ý
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934 For the Quarterly Period Ended March
31, 2006
|
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
|
Page
Number
|
||
2
|
||
4
|
||
5
|
||
6
|
||
7
|
||
23
|
||
31
|
||
32
|
||
33
|
||
33
|
||
33
|
||
33
|
||
34
|
||
34
|
||
34
|
||
|
35
|
March
31, 2006
|
December
31, 2005
|
||||||
ASSETS
|
|||||||
Cash
and cash equivalents:
|
|||||||
Cash
and amounts due from
|
|||||||
depository
institutions
|
$
|
31,582
|
$
|
44,066
|
|||
Interest-bearing
deposits
|
6,459
|
5,190
|
|||||
38,041
|
49,256
|
||||||
Securities:
|
|||||||
Available-for-sale,
carried at fair value
|
110,659
|
113,079
|
|||||
Held-to-maturity,
carried at amortized cost
|
|||||||
(approximate
fair value $1,754 and $1,845
|
|||||||
at
March 31, 2006 and December 31,
|
|||||||
2005
respectively)
|
1,697
|
1,775
|
|||||
112,356
|
114,854
|
||||||
Loans
held for sale
|
4,370
|
5,282
|
|||||
Loans
receivable, net
|
1,189,364
|
1,164,481
|
|||||
Accrued
interest receivable
|
6,262
|
6,207
|
|||||
Federal
Home Loan Bank stock and other
|
|||||||
interest-earning
assets
|
17,792
|
17,544
|
|||||
Bank
owned life insurance
|
24,583
|
24,346
|
|||||
Office
properties and equipment
|
32,943
|
32,429
|
|||||
Real
estate and other assets held for sale
|
3,710
|
404
|
|||||
Goodwill
|
35,084
|
35,084
|
|||||
Core
deposit and other intangibles
|
3,937
|
4,117
|
|||||
Mortgage
servicing rights
|
5,141
|
5,063
|
|||||
Other
assets
|
4,607
|
2,015
|
|||||
Total
assets
|
$
|
1,478,190
|
$
|
1,461,082
|
March
31, 2006
|
December
31, 2005
|
||||||
LIABILITIES
AND
|
|||||||
STOCKHOLDERS'
EQUITY
|
|||||||
Non-interest-bearing
deposits
|
$
|
94,515
|
$
|
103,498
|
|||
Interest-bearing
deposits
|
987,280
|
966,003
|
|||||
Total
deposits
|
1,081,795
|
1,069,501
|
|||||
Advances
from Federal Home Loan Bank
|
185,449
|
180,960
|
|||||
Notes
payable and other interest-bearing liabilities
|
22,355
|
25,748
|
|||||
Subordinated
debentures
|
20,619
|
20,619
|
|||||
Advance
payments by borrowers for taxes and insurance
|
357
|
605
|
|||||
Deferred
taxes
|
629
|
795
|
|||||
Other
liabilities
|
12,941
|
11,638
|
|||||
Total
liabilities
|
1,324,145
|
1,309,866
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Preferred
stock, no par value per share:
|
|||||||
5,000
shares authorized; no shares
|
|||||||
issued
|
-
|
-
|
|||||
Common
stock, $.01 par value per share: 20,000
|
|||||||
shares
authorized; 11,703 shares issued and
|
|||||||
7,175
and 7,085 shares outstanding, respectively
|
117
|
117
|
|||||
Additional
paid-in capital
|
109,147
|
108,626
|
|||||
Stock
acquired by ESOP
|
(840
|
)
|
(1,053
|
)
|
|||
Accumulated
other comprehensive income,
|
|||||||
net
of income taxes of $(309)
|
|||||||
and
$(13), respectively
|
(574
|
)
|
(22
|
)
|
|||
Retained
earnings
|
113,856
|
112,041
|
|||||
Treasury
stock, at cost, 4,528 and 4,616 shares,
|
|||||||
respectively
|
(67,661
|
)
|
(68,493
|
)
|
|||
Total
stockholders' equity
|
154,039
|
151,216
|
|||||
Total
liabilities and stockholders' equity
|
$
|
1,478,190
|
$
|
1,461,082
|
For the
Three Months Ended
|
|||||||
March
31,
|
|||||||
2006
|
2005
|
||||||
Interest
Income
|
|||||||
Loans
|
$
|
20,047
|
$
|
14,763
|
|||
Investment
securities
|
1,343
|
1,438
|
|||||
Interest-bearing
deposits
|
71
|
71
|
|||||
FHLB
stock dividends
|
248
|
165
|
|||||
Total
interest income
|
21,709
|
16,437
|
|||||
Interest
Expense
|
|||||||
Deposits
|
6,823
|
3,945
|
|||||
FHLB
advances and other
|
2,147
|
1,800
|
|||||
Subordinated
debentures
|
298
|
-
|
|||||
Notes
payable
|
132
|
81
|
|||||
Total
interest expense
|
9,400
|
5,826
|
|||||
Net
interest income
|
12,309
|
10,611
|
|||||
Provision
for loan losses
|
383
|
347
|
|||||
Net
interest income after provision for loan losses
|
11,926
|
10,264
|
|||||
Non-interest
Income
|
|||||||
Service
fees and other charges
|
1,791
|
1,201
|
|||||
Insurance
commission income
|
1,660
|
1,213
|
|||||
Mortgage
banking income
|
734
|
862
|
|||||
Gain
on sale of securities
|
-
|
621
|
|||||
Trust
income
|
79
|
78
|
|||||
Income
from Bank Owned Life Insurance
|
237
|
177
|
|||||
Other
non-interest income
|
15
|
110
|
|||||
Total
non-interest income
|
4,516
|
4,262
|
|||||
Non-interest
Expense
|
|||||||
Compensation
and benefits
|
6,106
|
5,512
|
|||||
Occupancy
|
1,219
|
1,029
|
|||||
SAIF
deposit insurance premiums (credit)
|
35
|
31
|
|||||
State
franchise tax
|
327
|
284
|
|||||
Acquisition
related charges
|
-
|
884
|
|||||
Data
processing
|
914
|
813
|
|||||
Amortization
of intangibles
|
179
|
114
|
|||||
Other
non-interest expense
|
1,962
|
1,579
|
|||||
Total
non-interest expense
|
10,742
|
10,246
|
|||||
Income
before income taxes
|
5,700
|
4,280
|
|||||
Federal
income taxes
|
1,848
|
1,409
|
|||||
Net
Income
|
$
|
3,852
|
$
|
2,871
|
|||
Earnings
per share (Note 4)
|
|||||||
Basic
|
$
|
0.55
|
$
|
0.43
|
|||
Diluted
|
$
|
0.54
|
$
|
0.41
|
|||
Dividends
declared per share (Note 3)
|
$
|
0.24
|
$
|
0.22
|
|||
Average
shares outstanding (Note 4)
|
|||||||
Basic
|
7,005
|
6,656
|
|||||
Diluted
|
7,182
|
6,929
|
Three
Months Ended
|
|||||||
March
31,
|
|||||||
2006
|
2005
|
||||||
Balance
at beginning of period
|
$
|
151,216
|
$
|
126,874
|
|||
Comprehensive
Income
|
|||||||
Net
income
|
3,852
|
2,871
|
|||||
Other
comprehensive income (loss)
|
(552
|
)
|
(1,445
|
)
|
|||
Total
comprehensive income
|
3,300
|
1,426
|
|||||
ESOP
shares released
|
675
|
671
|
|||||
Stock
option expense
|
59
|
-
|
|||||
Amortization
of deferred compensation
|
|||||||
Of
Management Recognition Plan
|
-
|
1
|
|||||
Shares
issued under stock option plans
|
1,215
|
482
|
|||||
Treasury
shares repurchased
|
(726
|
)
|
(582
|
)
|
|||
Shares
issued to acquire ComBanc, Inc.
|
-
|
18,772
|
|||||
Common
cash dividends declared (Note 5)
|
(1,694
|
)
|
(1,508
|
)
|
|||
Balance
at March 31,
|
$
|
154,045
|
$
|
146,136
|
Three
Months
|
|||||||
Ended
March 31,
|
|||||||
2006
|
2005
|
||||||
Operating
Activities
|
|||||||
Net
cash provided by operating activities
|
5,003
|
2,843
|
|||||
Investing
Activities
|
|||||||
Proceeds
from maturities of held-to-maturity securities
|
77
|
75
|
|||||
Proceeds
from maturities of available-for-sale securities
|
4,131
|
6,016
|
|||||
Proceeds
from sale of available-for-sale securities
|
-
|
10,986
|
|||||
Proceeds
from sales of real estate and
|
|||||||
other
assets held for sale
|
596
|
65
|
|||||
Proceeds
from sale of property, plant and equipment
|
11
|
448
|
|||||
Net
cash received for acquisition of ComBanc, Inc
|
-
|
52,340
|
|||||
Purchases
of available-for-sale securities
|
(2,591
|
)
|
(11,779
|
)
|
|||
Purchases
of office properties and equipment
|
(1,223
|
)
|
(1,417
|
)
|
|||
Net
increase in loans receivable
|
(29,273
|
)
|
(15,730
|
)
|
|||
Net
cash provided by/used in investing activities
|
(28,272
|
)
|
41,004
|
||||
Financing
Activities
|
|||||||
Net
increase (decrease) in deposits
|
12,122
|
(10,803
|
)
|
||||
Repayment
of Federal Home Loan Bank long-term advances
|
(1,401
|
)
|
(581
|
)
|
|||
Net
increase (decrease) in Federal Home Loan Bank
|
|||||||
short-term
advances
|
5,900
|
(24,000
|
)
|
||||
Decrease
in short term line of credit
|
-
|
(1,000
|
)
|
||||
Decrease
in securities sold under repurchase agreements
|
(3,393
|
)
|
(775
|
)
|
|||
Purchase
of common stock for treasury
|
(726
|
)
|
(582
|
)
|
|||
Cash
dividends paid
|
(1,663
|
)
|
(1,342
|
)
|
|||
Proceeds
from exercise of stock options
|
1,215
|
482
|
|||||
Net
cash provided by (used in) financing activities
|
12,054
|
(38,601
|
)
|
||||
(Decrease)
increase in cash and cash equivalents
|
(11,215
|
)
|
5,246
|
||||
Cash
and cash equivalents at beginning of period
|
49,256
|
20,521
|
|||||
Cash
and cash equivalents at end of period
|
$
|
38,041
|
$
|
25,767
|
|||
Supplemental
cash flow information:
|
|||||||
Interest
paid
|
$
|
9,422
|
$
|
5,456
|
|||
Income
taxes paid
|
$
|
-
|
$
|
-
|
|||
Transfers
from loans to other real estate
|
|||||||
owned
and other assets held for sale
|
$
|
3,902
|
$
|
335
|
Fair
value of assets acquired
|
$
|
13,927
|
||
Purchase
price
|
(38,339
|
)
|
||
Liabilities
assumed
|
$
|
175,588
|
Three
months ended March 31, 2006
|
||||||||||
Using
Previous
Accounting
|
SFAS
123(R)
Adjustments
|
As
Reported
|
||||||||
(dollars
in thousands, except per share data)
|
||||||||||
Income
before income taxes
|
$
|
5,757
|
$
|
(57
|
)
|
$
|
5,700
|
|||
Income
taxes
|
1,849
|
(1
|
)
|
1,848
|
||||||
Net
income
|
$
|
3,908
|
(56
|
)
|
$
|
3,852
|
||||
Basic
earnings per share
|
$
|
.56
|
$
|
(.01
|
)
|
$
|
.55
|
|||
Diluted
earnings per share
|
$
|
.54
|
$
|
-
|
$
|
.54
|
||||
Cash
flow from operating activities
|
$
|
5,003
|
$
|
-
|
$
|
5,003
|
Three
months ended March 31, 2005
|
||||||||||
As
Reported
|
Pro
Forma
Adjustments
|
Pro
Forma as
if
under
SFAS
123(R)
|
||||||||
(dollars
in thousands, except per share data)
|
||||||||||
Income
before income taxes
|
$
|
4,280
|
$
|
(57
|
)
|
$
|
4,223
|
|||
Income
taxes
|
1,409
|
(1
|
)
|
1,408
|
||||||
Net
income
|
$
|
2,871
|
(56
|
)
|
$
|
2,815
|
||||
Basic
earnings per share
|
$
|
.43
|
$
|
(.01
|
)
|
$
|
.42
|
|||
Diluted
earnings per share
|
$
|
.41
|
$
|
-
|
$
|
.41
|
||||
Cash
flow from operating activities
|
$
|
2,843
|
$
|
-
|
$
|
2,843
|
Three
months ended March 31, 2006
Total
options outstanding
|
||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Fair
Value
|
||||||||
Options
outstanding, beginning of period
|
569,099
|
$
|
16.00
|
$
|
4.05
|
|||||
Forfeited
or cancelled
|
(7,800
|
)
|
20.02
|
4.98
|
||||||
Exercised
|
(104,855
|
)
|
11.59
|
3.58
|
||||||
Granted
|
−
|
−
|
−
|
|||||||
Options
outstanding, end of period
|
456,444
|
$
|
16.95
|
$
|
4.15
|
|||||
Options
exercisable, end of period
|
299,491
|
$
|
13.93
|
$
|
3.56
|
Three
months ended March 31,
2006
Total unvested options
|
|||||||
Shares
|
Weighted
Average
Fair
Value
|
||||||
Unvested
options, beginning of period
|
164,853
|
$
|
5.26
|
||||
Vested
|
(1,000
|
)
|
4.73
|
||||
Granted
|
−
|
−
|
|||||
Forfeited
|
(6,900
|
)
|
5.18
|
||||
Unvested
options, end of period
|
156,953
|
$
|
5.27
|
Three
months ended
March
31,
|
|||||||
2006
|
2005
|
||||||
Proceeds
of options exercised
|
$
|
1,215
|
$
|
482
|
|||
Related
tax benefit recognized
|
185
|
122
|
|||||
Intrinsic
value of options exercised
|
1,602
|
660
|
Outstanding
|
Exercisable
|
||||||||||||
Range
of Exercise Prices
|
Shares
|
Weighted
Average
Remaining
Contractual
Life
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||
$8.25
- $12.99
|
101,990
|
1.0
|
101,990
|
$
|
10.71
|
||||||||
$13.00
- $17.99
|
194,051
|
4.1
|
162,651
|
14.21
|
|||||||||
$18.00
- $22.99
|
51,450
|
6.9
|
22,600
|
19.37
|
|||||||||
$23.00
- $27.99
|
108,953
|
8.5
|
12,250
|
26.92
|
|||||||||
Outstanding
at period end
|
456,444
|
4.8
|
299,491
|
$
|
13.93
|
Expected
average risk-free interest rate
|
4.44
|
%
|
||
Expected
average life (in years)
|
10.00
|
|||
Expected
volatility
|
22.3
|
%
|
||
Expected
dividend yield
|
3.15
|
%
|
Remainder
of 2006
|
$
|
188
|
||
2007
|
182
|
|||
2008
|
146
|
|||
2009
|
84
|
|||
2010
|
21
|
|||
Total
|
$
|
621
|
March
31, 2005
|
||||
(in
thousands, except per share amounts)
|
||||
Net
interest income
|
$
|
11,667
|
||
Net
income
|
2,676
|
|||
Net
income per share - basic
|
$
|
0.39
|
||
Net
income per share - diluted
|
$
|
0.38
|
Three
months ended March 31
|
|||||||
2006
|
2005
|
||||||
Numerator
for basic and diluted earnings
per share -Net income
|
$
|
3,852
|
$
|
2,871
|
|||
Denominator:
|
|||||||
Denominator
for basic earnings
per share - weighted average shares
|
7,005
|
6,656
|
|||||
Effect
of dilutive securities:
|
|||||||
Employee stock options
|
177
|
272
|
|||||
Unvested management recognition plan stock
|
-0-
|
1
|
|||||
Dilutive
potential common shares
|
177
|
273
|
|||||
Denominator
for diluted earnings per share -
adjusted weighted average shares and assumed
conversions
|
7,182
|
6,929
|
|||||
Basic
earnings per share from net income
|
$
|
0.55
|
$
|
0.43
|
|||
Diluted
earnings per share from net income
|
$
|
0.54
|
$
|
0.41
|
March
31, 2006
|
|||||||||||||
Amortized
ost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||
Available-for-Sale
Securities:
|
|||||||||||||
U.S.
Treasury securities and obligations
of
U.S. Government corporations and
agencies
|
$
|
40,141
|
$
|
102
|
$
|
(404
|
)
|
$
|
39,839
|
||||
Mortgage-backed
securities
|
19,144
|
5
|
(507
|
)
|
18,642
|
||||||||
REMICs
|
726
|
-
|
(5
|
)
|
721
|
||||||||
Collateralized
mortgage obligations
|
19,639
|
-
|
(486
|
)
|
19,153
|
||||||||
Trust
preferred stock
|
7,725
|
79
|
(10
|
)
|
7,794
|
||||||||
Obligations
of state and political
subdivisions
|
24,184
|
382
|
(56
|
)
|
24,510
|
||||||||
Totals
|
$
|
111,559
|
$
|
568
|
$
|
(1,468
|
)
|
$
|
110,659
|
||||
Held-to-Maturity
Securities:
|
|||||||||||||
FHLMC
certificates
|
$
|
306
|
$
|
7
|
$
|
-
|
$
|
313
|
|||||
FNMA
certificates
|
715
|
4
|
(5
|
)
|
714
|
||||||||
GNMA
certificates
|
231
|
-
|
(1
|
)
|
230
|
||||||||
Obligations
of state and political
subdivisions
|
445
|
52
|
-
|
497
|
|||||||||
Totals
|
$
|
1,697
|
$
|
63
|
$
|
(6
|
)
|
$
|
1,754
|
Duration
of Unrealized Loss Position
|
|||||||||||||||||||
Less
than 12 Months
|
12
Month or Longer
|
Total
|
|||||||||||||||||
Gross
|
Gross
|
||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loses
|
||||||||||||||
(In
Thousands)
|
|||||||||||||||||||
At
March 31, 2006
|
|||||||||||||||||||
Available-for-sale
securities:
|
|||||||||||||||||||
U.S.
treasury securities and obligations of U.S. government corporations
and
agencies
|
$
|
10,861
|
$
|
(156
|
)
|
$
|
14,741
|
$
|
(248
|
)
|
$
|
25,602
|
$
|
(404
|
)
|
||||
Mortgage-backed
securities
|
11,397
|
(213
|
)
|
6,900
|
(294
|
)
|
18,297
|
(507
|
)
|
||||||||||
Collateralized
mortgage obligations
|
8,354
|
(136
|
)
|
11,520
|
(355
|
)
|
19,874
|
(491
|
)
|
||||||||||
Trust
preferred stock
|
998
|
(10
|
)
|
-
|
-
|
998
|
(10
|
)
|
|||||||||||
Obligations
of state and political subdivisions
|
3,259
|
(55
|
)
|
19
|
(1
|
)
|
3,278
|
(56
|
)
|
||||||||||
|
|||||||||||||||||||
Held
to maturity securities:
|
|||||||||||||||||||
Mortgage-backed
securities
|
475
|
(2
|
)
|
228
|
(4
|
)
|
703
|
(6
|
)
|
||||||||||
Total
temporarily
impaired
securities
|
$
|
35,344
|
$
|
(572
|
)
|
$
|
33,408
|
$
|
(902
|
)
|
$
|
68,752
|
$
|
(1,474
|
)
|
December
31, 2005
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||
Available-for-Sale
Securities:
|
|||||||||||||
U.S.
Treasury securities and obligations
of
U.S. Government corporations and
agencies
|
$
|
41,173
|
$
|
217
|
$
|
(325
|
)
|
$
|
41,065
|
||||
Mortgage-backed
securities
|
19,959
|
35
|
(263
|
)
|
19,731
|
||||||||
REMICs
|
998
|
-
|
(7
|
)
|
991
|
||||||||
Collateralized
mortgage obligations
|
20,002
|
1
|
(330
|
)
|
19,673
|
||||||||
Trust
preferred stock
|
7,725
|
76
|
-
|
7,801
|
|||||||||
Obligations
of state and political
subdivisions
|
23,257
|
574
|
(13
|
)
|
23,818
|
||||||||
Totals
|
$
|
113,114
|
$
|
903
|
$
|
(938
|
)
|
$
|
113,079
|
||||
Held-to-Maturity
Securities:
|
|||||||||||||
FHLMC
certificates
|
$
|
333
|
$
|
11
|
$
|
-
|
$
|
344
|
|||||
FNMA
certificates
|
756
|
4
|
(3
|
)
|
757
|
||||||||
GNMA
certificates
|
241
|
-
|
(1
|
)
|
240
|
||||||||
Obligations
of state and political
subdivisions
|
445
|
59
|
-
|
504
|
|||||||||
Totals
|
$
|
1,775
|
$
|
74
|
$
|
(4
|
)
|
$
|
1,845
|
March
31,
2006
|
December
31,
2005
|
||||||
Real
Estate:
|
|||||||
One-to-four
family residential
|
$
|
268,380
|
$
|
275,497
|
|||
Construction
|
18,462
|
21,173
|
|||||
Non-residential
and multi-family
|
544,342
|
551,983
|
|||||
831,184
|
848,653
|
||||||
Other
Loans:
|
|||||||
Commercial
|
215,279
|
171,289
|
|||||
Consumer
finance
|
52,530
|
55,297
|
|||||
Home
equity and improvement
|
112,927
|
113,000
|
|||||
380,736
|
339,586
|
||||||
Total
real estate and other loans
|
1,211,920
|
1,188,239
|
|||||
Deduct:
|
|||||||
Loans
in process
|
7,443
|
8,782
|
|||||
Net
deferred loan origination fees and costs
|
1,265
|
1,303
|
|||||
Allowance
for loan loss
|
13,848
|
13,673
|
|||||
Totals
|
$
|
1,189,364
|
$
|
1,164,481
|
Three
Months ended March 31,
|
|||||||
2006
|
2005
|
||||||
Balance
at beginning of period
|
$
|
13,673
|
$
|
9,956
|
|||
Provision
for loan losses
|
383
|
347
|
|||||
Reserve
from Acquisition of Commercial Bank
|
-
|
2,538
|
|||||
Charge-offs:
|
|||||||
One-to-four
family residential real estate
|
188
|
-
|
|||||
Non-residential
and multi-family real estate
|
57
|
67
|
|||||
Commercial
|
17
|
43
|
|||||
Home
equity and improvement
|
32
|
-
|
|||||
Consumer
finance
|
95
|
59
|
|||||
Total
charge-offs
|
389
|
169
|
|||||
Recoveries
|
181
|
77
|
|||||
Net
charge-offs
|
208
|
92
|
|||||
Ending
allowance
|
$
|
13,848
|
$
|
12,749
|
March
31,
2006
|
December
31,
2005
|
||||||
Non-interest-bearing
checking accounts
|
$
|
94,515
|
$
|
103,498
|
|||
Interest-bearing
checking accounts
|
102,113
|
102,144
|
|||||
Savings
accounts
|
80,826
|
82,766
|
|||||
Money
market demand accounts
|
193,760
|
174,414
|
|||||
Certificates
of deposit
|
610,581
|
606,679
|
|||||
$
|
1,081,795
|
$
|
1,069,501
|
March
31,
2006
|
December
31,
2005
|
||||||
(in
thousands)
|
|||||||
FHLB
Advance:
|
|||||||
Callable
fixed maturity advances
|
$
|
90,000
|
$
|
111,000
|
|||
Callable
fixed maturity strike rate advances
|
27,000
|
27,000
|
|||||
Other
fixed rate long-term advances
|
13,937
|
14,181
|
|||||
Three
month LIBOR based advances
|
20,000
|
−
|
|||||
Short-term
and overnight advances
|
34,512
|
28,779
|
|||||
Total
|
$
|
185,449
|
$
|
180,960
|
|||
Junior
subordinated debentures owed to unconsolidated
|
|||||||
subsidiary
trust, due October 2035, 6.29% at March
31,
2006 and 5.87% at December 31, 2005 (variable)
|
$
|
20,619
|
$
|
20,619
|
|||
March
31,
2006
|
December
31,
2005
|
||||||
(In
Thousands)
|
|||||||
Loan
commitments
|
$
|
260,883
|
$
|
275,982
|
|||
Standby
Letters of Credit
|
8,762
|
8,785
|
|||||
Total
|
$
|
269,645
|
$
|
284,767
|
Three
Months Ended March 31
|
|||||||
2006
|
2005
|
||||||
(In
Thousands)
|
|||||||
Service
cost-benefits attributable to service
during
the period
|
$
|
10
|
$
|
11
|
|||
Interest
cost on accumulated postretirement
benefit
obligation
|
27
|
24
|
|||||
Net
amortization and deferral
|
8
|
6
|
|||||
Net
periodic postretirement benefit cost
|
$
|
45
|
$
|
41
|
Three
Months Ended March 31,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
||||||||||||||||
Balance
|
Interest(1)
|
Rate(2)
|
Balance
|
Interest(1)
|
Rate(2)
|
||||||||||||||
Interest-earning
assets:
|
$
|
1,177,707
|
$
|
20,053
|
6.91
|
%
|
$
|
982,125
|
$
|
14,767
|
6.10
|
%
|
|||||||
Loans
receivable
|
|||||||||||||||||||
Securities
|
114,123
|
1,481
|
5.26
|
136,650
|
1,604
|
4.85
|
|||||||||||||
Interest-earning
deposits
|
6,720
|
71
|
4.28
|
9,942
|
71
|
2.90
|
|||||||||||||
FHLB
stock and other
|
17,546
|
248
|
5.73
|
14,832
|
165
|
4.51
|
|||||||||||||
Total
interest-earning assets
|
1,316,096
|
21,853
|
6.73
|
1,143,549
|
16,607
|
5.90
|
|||||||||||||
Non-interest-earning
assets
|
143,062
|
92,133
|
|||||||||||||||||
Total
assets
|
$
|
1,459,158
|
$
|
1,235,682
|
|||||||||||||||
Interest-bearing
liabilities:
|
|||||||||||||||||||
Deposits
|
$
|
973,650
|
$
|
6,823
|
2.84
|
%
|
$
|
846,829
|
$
|
3,945
|
1.89
|
%
|
|||||||
FHLB
advances and other
|
185,942
|
2,147
|
4.68
|
160,814
|
1,800
|
4.54
|
|||||||||||||
Notes
payable
|
19,808
|
132
|
2.70
|
14,635
|
81
|
2.24
|
|||||||||||||
Subordinated
debentures
|
20,619
|
298
|
5.86
|
-
|
-
|
0.00
|
|||||||||||||
Total
interest-bearing liabilities
|
1,200,019
|
9,400
|
3.18
|
1,022,278
|
5,826
|
2.31
|
|||||||||||||
Non-interest
bearing deposits
|
92,027
|
-
|
74,367
|
-
|
|||||||||||||||
Total
including non-interest bearing
|
|||||||||||||||||||
demand
deposits
|
1,292,046
|
9,400
|
2.95
|
1,096,645
|
5,826
|
2.15
|
|||||||||||||
Other
non-interest-bearing liabilities
|
14,510
|
5,032
|
|||||||||||||||||
Total
liabilities
|
1,306,556
|
1,101,677
|
|||||||||||||||||
Stockholders'
equity
|
152,602
|
134,005
|
|||||||||||||||||
Total
liabilities and stock-
|
|||||||||||||||||||
holders'
equity
|
$
|
1,459,158
|
$
|
1,235,682
|
|||||||||||||||
Net
interest income; interest
|
|||||||||||||||||||
rate
spread
|
$
|
12,453
|
3.55
|
%
|
$
|
10,781
|
3.59
|
%
|
|||||||||||
Net
interest margin (3)
|
|
3.84
|
%
|
|
3.83
|
%
|
|||||||||||||
Average
interest-earning assets
|
|||||||||||||||||||
to
average interest-bearing
|
|||||||||||||||||||
liabilities
|
110
|
%
|
112
|
%
|
March
31,
2006
|
December
31,
2005
|
||||||
(in
thousands)
|
|||||||
Non-accrual
loans
|
$
|
3,856
|
$
|
4,952
|
|||
Loans
over 90 days past due and still accruing
|
-
|
-
|
|||||
Total
non-performing loans
|
3,856
|
$
|
4,952
|
||||
Real
estate owned (REO)
|
3,710
|
404
|
|||||
Total
non-performing assets
|
$
|
7,566
|
$
|
5,356
|
|||
Allowance
for loans losses as a percentage
of
total loans
|
1.15
|
%
|
1.16
|
%
|
|||
Allowance
for loan losses as a percentage
of
non-performing assets
|
183.03
|
%
|
255.28
|
%
|
|||
Allowance
for loan losses as a percentage
of
non-performing loans
|
359.13
|
%
|
276.11
|
%
|
|||
Total
non-performing assets as a percentage
of
total assets
|
0.51
|
%
|
0.37
|
%
|
|||
Total
non-performing loans as a percentage
of
total loans
|
0.32
|
%
|
0.42
|
%
|
Core
Capital
|
Risk-Based
Capital
|
||||||||||||
Adequately
Capitalized
|
Well
Capitalized
|
Adequately
Capitalized
|
Well
Capitalized
|
||||||||||
Regulatory
capital
|
$
|
124,734
|
$
|
124,734
|
$
|
138,192
|
$
|
138,192
|
|||||
Minimum
required regulatory capital
|
57,427
|
71,784
|
92,672
|
115,840
|
|||||||||
Excess
regulatory capital
|
$
|
67,307
|
$
|
52,950
|
$
|
45,520
|
$
|
22,352
|
|||||
Regulatory
capital as a percentage of assets (1)
|
8.7
|
%
|
8.7
|
%
|
11.9
|
%
|
11.9
|
%
|
|||||
Minimum
capital required as a percentage of assets
|
4.0
|
%
|
5.0
|
%
|
8.0
|
%
|
10.0
|
%
|
|||||
Excess
regulatory capital as a percentage of assets
|
4.7
|
%
|
3.7
|
%
|
3.9
|
%
|
1.9
|
%
|
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, 2006 -
January
31, 2006
|
2,262
|
$27.24
|
480
|
416,298
|
Feb.
1, 2006 -
Feb.
28, 2006
|
2,715
|
$27.24
|
2,715
|
413,583
|
March
1, 2006 -
March
31, 2006
|
22,548
|
$26.21
|
13,193
|
400,390
|
Total
for 2006
First
Quarter
|
27,525
|
$26.39
|
16,388
|
400,390
|
I.
|
Nominees
for Director with Three-year Terms Expiring in
2009:
|
NOMINEE
|
FOR
|
WITHHELD
|
||
Douglas
A. Burgei
|
5,994,116
|
73,510
|
||
Dwain
I. Metzger
|
5,812,580
|
255,046
|
||
Gerald
W. Monnin
|
5,962,243
|
105,383
|
||
Samuel
S. Strausbaugh
|
5,999,539
|
68,087
|
Exhibit
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act
|
Exhibit
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act
|
Exhibit
32.1
|
Certification
of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act
|
Exhibit
32.2
|
Certification
of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
Act
|
First Defiance Financial Corp. | ||
(Registrant) | ||
Date:
May
10, 2006
|
By:
|
/s/
William J. Small
|
William
J. Small
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
Date:
May
10, 2006
|
By:
|
/s/
John C. Wahl
|
John
C. Wahl
|
||
Senior
Vice President, Chief
|
||
Financial
Officer and
|
||
Treasurer
|