First Defiance Financial Corp. Announces Solid 2020 First Quarter Results

First Quarter 2020 Highlights

  • Completed strategic merger with UCFC on January 31, 2020
  • Quarterly dividend of $0.22 per share, up 15.8% from 2019 first quarter
  • Organic loan growth of $36.6 million, or 5.3% annualized growth
  • Organic deposit growth of $41.2 million, or 5.7% annualized growth
  • Earnings per share of ($0.71), or $0.24 excluding merger-related expenses, compared to $0.57 for 2019 first quarter
  • Pre-tax pre-provision income of $15.7 million, or $27.2 million excluding merger-related costs, compared to $14.2 million for 2019 first quarter
  • Pre-tax pre-provision ROAA of 1.18%, or 2.04% excluding merger-related costs, compared to 1.81% for 2019 first quarter

DEFIANCE, Ohio--()--First Defiance Financial Corp. (NASDAQ: FDEF) (“First Defiance”) announced today a solid first quarter including the completion of its strategic merger with UCFC, solid core profitability and a 15.8% increase in its year-over-year dividend. On a GAAP basis, net earnings for the first quarter of 2020 were a loss of $22.5 million, or $0.71 per diluted common share, compared to income of $11.5 million, or $0.57 per diluted common share, for the first quarter of 2019. The year-over-year comparison is substantially impacted by the current year’s loan loss provision expense of $43.8 million, which included an expected $25.9 million related to acquisition accounting for an after-tax cost of $20.5 million, or $0.65 per diluted common share. The first quarter of 2019 included a provision for loan losses expense of $212,000, which had an after-tax cost of $168,000, or $0.01 per diluted common share, and no acquisition impact. Additionally, the current year’s results include the impact of $11.5 million of acquisition-related charges, which had an after-tax cost of $9.5 million, or $0.30 per diluted common share. Excluding the impact of acquisition-related provision and charges, earnings for the first quarter of 2020 were $7.5 million, or $0.24 per diluted common share.

“The great momentum we had through most of the first quarter started to slow with the effects of COVID-19,” said Donald P. Hileman, Chief Executive Officer of First Defiance. “The pandemic has caused a severe disruption on the global and regional economic outlooks as well as the markets in which we operate. We have shifted focus to servicing the immediate needs of our clients and the health and well-being of our employees while supporting the communities we serve. We have been working extremely hard to assist clients by executing the Small Business Administration Paycheck Protection Program enacted as part of the CARES Act stimulus plan, and by helping them navigate additional relief programs.”

UCFC Merger

On January 31, 2020, First Defiance and United Community Financial Corp. (“UCFC”) completed the previously announced merger under which UCFC merged into First Defiance in a stock-for-stock transaction. Under the terms of the merger agreement, shareholders of UCFC received 0.3715 First Defiance common shares for each UCFC common share. The merger combined two complementary banking companies, and First Defiance and UCFC consider this partnership an ideal strategic, financial and operational fit, particularly given their individual strong and consistent performance over time. The combined company leverages the respective strengths of each institution in commercial banking, residential lending, retail banking, insurance and wealth management, and better positions the combined company to serve the geographies of Ohio, Michigan, Indiana, Pennsylvania and West Virginia with increased scale and expanded product offerings.

At the closing of the merger, First Defiance issued 17.9 million common shares, which represented a transaction value of approximately $527 million based on its closing stock price of $29.39 on January 31, 2020. The transaction value has been preliminarily allocated to assets acquired and liabilities assumed including $2.3 billion in net loans, $459 million in other tangible assets, $2.1 billion in deposits, $441 million in other liabilities, and $250 million in goodwill and other intangible assets. Prior to closing, UCFC incurred $13.9 million of merger-related costs. The year-over-year comparison of First Defiance results is impacted by the UCFC merger, with 2020 including two months of operations from UCFC compared to none in the prior year.

Coinciding with the upcoming integration of the First Federal Bank and Home Savings Bank systems scheduled for July, our combined 77 branches will be brought together under the new name and brand of Premier Bank. The Premier Bank name represents and honors the commitment both banks have made to our customers and communities by providing the best in financial partnerships for over a decade. This name change will bring additional consistency throughout our footprint and an elevated promise to deliver a community banking experience that sets us apart.

“We are very pleased to have completed the merger of our two companies in the quarter and to have recently announced the new name Premier Bank for our banking franchise,” said Gary M. Small, President of First Defiance. “The Premier Bank name and brand are reflections of our commitment to helping customers, employees and our communities achieve their best.”

Net interest income up compared to first quarter 2019

Net interest income of $45.5 million in the first quarter of 2020 was up from $28.3 million in the first quarter of 2019. The increase over the prior year’s first quarter was attributable to organic growth and two months of income from UCFC compared to none in 2019. Net interest margin was 3.78% for the first quarter of 2020, down from 3.80% in the fourth quarter of 2019, and down from 4.03% in the first quarter of 2019. Yield on interest earning assets decreased to 4.54% in the first quarter of 2020, down 13 basis points from 4.67% in the fourth quarter of 2019. The cost of interest-bearing liabilities decreased 14 basis points in the first quarter of 2020 to 1.01% from 1.15% in the fourth quarter of 2019. The first quarter 2020 results include the impact of acquisition marks and related accretion. Interest income includes $312,000 of accretion and interest expense includes $1,025,000 of accretion, which combined added 10 basis points of net interest margin. Excluding these amounts, net interest margin would be 3.68% for first quarter of 2020.

“We are satisfied with our net interest margin, which contracted less than expected quarter over quarter,” said Hileman. “We are proud of the efforts of our teams that were able to generate organic growth of over 5% annualized for both loans and deposits in the first quarter despite the economic headwinds.”

Non-interest income up from first quarter 2019

First Defiance’s non-interest income in the first quarter of 2020 was $14.0 million compared with $10.8 million in the first quarter of 2019. Results for the first quarter 2020 included two months of income from UCFC compared to none in 2019.

Mortgage banking income decreased to $0.8 million in the first quarter of 2020 from $1.8 million in the first quarter of 2019. Gains from the sale of mortgage loans increased to $4.9 million in the first quarter of 2020 from $1.3 million in the first quarter of 2019. Mortgage loan servicing revenue increased to $1.6 million in the first quarter of 2020 from $0.9 million in the first quarter of 2019. Amortization of mortgage servicing rights increased to $1.2 million in the first quarter 2020 from $286,000 in the first quarter 2019. First Defiance had a negative change in the valuation adjustment in mortgage servicing assets of $4.5 million in the first quarter of 2020 compared with a negative adjustment of $113,000 in the first quarter of 2019. The year-over-year change is primarily due to the significant decline in rates with the 10-year treasury declining 122 basis points during the first quarter of 2020 compared to a 28 basis point decline in the first quarter of 2019.

For the first quarter 2020, service fees and other charges were $5.2 million, up from $3.0 million in the first quarter of 2019. Commissions from the sale of insurance products were $5.2 million, up from $4.1 million in the first quarter of 2019. The first quarter typically includes contingent revenues, bonuses paid by insurance carriers when the Company achieves certain loss ratios or growth targets. In the first quarter of 2020, First Defiance’s insurance subsidiary, First Insurance Group, earned $1.3 million of contingent income, compared to $0.9 million during the first quarter of 2019. Trust income was $838,000 in the first quarter of 2020, up from $523,000 in the first quarter of 2019. Other non-interest income for the first quarter was $960,000 compared to $846,000 in 2019. Other non-interest income for the first quarter 2020 includes $1.1 million for reversal of an earnout accrual that was not achieved related to a prior acquisition.

“This was a quarter that highlighted the importance of diverse revenue sources as non-interest income represented over 23% of total revenues despite the significant hit to mortgage servicing rights valuation,” said Hileman. “Non-interest income remains an important element to our earnings growth goals and we continue to seek ways to improve these revenue streams.”

Non-interest expenses up from first quarter 2019

Total non-interest expense was $43.8 million in the first quarter of 2020, or $32.3 million excluding $11.5 million of acquisition related charges, up from $24.9 million in the first quarter of 2019. Results for the first quarter 2020 included two months of expenses from UCFC compared to none in 2019. Compensation and benefits increased to $17.6 million in the first quarter of 2020, compared to $14.1 million in the first quarter of 2019. Occupancy expense was $3.7 million in the first quarter of 2020, up from $2.2 million in the first quarter of 2019. Data processing cost was $3.0 million in the first quarter of 2020, up from $2.3 million in the first quarter of 2019. Amortization of intangibles was $1.2 million in the first quarter of 2020, up from $299,000 in the first quarter of 2019. Other non-interest expense was $5.4 million in the first quarter of 2020, up from $5.1 million in the first quarter of 2019.

Credit quality

Non-performing loans totaled $32.6 million at March 31, 2020, an increase from $13.5 million at December 31, 2019, and an increase from $17.6 million at March 31, 2019, due to the UCFC merger. In addition, First Defiance had $0.5 million of OREO at March 31, 2020, compared to $0.9 million at March 31, 2019. Accruing troubled debt restructured loans were $7.5 million at March 31, 2020, compared with $11.9 million at March 31, 2019.

On January 1, 2020, First Defiance adopted the Current Expected Credit Loss (“CECL”) model of accounting for credit losses. This new GAAP model, which replaces the former incurred loss model, requires entities to estimate credit losses over the life of an asset or off-balance sheet exposure. At adoption, First Defiance recorded a $2.4 million increase to its allowance for loan losses and a $0.9 million increase to its reserve for off-balance sheet commitments for a combined $3.2 million, of which $2.6 million was recorded as a reduction to retained earnings with remainder to deferred taxes. In connection with the UCFC merger on January 31, 2020, First Defiance recorded a $33.6 million increase to its allowance for loan losses, which was comprised of $25.9 million required to be recorded as a provision for loan losses related to non-purchased credit deteriorated loans and $7.7 million required to be recorded as a reduction of loan balances for purchased credit deteriorated loans.

Excluding the merger impact noted above, the first quarter 2020 results include net recoveries of $778,000 and a provision expense for loan losses of $17.8 million compared with net charge-offs of $379,000 and a provision expense of $212,000 for the same period in 2019. The allowance for loan loss as a percentage of total loans was 1.68% at March 31, 2020, compared with 1.10% at March 31, 2019. The increase in the provision expense and allowance percentage is primarily attributable to the impact of the economic deterioration that began in the first quarter 2020 as a result of the COVID-19 pandemic.

“While the adoption of CECL in a period of economic downturn dramatically increased our provision, we believe our enhanced allowance will serve us well as we support our customers during this challenging time,” said Paul D. Nungester, Chief Financial Officer of First Defiance. “Our strong capital levels and allowance coverage ratios provide a solid base in the current uncertain environment.”

Total assets at $6.54 billion

Total assets at March 31, 2020, were $6.54 billion compared to $3.47 billion at December 31, 2019, and $3.22 billion at March 31, 2019. Gross loans receivable (excluding loans held for sale) were $5.11 billion at March 31, 2020, compared to $2.78 billion at December 31, 2019, and $2.55 billion at March 31, 2019. At March 31, 2020, gross loans receivable grew $2.56 billion, or 101% from a year ago, including $2.30 billion from the UCFC merger and $277.0 million organically. Also, at March 31, 2020, goodwill and other intangible assets totaled $353.1 million compared to $103.8 million at December 31, 2019, and $102.7 million at March 31, 2019, with the increase attributable to the UCFC merger.

Total deposits at March 31, 2020, were $4.99 billion compared with $2.87 billion at December 31, 2019, and $2.69 billion at March 31, 2019. At March 31, 2020, total deposits grew $2.31 billion, or 86% from a year ago, including $2.08 billion from the UCFC merger and $225.8 million organically.

Total stockholders’ equity was $916.4 million at March 31, 2020, compared to $426.2 million at December 31, 2019, and $395.8 million at March 31, 2019. The increase in stockholders’ equity from year-end 2019 was due to the UCFC merger, offset partially by the company’s repurchase of 430,000 common shares for $10.1 million during the first quarter of 2020. At March 31, 2020, 570,000 common shares remained available for repurchase under its existing authorization.

Dividend to be paid May 22

The Board of Directors declared a quarterly cash dividend of $0.22 per common share payable May 22, 2020, to shareholders of record at the close of business on May 15, 2020. The dividend represents an annual dividend of 5.97 percent based on the First Defiance common stock closing price on April 24, 2020. First Defiance has approximately 37,285,730 common shares outstanding.

Business Client Support Efforts

As a part of the CARES Act, the Payment Protection Program (“PPP”) was created as a loan program at the Small Business Administration (“SBA”) designed to provide a direct incentive for small businesses to keep their workers on the payroll. First Federal Bank is actively participating in the PPP program for clients and, through April 27, 2020, it has approved and the SBA has authorized approximately 2,200 loan requests for approximately $400 million under this program. First Federal Bank has also been approved to participate in the Federal Reserve Board’s Payment Protection Program Liquidity Facility and intends to utilize that to fund PPP loans. Separately, First Federal Bank has partnered with JobsOhio on a loan program designed to support existing Ohio small business clients with maintaining operations and payroll during the COVID-19 pandemic. The partnership enables First Federal Bank to provide additional financing on favorable terms for local Ohio business customers in good standing that would otherwise not be able to access this credit on such terms due to the COVID-19 crisis.

Conference call

First Defiance Financial Corp. will host a conference call at 11:00 a.m. ET on Wednesday, April 29, 2020, 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/fdef200429.html. The replay of the conference call will be available at www.fdef.com until April 28, 2021, 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. United Community Financial Corp. merged with First Defiance Financial Corp. on January 31, 2020. The combined organization operates 77 branches, 12 loan offices and 3 wealth offices in Ohio, Michigan, Indiana, Pennsylvania, and West Virginia. Currently, 33 branches, 3 wealth offices and 11 loan production offices continue to operate as Home Savings Bank. First Insurance Group is a full-service insurance agency with ten offices in Ohio including James & Sons Insurance in Youngstown, 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 Exchange Act of 1934, as amended. 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 ability to benefit from a changing interest rate environment; the production levels of mortgage loan generation; the ability to continue to grow loans and deposits; the ability to sustain credit quality ratios at current or improved levels; continued strength in the market area for First Federal Bank of the Midwest; the ability to sell real estate owned properties; and the ability to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including: impacts from the novel coronavirus (COVID-19) pandemic on our business, operations, customers and capital position; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers’ operations and financial condition; the impact of COVID-19 on local, national and global economic conditions; unexpected changes in interest rates or disruptions in the mortgage market related to COVID-19 or responses to the health crisis; the effects of various governmental responses to the COVID-19 pandemic; 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, 2019. 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 and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law. As required by U.S. GAAP, First Defiance will evaluate the impact of subsequent events through the issuance date of its December 31, 2019, consolidated financial statements as part of its Annual Report on Form 10-K 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.

Non-GAAP Reporting Measures

We believe that net income, as defined by U.S. GAAP, is the most appropriate earnings measurement. However, we consider core net income and core pre-tax pre-provision income to be useful supplemental measures of our operating performance. We define core net income as net income excluding the after-tax impact of acquisition related charges. We define core pre-tax pre-provision income as pre-tax pre-provision income excluding the pre-tax impact of acquisition related charges. We believe that these metrics are useful supplemental measures of operating performance because investors and equity analysts may use these measures to compare the operating performance of the Company between periods or as compared to other financial institutions or other companies on a consistent basis without having to account for one-time acquisition related charges. Our supplemental reporting measures and similarly entitled financial measures are widely used by investors, equity and debt analysts and ratings agencies in the valuation, comparison, rating and investment recommendations of companies. Our management uses these financial measures to facilitate internal and external comparisons to historical operating results and in making operating decisions. Additionally, they are utilized by the Board of Directors to evaluate management. The supplemental reporting measures do not represent net income or cash flow provided from operating activities as determined in accordance with U.S. GAAP and should not be considered as alternative measures of profitability or liquidity. Finally, the supplemental reporting measures, as defined by us, may not be comparable to similarly entitled items reported by other financial institutions or other companies. Please see the exhibits for reconciliations of our supplemental reporting measures.

Consolidated Balance Sheets (Unaudited)
First Defiance Financial Corp.
 

 

March 31,

 

 

December 31,

(in thousands)

2020

 

 

2019

Assets
Cash and cash equivalents
Cash and amounts due from depository institutions

$

79,491

 

$

46,254

 

Interest-bearing deposits

 

66,217

 

 

85,000

 

 

145,708

 

 

131,254

 

 
Securities available-for sale, carried at fair value

 

534,206

 

 

283,448

 

 
Loans

 

5,113,917

 

 

2,777,564

 

Allowance for loan losses

 

(85,859

)

 

(31,243

)

Loans, net

 

5,028,058

 

 

2,746,321

 

Loans held for sale

 

85,594

 

 

18,008

 

Mortgage servicing rights

 

15,742

 

 

10,267

 

Accrued interest receivable

 

19,048

 

 

10,244

 

Federal Home Loan Bank stock

 

89,252

 

 

11,915

 

Bank Owned Life Insurance

 

142,259

 

 

75,544

 

Office properties and equipment

 

59,870

 

 

39,563

 

Real estate and other assets held for sale

 

548

 

 

100

 

Goodwill

 

317,520

 

 

100,069

 

Core deposit and other intangibles

 

35,540

 

 

3,772

 

Other assets

 

67,541

 

 

38,487

 

Total Assets

$

6,540,886

 

$

3,468,992

 

 
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits

$

1,041,315

 

$

630,359

 

Interest-bearing deposits

 

3,952,833

 

 

2,239,966

 

Total deposits

 

4,994,148

 

 

2,870,325

 

Advances from Federal Home Loan Bank

 

486,000

 

 

85,063

 

Notes payable and other interest-bearing liabilities

 

1,961

 

 

2,999

 

Subordinated debentures

 

36,083

 

 

36,083

 

Advance payments by borrowers for tax and insurance

 

8,702

 

 

5,491

 

Deferred taxes

 

6,268

 

 

905

 

Other liabilities

 

91,365

 

 

41,959

 

Total Liabilities

 

5,624,527

 

 

3,042,825

 

Stockholders’ Equity
Preferred stock

 

-

 

 

-

 

Common stock, net

 

306

 

 

127

 

Additional paid-in-capital

 

684,441

 

 

161,955

 

Accumulated other comprehensive income (loss)

 

12,068

 

 

4,595

 

Retained earnings

 

299,297

 

 

329,175

 

Treasury stock, at cost

 

(79,753

)

 

(69,685

)

Total stockholders’ equity

 

916,359

 

 

426,167

 

Total Liabilities and Stockholders’ Equity

$

6,540,886

 

$

3,468,992

 

Consolidated Statements of Income (Unaudited)
First Defiance Financial Corp.

Three Months Ended

March 31,

(in thousands, except per share amounts)

2020

 

 

 

2019

Interest Income:
Loans

$

51,460

 

$

31,214

Investment securities

 

2,717

 

 

2,205

Interest-bearing deposits

 

230

 

 

285

FHLB stock dividends

 

115

 

 

215

Total interest income

 

54,522

 

 

33,919

Interest Expense:
Deposits

 

7,771

 

 

5,005

FHLB advances and other

 

1,006

 

 

276

Subordinated debentures

 

273

 

 

364

Notes Payable

 

9

 

 

4

Total interest expense

 

9,059

 

 

5,649

Net interest income

 

45,463

 

 

28,270

Provision for loan losses

 

43,786

 

 

212

Net interest income after provision for loan losses

 

1,677

 

 

28,058

Non-interest Income:
Service fees and other charges

 

5,183

 

 

3,007

Mortgage banking income

 

848

 

 

1,841

Gain on sale of non-mortgage loans

 

234

 

 

89

Gain on sale of securities

 

-

 

 

-

Insurance commissions

 

5,155

 

 

4,115

Trust income

 

838

 

 

523

Income from Bank Owned Life Insurance

 

781

 

 

392

Other non-interest income

 

960

 

 

846

Total Non-interest Income

 

13,999

 

 

10,813

Non-interest Expense:
Compensation and benefits

 

17,585

 

 

14,085

Occupancy

 

3,731

 

 

2,241

FDIC insurance premium

 

492

 

 

273

Financial institutions tax

 

834

 

 

556

Data processing

 

3,040

 

 

2,297

Amortization of intangibles

 

1,245

 

 

299

Acquisition related charges

 

11,486

 

 

-

Other non-interest expense

 

5,355

 

 

5,115

Total Non-interest Expense

 

43,768

 

 

24,866

Income (loss) before income taxes

 

(28,092

)

 

14,005

Income tax expense (benefit)

 

(5,610

)

 

2,523

Net Income (Loss)

$

(22,482

)

$

11,482

 
 
Earnings per common share:
Basic

$

(0.71

)

$

0.57

Diluted

$

(0.71

)

$

0.57

 
Average Shares Outstanding:
Basic

 

31,642

 

 

20,014

Diluted

 

31,642

 

 

20,095

Financial Summary and Comparison (Unaudited)
First Defiance Financial Corp.
Three Months Ended
March 31,
(dollars in thousands, except per share data)

2020

2019

% change

Summary of Operations
 
Tax-equivalent interest income (2)

$

54,773

 

$

34,166

 

60.3

%

Interest expense

 

9,059

 

 

5,649

 

60.4

 

Tax-equivalent net interest income (2)

 

45,714

 

 

28,517

 

60.3

 

Provision for loan losses

 

43,786

 

 

212

 

20,553.8

 

Core provision for loan losses (4)

 

17,837

 

 

212

 

8,313.7

 

Investment securities gains

 

-

 

 

-

 

-

 

Non-interest income (excluding securities gains/losses)

 

13,999

 

 

10,813

 

29.5

 

Non-interest expense

 

43,768

 

 

24,866

 

76.0

 

Core non-interest expense (4)

 

32,282

 

 

24,866

 

29.8

 

Income tax expense (benefit)

 

(5,610

)

 

2,523

 

(322.4

)

Net income (loss)

 

(22,482

)

 

11,482

 

(295.8

)

Core net income (4)

 

7,470

 

 

11,482

 

(34.9

)

Tax equivalent adjustment (2)

 

251

 

 

247

 

1.6

 

At Period End
Assets

 

6,540,886

 

 

3,221,249

 

103.1

 

Earning assets

 

5,889,186

 

 

2,934,860

 

100.7

 

Loans

 

5,113,917

 

 

2,548,968

 

100.6

 

Allowance for loan losses

 

85,859

 

 

28,164

 

204.9

 

Deposits

 

4,994,148

 

 

2,685,792

 

85.9

 

Stockholders’ equity

 

916,359

 

 

395,789

 

131.5

 

Average Balances
Assets

 

5,357,598

 

 

3,183,012

 

68.3

 

Earning assets

 

4,862,532

 

 

2,871,340

 

69.3

 

Loans

 

4,317,857

 

 

2,517,283

 

71.5

 

Deposits and interest-bearing liabilities

 

4,488,003

 

 

2,742,626

 

63.6

 

Deposits

 

4,240,053

 

 

2,642,158

 

60.5

 

Stockholders’ equity

 

787,519

 

 

395,138

 

99.3

 

Stockholders’ equity / assets

 

14.70

%

 

12.41

%

18.4

 

Per Common Share Data
Net Income (Loss)
Basic

$

(0.71

)

$

0.57

 

(224.6

)

Diluted

 

(0.71

)

 

0.57

 

(224.6

)

Core diluted (4)

 

0.24

 

 

0.57

 

(57.9

)

Dividends

 

0.22

 

 

0.19

 

15.8

 

Market Value:
High

$

32.05

 

$

31.30

 

2.4

 

Low

 

10.98

 

 

24.12

 

(54.5

)

Close

 

14.74

 

 

28.74

 

(48.7

)

Common Book Value

 

24.58

 

 

20.08

 

22.4

 

Tangible Common Book Value (1)

 

15.11

 

 

14.87

 

1.6

 

Shares outstanding, end of period (000)

 

37,288

 

 

19,713

 

89.2

 

Performance Ratios (annualized)
Tax-equivalent net interest margin (2)

 

3.78

%

 

4.03

%

(6.1

)

Return on average assets

 

-1.69

%

 

1.46

%

(215.4

)

Core return on average assets (4)

 

0.56

%

 

1.46

%

(61.7

)

Return on average equity

 

-11.48

%

 

11.78

%

(197.4

)

Core return on average equity (4)

 

3.82

%

 

11.78

%

(67.6

)

Efficiency ratio (3)

 

73.30

%

 

63.22

%

15.9

 

Core efficiency ratio (4)

 

54.06

%

 

63.22

%

(14.5

)

Effective tax rate

 

19.97

%

 

18.01

%

10.9

 

Dividend payout ratio (core)

 

91.67

%

 

33.33

%

175.0

 

(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.

(4)

Core items exclude the impact of acquisition related charges and provision. See non-GAAP reconciliations.
NM Percentage change not meaningful
Mortgage Banking
 

Three Months Ended

March 31,

(dollars in thousands)

2020

 

2019

Revenue from sales and servicing of mortgage loans:
Gain from sale of mortgage loans

$

4,902

 

$

1,301

 

Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue

 

1,594

 

 

939

 

Amortization of mortgage servicing rights

 

(1,163

)

 

(286

)

Mortgage servicing rights valuation adjustments

 

(4,485

)

 

(113

)

 

(4,054

)

 

540

 

Total revenue from sale and servicing of mortgage loans

$

848

 

$

1,841

 

 
Mortgage servicing rights:
Balance at beginning of period

$

10,801

 

$

10,419

 

Loans sold, servicing retained

 

1,376

 

 

278

 

Mortgage servicing rights acquired

 

9,747

 

 

-

 

Amortization

 

(1,163

)

 

(286

)

Carrying value before valuation allowance at end of period

 

20,761

 

 

10,411

 

Valuation allowance:
Balance at beginning of period

 

(534

)

 

(300

)

Impairment recovery (charges)

 

(4,485

)

 

(113

)

Balance at end of period

 

(5,019

)

 

(413

)

Net carrying value at end of period

$

15,742

 

$

9,998

 

 
Goodwill and Purchase Price Accounting
 
Deal Value:
Shares issued (000s)

 

17,927

 

1/31/20 Price

$

29.39

 

Stock value

 

526,875

 

Cash in lieu of fractional shares

 

132

 

Total value

$

527,007

 

 
Allocation:
Cash and cash equivalents

$

52,580

 

Securities available-for sale

 

262,753

 

(1)

Net loans, including loans held for sale and allowance

 

2,340,701

 

(2)

Federal Home Loan Bank stock

 

12,753

 

Office properties and equipment

 

21,216

 

(3)

Core deposit and other intangibles

 

33,014

 

(4)

Bank Owned Life Insurance

 

65,934

 

Mortgage servicing rights

 

9,747

 

(5)

Other assets

 

34,452

 

Non-interest-bearing deposits

 

(430,921

)

Interest-bearing deposits

 

(1,651,669

)

(6)

Advances from Federal Home Loan Bank

 

(381,000

)

Other liabilities

 

(60,004

)

Net assets

 

309,556

 

Goodwill

 

217,451

 

Total value

$

527,007

 

(1) Includes $13.8 million of accumulated losses to be amortized against interest income over ~7 years.
(2) Includes $27.2 million non-PCD credit mark down to be accreted into interest income over ~5 years, $8.8 million total rate mark up to be amortized against interest income over ~5 years, $19.1 million elimination of allowance and $7.7 million PCD credit mark addition to allowance.
(3) Includes $1.1 million mark down that reduces future depreciation.
(4) Includes $29.3 million of core deposit intangible to be amortized to expense using sum-of-the-years digits over 10 years and $3.7 million of insurance/trust/wealth intangibles to be amortized to expense over ~10 years.
(5) Includes $3.0 million mark up to be amortized against mortgage banking income over ~8.5 years.
(6) Includes $7.1 million rate mark up on time-based deposits to be accreted against interest expense over ~2 years based on maturities.
Yield Analysis
First Defiance Financial Corp.
Three Months Ended March 31,
(dollars in thousands)

2020

2019

Average Yield Average Yield
Balance Interest(1) Rate(2) Balance Interest(1) Rate(2)
Interest-earning assets:
Loans receivable

$

4,317,857

$

51,485

4.80

%

$

2,517,283

$

31,238

5.03

%

Securities

 

449,744

 

2,943

2.69

%

(3

)

 

295,824

 

2,428

3.31

%

(3

)

Interest Bearing Deposits

 

68,980

 

230

1.34

%

 

44,752

 

285

2.58

%

FHLB stock

 

25,951

 

115

1.78

%

 

13,481

 

215

6.47

%

Total interest-earning assets

 

4,862,532

 

54,773

4.54

%

 

2,871,340

 

34,166

4.82

%

Non-interest-earning assets

 

495,066

 

311,672

Total assets

$

5,357,598

$

3,183,012

Deposits and Interest-bearing liabilities:
Interest bearing deposits

$

3,343,833

$

7,771

0.93

%

$

2,061,023

$

5,005

0.98

%

FHLB advances and other

 

209,508

 

1,006

1.93

%

 

58,954

 

276

1.90

%

Subordinated debentures

 

36,083

 

273

3.04

%

 

36,083

 

364

4.09

%

Notes payable

 

2,359

 

9

1.53

%

 

5,431

 

4

0.30

%

Total interest-bearing liabilities

 

3,591,783

 

9,059

1.01

%

 

2,161,491

 

5,649

1.06

%

Non-interest bearing deposits

 

896,220

 

-

-

 

 

581,135

 

-

-

 

Total including non-interest-bearing demand deposits

 

4,488,003

 

9,059

0.81

%

 

2,742,626

 

5,649

0.84

%

Other non-interest-bearing liabilities

 

82,076

 

45,248

Total liabilities

 

4,570,079

 

2,787,874

Stockholders' equity

 

787,519

 

395,138

Total liabilities and stockholders' equity

$

5,357,598

$

3,183,012

Net interest income; interest rate spread

$

45,714

3.53

%

$

28,517

3.76

%

Net interest margin (4)

3.78

%

4.03

%

Average interest-earning assets to average interest bearing liabilities

135

%

133

%

 

(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) 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019 2nd Qtr 2019 1st Qtr 2019
Summary of Operations
Tax-equivalent interest income (1)

$

54,773

 

$

36,473

 

$

35,922

 

$

35,490

 

$

34,166

 

Interest expense

 

9,059

 

 

6,743

 

 

6,791

 

 

6,252

 

 

5,649

 

Tax-equivalent net interest income (1)

 

45,714

 

 

29,730

 

 

29,131

 

 

29,238

 

 

28,517

 

Provision for loan losses

 

43,786

 

 

1,084

 

 

1,327

 

 

282

 

 

212

 

Core provision for loan losses (3)

 

17,837

 

 

1,084

 

 

1,327

 

 

282

 

 

212

 

Investment securities gains, net of impairment

 

-

 

 

13

 

 

11

 

 

-

 

 

-

 

Non-interest income (excluding securities gains/losses)

 

13,999

 

 

11,803

 

 

11,831

 

 

10,486

 

 

10,813

 

Non-interest expense

 

43,768

 

 

24,760

 

 

23,203

 

 

24,235

 

 

24,866

 

Core non-interest expense (3)

 

32,282

 

 

23,878

 

 

22,663

 

 

24,235

 

 

24,866

 

Income tax expense (benefit)

 

(5,610

)

 

2,953

 

 

3,033

 

 

2,759

 

 

2,523

 

Net income (loss)

 

(22,482

)

 

12,517

 

 

13,171

 

 

12,199

 

 

11,482

 

Core net income (3)

 

7,470

 

 

13,214

 

 

13,598

 

 

12,199

 

 

11,482

 

Tax equivalent adjustment (1)

 

251

 

 

232

 

 

239

 

 

249

 

 

247

 

At Period End
Total assets

$

6,540,886

 

$

3,468,992

 

$

3,350,724

 

$

3,277,552

 

$

3,221,249

 

Earning assets

 

5,889,186

 

 

3,175,935

 

 

3,045,659

 

 

2,980,243

 

 

2,934,860

 

Loans

 

5,113,917

 

 

2,777,564

 

 

2,665,300

 

 

2,624,219

 

 

2,548,968

 

Allowance for loan losses

 

85,859

 

 

31,243

 

 

30,250

 

 

28,934

 

 

28,164

 

Deposits

 

4,994,148

 

 

2,870,325

 

 

2,760,615

 

 

2,680,637

 

 

2,685,792

 

Stockholders’ equity

 

916,359

 

 

426,167

 

 

418,046

 

 

407,216

 

 

395,789

 

Stockholders’ equity / assets

 

14.01

%

 

12.29

%

 

12.48

%

 

12.42

%

 

12.29

%

Goodwill

 

317,520

 

 

100,069

 

 

100,069

 

 

98,569

 

 

98,569

 

Average Balances
Total assets

$

5,357,598

 

$

3,425,097

 

$

3,303,013

 

$

3,223,997

 

$

3,183,012

 

Earning assets

 

4,862,532

 

 

3,107,224

 

 

2,985,498

 

 

2,914,587

 

 

2,871,340

 

Loans

 

4,317,857

 

 

2,688,519

 

 

2,624,314

 

 

2,561,341

 

 

2,517,283

 

Deposits and interest-bearing liabilities

 

4,488,003

 

 

2,954,049

 

 

2,843,079

 

 

2,781,216

 

 

2,742,626

 

Deposits

 

4,240,053

 

 

2,830,043

 

 

2,718,632

 

 

2,678,060

 

 

2,642,158

 

Stockholders’ equity

 

787,519

 

 

420,352

 

 

411,041

 

 

398,612

 

 

395,138

 

Stockholders’ equity / assets

 

14.70

%

 

12.27

%

 

12.44

%

 

12.36

%

 

12.41

%

Per Common Share Data
Net Income (Loss):
Basic

$

(0.71

)

$

0.63

 

$

0.67

 

$

0.62

 

$

0.57

 

Diluted

 

(0.71

)

 

0.63

 

 

0.66

 

 

0.61

 

 

0.57

 

Core diluted (3)

 

0.24

 

 

0.66

 

 

0.68

 

 

0.61

 

 

0.57

 

Dividends

 

0.22

 

 

0.22

 

 

0.19

 

 

0.19

 

 

0.19

 

Market Value:
High

$

32.05

 

$

32.39

 

$

29.44

 

$

30.44

 

$

31.30

 

Low

 

10.98

 

 

27.77

 

 

25.50

 

 

26.59

 

 

24.12

 

Close

 

14.74

 

 

31.32

 

 

28.97

 

 

28.57

 

 

28.74

 

Common Book Value

 

24.58

 

 

21.60

 

 

21.19

 

 

20.65

 

 

20.08

 

Shares outstanding, end of period (in thousands)

 

37,288

 

 

19,730

 

 

19,729

 

 

19,723

 

 

19,713

 

Performance Ratios (annualized)
Tax-equivalent net interest margin (1)

 

3.78

%

 

3.80

%

 

3.88

%

 

4.03

%

 

4.03

%

Return on average assets

 

-1.69

%

 

1.45

%

 

1.58

%

 

1.52

%

 

1.46

%

Core return on average assets (3)

 

0.56

%

 

1.53

%

 

1.63

%

 

1.52

%

 

1.46

%

Return on average equity

 

-11.48

%

 

11.81

%

 

12.71

%

 

12.28

%

 

11.78

%

Core return on average equity (3)

 

3.82

%

 

12.47

%

 

13.12

%

 

12.28

%

 

11.78

%

Efficiency ratio (2)

 

73.30

%

 

59.62

%

 

56.65

%

 

61.01

%

 

63.22

%

Core efficiency ratio (3)

 

54.06

%

 

57.49

%

 

55.33

%

 

61.01

%

 

63.22

%

Effective tax rate

 

19.97

%

 

19.09

%

 

18.72

%

 

18.44

%

 

18.01

%

Common dividend payout ratio (core)

 

91.67

%

 

34.92

%

 

28.36

%

 

30.65

%

 

33.33

%

(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.

(3)

Core items exclude the impact of acquisition related charges and provision. See non-GAAP reconciliations.
Selected Quarterly Information
First Defiance Financial Corp.
 
(dollars in thousands, except per share data) 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019 2nd Qtr 2019 1st Qtr 2019
Loan Portfolio Composition
One to four family residential real estate

$

1,265,901

 

$

324,773

 

$

330,369

 

$

322,123

 

$

321,644

 

Construction

 

521,442

 

 

305,305

 

 

308,061

 

 

335,847

 

 

304,241

 

Commercial real estate

 

2,200,266

 

 

1,506,026

 

 

1,430,919

 

 

1,411,463

 

 

1,394,500

 

Commercial

 

897,865

 

 

578,071

 

 

537,806

 

 

530,528

 

 

509,627

 

Consumer finance

 

137,679

 

 

37,649

 

 

36,644

 

 

35,350

 

 

34,262

 

Home equity and improvement

 

301,146

 

 

122,864

 

 

123,871

 

 

125,860

 

 

124,450

 

Total loans

 

5,324,299

 

 

2,874,688

 

 

2,767,670

 

 

2,761,171

 

 

2,688,724

 

Less:
Undisbursed loan funds

 

206,236

 

 

94,865

 

 

100,260

 

 

134,794

 

 

137,742

 

Deferred loan origination fees

 

4,146

 

 

2,259

 

 

2,110

 

 

2,158

 

 

2,014

 

Allowance for loan loss

 

85,859

 

 

31,243

 

 

30,250

 

 

28,934

 

 

28,164

 

Net Loans

$

5,028,058

 

$

2,746,321

 

$

2,635,050

 

$

2,595,285

 

$

2,520,804

 

 
Allowance for loan loss activity
Beginning allowance

$

31,243

 

$

30,250

 

$

28,934

 

$

28,164

 

$

28,331

 

CECL adoption

 

2,354

 

Acquisition related allowance/provision (non PCD)

 

25,949

 

Acquisition related allowance/goodwill (PCD)

 

7,698

 

Provision for loan losses excluding acquisition amounts

 

17,837

 

 

1,084

 

 

1,327

 

 

282

 

 

212

 

Net recoveries (charge-offs)

 

778

 

 

(91

)

 

(11

)

 

488

 

 

(379

)

Ending allowance

$

85,859

 

$

31,243

 

$

30,250

 

$

28,934

 

$

28,164

 

 
Credit Quality
Total non-performing loans (1)

$

32,593

 

$

13,459

 

$

14,677

 

$

15,334

 

$

17,645

 

Real estate owned (REO)

 

548

 

 

100

 

 

-

 

 

-

 

 

941

 

Total non-performing assets (2)

$

33,141

 

$

13,559

 

$

14,677

 

$

15,334

 

$

18,586

 

Net charge-offs (recoveries)

 

(778

)

 

91

 

 

11

 

 

(488

)

 

379

 

 
Restructured loans, accruing (3)

 

7,474

 

 

8,427

 

 

10,334

 

 

10,308

 

 

11,908

 

 
Allowance for loan losses / loans

 

1.68

%

 

1.12

%

 

1.13

%

 

1.10

%

 

1.10

%

Allowance for loan losses / non-performing assets

 

259.07

%

 

230.42

%

 

206.10

%

 

188.69

%

 

151.53

%

Allowance for loan losses / non-performing loans

 

263.43

%

 

232.13

%

 

206.10

%

 

188.69

%

 

159.61

%

Non-performing assets / loans plus REO

 

0.65

%

 

0.49

%

 

0.55

%

 

0.58

%

 

0.73

%

Non-performing assets / total assets

 

0.51

%

 

0.39

%

 

0.44

%

 

0.47

%

 

0.58

%

Net charge-offs / average loans (annualized)

 

-0.07

%

 

0.01

%

 

0.00

%

 

-0.08

%

 

0.06

%

 
Deposit Balances
Non-interest-bearing demand deposits

$

1,041,315

 

$

630,359

 

$

604,129

 

$

584,735

 

$

586,033

 

Interest-bearing demand deposits and money market

 

2,069,723

 

 

1,198,012

 

 

1,124,208

 

 

1,088,694

 

 

1,107,511

 

Savings deposits

 

606,508

 

 

303,166

 

 

294,594

 

 

304,051

 

 

300,244

 

Retail time deposits less than $250,000

 

1,091,038

 

 

631,253

 

 

634,737

 

 

610,345

 

 

601,012

 

Retail time deposits greater than $250,000

 

185,564

 

 

107,535

 

 

102,947

 

 

92,812

 

 

90,992

 

Total deposits

$

4,994,148

 

$

2,870,325

 

$

2,760,615

 

$

2,680,637

 

$

2,685,792

 

(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 loan.
Loan Delinquency Information
First Defiance Financial Corp.
 
(dollars in thousands) Total Balance Current 30 to 89 days
past due
Non Accrual
Loans
 
March 31, 2020
One to four family residential real estate

$

1,265,901

 

$

1,253,304

 

$

5,890

 

$

6,707

Construction

 

521,442

 

 

521,442

 

 

-

 

 

-

Commercial real estate

 

2,200,266

 

 

2,180,660

 

 

220

 

 

19,386

Commercial

 

897,865

 

 

893,605

 

 

299

 

 

3,961

Consumer finance

 

137,679

 

 

135,727

 

 

712

 

 

1,240

Home equity and improvement

 

301,146

 

 

296,330

 

 

3,517

 

 

1,299

Total loans

$

5,324,299

 

$

5,281,068

 

$

10,638

 

$

32,593

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

One to four family residential real estate

$

324,773

 

$

321,058

 

$

1,298

 

$

2,417

Construction

 

305,305

 

 

305,305

 

 

-

 

 

-

Commercial real estate

 

1,506,026

 

 

1,497,845

 

 

546

 

 

7,635

Commercial

 

578,071

 

 

574,593

 

 

519

 

 

2,959

Consumer finance

 

37,649

 

 

37,444

 

 

205

 

 

-

Home equity and improvement

 

122,864

 

 

121,211

 

 

1,205

 

 

448

Total loans

$

2,874,688

 

$

2,857,456

 

$

3,773

 

$

13,459

 

 

 

 

 

 

 

March 31, 2019

 

 

 

 

 

 

 

One to four family residential real estate

$

321,644

 

$

317,684

 

$

776

 

$

3,184

Construction

 

304,241

 

 

304,241

 

 

-

 

 

-

Commercial real estate

 

1,394,500

 

 

1,384,815

 

 

225

 

 

9,460

Commercial

 

509,627

 

 

504,722

 

 

547

 

 

4,358

Consumer finance

 

34,262

 

 

34,076

 

 

148

 

 

38

Home equity and improvement

 

124,450

 

 

123,694

 

 

151

 

 

605

Total loans

$

2,688,724

 

$

2,669,232

 

$

1,847

 

$

17,645

Non-GAAP Reconciliations
First Defiance Financial Corp.
 
(In thousands, except per share and ratio data) 1st Qtr 2020 4th Qtr 2019 3rd Qtr 2019 2nd Qtr 2019 1st Qtr 2019
Acquisition related charges (pre-tax)

$

11,486

 

$

882

 

$

540

 

$

-

 

$

-

 

Less: Tax benefit of acquisition related charges

 

2,034

 

 

185

 

 

113

 

 

-

 

 

-

 

Acquisition related charges (after-tax)

$

9,452

 

$

697

 

$

427

 

$

-

 

$

-

 

 
Total non-interest expenses

$

43,768

 

$

24,760

 

$

23,203

 

$

24,235

 

$

24,866

 

Less: Acquisition related charges (pre-tax)

 

11,486

 

 

882

 

 

540

 

 

-

 

 

-

 

Core non-interest expenses

$

32,282

 

$

23,878

 

$

22,663

 

$

24,235

 

$

24,866

 

 
Acquisition related provision (pre-tax)

$

25,949

 

$

-

 

$

-

 

$

-

 

$

-

 

Less: Tax benefit of acquisition related provision

 

5,449

 

 

-

 

 

-

 

 

-

 

 

-

 

Acquisition related provision (after-tax)

$

20,500

 

$

-

 

$

-

 

$

-

 

$

-

 

 
Provision for loan losses

$

43,786

 

$

1,084

 

$

1,327

 

$

282

 

$

212

 

Less: Acquisition related provision (pre-tax)

 

25,949

 

 

-

 

 

-

 

 

-

 

 

-

 

Core provision for loan losses

$

17,837

 

$

1,084

 

$

1,327

 

$

282

 

$

212

 

 
Tax-equivalent net interest income

$

45,714

 

$

29,730

 

$

29,131

 

$

29,238

 

$

28,517

 

Non-interest income (excluding securities gains/losses)

 

13,999

 

 

11,803

 

 

11,831

 

 

10,486

 

 

10,813

 

Total revenues

 

59,713

 

 

41,533

 

 

40,962

 

 

39,724

 

 

39,330

 

Core non-interest expenses

$

32,282

 

$

23,878

 

$

22,663

 

$

24,235

 

$

24,866

 

Core efficiency ratio

 

54.06

%

 

57.49

%

 

55.33

%

 

61.01

%

 

63.22

%

 
Income (loss) before income taxes

$

(28,092

)

$

15,470

 

$

16,204

 

$

14,958

 

$

14,005

 

Add: Provision for loan losses

 

43,786

 

 

1,084

 

 

1,327

 

 

282

 

 

212

 

Pre-tax pre-provision income

 

15,694

 

 

16,554

 

 

17,531

 

 

15,240

 

 

14,217

 

Add: Acquisition related charges (pre-tax)

 

11,486

 

 

882

 

 

540

 

 

-

 

 

-

 

Core pre-tax pre-provision income

$

27,180

 

$

17,436

 

$

18,071

 

$

15,240

 

$

14,217

 

Average total assets

$

5,357,598

 

$

3,425,097

 

$

3,303,013

 

$

3,223,997

 

$

3,183,012

 

Core pre-tax pre-provision return on average assets

 

2.04

%

 

2.02

%

 

2.17

%

 

1.90

%

 

1.81

%

 
Net income (loss)

$

(22,482

)

$

12,517

 

$

13,171

 

$

12,199

 

$

11,482

 

Add: Acquisition related provision (after-tax)

 

20,500

 

 

-

 

 

-

 

 

-

 

 

-

 

Add: Acquisition related charges (after-tax)

 

9,452

 

 

697

 

 

427

 

 

-

 

 

-

 

Core net income

$

7,470

 

$

13,214

 

$

13,598

 

$

12,199

 

$

11,482

 

 
Diluted shares - Reported

 

31,642

 

 

19,895

 

 

19,875

 

 

19,860

 

 

20,095

 

Add: Dilutive shares for core net income

 

121

 

 

-

 

 

-

 

 

-

 

 

-

 

Diluted shares - Core

 

31,763

 

 

19,895

 

 

19,875

 

 

19,860

 

 

20,095

 

Core diluted EPS

$

0.24

 

$

0.66

 

$

0.68

 

$

0.61

 

$

0.57

 

 
Average total assets

$

5,357,598

 

$

3,425,097

 

$

3,303,013

 

$

3,223,997

 

$

3,183,012

 

Core return on average assets

 

0.56

%

 

1.53

%

 

1.63

%

 

1.52

%

 

1.46

%

 
Average total equity

$

787,519

 

$

420,352

 

$

411,041

 

$

398,612

 

$

395,138

 

Core return on average equity

 

3.82

%

 

12.47

%

 

13.12

%

 

12.28

%

 

11.78

%

 

Contacts

Paul Nungester
EVP and CFO
(419) 785-8700
pnungester@first-fed.com

Release Summary

First Defiance Financial Corp. Announces Solid 2020 First Quarter Results

Contacts

Paul Nungester
EVP and CFO
(419) 785-8700
pnungester@first-fed.com