Exhibit 99.1
 | NEWS RELEASE Contact: Donald P. Hileman President and CEO (419) 782-5104 dhileman@first-fed.com |
FIRST DEFIANCE FINANCIAL CORP. REPORTS
RECORD FULL YEAR EARNINGS OF $2.82 PER SHARE FOR 2015,
UP 15.6% FROM FULL YEAR 2014
| · | Earnings per share of $0.71 for 2015 fourth quarter, up from $0.65 per share in the fourth quarter of 2014 |
| · | Net income of $6.6 million for 2015 fourth quarter compared to $6.4 million in the fourth quarter of 2014 |
| · | Net interest margin of 3.77% for the 2015 fourth quarter, up from 3.76% in the fourth quarter of 2014 |
| · | Loan growth $68.7 million during the 2015 fourth quarter |
| · | Deposit growth $43.1 million during the 2015 fourth quarter |
| · | Non-performing loans down 32.6% from 2014 year end |
DEFIANCE, OHIO (January 18, 2016)– First Defiance Financial Corp. (NASDAQ: FDEF) announced today that net income for the fiscal year ended December 31, 2015 totaled $26.4 million, or $2.82 per diluted common share, compared to $24.3 million or $2.44 per diluted common share for the year ended December 31, 2014.
For the fourth quarter 2015, First Defiance earned $6.6 million, or $0.71 per diluted common share compared to $6.4 million; or $0.65 per diluted common share for the fourth quarter of 2014. Last year’s fourth quarter results were positively impacted by a $551,000 adjustment to the provision for income taxes to reflect the utilization of capital loss carryforwards.
“We are extremely pleased with our achievement of record earnings results for 2015 with earnings per diluted share up 15.6 percent over last year,” said Donald P. Hileman, President and Chief Executive Officer of First Defiance Financial Corp. “We are particularly encouraged by our fourth quarter performance. Our profitability remained very strong, credit quality improved, and loan and deposit growth were both exceptional, which gives us good momentum and confidence for continued success in 2016.”
Net interest income up compared to fourth quarter 2014
Net interest income of $19.0 million in the fourth quarter of 2015 was up from $18.1 million in the fourth quarter of 2014. Net interest margin was 3.77% for the fourth quarter of 2015, down from 3.78% in the third quarter 2015, but up from 3.76% in the fourth quarter of 2014. Yield on interest earning assets increased by 3 basis points, to 4.12% in the fourth quarter of 2015 from 4.09% in the fourth quarter of 2014. The cost of interest-bearing liabilities increased by 4 basis points in the fourth quarter of 2015 to 0.46% from 0.42% in the fourth quarter of 2014.
“Our healthy loan growth in particular has enabled us to maintain a solid earning asset mix, steady net interest margin and growth in net interest income which increased $866,000, or 4.8% over the same quarter last year,” said Hileman. “We expect a challenging rate environment in 2016, but we believe we are well positioned to minimize the risks of potential rate changes ahead.”
Non-interest income up from fourth quarter 2014
First Defiance’s non-interest income for the fourth quarter of 2015 was $7.7 million compared with $7.3 million in the fourth quarter of 2014. Mortgage banking income increased to $1.5 million in the fourth quarter of 2015, up from $1.3 million in the fourth quarter of 2014 due to higher volumes of both purchase and refinance loans throughout our market area. Gains from the sale of mortgage loans increased in the fourth quarter of 2015 to $836,000 from $734,000 in the fourth quarter of 2014. Mortgage loan servicing revenue was $910,000 in the fourth quarter of 2015, up slightly from $900,000 in the fourth quarter of 2014. First Defiance had a positive change in the valuation adjustment in mortgage servicing assets of $75,000 in the fourth quarter of 2015 compared with a positive adjustment of $11,000 in the fourth quarter of 2014.
For the fourth quarter 2015, service fees and other charges were $2.7 million, down slightly from $2.8 million in the fourth quarter of 2014; and commissions from the sale of insurance products were $2.3 million, up from $2.2 million in the fourth quarter 2014. Trust income was $367,000 in the fourth quarter of 2015, up from $345,000 in the fourth quarter of 2014.
“Our fourth quarter non-interest revenues grew $388,000, up 5.3% over the same period last year,” said Hileman. “Continued increases in mortgage banking origination levels, up 17% from a year ago, and growth in both insurance commissions and wealth management revenues contributed to this success.”
Non-interest expenses up from fourth quarter 2014
Total non-interest expense was $17.3 million in the fourth quarter of 2015, up from $17.0 million in the fourth quarter of 2014. Compensation and benefits increased to $9.9 million in the fourth quarter of 2015 compared to $9.1 million in the fourth quarter of 2014. The increase in compensation and benefits from a year ago is mainly related to higher incentive compensation, merit increases and staff additions for growth. Occupancy expense was $1.8 million in the fourth quarter 2015, up only $58,000 from the fourth quarter 2014. Data processing cost was $1.4 million in the fourth quarter of 2015, down $92,000 from the fourth quarter of 2014. Other non-interest expense of $3.3 million in the fourth quarter of 2015, decreased from $3.8 million in the fourth quarter of 2014 primarily due to reductions in OREO costs and management consulting.
Credit quality
Non-performing loans totaled $16.3 million at December 31, 2015, a decrease from $24.1 million at December 31, 2014. In addition, First Defiance had $1.3 million of real estate owned at December 31, 2015 compared to $6.2 million at December 31, 2014. Accruing troubled debt restructured loans were $11.2 million at December 31, 2015 compared with $24.7 million at December 31, 2014. For the fourth quarter of 2015, First Defiance recorded net recoveries of $129,000, compared to net recoveries of $37,000 in the fourth quarter of 2014. The allowance for loan loss as a percentage of total loans was 1.41% at December 31, 2015 compared with 1.50% at December 31, 2014.
The fourth quarter results include a provision for loan losses of $43,000 compared with an expense of $162,000 for the same period in 2014.
“Our progress on improving asset quality continued in the fourth quarter, as non-performing assets, including troubled debt restructurings, were reduced $6.6 million during the quarter, a 48% decrease from the prior year,” said Hileman. “This improvement, along with net recoveries on loans in the quarter, has enabled us to strengthen our allowance for loan losses coverage of non-performing loans to 156% and significantly contain our provision expense.”
Annual results
For the full year ended on December 31, 2015, net income totaled $26.4 million, or $2.82 per diluted common share, compared to $24.3 million or $2.44 per diluted common share for 2014.
Net interest income for 2015 totaled $74.1 million, compared with $69.7 million for 2014. Average interest-earning assets increased to $2.00 billion for 2015, compared to $1.95 billion in 2014. Net interest margin for 2015 was 3.81%, up 13 basis points from the 3.68% margin for 2014.
The provision for loan losses for 2015 was $136,000 compared to $1.1 million in 2014 as a result of the improved credit quality previously mentioned.
Non-interest income for the year 2015 was $31.8 million, compared to $31.6 million in 2014. Service fees and other charges were $10.8 million for 2015, up from $10.3 million in 2014. Mortgage banking income increased to $6.7 million for 2015, compared with $5.6 million in 2014. Gains on the sale of non-mortgage loans were $824,000 for 2015, compared with $181,000 during 2014. Insurance and investment sales revenues increased to $10.1 million for 2015, compared with $9.9 million for 2014. Non-interest income for 2015 included only $22,000 of net securities gains compared to $932,000 of net securities gains for 2014. In addition, 2014 included a $903,000 tax-free benefit from a bank-owned life insurance policy and a $498,000 tax-free gain recognized through the company’s deferred compensation plan trust.
Non-interest expense increased to $67.9 million for 2015 from $66.8 million in 2014. Compensation and benefits expense was $37.8 million for 2015 compared with $35.5 million for 2014. The increase in compensation and benefits over the prior year is mainly related to higher incentive compensation accruals, merit increases and new staff for growth strategies, partially offset by lower medical insurance costs. Increases in occupancy of $514,000, data processing of $227,000 and financial institutions taxes of $21,000 were offset by decreases in FDIC insurance premiums of $95,000, amortization of intangibles of $403,000 and other expenses of $1.4 million, which included a $786,000 cost recorded in the first quarter 2014 for terminating a merger agreement.
Total assets at $2.3 billion
Total assets at December 31, 2015 were $2.30 billion compared to $2.18 billion at December 31, 2014. Net loans receivable (excluding loans held for sale) were $1.78 billion at December 31, 2015 compared to $1.62 billion at December 31, 2014. Total cash and cash equivalents were $79.8 million at December 31, 2015 compared with $112.9 million at December 31, 2014. Also, at December 31, 2015, goodwill and other intangible assets totaled $63.7 million compared to $63.9 million at December 31, 2014.
Total deposits at December 31, 2015 were $1.84 billion compared with $1.76 billion at December 31, 2014. Non-interest bearing deposits at December 31, 2015 were $420.7 million compared to $379.6 million at December 31, 2014. Total stockholders’ equity was $280.2 million at December 31, 2015 compared to $279.5 million at December 31, 2014.
Dividend to be paid February 26
The Board of Directors declared a quarterly cash dividend of $0.22 per common share payable February 26, 2016 to shareholders of record at the close of business on February 19, 2016. The dividend represents an annual dividend of 2.39 percent based on the First Defiance common stock closing price on January 15, 2016. First Defiance has approximately 9,054,000 common shares outstanding.
Conference call
First Defiance Financial Corp. will host a conference call at 11:00 a.m. ET on Tuesday, January 19, 2016 to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. In addition, a live webcast may be accessed at http://services.choruscall.com/links/fdef160119.
Audio replay of the Internet Webcast will be available atwww.fdef.com until February 19, 2016 at 9:00 a.m. ET.
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 34 full-service branches and 41 ATM locations in northwest Ohio, southeast Michigan and northeast Indiana and a loan production office in Columbus, Ohio. 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 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 First Defiance 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 our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2014. One or more of these factors have affected or could in the future affect First Defiance'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 First Defiance or any other persons, that our objectives and plans will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of First Defiance. We assume no obligation to update any forward-looking statements.
As required by U.S. GAAP, First Defiance will evaluate the impact of subsequent events through the issuance date of its December 31, 2015 consolidated financial statements as part of its Annual Report on Form 10-K to be filed with the SEC. Accordingly, subsequent events could occur that may cause First Defiance to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.
Consolidated Balance Sheets (Unaudited)
First Defiance Financial Corp.
| | | December 31, | | | December 31, | |
| (in thousands) | | 2015 | | | 2014 | |
| | | | | | | |
| Assets | | | | | | | | |
| Cash and cash equivalents | | | | | | | | |
| Cash and amounts due from depository institutions | | $ | 38,769 | | | $ | 41,936 | |
| Interest-bearing deposits | | | 41,000 | | | | 71,000 | |
| | | | 79,769 | | | | 112,936 | |
| Securities | | | | | | | | |
| Available-for sale, carried at fair value | | | 236,435 | | | | 239,321 | |
| Held-to-maturity, carried at amortized cost | | | 243 | | | | 313 | |
| | | | 236,678 | | | | 239,634 | |
| | | | | | | | | |
| Loans | | | 1,802,217 | | | | 1,646,786 | |
| Allowance for loan losses | | | (25,382 | ) | | | (24,766 | ) |
| Loans, net | | | 1,776,835 | | | | 1,622,020 | |
| Loans held for sale | | | 5,523 | | | | 4,535 | |
| Mortgage servicing rights | | | 9,248 | | | | 9,012 | |
| Accrued interest receivable | | | 6,171 | | | | 6,037 | |
| Federal Home Loan Bank stock | | | 13,801 | | | | 13,802 | |
| Bank Owned Life Insurance | | | 51,908 | | | | 47,013 | |
| Office properties and equipment | | | 38,165 | | | | 40,496 | |
| Real estate and other assets held for sale | | | 1,321 | | | | 6,181 | |
| Goodwill | | | 61,798 | | | | 61,525 | |
| Core deposit and other intangibles | | | 1,871 | | | | 2,395 | |
| Other assets | | | 14,588 | | | | 13,366 | |
| Total Assets | | $ | 2,297,676 | | | $ | 2,178,952 | |
| | | | | | | | | |
| Liabilities and Stockholders’ Equity | | | | | | | | |
| Non-interest-bearing deposits | | $ | 420,691 | | | $ | 379,552 | |
| Interest-bearing deposits | | | 1,415,446 | | | | 1,381,261 | |
| Total deposits | | | 1,836,137 | | | | 1,760,813 | |
| Advances from Federal Home Loan Bank | | | 59,902 | | | | 21,544 | |
| Notes payable and other interest-bearing liabilities | | | 57,188 | | | | 54,759 | |
| Subordinated debentures | | | 36,083 | | | | 36,083 | |
| Advance payments by borrowers for tax and insurance | | | 2,674 | | | | 2,309 | |
| Deferred Taxes | | | 823 | | | | 1,176 | |
| Other liabilities | | | 24,672 | | | | 22,763 | |
| Total Liabilities | | | 2,017,479 | | | | 1,899,447 | |
| Stockholders’ Equity | | | | | | | | |
| Preferred stock | | | - | | | | - | |
| Common stock, net | | | 127 | | | | 127 | |
| Common stock warrant | | | - | | | | 878 | |
| Additional paid-in-capital | | | 125,734 | | | | 136,266 | |
| Accumulated other comprehensive income | | | 3,622 | | | | 4,114 | |
| Retained earnings | | | 219,737 | | | | 200,600 | |
| Treasury stock, at cost | | | (69,023 | ) | | | (62,480 | ) |
| Total stockholders’ equity | | | 280,197 | | | | 279,505 | |
| Total Liabilities and Stockholders’ Equity | | $ | 2,297,676 | | | $ | 2,178,952 | |
Consolidated Statements of Income (Unaudited)
First Defiance Financial Corp.
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| (in thousands, except per share amounts) | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| Interest Income: | | | | | | | | | | | | | | | | |
| Loans | | $ | 18,901 | | | $ | 17,788 | | | $ | 73,346 | | | $ | 68,682 | |
| Investment securities | | | 1,680 | | | | 1,719 | | | | 6,769 | | | | 6,575 | |
| Interest-bearing deposits | | | 56 | | | | 66 | | | | 169 | | | | 349 | |
| FHLB stock dividends | | | 139 | | | | 140 | | | | 552 | | | | 642 | |
| Total interest income | | | 20,776 | | | | 19,713 | | | | 80,836 | | | | 76,248 | |
| Interest Expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 1,394 | | | | 1,293 | | | | 5,341 | | | | 5,283 | |
| FHLB advances and other | | | 214 | | | | 131 | | | | 675 | | | | 528 | |
| Subordinated debentures | | | 162 | | | | 148 | | | | 613 | | | | 587 | |
| Notes Payable | | | 39 | | | | 40 | | | | 152 | | | | 161 | |
| Total interest expense | | | 1,809 | | | | 1,612 | | | | 6,781 | | | | 6,559 | |
| Net interest income | | | 18,967 | | | | 18,101 | | | | 74,055 | | | | 69,689 | |
| Provision for loan losses | | | 43 | | | | 162 | | | | 136 | | | | 1,117 | |
| Net interest income after provision for loan losses | | | 18,924 | | | | 17,939 | | | | 73,919 | | | | 68,572 | |
| Non-interest Income: | | | | | | | | | | | | | | | | |
| Service fees and other charges | | | 2,734 | | | | 2,766 | | | | 10,752 | | | | 10,258 | |
| Mortgage banking income | | | 1,465 | | | | 1,270 | | | | 6,713 | | | | 5,602 | |
| Gain on sale of non-mortgage loans | | | 48 | | | | 102 | | | | 824 | | | | 181 | |
| Gain on sale of securities | | | 22 | | | | 1 | | | | 22 | | | | 932 | |
| Insurance commissions | | | 2,283 | | | | 2,219 | | | | 10,076 | | | | 9,859 | |
| Trust income | | | 367 | | | | 345 | | | | 1,462 | | | | 1,240 | |
| Income from Bank Owned Life Insurance | | | 237 | | | | 218 | | | | 895 | | | | 1,802 | |
| Other non-interest income | | | 574 | | | | 421 | | | | 1,059 | | | | 1,767 | |
| Total Non-interest Income | | | 7,730 | | | | 7,342 | | | | 31,803 | | | | 31,641 | |
| Non-interest Expense: | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 9,873 | | | | 9,075 | | | | 37,769 | | | | 35,543 | |
| Occupancy | | | 1,836 | | | | 1,778 | | | | 7,197 | | | | 6,683 | |
| FDIC insurance premium | | | 325 | | | | 332 | | | | 1,324 | | | | 1,419 | |
| Financial institutions tax | | | 443 | | | | 239 | | | | 1,783 | | | | 1,762 | |
| Data processing | | | 1,431 | | | | 1,523 | | | | 6,083 | | | | 5,856 | |
| Amortization of intangibles | | | 163 | | | | 269 | | | | 699 | | | | 1,102 | |
| Other non-interest expense | | | 3,276 | | | | 3,753 | | | | 13,034 | | | | 14,393 | |
| Total Non-interest Expense | | | 17,347 | | | | 16,969 | | | | 67,889 | | | | 66,758 | |
| Income before income taxes | | | 9,307 | | | | 8,312 | | | | 37,833 | | | | 33,455 | |
| Income taxes | | | 2,744 | | | | 1,957 | | | | 11,410 | | | | 9,163 | |
| Net Income | | $ | 6,563 | | | $ | 6,355 | | | $ | 26,423 | | | $ | 24,292 | |
| | | | | | | | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.72 | | | $ | 0.68 | | | $ | 2.87 | | | $ | 2.55 | |
| Diluted | | $ | 0.71 | | | $ | 0.65 | | | $ | 2.82 | | | $ | 2.44 | |
| | | | | | | | | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 9,146 | | | | 9,316 | | | | 9,221 | | | | 9,511 | |
| Diluted | | | 9,235 | | | | 9,801 | | | | 9,383 | | | | 9,975 | |
Financial Summary and Comparison (Unaudited)
First Defiance Financial Corp.
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| (dollars in thousands, except per share data) | | 2015 | | | 2014 | | | % change | | | 2015 | | | 2014 | | | % change | |
| Summary of Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Tax-equivalent interest income (1) | | $ | 21,256 | | | $ | 20,174 | | | | 5.4 | % | | $ | 82,741 | | | $ | 78,046 | | | | 6.0 | % |
| Interest expense | | | 1,809 | | | | 1,612 | | | | 12.2 | | | | 6,781 | | | | 6,559 | | | | 3.4 | |
| Tax-equivalent net interest income (1) | | | 19,447 | | | | 18,562 | | | | 4.8 | | | | 75,960 | | | | 71,487 | | | | 6.3 | |
| Provision for loan losses | | | 43 | | | | 162 | | | | (73.5 | ) | | | 136 | | | | 1,117 | | | | (87.8 | ) |
| Tax-equivalent NII after provision for loan loss (1) | | | 19,404 | | | | 18,400 | | | | 5.5 | | | | 75,824 | | | | 70,370 | | | | 7.8 | |
| Investment Securities gains | | | 22 | | | | 1 | | | | NM | | | | 22 | | | | 932 | | | | (97.6 | ) |
| Non-interest income (excluding securities gains/losses) | | | 7,708 | | | | 7,341 | | | | 5.0 | | | | 31,781 | | | | 30,709 | | | | 3.5 | |
| Non-interest expense | | | 17,347 | | | | 16,969 | | | | 2.2 | | | | 67,889 | | | | 66,758 | | | | 1.7 | |
| Income taxes | | | 2,744 | | | | 1,957 | | | | 40.2 | | | | 11,410 | | | | 9,163 | | | | 24.5 | |
| Net Income | | | 6,563 | | | | 6,355 | | | | 3.3 | | | | 26,423 | | | | 24,292 | | | | 8.8 | |
| Tax equivalent adjustment (1) | | | 480 | | | | 461 | | | | 4.1 | | | | 1,905 | | | | 1,798 | | | | 6.0 | |
| At Period End | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 2,297,676 | | | | 2,178,952 | | | | 5.4 | | | | | | | | | | | | | |
| Earning assets | | | 2,099,219 | | | | 1,975,757 | | | | 6.2 | | | | | | | | | | | | | |
| Loans | | | 1,802,217 | | | | 1,646,786 | | | | 9.4 | | | | | | | | | | | | | |
| Allowance for loan losses | | | 25,382 | | | | 24,766 | | | | 2.5 | | | | | | | | | | | | | |
| Deposits | | | 1,836,137 | | | | 1,760,813 | | | | 4.3 | | | | | | | | | | | | | |
| Stockholders’ equity | | | 280,197 | | | | 279,505 | | | | 0.2 | | | | | | | | | | | | | |
| Average Balances | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 2,276,060 | | | | 2,184,792 | | | | 4.2 | | | | 2,222,866 | | | | 2,162,468 | | | | 2.8 | |
| Earning assets | | | 2,051,331 | | | | 1,964,074 | | | | 4.4 | | | | 2,000,477 | | | | 1,947,078 | | | | 2.7 | |
| Loans | | | 1,732,472 | | | | 1,615,657 | | | | 7.2 | | | | 1,687,413 | | | | 1,574,753 | | | | 7.2 | |
| Deposits and interest-bearing liabilities | | | 1,967,199 | | | | 1,879,918 | | | | 4.6 | | | | 1,916,758 | | | | 1,862,834 | | | | 2.9 | |
| Deposits | | | 1,823,396 | | | | 1,764,908 | | | | 3.3 | | | | 1,787,876 | | | | 1,750,184 | | | | 2.2 | |
| Stockholders’ equity | | | 279,192 | | | | 278,944 | | | | 0.1 | | | | 277,645 | | | | 276,537 | | | | 0.4 | |
| Stockholders’ equity / assets | | | 12.27 | % | | | 12.77 | % | | | (3.9 | ) | | | 12.49 | % | | | 12.79 | % | | | (2.3 | ) |
| Per Common Share Data | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Income | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.72 | | | $ | 0.68 | | | | 5.9 | | | $ | 2.87 | | | $ | 2.55 | | | | 12.5 | |
| Diluted | | | 0.71 | | | | 0.65 | | | | 9.2 | | | | 2.82 | | | | 2.44 | | | | 15.6 | |
| Dividends | | | 0.20 | | | | 0.175 | | | | 14.3 | | | | 0.775 | | | | 0.625 | | | | 24.0 | |
| Market Value: | | | | | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 42.46 | | | $ | 35.70 | | | | 18.9 | | | $ | 42.46 | | | $ | 35.70 | | | | 18.9 | |
| Low | | | 35.01 | | | | 26.95 | | | | 29.9 | | | | 29.05 | | | | 24.24 | | | | 19.8 | |
| Close | | | 37.78 | | | | 34.06 | | | | 10.9 | | | | 37.78 | | | | 34.06 | | | | 10.9 | |
| Common Book Value | | | 30.78 | | | | 30.17 | | | | 2.0 | | | | 30.78 | | | | 30.17 | | | | 2.0 | |
| Tangible Common Book Value | | | 23.79 | | | | 23.25 | | | | 2.3 | | | | 23.79 | | | | 23.25 | | | | 2.3 | |
| Shares outstanding, end of period (000) | | | 9,102 | | | | 9,235 | | | | (1.4 | ) | | | 9,102 | | | | 9,235 | | | | (1.4 | ) |
| Performance Ratios (annualized) | | | | | | | | | | | | | | | | | | | | | | | | |
| Tax-equivalent net interest margin (1) | | | 3.77 | % | | | 3.76 | % | | | 0.3 | | | | 3.81 | % | | | 3.68 | % | | | 3.5 | |
| Return on average assets | | | 1.14 | % | | | 1.15 | % | | | (0.9 | ) | | | 1.19 | % | | | 1.12 | % | | | 5.8 | |
| Return on average equity | | | 9.33 | % | | | 9.04 | % | | | 3.2 | | | | 9.52 | % | | | 8.78 | % | | | 8.3 | |
| Efficiency ratio (2) | | | 63.88 | % | | | 65.51 | % | | | (2.5 | ) | | | 63.01 | % | | | 65.32 | % | | | (3.5 | ) |
| Effective tax rate | | | 29.48 | % | | | 23.54 | % | | | 25.2 | | | | 30.16 | % | | | 27.39 | % | | | 10.1 | |
| Dividend payout ratio (basic) | | | 27.78 | % | | | 25.74 | % | | | 7.9 | | | | 27.00 | % | | | 24.51 | % | | | 10.2 | |
| (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 |
Income from Mortgage Banking
Revenue from sales and servicing of mortgage loans consisted of the following:
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| (dollars in thousands) | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | |
| Gain from sale of mortgage loans | | $ | 836 | | | $ | 734 | | | $ | 4,564 | | | $ | 3,335 | |
| Mortgage loan servicing revenue (expense): | | | | | | | | | | | | | | | | |
| Mortgage loan servicing revenue | | | 910 | | | | 900 | | | | 3,503 | | | | 3,552 | |
| Amortization of mortgage servicing rights | | | (356 | ) | | | (375 | ) | | | (1,620 | ) | | | (1,401 | ) |
| Mortgage servicing rights valuation adjustments | | | 75 | | | | 11 | | | | 266 | | | | 116 | |
| | | | 629 | | | | 536 | | | | 2,149 | | | | 2,267 | |
| Total revenue from sale and servicing of mortgage loans | | $ | 1,465 | | | $ | 1,270 | | | $ | 6,713 | | | $ | 5,602 | |
Yield Analysis
First Defiance Financial Corp.
| | | Three Months Ended December 31, | |
| | | (dollars in thousands) | |
| | | 2015 | | | 2014 | |
| | | Average | | | | | | Yield | | | Average | | | | | | Yield | |
| | | Balance | | | Interest(1) | | | Rate(2) | | | Balance | | | Interest(1) | | | Rate(2) | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans receivable | | $ | 1,732,472 | | | $ | 18,954 | | | | 4.34 | % | | $ | 1,615,657 | | | $ | 17,833 | | | | 4.38 | % |
| Securities | | | 236,361 | | | | 2,107 | | | | 3.64 | % | | | 238,553 | | | | 2,135 | | | | 3.65 | % |
| Interest Bearing Deposits | | | 68,697 | | | | 56 | | | | 0.32 | % | | | 96,062 | | | | 66 | | | | 0.27 | % |
| FHLB stock | | | 13,801 | | | | 139 | | | | 4.00 | % | | | 13,802 | | | | 140 | | | | 4.02 | % |
| Total interest-earning assets | | | 2,051,331 | | | | 21,256 | | | | 4.12 | % | | | 1,964,074 | | | | 20,174 | | | | 4.09 | % |
| Non-interest-earning assets | | | 224,729 | | | | | | | | | | | | 220,718 | | | | | | | | | |
| Total assets | | $ | 2,276,060 | | | | | | | | | | | $ | 2,184,792 | | | | | | | | | |
| Deposits and Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | $ | 1,408,283 | | | $ | 1,394 | | | | 0.39 | % | | $ | 1,393,584 | | | $ | 1,293 | | | | 0.37 | % |
| FHLB advances and other | | | 50,419 | | | | 214 | | | | 1.68 | % | | | 21,628 | | | | 131 | | | | 2.40 | % |
| Subordinated debentures | | | 36,128 | | | | 162 | | | | 1.78 | % | | | 36,128 | | | | 148 | | | | 1.63 | % |
| Notes payable | | | 57,256 | | | | 39 | | | | 0.27 | % | | | 57,254 | | | | 40 | | | | 0.28 | % |
| Total interest-bearing liabilities | | | 1,552,086 | | | | 1,809 | | | | 0.46 | % | | | 1,508,594 | | | | 1,612 | | | | 0.42 | % |
| Non-interest bearing deposits | | | 415,113 | | | | - | | | | - | | | | 371,324 | | | | - | | | | - | |
| Total including non-interest-bearing demand deposits | | | 1,967,199 | | | | 1,809 | | | | 0.36 | % | | | 1,879,918 | | | | 1,612 | | | | 0.34 | % |
| Other non-interest-bearing liabilities | | | 29,669 | | | | | | | | | | | | 25,930 | | | | | | | | | |
| Total liabilities | | | 1,996,868 | | | | | | | | | | | | 1,905,848 | | | | | | | | | |
| Stockholders' equity | | | 279,192 | | | | | | | | | | | | 278,944 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,276,060 | | | | | | | | | | | $ | 2,184,792 | | | | | | | | | |
| Net interest income; interest rate spread | | | | | | $ | 19,447 | | | | 3.66 | % | | | | | | $ | 18,562 | | | | 3.67 | % |
| Net interest margin (3) | | | | | | | | | | | 3.77 | % | | | | | | | | | | | 3.76 | % |
| Average interest-earning assets to average interest bearing liabilities | | | | | | | | | | | 132 | % | | | | | | | | | | | 130 | % |
| | | Twelve Months Ended December 31, | |
| | | 2015 | | | 2014 | |
| | | Average | | | | | | Yield | | | Average | | | | | | Yield | |
| | | Balance | | | Interest(1) | | | Rate | | | Balance | | | Interest(1) | | | Rate | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans receivable | | $ | 1,687,413 | | | $ | 73,544 | | | | 4.36 | % | | $ | 1,574,753 | | | $ | 68,828 | | | | 4.37 | % |
| Securities | | | 239,852 | | | | 8,476 | | | | 3.64 | % | | | 223,534 | | | | 8,227 | | | | 3.79 | % |
| Interest Bearing Deposits | | | 59,410 | | | | 169 | | | | 0.28 | % | | | 134,114 | | | | 349 | | | | 0.26 | % |
| FHLB stock | | | 13,802 | | | | 552 | | | | 4.00 | % | | | 14,677 | | | | 642 | | | | 4.37 | % |
| Total interest-earning assets | | | 2,000,477 | | | | 82,741 | | | | 4.15 | % | | | 1,947,078 | | | | 78,046 | | | | 4.01 | % |
| Non-interest-earning assets | | | 222,389 | | | | | | | | | | | | 215,390 | | | | | | | | | |
| Total assets | | $ | 2,222,866 | | | | | | | | | | | $ | 2,162,468 | | | | | | | | | |
| Deposits and Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | $ | 1,399,619 | | | $ | 5,341 | | | | 0.38 | % | | $ | 1,399,507 | | | $ | 5,283 | | | | 0.38 | % |
| FHLB advances and other | | | 38,134 | | | | 675 | | | | 1.77 | % | | | 21,995 | | | | 528 | | | | 2.40 | % |
| Subordinated debentures | | | 36,129 | | | | 613 | | | | 1.70 | % | | | 36,131 | | | | 587 | | | | 1.62 | % |
| Notes payable | | | 54,619 | | | | 152 | | | | 0.28 | % | | | 54,524 | | | | 161 | | | | 0.30 | % |
| Total interest-bearing liabilities | | | 1,528,501 | | | | 6,781 | | | | 0.44 | % | | | 1,512,157 | | | | 6,559 | | | | 0.43 | % |
| Non-interest bearing deposits | | | 388,257 | | | | - | | | | - | | | | 350,677 | | | | - | | | | - | |
| Total including non-interest-bearing demand deposits | | | 1,916,758 | | | | 6,781 | | | | 0.35 | % | | | 1,862,834 | | | | 6,559 | | | | 0.35 | % |
| Other non-interest-bearing liabilities | | | 28,463 | | | | | | | | | | | | 23,097 | | | | | | | | | |
| Total liabilities | | | 1,945,221 | | | | | | | | | | | | 1,885,931 | | | | | | | | | |
| Stockholders' equity | | | 277,645 | | | | | | | | | | | | 276,537 | | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 2,222,866 | | | | | | | | | | | $ | 2,162,468 | | | | | | | | | |
| Net interest income; interest rate spread | | | | | | $ | 75,960 | | | | 3.71 | % | | | | | | $ | 71,487 | | | | 3.57 | % |
| Net interest margin (3) | | | | | | | | | | | 3.81 | % | | | | | | | | | | | 3.68 | % |
| Average interest-earning assets to average interest bearing liabilities | | | | | | | | | | | 131 | % | | | | | | | | | | | 129 | % |
| (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%. |
| (3) | Net interest margin is net interest income divided by average interest-earning assets. |
Selected Quarterly Information
First Defiance Financial Corp.
| (dollars in thousands, except per share data) | | 4th Qtr 2015 | | | 3rd Qtr 2015 | | | 2nd Qtr 2015 | | | 1st Qtr 2015 | | | 4th Qtr 2014 | |
| Summary of Operations | | | | | | | | | | | | | | | | | | | | |
| Tax-equivalent interest income (1) | | $ | 21,256 | | | $ | 20,748 | | | $ | 20,516 | | | $ | 20,221 | | | $ | 20,174 | |
| Interest expense | | | 1,809 | | | | 1,733 | | | | 1,672 | | | | 1,567 | | | | 1,612 | |
| Tax-equivalent net interest income (1) | | | 19,447 | | | | 19,015 | | | | 18,844 | | | | 18,654 | | | | 18,562 | |
| Provision for loan losses | | | 43 | | | | (27 | ) | | | - | | | | 120 | | | | 162 | |
| Tax-equivalent NII after provision for loan losses (1) | | | 19,404 | | | | 19,042 | | | | 18,844 | | | | 18,534 | | | | 18,400 | |
| Investment securities gains, net of impairment | | | 22 | | | | - | | | | - | | | | - | | | | 1 | |
| Non-interest income (excluding securities gains/losses) | | | 7,708 | | | | 7,982 | | | | 7,809 | | | | 8,281 | | | | 7,341 | |
| Non-interest expense | | | 17,347 | | | | 16,848 | | | | 16,796 | | | | 16,897 | | | | 16,969 | |
| Income taxes | | | 2,744 | | | | 2,998 | | | | 2,815 | | | | 2,853 | | | | 1,957 | |
| Net income | | | 6,563 | | | | 6,696 | | | | 6,563 | | | | 6,601 | | | | 6,355 | |
| Tax equivalent adjustment (1) | | | 480 | | | | 482 | | | | 479 | | | | 464 | | | | 461 | |
| At Period End | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,297,676 | | | $ | 2,228,281 | | | $ | 2,196,510 | | | $ | 2,201,321 | | | $ | 2,178,952 | |
| Earning assets | | | 2,099,219 | | | | 2,030,218 | | | | 1,998,580 | | | | 1,999,601 | | | | 1,975,757 | |
| Loans | | | 1,802,217 | | | | 1,733,538 | | | | 1,705,716 | | | | 1,684,518 | | | | 1,646,786 | |
| Allowance for loan losses | | | 25,382 | | | | 25,209 | | | | 25,384 | | | | 25,302 | | | | 24,766 | |
| Deposits | | | 1,836,137 | | | | 1,793,053 | | | | 1,763,390 | | | | 1,772,693 | | | | 1,760,813 | |
| Stockholders’ equity | | | 280,197 | | | | 278,556 | | | | 276,028 | | | | 273,117 | | | | 279,505 | |
| Stockholders’ equity / assets | | | 12.19 | % | | | 12.50 | % | | | 12.57 | % | | | 12.41 | % | | | 12.83 | % |
| Goodwill | | | 61,798 | | | | 61,798 | | | | 61,525 | | | | 61,525 | | | | 61,525 | |
| Average Balances | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,276,060 | | | $ | 2,222,843 | | | $ | 2,212,603 | | | $ | 2,179,576 | | | $ | 2,184,792 | |
| Earning assets | | | 2,051,331 | | | | 2,000,284 | | | | 1,991,830 | | | | 1,958,463 | | | | 1,964,074 | |
| Loans | | | 1,732,472 | | | | 1,696,370 | | | | 1,673,750 | | | | 1,647,059 | | | | 1,615,657 | |
| Deposits and interest-bearing liabilities | | | 1,967,199 | | | | 1,918,587 | | | | 1,909,372 | | | | 1,871,871 | | | | 1,879,918 | |
| Deposits | | | 1,823,396 | | | | 1,786,814 | | | | 1,780,912 | | | | 1,760,383 | | | | 1,764,908 | |
| Stockholders’ equity | | | 279,192 | | | | 277,235 | | | | 274,239 | | | | 279,917 | | | | 278,944 | |
| Stockholders’ equity / assets | | | 12.27 | % | | | 12.47 | % | | | 12.39 | % | | | 12.84 | % | | | 12.77 | % |
| Per Common Share Data | | | | | | | | | | | | | | | | | | | | |
| Net Income: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.72 | | | $ | 0.72 | | | $ | 0.71 | | | $ | 0.71 | | | $ | 0.68 | |
| Diluted | | | 0.71 | | | | 0.72 | | | | 0.70 | | | | 0.69 | | | | 0.65 | |
| Dividends | | | 0.20 | | | | 0.20 | | | | 0.200 | | | | 0.175 | | | | 0.175 | |
| Market Value: | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 42.46 | | | $ | 39.95 | | | $ | 38.21 | | | $ | 34.64 | | | $ | 35.70 | |
| Low | | | 35.01 | | | | 35.03 | | | | 32.42 | | | | 29.05 | | | | 26.95 | |
| Close | | | 37.78 | | | | 36.56 | | | | 37.53 | | | | 32.82 | | | | 34.06 | |
| Common Book Value | | | 30.78 | | | | 30.37 | | | | 29.76 | | | | 29.53 | | | | 30.17 | |
| Shares outstanding, end of period (in thousands) | | | 9,102 | | | | 9,172 | | | | 9,275 | | | | 9,248 | | | | 9,235 | |
| Performance Ratios (annualized) | | | | | | | | | | | | | | | | | | | | |
| Tax-equivalent net interest margin (1) | | | 3.77 | % | | | 3.78 | % | | | 3.81 | % | | | 3.88 | % | | | 3.76 | % |
| Return on average assets | | | 1.14 | % | | | 1.20 | % | | | 1.19 | % | | | 1.23 | % | | | 1.15 | % |
| Return on average equity | | | 9.33 | % | | | 9.58 | % | | | 9.60 | % | | | 9.56 | % | | | 9.04 | % |
| Efficiency ratio (2) | | | 63.88 | % | | | 62.41 | % | | | 63.02 | % | | | 62.73 | % | | | 65.51 | % |
| Effective tax rate | | | 29.48 | % | | | 30.93 | % | | | 30.02 | % | | | 30.18 | % | | | 23.54 | % |
| Common dividend payout ratio (basic) | | | 27.78 | % | | | 27.78 | % | | | 28.17 | % | | | 24.65 | % | | | 25.74 | % |
| (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. |
Selected Quarterly Information
First Defiance Financial Corp.
| (dollars in thousands, except per share data) | | 4th Qtr 2015 | | | 3rd Qtr 2015 | | | 2nd Qtr 2015 | | | 1st Qtr 2015 | | | 4th Qtr 2014 | |
| Loan Portfolio Composition | | | | | | | | | | | | | | | | | | | | |
| One to four family residential real estate | | $ | 205,330 | | | $ | 205,370 | | | $ | 205,044 | | | $ | 203,558 | | | $ | 206,437 | |
| Construction | | | 163,877 | | | | 129,230 | | | | 140,114 | | | | 125,144 | | | | 112,385 | |
| Commercial real estate | | | 948,428 | | | | 922,207 | | | | 885,125 | | | | 876,476 | | | | 840,488 | |
| Commercial | | | 419,349 | | | | 402,681 | | | | 401,247 | | | | 395,378 | | | | 399,730 | |
| Consumer finance | | | 16,281 | | | | 15,774 | | | | 14,911 | | | | 14,967 | | | | 15,466 | |
| Home equity and improvement | | | 116,962 | | | | 113,781 | | | | 109,694 | | | | 110,755 | | | | 111,813 | |
| Total loans | | | 1,870,227 | | | | 1,789,043 | | | | 1,756,135 | | | | 1,726,278 | | | | 1,686,319 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Loans in process | | | 66,902 | | | | 54,484 | | | | 49,477 | | | | 40,833 | | | | 38,653 | |
| Deferred loan origination fees | | | 1,108 | | | | 1,021 | | | | 942 | | | | 927 | | | | 880 | |
| Allowance for loan loss | | | 25,382 | | | | 25,209 | | | | 25,384 | | | | 25,302 | | | | 24,766 | |
| Net Loans | | $ | 1,776,835 | | | $ | 1,708,329 | | | $ | 1,680,332 | | | $ | 1,659,216 | | | $ | 1,622,020 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan loss activity | | | | | | | | | | | | | | | | | | | | |
| Beginning allowance | | $ | 25,209 | | | $ | 25,384 | | | $ | 25,302 | | | $ | 24,766 | | | $ | 24,567 | |
| Provision for loan losses | | | 43 | | | | (27 | ) | | | 0 | | | | 120 | | | | 162 | |
| Credit loss charge-offs: | | | | | | | | | | | | | | | | | | | | |
| One to four family residential real estate | | | 8 | | | | 185 | | | | 11 | | | | 78 | | | | 61 | |
| Commercial real estate | | | 103 | | | | 64 | | | | 146 | | | | 155 | | | | 505 | |
| Commercial | | | - | | | | 43 | | | | 23 | | | | 2 | | | | 212 | |
| Consumer finance | | | 32 | | | | 5 | | | | 13 | | | | 3 | | | | 1 | |
| Home equity and improvement | | | 10 | | | | 110 | | | | 187 | | | | 43 | | | | 87 | |
| Total charge-offs | | | 153 | | | | 407 | | | | 380 | | | | 281 | | | | 866 | |
| Total recoveries | | | 282 | | | | 259 | | | | 462 | | | | 697 | | | | 903 | |
| Net charge-offs (recoveries) | | | (129 | ) | | | 148 | | | | (82 | ) | | | (416 | ) | | | (37 | ) |
| Ending allowance | | $ | 25,382 | | | $ | 25,209 | | | $ | 25,384 | | | $ | 25,302 | | | $ | 24,766 | |
| | | | | | | | | | | | | | | | | | | | | |
| Credit Quality | | | | | | | | | | | | | | | | | | | | |
| Total non-performing loans (1) | | $ | 16,261 | | | $ | 16,612 | | | $ | 16,737 | | | $ | 18,703 | | | $ | 24,130 | |
| Real estate owned (REO) | | | 1,321 | | | | 4,936 | | | | 5,371 | | | | 6,392 | | | | 6,181 | |
| Total non-performing assets (2) | | $ | 17,582 | | | $ | 21,548 | | | $ | 22,108 | | | $ | 25,095 | | | $ | 30,311 | |
| Net charge-offs (recoveries) | | | (129 | ) | | | 148 | | | | (82 | ) | | | (416 | ) | | | (37 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Restructured loans, accruing (3) | | | 11,178 | | | | 13,786 | | | | 22,234 | | | | 19,616 | | | | 24,686 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses / loans | | | 1.41 | % | | | 1.45 | % | | | 1.49 | % | | | 1.50 | % | | | 1.50 | % |
| Allowance for loan losses / non-performing assets | | | 144.36 | % | | | 116.99 | % | | | 114.82 | % | | | 100.82 | % | | | 81.71 | % |
| Allowance for loan losses / non-performing loans | | | 156.09 | % | | | 151.75 | % | | | 151.66 | % | | | 135.28 | % | | | 102.64 | % |
| Non-performing assets / loans plus REO | | | 0.97 | % | | | 1.24 | % | | | 1.29 | % | | | 1.48 | % | | | 1.83 | % |
| Non-performing assets / total assets | | | 0.77 | % | | | 0.97 | % | | | 1.01 | % | | | 1.14 | % | | | 1.39 | % |
| Net charge-offs / average loans (annualized) | | | -0.03 | % | | | 0.03 | % | | | -0.02 | % | | | -0.10 | % | | | -0.01 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Deposit Balances | | | | | | | | | | | | | | | | | | | | |
| Non-interest-bearing demand deposits | | $ | 420,691 | | | $ | 392,103 | | | $ | 378,970 | | | $ | 370,997 | | | $ | 379,552 | |
| Interest-bearing demand deposits and money market | | | 767,201 | | | | 745,233 | | | | 722,813 | | | | 737,533 | | | | 727,729 | |
| Savings deposits | | | 219,655 | | | | 216,613 | | | | 218,055 | | | | 215,590 | | | | 203,673 | |
| Retail time deposits less than $100,000 | | | 278,707 | | | | 282,331 | | | | 284,471 | | | | 286,890 | | | | 286,904 | |
| Retail time deposits greater than $100,000 | | | 149,883 | | | | 156,773 | | | | 159,081 | | | | 161,683 | | | | 162,955 | |
| Total deposits | | $ | 1,836,137 | | | $ | 1,793,053 | | | $ | 1,763,390 | | | $ | 1,772,693 | | | $ | 1,760,813 | |
| (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. |
Loan Delinquency Information
First Defiance Financial Corp.
| (dollars in thousands) | | Total Balance | | | Current | | | 30 to 89 days past due | | | Non Accrual Loans | |
| | | | | | | | | | | | | |
| December 31, 2015 | | | | | | | | | | | | | | | | |
| One to four family residential real estate | | $ | 205,330 | | | $ | 201,806 | | | $ | 914 | | | $ | 2,610 | |
| Construction | | | 163,877 | | | | 163,877 | | | | - | | | | - | |
| Commercial real estate | | | 948,428 | | | | 937,844 | | | | 736 | | | | 9,848 | |
| Commercial | | | 419,349 | | | | 416,114 | | | | 157 | | | | 3,078 | |
| Consumer finance | | | 16,281 | | | | 16,215 | | | | 30 | | | | 36 | |
| Home equity and improvement | | | 116,962 | | | | 115,465 | | | | 808 | | | | 689 | |
| Total loans | | $ | 1,870,227 | | | $ | 1,851,321 | | | $ | 2,645 | | | $ | 16,261 | |
| | | | | | | | | | | | | | | | | |
| September 30, 2015 | | | | | | | | | | | | | | | | |
| One to four family residential real estate | | $ | 205,370 | | | $ | 201,797 | | | $ | 828 | | | $ | 2,745 | |
| Construction | | | 129,230 | | | | 129,095 | | | | 135 | | | | - | |
| Commercial real estate | | | 922,207 | | | | 911,878 | | | | 239 | | | | 10,090 | |
| Commercial | | | 402,681 | | | | 399,547 | | | | 17 | | | | 3,117 | |
| Consumer finance | | | 15,774 | | | | 15,676 | | | | 69 | | | | 29 | |
| Home equity and improvement | | | 113,781 | | | | 112,620 | | | | 530 | | | | 631 | |
| Total loans | | $ | 1,789,043 | | | $ | 1,770,613 | | | $ | 1,818 | | | $ | 16,612 | |
| | | | | | | | | | | | | | | | | |
| December 31, 2014 | | | | | | | | | | | | | | | | |
| One to four family residential real estate | | $ | 206,437 | | | $ | 201,931 | | | $ | 1,174 | | | $ | 3,332 | |
| Construction | | | 112,385 | | | | 112,385 | | | | - | | | | - | |
| Commercial real estate | | | 840,488 | | | | 824,770 | | | | 544 | | | | 15,174 | |
| Commercial | | | 399,730 | | | | 394,671 | | | | 66 | | | | 4,993 | |
| Consumer finance | | | 15,466 | | | | 15,330 | | | | 124 | | | | 12 | |
| Home equity and improvement | | | 111,813 | | | | 109,993 | | | | 1,201 | | | | 619 | |
| Total loans | | $ | 1,686,319 | | | $ | 1,659,080 | | | $ | 3,109 | | | $ | 24,130 | |
