First Defiance Financial Corp. (FDEF, Financial) filed Quarterly Report for the period ended 2009-03-31.
First Defiance Financial Corp. is a unitary thrift holding company that through its subsidiaries focuses on traditional banking mortgage banking and property and casualty life and group health insurance products. Theirtraditional banking activities include originating and servicing residential commercial and consumer loans and providing a broad range of depository services. First Defiance Financial Corp. has a market cap of $95.8 million; its shares were traded at around $11.802 with a P/E ratio of 10.5 and P/S ratio of 0.8. The dividend yield of First Defiance Financial Corp. stocks is 5.8%. First Defiance Financial Corp. had an annual average earning growth of 2.5% over the past 5 years.
Net loans receivable (excluding loans held for sale) decreased $32.4 million to $1.56 billion at March 31, 2009 compared to $1.59 billion at December 31, 2008. The decrease in loans receivable between December 31, 2008 and March 31, 2009 included decreases in commercial loans (down $6.5 million), one-to-four family residential real estate loans (down $10.7 million), home equity and improvement loans (down $4.4 million), construction loans (down $22.4 million), and consumer loans (down $2.3 million) while non-residential and multi-family loans increased $9.1 million.
The investment securities portfolio increased $5.0 million to $123.5 million at March 31, 2009 from $118.5 million at December 31, 2008. The increase is the result of $9.3 million of securities being purchased during the first three months of 2009 mostly offset by $350,000 of securities being matured or called in the period and principal pay downs of $3.0 million in CMOs and mortgage-backed securities. The unrealized loss in the investment portfolio increased $276,000 to $2.0 million at March 31, 2009 from $1.7 million at December 31, 2008.
Deposits increased from $1.47 billion at December 31, 2008 to $1.54 billion as of March 31, 2009. Of the $70.3 million increase, interest-bearing demand deposits and money market accounts increased $38.6 million to $413.1 million, retail time deposits increased $31.7 million to $780.4 million, savings accounts increased $444,000 to $132.6 million, and broker/national certificates of deposit increased $11.8 million to $50.3 million. These increases were slightly offset by a decline in non-interest bearing checking accounts of $12.2 million to $163.9 million.
The provision for loan losses is determined by management as the amount to be added to the allowance for loan losses after net charge-offs have been deducted to bring the allowance to a level which, in managements best estimate, is necessary to absorb probable credit losses within the existing loan portfolio. The provision for loan losses was $2.7 million in the first quarter of 2009 compared to $1.1 million for the first quarter of 2008. The period over period increase was primarily due to the deterioration of a number of large credits in the commercial portfolio as well as increases in reserves on loans with existing reserves based on declining collateral values. Charge-offs for the first quarter of 2009 were $1.8 million and recoveries of previously charged off loans totaled $128,000 for net charge-offs of $1.6 million. By comparison, $620,000 of charge-offs were recorded in the 2008 first quarter and $129,000 of recoveries were realized for net charge-offs of $491,000. As a percentage of average loans, annualized net charge-offs were 0.41% for the first quarter of 2009 compared to 0.15% in the same period in 2008.
Mortgage Banking Activity. Total revenue from the sale and servicing of mortgage loans increased $1.6 million to $2.7 million for the first quarter of 2009 compared to $1.1 million for the same period of 2008. Gains realized from the sale of mortgage loans more than doubled in the first quarter of 2009 to $2.8 million from $1.1 million in the first quarter of 2008. Mortgage loan servicing revenue increased by $224,000 or 48.2% in the first quarter of 2009 compared to the first quarter of 2008. The increases in gains and servicing revenue were partially offset by increases of $605,000 for the amortization of mortgage servicing r
Read the The complete ReportFDEF is in the portfolios of Bruce Sherman of Private Capital Management.
First Defiance Financial Corp. is a unitary thrift holding company that through its subsidiaries focuses on traditional banking mortgage banking and property and casualty life and group health insurance products. Theirtraditional banking activities include originating and servicing residential commercial and consumer loans and providing a broad range of depository services. First Defiance Financial Corp. has a market cap of $95.8 million; its shares were traded at around $11.802 with a P/E ratio of 10.5 and P/S ratio of 0.8. The dividend yield of First Defiance Financial Corp. stocks is 5.8%. First Defiance Financial Corp. had an annual average earning growth of 2.5% over the past 5 years.
Highlight of Business Operations:
Securities are classified as held-to-maturity when First Defiance has the positive intent and ability to hold the security to maturity. Held-to-maturity securities are stated at amortized cost and had a recorded value of $853,000 at March 31, 2009. Securities not classified as held-to-maturity are classified as available-for-sale, which are stated at fair value and had a recorded value of $122.6 million at March 31, 2009. The available-for-sale portfolio consists of obligations of U.S. Government corporations and agencies ($18.6 million), certain municipal obligations ($42.0 million), CMOs and REMICs ($25.9 million), mortgage backed securities ($33.7 million) and preferred stock ($2.4 million).Net loans receivable (excluding loans held for sale) decreased $32.4 million to $1.56 billion at March 31, 2009 compared to $1.59 billion at December 31, 2008. The decrease in loans receivable between December 31, 2008 and March 31, 2009 included decreases in commercial loans (down $6.5 million), one-to-four family residential real estate loans (down $10.7 million), home equity and improvement loans (down $4.4 million), construction loans (down $22.4 million), and consumer loans (down $2.3 million) while non-residential and multi-family loans increased $9.1 million.
The investment securities portfolio increased $5.0 million to $123.5 million at March 31, 2009 from $118.5 million at December 31, 2008. The increase is the result of $9.3 million of securities being purchased during the first three months of 2009 mostly offset by $350,000 of securities being matured or called in the period and principal pay downs of $3.0 million in CMOs and mortgage-backed securities. The unrealized loss in the investment portfolio increased $276,000 to $2.0 million at March 31, 2009 from $1.7 million at December 31, 2008.
Deposits increased from $1.47 billion at December 31, 2008 to $1.54 billion as of March 31, 2009. Of the $70.3 million increase, interest-bearing demand deposits and money market accounts increased $38.6 million to $413.1 million, retail time deposits increased $31.7 million to $780.4 million, savings accounts increased $444,000 to $132.6 million, and broker/national certificates of deposit increased $11.8 million to $50.3 million. These increases were slightly offset by a decline in non-interest bearing checking accounts of $12.2 million to $163.9 million.
The provision for loan losses is determined by management as the amount to be added to the allowance for loan losses after net charge-offs have been deducted to bring the allowance to a level which, in managements best estimate, is necessary to absorb probable credit losses within the existing loan portfolio. The provision for loan losses was $2.7 million in the first quarter of 2009 compared to $1.1 million for the first quarter of 2008. The period over period increase was primarily due to the deterioration of a number of large credits in the commercial portfolio as well as increases in reserves on loans with existing reserves based on declining collateral values. Charge-offs for the first quarter of 2009 were $1.8 million and recoveries of previously charged off loans totaled $128,000 for net charge-offs of $1.6 million. By comparison, $620,000 of charge-offs were recorded in the 2008 first quarter and $129,000 of recoveries were realized for net charge-offs of $491,000. As a percentage of average loans, annualized net charge-offs were 0.41% for the first quarter of 2009 compared to 0.15% in the same period in 2008.
Mortgage Banking Activity. Total revenue from the sale and servicing of mortgage loans increased $1.6 million to $2.7 million for the first quarter of 2009 compared to $1.1 million for the same period of 2008. Gains realized from the sale of mortgage loans more than doubled in the first quarter of 2009 to $2.8 million from $1.1 million in the first quarter of 2008. Mortgage loan servicing revenue increased by $224,000 or 48.2% in the first quarter of 2009 compared to the first quarter of 2008. The increases in gains and servicing revenue were partially offset by increases of $605,000 for the amortization of mortgage servicing r
Read the The complete ReportFDEF is in the portfolios of Bruce Sherman of Private Capital Management.
