Exhibit 99
For Immediate Release
FIRST DEFIANCE FINANCIAL CORP. ANNOUNCES 2010
THIRD QUARTER EARNINGS
| • | Net Income of $2.3 million for 2010 third quarter, up from $329,000 in the third quarter of 2009 |
| • | Provision for Loan Losses of $5.2 million, down from $8.1 million in the third quarter of 2009 |
| • | Charge of $527,000 on previously recorded Mortgage Servicing Rights Assets |
| • | Net Interest Margin of 3.94%, up from 2009 second quarter of 3.88% |
| • | Other-Than-Temporary Impairment of $190,000 recognized on certain investment securities |
DEFIANCE, OHIO (October 25, 2010) – First Defiance Financial Corp. (NASDAQ: FDEF) today announced that net income for its third quarter ended September 30, 2010 totaled $2.3 million or $0.22 per diluted common share, compared to $329,000 or ($0.02) per diluted common share for the quarter ended September 30, 2009.
For the nine month period ended September 30, 2010, First Defiance earned $5.8 million or $0.53 per diluted common share compared to $6.6 million or $0.63 per diluted common share for the nine month period ended September 30, 2009.
“The sluggish economic environment impacted our results for the third quarter,” said William J. Small, Chairman, President, and Chief Executive Officer of First Defiance Financial Corp. “Most core operating metrics were again very solid, however, additional provision expense and additional expenses related to collections and Other Real Estate Owned had a negative effect on earnings. We are pleased with the strong mortgage banking results this quarter, bolstered by the low rate environment. And despite the challenges, we saw improvement in our quarterly income this year compared to the third quarter of 2009.”
Credit Quality
The third quarter 2010 results include expense for provision for loan losses of $5.2 million, compared with $8.1 million in the same period in 2009 and $5.4 million in the second quarter of 2010. “In light of the continued uncertain economic environment, including high unemployment, slower economic growth activity and the ongoing instability of the commercial
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real estate market, we believe it is responsible to maintain higher general reserves at this time,” said Small. The allowance for loan loss as a percentage of average total loans increased to 2.66% at September 30, 2010 from 2.47% at June 30, 2010 and 1.92% at September 30, 2009.
Non-performing loans totaled $46.2 million at September 30, 2010, up from $40.1 million at September 30, 2009. The September 30, 2010 balance included $37.4 million of loans that are on non-accrual or 90 days past due and another $8.8 million of loans considered non-performing because of changes in terms granted to borrowers, although the loans are still accruing interest. In addition, First Defiance had $11.1 million of Other Real Estate Owned at September 30, 2010. For the third quarter of 2010, First Defiance recorded net charge-offs of $2.7 million, which represented 0.70% of average loans outstanding (annualized) for the quarter, compared with 1.44% in the second quarter of 2010 and 0.66% in the third quarter of 2009.
“Asset quality continues to be a drag on earnings in this economy,” Small said. “We devote significant resources to the monitoring and early recognition of any weaknesses in the portfolio. While we are not seeing new specific loan problems arise in the portfolio, more credits are moving through the credit process toward final disposition. We also saw a reduction in charge-offs in the linked quarters. However, the overall continuation of the reserve build was appropriate based on our view of the near term direction of the economy.”
Investment Portfolio
The Other-Than-Temporary Impairment (OTTI) charge recognized by First Defiance in the third quarter of 2010 totaled $190,000, compared with $994,000 in the third quarter of 2009. The 2010 third quarter OTTI charge related to two Trust Preferred Collateralized Debt Obligations (CDOs) with a remaining book value of $860,000, and FNMA and FHMC stock with a remaining book balance of $35,000.
First Defiance also has other Trust Preferred CDO investments with a total book value of $2.8 million and fair value of $1.1 million at September 30, 2010. Two of these investments with a book value of $2.0 million and a fair value of $934,000 continue to pay principal and interest in accordance with the contractual terms of the securities. The decline in value of those investments is primarily due to the overall lack of liquidity in the CDO market. Management has not deemed the impairment in value of these CDO investments to be Other-Than-Temporary and, therefore, has not recognized the reduction in value of those investments in earnings. The third investment with a book value of $899,000 and a fair value of $151,000 has been written down with OTTI charges in prior periods, but the third quarter of 2010 analysis did not result in additional OTTI for this investment.
Net Interest Margin
Net interest income increased to $17.8 million in the third quarter of 2010 compared to $17.6 million in the 2009 third quarter, and was up from $17.6 million for the second quarter of 2010. Net interest margin was 3.94% for the 2010 third quarter compared to 3.88% in the third quarter of 2009. Yield on interest earning assets declined by 29 basis points, to 5.31% in the third quarter of 2010 from 5.60% in the 2009 third quarter while the cost of interest-bearing liabilities and non-interest-bearing demand deposits decreased by 37 basis points, to 1.40% from 1.77%.
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“Our continued focus on managing the margin and adjusting our pricing strategy in this challenging rate environment resulted in the improvement in the net interest margin this quarter,” said Small “We see an extended low rate environment as one of the challenges to the net interest margin for the remainder of this year and into 2011.”
Non-Interest Income
Non-interest income for the 2010 third quarter increased to $7.5 million from $5.6 million in the third quarter of 2009. Loss on investment securities in the third quarter of 2010 was $190,000 related entirely to OTTI charges, compared with a third quarter 2009 net loss of $840,000, which was comprised of OTTI charges of $994,000 offset by security gains of $154,000.
Mortgage banking income increased to $2.3 million in the third quarter of 2010, from $980,000 for the same period in 2009. Gains from the sale of mortgage loans increased in the third quarter of 2010 to $2.9 million from $1.5 million in the third quarter of 2009. Mortgage loan servicing revenue increased slightly for the 2010 third quarter compared to 2009. The increases in gains and servicing revenue were partially offset by expense increases of $284,000 for the amortization of mortgage servicing rights.
First Defiance recorded a negative valuation allowance adjustment of $527,000 on mortgage servicing rights (MSR) in the third quarter of 2010 compared to a negative valuation adjustment of $772,000 in the third quarter of 2009. The MSR valuation adjustment is a reflection of the change in the fair value of certain sectors of First Defiance’s portfolio of MSRs.
Insurance and investment sale income was $1.4 million in the third quarter of 2010, up from $1.1 million in the third quarter of 2009.
“Mortgage banking activity in the third quarter picked up dramatically from the second quarter,” commented Small. “In the third quarter of 2010 we generated $130 million in loans compared to $67 million in the second quarter of 2010 and $90.5 million in loans in the third quarter of 2009. Due to the lower rate environment, we also recorded additional impairment on our previously recorded servicing rights.”
Non-Interest Expenses
Total non-interest expense was $17.1 million for the quarter ended September 30, 2010, which included $16,000 of acquisition-related charges attributable to the purchase of an employee benefits business in northwestern Ohio by First Insurance and Investments, Inc., an increase from the $14.8 million of non-interest expense for the quarter ended September 30, 2009.
Compensation and benefits increased by $563,000 compared to the 2009 third quarter. The increase is primarily due to adjustments in performance based variable compensation. Occupancy expense in the third quarter of 2010 was $1.7 million, down from $1.9 million in the third quarter of 2009. FDIC insurance expense increased to $907,000 in the third quarter of 2010 from $649,000 in the same period of 2009 as a result of the FDIC rate increases and higher insured deposits. Other non-interest expense increased to $5.2 million in the third quarter of 2010 from $3.7 million in the third quarter of 2009. Credit, collection and OREO-related costs
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increased $1.5 million over the third quarter of 2009. These increases were partially offset by decreases in marketing and postage.
Year-To-Date Results
For the nine month period ended September 30, 2010, net interest income totaled $52.4 million, compared with $49.8 million in the first nine months of 2009. Average interest-earning assets increased to $1.83 billion for the nine months of 2010 compared to $1.81 billion for the first nine months of 2009. Net interest margin for the first nine months of 2010 was 3.89%, up 16 basis points from the 3.73% margin reported in the nine month period ended September 30, 2009.
The provision for loan losses for the first nine months of 2010 was $17.5 million, compared to $14.8 million recorded during the first nine months of 2009.
Non-interest income for the first nine months of 2010 was $20.0 million compared to $20.7 million during the same period of 2009. Most of the non-interest income decline was in mortgage banking, which declined to $5.1 million for the first nine months of 2010 compared to $7.7 million in the first nine months of 2009. In addition, service fees and other charges were $9.9 million for the first nine months of 2010 compared to $10 million during the first nine months of 2009. Non-interest income for the first nine month period of 2010 was reduced by $331,000 of OTTI charges recognized for impaired investment securities compared with $2.5 million during the first nine months of 2009.
Non-interest expense increased to $47.0 million for the first nine months of 2010 from $45.9 million in 2009. Excluding one-time acquisition-related charges of $53,000, non-interest expense was $46.9 million for the first nine months of 2010. For the nine months ending September 30, 2010 compared to the same period in 2009, occupancy costs declined $600,000, FDIC insurance expense increased by $168,000, and credit, collection and OREO-related costs have increased $2.3 million. Year to date 2010 non-interest expense included the $53,000 of charges associated with the acquisition of a group medical benefits book of business and $457,000 related to the core system conversion that will take place later this year.
“We believe that we will see stronger indications of improvement in the national and local economies in the near future, but we also realize many challenges remain for certain sectors,” said Small. “We have positioned First Defiance to address these challenges as the economy slowly builds back to a healthier level of activity.”
Total Assets at $2.05 Billion
Total assets at September 30, 2010 were $2.05 billion, compared to $2.02 billion at September 30, 2009. Net loans receivable (excluding loans held for sale) were $1.51 billion at September 30, 2010 compared to $1.59 billion at September 30, 2009. Total cash and cash equivalents were $148.7 million at September 30, 2010 compared with $77.3 million at September 30, 2009, an increase of $71.4 million. Total deposits at September 30, 2010 were $1.59 billion compared to $1.54 billion at September 30, 2009, an increase of $47.6 million. Non-interest bearing deposits at September 30, 2010 were $213.4 million compared to $174.1 million at September 30, 2009. Total stockholders’ equity was $241.0 million at September 30,
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2010 compared to $234.5 million at September 30, 2009. Also at September 30, 2010, goodwill and other intangible assets totaled $64.0 million compared to $63.8 million at September 30, 2009.
Conference Call
First Defiance Financial Corp. will host a conference call at 11:00 a.m. (EDT) on Tuesday, October 26, 2010 to discuss the earnings results and business trends.
The conference call may be accessed by calling 1-800-860-2442. Internet access to the call is also available (in listen-only mode) at the following URL:http://www.talkpoint.com/viewer/starthere.asp?Pres=132180.
Audio replay of the Internet Web cast will be available atwww.fdef.com until Monday November 29th, 2010 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 & Investments. First Federal operates 33 full service branches and 45 ATM locations in northwest Ohio, southeast Michigan and Fort Wayne, Indiana. First Insurance & Investments specializes in property and casualty and group health and life insurance, with offices in Defiance, Bryan, Archbold and Bowling Green, 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 OREO 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, 2009. One or more of these factors have affected or could in the future affect the Company’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
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Consolidated Balance Sheets
First Defiance Financial Corp.
(in thousands) | (Unaudited) September 30, 2010 | December 31, 2009 | September 30, 2009 | |||||||||
Assets | ||||||||||||
Cash and cash equivalents | ||||||||||||
Cash and amounts due from depository institutions | $ | 31,662 | $ | 29,613 | $ | 30,207 | ||||||
Interest-bearing deposits | 117,000 | 91,503 | 47,109 | |||||||||
| 148,662 | 121,116 | 77,316 | ||||||||||
Securities | ||||||||||||
Available-for sale, carried at fair value | 156,355 | 137,458 | 126,985 | |||||||||
Held-to-maturity, carried at amortized cost | 918 | 1,920 | 1,697 | |||||||||
| 157,273 | 139,378 | 128,682 | ||||||||||
Loans | 1,553,546 | 1,617,122 | 1,623,627 | |||||||||
Allowance for loan losses | (41,343 | ) | (36,547 | ) | (31,248 | ) | ||||||
Loans, net | 1,512,203 | 1,580,575 | 1,592,379 | |||||||||
Loans held for sale | 21,613 | 10,346 | 24,340 | |||||||||
Mortgage servicing rights | 8,289 | 8,958 | 8,350 | |||||||||
Accrued interest receivable | 7,248 | 6,851 | 8,110 | |||||||||
Federal Home Loan Bank stock | 21,376 | 21,376 | 21,376 | |||||||||
Bank Owned Life Insurance | 32,751 | 30,804 | 30,585 | |||||||||
Office properties and equipment | 42,276 | 43,597 | 46,372 | |||||||||
Real estate and other assets held for sale | 11,127 | 13,527 | 9,352 | |||||||||
Goodwill | 57,556 | 56,585 | 56,585 | |||||||||
Core deposit and other intangibles | 6,485 | 6,888 | 7,242 | |||||||||
Deferred taxes | 4,865 | 3,289 | 1,305 | |||||||||
Other assets | 14,384 | 14,233 | 6,604 | |||||||||
Total Assets | $ | 2,046,108 | $ | 2,057,523 | $ | 2,018,598 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Non-interest-bearing deposits | $ | 213,414 | $ | 189,132 | $ | 174,145 | ||||||
Interest-bearing deposits | 1,377,234 | 1,391,094 | 1,368,940 | |||||||||
Total deposits | 1,590,648 | 1,580,226 | 1,543,085 | |||||||||
Advances from Federal Home Loan Bank | 116,896 | 146,927 | 146,937 | |||||||||
Notes payable and other interest-bearing liabilities | 41,923 | 48,398 | 43,280 | |||||||||
Subordinated debentures | 36,083 | 36,083 | 36,083 | |||||||||
Advance payments by borrowers for tax and insurance | 501 | 665 | 492 | |||||||||
Other liabilities | 19,028 | 11,138 | 14,192 | |||||||||
Total liabilities | 1,805,079 | 1,823,437 | 1,784,069 | |||||||||
Stockholders’ Equity | ||||||||||||
Preferred stock- including warrants and amortization of discount on preferred shares | 36,418 | 36,293 | 36,252 | |||||||||
Common stock, net | 127 | 127 | 127 | |||||||||
Common stock warrant | 878 | 878 | 878 | |||||||||
Additional paid-in-capital | 140,808 | 140,677 | 140,622 | |||||||||
Accumulated other comprehensive income (loss) | 2,198 | (158 | ) | 446 | ||||||||
Retained earnings | 133,228 | 128,900 | 128,835 | |||||||||
Treasury stock, at cost | (72,628 | ) | (72,631 | ) | (72,631 | ) | ||||||
Total stockholders’ equity | 241,029 | 234,086 | 234,529 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,046,108 | $ | 2,057,523 | $ | 2,018,598 | ||||||
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Consolidated Statements of Income (Unaudited)
First Defiance Financial Corp.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands, except per share amounts) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Interest Income: | ||||||||||||||||
Loans | $ | 22,230 | $ | 23,766 | $ | 67,104 | $ | 70,229 | ||||||||
Investment securities | 1,534 | 1,422 | 4,556 | 4,388 | ||||||||||||
Interest-bearing deposits | 68 | 41 | 198 | 89 | ||||||||||||
FHLB stock dividends | 225 | 258 | 678 | 726 | ||||||||||||
Total interest income | 24,057 | 25,487 | 72,536 | 75,432 | ||||||||||||
Interest Expense: | ||||||||||||||||
Deposits | 4,667 | 6,163 | 15,192 | 20,206 | ||||||||||||
FHLB advances and other | 1,187 | 1,267 | 3,625 | 3,865 | ||||||||||||
Subordinated debentures | 332 | 344 | 982 | 1,139 | ||||||||||||
Notes Payable | 109 | 140 | 329 | 433 | ||||||||||||
Total interest expense | 6,295 | 7,914 | 20,128 | 25,643 | ||||||||||||
Net interest income | 17,762 | 17,573 | 52,408 | 49,789 | ||||||||||||
Provision for loan losses | 5,196 | 8,051 | 17,525 | 14,762 | ||||||||||||
Net interest income after provision for loan losses | 12,566 | 9,522 | 34,883 | 35,027 | ||||||||||||
Non-interest Income: | ||||||||||||||||
Service fees and other charges | 3,301 | 3,577 | 9,856 | 9,989 | ||||||||||||
Mortgage banking income | 2,322 | 980 | 5,114 | 7,677 | ||||||||||||
Gain on sale of non-mortgage loans | 10 | 151 | 97 | 251 | ||||||||||||
Gain on securities | — | 154 | 6 | 279 | ||||||||||||
Impairment on securities | (190 | ) | (994 | ) | (331 | ) | (2,541 | ) | ||||||||
Insurance and investment sales commissions | 1,421 | 1,129 | 3,838 | 3,945 | ||||||||||||
Trust income | 118 | 101 | 372 | 306 | ||||||||||||
Income from Bank Owned Life Insurance | 226 | 201 | 917 | 338 | ||||||||||||
Other non-interest income | 271 | 257 | 167 | 475 | ||||||||||||
Total Non-interest Income | 7,479 | 5,556 | 20,036 | 20,719 | ||||||||||||
Non-interest Expense: | ||||||||||||||||
Compensation and benefits | 7,114 | 6,551 | 20,161 | 21,501 | ||||||||||||
Occupancy | 1,734 | 1,860 | 5,264 | 5,901 | ||||||||||||
FDIC insurance premium | 907 | 649 | 2,881 | 2,713 | ||||||||||||
State franchise tax | 542 | 571 | 1,621 | 1,668 | ||||||||||||
Data processing | 1,186 | 1,100 | 3,556 | 3,330 | ||||||||||||
Amortization of intangibles | 356 | 355 | 1,139 | 1,101 | ||||||||||||
One time acquisition related charges | 16 | — | 53 | — | ||||||||||||
Other non-interest expense | 5,247 | 3,700 | 12,303 | 9,701 | ||||||||||||
Total Non-interest Expense | 17,102 | 14,786 | 46,978 | 45,915 | ||||||||||||
Income before income taxes | 2,943 | 292 | 7,941 | 9,831 | ||||||||||||
Income taxes | 668 | (37 | ) | 2,100 | 3,193 | |||||||||||
Net Income | $ | 2,275 | $ | 329 | $ | 5,841 | $ | 6,638 | ||||||||
Dividends Accrued on Preferred Shares | (463 | ) | (473 | ) | (1,388 | ) | (1,403 | ) | ||||||||
Accretion on Preferred Shares | (43 | ) | (40 | ) | (125 | ) | (118 | ) | ||||||||
Net Income (loss) Applicable to Common Shares | $ | 1,769 | $ | (184 | ) | $ | 4,328 | $ | 5,117 | |||||||
Earnings (loss) per common share: | ||||||||||||||||
Basic | $ | 0.22 | $ | (0.02 | ) | $ | 0.53 | $ | 0.63 | |||||||
Diluted | $ | 0.22 | $ | (0.02 | ) | $ | 0.53 | $ | 0.63 | |||||||
Core operating earnings per common share*: | ||||||||||||||||
Basic | $ | 0.22 | $ | (0.02 | ) | $ | 0.54 | $ | 0.63 | |||||||
Diluted | $ | 0.22 | $ | (0.02 | ) | $ | 0.54 | $ | 0.63 | |||||||
Average Shares Outstanding: | ||||||||||||||||
Basic | 8,118 | 8,117 | 8,118 | 8,117 | ||||||||||||
Diluted | 8,118 | 8,117 | 8,143 | 8,172 | ||||||||||||
| * | - See Non-GAAP Disclosure Reconciliations |
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Financial Summary and Comparison
First Defiance Financial Corp.
| (Unaudited) Three Months Ended September 30, | (Unaudited) Nine Months Ended September 30, | |||||||||||||||||||||||
(dollars in thousands, except per share data) | 2010 | 2009 | % change | 2010 | 2009 | % change | ||||||||||||||||||
Summary of Operations | ||||||||||||||||||||||||
Tax-equivalent interest income (1) | $ | 24,373 | $ | 25,796 | (5.5 | )% | $ | 73,456 | $ | 76,293 | (3.7 | )% | ||||||||||||
Interest expense | 6,295 | 7,914 | (20.5 | ) | 20,128 | 25,643 | (21.5 | ) | ||||||||||||||||
Tax-equivalent net interest | 18,078 | 17,882 | 1.1 | 53,328 | 50,650 | 5.3 | ||||||||||||||||||
Provision for loan losses | 5,196 | 8,051 | (35.5 | ) | 17,525 | 14,762 | 18.7 | |||||||||||||||||
Tax-equivalent NII after provision for loan loss (1) | 12,882 | 9,831 | 31.0 | 35,803 | 35,888 | (0.2 | ) | |||||||||||||||||
Investment Securities gains (losses) | (190 | ) | (840 | ) | (77.4 | ) | (325 | ) | (2,262 | ) | (85.6 | ) | ||||||||||||
Non-interest income-excluding securities losses | 7,669 | 6,396 | 19.9 | 20,361 | 22,981 | (11.4 | ) | |||||||||||||||||
Non-interest expense | 17,102 | 14,786 | 15.7 | 46,978 | 45,915 | 2.3 | ||||||||||||||||||
Non-interest expense-excluding non-core charges | 17,086 | 14,786 | 15.6 | 46,925 | 45,915 | 2.2 | ||||||||||||||||||
One time acquisition related charges | 16 | — | NM | 53 | — | NM | ||||||||||||||||||
Income taxes | 668 | (37 | ) | (1,905.4 | ) | 2,100 | 3,193 | (34.2 | ) | |||||||||||||||
Net Income | 2,275 | 329 | 591.5 | 5,841 | 6,638 | (12.0 | ) | |||||||||||||||||
Dividends Declared on Preferred Shares | (463 | ) | (473 | ) | (2.1 | ) | (1,388 | ) | (1,403 | ) | (1.1 | ) | ||||||||||||
Accretion on Preferred Shares | (43 | ) | (40 | ) | 7.5 | (125 | ) | (118 | ) | 5.9 | ||||||||||||||
Net Income Applicable to Common Shares | 1,769 | (184 | ) | (1,061.4 | ) | 4,328 | 5,117 | (15.4 | ) | |||||||||||||||
Core operating earnings (2) | 2,285 | 329 | 594.5 | 5,875 | 6,638 | (11.5 | ) | |||||||||||||||||
Tax equivalent adjustment (1) | 316 | 309 | 2.3 | 920 | 861 | 6.9 | ||||||||||||||||||
At Period End | ||||||||||||||||||||||||
Assets | 2,046,108 | 2,018,598 | 1.4 | |||||||||||||||||||||
Earning assets | 1,870,808 | 1,845,134 | 1.4 | |||||||||||||||||||||
Loans | 1,553,546 | 1,623,627 | (4.3 | ) | ||||||||||||||||||||
Allowance for loan losses | 41,343 | 31,248 | 32.3 | |||||||||||||||||||||
Deposits | 1,590,648 | 1,543,085 | 3.1 | |||||||||||||||||||||
Stockholders’ equity | 241,029 | 234,529 | 2.8 | |||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||
Assets | 2,045,878 | 2,029,970 | 0.8 | 2,051,770 | 2,014,238 | 1.9 | ||||||||||||||||||
Earning assets | 1,823,954 | 1,826,400 | (0.1 | ) | 1,833,710 | 1,812,230 | 1.2 | |||||||||||||||||
Deposits and interest-bearing liabilities | 1,790,022 | 1,778,223 | 0.7 | 1,799,125 | 1,764,667 | 2.0 | ||||||||||||||||||
Loans | 1,545,421 | 1,613,529 | (4.2 | ) | 1,552,408 | 1,600,878 | (3.0 | ) | ||||||||||||||||
Deposits | 1,585,300 | 1,550,369 | 2.3 | 1,586,420 | 1,538,986 | 3.1 | ||||||||||||||||||
Stockholders’ equity | 240,709 | 234,241 | 2.8 | 237,759 | 231,912 | 2.5 | ||||||||||||||||||
Stockholders’ equity / assets | 11.77 | % | 11.54 | % | 2.0 | 11.59 | % | 11.51 | % | 0.6 | ||||||||||||||
Per Common Share Data | ||||||||||||||||||||||||
Net Income | ||||||||||||||||||||||||
Basic | $ | 0.22 | $ | (0.02 | ) | (1,200.0 | ) | $ | 0.53 | $ | 0.63 | (15.9 | ) | |||||||||||
Diluted | 0.22 | (0.02 | ) | (1,200.0 | ) | 0.53 | 0.63 | (15.9 | ) | |||||||||||||||
Core operating earnings (2) | ||||||||||||||||||||||||
Basic | $ | 0.22 | $ | (0.02 | ) | (1,066.8 | ) | $ | 0.54 | $ | 0.63 | (14.8 | ) | |||||||||||
Diluted | 0.22 | (0.02 | ) | (1,066.8 | ) | 0.54 | 0.63 | (14.5 | ) | |||||||||||||||
Dividends | — | 0.04 | (100.0 | ) | — | 0.30 | (100.0 | ) | ||||||||||||||||
Market Value: | ||||||||||||||||||||||||
High | $ | 10.63 | $ | 18.33 | (42.0 | ) | $ | 14.85 | $ | 18.33 | (19.0 | ) | ||||||||||||
Low | 8.55 | 12.00 | (28.8 | ) | 8.53 | 3.76 | 126.9 | |||||||||||||||||
Close | 10.06 | 14.91 | (32.5 | ) | 10.06 | 14.91 | (32.5 | ) | ||||||||||||||||
Book Value | 25.10 | 24.32 | 3.2 | 25.10 | 24.32 | 3.2 | ||||||||||||||||||
Tangible Book Value | 17.21 | 16.45 | 4.6 | 17.21 | 16.45 | 4.6 | ||||||||||||||||||
Shares outstanding, end of period (000) | 8,118 | 8,118 | — | 8,118 | 8,118 | — | ||||||||||||||||||
Performance Ratios (annualized) | ||||||||||||||||||||||||
Tax-equivalent net interest | 3.94 | % | 3.88 | % | 1.5 | 3.89 | % | 3.73 | % | 4.3 | ||||||||||||||
Return on average assets - GAAP | 0.44 | % | 0.06 | % | 586.1 | 0.38 | % | 0.44 | % | (13.6 | ) | |||||||||||||
Return on average equity - GAAP | 3.75 | % | 0.56 | % | 572.9 | 3.28 | % | 3.83 | % | (14.2 | ) | |||||||||||||
Efficiency ratio (3) - GAAP | 66.42 | % | 60.90 | % | 9.1 | 63.75 | % | 62.36 | % | 2.2 | ||||||||||||||
Effective tax rate | 22.70 | % | -12.67 | % | (279.1 | ) | 26.45 | % | 32.48 | % | (18.6 | ) | ||||||||||||
Dividend payout ratio (basic) | 0.00 | % | -200.00 | % | (100.0 | ) | 0.00 | % | 46.83 | % | (100.0 | ) | ||||||||||||
| (1) | Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35% |
| (2) | Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net. |
NM Percentage change not meaningful
8
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 September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands, except per share data) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Net Income | $ | 2,275 | $ | 329 | $ | 5,841 | $ | 6,638 | ||||||||
Acquisition related charges | 16 | — | 53 | — | ||||||||||||
Tax effect | (6 | ) | — | (19 | ) | — | ||||||||||
After-tax non-operating items | 10 | — | 34 | — | ||||||||||||
Core operating earnings | $ | 2,285 | $ | 329 | $ | 5,875 | $ | 6,638 | ||||||||
Acquisition related charges in 2010 reflect charges associated with the purchase of the group benefits business from Andres, O’Neil & Lowe.
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:
| Three months ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(dollars in thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Gain from sale of mortgage loans | $ | 2,886 | $ | 1,541 | $ | 5,262 | $ | 7,276 | ||||||||
Mortgage loan servicing revenue (expense): | ||||||||||||||||
Mortgage loan servicing revenue | 761 | 725 | 2,263 | 2,109 | ||||||||||||
Amortization of mortgage servicing rights | (798 | ) | (514 | ) | (1,634 | ) | (2,625 | ) | ||||||||
Mortgage servicing rights valuation adjustments | (527 | ) | (772 | ) | (777 | ) | 917 | |||||||||
| (564 | ) | (561 | ) | (148 | ) | 401 | ||||||||||
Total revenue from sale and servicing of mortgage loans | $ | 2,322 | $ | 980 | $ | 5,114 | $ | 7,677 | ||||||||
9
Yield Analysis
First Defiance Financial Corp.
| Three Months Ended September 30, (dollars in thousands) | ||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||
Average Balance | Interest(1) | Yield Rate(2) | Average Balance | Interest(1) | Yield Rate(2) | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans receivable | $ | 1,545,421 | $ | 22,266 | 5.72 | % | $ | 1,613,529 | $ | 23,812 | 5.85 | % | ||||||||||||
Securities | 159,045 | 1,814 | 4.64 | % | 130,673 | 1,685 | 5.08 | % | ||||||||||||||||
Interest Bearing Deposits | 98,112 | 68 | 0.27 | % | 60,822 | 41 | 0.27 | % | ||||||||||||||||
FHLB stock | 21,376 | 225 | 4.18 | % | 21,376 | 258 | 4.79 | % | ||||||||||||||||
Total interest-earning assets | 1,823,954 | 24,373 | 5.31 | % | 1,826,400 | 25,796 | 5.60 | % | ||||||||||||||||
Non-interest-earning assets | 221,924 | 203,570 | ||||||||||||||||||||||
Total assets | $ | 2,045,878 | $ | 2,029,970 | ||||||||||||||||||||
Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest bearing deposits | $ | 1,385,093 | $ | 4,667 | 1.34 | % | $ | 1,374,441 | $ | 6,163 | 1.78 | % | ||||||||||||
FHLB advances and other | 123,566 | 1,187 | 3.81 | % | 146,941 | 1,267 | 3.42 | % | ||||||||||||||||
Other Borrowings | 44,927 | 109 | 0.96 | % | 44,685 | 140 | 1.24 | % | ||||||||||||||||
Subordinated debentures | 36,229 | 332 | 3.64 | % | 36,228 | 344 | 3.77 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,589,815 | 6,295 | 1.57 | % | 1,602,295 | 7,914 | 1.96 | % | ||||||||||||||||
Non-interest bearing deposits | 200,207 | — | — | 175,928 | — | — | ||||||||||||||||||
Total including non-interest-bearing demand deposits | 1,790,022 | 6,295 | 1.40 | % | 1,778,223 | 7,914 | 1.77 | % | ||||||||||||||||
Other non-interest-bearing liabilities | 15,147 | 17,506 | ||||||||||||||||||||||
Total liabilities | 1,805,169 | 1,795,729 | ||||||||||||||||||||||
Stockholders’ equity | 240,709 | 234,241 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,045,878 | $ | 2,029,970 | ||||||||||||||||||||
Net interest income; interest rate spread | $ | 18,078 | 3.74 | % | $ | 17,882 | 3.64 | % | ||||||||||||||||
Net interest margin (3) | 3.94 | % | 3.88 | % | ||||||||||||||||||||
Average interest-earning assets to average interest bearing liabilities | 115 | % | 114 | % | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||
| Average Balance | Interest(1) | Yield Rate(2) | Average Balance | Interest(1) | Yield Rate(2) | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans receivable | $ | 1,552,408 | $ | 67,216 | 5.79 | % | $ | 1,600,878 | $ | 70,333 | 5.87 | % | ||||||||||||
Securities | 152,318 | 5,364 | 4.79 | % | 126,883 | 5,145 | 5.36 | % | ||||||||||||||||
Interest Bearing Deposits | 107,608 | 198 | 0.25 | % | 63,093 | 89 | 0.19 | % | ||||||||||||||||
FHLB stock | 21,376 | 678 | 4.24 | % | 21,376 | 726 | 4.54 | % | ||||||||||||||||
Total interest-earning assets | 1,833,710 | 73,456 | 5.36 | % | 1,812,230 | 76,293 | 5.61 | % | ||||||||||||||||
Non-interest-earning assets | 218,060 | 202,008 | ||||||||||||||||||||||
Total assets | $ | 2,051,770 | $ | 2,014,238 | ||||||||||||||||||||
Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest bearing deposits | $ | 1,393,747 | $ | 15,192 | 1.46 | % | $ | 1,366,645 | $ | 20,206 | 1.98 | % | ||||||||||||
FHLB advances and other | 130,745 | 3,625 | 3.71 | % | 146,994 | 3,865 | 3.52 | % | ||||||||||||||||
Other Borrowings | 45,731 | 329 | 0.96 | % | 42,446 | 433 | 1.36 | % | ||||||||||||||||
Subordinated debentures | 36,229 | 982 | 3.62 | % | 36,241 | 1,139 | 4.20 | % | ||||||||||||||||
Total interest-bearing liabilities | 1,606,452 | 20,128 | 1.67 | % | 1,592,326 | 25,643 | 2.15 | % | ||||||||||||||||
Non-interest bearing deposits | 192,673 | — | — | 172,341 | — | — | ||||||||||||||||||
Total including non-interest-bearing demand deposits | 1,799,125 | 20,128 | 1.50 | % | 1,764,667 | 25,643 | 1.94 | % | ||||||||||||||||
Other non-interest-bearing liabilities | 14,886 | 17,659 | ||||||||||||||||||||||
Total liabilities | 1,814,011 | 1,782,326 | ||||||||||||||||||||||
Stockholders’ equity | 237,759 | 231,912 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,051,770 | $ | 2,014,238 | ||||||||||||||||||||
Net interest income; interest rate spread | $ | 53,328 | 3.69 | % | $ | 50,650 | 3.46 | % | ||||||||||||||||
Net interest margin (3) | 3.89 | % | 3.73 | % | ||||||||||||||||||||
Average interest-earning assets to average interest bearing liabilities | 114 | % | 114 | % | ||||||||||||||||||||
| (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 2010 | 2nd Qtr 2010 | 1st Qtr 2010 | 4th Qtr 2009 | 3rd Qtr 2009 | |||||||||||||||
Summary of Operations | ||||||||||||||||||||
Tax-equivalent interest income (1) | $ | 24,373 | $ | 24,655 | $ | 24,427 | $ | 25,434 | $ | 25,796 | ||||||||||
Interest expense | 6,295 | 6,788 | 7,044 | 7,614 | 7,914 | |||||||||||||||
Tax-equivalent net interest income (1) | 18,078 | 17,867 | 17,383 | 17,820 | 17,882 | |||||||||||||||
Provision for loan losses | 5,196 | 5,440 | 6,889 | 8,470 | 8,051 | |||||||||||||||
Tax-equivalent NII after provision for loan | 12,882 | 12,427 | 10,494 | 9,350 | 9,831 | |||||||||||||||
Investment securities gains (losses) | (190 | ) | (71 | ) | (64 | ) | (1,394 | ) | (840 | ) | ||||||||||
Non-interest income (excluding securities gains/losses) | 7,669 | 5,862 | 6,830 | 6,970 | 6,396 | |||||||||||||||
Non-interest expense | 17,102 | 15,045 | 14,832 | 14,609 | 14,786 | |||||||||||||||
Income taxes | 668 | 808 | 624 | (525 | ) | (37 | ) | |||||||||||||
Net income | 2,275 | 2,059 | 1,506 | 555 | 329 | |||||||||||||||
Dividends Declared on Preferred Shares | (463 | ) | (462 | ) | (463 | ) | (447 | ) | (473 | ) | ||||||||||
Accretion on Preferred Shares | (43 | ) | (42 | ) | (40 | ) | (41 | ) | (40 | ) | ||||||||||
Net Income (loss) Applicable to Common Shares | 1,769 | 1,555 | 1,003 | 67 | (184 | ) | ||||||||||||||
Tax equivalent adjustment (1) | 316 | 306 | 298 | 287 | 309 | |||||||||||||||
At Period End | ||||||||||||||||||||
Total assets | $ | 2,046,108 | $ | 2,038,656 | $ | 2,058,775 | $ | 2,057,523 | $ | 2,018,598 | ||||||||||
Earning assets | 1,870,808 | 1,858,300 | 1,884,650 | 1,879,725 | 1,845,134 | |||||||||||||||
Loans | 1,553,546 | 1,571,413 | 1,576,602 | 1,617,122 | 1,623,627 | |||||||||||||||
Allowance for loan losses | 41,343 | 38,852 | 38,980 | 36,547 | 31,248 | |||||||||||||||
Deposits | 1,590,648 | 1,580,520 | 1,599,584 | 1,580,226 | 1,543,085 | |||||||||||||||
Stockholders’ equity | 241,029 | 238,438 | 235,655 | 234,086 | 234,529 | |||||||||||||||
Stockholders’ equity / assets | 11.78 | % | 11.70 | % | 11.45 | % | 11.38 | % | 11.62 | % | ||||||||||
Goodwill | 57,556 | 57,556 | 56,585 | 56,585 | 56,585 | |||||||||||||||
Average Balances | ||||||||||||||||||||
Total assets | $ | 2,045,878 | $ | 2,060,925 | $ | 2,048,506 | $ | 2,058,219 | $ | 2,029,970 | ||||||||||
Earning assets | 1,823,954 | 1,845,306 | 1,831,867 | 1,852,401 | 1,826,400 | |||||||||||||||
Deposits and interest-bearing liabilities | 1,790,022 | 1,808,944 | 1,798,408 | 1,805,090 | 1,778,223 | |||||||||||||||
Loans | 1,545,421 | 1,551,396 | 1,560,405 | 1,600,265 | 1,613,529 | |||||||||||||||
Deposits | 1,585,300 | 1,597,820 | 1,576,140 | 1,572,399 | 1,550,369 | |||||||||||||||
Stockholders’ equity | 240,709 | 237,076 | 235,492 | 235,152 | 234,241 | |||||||||||||||
Stockholders’ equity / assets | 11.77 | % | 11.50 | % | 11.50 | % | 11.43 | % | 11.54 | % | ||||||||||
Per Common Share Data | ||||||||||||||||||||
Net Income: | ||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.19 | $ | 0.12 | $ | 0.01 | $ | (0.02 | ) | |||||||||
Diluted | 0.22 | 0.19 | 0.12 | 0.01 | (0.02 | ) | ||||||||||||||
Dividends | — | — | — | — | 0.04 | |||||||||||||||
Market Value: | ||||||||||||||||||||
High | $ | 10.63 | $ | 14.85 | $ | 12.33 | $ | 18.93 | $ | 18.33 | ||||||||||
Low | 8.55 | 8.53 | 9.20 | 10.06 | 12.00 | |||||||||||||||
Close | 10.06 | 8.94 | 10.12 | 11.29 | 14.91 | |||||||||||||||
Book Value | 25.10 | 24.78 | 24.45 | 24.26 | 24.32 | |||||||||||||||
Shares outstanding, end of period (in thousands) | 8,118 | 8,118 | 8,117 | 8,118 | 8,118 | |||||||||||||||
Performance Ratios (annualized) | ||||||||||||||||||||
Tax-equivalent net interest margin (1) | 3.94 | % | 3.89 | % | 3.85 | % | 3.82 | % | 3.88 | % | ||||||||||
Return on average assets | 0.44 | % | 0.40 | % | 0.30 | % | 0.11 | % | 0.06 | % | ||||||||||
Return on average equity | 3.75 | % | 3.48 | % | 2.59 | % | 0.94 | % | 0.56 | % | ||||||||||
Efficiency ratio (2) | 66.42 | % | 63.40 | % | 61.26 | % | 58.93 | % | 60.90 | % | ||||||||||
Effective tax rate | 22.70 | % | 28.18 | % | 29.30 | % | -1750.00 | % | -12.67 | % | ||||||||||
Common dividend payout ratio (basic) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | -200.00 | % | ||||||||||
| (1) | Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35% |
| (2) | Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains, net. |
11
Selected Quarterly Information
First Defiance Financial Corp.
(dollars in thousands, except per share data) | 3rd Qtr 2010 | 2nd Qtr 2010 | 1st Qtr 2010 | 4th Qtr 2009 | 3rd Qtr 2009 | |||||||||||||||
Loan Portfolio Composition | ||||||||||||||||||||
One to four family residential real estate | $ | 213,574 | $ | 217,603 | $ | 222,099 | $ | 227,592 | $ | 233,958 | ||||||||||
Construction | 31,722 | 43,333 | 46,369 | 48,625 | 53,605 | |||||||||||||||
Commercial real estate | 776,972 | 790,521 | 797,449 | 806,890 | 802,434 | |||||||||||||||
Commercial | 376,452 | 364,281 | 352,923 | 379,408 | 371,881 | |||||||||||||||
Consumer finance | 27,060 | 28,961 | 31,718 | 34,105 | 36,416 | |||||||||||||||
Home equity and improvement | 137,747 | 140,969 | 144,826 | 147,977 | 150,379 | |||||||||||||||
Total loans | 1,563,527 | 1,585,668 | 1,595,384 | 1,644,597 | 1,648,673 | |||||||||||||||
Less: | ||||||||||||||||||||
Loans in process | 9,030 | 13,283 | 17,794 | 26,494 | 23,957 | |||||||||||||||
Deferred loan origination fees | 951 | 972 | 988 | 981 | 1,089 | |||||||||||||||
Allowance for loan loss | 41,343 | 38,852 | 38,980 | 36,547 | 31,248 | |||||||||||||||
Net Loans | $ | 1,512,203 | $ | 1,532,561 | $ | 1,537,622 | $ | 1,580,575 | $ | 1,592,379 | ||||||||||
Allowance for loan loss activity | ||||||||||||||||||||
Beginning allowance | 38,852 | 38,980 | 36,547 | $ | 31,248 | $ | 25,840 | |||||||||||||
Provision for loan losses | 5,196 | 5,440 | 6,889 | 8,470 | 8,051 | |||||||||||||||
Credit loss charge-offs: | ||||||||||||||||||||
One to four family residential real estate | 1,164 | 1,135 | 326 | 884 | 744 | |||||||||||||||
Commercial real estate | 688 | 1,243 | 3,191 | 1,912 | 1,152 | |||||||||||||||
Commercial | 842 | 3,153 | 735 | 354 | 658 | |||||||||||||||
Consumer finance | 28 | 16 | 25 | 75 | 39 | |||||||||||||||
Home equity and improvement | 148 | 156 | 399 | 134 | 196 | |||||||||||||||
Total charge-offs | 2,870 | 5,703 | 4,676 | 3,359 | 2,789 | |||||||||||||||
Total recoveries | 165 | 135 | 220 | 188 | 146 | |||||||||||||||
Net charge-offs (recoveries) | 2,705 | 5,568 | 4,456 | 3,171 | 2,643 | |||||||||||||||
Ending allowance | $ | 41,343 | $ | 38,852 | $ | 38,980 | $ | 36,547 | $ | 31,248 | ||||||||||
Credit Quality | ||||||||||||||||||||
Non-accrual loans | $ | 37,377 | $ | 31,804 | $ | 33,567 | $ | 41,191 | $ | 35,490 | ||||||||||
Restructured loans, accruing | 8,784 | 8,918 | 7,023 | 6,715 | 4,574 | |||||||||||||||
Total non-performing loans (1) | 46,161 | 40,722 | 40,590 | 47,906 | 40,064 | |||||||||||||||
Real estate owned (REO) | 11,127 | 12,735 | 12,768 | 13,527 | 9,352 | |||||||||||||||
Total non-performing assets (2) | $ | 57,288 | $ | 53,457 | $ | 53,358 | $ | 61,433 | $ | 49,416 | ||||||||||
Net charge-offs | 2,705 | 5,568 | 4,456 | 3,171 | 2,643 | |||||||||||||||
Allowance for loan losses / loans | 2.66 | % | 2.47 | % | 2.47 | % | 2.26 | % | 1.92 | % | ||||||||||
Allowance for loan losses / non-performing assets | 72.17 | % | 72.68 | % | 73.05 | % | 59.49 | % | 63.23 | % | ||||||||||
Allowance for loan losses / non-performing loans | 89.56 | % | 95.41 | % | 96.03 | % | 76.29 | % | 78.00 | % | ||||||||||
Non-performing assets / loans plus REO | 3.66 | % | 3.37 | % | 3.36 | % | 3.77 | % | 3.03 | % | ||||||||||
Non-performing assets / total assets | 2.80 | % | 2.62 | % | 2.59 | % | 2.99 | % | 2.45 | % | ||||||||||
Net charge-offs / average loans (annualized) | 0.70 | % | 1.44 | % | 1.14 | % | 0.79 | % | 0.66 | % | ||||||||||
Deposit Balances | ||||||||||||||||||||
Non-interest-bearing demand deposits | $ | 213,414 | $ | 190,140 | $ | 187,231 | $ | 189,132 | $ | 174,145 | ||||||||||
Interest-bearing demand deposits and money market | 543,539 | 517,170 | 525,311 | 499,575 | 477,566 | |||||||||||||||
Savings deposits | 141,190 | 140,473 | 138,364 | 130,156 | 132,333 | |||||||||||||||
Retail time deposits less than $100,000 | 485,777 | 527,421 | 539,313 | 550,172 | 544,957 | |||||||||||||||
Retail time deposits greater than $100,000 | 161,413 | 158,069 | 161,071 | 163,838 | 166,787 | |||||||||||||||
National/Brokered time deposits | 45,315 | 47,247 | 48,294 | 47,353 | 47,297 | |||||||||||||||
Total deposits | $ | 1,590,648 | $ | 1,580,520 | $ | 1,599,584 | $ | 1,580,226 | $ | 1,543,085 | ||||||||||
| (1) | Non-performing loans consist of non-accrual loans that are contractually past due 90 days or more and loans that are deemed impaired. |
| (2) | Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof. |
12
Loan Delinquency Information
First Defiance Financial Corp.
(dollars in thousands) | Total Balance | Current | 30 to 89 days past due | Non Accrual Loans | Troubled Debt Restructuring | |||||||||||||||
September 30, 2010 | ||||||||||||||||||||
One to four family residential real estate | $ | 213,574 | $ | 200,573 | $ | 2,483 | $ | 6,589 | $ | 3,929 | ||||||||||
Construction | 31,722 | 31,553 | — | 169 | — | |||||||||||||||
Commercial real estate | 776,972 | 745,663 | 3,420 | 23,421 | 4,468 | |||||||||||||||
Commercial | 376,452 | 368,827 | 318 | 6,955 | 352 | |||||||||||||||
Consumer finance | 27,060 | 26,842 | 184 | 34 | — | |||||||||||||||
Home equity and improvement | 137,747 | 135,825 | 1,678 | 209 | 35 | |||||||||||||||
Total loans | 1,563,527 | $ | 1,509,283 | $ | 8,083 | $ | 37,377 | $ | 8,784 | |||||||||||
June 30, 2010 | ||||||||||||||||||||
One to four family residential real estate | $ | 217,603 | $ | 202,472 | $ | 4,790 | $ | 6,457 | $ | 3,884 | ||||||||||
Construction | 43,333 | 43,079 | — | 254 | — | |||||||||||||||
Commercial real estate | 790,521 | 763,913 | 4,057 | 17,912 | 4,639 | |||||||||||||||
Commercial | 364,281 | 356,500 | 508 | 6,898 | 375 | |||||||||||||||
Consumer finance | 28,961 | 28,767 | 177 | 17 | — | |||||||||||||||
Home equity and improvement | 140,969 | 139,219 | 1,464 | 266 | 20 | |||||||||||||||
Total loans | $ | 1,585,668 | $ | 1,533,950 | $ | 10,996 | $ | 31,804 | $ | 8,918 | ||||||||||
December 31, 2009 | ||||||||||||||||||||
One to four family residential real estate | $ | 227,592 | $ | 215,209 | $ | 4,333 | $ | 5,349 | $ | 2,701 | ||||||||||
Construction | 48,625 | 47,950 | — | 675 | — | |||||||||||||||
Commercial real estate | 809,890 | 775,604 | 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 | $ | 1,647,597 | $ | 1,585,505 | $ | 11,186 | $ | 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 | ||||||||||
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