Premier Financial (PFC) 8-K First Defiance Financial Corp. Announces 2013

	NEWS RELEASE
	Contact:	William J. Small
		Chairman, President and CEO
		(419) 782-5015
		bsmall@first-fed.com

For Immediate Release Exhibit 99.1

FIRST DEFIANCE FINANCIAL CORP. ANNOUNCES 2013

FIRST QUARTER EARNINGS

· Net Income of $5.6 million for 2013 first quarter, up from $4.2 million in the first quarter of 2012

· Provision for Loan Losses of $425,000, down from $3.5 million in the first quarter of 2012

· Net Interest Margin of 3.78%, flat with the first quarter of 2012

DEFIANCE, OHIO (April 22, 2013)– First Defiance Financial Corp. (NASDAQ: FDEF) today announced that net income for its first quarter ended March 31, 2013 totaled $5.6 million, or $0.55 per diluted common share, compared to $4.2 million or $0.37 per diluted common share for the quarter ended March 31, 2012.

“We are encouraged by the improvement in net income results versus last year and the continuation of the momentum built in the latter part of 2012,” said William J. Small, Chairman, President, and Chief Executive Officer of First Defiance Financial Corp. “However, we are still feeling the strain from the recent economic cycle, which has impacted loan growth and has caused some drag on first quarter performance.”

Credit Quality

The first quarter results include expense for provision for loan losses of $425,000, compared with $3.5 million for the same period in 2012 and $2.6 million in the fourth quarter of 2012.

Non-performing loans totaled $35.3 million at March 31, 2013, a decrease from $45.4 million at March 31, 2012. In addition, First Defiance had $4.3 million of real estate owned at March 31, 2013 compared to $3.4 million at March 31, 2012. Accruing troubled debt restructured loans were $28.0 million at March 31, 2013 compared with $3.8 million at March 31, 2012. For the first quarter of 2013, First Defiance recorded net charge-offs of $677,000, down from $7.9 million in the first quarter of 2012 and down from the fourth quarter level of $2.2 million. The allowance for loan loss as a percentage of total loans was 1.76% at March 31, 2013 compared with 1.96% at March 31, 2012.

“There were several positive indicators of overall improvement in asset quality during the first quarter including significant declines in net charge-offs and in classified loans. The levels of charge-offs and provision expense were reflections of the improvement in credit quality,” said Small. “We see this as an overall improving trend developing in those categories as the economy stabilizes.”

1

Net Interest Income down compared to first quarter 2012

Net interest income of $16.5 million in the first quarter of 2013 was down from $17.2 in the first quarter of 2012. Net interest margin was flat at 3.78% for the first quarter of 2013 compared to the first quarter of 2012. Yield on interest earning assets declined by 32 basis points, to 4.22% in the first quarter of 2013 from 4.54% in the first quarter of 2012. The cost of interest-bearing liabilities decreased by 39 basis points in the first quarter of 2013 to 0.54% from 0.93% in the first quarter of 2012.

“The stability of the net interest margin for the quarter is noteworthy,” said Small. “The low interest rates and low loan demand present significant challenges to margin management. We will continue to look for additional opportunities to maintain our margin, as well as other ways to minimize the impact of the sustained low rate environment.”

Non-Interest Income up from first quarter 2012

First Defiance’s non-interest income for the first quarter of 2013 was $9.0 million compared with $8.4 million in the first quarter of 2012. Mortgage banking income increased to $2.8 million in the first quarter of 2013, up from $2.4 million in the first quarter of 2012. Gains from the sale of mortgage loans decreased in the first quarter of 2013 to $2.2 million from $2.5 million in the first quarter of 2012. Mortgage loan servicing revenue was $870,000 in the first quarter of 2013, which was up slightly from $844,000 in the first quarter of 2012. Service fees and other charges were $2.4 million in the first quarter of 2013, down from $2.7 million in the first quarter of 2012.

The continuing low rate environment helped contribute to solid first quarter of 2013 mortgage originations, although they were down slightly from the first quarter of 2012. The Company had a positive change in the valuation adjustment in mortgage servicing assets (“MSR”) of $473,000 in the first quarter of 2013 compared with a negative adjustment of $79,000 in the first quarter of 2012. The MSR positive valuation adjustment is a reflection of the increase in fair value of certain sectors of the Company’s portfolio of MSRs. The increase was driven by a slight increase in market rates in the quarter which also contributed to lower amortization of servicing rights.

Income from the sale of insurance and investment products increased to $3.0 million for the first quarter of 2013, from $2.5 million in the first quarter of 2012. First Defiance’s insurance subsidiary, First Insurance Group of the Midwest, Inc., typically recognizes contingent revenues during the first quarter. These revenues are bonuses paid by insurance carriers when the Company achieves certain loss ratios or growth targets. In the first quarter of 2013, First Insurance Group earned $944,000 of contingent income, compared to $504,000 during the first quarter of 2012.

“We are pleased with the ongoing strong mortgage banking contribution as well as the improvement in the overall insurance operations income stream,” continued Mr. Small. “Mortgage production maintained its intensity in this quarter, with robust activity carrying into the second quarter.”

2

Non-Interest Expenses

Total non-interest expense was $17.2 million in the first quarter of 2013, an increase from $16.3 million in the first quarter of 2012.

Compensation and benefits increased to $8.8 million in the first quarter of 2013 compared to $8.5 in the first quarter of 2012. The Company granted pay increases and accrued for bonus payments based on meeting 2013 targeted performance in the first quarter of 2013. Other non-interest expense increased to $3.9 million in the first quarter of 2013 from $3.3 million in the first quarter of 2012. An accrual for estimated secondary market buy-back losses of $581,000 was established in the first quarter of 2013 compared to no losses accrued in the first quarter of 2012. These losses were accrued and expensed as of March 31, 2013 based on an estimated exposure to repurchase requests resulting from notifications received from Fannie Mae’s post-foreclosure review process during the first quarter of 2013.

Total Assets at $2.04 Billion

Total assets at March 31, 2013 were $2.04 billion, compared to $2.14 billion at March 31, 2012. Net loans receivable (excluding loans held for sale) were $1.48 billion at March 31, 2013, compared to $1.45 billion at March 31, 2012. Total cash and cash equivalents were $156.3 million at March 31, 2013 compared with $136.8 million at December 31, 2012 and $249.9 million at March 31, 2012. Also, at March 31, 2013, goodwill and other intangible assets totaled $65.9 million compared to $66.3 million at December 31, 2012 and $67.3 million at March 31, 2012.

Total deposits at March 31, 2013 were $1.66 billion compared with $1.67 billion at December 31, 2012, and $1.67 billion at March 31, 2012. Non-interest bearing deposits at March 31, 2013 were $291.8 million compared to $315.1 million at December 31, 2012 and $265.7 million at March 31, 2012. Total stockholders’ equity was $262.6 million at March 31, 2013 compared to $258.1 million at December 31, 2012 and $281.4 million at March 31, 2012.

Conference Call

First Defiance Financial Corp. will host a conference call at 11:00 a.m. (EDT) on Tuesday, April 23, 2013 to discuss the earnings results and business trends. The conference call may be accessed by calling1-888-317-6016. A live webcast may be accessed athttp://services.choruscall.com/links/fdef130423.html.

Audio replay of the Internet Webcast will be available atwww.fdef.com until April 23, 2014 at 9:00 a.m.

Annual Meeting of Shareholders

First Defiance Financial Corp. will host its Annual Meeting of Shareholders at 2:00 p.m. on Tuesday, April 23, 2013 at the First Federal Bank operations center at 25600 Elliott Road in Defiance. Following the meeting, the audio replay, slide presentation and transcript will be available at the Company’s Website atwww.fdef.com.

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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 full service branches and 42 ATM locations in northwest Ohio, southeast Michigan and Fort Wayne, Indiana. First Insurance Group is a full service insurance agency 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, 2012. 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.

4

Consolidated Balance Sheets

First Defiance Financial Corp.

	(Unaudited)
	March 31,			December 31,			March 31,
(in thousands)	2013			2012			2012
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions	$	31,342		$	45,832		$	32,882
Interest-bearing deposits		125,000			91,000			217,000
		156,342			136,832			249,882
Securities
Available-for sale, carried at fair value		196,132			194,101			242,964
Held-to-maturity, carried at amortized cost		492			508			644
		196,624			194,609			243,608
Loans		1,507,008			1,525,257			1,473,955
Allowance for loan losses		(26,459	)		(26,711	)		(28,833	)
Loans, net		1,480,549			1,498,546			1,445,122
Loans held for sale		10,761			22,064			11,201
Mortgage servicing rights		8,379			7,833			8,498
Accrued interest receivable		6,025			5,594			6,243
Federal Home Loan Bank stock		19,354			20,655			20,655
Bank Owned Life Insurance		42,061			41,832			36,128
Office properties and equipment		39,218			39,663			40,548
Real estate and other assets held for sale		4,313			3,805			3,408
Goodwill		61,525			61,525			61,525
Core deposit and other intangibles		4,402			4,738			5,776
Deferred taxes		301			78			-
Other assets		9,557			9,174			9,670
Total Assets	$	2,039,411		$	2,046,948		$	2,142,264
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	291,765		$	315,132		$	265,716
Interest-bearing deposits		1,364,583			1,352,340			1,405,654
Total deposits		1,656,348			1,667,472			1,671,370
Advances from Federal Home Loan Bank		12,784			12,796			81,830
Notes payable and other interest-bearing liabilities		52,747			51,702			54,609
Subordinated debentures		36,083			36,083			36,083
Advance payments by borrowers for tax and insurance		1,366			1,473			1,316
Deferred taxes		-			-			404
Other liabilities		17,440			19,294			15,288
Total liabilities		1,776,768			1,788,820			1,860,900
Stockholders’ Equity
Preferred stock, net of discount		-			-			36,687
Common stock, net		127			127			127
Common stock warrant		878			878			878
Additional paid-in-capital		136,406			136,046			135,888
Accumulated other comprehensive income		3,808			4,274			3,937
Retained earnings		168,082			164,103			151,163
Treasury stock, at cost		(46,658	)		(47,300	)		(47,316	)
Total stockholders’ equity		262,643			258,128			281,364
Total Liabilities and Stockholders’ Equity	$	2,039,411		$	2,046,948		$	2,142,264

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Consolidated Statements of Income (Unaudited)

First Defiance Financial Corp.

	Three Months Ended
	March 31,
(in thousands, except per share amounts)	2013		2012
Interest Income:
Loans	$	16,796	$	18,650
Investment securities		1,403		1,783
Interest-bearing deposits		58		92
FHLB stock dividends		219		229
Total interest income		18,476		20,754
Interest Expense:
Deposits		1,647		2,369
FHLB advances and other		90		751
Subordinated debentures		152		331
Notes Payable		60		104
Total interest expense		1,949		3,555
Net interest income		16,527		17,199
Provision for loan losses		425		3,503
Net interest income after provision for loan losses		16,102		13,696
Non-interest Income:
Service fees and other charges		2,385		2,671
Mortgage banking income		2,830		2,445
Gain on sale of non-mortgage loans		15		9
Gain on sale of securities		53		43
Insurance and investment sales commissions		3,036		2,536
Trust income		163		153
Income from Bank Owned Life Insurance		229		220
Other non-interest income		251		342
Total Non-interest Income		8,962		8,419
Non-interest Expense:
Compensation and benefits		8,798		8,465
Occupancy		1,654		1,788
FDIC insurance premium		656		669
State franchise tax		629		514
Data processing		1,181		1,169
Amortization of intangibles		336		375
Other non-interest expense		3,945		3,279
Total Non-interest Expense		17,199		16,259
Income before income taxes		7,865		5,856
Income taxes		2,306		1,703
Net Income	$	5,559	$	4,153
Dividends Accrued on Preferred Shares		-		(462	)
Accretion on Preferred Shares		-		(46	)
Redemption of Preferred Shares		-		-
Net Income Applicable to Common Shares	$	5,559	$	3,645
Earnings per common share:
Basic	$	0.57	$	0.37
Diluted	$	0.55	$	0.37
Average Shares Outstanding:
Basic		9,736		9,726
Diluted		10,105		9,970

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Financial Summary and Comparison

First Defiance Financial Corp.

	(Unaudited)
	Three Months Ended
	March 31,
(dollars in thousands, except per share data)	2013			2012			% change
Summary of Operations
Tax-equivalent interest income (1)	$	18,885		$	21,144			(10.7	)%
Interest expense		1,949			3,555			(45.2	)
Tax-equivalent net interest income (1)		16,936			17,589			(3.7	)
Provision for loan losses		425			3,503			(87.9	)
Tax-equivalent NII after provision for loan loss (1)		16,511			14,086			17.2
Investment Securities gains		53			43			23.3
Impairment losses on securities		-			-			NM
Non-interest income (excluding securities gains/losses)		8,909			8,376			6.4
Non-interest expense		17,199			16,259			5.8
Income taxes		2,306			1,703			35.4
Net Income		5,559			4,153			33.9
Dividends Declared on Preferred Shares		-			(462	)		(100.0	)
Accretion on Preferred Shares		-			(46	)		(100.0	)
Net Income Applicable to Common Shares		5,559			3,645			52.5
Tax equivalent adjustment (1)		409			390			4.9
At Period End
Assets		2,039,411			2,142,264			(4.8	)
Earning assets		1,858,747			1,966,419			(5.5	)
Loans		1,507,008			1,473,955			2.2
Allowance for loan losses		26,459			28,833			(8.2	)
Deposits		1,656,348			1,671,370			(0.9	)
Stockholders’ equity		262,643			281,364			(6.7	)
Average Balances
Assets		2,027,906			2,080,502			(2.5	)
Earning assets		1,823,089			1,879,393			(3.0	)
Loans		1,500,222			1,781,710			(15.8	)
Deposits and interest-bearing liabilities		1,746,092			1,456,807			19.9
Deposits		1,650,772			1,610,275			2.5
Stockholders’ equity		259,625			279,848			(7.2	)
Stockholders’ equity / assets		12.80	%		13.45	%		(4.8	)
Per Common Share Data
Net Income
Basic	$	0.57		$	0.37			54.1
Diluted		0.55			0.37			48.6
Dividends		0.10			0.05			100.0
Market Value:
High	$	23.75		$	17.76			33.7
Low		18.42			14.41			27.8
Close		23.32			16.86			38.3
Common Book Value		26.80			25.06			7.0
Tangible Common Book Value		20.05			18.14			10.5
Shares outstanding, end of period (000)		9,766			9,728			0.4
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.78	%		3.78	%		0.1
Return on average assets		1.11	%		0.80	%		38.5
Return on average equity		8.68	%		5.97	%		45.5
Efficiency ratio (2)		66.55	%		62.62	%		6.3
Effective tax rate		29.32	%		29.08	%		0.8
Dividend payout ratio (basic)		17.54	%		13.51	%		29.8

(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

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Income from Mortgage Banking

Revenue from sales and servicing of mortgage loans consisted of the following:

	Three Months Ended
	March 31,
(dollars in thousands)	2013			2012
Gain from sale of mortgage loans	$	2,176		$	2,544
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		870			844
Amortization of mortgage servicing rights		(689	)		(864	)
Mortgage servicing rights valuation adjustments		473			(79	)
		654			(99	)
Total revenue from sale and servicing of mortgage loans	$	2,830		$	2,445

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Yield Analysis

First Defiance Financial Corp.

	Three Months Ended March 31,
	(dollars in thousands)
	2013							2012
	Average				Yield			Average				Yield
	Balance		Interest(1)		Rate(2)			Balance		Interest(1)		Rate(2)
Interest-earning assets:
Loans receivable	$	1,500,222	$	16,814		4.55	%	$	1,456,807	$	18,678		5.16	%
Securities		196,571		1,794		3.85	%		237,541		2,145		3.76	%
Interest Bearing Deposits		106,332		58		0.22	%		164,390		92		0.23	%
FHLB stock		19,964		219		4.45	%		20,655		229		4.46	%
Total interest-earning assets		1,823,089		18,885		4.22	%		1,879,393		21,144		4.54	%
Non-interest-earning assets		204,817							201,109
Total assets	$	2,027,906						$	2,080,502
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	1,356,547	$	1,647		0.49	%	$	1,365,021	$	2,369		0.70	%
FHLB advances and other		12,788		90		2.85	%		81,834		751		3.69	%
Other Borrowings		46,396		60		0.52	%		53,403		104		0.78	%
Subordinated debentures		36,136		152		1.71	%		36,198		331		3.68	%
Total interest-bearing liabilities		1,451,867		1,949		0.54	%		1,536,456		3,555		0.93	%
Non-interest bearing deposits		294,225		-		-			245,254		-		-
Total including non-interest-bearing demand deposits		1,746,092		1,949		0.45	%		1,781,710		3,555		0.80	%
Other non-interest-bearing liabilities		22,189							18,944
Total liabilities		1,768,281							1,800,654
Stockholders' equity		259,625							279,848
Total liabilities and stockholders' equity	$	2,027,906						$	2,080,502
Net interest income; interest rate spread			$	16,936		3.68	%			$	17,589		3.61	%
Net interest margin (3)						3.78	%						3.78	%
Average interest-earning assets to average interest bearing liabilities						126	%						122	%

(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.

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Selected Quarterly Information

First Defiance Financial Corp.

(dollars in thousands, except per share data)	1st Qtr 2013			4th Qtr 2012			3rd Qtr 2012			2nd Qtr 2012			1st Qtr 2012
Summary of Operations
Tax-equivalent interest income (1)	$	18,885		$	19,993		$	20,525		$	20,935		$	21,144
Interest expense		1,949			2,186			2,923			3,273			3,555
Tax-equivalent net interest income (1)		16,936			17,807			17,602			17,662			17,589
Provision for loan losses		425			2,618			705			4,097			3,503
Tax-equivalent NII after provision for loan losses (1)		16,511			15,189			16,897			13,565			14,086
Investment securities gains, net of impairment		53			1,606			103			382			43
Non-interest income (excluding securities gains/losses)		8,909			8,574			7,677			7,612			8,376
Non-interest expense		17,199			17,538			16,450			15,532			16,259
Income taxes		2,306			2,253			2,366			1,690			1,703
Net income		5,559			5,157			5,434			3,921			4,153
Dividends Declared on Preferred Shares		-			-			(3	)		(435	)		(462	)
Accretion on Preferred Shares		-			-			(8	)		(305	)		(46	)
Redemption on Preferred Shares		-			-			642			-			-
Net Income Applicable to Common Shares		5,559			5,157			5,423			3,823			3,645
Tax equivalent adjustment (1)		409			421			427			416			390
At Period End
Total assets	$	2,039,411		$	2,046,948		$	2,055,672		$	2,067,616		$	2,142,264
Earning assets		1,858,747			1,853,585			1,874,671			1,885,846			1,966,419
Loans		1,507,008			1,525,257			1,512,132			1,500,637			1,473,955
Allowance for loan losses		26,459			26,711			26,310			26,409			28,833
Deposits		1,656,348			1,667,472			1,609,350			1,613,611			1,671,370
Stockholders’ equity		262,643			258,128			255,136			249,870			281,364
Stockholders’ equity / assets		12.88	%		12.61	%		12.41	%		12.08	%		13.13	%
Goodwill		61,525			61,525			61,525			61,525			61,525
Average Balances
Total assets	$	2,027,906		$	2,023,890		$	2,047,139		$	2,102,675		$	2,080,502
Earning assets		1,823,089			1,815,263			1,849,715			1,903,714			1,879,393
Loans		1,500,222			1,509,611			1,481,995			1,462,312			1,456,807
Deposits and interest-bearing liabilities		1,746,092			1,744,274			1,774,312			1,800,036			1,781,710
Deposits		1,650,772			1,633,432			1,605,749			1,629,094			1,610,275
Stockholders’ equity		259,625			256,304			251,592			281,031			279,848
Stockholders’ equity / assets		12.80	%		12.66	%		12.29	%		13.37	%		13.45	%
Per Common Share Data
Net Income:
Basic	$	0.57		$	0.53		$	0.56		$	0.39		$	0.37
Diluted		0.55			0.52			0.54			0.38			0.37
Dividends		0.10			0.05			0.05			0.05			0.05
Market Value:
High	$	23.75		$	19.38		$	18.06		$	17.46		$	17.76
Low		18.42			15.75			15.80			15.23			14.41
Close		23.32			19.19			17.26			17.12			16.86
Common Book Value		26.80			26.44			26.13			25.49			25.06
Shares outstanding, end of period (in thousands)		9,766			9,729			9,729			9,729			9,728
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.78	%		3.92	%		3.80	%		3.75	%		3.78	%
Return on average assets		1.11	%		1.01	%		1.06	%		0.75	%		0.80	%
Return on average equity		8.68	%		8.00	%		8.59	%		5.61	%		5.97	%
Efficiency ratio (2)		66.55	%		66.48	%		65.07	%		61.45	%		62.62	%
Effective tax rate		29.32	%		30.40	%		30.33	%		30.12	%		29.08	%
Common dividend payout ratio (basic)		17.54	%		9.43	%		8.93	%		12.82	%		13.51	%

(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.

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Selected Quarterly Information

First Defiance Financial Corp.

(dollars in thousands, except per share data)	1st Qtr 2013			4th Qtr 2012			3rd Qtr 2012			2nd Qtr 2012			1st Qtr 2012
Loan Portfolio Composition
One to four family residential real estate	$	197,675		$	200,826		$	210,053		$	210,520		$	202,132
Construction		33,398			37,788			31,428			22,923			36,362
Commercial real estate		802,098			797,385			792,351			775,526			790,168
Commercial		365,551			383,817			365,510			372,266			326,904
Consumer finance		15,549			15,936			16,785			17,127			17,647
Home equity and improvement		106,524			108,718			111,563			112,427			114,891
Total loans		1,520,795			1,544,470			1,527,690			1,510,789			1,488,104
Less:
Loans in process		13,084			18,478			14,831			9,439			13,430
Deferred loan origination fees		703			735			727			713			719
Allowance for loan loss		26,459			26,711			26,310			26,409			28,833
Net Loans	$	1,480,549		$	1,498,546		$	1,485,822		$	1,474,228		$	1,445,122
Allowance for loan loss activity
Beginning allowance		26,711			26,310			26,409			28,833		$	33,254
Provision for loan losses		425			2,618			705			4,097			3,503
Credit loss charge-offs:
One to four family residential real estate		206			976			217			584			738
Commercial real estate		266			593			780			5,448			4,496
Commercial		205			541			355			486			2,666
Consumer finance		46			59			19			14			41
Home equity and improvement		272			497			203			254			211
Total charge-offs		995			2,666			1,574			6,786			8,152
Total recoveries		318			449			770			265			228
Net charge-offs (recoveries)		677			2,217			804			6,521			7,924
Ending allowance	$	26,459		$	26,711		$	26,310		$	26,409		$	28,833
Credit Quality
Total non-performing loans (1)	$	35,283		$	32,570		$	37,803		$	41,702		$	45,351
Real estate owned (REO)		4,313			3,805			2,843			3,538			3,408
Total non-performing assets (2)	$	39,596		$	36,375		$	40,646		$	45,240		$	48,759
Net charge-offs		677			2,217			804			6,521			7,924
Restructured loans, accruing (3)		27,981			28,203			4,305			3,581			3,820
Allowance for loan losses / loans		1.76	%		1.75	%		1.74	%		1.76	%		1.96	%
Allowance for loan losses / non-performing assets		66.82	%		73.43	%		64.73	%		58.38	%		59.13	%
Allowance for loan losses / non-performing loans		74.99	%		82.01	%		69.60	%		63.33	%		63.58	%
Non-performing assets / loans plus REO		2.62	%		2.38	%		2.68	%		3.01	%		3.30	%
Non-performing assets / total assets		1.94	%		1.78	%		1.98	%		2.19	%		2.28	%
Net charge-offs / average loans (annualized)		0.18	%		0.59	%		0.22	%		1.78	%		2.18	%
Deposit Balances
Non-interest-bearing demand deposits	$	291,765		$	315,132		$	271,305		$	261,211		$	265,716
Interest-bearing demand deposits and money market		681,061			664,857			636,510			628,760			665,889
Savings deposits		177,336			166,945			166,155			165,699			165,325
Retail time deposits less than $100,000		330,870			342,472			356,369			370,443			383,471
Retail time deposits greater than $100,000		173,379			176,029			176,725			180,594			183,420
National/Brokered time deposits		1,937			2,037			2,286			6,904			7,549
Total deposits	$	1,656,348		$	1,667,472		$	1,609,350		$	1,613,611		$	1,671,370

(1) Non-performing loans consist of non-accrual loans.

(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.

(3) Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans.

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Loan Delinquency Information

First Defiance Financial Corp.

(dollars in thousands)	Total Balance		Current		30 to 89 days past due		Non Accrual Loans
March 31, 2013
One to four family residential real estate	$	197,675	$	191,725	$	1,787	$	4,163
Construction		33,398		33,398		-		-
Commercial real estate		802,098		776,138		1,076		24,884
Commercial		365,551		358,205		1,194		6,152
Consumer finance		15,549		15,429		120		-
Home equity and improvement		106,524		105,560		880		84
Total loans	$	1,520,795	$	1,480,455	$	5,057	$	35,283
December 31, 2012
One to four family residential real estate	$	200,826	$	195,188	$	2,036	$	3,602
Construction		37,788		37,788		-		-
Commercial real estate		797,385		773,170		1,125		23,090
Commercial		383,817		376,548		1,608		5,661
Consumer finance		15,936		15,701		235		-
Home equity and improvement		108,718		106,002		2,499		217
Total loans	$	1,544,470	$	1,504,397	$	7,503	$	32,570
March 31, 2012
One to four family residential real estate	$	202,132	$	196,384	$	1,865	$	3,883
Construction		36,362		36,203		-		159
Commercial real estate		790,168		756,158		945		33,065
Commercial		326,904		318,111		1,175		7,618
Consumer finance		17,647		17,542		100		5
Home equity and improvement		114,891		113,078		1,192		621
Total loans	$	1,488,104	$	1,437,476	$	5,277	$	45,351

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