ý
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934. For the Quarterly Period Ended March 31,
2008
|
o
|
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
|
Smaller
reporting company o
|
Page
Number
|
||
|
2
|
|
4
|
||
5
|
||
6
|
||
7
|
||
24
|
||
34
|
||
34
|
||
36
|
||
36
|
||
36
|
||
36
|
||
37
|
||
37
|
||
37
|
||
38
|
March
31,
2008
|
December
31,
2007
|
|||||||
(In
Thousands)
|
||||||||
Assets
|
||||||||
Cash
and cash equivalents:
|
||||||||
Cash and amounts due from
depository institutions
|
$ | 40,030 | $ | 53,976 | ||||
Interest-bearing
deposits
|
1,548 | 11,577 | ||||||
41,578 | 65,553 | |||||||
Securities:
|
||||||||
Available-for-sale, carried at
fair value
|
123,566 | 112,370 | ||||||
Held-to-maturity, carried at
amortized cost
|
||||||||
(fair value $1,129 and $1,161 at
March 31, 2008
|
||||||||
and December 31, 2007,
respectively)
|
1,081 | 1,117 | ||||||
124,647 | 113,487 | |||||||
Loans
held for sale
|
7,400 | 5,751 | ||||||
Loans
receivable, net of allowance of $18,556 at March
|
||||||||
31,
2007 and $13,890 at December 31, 2007, respectively
|
1,516,798 | 1,275,806 | ||||||
Accrued
interest receivable
|
8,636 | 6,755 | ||||||
Federal
Home Loan Bank stock
|
20,864 | 18,586 | ||||||
Bank
owned life insurance
|
28,696 | 28,423 | ||||||
Premises
and equipment
|
50,070 | 40,545 | ||||||
Real
estate and other assets held for sale
|
3,448 | 2,460 | ||||||
Goodwill
|
57,315 | 36,820 | ||||||
Core
deposit and other intangibles
|
9,915 | 3,551 | ||||||
Mortgage
servicing rights
|
9,074 | 5,973 | ||||||
Other
assets
|
7,606 | 5,694 | ||||||
Total
assets
|
$ | 1,886,047 | $ | 1,609,404 |
March
31,
2008
|
December
31,
2007
|
|||||||
(In
Thousands)
|
||||||||
Liabilities
and stockholders’ equity
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$ | 1,413,701 | $ | 1,217,858 | ||||
Advances from the Federal Home
Loan Bank
|
163,966 | 139,536 | ||||||
Short term
borrowings
|
20,000 | − | ||||||
Securities sold under repurchase
agreements
|
31,361 | 30,055 | ||||||
Subordinated
debentures
|
36,083 | 36,083 | ||||||
Advance payments by
borrowers
|
594 | 762 | ||||||
Deferred taxes
|
5,654 | 1,306 | ||||||
Other liabilities
|
19,853 | 17,850 | ||||||
Total
liabilities
|
1,691,209 | 1,443,450 | ||||||
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; 12,739
and 11,703 shares
|
||||||||
issued and 8,111 and 7,059 shares
outstanding, respectively
|
127 | 117 | ||||||
Additional paid-in
capital
|
140,231 | 112,651 | ||||||
Stock acquired by
ESOP
|
− | (202 | ) | |||||
Accumulated other comprehensive
income (loss), net of
|
||||||||
tax of ($404) and ($224),
respectively
|
(746 | ) | (415 | ) | ||||
Retained earnings
|
127,923 | 126,630 | ||||||
Treasury stock, at cost, 4,628 and
4,644 shares
respectively
|
(72,700 | ) | (72,827 | ) | ||||
Total
stockholders’ equity
|
194,835 | 165,954 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 1,886,047 | $ | 1,609,404 |
Three
Months Ended
|
||||||||
March
31
|
||||||||
2008
|
2007
|
|||||||
Interest
Income
|
||||||||
Loans
|
$ | 22,812 | $ | 22,298 | ||||
Investment
securities:
|
||||||||
Taxable
|
1,149 | 1,128 | ||||||
Non-taxable
|
336 | 304 | ||||||
Interest-bearing
deposits
|
99 | 11 | ||||||
FHLB stock
dividends
|
243 | 292 | ||||||
Total
interest income
|
24,639 | 24,033 | ||||||
Interest
Expense
|
||||||||
Deposits
|
8,670 | 9,540 | ||||||
FHLB advances and
other
|
1,655 | 2,003 | ||||||
Subordinated
debentures
|
529 | 337 | ||||||
Notes payable
|
194 | 169 | ||||||
Total
interest expense
|
11,048 | 12,049 | ||||||
Net
interest income
|
13,591 | 11,984 | ||||||
Provision
for loan losses
|
1,058 | 457 | ||||||
Net
interest income after provision for loan losses
|
12,533 | 11,527 | ||||||
Non-interest
Income
|
||||||||
Service fees and other
charges
|
2,623 | 2,518 | ||||||
Insurance and investment sales
commission income
|
1,936 | 1,703 | ||||||
Mortgage banking
income
|
1,114 | 782 | ||||||
Gain on sale of non-mortgage
loans
|
35 | 5 | ||||||
Gain on sale of
securities
|
(81 | ) | − | |||||
Trust income
|
111 | 86 | ||||||
Income from Bank Owned Life
Insurance
|
273 | 294 | ||||||
Other non-interest
income
|
4 | 219 | ||||||
Total
non-interest income
|
6,015 | 5,607 | ||||||
Non-interest
Expense
|
||||||||
Compensation and
benefits
|
7,124 | 6,552 | ||||||
Occupancy
|
1,669 | 1,403 | ||||||
State franchise
tax
|
494 | 363 | ||||||
Data processing
|
1,029 | 953 | ||||||
Acquisition related
charges
|
750 | − | ||||||
Amortization of
intangibles
|
191 | 143 | ||||||
Other non-interest
expense
|
2,219 | 2,357 | ||||||
Total
non-interest expense
|
13,476 | 11,771 | ||||||
Income
before income taxes
|
5,072 | 5,363 | ||||||
Federal
income taxes
|
1,653 | 1,757 | ||||||
Net
Income
|
3,419 | 3,606 | ||||||
Earnings
per share (Note 7)
|
||||||||
Basic
|
$ | 0.48 | $ | 0.51 | ||||
Diluted
|
$ | 0.47 | $ | 0.50 | ||||
Dividends
declared per share (Note 6)
|
$ | 0.26 | $ | 0.25 | ||||
Average
shares outstanding (Note 7)
|
||||||||
Basic
|
7,195 | 7,119 | ||||||
Diluted
|
7,241 | 7,229 |
See
accompanying notes
|
Three
Months Ended
|
||||||||
March
31
|
||||||||
2008
|
2007
|
|||||||
Balance
at beginning of period
|
$ | 165,954 | $ | 159,825 | ||||
Adjustment
to initially apply FIN 48
|
− | (200 | ) | |||||
Balance
at beginning of period as adjusted
|
165,954 | 159,625 | ||||||
Comprehensive
income:
|
||||||||
Net income
|
3,419 | 3,606 | ||||||
Other comprehensive income
(loss)
|
(331 | ) | 97 | |||||
Total
comprehensive income
|
3,088 | 3,703 | ||||||
ESOP
shares released
|
551 | 701 | ||||||
Stock
option expense
|
54 | 59 | ||||||
Tax
benefit of employee plans
|
55 | 44 | ||||||
Shares
issued under stock option plans
|
555 | 272 | ||||||
Treasury
shares repurchased
|
(462 | ) | (326 | ) | ||||
Acquisition
of Huber, Harger, Welt and Smith
|
− | 2,250 | ||||||
Acquisition
of Pavilion Bancorp
|
27,139 | − | ||||||
Common
cash dividends declared (Note 6)
|
(2,101 | ) | (1,788 | ) | ||||
Balance
at end of period
|
$ | 194,835 | $ | 164,540 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2008
|
2007
|
|||||||
Operating
Activities
|
||||||||
Net
cash provided by operating activities
|
$ | 2,360 | $ | 6,399 | ||||
Investing
Activities
|
||||||||
Proceeds
from maturities of held-to-maturity securities
|
36 | 66 | ||||||
Proceeds
from maturities of available-for-sale securities
|
8,394 | 5,272 | ||||||
Proceeds
from sale of real estate and other assets held for sale
|
235 | 466 | ||||||
Net
cash received in acquisition of Huber, Harger, Welt and
Smith
|
− | 188 | ||||||
Net
cash paid for in acquisition of Pavilion Bancorp, Inc.
|
(23,585 | ) | − | |||||
Proceeds
from sale of non-mortgage loans
|
2,750 | 251 | ||||||
Purchases
of available-for-sale securities
|
(11,024 | ) | (3,693 | ) | ||||
Investment
in bank owned life insurance
|
− | (2,060 | ) | |||||
Purchases
of office properties and equipment
|
(1,628 | ) | (852 | ) | ||||
Net
(increase) decrease in loans receivable
|
(13,720 | ) | 1,670 | |||||
Net
cash (used in) provided by investing activities
|
(38,542 | ) | 1,308 | |||||
Financing
Activities
|
||||||||
Net
increase (decrease) in deposits and advance payments by
borrowers
|
(13,453 | ) | 7,630 | |||||
Repayment
of Federal Home Loan Bank long-term advances
|
(222 | ) | (217 | ) | ||||
Net
decrease in Federal Home Loan Bank short-term advances
|
(500 | ) | (33,100 | ) | ||||
Proceeds
from issuance of subordinated debentures
|
− | 15,464 | ||||||
Proceeds
from Federal Home Loan Bank long-term advances
|
19,000 | − | ||||||
Decrease
in securities sold under repurchase agreements
|
(940 | ) | (6,974 | ) | ||||
Net
increase in short-term borrowings
|
10,000 | − | ||||||
Purchase
of common stock for treasury
|
(462 | ) | (326 | ) | ||||
Cash
dividends paid
|
(1,826 | ) | (1,767 | ) | ||||
Proceeds
from exercise of stock options
|
555 | 272 | ||||||
Excess
tax benefits from exercise of stock options
|
55 | 44 | ||||||
Net
cash provided by (used in) financing activities
|
12,207 | (18,974 | ) | |||||
Increase
(decrease) in cash and cash equivalents
|
(23,975 | ) | (11,267 | ) | ||||
Cash
and cash equivalents at beginning of period
|
65,553 | 50,023 | ||||||
Cash
and cash equivalents at end of period
|
$ | 41,578 | $ | 38,756 | ||||
Supplemental
cash flow information:
|
||||||||
Interest
paid
|
$ | 10,817 | $ | 11,900 | ||||
Income
taxes paid
|
$ | 1,230 | $ | − | ||||
Transfers
from loans to other real estate owned and other
|
||||||||
assets held for
sale
|
$ | 19 | $ | 655 |
|
Ÿ
|
Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities that
the reporting entity has the ability to access at the measurement
date.
|
|
Ÿ
|
Level 2: Inputs other
than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly. These might include quoted
prices for similar assets or liabilities in active markets, quoted prices
for identical or similar assets or liabilities in markets that are not
active, inputs other that quoted prices that are observable for the asset
or liability (such as interest rates, prepayment speeds, credit risks,
etc.) or inputs that are derived principally from or corroborated by
market data by a correlation or other
means.
|
|
Ÿ
|
Level 3: Unobservable
inputs for determining fair value of assets and liabilities that reflect
an entity’s own assumptions about the assumptions that market participants
would use in pricing the assets or
liabilities.
|
Level
1 Inputs
|
Level
2 Inputs
|
Level
3 Inputs
|
Total
Fair
Value
|
|||||||||||||
(In
Thousands)
|
||||||||||||||||
Available
for sale securities
|
$ | - | $ | 123,566 | $ | - | $ | 123,566 |
Level
1 Inputs
|
Level
2 Inputs
|
Level
3 Inputs
|
Total
Fair
Value
|
|||||||||||||
(In
Thousands)
|
||||||||||||||||
Impaired
loans
|
$ | - | $ | - | $ | 5,459 | $ | 5,459 | ||||||||
Mortgage
servicing rights
|
- | - |
3,373
|
3,373 |
Three
months ended March 31
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
Options
Outstanding
|
Weighted
Average
Option
Prices
|
Options
Outstanding
|
Weighted
Average
Option
Prices
|
|||||||||||||
Options
outstanding, beginning of period
|
418,339 | $ | 20.79 | 404,154 | $ | 19.36 | ||||||||||
Forfeited
or cancelled
|
(6,102 | ) | 26.19 | (50 | ) | 25.89 | ||||||||||
Exercised
|
(37,486 | ) | 14.82 | (19,422 | ) | 14.01 | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Options
outstanding, end of period
|
374,751 | $ | 21.30 | 384,682 | $ | 19.63 | ||||||||||
Vested
or expected to vest at
period
end
|
358,675 | $ | 21.04 | |||||||||||||
Exercisable
at period end
|
230,451 | $ | 18.13 |
Three
Months Ended March 31
|
||||||||
2008
|
2007
|
|||||||
Cash
received from option exercises
|
$ | 555,355 | $ | 272,146 | ||||
Tax
benefit realized from option exercises
|
54,589 | 43,774 | ||||||
Intrinsic
value of options exercised
|
216,407 | 291,253 |
March
14, 2008
|
||||
(In
Thousands)
|
||||
Assets
|
||||
Cash
and cash equivalents
|
$ | 4,815 | ||
Investment
securities
|
9,145 | |||
Loans,
net of allowance for loan losses
|
231,156 | |||
Premises
and equipment
|
8,744 | |||
Federal
Home Loan Bank stock
|
2,036 | |||
Goodwill
and other intangibles
|
27,050 | |||
Other
assets
|
6,836 | |||
Total
Assets
|
289,782 | |||
Liabilities
|
||||
Deposits
|
209,047 | |||
Borrowings
|
18,403 | |||
Other
liabilities
|
6,793 | |||
Total
Liabilities
|
234,243 | |||
Net
assets acquired
|
$ | 55,539 | ||
March
14, 2008
|
||||
(In
Thousands)
|
||||
Purchase
price
|
$ | 55,539 | ||
Pavilion’s
carrying value of net assets acquired
|
(27,714 | ) | ||
Excess
purchase price over Pavilion’s carrying
|
||||
Value
of net assets acquired
|
27,825 | |||
Purchase
accounting adjustments
|
||||
Portfolio
loans
|
(5,289 | ) | ||
Premises
and equipment
|
827 | |||
Mortgage
servicing rights
|
(1,010 | ) | ||
Deposits
|
752 | |||
Deferred
tax liabilities
|
3,945 | |||
Total
net tangible assets
|
(775 | ) | ||
Core
deposit and other intangibles
|
(6,555 | ) | ||
Goodwill
|
$ | 20,495 | ||
Three
months ended March 31,
|
||||||||
2008
|
2007
|
|||||||
Numerator
for basic and diluted earnings per share – Net income
|
$ | 3,419 | $ | 3,606 | ||||
Denominator:
|
||||||||
Denominator for basic EPS –
weighted average shares
|
7,195 | 7,119 | ||||||
Effect of employee stock
options
|
46 | 110 | ||||||
Denominator for diluted
EPS
|
7,241 | 7,229 | ||||||
Basic
earnings per share from net income
|
$ | 0.48 | $ | 0.51 | ||||
Diluted
EPS from net income
|
$ | 0.47 | $ | 0.50 |
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
At
March 31, 2008
|
||||||||||||||||
Available-for-Sale
Securities:
|
||||||||||||||||
U.S. Treasury securities and
obligations
of U.S. Government
corporations and
agencies
|
$ | 27,164 | $ | 485 | $ | - | $ | 27,649 | ||||||||
Mortgage-backed
securities
|
31,721 | 579 | (23 | ) | 32,277 | |||||||||||
REMICs
|
3,064 | 71 | - | 3,135 | ||||||||||||
Collateralized mortgage
obligations
|
20,393 | 420 | (50 | ) | 20,763 | |||||||||||
Trust preferred
stock
|
11,156 | - | (2,240 | ) | 8,916 | |||||||||||
Obligations of state and political
subdivisions
|
30,016 | 839 | (29 | ) | 30,826 | |||||||||||
Totals
|
$ | 123,514 | $ | 2,394 | $ | (2,342 | ) | $ | 123,566 | |||||||
Held-to-Maturity
Securities:
|
||||||||||||||||
FHLMC
certificates
|
$ | 191 | $ | 8 | $ | - | $ | 199 | ||||||||
FNMA certificates
|
445 | 3 | - | 448 | ||||||||||||
GNMA certificates
|
145 | 2 | - | 148 | ||||||||||||
Obligations of state and
political subdivisions
|
300 | 35 | - | 335 | ||||||||||||
Totals
|
$ | 1,081 | $ | 48 | $ | - | $ | 1,129 |
At
December 31, 2007
|
||||||||||||||||
Available-for-Sale
Securities:
|
||||||||||||||||
U.S. Treasury securities and
obligations
of U.S. Government
corporations and
agencies
|
$ | 24,565 | $ | 354 | $ | (1 | ) | $ | 24,918 | |||||||
Mortgage-backed
securities
|
26,453 | 289 | (55 | ) | 26,687 | |||||||||||
REMICs
|
3,064 | 41 | - | 3,105 | ||||||||||||
Collateralized mortgage
obligations
|
20,103 | 173 | (77 | ) | 20,199 | |||||||||||
Trust preferred
stock
|
9,374 | 29 | (761 | ) | 8,642 | |||||||||||
Obligations of state and
political subdivisions
|
28,251 | 568 | - | 28,819 | ||||||||||||
Totals
|
$ | 111,810 | $ | 1,454 | $ | (894 | ) | $ | 112,370 | |||||||
Held-to-Maturity
Securities:
|
||||||||||||||||
FHLMC
certificates
|
$ | 195 | $ | 6 | $ | - | $ | 201 | ||||||||
FNMA certificates
|
472 | 4 | (1 | ) | 475 | |||||||||||
GNMA certificates
|
150 | 2 | - | 152 | ||||||||||||
Obligations of state and
political
subdivisions
|
300 | 33 | - | 333 | ||||||||||||
Totals
|
$ | 1,117 | $ | 45 | $ | (1 | ) | $ | 1,161 |
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
|
Losses
|
|||||||||||||||||||
(In
Thousands)
|
||||||||||||||||||||||||
At
March 31, 2008
|
||||||||||||||||||||||||
Available-for-sale
securities:
|
||||||||||||||||||||||||
U.S.
treasury securities and obligations of U.S. government
corporations
and agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Mortgage-backed
securities
|
2,928 | (22 | ) | 1,687 | (1 | ) | 4,615 | (23 | ) | |||||||||||||||
Collateralized
mortgage obligations and REMICs
|
929 | (48 | ) | 452 | (2 | ) | 1,381 | (50 | ) | |||||||||||||||
Trust
preferred stock
|
6,619 | (1,353 | ) | 966 | (887 | ) | 7,585 | (2,240 | ) | |||||||||||||||
Obligations
of state and political subdivisions
|
2,634 | (28 | ) | 173 | (1 | ) | 2,807 | (29 | ) | |||||||||||||||
Held
to maturity securities:
|
||||||||||||||||||||||||
Mortgage-backed
securities
|
140 | - | 74 | - | 214 | - | ||||||||||||||||||
Total
temporarily
impaired
securities
|
$ | 13,250 | $ | (1,451 | ) | $ | 3,352 | $ | (891 | ) | $ | 16,602 | $ | (2,342 | ) |
March
31,
2008
|
December
31,
2007
|
|||||||
Real
Estate:
|
||||||||
One-to-four family
residential
|
$ | 265,413 | $ | 231,921 | ||||
Construction
|
17,328 | 13,146 | ||||||
Non-residential and
multi-family
|
733,476 | 601,851 | ||||||
1,016,217 | 846,918 | |||||||
Other
Loans:
|
||||||||
Commercial
|
332,772 | 283,072 | ||||||
Consumer finance
|
41,209 | 37,743 | ||||||
Home equity and
improvement
|
151,563 | 128,080 | ||||||
525,544 | 448,895 | |||||||
Total
real estate and other loans
|
1,541,761 | 1,295,813 | ||||||
Deduct:
|
||||||||
Loans in process
|
5,363 | 5,085 | ||||||
Net deferred loan origination
fees and costs
|
1,044 | 1,032 | ||||||
Allowance for loan
loss
|
18,556 | 13,890 | ||||||
Totals
|
$ | 1,516,798 | $ | 1,275,806 |
Three
Months ended
March
31,
|
||||||||
2008
|
2007
|
|||||||
Balance
at beginning of period
|
$ | 13,890 | $ | 13,579 | ||||
Provision
for loan losses
|
1,058 | 457 | ||||||
Reserve
acquired from Pavilion
|
4,099 | |||||||
Charge-offs:
|
||||||||
One-to-four family residential
real estate
|
57 | 85 | ||||||
Non-residential and multi-family
real estate
|
464 | 146 | ||||||
Commercial
|
- | 81 | ||||||
Home equity and
improvement
|
72 | - | ||||||
Consumer finance
|
27 | 71 | ||||||
Total
charge-offs
|
620 | 383 | ||||||
Recoveries
|
129 | 99 | ||||||
Net
charge-offs
|
491 | 284 | ||||||
Ending
allowance
|
$ | 18,556 | $ | 13,752 |
March
31,
2008
|
December
31,
2007
|
|||||||
(in
thousands)
|
||||||||
Non-accrual
loans
|
$ | 14,275 | $ | 9,217 | ||||
Loans
over 90 days past due and still accruing
|
- | - | ||||||
Total
non-performing loans
|
14,275 | $ | 9,217 | |||||
Real
estate owned (REO)
|
3,448 | 2,460 | ||||||
Total
non-performing assets
|
$ | 17,723 | $ | 11,677 |
March
31,
2008
|
December
31,
2007
|
|||||||
Non-interest-bearing
checking accounts
|
$ | 168,049 | $ | 121,563 | ||||
Interest-bearing
checking and money market accounts
|
408,979 | 342,367 | ||||||
Savings
accounts
|
144,184 | 105,873 | ||||||
Retail
certificates of deposit less than $100,000
|
529,990 | 509,720 | ||||||
Retail
certificates of deposit greater than $100,000
|
162,400 | 137,927 | ||||||
Brokered
or national certificates of deposit
|
99 | 408 | ||||||
$ | 1,413,701 | $ | 1,217,858 |
March
31,
2008
|
December
31,
2007
|
|||||||
(in
thousands)
|
||||||||
FHLB
Advances:
|
||||||||
Overnight
borrowings
|
$ | 10,800 | $ | 11,300 | ||||
Single
maturity fixed rate advances
|
10,000 | 10,000 | ||||||
Single
maturity LIBOR based advances
|
45,000 | 45,000 | ||||||
Putable
advances
|
64,000 | 45,000 | ||||||
Strike-rate
advances
|
27,000 | 27,000 | ||||||
Variable
rate advances
|
4,500 | - | ||||||
Amortizable
mortgage advances
|
2,666 | 1,236 | ||||||
Total
|
$ | 163,966 | $ | 139,536 | ||||
Borrowings
on Bank Line of Credit
|
$ | 20,000 | $ | - | ||||
Junior
subordinated debentures owed to
unconsolidated
subsidiary trusts
|
$ | 36,083 | $ | 36,083 | ||||
March
31,
2008
|
December
31,
2007
|
|||||||
First
Defiance Statutory Trust I due December 2035
|
$ | 20,619 | $ | 20,619 | ||||
First
Defiance Statutory Trust II due June 2037
|
15,464 | 15,464 | ||||||
Total
junior subordinated debentures owed to unconsolidated subsidiary
Trusts
|
$ | 36,083 | $ | 36,083 |
March
31,
2008
|
December
31,
2007
|
|||||||
(In
Thousands)
|
||||||||
Loan
commitments
|
$ | 378,539 | $ | 280,152 | ||||
Standby
Letters of Credit
|
18,921 | 9,147 | ||||||
Total
|
$ | 397,460 | $ | 289,299 |
Three
Months Ended
March
31,
|
||||||||
2008
|
2007
|
|||||||
(In
Thousands)
|
||||||||
Service
cost-benefits attributable
to
service during the period
|
$ | 13 | $ | 12 | ||||
Interest
cost on accumulated
postretirement
benefit obligation
|
37 | 31 | ||||||
Net
amortization and deferral
|
15 | 11 | ||||||
Net
periodic postretirement
benefit cost
|
$ | 65 | $ | 54 |
Three Months Ended March
31,
|
||||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest(1)
|
Rate(2)
|
Balance
|
Interest(1)
|
Rate(2)
|
|||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
receivable
|
$ | 1,326,468 | $ | 22,826 | 6.92 | % | $ | 1,226,240 | $ | 22,308 | 7.38 | % | ||||||||||||
Securities
|
116,717 | 1,675 | 5.80 | 112,999 | 1,596 | 5.72 | ||||||||||||||||||
Interest-earning
deposits
|
14,087 | 99 | 2.83 | 1,124 | 11 | 3.97 | ||||||||||||||||||
FHLB
stock and other
|
18,610 | 243 | 5.25 | 18,585 | 292 | 6.37 | ||||||||||||||||||
Total
interest-earning assets
|
1,475,882 | 24,843 | 6.77 | 1,358,948 | 24,207 | 7.22 | ||||||||||||||||||
Non-interest-earning
assets
|
169,554 | 151,228 | ||||||||||||||||||||||
Total
assets
|
$ | 1,645,436 | $ | 1,510,176 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Deposits
|
$ | 1,111,711 | $ | 8,670 | 3.14 | % | $ | 1,030,831 | $ | 9,540 | 3.75 | % | ||||||||||||
FHLB
advances and other
|
146,520 | 1,655 | 4.54 | 159,840 | 2,003 | 5.08 | ||||||||||||||||||
Notes
payable
|
25,958 | 194 | 3.01 | 22,501 | 169 | 3.05 | ||||||||||||||||||
Subordinated
debentures
|
36,281 | 529 | 5.86 | 20,899 | 337 | 6.54 | ||||||||||||||||||
Total
interest-bearing liabilities
|
1,320,470 | 11,048 | 3.37 | 1,234,071 | 12,049 | 3.96 | ||||||||||||||||||
Non-interest
bearing deposits
|
124,643 | - | 97,934 | - | ||||||||||||||||||||
Total
including non-interest bearing
|
||||||||||||||||||||||||
demand
deposits
|
1,445,113 | 11,048 | 3.07 | 1,332,005 | 12,049 | 3.67 | ||||||||||||||||||
Other
non-interest-bearing liabilities
|
28,630 | 17,043 | ||||||||||||||||||||||
Total
liabilities
|
1,473,743 | 1,349,048 | ||||||||||||||||||||||
Stockholders'
equity
|
171,693 | 161,128 | ||||||||||||||||||||||
Total
liabilities and stock-
|
||||||||||||||||||||||||
holders'
equity
|
$ | 1,645,436 | $ | 1,510,176 | ||||||||||||||||||||
Net
interest income; interest
|
||||||||||||||||||||||||
rate
spread
|
$ | 13,795 | 3.40 | % | $ | 12,158 | 3.26 | % | ||||||||||||||||
Net
interest margin (3)
|
3.76 | % | 3.63 | % | ||||||||||||||||||||
Average
interest-earning assets
|
||||||||||||||||||||||||
to
average interest-bearing
|
||||||||||||||||||||||||
liabilities
|
112 | % | 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,
2008
|
December
31,
2007
|
|||||||
(in
thousands)
|
||||||||
Non-accrual
loans
|
$ | 14,275 | $ | 9,217 | ||||
Loans
over 90 days past due and still accruing
|
- | - | ||||||
Total
non-performing loans
|
$ | 14,275 | $ | 9,217 | ||||
Real
estate owned (REO)
|
3,448 | 2,460 | ||||||
Total
non-performing assets
|
$ | 17,723 | $ | 11,677 | ||||
Allowance
for loans losses as a percentage of total loans
|
1.21 | % | 1.08 | % | ||||
Allowance
for loan losses as a percentage of non-
performing
assets
|
104.70 | % | 118.95 | % | ||||
Allowance
for loan losses as a percentage of non-
performing
loans
|
129.99 | % | 150.70 | % | ||||
Total
non-performing assets as a percentage of total assets
|
0.94 | % | 0.73 | % | ||||
Total
non-performing loans as a percentage of total loans
|
0.93 | % | 0.71 | % |
Core Capital
|
Risk-Based Capital
|
|||||||||||||||
Adequately
Capitalized
|
Well
Capitalized
|
Adequately
Capitalized
|
Well
Capitalized
|
|||||||||||||
Regulatory
capital
|
$ | 181,289 | $ | 181,289 | $ | 196,816 | $ | 196,816 | ||||||||
Minimum
required regulatory capital
|
72,601 | 90,770 | 129,308 | 161,634 | ||||||||||||
Excess
regulatory capital
|
$ | 108,688 | $ | 90,519 | $ | 67,508 | $ | 35,182 | ||||||||
Regulatory
capital as a percentage of assets (1)
|
10.0 | % | 10.0 | % | 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
|
6.0 | % | 5.0 | % | 4.2 | % | 2.2 | % |
(1)
|
Core
capital is computed as a percentage of adjusted total assets of $1.82
billion. Risk-based capital is computed as a percentage of total
risk-weighted assets of $1.62
billion.
|
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, 2008 –
January
31, 2008
|
20,419
|
$21.06
|
20,419
|
102,440
|
February
1, 2008 –
February
29, 2008
|
-0-
|
n/a
|
-0-
|
102,440
|
March
1, 2008 –
March
31, 2008
|
1,659
|
$19.30
|
1,659
|
100,781
|
Total
for 2008
First
Quarter
|
22,078
|
$20.93
|
22,078
|
100,781
|
|
Not
applicable.
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders
|
FOR
|
AGAINST
|
ABSTAIN
|
|
5,733,190
|
94,170
|
31,765
|
|
I.
|
Nominees
for Director with Three-year Terms Expiring in
2011:
|
NOMINEE
|
FOR
|
WITHHELD
|
||
Jean
A. Hubbard
|
5,916,933
|
194,504
|
||
James
L. Rohrs
|
5,986,172
|
125,265
|
||
Thomas
A. Voigt
|
5,942,711
|
168,726
|
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 12,
2008
|
By:
|
/s/ William J.
Small
|
William
J. Small
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
Date: May 12,
2008
|
By:
|
/s/ John C.
Wahl
|
John
C. Wahl
|
||
Executive
Vice President, Chief
|
||
Financial
Officer and
|
||
Treasurer
|