Subjects: EARNINGS, Merger/Acquisition, Dividend, Conference Call, Webcast
First Defiance Financial Corp. Announces 2019 Third Quarter Earnings
First Defiance Financial Corp. (NASDAQ: FDEF) announced today its unaudited financial results for the three- and nine-month periods ended September 30, 2019. Net income for the third quarter ended September 30, 2019, totaled $13.2 million, or $0.66 per diluted common share compared to $11.3 million or $0.55 per diluted common share for the quarter ended September 30, 2018. Net income for the nine months ended September 30, 2019, totaled $36.9 million, or $1.85 per diluted common share compared to $34.2 million or $1.67 per diluted common share for the quarter ended September 30, 2018. The year-to-year comparison is impacted by the current year's results, including merger-related costs, which had an after tax cost of $427,000, or $0.02 per diluted share.
"Our third quarter results reflect our company's continued high financial performance," said Donald P. Hileman, President and Chief Executive Officer of First Defiance Financial Corp. "With earnings per share up 20% from the third quarter last year, our shareholders were delivered excellent results as we grew our balance sheet and maintained strong profitability."
Net Interest Income up Compared to Third Quarter 2018
Net interest income of $28.9 million in the third quarter of 2019 was up from $27.5 million in the third quarter of 2018. The increase was primarily due to the growth in earning assets offset partly by compression in the net interest margin versus the third quarter last year. The net interest margin was 3.88% for the third quarter of 2019, down from 4.03% in the second quarter of 2019 and 4.00% in the third quarter of 2018. Yield on interest earning assets increased by 15 basis points, to 4.78% in the third quarter of 2019 from 4.63% in the third quarter of 2018. The cost of interest-bearing liabilities increased by 35 basis points in the third quarter of 2019 to 1.20% from 0.85% in the third quarter of 2018.
"Our solid loan and core deposit growth helped generate growth in net interest income despite margin compression," said Hileman. "Year-to-date loan growth was 6.6% annualized while deposit growth was 7.1%. This growth combined with a net interest margin that remains healthy for the quarter produced a 5% increase in our net interest income over the third quarter last year."
Non-Interest Income up from Third Quarter 2018
First Defiance's non-interest income for the third quarter of 2019 was $11.8 million compared with $9.9 million in the third quarter of 2018. The third quarter of 2019 included gains of $11,000 from the sale of securities compared to gains of $76,000 in the third quarter of 2018. Results for the third quarter of 2019 included $325,000 of BOLI income death benefit whereas the third quarter of 2018 included no BOLI income death benefit. Total income from BOLI was $783,000 in the third quarter of 2019, up from $399,000 in the third quarter of 2018.
Mortgage banking income was $2.8 million in the third quarter of 2019, up from $1.9 million in the third quarter of 2018. Mortgage originations totaled $126.9 million in the third quarter of 2019 compared to $74.0 million in the same quarter last year. As a result of the higher volumes, gains from the sale of mortgage loans increased in the third quarter of 2019 to $2.6 million from $1.3 million in the third quarter of 2018. Mortgage loan servicing revenue was $960,000 in the third quarter of 2019, up from $929,000 in the third quarter of 2018, and amortization of mortgage servicing rights increased to $579,000 from $340,000 in the third quarter last year. Valuation adjustments in the third quarter of 2019 were a negative $155,000 compared to a positive $8,000 in the third quarter of 2018.
Service fees and other charges were $4.0 million in the third quarter of 2019, up from $3.3 million in the third quarter of 2018. Insurance commissions and trust income for the third quarters 2019 and 2018 were consistent year over year at $3.3 million and $0.5 million, respectively.
"Key business lines drove our 16% growth in non-interest income over the third quarter last year, excluding BOLI death benefits," said Hileman. "This growth was led by a 50% increase in mortgage banking and a 21% increase in services fees year over year."
Non-Interest Expenses up from Third Quarter 2018
Total non-interest expense was $23.2 million in the third quarter of 2019, an increase from $22.3 million in the third quarter of 2018. Compensation and benefits increased to $14.1 million in the third quarter of 2019, compared to $12.9 million in the third quarter of 2018. Occupancy expense and data processing expense were $2.2 million and $1.7 million, respectively, in the third quarter of 2019, compared to $2.2 million and $2.2 million, respectively, in the third quarter of 2018. Other non-interest expense of $4.1 million in the third quarter of 2019 was up from $4.0 million in the third quarter of 2018. FDIC insurance premiums were a credit of $255,000 in the third quarter of 2019 compared to an expense of $255,000 in the third quarter of 2018 due to the receipt of small bank assessment credits. In addition, merger-related costs totaled $540,000 in the third quarter of 2019 compared to none in the prior year.
Credit Quality
Non-performing loans totaled $14.7 million at September 30, 2019, a decrease from $20.9 million at September 30, 2018. In addition, First Defiance had no real estate owned at September 30, 2019, compared to $1.7 million at September 30, 2018. Accruing troubled debt restructured loans were $10.3 million at September 30, 2019, compared with $12.6 million at September 30, 2018.
The third quarter 2019 results include net charge-offs of $11,000 and a provision for loan losses of $1.3 million compared with net charge-offs of $1.1 million and a provision of $1.4 million for the same period in 2018. The allowance for loan loss as a percentage of total loans was 1.13% at September 30, 2019, consistent with 1.13% at September 30, 2018.
"We continue to be pleased with the steady improvement in our non-performing assets," said Hileman. "Total non-performing assets including troubled debt restructurings declined 29% from last year, now representing only 0.74% of assets compared to 1.18% a year ago."
Year-To-Date Results
For the nine-month period ended September 30, 2019, net income totaled $36.9 million, or $1.85 per diluted common share, compared to $34.2 million, or $1.67 per diluted common share for the nine months ended September 30, 2018. The year-to-year comparison is impacted by the prior year's results, including a significant loan recovery and a loan loss provision expense of $704,000, which had an after-tax cost of $556,000, or $0.03 per diluted share. The first nine months of 2019 included a provision for loan losses expense of $1,821,000, which had an after-tax cost of $1,439,000, or $0.07 per diluted share.
Net interest income was $86.2 million for the first nine months of 2019 compared with $79.8 million in the first nine months of 2018. Average interest-earning assets increased to $2.92 billion in the first nine months of 2019 compared to $2.71 billion in the first nine months of 2018. Net interest margin for the first nine months of 2019 was 3.98%, up one basis point from the 3.97% margin reported in the nine-month period ended September 30, 2018.
Non-interest income for the first nine months of 2019 was $33.1 million compared to $30.8 million during the same period of 2018. Results for the first nine months of 2019 included $418,000 of BOLI income death benefit compared to $168,000 for the same period in 2018.
Service fees and other charges were $10.3 million for the first nine months of 2019, up from $9.8 million during the same period of 2018. Mortgage banking income was $6.8 million for the first nine months of 2019 compared with $5.6 million during the same period of 2018. Insurance commissions were $11.0 million for the first nine months of 2019 consistent with $11.0 million for the same period of 2018. Non-interest income for the first nine months of 2019 included $11,000 of gains from the sale of securities compared with securities gains of $76,000 during the same period of 2018.
Non-interest expense was $72.3 million for the first nine months of 2019, up from $68.2 million for the same period of 2018. Compensation and benefits expense was $42.5 million for the first nine months of 2019 compared with $39.0 million during the same period of 2018. Expenses also included increases in occupancy of $500,000, merger-related costs of $540,000 and other expenses of $217,000. FDIC insurance premiums were $276,000 for the first nine months of 2019 compared to $817,000 during the same period of 2018 due to the receipt of small bank assessment credits in the third quarter of 2019.
Total Assets at $3.35 Billion
Total assets at September 30, 2019, were $3.35 billion compared to $3.18 billion at December 31, 2018, and $3.10 billion at September 30, 2018. Net loans receivable (excluding loans held for sale) were $2.64 billion at September 30, 2019, compared to $2.51 billion at December 31, 2018, and $2.43 billion at September 30, 2018. Also, at September 30, 2019, goodwill and other intangible assets totaled $104.1 million compared to $103.0 million at December 31, 2018, and $103.3 million at September 30, 2018. Total deposits at September 30, 2019, were $2.76 billion compared with $2.62 billion at December 31, 2018, and $2.52 billion at September 30, 2018.
Total stockholders' equity was $418.0 million at September 30, 2019, compared to $399.6 million at December 31, 2018, and $393.5 million at September 30, 2018. The change in stockholders' equity from year-end 2018 was impacted by the company's repurchase of 515,000 shares of its common stock for $15.1 million during the first quarter of 2019. During the quarter ended June 30, 2019, the company announced a new 500,000 share repurchase plan authorization with all such shares available for repurchase as of September 30, 2019.
Strategic Mergers and Acquisitions
On September 9, 2019, First Defiance and United Community Financial Corp. (NASDAQ: UCFC) ("United Community") announced the signing of a definitive merger agreement under which United Community will merge into First Defiance in a stock-for-stock transaction. Under the terms of the merger agreement, shareholders of United Community will receive 0.3715 shares of First Defiance common stock for each share of United Community common stock. The merger combines two complementary banking platforms, and First Defiance and United Community consider this partnership an ideal strategic, financial and operational fit, particularly given their respective strong and consistent performance over time. The pro forma combined company will have approximately $6.1 billion in assets, $5.0 billion in loans and $4.9 billion in deposits, utilizing financial information as of June 30, 2019. It will leverage the respective strengths of each institution in commercial banking, residential lending, retail banking, insurance and wealth management and better position the combined company to serve the geographies of Ohio, Michigan, Indiana, Pennsylvania and West Virginia with increased scale and expanded product offerings. The transaction is expected to close early in the first quarter of 2020, subject to the approval of shareholders of both First Defiance and United Community and regulatory approvals, as well as satisfaction or waiver of other customary closing conditions.
On September 30, 2019, First Defiance, through its wholly owned subsidiary First Federal Bank of the Midwest ("First Federal Bank"), completed the acquisition of Strategic Investment Advisors, LLC ("SIA"), a financial advisory and brokerage firm. Located in Sylvania, Ohio, with assets under management of approximately $115 million and annual revenues of approximately $0.6 million, SIA will be added to First Federal Bank's Trust and Wealth Management platform.
Dividend to be Paid November 22
The Board of Directors declared a quarterly cash dividend of $0.22 per common share payable November 22, 2019, to shareholders of record at the close of business on November 15, 2019. This represents an increase of 15.8% from the prior quarter and 29.4% from the prior year. The dividend represents an annual dividend of 3.02 percent based on the First Defiance common stock closing price on October 18, 2019. First Defiance has approximately 19,728,588 common shares outstanding.
Conference Call
First Defiance Financial Corp. will host a conference call at 11:00 a.m. ET on Tuesday, October 22, 2019, to discuss the earnings results and business trends. The conference call may be accessed by calling 1-877-444-1726. In addition, a live webcast may be accessed at https://services.choruscall.com/links/fdef191022.html. The replay of the conference call webcast will be available at www.fdef.com until October 21, 2020, at 9:00 a.m. ET.
First Defiance Financial Corp.
First Defiance Financial Corp. (NASDAQ:FDEF), headquartered in Defiance, Ohio, is the holding company for First Federal Bank of the Midwest and First Insurance Group. First Federal Bank operates 44 full-service branches in northwest and central Ohio, southeast Michigan and northeast Indiana and a loan production office in Ann Arbor, Michigan. First Insurance Group is a full-service insurance agency with nine offices throughout northwest Ohio.
For more information, visit the company's website at www.fdef.com.
-Financial Statements and Highlights Follow-
Safe Harbor Statement
This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Act of 1934, as amended, which are intended to be safe harbors created thereby. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of First Defiance Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions, the nature, extent and timing of governmental actions and reforms, future movements of interest rates, the production levels of mortgage loan generation, the ability to continue to grow loans and deposits, the ability to benefit from a changing interest rate environment, the ability to sustain credit quality ratios at current or improved levels, the ability to sell real estate owned properties, continued strength in the market area for First Federal Bank of the Midwest, and the ability to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including those inherent in general and local banking, insurance and mortgage conditions, competitive factors specific to markets in which First Defiance and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions or capital market conditions and other risks and uncertainties detailed from time to time in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the year ended December 31, 2018. One or more of these factors have affected or could in the future affect First Defiance's business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by First Defiance or any other persons, that our objectives and plans will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of First Defiance. We assume no obligation to update any forward-looking statements.
As required by U.S. GAAP, First Defiance will evaluate the impact of subsequent events through the issuance date of its September 30, 2019, consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause First Defiance to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.
| Consolidated Balance Sheets (Unaudited) | ||||||||
| First Defiance Financial Corp. | ||||||||
September 30, |
|
December 31, |
||||||
| (in thousands) | 2019 |
|
2018 |
|||||
| Assets | ||||||||
| Cash and cash equivalents | ||||||||
| Cash and amounts due from depository institutions | $ |
56,994 |
|
$ |
55,962 |
|
||
| Interest-bearing deposits |
|
55,000 |
|
|
43,000 |
|
||
|
111,994 |
|
|
98,962 |
|
|||
| Securities | ||||||||
| Available-for sale, carried at fair value |
|
290,054 |
|
|
294,076 |
|
||
| Held-to-maturity, carried at amortized cost |
|
481 |
|
|
526 |
|
||
|
290,535 |
|
|
294,602 |
|
|||
| Loans |
|
2,665,300 |
|
|
2,540,039 |
|
||
| Allowance for loan losses |
|
(30,250 |
) |
|
(28,331 |
) |
||
| Loans, net |
|
2,635,050 |
|
|
2,511,708 |
|
||
| Loans held for sale |
|
22,909 |
|
|
6,613 |
|
||
| Mortgage servicing rights |
|
9,859 |
|
|
10,119 |
|
||
| Accrued interest receivable |
|
11,386 |
|
|
9,641 |
|
||
| Federal Home Loan Bank stock |
|
11,915 |
|
|
14,217 |
|
||
| Bank Owned Life Insurance |
|
75,088 |
|
|
67,660 |
|
||
| Office properties and equipment |
|
39,911 |
|
|
40,670 |
|
||
| Real estate and other assets held for sale |
|
- |
|
|
1,205 |
|
||
| Goodwill |
|
100,069 |
|
|
98,569 |
|
||
| Core deposit and other intangibles |
|
4,052 |
|
|
4,391 |
|
||
| Other assets |
|
37,956 |
|
|
23,365 |
|
||
| Total Assets | $ |
3,350,724 |
|
$ |
3,181,722 |
|
||
| Liabilities and Stockholders' Equity | ||||||||
| Non-interest-bearing deposits | $ |
604,129 |
|
$ |
607,198 |
|
||
| Interest-bearing deposits |
|
2,156,486 |
|
|
2,013,684 |
|
||
| Total deposits |
|
2,760,615 |
|
|
2,620,882 |
|
||
| Advances from Federal Home Loan Bank |
|
85,095 |
|
|
85,189 |
|
||
| Notes payable and other interest-bearing liabilities |
|
2,851 |
|
|
5,741 |
|
||
| Subordinated debentures |
|
36,083 |
|
|
36,083 |
|
||
| Advance payments by borrowers for tax and insurance |
|
5,504 |
|
|
3,652 |
|
||
| Deferred taxes |
|
1,871 |
|
|
264 |
|
||
| Other liabilities |
|
40,659 |
|
|
30,322 |
|
||
| Total Liabilities |
|
2,932,678 |
|
|
2,782,133 |
|
||
| Stockholders' Equity | ||||||||
| Preferred stock |
|
- |
|
|
- |
|
||
| Common stock, net |
|
127 |
|
|
127 |
|
||
| Additional paid-in-capital |
|
161,577 |
|
|
161,593 |
|
||
| Accumulated other comprehensive income (loss) |
|
5,101 |
|
|
(2,148 |
) |
||
| Retained earnings |
|
321,736 |
|
|
295,588 |
|
||
| Treasury stock, at cost |
|
(70,495 |
) |
|
(55,571 |
) |
||
| Total stockholders' equity |
|
418,046 |
|
|
399,589 |
|
||
| Total Liabilities and Stockholders' Equity | $ |
3,350,724 |
|
$ |
3,181,722 |
|
||
| Consolidated Statements of Income (Unaudited) | |||||||||||||
| First Defiance Financial Corp. | |||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||
September 30, |
|
September 30, |
|||||||||||
| (in thousands, except per share amounts) | 2019 |
|
2018 |
|
2019 |
|
2018 |
||||||
| Interest Income: | |||||||||||||
| Loans | $ |
33,284 |
|
$ |
29,371 |
$ |
97,158 |
$ |
83,557 |
||||
| Investment securities |
|
1,952 |
|
|
2,077 |
|
6,295 |
|
5,967 |
||||
| Interest-bearing deposits |
|
312 |
|
|
275 |
|
857 |
|
945 |
||||
| FHLB stock dividends |
|
135 |
|
|
240 |
|
533 |
|
698 |
||||
| Total interest income |
|
35,683 |
|
|
31,963 |
|
104,843 |
|
91,167 |
||||
| Interest Expense: | |||||||||||||
| Deposits |
|
6,029 |
|
|
3,753 |
|
16,615 |
|
9,508 |
||||
| FHLB advances and other |
|
431 |
|
|
342 |
|
1,011 |
|
943 |
||||
| Subordinated debentures |
|
329 |
|
|
334 |
|
1,043 |
|
934 |
||||
| Notes Payable |
|
2 |
|
|
5 |
|
23 |
|
19 |
||||
| Total interest expense |
|
6,791 |
|
|
4,434 |
|
18,692 |
|
11,404 |
||||
| Net interest income |
|
28,892 |
|
|
27,529 |
|
86,151 |
|
79,763 |
||||
| Provision for loan losses |
|
1,327 |
|
|
1,376 |
|
1,821 |
|
704 |
||||
| Net interest income after provision for loan losses |
|
27,565 |
|
|
26,153 |
|
84,330 |
|
79,059 |
||||
| Non-interest Income: | |||||||||||||
| Service fees and other charges |
|
4,027 |
|
|
3,335 |
|
10,335 |
|
9,762 |
||||
| Mortgage banking income |
|
2,822 |
|
|
1,877 |
|
6,800 |
|
5,632 |
||||
| Gain on sale of non-mortgage loans |
|
105 |
|
|
33 |
|
215 |
|
300 |
||||
| Gain on sale of securities |
|
11 |
|
|
76 |
|
11 |
|
76 |
||||
| Insurance commissions |
|
3,263 |
|
|
3,254 |
|
10,994 |
|
11,024 |
||||
| Trust income |
|
511 |
|
|
514 |
|
1,510 |
|
1,588 |
||||
| Income from Bank Owned Life Insurance |
|
783 |
|
|
399 |
|
1,702 |
|
1,365 |
||||
| Other non-interest income |
|
320 |
|
|
434 |
|
1,574 |
|
1,092 |
||||
| Total Non-interest Income |
|
11,842 |
|
|
9,922 |
|
33,141 |
|
30,839 |
||||
| Non-interest Expense: | |||||||||||||
| Compensation and benefits |
|
14,061 |
|
|
12,882 |
|
42,544 |
|
39,016 |
||||
| Occupancy |
|
2,206 |
|
|
2,154 |
|
6,751 |
|
6,251 |
||||
| FDIC insurance premium |
|
(255 |
) |
|
255 |
|
276 |
|
817 |
||||
| Financial institutions tax |
|
555 |
|
|
531 |
|
1,667 |
|
1,593 |
||||
| Data processing |
|
1,728 |
|
|
2,161 |
|
6,292 |
|
6,349 |
||||
| One time acquisition related charges |
|
540 |
|
|
- |
|
540 |
|
- |
||||
| Amortization of intangibles |
|
264 |
|
|
319 |
|
839 |
|
998 |
||||
| Other non-interest expense |
|
4,104 |
|
|
3,984 |
|
13,395 |
|
13,178 |
||||
| Total Non-interest Expense |
|
23,203 |
|
|
22,286 |
|
72,304 |
|
68,202 |
||||
| Income before income taxes |
|
16,204 |
|
|
13,789 |
|
45,167 |
|
41,696 |
||||
| Income taxes |
|
3,033 |
|
|
2,483 |
|
8,315 |
|
7,544 |
||||
| Net Income | $ |
13,171 |
|
$ |
11,306 |
$ |
36,852 |
$ |
34,152 |
||||
| Earnings per common share: | |||||||||||||
| Basic | $ |
0.67 |
|
$ |
0.55 |
$ |
1.86 |
$ |
1.68 |
||||
| Diluted | $ |
0.66 |
|
$ |
0.55 |
$ |
1.85 |
$ |
1.67 |
||||
| Average Shares Outstanding: | |||||||||||||
| Basic |
|
19,790 |
|
|
20,400 |
|
19,862 |
|
20,373 |
||||
| Diluted |
|
19,875 |
|
|
20,467 |
|
19,943 |
|
20,465 |
||||
| Financial Summary and Comparison (Unaudited) | ||||||||||||||||||||||
| First Defiance Financial Corp. | ||||||||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
September 30, |
|
September 30, |
||||||||||||||||||||
| (dollars in thousands, except per share data) | 2019 |
|
2018 |
|
% change |
|
2019 |
|
2018 |
|
% change |
|||||||||||
| Summary of Operations | ||||||||||||||||||||||
| Tax-equivalent interest income (2) | $ |
35,922 |
|
$ |
32,220 |
|
11.5 |
% |
$ |
105,578 |
|
$ |
91,913 |
|
14.9 |
% |
||||||
| Interest expense |
|
6,791 |
|
|
4,434 |
|
53.2 |
|
|
18,692 |
|
|
11,404 |
|
63.9 |
|
||||||
| Tax-equivalent net interest income (2) |
|
29,131 |
|
|
27,786 |
|
4.8 |
|
|
86,886 |
|
|
80,509 |
|
7.9 |
|
||||||
| Provision for loan losses |
|
1,327 |
|
|
1,376 |
|
(3.6 |
) |
|
1,821 |
|
|
704 |
|
158.7 |
|
||||||
| Tax-equivalent NII after provision for loan loss (2) |
|
27,804 |
|
|
26,410 |
|
5.3 |
|
|
85,065 |
|
|
79,805 |
|
6.6 |
|
||||||
| Investment securities gains |
|
11 |
|
|
76 |
|
- |
|
|
11 |
|
|
76 |
|
- |
|
||||||
| Non-interest income (excluding securities gains/losses) |
|
11,831 |
|
|
9,846 |
|
20.2 |
|
|
33,130 |
|
|
30,763 |
|
7.7 |
|
||||||
| Non-interest expense |
|
23,203 |
|
|
22,286 |
|
4.1 |
|
|
72,304 |
|
|
68,202 |
|
6.0 |
|
||||||
| Income taxes |
|
3,033 |
|
|
2,483 |
|
22.2 |
|
|
8,315 |
|
|
7,544 |
|
10.2 |
|
||||||
| Net Income |
|
13,171 |
|
|
11,306 |
|
16.5 |
|
|
36,852 |
|
|
34,152 |
|
7.9 |
|
||||||
| Tax equivalent adjustment (2) |
|
239 |
|
|
257 |
|
(7.0 |
) |
|
735 |
|
|
746 |
|
(1.5 |
) |
||||||
| At Period End | ||||||||||||||||||||||
| Assets |
|
3,350,724 |
|
|
3,098,093 |
|
8.2 |
|
||||||||||||||
| Earning assets |
|
3,045,659 |
|
|
2,810,624 |
|
8.4 |
|
||||||||||||||
| Loans |
|
2,665,300 |
|
|
2,456,357 |
|
8.5 |
|
||||||||||||||
| Allowance for loan losses |
|
30,250 |
|
|
27,639 |
|
9.4 |
|
||||||||||||||
| Deposits |
|
2,760,615 |
|
|
2,524,431 |
|
9.4 |
|
||||||||||||||
| Stockholders' equity |
|
418,046 |
|
|
393,457 |
|
6.2 |
|
||||||||||||||
| Average Balances | ||||||||||||||||||||||
| Assets |
|
3,303,013 |
|
|
3,059,225 |
|
8.0 |
|
|
3,236,674 |
|
|
3,018,632 |
|
7.2 |
|
||||||
| Earning assets |
|
2,985,498 |
|
|
2,754,561 |
|
8.4 |
|
|
2,923,809 |
|
|
2,710,998 |
|
7.8 |
|
||||||
| Loans |
|
2,624,314 |
|
|
2,403,932 |
|
9.2 |
|
|
2,567,646 |
|
|
2,352,514 |
|
9.1 |
|
||||||
| Deposits and interest-bearing liabilities |
|
2,843,079 |
|
|
2,633,054 |
|
8.0 |
|
|
2,788,974 |
|
|
2,599,540 |
|
7.3 |
|
||||||
| Deposits |
|
2,718,632 |
|
|
2,513,708 |
|
8.2 |
|
|
2,679,616 |
|
|
2,478,526 |
|
8.1 |
|
||||||
| Stockholders' equity |
|
411,041 |
|
|
389,361 |
|
5.6 |
|
|
401,597 |
|
|
381,506 |
|
5.3 |
|
||||||
| Stockholders' equity / assets |
|
12.44 |
% |
|
12.73 |
% |
(2.2 |
) |
|
12.41 |
% |
|
12.64 |
% |
(1.8 |
) |
||||||
| Per Common Share Data | ||||||||||||||||||||||
| Net Income | ||||||||||||||||||||||
| Basic | $ |
0.67 |
|
$ |
0.55 |
|
21.8 |
|
$ |
1.86 |
|
$ |
1.68 |
|
10.7 |
|
||||||
| Diluted |
|
0.66 |
|
|
0.55 |
|
20.0 |
|
|
1.85 |
|
|
1.67 |
|
10.8 |
|
||||||
| Dividends |
|
0.19 |
|
|
0.17 |
|
11.8 |
|
|
0.57 |
|
|
0.47 |
|
21.3 |
|
||||||
| Market Value: | ||||||||||||||||||||||
| High | $ |
29.44 |
|
$ |
35.00 |
|
(15.9 |
) |
$ |
31.30 |
|
$ |
35.00 |
|
(10.6 |
) |
||||||
| Low |
|
25.50 |
|
|
29.61 |
|
(13.9 |
) |
|
24.12 |
|
|
25.51 |
|
(5.4 |
) |
||||||
| Close |
|
28.97 |
|
|
30.11 |
|
(3.8 |
) |
|
28.97 |
|
|
30.11 |
|
(3.8 |
) |
||||||
| Common Book Value |
|
21.19 |
|
|
19.29 |
|
9.8 |
|
|
21.19 |
|
|
19.29 |
|
9.8 |
|
||||||
| Tangible Common Book Value (1) |
|
15.91 |
|
|
14.23 |
|
11.8 |
|
|
15.91 |
|
|
14.23 |
|
11.8 |
|
||||||
| Shares outstanding, end of period (000) |
|
19,729 |
|
|
20,396 |
|
(3.3 |
) |
|
19,729 |
|
|
20,396 |
|
(3.3 |
) |
||||||
| Performance Ratios (annualized) | ||||||||||||||||||||||
| Tax-equivalent net interest margin (2) |
|
3.88 |
% |
|
4.00 |
% |
(2.9 |
) |
|
3.98 |
% |
|
3.97 |
% |
0.2 |
|
||||||
| Return on average assets |
|
1.58 |
% |
|
1.47 |
% |
7.9 |
|
|
1.52 |
% |
|
1.51 |
% |
0.6 |
|
||||||
| Return on average equity |
|
12.71 |
% |
|
11.52 |
% |
10.4 |
|
|
12.27 |
% |
|
11.97 |
% |
2.5 |
|
||||||
| Efficiency ratio (3) |
|
56.65 |
% |
|
59.22 |
% |
(4.3 |
) |
|
60.25 |
% |
|
61.29 |
% |
(1.7 |
) |
||||||
| Effective tax rate |
|
18.72 |
% |
|
18.01 |
% |
3.9 |
|
|
18.41 |
% |
|
18.09 |
% |
1.7 |
|
||||||
| Dividend payout ratio (basic) |
|
28.36 |
% |
|
30.91 |
% |
(8.3 |
) |
|
30.65 |
% |
|
27.98 |
% |
9.5 |
|
||||||
(1) |
Tangible common book value = total stockholders' equity less the sum of goodwill, core deposit and other intangibles, and preferred stock divided by shares outstanding at the end of the period. | ||||||
(2) |
|
Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 21% | |||||
(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 | |||||||
| Income from Mortgage Banking | ||||||||||||||||
| Revenue from sales and servicing of mortgage loans consisted of the following: | ||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
September 30, |
|
September 30, |
||||||||||||||
| (dollars in thousands) | 2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
| Gain from sale of mortgage loans | $ |
2,596 |
|
$ |
1,280 |
|
$ |
5,672 |
|
$ |
3,744 |
|
||||
| Mortgage loan servicing revenue (expense): | ||||||||||||||||
| Mortgage loan servicing revenue |
|
960 |
|
|
929 |
|
|
2,842 |
|
|
2,806 |
|
||||
| Amortization of mortgage servicing rights |
|
(579 |
) |
|
(340 |
) |
|
(1,256 |
) |
|
(1,009 |
) |
||||
| Mortgage servicing rights valuation adjustments |
|
(155 |
) |
|
8 |
|
|
(458 |
) |
|
91 |
|
||||
|
226 |
|
|
597 |
|
|
1,128 |
|
|
1,888 |
|
|||||
| Total revenue from sale and servicing of mortgage loans | $ |
2,822 |
|
$ |
1,877 |
|
$ |
6,800 |
|
$ |
5,632 |
|
||||
| Yield Analysis | ||||||||||||||||||||||||
| First Defiance Financial Corp. | ||||||||||||||||||||||||
Three Months Ended September 30, |
||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||
2019 |
|
2018 |
||||||||||||||||||||||
Average |
|
|
|
Yield |
|
Average |
|
|
|
Yield |
||||||||||||||
Balance |
|
Interest(1) |
|
Rate(2) |
|
Balance |
|
Interest(1) |
|
Rate(2) |
||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable | $ |
2,624,314 |
$ |
33,306 |
5.04 |
% |
$ |
2,403,932 |
$ |
29,397 |
4.85 |
% |
||||||||||||
| Securities |
|
293,876 |
|
2,169 |
2.99 |
% |
(3 |
) |
|
286,507 |
|
2,308 |
3.16 |
% |
(3 |
) |
||||||||
| Interest Bearing Deposits |
|
55,393 |
|
312 |
2.23 |
% |
|
49,734 |
|
275 |
2.19 |
% |
||||||||||||
| FHLB stock |
|
11,915 |
|
135 |
4.50 |
% |
|
14,388 |
|
240 |
6.62 |
% |
||||||||||||
| Total interest-earning assets |
|
2,985,498 |
|
35,922 |
4.78 |
% |
|
2,754,561 |
|
32,220 |
4.63 |
% |
||||||||||||
| Non-interest-earning assets |
|
317,515 |
|
304,664 |
||||||||||||||||||||
| Total assets | $ |
3,303,013 |
$ |
3,059,225 |
||||||||||||||||||||
| Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest bearing deposits | $ |
2,129,306 |
$ |
6,029 |
1.12 |
% |
$ |
1,955,518 |
$ |
3,753 |
0.76 |
% |
||||||||||||
| FHLB advances and other |
|
85,339 |
|
431 |
2.00 |
% |
|
77,719 |
|
342 |
1.75 |
% |
||||||||||||
| Subordinated debentures |
|
36,083 |
|
329 |
3.62 |
% |
|
36,196 |
|
334 |
3.66 |
% |
||||||||||||
| Notes payable |
|
3,025 |
|
2 |
0.26 |
% |
|
5,431 |
|
5 |
0.37 |
% |
||||||||||||
| Total interest-bearing liabilities |
|
2,253,753 |
|
6,791 |
1.20 |
% |
|
2,074,864 |
|
4,434 |
0.85 |
% |
||||||||||||
| Non-interest bearing deposits |
|
589,326 |
|
- |
- |
|
|
558,190 |
|
- |
- |
|
||||||||||||
| Total including non-interest-bearing demand deposits |
|
2,843,079 |
|
6,791 |
0.95 |
% |
|
2,633,054 |
|
4,434 |
0.67 |
% |
||||||||||||
| Other non-interest-bearing liabilities |
|
48,893 |
|
36,810 |
||||||||||||||||||||
| Total liabilities |
|
2,891,972 |
|
2,669,864 |
||||||||||||||||||||
| Stockholders' equity |
|
411,041 |
|
389,361 |
||||||||||||||||||||
| Total liabilities and stockholders' equity | $ |
3,303,013 |
$ |
3,059,225 |
||||||||||||||||||||
| Net interest income; interest rate spread | $ |
29,131 |
3.58 |
% |
$ |
27,786 |
3.78 |
% |
||||||||||||||||
| Net interest margin (4) | 3.88 |
% |
4.00 |
% |
||||||||||||||||||||
| Average interest-earning assets to average interest bearing liabilities | 132 |
% |
133 |
% |
||||||||||||||||||||
Nine Months Ended September 30, |
||||||||||||||||||||||||
2019 |
|
2018 |
||||||||||||||||||||||
| Average | Yield | Average | Yield | |||||||||||||||||||||
| Balance | Interest(1) | Rate | Balance | Interest(1) | Rate | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable | $ |
2,567,646 |
$ |
97,227 |
5.06 |
% |
$ |
2,352,514 |
$ |
83,633 |
4.75 |
% |
||||||||||||
| Securities |
|
296,312 |
|
6,961 |
3.14 |
% |
(3 |
) |
|
276,745 |
|
6,637 |
3.21 |
% |
(3 |
) |
||||||||
| Interest Bearing Deposits |
|
47,360 |
|
857 |
2.42 |
% |
|
66,283 |
|
945 |
1.91 |
% |
||||||||||||
| FHLB stock |
|
12,491 |
|
533 |
5.71 |
% |
|
15,456 |
|
698 |
6.04 |
% |
||||||||||||
| Total interest-earning assets |
|
2,923,809 |
|
105,578 |
4.83 |
% |
|
2,710,998 |
|
91,913 |
4.53 |
% |
||||||||||||
| Non-interest-earning assets |
|
312,865 |
|
307,634 |
||||||||||||||||||||
| Total assets | $ |
3,236,674 |
$ |
3,018,632 |
||||||||||||||||||||
| Deposits and Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest bearing deposits | $ |
2,094,693 |
$ |
16,615 |
1.06 |
% |
$ |
1,925,972 |
$ |
9,508 |
0.66 |
% |
||||||||||||
| FHLB advances and other |
|
68,920 |
|
1,011 |
1.96 |
% |
|
74,634 |
|
943 |
1.69 |
% |
||||||||||||
| Subordinated debentures |
|
36,083 |
|
1,043 |
3.86 |
% |
|
36,195 |
|
934 |
3.45 |
% |
||||||||||||
| Notes payable |
|
4,355 |
|
23 |
0.71 |
% |
|
10,185 |
|
19 |
0.25 |
% |
||||||||||||
| Total interest-bearing liabilities |
|
2,204,051 |
|
18,692 |
1.13 |
% |
|
2,046,986 |
|
11,404 |
0.74 |
% |
||||||||||||
| Non-interest bearing deposits |
|
584,923 |
|
- |
- |
|
|
552,554 |
|
- |
- |
|
||||||||||||
| Total including non-interest-bearing demand deposits |
|
2,788,974 |
|
18,692 |
0.90 |
% |
|
2,599,540 |
|
11,404 |
0.59 |
% |
||||||||||||
| Other non-interest-bearing liabilities |
|
46,103 |
|
37,586 |
||||||||||||||||||||
| Total liabilities |
|
2,835,077 |
|
2,637,126 |
||||||||||||||||||||
| Stockholders' equity |
|
401,597 |
|
381,506 |
||||||||||||||||||||
| Total liabilities and stockholders' equity | $ |
3,236,674 |
$ |
3,018,632 |
||||||||||||||||||||
| Net interest income; interest rate spread | $ |
86,886 |
3.70 |
% |
$ |
80,509 |
3.79 |
% |
||||||||||||||||
| Net interest margin (4) | 3.98 |
% |
3.97 |
% |
||||||||||||||||||||
| Average interest-earning assets to average interest bearing liabilities | 133 |
% |
132 |
% |
||||||||||||||||||||
(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 21%. | ||||||||||||
(2) |
Annualized. | ||||||||||||
(3) |
Securities yield = annualized interest income divided by the average balance of securities, excluding average unrealized gains/losses. | ||||||||||||
(4) |
Net interest margin is tax equivalent net interest income divided by average interest-earning assets. | ||||||||||||
| Selected Quarterly Information | ||||||||||||||||||||
| First Defiance Financial Corp. | ||||||||||||||||||||
| (dollars in thousands, except per share data) | 3rd Qtr 2019 |
|
2nd Qtr 2019 |
|
1st Qtr 2019 |
|
4th Qtr 2018 |
|
3rd Qtr 2018 |
|||||||||||
| Summary of Operations | ||||||||||||||||||||
| Tax-equivalent interest income (1) | $ |
35,922 |
|
$ |
35,490 |
|
$ |
34,166 |
|
$ |
33,808 |
|
$ |
32,220 |
|
|||||
| Interest expense |
|
6,791 |
|
|
6,252 |
|
|
5,649 |
|
|
5,058 |
|
|
4,434 |
|
|||||
| Tax-equivalent net interest income (1) |
|
29,131 |
|
|
29,238 |
|
|
28,517 |
|
|
28,750 |
|
|
27,786 |
|
|||||
| Provision for loan losses |
|
1,327 |
|
|
282 |
|
|
212 |
|
|
472 |
|
|
1,376 |
|
|||||
| Tax-equivalent NII after provision for loan losses (1) |
|
27,804 |
|
|
28,956 |
|
|
28,305 |
|
|
28,278 |
|
|
26,410 |
|
|||||
| Investment securities gains, net of impairment |
|
11 |
|
|
- |
|
|
- |
|
|
97 |
|
|
76 |
|
|||||
| Non-interest income (excluding securities gains/losses) |
|
11,831 |
|
|
10,486 |
|
|
10,813 |
|
|
8,272 |
|
|
9,846 |
|
|||||
| Non-interest expense |
|
23,203 |
|
|
24,235 |
|
|
24,866 |
|
|
21,210 |
|
|
22,286 |
|
|||||
| Income taxes |
|
3,033 |
|
|
2,759 |
|
|
2,523 |
|
|
3,082 |
|
|
2,483 |
|
|||||
| Net income |
|
13,171 |
|
|
12,199 |
|
|
11,482 |
|
|
12,097 |
|
|
11,306 |
|
|||||
| Tax equivalent adjustment (1) |
|
239 |
|
|
249 |
|
|
247 |
|
|
258 |
|
|
257 |
|
|||||
| At Period End | ||||||||||||||||||||
| Total assets | $ |
3,350,724 |
|
$ |
3,277,552 |
|
$ |
3,221,249 |
|
$ |
3,181,722 |
|
$ |
3,098,093 |
|
|||||
| Earning assets |
|
3,045,659 |
|
|
2,980,243 |
|
|
2,934,860 |
|
|
2,898,471 |
|
|
2,810,624 |
|
|||||
| Loans |
|
2,665,300 |
|
|
2,624,219 |
|
|
2,548,968 |
|
|
2,540,039 |
|
|
2,456,357 |
|
|||||
| Allowance for loan losses |
|
30,250 |
|
|
28,934 |
|
|
28,164 |
|
|
28,331 |
|
|
27,639 |
|
|||||
| Deposits |
|
2,760,615 |
|
|
2,680,637 |
|
|
2,685,792 |
|
|
2,620,882 |
|
|
2,524,431 |
|
|||||
| Stockholders' equity |
|
418,046 |
|
|
407,216 |
|
|
395,789 |
|
|
399,589 |
|
|
393,457 |
|
|||||
| Stockholders' equity / assets |
|
12.48 |
% |
|
12.42 |
% |
|
12.29 |
% |
|
12.56 |
% |
|
12.70 |
% |
|||||
| Goodwill |
|
100,069 |
|
|
98,569 |
|
|
98,569 |
|
|
98,569 |
|
|
98,569 |
|
|||||
| Average Balances | ||||||||||||||||||||
| Total assets | $ |
3,303,013 |
|
$ |
3,223,997 |
|
$ |
3,183,012 |
|
$ |
3,138,202 |
|
$ |
3,059,225 |
|
|||||
| Earning assets |
|
2,985,498 |
|
|
2,914,587 |
|
|
2,871,340 |
|
|
2,831,866 |
|
|
2,754,561 |
|
|||||
| Loans |
|
2,624,314 |
|
|
2,561,341 |
|
|
2,517,283 |
|
|
2,474,221 |
|
|
2,403,932 |
|
|||||
| Deposits and interest-bearing liabilities |
|
2,843,079 |
|
|
2,781,216 |
|
|
2,742,626 |
|
|
2,705,736 |
|
|
2,633,054 |
|
|||||
| Deposits |
|
2,718,632 |
|
|
2,678,060 |
|
|
2,642,158 |
|
|
2,594,635 |
|
|
2,513,708 |
|
|||||
| Stockholders' equity |
|
411,041 |
|
|
398,612 |
|
|
395,138 |
|
|
392,701 |
|
|
389,361 |
|
|||||
| Stockholders' equity / assets |
|
12.44 |
% |
|
12.36 |
% |
|
12.41 |
% |
|
12.51 |
% |
|
12.73 |
% |
|||||
| Per Common Share Data | ||||||||||||||||||||
| Net Income: | ||||||||||||||||||||
| Basic | $ |
0.67 |
|
$ |
0.62 |
|
$ |
0.57 |
|
$ |
0.60 |
|
$ |
0.55 |
|
|||||
| Diluted |
|
0.66 |
|
|
0.61 |
|
|
0.57 |
|
|
0.59 |
|
|
0.55 |
|
|||||
| Dividends |
|
0.19 |
|
|
0.19 |
|
|
0.19 |
|
|
0.17 |
|
|
0.17 |
|
|||||
| Market Value: | ||||||||||||||||||||
| High | $ |
29.44 |
|
$ |
30.44 |
|
$ |
31.30 |
|
$ |
31.09 |
|
$ |
35.00 |
|
|||||
| Low |
|
25.50 |
|
|
26.59 |
|
|
24.12 |
|
|
22.78 |
|
|
29.61 |
|
|||||
| Close |
|
28.97 |
|
|
28.57 |
|
|
28.74 |
|
|
24.51 |
|
|
30.11 |
|
|||||
| Common Book Value |
|
21.19 |
|
|
20.65 |
|
|
20.08 |
|
|
19.81 |
|
|
19.29 |
|
|||||
| Shares outstanding, end of period (in thousands) |
|
19,729 |
|
|
19,723 |
|
|
19,713 |
|
|
20,171 |
|
|
20,396 |
|
|||||
| Performance Ratios (annualized) | ||||||||||||||||||||
| Tax-equivalent net interest margin (1) |
|
3.88 |
% |
|
4.03 |
% |
|
4.03 |
% |
|
4.02 |
% |
|
4.00 |
% |
|||||
| Return on average assets |
|
1.58 |
% |
|
1.52 |
% |
|
1.46 |
% |
|
1.53 |
% |
|
1.47 |
% |
|||||
| Return on average equity |
|
12.71 |
% |
|
12.28 |
% |
|
11.78 |
% |
|
12.22 |
% |
|
11.52 |
% |
|||||
| Efficiency ratio (2) |
|
56.65 |
% |
|
61.01 |
% |
|
63.22 |
% |
|
57.29 |
% |
|
59.22 |
% |
|||||
| Effective tax rate |
|
18.72 |
% |
|
18.44 |
% |
|
18.01 |
% |
|
20.30 |
% |
|
18.01 |
% |
|||||
| Common dividend payout ratio (basic) |
|
28.36 |
% |
|
30.65 |
% |
|
33.33 |
% |
|
28.33 |
% |
|
30.91 |
% |
|||||
(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 21%. | ||||||
(2) |
Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains, net. | ||||||
| Selected Quarterly Information | ||||||||||||||||||||
| First Defiance Financial Corp. | ||||||||||||||||||||
| (dollars in thousands, except per share data) | 3rd Qtr 2019 |
|
2nd Qtr 2019 |
|
1st Qtr 2019 |
|
4th Qtr 2018 |
|
3rd Qtr 2018 |
|||||||||||
| Loan Portfolio Composition | ||||||||||||||||||||
| One to four family residential real estate | $ |
330,369 |
|
$ |
322,123 |
|
$ |
321,644 |
|
$ |
322,686 |
|
$ |
313,300 |
|
|||||
| Construction |
|
308,061 |
|
|
335,847 |
|
|
304,241 |
|
|
265,772 |
|
|
274,344 |
|
|||||
| Commercial real estate |
|
1,430,919 |
|
|
1,411,463 |
|
|
1,394,500 |
|
|
1,404,810 |
|
|
1,363,087 |
|
|||||
| Commercial |
|
537,806 |
|
|
530,528 |
|
|
509,627 |
|
|
509,577 |
|
|
489,393 |
|
|||||
| Consumer finance |
|
36,644 |
|
|
35,350 |
|
|
34,262 |
|
|
34,405 |
|
|
32,379 |
|
|||||
| Home equity and improvement |
|
123,871 |
|
|
125,860 |
|
|
124,450 |
|
|
128,152 |
|
|
129,295 |
|
|||||
| Total loans |
|
2,767,670 |
|
|
2,761,171 |
|
|
2,688,724 |
|
|
2,665,402 |
|
|
2,601,798 |
|
|||||
| Less: | ||||||||||||||||||||
| Undisbursed loan funds |
|
100,260 |
|
|
134,794 |
|
|
137,742 |
|
|
123,293 |
|
|
143,286 |
|
|||||
| Deferred loan origination fees |
|
2,110 |
|
|
2,158 |
|
|
2,014 |
|
|
2,070 |
|
|
2,155 |
|
|||||
| Allowance for loan loss |
|
30,250 |
|
|
28,934 |
|
|
28,164 |
|
|
28,331 |
|
|
27,639 |
|
|||||
| Net Loans | $ |
2,635,050 |
|
$ |
2,595,285 |
|
$ |
2,520,804 |
|
$ |
2,511,708 |
|
$ |
2,428,718 |
|
|||||
| Allowance for loan loss activity | ||||||||||||||||||||
| Beginning allowance | $ |
28,934 |
|
$ |
28,164 |
|
$ |
28,331 |
|
$ |
27,639 |
|
$ |
27,321 |
|
|||||
| Provision for loan losses |
|
1,327 |
|
|
282 |
|
|
212 |
|
|
472 |
|
|
1,376 |
|
|||||
| Credit loss charge-offs: | ||||||||||||||||||||
| One to four family residential real estate |
|
74 |
|
|
11 |
|
|
172 |
|
|
31 |
|
|
136 |
|
|||||
| Commercial real estate |
|
- |
|
|
15 |
|
|
- |
|
|
30 |
|
|
1,048 |
|
|||||
| Commercial |
|
25 |
|
|
13 |
|
|
187 |
|
|
15 |
|
|
528 |
|
|||||
| Consumer finance |
|
80 |
|
|
33 |
|
|
142 |
|
|
105 |
|
|
25 |
|
|||||
| Home equity and improvement |
|
12 |
|
|
64 |
|
|
33 |
|
|
75 |
|
|
36 |
|
|||||
| Total charge-offs |
|
191 |
|
|
136 |
|
|
534 |
|
|
256 |
|
|
1,773 |
|
|||||
| Total recoveries |
|
180 |
|
|
624 |
|
|
155 |
|
|
476 |
|
|
715 |
|
|||||
| Net charge-offs (recoveries) |
|
11 |
|
|
(488 |
) |
|
379 |
|
|
(220 |
) |
|
1,058 |
|
|||||
| Ending allowance | $ |
30,250 |
|
$ |
28,934 |
|
$ |
28,164 |
|
$ |
28,331 |
|
$ |
27,639 |
|
|||||
| Credit Quality | ||||||||||||||||||||
| Total non-performing loans (1) | $ |
14,677 |
|
$ |
15,334 |
|
$ |
17,645 |
|
$ |
19,016 |
|
$ |
20,929 |
|
|||||
| Real estate owned (REO) |
|
- |
|
|
- |
|
|
941 |
|
|
1,205 |
|
|
1,676 |
|
|||||
| Total non-performing assets (2) | $ |
14,677 |
|
$ |
15,334 |
|
$ |
18,586 |
|
$ |
20,221 |
|
$ |
22,605 |
|
|||||
| Net charge-offs (recoveries) |
|
11 |
|
|
(488 |
) |
|
379 |
|
|
(220 |
) |
|
1,058 |
|
|||||
| Restructured loans, accruing (3) |
|
10,334 |
|
|
10,308 |
|
|
11,908 |
|
|
11,573 |
|
|
12,611 |
|
|||||
| Allowance for loan losses / loans |
|
1.13 |
% |
|
1.10 |
% |
|
1.10 |
% |
|
1.12 |
% |
|
1.13 |
% |
|||||
| Allowance for loan losses / non-performing assets |
|
206.10 |
% |
|
188.69 |
% |
|
151.53 |
% |
|
140.11 |
% |
|
122.27 |
% |
|||||
| Allowance for loan losses / non-performing loans |
|
206.10 |
% |
|
188.69 |
% |
|
159.61 |
% |
|
148.99 |
% |
|
132.06 |
% |
|||||
| Non-performing assets / loans plus REO |
|
0.55 |
% |
|
0.58 |
% |
|
0.73 |
% |
|
0.80 |
% |
|
0.92 |
% |
|||||
| Non-performing assets / total assets |
|
0.44 |
% |
|
0.47 |
% |
|
0.58 |
% |
|
0.64 |
% |
|
0.73 |
% |
|||||
| Net charge-offs / average loans (annualized) |
|
0.00 |
% |
|
-0.08 |
% |
|
0.06 |
% |
|
-0.04 |
% |
|
0.18 |
% |
|||||
| Deposit Balances | ||||||||||||||||||||
| Non-interest-bearing demand deposits | $ |
604,129 |
|
$ |
584,735 |
|
$ |
586,033 |
|
$ |
607,198 |
|
$ |
556,316 |
|
|||||
| Interest-bearing demand deposits and money market |
|
1,124,208 |
|
|
1,088,694 |
|
|
1,107,511 |
|
|
1,040,471 |
|
|
1,016,294 |
|
|||||
| Savings deposits |
|
294,594 |
|
|
304,051 |
|
|
300,244 |
|
|
292,829 |
|
|
293,359 |
|
|||||
| Retail time deposits less than $250,000 |
|
634,737 |
|
|
610,345 |
|
|
601,012 |
|
|
591,822 |
|
|
564,379 |
|
|||||
| Retail time deposits greater than $250,000 |
|
102,947 |
|
|
92,812 |
|
|
90,992 |
|
|
88,562 |
|
|
94,083 |
|
|||||
| Total deposits | $ |
2,760,615 |
|
$ |
2,680,637 |
|
$ |
2,685,792 |
|
$ |
2,620,882 |
|
$ |
2,524,431 |
|
|||||
(1) |
Non-performing loans consist of non-accrual loans. | |||||||||||
(2) |
Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof. | |||||||||||
(3) |
Accruing restructured loans are loans with known credit problems that are not contractually past due and therefore are not included in non-performing loans. | |||||||||||
| Loan Delinquency Information | ||||||||||||
| First Defiance Financial Corp. | ||||||||||||
| (dollars in thousands) | Total Balance |
|
Current |
|
30 to 89 days
|
|
Non Accrual
|
|||||
| September 30, 2019 | ||||||||||||
| One to four family residential real estate | $ |
330,369 |
$ |
325,573 |
$ |
1,787 |
$ |
3,009 |
||||
| Construction |
|
308,061 |
|
308,061 |
|
- |
|
- |
||||
| Commercial real estate |
|
1,430,919 |
|
1,414,694 |
|
8,012 |
|
8,213 |
||||
| Commercial |
|
537,806 |
|
534,321 |
|
516 |
|
2,969 |
||||
| Consumer finance |
|
36,644 |
|
36,413 |
|
231 |
|
- |
||||
| Home equity and improvement |
|
123,871 |
|
122,103 |
|
1,282 |
|
486 |
||||
| Total loans | $ |
2,767,670 |
$ |
2,741,165 |
$ |
11,828 |
$ |
14,677 |
||||
| December 31, 2018 | ||||||||||||
| One to four family residential real estate | $ |
322,686 |
$ |
317,740 |
$ |
1,306 |
$ |
3,640 |
||||
| Construction |
|
265,772 |
|
265,772 |
|
- |
|
- |
||||
| Commercial real estate |
|
1,404,810 |
|
1,394,211 |
|
242 |
|
10,357 |
||||
| Commercial |
|
509,577 |
|
504,884 |
|
193 |
|
4,500 |
||||
| Consumer finance |
|
34,405 |
|
34,079 |
|
200 |
|
126 |
||||
| Home equity and improvement |
|
128,152 |
|
126,188 |
|
1,571 |
|
393 |
||||
| Total loans | $ |
2,665,402 |
$ |
2,642,874 |
$ |
3,512 |
$ |
19,016 |
||||
| September 30, 2018 | ||||||||||||
| One to four family residential real estate | $ |
313,300 |
$ |
308,108 |
$ |
1,680 |
$ |
3,512 |
||||
| Construction |
|
274,344 |
|
274,344 |
|
- |
|
- |
||||
| Commercial real estate |
|
1,363,087 |
|
1,351,257 |
|
138 |
|
11,692 |
||||
| Commercial |
|
489,393 |
|
484,216 |
|
48 |
|
5,129 |
||||
| Consumer finance |
|
32,379 |
|
32,124 |
|
221 |
|
34 |
||||
| Home equity and improvement |
|
129,295 |
|
127,291 |
|
1,442 |
|
562 |
||||
| Total loans | $ |
2,601,798 |
$ |
2,577,340 |
$ |
3,529 |
$ |
20,929 |
||||
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