 | NEWS RELEASE
| |
| Contact: | William J. Small Chairman, President and CEO (419) 782-5015 bsmall@first-fed.com | |
Exhibit 99.1
For Immediate Release
FIRST DEFIANCE FINANCIAL CORP. ANNOUNCES 2013
THIRD QUARTER EARNINGS
| · | Net Income of $5.5 million for 2013 third quarter, up slightly from $5.4 million in the 2012 third quarter |
| · | Net Interest Margin of 3.84%, up from 3.80% for the third quarter of 2012 |
| · | Average loans increased $28.0 million, up 1.8% from the 2013 second quarter |
| · | Provision for loan losses of $476,000, down from $705,000 in the 2012 third quarter |
DEFIANCE, OHIO (October 28, 2013)– First Defiance Financial Corp. (NASDAQ: FDEF) announced today that net income for the third quarter ended September 30, 2013 totaled $5.5 million, or $0.54 per diluted common share, compared to $5.4 million or $0.54 per diluted common share for the quarter ended September 30, 2012.
“We are very pleased to report another quarter of solid earnings results, especially considering the significant reduction in mortgage banking activity due to higher mortgage rates during the quarter,” said William J. Small, Chairman, President and CEO of First Defiance Financial Corp. “Our core lines of business are performing steadily as we face many challenges within our industry and a tentative economy.”
Credit Quality
Non-performing loans totaled $30.5 million at September 30, 2013, a decrease from $37.8 million at September 30, 2012. In addition, First Defiance had $5.5 million of real estate owned at September 30, 2013 compared to $2.8 million at September 30, 2012. Accruing troubled debt restructured loans were $28.0 million at September 30, 2013 compared with $4.3 million at September 30, 2012. For the third quarter of 2013, First Defiance recorded net charge-offs of $782,000, down from $804,000 in the third quarter of 2012 and up slightly from $637,000 in the second quarter of 2013. The allowance for loan loss as a percentage of total loans was 1.66% at September 30, 2013 compared with 1.74% at September 30, 2012.
The third quarter results include expense for provision for loan losses of $476,000, compared with $705,000 for the same period in 2012 and $448,000 in the second quarter of 2013.
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“Credit quality remained stable during the quarter, reflecting the progress we achieved a year ago,” said Small. “Our provision expense has benefitted from the sustained improvement.”
Net Interest Income
Net interest income of $17.2 million in the third quarter of 2013 was flat with the third quarter of 2012. The net interest margin increased to 3.84% in the third quarter of 2013 compared with 3.80% in the third quarter of 2012 and 3.82% in the second quarter of 2013. Yield on interest earning assets declined by 24 basis points, to 4.20% in the third quarter of 2013 from 4.44% in the third quarter of 2012. The cost of interest-bearing liabilities decreased by 31 basis points in the third quarter of 2013 to 0.46% from 0.77% in the third quarter of 2012.
“We are pleased with the stability we have seen in our net interest margin in this very challenging rate environment,” said Small. “We are focused on our pricing strategy throughout this persistent low rate environment.”
Non-Interest Income
First Defiance’s non-interest income for the third quarter of 2013 was $7.3 million compared with $7.8 million in the third quarter of 2012. Mortgage banking income decreased to $1.8 million in the third quarter of 2013, down from $2.2 million in the third quarter of 2012. Gains from the sale of mortgage loans decreased in the third quarter of 2013 to $894,000 from $2.9 million in the third quarter of 2012. Mortgage loan servicing revenue was $901,000 in the third quarter of 2013, up from $824,000 in the third quarter of 2012. The Company had a positive change in the valuation adjustment in mortgage servicing assets (“MSR”) of $480,000 in the third quarter of 2013 compared with a negative adjustment of $600,000 in the third 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 an increase in market rates in the quarter which also contributed to lower amortization of servicing rights.
Service fees and other charges were $2.6 million in the third quarter of 2013, down from $2.8 million in the third quarter of 2012.
Income from the sale of insurance and investment products increased to $2.2 million in the third quarter of 2013, from $2.0 million in the third quarter of 2012.
“We saw a reduction in the overall mortgage banking activity during the quarter driven by a steady decline in refinance activity,” continued Mr. Small. “We expect mortgage volume to be moderate to soft due to the volatility in the rate environment and the uncertain economic climate. It is encouraging to see purchase activity increase as a percentage of the overall housing market and we hope this momentum continues but that will not be enough to offset the decline in the refinance activity.”
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Non-Interest Expenses
Total non-interest expense was $16.0 million in the third quarter of 2013, a decrease from $16.5 million in the third quarter of 2012.
Compensation and benefits increased to $8.7 million in the third quarter of 2013 compared to $8.2 million in the third quarter of 2012. The increase in compensation and benefits is mainly related to merit increases from a year ago and increase in medical insurance costs. FDIC insurance costs decreased to $326,000 in the third quarter of 2013 from $691,000 in the third quarter of 2012 due to the improvement in the Company’s risk category late in the first quarter of 2013. Data processing cost increased to $1.3 million in the third quarter of 2013 from $1.1 million in the third quarter of 2012. Credit, collection and real estate owned costs were $579,000 in the third quarter of 2013 compared to $452,000 in the same period of 2012. Other non-interest expense was $3.1 million in the third quarter of 2013, a decrease of $170,000 with the third quarter of 2012. The third quarter of 2013 included a net reversal of accrued secondary market buy-back losses of $95,000 compared to $115,000 in losses recorded in the third quarter 2012.
Year-To-Date Results
For the nine month period ended September 30, 2013, net interest income totaled $50.6 million, compared with $51.6 million in the first nine months of 2012. Average interest-earning assets decreased to $1.821 billion in the first nine months of 2013, compared to $1.878 billion in the first nine months of 2012. Net interest margin for the first nine months of 2013 was 3.82%, up 4 basis points from the 3.78% margin reported in the nine month period ended September 30, 2012.
The provision for loan losses in the first nine months of 2013 was $1.3 million, compared to $8.3 million recorded during the first nine months of 2012.
Non-interest income for the first nine months of 2013 was $24.1 million, compared to $24.2 million during the same period of 2012. Service fees and other charges were $7.5 million for the first nine months of 2013, down from $8.1 million during the same period of 2012. Mortgage banking income increased to $7.1 million for the first nine months of 2013, compared with $6.9 million during the same period of 2012. Insurance and investment sales revenues increased to $7.5 million for the first nine months of 2013, compared with $6.7 million during the same period of 2012 mainly due to increases in contingent commission of $436,000 in 2013. Non-interest income for the first nine months of 2013 included $97,000 of gain on the sale of securities compared with $528,000 during the same period of 2012.
Non-interest expense increased to $48.9 million for the first nine months of 2013 from $48.2 million during the same period of 2012. Compensation and benefits expense was $26.0 million for the first nine months of 2013 compared with $24.8 million during the same period of 2012 primarily due to merit increases from a year ago, higher incentive expenses and an increase in medical insurance costs. Credit, collection and real estate owned costs have increased $44,000 for the first nine months of 2013 compared to the same period of 2012 and secondary market buy-back losses have increased $359,000 for the first nine months of 2013 from the same period of 2012.
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Total Assets at $2.06 Billion
Total assets at September 30, 2013 were $2.06 billion, compared to $2.05 billion at December 31, 2012 and $2.06 billion at September 30, 2012. Net loans receivable (excluding loans held for sale) were $1.54 billion at September 30, 2013, compared to $1.50 billion at December 31, 2012 and $1.49 billion at September 30, 2012. Total cash and cash equivalents were $127.6 million at September 30, 2013 compared with $136.8 million at December 31, 2012 and $92.4 million at September 30, 2012. Also, at September 30, 2013, goodwill and other intangible assets totaled $65.3 million compared to $66.3 million at December 31, 2012 and $66.6 million at September 30, 2012.
Total deposits at September 30, 2013 were $1.66 billion compared with $1.67 billion at December 31, 2012 and $1.61 billion at September 30, 2012. Non-interest bearing deposits at September 30, 2013 were $300.9 million compared to $315.1 million at December 31, 2012 and $271.3 million at September 30, 2012. Total stockholders’ equity was $269.4 million at September 30, 2013 compared to $258.1 million at December 31, 2012 and $255.1 million at September 30, 2012.
Dividend to be Paid November 18
The Board of Directors declared a quarterly cash dividend of $0.10 per common share payable November 18, 2013 to shareholders of record at the close of business on November 11, 2013. The dividend represents an annual dividend of 1.52 percent based on First Defiance common stock closing price on October 25, 2013. First Defiance has approximately 9,784,737 common shares outstanding.
Conference Call
First Defiance Financial Corp. will host a conference call at 11:00 a.m. (EDT) on Tuesday, October 29, 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 at http://services.choruscall.com/links/fdef131029.html.
Audio replay of the Internet Webcast will be available atwww.fdef.com until January 28, 2014 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 32 full service branches and 42 ATM locations in northwest Ohio, southeast Michigan and northeast 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-
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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.
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Consolidated Balance Sheets (Unaudited)
First Defiance Financial Corp.
| September 30, | December 31, | September 30, | ||||||||||
| (in thousands) | 2013 | 2012 | 2012 | |||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Cash and amounts due from depository institutions | $ | 42,629 | $ | 45,832 | $ | 32,406 | ||||||
| Interest-bearing deposits | 85,000 | 91,000 | 60,000 | |||||||||
| 127,629 | 136,832 | 92,406 | ||||||||||
| Securities | ||||||||||||
| Available-for sale, carried at fair value | 184,119 | 194,101 | 269,098 | |||||||||
| Held-to-maturity, carried at amortized cost | 407 | 508 | 585 | |||||||||
| 184,526 | 194,609 | 269,683 | ||||||||||
| Loans | 1,561,279 | 1,525,257 | 1,512,132 | |||||||||
| Allowance for loan losses | (25,964 | ) | (26,711 | ) | (26,310 | ) | ||||||
| Loans, net | 1,535,315 | 1,498,546 | 1,485,822 | |||||||||
| Loans held for sale | 13,391 | 22,064 | 12,201 | |||||||||
| Mortgage servicing rights | 9,182 | 7,833 | 7,752 | |||||||||
| Accrued interest receivable | 6,425 | 5,594 | 6,819 | |||||||||
| Federal Home Loan Bank stock | 19,350 | 20,655 | 20,655 | |||||||||
| Bank Owned Life Insurance | 42,504 | 41,832 | 41,591 | |||||||||
| Office properties and equipment | 39,066 | 39,663 | 40,324 | |||||||||
| Real estate and other assets held for sale | 5,518 | 3,805 | 2,843 | |||||||||
| Goodwill | 61,525 | 61,525 | 61,525 | |||||||||
| Core deposit and other intangibles | 3,793 | 4,738 | 5,083 | |||||||||
| Deferred taxes | 2,253 | 78 | - | |||||||||
| Other assets | 7,953 | 9,174 | 8,968 | |||||||||
| Total Assets | $ | 2,058,430 | $ | 2,046,948 | $ | 2,055,672 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||||
| Non-interest-bearing deposits | $ | 300,891 | $ | 315,132 | $ | 271,305 | ||||||
| Interest-bearing deposits | 1,357,601 | 1,352,340 | 1,338,045 | |||||||||
| Total deposits | 1,658,492 | 1,667,472 | 1,609,350 | |||||||||
| Advances from Federal Home Loan Bank | 22,761 | 12,796 | 81,807 | |||||||||
| Notes payable and other interest-bearing liabilities | 50,822 | 51,702 | 51,991 | |||||||||
| Subordinated debentures | 36,083 | 36,083 | 36,083 | |||||||||
| Advance payments by borrowers for tax and insurance | 1,752 | 1,473 | 971 | |||||||||
| Deferred taxes | - | - | 1,479 | |||||||||
| Other liabilities | 19,161 | 19,294 | 18,855 | |||||||||
| Total liabilities | 1,789,071 | 1,788,820 | 1,800,536 | |||||||||
| Stockholders’ Equity | ||||||||||||
| Preferred stock | - | - | - | |||||||||
| Common stock, net | 127 | 127 | 127 | |||||||||
| Common stock warrant | 878 | 878 | 878 | |||||||||
| Additional paid-in-capital | 136,257 | 136,046 | 136,138 | |||||||||
| Accumulated other comprehensive income | 282 | 4,274 | 5,863 | |||||||||
| Retained earnings | 178,181 | 164,103 | 159,433 | |||||||||
| Treasury stock, at cost | (46,366 | ) | (47,300 | ) | (47,303 | ) | ||||||
| Total stockholders’ equity | 269,359 | 258,128 | 255,136 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 2,058,430 | $ | 2,046,948 | $ | 2,055,672 | ||||||
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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) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Interest Income: | ||||||||||||||||
| Loans | $ | 17,197 | $ | 18,000 | $ | 51,040 | $ | 54,847 | ||||||||
| Investment securities | 1,390 | 1,842 | 4,199 | 5,619 | ||||||||||||
| Interest-bearing deposits | 44 | 43 | 174 | 249 | ||||||||||||
| FHLB stock dividends | 205 | 213 | 631 | 656 | ||||||||||||
| Total interest income | 18,836 | 20,098 | 56,044 | 61,371 | ||||||||||||
| Interest Expense: | ||||||||||||||||
| Deposits | 1,356 | 1,909 | 4,514 | 6,394 | ||||||||||||
| FHLB advances and other | 116 | 759 | 298 | 2,260 | ||||||||||||
| Subordinated debentures | 150 | 172 | 452 | 813 | ||||||||||||
| Notes Payable | 58 | 83 | 178 | 284 | ||||||||||||
| Total interest expense | 1,680 | 2,923 | 5,442 | 9,751 | ||||||||||||
| Net interest income | 17,156 | 17,175 | 50,602 | 51,620 | ||||||||||||
| Provision for loan losses | 476 | 705 | 1,349 | 8,306 | ||||||||||||
| Net interest income after provision for loan losses | 16,680 | 16,470 | 49,253 | 43,314 | ||||||||||||
| Non-interest Income: | ||||||||||||||||
| Service fees and other charges | 2,605 | 2,790 | 7,539 | 8,148 | ||||||||||||
| Mortgage banking income | 1,846 | 2,220 | 7,119 | 6,924 | ||||||||||||
| Gain on sale of non-mortgage loans | 35 | 8 | 52 | 50 | ||||||||||||
| Gain on sale of securities | - | 103 | 97 | 528 | ||||||||||||
| Insurance and investment sales commissions | 2,225 | 1,952 | 7,538 | 6,679 | ||||||||||||
| Trust income | 196 | 147 | 545 | 470 | ||||||||||||
| Income from Bank Owned Life Insurance | 212 | 244 | 672 | 683 | ||||||||||||
| Other non-interest income | 170 | 316 | 535 | 712 | ||||||||||||
| Total Non-interest Income | 7,289 | 7,780 | 24,097 | 24,194 | ||||||||||||
| Non-interest Expense: | ||||||||||||||||
| Compensation and benefits | 8,718 | 8,245 | 25,991 | 24,760 | ||||||||||||
| Occupancy | 1,739 | 2,170 | 5,087 | 5,718 | ||||||||||||
| FDIC insurance premium | 326 | 691 | 1,257 | 2,031 | ||||||||||||
| State franchise tax | 580 | 623 | 1,837 | 1,649 | ||||||||||||
| Data processing | 1,318 | 1,140 | 3,812 | 3,477 | ||||||||||||
| Amortization of intangibles | 296 | 344 | 945 | 1,068 | ||||||||||||
| Other non-interest expense | 3,068 | 3,237 | 9,987 | 9,538 | ||||||||||||
| Total Non-interest Expense | 16,045 | 16,450 | 48,916 | 48,241 | ||||||||||||
| Income before income taxes | 7,924 | 7,800 | 24,434 | 19,267 | ||||||||||||
| Income taxes | 2,445 | 2,366 | 7,286 | 5,759 | ||||||||||||
| Net Income | $ | 5,479 | $ | 5,434 | $ | 17,148 | $ | 13,508 | ||||||||
| Dividends Accrued on Preferred Shares | - | (3 | ) | - | (900 | ) | ||||||||||
| Accretion on Preferred Shares | - | (8 | ) | - | (359 | ) | ||||||||||
| Redemption of Preferred Shares | - | - | - | 642 | ||||||||||||
| Net Income Applicable to Common Shares | $ | 5,479 | $ | 5,423 | $ | 17,148 | $ | 12,891 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.56 | $ | 0.56 | $ | 1.76 | $ | 1.33 | ||||||||
| Diluted | $ | 0.54 | $ | 0.54 | $ | 1.69 | $ | 1.29 | ||||||||
| Average Shares Outstanding: | ||||||||||||||||
| Basic | 9,780 | 9,729 | 9,763 | 9,728 | ||||||||||||
| Diluted | 10,212 | 10,000 | 10,160 | 9,993 | ||||||||||||
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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) | 2013 | 2012 | % change | 2013 | 2012 | % change | ||||||||||||||||||
| Summary of Operations | ||||||||||||||||||||||||
| Tax-equivalent interest income (1) | $ | 19,242 | $ | 20,525 | (6.3 | )% | $ | 57,270 | $ | 62,605 | (8.5 | )% | ||||||||||||
| Interest expense | 1,680 | 2,923 | (42.5 | ) | 5,442 | 9,751 | (44.2 | ) | ||||||||||||||||
| Tax-equivalent net interest income (1) | 17,562 | 17,602 | (0.2 | ) | 51,828 | 52,854 | (1.9 | ) | ||||||||||||||||
| Provision for loan losses | 476 | 705 | (32.5 | ) | 1,349 | 8,306 | (83.8 | ) | ||||||||||||||||
| Tax-equivalent NII after provision for loan loss (1) | 17,086 | 16,897 | 1.1 | 50,479 | 44,548 | 13.3 | ||||||||||||||||||
| Investment Securities gains | - | 103 | (100.0 | ) | 97 | 528 | (81.6 | ) | ||||||||||||||||
| Impairment losses on securities | - | - | - | - | - | - | ||||||||||||||||||
| Non-interest income (excluding securities gains/losses) | 7,289 | 7,677 | (5.1 | ) | 24,000 | 23,666 | 1.4 | |||||||||||||||||
| Non-interest expense | 16,045 | 16,450 | (2.5 | ) | 48,916 | 48,241 | 1.4 | |||||||||||||||||
| Income taxes | 2,445 | 2,366 | 3.3 | 7,286 | 5,759 | 26.5 | ||||||||||||||||||
| Net Income | 5,479 | 5,434 | 0.8 | 17,148 | 13,508 | 26.9 | ||||||||||||||||||
| Dividends Declared on Preferred Shares | - | (3 | ) | (100.0 | ) | - | (900 | ) | (100.0 | ) | ||||||||||||||
| Accretion on Preferred Shares | - | (8 | ) | (100.0 | ) | - | (359 | ) | (100.0 | ) | ||||||||||||||
| Redemption on Preferred Shares | - | - | - | - | 642 | NM | ||||||||||||||||||
| Net Income Applicable to Common Shares | 5,479 | 5,423 | 1.0 | 17,148 | 12,891 | 33.0 | ||||||||||||||||||
| Tax equivalent adjustment (1) | 406 | 427 | (4.9 | ) | 1,226 | 1,234 | (0.6 | ) | ||||||||||||||||
| At Period End | ||||||||||||||||||||||||
| Assets | 2,058,430 | 2,055,672 | 0.1 | |||||||||||||||||||||
| Earning assets | 1,863,546 | 1,874,671 | (0.6 | ) | ||||||||||||||||||||
| Loans | 1,561,279 | 1,512,132 | 3.3 | |||||||||||||||||||||
| Allowance for loan losses | 25,964 | 26,310 | (1.3 | ) | ||||||||||||||||||||
| Deposits | 1,658,492 | 1,609,350 | 3.1 | |||||||||||||||||||||
| Stockholders’ equity | 269,359 | 255,136 | 5.6 | |||||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||
| Assets | 2,026,277 | 2,047,139 | (1.0 | ) | 2,028,297 | 2,076,772 | (2.3 | ) | ||||||||||||||||
| Earning assets | 1,816,626 | 1,849,715 | (1.8 | ) | 1,820,565 | 1,878,032 | (3.1 | ) | ||||||||||||||||
| Loans | 1,548,718 | 1,481,995 | 4.5 | 1,523,216 | 1,467,038 | 3.8 | ||||||||||||||||||
| Deposits and interest-bearing liabilities | 1,741,850 | 1,774,312 | (1.8 | ) | 1,744,342 | 1,785,353 | (2.3 | ) | ||||||||||||||||
| Deposits | 1,632,712 | 1,605,749 | 1.7 | 1,642,754 | 1,615,039 | 1.7 | ||||||||||||||||||
| Stockholders’ equity | 265,488 | 251,592 | 5.5 | 263,135 | 270,824 | (2.8 | ) | |||||||||||||||||
| Stockholders’ equity / assets | 13.10 | % | 12.29 | % | 6.6 | 12.97 | % | 13.04 | % | (0.5 | ) | |||||||||||||
| Per Common Share Data | ||||||||||||||||||||||||
| Net Income | ||||||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.56 | - | $ | 1.76 | $ | 1.33 | 32.3 | ||||||||||||||
| Diluted | 0.54 | 0.54 | - | 1.69 | 1.29 | 31.0 | ||||||||||||||||||
| Dividends | 0.10 | 0.05 | 100.0 | 0.30 | 0.15 | 100.0 | ||||||||||||||||||
| Market Value: | ||||||||||||||||||||||||
| High | $ | 28.46 | $ | 18.06 | 57.6 | $ | 28.46 | $ | 18.06 | 57.6 | ||||||||||||||
| Low | 22.49 | 15.80 | 42.3 | 18.42 | 14.41 | 27.8 | ||||||||||||||||||
| Close | 23.39 | 17.26 | 35.5 | 23.39 | 17.26 | 35.5 | ||||||||||||||||||
| Common Book Value | 27.44 | 26.13 | 5.0 | 27.44 | 26.13 | 5.0 | ||||||||||||||||||
| Tangible Common Book Value | 20.76 | 19.29 | 7.6 | 20.76 | 19.29 | 7.6 | ||||||||||||||||||
| Shares outstanding, end of period (000) | 9,785 | 9,729 | 0.6 | 9,776 | 9,729 | 0.5 | ||||||||||||||||||
| Performance Ratios (annualized) | ||||||||||||||||||||||||
| Tax-equivalent net interest margin (1) | 3.84 | % | 3.80 | % | 0.8 | 3.82 | % | 3.78 | % | 1.1 | ||||||||||||||
| Return on average assets | 1.07 | % | 1.06 | % | 1.6 | 1.13 | % | 0.87 | % | 30.1 | ||||||||||||||
| Return on average equity | 8.19 | % | 8.59 | % | (4.7 | ) | 8.71 | % | 6.66 | % | 30.8 | |||||||||||||
| Efficiency ratio (2) | 64.56 | % | 65.07 | % | (0.8 | ) | 64.51 | % | 63.04 | % | 2.3 | |||||||||||||
| Effective tax rate | 30.86 | % | 30.33 | % | 1.7 | 29.82 | % | 29.89 | % | (0.2 | ) | |||||||||||||
| Dividend payout ratio (basic) | 17.86 | % | 8.93 | % | 100.0 | 17.05 | % | 11.28 | % | 51.1 | ||||||||||||||
| (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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Gain from sale of mortgage loans | $ | 894 | $ | 2,888 | $ | 4,960 | $ | 7,890 | ||||||||
| Mortgage loan servicing revenue (expense): | ||||||||||||||||
| Mortgage loan servicing revenue | 901 | 824 | 2,646 | 2,499 | ||||||||||||
| Amortization of mortgage servicing rights | (429 | ) | (892 | ) | (1,752 | ) | (2,610 | ) | ||||||||
| Mortgage servicing rights valuation adjustments | 480 | (600 | ) | 1,265 | (855 | ) | ||||||||||
| 952 | (668 | ) | 2,159 | (966 | ) | |||||||||||
| Total revenue from sale and servicing of mortgage loans | $ | 1,846 | $ | 2,220 | $ | 7,119 | $ | 6,924 | ||||||||
| 9 |
| Yield Analysis | ||||||||||||||||||||||||
| First Defiance Financial Corp. | ||||||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||
| Balance | Interest(1) | Rate(2) | Balance | Interest(1) | Rate(2) | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable | $ | 1,548,718 | $ | 17,214 | 4.41 | % | $ | 1,481,995 | $ | 18,024 | 4.84 | % | ||||||||||||
| Securities | 184,413 | 1,779 | 3.83 | % | 274,327 | 2,245 | 3.37 | % | ||||||||||||||||
| Interest Bearing Deposits | 64,142 | 44 | 0.27 | % | 72,738 | 43 | 0.24 | % | ||||||||||||||||
| FHLB stock | 19,353 | 205 | 4.20 | % | 20,655 | 213 | 4.10 | % | ||||||||||||||||
| Total interest-earning assets | 1,816,626 | 19,242 | 4.20 | % | 1,849,715 | 20,525 | 4.44 | % | ||||||||||||||||
| Non-interest-earning assets | 209,651 | 197,424 | ||||||||||||||||||||||
| Total assets | $ | 2,026,277 | $ | 2,047,139 | ||||||||||||||||||||
| Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest bearing deposits | $ | 1,330,467 | $ | 1,356 | 0.40 | % | $ | 1,339,333 | $ | 1,909 | 0.57 | % | ||||||||||||
| FHLB advances and other | 21,003 | 116 | 2.19 | % | 81,812 | 759 | 3.69 | % | ||||||||||||||||
| Subordinated debentures | 36,130 | 150 | 1.65 | % | 36,141 | 172 | 1.89 | % | ||||||||||||||||
| Notes payable | 52,005 | 58 | 0.44 | % | 50,610 | 83 | 0.65 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,439,605 | 1,680 | 0.46 | % | 1,507,896 | 2,923 | 0.77 | % | ||||||||||||||||
| Non-interest bearing deposits | 302,245 | - | - | 266,416 | - | - | ||||||||||||||||||
| Total including non-interest-bearing demand deposits | 1,741,850 | 1,680 | 0.38 | % | 1,774,312 | 2,923 | 0.66 | % | ||||||||||||||||
| Other non-interest-bearing liabilities | 18,939 | 21,235 | ||||||||||||||||||||||
| Total liabilities | 1,760,789 | 1,795,547 | ||||||||||||||||||||||
| Stockholders' equity | 265,488 | 251,592 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,026,277 | $ | 2,047,139 | ||||||||||||||||||||
| Net interest income; interest rate spread | $ | 17,562 | 3.74 | % | $ | 17,602 | 3.67 | % | ||||||||||||||||
| Net interest margin (3) | 3.84 | % | 3.80 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest bearing liabilities | 126 | % | 123 | % | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||
| Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable | $ | 1,523,216 | $ | 51,092 | 4.48 | % | $ | 1,467,038 | $ | 54,925 | 5.00 | % | ||||||||||||
| Securities | 192,309 | 5,373 | 3.74 | % | 261,628 | 6,775 | 3.58 | % | ||||||||||||||||
| Interest Bearing Deposits | 85,483 | 174 | 0.27 | % | 128,711 | 249 | 0.26 | % | ||||||||||||||||
| FHLB stock | 19,557 | 631 | 4.31 | % | 20,655 | 656 | 4.24 | % | ||||||||||||||||
| Total interest-earning assets | 1,820,565 | 57,270 | 4.21 | % | 1,878,032 | 62,605 | 4.45 | % | ||||||||||||||||
| Non-interest-earning assets | 207,732 | 198,740 | ||||||||||||||||||||||
| Total assets | $ | 2,028,297 | $ | 2,076,772 | ||||||||||||||||||||
| Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest bearing deposits | $ | 1,343,564 | $ | 4,514 | 0.45 | % | $ | 1,357,499 | $ | 6,394 | 0.63 | % | ||||||||||||
| FHLB advances and other | 16,078 | 298 | 2.48 | % | 81,823 | 2,260 | 3.69 | % | ||||||||||||||||
| Subordinated debentures | 36,134 | 452 | 1.67 | % | 36,179 | 813 | 3.00 | % | ||||||||||||||||
| Notes payable | 49,376 | 178 | 0.48 | % | 52,312 | 284 | 0.73 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,445,152 | 5,442 | 0.50 | % | 1,527,813 | 9,751 | 0.85 | % | ||||||||||||||||
| Non-interest bearing deposits | 299,190 | - | - | 257,540 | - | - | ||||||||||||||||||
| Total including non-interest-bearing demand deposits | 1,744,342 | 5,442 | 0.42 | % | 1,785,353 | 9,751 | 0.73 | % | ||||||||||||||||
| Other non-interest-bearing liabilities | 20,820 | 20,595 | ||||||||||||||||||||||
| Total liabilities | 1,765,162 | 1,805,948 | ||||||||||||||||||||||
| Stockholders' equity | 263,135 | 270,824 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,028,297 | $ | 2,076,772 | ||||||||||||||||||||
| Net interest income; interest rate spread | $ | 51,828 | 3.70 | % | $ | 52,854 | 3.60 | % | ||||||||||||||||
| Net interest margin (3) | 3.82 | % | 3.78 | % | ||||||||||||||||||||
| Average interest-earning assets to average interest bearing liabilities | 126 | % | 123 | % | ||||||||||||||||||||
| (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 2013 | 2nd Qtr 2013 | 1st Qtr 2013 | 4th Qtr 2012 | 3rd Qtr 2012 | |||||||||||||||
| Summary of Operations | ||||||||||||||||||||
| Tax-equivalent interest income (1) | $ | 19,242 | $ | 19,143 | $ | 18,885 | $ | 19,993 | $ | 20,525 | ||||||||||
| Interest expense | 1,680 | 1,814 | 1,949 | 2,186 | 2,923 | |||||||||||||||
| Tax-equivalent net interest income (1) | 17,562 | 17,329 | 16,936 | 17,807 | 17,602 | |||||||||||||||
| Provision for loan losses | 476 | 448 | 425 | 2,618 | 705 | |||||||||||||||
| Tax-equivalent NII after provision for loan losses (1) | 17,086 | 16,881 | 16,511 | 15,189 | 16,897 | |||||||||||||||
| Investment securities gains, net of impairment | - | 44 | 53 | 1,606 | 103 | |||||||||||||||
| Non-interest income (excluding securities gains/losses) | 7,289 | 7,804 | 8,909 | 8,574 | 7,677 | |||||||||||||||
| Non-interest expense | 16,045 | 15,674 | 17,199 | 17,538 | 16,450 | |||||||||||||||
| Income taxes | 2,445 | 2,535 | 2,306 | 2,253 | 2,366 | |||||||||||||||
| Net income | 5,479 | 6,109 | 5,559 | 5,157 | 5,434 | |||||||||||||||
| Dividends Declared on Preferred Shares | - | - | - | - | (3 | ) | ||||||||||||||
| Accretion on Preferred Shares | - | - | - | - | (8 | ) | ||||||||||||||
| Redemption on Preferred Shares | - | - | - | - | - | |||||||||||||||
| Net Income Applicable to Common Shares | 5,479 | 6,109 | 5,559 | 5,157 | 5,423 | |||||||||||||||
| Tax equivalent adjustment (1) | 406 | 411 | 409 | 421 | 427 | |||||||||||||||
| At Period End | ||||||||||||||||||||
| Total assets | $ | 2,058,430 | $ | 2,066,216 | $ | 2,039,411 | $ | 2,046,948 | $ | 2,055,672 | ||||||||||
| Earning assets | 1,863,546 | 1,873,351 | 1,858,747 | 1,853,585 | 1,874,671 | |||||||||||||||
| Loans | 1,561,279 | 1,562,666 | 1,507,008 | 1,525,257 | 1,512,132 | |||||||||||||||
| Allowance for loan losses | 25,964 | 26,270 | 26,459 | 26,711 | 26,310 | |||||||||||||||
| Deposits | 1,658,492 | 1,635,708 | 1,656,348 | 1,667,472 | 1,609,350 | |||||||||||||||
| Stockholders’ equity | 269,359 | 264,497 | 262,643 | 258,128 | 255,136 | |||||||||||||||
| Stockholders’ equity / assets | 13.09 | % | 12.80 | % | 12.88 | % | 12.61 | % | 12.41 | % | ||||||||||
| Goodwill | 61,525 | 61,525 | 61,525 | 61,525 | 61,525 | |||||||||||||||
| Average Balances | ||||||||||||||||||||
| Total assets | $ | 2,026,277 | $ | 2,030,707 | $ | 2,027,906 | $ | 2,023,890 | $ | 2,047,139 | ||||||||||
| Earning assets | 1,816,626 | 1,825,730 | 1,823,089 | 1,815,263 | 1,849,715 | |||||||||||||||
| Loans | 1,548,718 | 1,520,708 | 1,500,222 | 1,509,611 | 1,481,995 | |||||||||||||||
| Deposits and interest-bearing liabilities | 1,741,850 | 1,745,084 | 1,746,092 | 1,744,274 | 1,774,312 | |||||||||||||||
| Deposits | 1,632,712 | 1,644,777 | 1,650,772 | 1,633,432 | 1,605,749 | |||||||||||||||
| Stockholders’ equity | 265,488 | 264,293 | 259,625 | 256,304 | 251,592 | |||||||||||||||
| Stockholders’ equity / assets | 13.10 | % | 13.01 | % | 12.80 | % | 12.66 | % | 12.29 | % | ||||||||||
| Per Common Share Data | ||||||||||||||||||||
| Net Income: | ||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.63 | $ | 0.57 | $ | 0.53 | $ | 0.56 | ||||||||||
| Diluted | 0.54 | 0.60 | 0.55 | 0.52 | 0.54 | |||||||||||||||
| Dividends | 0.10 | 0.10 | 0.10 | 0.05 | 0.05 | |||||||||||||||
| Market Value: | ||||||||||||||||||||
| High | $ | 28.46 | $ | 23.75 | $ | 23.75 | $ | 19.38 | $ | 18.06 | ||||||||||
| Low | 22.49 | 20.80 | 18.42 | 15.75 | 15.80 | |||||||||||||||
| Close | 23.39 | 22.55 | 23.32 | 19.19 | 17.26 | |||||||||||||||
| Common Book Value | 27.44 | 26.97 | 26.80 | 26.44 | 26.13 | |||||||||||||||
| Shares outstanding, end of period (in thousands) | 9,785 | 9,776 | 9,766 | 9,729 | 9,729 | |||||||||||||||
| Performance Ratios (annualized) | ||||||||||||||||||||
| Tax-equivalent net interest margin (1) | 3.84 | % | 3.82 | % | 3.78 | % | 3.92 | % | 3.80 | % | ||||||||||
| Return on average assets | 1.07 | % | 1.21 | % | 1.11 | % | 1.01 | % | 1.06 | % | ||||||||||
| Return on average equity | 8.19 | % | 9.27 | % | 8.68 | % | 8.00 | % | 8.59 | % | ||||||||||
| Efficiency ratio (2) | 64.56 | % | 62.36 | % | 66.55 | % | 66.48 | % | 65.07 | % | ||||||||||
| Effective tax rate | 30.86 | % | 29.33 | % | 29.32 | % | 30.40 | % | 30.33 | % | ||||||||||
| Common dividend payout ratio (basic) | 17.86 | % | 15.87 | % | 17.54 | % | 9.43 | % | 8.93 | % | ||||||||||
| (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 2013 | 2nd Qtr 2013 | 1st Qtr 2013 | 4th Qtr 2012 | 3rd Qtr 2012 | |||||||||||||||
| Loan Portfolio Composition | ||||||||||||||||||||
| One to four family residential real estate | $ | 191,984 | $ | 196,802 | $ | 197,675 | $ | 200,826 | $ | 210,053 | ||||||||||
| Construction | 59,567 | 41,519 | 33,398 | 37,788 | 31,428 | |||||||||||||||
| Commercial real estate | 821,115 | 820,412 | 802,098 | 797,385 | 792,351 | |||||||||||||||
| Commercial | 386,160 | 396,158 | 365,551 | 383,817 | 365,510 | |||||||||||||||
| Consumer finance | 16,659 | 16,817 | 15,549 | 15,936 | 16,785 | |||||||||||||||
| Home equity and improvement | 105,727 | 106,570 | 106,524 | 108,718 | 111,563 | |||||||||||||||
| Total loans | 1,581,212 | 1,578,278 | 1,520,795 | 1,544,470 | 1,527,690 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Loans in process | 19,189 | 14,876 | 13,084 | 18,478 | 14,831 | |||||||||||||||
| Deferred loan origination fees | 744 | 736 | 703 | 735 | 727 | |||||||||||||||
| Allowance for loan loss | 25,964 | 26,270 | 26,459 | 26,711 | 26,310 | |||||||||||||||
| Net Loans | $ | 1,535,315 | $ | 1,536,396 | $ | 1,480,549 | $ | 1,498,546 | $ | 1,485,822 | ||||||||||
| Allowance for loan loss activity | ||||||||||||||||||||
| Beginning allowance | $ | 26,270 | $ | 26,459 | $ | 26,711 | $ | 26,310 | $ | 26,409 | ||||||||||
| Provision for loan losses | 476 | 448 | 425 | 2,618 | 705 | |||||||||||||||
| Credit loss charge-offs: | ||||||||||||||||||||
| One to four family residential real estate | 78 | 184 | 206 | 976 | 217 | |||||||||||||||
| Commercial real estate | 829 | 283 | 266 | 593 | 780 | |||||||||||||||
| Commercial | 39 | 316 | 205 | 541 | 355 | |||||||||||||||
| Consumer finance | 33 | 8 | 46 | 59 | 19 | |||||||||||||||
| Home equity and improvement | 170 | 170 | 272 | 497 | 203 | |||||||||||||||
| Total charge-offs | 1,149 | 961 | 995 | 2,666 | 1,574 | |||||||||||||||
| Total recoveries | 367 | 324 | 318 | 449 | 770 | |||||||||||||||
| Net charge-offs (recoveries) | 782 | 637 | 677 | 2,217 | 804 | |||||||||||||||
| Ending allowance | $ | 25,964 | $ | 26,270 | $ | 26,459 | $ | 26,711 | $ | 26,310 | ||||||||||
| Credit Quality | ||||||||||||||||||||
| Total non-performing loans (1) | $ | 30,512 | $ | 28,650 | $ | 35,283 | $ | 32,570 | $ | 37,803 | ||||||||||
| Real estate owned (REO) | 5,518 | 6,546 | 4,313 | 3,805 | 2,843 | |||||||||||||||
| Total non-performing assets (2) | $ | 36,030 | $ | 35,196 | $ | 39,596 | $ | 36,375 | $ | 40,646 | ||||||||||
| Net charge-offs | 782 | 637 | 677 | 2,217 | 804 | |||||||||||||||
| Restructured loans, accruing (3) | 28,010 | 28,732 | 27,981 | 28,203 | 4,305 | |||||||||||||||
| Allowance for loan losses / loans | 1.66 | % | 1.68 | % | 1.76 | % | 1.75 | % | 1.74 | % | ||||||||||
| Allowance for loan losses / non-performing assets | 72.06 | % | 74.64 | % | 66.82 | % | 73.43 | % | 64.73 | % | ||||||||||
| Allowance for loan losses / non-performing loans | 85.09 | % | 91.69 | % | 74.99 | % | 82.01 | % | 69.60 | % | ||||||||||
| Non-performing assets / loans plus REO | 2.30 | % | 2.24 | % | 2.62 | % | 2.38 | % | 2.68 | % | ||||||||||
| Non-performing assets / total assets | 1.75 | % | 1.70 | % | 1.94 | % | 1.78 | % | 1.98 | % | ||||||||||
| Net charge-offs / average loans (annualized) | 0.20 | % | 0.17 | % | 0.18 | % | 0.59 | % | 0.22 | % | ||||||||||
| Deposit Balances | ||||||||||||||||||||
| Non-interest-bearing demand deposits | $ | 300,891 | $ | 301,742 | $ | 291,765 | $ | 315,132 | $ | 271,305 | ||||||||||
| Interest-bearing demand deposits and money market | 681,987 | 659,249 | 681,061 | 664,857 | 636,510 | |||||||||||||||
| Savings deposits | 182,271 | 182,784 | 177,336 | 166,945 | 166,155 | |||||||||||||||
| Retail time deposits less than $100,000 | 318,317 | 321,422 | 330,870 | 342,472 | 356,369 | |||||||||||||||
| Retail time deposits greater than $100,000 | 175,026 | 168,573 | 173,379 | 176,029 | 176,725 | |||||||||||||||
| National/Brokered time deposits | - | 1,938 | 1,937 | 2,037 | 2,286 | |||||||||||||||
| Total deposits | $ | 1,658,492 | $ | 1,635,708 | $ | 1,656,348 | $ | 1,667,472 | $ | 1,609,350 | ||||||||||
| (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. |
| 12 |
Loan Delinquency Information
First Defiance Financial Corp.
| (dollars in thousands) | Total Balance | Current | 30 to 89 days past due | Non Accrual Loans | ||||||||||||
| September 30, 2013 | ||||||||||||||||
| One to four family residential real estate | $ | 191,984 | $ | 188,065 | $ | 760 | $ | 3,159 | ||||||||
| Construction | 59,567 | 59,567 | - | |||||||||||||
| Commercial real estate | 821,115 | 802,115 | 574 | 18,426 | ||||||||||||
| Commercial | 386,160 | 377,116 | 295 | 8,749 | ||||||||||||
| Consumer finance | 16,659 | 16,616 | 43 | |||||||||||||
| Home equity and improvement | 105,727 | 103,997 | 1,552 | 178 | ||||||||||||
| Total loans | $ | 1,581,212 | $ | 1,547,476 | $ | 3,224 | $ | 30,512 | ||||||||
| 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 | ||||||||
| September 30, 2012 | ||||||||||||||||
| One to four family residential real estate | $ | 210,053 | $ | 202,073 | $ | 2,196 | $ | 5,784 | ||||||||
| Construction | 31,428 | 31,428 | - | - | ||||||||||||
| Commercial real estate | 792,351 | 765,611 | 1,749 | 24,991 | ||||||||||||
| Commercial | 365,510 | 358,452 | 388 | 6,670 | ||||||||||||
| Consumer finance | 16,785 | 16,653 | 117 | 15 | ||||||||||||
| Home equity and improvement | 111,563 | 109,556 | 1,664 | 343 | ||||||||||||
| Total loans | $ | 1,527,690 | $ | 1,483,773 | $ | 6,114 | $ | 37,803 | ||||||||
| 13 |