Insurance Company

Selected Stock Related Performance Numbers

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Stock Price Performance-FYE 6/30/16

Daily

Stock Price Performance-1st Qtr. 9/30/2016

Daily

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Stock Performance-Returns

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Five Years Three Years One Year

5.57% 4.51% 3.74% 16.86% 16.49% 21.70% 22.42% 21.00% 25.43%

Dividend Payout Yield Stock Price Appreciation Total Return

Compound Annual Rates for each period through Fiscal Year Ended June 30, 2016

1996 to 2016 – 20th Anniversary of Going Public as Stock Company

Initial Stock Offering Price 1996 = $5.501 Dividends Paid since 1996 = $11.17 Current Value of Stock 2016 = $33.50 11.53% Average Annual Return on Investment

11.53% !!

1 - Adjusted for tax free return of capital of $4.50

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1996 to 2016 – 20th Anniversary of Going Public as Stock Company

1996

1 Office 15 Employees $41.4 Million loans &

loans serviced

$52.2 Million in total

deposits

$59 Million in total

assets and loans serviced

2016

5 Offices 63 Employees $351.6 Million loans

& loans serviced

$250.4 Million in

total deposits

$403.6 Million in

total assets and loans serviced

Earnings Per Share & Net Book Value

$1.79 $2.45 $2.48 $2.84 $3.30 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $28.00 $30.00 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50

2012 2013 2014 2015 2016 Earnings Per Share Net Book Value

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Return on Average Assets (ROAA) & Average Equity (ROAE)

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.17% 0.86% 0.96% FFD ROAA @ 6/30/2016 SNL US Bank OTC $100-$500M SNL US Banks 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 12.56% 8.26% 8.39% FFD ROAE @ 06/30/2016 SNL US Bank OTC $100-$500M SNL US Banks

Selected Bank (Consolidated) Performance Numbers & Ratios

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Asset Growth

$200,000 $210,000 $220,000 $230,000 $240,000 $250,000 $260,000 $270,000 $280,000 $290,000 $300,000 2012 2013 2014 2015 2016

$235,191 $245,325 $254,072 $272,708 $292,582

Fiscal year ended June 30

(000’s)

Total Assets & Loans Serviced

$200,000 $240,000 $280,000 $320,000 $360,000 $400,000 $440,000 2012 2013 2014 2015 2016

$235,191 $245,325 $254,072 $272,708 $292,582 $97,100 $103,500 $100,600 $107,200 $111,000

Fiscal year ended June 30

Total Assets Residential Loans Serviced for Others

(000’s)

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Total Deposits

$160,000 $180,000 $200,000 $220,000 $240,000 $260,000 2012 2013 2014 2015 2016

$200,903 $212,335 $222,599 $242,697 $250,422

Fiscal Year Ended June 30

Total Deposits

(000’s)

Total Net Loans (1)

$150,000 $170,000 $190,000 $210,000 $230,000 $250,000 2012 2013 2014 2015 2016

$197,492 $202,832 $210,466 $219,888 $240,641

Fiscal year end June 30

(1) Includes loans held for sale

(000’s)

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Loans in Holmes County

$25,000 $35,000 $45,000 $55,000 $65,000 $75,000 2012 2013 2014 2015 2016

$42,943 $53,124 $55,946 $65,237 $71,990

Fiscal year end June 30

(000’s)

Deposit Market Share-Dover-New Phila.

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Deposit Market Share-Holmes Co.

Capital Adequacy

5000 10000 15000 20000 25000 30000

Common Equity Tier 1 Total Risk BasedCapital Tier 1 Risk Weighted Tier 1 Adjusted

Actual FFD Required For Well Capitalized

(000’s)

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Net Interest Margin

3.67% 3.62% 3.63% 3.53% 3.63% 3.68% 3.58% 3.54% 3.53% 3.70%

2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 3.70% 3.90% 2012 2013 2014 2015 2016 FFD Net Interest Margin SNL US Bank OTC $100-$500m

SNL Financial Average for 12 month period ended 06/30

Selected Credit Quality Numbers & Ratios

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Allowance for Loan Losses

1.16% 1.29% 1.29% 1.25% 1.18% 1.05% 1.10% 1.15% 1.20% 1.25% 1.30% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2012 2013 2014 2015 2016 ALLL Balance Net Charge-Offs Provisions Taken ALLL % of Total Loans (000’s)

For Fiscal Year Ended 06/30

Non-Performing Assets (NPA) to Assets

0.25% 0.75% 1.25% 1.75%

0.49% 1.34% 0.89%

FFD NPA @ 6/30/16 SNL US Banks OTC $100-$500m SNL US Banks

(SNL Financial Average as of 06/30/16-NPA’s include impaired assets, which also include Troubled Debt Restructure [TDR] loans which may be performing per restructured agreements)

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% Net Charge-Offs to Avg. Loans

0.000% 0.150% 0.300% 0.450% 0.00%

0.06% 0.41%

FFD NCO for year 6/30/16 SNL US Banks OTC $100-$500m SNL US Banks

(SNL Financial Average for the 12 month period ended 06/30/15)

Officers & Key Bank Staff attending today’s meeting

Scott Finnell, Executive Vice President Sally O’Donnell, Senior VP & Secretary Michele Larkin, Senior Vice President Greg Dorris, Vice President, Treasurer & CFO Stephenie Wilson, Vice President Matt Miller, Vice President Kris Kreinbihl, Vice President Kerry Egler-Whytsell, Asst. Vice President Carol Slemmer, Perriann Johns, Tiffany Kail, Marsha

Walker, Angela Delong, Twyla McCartney, & Leslie Riker, Banking Officers

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Outside Directors

Douglas G. Bambeck Matthew L. Beachy Richard A. Brinkman, Jr. Stephen G. Clinton Leonard L. Gundy David W. Kaufman Robert D. Sensel

Director Emeritus

E.L. “Cork” Loader

Bob Sensel Retirement

Served as a director of the bank

since 1993. Longest tenured director equal to Steve Clinton

Had a career in banking with

Bank One, Dover N.A. & Central Trust Company

Started second career as

entrepreneur owning Dover Hydraulics Inc. for the last 34 Years

Will enjoy his service as

Director Emeritus

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FFD Financial Corporation

Thank you for your support! Questions & Answers 2016 Annual Shareholders Meeting