x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
|
|
EXCHANGE
ACT OF 1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
OHIO
|
34-1803915
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
601
Clinton Street, Defiance, Ohio
|
43512
|
(Address
of principal executive offices)
|
(Zip
code)
|
Common
Stock, Par Value $0.01 Per
Share
|
The
Nasdaq Stock Market
|
|
(Title
of Class)
|
(Name
of each exchange on which
registered)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
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
|
$ | 6,783 | 5.22 | % | $ | 14,880 | 5.15 | % | $ | 4,834 | 5.16 | % | $ | 1,001 | 5.27 | % | $ | 27,498 | 5.19 | % | ||||||||||||||||||||
REMICs
and CMOs
|
3,429 | 4.40 | 18,669 | 4.94 | 1,080 | 4.75 | 2 | 5.00 | 23,180 | 4.85 | ||||||||||||||||||||||||||||||
U.S.
government and federal agency obligations
|
13,050 | 5.37 | 4,210 | 4.99 | 7,374 | 5.40 | − - | − | 24,634 | 5.32 | ||||||||||||||||||||||||||||||
Obligations
of states and political subdivisions (1)
|
1,013 | 4.93 | 7,959 | 4.56 | 1,550 | 5.13 | 17,625 | 4.58 | 28,147 | 4.62 | ||||||||||||||||||||||||||||||
Trust
preferred stock
|
− | − | − | 9,723 | 7.08 | 9,723 | 7.08 | |||||||||||||||||||||||||||||||||
Total
|
$ | 24,275 | $ | 45,718 | $ | 14,838 | $ | 28,351 | $ | 113,182 | ||||||||||||||||||||||||||||||
Unamortized
premiums/ (discounts)
|
(298 | ) | ||||||||||||||||||||||||||||||||||||||
Unrealized
loss on securities available for sale
|
603 | |||||||||||||||||||||||||||||||||||||||
Total
|
$ | 113,487 |
December
31
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
Thousands)
|
||||||||||||
Available-for-sale
securities:
|
||||||||||||
U.
S. treasury and federal agency obligations
|
24,918 | 36,043 | 41,065 | |||||||||
Obligations
of state and political subdivisions
|
28,819 | 25,254 | 23,818 | |||||||||
CMOs,
REMICS and mortgage-backed securities
|
49,991 | 41,207 | 40,395 | |||||||||
Trust
preferred stock
|
8,642 | 8,178 | 7,801 | |||||||||
Total
|
$ | 112,370 | $ | 110,682 | $ | 113,079 | ||||||
Held-to-maturity
securities:
|
||||||||||||
Mortgage-backed
securities
|
$ | 817 | $ | 1,081 | $ | 1,330 | ||||||
Obligations
of state and political subdivisions
|
300 | 360 | 445 | |||||||||
Total
|
$ | 1,117 | $ | 1,441 | $ | 1,775 |
December
31
|
||||||||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||||||
Percentage
|
Percentage
|
Percentage
|
||||||||||||||||||||||||||||||||||
of | of | of | ||||||||||||||||||||||||||||||||||
Number
|
Aggregate
|
Aggregate
|
Number
|
Aggregate
|
Aggregate
|
Number
|
Aggregate
|
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 5.00%
|
759 | $ | 57,448 | 8.03 | % | 810 | $ | 65,938 | 9.91 | % | 865 | $ | 74,784 | 12.41 | % | |||||||||||||||||||||
5.00%
- 5.99%
|
3,222 | 249,600 | 34.89 | 3,473 | 280,779 | 42.20 | 3,689 | 310,665 | 51.56 | |||||||||||||||||||||||||||
6.00%
- 6.99%
|
3,897 | 363,018 | 50.74 | 3,129 | 278,651 | 41.87 | 2,356 | 190,172 | 31.56 | |||||||||||||||||||||||||||
7.00%
- 7.99%
|
620 | 41,918 | 5.86 | 582 | 36,158 | 5.43 | 465 | 21,766 | 3.61 | |||||||||||||||||||||||||||
8.00%
- 8.99%
|
70 | 3,164 | 0.44 | 86 | 3,476 | 0.52 | 108 | 4,483 | 0.75 | |||||||||||||||||||||||||||
9.00%
and over
|
12 | 339 | 0.04 | 17 | 437 | 0.07 | 28 | 641 | 0.11 | |||||||||||||||||||||||||||
Total
|
8,580 | $ | 715,487 | 100.00 | % | 8,097 | $ | 665,439 | 100.00 | % | 7,511 | $ | 602,511 | 100.00 | % |
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||||||||||||||||||
Maturity
|
Number
of
Loans
|
%
of Number of Loans
|
Unpaid
Principal Amount
|
%
of Unpaid Principal Amount
|
Number
of
Loans
|
%
of Number
of
Loans
|
Unpaid
Principal Amount
|
%
of
Unpaid
Principal Amount
|
Number
of
Loans
|
%
of Number
of
Loans
|
Unpaid
Principal
Amount
|
%
of Unpaid Principal Amount
|
||||||||||||||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
1–5
years
|
546 | 6.36 | % | $ | 35,049 | 4.90 | % | 559 | 6.90 | % | $ | 40,545 | 6.09 | % | 546 | 7.27 | % | $ | 40,710 | 6.76 | % | |||||||||||||||||||||||||||
6–10
years
|
1,041 | 12.13 | 48,412 | 6.77 | 659 | 8.14 | 26,342 | 3.96 | 602 | 8.01 | 27,965 | 4.64 | ||||||||||||||||||||||||||||||||||||
11–15
years
|
1,991 | 23.21 | 134,243 | 18.76 | 2,408 | 29.74 | 163,796 | 24.61 | 2,573 | 34.26 | 177,564 | 29.47 | ||||||||||||||||||||||||||||||||||||
16–20
years
|
830 | 9.67 | 68,412 | 9.56 | 992 | 12.25 | 81,262 | 12.21 | 1,006 | 13.39 | 83,444 | 13.85 | ||||||||||||||||||||||||||||||||||||
21–25
years
|
590 | 6.88 | 49,132 | 6.87 | 338 | 4.17 | 28,604 | 4.30 | 207 | 2.76 | 17,254 | 2.86 | ||||||||||||||||||||||||||||||||||||
More
than 25 years
|
3,582 | 41.75 | 380,239 | 53.14 | 3,141 | 38.80 | 324,890 | 48.83 | 2,577 | 34.31 | 255,574 | 42.42 | ||||||||||||||||||||||||||||||||||||
Total
|
8,580 | 100.00 | % | $ | 715,487 | 100.00 | % | 8,097 | 100.00 | % | $ | 665,439 | 100.00 | % | 7,511 | 100.00 | % | $ | 602,511 | 100.00 | % |
|
Lending
Activities
|
December
31
|
||||||||||||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||||||||
Real
estate:
|
||||||||||||||||||||||||||||||||||||||||
One
to four family residential
|
$ | 231,921 | 17.9 | % | $ | 250,808 | 20.1 | % | $ | 275,497 | 23.2 | % | $ | 187,775 | 20.9 | % | $ | 162,111 | 21.6 | % | ||||||||||||||||||||
Five
or more family residential
|
56,774 | 4.4 | 57,263 | 4.6 | 50,040 | 4.2 | 39,049 | 4.4 | 30,322 | 4.0 | ||||||||||||||||||||||||||||||
Nonresidential
real estate
|
545,077 | 42.1 | 522,597 | 41.9 | 501,943 | 42.2 | 376,115 | 42.0 | 311,101 | 41.4 | ||||||||||||||||||||||||||||||
Construction
|
13,146 | 1.0 | 17,339 | 1.4 | 21,173 | 1.8 | 15,507 | 1.7 | 16,830 | 2.3 | ||||||||||||||||||||||||||||||
Total
real estate loans
|
846,918 | 65.4 | 848,007 | 68.0 | 848,653 | 71.4 | 618,446 | 69.0 | 520,364 | 69.3 | ||||||||||||||||||||||||||||||
Other:
|
||||||||||||||||||||||||||||||||||||||||
Consumer
finance
|
37,401 | 2.9 | 43,320 | 3.5 | 54,657 | 4.6 | 45,213 | 5.1 | 39,808 | 5.3 | ||||||||||||||||||||||||||||||
Commercial
|
283,072 | 21.8 | 232,914 | 18.7 | 171,289 | 14.4 | 141,644 | 15.8 | 120,677 | 16.0 | ||||||||||||||||||||||||||||||
Home
equity and improvement
|
128,080 | 9.9 | 122,789 | 9.8 | 113,000 | 9.5 | 90,839 | 10.1 | 70,038 | 9.3 | ||||||||||||||||||||||||||||||
Mobile
home
|
342 | − | 450 | − | 640 | .1 | 299 | − | 449 | 0.1 | ||||||||||||||||||||||||||||||
Total
non-real estate loans
|
448,895 | 34.6 | 399,473 | 32.0 | 339,586 | 28.6 | 277,995 | 31.0 | 230,972 | 30.7 | ||||||||||||||||||||||||||||||
Total
loans
|
1,295,813 | 100.0 | % | 1,247,480 | 100.0 | % | 1,188,239 | 100.0 | % | 896,441 | 100.0 | % | 751,336 | 100.0 | % | |||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Loans
in process
|
5,085 | 6,409 | 8,782 | 6,341 | 6,079 | |||||||||||||||||||||||||||||||||||
Deferred
loan origination fees
|
1,032 | 1,182 | 1,303 | 1,232 | 1,158 | |||||||||||||||||||||||||||||||||||
Allowance
for loan losses
|
13,890 | 13,579 | 13,673 | 9,956 | 8,844 | |||||||||||||||||||||||||||||||||||
Net
loans
|
$ | 1,275,806 | $ | 1,226,310 | $ | 1,164,481 | $ | 878,912 | $ | 735,255 |
Due
Less
than
1
|
Due
1-2
|
Due
3-5
|
Due
5-10
|
Due
10-15
|
Due
15+
|
|||||||||||||||||||||||
Years
After December 31, 2007
|
Total
|
|||||||||||||||||||||||||||
(In
Thousands)
|
||||||||||||||||||||||||||||
Real
estate
|
$ | 116,775 | $ | 60,190 | $ | 188,536 | $ | 362,424 | $ | 58,593 | $ | 60,400 | $ | 846,918 | ||||||||||||||
Non-real
estate:
|
||||||||||||||||||||||||||||
Commercial
|
149,996 | 34,782 | 67,008 | 29,491 | 1,784 | 11 | 283,072 | |||||||||||||||||||||
Home
equity and improvement
|
8,819 | 11,677 | 54,172 | 5,335 | 635 | 47,442 | 128,080 | |||||||||||||||||||||
Mobile
home
|
83 | 61 | 88 | 110 | - | − | 342 | |||||||||||||||||||||
Consumer
finance
|
14,275 | 10,209 | 12,262 | 530 | 101 | 24 | 37,401 | |||||||||||||||||||||
Total
|
$ | 289,948 | $ | 116,919 | $ | 322,066 | $ | 397,890 | $ | 61,113 | $ | 107,877 | $ | 1,295,813 |
Floating
or
|
||||||||||||
Fixed
|
Adjustable
|
|||||||||||
Rates
|
Rates
|
Total
|
||||||||||
(In
Thousands)
|
||||||||||||
Real
estate
|
$ | 106,253 | $ | 623,890 | $ | 730,143 | ||||||
Commercial
|
8,064 | 125,012 | 133,076 | |||||||||
Other
|
84,673 | 57,973 | 142,646 | |||||||||
$ | 198,990 | $ | 806,875 | $ | 1,005,865 |
Years
Ended December 31
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(In
Thousands)
|
||||||||||||
Loan
originations:
|
||||||||||||
Single
family residential
|
$ | 216,203 | $ | 162,499 | $ | 164,687 | ||||||
Multi-family
residential
|
22,119 | 71,671 | 85,733 | |||||||||
Non-residential
real estate
|
145,675 | 168,909 | 162,823 | |||||||||
Construction
|
18,633 | 24,026 | 27,637 | |||||||||
Commercial
|
243,229 | 174,081 | 133,021 | |||||||||
Home
equity and improvement
|
29,934 | 40,498 | 34,221 | |||||||||
Consumer
finance
|
23,931 | 42,162 | 50,056 | |||||||||
Total
loans originated
|
699,724 | 683,846 | 658,178 | |||||||||
Loans
acquired in acquisitions
|
− | − | 184,218 | |||||||||
Loan
reductions:
|
||||||||||||
Loan
pay-offs
|
265,367 | 242,137 | 261,046 | |||||||||
Mortgage
loans sold
|
136,413 | 134,000 | 111,345 | |||||||||
Periodic
principal repayments
|
247,296 | 250,324 | 175,220 | |||||||||
649,076 | 626,461 | 547,611 | ||||||||||
Net
increase in total loans
|
$ | 50,648 | $ | 57,385 | $ | 294,785 |
30
to 59 Days
|
60
to 89 Days
|
90
Days and Over
|
Total
|
|||||||||||||||||||||||||||||
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
|||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||
Single
– family residential
|
$ | 1,243 | 0.10 | % | $ | 564 | 0.04 | % | $ | 2,257 | 0.17 | % | $ | 4,064 | 0.31 | % | ||||||||||||||||
Nonresidential
and Multi- family residential
|
2,381 | 0.18 | 2,310 | 0.18 | 5,917 | 0.46 | 10,608 | 0.82 | ||||||||||||||||||||||||
Home
equity and improvement
|
1,351 | 0.10 | 46 | 0.00 | 351 | 0.03 | 1,748 | 0.13 | ||||||||||||||||||||||||
Consumer
finance
|
304 | 0.03 | 10 | 0.00 | 17 | 0.00 | 331 | 0.03 | ||||||||||||||||||||||||
Commercial
|
217 | 0.02 | 382 | 0.03 | 675 | 0.05 | 1,274 | 0.10 | ||||||||||||||||||||||||
Total
|
$ | 5,496 | 0.43 | % | $ | 3,312 | 0.25 | % | $ | 9,217 | 0.71 | % | $ | 18,561 | 1.39 | % |
December
31
|
||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||
Nonperforming
loans:
|
||||||||||||||||||||
Single-family
residential
|
$ | 2,608 | $ | 1,980 | $ | 2,648 | $ | 419 | $ | 471 | ||||||||||
Nonresidential
and multi-family residential real estate
|
5,917 | 4,977 | 1,917 | 1,014 | 1,092 | |||||||||||||||
Commercial
|
675 | 272 | 287 | 450 | 949 | |||||||||||||||
Mobile
home
|
− | − | − | − | − | |||||||||||||||
Consumer
finance
|
17 | 54 | 100 | 10 | 33 | |||||||||||||||
Total
nonperforming loans
|
9,217 | 7,283 | 4,952 | 1,893 | 2,545 | |||||||||||||||
Real
estate owned
|
2,410 | 2,321 | 315 | 49 | 397 | |||||||||||||||
Other
repossessed assets
|
50 | 71 | 89 | 49 | 7 | |||||||||||||||
Total
repossessed assets
|
2,460 | 2,392 | 404 | 98 | 404 | |||||||||||||||
Total
nonperforming assets
|
$ | 11,677 | $ | 9,675 | $ | 5,356 | $ | 1,991 | $ | 2,949 | ||||||||||
Troubled
debt restructurings
|
$ | 3,920 | $ | 5,590 | $ | 546 | $ | − | $ | − | ||||||||||
Total
nonperforming assets as a percentage of total assets of continuing
operations
|
0.73 | % | 0.63 | % | 0.37 | % | 0.18 | % | 0.28 | % | ||||||||||
Total
nonperforming loans and troubled debt restructurings as a percentage
of
total loans
|
0.71 | % | 0.59 | % | 0.42 | % | 0.21 | % | 0.34 | % | ||||||||||
Allowance
for loan losses as a percent of total nonperforming assets
|
118.95 | % | 140.35 | % | 255.28 | % | 500.05 | % | 299.90 | % |
Years
Ended December 31
|
||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||
Allowance
at beginning of year
|
$ | 13,579 | $ | 13,673 | $ | 9,956 | $ | 8,844 | $ | 7,496 | ||||||||||
Provision
for credit losses
|
2,306 | 1,756 | 1,442 | 1,549 | 1,719 | |||||||||||||||
Allowance
acquired in acquisitions
|
− | − | 3,027 | − | − | |||||||||||||||
Charge-offs:
|
||||||||||||||||||||
One
to four family residential real estate
|
256 | 513 | 182 | 52 | 18 | |||||||||||||||
Commercial
real estate
|
1,803 | 1,028 | 226 | 58 | 162 | |||||||||||||||
Commercial
|
99 | 177 | 267 | 390 | 375 | |||||||||||||||
Consumer
finance
|
161 | 392 | 354 | 186 | 170 | |||||||||||||||
Home
equity and improvement
|
81 | 166 | 25 | − | − | |||||||||||||||
Total
charge-offs
|
2,400 | 2,276 | 1,054 | 686 | 725 | |||||||||||||||
Recoveries
|
405 | 426 | 302 | 249 | 354 | |||||||||||||||
Net
charge-offs
|
1,995 | 1,850 | 752 | 437 | 371 | |||||||||||||||
Ending
allowance
|
$ | 13,890 | $ | 13,579 | $ | 13,673 | $ | 9,956 | $ | 8,844 | ||||||||||
Allowance
for loan losses to total non-performing loans at end of
year
|
150.70 | % | 186.45 | % | 276.11 | % | 525.94 | % | 347.50 | % | ||||||||||
Allowance
for loan losses to total loans at end of year
|
1.08 | % | 1.10 | % | 1.16 | % | 1.13 | % | 1.19 | % | ||||||||||
Allowance
for loan losses to net charge-offs for the year
|
696.24 | % | 734.00 | % | 1,818.22 | % | 2,278.26 | % | 2,383.82 | % | ||||||||||
Net
charge-offs for the year to average loans
|
0.15 | % | 0.15 | % | 0.07 | % | 0.05 | % | 0.06 | % |
December
31
|
||||||||||||||||||||||||||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||||||||||||||||||||||
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
|
$ | 2,112 | 17.9 | % | $ | 2,077 | 20.1 | % | $ | 1,484 | 23.2 | % | $ | 239 | 22.8 | % | $ | 386 | 24.4 | % | ||||||||||||||||||||
Nonresidential
and Multi-family residential real estate
|
7,750 | 47.5 | 8,551 | 46.5 | 8,965 | 46.4 | 6,538 | 46.3 | 6,265 | 45.1 | ||||||||||||||||||||||||||||||
Other:
|
||||||||||||||||||||||||||||||||||||||||
Commercial
loans
|
3,420 | 21.8 | 2,244 | 18.7 | 2,287 | 14.4 | 2,454 | 15.8 | 1,424 | 15.9 | ||||||||||||||||||||||||||||||
Consumer
and home equity and improvement loans
|
608 | 12.8 | 707 | 14.7 | 937 | 16.0 | 725 | 15.1 | 769 | 14.6 | ||||||||||||||||||||||||||||||
$ | 13,890 | 100.0 | % | $ | 13,579 | 100.0 | % | $ | 13,673 | 100.0 | % | $ | 9,956 | 100.0 | % | $ | 8,844 | 100.0 | % |
Years
Ended December 31
|
||||||||||||||||||||||||
2007
|
2006
|
2005
|
||||||||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||
Non-interest-bearing
demand deposits
|
$ | 104,200 | − | $ | 95,044 | − | $ | 86,741 | − | |||||||||||||||
Interest
bearing demand deposits
|
310,230 | 2.67 | % | 289,214 | 2.44 | % | 273,502 | 1.19 | % | |||||||||||||||
Savings
deposits
|
92,756 | 1.51 | 76,775 | 0.36 | 87,708 | 0.27 | ||||||||||||||||||
Time
deposits
|
661,974 | 4.65 | 640,479 | 4.05 | 570,826 | 3.00 | ||||||||||||||||||
Totals
|
$ | 1,169,160 | 3.46 | % | $ | 1,101,512 | 3.02 | % | $ | 1,018,777 | 2.02 | % |
Certificates
of deposit maturing in quarter ending:
|
||||
March
31, 2008
|
$ | 55,324 | ||
June
30, 2008
|
41,408 | |||
September
30, 2008
|
31,352 | |||
December
31, 2008
|
7,151 | |||
After
December 31, 2008
|
22,104 | |||
Total
certificates of deposit with balances of $100,000 or more
|
$ | 157,339 |
2007
|
2006
|
|||||||
(In
Thousands)
|
||||||||
Interest
bearing demand deposits and money market accounts
|
$ | 220 | $ | 216 | ||||
Savings
Accounts
|
− | − | ||||||
Certificates
of deposit
|
2,317 | 1,651 | ||||||
$ | 2,537 | $ | 1,867 |
December
31
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Long-term:
|
||||||||||||
FHLB
advances
|
$ | 128,236 | $ | 129,128 | $ | 152,460 | ||||||
Weighted
average interest rate
|
4.97 | % | 5.01 | % | 4.65 | % | ||||||
Short-term:
|
||||||||||||
FHLB
advances
|
$ | 11,300 | $ | 33,100 | $ | 28,500 | ||||||
Weighted
average interest rate
|
4.28 | % | 5.18 | % | 3.65 | % | ||||||
Securities
sold under agreement to repurchase
|
$ | 30,055 | $ | 30,424 | $ | 25,748 | ||||||
Weighted
average interest rate
|
3.14 | % | 2.98 | % | 2.68 | % |
Years
Ended December 31
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Long-term:
|
||||||||||||
FHLB
advances:
|
||||||||||||
Maximum
balance
|
$ | 129,022 | $ | 152,164 | $ | 154,602 | ||||||
Average
balance
|
128,622 | 141,836 | 153,267 | |||||||||
Weighted
average interest rate
|
5.05 | % | 4.89 | % | 4.63 | % |
Years
Ended December 31
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
(Dollars
in Thousands)
|
||||||||||||
Short-term:
|
||||||||||||
FHLB
advances:
|
||||||||||||
Maximum
balance
|
$ | 45,800 | $ | 57,500 | $ | 45,000 | ||||||
Average
balance
|
7,772 | 40,104 | 14,313 | |||||||||
Weighted
average interest rate
|
5.23 | % | 5.10 | % | 3.79 | % | ||||||
Revolving
credit agreements:
|
||||||||||||
Maximum
balance
|
$ | 500 | $ | - | $ | 43,799 | ||||||
Average
balance
|
171 | 80 | 301 | |||||||||
Weighted
average interest rate
|
6.20 | % | 5.13 | % | 2.25 | % | ||||||
Securities
sold under agreement to repurchase:
|
||||||||||||
Maximum
balance
|
$ | 30,055 | $ | 30,424 | $ | 25,748 | ||||||
Average
balance
|
23,739 | 20,318 | 17,718 | |||||||||
Weighted
average interest rate
|
3.04 | % | 2.84 | % | 2.18 | % |
December
31, 2007
|
||||||||
Amount
|
Percent
|
|||||||
(In
Thousands)
|
||||||||
Tangible
Capital
|
$ | 156,856 | 10.03 | % | ||||
Requirement
|
23,469 | 1.50 | ||||||
Excess
|
$ | 133,387 | 8.53 | % | ||||
Core
Capital
|
$ | 156,856 | 10.03 | % | ||||
Requirement
|
62,584 | 4.00 | ||||||
Excess
|
$ | 94,272 | 6.03 | % | ||||
Total
risked-based capital
|
$ | 170,746 | 12.71 | % | ||||
Risk-based
requirement
|
107,446 | 8.00 | ||||||
Excess
|
$ | 63,300 | 4.71 | % |
|
·
|
The
rate of inflation;
|
|
·
|
Economic
conditions;
|
|
·
|
Federal
monetary policies;
|
|
·
|
Stability
of domestic and foreign markets.
|
|
·
|
A
slowdown in the local economy where the Company’s markets are located or
the national economy;
|
|
·
|
A
downturn in the business sectors in which the Company’s loan customers
operate;
|
|
·
|
A
rapid increase in interest rates.
|
|
·
|
Demand
for financial products and services may go
down;
|
|
·
|
Borrowers
may be unable to make payments on their
loans;
|
|
·
|
The
value of collateral securing loans may
decline;
|
|
·
|
The
overall quality of the loan portfolio may
decline;
|
|
·
|
Local
market-area deposits may decline, impacting the Company’s cost of funding
and its liquidity.
|
Leased/
|
Net
Book Value
|
||||||||
Description/address
|
Owned
|
of
Property
|
Deposits
|
||||||
(In
Thousands)
|
|||||||||
Main
Office, First Federal
|
|||||||||
601
Clinton Street, Defiance, OH
|
Owned
|
$ | 5,189 | $ | 212,007 | ||||
Operations
Center
|
|||||||||
25600
Elliott Road, Defiance, OH
|
Owned
|
6,980 | N/A | ||||||
Branch
Offices, First Federal
|
|||||||||
204
E. High Street, Bryan, OH
|
Owned
|
877 | 115,694 | ||||||
211
S. Fulton Street, Wauseon, OH
|
Owned
|
606 | 53,763 | ||||||
625
Scott Street, Napoleon, OH
|
Owned
|
1,290 | 67,185 | ||||||
1050
East Main Street, Montpelier, OH
|
Owned
|
448 | 34,319 | ||||||
926
East High Street, Bryan, OH
|
Owned
|
91 | 6,741 | ||||||
1800
Scott Street, Napoleon, OH
|
Owned
|
1,554 | 23,030 | ||||||
1177
N. Clinton Street, Defiance, OH
|
Owned,
Land Lease Leased
|
1,164 | 33,577 | ||||||
905
N. Williams St., Paulding, OH
|
Owned
|
926 | 39,526 | ||||||
201
E. High St., Hicksville, OH
|
Owned
|
462 | 22,142 | ||||||
3900
N. Main St., Findlay, OH
|
Owned
|
1,185 | 47,488 | ||||||
11694
N. Countyline St., Fostoria, OH
|
Owned
|
763 | 24,974 | ||||||
1226
W. Wooster, Bowling Green, OH
|
Owned
|
1,183 | 64,331 | ||||||
301
S. Main St., Findlay, OH
|
Owned
|
1,281 | 36,738 | ||||||
405
E. Main St., Ottawa, OH
|
Owned
|
393 | 73,010 | ||||||
124
E. Main St., McComb, OH
|
Owned
|
239 | 20,973 | ||||||
7591
Patriot Dr., Findlay, OH
|
Owned
|
1,313 | 33,170 | ||||||
417
W Dussell Dr., Maumee, OH
|
Owned,
Land Lease
|
1,077 | 32,848 | ||||||
230
E. Second St., Delphos, OH
|
Owned
|
1,245 | 96,163 | ||||||
105
S. Greenlawn Ave., Elida, OH
|
Owned
|
388 | 35,545 | ||||||
2600
Allentown Rd., Lima, OH
|
Owned
|
925 | 36,697 | ||||||
2285
N. Cole St., Lima, OH
|
Owned
|
468 | 10,261 | ||||||
22020
W. State Rt. 51, Genoa, OH
|
Owned
|
1,028 | 37,256 | ||||||
2760
Navarre Ave., Oregon, OH
|
Owned,
Land Lease
|
253 | 19,483 | ||||||
1077
Louisiana Ave., Perrysburg, OH
|
Owned
|
626 | 18,873 | ||||||
2565
Shawnee Road, Lima, OH
|
Owned
|
1,713 | 11,505 | ||||||
7437
Coldwater Road, Fort Wayne, IN
|
Leased
|
70 | 10,559 | ||||||
First
Insurance & Investments
|
|||||||||
419
5th
Street, Suite 1200, Defiance, OH
|
Leased
|
174 | N/A | ||||||
209
West Poe Road, Bowling Green, OH
|
Leased
|
24 | N/A | ||||||
$ | 33,935 | $ | 1,217,858 |
Years
Ending
|
||||||||||||||||||||||||
December
31, 2007
|
December
31, 2006
|
|||||||||||||||||||||||
High
|
Low
|
Dividend
|
High
|
Low
|
Dividend
|
|||||||||||||||||||
Quarter
ended:
|
||||||||||||||||||||||||
March
31
|
$ | 30.25 | $ | 27.25 | $ | .25 | $ | 28.88 | $ | 25.39 | $ | .24 | ||||||||||||
June
30
|
30.00 | 26.71 | .25 | 30.29 | 25.09 | .24 | ||||||||||||||||||
September
30
|
29.64 | 23.99 | .25 | 28.69 | 25.18 | .24 | ||||||||||||||||||
December
31
|
26.93 | 20.58 | .26 | 30.70 | 26.87 | .25 |
Period Ending | ||||||||||||||||||||||||
Index
|
12/31/02
|
12/31/03
|
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
||||||||||||||||||
First
Defiance Financial Corp.
|
100.00 | 141.03 | 162.03 | 157.09 | 181.85 | 137.26 | ||||||||||||||||||
NASDAQ
Composite
|
100.00 | 150.01 | 162.89 | 165.13 | 180.85 | 198.60 | ||||||||||||||||||
SNL
Bank NASDAQ Index
|
100.00 | 129.08 | 147.94 | 143.43 | 161.02 | 126.42 | ||||||||||||||||||
SNL
Midwest Thrift Index
|
100.00 | 138.93 | 153.42 | 149.92 | 170.16 | 143.72 |
Period
|
Total
Number
of
Shares
Purchased
|
Average
Price
Paid
Per
Share
|
Total
Number
of
Shares
Purchased
as
Part
of
Publicly
Announced
Plans
or
Programs
|
Maximum
Number
of
Shares that May
Yet
Be Purchased
Under
the Plans or
Programs
(a)
|
||||||||||||
October
1, 2007 to October 31. 2007
|
8,564 | $ | 22.54 | 8,564 | 154,276 | |||||||||||
November
1, 2007 to November 30, 2007
|
21,850 | $ | 22.08 | 21,850 | 132,426 | |||||||||||
December
1, 2007 to December 31, 2007
|
9,567 | $ | 22.69 | 9,567 | 122,859 | |||||||||||
Total
|
39,981 | $ | 22.32 | 39,981 | 122,859 |
|
(a)
|
On
July 18, 2003, First Defiance announced that its Board of Directors
had
authorized management to repurchase up to 10% of the Registrant’s common
stock through open market or in any private transaction. The
authorization, which is for 639,828 shares, does not have an expiration
date.
|
Plan
Category
|
Number
of securities to
be
Issued Upon
Exercise
of Outstanding
Options,
Warrants and
Rights
|
Weighted
Average
Exercise
Price of
Outstanding
Options,
Warrants
and Rights
|
Number
of Securities
Remaining
Available
for
Future Issuance
Under
Equity
Compensation
Plans
(Excluding
Securities
Reflected
in Column
(a))
|
|||||||||
(a)
|
(b)
|
(c)
|
||||||||||
1993
Stock Incentive Plan
|
600 | $ | 10.52 | -0- | ||||||||
1996
Stock Option Plan
|
73,639 | $ | 15.08 | -0- | ||||||||
2001
Stock Option and Incentive Plan
|
216,350 | $ | 19.32 | 1,350 | ||||||||
2005
Stock Option and Incentive Plan
|
127,750 | $ | 26.65 | 222,600 | ||||||||
1996
Management Recognition Plan
|
N/A | N/A | 155 |
Annual
Report
Page
|
||
Report
of Independent Registered Public Accounting Firm (Crowe Chizek and
Company
LLC)
|
33
|
|
Consolidated
Statements of Financial Condition as of December 31, 2007 and
2006
|
34
|
|
Consolidated
Statements of Income for the years ended December 31, 2007, 2006
and
2005
|
35
|
|
Consolidated
Statements of Stockholders’ Equity for the years ended December 31, 2007,
2006 and 2005
|
36
|
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2007, 2006
and
2005
|
37
|
|
Notes
to Consolidated Financial Statements
|
39
|
|
(1)
|
We
are not filing separately financial statement schedules because of
the
absence of conditions under which they are required or because the
required information is included in the consolidated financial statements
or the related notes.
|
|
(2)
|
The
exhibits required by this item are listed in the Exhibit Index of
this
Form 10-K. The management contracts and compensation plans or arrangements
required to be filed as exhibits to this Form 10-K are listed as
Exhibits
10.1 through 10.12.
|
|
(3)
|
See
Item 15(a)(2) above.
|
FIRST
DEFIANCE FINANCIAL CORP.
|
||
March
14, 2008
|
By:
|
/s/
John C. Wahl
|
John
C. Wahl, Exec.V.P, Chief Financial
Officer
|
Signature
|
Title
|
|
/s/
William J. Small
|
Chairman
of the Board, President and
|
|
William
J. Small
|
Chief
Executive Officer
|
|
/s/
John C. Wahl
|
Executive
Vice President and
|
|
John
C. Wahl
|
Chief
Financial Officer
|
|
/s/
James L. Rohrs
|
Director,
Executive Vice President
|
|
James
L. Rohrs
|
||
/s/
Stephen L. Boomer
|
Director,
Vice Chairman
|
|
Stephen
L. Boomer
|
||
/s/
John L. Bookmyer
|
Director
|
|
John
L. Bookmyer
|
||
/s/
Dr. Douglas A. Burgei
|
Director
|
|
Dr.
Douglas A. Burgei
|
||
/s/
Peter A. Diehl
|
Director
|
|
Peter
A. Diehl
|
||
/s/
Dr. John U. Fauster,
III
|
Director
|
|
Dr.
John U. Fauster, III
|
||
/s/
Dwain I. Metzger
|
Director
|
|
Dwain
I. Metzger
|
||
/s/
Gerald W. Monnin
|
Director
|
|
Gerald
W. Monnin
|
||
/s/
Samuel S. Strausbaugh
|
Director
|
|
Samuel
S. Strausbaugh
|
||
/s/
Thomas A. Voigt
|
Director
|
|
Thomas
A. Voigt
|
Exhibit
|
||
Number
|
Description
|
|
3.1
|
Articles
of Incorporation
|
(1)
|
3.2
|
Code
of Regulations
|
(1)
|
3.2
|
Bylaws
|
(1)
|
4
|
Agreement
to furnish instruments and agreements defining rights
of holders of long-term debt
|
(4)
|
10.1
|
1996
Stock Option Plan
|
(2)
|
10.2
|
Form
of Incentive Stock Option Award Agreement
|
(3)
|
10.3
|
Form
of Nonqualified Stock Option Award Agreement
|
(3)
|
10.4
|
1996
Management Recognition Plan and Trust
|
(2)
|
10.5
|
2001
Stock Option and Incentive Plan
|
(5)
|
10.6
|
1993
Stock Incentive Plan
|
(1)
|
10.7
|
Employment
Agreement with William J. Small
|
(6)
|
10.8
|
Employment
Agreement with James L. Rohrs
|
(7)
|
10.9
|
Employment
Agreement with John C. Wahl
|
(8)
|
10.10
|
Employment
Agreement with Gregory R. Allen
|
(9)
|
10.11
|
Description
of Annual Bonus
|
(4)
|
10.12
|
2005
Stock Option and Incentive Plan
|
(10)
|
13.1
|
2007
Annual Report to Stockholders
|
(4)
|
14
|
Code
of Ethics
|
(4)
|
21
|
List
of Subsidiaries of the Company
|
(4)
|
23.1
|
Consent
of Crowe Chizek and Company LLC
|
(4)
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
(4)
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
(4)
|
32.1
|
Certification
of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
(4)
|
32.2
|
Certification
of Chief Financial Officer pursuant to Section 906
of
the Sarbanes-Oxley Act of 2002
|
(4)
|
|
(1)
|
Incorporated
herein by reference to the like numbered exhibit in the Registrant’s Form
S-1 (File No. 33-93354).
|
(2)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2001 Form
10-K
|
(3)
|
Incorporated
herein by reference to like numbered exhibit in Registrant’s 2004 Form
10-K
|
(4)
|
Included
herein
|
(5)
|
Incorporated
herein by reference to Appendix B to the 2001 Proxy
Statement
|
(6)
|
Incorporated
herein by reference to exhibit 10.1 in Form 8-K filed October 1,
2007
|
(7)
|
Incorporated
herein by reference to exhibit 10.2 in Form 8-K filed October 1,
2007
|
(8)
|
Incorporated
herein by reference to exhibit 10.3 in Form 8-K filed October 1,
2007
|
(9)
|
Incorporated
herein by reference to exhibit 10.4 in Form 8-K filed October 1,
2007
|
(10)
|
Incorporated
herein by reference to Appendix A to the 2005 Proxy
Statement
|