Exhibit 99.1
| NEWS RELEASE | |
| Contact: | William J. Small Chairman, President and CEO (419) 782-5015 bsmall@first-fed.com | |
For Immediate Release
FIRST DEFIANCE FINANCIAL CORP. REPORTS $5.4 MILLION OF NET INCOME FOR THE 2012 THIRD QUARTER, UP 34% FROM THIRD QUARTER 2011
| · | Net Income of $5.4 million for 2012 third quarter, up from $4.1 million in the third quarter of 2011 |
| · | Diluted earnings per share for the 2012 third quarter of $0.54 up from $0.36 in the third quarter of 2011 |
| · | Provision for Loan Losses of $705,000, down from $3.1 million in the third quarter of 2011 |
| · | Net Interest Margin of 3.80%, down from 3.89% for the third quarter of 2011 |
DEFIANCE, OHIO (Oct 22, 2012)– First Defiance Financial Corp. (NASDAQ: FDEF) announced today that net income for its third quarter ended September 30, 2012 totaled $5.4 million, or $0.54 per diluted common share, compared to $4.1 million or $0.36 per diluted common share for the same period in 2011.
“We are extremely pleased with the earnings results this quarter, not just with the strong bottom line number, but with the overall quality behind the earnings. The third quarter highlight was the substantial reduction in the level of provision of loan loss, which helped drive our earnings growth for the quarter,” said William J. Small, Chairman, President, and Chief Executive Officer of First Defiance Financial Corp. “We are also pleased that we continued to see loan growth during the quarter, as well as improvement in our linked quarter margin.”
Credit Quality
The third quarter results include expense for provision for loan losses of $705,000, compared with $3.1 million for the same period in 2011 and $4.1 million in the second quarter of 2012.
Non-performing loans totaled $42.1 million at September 30, 2012, a decrease of $3.2 million or 7% from $45.3 million at June 30, 2012. The September 30, 2012 balance included $37.8 million of loans that are on non-accrual and another $4.3 million of loans that are still accruing, but are considered non-performing because of changes in terms granted to borrowers. In addition, First Defiance had $2.8 million of real estate owned at September 30, 2012 which is down from $5.8 million at September 30, 2011. For the third quarter of 2012, First Defiance recorded net charge-offs of $804,000, which when annualized, represented 0.22% of average loans outstanding at September 30, 2012, down from the second quarter of 2012 level of 1.78%. The allowance for loan loss as a percentage of total loans decreased to 1.74% at September 30, 2012 from 2.24% and 2.61% at December 31, 2011 and September 30, 2011, respectively.
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“We saw a substantial decline in the level of charge offs during the quarter reaching the lowest levels since before the economic downturn. We have also made continued improvement in our levels of non-performing assets,” Small said. “We believe we are at a point where declines in property values have materially slowed and has led to a more stable loan portfolio valuation.”
Net Interest Margin down from 2011 Third Quarter
Net interest income was $17.2 million in the third quarter of 2012 compared to $17.6 million for the same period in 2011. Net interest margin was 3.80% for the third quarter of 2012 compared to 3.75% in the second quarter of 2012 and 3.89% in the third quarter of 2011. The cost of interest-bearing liabilities and non-interest-bearing demand deposits decreased by 24 basis points, to 0.66% from 0.90% for the third quarter of 2011, but this was offset by a decline in the yield on interest earning assets of 32 basis points, to 4.44% for the third quarter of 2012 from 4.76% for the 2011 third quarter.
“The challenges on the net interest margin in this low rate environment persist and will continue as competitive pressures increase,” said Small. “We are very pleased that we were able to maintain our overall consistent asset yield compared with the second quarter of 2012.”
Non-Interest Income
First Defiance’s non-interest income for the third quarter of 2012 was $7.8 million compared with $6.9 million for the same period in 2011. Service fees and other charges were $2.8 million for the third quarter of 2012, compared with $3.1 million in the third quarter of 2011. Non-sufficient funds income was $1.1 million in the third quarter of 2012, down $379,000 from the third quarter of 2011. Other non-interest income increased to $316,000 in the third quarter of 2012 from a loss of $34,000 for the same period of 2011. This was the result of an increase of $75,000 in the value of the assets of the deferred compensation plan in the third quarter of 2012, compared to a decrease in those assets of $285,000 for the same period in 2011. Mortgage banking income increased to $2.2 million for the third quarter of 2012 from $1.4 million in the third quarter of 2011. Gains from the sale of mortgage loans increased in the third quarter of 2012 to $2.9 million from $2.1 million in the third quarter of 2011. Mortgage loan servicing revenue was down slightly at $824,000 in the third quarter of 2012 compared with $852,000 in the third quarter of 2011.
The third quarter of 2012 saw a continuation of the low interest rate environment which led to a negative adjustment to previously recorded mortgage servicing rights (“MSR”) impairment. First Defiance had a negative change in the valuation adjustment in mortgage servicing assets of $600,000 in the third quarter of 2012, compared with a negative valuation adjustment of $1,072,000 in the third quarter of 2011. The negative MSR valuation adjustment is a reflection of the decrease in the fair value of certain sectors of the Company’s portfolio of MSRs for this period. The interest rate environment that gives rise to increased mortgage origination activity also typically causes increases in MSR amortization and impairment, creating a natural hedge in the mortgage banking line of business.
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“We have been able to steadily increase our mortgage banking income which drove the year over year improvement in our non-interest income,” said Small.
Non-Interest Expenses
Total non-interest expense was $16.5 million for the third quarter of 2012, compared with $15.5 million in the third quarter of 2011.
Compensation and benefits expense increased $72,000 to $8.2 million, compared to the third quarter of 2011 and $8.0 million in the second quarter of 2012. Other non-interest expense increased to $3.2 million in the third quarter of 2012 from $2.7 million for the third quarter of 2011. The other non-interest expense increase is mainly attributable to the $107,000 increase in the value of the liabilities of the deferred compensation plan for the third quarter of 2012 compared to a decrease in those liabilities of $283,000 for the same period of 2011. Credit, collection and real estate owned costs were $456,000 for the third quarter of 2012 compared to $573,000 in the same period of 2011 and secondary market buy-back losses were $115,000 in the third quarter of 2012 compared to $99,000 in the same period of 2011.
“These continue to be very challenging economic times which are compounded by the distraction of the elections,” said Small. “While the earnings for the quarter were positively impacted by lower provision expense and stronger mortgage banking income, we are not losing focus on our base operating strategy and core results. We continue to concentrate on improvement in asset quality which will result in lower credit costs as well as to focus on ways to become more efficient in our delivery of quality products and services.”
Year-To-Date Results
Net income for the first nine months of 2012 totaled $13.5 million, or $1.29 per diluted common share, compared to $11.5 million or $1.06 per diluted common share for the same period in 2011. The YTD EPS results include the positive impact of $.06 per diluted share relating to the redemption of the TARP preferred shares.
For the nine month period ended September 30, 2012, net interest income totaled $51.6 million, compared with $52.4 million in the first nine months of 2011. Average interest-earning assets increased to $1.878 billion for the first nine months of 2012, compared to $1.844 billion for the first nine months of 2011. Net interest margin for the first nine months of 2012 was 3.78%, down 11 basis points from the 3.89% margin reported in the nine month period ended September 30, 2011.
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The provision for loan losses for the first nine months of 2012 was $8.3 million, flat with the same period in 2011.
Non-interest income for the first nine months of 2012 was $24.2 million, compared to $19.6 million during the same period of 2011. Service fees and other charges were $8.1 million for the first nine months of 2012, down $287,000 compared to the first nine months of 2011. Mortgage banking income increased to $6.9 million in the first nine months of 2012, compared with $4.5 million in the first nine months of 2011. Insurance and investment sales revenues increased to $6.7 million for the first nine months of 2012, compared with $5.1 million during the first nine months of 2011. Non-interest income for the first nine months of 2012 included $528,000 of gain on the sale of securities compared with $49,000 in the first nine months of 2011.
Non-interest expense increased to $48.2 million for the first nine months of 2012 from $47.2 million in the first nine months of 2011. Compensation and benefits expense increased $1.3 million in the first nine months of 2012 compared to the first nine months of 2011 mainly resulting from the insurance acquisition in July 2011 which added $1.2 million in compensation and benefits expense in the first nine months of 2012 compared to $415,000 for the same period in 2011. Credit, collection and real estate owned costs have decreased $766,000 in the first nine months of 2012 from the first nine months of 2011 and secondary market buy-back losses have declined $201,000 in the first nine months of 2012 from the first nine months of 2011.
Total Assets at $2.06 Billion
Total assets at September 30, 2012 were $2.06 billion, compared to $2.07 billion at December 31, 2011 and $2.06 billion at September 30, 2011. Net loans receivable (excluding loans held for sale) were $1.49 billion at September 30, 2012, compared to $1.45 billion at December 31, 2011 and $1.42 billion at September 30, 2011. Total cash and cash equivalents were $92.4 million at September 30, 2012, compared with $174.9 million at December 31, 2011 and $190.2 million at September 30, 2011. Also at September 30, 2012, goodwill and other intangible assets totaled $66.6 million, compared to $67.7 million at December 31, 2011 and $68.1 million at September 30, 2011.
Total deposits at September 30, 2012 were $1.61 billion compared with $1.60 billion at December 31, 2011 and $1.59 billion at September 30, 2011. Non-interest bearing deposits at September 30, 2012 were $271.3 million, compared to $245.9 million at December 31, 2011 and $239.6 million at September 30, 2011. Total stockholders’ equity was $255.1 million at September 30, 2012, compared to $278.1 million at December 31, 2011 and $275.1 million at the September 30, 2011.
Conference Call
First Defiance Financial Corp. will host a conference call at 11:00 a.m. (EST) on Tuesday, Oct 23, 2012 to discuss the earnings results and business trends. The conference call may be accessed by calling1-877-317-6789. A live webcast may be accessed athttp://services.choruscall.com/links/fdef121023.html
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Audio replay of the Internet Web cast will be available atwww.fdef.com until October 23, 2013 at 9:00 a.m.
First Defiance Financial Corp.
First Defiance Financial Corp., headquartered in Defiance, Ohio, is the holding company for First Federal Bank of the Midwest and First Insurance Group. First Federal operates 33 offices and 42 ATM locations in northwest Ohio, southeast Michigan and Fort Wayne, Indiana. First Insurance Group specializes in property and casualty and group health and life insurance, with six offices throughout northwest Ohio.
For more information, visit the company’s Web site atwww.fdef.com.
Financial Statements and Highlights Follow-
Safe Harbor Statement
This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Act of 1934, as amended, which are intended to be safe harbors created thereby. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of First Defiance Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions, the nature, extent and timing of governmental actions and reforms,future movements of interest rates, the production levels of mortgage loan generation, the ability to continue to grow loans and deposits, the ability to benefit from a changing interest rate environment, the ability to sustain credit quality ratios at current or improved levels, the ability to sell real estate owned properties, continued strength in the market area for First Federal Bank of the Midwest, and the ability of the Company to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including those inherent in general and local banking, insurance and mortgage conditions, competitive factors specific to markets in which the Company and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions or capital market conditions and other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission (SEC) filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2011. One or more of these factors have affected or could in the future affect the Company's business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
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| Consolidated Balance Sheets |
| First Defiance Financial Corp. |
| (Unaudited) | (Unaudited) | |||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| (in thousands) | 2012 | 2011 | 2011 | |||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Cash and amounts due from depository institutions | $ | 32,406 | $ | 31,931 | $ | 30,234 | ||||||
| Interest-bearing deposits | 60,000 | 143,000 | 160,000 | |||||||||
| 92,406 | 174,931 | 190,234 | ||||||||||
| Securities | ||||||||||||
| Available-for sale, carried at fair value | 269,098 | 232,919 | 232,628 | |||||||||
| Held-to-maturity, carried at amortized cost | 585 | 661 | 736 | |||||||||
| 269,683 | 233,580 | 233,364 | ||||||||||
| Loans | 1,512,132 | 1,487,076 | 1,460,514 | |||||||||
| Allowance for loan losses | (26,310 | ) | (33,254 | ) | (38,110 | ) | ||||||
| Loans, net | 1,485,822 | 1,453,822 | 1,422,404 | |||||||||
| Loans held for sale | 12,201 | 13,841 | 12,951 | |||||||||
| Mortgage servicing rights | 7,752 | 8,690 | 8,660 | |||||||||
| Accrued interest receivable | 6,819 | 6,142 | 6,654 | |||||||||
| Federal Home Loan Bank stock | 20,655 | 20,655 | 20,655 | |||||||||
| Bank Owned Life Insurance | 41,591 | 35,908 | 35,682 | |||||||||
| Office properties and equipment | 40,324 | 40,045 | 40,428 | |||||||||
| Real estate and other assets held for sale | 2,843 | 3,628 | 5,805 | |||||||||
| Goodwill | 61,525 | 61,525 | 61,568 | |||||||||
| Core deposit and other intangibles | 5,083 | 6,151 | 6,499 | |||||||||
| Deferred taxes | - | 629 | 2,988 | |||||||||
| Other assets | 8,968 | 8,643 | 10,465 | |||||||||
| Total Assets | $ | 2,055,672 | $ | 2,068,190 | $ | 2,058,357 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||||
| Non-interest-bearing deposits | $ | 271,305 | $ | 245,927 | $ | 239,594 | ||||||
| Interest-bearing deposits | 1,338,045 | 1,350,314 | 1,350,386 | |||||||||
| Total deposits | 1,609,350 | 1,596,241 | 1,589,980 | |||||||||
| Advances from Federal Home Loan Bank | 81,807 | 81,841 | 81,852 | |||||||||
| Notes payable and other interest-bearing liabilities | 51,991 | 60,386 | 55,477 | |||||||||
| Subordinated debentures | 36,083 | 36,083 | 36,083 | |||||||||
| Advance payments by borrowers for tax and insurance | 971 | 1,402 | 897 | |||||||||
| Deferred taxes | 1,479 | - | - | |||||||||
| Other liabilities | 18,855 | 14,110 | 18,950 | |||||||||
| Total liabilities | 1,800,536 | 1,790,063 | 1,783,239 | |||||||||
| Stockholders’ Equity | ||||||||||||
| Preferred stock, net of discount | - | 36,641 | 36,594 | |||||||||
| Common stock, net | 127 | 127 | 127 | |||||||||
| Common stock warrant | 878 | 878 | 878 | |||||||||
| Additional paid-in-capital | 136,138 | 135,825 | 135,763 | |||||||||
| Accumulated other comprehensive income | 5,863 | 3,997 | 4,179 | |||||||||
| Retained earnings | 159,433 | 148,010 | 144,937 | |||||||||
| Treasury stock, at cost | (47,303 | ) | (47,351 | ) | (47,360 | ) | ||||||
| Total stockholders’ equity | 255,136 | 278,127 | 275,118 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 2,055,672 | $ | 2,068,190 | $ | 2,058,357 | ||||||
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Consolidated Statements of Income (Unaudited)
First Defiance Financial Corp.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Interest Income: | ||||||||||||||||
| Loans | $ | 18,000 | $ | 19,488 | $ | 54,847 | $ | 59,553 | ||||||||
| Investment securities | 1,842 | 1,865 | 5,619 | 5,231 | ||||||||||||
| Interest-bearing deposits | 43 | 110 | 249 | 351 | ||||||||||||
| FHLB stock dividends | 213 | 203 | 656 | 662 | ||||||||||||
| Total interest income | 20,098 | 21,666 | 61,371 | 65,797 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Deposits | 1,909 | 2,791 | 6,394 | 9,648 | ||||||||||||
| FHLB advances and other | 759 | 768 | 2,260 | 2,442 | ||||||||||||
| Subordinated debentures | 172 | 333 | 813 | 945 | ||||||||||||
| Notes Payable | 83 | 127 | 284 | 397 | ||||||||||||
| Total interest expense | 2,923 | 4,019 | 9,751 | 13,432 | ||||||||||||
| Net interest income | 17,175 | 17,647 | 51,620 | 52,365 | ||||||||||||
| Provision for loan losses | 705 | 3,097 | 8,306 | 8,335 | ||||||||||||
| Net interest income after provision for loan losses | 16,470 | 14,550 | 43,314 | 44,030 | ||||||||||||
| Non-interest Income: | ||||||||||||||||
| Service fees and other charges | 2,790 | 3,071 | 8,148 | 8,435 | ||||||||||||
| Mortgage banking income | 2,220 | 1,355 | 6,924 | 4,549 | ||||||||||||
| Gain on sale of non-mortgage loans | 8 | 52 | 50 | 351 | ||||||||||||
| Gain on sale of securities | 103 | - | 528 | 49 | ||||||||||||
| Impairment on securities | - | - | - | (2 | ) | |||||||||||
| Insurance and investment sales commissions | 1,952 | 2,042 | 6,679 | 5,146 | ||||||||||||
| Trust income | 147 | 143 | 470 | 465 | ||||||||||||
| Income from Bank Owned Life Insurance | 244 | 228 | 683 | 703 | ||||||||||||
| Other non-interest income | 316 | (34 | ) | 712 | (56 | ) | ||||||||||
| Total Non-interest Income | 7,780 | 6,857 | 24,194 | 19,640 | ||||||||||||
| Non-interest Expense: | ||||||||||||||||
| Compensation and benefits | 8,245 | 8,173 | 24,760 | 23,458 | ||||||||||||
| Occupancy | 2,170 | 1,779 | 5,718 | 5,423 | ||||||||||||
| FDIC insurance premium | 691 | 674 | 2,031 | 2,264 | ||||||||||||
| State franchise tax | 623 | 541 | 1,649 | 1,625 | ||||||||||||
| Data processing | 1,140 | 1,077 | 3,477 | 3,117 | ||||||||||||
| Acquisition related charges | - | 99 | - | 234 | ||||||||||||
| Amortization of intangibles | 344 | 386 | 1,068 | 1,051 | ||||||||||||
| Other non-interest expense | 3,237 | 2,733 | 9,538 | 10,003 | ||||||||||||
| Total Non-interest Expense | 16,450 | 15,462 | 48,241 | 47,175 | ||||||||||||
| Income before income taxes | 7,800 | 5,945 | 19,267 | 16,495 | ||||||||||||
| Income taxes | 2,366 | 1,884 | 5,759 | 5,024 | ||||||||||||
| Net Income | $ | 5,434 | $ | 4,061 | $ | 13,508 | $ | 11,471 | ||||||||
| Dividends Accrued on Preferred Shares | (3 | ) | (463 | ) | (900 | ) | (1,388 | ) | ||||||||
| Accretion on Preferred Shares | (8 | ) | (45 | ) | (359 | ) | (132 | ) | ||||||||
| Redemption of Preferred Shares | 0 | 0 | 642 | 0 | ||||||||||||
| Net Income Applicable to Common Shares | $ | 5,423 | $ | 3,553 | $ | 12,891 | $ | 9,951 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.56 | $ | 0.37 | $ | 1.33 | $ | 1.08 | ||||||||
| Diluted | $ | 0.54 | $ | 0.36 | $ | 1.29 | $ | 1.06 | ||||||||
| Average Shares Outstanding: | ||||||||||||||||
| Basic | 9,729 | 9,725 | 9,728 | 9,248 | ||||||||||||
| Diluted | 10,000 | 9,895 | 9,993 | 9,417 | ||||||||||||
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Financial Summary and Comparison
First Defiance Financial Corp.
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| (dollars in thousands, except per share data) | 2012 | 2011 | %change | 2012 | 2011 | %change | ||||||||||||||||||
| Summary of Operations | ||||||||||||||||||||||||
| Tax-equivalent interest income (1) | $ | 20,525 | $ | 22,052 | (6.9 | )% | $ | 62,605 | $ | 66,881 | (6.4 | )% | ||||||||||||
| Interest expense | 2,923 | 4,019 | (27.3 | ) | 9,751 | 13,432 | (27.4 | ) | ||||||||||||||||
| Tax-equivalent net interest income (1) | 17,602 | 18,033 | (2.4 | ) | 52,854 | 53,449 | (1.1 | ) | ||||||||||||||||
| Provision for loan losses | 705 | 3,097 | (77.2 | ) | 8,306 | 8,335 | (0.3 | ) | ||||||||||||||||
| Tax-equivalent NII after provision for loan loss (1) | 16,897 | 14,936 | 13.1 | 44,548 | 45,114 | (1.3 | ) | |||||||||||||||||
| Investment Securities gains | 103 | - | NM | 528 | 49 | NM | ||||||||||||||||||
| Impairment losses on securities | - | - | - | - | (2 | ) | (100.0 | ) | ||||||||||||||||
| Non-interest income (excluding securities gains/losses) | 7,677 | 6,857 | 12.0 | 23,666 | 19,593 | 20.8 | ||||||||||||||||||
| Non-interest expense | 16,450 | 15,462 | 6.4 | 48,241 | 47,175 | 2.3 | ||||||||||||||||||
| Income taxes | 2,366 | 1,884 | 25.6 | 5,759 | 5,024 | 14.6 | ||||||||||||||||||
| Net Income | 5,434 | 4,061 | 33.8 | 13,508 | 11,471 | 17.8 | ||||||||||||||||||
| Dividends Declared on Preferred Shares | (3 | ) | (463 | ) | (99.4 | ) | (900 | ) | (1,388 | ) | (35.2 | ) | ||||||||||||
| Accretion on Preferred Shares | (8 | ) | (45 | ) | (82.2 | ) | (359 | ) | (132 | ) | 172.0 | |||||||||||||
| Net Income Applicable to Common Shares | 5,423 | 3,553 | 52.6 | 12,891 | 9,951 | 29.5 | ||||||||||||||||||
| Tax equivalent adjustment (1) | 427 | 386 | 10.6 | 1,234 | 1,084 | 13.8 | ||||||||||||||||||
| At Period End | ||||||||||||||||||||||||
| Assets | 2,055,672 | 2,058,357 | (0.1 | ) | ||||||||||||||||||||
| Earning assets | 1,874,671 | 1,887,484 | (0.7 | ) | ||||||||||||||||||||
| Loans | 1,512,132 | 1,460,514 | 3.5 | |||||||||||||||||||||
| Allowance for loan losses | 26,310 | 38,110 | (31.0 | ) | ||||||||||||||||||||
| Deposits | 1,609,350 | 1,589,980 | 1.2 | |||||||||||||||||||||
| Stockholders’ equity | 255,136 | 275,118 | (7.3 | ) | ||||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||
| Assets | 2,047,139 | 2,056,111 | (0.4 | ) | 2,076,772 | 2,055,199 | 1.0 | |||||||||||||||||
| Earning assets | 1,849,715 | 1,843,881 | 0.3 | 1,878,032 | 1,843,811 | 1.9 | ||||||||||||||||||
| Deposits and interest-bearing liabilities | 1,774,312 | 1,762,663 | 0.7 | 1,785,353 | 1,777,696 | 0.4 | ||||||||||||||||||
| Loans | 1,481,995 | 1,419,987 | 4.4 | 1,467,038 | 1,436,505 | 2.1 | ||||||||||||||||||
| Deposits | 1,605,749 | 1,583,173 | 1.4 | 1,615,039 | 1,588,526 | 1.7 | ||||||||||||||||||
| Stockholders’ equity | 251,592 | 271,736 | (7.4 | ) | 270,824 | 259,935 | 4.2 | |||||||||||||||||
| Stockholders’ equity / assets | 12.29 | % | 13.22 | % | (7.0 | ) | 13.04 | % | 12.65 | % | 3.1 | |||||||||||||
| Per Common Share Data | ||||||||||||||||||||||||
| Net Income | ||||||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.37 | 51.4 | $ | 1.33 | $ | 1.08 | 23.1 | ||||||||||||||
| Diluted | 0.54 | 0.36 | 50.0 | 1.29 | 1.06 | 21.7 | ||||||||||||||||||
| Dividends | 0.05 | - | NM | 0.15 | - | NM | ||||||||||||||||||
| Market Value: | ||||||||||||||||||||||||
| High | $ | 18.06 | $ | 15.51 | 16.4 | $ | 18.06 | $ | 15.51 | 16.4 | ||||||||||||||
| Low | 15.80 | 12.60 | 25.4 | 14.41 | 11.89 | 21.2 | ||||||||||||||||||
| Close | 17.26 | 13.14 | 31.4 | 17.26 | 13.14 | 31.4 | ||||||||||||||||||
| Common Book Value | 26.13 | 24.43 | 7.0 | 26.13 | 24.43 | 7.0 | ||||||||||||||||||
| Tangible Common Book Value | 19.29 | 17.44 | 10.6 | 19.29 | 17.44 | 10.6 | ||||||||||||||||||
| Shares outstanding, end of period (000) | 9,729 | 9,726 | 0.0 | 9,729 | 9,726 | 0.0 | ||||||||||||||||||
| Performance Ratios (annualized) | ||||||||||||||||||||||||
| Tax-equivalent net interest margin (1) | 3.80 | % | 3.89 | % | (2.2 | ) | 3.78 | % | 3.89 | % | (3.0 | ) | ||||||||||||
| Return on average assets | 1.06 | % | 0.78 | % | 34.8 | 0.87 | % | 0.75 | % | 16.4 | ||||||||||||||
| Return on average equity | 8.59 | % | 5.93 | % | 44.9 | 6.66 | % | 5.90 | % | 12.9 | ||||||||||||||
| Efficiency ratio (2) | 65.07 | % | 62.12 | % | 4.8 | 63.04 | % | 64.59 | % | (2.4 | ) | |||||||||||||
| Effective tax rate | 30.33 | % | 31.69 | % | (4.3 | ) | 29.89 | % | 30.46 | % | (1.9 | ) | ||||||||||||
| Dividend payout ratio (basic) | 8.93 | % | 0.00 | % | NM | 7.52 | % | 0.00 | % | NM | ||||||||||||||
| (1) | Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35% |
| (2) | Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net. |
| NM Percentage change not meaningful | |
| 8 |
Income from Mortgage Banking (Unaudited)
Revenue from sales and servicing of mortgage loans consisted of the following:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Gain from sale of mortgage loans | $ | 2,888 | $ | 2,128 | $ | 7,890 | $ | 3,954 | ||||||||
| Mortgage loan servicing revenue (expense): | ||||||||||||||||
| Mortgage loan servicing revenue | 824 | 852 | 2,499 | 2,529 | ||||||||||||
| Amortization of mortgage servicing rights | (892 | ) | (553 | ) | (2,610 | ) | (1,349 | ) | ||||||||
| Mortgage servicing rights valuation adjustments | (600 | ) | (1,072 | ) | (855 | ) | (585 | ) | ||||||||
| (668 | ) | (773 | ) | (966 | ) | 595 | ||||||||||
| Total revenue from sale and servicing of mortgage loans | $ | 2,220 | $ | 1,355 | $ | 6,924 | $ | 4,549 | ||||||||
| 9 |
Yield Analysis
First Defiance Financial Corp.
| Three Months Ended September 30, | ||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||
| Balance | Interest(1) | Rate(2) | Balance | Interest(1) | Rate(2) | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable | $ | 1,481,995 | $ | 18,024 | 4.84 | % | $ | 1,419,987 | $ | 19,519 | 5.45 | % | ||||||||||||
| Securities | 274,327 | 2,245 | 3.37 | % | 220,040 | 2,220 | 4.10 | % | ||||||||||||||||
| Interest Bearing Deposits | 72,738 | 43 | 0.24 | % | 183,199 | 110 | 0.24 | % | ||||||||||||||||
| FHLB stock | 20,655 | 213 | 4.10 | % | 20,655 | 203 | 3.90 | % | ||||||||||||||||
| Total interest-earning assets | 1,849,715 | 20,525 | 4.44 | % | 1,843,881 | 22,052 | 4.76 | % | ||||||||||||||||
| Non-interest-earning assets | 197,424 | 212,230 | ||||||||||||||||||||||
| Total assets | $ | 2,047,139 | $ | 2,056,111 | ||||||||||||||||||||
| Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest bearing deposits | $ | 1,339,333 | $ | 1,909 | 0.57 | % | $ | 1,353,009 | $ | 2,791 | 0.82 | % | ||||||||||||
| FHLB advances and other | 81,812 | 759 | 3.69 | % | 88,146 | 768 | 3.46 | % | ||||||||||||||||
| Other Borrowings | 50,610 | 83 | 0.65 | % | 55,149 | 127 | 0.91 | % | ||||||||||||||||
| Subordinated debentures | 36,141 | 172 | 1.89 | % | 36,195 | 333 | 3.65 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,507,896 | 2,923 | 0.77 | % | 1,532,499 | 4,019 | 1.04 | % | ||||||||||||||||
| Non-interest bearing deposits | 266,416 | - | - | 230,164 | - | - | ||||||||||||||||||
| Total including non-interest-bearing demand deposits | 1,774,312 | 2,923 | 0.66 | % | 1,762,663 | 4,019 | 0.90 | % | ||||||||||||||||
| Other non-interest-bearing liabilities | 21,235 | 21,712 | ||||||||||||||||||||||
| Total liabilities | 1,795,547 | 1,784,375 | ||||||||||||||||||||||
| Stockholders' equity | 251,592 | 271,736 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,047,139 | $ | 2,056,111 | ||||||||||||||||||||
| Net interest income; interest rate spread | $ | 17,602 | 3.67 | % | $ | 18,033 | 3.72 | % | ||||||||||||||||
| Net interest margin (3) | 3.80 | % | 3.89 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest bearing liabilities | 123 | % | 120 | % | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||
| Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable | $ | 1,467,038 | $ | 54,925 | 5.00 | % | $ | 1,436,505 | $ | 59,650 | 5.57 | % | ||||||||||||
| Securities | 261,628 | 6,775 | 3.58 | % | 195,640 | 6,218 | 4.33 | % | ||||||||||||||||
| Interest Bearing Deposits | 128,711 | 249 | 0.26 | % | 190,776 | 351 | 0.25 | % | ||||||||||||||||
| FHLB stock | 20,655 | 656 | 4.24 | % | 20,890 | 662 | 4.25 | % | ||||||||||||||||
| Total interest-earning assets | 1,878,032 | 62,605 | 4.45 | % | 1,843,811 | 66,881 | 4.86 | % | ||||||||||||||||
| Non-interest-earning assets | 198,740 | 211,388 | ||||||||||||||||||||||
| Total assets | $ | 2,076,772 | $ | 2,055,199 | ||||||||||||||||||||
| Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest bearing deposits | $ | 1,357,499 | $ | 6,394 | 0.63 | % | $ | 1,362,239 | $ | 9,648 | 0.95 | % | ||||||||||||
| FHLB advances and other | 81,823 | 2,260 | 3.69 | % | 97,610 | 2,442 | 3.35 | % | ||||||||||||||||
| Other Borrowings | 52,312 | 284 | 0.73 | % | 55,341 | 397 | 0.96 | % | ||||||||||||||||
| Subordinated debentures | 36,179 | 813 | 3.00 | % | 36,219 | 945 | 3.50 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,527,813 | 9,751 | 0.85 | % | 1,551,409 | 13,432 | 1.16 | % | ||||||||||||||||
| Non-interest bearing deposits | 257,540 | - | - | 226,287 | - | - | ||||||||||||||||||
| Total including non-interest-bearing demand deposits | 1,785,353 | 9,751 | 0.73 | % | 1,777,696 | 13,432 | 1.01 | % | ||||||||||||||||
| Other non-interest-bearing liabilities | 20,595 | 17,568 | ||||||||||||||||||||||
| Total liabilities | 1,805,948 | 1,795,264 | ||||||||||||||||||||||
| Stockholders' equity | 270,824 | 259,935 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,076,772 | $ | 2,055,199 | ||||||||||||||||||||
| Net interest income; interest rate spread | $ | 52,854 | 3.60 | % | $ | 53,449 | 3.70 | % | ||||||||||||||||
| Net interest margin (3) | 3.78 | % | 3.89 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest bearing liabilities | 123 | % | 119 | % | ||||||||||||||||||||
| (1) | Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 35%. |
| (2) | Annualized |
| (3) | Net interest margin is net interest income divided by average interest-earning assets. |
| 10 |
Selected Quarterly Information
First Defiance Financial Corp.
| (dollars in thousands, except per share data) | 3rd Qtr 2012 | 2nd Qtr 2012 | 1st Qtr 2012 | 4th Qtr 2011 | 3rd Qtr 2011 | |||||||||||||||
| Summary of Operations | ||||||||||||||||||||
| Tax-equivalent interest income (1) | $ | 20,525 | $ | 20,935 | $ | 21,144 | $ | 21,665 | $ | 22,052 | ||||||||||
| Interest expense | 2,923 | 3,273 | 3,555 | 3,754 | 4,019 | |||||||||||||||
| Tax-equivalent net interest income (1) | 17,602 | 17,662 | 17,589 | 17,911 | 18,033 | |||||||||||||||
| Provision for loan losses | 705 | 4,097 | 3,503 | 4,099 | 3,097 | |||||||||||||||
| Tax-equivalent NII after provision for loan losses (1) | 16,897 | 13,565 | 14,086 | 13,812 | 14,936 | |||||||||||||||
| Investment securities gains, including impairment | 103 | 382 | 43 | 169 | - | |||||||||||||||
| Non-interest income (excluding securities gains/losses) | 7,677 | 7,612 | 8,376 | 7,707 | 6,857 | |||||||||||||||
| Non-interest expense | 16,450 | 15,532 | 16,259 | 15,589 | 15,462 | |||||||||||||||
| Income taxes | 2,366 | 1,690 | 1,703 | 1,640 | 1,884 | |||||||||||||||
| Net income | 5,434 | 3,921 | 4,153 | 4,064 | 4,061 | |||||||||||||||
| Dividends Declared on Preferred Shares | (3 | ) | (435 | ) | (462 | ) | (462 | ) | (463 | ) | ||||||||||
| Accretion on Preferred Shares | (8 | ) | (305 | ) | (46 | ) | (46 | ) | (45 | ) | ||||||||||
| Net Income Applicable to Common Shares | 5,423 | 3,823 | 3,645 | 3,556 | 3,553 | |||||||||||||||
| Tax equivalent adjustment (1) | 427 | 416 | 390 | 395 | 386 | |||||||||||||||
| At Period End | ||||||||||||||||||||
| Total assets | $ | 2,055,672 | $ | 2,067,616 | $ | 2,142,264 | $ | 2,068,190 | $ | 2,058,357 | ||||||||||
| Earning assets | 1,874,671 | 1,885,846 | 1,966,419 | 1,898,152 | 1,887,484 | |||||||||||||||
| Loans | 1,512,132 | 1,500,637 | 1,473,955 | 1,487,076 | 1,460,514 | |||||||||||||||
| Allowance for loan losses | 26,310 | 26,409 | 28,833 | 33,254 | 38,110 | |||||||||||||||
| Deposits | 1,609,350 | 1,613,611 | 1,671,370 | 1,596,241 | 1,589,980 | |||||||||||||||
| Stockholders’ equity | 255,136 | 249,870 | 281,364 | 278,127 | 275,118 | |||||||||||||||
| Stockholders’ equity / assets | 12.41 | % | 12.08 | % | 13.13 | % | 13.45 | % | 13.37 | % | ||||||||||
| Goodwill | 61,525 | 61,525 | 61,525 | 61,525 | 61,568 | |||||||||||||||
| Average Balances | ||||||||||||||||||||
| Total assets | $ | 2,047,139 | $ | 2,102,675 | $ | 2,080,502 | $ | 2,067,881 | $ | 2,056,111 | ||||||||||
| Earning assets | 1,849,715 | 1,903,714 | 1,879,393 | 1,861,186 | 1,843,881 | |||||||||||||||
| Deposits and interest-bearing liabilities | 1,774,312 | 1,800,036 | 1,781,710 | 1,772,812 | 1,762,663 | |||||||||||||||
| Loans | 1,481,995 | 1,462,312 | 1,456,807 | 1,440,839 | 1,419,987 | |||||||||||||||
| Deposits | 1,605,749 | 1,629,094 | 1,610,275 | 1,594,938 | 1,583,173 | |||||||||||||||
| Stockholders’ equity | 251,592 | 281,031 | 279,848 | 275,848 | 271,736 | |||||||||||||||
| Stockholders’ equity / assets | 12.29 | % | 13.37 | % | 13.45 | % | 13.34 | % | 13.22 | % | ||||||||||
| Per Common Share Data | ||||||||||||||||||||
| Net Income: | ||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.39 | $ | 0.37 | $ | 0.37 | $ | 0.37 | ||||||||||
| Diluted | 0.54 | 0.38 | 0.37 | 0.36 | 0.36 | |||||||||||||||
| Dividends | 0.05 | 0.05 | 0.05 | 0.05 | - | |||||||||||||||
| Market Value: | ||||||||||||||||||||
| High | $ | 18.06 | $ | 17.46 | $ | 17.76 | $ | 15.39 | $ | 15.51 | ||||||||||
| Low | 15.80 | 15.23 | 14.41 | 13.00 | 12.60 | |||||||||||||||
| Close | 17.26 | 17.12 | 16.86 | 14.59 | 13.14 | |||||||||||||||
| Book Value | 26.13 | 25.49 | 25.06 | 24.74 | 24.43 | |||||||||||||||
| Shares outstanding, end of period (in thousands) | 9,729 | 9,729 | 9,728 | 9,726 | 9,726 | |||||||||||||||
| Performance Ratios (annualized) | ||||||||||||||||||||
| Tax-equivalent net interest margin (1) | 3.80 | % | 3.75 | % | 3.78 | % | 3.83 | % | 3.89 | % | ||||||||||
| Return on average assets | 1.06 | % | 0.75 | % | 0.80 | % | 0.78 | % | 0.78 | % | ||||||||||
| Return on average equity | 8.59 | % | 5.61 | % | 5.97 | % | 5.85 | % | 5.93 | % | ||||||||||
| Efficiency ratio (2) | 65.07 | % | 61.45 | % | 62.62 | % | 60.85 | % | 62.12 | % | ||||||||||
| Effective tax rate | 30.33 | % | 30.12 | % | 29.08 | % | 28.75 | % | 31.69 | % | ||||||||||
| Common dividend payout ratio (basic) | 8.93 | % | 12.82 | % | 13.51 | % | 13.51 | % | 0.00 | % | ||||||||||
| (1) | Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35% |
| (2) | Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains, net. |
| 11 |
Selected Quarterly Information
First Defiance Financial Corp.
| (dollars in thousands, except per share data) | 3rd Qtr 2012 | 2nd Qtr 2012 | 1st Qtr 2012 | 4th Qtr 2011 | 3rd Qtr 2011 | |||||||||||||||
| Loan Portfolio Composition | ||||||||||||||||||||
| One to four family residential real estate | $ | 210,053 | $ | 210,520 | $ | 202,132 | $ | 203,401 | $ | 189,669 | ||||||||||
| Construction | 31,428 | 22,923 | 36,362 | 31,552 | 35,203 | |||||||||||||||
| Commercial real estate | 792,351 | 775,526 | 790,168 | 775,992 | 766,459 | |||||||||||||||
| Commercial | 365,510 | 372,266 | 326,904 | 349,053 | 339,128 | |||||||||||||||
| Consumer finance | 16,785 | 17,127 | 17,647 | 18,887 | 19,701 | |||||||||||||||
| Home equity and improvement | 111,563 | 112,427 | 114,891 | 122,143 | 124,956 | |||||||||||||||
| Total loans | 1,527,690 | 1,510,789 | 1,488,104 | 1,501,028 | 1,475,116 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Loans in process | 14,831 | 9,439 | 13,430 | 13,243 | 13,709 | |||||||||||||||
| Deferred loan origination fees | 727 | 713 | 719 | 709 | 893 | |||||||||||||||
| Allowance for loan loss | 26,310 | 26,409 | 28,833 | 33,254 | 38,110 | |||||||||||||||
| Net Loans | $ | 1,485,822 | $ | 1,474,228 | $ | 1,445,122 | $ | 1,453,822 | $ | 1,422,404 | ||||||||||
| Allowance for loan loss activity | ||||||||||||||||||||
| Beginning allowance | $ | 26,409 | $ | 28,833 | $ | 33,254 | $ | 38,110 | $ | 40,530 | ||||||||||
| Provision for loan losses | 705 | 4,097 | 3,503 | 4,099 | 3,097 | |||||||||||||||
| Credit loss charge-offs: | ||||||||||||||||||||
| One to four family residential real estate | 217 | 584 | 738 | 666 | 647 | |||||||||||||||
| Commercial real estate | 780 | 5,448 | 4,496 | 6,738 | 2,622 | |||||||||||||||
| Commercial | 355 | 486 | 2666 | 1,423 | 2,533 | |||||||||||||||
| Consumer finance | 19 | 14 | 41 | 27 | 36 | |||||||||||||||
| Home equity and improvement | 203 | 254 | 211 | 251 | 290 | |||||||||||||||
| Total charge-offs | 1,574 | 6,786 | 8,152 | 9,105 | 6,128 | |||||||||||||||
| Total recoveries | 770 | 265 | 228 | 150 | 611 | |||||||||||||||
| Net charge-offs (recoveries) | 804 | 6,521 | 7,924 | 8,955 | 5,517 | |||||||||||||||
| Ending allowance | $ | 26,310 | $ | 26,409 | $ | 28,833 | $ | 33,254 | $ | 38,110 | ||||||||||
| Credit Quality | ||||||||||||||||||||
| Non-accrual loans | $ | 37,803 | $ | 41,702 | $ | 45,351 | $ | 39,328 | $ | 48,297 | ||||||||||
| Restructured loans, accruing | 4,305 | 3,581 | 3,820 | 3,380 | 2,934 | |||||||||||||||
| Total non-performing loans (1) | 42,108 | 45,283 | 49,171 | 42,708 | 51,231 | |||||||||||||||
| Real estate owned (REO) | 2,843 | 3,538 | 3,408 | 3,628 | 5,805 | |||||||||||||||
| Total non-performing assets (2) | $ | 44,951 | $ | 48,821 | $ | 52,579 | $ | 46,336 | $ | 57,036 | ||||||||||
| Net charge-offs | 804 | 6,521 | 7,924 | 8,955 | 5,517 | |||||||||||||||
| Allowance for loan losses / loans | 1.74 | % | 1.76 | % | 1.96 | % | 2.24 | % | 2.61 | % | ||||||||||
| Allowance for loan losses / non-performing assets | 58.53 | % | 54.09 | % | 54.84 | % | 71.77 | % | 66.82 | % | ||||||||||
| Allowance for loan losses / non-performing loans | 62.48 | % | 58.32 | % | 58.64 | % | 77.86 | % | 74.39 | % | ||||||||||
| Non-performing assets / loans plus REO | 2.97 | % | 3.25 | % | 3.56 | % | 3.11 | % | 3.89 | % | ||||||||||
| Non-performing assets / total assets | 2.19 | % | 2.36 | % | 2.45 | % | 2.24 | % | 2.77 | % | ||||||||||
| Net charge-offs / average loans (annualized) | 0.22 | % | 1.78 | % | 2.18 | % | 2.49 | % | 1.55 | % | ||||||||||
| Deposit Balances | ||||||||||||||||||||
| Non-interest-bearing demand deposits | $ | 271,305 | $ | 261,211 | $ | 265,716 | $ | 245,927 | $ | 239,594 | ||||||||||
| Interest-bearing demand deposits and money market | 636,510 | 628,760 | 665,889 | 609,057 | 607,965 | |||||||||||||||
| Savings deposits | 166,155 | 165,699 | 165,325 | 155,101 | 155,244 | |||||||||||||||
| Retail time deposits less than $100,000 | 356,369 | 370,443 | 383,471 | 428,222 | 429,686 | |||||||||||||||
| Retail time deposits greater than $100,000 | 176,725 | 180,594 | 183,420 | 147,298 | 143,477 | |||||||||||||||
| National/Brokered time deposits | 2,286 | 6,904 | 7,549 | 10,636 | 14,014 | |||||||||||||||
| Total deposits | $ | 1,609,350 | $ | 1,613,611 | $ | 1,671,370 | $ | 1,596,241 | $ | 1,589,980 | ||||||||||
| (1) | Non-performing loans consist of non-accrual loans that are contractually past due 90 days and loans with known credit problems that are not contractually past due. |
| (2) | Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof. |
| 12 |
Loan Delinquency Information
First Defiance Financial Corp.
| (dollars in thousands) | Total Balance | Current | 30 to 89 days past due | Non Accrual Loans | Troubled Debt Restructuring | |||||||||||||||
| September 30, 2012 | ||||||||||||||||||||
| One to four family residential real estate | $ | 210,053 | $ | 199,163 | $ | 2,181 | $ | 5,784 | $ | 2,925 | ||||||||||
| Construction | 31,428 | 31,428 | - | - | - | |||||||||||||||
| Commercial real estate | 792,351 | 764,435 | 1,749 | 24,991 | 1,176 | |||||||||||||||
| Commercial | 365,510 | 358,264 | 388 | 6,670 | 188 | |||||||||||||||
| Consumer finance | 16,785 | 16,653 | 117 | 15 | - | |||||||||||||||
| Home equity and improvement | 111,563 | 109,540 | 1,664 | 343 | 16 | |||||||||||||||
| Total loans | $ | 1,527,690 | $ | 1,479,483 | $ | 6,099 | $ | 37,803 | $ | 4,305 | ||||||||||
| December 31, 2011 | ||||||||||||||||||||
| One to four family residential real estate | $ | 203,401 | $ | 195,752 | $ | 2,120 | $ | 3,890 | $ | 1,639 | ||||||||||
| Construction | 31,552 | 31,552 | - | - | - | |||||||||||||||
| Commercial real estate | 775,992 | 742,868 | 3,441 | 28,150 | 1,533 | |||||||||||||||
| Commercial | 349,053 | 341,666 | 334 | 6,884 | 169 | |||||||||||||||
| Consumer finance | 18,887 | 18,713 | 164 | 10 | - | |||||||||||||||
| Home equity and improvement | 122,143 | 118,869 | 2,841 | 394 | 39 | |||||||||||||||
| Total loans | $ | 1,501,028 | $ | 1,449,420 | $ | 8,900 | $ | 39,328 | $ | 3,380 | ||||||||||
| September 30, 2011 | ||||||||||||||||||||
| One to four family residential real estate | $ | 189,669 | $ | 182,182 | $ | 2,287 | $ | 4,017 | $ | 1,183 | ||||||||||
| Construction | 35,203 | 35,143 | - | 60 | - | |||||||||||||||
| Commercial real estate | 766,459 | 727,706 | 2,229 | 35,268 | 1,256 | |||||||||||||||
| Commercial | 339,128 | 330,117 | 360 | 8,478 | 173 | |||||||||||||||
| Consumer finance | 19,701 | 19,511 | 170 | 20 | - | |||||||||||||||
| Home equity and improvement | 124,956 | 121,965 | 2,215 | 454 | 322 | |||||||||||||||
| Total loans | $ | 1,475,116 | $ | 1,416,624 | $ | 7,261 | $ | 48,297 | $ | 2,934 | ||||||||||
| 13 |