Premier Financial (PFC) 8-K Results of Operations and Financial Condition

Exhibit 99.2

Consolidated Balance Sheets

First Defiance Financial Corp.

	(Unaudited) December 31, 2009
(in thousands)				December 31, 2008
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions	$	29,613		$	40,980
Interest-bearing deposits		91,503			5,172
		121,116			46,152
Securities
Available-for sale, carried at fair value		137,458			117,575
Held-to-maturity, carried at amortized cost		1,920			886
		139,378			118,461
Loans		1,617,122			1,617,235
Allowance for loan losses		(36,547	)		(24,592	)
Loans, net		1,580,575			1,592,643
Loans held for sale		10,346			10,960
Mortgage servicing rights		8,958			6,611
Accrued interest receivable		6,851			7,293
Federal Home Loan Bank stock		21,376			21,376
Bank Owned Life Insurance		30,804			28,747
Office properties and equipment		43,597			47,756
Real estate and other assets held for sale		13,527			7,000
Goodwill		56,585			56,585
Core deposit and other intangibles		6,888			8,344
Deferred taxes		3,289			336
Other assets		14,233			5,136
Total Assets	$	2,057,523		$	1,957,400
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	189,132		$	176,063
Interest-bearing deposits		1,391,094			1,293,849
Total deposits		1,580,226			1,469,912
Advances from Federal Home Loan Bank		146,927			156,067
Notes payable and other interest-bearing liabilities		48,398			49,454
Subordinated debentures		36,083			36,083
Advance payments by borrowers for tax and insurance		665			652
Other liabilities		11,138			16,073
Total liabilities		1,823,437			1,728,241
Stockholders’ Equity
Preferred stock, net of discount		36,293			36,133
Common stock, net		127			127
Common stock warrant		878			878
Additional paid-in-capital		140,675			140,449
Accumulated other comprehensive income (loss)		(158	)		(1,904	)
Retained earnings		128,902			126,114
Treasury stock, at cost		(72,631	)		(72,638	)
Total stockholders’ equity		234,086			229,159
Total Liabilities and Stockholders’ Equity	$	2,057,523		$	1,957,400

1

Consolidated Statements of Income (Unaudited)

First Defiance Financial Corp.

(in thousands, except per share amounts)	Three Months Ended December 31,						Twelve Months Ended December 31,
	2009			2008			2009			2008
Interest Income:
Loans	$	23,473		$	24,301		$	93,702		$	96,522
Investment securities		1,385			1,375			5,773			5,756
Interest-bearing deposits		60			4			149			123
FHLB stock dividends		229			265			955			1,062
Total interest income		25,147			25,945			100,579			103,463
Interest Expense:
Deposits		5,896			7,503			26,102			31,354
FHLB advances and other		1,249			1,572			5,114			6,375
Subordinated debentures		332			462			1,471			1,907
Notes Payable		137			415			570			1,632
Total interest expense		7,614			9,952			33,257			41,268
Net interest income		17,533			15,993			67,322			62,195
Provision for loan losses		8,470			3,824			23,232			12,585
Net interest income after provision for loan losses		9,063			12,169			44,090			49,610
Non-interest Income:
Service fees and other charges		3,514			3,512			13,503			13,268
Mortgage banking income		2,070			(636	)		9,747			2,990
Gain on sale of non-mortgage loans		13			3			264			180
Gain on sale or call of securities		5			3			284			22
Impairment on securities		(1,399	)		(599	)		(3,940	)		(3,182	)
Insurance and investment sales commissions		1,076			1,115			5,021			5,496
Trust income		109			104			415			448
Income from Bank Owned Life Insurance		219			(428	)		557			323
Other non-interest income		(31	)		(310	)		444			(476	)
Total Non-interest Income		5,576			2,764			26,295			19,069
Non-interest Expense:
Compensation and benefits		6,397			6,408			27,898			28,829
Occupancy		1,951			1,922			7,852			7,484
FDIC insurance premium		637			290			3,350			1,082
State franchise tax		326			411			1,994			1,951
Acquisition related charges		—			85			—			1,117
Data processing		1,211			1,274			4,541			4,658
Amortization of intangibles		355			424			1,456			1,459
Other non-interest expense		3,732			2,757			13,433			11,214
Total Non-interest Expense		14,609			13,571			60,524			57,794
Income before income taxes		30			1,362			9,861			10,885
Income taxes		(525	)		482			2,667			3,528
Net Income	$	555		$	880		$	7,194		$	7,357
Dividends Declared on Preferred Shares		(447	)		(134	)		(1,850	)		(134	)
Accretion on Preferred Shares		(41	)		(11	)		(160	)		(11	)
Net Income Applicable to Common Shares	$	67		$	735		$	5,184		$	7,212
Earnings per common share:
Basic	$	0.01		$	0.09		$	0.64		$	0.91
Diluted	$	0.01		$	0.09		$	0.63		$	0.91
Core operating earnings per common share*:
Basic	$	0.01		$	0.10		$	0.64		$	1.01
Diluted	$	0.01		$	0.10		$	0.63		$	1.00
Average Shares Outstanding:
Basic		8,117			8,117			8,117			7,889
Diluted		8,265			8,117			8,196			7,919

* - See Non-GAAP Disclosure Reconciliations

2

Financial Summary and Comparison

First Defiance Financial Corp.

(dollars in thousands, except per share data)	(Unaudited) Three Months Ended December 31,								(Unaudited) Twelve Months Ended December 31,
	2009			2008			% change		2009			2008			% change
Summary of Operations
Tax-equivalent interest income (1)		25,434			26,188		(2.9	)		101,727			104,360		(2.5	)
Interest expense		7,614			9,952		(23.5	)		33,257			41,268		(19.4	)
Tax-equivalent net interest income (1)		17,820			16,236		9.8			68,470			63,092		8.5
Provision for loan losses		8,470			3,824		121.5			23,232			12,585		84.6
Tax-equivalent NII after provision for loan loss (1)		9,350			12,412		(24.7	)		45,238			50,507		(10.4	)
Gain on sale or call of securities		5			3		66.7			284			22		1,190.9
Impairment losses on securities		(1,399	)		(599	)	133.6			(3,940	)		(3,160	)	24.7
Non-interest income-excluding securities losses		6,970			3,360		107.4			29,951			22,207		34.9
Non-interest expense		14,609			13,571		7.6			60,524			57,794		4.7
Non-interest expense-excluding non-core charges		14,609			13,486		8.3			60,524			56,677		6.8
Acquisition related charges		—			85		NM			—			1,117		NM
Income taxes		(525	)		482		(208.9	)		2,667			3,528		(24.4	)
Net Income		555			880		(36.9	)		7,194			7,357		(2.2	)
Dividends Declared on Preferred Shares		(447	)		(134	)	233.6			(1,850	)		(134	)	1,280.6
Accretion on Preferred Shares		(41	)		(11	)	272.7			(160	)		(11	)	1,354.5
Net Income Applicable to Common Shares		67			735		(90.9	)		5,184			7,212		(28.1	)
Core operating earnings (2)		555			935		(40.6	)		7,194			8,083		(11.0	)
Tax equivalent adjustment (1)		287			243		18.1			1,148			897		28.0
At Period End
Assets		2,057,523			1,957,400		5.1
Earning assets		1,879,725			1,773,204		6.0
Loans		1,617,122			1,617,235		(0.0	)
Allowance for loan losses		36,547			24,592		48.6
Deposits		1,580,226			1,469,912		7.5
Stockholders’ equity		234,086			229,159		2.2
Average Balances
Assets		2,058,219			1,938,461		6.2			2,025,233			1,852,345		9.3
Earning assets		1,852,401			1,730,284		7.1			1,822,273			1,655,725		10.1
Deposits and interest-bearing liabilities		1,805,090			1,718,315		5.1			1,774,772			1,638,426		8.3
Loans		1,600,265			1,591,144		0.6			1,600,725			1,511,877		5.9
Deposits		1,572,399			1,466,366		7.2			1,547,339			1,390,815		11.3
Stockholders’ equity		235,152			201,499		16.7			232,719			190,872		21.9
Stockholders’ equity / assets		11.43	%		10.39	%	10.0			11.49	%		10.30	%	11.6
Per Common Share Data
Net Income
Basic	$	0.01		$	0.09		(88.9	)	$	0.64		$	0.91		(29.7	)
Diluted		0.01			0.09		(88.9	)		0.63			0.91		(30.8	)
Core operating earnings (2)
Basic	$	0.01		$	0.10		(91.5	)	$	0.64		$	1.01		(36.5	)
Diluted		0.01			0.10		(91.7	)		0.63			1.00		(36.9	)
Dividends		—			0.17		NM			0.295			0.95		(68.9	)
Market Value:
High	$	18.93		$	14.50		30.6		$	18.93		$	22.51		(15.9	)
Low		10.06			6.00		67.7			3.76			6.00		(37.3	)
Close		11.29			7.73		46.1			11.29			7.73		46.1
Book Value		24.26			23.67		2.5			24.26			23.67		2.5
Tangible Book Value		16.44			15.67		4.9			16.44			15.67		4.9
Shares outstanding, end of period (000)		8,118			8,117		0.0			8,118			8,117		0.0
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.82	%		3.72	%	2.7			3.76	%		3.80	%	(1.3	)
Return on average assets -GAAP		0.11	%		0.18	%	(40.8	)		0.36	%		0.40	%	(10.6	)
Return on average assets -Core Operating		0.11	%		0.19	%	(44.2	)		0.36	%		0.44	%	(18.6	)
Return on average equity- GAAP		0.94	%		1.74	%	(46.1	)		3.09	%		3.85	%	(19.8	)
Return on average equity- Core Operating		0.94	%		1.85	%	(49.3	)		3.09	%		4.23	%	(27.0	)
Efficiency ratio (3) -GAAP		58.93	%		69.25	%	(14.9	)		61.50	%		67.75	%	(9.2	)
Efficiency ratio (3) -Core Operating		58.93	%		68.82	%	(14.4	)		61.50	%		66.45	%	(7.4	)
Effective tax rate		-1750.00	%		35.39	%	(5,045.0	)		27.05	%		32.41	%	(16.6	)
Dividend payout ratio (basic)		0.00	%		188.89	%	NM			46.09	%		104.40	%	(55.8	)

(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) Core operating earnings = Net income plus after tax effect of acquisition related and other one-time charges. See Non-GAAP Disclosure Reconciliation.

(3) 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

3

Non-GAAP Disclosure Reconciliations

First Defiance Financial Corp.

Management believes that the presentation of the non-GAAP financial measures in this release assists investors when comparing results period-to-period in a more meaningful and consistent manner and provides a better measure of results for First Defiance’s ongoing operations. Core operating earnings are net income adjusted to exclude discontinued operations, merger, integration and restructuring expenses and the results of certain significant transactions not representative of ongoing operations.

Core Operating Earnings	Three months ended December 31,					Twelve Months Ended December 31,
(dollars in thousands, except per share data)	2009		2008			2009		2008
Net Income	$	555	$	880		$	7,194	$	7,357
Acquisition related charges		—		85			—		1,117
Tax effect		—		(30	)		—		(391	)
After-tax non-operating items		—		55			—		726
Core operating earnings	$	555	$	935		$	7,194	$	8,083

Acquisition related charges in 2008 reflect charges associated with the acquisition of Pavilion Bancorp.

Core operating earnings is used as the numerator to calculate core operating return on average assets, core operating return on average equity and core operating earnings per share. Additionally, non-operating items are deducted from non-interest expense in the numerator and non-interest income in the denominator of the core operating efficiency ratio disclosed in the tables. Comparable information on a GAAP basis is also provided in the tables.

Income from Mortgage Banking

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

(dollars in thousands)	Three months ended December 31,						Twelve Months Ended December 31,
	2009			2008			2009			2008
Gain from sale of mortgage loans	$	1,468		$	1,587		$	8,744		$	4,395
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		751			698		$	2,860			2,537
Amortization of mortgage servicing rights		(546	)		(258	)	$	(3,171	)		(1,266	)
Mortgage servicing rights valuation adjustments		397			(2,663	)	$	1,314			(2,676	)
		602			(2,223	)		1,003			(1,405	)
Total revenue from sale and servicing of mortgage loans	$	2,070		$	(636	)	$	9,747		$	2,990

4

Yield Analysis

First Defiance Financial Corp.

	Three Months Ended December 31,
	2009							2008
	Average Balance		Interest(1)		Yield Rate(2)			Average Balance		Interest(1)		Yield Rate(2)
Interest-earning assets:
Loans receivable	$	1,600,265	$	23,517	5.83	%		$	1,591,144	$	24,329	6.08	%
Securities		134,575		1,628	4.82	%			115,165		1,590	5.20	%
Interest Bearing Deposits		96,185		60	0.25	%			2,599		4	0.61	%
FHLB stock		21,376		229	4.25	%			21,376		265	4.93	%
Total interest-earning assets		1,852,401		25,434	5.45	%			1,730,284		26,188	6.00	%
Non-interest-earning assets		205,818							208,177
							��
Total assets	$	2,058,219						$	1,938,461
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	1,383,370	$	5,896	1.69	%		$	1,293,560	$	7,503	2.31	%
FHLB advances and other		146,930		1,249	3.37	%			155,954		1,572	4.01	%
Other Borrowings		49,649		137	1.09	%			59,760		415	2.76	%
Subordinated debentures		36,112		332	3.65	%			36,235		462	5.07	%
Total interest-bearing liabilities		1,616,061		7,614	1.87	%			1,545,509		9,952	2.56	%
Non-interest bearing deposits		189,029		—	—				172,806		—	—
Total including non-interest-bearing demand deposits		1,805,090		7,614	1.67	%			1,718,315		9,952	2.30	%
Other non-interest-bearing liabilities		17,977							18,647
Total liabilities		1,823,067							1,736,962
Stockholders’ equity		235,152							201,499
Total liabilities and stockholders’ equity	$	2,058,219						$	1,938,461
Net interest income; interest rate spread			$	17,820	3.58	%				$	16,236	3.44	%
Net interest margin (3)					3.82	%						3.72	%
Average interest-earning assets to average interest bearing liabilities					115	%						112	%

	Twelve Months Ended December 31,
	2009						2008
	Average Balance		Interest(1)		Yield Rate(2)		Average Balance		Interest(1)		Yield Rate(2)
Interest-earning assets:
Loans receivable	$	1,600,725	$	93,850	5.86	%	$	1,511,877	$	96,627	6.39	%
Securities		128,806		6,773	5.23	%		117,972		6,548	5.43	%
Interest Bearing Deposits		71,366		149	0.21	%		5,383		123	2.28	%
FHLB stock		21,376		955	4.47	%		20,493		1,062	5.18	%
Total interest-earning assets		1,822,273		101,727	5.58	%		1,655,725		104,360	6.30	%
Non-interest-earning assets		202,960						196,620
Total assets	$	2,025,233					$	1,852,345
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	1,370,826	$	26,102	1.90	%	$	1,231,363	$	31,354	2.55	%
FHLB advances and other		146,978		5,114	3.48	%		160,407		6,375	3.97	%
Other Borrowings		44,247		570	1.29	%		50,962		1,632	3.20	%
Subordinated debentures		36,208		1,471	4.06	%		36,242		1,907	5.26	%
Total interest-bearing liabilities		1,598,259		33,257	2.08	%		1,478,974		41,268	2.79	%
Non-interest bearing deposits		176,513		—	—			159,452		—	—
Total including non-interest-bearing demand deposits		1,774,772		33,257	1.87	%		1,638,426		41,268	2.52	%
Other non-interest-bearing liabilities		17,742						23,047
Total liabilities		1,792,514						1,661,473
Stockholders’ equity		232,719						190,872
Total liabilities and stockholders’ equity	$	2,025,233					$	1,852,345
Net interest income; interest rate spread			$	68,470	3.50	%			$	63,092	3.51	%
Net interest margin (3)					3.76	%					3.80	%
Average interest-earning assets to average interest bearing liabilities					114	%					112	%

(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.

5

Selected Quarterly Information

First Defiance Financial Corp.

(dollars in thousands, except per share data)	4th Qtr 2009			3rd Qtr 2009			2nd Qtr 2009			1st Qtr 2009			4th Qtr 2008
Summary of Operations
Tax-equivalent interest income (1)	$	25,434		$	25,796		$	25,117		$	25,379		$	26,188
Interest expense		7,614			7,914			8,643			9,085			9,952
Tax-equivalent net interest income (1)		17,820			17,882			16,474			16,294			16,236
Provision for loan losses		8,470			8,051			3,965			2,746			3,824
Tax-equivalent NII after provision for loan losses (1)		9,350			9,831			12,509			13,548			12,412
Investment securities gains (losses), including impairment		(1,394	)		(840	)		(750	)		(672	)		(596	)
Non-interest income (excluding securities gains/losses)		6,970			6,396			9,109			7,476			3,360
Non-interest expense		14,609			14,786			16,133			14,996			13,571
Acquisition related charges		—			—			—			—			85
Income taxes		(525	)		(37	)		1,539			1,691			482
Net income		555			329			2,901			3,408			880
Dividends Declared on Preferred Shares		(447	)		(473	)		(468	)		(463	)		(134	)
Accretion on Preferred Shares		(41	)		(40	)		(40	)		(38	)		(11	)
Net Income Applicable to Common Shares		67			(184	)		2,393			2,907			735
Core operating earnings (2)		555			329			2,901			3,408			935
Tax equivalent adjustment (1)		287			309			295			257			243
At Period End
Total assets	$	2,057,523		$	2,018,598		$	2,023,563		$	2,010,662		$	1,957,400
Earning assets		1,879,725			1,845,134			1,846,689			1,838,397			1,773,204
Loans		1,617,122			1,623,627			1,610,460			1,585,897			1,617,235
Allowance for loan losses		36,547			31,248			25,840			25,694			24,592
Deposits		1,580,226			1,543,085			1,553,144			1,540,235			1,469,912
Stockholders’ equity		234,086			234,529			232,683			230,608			229,159
Stockholders’ equity / assets		11.38	%		11.62	%		11.50	%		11.47	%		11.71	%
Goodwill		56,585			56,585			56,585			56,585			56,585
Average Balances
Total assets	$	2,058,219		$	2,029,970		$	2,027,760		$	1,984,985		$	1,938,461
Earning assets		1,852,401			1,826,400			1,828,272			1,782,019			1,730,284
Deposits and interest-bearing liabilities		1,805,090			1,778,223			1,778,848			1,736,933			1,718,315
Loans		1,600,265			1,613,529			1,592,513			1,596,592			1,591,144
Deposits		1,572,399			1,550,369			1,552,533			1,514,059			1,466,366
Stockholders’ equity		235,152			234,241			231,397			230,099			201,499
Stockholders’ equity / assets		11.43	%		11.54	%		11.41	%		11.59	%		10.39	%
Per Common Share Data
Net Income:
Basic	$	0.01		$	(0.02	)	$	0.29		$	0.36		$	0.09
Diluted		0.01			(0.02	)		0.29			0.36			0.09
Core operating earnings (2)
Basic		0.01			(0.02	)		0.29			0.36			0.10
Diluted		0.01			(0.02	)		0.29			0.36			0.10
Dividends		0.00			0.04			0.085			0.17			0.17
Market Value:
High	$	18.93		$	18.33		$	14.25		$	8.95		$	14.50
Low		10.06			12.00			6.10			3.76			6.00
Close		11.29			14.91			13.00			6.08			7.73
Book Value		24.26			24.32			24.10			23.85			23.67
Shares outstanding, end of period (in thousands)		8,118			8,118			8,118			8,117			8,117
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.82	%		3.88	%		3.61	%		3.71	%		3.72	%
Return on average assets -GAAP		0.11	%		0.06	%		0.57	%		0.70	%		0.18	%
Return on average assets -Core Operating		0.11	%		0.06	%		0.57	%		0.70	%		0.19	%
Return on average equity- GAAP		0.94	%		0.56	%		5.03	%		6.02	%		1.74	%
Return on average equity- Core Operating		0.94	%		0.56	%		5.03	%		6.02	%		1.85	%
Efficiency ratio (3) -GAAP		58.93	%		60.90	%		63.06	%		63.09	%		69.25	%
Efficiency ratio (3) -Core Operating		58.93	%		60.90	%		63.06	%		63.09	%		68.82	%
Effective tax rate		-1750.00	%		-12.67	%		34.66	%		33.16	%		35.39	%
Common dividend payout ratio (basic)		0.00	%		-200.00	%		29.31	%		47.22	%		188.89	%

(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) See Non-GAAP Disclosure Reconciliation

(3) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

6

Selected Quarterly Information

First Defiance Financial Corp.

(dollars in thousands, except per share data)	4th Qtr 2009			3rd Qtr 2009			2nd Qtr 2009			1st Qtr 2009			4th Qtr 2008
Loan Portfolio Composition
One to four family residential real estate	$	227,592		$	233,958		$	238,000		$	241,119		$	251,807
Construction		48,626			53,605			44,670			50,534			72,938
Commercial real estate		806,889			802,434			768,636			764,841			755,740
Commercial		379,408			371,881			382,434			350,070			356,574
Consumer finance		34,105			36,416			38,074			38,676			41,012
Home equity and improvement		147,977			150,379			151,213			156,668			161,106
Total loans		1,644,597			1,648,673			1,623,027			1,601,908			1,639,177
Less:
Loans in process		26,494			23,957			11,602			14,954			20,892
Deferred loan origination fees		981			1,089			965			1,057			1,050
Allowance for loan loss		36,547			31,248			25,840			25,694			24,592
Net Loans	$	1,580,575		$	1,592,379		$	1,584,620		$	1,560,203		$	1,592,643
Allowance for loan loss activity
Beginning allowance		31,248			25,840			25,694			24,592		$	23,445
Provision for loan losses		8,470			8,051			3,965			2,746			3,824
Credit loss charge-offs:
One to four family residential real estate		884			744			505			148			369
Commercial real estate		1,912			1,152			2,066			669			1,480
Commercial		354			658			950			702			593
Consumer finance		75			39			83			123			224
Home equity and improvement		134			196			301			130			57
Total charge-offs		3,359			2,789			3,905			1,772			2,723
Total recoveries		188			146			86			128			46
Net charge-offs (recoveries)		3,171			2,643			3,819			1,644			2,677
Ending allowance	$	36,547		$	31,248		$	25,840		$	25,694		$	24,592
Credit Quality
Non-accrual loans	$	41,191		$	35,490		$	35,528		$	29,473		$	28,017
Restructured loans, accruing		6,715			4,574			4,845			7,199			6,250
Total non-performing loans (1)		47,906			40,064			40,373			36,672			34,267
Real estate owned (REO)		13,527			9,352			8,567			7,839			7,000
Total non-performing assets (2)	$	61,433		$	49,416		$	48,940		$	44,511		$	41,267
Net charge-offs		3,171			2,643			3,819			1,644			2,677
Allowance for loan losses / loans		2.26	%		1.92	%		1.60	%		1.62	%		1.52	%
Allowance for loan losses / non-performing assets		59.49	%		63.23	%		52.80	%		57.73	%		59.59	%
Allowance for loan losses / non-performing loans		76.29	%		78.00	%		64.00	%		70.06	%		71.77	%
Non-performing assets / loans plus REO		3.77	%		3.03	%		3.02	%		2.79	%		2.54	%
Non-performing assets / total assets		2.99	%		2.45	%		2.42	%		2.21	%		2.11	%
Net charge-offs / average loans (annualized)		0.79	%		0.66	%		0.96	%		0.41	%		0.67	%
Deposit Balances
Non-interest-bearing demand deposits	$	189,132		$	174,145		$	180,035		$	163,855		$	176,063
Interest-bearing demand deposits and money market		499,575			477,566			456,177			413,104			374,488
Savings deposits		130,156			132,333			135,821			132,590			132,145
Retail time deposits less than $100,000		550,172			544,957			568,595			608,811			578,245
Retail time deposits greater than $100,000		163,838			166,787			165,401			171,588			170,485
National/Brokered time deposits		47,353			47,297			47,115			50,287			38,486
Total deposits	$	1,580,226		$	1,543,085		$	1,553,144		$	1,540,235		$	1,469,912

(1) Non-performing loans consist of non-accrual loans that are contractually past due 90 days or more and loans that are deemed impaired under the criteria of FASB Statement No. 114.

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

7

Loan Delinquency Information

First Defiance Financial Corp.

(dollars in thousands)	Total Balance		Current		30 to 89 days past due		Non Accrual Loans		Troubled Debt Restructuring
December 31, 2009
One to four family residential real estate	$	227,592	$	215,211	$	4,331	$	5,349	$	2,701
Construction		48,626		47,951		—		675		—
Commercial real estate		806,889		775,603		3,280		24,042		3,964
Commercial		379,408		367,592		1,151		10,615		50
Consumer finance		34,105		33,669		377		59		—
Home equity and improvement		147,977		145,481		2,045		451		—
Total loans	$	1,644,597	$	1,585,507	$	11,184	$	41,191	$	6,715
September 30, 2009
One to four family residential real estate	$	233,958	$	221,077	$	4,637	$	5,839	$	2,405
Construction		53,605		53,340		71		194		—
Commercial real estate		802,434		765,469		11,570		23,279		2,116
Commercial		371,881		363,739		2,525		5,564		53
Consumer finance		36,416		35,913		454		49		—
Home equity and improvement		150,379		147,031		2,783		565		—
Total loans	$	1,648,673	$	1,586,569	$	22,040	$	35,490	$	4,574
December 31, 2008
One to four family residential real estate	$	251,807	$	241,446	$	4,676	$	4,584	$	1,101
Construction		72,938		72,814		52		72		—
Commercial real estate		755,740		728,150		5,406		19,979		2,205
Commercial		356,574		349,078		1,671		2,881		2,944
Consumer finance		41,012		40,428		515		69		—
Home equity and improvement		161,106		155,650		5,024		432		—
Total loans	$	1,639,177	$	1,587,566	$	17,344	$	28,017	$	6,250

8