ý
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934. For the Quarterly Period Ended March 31,
2007
|
¨
|
Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934 For the Transition Period from
___________to__________
|
Ohio
|
34-1803915
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
Number)
|
601
Clinton Street, Defiance, Ohio
|
43512
|
(Address
or principal executive office)
|
(Zip
Code)
|
Large
accelerated filer o
|
Accelerated
filer ý
|
Non-accelerated
filer o
|
Page
Number
|
||
2
|
||
4
|
||
5
|
||
6
|
||
7
|
||
21
|
||
30
|
||
31
|
||
32
|
||
32
|
||
32
|
||
32
|
||
33
|
||
33
|
||
33
|
||
34
|
March
31,
2007
|
December
31, 2006
|
|||||||
(In
Thousands)
|
||||||||
Assets
|
||||||||
Cash
and cash equivalents:
|
||||||||
Cash
and amounts due from
depository institutions
|
$ |
36,376
|
$ |
47,668
|
||||
Interest-bearing
deposits
|
2,380
|
2,355
|
||||||
38,756
|
50,023
|
|||||||
Securities:
|
||||||||
Available-for-sale,
carried at
fair value
|
109,230
|
110,682
|
||||||
Held-to-maturity,
carried at
amortized cost
|
||||||||
(fair
value $1,425 and $1,492 at
March 31, 2007
|
||||||||
and
December 31, 2006,
respectively)
|
1,375
|
1,441
|
||||||
110,605
|
112,123
|
|||||||
Loans
held for sale
|
3,832
|
3,426
|
||||||
Loans
receivable, net of allowance of $13,752 at March 31, 2007
and $13,579 at December 31, 2006, respectively |
1,223,320
|
1,226,310
|
||||||
Accrued
interest receivable
|
7,278
|
6,984
|
||||||
Federal
Home Loan Bank stock
|
18,586
|
18,586
|
||||||
Bank
owned life insurance
|
27,680
|
25,326
|
||||||
Premises
and equipment
|
35,117
|
34,899
|
||||||
Real
estate and other assets held for sale
|
2,581
|
2,392
|
||||||
Goodwill
|
36,464
|
35,090
|
||||||
Core
deposit and other intangibles
|
4,074
|
3,397
|
||||||
Mortgage
servicing rights
|
5,602
|
5,529
|
||||||
Other
assets
|
4,519
|
3,794
|
||||||
Total
assets
|
$ |
1,518,414
|
$ |
1,527,879
|
March
31,
2007
|
December
31, 2006
|
|||||||
(In
Thousands)
|
||||||||
Liabilities
and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$ |
1,146,319
|
$ |
1,138,445
|
||||
Advances
from the Federal Home
Loan Bank
|
128,907
|
162,228
|
||||||
Short
term borrowings and other
interest-bearing liabilities
|
23,450
|
30,424
|
||||||
Subordinated
debentures
|
36,083
|
20,619
|
||||||
Advance
payments by
borrowers
|
386
|
667
|
||||||
Deferred
taxes
|
1,162
|
1,295
|
||||||
Other
liabilities
|
17,567
|
14,376
|
||||||
Total
liabilities
|
1,353,874
|
1,368,054
|
||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, no par value per
share:
|
||||||||
5,000
shares authorized; no
shares issued
|
-
|
-
|
||||||
Common
stock, $.01 par value per
share:
|
||||||||
20,000
shares authorized; 11,703
shares issued
|
||||||||
and
7,227 and 7,142 shares
outstanding, respectively
|
117
|
117
|
||||||
Additional
paid-in
capital
|
111,958
|
110,285
|
||||||
Stock
acquired by
ESOP
|
(415 | ) | (628 | ) | ||||
Accumulated
other comprehensive
loss, net of
|
||||||||
tax
of $(307) and $(362),
respectively
|
(574 | ) | (671 | ) | ||||
Retained
earnings
|
121,711
|
120,112
|
||||||
Treasury
stock, at cost, 4,476 and
4,561 shares
respectively
|
(68,257 | ) | (69,390 | ) | ||||
Total
stockholders’ equity
|
164,540
|
159,825
|
||||||
Total
liabilities and stockholders’ equity
|
$ |
1,518,414
|
$ |
1,527,879
|
Three
Months Ended
|
||||||||
March
31
|
||||||||
2007
|
2006
|
|||||||
Interest
Income
|
||||||||
Loans
|
$ |
22,298
|
$ |
20,047
|
||||
Investment
securities:
|
||||||||
Taxable
|
1,128
|
1,069
|
||||||
Non-taxable
|
304
|
274
|
||||||
Interest-bearing
deposits
|
11
|
71
|
||||||
FHLB
stock
dividends
|
292
|
248
|
||||||
Total
interest income
|
24,033
|
21,709
|
||||||
Interest
Expense
|
||||||||
Deposits
|
9,540
|
6,823
|
||||||
FHLB
advances and
other
|
2,003
|
2,147
|
||||||
Subordinated
debentures
|
337
|
298
|
||||||
Notes
payable
|
169
|
132
|
||||||
Total
interest expense
|
12,049
|
9,400
|
||||||
Net
interest income
|
11,984
|
12,309
|
||||||
Provision
for loan losses
|
457
|
383
|
||||||
Net
interest income after provision for loan losses
|
11,527
|
11,926
|
||||||
Non-interest
Income
|
||||||||
Service
fees and other
charges
|
2,518
|
1,791
|
||||||
Insurance
commission
income
|
1,703
|
1,660
|
||||||
Mortgage
banking
income
|
782
|
734
|
||||||
Gain
on sale of non-mortgage
loans
|
5
|
-
|
||||||
Gain
on sale of
securities
|
-
|
-
|
||||||
Trust
income
|
86
|
79
|
||||||
Income
from Bank Owned Life
Insurance
|
304
|
237
|
||||||
Other
non-interest
income
|
209
|
15
|
||||||
Total
non-interest income
|
5,607
|
4,516
|
||||||
Non-interest
Expense
|
||||||||
Compensation
and
benefits
|
6,552
|
6,106
|
||||||
Occupancy
|
1,403
|
1,219
|
||||||
State
franchise
tax
|
363
|
327
|
||||||
Data
processing
|
953
|
914
|
||||||
Amortization
of
intangibles
|
143
|
179
|
||||||
Other
non-interest
expense
|
2,357
|
1,997
|
||||||
Total
non-interest expense
|
11,771
|
10,742
|
||||||
Income
before income taxes
|
5,363
|
5,700
|
||||||
Federal
income taxes
|
1,757
|
1,848
|
||||||
Net
Income
|
$ |
3,606
|
$ |
3,852
|
||||
Earnings
per share (Note 6)
|
||||||||
Basic
|
$ |
0.51
|
$ |
0.55
|
||||
Diluted
|
$ |
0.50
|
$ |
0.54
|
||||
Dividends
declared per share (Note 5)
|
$ |
0.25
|
$ |
0.24
|
||||
Average
shares outstanding (Note 6)
|
||||||||
Basic
|
7,119
|
7,005
|
||||||
Diluted
|
7,229
|
7,182
|
See
accompanying notes
|
Three
Months Ended
|
||||||||
March
31
|
||||||||
2007
|
2006
|
|||||||
Balance
at beginning of period
|
$ |
159,825
|
$ |
151,216
|
||||
Adjustment
to initially apply FIN 48
|
(200 | ) |
-
|
|||||
Balance
at beginning of period as adjusted
|
159,625
|
151,216
|
||||||
Comprehensive
income:
|
||||||||
Net
income
|
3,606
|
3,852
|
||||||
Other
comprehensive income
(loss)
|
97
|
(552 | ) | |||||
Total
comprehensive income
|
3,703
|
3,300
|
||||||
ESOP
shares released
|
701
|
675
|
||||||
Stock
option expense
|
59
|
59
|
||||||
Tax
benefit of employee plans
|
44
|
-
|
||||||
Shares
issued under stock option plans
|
272
|
1,215
|
||||||
Treasury
shares repurchased
|
(326 | ) | (726 | ) | ||||
Issuance
of stock for acquisition of Huber, Harger, Welt and Smith
|
2,250
|
-
|
||||||
Common
cash dividends declared (Note 5)
|
(1,788 | ) | (1,694 | ) | ||||
Balance
at end of period
|
$ |
164,540
|
$ |
154,045
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2007
|
2006
|
|||||||
Operating
Activities
|
||||||||
Net
cash provided by operating activities
|
$ |
6,399
|
$ |
5,003
|
||||
Investing
Activities
|
||||||||
Proceeds
from maturities of held-to-maturity securities
|
66
|
77
|
||||||
Proceeds
from maturities of available-for-sale securities
|
5,272
|
4,131
|
||||||
Proceeds
from sale of available-for-sale securities
|
-
|
-
|
||||||
Proceeds
from sale of real estate and other assets held for sale
|
466
|
596
|
||||||
Proceeds
from sale of property, plant and equipment
|
-
|
11
|
||||||
Net
cash received for acquisition of Huber, Harger, Welt and
Smith
|
188
|
-
|
||||||
Proceeds
from sale of non-mortgage loans
|
251
|
-
|
||||||
Purchases
of available-for-sale securities
|
(3,693 | ) | (2,591 | ) | ||||
Investment
in bank owned life insurance
|
(2,060 | ) |
-
|
|||||
Purchases
of office properties and equipment
|
(852 | ) | (1,223 | ) | ||||
Net
increase (decrease) in loans receivable
|
1,670
|
(29,273 | ) | |||||
Net
cash provided by/used in investing activities
|
1,308
|
(28,272 | ) | |||||
Financing
Activities
|
||||||||
Net
increase (decrease) in deposits and advance payments by
borrowers
|
7,630
|
12,122
|
||||||
Repayment
of Federal Home Loan Bank long-term advances
|
(217 | ) | (1,401 | ) | ||||
Net
(decrease) increase in Federal Home Loan Bank
|
||||||||
short-term
advances
|
(33,100 | ) |
5,900
|
|||||
Proceeds
from Federal Home Loan Bank long-term advances
|
-
|
-
|
||||||
Proceeds
from issuance of subordinated debentures
|
15,464
|
-
|
||||||
Decrease
in securities sold under repurchase agreements
|
(6,974 | ) | (3,393 | ) | ||||
Purchase
of common stock for treasury
|
(326 | ) | (726 | ) | ||||
Cash
dividends paid
|
(1,767 | ) | (1,663 | ) | ||||
Proceeds
from exercise of stock options
|
272
|
1,215
|
||||||
Excess
tax benefits from exercise of stock options
|
44
|
-
|
||||||
Net
cash provided by financing activities
|
(18,974 | ) |
12,054
|
|||||
(Decrease)
increase in cash and cash equivalents
|
(11,267 | ) | (11,215 | ) | ||||
Cash
and cash equivalents at beginning of period
|
50,023
|
49,256
|
||||||
Cash
and cash equivalents at end of period
|
$ |
38,756
|
$ |
38,041
|
||||
Supplemental
cash flow information:
|
||||||||
Interest
paid
|
$ |
11,900
|
$ |
9,422
|
||||
Income
taxes paid
|
$ |
-
|
$ |
-
|
||||
Transfers
from loans to other real estate owned and other
|
||||||||
assets
held for
sale
|
$ |
655
|
$ |
3,902
|
1.
|
Principles
of Consolidation
|
2.
|
Basis
of Presentation
|
2.
|
Basis
of Presentation
(continued)
|
2.
|
Basis
of Presentation
(continued)
|
2.
|
Basis
of Presentation
(continued)
|
3.
|
Stock
Compensation Plans
|
Three
months ended March 31
|
||||||||||||||||
2007
|
2006
|
|||||||||||||||
Options
Outstanding
|
Weighted
Average
Option
Prices
|
Options
Outstanding
|
Weighted
Average
Option
Prices
|
|||||||||||||
Options
outstanding, beginning of period
|
404,154
|
$ |
19.36
|
569,099
|
$ |
16.00
|
||||||||||
Forfeited
or cancelled
|
(50 | ) |
25.89
|
(7,800 | ) |
20.02
|
||||||||||
Exercised
|
(19,422 | ) |
14.01
|
104,855
|
11.59
|
|||||||||||
Granted
|
-
|
-
|
-
|
-
|
||||||||||||
Options
outstanding, end of period
|
384,682
|
$ |
19.63
|
456,444
|
$ |
16.95
|
3.
|
Stock
Compensation Plans
(continued)
|
Three
Months Ended March 31
|
||||||||
2007
|
2006
|
|||||||
Proceeds
of options exercised
|
$ |
272,146
|
$ |
1,215,491
|
||||
Related
tax benefit recognized
|
43,774
|
184,516
|
||||||
Intrinsic
value of options exercised
|
291,253
|
1,602,354
|
Outstanding
|
Exercisable
|
|||||||||||||||||||||
Range
of Exercise Prices
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||
$ |
8.25
- $12.99
|
26,000
|
$ |
11.54
|
2.4
|
26,000
|
$ |
11.54
|
||||||||||||||
$ |
13.00
- $17.99
|
156,429
|
14.30
|
3.3
|
156,429
|
14.30
|
||||||||||||||||
$ |
18.00
- $23.99
|
48,150
|
19.40
|
5.9
|
29,650
|
19.37
|
||||||||||||||||
$ |
23.00
- $27.99
|
154,103
|
26.10
|
8.1
|
32,251
|
26.57
|
||||||||||||||||
Outstanding
at period end
|
384,682
|
$ |
19.63
|
5.5
|
244,330
|
$ |
16.21
|
4.
|
Acquisitions
|
5.
|
Dividends
on Common Stock
|
6.
|
Earnings
Per Share
|
Three
months ended
March
31,
|
||||||||
2007
|
2006
|
|||||||
Numerator
for basic and diluted
earnings
per share – Net income
|
$ |
3,606
|
$ |
3,852
|
||||
Denominator:
|
||||||||
Denominator
for basic
earnings
per
share – weighted average
shares
|
7,119
|
7,005
|
||||||
Effect
of dilutive
securities:
|
||||||||
Employee
stock
options
|
110
|
177
|
||||||
Denominator
for diluted earnings per
share
– adjusted weighted average
shares
and assumed conversions
|
7,229
|
7,182
|
||||||
Basic
earnings per share from net income
|
$ |
0.51
|
$ |
0.55
|
||||
Diluted
earnings per share from
net
income
|
$ |
0.50
|
$ |
0.54
|
7.
|
Investment
Securities
|
March
31, 2007
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Available-for-Sale
Securities:
|
||||||||||||||||
U.S.
Treasury securities and
obligations
of
U.S. Government
corporations and
agencies
|
$ |
34,100
|
$ |
130
|
$ | (105 | ) | $ |
34,125
|
|||||||
Mortgage-backed
securities
|
17,824
|
31
|
(220 | ) |
17,635
|
|||||||||||
REMICs
|
3,064
|
5
|
-
|
3,069
|
||||||||||||
Collateralized
mortgage
obligations
|
20,288
|
82
|
(246 | ) |
20,124
|
|||||||||||
Trust
preferred
stock
|
8,116
|
79
|
(120 | ) |
8,075
|
|||||||||||
Obligations
of state and
political
subdivisions
|
25,833
|
374
|
(5 | ) |
26,202
|
|||||||||||
Totals
|
$ |
109,225
|
$ |
701
|
$ | (696 | ) | $ |
109,230
|
|||||||
Held-to-Maturity
Securities:
|
||||||||||||||||
FHLMC
certificates
|
$ |
267
|
$ |
7
|
$ |
-
|
$ |
274
|
||||||||
FNMA
certificates
|
563
|
4
|
-
|
567
|
||||||||||||
GNMA
certificates
|
185
|
1
|
-
|
186
|
||||||||||||
Obligations
of state and
political
subdivisions
|
360
|
38
|
-
|
398
|
||||||||||||
Totals
|
$ |
1,375
|
$ |
50
|
$ |
-
|
$ |
1,425
|
7.
|
Investment
Securities (continued)
|
Duration
of Unrealized Loss Position
|
||||||||||||||||||||||||
Less
than 12 Months
|
12
Month or Longer
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loses
|
|||||||||||||||||||
(In
Thousands)
|
||||||||||||||||||||||||
At
March 31, 2007
|
||||||||||||||||||||||||
Available-for-sale
securities:
|
||||||||||||||||||||||||
U.S.
treasury securities
and
obligations of U.S.
government
corporations
and
agencies
|
$ |
996
|
$ | (4 | ) | $ |
14,462
|
$ | (101 | ) | $ |
15,458
|
$ | (105 | ) | |||||||||
Mortgage-backed
securities
|
862
|
(6 | ) |
11,823
|
(214 | ) |
12,685
|
(220 | ) | |||||||||||||||
Collateralized
mortgage
obligations
|
-
|
-
|
15,626
|
(246 | ) |
15,626
|
(246 | ) | ||||||||||||||||
Trust
preferred stock
|
1,804
|
(120 | ) |
-
|
-
|
1,804
|
(120 | ) | ||||||||||||||||
Obligations
of state and
political
subdivisions
|
2,147
|
(4 | ) |
174
|
(1 | ) |
2,321
|
(5 | ) | |||||||||||||||
Held
to maturity securities:
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
19
|
-
|
143
|
-
|
162
|
-
|
||||||||||||||||||
Total
temporarily
impaired
securities
|
$ |
5,828
|
$ | (134 | ) | $ |
42,228
|
$ | (562 | ) | $ |
48,056
|
$ | (696 | ) |
7.
|
Investment
Securities (continued)
|
December
31, 2006
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Available-for-Sale
Securities:
|
||||||||||||||||
U.S.
Treasury securities and
obligations
of
U.S. Government
corporations and
agencies
|
$ |
36,108
|
$ |
106
|
$ | (171 | ) | $ |
36,043
|
|||||||
Mortgage-backed
securities
|
18,595
|
23
|
(276 | ) |
18,342
|
|||||||||||
REMICs
|
3,071
|
-
|
(11 | ) |
3,060
|
|||||||||||
Collateralized
mortgage
obligations
|
20,099
|
52
|
(346 | ) |
19,805
|
|||||||||||
Trust
preferred
stock
|
8,116
|
82
|
(20 | ) |
8,178
|
|||||||||||
Obligations
of state and
political
subdivisions
|
24,840
|
418
|
(4 | ) |
25,254
|
|||||||||||
Totals
|
$ |
110,829
|
$ |
681
|
$ | (828 | ) | $ |
110,682
|
|||||||
Held-to-Maturity
Securities:
|
||||||||||||||||
FHLMC
certificates
|
$ |
272
|
$ |
8
|
$ |
-
|
$ |
280
|
||||||||
FNMA
certificates
|
614
|
5
|
(4 | ) |
615
|
|||||||||||
GNMA
certificates
|
195
|
1
|
-
|
196
|
||||||||||||
Obligations
of state and
political
subdivisions
|
360
|
41
|
-
|
401
|
||||||||||||
Totals
|
$ |
1,441
|
$ |
55
|
$ | (4 | ) | $ |
1,492
|
8.
|
Loans
|
March
31,
2007
|
December
31,
2006
|
|||||||
Real
Estate:
|
||||||||
One-to-four
family
residential
|
$ |
243,632
|
$ |
250,808
|
||||
Construction
|
14,277
|
17,339
|
||||||
Non-residential
and
multi-family
|
579,463
|
579,860
|
||||||
837,372
|
848,007
|
|||||||
Other
Loans:
|
||||||||
Commercial
|
242,543
|
232,914
|
||||||
Consumer
finance
|
40,857
|
43,770
|
||||||
Home
equity and
improvement
|
123,404
|
122,789
|
||||||
406,804
|
399,473
|
|||||||
Total
real estate and other loans
|
1,244,176
|
1,247,480
|
||||||
Deduct:
|
||||||||
Loans
in process
|
6,012
|
6,409
|
||||||
Net
deferred loan origination
fees and costs
|
1,092
|
1,182
|
||||||
Allowance
for loan
loss
|
13,752
|
13,579
|
||||||
Totals
|
$ |
1,223,320
|
$ |
1,226,310
|
Three
Months ended
March
31,
|
||||||||
2007
|
2006
|
|||||||
Balance
at beginning of period
|
$ |
13,579
|
$ |
13,673
|
||||
Provision
for loan losses
|
457
|
383
|
||||||
Charge-offs:
|
||||||||
One-to-four
family residential
real estate
|
85
|
188
|
||||||
Non-residential
and multi-family
real estate
|
146
|
57
|
||||||
Commercial
|
81
|
17
|
||||||
Home
equity and
improvement
|
-
|
32
|
||||||
Consumer
finance
|
71
|
95
|
||||||
Total
charge-offs
|
383
|
389
|
||||||
Recoveries
|
99
|
181
|
||||||
Net
charge-offs
|
284
|
208
|
||||||
Balance
at end of period
|
$ |
13,752
|
$ |
13,848
|
8.
|
Loans
(continued)
|
March
31,
2007
|
December
31,
2006
|
|||||||
(in
thousands)
|
||||||||
Non-accrual
loans
|
$ |
8,211
|
$ |
7,283
|
||||
Loans
over 90 days past due and still accruing
|
-
|
-
|
||||||
Total
non-performing loans
|
8,211
|
$ |
7,283
|
|||||
Real
estate owned (REO)
|
2,581
|
2,392
|
||||||
Total
non-performing assets
|
$ |
10,792
|
$ |
9,675
|
9.
|
Deposits
|
March
31,
2007
|
December
31,
2006
|
|||||||
Non-interest-bearing
checking accounts
|
$ |
101,089
|
$ |
106,328
|
||||
Interest-bearing
checking and money market accounts
|
313,327
|
306,003
|
||||||
Savings
accounts
|
88,345
|
74,491
|
||||||
Retail
certificates of deposit less than $100,000
|
498,136
|
493,594
|
||||||
Retail
certificates of deposit greater than $100,000
|
136,248
|
140,392
|
||||||
Brokered
or national certificates of deposit
|
9,174
|
17,637
|
||||||
$ |
1,146,319
|
$ |
1,138,445
|
10.
|
Borrowings
|
March
31,
2007
|
December
31,
2006
|
|||||||
(in
thousands)
|
||||||||
FHLB
Advance:
|
||||||||
Overnight
borrowings
|
$ |
-
|
$ |
33,100
|
||||
Single
maturity fixed rate advances
|
10,000
|
10,000
|
||||||
Single
maturity LIBOR based advances
|
45,000
|
45,000
|
||||||
Putable
advances
|
45,000
|
45,000
|
||||||
Strike-rate
advances
|
27,000
|
27,000
|
||||||
Amortizable
mortgage advances
|
1,907
|
2,128
|
||||||
Total
|
$ |
128,907
|
$ |
162,228
|
||||
Junior
subordinated debentures owed to
unconsolidated
subsidiary trusts
|
$ |
36,083
|
$ |
20,619
|
||||
10.
|
Borrowings
(continued)
|
March
31,
2007
|
December
31,
2006
|
|||||||
First
Defiance Statutory Trust I due December 2035
|
$ |
20,619
|
$ |
20,619
|
||||
First
Defiance Statutory Trust II due June 2037
|
15,464
|
-
|
||||||
Total
junior subordinated debentures owned to unconsolidated subsidiary
Trusts
|
$ |
36,083
|
$ |
20,619
|
11.
|
Commitments,
Guarantees and Contingent
Liabilities
|
11.
|
Commitments,
Guarantees and Contingent Liabilities
(continued)
|
March
31,
2007
|
December
31,
2006
|
|||||||
(In
Thousands)
|
||||||||
Loan
commitments
|
$ |
265,278
|
$ |
260,349
|
||||
Standby
Letters of Credit
|
16,221
|
16,869
|
||||||
Total
|
$ |
281,499
|
$ |
277,218
|
12.
|
Postretirement
Benefits
|
Three
Months Ended
March
31,
|
||||||||
2007
|
2006
|
|||||||
Service
cost-benefits attributable
to
service during the period
|
$ |
12
|
$ |
10
|
||||
Interest
cost on accumulated
postretirement
benefit obligation
|
31
|
27
|
||||||
Net
amortization and deferral
|
11
|
8
|
||||||
Net
periodic postretirement
benefit
cost
|
$ |
54
|
$ |
45
|
13.
|
Income
Taxes
|
Three
Months Ended March 31,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest(1)
|
Rate(2)
|
Balance
|
Interest(1)
|
Rate(2)
|
|||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
receivable
|
$ |
1,226,240
|
$ |
22,308
|
7.38 | % | $ |
1,177,707
|
$ |
20,053
|
6.91 | % | ||||||||||||
Securities
|
112,999
|
1,596
|
5.72
|
114,123
|
1,481
|
5.26
|
||||||||||||||||||
Interest-earning
deposits
|
1,124
|
11
|
3.97
|
6,720
|
71
|
4.28
|
||||||||||||||||||
FHLB
stock and other
|
18,585
|
292
|
6.37
|
17,546
|
248
|
5.73
|
||||||||||||||||||
Total
interest-earning assets
|
1,358,948
|
24,207
|
7.22
|
1,316,096
|
21,853
|
6.73
|
||||||||||||||||||
Non-interest-earning
assets
|
151,228
|
143,062
|
||||||||||||||||||||||
Total
assets
|
$ |
1,510,176
|
$ |
1,459,158
|
||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ |
1,030,831
|
$ |
9,540
|
3.75 | % | $ |
973,650
|
$ |
6,823
|
2.84 | % | ||||||||||||
FHLB
advances and other
|
159,840
|
2,003
|
5.08
|
185,942
|
2,147
|
4.68
|
||||||||||||||||||
Notes
payable
|
22,501
|
169
|
3.05
|
19,808
|
132
|
2.70
|
||||||||||||||||||
Subordinated
debentures
|
20,899
|
337
|
6.54
|
20,619
|
298
|
5.86
|
||||||||||||||||||
Total
interest-bearing liabilities
|
1,234,071
|
12,049
|
3.96
|
1,200,019
|
9,400
|
3.18
|
||||||||||||||||||
Non-interest
bearing deposits
|
97,934
|
-
|
92,027
|
-
|
||||||||||||||||||||
Total
including non-interest bearing
|
||||||||||||||||||||||||
demand
deposits
|
1,332,005
|
12,049
|
3.67
|
1,292,046
|
9,400
|
2.95
|
||||||||||||||||||
Other
non-interest-bearing liabilities
|
17,043
|
14,510
|
||||||||||||||||||||||
Total
liabilities
|
1,349,048
|
1,306,556
|
||||||||||||||||||||||
Stockholders'
equity
|
161,128
|
152,602
|
||||||||||||||||||||||
Total
liabilities and stock-
|
||||||||||||||||||||||||
holders'
equity
|
$ |
1,510,176
|
$ |
1,459,158
|
||||||||||||||||||||
Net
interest income; interest
|
||||||||||||||||||||||||
rate
spread
|
$ |
12,158
|
3.26 | % | $ |
12,453
|
3.55 | % | ||||||||||||||||
Net
interest margin (3)
|
3.63 | % | 3.84 | % | ||||||||||||||||||||
Average
interest-earning assets
|
||||||||||||||||||||||||
to
average interest-bearing
|
||||||||||||||||||||||||
liabilities
|
110 | % | 110 | % |
(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.
|
March
31,
2007
|
December
31,
2006
|
|||||||
(in
thousands)
|
||||||||
Non-accrual
loans
|
$ |
8,211
|
$ |
7,283
|
||||
Loans
over 90 days past due and still accruing
|
-
|
-
|
||||||
Total
non-performing loans
|
8,211
|
$ |
7,283
|
|||||
Real
estate owned (REO)
|
2,581
|
2,392
|
||||||
Total
non-performing assets
|
$ |
10,792
|
$ |
9,675
|
||||
Allowance
for loans losses as a percentage
of
total loans
|
1.11 | % | 1.10 | % | ||||
Allowance
for loan losses as a percentage
of
non-performing assets
|
127.43 | % | 140.35 | % | ||||
Allowance
for loan losses as a percentage
of
non-performing loans
|
167.48 | % | 186.45 | % | ||||
Total
non-performing assets as a percentage
of
total assets
|
0.71 | % | 0.64 | % | ||||
Total
non-performing loans as a percentage
of
total loans
|
0.66 | % | 0.59 | % |
Core
Capital
|
Risk-Based
Capital
|
|||||||||||||||
Adequately
Capitalized
|
Well
C
apitalized
|
Adequately
Capitalized
|
Well
Capitalized
|
|||||||||||||
Regulatory
capital
|
$ |
144,149
|
$ |
144,149
|
$ |
157,901
|
$ |
157,901
|
||||||||
Minimum
required regulatory capital
|
58,980
|
73,724
|
103,612
|
129,515
|
||||||||||||
Excess
regulatory capital
|
$ |
85,169
|
$ |
70,425
|
$ |
54,289
|
$ |
28,386
|
||||||||
Regulatory
capital as a percentage of assets (1)
|
9.8 | % | 9.8 | % | 12.2 | % | 12.2 | % | ||||||||
Minimum
capital required as a percentage of assets
|
4.0 | % | 5.0 | % | 8.0 | % | 10.0 | % | ||||||||
Excess
regulatory capital as a percentage of assets
|
5.8 | % | 4.8 | % | 4.2 | % | 2.2 | % |
(1)
|
Core
capital is computed as a percentage of adjusted total assets of $1.47
billion. Risk-based capital is computed as a percentage of total
risk-weighted assets of $1.30
billion.
|
Item
1.
|
Legal
Proceedings
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
Period
|
Total
Number of
Shares
Purchased
|
Average
Price
Paid
Per
Share
|
Total
Number of
Shares
Purchased
as
Part of Publicly
Announced
Plans
or
Programs
|
Maximum
Number
of Shares
that
May Yet Be
Purchased
Under
the
Plans or
Programs
(a)
|
January
1, 2007 –
January
31, 2007
|
-
|
-
|
-
|
310,758
|
February
1, 2007 –
February
28, 2007
|
-
|
-
|
-
|
310,758
|
March
1, 2007 –
March
31, 2007
|
11,419
|
$28.56
|
8,588
|
302,170
|
Total
for 2007
First
Quarter
|
11,419
|
$28.56
|
8,588
|
302,170
|
Item
3.
|
Defaults
upon Senior Securities
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders
|
|
I.
|
Nominees
for Director with Three-year Terms Expiring in
2010:
|
NOMINEE
|
FOR
|
WITHHELD
|
||
John
L. Bookmyer
|
4,738,874
|
745,454
|
||
Stephen
L. Boomer
|
5,824,074
|
261,714
|
||
Peter
A. Diehl
|
5,668,717
|
397,478
|
||
William
J. Small
|
5,246,209
|
238,119
|
Item
5.
|
Other
Information
|
Item
6.
|
Exhibits
|
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act
|
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act
|
|
Certification
of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act
|
|
Certification
of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
Act
|
First
Defiance Financial Corp.
|
||
(Registrant)
|
||
Date: May
10, 2007
|
By:
|
/s/
William J.
Small
|
William
J. Small
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
Date: May
10, 2007
|
By:
|
/s/
John C.
Wahl
|
John
C. Wahl
|
||
Executive
Vice President, Chief
|
||
Financial
Officer and
|
||
Treasurer
|