FFD Financial Corporation This presentation may contain statements - PDF document

2016 Annual Shareholders Meeting FFD Financial Corporation This presentation may contain statements which are "forward-looking statements" within the meaning of 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 on 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. 1

2016 in Review � Highlights 7 th 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 2

Stock Price Performance-FYE 6/30/16 Daily Stock Price Performance-1 st Qtr. 9/30/2016 Daily 3

Stock Performance-Returns Dividend Payout Yield Stock Price Appreciation Total Return 30.00% 25.43% 22.42% 25.00% 21.70% 21.00% 20.00% 16.86% 16.49% 15.00% 10.00% 5.57% 4.51% 3.74% 5.00% 0.00% Five Years Three Years One Year 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 = $5.50 1 � 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 4

1996 to 2016 – 20th Anniversary of Going Public as Stock Company � 1996 � 2016 � 1 Office � 5 Offices � 15 Employees � 63 Employees � $41.4 Million loans & � $351.6 Million loans loans serviced & loans serviced � $52.2 Million in total � $250.4 Million in deposits total deposits � $59 Million in total � $403.6 Million in assets and loans total assets and loans serviced serviced Earnings Per Share & Net Book Value $3.50 $30.00 $3.30 $28.00 $3.00 $2.84 $26.00 $2.45 $2.48 $2.50 $24.00 $22.00 $2.00 $1.79 $20.00 $1.50 $18.00 $16.00 $1.00 $14.00 $0.50 $12.00 $0.00 $10.00 2012 2013 2014 2015 2016 Earnings Per Share Net Book Value 5

Return on Average Assets (ROAA) & Average Equity (ROAE) FFD ROAA @ 6/30/2016 FFD ROAE @ 06/30/2016 SNL US Bank OTC $100-$500M SNL US Bank OTC $100-$500M SNL US Banks SNL US Banks 12.56% 1.17% 13.00% 1.20% 0.96% 12.00% 0.86% 11.00% 1.00% 10.00% 8.26% 8.39% 0.80% 9.00% 0.60% 8.00% 7.00% 0.40% 6.00% 0.20% 5.00% 4.00% 0.00% Selected Bank (Consolidated) Performance Numbers & Ratios 6

Asset Growth (000’s) $300,000 $292,582 $290,000 $280,000 $272,708 $270,000 $260,000 $254,072 $245,325 $250,000 $235,191 $240,000 $230,000 $220,000 $210,000 $200,000 2012 2013 2014 2015 2016 Fiscal year ended June 30 Total Assets & Loans Serviced Total Assets Residential Loans Serviced for Others (000’s) $440,000 $400,000 $360,000 $111,000 $107,200 $320,000 $100,600 $103,500 $280,000 $97,100 $292,582 $240,000 $272,708 $254,072 $235,191 $245,325 $200,000 2012 2013 2014 2015 2016 Fiscal year ended June 30 7

Total Deposits Total Deposits (000’s) $260,000 $250,422 $242,697 $240,000 $222,599 $220,000 $212,335 $200,903 $200,000 $180,000 $160,000 2012 2013 2014 2015 2016 Fiscal Year Ended June 30 Total Net Loans (1) (000’s) $240,641 $250,000 $230,000 $219,888 $210,466 $202,832 $210,000 $197,492 $190,000 $170,000 $150,000 2012 2013 2014 2015 2016 Fiscal year end June 30 (1) Includes loans held for sale 8

Loans in Holmes County $71,990 (000’s) $75,000 $65,237 $65,000 $55,946 $53,124 $55,000 $42,943 $45,000 $35,000 $25,000 2012 2013 2014 2015 2016 Fiscal year end June 30 Deposit Market Share-Dover-New Phila. 9

Deposit Market Share-Holmes Co. Capital Adequacy Actual FFD Required For Well Capitalized (000’s) 30000 25000 20000 15000 10000 5000 0 Common Equity Tier 1 Total Risk BasedCapital Tier 1 Risk Weighted Tier 1 Adjusted 10

Net Interest Margin FFD Net Interest Margin SNL US Bank OTC $100-$500m 3.90% 3.70% 3.68% 3.67% 3.70% 3.63% 3.63% 3.62% 3.58% 3.54% 3.53% 3.53% 3.50% 3.30% 3.10% 2.90% 2.70% 2.50% 2012 2013 2014 2015 2016 SNL Financial Average for 12 month period ended 06/30 Selected Credit Quality Numbers & Ratios 11

Allowance for Loan Losses (000’s) ALLL Balance Net Charge-Offs Provisions Taken ALLL % of Total Loans 1.29% 1.29% $3,500 1.30% $3,000 1.25% 1.25% $2,500 1.20% $2,000 1.18% 1.16% $1,500 1.15% $1,000 1.10% $500 $0 1.05% 2012 2013 2014 2015 2016 For Fiscal Year Ended 06/30 Non-Performing Assets (NPA) to Assets FFD NPA @ 6/30/16 SNL US Banks OTC $100-$500m SNL US Banks 1.75% 1.34% 1.25% 0.89% 0.75% 0.49% 0.25% (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 ) 12

% Net Charge-Offs to Avg. Loans FFD NCO for year 6/30/16 SNL US Banks OTC $100-$500m SNL US Banks 0.41% 0.450% 0.300% 0.150% 0.06% 0.00% 0.000% (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 13

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 14

FFD Financial Corporation Thank you for your support! Questions & Answers 2016 Annual Shareholders Meeting 15