FIRST DEFIANCE REPORTS DECLINE IN INSURANCE & INVESTMENT SALES COMMISSIONS

Defiance, OH-based, $2.02 billion-asset First Defiance Financial Corp. reported third-quarter insurance and investment sales commissions slipped 4.2% to $1.13 million, down from $1.18 million in third quarter 2008. Income from bank-owned life insurance (BOLI) dipped 1.03% to $201,000, down from $224,000, and trust income declined 11.4% to $101,000, down from $114,000. Insurance and investment sales commissions, BOLI and trust income comprised respectively, 20.3%, 3.6% and 1.8% of noninterest income, which grew 34.3% to $5.56 million, up from $4.14 million a year ago. Net interest income on a 3.88% net interest margin fell 16.9% to $9.52 million, down from $11.46 million, as loan loss provisions climbed by $3.04 million to $8.05 million. But, net income inched ahead 2.2% to $329,000, up from $322,000 a year ago. First Defiance Chairman, President and CEO William Small said, “The impact of the economic environment continues to be reflected in our results for the third quarter. In light of the continued environment of unemployment, as well as the continued uncertainty of the commercial real estate market, we believe it is prudent to build general reserves.”