UNITED STATES
|
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OHIO
|
34-1803915
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
601 Clinton Street, Defiance, Ohio
|
43512
|
(Address of principal executive offices)
|
(Zip code)
|
Common Stock, Par Value $0.01 Per Share
|
|
The NASDAQ Stock Market
|
(Title of Class)
|
|
(Name of each exchange on which registered)
|
|
|
Page
|
PART I
|
|
|
Item 1.
|
Business
|
3
|
Item 1A.
|
Risk Factors
|
26
|
Item 1B.
|
Unresolved Staff Comments
|
31
|
Item 2.
|
Properties
|
31
|
Item 3.
|
Legal Proceedings
|
33
|
Item 4.
|
Mine Safety Disclosures
|
33
|
|
|
|
PART II
|
|
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
33
|
Item 6.
|
Selected Financial Data
|
36
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operation
|
37
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
57
|
Item 8.
|
Financial Statements and Supplementary Data
|
59
|
Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
133
|
Item 9A.
|
Controls and Procedures
|
133
|
Item 9B.
|
Other Information
|
133
|
|
|
|
PART III
|
|
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
133
|
Item 11.
|
Executive Compensation
|
133
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
133
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
134
|
Item 14.
|
Principal Accounting Fees and Services
|
134
|
|
|
|
PART IV
|
|
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
135
|
|
|
|
SIGNATURES
|
|
136
|
- 2 - | ||
- 3 - | ||
- 4 - | ||
- 5 - | ||
|
|
Contractually Maturing
|
|
|
Total
|
|
||||||||||||||||||||
|
|
|
|
|
Weighted
|
|
|
|
|
Weighted
|
|
|
|
|
Weighted
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
Under 1
|
|
Average
|
|
1 - 5
|
|
Average
|
|
6-10
|
|
Average
|
|
Over 10
|
|
Average
|
|
|
|
|
|
|
||||
|
|
Year
|
|
Rate
|
|
Years
|
|
Rate
|
|
Years
|
|
Rate
|
|
Years
|
|
Rate
|
|
Amount
|
|
Yield
|
|
|||||
|
|
(Dollars in Thousands)
|
|
|
|
|||||||||||||||||||||
Mortgage-backed
securities |
|
$
|
6,088
|
|
3.54
|
%
|
$
|
17,057
|
|
3.36
|
%
|
$
|
11,061
|
|
3.21
|
%
|
$
|
5,362
|
|
3.03
|
%
|
$
|
39,568
|
|
3.30
|
%
|
CMOs
|
|
|
9,646
|
|
3.33
|
|
|
27,274
|
|
3.05
|
|
|
16,840
|
|
2.71
|
|
|
5,293
|
|
2.53
|
|
|
59,052
|
|
2.95
|
|
U.S. government and
federal agency obligations |
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
|
5,000
|
|
1.80
|
|
|
-
|
|
-
|
|
|
5,000
|
|
1.80
|
|
Obligations of states and
political subdivisions (1) |
|
|
135
|
|
4.79
|
|
|
4,343
|
|
3.42
|
|
|
30,876
|
|
3.44
|
|
|
42,516
|
|
3.84
|
|
|
77,870
|
|
3.66
|
|
Trust preferred stock and preferred stock
|
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
|
17
|
|
-
|
|
|
3,247
|
|
2.38
|
|
|
3,264
|
|
2.37
|
|
Corporate bonds
|
|
|
2,000
|
|
1.04
|
|
|
3,854
|
|
0.64
|
|
|
3,000
|
|
1.16
|
|
|
-
|
|
-
|
|
|
8,854
|
|
0.90
|
|
Total
|
|
$
|
17,869
|
|
|
|
$
|
52,528
|
|
|
|
$
|
66,794
|
|
|
|
$
|
56,418
|
|
|
|
$
|
193,608
|
|
|
|
Unamortized premiums/
(discounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,550
|
|
|
|
Unrealized gain on
securities available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,399
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
198,557
|
|
|
|
(1) | Tax exempt yield based on effective tax rate of 35%. Actual coupon rate is approximately equal to the weighted average rate disclosed in the table times 65%. |
- 6 - | ||
|
|
December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
Obligations of U.S. government corporations and
agencies |
|
$
|
4,921
|
|
$
|
11,069
|
|
$
|
17,085
|
|
U.S. treasury bonds
|
|
|
-
|
|
|
1,002
|
|
|
2,010
|
|
Obligations of state and political subdivisions
|
|
|
80,220
|
|
|
82,611
|
|
|
71,503
|
|
CMOs, REMICS and mortgage-backed securities
|
|
|
101,133
|
|
|
88,927
|
|
|
132,619
|
|
Trust preferred stock and preferred stock
|
|
|
2,954
|
|
|
1,608
|
|
|
1,450
|
|
Corporate bonds
|
|
|
8,942
|
|
|
8,884
|
|
|
8,252
|
|
Total
|
|
$
|
198,170
|
|
$
|
194,101
|
|
$
|
232,919
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
|
|
$
|
201
|
|
$
|
291
|
|
$
|
353
|
|
Obligations of state and political subdivisions
|
|
|
186
|
|
|
217
|
|
|
308
|
|
Total
|
|
$
|
387
|
|
$
|
508
|
|
$
|
661
|
|
- 7 - | ||
|
|
December 31
|
|
|||||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||||||||||||||
|
|
|
|
|
|
|
Percentage
|
|
|
|
|
|
|
Percentage
|
|
|
|
|
|
|
Percentage
|
|
|
|
Number
|
|
|
Aggregate
|
|
of Aggregate
|
|
Number
|
|
|
Aggregate
|
|
of Aggregate
|
|
Number
|
|
|
Aggregate
|
|
of Aggregate
|
|
|
|
of
|
|
|
Principal
|
|
Principal
|
|
of
|
|
|
Principal
|
|
Principal
|
|
of
|
|
|
Principal
|
|
Principal
|
|
Rate
|
|
Loans
|
|
|
Balance
|
|
Balance
|
|
Loans
|
|
|
Balance
|
|
Balance
|
|
Loans
|
|
|
Balance
|
|
Balance
|
|
|
|
(Dollars in Thousands)
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 3.00%
|
|
1,901
|
|
$
|
220,376
|
|
16.07
|
%
|
1,182
|
|
$
|
148,144
|
|
11.15
|
%
|
109
|
|
$
|
12,501
|
|
0.98
|
%
|
3.00% -3.99%
|
|
4,771
|
|
|
544,512
|
|
39.71
|
|
3,822
|
|
|
454,634
|
|
34.22
|
|
1,693
|
|
|
208,158
|
|
16.39
|
|
4.00% -4.99%
|
|
3,508
|
|
|
333,469
|
|
24.32
|
|
3,597
|
|
|
346,528
|
|
26.08
|
|
4,485
|
|
|
476,007
|
|
37.47
|
|
5.00% - 5.99%
|
|
2,537
|
|
|
177,999
|
|
12.98
|
|
3,218
|
|
|
243,077
|
|
18.29
|
|
4,457
|
|
|
370,355
|
|
29.15
|
|
6.00% - 6.99%
|
|
1,316
|
|
|
80,457
|
|
5.87
|
|
1,746
|
|
|
116,855
|
|
8.79
|
|
2,383
|
|
|
177,353
|
|
13.96
|
|
7.00% and over
|
|
286
|
|
|
14,428
|
|
1.05
|
|
362
|
|
|
19,479
|
|
1.47
|
|
449
|
|
|
26,013
|
|
2.05
|
|
Total
|
|
14,319
|
|
$
|
1,371,241
|
|
100.00
|
%
|
13,927
|
|
$
|
1,328,717
|
|
100.00
|
%
|
13,576
|
|
$
|
1,270,387
|
|
100.00
|
%
|
|
|
December 31
|
|
|||||||||||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
Unpaid
|
|
Unpaid
|
|
|
|
% of
|
|
|
Unpaid
|
|
Unpaid
|
|
|
|
% of
|
|
|
Unpaid
|
|
Unpaid
|
|
|
|
Number
|
|
Number
|
|
|
Principal
|
|
Principal
|
|
Number
|
|
Number
|
|
|
Principal
|
|
Principal
|
|
Number
|
|
Number
|
|
|
Principal
|
|
Principal
|
|
Maturity
|
|
of Loans
|
|
of Loans
|
|
|
Amount
|
|
Amount
|
|
of Loans
|
|
of Loans
|
|
|
Amount
|
|
Amount
|
|
of Loans
|
|
of Loans
|
|
|
Amount
|
|
Amount
|
|
|
|
(Dollars in Thousands)
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15 years
|
|
846
|
|
5.91
|
%
|
$
|
19,593
|
|
1.43
|
%
|
507
|
|
3.64
|
%
|
$
|
10,537
|
|
0.79
|
%
|
375
|
|
2.76
|
%
|
$
|
6,267
|
|
0.49
|
%
|
610 years
|
|
1,009
|
|
7.05
|
|
|
52,404
|
|
3.82
|
|
4,030
|
|
28.94
|
|
|
395,066
|
|
29.73
|
|
1,677
|
|
12.35
|
|
|
72,700
|
|
5.72
|
|
1115 years
|
|
4,340
|
|
30.31
|
|
|
420,362
|
|
30.66
|
|
1,391
|
|
9.99
|
|
|
134,916
|
|
10.16
|
|
3,326
|
|
24.50
|
|
|
310,369
|
|
24.43
|
|
1620 years
|
|
1,704
|
|
11.90
|
|
|
158,467
|
|
11.56
|
|
1,846
|
|
13.25
|
|
|
163,929
|
|
12.34
|
|
1,026
|
|
7.56
|
|
|
99,650
|
|
7.84
|
|
2125 years
|
|
1,218
|
|
8.51
|
|
|
102,844
|
|
7.50
|
|
1,370
|
|
9.84
|
|
|
60,618
|
|
4.56
|
|
2,347
|
|
17.29
|
|
|
220,429
|
|
17.35
|
|
More than 25 years
|
|
5,202
|
|
36.32
|
|
|
617,571
|
|
45.03
|
|
4,783
|
|
34.34
|
|
|
563,651
|
|
42.42
|
|
4,825
|
|
35.54
|
|
|
560,972
|
|
44.17
|
|
Total
|
|
14,319
|
|
100.00
|
%
|
$
|
1,371,241
|
|
100.00
|
%
|
13,927
|
|
100.00
|
%
|
$
|
1,328,717
|
|
100.00
|
%
|
13,576
|
|
100.00
|
%
|
$
|
1,270,387
|
|
100.00
|
%
|
- 8 - | ||
|
|
|
December 31
|
|
||||||||||||||||||||||
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
||||||||||
|
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
|
|
|
|
(Dollars in Thousands)
|
|
||||||||||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family residential
|
|
$
|
195,752
|
|
12.2
|
%
|
$
|
200,826
|
|
13.0
|
%
|
$
|
203,401
|
|
13.6
|
%
|
$
|
205,938
|
|
13.5
|
%
|
$
|
227,592
|
|
13.8
|
%
|
Five or more family
residential |
|
|
148,952
|
|
9.2
|
|
|
122,275
|
|
7.9
|
|
|
126,246
|
|
8.4
|
|
|
120,534
|
|
7.9
|
|
|
103,169
|
|
6.3
|
|
Nonresidential real estate
|
|
|
670,666
|
|
41.6
|
|
|
675,110
|
|
43.7
|
|
|
649,746
|
|
43.3
|
|
|
646,478
|
|
42.2
|
|
|
703,721
|
|
42.8
|
|
Construction
|
|
|
86,058
|
|
5.3
|
|
|
37,788
|
|
2.5
|
|
|
31,552
|
|
2.1
|
|
|
30,340
|
|
2.0
|
|
|
48,625
|
|
3.0
|
|
Total real estate loans
|
|
|
1,101,428
|
|
68.3
|
|
|
1,035,999
|
|
67.1
|
|
|
1,010,945
|
|
67.4
|
|
|
1,003,290
|
|
65.6
|
|
|
1,083,107
|
|
65.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer finance
|
|
|
16,902
|
|
1.0
|
|
|
15,936
|
|
1.0
|
|
|
18,887
|
|
1.3
|
|
|
22,848
|
|
1.5
|
|
|
34,105
|
|
2.0
|
|
Commercial
|
|
|
388,236
|
|
24.1
|
|
|
383,817
|
|
24.9
|
|
|
349,053
|
|
23.2
|
|
|
369,959
|
|
24.2
|
|
|
379,408
|
|
23.1
|
|
Home equity and improvement
|
|
|
106,930
|
|
6.6
|
|
|
108,718
|
|
7.0
|
|
|
122,143
|
|
8.1
|
|
|
133,593
|
|
8.7
|
|
|
147,977
|
|
9.0
|
|
Total non-real estate loans
|
|
|
512,068
|
|
31.7
|
|
|
508,471
|
|
32.9
|
|
|
490,083
|
|
32.6
|
|
|
526,400
|
|
34.4
|
|
|
561,490
|
|
34.1
|
|
Total loans
|
|
|
1,613,496
|
|
100.0
|
%
|
|
1,544,470
|
|
100.0
|
%
|
|
1,501,028
|
|
100.0
|
%
|
|
1,529,690
|
|
100.0
|
%
|
|
1,644,597
|
|
100.0
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans in process
|
|
|
32,290
|
|
|
|
|
18,478
|
|
|
|
|
13,243
|
|
|
|
|
9,267
|
|
|
|
|
26,494
|
|
|
|
Deferred loan origination fees
|
|
|
758
|
|
|
|
|
735
|
|
|
|
|
709
|
|
|
|
|
920
|
|
|
|
|
981
|
|
|
|
Allowance for loan losses
|
|
|
24,950
|
|
|
|
|
26,711
|
|
|
|
|
33,254
|
|
|
|
|
41,080
|
|
|
|
|
36,547
|
|
|
|
Net loans
|
|
$
|
1,555,498
|
|
|
|
$
|
1,498,546
|
|
|
|
$
|
1,453,822
|
|
|
|
$
|
1,478,423
|
|
|
|
$
|
1,580,575
|
|
|
|
|
|
|
Years After December 31, 2013
|
|
||||||||||||||||||
|
|
|
Due Less
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
than 1
|
|
|
Due 1-2
|
|
|
Due 3-5
|
|
|
Due 5-10
|
|
|
Due 10-15
|
|
|
Due 15+
|
|
|
Total
|
|
|
|
|
(In Thousands)
|
|
||||||||||||||||||
Real estate
|
|
$
|
274,718
|
|
$
|
124,116
|
|
$
|
525,816
|
|
$
|
95,005
|
|
$
|
27,520
|
|
$
|
54,253
|
|
$
|
1,101,428
|
|
Non-real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
253,764
|
|
|
48,475
|
|
|
81,270
|
|
|
4,727
|
|
|
-
|
|
|
-
|
|
|
388,236
|
|
Home equity
and improvement |
|
|
70,633
|
|
|
8,930
|
|
|
22,389
|
|
|
3,887
|
|
|
382
|
|
|
709
|
|
|
106,930
|
|
Consumer finance
|
|
|
7,201
|
|
|
4,274
|
|
|
5,237
|
|
|
167
|
|
|
23
|
|
|
-
|
|
|
16,902
|
|
Total
|
|
$
|
606,316
|
|
$
|
185,795
|
|
$
|
634,712
|
|
$
|
103,786
|
|
$
|
27,925
|
|
$
|
54,962
|
|
$
|
1,613,496
|
|
- 9 - | ||
|
|
|
|
|
|
Floating or
|
|
|
|
|
|
|
|
Fixed
|
|
|
Adjustable
|
|
|
|
|
|
|
|
Rates
|
|
|
Rates
|
|
|
Total
|
|
|
|
(In Thousands)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Real estate
|
|
$
|
302,710
|
|
$
|
524,000
|
|
$
|
826,710
|
|
Commercial
|
|
|
120,499
|
|
|
13,973
|
|
|
134,472
|
|
Other
|
|
|
45,137
|
|
|
861
|
|
|
45,998
|
|
|
|
$
|
468,346
|
|
$
|
538,834
|
|
$
|
1,007,180
|
|
- 10 - | ||
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Loan originations:
|
|
|
|
|
|
|
|
|
|
|
Single family residential
|
|
$
|
326,700
|
|
$
|
546,773
|
|
$
|
282,321
|
|
Multi-family residential
|
|
|
50,874
|
|
|
28,521
|
|
|
11,401
|
|
Non-residential real estate
|
|
|
113,999
|
|
|
191,742
|
|
|
125,884
|
|
Construction
|
|
|
67,530
|
|
|
33,557
|
|
|
29,189
|
|
Commercial
|
|
|
435,248
|
|
|
603,415
|
|
|
186,338
|
|
Home equity and improvement
|
|
|
41,552
|
|
|
32,684
|
|
|
19,063
|
|
Consumer finance
|
|
|
10,043
|
|
|
9,722
|
|
|
10,216
|
|
Total loans originated
|
|
|
1,045,946
|
|
|
1,446,414
|
|
|
664,412
|
|
Loans purchased:
|
|
|
4,545
|
|
|
-
|
|
|
25,842
|
|
Loan reductions:
|
|
|
|
|
|
|
|
|
|
|
Loan pay-offs
|
|
|
205,254
|
|
|
299,479
|
|
|
227,812
|
|
Loans sold
|
|
|
315,812
|
|
|
514,351
|
|
|
266,580
|
|
Periodic principal repayments
|
|
|
473,343
|
|
|
580,919
|
|
|
228,810
|
|
|
|
|
994,409
|
|
|
1,394,749
|
|
|
723,202
|
|
Net (decrease) increase in total loans and loans held for sale
|
|
$
|
56,082
|
|
$
|
51,665
|
|
$
|
(32,948)
|
|
- 11 - | ||
|
|
30 to 59 Days
|
|
60 to 89 Days
|
90 Days and Over
|
|
Total
|
|
||||||||||||||
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
|
|||||
|
|
(Dollars in Thousands)
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One to four family
residential real estate |
|
$
|
2,045
|
|
0.12
|
%
|
$
|
594
|
|
0.04
|
%
|
$
|
1,394
|
|
0.09
|
%
|
$
|
4,033
|
|
|
0.25
|
%
|
Nonresidential and Multi-
family residential |
|
|
1,420
|
|
0.09
|
|
|
1,410
|
|
0.09
|
|
|
5,936
|
|
0.36
|
|
|
8,766
|
|
|
0.54
|
|
Commercial
|
|
|
37
|
|
0.00
|
|
|
26
|
|
0.00
|
|
|
3,984
|
|
0.25
|
|
|
4,047
|
|
|
0.25
|
|
Construction
|
|
|
-
|
|
0.00
|
|
|
-
|
|
0.00
|
|
|
-
|
|
0.00
|
|
|
-
|
|
|
0.00
|
|
Home Equity and Improvement
|
|
|
1,153
|
|
0.07
|
|
|
153
|
|
0.01
|
|
|
413
|
|
0.03
|
|
|
1,719
|
|
|
0.11
|
|
Consumer Finance
|
|
|
131
|
|
0.01
|
|
|
-
|
|
0.00
|
|
|
-
|
|
0.00
|
|
|
131
|
|
|
0.01
|
|
Total
|
|
$
|
4,786
|
|
0.29
|
%
|
$
|
2,183
|
|
0.14
|
%
|
$
|
11,727
|
|
0.73
|
%
|
$
|
18,696
|
|
|
1.16
|
%
|
- 12 - | ||
|
|
December 31
|
|
|||||||||||||||||
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
|
|
(Dollars in Thousands)
|
|
|||||||||||||||||
Nonperforming loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One to four family residential
real estate |
|
$
|
3,273
|
|
|
$
|
3,602
|
|
|
$
|
3,890
|
|
|
$
|
7,232
|
|
|
$
|
5,349
|
|
Nonresidential and multi-family
residential real estate |
|
|
15,834
|
|
|
|
23,090
|
|
|
|
28,150
|
|
|
|
21,737
|
|
|
|
24,042
|
|
Commercial
|
|
|
8,327
|
|
|
|
5,661
|
|
|
|
6,884
|
|
|
|
11,547
|
|
|
|
10,615
|
|
Construction
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
64
|
|
|
|
675
|
|
Home Equity and Improvement
|
|
|
413
|
|
|
|
217
|
|
|
|
394
|
|
|
|
446
|
|
|
|
451
|
|
Consumer finance
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
|
|
14
|
|
|
|
59
|
|
Total nonperforming loans
|
|
|
27,847
|
|
|
|
32,570
|
|
|
|
39,328
|
|
|
|
41,040
|
|
|
|
41,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate owned
|
|
|
5,859
|
|
|
|
3,805
|
|
|
|
3,608
|
|
|
|
9,591
|
|
|
|
13,413
|
|
Other repossessed assets
|
|
|
-
|
|
|
|
-
|
|
|
|
20
|
|
|
|
-
|
|
|
|
114
|
|
Total repossessed assets
|
|
|
5,859
|
|
|
|
3,805
|
|
|
|
3,628
|
|
|
|
9,591
|
|
|
|
13,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets
|
|
$
|
33,706
|
|
|
$
|
36,375
|
|
|
$
|
42,956
|
|
|
$
|
50,631
|
|
|
$
|
54,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured loans, accruing
|
|
$
|
27,630
|
|
|
$
|
28,203
|
|
|
$
|
3,380
|
|
|
$
|
6,001
|
|
|
$
|
6,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets as a
percentage of total assets |
|
|
1.58
|
%
|
|
|
1.78
|
%
|
|
|
2.08
|
%
|
|
|
2.49
|
%
|
|
|
2.66
|
%
|
Total nonperforming loans as a
percentage of total loans* |
|
|
1.76
|
%
|
|
|
2.14
|
%
|
|
|
2.64
|
%
|
|
|
2.70
|
%
|
|
|
2.55
|
%
|
Total nonperforming assets as a
percentage of total loans plus REO* |
|
|
2.12
|
%
|
|
|
2.38
|
%
|
|
|
2.88
|
%
|
|
|
3.70
|
%
|
|
|
3.77
|
%
|
Allowance for loan losses as a
percent of total nonperforming assets |
|
|
74.02
|
%
|
|
|
73.43
|
%
|
|
|
77.41
|
%
|
|
|
81.14
|
%
|
|
|
66.79
|
%
|
- 13 - | ||
- 14 - | ||
|
|
Years Ended December 31
|
|
|||||||||||||||||
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
|
|
(Dollars in Thousands)
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance at beginning of year
|
|
$
|
26,711
|
|
|
$
|
33,254
|
|
|
$
|
41,080
|
|
|
$
|
36,547
|
|
|
$
|
24,592
|
|
Provision for credit losses
|
|
|
1,824
|
|
|
|
10,924
|
|
|
|
12,434
|
|
|
|
23,177
|
|
|
|
23,232
|
|
Allowance acquired in acquisitions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family residential real
estate |
|
|
(643)
|
|
|
|
(2,515)
|
|
|
|
(2,753)
|
|
|
|
(3,092)
|
|
|
|
(2,281)
|
|
Commercial real estate and
multi-family |
|
|
(2,475)
|
|
|
|
(11,319)
|
|
|
|
(13,150)
|
|
|
|
(9,928)
|
|
|
|
(5,799)
|
|
Commercial
|
|
|
(1,230)
|
|
|
|
(4,047)
|
|
|
|
(4,398)
|
|
|
|
(5,118)
|
|
|
|
(2,664)
|
|
Consumer finance
|
|
|
(94)
|
|
|
|
(133)
|
|
|
|
(95)
|
|
|
|
(124)
|
|
|
|
(320)
|
|
Home equity and improvement
|
|
|
(757)
|
|
|
|
(1,165)
|
|
|
|
(1,052)
|
|
|
|
(1,066)
|
|
|
|
(762)
|
|
Total charge-offs
|
|
|
(5,199)
|
|
|
|
(19,179)
|
|
|
|
(21,448)
|
|
|
|
(19,328)
|
|
|
|
(11,826)
|
|
Recoveries
|
|
|
1,614
|
|
|
|
1,712
|
|
|
|
1,188
|
|
|
|
684
|
|
|
|
549
|
|
Net charge-offs
|
|
|
(3,585)
|
|
|
|
(17,467)
|
|
|
|
(20,260)
|
|
|
|
(18,644)
|
|
|
|
(11,277)
|
|
Ending allowance
|
|
$
|
24,950
|
|
|
$
|
26,711
|
|
|
$
|
33,254
|
|
|
$
|
41,080
|
|
|
$
|
36,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total
non-performing loans at end of year |
|
|
89.60
|
%
|
|
|
82.01
|
%
|
|
|
84.56
|
%
|
|
|
100.10
|
%
|
|
|
88.73
|
%
|
Allowance for loan losses to total
loans at end of year* |
|
|
1.58
|
%
|
|
|
1.75
|
%
|
|
|
2.24
|
%
|
|
|
2.70
|
%
|
|
|
2.26
|
%
|
Allowance for loan losses to net
charge-offs for the year |
|
|
695.96
|
%
|
|
|
152.92
|
%
|
|
|
164.14
|
%
|
|
|
220.34
|
%
|
|
|
324.08
|
%
|
Net charge-offs for the year to
average loans |
|
|
0.23
|
%
|
|
|
1.18
|
%
|
|
|
1.41
|
%
|
|
|
1.21
|
%
|
|
|
0.70
|
%
|
|
|
December 31
|
|
|||||||||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
|||||||||||||||
|
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|
|
Percent of
|
|
|||||
|
|
|
|
total loans
|
|
|
|
total loans
|
|
|
|
total loans
|
|
|
|
total loans
|
|
|
|
total loans
|
|
|||||
|
|
Amount
|
|
by category
|
|
Amount
|
|
by category
|
|
Amount
|
|
by category
|
|
Amount
|
|
by category
|
|
Amount
|
|
by category
|
|
|||||
|
|
(Dollars in Thousands)
|
|
|||||||||||||||||||||||
Single family residential and
construction |
|
$
|
2,981
|
|
17.5
|
%
|
$
|
3,581
|
|
15.5
|
%
|
$
|
4,158
|
|
15.7
|
%
|
$
|
6,029
|
|
15.5
|
%
|
$
|
6,048
|
|
16.8
|
%
|
Nonresidential and Multi-family
residential real estate |
|
|
14,508
|
|
50.8
|
|
|
14,899
|
|
51.6
|
|
|
20,490
|
|
51.7
|
|
|
22,355
|
|
50.1
|
|
|
18,876
|
|
49.1
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
|
|
5,678
|
|
24.1
|
|
|
6,325
|
|
24.9
|
|
|
6,576
|
|
23.2
|
|
|
10,871
|
|
24.2
|
|
|
9,444
|
|
23.1
|
|
Consumer and home equity
and improvement loans |
|
|
1,783
|
|
7.6
|
|
|
1,906
|
|
8.0
|
|
|
2,030
|
|
9.4
|
|
|
1,825
|
|
10.2
|
|
|
2,179
|
|
11.0
|
|
|
|
$
|
24,950
|
|
100.0
|
%
|
$
|
26,711
|
|
100.0
|
%
|
$
|
33,254
|
|
100.0
|
%
|
$
|
41,080
|
|
100.0
|
%
|
$
|
36,547
|
|
100.0
|
%
|
- 15 - | ||
|
|
Years Ended December 31
|
|
|||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||||||||
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
|||
|
|
(Dollars in Thousands)
|
|
|||||||||||||
Non-interest-bearing demand deposits
|
|
$
|
308,591
|
|
-
|
|
$
|
266,913
|
|
-
|
|
$
|
231,343
|
|
-
|
|
Interest bearing demand deposits
|
|
|
677,903
|
|
0.17
|
%
|
|
629,568
|
|
0.20
|
%
|
|
592,093
|
|
0.36
|
%
|
Savings deposits
|
|
|
179,041
|
|
0.05
|
|
|
164,508
|
|
0.07
|
|
|
153,318
|
|
0.16
|
|
Time deposits
|
|
|
496,360
|
|
0.95
|
|
|
558,648
|
|
1.21
|
|
|
613,374
|
|
1.60
|
|
Totals
|
|
$
|
1,661,895
|
|
0.36
|
%
|
$
|
1,619,637
|
|
0.50
|
%
|
$
|
1,590,128
|
|
0.77
|
%
|
Retail certificates of deposit maturing in quarter ending:
|
|
|
|
|
March 31, 2014
|
|
$
|
28,608
|
|
June 30, 2014
|
|
|
28,862
|
|
September 30, 2014
|
|
|
30,192
|
|
December 31, 2014
|
|
|
15,194
|
|
After December 31, 2014
|
|
|
69,598
|
|
Total retail certificates of deposit with balances greater than $100,000
|
|
$
|
172,454
|
|
- 16 - | ||
|
|
2013
|
|
2012
|
|
||
|
|
(In Thousands)
|
|
||||
|
|
|
|
|
|
|
|
Interest bearing demand deposits and money market accounts
|
|
$
|
14
|
|
$
|
13
|
|
Certificates of deposit
|
|
|
34
|
|
|
58
|
|
|
|
$
|
48
|
|
$
|
71
|
|
|
|
December 31
|
|
|||||||||
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|||
|
|
(Dollars in Thousands)
|
|
|||||||||
Long-term:
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB advances
|
|
$
|
22,520
|
|
|
$
|
12,796
|
|
|
$
|
81,841
|
|
Weighted average interest rate
|
|
|
2.36
|
%
|
|
|
2.80
|
%
|
|
|
3.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreement to repurchase
|
|
$
|
51,919
|
|
|
$
|
51,702
|
|
|
$
|
60,386
|
|
Weighted average interest rate
|
|
|
0.31
|
%
|
|
|
0.63
|
%
|
|
|
0.92
|
%
|
|
|
Years Ended December 31
|
|
|||||||||
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|||
|
|
(Dollars in Thousands)
|
|
|||||||||
Long-term:
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB advances:
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum balance
|
|
$
|
22,765
|
|
|
$
|
81,838
|
|
|
$
|
116,882
|
|
Average balance
|
|
|
16,569
|
|
|
|
66,121
|
|
|
|
93,652
|
|
Weighted average interest rate
|
|
|
2.62
|
%
|
|
|
3.67
|
%
|
|
|
3.43
|
%
|
- 17 - | ||
|
|
Years Ended December 31
|
|
|||||||||
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|||
|
|
(Dollars in Thousands)
|
|
|||||||||
Short-term:
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB advances:
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum balance
|
|
$
|
50,000
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Average balance
|
|
|
1,164
|
|
|
|
-
|
|
|
|
16
|
|
Weighted average interest rate
|
|
|
0.09
|
%
|
|
|
-
|
|
|
|
0.17
|
%
|
Securities sold under agreement to repurchase:
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum balance
|
|
$
|
57,182
|
|
|
$
|
57,050
|
|
|
$
|
61,240
|
|
Average balance
|
|
|
50,877
|
|
|
|
53,171
|
|
|
|
56,495
|
|
Weighted average interest rate
|
|
|
0.44
|
%
|
|
|
0.70
|
%
|
|
|
0.94
|
%
|
- 18 - | ||
- 19 - | ||
- 20 - | ||
|
|
|
|
|
|
|
Minimum Required for
|
|
Minimum Required for Well
|
|
||||||
|
|
Actual
|
|
Adequately Capitalized
|
|
Capitalized
|
|
|||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|||
Tier 1 Capital (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
246,258
|
|
11.86
|
%
|
$
|
83,045
|
|
4.0
|
%
|
|
N/A
|
|
N/A
|
|
First Federal
|
|
$
|
235,699
|
|
11.36
|
%
|
$
|
82,978
|
|
4.0
|
%
|
$
|
103,722
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Capital (to Risk Weighted Assets) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
246,258
|
|
13.98
|
%
|
$
|
70,473
|
|
4.0
|
%
|
|
N/A
|
|
N/A
|
|
First Federal
|
|
$
|
235,699
|
|
13.39
|
%
|
$
|
70,418
|
|
4.0
|
%
|
$
|
105,627
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital (to Risk Weighted Assets) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
268,317
|
|
15.23
|
%
|
$
|
140,947
|
|
8.0
|
%
|
|
N/A
|
|
N/A
|
|
First Federal
|
|
$
|
257,741
|
|
14.64
|
%
|
$
|
140,836
|
|
8.0
|
%
|
$
|
176,046
|
|
10.0
|
%
|
(1) | Core capital is computed as a percentage of adjusted total assets of $2.08 billion and $2.07 billion for consolidated and First Federal, respectively. Risk-based capital is computed as a percentage of total risk-weighted assets of $1.76 billion and $1.76 billion for consolidated and First Federal, respectively. |
- 21 - | ||
- 22 - | ||
- 23 - | ||
- 24 - | ||
- 25 - | ||
· | more borrowers are unable to make payments on their loans; |
· | the value of collateral securing loans has declined; and |
· | the overall quality of the loan portfolio has declined. |
· | inability of borrowers to make timely repayments of their loans, or decreases in value of real estate collateral securing the payment of such loans resulting in significant credit losses, which could result in increased delinquencies, foreclosures and customer bankruptcies, any of which could have a material adverse effect on our operating results; |
· | increased regulation of the financial services industry, including heightened legal standards and regulatory requirements or expectations; compliance with such regulation will likely increase costs and may limit the Company’s ability to pursue business opportunities; |
· | further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations, may result in an inability to borrow on favorable terms or at all from other financial institutions; |
· | increased competition among financial services companies due to the consolidation of financial institutions, which may adversely affect our ability to market the Company’s products and services; and |
· | further increases in FDIC insurance premiums due to the market developments which have significantly depleted the insurance fund of the FDIC and reduced the ratio of reserves to insured deposits. |
- 26 - | ||
· | Actions by government regulators; |
· | First Defiance’s announcements of developments related to its business; |
· | Fluctuation in First Defiance’s results of operation; |
· | Sales of substantial amounts of First Defiance’s securities into the marketplace; and |
· | New reports of trends, concerns and other issues related to the financial services industry. |
- 27 - | ||
· | the rate of inflation; |
· | economic conditions; |
· | federal monetary policies; and |
· | stability of domestic and foreign markets. |
- 28 - | ||
- 29 - | ||
- 30 - | ||
- 31 - | ||
|
|
Leased/
|
|
Net Book Value
|
|
|
|
|
|
Description/address
|
|
Owned
|
|
of Property
|
|
Deposits
|
|
||
|
|
|
|
(In Thousands)
|
|
||||
Main Office, First Federal
|
|
|
|
|
|
|
|
|
|
601 Clinton St., Defiance, OH
|
|
Owned
|
|
$
|
4,476
|
|
$
|
220,886
|
|
Operations Center
|
|
|
|
|
|
|
|
|
|
25600 Elliott Rd., Defiance, OH
|
|
Owned
|
|
|
5,311
|
|
|
N/A
|
|
Mobile Banking
|
|
|
|
|
|
|
|
|
|
1011 W. Beecher St., Adrian, MI
|
|
Owned
|
|
|
190
|
|
|
N/A
|
|
Branch Offices, First Federal
|
|
|
|
|
|
|
|
|
|
204 E. High St., Bryan, OH*
|
|
Owned
|
|
|
649
|
|
|
134,120
|
|
211 S. Fulton St., Wauseon, OH
|
|
Owned
|
|
|
437
|
|
|
52,457
|
|
625 Scott St., Napoleon, OH
|
|
Owned
|
|
|
999
|
|
|
68,800
|
|
1050 East Main St., Montpelier, OH
|
|
Owned
|
|
|
347
|
|
|
39,415
|
|
926 East High St., Bryan, OH*
|
|
Owned
|
|
|
87
|
|
|
-
|
|
1800 Scott St., Napoleon, OH
|
|
Owned
|
|
|
1,269
|
|
|
28,394
|
|
1177 N. Clinton St., Defiance, OH
|
|
Owned, Land Lease Leased
|
|
|
875
|
|
|
38,915
|
|
905 N. Williams St., Paulding, OH
|
|
Owned
|
|
|
738
|
|
|
61,033
|
|
201 E. High St., Hicksville, OH
|
|
Owned
|
|
|
346
|
|
|
30,422
|
|
3900 N. Main St., Findlay, OH
|
|
Owned
|
|
|
937
|
|
|
47,654
|
|
11694 N. Countyline St., Fostoria, OH
|
|
Owned
|
|
|
638
|
|
|
40,681
|
|
1226 W. Wooster, Bowling Green, OH
|
|
Owned
|
|
|
979
|
|
|
101,144
|
|
301 S. Main St., Findlay, OH
|
|
Owned
|
|
|
960
|
|
|
56,849
|
|
405 E. Main St., Ottawa, OH
|
|
Owned
|
|
|
324
|
|
|
88,830
|
|
124 E. Main St., McComb, OH
|
|
Owned
|
|
|
186
|
|
|
19,862
|
|
7591 Patriot Dr., Findlay, OH
|
|
Owned
|
|
|
1,115
|
|
|
35,557
|
|
417 W Dussell Dr., Maumee, OH
|
|
Owned, Land Lease
|
|
|
830
|
|
|
53,861
|
|
230 E. Second St., Delphos, OH
|
|
Owned
|
|
|
989
|
|
|
95,362
|
|
105 S. Greenlawn Ave., Elida, OH
|
|
Owned
|
|
|
319
|
|
|
47,180
|
|
2600 Allentown Rd., Lima, OH
|
|
Owned
|
|
|
770
|
|
|
45,466
|
|
22020 W. State Rt. 51, Genoa, OH
|
|
Owned
|
|
|
829
|
|
|
30,908
|
|
3426 Navarre Ave., Oregon, OH
|
|
Owned
|
|
|
910
|
|
|
29,771
|
|
1077 Louisiana Ave., Perrysburg, OH
|
|
Owned
|
|
|
1,070
|
|
|
30,963
|
|
2565 Shawnee Rd., Lima, OH
|
|
Owned
|
|
|
1,406
|
|
|
70,821
|
|
1595 Dupont Rd., Fort Wayne, IN
|
|
Leased
|
|
|
28
|
|
|
21,388
|
|
135 South Main St., Glandorf, OH
|
|
Leased
|
|
|
-
|
|
|
16,149
|
|
300 N. Main St., Adrian, MI
|
|
Owned
|
|
|
704
|
|
|
64,288
|
|
1701 W. Maumee St., Adrian, MI
|
|
Owned
|
|
|
160
|
|
|
45,320
|
|
211 W. Main St., Morenci, MI
|
|
Owned
|
|
|
159
|
|
|
28,771
|
|
539 S. Meridian, Hudson, MI
|
|
Owned
|
|
|
555
|
|
|
39,935
|
|
1449 W. Chicago Blvd., Tecumseh, MI
|
|
Owned
|
|
|
1,472
|
|
|
45,946
|
|
1200 North Main St., Bowling Green OH
|
|
Owned
|
|
|
1,644
|
|
|
4,644
|
|
|
|
|
|
|
|
|
|
|
|
First Insurance Group
|
|
|
|
|
|
|
|
|
|
419 5th Street, Suite 1200, Defiance, OH
|
|
Leased
|
|
|
17
|
|
|
N/A
|
|
209 West Poe Road, Bowling Green, OH
|
|
Leased
|
|
|
8
|
|
|
N/A
|
|
926 E. High Street, Bryan, OH
|
|
Leased
|
|
|
-
|
|
|
N/A
|
|
1755 Indian Wood Circle, Maumee, OH
|
|
Leased
|
|
|
-
|
|
|
N/A
|
|
4350 Navarre Ave, Oregon, OH
|
|
Leased
|
|
|
-
|
|
|
N/A
|
|
|
|
|
|
$
|
32,733
|
|
$
|
1,735,792
|
|
- 32 - | ||
|
|
Years Ending
|
|
||||||||||||||||
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||||||||||
|
|
High
|
|
Low
|
|
Dividend
|
|
High
|
|
Low
|
|
Dividend
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
$
|
23.75
|
|
$
|
18.42
|
|
$
|
0.10
|
|
$
|
17.76
|
|
$
|
14.41
|
|
$
|
0.05
|
|
June 30
|
|
|
23.75
|
|
|
20.80
|
|
|
0.10
|
|
|
17.46
|
|
|
15.23
|
|
|
0.05
|
|
September 30
|
|
|
28.46
|
|
|
22.49
|
|
|
0.10
|
|
|
18.06
|
|
|
15.80
|
|
|
0.05
|
|
December 31
|
|
|
27.25
|
|
|
23.31
|
|
|
0.10
|
|
|
19.38
|
|
|
15.75
|
|
|
0.05
|
|
- 33 - | ||
|
|
Period Ending
|
|
||||||||||
Index
|
|
12/31/08
|
|
12/31/09
|
|
12/31/10
|
|
12/31/11
|
|
12/31/12
|
|
12/31/13
|
|
First Defiance Financial Corp.
|
|
100.00
|
|
153.53
|
|
161.82
|
|
199.10
|
|
265.02
|
|
364.68
|
|
NASDAQ Composite
|
|
100.00
|
|
145.36
|
|
171.74
|
|
170.38
|
|
200.63
|
|
281.22
|
|
SNL Bank NASDAQ
|
|
100.00
|
|
81.12
|
|
95.71
|
|
84.92
|
|
101.22
|
|
145.48
|
|
SNL Midwest Thrift
|
|
100.00
|
|
84.23
|
|
68.28
|
|
60.23
|
|
77.87
|
|
96.03
|
|
|
|
|
|
|
|
|
Total Number of
|
|
|
|
|
|
|
|
|
|
|
Shares Purchased
|
|
Maximum Number of
|
|
|
|
|
|
|
|
|
as Part of
|
|
Shares (or Approximate
|
|
|
|
Total Number of
|
|
|
Average Price
|
|
Publicly
|
|
Dollar Value) that May
|
|
|
|
Shares
|
|
|
Paid Per
|
|
Announced Plans
|
|
Yet Be Purchased Under
|
|
Period
|
|
Purchased
|
|
Share
|
|
or Programs (1)
|
|
the Plans or Programs (2)
|
|
|
October 1 October 31, 2013
|
|
-
|
|
$
|
-
|
|
-
|
|
-
|
|
November 1 November 30, 2013
|
|
23,127
|
|
|
25.16
|
|
23,127
|
|
465,873
|
|
December 1 December 31, 2013
|
|
47,839
|
|
|
25.89
|
|
47,839
|
|
418,034
|
|
Total
|
|
70,966
|
|
$
|
25.65
|
|
70,966
|
|
418,034
|
|
- 34 - | ||
(1) | The reported shares were repurchased pursuant to First Defiance’s publicly announced stock repurchase program, which became effective September 30, 2013. Up to 489,000 shares were authorized to be purchased under the program. There is no expiration date for the program. |
(2) | The number of shares shown represents, as of the end of each period, the maximum number of shares of common stock that may yet be purchased under publicly announced stock repurchase programs. The shares may be purchased, from time to time, depending on market conditions. |
- 35 - | ||
|
|
As of and For the Year Ended December 31
|
|
|||||||||||||||||
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|||||
|
|
(Dollars in Thousands, Except Per Share Data
|
|
|||||||||||||||||
Financial Condition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,137,148
|
|
|
$
|
2,046,948
|
|
|
$
|
2,068,190
|
|
|
$
|
2,035,517
|
|
|
$
|
2,057,523
|
|
Investment securities
|
|
|
198,557
|
|
|
|
194,609
|
|
|
|
233,580
|
|
|
|
166,091
|
|
|
|
139,378
|
|
Loans receivable, net
|
|
|
1,555,498
|
|
|
|
1,498,546
|
|
|
|
1,453,822
|
|
|
|
1,478,423
|
|
|
|
1,580,575
|
|
Allowance for loan losses
|
|
|
24,950
|
|
|
|
26,711
|
|
|
|
33,254
|
|
|
|
41,080
|
|
|
|
36,547
|
|
Nonperforming assets (1)
|
|
|
33,706
|
|
|
|
36,375
|
|
|
|
42,956
|
|
|
|
50,631
|
|
|
|
54,718
|
|
Deposits and borrowers’ escrow balances
|
|
|
1,737,311
|
|
|
|
1,668,945
|
|
|
|
1,597,643
|
|
|
|
1,576,356
|
|
|
|
1,580,891
|
|
FHLB advances
|
|
|
22,520
|
|
|
|
12,796
|
|
|
|
81,841
|
|
|
|
116,885
|
|
|
|
146,927
|
|
Stockholders’ equity
|
|
|
272,147
|
|
|
|
258,128
|
|
|
|
278,127
|
|
|
|
240,331
|
|
|
|
234,086
|
|
Share Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
2.28
|
|
|
|
1.86
|
|
|
|
1.44
|
|
|
|
0.75
|
|
|
|
0.64
|
|
Diluted earnings per share
|
|
|
2.19
|
|
|
|
1.81
|
|
|
|
1.42
|
|
|
|
0.75
|
|
|
|
0.63
|
|
Book value per common share
|
|
|
27.91
|
|
|
|
26.44
|
|
|
|
24.74
|
|
|
|
25.00
|
|
|
|
24.26
|
|
Tangible book value per common share
|
|
|
21.22
|
|
|
|
19.63
|
|
|
|
17.78
|
|
|
|
17.16
|
|
|
|
16.44
|
|
Cash dividends per common share
|
|
|
0.40
|
|
|
|
0.20
|
|
|
|
0.05
|
|
|
|
-
|
|
|
|
0.295
|
|
Dividend payout ratio
|
|
|
17.45
|
%
|
|
|
10.75
|
%
|
|
|
3.47
|
%
|
|
|
NM
|
|
|
|
46.09
|
%
|
Weighted average diluted shares outstanding
|
|
|
10,171
|
|
|
|
9,998
|
|
|
|
9,540
|
|
|
|
8,153
|
|
|
|
8,196
|
|
Shares outstanding end of period
|
|
|
9,720
|
|
|
|
9,729
|
|
|
|
9,726
|
|
|
|
8,118
|
|
|
|
8,118
|
|
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
74,781
|
|
|
$
|
80,943
|
|
|
$
|
87,067
|
|
|
$
|
95,865
|
|
|
$
|
100,579
|
|
Interest expense
|
|
|
7,170
|
|
|
|
11,937
|
|
|
|
17,186
|
|
|
|
25,702
|
|
|
|
33,257
|
|
Net interest income
|
|
|
67,611
|
|
|
|
69,006
|
|
|
|
69,881
|
|
|
|
70,163
|
|
|
|
67,322
|
|
Provision for loan losses
|
|
|
1,824
|
|
|
|
10,924
|
|
|
|
12,434
|
|
|
|
23,177
|
|
|
|
23,232
|
|
Non-interest income
|
|
|
30,570
|
|
|
|
34,374
|
|
|
|
27,516
|
|
|
|
27,590
|
|
|
|
26,295
|
|
Non-interest expense
|
|
|
64,844
|
|
|
|
65,780
|
|
|
|
62,764
|
|
|
|
63,463
|
|
|
|
60,524
|
|
Income before tax
|
|
|
31,513
|
|
|
|
26,676
|
|
|
|
22,199
|
|
|
|
11,113
|
|
|
|
9,861
|
|
Federal income tax
|
|
|
9,278
|
|
|
|
8,012
|
|
|
|
6,665
|
|
|
|
3,005
|
|
|
|
2,667
|
|
Net Income
|
|
|
22,235
|
|
|
|
18,664
|
|
|
|
15,534
|
|
|
|
8,108
|
|
|
|
7,194
|
|
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.08
|
%
|
|
|
0.90
|
%
|
|
|
0.75
|
%
|
|
|
0.39
|
%
|
|
|
0.36
|
%
|
Return on average equity
|
|
|
8.39
|
%
|
|
|
6.99
|
%
|
|
|
5.89
|
%
|
|
|
3.40
|
%
|
|
|
3.09
|
%
|
Interest rate spread (2)
|
|
|
3.65
|
%
|
|
|
3.64
|
%
|
|
|
3.69
|
%
|
|
|
3.68
|
%
|
|
|
3.50
|
%
|
Net interest margin (2)
|
|
|
3.76
|
%
|
|
|
3.81
|
%
|
|
|
3.88
|
%
|
|
|
3.89
|
%
|
|
|
3.76
|
%
|
Ratio of operating expense to
average total assets |
|
|
3.16
|
%
|
|
|
3.19
|
%
|
|
|
3.05
|
%
|
|
|
3.09
|
%
|
|
|
2.99
|
%
|
Efficiency ratio (3)
|
|
|
64.81
|
%
|
|
|
63.93
|
%
|
|
|
63.62
|
%
|
|
|
63.89
|
%
|
|
|
61.50
|
%
|
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets at end of period
|
|
|
12.73
|
%
|
|
|
12.61
|
%
|
|
|
13.45
|
%
|
|
|
11.81
|
%
|
|
|
11.38
|
%
|
Tangible common equity to tangible assets
at end of period |
|
|
9.94
|
%
|
|
|
9.64
|
%
|
|
|
8.65
|
%
|
|
|
7.06
|
%
|
|
|
6.69
|
%
|
Average equity to average assets
|
|
|
12.92
|
%
|
|
|
12.95
|
%
|
|
|
12.82
|
%
|
|
|
11.62
|
%
|
|
|
11.49
|
%
|
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets
at end of period (1) |
|
|
1.58
|
%
|
|
|
1.78
|
%
|
|
|
2.08
|
%
|
|
|
2.49
|
%
|
|
|
2.66
|
%
|
Allowance for loan losses to total
loans* |
|
|
1.58
|
%
|
|
|
1.75
|
%
|
|
|
2.24
|
%
|
|
|
2.70
|
%
|
|
|
2.26
|
%
|
Net charge-offs to average loans
|
|
|
0.23
|
%
|
|
|
1.18
|
%
|
|
|
1.41
|
%
|
|
|
1.21
|
%
|
|
|
0.70
|
%
|
(1) |
Nonperforming assets consist of non-accrual loans that are contractually past due 90 days or more and real estate, mobile homes and other assets acquired by foreclosure or deed-in-lieu thereof.
|
(2) |
Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate on interest-bearing liabilities. Net interest margin represents net interest income as a percentage of average interest-earning assets. Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35%.
|
(3) |
Efficiency ratio represents non-interest expense divided by the sum of tax-equivalent net interest income plus non-interest income, excluding securities gain or losses, net.
|
- 36 - | ||
· | Local, regional, national and international economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact. |
· | Volatility and disruption in national and international financial markets. |
· | Government intervention in the U.S. financial system. |
· | Changes in the level of non-performing assets and charge-offs. |
· | Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements. |
· | The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board. |
· | Inflation, interest rate, securities market and monetary fluctuations. |
· | Political instability. |
· | Acts of God or of war or terrorism. |
· | The timely development and acceptance of new products and services and perceived overall value of these products and services by users. |
· | Changes in consumer spending, borrowing and saving habits. |
· | Changes in the financial performance and/or condition of the Company’s borrowers. |
· | Technological changes including core system conversions. |
· | Acquisitions and integration of acquired businesses. |
· | The ability to increase market share and control expenses. |
· | Changes in the competitive environment among financial holding companies and other financial service providers. |
· | The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and the subsidiaries must comply. |
- 37 - | ||
· | The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters. |
· | The costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquiries and the results of regulatory examinations or reviews. |
· | Greater than expected costs or difficulties related to the integration of new products and lines of business. |
· | The Company’s success at managing the risks involved in the foregoing items. |
- 38 - | ||
- 39 - | ||
- 40 - | ||
- 41 - | ||
1) | Changes in international, national and local economic business conditions and developments, including the condition of various market segments. |
2) | Changes in the value of underlying collateral for collateral dependent loans. |
3) | Changes in the nature and volume in the loan portfolio. |
4) | The existence and effect of any concentrations of credit and changes in the level of such concentrations. |
5) | Changes in lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. |
6) | Changes in the quality and breadth of the loan review process. |
7) | Changes in the experience, ability and depth of lending management and staff. |
8) | Changes in the trends of the volume and severity of delinquent and classified loans, and changes in the volume of non-accrual loans, trouble debt restructuring, and other loan modifications. |
9) | Changes in the political and regulatory environment. |
- 42 - | ||
- 43 - | ||
|
|
For the Twelve Months Ended December 31, 2013
|
|
As of December 31, 2013
|
|
||||||
|
|
Net
|
|
% of Total Net
|
|
Nonaccrual
|
|
% of Total Non-
|
|
||
|
|
Charge-offs
|
|
Charge-offs
|
|
Loans
|
|
Accrual Loans
|
|
||
|
|
(in thousands)
|
|
|
|
|
(in thousands)
|
|
|
|
|
Residential
|
|
$
|
361
|
|
10.07
|
%
|
$
|
3,273
|
|
11.76
|
%
|
Construction
|
|
|
-
|
|
0.00
|
%
|
|
-
|
|
0.00
|
%
|
Commercial real estate
|
|
|
1,638
|
|
45.69
|
%
|
|
15,834
|
|
56.86
|
%
|
Commercial
|
|
|
940
|
|
26.22
|
%
|
|
8,327
|
|
29.90
|
%
|
Consumer finance
|
|
|
14
|
|
0.39
|
%
|
|
-
|
|
0.00
|
%
|
Home equity and improvement
|
|
|
632
|
|
17.63
|
%
|
|
413
|
|
1.48
|
%
|
Total
|
|
$
|
3,585
|
|
100.00
|
%
|
$
|
27,847
|
|
100.00
|
%
|
|
|
For the Twelve Months Ended December 31, 2012
|
|
As of December 31, 2012
|
|
||||||
|
|
Net
|
|
% of Total Net
|
|
Nonaccrual
|
|
% of Total Non-
|
|
||
|
|
Charge-offs
|
|
Charge-offs
|
|
Loans
|
|
Accrual Loans
|
|
||
|
|
|
(in thousands)
|
|
|
|
|
(in thousands)
|
|
|
|
Residential
|
|
$
|
2,338
|
|
13.38
|
%
|
$
|
3,602
|
|
11.06
|
%
|
Construction
|
|
|
-
|
|
0.00
|
%
|
|
-
|
|
0.00
|
%
|
Commercial real estate
|
|
|
10,302
|
|
58.98
|
%
|
|
23,090
|
|
70.89
|
%
|
Commercial
|
|
|
3,688
|
|
21.11
|
%
|
|
5,661
|
|
17.38
|
%
|
Consumer finance
|
|
|
69
|
|
0.40
|
%
|
|
-
|
|
0.00
|
%
|
Home equity and improvement
|
|
|
1,070
|
|
6.13
|
%
|
|
217
|
|
0.67
|
%
|
Total
|
|
$
|
17,467
|
|
100.00
|
%
|
$
|
32,570
|
|
100.00
|
%
|
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||
|
|
|
|
|
Percent of
|
|
|
|
|
Percent of
|
|
|
|
|
|
|
total loans
|
|
|
|
|
total loans
|
|
|
|
Amount
|
|
by category
|
|
Amount
|
|
by category
|
|
||
|
|
(dollars in thousands)
|
|
||||||||
Residential
|
|
$
|
2,847
|
|
12.13
|
%
|
$
|
3,506
|
|
13.00
|
%
|
Construction
|
|
|
134
|
|
5.33
|
%
|
|
75
|
|
2.45
|
%
|
Commercial real estate
|
|
|
14,508
|
|
50.80
|
%
|
|
14,899
|
|
51.63
|
%
|
Commercial
|
|
|
5,678
|
|
24.06
|
%
|
|
6,325
|
|
24.85
|
%
|
Consumer
|
|
|
148
|
|
1.05
|
%
|
|
147
|
|
1.03
|
%
|
Home equity and improvement
|
|
|
1,635
|
|
6.63
|
%
|
|
1,759
|
|
7.04
|
%
|
|
|
$
|
24,950
|
|
100.00
|
%
|
$
|
26,711
|
|
100.00
|
%
|
- 44 - | ||
- 45 - | ||
- 46 - | ||
- 47 - | ||
|
|
Year Ended December 31
|
|
||||||||||||||||||||||
|
|
(In Thousands)
|
|
||||||||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
||||||||||||||||||
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
||||||
|
|
Balance
|
|
(1)
|
|
Rate (2)
|
|
Balance
|
|
(1)
|
|
Rate
|
|
Balance
|
|
(1)
|
|
Rate
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
1,528,176
|
|
$
|
68,147
|
|
4.46
|
%
|
$
|
1,477,681
|
|
$
|
72,724
|
|
4.92
|
%
|
$
|
1,437,588
|
|
$
|
78,773
|
|
5.49
|
%
|
Securities
|
|
|
191,039
|
|
|
7,158
|
|
3.78
|
%
|
|
247,442
|
|
|
8,675
|
|
3.63
|
%
|
|
205,609
|
|
|
8,440
|
|
4.19
|
%
|
Interest-earning deposits
|
|
|
106,742
|
|
|
282
|
|
0.26
|
%
|
|
116,562
|
|
|
300
|
|
0.26
|
%
|
|
184,126
|
|
|
466
|
|
0.25
|
%
|
FHLB stock
|
|
|
19,505
|
|
|
826
|
|
4.23
|
%
|
|
20,655
|
|
|
899
|
|
4.35
|
%
|
|
20,831
|
|
|
867
|
|
4.17
|
%
|
Total interest-earning
assets |
|
|
1,845,462
|
|
|
76,413
|
|
4.14
|
%
|
|
1,862,340
|
|
|
82,598
|
|
4.44
|
%
|
|
1,848,154
|
|
|
88,546
|
|
4.80
|
%
|
Non-interest-earning
assets |
|
|
206,788
|
|
|
|
|
|
|
|
201,212
|
|
|
|
|
|
|
|
210,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,052,250
|
|
|
|
|
|
|
$
|
2,063,552
|
|
|
|
|
|
|
$
|
2,058,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
|
$
|
1,353,304
|
|
$
|
5,913
|
|
0.44
|
%
|
$
|
1,352,724
|
|
$
|
8,169
|
|
0.60
|
%
|
$
|
1,358,785
|
|
$
|
12,175
|
|
0.90
|
%
|
FHLB advances
|
|
|
17,733
|
|
|
434
|
|
2.45
|
%
|
|
66,121
|
|
|
2,424
|
|
3.67
|
%
|
|
93,669
|
|
|
3,203
|
|
3.43
|
%
|
Subordinated debentures
|
|
|
36,133
|
|
|
601
|
|
1.66
|
%
|
|
36,169
|
|
|
971
|
|
2.68
|
%
|
|
36,213
|
|
|
1,278
|
|
3.54
|
%
|
Other borrowings
|
|
|
50,877
|
|
|
222
|
|
0.44
|
%
|
|
53,155
|
|
|
373
|
|
0.70
|
%
|
|
56,464
|
|
|
530
|
|
0.94
|
%
|
Total interest-bearing
liabilities |
|
|
1,458,047
|
|
|
7,170
|
|
0.49
|
%
|
|
1,508,169
|
|
|
11,937
|
|
0.79
|
%
|
|
1,545,131
|
|
|
17,186
|
|
1.12
|
%
|
Non-interest bearing
demand deposits |
|
|
308,591
|
|
|
-
|
|
|
|
|
266,913
|
|
|
-
|
|
|
|
|
231,343
|
|
|
-
|
|
|
|
Total including non-
interest- bearing demand deposits |
|
|
1,766,638
|
|
|
7,170
|
|
0.41
|
%
|
|
1,775,082
|
|
|
11,937
|
|
0.67
|
%
|
|
1,776,474
|
|
|
17,186
|
|
0.97
|
%
|
Other non-interest
liabilities |
|
|
20,547
|
|
|
|
|
|
|
|
21,276
|
|
|
|
|
|
|
|
17,983
|
|
|
|
|
|
|
Total Liabilities
|
|
|
1,787,185
|
|
|
|
|
|
|
|
1,796,358
|
|
|
|
|
|
|
|
1,794,457
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
265,065
|
|
|
|
|
|
|
|
267,194
|
|
|
|
|
|
|
|
263,913
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$
|
2,052,250
|
|
|
|
|
|
|
$
|
2,063,552
|
|
|
|
|
|
|
$
|
2,058,370
|
|
|
|
|
|
|
Net interest income;
interest rate spread (3) |
|
|
|
|
$
|
69,243
|
|
3.65
|
%
|
|
|
|
$
|
70,661
|
|
3.64
|
%
|
|
|
|
$
|
71,360
|
|
3.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (4)
|
|
|
|
|
|
|
|
3.76
|
%
|
|
|
|
|
|
|
3.81
|
%
|
|
|
|
|
|
|
3.88
|
%
|
Average interest-earning
assets to average interest- bearing liabilities |
|
|
|
|
|
|
|
126.6
|
%
|
|
|
|
|
|
|
123.5
|
%
|
|
|
|
|
|
|
119.6
|
%
|
(3) | Interest rate spread is the difference in the yield on interest-earning assets and the cost of interest-bearing liabilities. |
|
(4)
|
Net interest margin is net interest income divided by average interest-earning assets.
|
- 48 - | ||
|
|
Year Ended December 31
|
|
||||||||||||||||
|
|
2013 vs. 2012
|
|
2012 vs. 2011
|
|
||||||||||||||
|
|
Increase
|
|
Increase
|
|
|
|
Increase
|
|
Increase
|
|
|
|
||||||
|
|
(decrease)
|
|
(decrease)
|
|
Total
|
|
(decrease)
|
|
(decrease)
|
|
Total
|
|
||||||
|
|
due to
|
|
due to
|
|
increase
|
|
due to
|
|
due to
|
|
increase
|
|
||||||
|
|
rate
|
|
volume
|
|
(decrease)
|
|
rate
|
|
volume
|
|
(decrease)
|
|
||||||
Interest-Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
(7,000)
|
|
$
|
2,423
|
|
$
|
(4,577)
|
|
$
|
(8,198)
|
|
$
|
2,149
|
|
$
|
(6,049)
|
|
Securities
|
|
|
565
|
|
|
(2,082)
|
|
|
(1,517)
|
|
|
(1,336)
|
|
|
1,571
|
|
|
235
|
|
Interest-earning deposits
|
|
|
8
|
|
|
(26)
|
|
|
(18)
|
|
|
8
|
|
|
(174)
|
|
|
(166)
|
|
FHLB stock
|
|
|
(24)
|
|
|
(49)
|
|
|
(73)
|
|
|
39
|
|
|
(7)
|
|
|
32
|
|
Total interest-earning
assets |
|
$
|
(6,451)
|
|
$
|
266
|
|
$
|
(6,185)
|
|
$
|
(9,487)
|
|
$
|
3,539
|
|
$
|
(5,948)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
(2,260)
|
|
$
|
4
|
|
$
|
(2,256)
|
|
$
|
(3,952)
|
|
$
|
(54)
|
|
$
|
(4,006)
|
|
FHLB advances
|
|
|
(620)
|
|
|
(1,370)
|
|
|
(1,990)
|
|
|
218
|
|
|
(997)
|
|
|
(779)
|
|
Subordinated Debentures
|
|
|
(369)
|
|
|
(1)
|
|
|
(370)
|
|
|
(305)
|
|
|
(2)
|
|
|
(307)
|
|
Notes Payable
|
|
|
(135)
|
|
|
(16)
|
|
|
(151)
|
|
|
(127)
|
|
|
(30)
|
|
|
(157)
|
|
Total interest- bearing
liabilities |
|
$
|
(3,384)
|
|
$
|
(1,383)
|
|
$
|
(4,767)
|
|
$
|
(4,166)
|
|
$
|
(1,083)
|
|
$
|
(5,249)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
net interest income |
|
|
|
|
|
|
|
$
|
(1,418)
|
|
|
|
|
|
|
|
$
|
(699)
|
|
- 49 - | ||
- 50 - | ||
- 51 - | ||
- 52 - | ||
|
|
Maturity Dates by Period at December 31, 2013
|
|
|||||||||||||
|
|
|
|
Less than
|
|
|
|
|
|
After 5
|
|
|||||
Contractual Obligations
|
|
Total
|
|
1 year
|
|
1-3 years
|
|
4-5 years
|
|
years
|
|
|||||
|
|
(In Thousands)
|
|
|||||||||||||
Certificates of deposit
|
|
$
|
485,789
|
|
$
|
296,186
|
|
$
|
138,843
|
|
$
|
50,611
|
|
$
|
149
|
|
FHLB fixed advances including interest (1)
|
|
|
23,935
|
|
|
1,502
|
|
|
10,156
|
|
|
12,277
|
|
|
-
|
|
Subordinated debentures
|
|
|
36,083
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
36,083
|
|
Securities sold under repurchase agreements
|
|
|
51,919
|
|
|
51,919
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Lease obligations
|
|
|
7,648
|
|
|
706
|
|
|
1,214
|
|
|
983
|
|
|
4,745
|
|
Post-retirement benefits
|
|
|
1,605
|
|
|
140
|
|
|
260
|
|
|
313
|
|
|
892
|
|
Total contractual obligations
|
|
$
|
606,979
|
|
$
|
350,453
|
|
$
|
150,473
|
|
$
|
64,184
|
|
$
|
41,869
|
|
- 53 - | ||
|
|
Total
|
|
Amount of Commitment Expiration by Period
|
|
|||||||||||
|
|
Amounts
|
|
Less than
|
|
|
|
|
|
After 5
|
|
|||||
Commitments
|
|
Committed
|
|
1 year
|
|
1-3 years
|
|
4-5 years
|
|
years
|
|
|||||
|
|
(In Thousands)
|
|
|||||||||||||
Fixed commitments to make loans
|
|
$
|
57,914
|
|
$
|
48,866
|
|
$
|
1,630
|
|
$
|
2,537
|
|
$
|
4,881
|
|
Variable commitments to make loans
|
|
|
59,632
|
|
|
39,120
|
|
|
3,095
|
|
|
438
|
|
|
16,979
|
|
Fixed unused lines of credit
|
|
|
18,047
|
|
|
6,746
|
|
|
5,648
|
|
|
5,651
|
|
|
2
|
|
Variable unused lines of credit
|
|
|
257,939
|
|
|
161,093
|
|
|
33,357
|
|
|
13,362
|
|
|
50,127
|
|
Total loan commitments
|
|
|
393,532
|
|
|
255,825
|
|
|
43,730
|
|
|
21,988
|
|
|
71,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standby letters of credit
|
|
|
17,680
|
|
|
3,490
|
|
|
13,750
|
|
|
440
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commitments
|
|
$
|
411,212
|
|
$
|
259,315
|
|
$
|
57,480
|
|
$
|
22,428
|
|
$
|
71,989
|
|
- 54 - | ||
- 55 - | ||
- 56 - | ||
- 57 - | ||
December 31, 2013
|
|
|||||||||||
|
|
|
|
|
|
|
|
Economic Value of Equity as % of
|
|
|||
|
|
Economic Value of Equity
|
|
Present Value of Assets
|
|
|||||||
Change in Rates
|
|
$ Amount
|
|
$ Change
|
|
% Change
|
|
Ratio
|
|
|
Change
|
|
|
|
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
||
+ 400 bp
|
|
474,469
|
|
41,679
|
|
9.63
|
%
|
23.83
|
%
|
|
350 bp
|
|
+ 300 bp
|
|
467,691
|
|
34,901
|
|
8.06
|
%
|
23.10
|
%
|
|
277 bp
|
|
+ 200 bp
|
|
458,844
|
|
26,054
|
|
6.02
|
%
|
22.28
|
%
|
|
195 bp
|
|
+ 100 bp
|
|
447,701
|
|
14,911
|
|
3.45
|
%
|
21.38
|
%
|
|
105 bp
|
|
0 bp
|
|
432,790
|
|
-
|
|
-
|
|
20.33
|
%
|
|
|
|
- 100 bp
|
|
413,917
|
|
(18,873)
|
|
(4.36)
|
%
|
19.19
|
%
|
|
(114) bp
|
|
December 31, 2012
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
Economic Value of Equity as % of
|
|
|||
|
|
Economic Value of Equity
|
|
Present Value of Assets
|
|
||||||||
Change in Rates
|
|
$ Amount
|
|
$ Change
|
|
% Change
|
|
Ratio
|
|
|
Change
|
|
|
|
|
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|||
+ 400 bp
|
|
|
415,094
|
|
46,835
|
|
12.72
|
%
|
21.49
|
%
|
|
356 bp
|
|
+ 300 bp
|
|
|
407,337
|
|
39,078
|
|
10.61
|
%
|
20.76
|
%
|
|
283 bp
|
|
+ 200 bp
|
|
|
398,150
|
|
29,891
|
|
8.12
|
%
|
19.97
|
%
|
|
204 bp
|
|
+ 100 bp
|
|
|
387,482
|
|
19,223
|
|
5.22
|
%
|
19.12
|
%
|
|
119 bp
|
|
0 bp
|
|
|
368,259
|
|
-
|
|
-
|
|
17.93
|
%
|
|
|
|
- 100 bp
|
|
|
343,745
|
|
(24,514)
|
|
(6.66)
|
%
|
16.57
|
%
|
|
(136) bp
|
|
- 58 - | ||
|
|
Donald P. Hileman
|
Kevin T. Thompson
|
Executive Vice President and
|
Executive Vice President and
|
Chief Executive Officer
|
Chief Financial Officer
|
- 59 - | ||
- 60 - | ||
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands, except share
and per share data) |
|
||||
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
|
Cash and amounts due from depository institutions
|
|
$
|
36,318
|
|
$
|
45,832
|
|
Federal funds sold
|
|
|
143,000
|
|
|
91,000
|
|
|
|
|
179,318
|
|
|
136,832
|
|
|
|
|
|
|
|
|
|
Securities available-for-sale, carried at fair value
|
|
|
198,170
|
|
|
194,101
|
|
Securities held-to-maturity, carried at amortized cost (fair value $393 and $516
at December 31, 2013 and 2012 respectively) |
|
|
387
|
|
|
508
|
|
|
|
|
198,557
|
|
|
194,609
|
|
Loans held for sale
|
|
|
9,120
|
|
|
22,064
|
|
Loans receivable, net of allowance of $24,950 and $26,711 at December 31,
2013 and 2012, respectively |
|
|
1,555,498
|
|
|
1,498,546
|
|
Mortgage servicing rights
|
|
|
9,106
|
|
|
7,833
|
|
Accrued interest receivable
|
|
|
5,778
|
|
|
5,594
|
|
Federal Home Loan Bank (FHLB) stock
|
|
|
19,350
|
|
|
20,655
|
|
Bank owned life insurance
|
|
|
42,715
|
|
|
41,832
|
|
Premises and equipment
|
|
|
38,597
|
|
|
39,663
|
|
Real estate and other assets held for sale (REO)
|
|
|
5,859
|
|
|
3,805
|
|
Goodwill
|
|
|
61,525
|
|
|
61,525
|
|
Core deposit and other intangibles
|
|
|
3,497
|
|
|
4,738
|
|
Deferred taxes
|
|
|
565
|
|
|
78
|
|
Other assets
|
|
|
7,663
|
|
|
9,174
|
|
Total assets
|
|
$
|
2,137,148
|
|
$
|
2,046,948
|
|
- 61 - | ||
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands, except share
and per share data) |
|
||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
348,943
|
|
$
|
315,132
|
|
Interest-bearing
|
|
|
1,386,849
|
|
|
1,352,340
|
|
Total
|
|
|
1,735,792
|
|
|
1,667,472
|
|
Advances from the Federal Home Loan Bank
|
|
|
22,520
|
|
|
12,796
|
|
Securities sold under agreements to repurchase and other
|
|
|
51,919
|
|
|
51,702
|
|
Subordinated debentures
|
|
|
36,083
|
|
|
36,083
|
|
Advance payments by borrowers
|
|
|
1,519
|
|
|
1,473
|
|
Other liabilities
|
|
|
17,168
|
|
|
19,294
|
|
Total liabilities
|
|
|
1,865,001
|
|
|
1,788,820
|
|
|
|
|
|
|
|
|
|
Commitments and Contingent (Note 6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value per share: 37,000 shares authorized;
no shares issued |
|
|
|
|
|
|
|
Preferred stock, $.01 par value per share:
4,963,000 shares authorized; no shares issued |
|
|
|
|
|
|
|
Common stock, $.01 par value per share:
25,000,000 shares authorized; 12,735,313 and 12,739,496 shares issued and 9,719,521 and 9,729,466 shares outstanding, respectively |
|
|
127
|
|
|
127
|
|
Common stock warrant
|
|
|
878
|
|
|
878
|
|
Additional paid-in capital
|
|
|
136,403
|
|
|
136,046
|
|
Accumulated other comprehensive income, net of tax of $294 and $2,301,
respectively |
|
|
545
|
|
|
4,274
|
|
Retained earnings
|
|
|
182,290
|
|
|
164,103
|
|
Treasury stock, at cost, 3,015,792 and 3,010,030 shares respectively
|
|
|
(48,096)
|
|
|
(47,300)
|
|
Total stockholders’ equity
|
|
|
272,147
|
|
|
258,128
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
2,137,148
|
|
$
|
2,046,948
|
|
- 62 - | ||
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Interest Income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
68,077
|
|
$
|
72,621
|
|
$
|
78,648
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
2,695
|
|
|
4,241
|
|
|
4,571
|
|
Tax-exempt
|
|
|
2,901
|
|
|
2,882
|
|
|
2,515
|
|
Interest-bearing deposits
|
|
|
282
|
|
|
300
|
|
|
466
|
|
FHLB stock dividends
|
|
|
826
|
|
|
899
|
|
|
867
|
|
Total interest income
|
|
|
74,781
|
|
|
80,943
|
|
|
87,067
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
5,913
|
|
|
8,169
|
|
|
12,175
|
|
Federal Home Loan Bank advances and other
|
|
|
434
|
|
|
2,424
|
|
|
3,203
|
|
Subordinated debentures
|
|
|
601
|
|
|
971
|
|
|
1,278
|
|
Securities sold under agreement to repurchase
|
|
|
222
|
|
|
373
|
|
|
530
|
|
Total interest expense
|
|
|
7,170
|
|
|
11,937
|
|
|
17,186
|
|
Net interest income
|
|
|
67,611
|
|
|
69,006
|
|
|
69,881
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
1,824
|
|
|
10,924
|
|
|
12,434
|
|
Net interest income after provision for loan losses
|
|
|
65,787
|
|
|
58,082
|
|
|
57,447
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
Service fees and other charges
|
|
|
10,045
|
|
|
10,779
|
|
|
11,387
|
|
Mortgage banking income
|
|
|
8,443
|
|
|
9,665
|
|
|
6,437
|
|
Insurance commissions
|
|
|
9,627
|
|
|
8,676
|
|
|
7,109
|
|
Gain on sale of non-mortgage loans
|
|
|
101
|
|
|
70
|
|
|
361
|
|
Gain (loss) on sale or call of securities
|
|
|
97
|
|
|
2,139
|
|
|
218
|
|
Other-than-temporary impairment (OTTI) losses on investment securities
|
|
|
|
|
|
|
|
|
|
|
Total gains (impairment losses) on investment securities
|
|
|
(337)
|
|
|
(31)
|
|
|
(44)
|
|
Losses recognized in other comprehensive income
|
|
|
-
|
|
|
26
|
|
|
42
|
|
Net impairment loss recognized in earnings
|
|
|
(337)
|
|
|
(5)
|
|
|
(2)
|
|
Trust income
|
|
|
761
|
|
|
616
|
|
|
599
|
|
Income from bank owned life insurance
|
|
|
883
|
|
|
924
|
|
|
929
|
|
Other noninterest income
|
|
|
950
|
|
|
1,510
|
|
|
478
|
|
Total noninterest income
|
|
|
30,570
|
|
|
34,374
|
|
|
27,516
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
34,301
|
|
|
32,566
|
|
|
31,554
|
|
Occupancy
|
|
|
6,762
|
|
|
7,578
|
|
|
7,166
|
|
FDIC insurance
|
|
|
1,616
|
|
|
2,691
|
|
|
2,922
|
|
Data processing
|
|
|
5,125
|
|
|
4,660
|
|
|
4,257
|
|
Acquisition related charges
|
|
|
-
|
|
|
-
|
|
|
234
|
|
Other noninterest expense
|
|
|
17,040
|
|
|
18,285
|
|
|
16,631
|
|
Total noninterest expense
|
|
|
64,844
|
|
|
65,780
|
|
|
62,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
31,513
|
|
|
26,676
|
|
|
22,199
|
|
Federal income taxes
|
|
|
9,278
|
|
|
8,012
|
|
|
6,665
|
|
Net Income
|
|
$
|
22,235
|
|
$
|
18,664
|
|
$
|
15,534
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Accrued on Preferred Shares
|
|
$
|
-
|
|
$
|
(900)
|
|
$
|
(1,850)
|
|
Accretion on Preferred Shares
|
|
$
|
-
|
|
$
|
(359)
|
|
$
|
(178)
|
|
Redemption of Preferred Shares
|
|
$
|
-
|
|
$
|
642
|
|
$
|
-
|
|
Net Income Applicable to Common Shares
|
|
$
|
22,235
|
|
$
|
18,047
|
|
$
|
13,506
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.28
|
|
$
|
1.86
|
|
$
|
1.44
|
|
Diluted
|
|
$
|
2.19
|
|
$
|
1.81
|
|
$
|
1.42
|
|
Dividends declared per common share
|
|
$
|
0.40
|
|
$
|
0.20
|
|
$
|
0.05
|
|
- 63 - | ||
|
|
For the Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Net income
|
|
$
|
22,235
|
|
$
|
18,664
|
|
$
|
15,534
|
|
Change in securities available-for-sale (AFS):
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains (losses) on available-for-sale securities arising during the period
|
|
|
(6,309)
|
|
|
2,360
|
|
|
7,404
|
|
Reclassification adjustment for (gains) losses realized in income
|
|
|
(97)
|
|
|
(2,139)
|
|
|
(218)
|
|
Other-than-temporary impairment losses on AFS securities realized in income
|
|
|
337
|
|
|
5
|
|
|
2
|
|
Net unrealized gains (losses)
|
|
|
(6,069)
|
|
|
226
|
|
|
7,188
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect
|
|
|
2,124
|
|
|
(79)
|
|
|
(2,516)
|
|
Net of tax amount
|
|
|
(3,945)
|
|
|
147
|
|
|
4,672
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized gain on postretirement benefit:
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on defined benefit postretirement medical plan
realized during the period |
|
|
287
|
|
|
148
|
|
|
(537)
|
|
Net amortization and deferral
|
|
|
46
|
|
|
51
|
|
|
25
|
|
Net gain (loss) activity during the period
|
|
|
333
|
|
|
199
|
|
|
(512)
|
|
Income tax effect
|
|
|
(117)
|
|
|
(69)
|
|
|
179
|
|
Net of tax amount
|
|
|
216
|
|
|
130
|
|
|
(333)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss)
|
|
|
(3,729)
|
|
|
277
|
|
|
4,339
|
|
Comprehensive income
|
|
$
|
18,506
|
|
$
|
18,941
|
|
$
|
19,873
|
|
- 64 - | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
Additional
|
|
Other
|
|
|
|
|
|
|
|
Total
|
|
||||
|
|
Preferred
|
|
Common
|
|
Stock
|
|
Paid-In
|
|
Comprehensive
|
|
Retained
|
|
Treasury
|
|
Stockholder’s
|
|
||||||||
|
|
Stock
|
|
Stock
|
|
Warrant
|
|
Capital
|
|
Income (Loss)
|
|
Earnings
|
|
Stock
|
|
Equity
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2010
|
|
$
|
36,463
|
|
$
|
127
|
|
$
|
878
|
|
$
|
140,845
|
|
$
|
(342)
|
|
$
|
134,988
|
|
$
|
(72,628)
|
|
$
|
240,331
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,534
|
|
|
|
|
|
15,534
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,339
|
|
|
|
|
|
|
|
|
4,339
|
|
Stock option expense
|
|
|
|
|
|
|
|
|
|
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
144
|
|
850 stock options exercised,
with no income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
14
|
|
|
11
|
|
1,600,800 shares issued capital stock
|
|
|
|
|
|
|
|
|
|
|
|
(5,297)
|
|
|
|
|
|
|
|
|
25,156
|
|
|
19,859
|
|
Restricted share activity under
stock incentive plans |
|
|
|
|
|
|
|
|
|
|
|
136
|
|
|
|
|
|
|
|
|
75
|
|
|
211
|
|
2,085 shares issued direct
purchases |
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
32
|
|
|
29
|
|
Preferred stock dividends
accrued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,850)
|
|
|
|
|
|
(1,850)
|
|
Accretion on preferred shares
|
|
|
178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(178)
|
|
|
|
|
|
-
|
|
Common stock dividends
declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(481)
|
|
|
|
|
|
(481)
|
|
Balance at December 31, 2011
|
|
$
|
36,641
|
|
$
|
127
|
|
$
|
878
|
|
$
|
135,825
|
|
$
|
3,997
|
|
$
|
148,010
|
|
$
|
(47,351)
|
|
$
|
278,127
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,664
|
|
|
|
|
|
18,664
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
277
|
|
|
|
|
|
|
|
|
277
|
|
Stock option expense
|
|
|
|
|
|
|
|
|
|
|
|
104
|
|
|
|
|
|
|
|
|
|
|
|
104
|
|
500 shares issued under stock
option plan, with no income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
8
|
|
|
4
|
|
Restricted share activity under
stock incentive Plans |
|
|
|
|
|
|
|
|
|
|
|
116
|
|
|
|
|
|
|
|
|
30
|
|
|
146
|
|
836 shares issued direct
purchases |
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
13
|
|
|
14
|
|
Preferred stock dividends
accrued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(900)
|
|
|
|
|
|
(900)
|
|
Accretion on preferred shares
|
|
|
359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(359)
|
|
|
|
|
|
-
|
|
16,560 shares purchased in
Treasury auction |
|
|
(16,560)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
618
|
|
|
|
|
|
(15,942)
|
|
20,440 shares purchased in open
market |
|
|
(20,440)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
(20,416)
|
|
Common stock dividends
declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,950)
|
|
|
|
|
|
(1,950)
|
|
Balance at December 31, 2012
|
|
$
|
-
|
|
$
|
127
|
|
$
|
878
|
|
$
|
136,046
|
|
$
|
4,274
|
|
$
|
164,103
|
|
$
|
(47,300)
|
|
$
|
258,128
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,235
|
|
|
|
|
|
22,235
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,729)
|
|
|
|
|
|
|
|
|
(3,729)
|
|
Stock option expense
|
|
|
|
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
44
|
|
35,147 shares issued under stock
option plan, with $54 in income tax benefit |
|
|
|
|
|
|
|
|
|
|
|
(34)
|
|
|
|
|
|
(97)
|
|
|
481
|
|
|
350
|
|
Restricted share activity under
stock incentive Plans |
|
|
|
|
|
|
|
|
|
|
|
327
|
|
|
|
|
|
(44)
|
|
|
500
|
|
|
783
|
|
2,768 shares issued direct
purchases |
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
|
44
|
|
|
64
|
|
70,966 shares repurchased
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,821)
|
|
|
(1,821)
|
|
Common stock dividends
declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,907)
|
|
|
|
|
|
(3,907)
|
|
Balance at December 31, 2013
|
|
$
|
-
|
|
$
|
127
|
|
$
|
878
|
|
$
|
136,403
|
|
$
|
545
|
|
$
|
182,290
|
|
$
|
(48,096)
|
|
$
|
272,147
|
|
- 65 - | ||
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
22,235
|
|
$
|
18,664
|
|
$
|
15,534
|
|
Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
1,824
|
|
|
10,924
|
|
|
12,434
|
|
Provision for depreciation
|
|
|
3,110
|
|
|
3,416
|
|
|
3,436
|
|
Net amortization of premium and discounts on loans, securities, deposits
and debt obligations |
|
|
1,235
|
|
|
1,497
|
|
|
396
|
|
Amortization of mortgage servicing rights
|
|
|
2,098
|
|
|
3,562
|
|
|
2,169
|
|
Net (recovery) impairment of mortgage servicing rights
|
|
|
(1,261)
|
|
|
759
|
|
|
404
|
|
Amortization of intangibles
|
|
|
1,241
|
|
|
1,413
|
|
|
1,442
|
|
Gain on sale of loans
|
|
|
(5,817)
|
|
|
(10,669)
|
|
|
(5,968)
|
|
Loss on sale or disposals of property, plant and equipment
|
|
|
1
|
|
|
179
|
|
|
59
|
|
Loss on sale or write-down of REO
|
|
|
883
|
|
|
427
|
|
|
947
|
|
OTTI losses on investment securities
|
|
|
337
|
|
|
5
|
|
|
2
|
|
(Gain) loss on sale or call of securities
|
|
|
(97)
|
|
|
(2,139)
|
|
|
(218)
|
|
Change in deferred taxes
|
|
|
1,519
|
|
|
779
|
|
|
2,839
|
|
Proceeds from sale of loans held for sale
|
|
|
308,260
|
|
|
520,376
|
|
|
263,336
|
|
Stock option expense
|
|
|
44
|
|
|
104
|
|
|
144
|
|
Restricted stock unit expense
|
|
|
783
|
|
|
146
|
|
|
211
|
|
Origination of loans held for sale
|
|
|
(294,941)
|
|
|
(521,464)
|
|
|
(262,825)
|
|
Income from bank owned life insurance
|
|
|
(883)
|
|
|
(924)
|
|
|
(929)
|
|
Change in interest receivable and other assets
|
|
|
1,327
|
|
|
17
|
|
|
2,961
|
|
Change in accrued interest and other liabilities
|
|
|
(2,535)
|
|
|
4,838
|
|
|
2,365
|
|
Net cash provided by operating activities
|
|
|
39,363
|
|
|
31,910
|
|
|
38,739
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Proceeds from maturities, calls and paydowns of held-to-maturity securities
|
|
|
121
|
|
|
152
|
|
|
178
|
|
Proceeds from maturities, calls and paydowns of available-for-sale
securities |
|
|
35,072
|
|
|
60,057
|
|
|
52,097
|
|
Proceeds from sale of available-for-sale securities
|
|
|
4,027
|
|
|
72,262
|
|
|
8,719
|
|
Proceeds from sale of REO
|
|
|
2,899
|
|
|
3,444
|
|
|
9,630
|
|
Proceeds from sale of office properties and equipment
|
|
|
-
|
|
|
10
|
|
|
17
|
|
Purchases of available-for-sale securities
|
|
|
(49,230)
|
|
|
(91,513)
|
|
|
(120,499)
|
|
Purchases of office properties and equipment
|
|
|
(2,045)
|
|
|
(3,223)
|
|
|
(2,041)
|
|
Investment in bank owned life insurance
|
|
|
-
|
|
|
(5,000)
|
|
|
-
|
|
Proceeds from FHLB stock redemption
|
|
|
1,305
|
|
|
-
|
|
|
357
|
|
Net cash paid in Payak-Dubbs acquisition
|
|
|
-
|
|
|
-
|
|
|
(3,914)
|
|
Purchase of portfolio mortgage loans
|
|
|
(4,545)
|
|
|
-
|
|
|
(25,842)
|
|
Proceeds from sale of non-mortgage loans
|
|
|
13,369
|
|
|
4,644
|
|
|
9,212
|
|
Net decrease (increase) in loans receivable
|
|
|
(70,845)
|
|
|
(65,005)
|
|
|
31,137
|
|
Net cash provided by (used) in investing activities
|
|
|
(69,872)
|
|
|
(24,172)
|
|
|
(40,949)
|
|
- 66 - | ||
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in deposits
|
|
|
68,368
|
|
|
71,318
|
|
|
21,314
|
|
Repayment of Federal Home Loan Bank long-term advances
|
|
|
(276)
|
|
|
(69,045)
|
|
|
(35,044)
|
|
Proceeds from Federal Home Loan Bank long-term advances
|
|
|
10,000
|
|
|
-
|
|
|
-
|
|
Cash paid for redemption of preferred stock
|
|
|
-
|
|
|
(36,358)
|
|
|
-
|
|
Increase (decrease) in securities sold under repurchase agreements
|
|
|
217
|
|
|
(8,684)
|
|
|
4,139
|
|
Cash dividends paid on common stock
|
|
|
(3,907)
|
|
|
(1,950)
|
|
|
(481)
|
|
Cash dividends paid on preferred stock
|
|
|
-
|
|
|
(1,136)
|
|
|
(1,850)
|
|
Net cash received from common stock issuance
|
|
|
-
|
|
|
-
|
|
|
19,859
|
|
Net cash paid for repurchase of common stock
|
|
|
(1,821)
|
|
|
-
|
|
|
-
|
|
Proceeds from exercise of stock options
|
|
|
350
|
|
|
4
|
|
|
11
|
|
Proceeds from treasury stock sales
|
|
|
64
|
|
|
14
|
|
|
29
|
|
Net cash (used) provided by financing activities
|
|
|
72,995
|
|
|
(45,837)
|
|
|
7,977
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
42,486
|
|
|
(38,099)
|
|
|
5,767
|
|
Cash and cash equivalents at beginning of period
|
|
|
136,832
|
|
|
174,931
|
|
|
169,164
|
|
Cash and cash equivalents at end of period
|
|
$
|
179,318
|
|
$
|
136,832
|
|
$
|
174,931
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
7,179
|
|
$
|
12,251
|
|
$
|
17,464
|
|
Income taxes paid
|
|
$
|
10,500
|
|
$
|
4,000
|
|
$
|
4,875
|
|
Transfers from loans to other real estate owned and other assets held for sale
|
|
$
|
5,836
|
|
$
|
4,048
|
|
$
|
4,614
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from loans held for sale to loans
|
|
$
|
3,231
|
|
$
|
-
|
|
$
|
7,596
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities traded but not yet settled
|
|
$
|
742
|
|
$
|
405
|
|
$
|
-
|
|
- 67 - | ||
- 68 - | ||
- 69 - | ||
- 70 - | ||
- 71 - | ||
- 72 - | ||
- 73 - | ||
Buildings and improvements
|
20 to 50 years
|
Furniture, fixtures and equipment
|
3 to 15 years
|
- 74 - | ||
- 75 - | ||
- 76 - | ||
|
|
2013
|
|
2012
|
|
|
2011
|
|
||
|
|
(In Thousands, Except Per Share Amounts)
|
|
|||||||
Numerator for basic and diluted earnings per
common share-net income applicable to common shares |
|
$
|
22,235
|
|
$
|
18,047
|
|
$
|
13,506
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
Denominator for basic earnings per common
share-weighted-average common shares, including participating securities |
|
|
9,764
|
|
|
9,728
|
|
|
9,371
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
Employee stock options
|
|
|
87
|
|
|
51
|
|
|
15
|
|
Warrants
|
|
|
320
|
|
|
219
|
|
|
154
|
|
Dilutive potential common shares
|
|
|
407
|
|
|
270
|
|
|
169
|
|
Denominator for diluted earnings per common share
|
|
|
10,171
|
|
|
9,998
|
|
|
9,540
|
|
Basic earnings per common share
|
|
$
|
2.28
|
|
$
|
1.86
|
|
$
|
1.44
|
|
Diluted earnings per common share
|
|
$
|
2.19
|
|
$
|
1.81
|
|
$
|
1.42
|
|
- 77 - | ||
|
|
|
|
|
Gross
|
|
Gross
|
|
|
|
|
||
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of U.S. government corporations and
agencies |
|
$
|
5,000
|
|
$
|
-
|
|
$
|
(79)
|
|
$
|
4,921
|
|
Mortgage-backed securities - residential
|
|
|
41,368
|
|
|
765
|
|
|
(841)
|
|
|
41,292
|
|
Collateralized mortgage obligations
|
|
|
59,865
|
|
|
739
|
|
|
(763)
|
|
|
59,841
|
|
Trust preferred stock and preferred stock
|
|
|
3,264
|
|
|
683
|
|
|
(993)
|
|
|
2,954
|
|
Corporate bonds
|
|
|
8,854
|
|
|
129
|
|
|
(41)
|
|
|
8,942
|
|
Obligations of state and political subdivisions
|
|
|
78,426
|
|
|
2,704
|
|
|
(910)
|
|
|
80,220
|
|
Total Available-for-Sale
|
|
$
|
196,777
|
|
$
|
5,020
|
|
$
|
(3,627)
|
|
$
|
198,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
|
|
||
|
|
Amortized
|
|
Unrecognized
|
|
Unrecognized
|
|
Fair
|
|
||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||
Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLMC certificates
|
|
$
|
31
|
|
$
|
-
|
|
$
|
-
|
|
$
|
31
|
|
FNMA certificates
|
|
|
120
|
|
|
4
|
|
|
-
|
|
|
124
|
|
GNMA certificates
|
|
|
50
|
|
|
2
|
|
|
-
|
|
|
52
|
|
Obligations of states and political
subdivisions |
|
|
186
|
|
|
-
|
|
|
-
|
|
|
186
|
|
Total Held-to-Maturity
|
|
$
|
387
|
|
$
|
6
|
|
$
|
-
|
|
$
|
393
|
|
|
|
|
|
|
Gross
|
|
Gross
|
|
|
|
|
||
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair
|
|
||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||
|
|
(In Thousands)
|
|
||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of U.S. government corporations and
agencies |
|
$
|
11,000
|
|
$
|
69
|
|
$
|
-
|
|
$
|
11,069
|
|
U.S. treasury bonds
|
|
|
1,000
|
|
|
2
|
|
|
-
|
|
|
1,002
|
|
Mortgage-backed securities - residential
|
|
|
30,020
|
|
|
1,441
|
|
|
-
|
|
|
31,461
|
|
Collateralized mortgage obligations
|
|
|
55,962
|
|
|
1,504
|
|
|
-
|
|
|
57,466
|
|
Trust preferred stock and preferred stock
|
|
|
3,600
|
|
|
99
|
|
|
(2,091)
|
|
|
1,608
|
|
Corporate bonds
|
|
|
8,717
|
|
|
167
|
|
|
-
|
|
|
8,884
|
|
Obligations of state and political subdivisions
|
|
|
76,339
|
|
|
6,277
|
|
|
(5)
|
|
|
82,611
|
|
Total Available-for-Sale
|
|
$
|
186,638
|
|
$
|
9,559
|
|
$
|
(2,096)
|
|
$
|
194,101
|
|
- 78 - | ||
|
|
|
|
|
Gross
|
|
Gross
|
|
|
|
|
||
|
|
Amortized
|
|
Unrecognized
|
|
Unrecognized
|
|
Fair
|
|
||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
|
||||
|
|
(In Thousands)
|
|
||||||||||
Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLMC certificates
|
|
$
|
69
|
|
$
|
-
|
|
$
|
(1)
|
|
$
|
68
|
|
FNMA certificates
|
|
|
162
|
|
|
6
|
|
|
-
|
|
|
168
|
|
GNMA certificates
|
|
|
60
|
|
|
3
|
|
|
-
|
|
|
63
|
|
Obligations of states and political subdivisions
|
|
|
217
|
|
|
-
|
|
|
-
|
|
|
217
|
|
Total Held-to-Maturity
|
|
$
|
508
|
|
$
|
9
|
|
$
|
(1)
|
|
$
|
516
|
|
|
Available-for-Sale
|
|
||||
|
Amortized
|
|
Fair
|
|
||
|
Cost
|
|
Value
|
|
||
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||
2013
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
|
|
Due in one year or less
|
$
|
2,135
|
|
$
|
2,137
|
|
Due after one year through
five years |
|
8,198
|
|
|
8,526
|
|
Due after five years through
ten years |
|
38,707
|
|
|
40,016
|
|
Due after ten years
|
|
46,504
|
|
|
46,358
|
|
MBS/CMO
|
|
101,233
|
|
|
101,133
|
|
Total
|
$
|
196,777
|
|
$
|
198,170
|
|
|
|
|
|
|
|
|
Held-to-maturity
|
|
|
|
|
|
|
Due after five years through
ten years |
$
|
186
|
|
$
|
186
|
|
MBS/CMO
|
|
201
|
|
|
207
|
|
Total
|
$
|
387
|
|
$
|
393
|
|
|
|
Available-for-Sale
|
|
||||
|
|
Amortized
|
|
Fair
|
|
||
|
|
Cost
|
|
Value
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||
2012
|
|
|
|
|
|
|
|
Available-for-sale
|
|
|
|
|
|
|
|
Due in one year or less
|
|
$
|
1,252
|
|
$
|
1,258
|
|
Due after one year through
five years |
|
|
15,719
|
|
|
15,996
|
|
Due after five years through
ten years |
|
|
33,743
|
|
|
36,024
|
|
Due after ten years
|
|
|
49,942
|
|
|
51,896
|
|
MBS/CMO
|
|
|
85,982
|
|
|
88,927
|
|
|
|
$
|
186,638
|
|
$
|
194,101
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
|
|
|
|
|
|
|
|
Due after five years through
ten years |
|
$
|
217
|
|
$
|
217
|
|
MBS/CMO
|
|
|
291
|
|
|
299
|
|
Total
|
|
$
|
508
|
|
$
|
516
|
|
- 79 - | ||
|
|
Duration of Unrealized Loss Position
|
|
|
|
|
|
|
|
||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
|
||||||||||||
|
|
|
|
|
Gross
|
|
|
|
|
Gross
|
|
|
|
|
|
|
|
||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
||||||
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
|
Value
|
|
Loses
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||||||||
At December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of U.S. government
corporations and agencies |
|
$
|
4,921
|
|
$
|
(79)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
4,921
|
|
$
|
(79)
|
|
Mortgage-backed securities
- residential |
|
|
24,846
|
|
|
(841)
|
|
|
-
|
|
|
-
|
|
|
24,846
|
|
|
(841)
|
|
Collateralized mortgage
obligations |
|
|
26,530
|
|
|
(763)
|
|
|
-
|
|
|
-
|
|
|
26,530
|
|
|
(763)
|
|
Corporate bonds
|
|
|
2,959
|
|
|
(41)
|
|
|
-
|
|
|
-
|
|
|
2,959
|
|
|
(41)
|
|
Obligations of state and political
subdivisions |
|
|
19,209
|
|
|
(871)
|
|
|
375
|
|
|
(39)
|
|
|
19,584
|
|
|
(910)
|
|
Trust preferred stock and
preferred stock |
|
|
-
|
|
|
-
|
|
|
582
|
|
|
(993)
|
|
|
582
|
|
|
(993)
|
|
Total temporarily impaired
securities |
|
$
|
78,465
|
|
$
|
(2,595)
|
|
$
|
957
|
|
$
|
(1,032)
|
|
$
|
79,422
|
|
$
|
(3,627)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
- residential |
|
$
|
1
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1
|
|
$
|
-
|
|
Obligations of state and political
subdivisions |
|
949
|
|
|
(5)
|
|
|
-
|
|
|
-
|
|
|
949
|
|
|
(5)
|
|
|
Trust preferred stock and
preferred stock |
|
-
|
|
|
-
|
|
|
1,474
|
|
|
(2,091)
|
|
|
1,474
|
|
|
(2,091)
|
|
|
Total temporarily impaired
securities |
|
$
|
950
|
|
$
|
(5)
|
|
$
|
1,474
|
|
$
|
(2,091)
|
|
$
|
2,424
|
|
$
|
(2,096)
|
|
- 80 - | ||
- 81 - | ||
CDO
|
|
Class
|
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
|
OTTI
Losses 2013 |
|
Lowest
Rating |
|
Current
Number of Banks and Insurance Companies |
|
Actual
Deferrals and Defaults as a % of Current Collateral |
|
|
Expected
Deferrals and Defaults as a % of Remaining Performing Collateral |
|
|
Excess Sub-
ordination as a % of Current Performing Collateral |
|
||||
TPREF Funding II
|
|
B
|
|
$
|
673
|
|
$
|
266
|
|
$
|
407
|
|
$
|
0
|
|
Caa3
|
|
16
|
|
41.10
|
%
|
|
13.48
|
%
|
|
-
|
%
|
I-Preferred Term Sec I
|
|
B-1
|
|
|
839
|
|
|
839
|
|
|
-
|
|
|
161
|
|
CCC-
|
|
14
|
|
17.24
|
%
|
|
11.72
|
%*
|
|
23.61
|
%
|
Dekania II CDO
|
|
C-1
|
|
|
815
|
|
|
815
|
|
|
-
|
|
|
176
|
|
CCC
|
|
30
|
|
-
|
%
|
|
13.16
|
%*
|
|
26.03
|
%
|
Preferred Term Sec XXVII
|
|
C-1
|
|
|
902
|
|
|
316
|
|
|
586
|
|
|
0
|
|
C
|
|
32
|
|
26.18
|
%
|
|
18.29
|
%
|
|
6.39
|
%
|
Total
|
|
|
|
$
|
3,229
|
|
$
|
2,236
|
|
$
|
993
|
|
$
|
337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 82 - | ||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
Beginning balance, January 1
|
|
$
|
3,176
|
|
$
|
3,251
|
|
$
|
3,249
|
|
Additions for amounts related to credit loss for which an OTTI was
not previously recognized |
|
|
337
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Reductions for amounts realized for securities sold/redeemed during
the period |
|
|
-
|
|
|
(80)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Reductions for amounts related to securities for which the
Company intends to sell or that it will be more likely than not that the Company will be required to sell prior to recovery of amortized cost basis |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Reductions for increase in cash flows expected to be collected that are
Recognized over the remaining life of the security |
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Increases to the amount related to the credit loss for which Other-than-
temporary was previously recognized |
|
|
-
|
|
|
5
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance, December 31
|
|
$
|
3,513
|
|
$
|
3,176
|
|
$
|
3,251
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Proceeds
|
|
$
|
4,027
|
|
$
|
72,262
|
|
$
|
8,719
|
|
Gross realized gains
|
|
|
97
|
|
|
2,163
|
|
|
218
|
|
Gross realized losses
|
|
|
-
|
|
|
(24)
|
|
|
-
|
|
|
2013
|
|
2012
|
|
||||||||
|
Fixed Rate
|
|
Variable Rate
|
|
Fixed Rate
|
|
Variable Rate
|
|
||||
Commitments to make loans
|
$
|
57,914
|
|
$
|
59,632
|
|
$
|
50,205
|
|
$
|
48,035
|
|
Unused lines of credit
|
|
18,047
|
|
|
257,939
|
|
|
21,975
|
|
|
228,269
|
|
Standby letters of credit
|
|
-
|
|
|
17,680
|
|
|
-
|
|
|
18,166
|
|
Total
|
$
|
75,962
|
|
$
|
335,251
|
|
$
|
72,180
|
|
$
|
294,470
|
|
- 83 - | ||
|
|
December 31,
2013 |
|
December 31,
2012 |
|
||
|
|
(In Thousands)
|
|
||||
Real Estate:
|
|
|
|
|
|
|
|
Secured by 1-4 family residential
|
|
$
|
195,752
|
|
$
|
200,826
|
|
Secured by multi-family residential
|
|
|
148,952
|
|
|
122,275
|
|
Secured by commercial real estate
|
|
|
670,666
|
|
|
675,110
|
|
Construction
|
|
|
86,058
|
|
|
37,788
|
|
|
|
|
1,101,428
|
|
|
1,035,999
|
|
Other Loans:
|
|
|
|
|
|
|
|
Commercial
|
|
|
388,236
|
|
|
383,817
|
|
Home equity and improvement
|
|
|
106,930
|
|
|
108,718
|
|
Consumer Finance
|
|
|
16,902
|
|
|
15,936
|
|
|
|
|
512,068
|
|
|
508,471
|
|
Total loans
|
|
|
1,613,496
|
|
|
1,544,470
|
|
Deduct:
|
|
|
|
|
|
|
|
Undisbursed loan funds
|
|
|
(32,290)
|
|
|
(18,478)
|
|
Net deferred loan origination fees and costs
|
|
|
(758)
|
|
|
(735)
|
|
Allowance for loan loss
|
|
|
(24,950)
|
|
|
(26,711)
|
|
Totals
|
|
$
|
1,555,498
|
|
$
|
1,498,546
|
|
- 84 - | ||
Year to Date December 31,
2013 |
|
1-4 Family
Residential Real Estate |
|
Multi-Family
Residential Real Estate |
|
Commercial
Real Estate |
|
Construction
|
|
Commercial
|
|
Home Equity
and Improvement |
|
Consumer
Finance |
|
Total
|
|
||||||||
Beginning Allowance
|
|
$
|
3,506
|
|
$
|
2,197
|
|
$
|
12,702
|
|
$
|
75
|
|
$
|
6,325
|
|
$
|
1,759
|
|
$
|
147
|
|
$
|
26,711
|
|
Charge-Offs
|
|
|
(643)
|
|
|
(6)
|
|
|
(2,469)
|
|
|
-
|
|
|
(1,230)
|
|
|
(757)
|
|
|
(94)
|
|
|
(5,199)
|
|
Recoveries
|
|
|
282
|
|
|
-
|
|
|
837
|
|
|
-
|
|
|
290
|
|
|
125
|
|
|
80
|
|
|
1,614
|
|
Provisions
|
|
|
(298)
|
|
|
317
|
|
|
930
|
|
|
59
|
|
|
293
|
|
|
508
|
|
|
15
|
|
|
1,824
|
|
Ending Allowance
|
|
$
|
2,847
|
|
$
|
2,508
|
|
$
|
12,000
|
|
$
|
134
|
|
$
|
5,678
|
|
$
|
1,635
|
|
$
|
148
|
|
$
|
24,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date December 31,
2012 |
|
1-4 Family
Residential Real Estate |
|
Multi-Family
Residential Real Estate |
|
Commercial
Real Estate |
|
Construction
|
|
Commercial
|
|
Home Equity
and Improvement |
|
Consumer
Finance |
|
Total
|
|
||||||||
Beginning Allowance
|
|
$
|
4,095
|
|
$
|
2,850
|
|
$
|
17,640
|
|
$
|
63
|
|
$
|
6,576
|
|
$
|
1,856
|
|
$
|
174
|
|
$
|
33,254
|
|
Charge-Offs
|
|
|
(2,515)
|
|
|
(555)
|
|
|
(10,764)
|
|
|
-
|
|
|
(4,047)
|
|
|
(1,165)
|
|
|
(133)
|
|
|
(19,179)
|
|
Recoveries
|
|
|
177
|
|
|
122
|
|
|
895
|
|
|
-
|
|
|
359
|
|
|
95
|
|
|
64
|
|
|
1,712
|
|
Provisions
|
|
|
1,749
|
|
|
(220)
|
|
|
4,931
|
|
|
12
|
|
|
3,437
|
|
|
973
|
|
|
42
|
|
|
10,924
|
|
Ending Allowance
|
|
$
|
3,506
|
|
$
|
2,197
|
|
$
|
12,702
|
|
$
|
75
|
|
$
|
6,325
|
|
$
|
1,759
|
|
$
|
147
|
|
$
|
26,711
|
|
Year-to-Date December 31,
2011 |
|
1-4 Family
Residential Real Estate |
|
Multi-Family
Residential Real Estate |
|
Commercial
Real Estate |
|
Construction
|
|
Commercial
|
|
Home Equity
and Improvement |
|
Consumer
Finance |
|
Total
|
|
||||||||
Beginning Allowance
|
|
$
|
5,956
|
|
$
|
2,147
|
|
$
|
20,208
|
|
$
|
73
|
|
$
|
10,871
|
|
$
|
1,528
|
|
$
|
297
|
|
$
|
41,080
|
|
Charge-Offs
|
|
|
(2,753)
|
|
|
(792)
|
|
|
(12,358)
|
|
|
-
|
|
|
(4,398)
|
|
|
(1,052)
|
|
|
(95)
|
|
|
(21,448)
|
|
Recoveries
|
|
|
127
|
|
|
-
|
|
|
533
|
|
|
-
|
|
|
393
|
|
|
65
|
|
|
70
|
|
|
1,188
|
|
Provisions
|
|
|
765
|
|
|
1,495
|
|
|
9,257
|
|
|
(10)
|
|
|
(290)
|
|
|
1,315
|
|
|
(98)
|
|
|
12,434
|
|
Ending Allowance
|
|
$
|
4,095
|
|
$
|
2,850
|
|
$
|
17,640
|
|
$
|
63
|
|
$
|
6,576
|
|
$
|
1,856
|
|
$
|
174
|
|
$
|
33,254
|
|
- 85 - | ||
|
|
1-4 Family
|
|
Multi Family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Residential
|
|
Residential
|
|
Commercial
|
|
|
|
|
|
|
|
Home Equity
|
|
Consumer
|
|
|
|
|
|||||
|
|
Real Estate
|
|
Real Estate
|
|
Real Estate
|
|
Commercial
|
|
Construction
|
|
& Improvement
|
|
Finance
|
|
Total
|
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment
|
|
$
|
220
|
|
$
|
-
|
|
$
|
1,121
|
|
$
|
-
|
|
$
|
6
|
|
$
|
45
|
|
$
|
-
|
|
$
|
1,392
|
|
Collectively evaluated for impairment
|
|
|
2,627
|
|
|
2,508
|
|
|
10,879
|
|
|
134
|
|
|
5,672
|
|
|
1,590
|
|
|
148
|
|
|
23,558
|
|
Acquired with deteriorated credit quality
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total ending allowance balance
|
|
$
|
2,847
|
|
$
|
2,508
|
|
$
|
12,000
|
|
$
|
134
|
|
$
|
5,678
|
|
$
|
1,635
|
|
$
|
148
|
|
$
|
24,950
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
10,245
|
|
$
|
840
|
|
$
|
34,874
|
|
$
|
263
|
|
$
|
8,737
|
|
$
|
2,429
|
|
$
|
53
|
|
$
|
57,441
|
|
Loans collectively evaluated for impairment
|
|
|
185,923
|
|
|
148,294
|
|
|
637,657
|
|
|
53,467
|
|
|
380,711
|
|
|
104,958
|
|
|
16,838
|
|
|
1,527,848
|
|
Loans acquired with deteriorated credit quality
|
|
|
29
|
|
|
-
|
|
|
174
|
|
|
-
|
|
|
27
|
|
|
-
|
|
|
-
|
|
|
230
|
|
Total ending loans balance
|
|
$
|
196,197
|
|
$
|
149,134
|
|
$
|
672,705
|
|
$
|
53,730
|
|
$
|
389,475
|
|
$
|
107,387
|
|
$
|
16,891
|
|
$
|
1,585,519
|
|
- 86 - | ||
|
|
1-4 Family
|
|
Multi Family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Residential
|
|
Residential
|
|
Commercial
|
|
|
|
|
|
|
|
Home Equity
|
|
Consumer
|
|
|
|
|
|||||
|
|
Real Estate
|
|
Real Estate
|
|
Real Estate
|
|
Commercial
|
|
Construction
|
|
& Improvement
|
|
Finance
|
|
Total
|
|
||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated for impairment
|
|
$
|
281
|
|
$
|
-
|
|
$
|
1,070
|
|
$
|
-
|
|
$
|
138
|
|
$
|
2
|
|
$
|
-
|
|
$
|
1,491
|
|
Collectively evaluated for impairment
|
|
|
3,225
|
|
|
2,197
|
|
|
11,632
|
|
|
75
|
|
|
6,187
|
|
|
1,757
|
|
|
147
|
|
|
25,220
|
|
Acquired with deteriorated credit quality
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total ending allowance balance
|
|
$
|
3,506
|
|
$
|
2,197
|
|
$
|
12,702
|
|
$
|
75
|
|
$
|
6,325
|
|
$
|
1,759
|
|
$
|
147
|
|
$
|
26,711
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment
|
|
$
|
11,930
|
|
$
|
1,626
|
|
$
|
46,053
|
|
$
|
45
|
|
$
|
8,830
|
|
$
|
2,678
|
|
$
|
124
|
|
$
|
71,286
|
|
Loans collectively evaluated for impairment
|
|
|
189,348
|
|
|
120,829
|
|
|
630,534
|
|
|
19,251
|
|
|
376,007
|
|
|
106,516
|
|
|
15,815
|
|
|
1,458,300
|
|
Loans acquired with deteriorated credit quality
|
|
|
36
|
|
|
-
|
|
|
436
|
|
|
-
|
|
|
32
|
|
|
-
|
|
|
-
|
|
|
504
|
|
Total ending loans balance
|
|
$
|
201,314
|
|
$
|
122,455
|
|
$
|
677,023
|
|
$
|
19,296
|
|
$
|
384,869
|
|
$
|
109,194
|
|
$
|
15,939
|
|
$
|
1,530,090
|
|
- 87 - | ||
|
|
Twelve Months Ended December 31,
2013 |
|
|||||||
|
|
Average
Balance |
|
Interest
Income Recognized |
|
Cash Basis
Income Recognized |
|
|||
Residential Owner Occupied
|
|
$
|
6,529
|
|
$
|
345
|
|
$
|
343
|
|
Residential Non Owner Occupied
|
|
|
4,453
|
|
|
162
|
|
|
163
|
|
Total 1-4 Family Residential Real Estate
|
|
|
10,982
|
|
|
507
|
|
|
506
|
|
Multi-Family Residential Real Estate
|
|
|
1,176
|
|
|
27
|
|
|
28
|
|
CRE Owner Occupied
|
|
|
14,313
|
|
|
376
|
|
|
386
|
|
CRE Non Owner Occupied
|
|
|
22,339
|
|
|
901
|
|
|
909
|
|
Agriculture Land
|
|
|
987
|
|
|
26
|
|
|
16
|
|
Other CRE
|
|
|
4,162
|
|
|
43
|
|
|
38
|
|
Total Commercial Real Estate
|
|
|
41,801
|
|
|
1,346
|
|
|
1,349
|
|
Construction
|
|
|
165
|
|
|
10
|
|
|
8
|
|
Commercial Working Capital
|
|
|
2,085
|
|
|
33
|
|
|
36
|
|
Commercial Other
|
|
|
6,521
|
|
|
75
|
|
|
70
|
|
Total Commercial
|
|
|
8,606
|
|
|
108
|
|
|
106
|
|
Consumer Finance
|
|
|
83
|
|
|
6
|
|
|
6
|
|
Home Equity and Home Improvement
|
|
|
2,631
|
|
|
121
|
|
|
117
|
|
Total Impaired Loans
|
|
$
|
65,444
|
|
$
|
2,125
|
|
$
|
2,120
|
|
- 88 - | ||
|
|
Twelve Months Ended December 31,
2012 |
|
|||||||
|
|
Average
Balance |
|
Interest
Income Recognized |
|
Cash Basis
Income Recognized |
|
|||
Residential Owner Occupied
|
|
$
|
2,946
|
|
$
|
137
|
|
$
|
136
|
|
Residential Non Owner Occupied
|
|
|
5,291
|
|
|
173
|
|
|
177
|
|
Total 1-4 Family Residential Real Estate
|
|
|
8,237
|
|
|
310
|
|
|
313
|
|
Multi-Family Residential Real Estate
|
|
|
826
|
|
|
22
|
|
|
21
|
|
CRE Owner Occupied
|
|
|
11,755
|
|
|
190
|
|
|
176
|
|
CRE Non Owner Occupied
|
|
|
17,156
|
|
|
540
|
|
|
559
|
|
Agriculture Land
|
|
|
1,062
|
|
|
31
|
|
|
23
|
|
Other CRE
|
|
|
6,672
|
|
|
15
|
|
|
15
|
|
Total Commercial Real Estate
|
|
|
36,645
|
|
|
776
|
|
|
773
|
|
Construction
|
|
|
9
|
|
|
-
|
|
|
-
|
|
Commercial Working Capital
|
|
|
2,021
|
|
|
26
|
|
|
29
|
|
Commercial Other
|
|
|
5,018
|
|
|
87
|
|
|
90
|
|
Total Commercial
|
|
|
7,039
|
|
|
113
|
|
|
119
|
|
Consumer Finance
|
|
|
25
|
|
|
3
|
|
|
3
|
|
Home Equity and Home Improvement
|
|
|
563
|
|
|
33
|
|
|
33
|
|
Total Impaired Loans
|
|
$
|
53,344
|
|
$
|
1,257
|
|
$
|
1,262
|
|
- 89 - | ||
|
|
Twelve Months Ended December 31,
2011 |
|
|||||||
|
|
Average
Balance |
|
Interest
Income Recognized |
|
Cash Basis
Income Recognized |
|
|||
Residential Owner Occupied
|
|
$
|
2,689
|
|
$
|
68
|
|
$
|
67
|
|
Residential Non Owner Occupied
|
|
|
2,646
|
|
|
85
|
|
|
87
|
|
Total 1-4 Family Residential Real Estate
|
|
|
5,335
|
|
|
153
|
|
|
154
|
|
Multi-Family Residential Real Estate
|
|
|
2,097
|
|
|
88
|
|
|
83
|
|
CRE Owner Occupied
|
|
|
10,631
|
|
|
302
|
|
|
282
|
|
CRE Non Owner Occupied
|
|
|
19,351
|
|
|
777
|
|
|
724
|
|
Agriculture Land
|
|
|
1,932
|
|
|
47
|
|
|
47
|
|
Other CRE
|
|
|
7,952
|
|
|
54
|
|
|
43
|
|
Total Commercial Real Estate
|
|
|
39,866
|
|
|
1,180
|
|
|
1,096
|
|
Construction
|
|
|
25
|
|
|
-
|
|
|
-
|
|
Commercial Working Capital
|
|
|
3,758
|
|
|
74
|
|
|
77
|
|
Commercial Other
|
|
|
9,660
|
|
|
194
|
|
|
191
|
|
Total Commercial
|
|
|
13,418
|
|
|
268
|
|
|
268
|
|
Consumer Finance
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Home Equity and Home Improvement
|
|
|
258
|
|
|
12
|
|
|
12
|
|
Total Impaired Loans
|
|
$
|
60,999
|
|
$
|
1,701
|
|
$
|
1,613
|
|
- 90 - | ||
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||||||||||
|
|
Unpaid
Principal Balance* |
|
Recorded
Investment |
|
Allowance
for Loan Losses Allocated |
|
Unpaid
Principal Balance* |
|
Recorded
Investment |
|
Allowance
for Loan Losses Allocated |
|
||||||
With no allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Owner Occupied
|
|
$
|
4,744
|
|
$
|
4,729
|
|
$
|
-
|
|
$
|
5,427
|
|
$
|
5,357
|
|
$
|
-
|
|
Residential Non Owner Occupied
|
|
|
4,844
|
|
|
4,329
|
|
|
-
|
|
|
4,211
|
|
|
3,420
|
|
|
-
|
|
Total 1-4 Family Residential Real Estate
|
|
|
9,588
|
|
|
9,058
|
|
|
-
|
|
|
9,638
|
|
|
8,777
|
|
|
-
|
|
Multi-Family Residential Real Estate
|
|
|
989
|
|
|
840
|
|
|
-
|
|
|
1,775
|
|
|
1,626
|
|
|
-
|
|
CRE Owner Occupied
|
|
|
11,105
|
|
|
8,376
|
|
|
-
|
|
|
12,314
|
|
|
9,782
|
|
|
-
|
|
CRE Non Owner Occupied
|
|
|
9,399
|
|
|
7,740
|
|
|
-
|
|
|
11,054
|
|
|
9,105
|
|
|
-
|
|
Agriculture Land
|
|
|
629
|
|
|
488
|
|
|
-
|
|
|
1,176
|
|
|
993
|
|
|
-
|
|
Other CRE
|
|
|
3,274
|
|
|
2,452
|
|
|
-
|
|
|
8,741
|
|
|
5,527
|
|
|
-
|
|
Total Commercial Real Estate
|
|
|
24,407
|
|
|
19,056
|
|
|
-
|
|
|
33,285
|
|
|
25,407
|
|
|
-
|
|
Construction
|
|
|
300
|
|
|
263
|
|
|
-
|
|
|
300
|
|
|
45
|
|
|
-
|
|
Commercial Working Capital
|
|
|
3,147
|
|
|
3,146
|
|
|
-
|
|
|
1,565
|
|
|
1,565
|
|
|
-
|
|
Commercial Other
|
|
|
6,063
|
|
|
5,415
|
|
|
-
|
|
|
6,367
|
|
|
5,338
|
|
|
-
|
|
Total Commercial
|
|
|
9,210
|
|
|
8,561
|
|
|
-
|
|
|
7,932
|
|
|
6,903
|
|
|
-
|
|
Consumer
|
|
|
53
|
|
|
53
|
|
|
-
|
|
|
125
|
|
|
124
|
|
|
-
|
|
Home Equity and Home Improvement
|
|
|
1,985
|
|
|
1,992
|
|
|
-
|
|
|
2,777
|
|
|
2,642
|
|
|
-
|
|
Total loans with no allowance recorded
|
|
$
|
46,532
|
|
$
|
39,823
|
|
$
|
-
|
|
$
|
55,832
|
|
$
|
45,524
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Owner Occupied
|
|
$
|
1,100
|
|
$
|
1,103
|
|
$
|
218
|
|
$
|
1,697
|
|
$
|
1,701
|
|
$
|
257
|
|
Residential Non Owner Occupied
|
|
|
84
|
|
|
84
|
|
|
2
|
|
|
1,449
|
|
|
1,452
|
|
|
24
|
|
Total 1-4 Family Residential Real Estate
|
|
|
1,184
|
|
|
1,187
|
|
|
220
|
|
|
3,146
|
|
|
3,153
|
|
|
281
|
|
Multi-Family Residential Real Estate
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
CRE Owner Occupied
|
|
|
3,212
|
|
|
2,765
|
|
|
166
|
|
|
5,735
|
|
|
5,118
|
|
|
245
|
|
CRE Non Owner Occupied
|
|
|
12,756
|
|
|
12,803
|
|
|
946
|
|
|
15,301
|
|
|
15,357
|
|
|
820
|
|
Agriculture Land
|
|
|
195
|
|
|
197
|
|
|
7
|
|
|
111
|
|
|
112
|
|
|
3
|
|
Other CRE
|
|
|
82
|
|
|
53
|
|
|
2
|
|
|
88
|
|
|
59
|
|
|
2
|
|
Total Commercial Real Estate
|
|
|
16,245
|
|
|
15,818
|
|
|
1,121
|
|
|
21,235
|
|
|
20,646
|
|
|
1,070
|
|
Construction
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Commercial Working Capital
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
300
|
|
|
301
|
|
|
10
|
|
Commercial Other
|
|
|
176
|
|
|
176
|
|
|
6
|
|
|
1,623
|
|
|
1,626
|
|
|
128
|
|
Total Commercial
|
|
|
176
|
|
|
176
|
|
|
6
|
|
|
1,923
|
|
|
1,927
|
|
|
138
|
|
Consumer
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Home Equity and Home Improvement
|
|
|
436
|
|
|
437
|
|
|
45
|
|
|
36
|
|
|
36
|
|
|
2
|
|
Total loans with an allowance recorded
|
|
$
|
18,041
|
|
$
|
17,618
|
|
$
|
1,392
|
|
$
|
26,340
|
|
$
|
25,762
|
|
$
|
1,491
|
|
- 91 - | ||
|
|
December 31,
2013 |
|
December 31,
2012 |
|
||
|
|
(in thousands)
|
|
||||
Non-accrual loans
|
|
$
|
27,847
|
|
$
|
32,570
|
|
Loans over 90 days past due and still accruing
|
|
|
-
|
|
|
-
|
|
Total non-performing loans
|
|
|
27,847
|
|
|
32,570
|
|
Real estate and other assets held for sale
|
|
|
5,859
|
|
|
3,805
|
|
Total non-performing assets
|
|
$
|
33,706
|
|
$
|
36,375
|
|
|
|
|
|
|
|
|
|
Troubled debt restructuring, still accruing
|
|
$
|
27,630
|
|
$
|
28,203
|
|
|
|
Current
|
|
30-59 days
|
|
60-89 days
|
|
90+ days
|
|
Total
Past Due |
|
Total Non
Accrual |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Owner Occupied
|
|
$
|
126,855
|
|
$
|
1,530
|
|
$
|
191
|
|
$
|
1,009
|
|
$
|
2,730
|
|
$
|
1,329
|
|
Residential Non Owner Occupied
|
|
|
65,292
|
|
|
531
|
|
|
403
|
|
|
386
|
|
|
1,320
|
|
|
1,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 1-4 Family Residential Real Estate
|
|
|
192,147
|
|
|
2,061
|
|
|
594
|
|
|
1,395
|
|
|
4,050
|
|
|
3,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Residential Real Estate
|
|
|
149,134
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE Owner Occupied
|
|
|
311,253
|
|
|
334
|
|
|
495
|
|
|
3,671
|
|
|
4,500
|
|
|
7,492
|
|
CRE Non Owner Occupied
|
|
|
225,433
|
|
|
1,067
|
|
|
918
|
|
|
902
|
|
|
2,887
|
|
|
4,717
|
|
Agriculture Land
|
|
|
81,954
|
|
|
21
|
|
|
-
|
|
|
73
|
|
|
94
|
|
|
630
|
|
Other Commercial Real Estate
|
|
|
45,297
|
|
|
-
|
|
|
-
|
|
|
1,287
|
|
|
1,287
|
|
|
2,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Real Estate
|
|
|
663,937
|
|
|
1,422
|
|
|
1,413
|
|
|
5,933
|
|
|
8,768
|
|
|
15,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
53,730
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Working Capital
|
|
|
155,373
|
|
|
-
|
|
|
-
|
|
|
419
|
|
|
419
|
|
|
2,917
|
|
Commercial Other
|
|
|
230,054
|
|
|
37
|
|
|
26
|
|
|
3,566
|
|
|
3,629
|
|
|
5,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial
|
|
|
385,427
|
|
|
37
|
|
|
26
|
|
|
3,985
|
|
|
4,048
|
|
|
8,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance
|
|
|
16,759
|
|
|
131
|
|
|
|
|
|
-
|
|
|
131
|
|
|
-
|
|
Home Equity/Home Improvement
|
|
|
105,657
|
|
|
1,163
|
|
|
155
|
|
|
413
|
|
|
1,731
|
|
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
1,566,791
|
|
$
|
4,814
|
|
$
|
2,188
|
|
$
|
11,726
|
|
$
|
18,728
|
|
$
|
27,855
|
|
- 92 - | ||
|
|
Current
|
|
30-59 days
|
|
60-89 days
|
|
90+ days
|
|
Total
Past Due |
|
Total Non
Accrual |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Owner Occupied
|
|
$
|
125,362
|
|
$
|
1,238
|
|
$
|
604
|
|
$
|
945
|
|
$
|
2,787
|
|
$
|
1,125
|
|
Residential Non Owner Occupied
|
|
|
71,777
|
|
|
413
|
|
|
126
|
|
|
849
|
|
|
1,388
|
|
|
2,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 1-4 Family Residential Real Estate
|
|
|
197,139
|
|
|
1,651
|
|
|
730
|
|
|
1,794
|
|
|
4,175
|
|
|
3,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Residential Real Estate
|
|
|
122,455
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE Owner Occupied
|
|
|
321,071
|
|
|
1,248
|
|
|
382
|
|
|
1,622
|
|
|
3,252
|
|
|
9,652
|
|
CRE Non Owner Occupied
|
|
|
235,592
|
|
|
134
|
|
|
1,321
|
|
|
2,480
|
|
|
3,935
|
|
|
6,674
|
|
Agriculture Land
|
|
|
72,092
|
|
|
84
|
|
|
31
|
|
|
-
|
|
|
115
|
|
|
813
|
|
Other Commercial Real Estate
|
|
|
36,510
|
|
|
21
|
|
|
875
|
|
|
3,560
|
|
|
4,456
|
|
|
4,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Real Estate
|
|
|
665,265
|
|
|
1,487
|
|
|
2,609
|
|
|
7,662
|
|
|
11,758
|
|
|
21,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
19,296
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Working Capital
|
|
|
161,110
|
|
|
-
|
|
|
155
|
|
|
1,204
|
|
|
1,359
|
|
|
1,528
|
|
Commercial Other
|
|
|
218,477
|
|
|
584
|
|
|
1,201
|
|
|
2,138
|
|
|
3,923
|
|
|
4,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial
|
|
|
379,587
|
|
|
584
|
|
|
1,356
|
|
|
3,342
|
|
|
5,282
|
|
|
5,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Finance
|
|
|
15,702
|
|
|
229
|
|
|
8
|
|
|
-
|
|
|
237
|
|
|
-
|
|
Home Equity/Home Improvement
|
|
|
106,458
|
|
|
2,294
|
|
|
225
|
|
|
217
|
|
|
2,736
|
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
1,505,902
|
|
$
|
6,245
|
|
$
|
4,928
|
|
$
|
13,015
|
|
$
|
24,188
|
|
$
|
32,557
|
|
- 93 - | ||
|
|
Loans Modified as a TDR for the
Twelve Months Ended December 31, 2013 |
|
Loans Modified as a TDR for the
Twelve Months Ended December 31, 2012 |
|
Loans Modified as a TDR for the
Twelve Months Ended December 31, 2011 |
|
|||||||||
Troubled Debt Restructurings
|
|
Number of
Loans |
|
Recorded
Investment (as of period end) |
|
Number of
Loans |
|
Recorded
Investment (as of period end) |
|
Number of
Loans |
|
Recorded
Investment (as of period end) |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
10
|
|
$
|
752
|
|
87
|
|
$
|
6,052
|
|
4
|
|
$
|
250
|
|
1-4 Family Non Owner Occupied
|
|
5
|
|
|
390
|
|
8
|
|
|
666
|
|
1
|
|
|
305
|
|
CRE Owner Occupied
|
|
9
|
|
|
714
|
|
9
|
|
|
3,859
|
|
6
|
|
|
426
|
|
CRE Non Owner Occupied
|
|
2
|
|
|
1,364
|
|
13
|
|
|
13,942
|
|
6
|
|
|
4,628
|
|
Agriculture Land
|
|
2
|
|
|
269
|
|
3
|
|
|
474
|
|
-
|
|
|
-
|
|
Other CRE
|
|
3
|
|
|
417
|
|
1
|
|
|
59
|
|
-
|
|
|
-
|
|
Commercial Working Capital or Other
|
|
8
|
|
|
1,602
|
|
7
|
|
|
1,196
|
|
6
|
|
|
2,379
|
|
Home Equity and Improvement
|
|
15
|
|
|
561
|
|
127
|
|
|
2,663
|
|
1
|
|
|
22
|
|
Consumer Finance
|
|
3
|
|
|
15
|
|
27
|
|
|
124
|
|
-
|
|
|
-
|
|
Total
|
|
57
|
|
$
|
6,084
|
|
282
|
|
$
|
29,035
|
|
24
|
|
$
|
8,010
|
|
- 94 - | ||
|
|
Twelve Months Ended
December 31, 2013 ($ in thousands) |
|
Twelve Months Ended
December 31, 2012 ($ in thousands) |
|
Twelve Months Ended
December 31, 2011 ($ in thousands) |
|
||||||||||
Troubled Debt Restructurings
That Subsequently Defaulted: |
|
Number of
Loans |
|
Recorded
Investment (as of Period End) |
|
Number of
Loans |
|
Recorded
Investment (as of Period End) |
|
Number of
Loans |
|
Recorded
Investment (as of Period End) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Owner Occupied
|
|
6
|
|
$
|
409
|
|
6
|
|
$
|
462
|
|
|
2
|
|
$
|
206
|
|
Residential Non Owner Occupied
|
|
-
|
|
|
-
|
|
2
|
|
|
203
|
|
|
-
|
|
|
-
|
|
CRE Owner Occupied
|
|
2
|
|
|
290
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1,495
|
|
CRE Non Owner Occupied
|
|
1
|
|
|
212
|
|
3
|
|
|
555
|
|
|
-
|
|
|
-
|
|
Agriculture Land
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Other CRE
|
|
1
|
|
|
323
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Commercial / Industrial
|
|
5
|
|
|
889
|
|
5
|
|
|
2,129
|
|
|
1
|
|
|
53
|
|
Home Equity / Improvement
|
|
3
|
|
|
315
|
|
7
|
|
|
166
|
|
|
-
|
|
|
-
|
|
Consumer
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
|
|
18
|
|
$
|
2,438
|
|
23
|
|
$
|
3,515
|
|
|
4
|
|
$
|
1,754
|
|
- 95 - | ||
Class
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Not
Graded |
|
Total
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
4,287
|
|
$
|
18
|
|
$
|
3,515
|
|
$
|
-
|
|
$
|
121,765
|
|
$
|
129,585
|
|
1-4 Family Non Owner Occupied
|
|
|
51,660
|
|
|
2,894
|
|
|
5,699
|
|
|
-
|
|
|
6,359
|
|
|
66,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 1-4 Family Real Estate
|
|
|
55,947
|
|
|
2,912
|
|
|
9,214
|
|
|
-
|
|
|
128,124
|
|
|
196,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Residential Real Estate
|
|
|
145,407
|
|
|
875
|
|
|
1,888
|
|
|
-
|
|
|
964
|
|
|
149,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE Owner Occupied
|
|
|
291,770
|
|
|
10,584
|
|
|
11,665
|
|
|
-
|
|
|
1,734
|
|
|
315,753
|
|
CRE Non Owner Occupied
|
|
|
200,790
|
|
|
10,254
|
|
|
17,185
|
|
|
-
|
|
|
91
|
|
|
228,320
|
|
Agriculture Land
|
|
|
80,418
|
|
|
578
|
|
|
1,051
|
|
|
-
|
|
|
-
|
|
|
82,047
|
|
Other CRE
|
|
|
40,676
|
|
|
2,074
|
|
|
3,104
|
|
|
-
|
|
|
731
|
|
|
46,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Real Estate
|
|
|
613,654
|
|
|
23,490
|
|
|
33,005
|
|
|
-
|
|
|
2,556
|
|
|
672,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
43,465
|
|
|
-
|
|
|
263
|
|
|
-
|
|
|
10,002
|
|
|
53,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Working Capital
|
|
|
148,703
|
|
|
3,429
|
|
|
3,660
|
|
|
-
|
|
|
-
|
|
|
155,792
|
|
Commercial Other
|
|
|
219,790
|
|
|
6,994
|
|
|
6,899
|
|
|
-
|
|
|
-
|
|
|
233,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial
|
|
|
368,493
|
|
|
10,423
|
|
|
10,559
|
|
|
-
|
|
|
-
|
|
|
389,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home Equity and Home Improvement
|
|
|
-
|
|
|
-
|
|
|
755
|
|
|
45
|
|
|
106,587
|
|
|
107,387
|
|
Consumer Finance
|
|
|
-
|
|
|
-
|
|
|
31
|
|
|
-
|
|
|
16,860
|
|
|
16,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
1,226,966
|
|
$
|
37,700
|
|
$
|
55,715
|
|
$
|
45
|
|
$
|
265,093
|
|
$
|
1,585,519
|
|
- 96 - | ||
Class
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Not
Graded |
|
Total
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Owner Occupied
|
|
$
|
4,221
|
|
$
|
75
|
|
$
|
3,617
|
|
$
|
234
|
|
$
|
120,002
|
|
$
|
128,149
|
|
1-4 Family Non Owner Occupied
|
|
|
55,771
|
|
|
2,453
|
|
|
8,248
|
|
|
-
|
|
|
6,693
|
|
|
73,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 1-4 Family Real Estate
|
|
|
59,992
|
|
|
2,528
|
|
|
11,865
|
|
|
234
|
|
|
126,695
|
|
|
201,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family Residential Real Estate
|
|
|
118,121
|
|
|
910
|
|
|
2,404
|
|
|
-
|
|
|
1,020
|
|
|
122,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE Owner Occupied
|
|
|
292,765
|
|
|
10,440
|
|
|
18,740
|
|
|
-
|
|
|
2,378
|
|
|
324,323
|
|
CRE Non Owner Occupied
|
|
|
207,745
|
|
|
9,077
|
|
|
22,615
|
|
|
-
|
|
|
90
|
|
|
239,527
|
|
Agriculture Land
|
|
|
69,924
|
|
|
769
|
|
|
1,514
|
|
|
-
|
|
|
-
|
|
|
72,207
|
|
Other CRE
|
|
|
31,875
|
|
|
891
|
|
|
7,222
|
|
|
-
|
|
|
978
|
|
|
40,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Real Estate
|
|
|
602,309
|
|
|
21,177
|
|
|
50,091
|
|
|
-
|
|
|
3,446
|
|
|
677,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
11,360
|
|
|
-
|
|
|
45
|
|
|
-
|
|
|
7,891
|
|
|
19,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Working Capital
|
|
|
156,433
|
|
|
3,587
|
|
|
2,449
|
|
|
-
|
|
|
-
|
|
|
162,469
|
|
Commercial Other
|
|
|
208,783
|
|
|
5,204
|
|
|
8,413
|
|
|
-
|
|
|
-
|
|
|
222,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial
|
|
|
365,216
|
|
|
8,791
|
|
|
10,862
|
|
|
-
|
|
|
-
|
|
|
384,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home Equity and Home Improvement
|
|
|
-
|
|
|
-
|
|
|
668
|
|
|
64
|
|
|
108,462
|
|
|
109,194
|
|
Consumer Finance
|
|
|
-
|
|
|
-
|
|
|
70
|
|
|
-
|
|
|
15,869
|
|
|
15,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
|
|
$
|
1,156,998
|
|
$
|
33,406
|
|
$
|
76,005
|
|
$
|
298
|
|
$
|
263,383
|
|
$
|
1,530,090
|
|
- 97 - | ||
|
|
Contractual
Amount Receivable |
|
Impairment
Discount |
|
Recorded
Loan Receivable |
|
|||
|
|
(In Thousands)
|
|
|||||||
Balance at January 1, 2011
|
|
$
|
3,482
|
|
$
|
1,286
|
|
$
|
2,196
|
|
Principal payments received
|
|
|
(413)
|
|
|
-
|
|
|
(413)
|
|
Loans charged off
|
|
|
(250)
|
|
|
(250)
|
|
|
-
|
|
Additional provision for loan loss
|
|
|
(613)
|
|
|
-
|
|
|
(613)
|
|
Loan accretion recorded
|
|
|
-
|
|
|
(33)
|
|
|
33
|
|
Balance at December 31, 2011
|
|
|
2,206
|
|
|
1,003
|
|
|
1,203
|
|
Principal payments received
|
|
|
(697)
|
|
|
-
|
|
|
(697)
|
|
Loans charged off
|
|
|
(487)
|
|
|
(487)
|
|
|
-
|
|
Additional provision for loan loss
|
|
|
(167)
|
|
|
-
|
|
|
(167)
|
|
Loan accretion recorded
|
|
|
-
|
|
|
(173)
|
|
|
173
|
|
Balance at December 31, 2012
|
|
|
855
|
|
|
343
|
|
|
512
|
|
Principal payments received
|
|
|
(108)
|
|
|
-
|
|
|
(108)
|
|
Loans charged off
|
|
|
(41)
|
|
|
(41)
|
|
|
-
|
|
Additional provision for loan loss
|
|
|
(203)
|
|
|
-
|
|
|
(203)
|
|
Loan accretion recorded
|
|
|
-
|
|
|
(29)
|
|
|
29
|
|
Balance at December 31, 2013
|
|
$
|
503
|
|
$
|
273
|
|
$
|
230
|
|
|
|
Years Ended December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
3,489
|
|
$
|
4,775
|
|
New loans
|
|
|
8,874
|
|
|
5,036
|
|
Effect of changes in composition of related parties
|
|
|
-
|
|
|
(878)
|
|
Repayments
|
|
|
(8,651)
|
|
|
(5,444)
|
|
Ending Balance
|
|
$
|
3,712
|
|
$
|
3,489
|
|
- 98 - | ||
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Gain from sale of mortgage loans
|
|
$
|
5,716
|
|
$
|
10,599
|
|
$
|
5,607
|
|
Mortgage loan servicing revenue (expense):
|
|
|
|
|
|
|
|
|
|
|
Mortgage loan servicing revenue
|
|
|
3,564
|
|
|
3,387
|
|
|
3,403
|
|
Amortization of mortgage servicing rights
|
|
|
(2,098)
|
|
|
(3,562)
|
|
|
(2,169)
|
|
Mortgage servicing rights valuation adjustments
|
|
|
1,261
|
|
|
(759)
|
|
|
(404)
|
|
|
|
|
2,727
|
|
|
(934)
|
|
|
830
|
|
Net revenue from sale and servicing of mortgage loans
|
|
$
|
8,443
|
|
$
|
9,665
|
|
$
|
6,437
|
|
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
|||||||
Mortgage servicing assets:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
10,121
|
|
$
|
10,219
|
|
$
|
10,602
|
|
Loans sold, servicing retained
|
|
|
2,110
|
|
|
3,464
|
|
|
1,786
|
|
Amortization
|
|
|
(2,098)
|
|
|
(3,562)
|
|
|
(2,169)
|
|
Carrying value before valuation allowance at end of period
|
|
|
10,133
|
|
|
10,121
|
|
|
10,219
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
(2,288)
|
|
|
(1,529)
|
|
|
(1,125)
|
|
Impairment recovery (charges)
|
|
|
1,261
|
|
|
(759)
|
|
|
(404)
|
|
Balance at end of period
|
|
|
(1,027)
|
|
|
(2,288)
|
|
|
(1,529)
|
|
Net carrying value of MSRs at end of period
|
|
$
|
9,106
|
|
$
|
7,833
|
|
$
|
8,690
|
|
Fair value of MSRs at end of period
|
|
$
|
9,686
|
|
$
|
7,833
|
|
$
|
8,690
|
|
- 99 - | ||
|
|
December 31
|
|
||||||||
|
|
2013
|
|
2012
|
|
||||||
|
|
Number of
|
|
|
Principal
|
|
Number of
|
|
|
Principal
|
|
Investor
|
|
Loans
|
|
|
Outstanding
|
|
Loans
|
|
|
Outstanding
|
|
|
|
(In Thousands)
|
|
||||||||
Fannie Mae
|
|
5,304
|
|
$
|
527,666
|
|
5,190
|
|
$
|
522,978
|
|
Freddie Mac
|
|
8,873
|
|
|
829,594
|
|
8,550
|
|
|
786,124
|
|
Federal Home Loan Bank
|
|
116
|
|
|
12,093
|
|
166
|
|
|
18,330
|
|
Other
|
|
26
|
|
|
1,888
|
|
21
|
|
|
1,285
|
|
Totals
|
|
14,319
|
|
$
|
1,371,241
|
|
13,927
|
|
$
|
1,328,717
|
|
|
10% Adverse
|
|
20% Adverse
|
||
|
Change
|
|
Change
|
||
|
(In Thousands)
|
||||
Assumption:
|
|
|
|
|
|
Decline in fair value from increase in prepayment rate
|
$
|
454
|
|
$
|
861
|
Declines in fair value from increase in discount rate
|
|
318
|
|
|
725
|
- 100 - | ||
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
(In Thousands)
|
|
||||
Cost:
|
|
|
|
|
|
|
|
Land
|
|
$
|
7,960
|
|
$
|
7,376
|
|
Land improvements
|
|
|
1,310
|
|
|
1,310
|
|
Buildings
|
|
|
39,716
|
|
|
39,691
|
|
Leasehold improvements
|
|
|
469
|
|
|
435
|
|
Furniture, fixtures and equipment
|
|
|
28,654
|
|
|
27,596
|
|
Construction in process
|
|
|
514
|
|
|
262
|
|
|
|
|
78,623
|
|
|
76,670
|
|
Less allowances for depreciation and amortization
|
|
|
40,026
|
|
|
37,007
|
|
|
|
$
|
38,597
|
|
$
|
39,663
|
|
2014
|
|
$
|
706
|
|
2015
|
|
|
613
|
|
2016
|
|
|
601
|
|
2017
|
|
|
512
|
|
2018
|
|
|
471
|
|
Thereafter
|
|
|
4,745
|
|
Total
|
|
$
|
7,648
|
|
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
61,525
|
|
$
|
61,525
|
|
Goodwill acquired or adjusted during the year
|
|
|
-
|
|
|
-
|
|
Ending balance
|
|
$
|
61,525
|
|
$
|
61,525
|
|
- 101 - | ||
|
|
Gross
|
|
|
|
|
|
|
|
|
|
|
Carrying
|
|
|
|
Accumulated
|
|
|
Net
|
|
|
|
Amount
|
|
|
|
Amortization
|
|
|
Value
|
|
|
(In Thousands)
|
|
||||||||
Balance as of January 1, 2011
|
$
|
12,837
|
|
$
|
|
(6,709)
|
|
$
|
6,128
|
|
Intangible assets acquired
|
|
1,465
|
|
|
|
-
|
|
|
1,465
|
|
Amortization of intangible assets
|
|
-
|
|
|
|
(1,442)
|
|
|
(1,442)
|
|
Balance as of December 31, 2011
|
|
14,302
|
|
|
|
(8,151)
|
|
|
6,151
|
|
Amortization of intangible assets
|
|
-
|
|
|
|
(1,413)
|
|
|
(1,413)
|
|
Balance as of December 31, 2012
|
|
14,302
|
|
|
|
(9,564)
|
|
|
4,738
|
|
Amortization of intangible assets
|
|
-
|
|
|
|
(1,241)
|
|
|
(1,241)
|
|
Balance as of December 31, 2013
|
$
|
14,302
|
|
$
|
|
(10,805)
|
|
$
|
3,497
|
|
2014
|
|
$
|
1,102
|
|
2015
|
|
|
687
|
|
2016
|
|
|
501
|
|
2017
|
|
|
372
|
|
2018
|
|
|
301
|
|
Thereafter
|
|
|
534
|
|
Total
|
|
$
|
3,497
|
|
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Checking and money market accounts
|
|
$
|
1,125
|
|
$
|
1,368
|
|
$
|
2,144
|
|
Savings accounts
|
|
|
90
|
|
|
116
|
|
|
249
|
|
Certificates of deposit
|
|
|
4,698
|
|
|
6,685
|
|
|
9,782
|
|
Totals
|
|
$
|
5,913
|
|
$
|
8,169
|
|
$
|
12,175
|
|
- 102 - | ||
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
(In Thousands)
|
|
||||
Non-interest bearing checking accounts
|
|
$
|
348,943
|
|
$
|
315,132
|
|
Interest bearing checking and money market accounts
|
|
|
715,939
|
|
|
664,857
|
|
Savings deposits
|
|
|
185,121
|
|
|
166,945
|
|
Retail certificates of deposit less than $100,000
|
|
|
313,335
|
|
|
342,472
|
|
Retail certificates of deposit greater than $100,000
|
|
|
172,454
|
|
|
176,029
|
|
Brokered or national certificates of deposit
|
|
|
-
|
|
|
2,037
|
|
|
|
$
|
1,735,792
|
|
$
|
1,667,472
|
|
2014
|
$
|
296,186
|
2015
|
|
87,059
|
2016
|
|
51,784
|
2017
|
|
8,980
|
2018
|
|
41,631
|
2019 and thereafter
|
|
149
|
Total
|
$
|
485,789
|
- 103 - | ||
Principal Terms
|
|
Advance
Amount |
|
Range of Maturities
|
|
Weighted
Average Interest Rate |
|
|
|
|
|
(in Thousands)
|
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
Putable advances
|
|
$
|
12,000
|
|
January 2015 to March 2018
|
|
2.72
|
%
|
Amortizable mortgage advances
|
|
|
10,520
|
|
December 2015 to September 2018
|
|
1.95
|
%
|
|
|
$
|
22,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
Putable advances
|
|
$
|
12,000
|
|
January 2015 to March 2018
|
|
2.72
|
%
|
Amortizable mortgage advances
|
|
|
796
|
|
December 2015
|
|
4.10
|
%
|
|
|
$
|
12,796
|
|
|
|
|
|
2014
|
|
$
|
1,502
|
|
2015
|
|
|
8,944
|
|
2016
|
|
|
1,212
|
|
2017
|
|
|
1,212
|
|
2018
|
|
|
11,065
|
|
Total minimum payments
|
|
|
23,935
|
|
Less amounts representing interest
|
|
|
1,415
|
|
Totals
|
|
$
|
22,520
|
|
- 104 - | ||
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
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
|
|
- 105 - | ||
|
|
Years Ended December 31
|
|
|||||
|
|
2013
|
|
2012
|
|
|||
|
|
(In Thousands, Except Percentages)
|
||||||
Securities sold under agreement to repurchase
|
|
|
|
|
|
|
|
|
Amounts outstanding at year-end
|
|
$
|
51,919
|
|
|
$
|
51,702
|
|
Year-end interest rate
|
|
|
0.31
|
%
|
|
|
0.63
|
%
|
Average daily balance during year
|
|
|
50,877
|
|
|
|
53,171
|
|
Maximum month-end balance during the year
|
|
|
57,182
|
|
|
|
57,050
|
|
Average interest rate during the year
|
|
|
0.44
|
%
|
|
|
0.70
|
%
|
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Legal and other professional fees
|
|
$
|
2,947
|
|
$
|
2,571
|
|
$
|
2,473
|
|
Marketing
|
|
|
1,563
|
|
|
1,400
|
|
|
1,392
|
|
State franchise taxes
|
|
|
2,323
|
|
|
2,495
|
|
|
2,010
|
|
REO expenses and write-downs
|
|
|
1,584
|
|
|
1,121
|
|
|
2,453
|
|
Printing and office supplies
|
|
|
449
|
|
|
527
|
|
|
502
|
|
Amortization of intangibles
|
|
|
1,241
|
|
|
1,413
|
|
|
1,442
|
|
Postage
|
|
|
531
|
|
|
567
|
|
|
674
|
|
Check charge-offs and fraud losses
|
|
|
172
|
|
|
153
|
|
|
493
|
|
Credit and collection expense
|
|
|
915
|
|
|
948
|
|
|
874
|
|
Other *
|
|
|
5,315
|
|
|
7,090
|
|
|
4,318
|
|
Total other noninterest expense
|
|
$
|
17,040
|
|
$
|
18,285
|
|
$
|
16,631
|
|
- 106 - | ||
|
|
December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Unrecognized prior service cost
|
|
$
|
78
|
|
$
|
30
|
|
$
|
46
|
|
Unrecognized actuarial losses
|
|
|
477
|
|
|
858
|
|
|
1,041
|
|
Total recognized in Accumulated Other Comprehensive Income
|
|
|
555
|
|
|
888
|
|
|
1,087
|
|
Income tax effect
|
|
|
(194)
|
|
|
(311)
|
|
|
(380)
|
|
Net amount recognized in Accumulated Other Comprehensive Income
|
|
$
|
361
|
|
$
|
577
|
|
$
|
707
|
|
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
(In Thousands)
|
|
||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
Benefit obligation at beginning of year
|
|
$
|
3,140
|
|
$
|
3,117
|
|
Service cost
|
|
|
82
|
|
|
88
|
|
Interest cost
|
|
|
118
|
|
|
120
|
|
Participant contribution
|
|
|
25
|
|
|
16
|
|
Actuarial (gains) / losses
|
|
|
(347)
|
|
|
(148)
|
|
Acquisition
|
|
|
-
|
|
|
60
|
|
Benefits paid
|
|
|
(139)
|
|
|
(113)
|
|
Benefit obligation at end of year
|
|
|
2,878
|
|
|
3,140
|
|
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
Balance at beginning of year
|
|
|
-
|
|
|
-
|
|
Employer contribution
|
|
|
114
|
|
|
97
|
|
Participant contribution
|
|
|
25
|
|
|
16
|
|
Benefits paid
|
|
|
(139)
|
|
|
(113)
|
|
Balance at end of year
|
|
|
-
|
|
|
-
|
|
Funded status at end of year
|
|
$
|
(2,878)
|
|
$
|
(3,140)
|
|
- 107 - | ||
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Service cost-benefits attributable to service during the period
|
|
$
|
82
|
|
$
|
88
|
|
$
|
73
|
|
Interest cost on accumulated postretirement benefit obligation
|
|
|
118
|
|
|
120
|
|
|
128
|
|
Net amortization and deferral
|
|
|
46
|
|
|
51
|
|
|
25
|
|
Net periodic postretirement benefit cost
|
|
|
246
|
|
|
259
|
|
|
226
|
|
Net (gain) / loss during the year
|
|
|
(347)
|
|
|
(148)
|
|
|
537
|
|
Impact of prior year acquisition
|
|
|
60
|
|
|
-
|
|
|
-
|
|
Amortization of prior service cost and actuarial losses
|
|
|
(46)
|
|
|
(51)
|
|
|
(25)
|
|
Total recognized in comprehensive income
|
|
|
(333)
|
|
|
(199)
|
|
|
512
|
|
Total recognized in net periodic postretirement benefit
cost and other comprehensive income |
|
$
|
(87)
|
|
$
|
60
|
|
$
|
738
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Weighted average discount rates:
|
|
|
|
|
|
|
|
|
|
Used to determine benefit obligations at December 31
|
|
4.75
|
%
|
|
4.00
|
%
|
|
4.25
|
%
|
Used to determine net periodic postretirement benefit cost for years ended
December 31 |
|
4.00
|
%
|
|
4.25
|
%
|
|
5.25
|
%
|
|
|
|
|
|
|
|
|
|
|
Assumed health care cost trend rates at December 31:
|
|
|
|
|
|
|
|
|
|
Health care cost trend rate assumed for next year
|
|
7.50
|
%
|
|
8.00
|
%
|
|
7.50
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate
trend rate) |
|
5.00
|
%
|
|
5.00
|
%
|
|
4.00
|
%
|
Year that rate reaches ultimate trend rate
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
|
Expected to be Paid
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
|
2014
|
|
$
|
140
|
|
2015
|
|
|
128
|
|
2016
|
|
|
132
|
|
2017
|
|
|
160
|
|
2018
|
|
|
153
|
|
2019 through 2023
|
|
|
892
|
|
|
|
One-Percentage-Point
Increase |
|
One-Percentage-Point
Decrease |
|
||||||||
|
|
Year Ended December 31
|
|
Year Ended December 31
|
|
||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
||||
|
|
(In Thousands)
|
|
||||||||||
Effect on total of service and interest cost
|
|
$
|
28
|
|
$
|
30
|
|
$
|
(24)
|
|
$
|
(25)
|
|
Effect on postretirement benefit obligation
|
|
|
351
|
|
|
406
|
|
|
(299)
|
|
|
(344)
|
|
- 108 - | ||
|
|
December 31, 2013
|
|
|
|
|
|
|||||||||||
|
|
Actual
|
|
|
Minimum Required for
Adequately Capitalized |
|
|
Minimum Required for Well
Capitalized |
|
|||||||||
|
|
Amount
|
|
Ratio
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||
Tier 1 Capital (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
246,258
|
|
11.86
|
%
|
|
$
|
83,045
|
|
4.0
|
%
|
|
|
N/A
|
|
N/A
|
|
First Federal
|
|
$
|
235,699
|
|
11.36
|
%
|
|
$
|
82,978
|
|
4.0
|
%
|
|
$
|
103,722
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Capital (to Risk
Weighted Assets) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
246,258
|
|
13.98
|
%
|
|
$
|
70,473
|
|
4.0
|
%
|
|
|
N/A
|
|
N/A
|
|
First Federal
|
|
$
|
235,699
|
|
13.39
|
%
|
|
$
|
70,418
|
|
4.0
|
%
|
|
$
|
105,627
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital (to Risk
Weighted Assets) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
268,317
|
|
15.23
|
%
|
|
$
|
140,947
|
|
8.0
|
%
|
|
|
N/A
|
|
N/A
|
|
First Federal
|
|
$
|
257,741
|
|
14.64
|
%
|
|
$
|
140,836
|
|
8.0
|
%
|
|
$
|
176,046
|
|
10.0
|
%
|
|
(1)
|
Core capital is computed as a percentage of adjusted total assets of $2.08 billion and $2.07 billion for consolidated and the bank, respectively. Risk-based capital is computed as a percentage of total risk-weighted assets of $1.76 billion and $1.76 billion for consolidated and First Federal, respectively.
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|||||||||
|
|
Actual
|
|
|
Minimum Required for
Adequately Capitalized |
|
|
Minimum Required for Well
Capitalized |
|
|||||||||
|
|
Amount
|
|
Ratio
|
|
|
|
Amount
|
|
Ratio
|
|
|
Amount
|
|
Ratio
|
|
||
Tier 1 Capital (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
226,931
|
|
11.48
|
%
|
|
$
|
79,056
|
|
4.0
|
%
|
|
|
N/A
|
|
N/A
|
|
First Federal Bank
|
|
$
|
215,432
|
|
10.92
|
%
|
|
$
|
78,914
|
|
4.0
|
%
|
|
$
|
98,642
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Capital (to Risk
Weighted Assets) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
226,931
|
|
13.41
|
%
|
|
$
|
67,715
|
|
4.0
|
%
|
|
|
N/A
|
|
N/A
|
|
First Federal Bank
|
|
$
|
215,432
|
|
12.74
|
%
|
|
$
|
67,632
|
|
4.0
|
%
|
|
$
|
101,448
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital (to Risk
Weighted Assets) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
$
|
248,161
|
|
14.66
|
%
|
|
$
|
135,430
|
|
8.0
|
%
|
|
|
N/A
|
|
N/A
|
|
First Federal Bank
|
|
$
|
236,635
|
|
14.00
|
%
|
|
$
|
135,264
|
|
8.0
|
%
|
|
$
|
169,080
|
|
10.0
|
%
|
- 109 - | ||
|
(1)
|
Core capital is computed as a percentage of adjusted total assets of $2.00 billion and $1.99 billion for consolidated and the bank, respectively. Risk-based capital is computed as a percentage of total risk-weighted assets of $1.64 billion and $1.64 billion for consolidated and First Federal, respectively.
|
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Current:
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
7,751
|
|
$
|
7,862
|
|
$
|
3,714
|
|
State and local
|
|
|
9
|
|
|
(50)
|
|
|
(91)
|
|
Deferred
|
|
|
1,518
|
|
|
200
|
|
|
3,042
|
|
|
|
$
|
9,278
|
|
$
|
8,012
|
|
$
|
6,665
|
|
|
|
Years Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Tax expense at statutory rate (35%)
|
|
$
|
11,030
|
|
$
|
9,337
|
|
$
|
7,769
|
|
Increases (decreases) in taxes from:
|
|
|
|
|
|
|
|
|
|
|
State income tax net of federal tax benefit
|
|
|
4
|
|
|
(32)
|
|
|
(59)
|
|
Tax exempt interest income, net of TEFRA
|
|
|
(1,043)
|
|
|
(1,047)
|
|
|
(926)
|
|
Bank owned life insurance
|
|
|
(449)
|
|
|
(374)
|
|
|
(230)
|
|
Stock option expense
|
|
|
12
|
|
|
22
|
|
|
36
|
|
Captive insurance
|
|
|
(415)
|
|
|
-
|
|
|
-
|
|
Other
|
|
|
139
|
|
|
106
|
|
|
75
|
|
Totals
|
|
$
|
9,278
|
|
$
|
8,012
|
|
$
|
6,665
|
|
- 110 - | ||
|
|
December 31
|
|
||||
|
|
2013
|
|
2012
|
|
||
|
|
(In Thousands)
|
|
||||
Deferred federal income tax assets:
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
8,798
|
|
$
|
9,349
|
|
Postretirement benefit costs
|
|
|
1,013
|
|
|
1,078
|
|
Deferred compensation
|
|
|
1,412
|
|
|
1,095
|
|
Impaired loans
|
|
|
986
|
|
|
1,531
|
|
Capital loss carry-forward
|
|
|
555
|
|
|
596
|
|
Impaired investments
|
|
|
971
|
|
|
846
|
|
Accrued vacation
|
|
|
581
|
|
|
499
|
|
Allowance for real estate held for sale losses
|
|
|
277
|
|
|
484
|
|
Deferred loan origination fees and costs
|
|
|
265
|
|
|
251
|
|
Other
|
|
|
718
|
|
|
844
|
|
Total deferred federal income tax assets
|
|
|
15,576
|
|
|
16,573
|
|
|
|
|
|
|
|
|
|
Deferred federal income tax liabilities:
|
|
|
|
|
|
|
|
FHLB stock dividends
|
|
|
3,238
|
|
|
3,259
|
|
Goodwill
|
|
|
4,586
|
|
|
4,293
|
|
Mortgage servicing rights
|
|
|
3,211
|
|
|
2,742
|
|
Fixed assets
|
|
|
1,693
|
|
|
1,353
|
|
Other intangible assets
|
|
|
607
|
|
|
954
|
|
Loan mark to market
|
|
|
515
|
|
|
766
|
|
Net unrealized gains on available-for-sale securities
|
|
|
488
|
|
|
2,612
|
|
Prepaid expenses
|
|
|
617
|
|
|
464
|
|
Other
|
|
|
56
|
|
|
52
|
|
Total deferred federal income tax liabilities
|
|
|
15,011
|
|
|
16,495
|
|
Net deferred federal income tax asset (liability)
|
|
$
|
565
|
|
$
|
78
|
|
- 111 - | ||
Balance at January 1, 2011
|
|
$
|
281
|
|
Additions based on tax positions related to the current year
|
|
|
-
|
|
Additions for tax positions of prior years
|
|
|
-
|
|
Reductions for tax positions of prior years
|
|
|
-
|
|
Reductions due to the statute of limitations
|
|
|
(140)
|
|
Settlements
|
|
|
-
|
|
Balance at December 31, 2011
|
|
$
|
141
|
|
|
|
|
|
|
Balance at January 1, 2012
|
|
$
|
141
|
|
Additions based on tax positions related to the current year
|
|
|
-
|
|
Additions for tax positions of prior years
|
|
|
-
|
|
Reductions for tax positions of prior years
|
|
|
-
|
|
Reductions due to the statute of limitations
|
|
|
(76)
|
|
Settlements
|
|
|
-
|
|
Balance at December 31, 2012
|
|
$
|
65
|
|
|
|
|
|
|
Balance at January 1, 2013
|
|
$
|
65
|
|
Additions based on tax positions related to the current year
|
|
|
-
|
|
Additions for tax positions of prior years
|
|
|
-
|
|
Reductions for tax positions of prior years
|
|
|
-
|
|
Reductions due to the statute of limitations
|
|
|
(65)
|
|
Settlements
|
|
|
-
|
|
Balance at December 31, 2013
|
|
$
|
-
|
|
- 112 - | ||
- 113 - | ||
- 114 - | ||
Stock options:
|
|
Options
Outstanding |
|
Weighted
Average Exercise Price |
|
Weighted
Average Remaining Contractual Term (in years) |
|
Aggregate
Intrinsic Value (in 000’s) |
|
||
Options outstanding, January 1, 2013
|
|
312,350
|
|
$
|
20.33
|
|
|
|
|
|
|
Forfeited or cancelled
|
|
(22,000)
|
|
|
22.31
|
|
|
|
|
|
|
Exercised
|
|
(39,330)
|
|
|
16.55
|
|
|
|
|
|
|
Granted
|
|
-
|
|
|
-
|
|
|
|
|
|
|
Options outstanding, December 31, 2013
|
|
251,020
|
|
$
|
20.75
|
|
3.16
|
|
$
|
1,415
|
|
Vested or expected to vest at
December 31, 2013 |
|
251,020
|
|
$
|
20.75
|
|
3.16
|
|
$
|
1,415
|
|
Exercisable at December 31, 2013
|
|
240,350
|
|
$
|
21.26
|
|
3.06
|
|
$
|
1,239
|
|
|
|
Year Ended December 31
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share amounts)
|
|
|||||||
Intrinsic value of options exercised
|
|
$
|
310
|
|
$
|
4
|
|
$
|
1
|
|
Cash received from option exercises
|
|
|
350
|
|
|
5
|
|
|
11
|
|
Tax benefit realized from option exercises
|
|
|
54
|
|
|
-
|
|
|
-
|
|
Weighted average fair value of options granted
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Restricted Stock Units
|
|
Stock Grants
|
|
||||||
|
|
|
|
Weighted-Average
|
|
|
|
Weighted-Average
|
|
||
|
|
|
|
Grant Date
|
|
|
|
Grant Date
|
|
||
Unvested Shares
|
|
Shares
|
|
Fair Value
|
|
Shares
|
|
Fair Value
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Unvested at January 1, 2013
|
|
38,871
|
|
$
|
14.74
|
|
11,260
|
|
$
|
13.28
|
|
Granted
|
|
91,187
|
|
|
19.42
|
|
20,639
|
|
|
15.77
|
|
Vested
|
|
(20,639)
|
|
|
15.77
|
|
(31,899)
|
|
|
14.89
|
|
Forfeited
|
|
(3,358)
|
|
|
11.97
|
|
-
|
|
|
-
|
|
Unvested at December 31, 2013
|
|
106,061
|
|
$
|
18.66
|
|
-
|
|
$
|
-
|
|
- 115 - | ||
|
|
December 31
|
|
||||
Statements of Financial Condition
|
|
2013
|
|
2012
|
|
||
|
|
(In Thousands)
|
|
||||
Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
8,228
|
|
$
|
8,884
|
|
Available for Sale Securities
|
|
|
-
|
|
|
1,002
|
|
Investment in banking subsidiary
|
|
|
285,813
|
|
|
270,444
|
|
Investment in non-bank subsidiaries
|
|
|
13,518
|
|
|
13,034
|
|
Other assets
|
|
|
1,774
|
|
|
1,766
|
|
Total assets
|
|
$
|
309,333
|
|
$
|
295,130
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
Subordinated debentures
|
|
$
|
36,083
|
|
$
|
36,083
|
|
Accrued liabilities
|
|
|
1,103
|
|
|
919
|
|
Stockholders’ equity
|
|
|
272,147
|
|
|
258,128
|
|
Total liabilities and stockholders’ equity
|
|
$
|
309,333
|
|
$
|
295,130
|
|
|
|
Years Ended December 31
|
|
|||||||
Statements of Income
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
Dividends from subsidiaries
|
|
$
|
4,500
|
|
$
|
37,300
|
|
$
|
-
|
|
Interest on investments
|
|
|
18
|
|
|
12
|
|
|
8
|
|
Interest expense
|
|
|
(601)
|
|
|
(971)
|
|
|
(1,278)
|
|
Other income
|
|
|
1
|
|
|
-
|
|
|
1
|
|
Noninterest expense
|
|
|
(853)
|
|
|
(1,013)
|
|
|
(690)
|
|
Income (loss) before income taxes and equity in
earnings of subsidiaries |
|
|
3,065
|
|
|
35,328
|
|
|
(1,959)
|
|
Income tax credit
|
|
|
(415)
|
|
|
(669)
|
|
|
(665)
|
|
Income (loss) before equity in earnings of subsidiaries
|
|
|
3,480
|
|
|
35,997
|
|
|
(1,294)
|
|
Undistributed equity in (distributions in excess of)
earnings of subsidiaries |
|
|
18,755
|
|
|
(17,333)
|
|
|
16,828
|
|
Net income
|
|
$
|
22,235
|
|
$
|
18,664
|
|
$
|
15,534
|
|
Comprehensive income
|
|
$
|
18,506
|
|
$
|
18,941
|
|
$
|
19,873
|
|
- 116 - | ||
|
|
Years Ended December 31
|
|
|||||||
Statements of Cash Flows
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
(In Thousands)
|
|
|||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
22,235
|
|
$
|
18,664
|
|
$
|
15,534
|
|
Adjustments to reconcile net income to
net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
Distribution in excess of (undistributed
equity in) earnings of subsidiaries |
|
|
(18,755)
|
|
|
17,333
|
|
|
(16,828)
|
|
Change in other assets and liabilities
|
|
|
176
|
|
|
97
|
|
|
109
|
|
Net cash provided by (used in) operating activities
|
|
|
3,656
|
|
|
36,094
|
|
|
(1,185)
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
Investment in non-bank subsidiary
|
|
|
-
|
|
|
(250)
|
|
|
(4,785)
|
|
Purchase of available-for-sale securities
|
|
|
-
|
|
|
-
|
|
|
(2,000)
|
|
Sale of available-for-sale securities
|
|
|
1,002
|
|
|
1,000
|
|
|
-
|
|
Net cash (used in) provided by investing activities
|
|
|
1,002
|
|
|
750
|
|
|
(6,785)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
Repurchase of common stock
|
|
|
(1,821)
|
|
|
-
|
|
|
-
|
|
Cash dividends paid
|
|
|
(3,907)
|
|
|
(3,086)
|
|
|
(2,331)
|
|
Stock Options Exercised
|
|
|
350
|
|
|
4
|
|
|
11
|
|
Treasury stock sales
|
|
|
64
|
|
|
14
|
|
|
29
|
|
Proceeds from issuance of common stock
|
|
|
-
|
|
|
-
|
|
|
19,859
|
|
Preferred Stock payoff
|
|
|
-
|
|
|
(36,358)
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
(5,314)
|
|
|
(39,426)
|
|
|
17,568
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(656)
|
|
|
(2,582)
|
|
|
9,598
|
|
Cash and cash equivalents at beginning of year
|
|
|
8,884
|
|
|
11,466
|
|
|
1,868
|
|
Cash and cash equivalents at end of year
|
|
$
|
8,228
|
|
$
|
8,884
|
|
$
|
11,466
|
|
- 117 - | ||
|
⋅
|
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.
|
|
|
|
|
⋅
|
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 than 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.
|
|
|
|
|
⋅
|
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.
|
- 118 - | ||
- 119 - | ||
December 31, 2013
|
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
|
Total Fair
Value |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of U.S. Government
corporations and agencies |
|
$
|
-
|
|
$
|
4,921
|
|
$
|
-
|
|
$
|
4,921
|
|
Mortgage-backed - residential
|
|
|
-
|
|
|
41,292
|
|
|
-
|
|
|
41,292
|
|
Collateralized mortgage obligations
|
|
|
-
|
|
|
59,841
|
|
|
-
|
|
|
59,841
|
|
Trust preferred stock
|
|
|
1,654
|
|
|
-
|
|
|
582
|
|
|
2,236
|
|
Preferred stock
|
|
|
718
|
|
|
-
|
|
|
-
|
|
|
718
|
|
Corporate bonds
|
|
|
-
|
|
|
8,942
|
|
|
-
|
|
|
8,942
|
|
Obligations of state and political
subdivisions |
|
|
-
|
|
|
80,220
|
|
|
|
|
|
80,220
|
|
Mortgage banking derivative - asset
|
|
|
-
|
|
|
295
|
|
|
-
|
|
|
295
|
|
Mortgage banking derivative - liability
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
|
Total Fair
Value |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of U.S. Government
corporations and agencies |
|
$
|
-
|
|
$
|
11,069
|
|
$
|
-
|
|
$
|
11,069
|
|
U.S. treasury bonds
|
|
|
-
|
|
|
1,002
|
|
|
-
|
|
|
1,002
|
|
Mortgage-backed - residential
|
|
|
-
|
|
|
31,461
|
|
|
-
|
|
|
31,461
|
|
Collateralized mortgage obligations
|
|
|
-
|
|
|
57,466
|
|
|
-
|
|
|
57,466
|
|
Trust preferred stock
|
|
|
-
|
|
|
-
|
|
|
1,474
|
|
|
1,474
|
|
Preferred stock
|
|
|
134
|
|
|
-
|
|
|
-
|
|
|
134
|
|
Corporate bonds
|
|
|
-
|
|
|
8,884
|
|
|
-
|
|
|
8,884
|
|
Obligations of state and political subdivisions
|
|
|
-
|
|
|
82,611
|
|
|
-
|
|
|
82,611
|
|
Mortgage banking derivative - asset
|
|
|
-
|
|
|
950
|
|
|
-
|
|
|
950
|
|
Mortgage banking derivative - liability
|
|
|
-
|
|
|
(94)
|
|
|
-
|
|
|
(94)
|
|
- 120 - | ||
|
|
Fair Value Measurements Using Significant
|
|
||||
|
|
Unobservable Inputs (Level 3)
|
|
||||
|
|
(In Thousands)
|
|
||||
|
|
2013
|
|
2012
|
|
||
Beginning balance
|
|
$
|
1,474
|
|
$
|
1,342
|
|
Total gains or losses (realized/unrealized)
|
|
|
|
|
|
|
|
Included in earnings (realized)
|
|
|
(337)
|
|
|
76
|
|
Included in other comprehensive income
(presented gross of taxes) |
|
|
1,099
|
|
|
322
|
|
Amortization
|
|
|
-
|
|
|
-
|
|
Redemption
|
|
|
-
|
|
|
(266)
|
|
Transfers in and/or out of Level 3
|
|
|
(1,654)
|
|
|
-
|
|
Ending balance
|
|
$
|
582
|
|
$
|
1,474
|
|
|
|
Changes in Unrealized Gains/Losses Recorded in Earnings
|
|
|||||||
|
|
For the Year Relating to Level 3 Assets Still Held at Reporting
|
|
|||||||
|
|
Date for the Year Ended December 31
|
|
|||||||
|
|
(In Thousands)
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust Preferred Stock
|
|
|||||||
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
Interest income on securities
|
|
$
|
83
|
|
$
|
160
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
Other changes in fair value
|
|
|
(420)
|
|
|
(84)
|
|
|
(73)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(337)
|
|
$
|
76
|
|
$
|
(2)
|
|
- 121 - | ||
December 31, 2013
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
|
Total Fair
Value |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family Residential Real Estate
|
|
$
|
-
|
|
$
|
-
|
|
$
|
259
|
|
$
|
259
|
|
Multi Family Residential
|
|
|
-
|
|
|
-
|
|
|
338
|
|
|
338
|
|
Commercial Real Estate
|
|
|
-
|
|
|
-
|
|
|
9,590
|
|
|
9,590
|
|
Home Equity and Improvement
|
|
|
-
|
|
|
-
|
|
|
531
|
|
|
531
|
|
Total impaired loans
|
|
|
-
|
|
|
-
|
|
|
10,718
|
|
|
10,718
|
|
Mortgage servicing rights
|
|
|
-
|
|
|
1,370
|
|
|
-
|
|
|
1,370
|
|
Real estate held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
-
|
|
|
-
|
|
|
112
|
|
|
112
|
|
CRE
|
|
|
-
|
|
|
-
|
|
|
1,278
|
|
|
1,278
|
|
Total Real Estate held for sale
|
|
|
-
|
|
|
-
|
|
|
1,390
|
|
|
1,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
|
Total Fair
Value |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
||||||||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 FamilyResidential Real Estate
|
|
$
|
-
|
|
$
|
-
|
|
$
|
599
|
|
$
|
599
|
|
Multi Family Residential
|
|
|
-
|
|
|
-
|
|
|
407
|
|
|
407
|
|
Commercial Real Estate
|
|
|
-
|
|
|
-
|
|
|
12,126
|
|
|
12,126
|
|
Commercial
|
|
|
-
|
|
|
-
|
|
|
771
|
|
|
771
|
|
Home Equity and Improvement
|
|
|
-
|
|
|
-
|
|
|
168
|
|
|
168
|
|
Total Impaired loans
|
|
|
-
|
|
|
-
|
|
|
14,071
|
|
|
14,071
|
|
Mortgage servicing rights
|
|
|
-
|
|
|
7,833
|
|
|
-
|
|
|
7,833
|
|
Real estate held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
-
|
|
|
-
|
|
|
61
|
|
|
61
|
|
CRE
|
|
|
-
|
|
|
-
|
|
|
385
|
|
|
385
|
|
Total Real Estate held for sale
|
|
|
-
|
|
|
-
|
|
|
446
|
|
|
446
|
|
- 122 - | ||
|
|
Fair
Value |
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range of
Inputs |
|
|
Weighted
Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust preferred stock
|
|
$
|
582
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
2-40
|
%
|
|
40
|
%
|
|
|
|
|
|
|
|
|
Expected asset default
|
|
0-30
|
%
|
|
15
|
%
|
|
|
|
|
|
|
|
|
Expected recoveries
|
|
10-15
|
%
|
|
10
|
%
|
|
Impaired Loans- Applies to all loan classes
|
|
$
|
10,718
|
|
Appraisals which utilize sales comparison, net income and cost approach
|
|
Discounts for collection issues and changes in market conditions
|
|
0-10
|
%
|
|
10
|
%
|
|
Real estate held for sale Applies to all classes
|
|
$
|
1,390
|
|
Appraisals which utilize sales comparison, net income and cost approach
|
|
Discounts for changes in market conditions
|
|
0-20
|
%
|
|
20
|
%
|
|
|
|
Fair
Value |
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range of
Inputs |
|
|
Weighted
Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust preferred stock
|
|
$
|
1,474
|
|
Discounted cash flow
|
|
Constant prepayment rate
|
|
2-40
|
%
|
|
40
|
%
|
|
|
|
|
|
|
|
|
Expected asset default
|
|
0-30
|
%
|
|
15
|
%
|
|
|
|
|
|
|
|
|
Expected recoveries
|
|
10-15
|
%
|
|
10
|
%
|
|
Impaired Loans- Applies to all loan classes
|
|
$
|
14,071
|
|
Appraisals which utilize sales comparison, net income and cost approach
|
|
Discounts for collection issues and changes in market conditions
|
|
0-10
|
%
|
|
10
|
%
|
|
Real estate held for sale Applies to all classes
|
|
$
|
446
|
|
Appraisals which utilize sales comparison, net income and cost approach
|
|
Discounts for changes in market conditions
|
|
0-20
|
%
|
|
20
|
%
|
|
- 123 - | ||
- 124 - | ||
|
|
Fair Value Measurements at December 31, 2013
(In Thousands) |
|
|||||||||||||
|
|
Carrying
Value |
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
179,318
|
|
$
|
179,318
|
|
$
|
179,318
|
|
$
|
-
|
|
$
|
-
|
|
Investment securities
|
|
|
198,557
|
|
|
198,563
|
|
|
2,372
|
|
|
195,609
|
|
|
582
|
|
Federal Home Loan Bank Stock
|
|
|
19,350
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Loans, net, including loans
held for sale |
|
|
1,564,618
|
|
|
1,568,929
|
|
|
-
|
|
|
9,140
|
|
|
1,559,789
|
|
Accrued interest receivable
|
|
|
5,778
|
|
|
5,778
|
|
|
4
|
|
|
696
|
|
|
5,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,735,792
|
|
$
|
1,738,216
|
|
$
|
348,943
|
|
$
|
1,389,273
|
|
$
|
-
|
|
Advances from Federal Home
Loan Bank |
|
|
22,520
|
|
|
22,713
|
|
|
-
|
|
|
22,713
|
|
|
-
|
|
Securities sold under repurchase
agreements |
|
|
51,919
|
|
|
51,919
|
|
|
-
|
|
|
51,919
|
|
|
-
|
|
Subordinated debentures
|
|
|
36,083
|
|
|
35,237
|
|
|
-
|
|
|
-
|
|
|
35,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2012
(In Thousands) |
|
|||||||||||||
|
|
Carrying
Value |
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
136,832
|
|
$
|
136,832
|
|
$
|
136,832
|
|
$
|
-
|
|
$
|
-
|
|
Investment securities
|
|
|
194,609
|
|
|
194,617
|
|
|
134
|
|
|
193,009
|
|
|
1,474
|
|
Federal Home Loan Bank Stock
|
|
|
20,655
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Loans, net, including loans
held for sale |
|
|
1,520,610
|
|
|
1,543,438
|
|
|
-
|
|
|
22,577
|
|
|
1,520,861
|
|
Accrued interest receivable
|
|
|
5,594
|
|
|
5,594
|
|
|
-
|
|
|
757
|
|
|
4,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,667,472
|
|
$
|
1,671,713
|
|
$
|
315,132
|
|
$
|
1,356,581
|
|
$
|
-
|
|
Advances from Federal Home
Loan Bank |
|
|
12,796
|
|
|
13,466
|
|
|
-
|
|
|
13,466
|
|
|
-
|
|
Securities sold under repurchase
agreements |
|
|
51,702
|
|
|
51,702
|
|
|
-
|
|
|
51,702
|
|
|
-
|
|
Subordinated debentures
|
|
|
36,083
|
|
|
35,766
|
|
|
-
|
|
|
-
|
|
|
35,766
|
|
- 125 - | ||
|
|
December 31, 2013
|
|
December 31, 2012
|
|
||||||||||||||
|
|
Assets
|
|
(Liabilities)
|
|
|
|
Assets
|
|
(Liabilities)
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Derivative
|
|
|
|
|
|
|
|
Derivative
|
|
||
|
|
Carrying
|
|
Carrying
|
|
Net Carrying
|
|
Carrying
|
|
Carrying
|
|
Net Carrying
|
|
||||||
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
Value
|
|
||||||
|
|
(In Thousands)
|
|
||||||||||||||||
Derivatives not designated as
hedging instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking
Derivatives |
|
$
|
295
|
|
$
|
-
|
|
$
|
295
|
|
$
|
950
|
|
$
|
(94)
|
|
$
|
856
|
|
|
|
Twelve Months Ended December 31,
|
|
|||||||
|
|
2013
|
|
2012
|
|
2011
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
|||||||
Derivatives not designated as hedging
instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking Derivatives Gain (Loss)
|
|
$
|
(526)
|
|
$
|
249
|
|
$
|
252
|
|
- 126 - | ||
|
|
Three Months Ended
|
|
||||||||||
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands, Except Per Share Amounts)
|
|
||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
18,476
|
|
$
|
18,732
|
|
$
|
18,836
|
|
$
|
18,737
|
|
Interest expense
|
|
|
1,949
|
|
|
1,814
|
|
|
1,680
|
|
|
1,727
|
|
Net interest income
|
|
|
16,527
|
|
|
16,918
|
|
|
17,156
|
|
|
17,010
|
|
Provision for loan losses
|
|
|
425
|
|
|
448
|
|
|
476
|
|
|
475
|
|
Net interest income after provision for
loan losses |
|
|
16,102
|
|
|
16,470
|
|
|
16,680
|
|
|
16,535
|
|
Gain on sale, call or write-down of securities
|
|
|
53
|
|
|
44
|
|
|
-
|
|
|
(337)
|
|
Noninterest income
|
|
|
8,909
|
|
|
7,804
|
|
|
7,289
|
|
|
6,808
|
|
Noninterest expense
|
|
|
17,199
|
|
|
15,674
|
|
|
16,045
|
|
|
15,926
|
|
Income before income taxes
|
|
|
7,865
|
|
|
8,644
|
|
|
7,924
|
|
|
7,080
|
|
Income taxes
|
|
|
2,306
|
|
|
2,535
|
|
|
2,445
|
|
|
1,992
|
|
Net income
|
|
$
|
5,559
|
|
$
|
6,109
|
|
$
|
5,479
|
|
$
|
5,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared on Preferred Shares
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Accretion on Preferred Shares
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Net income applicable to common shares
|
|
$
|
5,559
|
|
$
|
6,109
|
|
$
|
5,479
|
|
$
|
5,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.57
|
|
$
|
0.63
|
|
$
|
0.56
|
|
$
|
0.52
|
|
Diluted
|
|
$
|
0.55
|
|
$
|
0.60
|
|
$
|
0.54
|
|
$
|
0.50
|
|
Average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,736
|
|
|
9,774
|
|
|
9,780
|
|
|
9,766
|
|
Diluted
|
|
|
10,105
|
|
|
10,156
|
|
|
10,212
|
|
|
10,198
|
|
- 127 - | ||
|
|
Three Months Ended
|
|
||||||||||
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
|
||||
|
|
(In Thousands, Except Per Share Amounts)
|
|
||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
20,754
|
|
$
|
20,519
|
|
$
|
20,098
|
|
$
|
19,572
|
|
Interest expense
|
|
|
3,555
|
|
|
3,273
|
|
|
2,923
|
|
|
2,186
|
|
Net interest income
|
|
|
17,199
|
|
|
17,246
|
|
|
17,175
|
|
|
17,386
|
|
Provision for loan losses
|
|
|
3,503
|
|
|
4,097
|
|
|
705
|
|
|
2,619
|
|
Net interest income after provision for
loan losses |
|
|
13,696
|
|
|
13,149
|
|
|
16,470
|
|
|
14,767
|
|
Gain on sale, call or write-down of securities
|
|
|
43
|
|
|
382
|
|
|
103
|
|
|
1,606
|
|
Noninterest income
|
|
|
8,376
|
|
|
7,612
|
|
|
7,677
|
|
|
8,575
|
|
Noninterest expense
|
|
|
16,259
|
|
|
15,532
|
|
|
16,450
|
|
|
17,539
|
|
Income before income taxes
|
|
|
5,856
|
|
|
5,611
|
|
|
7,800
|
|
|
7,409
|
|
Income taxes
|
|
|
1,703
|
|
|
1,690
|
|
|
2,366
|
|
|
2,253
|
|
Net income
|
|
$
|
4,153
|
|
$
|
3,921
|
|
$
|
5,434
|
|
$
|
5,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared on Preferred Shares
|
|
|
(462)
|
|
|
(435)
|
|
|
(3)
|
|
|
-
|
|
Accretion on Preferred Shares
|
|
|
(46)
|
|
|
(305)
|
|
|
(8)
|
|
|
-
|
|
Redemption of Preferred Shares
|
|
|
-
|
|
|
642
|
|
|
-
|
|
|
-
|
|
Net income applicable to common shares
|
|
$
|
3,645
|
|
$
|
3,823
|
|
$
|
5,423
|
|
$
|
5,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.37
|
|
$
|
0.39
|
|
$
|
0.56
|
|
$
|
0.53
|
|
Diluted
|
|
$
|
0.37
|
|
$
|
0.38
|
|
$
|
0.54
|
|
$
|
0.52
|
|
Average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
9,726
|
|
|
9,729
|
|
|
9,729
|
|
|
9,729
|
|
Diluted
|
|
|
9,970
|
|
|
9,985
|
|
|
10,000
|
|
|
10,012
|
|
- 128 - | ||
- 129 - | ||
|
|
Before Tax
|
|
Tax Expense
|
|
Net of Tax
|
|
|||
|
|
Amount
|
|
(Benefit)
|
|
Amount
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2013:
|
|
(In Thousands)
|
|
|||||||
Securities available for sale and transferred securities:
|
|
|
|
|
|
|
|
|
|
|
Change in net unrealized gain/loss during the period
|
|
$
|
(6,309)
|
|
$
|
(2,216)
|
|
$
|
(4,093)
|
|
Reclassification adjustment for net (gains) losses included in net income
|
|
|
240
|
|
|
92
|
|
|
148
|
|
Change in postretirement benefit obligation
|
|
|
333
|
|
|
117
|
|
|
216
|
|
Total other comprehensive income (loss)
|
|
$
|
(5,736)
|
|
$
|
(2,007)
|
|
$
|
(3,729)
|
|
|
|
Before Tax
|
|
Tax Expense
|
|
Net of Tax
|
|
|||
|
|
Amount
|
|
(Benefit)
|
|
Amount
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2012:
|
|
(In Thousands)
|
|
|||||||
Securities available for sale and transferred securities:
|
|
|
|
|
|
|
|
|
|
|
Change in net unrealized gain/loss during the period
|
|
$
|
2,360
|
|
$
|
846
|
|
$
|
1,514
|
|
Reclassification adjustment for net (gains) losses included in net income
|
|
|
(2,134)
|
|
|
(767)
|
|
|
(1,367)
|
|
Change in postretirement benefit obligation
|
|
|
199
|
|
|
69
|
|
|
130
|
|
Total other comprehensive income (loss)
|
|
$
|
425
|
|
$
|
148
|
|
$
|
277
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Securities
|
|
|
Post-
|
|
|
Other
|
|
|
|||
|
|
Available
|
|
|
retirement
|
|
|
Comprehensive
|
|
|
|||
|
|
For Sale
|
|
|
Benefit
|
|
|
Income
|
|
|
|||
|
|
(In Thousands)
|
|
|
|||||||||
Balance January 1, 2013
|
|
$
|
4,851
|
|
|
$
|
(577)
|
|
|
$
|
4,274
|
|
|
Other comprehensive loss before
reclassifications |
|
|
(4,093)
|
|
|
|
216
|
|
|
|
(3,877)
|
|
|
Amounts reclassified from accumulated other
comprehensive loss |
|
|
148
|
|
|
|
-
|
|
|
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive loss during period
|
|
|
(3,945)
|
|
|
|
216
|
|
|
|
(3,729)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance December 31, 2013
|
|
$
|
906
|
|
|
$
|
(361)
|
|
|
$
|
545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance January 1, 2012
|
|
$
|
4,704
|
|
|
$
|
(707)
|
|
|
$
|
3,997
|
|
|
Other comprehensive loss before
reclassifications |
|
|
1,514
|
|
|
|
130
|
|
|
|
1,644
|
|
|
Amounts reclassified from accumulated other
comprehensive loss |
|
|
(1,367)
|
|
|
|
-
|
|
|
|
(1,367)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other comprehensive loss during period
|
|
|
147
|
|
|
|
130
|
|
|
|
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance December 31, 2012
|
|
$
|
4,851
|
|
|
$
|
(577)
|
|
|
$
|
4,274
|
|
|
- 130 - | ||
- 131 - | ||
- 132 - | ||
|
|
|
|
|
|
|
Number of Securities
|
|
|
|
|
|
|
|
|
Remaining Available
|
|
|
|
|
|
|
|
|
for Future Issuance
|
|
|
|
Number of securities to
|
|
|
|
Under Equity
|
|
|
|
|
be Issued Upon
|
|
Weighted Average
|
|
Compensation Plans
|
|
|
|
|
Exercise of Outstanding
|
|
Exercise Price of
|
|
(Excluding Securities
|
|
|
|
|
Options, Warrants and
|
|
Outstanding Options,
|
|
Reflected in Column
|
|
|
Plan Category
|
|
Rights
|
|
Warrants and Rights
|
|
(a))
|
|
|
|
|
(a)
|
|
(b)
|
|
(c)
|
|
|
Equity Compensation Plans Approved by Security Holders
|
|
251,020
|
|
$
|
20.75
|
|
202,405
|
|
- 133 - | ||
Item 15. | Exhibits, Financial Statement Schedules |
(a) | Financial Statements |
(1) | The following documents are filed as Item 8 of this Form 10-K. |
(A) | Report of Independent Registered Public Accounting Firm (Crowe Horwath LLP) |
(B) | Consolidated Statements of Financial Condition as of December 31, 2013 and 2012 |
(C) | Consolidated Statements of Income for the years ended December 31, 2013, 2012 and 2011 |
(D) | Consolidated Statements of Comprehensive Income for the years ended December 31, 2013, 2012 and 2011 |
(E) | Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2013, 2012 and 2011 |
(F) | Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011 |
(G) | Notes to Consolidated Financial Statements |
(2) | Separate financial statement schedules are not being filed because of the absence of conditions under which they are required or because the required information is included in the consolidated financial statements or the related notes. |
(3) | The exhibits required by this item are listed in the Exhibit Index of this Form 10-K. The management contracts and compensation plans or arrangements required to be filed with this Form 10-K are listed as Exhibits 10.1 through 10.35. |
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FIRST DEFIANCE FINANCIAL CORP.
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February 28, 2014
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By:
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/s/ Kevin T. Thompson
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Kevin T. Thompson, Chief Financial Officer
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Signature
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Title
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/s/ William J. Small
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Chairman of the Board
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William J. Small
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/s/ Donald P. Hileman
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Executive Vice President and Chief
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Donald P. Hileman
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Executive Officer
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/s/ Kevin T. Thompson
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Executive Vice President and Chief
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Kevin T. Thompson
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Financial Officer (principal accounting officer)
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/s/ James L. Rohrs
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Director, Executive Vice President
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James L. Rohrs
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/s/ Stephen L. Boomer
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Director, Vice Chairman
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Stephen L. Boomer
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/s/ John L. Bookmyer
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Director
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John L. Bookmyer
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/s/ Dr. Douglas A. Burgei
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Director
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Dr. Douglas A. Burgei
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/s/ Peter A. Diehl
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Director
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Peter A. Diehl
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/s/ Barb A. Mitzel
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Director
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Barb A. Mitzel
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/s/ Jean A. Hubbard
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Director
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Jean A. Hubbard
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/s/ Samuel S. Strausbaugh
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Director
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Samuel S. Strausbaugh
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/s/ Thomas A. Voigt
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Director
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Thomas A. Voigt
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Exhibit
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Number
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Description
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3.1
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Articles of Incorporation
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(1)
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3.2
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Code of Regulations
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(1)
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3.3
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Amendment to Articles of Incorporation
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(11)
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4.1
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Agreement to furnish instruments and agreements defining rights of holders of long-term debt
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(17)
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4.2
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Form of Warrant for Purchase of Shares of Common Stock
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(15)
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10.1
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1996 Stock Option Plan
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(2)
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10.2
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Form of Incentive Stock Option Award Agreement under 2001 Plan
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(3)
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10.3
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Form of Nonqualified Stock Option Award Agreement under 1996 Plan
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(3)
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10.4
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1996 Management Recognition Plan and Trust
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(8)
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10.5
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2001 Stock Option and Incentive Plan
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(5)
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10.6
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Employment Agreement with William J. Small
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(6)
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10.7
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Employment Agreement with James L. Rohrs
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(7)
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10.8
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Employment Agreement with Donald P. Hileman
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(18)
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10.9
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Employment Agreement with Gregory R. Allen
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(9)
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10.10
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2005 Stock Option and Incentive Plan
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(10)
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10.11
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Letter Agreement, dated December 5, 2008, between First Defiance and the U.S. Treasury
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(12)
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10.12
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2008 Long Term Incentive Compensation Plan (LTIP)
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(13)
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10.13
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Form of Contingent Award Agreement under LTIP
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(14)
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10.14
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Form of Stock Option Award Agreement under 2005 Plan
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(4)
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10.15
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Amendment to all Employment Agreements for CPP
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(4)
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10.16
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Form of Agreement for CPP Compensation Standards
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(21)
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10.17
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Form of Option Award Agreement with EESA restriction under 2005 Plan
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(21)
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10.18
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First Federal Executive Group Life Plan Post Separation
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(19)
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10.19
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2010 Equity Incentive Plan
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(20)
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10.20
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Underwriting Agreement dated March 23, 2011
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(27)
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10.21
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First Defiance Deferred Compensation Plan
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(33)
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10.22
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Form of Restricted Stock Award Agreement
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(22)
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10.23
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2010 Equity Plan Form of Long-Term Incentive Plan Award Agreement
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(23)
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10.24
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2010 Equity Plan Form of Short-Term Incentive Plan Award Agreement
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(24)
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10.25
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2010 Equity Plan Form of Long-Term Incentive Plan Award Agreement (with TARP Restrictions)
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(25)
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10.26
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2010 Equity Plan Form of Short-Term Incentive Plan Award Agreement (with TARP Restrictions)
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(26)
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10.27
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First Amendment to First Defiance Financial Corp. 2010 Equity Incentive Plan
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(28)
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10.28
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First Defiance Financial Corp. and Affiliates Incentive Compensation Plan
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(29)
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10.29
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First Defiance Financial Corp. Long-Term Restricted Stock Unit Award Agreement (2012 Long Term Incentive TARP Applicable)
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(30)
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10.30
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First Defiance Financial Corp. Long-Term Restricted Stock Unit Award Agreement (2012 Long Term Incentive)
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(31)
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10.31
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Underwriting Agreement dated June 13, 2012
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(32)
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10.32
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Employment Agreement with Donald P. Hileman
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(34)
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10.33
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Employment Agreement with Kevin T. Thompson
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(35)
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10.34
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Form of Restricted Stock Award Agreement
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(36)
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10.35
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Consulting Agreement with William J. Small
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(37)
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21
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List of Subsidiaries of the Company
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(17)
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23.1
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Consent of Crowe Horwath LLP
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(17)
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31.1
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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(17)
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31.2
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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(17)
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32.1
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Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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(17)
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32.2
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Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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(17)
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101*
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Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Condensed Balance Sheet, (ii) the Consolidated Condensed Statements of Income, (iii) the Consolidated Condensed Statements of Changes in Equity, (iv) the Consolidated Condensed Statements of Cash Flows, and (v) the Notes to Consolidated Condensed Financial Statements tagged as blocks of text and in detail.
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(17)
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(1) | Incorporated herein by reference to the like numbered exhibit in the Registrant’s Form S-1 (File No. 33-93354) |
(2) | Incorporated herein by reference to like numbered exhibit in Registrant’s 2001 Form 10-K (Film No. 02580719) |
(3) | Incorporated herein by reference to like numbered exhibit in Registrant’s 2004 Form 10-K (Film No. 0568550) |
(4) | Incorporated herein by reference to like numbered exhibit in Registrant’s 2008 Form 10-K (Film No. 09683948) |
(5) | Incorporated herein by reference to Appendix B to the 2001 Proxy Statement (Film No. 1577137) |
(6) | Incorporated herein by reference to exhibit 10.1 in Form 8-K filed October 1, 2007 (Film No. 071144951) |
(7) | Incorporated herein by reference to exhibit 10.2 in Form 8-K filed October 1, 2007 (Film No. 071144951) |
(8) | Incorporated herein by reference to exhibit 10.2 in Registrant’s 2001 Form 10-K (Film No. 02580719) |
(9) | Incorporated herein by reference to exhibit 10.4 in Form 8-K filed October 1, 2007 (Film No. 071144951) |
(10) | Incorporated herein by reference to Appendix A to the 2005 Proxy Statement (Film No. 05692264) |
(11) | Incorporated herein by reference to exhibit 3 in Form 8-K filed December 8, 2008 (Film No. 081236105) |
(12) | Incorporated herein by reference to exhibit 10 in Form 8-K filed December 8, 2008 (Film No. 081236105) |
(13) | Incorporated herein by reference to exhibit 10.1 in Form 8-K filed December 12, 2008 (Film No. 081245224) |
(14) | Incorporated herein by reference to exhibit 10.2 in Form 8-K filed December 12, 2008 (Film No. 081245224) |
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(15) | Incorporated herein by reference to exhibit 4 in Form 8-K filed December 8, 2008 (Film No. 081236105) |
(17) | Included herein |
(18) | Incorporated herein by reference to exhibit 10.1 in Form 8-K filed December 16, 2009 (Film No. 091245196) |
(19) | Incorporated herein by reference to exhibit 10.1 in Form 10-Q filed November 2, 2010 (Film No. 101158262) |
(20) | Incorporated herein by reference to Annex A to 2010 Proxy Statement (Film No. 10693151) |
(21) | Incorporated herein by reference to like numbered exhibit in Registrant’s 2010 Form 10-K (Film No. 10652528) |
(22) | Incorporated herein by reference to exhibit 10.1 in Form 10-Q filed May 5, 2011 (Film No. 11803357) |
(23) | Incorporated herein by reference to exhibit 10.1 in Form 10-Q filed November 8, 2011 (Film No. 111188059) |
(24) | Incorporated herein by reference to exhibit 10.2 in Form 10-Q filed November 8, 2011 (Film No. 111188059) |
(25) | Incorporated herein by reference to exhibit 10.3 in Form 10-Q filed November 8, 2011 (Film No. 111188059) |
(26) | Incorporated herein by reference to exhibit 10.4 in Form 10-Q filed November 8, 2011 (Film No. 111188059) |
(27) | Incorporated herein by reference to exhibit 1 in Form 8-K filed March 29, 2011 (Film No. 11719267) |
(28) | Incorporated herein by reference to exhibit 10.1 in Form 8-K filed March 15, 2012 (Film No. 12694926) |
(29) | Incorporated herein by reference to exhibit 10.2 in Form 8-K filed March 15, 2012 (Film No. 12694926) |
(30) | Incorporated herein by reference to exhibit 10.3 in Form 8-K filed March 15, 2012 (Film No. 12694926) |
(31) | Incorporated herein by reference to exhibit 10.4 in Form 8-K filed March 15, 2012 (Film No. 12694926) |
(32) | Incorporated herein by reference to exhibit 1.1 in Form 8-K filed June 15, 2012 (Film No. 12910514) |
(33) | Incorporated herein by reference to exhibit 10.1 in Form 8-K filed December 23, 2005 (Film No. 051284175) |
(34) | Incorporated herein by reference to exhibit 10.1 in Form 8-K filed December 30, 2013 (Film No. 131303552) |
(35) | Incorporated herein by reference to exhibit 10.2 in Form 8-K filed December 30, 2013 (Film No. 131303552) |
(36) | Incorporated herein by reference to exhibit 10.3 in Form 8-K filed December 30, 2013 (Film No. 131303552) |
(37) | Incorporated herein by reference to exhibit 10.4 in Form 8-K filed December 30, 2013 (Film No. 131303552 |
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