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| 8-K - CURRENT REPORT - PREMIER FINANCIAL CORP | d8k.htm |
 First Defiance Financial Corp. First Defiance Financial Corp. March 2010 Investor Presentation March 2010 Investor Presentation Exhibit 99 |
 2 Statements contained in this presentation which are not historical facts are forward- looking statements as defined in the Private Securities Litigation Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the company’s filings with the Securities and Exchange Commission. Safe Harbor and Safe Harbor and Regulation FD Statement Regulation FD Statement |
 3 Our unwavering focus for over 90 years: Community Financial Services • Consolidated Assets of $2.06 billion (12/31/09) • First Federal Bank of the Midwest: o 33 banking centers in 3 states; 45 ATM locations o Trust and Wealth Management Services • First Insurance & Investments: o Specializes in Property & Casualty and Group Health & Life Insurance o Locations in Defiance and Bowling Green, Ohio • Received $37 million of TARP Capital Company Profile Company Profile |
 • Community leaders with deep roots in the communities we have served since the 1920s • Experienced and disciplined management team • Strong tangible capital levels • Stable core deposit base, changing mix • Historically stable and strong net interest margin • Strong and diversified balance sheet • Market leader in northwest Ohio Investment Highlights Investment Highlights 4 |
 Management Position Age Years with Company Years in Banking William J. Small Chairman, President, CEO 59 24 32 Donald P. Hileman Executive Vice President, CFO 57 2 34 James L. Rohrs Executive Vice President 62 10 37 Bradley D. Spitnale Western Market Area President 52 10 19 Gregory R. Allen Southern Market Area President 46 11 21 Jeffrey D. Vereecke Northern Market Area President 48 25 25 Timothy K. Harris Eastern Market Area President 51 9 29 Executive Leadership Executive Leadership 5 |
 6 First Defiance’s Market First Defiance’s Market • Largest Community Bank based in northwest Ohio • Strong market share • Significant presence in core communities • Positive reputation • Recently voted #1 Financial Institution in six-county media poll |
 • Automotive Industry • Unemployment/Foreclosures • Economic diversity helpful • Lending Concentrations • Lending Opportunities 7 Local Economic Data Local Economic Data |
 Total Deposits: $1.580 billion Stable Deposit Base Stable Deposit Base Data as of December 31, 2009 8 CDs under $100,000 35% Savings Accounts 8% Money Market Accounts 20% Interest Bearing Checking Account 12% Non-Interest Bearing Checking Accounts 12% National CDs 3% CDs over $100,000 10% |
 Market Share with Significant Market Share with Significant Growth Potential Growth Potential 9 Dollars in thousands $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2005 2006 2007 2008 2009 Top 10 Institutions Inside of Market Huntington Ntl Bank KeyBank Fifth Third Bank PNC Bank First Federal Bank JPMorgan Chase Bank Charter One / RBS Citizens Wells Fargo Bank NA Farmers & Merchants Tower Bank & Trust |
 Total = $1.645 billion Home Equity and Improvement 9% Residential Real Estate Loans 14% Construction Loan 3% Commercial and Non- Residential Real Estate Loans 49% Commercial and Industrial 23% Consumer 2% Loan Portfolio Composition Loan Portfolio Composition Data as of December 31, 2009 10 |
 Commercial Real Estate – Owner Occupied: $299 million Commercial Real Estate – Non-Owner Occupied: $508 million Commercial and Industrial 29% CRE Owner Occupied 25% CRE Non-Owner Occupied 46% Commercial Loan Portfolio Commercial Loan Portfolio Composition Composition Data as of December 31, 2009 11 |
 Total: $807 million Commercial Real Estate Commercial Real Estate Portfolio Composition Portfolio Composition Data as of December 31, 2009 12 Agriculture 7% Religious Organizations 2% Care Centers 5% Hotels and Motels 6% Restaurants 2% Other 27% Country Clubs 3% New Single Family Housing 1% Land Subdivision 3% General Warehousing and Storage 3% Commercial Rental Real Estate 41% |
 Commercial
Real Estate 56% 1-4 Family Residential 25% Commercial 19% Construction Loans: $49 million Construction Portfolio Construction Portfolio Composition Composition Data as of December 31, 2009 13 |
 • We know our customers: In-market lending o No loan production offices outside of footprint – Only $11 million loaned outside of Ohio, Michigan and Indiana • Conservative underwriting standards o Cash flow lender o Use of guarantors Credit Quality Management Credit Quality Management 14 |
 15 • Asset Review Committee assures on-going monitoring o Review risk management reports monthly o Make risk grade changes as needed • Credit Administration infrastructure active throughout the loan process o Lending limits established by industry classification o Analysts with industry specialization Credit Quality Management Credit Quality Management |
 OREO $13.5 million 1-4 Family Real Estate $8.0 million Construction $0.7 million Commercial $10.7 million Commercial Real Estate $28.0 million Consumer $0.06 million Home Equity $0.4 million Total non-performing assets = $61.4 million. Non-performing assets/total assets= 2.99% Non-Performing Asset Non-Performing Asset Composition Composition Data as of December 31, 2009 16 |
 • Conservative lending approach has been successful o Asset quality metrics favorable compared to local and nationwide peers • Management proactive in addressing current credit environment • Front end of credit pipeline showing improvement Asset Quality Trends Asset Quality Trends 17 |
 NPAs/Assets (%) Reserves/Loans (%) Reserves/NPLs (%) NCOs(annualized)/Avg. Loans (%) 0 Credit Quality Credit Quality 18 |
 Financial Highlights Financial Highlights Year Ended December 31, 2009 2008 2007 Net Interest Income $67.23 $62.20 $48.66 Provisions for Loan Losses $23.23 $12.59 $2.31 Core Net Income $7.19 $8.08 $13.90 Core Net Income available to Common Share $5.18 $7.94 $13.90 Core Net Income per Share $0.63 $1.00 $1.94 Core Return on Equity 3.09% 4.23% 8.48% Core Return on Assets 0.36% 0.44% 0.90% Dollars in millions, except per share amounts 19 |
 ROE ROA Strong Core PTPP Earnings Strong Core PTPP Earnings 20 |
 Well Capitalized Requirement Total
Risk Based Capital 10% Tier 1 to Risk Weighted
Asset 6% Tier 1 to Average Assets 5% 1 Strong Capital Levels Strong Capital Levels 21 |
 Strong Liquidity Non-Deposit Strong Liquidity Non-Deposit Funding Sources Funding Sources (in millions) 22 |
 Quarterly Stable Net Interest Margin Stable Net Interest Margin Annual 23 |
 MBS's 22% CDO's 4% CMO's 33% US Government 9% Municipals 32% Total Investment Securities: $139 million Quality Securities Portfolio Quality Securities Portfolio Data as of December 31, 2009 24 |
 FDEF Regional Peer Group Median FDEF Rank (out of 16) National Peer Group Median FDEF Rank (out of 76) NPL / Loans 2.94 3.91 8 2.95 32 Reserves / NPLs 76.29 53.01 3 65.43 22 Net Interest Margin 3.76 3.20 4 3.39 17 PTPP ROAA 1.63 1.04 4 0.86 14 Efficiency Ratio 56.15 69.54 3 65.94 11 TCE/TA 6.74 6.31 6 6.27 32 Selected Key Ratios Selected Key Ratios 25 |
 •Continued focus on core deposit growth, asset quality and expense control •Organic growth through newer markets, new relationships and deeper relationships in more established markets •Focus on market opportunities provided by dislocation and financial turmoil o Potential FDIC-assisted transactions financially attractive •Emphasize the Community Bank Difference Strategic Focus Strategic Focus 26 |
 •Disciplined management team with proven track record •Reputation of focusing on the fundamentals •Successfully integrated 4 bank acquisitions in last 6 years •Strong capital levels •Balance sheet strength – attractive core deposit base •Balanced loan portfolio with a disciplined approach to lending •Well positioned to significantly grow our balance sheet and geographic footprint, enhancing long-term shareholder value Conclusion Conclusion 27 |