x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
OHIO
|
34-1803915
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
601
Clinton Street, Defiance, Ohio
|
43512
|
(Address
of principal executive offices)
|
(Zip
code)
|
Common
Stock, Par Value $0.01 Per Share
|
The
Nasdaq Stock Market
|
|
(Title
of Class)
|
(Name
of each exchange on which
registered)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
|
Item
1.
|
Business
|
Contractually
Maturing
|
Total
|
||||||||||||||||||||||||||||||
Under
1
Year
|
Weighted
Average
Rate
|
1
- 5
Years
|
Weighted
Average
Rate
|
6-10
Years
|
Weighted
Average
Rate
|
Over
10
Years
|
Weighted
Average
Rate
|
Amount
|
Yield
|
||||||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||
Mortgage-backed
securities
|
$
|
3,602
|
5.21
|
%
|
$
|
9,889
|
5.19
|
%
|
$
|
4,642
|
5.24
|
%
|
$
|
1,499
|
5.42
|
%
|
$
|
19,632
|
5.22
|
%
|
|||||||||||
REMICs
and CMOs
|
3,184
|
4.41
|
12,387
|
4.54
|
7,518
|
5.18
|
173
|
4.85
|
23,262
|
4.73
|
|||||||||||||||||||||
U.S.
government and federal agency obligations
|
11,000
|
4.15
|
21,550
|
5.14
|
3,570
|
5.42
|
−
-
|
−
|
36,120
|
4.87
|
|||||||||||||||||||||
Obligations
of states and political subdivisions (1)
|
610
|
4.60
|
8,695
|
4.60
|
2,701
|
4.89
|
12,765
|
4.77
|
24,771
|
4.72
|
|||||||||||||||||||||
Trust
preferred stock
|
−
|
−
|
−
|
8,134
|
7.76
|
8,134
|
7.76
|
||||||||||||||||||||||||
Total
|
$
|
18,396
|
$
|
52,521
|
$
|
18,431
|
$
|
22,571
|
$
|
111,919
|
|||||||||||||||||||||
Unamortized
premiums/ (discounts)
|
351
|
||||||||||||||||||||||||||||||
Unrealized
loss on securities available for sale
|
(147
|
)
|
|||||||||||||||||||||||||||||
Total
|
$
|
112,123
|
December
31
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
Thousands)
|
||||||||||
Available-for-sale
securities:
|
||||||||||
Corporate
bonds
|
$
|
−
|
$
|
−
|
$
|
6,468
|
||||
U.
S. treasury and federal agency obligations
|
36,043
|
41,065
|
50,313
|
|||||||
Obligations
of state and political subdivisions
|
25,254
|
23,818
|
32,092
|
|||||||
CMOs,
REMICS and mortgage-backed securities
|
41,207
|
40,395
|
41,765
|
|||||||
Other
|
8,178
|
7,801
|
6,365
|
|||||||
Total
|
$
|
110,682
|
$
|
113,079
|
$
|
137,003
|
||||
Held-to-maturity
securities:
|
||||||||||
Mortgage-backed
securities
|
$
|
1,081
|
$
|
1,330
|
$
|
1,725
|
||||
Obligations
of state and political subdivisions
|
360
|
445
|
530
|
|||||||
Total
|
$
|
1,441
|
$
|
1,775
|
$
|
2,255
|
December
31
|
||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Rate
|
Number
of
Loans
|
Aggregate
Principal
Balance
|
Percentage
of
Aggregate
Principal
Balance
|
Number
of
Loans
|
Aggregate
Principal
Balance
|
Percentage
of
Aggregate
Principal
Balance
|
Number
of
Loans
|
Aggregate
Principal
Balance
|
Percentage
of
Aggregate
Principal
Balance
|
|||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||
Less
than 5.00%
|
810
|
$
|
65,938
|
9.91
|
%
|
865
|
$
|
74,784
|
12.41
|
%
|
770
|
$
|
72,321
|
15.59
|
%
|
|||||||||||||
5.00%
- 5.99%
|
3,473
|
280,779
|
42.20
|
3,689
|
310,665
|
51.56
|
2,881
|
244,842
|
52.79
|
|||||||||||||||||||
6.00%
- 6.99%
|
3,129
|
278,651
|
41.87
|
2,356
|
190,172
|
31.56
|
1,609
|
126,132
|
27.20
|
|||||||||||||||||||
7.00%
- 7.99%
|
582
|
36,158
|
5.43
|
465
|
21,766
|
3.61
|
383
|
17,810
|
3.84
|
|||||||||||||||||||
8.00%
- 8.99%
|
86
|
3,476
|
0.52
|
108
|
4,483
|
0.74
|
63
|
2,503
|
0.54
|
|||||||||||||||||||
9.00%
and over
|
17
|
437
|
0.07
|
28
|
641
|
0.10
|
4
|
182
|
0.04
|
|||||||||||||||||||
Total
|
8,097
|
$
|
665,439
|
100.00
|
%
|
7,511
|
$
|
602,511
|
100.00
|
%
|
5,710
|
$
|
463,790
|
100.00
|
%
|
2006
|
2005
|
2004
|
|||||||||||||||||||||||||||||||||||
Maturity
|
Number
of
Loans
|
%
of Number of Loans
|
Unpaid
Principal Amount
|
%
of Unpaid Principal Amount
|
Number
of
Loans
|
%
of Number
of
Loans
|
Unpaid
Principal Amount
|
%
of
Unpaid
Principal Amount
|
Number
of
Loans
|
%
of Number
of
Loans
|
Unpaid
Principal
Amount
|
%
of Unpaid Principal Amount
|
|||||||||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||||||||
1-5
years
|
559
|
6.90
|
%
|
$
|
40,545
|
6.09
|
%
|
546
|
7.27
|
%
|
$
|
40,710
|
6.76
|
%
|
392
|
6.88
|
%
|
$
|
30,317
|
6.54
|
%
|
||||||||||||||||
6-10
years
|
659
|
8.14
|
26,342
|
3.96
|
602
|
8.01
|
27,965
|
4.64
|
614
|
10.75
|
41,076
|
8.86
|
|||||||||||||||||||||||||
11-15
years
|
2,408
|
29.74
|
163,796
|
24.61
|
2,573
|
34.26
|
177,564
|
29.47
|
2,122
|
37.16
|
153,680
|
33.14
|
|||||||||||||||||||||||||
16-20
years
|
992
|
12.25
|
81,262
|
12.21
|
1,006
|
13.39
|
83,444
|
13.85
|
787
|
13.78
|
67,964
|
14.65
|
|||||||||||||||||||||||||
21-25
years
|
338
|
4.17
|
28,604
|
4.30
|
207
|
2.76
|
17,254
|
2.86
|
107
|
1.87
|
8,551
|
1.84
|
|||||||||||||||||||||||||
More
than 25 years
|
3,141
|
38.80
|
324,890
|
48.83
|
2,577
|
34.31
|
255,574
|
42.42
|
1,688
|
29.56
|
162,202
|
34.97
|
|||||||||||||||||||||||||
Total
|
8,097
|
100.00
|
%
|
$
|
665,439
|
100.00
|
%
|
7,511
|
100.00
|
%
|
$
|
602,511
|
100.00
|
%
|
5,710
|
100.00
|
%
|
$
|
463,790
|
100.00
|
%
|
December
31
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Amount
|
|
%
|
|
Amount
|
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||
Real
estate:
|
|||||||||||||||||||||||||||||||
One
to four family residential
|
$
|
250,808
|
20.1
|
%
|
$
|
275,497
|
23.2
|
%
|
$
|
187,775
|
20.9
|
%
|
$
|
162,111
|
21.6
|
%
|
$
|
142,355
|
24.7
|
%
|
|||||||||||
Five
or more family residential
|
57,263
|
4.6
|
50,040
|
4.2
|
39,049
|
4.4
|
30,322
|
4.0
|
32,324
|
5.6
|
|||||||||||||||||||||
Nonresidential
real estate
|
522,597
|
41.9
|
501,943
|
42.2
|
376,115
|
42.0
|
311,101
|
41.4
|
195,431
|
33.9
|
|||||||||||||||||||||
Construction
|
17,339
|
1.4
|
21,173
|
1.8
|
15,507
|
1.7
|
16,830
|
2.3
|
15,357
|
2.6
|
|||||||||||||||||||||
Total
real estate loans
|
848,007
|
68.0
|
848,653
|
71.4
|
618,446
|
69.0
|
520,364
|
69.3
|
385,467
|
66.8
|
|||||||||||||||||||||
Other:
|
|||||||||||||||||||||||||||||||
Consumer
finance
|
43,320
|
3.5
|
54,657
|
4.6
|
45,213
|
5.1
|
39,808
|
5.3
|
37,562
|
6.5
|
|||||||||||||||||||||
Commercial
|
232,914
|
18.7
|
171,289
|
14.4
|
141,644
|
15.8
|
120,677
|
16.0
|
104,070
|
18.0
|
|||||||||||||||||||||
Home
equity and improvement
|
122,789
|
9.8
|
113,000
|
9.5
|
90,839
|
10.1
|
70,038
|
9.3
|
49,889
|
8.7
|
|||||||||||||||||||||
Mobile
home
|
450
|
−
|
640
|
.1
|
299
|
−
|
449
|
0.1
|
17
|
-
|
|||||||||||||||||||||
Total
non-real estate loans
|
399,473
|
32.0
|
339,586
|
28.6
|
277,995
|
31.0
|
230,972
|
30.7
|
191,538
|
33.2
|
|||||||||||||||||||||
Total
loans
|
1,247,480
|
100.0
|
%
|
1,188,239
|
100.0
|
%
|
896,441
|
100.0
|
%
|
751,336
|
100.0
|
%
|
577,005
|
100.0
|
%
|
||||||||||||||||
Less:
|
|||||||||||||||||||||||||||||||
Loans
in process
|
6,409
|
8,782
|
6,341
|
6,079
|
7,255
|
||||||||||||||||||||||||||
Deferred
loan origination fees
|
1,182
|
1,303
|
1,232
|
1,158
|
1,212
|
||||||||||||||||||||||||||
Allowance
for loan losses
|
13,579
|
13,673
|
9,956
|
8,844
|
7,496
|
||||||||||||||||||||||||||
Net
loans
|
$
|
1,226,310
|
$
|
1,164,481
|
$
|
878,912
|
$
|
735,255
|
$
|
561,042
|
Due
3-5
|
Due
5-10
|
Due
10-15
|
Due
15+
|
|||||||||||||||||||
Due
Before December 31
|
Years
After December 31
|
|||||||||||||||||||||
2007
|
2008
|
2006
|
2006
|
2006
|
2006
|
Total
|
||||||||||||||||
(In
Thousands)
|
||||||||||||||||||||||
Real
estate
|
$
|
117,485
|
$
|
55,894
|
$
|
170,170
|
$
|
379,588
|
$
|
52,559
|
$
|
72,311
|
$
|
848,007
|
||||||||
Non-real
estate:
|
||||||||||||||||||||||
Commercial
|
123,165
|
32,485
|
56,734
|
20,109
|
396
|
25
|
232,914
|
|||||||||||||||
Home
equity and improvement
|
10,011
|
2,115
|
54,576
|
5,254
|
666
|
50,167
|
122,789
|
|||||||||||||||
Mobile
home
|
76
|
93
|
145
|
134
|
2
|
−
|
450
|
|||||||||||||||
Consumer
finance
|
17,494
|
11,037
|
14,063
|
556
|
116
|
54
|
43,320
|
|||||||||||||||
Total
|
$
|
268,231
|
$
|
101,624
|
$
|
295,688
|
$
|
405,641
|
$
|
53,739
|
$
|
122,557
|
$
|
1,247,480
|
Fixed
Rates
|
Floating
or
Adjustable
Rates
|
Total
|
||||||||
(In
Thousands)
|
||||||||||
Real
estate
|
$
|
123,789
|
$
|
603,954
|
$
|
727,743
|
||||
Commercial
|
13,135
|
97,057
|
110,192
|
|||||||
Other
|
82,737
|
57,734
|
140,471
|
|||||||
$
|
219,661
|
$
|
758,745
|
$
|
978,406
|
Years
Ended December 31
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(In
Thousands)
|
||||||||||
Loan
originations:
|
||||||||||
Single
family residential
|
$
|
162,499
|
$
|
164,687
|
$
|
132,463
|
||||
Multi-family
residential
|
71,671
|
85,733
|
76,483
|
|||||||
Non-residential
real estate
|
168,909
|
162,823
|
137,524
|
|||||||
Construction
|
24,026
|
27,637
|
20,983
|
|||||||
Commercial
|
174,081
|
133,021
|
110,915
|
|||||||
Home
equity and improvement
|
40,498
|
34,221
|
38,552
|
|||||||
Consumer
finance
|
42,162
|
50,056
|
27,250
|
|||||||
Total
loans originated
|
683,846
|
658,178
|
544,170
|
|||||||
Loans
acquired in acquisitions
|
−
|
184,218
|
−
|
|||||||
Loan
reductions:
|
||||||||||
Loan
pay-offs
|
242,137
|
261,046
|
223,976
|
|||||||
Mortgage
loans sold
|
134,000
|
111,345
|
104,968
|
|||||||
Periodic
principal repayments
|
250,324
|
175,220
|
73,698
|
|||||||
626,461
|
547,611
|
402,642
|
||||||||
Net
increase in total loans
|
$
|
57,385
|
$
|
294,785
|
$
|
141,528
|
30
to 59 Days
|
60
to 89 Days
|
90
Days and Over
|
Total
|
||||||||||||||||||||||
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||
Single
- family residential
|
$
|
1,450
|
0.12
|
%
|
$
|
908
|
0.07
|
%
|
$
|
1,694
|
0.14
|
%
|
$
|
4.052
|
0.33
|
%
|
|||||||||
Nonresidential
and Multi- family residential
|
1,666
|
0.14
|
420
|
0.03
|
4,977
|
0.40
|
7,063
|
0.57
|
|||||||||||||||||
Home
equity and improvement
|
991
|
0.08
|
93
|
0.01
|
286
|
0.02
|
1,370
|
0.11
|
|||||||||||||||||
Consumer
finance
|
271
|
0.02
|
18
|
0.00
|
54
|
0.00
|
343
|
0.03
|
|||||||||||||||||
Commercial
|
451
|
0.04
|
77
|
0.01
|
272
|
0.02
|
800
|
0.07
|
|||||||||||||||||
Total
|
$
|
4,829
|
0.40
|
%
|
$
|
1,516
|
0.12
|
%
|
$
|
7,283
|
0.58
|
%
|
$
|
13,628
|
1.11
|
%
|
December
31
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Nonperforming
loans:
|
||||||||||||||||
Single-family
residential
|
$
|
1,694
|
$
|
2,648
|
$
|
419
|
$
|
471
|
$
|
404
|
||||||
Nonresidential
and multi-family residential real estate
|
4,977
|
1,917
|
1,014
|
1,092
|
1,217
|
|||||||||||
Commercial
|
272
|
287
|
450
|
949
|
879
|
|||||||||||
Mobile
home
|
−
|
−
|
−
|
−
|
−
|
|||||||||||
Consumer
finance
|
340
|
100
|
10
|
33
|
25
|
|||||||||||
Total
nonperforming loans
|
7,283
|
4,952
|
1,893
|
2,545
|
2,525
|
|||||||||||
Real
estate owned
|
2,321
|
315
|
49
|
397
|
175
|
|||||||||||
Other
repossessed assets
|
71
|
89
|
49
|
7
|
31
|
|||||||||||
Total
repossessed assets
|
2,392
|
404
|
98
|
404
|
206
|
|||||||||||
Total
nonperforming assets
|
$
|
9,675
|
$
|
5,356
|
$
|
1,991
|
$
|
2,949
|
$
|
2,731
|
||||||
Troubled
debt restructurings
|
$
|
−
|
$
|
−
|
$
|
−
|
$
|
−
|
$
|
−
|
||||||
Total
nonperforming assets as a percentage of total assets of continuing
operations
|
0.63
|
%
|
0.37
|
%
|
0.18
|
%
|
0.28
|
%
|
0.31
|
%
|
||||||
Total
nonperforming loans and troubled debt restructurings as a percentage
of
total loans
|
0.59
|
%
|
0.42
|
%
|
0.21
|
%
|
0.34
|
%
|
0.43
|
%
|
||||||
Allowance
for loan losses as a percent of total nonperforming assets
|
140.35
|
%
|
255.28
|
%
|
500.05
|
%
|
299.90
|
%
|
274.48
|
%
|
Years
Ended December 31
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||
Allowance
at beginning of year
|
$
|
13,673
|
$
|
9,956
|
$
|
8,844
|
$
|
7,496
|
$
|
6,548
|
||||||
Provision
for credit losses
|
1,756
|
1,442
|
1,549
|
1,719
|
1,451
|
|||||||||||
Allowance
acquired in acquisitions
|
−
|
3,027
|
−
|
−
|
−
|
|||||||||||
Charge-offs:
|
||||||||||||||||
One
to four family residential real estate
|
513
|
182
|
52
|
18
|
110
|
|||||||||||
Commercial
real estate
|
1,028
|
226
|
58
|
162
|
184
|
|||||||||||
Commercial
|
177
|
267
|
390
|
375
|
36
|
|||||||||||
Consumer
finance
|
392
|
354
|
186
|
170
|
390
|
|||||||||||
Home
equity and improvement
|
166
|
25
|
−
|
−
|
−
|
|||||||||||
Total
charge-offs
|
2,276
|
1,054
|
686
|
725
|
720
|
|||||||||||
Recoveries
|
426
|
302
|
249
|
354
|
217
|
|||||||||||
Net
charge-offs
|
1,850
|
752
|
437
|
371
|
503
|
|||||||||||
Ending
allowance
|
$
|
13,579
|
$
|
13,673
|
$
|
9,956
|
$
|
8,844
|
$
|
7,496
|
||||||
Allowance
for loan losses to total non-performing loans at end of
year
|
186.45
|
%
|
276.11
|
%
|
525.94
|
%
|
347.50
|
%
|
296.87
|
%
|
||||||
Allowance
for loan losses to total loans at end of year
|
1.10
|
%
|
1.16
|
%
|
1.13
|
%
|
1.19
|
%
|
1.32
|
%
|
||||||
Allowance
for loan losses to net charge-offs for the year
|
734.00
|
%
|
1,818.22
|
%
|
2,278.26
|
%
|
2,383.82
|
%
|
1,490.26
|
%
|
||||||
Net
charge-offs for the year to average loans
|
0.15
|
%
|
0.07
|
%
|
0.05
|
%
|
0.06
|
%
|
0.10
|
%
|
December
31
|
|||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||
Amount
|
Percent
of
total
loans
by
category
|
Amount
|
Percent
of
total
loans
by
category
|
Amount
|
Percent
of
total
loans
by
category
|
Amount
|
Percent
of
total
loans
by
category
|
Amount
|
Percent
of
total
loans
by
category
|
||||||||||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||||||||||||||
Single
family residential
|
$
|
2,077
|
20.1
|
%
|
$
|
1,484
|
23.2
|
%
|
$
|
239
|
22.8
|
%
|
$
|
386
|
24.4
|
%
|
$
|
587
|
29.2
|
%
|
|||||||||||
Nonresidential
and Multi-family residential real estate
|
8,551
|
46.5
|
8,965
|
46.4
|
6,538
|
46.3
|
6,265
|
45.1
|
4,293
|
38.5
|
|||||||||||||||||||||
Other:
|
|||||||||||||||||||||||||||||||
Commercial
loans
|
2,244
|
18.7
|
2,287
|
14.4
|
2,454
|
15.8
|
1,424
|
15.9
|
1,729
|
17.6
|
|||||||||||||||||||||
Consumer
and home equity and improvement loans
|
707
|
14.7
|
937
|
16.0
|
725
|
15.1
|
769
|
14.6
|
887
|
14.7
|
|||||||||||||||||||||
$
|
13,579
|
100.0
|
%
|
$
|
13,673
|
100.0
|
%
|
$
|
9,956
|
100.0
|
%
|
$
|
8,844
|
100.0
|
%
|
$
|
7,496
|
100.0
|
%
|
Years
Ended December 31
|
|||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
||||||||||||||
(Dollars
in Thousands)
|
|||||||||||||||||||
Non-interest-bearing
demand deposits
|
$
|
95,044
|
−
|
$
|
86,741
|
−
|
$
|
56,241
|
−
|
||||||||||
Interest
bearing demand
deposits
|
289,214
|
2.44
|
%
|
273,502
|
1.19
|
%
|
232,044
|
0.74
|
%
|
||||||||||
Savings
deposits
|
76,775
|
0.36
|
87,708
|
0.27
|
53,247
|
0.25
|
|||||||||||||
Time
deposits
|
640,479
|
4.05
|
570,826
|
3.00
|
413,796
|
2.68
|
|||||||||||||
Totals
|
$
|
1,101,512
|
3.02
|
%
|
$
|
1,018,777
|
2.02
|
%
|
$
|
755,328
|
1.71
|
%
|
Certificates
of deposit maturing in quarter ending:
|
||||
March
31, 2007
|
$
|
58,326
|
||
June
30, 2007
|
45,674
|
|||
September
30, 2007
|
26,989
|
|||
December
31, 2006
|
24,632
|
|||
After
December 31, 2007
|
17,783
|
|||
Total
certificates of deposit with balances of $100,000 or more
|
$
|
173,404
|
2006
|
2005
|
||||||
(In
Thousands)
|
|||||||
Interest
bearing demand deposits and money
market accounts
|
$
|
216
|
$
|
120
|
|||
Savings
Accounts
|
−
|
−
|
|||||
Certificates
|
1,651
|
876
|
|||||
$
|
1,867
|
$
|
996
|
|
December
31
|
|||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
in Thousands)
|
||||||||||
Long-term:
|
||||||||||
FHLB
advances
|
$
|
129,128
|
$
|
152,460
|
$
|
151,713
|
||||
Weighted
average interest rate
|
5.01
|
%
|
4.65
|
%
|
4.62
|
%
|
||||
Short-term:
|
||||||||||
FHLB
advances
|
$
|
33,100
|
$
|
28,500
|
$
|
26,500
|
||||
Weighted
average interest rate
|
5.18
|
%
|
3.65
|
%
|
2.20
|
%
|
||||
Revolving
borrowings
|
-
|
-
|
3,000
|
|||||||
Weighted
average interest rate
|
-
|
-
|
2.25
|
%
|
||||||
Securities
sold under agreement to repurchase
|
$
|
30,424
|
$
|
25,748
|
$
|
11,804
|
||||
Weighted
average interest rate
|
2.98
|
%
|
2.68
|
%
|
1.57
|
%
|
Years
Ended December 31
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
in Thousands)
|
||||||||||
Long-term:
|
||||||||||
FHLB
advances:
|
||||||||||
Maximum
balance
|
$
|
152,164
|
$
|
154,602
|
$
|
153,373
|
||||
Average
balance
|
141,836
|
153,267
|
152,547
|
|||||||
Weighted
average interest rate
|
4.89
|
%
|
4.63
|
%
|
4.61
|
%
|
Years
Ended December 31
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(Dollars
in Thousands)
|
||||||||||
Short-term:
|
||||||||||
FHLB
advances:
|
||||||||||
Maximum
balance
|
$
|
57,500
|
$
|
45,000
|
$
|
28,500
|
||||
Average
balance
|
40,104
|
14,313
|
15,577
|
|||||||
Weighted
average interest rate
|
5.10
|
%
|
3.79
|
%
|
1.55
|
%
|
||||
Revolving
credit agreements:
|
||||||||||
Maximum
balance
|
$
|
-
|
$
|
43,799
|
$
|
3,000
|
||||
Average
balance
|
80
|
301
|
1,349
|
|||||||
Weighted
average interest rate
|
5.13
|
%
|
2.25
|
%
|
2.20
|
%
|
||||
Securities
sold under agreement to repurchase:
|
||||||||||
Maximum
balance
|
$
|
30,424
|
$
|
25,748
|
$
|
12,606
|
||||
Average
balance
|
20,318
|
17,718
|
10,612
|
|||||||
Weighted
average interest rate
|
2.84
|
%
|
2.18
|
%
|
1.08
|
%
|
December
31, 2006
|
|||||||
Amount
|
Percent
|
||||||
(In
Thousands)
|
|||||||
Tangible
Capital
|
$
|
140,017
|
9.42
|
%
|
|||
Requirement
|
22,293
|
1.50
|
|||||
Excess
|
$
|
117,724
|
7.92
|
%
|
|||
Core
Capital
|
$
|
140,017
|
9.42
|
%
|
|||
Requirement
|
59,448
|
4.00
|
|||||
Excess
|
$
|
80,569
|
5.42
|
%
|
|||
Total
risked-based capital
|
$
|
153,596
|
11.85
|
%
|
|||
Risk-based
requirement
|
103,716
|
8.00
|
|||||
Excess
|
$
|
49,880
|
3.85
|
%
|
Item
1A.
|
Risk
Factors
|
·
|
The
rate of inflation;
|
·
|
Economic
conditions;
|
·
|
Federal
monetary policies;
|
·
|
Stability
of domestic and foreign markets.
|
·
|
A
slowdown in the local economy where the Company’s markets are located or
the national economy;
|
·
|
A
downturn in the business sectors in which the Company’s loan customers
operate;
|
·
|
A
rapid increase in interest rates.
|
·
|
Demand
for our products and services may go
down;
|
·
|
Borrowers
may be unable to make payments on their
loans;
|
·
|
The
value of collateral securing loans may
decline;
|
·
|
The
overall quality of the loan portfolio may
decline;
|
·
|
Local
market-area deposits may decline, impacting the Company’s cost of funding
and its liquidity.
|
Item
1B.
|
Unresolved
Staff Comments
|
Item
2.
|
Properties
|
Description/address
|
Leased/
Owned
|
Net
Book Value
of
Property
|
Deposits
|
|||||||
(In
Thousands)
|
||||||||||
Main
Office, First Federal
|
||||||||||
601
Clinton Street, Defiance, OH
|
Owned
|
$
|
5,414
|
$
|
226,276
|
|||||
Branch
Offices, First Federal
|
||||||||||
204
E. High Street, Bryan, OH
|
Owned
|
915
|
106,429
|
|||||||
211
S. Fulton Street, Wauseon, OH
|
Owned
|
636
|
49,644
|
|||||||
625
Scott Street, Napoleon, OH
|
Owned
|
1,339
|
67,683
|
|||||||
1050
East Main Street, Montpelier, OH
|
Owned
|
471
|
34,854
|
|||||||
926
East High Street, Bryan, OH
|
Owned
|
92
|
7,173
|
|||||||
1800
Scott Street, Napoleon, OH
|
Owned
|
1,602
|
20,883
|
|||||||
1177
N. Clinton Street, Defiance, OH
|
Leased
|
1,212
|
29,766
|
|||||||
905
N. Williams St., Paulding, OH
|
Owned
|
958
|
35,186
|
|||||||
201
E. High St., Hicksville, OH
|
Owned
|
481
|
17,352
|
|||||||
3900
N. Main St., Findlay, OH
|
Owned
|
1,226
|
40,068
|
|||||||
11694
N. Countyline St., Fostoria, OH
|
Owned
|
788
|
21,701
|
|||||||
1226
W. Wooster, Bowling Green, OH
|
Owned
|
1,214
|
56,839
|
|||||||
301
S. Main St., Findlay, OH
|
Owned
|
1,338
|
34,075
|
|||||||
405
E. Main St., Ottawa, OH
|
Owned
|
453
|
66,957
|
|||||||
124
E. Main St., McComb, OH
|
Owned
|
248
|
20,583
|
|||||||
7591
Patriot Dr., Findlay, OH
|
Owned
|
1,341
|
11,318
|
|||||||
417
W Dussell Dr., Maumee, OH
|
Leased
|
1,118
|
30,153
|
|||||||
230
E. Second St., Delphos, OH
|
Owned
|
1,288
|
99,564
|
|||||||
105
S. Greenlawn Ave., Elida, OH
|
Owned
|
399
|
36,782
|
|||||||
2600
Allentown Rd., Lima, OH
|
Owned
|
950
|
34,319
|
|||||||
2285
N. Cole St., Lima, OH
|
Owned
|
482
|
9,326
|
|||||||
22020
W. State Rt. 51, Genoa, OH
|
Owned
|
1,062
|
41,769
|
|||||||
2760
Navarre Ave., Oregon, OH
|
Leased
|
263
|
19,077
|
|||||||
1077
Louisiana Ave., Perrysburg, OH
|
Leased
|
86
|
15,100
|
|||||||
2565
Shawnee Road, Lima, OH
|
Owned
|
1,766
|
5,568
|
|||||||
|
||||||||||
First
Insurance & Investments
|
||||||||||
419
5th
Street, Suite 1200, Defiance, OH
|
Leased
|
184
|
N/A
|
|||||||
$
|
27,326
|
$
|
1,138,445
|
Item
3.
|
Legal
Proceedings
|
Item
4.
|
Submission
of Matters to a Vote of Securities
Holders
|
Item
5.
|
Market
for Registrant’s Common Stock and Related Stockholder Matters and Issuers
Purchases of Common Stock
|
Years
Ending
|
|||||||||||||||||||
December
31, 2006
|
December
31, 2005
|
||||||||||||||||||
High
|
Low
|
Dividend
|
High
|
Low
|
Dividend
|
||||||||||||||
Quarter
ended:
|
|||||||||||||||||||
March
31
|
$
|
28.88
|
$
|
25.39
|
$
|
.24
|
$
|
29.90
|
$
|
26.00
|
$
|
.22
|
|||||||
June
30
|
30.29
|
25.09
|
.24
|
30.46
|
25.29
|
.22
|
|||||||||||||
September
30
|
28.69
|
25.18
|
.24
|
31.44
|
26.21
|
.22
|
|||||||||||||
December
31
|
30.70
|
26.87
|
.25
|
30.06
|
25.56
|
.24
|
|
Period
Ending
|
|||||
Index
|
12/31/01
|
12/31/02
|
12/31/03
|
12/31/04
|
12/31/05
|
12/31/06
|
First
Defiance Financial Corp.
|
100.00
|
128.27
|
180.91
|
207.84
|
201.50
|
233.26
|
NASDAQ
Composite
|
100.00
|
68.76
|
103.67
|
113.16
|
115.57
|
127.58
|
SNL
NASDAQ Bank Index
|
100.00
|
102.85
|
132.76
|
152.16
|
147.52
|
165.62
|
SNL
Midwest Thrift Index
|
100.00
|
128.91
|
179.09
|
197.78
|
193.27
|
219.35
|
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)
|
|||||||||
October
1, 2006 to October 21. 2006
|
3,309
|
$
|
28.53
|
3,309
|
312,910
|
||||||||
November
1, 2006 to November 30, 2006 (b)
|
3,309
|
$
|
28.85
|
1,727
|
311,183
|
||||||||
December
1, 2006 to December 31, 2006
|
425
|
$
|
30.00
|
425
|
310,758
|
||||||||
Total
|
7,043
|
$
|
28.77
|
5,461
|
310,758
|
(a)
|
On
July 18, 2003, First Defiance announced that its Board of Directors
had
authorized management to repurchase up to 10% of the Registrant’s common
stock through open market or in any private transaction. The
authorization, which is for 639,828 shares, does not have an expiration
date.
|
(b)
|
November
purchases included 1,582 shares acquired upon exercise of stock
options.
|
Item
6.
|
Selected
Financial Data
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
Item
7a:
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
Item
8.
|
Financial
Statements and Supplementary
Data
|
Item
9.
|
Changes
In and Disagreements With Accountants on Accounting and Financial
Disclosure.
|
Item
9a:
|
Controls
and Procedures
|
Item 9b: |
Other
Information
|
Item
10:
|
Directors
and Executive Officers of the
Registrant
|
Item
11:
|
Executive
Compensation
|
Item
12:
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
Plan
Category
|
Number
of securities to be Issued Upon Exercise of Outstanding Options,
Warrants
and Rights
|
Weighted
Average Exercise Price of Outstanding Options, Warrants and
Rights
|
Number
of Securities Remaining Available for Future Issuance Under Equity
Compensation Plans (Excluding Securities Reflected in Column
(a))
|
|||||||
(a)
|
(b)
|
(c)
|
||||||||
1993
Stock Incentive Plan
|
20,836
|
$
|
12.93
|
-0-
|
||||||
1996
Stock Option Plan
|
82,218
|
$
|
14.56
|
250
|
||||||
2001
Stock Option and Incentive Plan
|
216,300
|
$
|
18.91
|
9,100
|
||||||
2005
Stock Option and Incentive Plan
|
84,800
|
$
|
26.29
|
266,050
|
||||||
1996
Management Recognition Plan
|
N/A
|
N/A
|
155
|
Item
13:
|
Certain
Relationships and Related Transactions, and Director
Independence
|
Item
14:
|
Principal
Accountant Fees and
Services
|
Item
15:
|
Exhibits
and Financial Statement Schedules
|
(a)
|
The
following documents are filed as part of this
report:
|
Annual
Report
Page
|
|
Report
of Independent Registered Public Accounting Firm (Crowe Chizek and
Company
LLC)
|
32
|
Report
of Independent Registered Public Accounting Firm on Consolidated
Financial
Statements (Ernst & Young LLP)
|
33
|
Consolidated
Statements of Financial Condition as of December 31, 2006 and
2005
|
34
|
Consolidated
Statements of Income for the years ended December 31, 2006, 2005
and
2004
|
35
|
Consolidated
Statements of Stockholders’ Equity for the years ended December 31, 2006,
2005 and 2004
|
36
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2006, 2005
and
2004
|
37
|
Notes
to Consolidated Financial Statements
|
39
|
(1)
|
We
are not filing separately financial statement schedules because of
the
absence of conditions under which they are required or because the
required information is included in the consolidated financial statements
or the related notes.
|
(2)
|
The
exhibits required by this item are listed in the Exhibit Index of
this
Form 10-K. The management contracts and compensation plans or arrangements
required to be filed as exhibits to this Form 10-K are listed as
Exhibits
10.1 through 10.12.
|
(3)
|
See
Item 15(a)(2) above.
|
FIRST
DEFIANCE FINANCIAL CORP.
|
||
March
15, 2007
|
By:
|
/s/
John C. Wahl
|
John
C. Wahl, Exec.V.P, Chief Financial
Officer
|
Signature
|
Title
|
|
/s/
William J. Small
|
Chairman
of the Board, President and
|
|
William
J. Small
|
Chief
Executive Officer
|
|
/s/
John C. Wahl
|
Executive
Vice President and
|
|
John
C. Wahl
|
Chief
Financial Officer
|
|
/s/
James L. Rohrs
|
Director,
Executive Vice President
|
|
James
L. Rohrs
|
||
/s/
Stephen L. Boomer
|
Director,
Vice Chairman
|
|
Stephen
L. Boomer
|
||
/s/
John L. Bookmyer
|
Director
|
|
John
L. Bookmyer
|
||
/s/
Dr. Douglas A. Burgei
|
Director
|
|
Dr.
Douglas A. Burgei
|
||
/s/
Peter A. Diehl
|
Director
|
|
Peter
A. Diehl
|
||
/s/
Dr. John U. Fauster, III
|
Director
|
|
Dr.
John U. Fauster, III
|
||
/s/
Dwain I. Metzger
|
Director
|
|
Dwain
I. Metzger
|
||
/s/
Gerald W. Monnin
|
Director
|
|
Gerald
W. Monnin
|
||
/s/
Samuel S. Strausbaugh
|
Director
|
|
Samuel
S. Strausbaugh
|
||
/s/
Thomas A. Voigt
|
Director
|
|
Thomas
A. Voigt
|
Exhibit
|
|||
Number
|
Description
|
||
3.1
|
Articles
of Incorporation
|
(1)
|
|
3.2
|
Code
of Regulations
|
(1)
|
|
3.2
|
Bylaws
|
(1)
|
|
Agreement
to furnish instruments and agreements defining rights of holders
of
long-term debt
|
(4)
|
||
10.1
|
1996
Stock Option Plan
|
(2)
|
|
10.2
|
Form
of Incentive Stock Option Award Agreement
|
(3)
|
|
10.3
|
Form
of Nonqualified Stock Option Award Agreement
|
(3)
|
|
10.4
|
1996
Management Recognition Plan and Trust
|
(2)
|
|
10.5
|
2001
Stock Option and Incentive Plan
|
(5)
|
|
10.6
|
1993
Stock Incentive Plan
|
(1)
|
|
10.7
|
Employment
Agreement with William J. Small
|
(6)
|
|
10.8
|
Employment
Agreement with James L. Rohrs
|
(2)
|
|
10.9
|
Employment
Agreement with John C. Wahl
|
(2)
|
|
10.10
|
Employment
Agreement with Gregory R. Allen
|
(7)
|
|
10.11
|
Description
of Annual Bonus
|
(8)
|
|
10.12
|
2005
Stock Option and Incentive Plan
|
(9)
|
|
2006
Annual Report to Stockholders
|
(4)
|
||
Code
of Ethics
|
(4)
|
||
List
of Subsidiaries of the Company
|
(4)
|
||
Consent
of Crowe Chizek and Company LLC
|
(4)
|
||
Consent
of Ernst & Young LLP
|
(4)
|
||
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
(4)
|
||
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
(4)
|
||
Certification
of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
(4)
|
||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
(4)
|
(1)
|
Incorporated
herein by reference to the like numbered exhibit in the Registrant’s Form
S-1 (File No. 33-93354).
|
(2)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2001 Form
10-K
|
(3)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2004 Form
10-K
|
(4)
|
Included
herein
|
(5)
|
Incorporated
herein by reference to Appendix B to the 2001 Proxy
Statement
|
(6)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2000 Form
10-K
|
(7)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2002 Form
10-K
|
(8)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2005 Form
10-K
|
(9)
|
Incorporated
herein by reference to Appendix A to the 2005 Proxy
Statement
|