Financial Data and Key Metrics Changes - Net income for Q2 2019 was $12.2 million, or $0.61 per diluted share, a 13% increase from $11.1 million, or $0.54 per diluted share, in Q2 2018 [9][16] - Return on average assets improved to 1.52% from 1.48% year-over-year [10][38] - Loan growth rebounded with an annualized growth rate of 12% in Q2 2019, and year-to-date growth was 6.6% [11][18] - Total deposits increased by 8% year-over-year, but decreased by 0.08% on a linked quarter basis [12][19] - Net interest income rose to $29 million, up from $26.5 million in Q2 2018, reflecting a 9.2% increase [22][26] Business Line Data and Key Metrics Changes - Mortgage banking revenues for Q2 2019 were $2.1 million, up from $1.8 million in Q2 2018, with mortgage originations at $85.5 million [27][29] - Non-interest income totaled $10.5 million, down from $10.8 million in the linked quarter but up from $10.2 million in Q2 2018 [26] - Non-interest expenses were $24.2 million, down from $24.9 million in the linked quarter but up from $22.7 million in Q2 2018 [30][31] Market Data and Key Metrics Changes - The competitive pricing environment for deposits remains, with some easing observed in various markets [52] - The Columbus, Ohio market showed significant contributions to loan growth, indicating strong performance in that region [42] Company Strategy and Development Direction - The company is focused on core balance sheet growth, particularly in loan and deposit growth, expense control, and improved asset quality [41][46] - A new digital banking platform will be implemented to enhance digital capabilities and customer service [44] - The company aims to maintain upper single-digit annual loan growth and expects a rebound in deposit growth in the second half of the year [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance due to improved asset quality and a robust loan pipeline [41][46] - There is an expectation of margin contraction in the second half of the year due to downward pressure on asset yield [13][39] - The company remains optimistic about maintaining profitability despite anticipated challenges [39][46] Other Important Information - The company announced a Q3 2019 dividend of $0.19 per share, a 27% increase from Q2 2018 [15] - The allowance for loan loss increased to $28.9 million, reflecting growth in loans and improved asset quality metrics [34][36] Q&A Session Summary Question: Can you provide insight on deposit pricing in your markets? - Management noted that while the market remains competitive, there has been some easing in deposit pricing [52] Question: How does the loan pipeline compare to last quarter? - The loan pipeline is significant, with $400 million in commercial and $120 million in residential pipelines, indicating strong team commitment [53] Question: Do you expect the $24.2 million in expenses to be a good run rate going forward? - Management hopes to improve on this figure, focusing on expense containment as margins compress [55] Question: What is the expected impact of a Fed rate cut on margins? - A 25-basis-point cut could lead to a decline of five to six basis points in margins [64][67] Question: How are deposit gathering efforts in newer markets? - There has been limited impact from newer markets, with a focus on legacy markets for deposit growth [68] Question: What is the expected provision expense going forward? - A more normalized provision expense is anticipated to be around $750,000, tracking with loan growth [71]

Financial Data and Key Metrics Changes - Net income for Q1 2019 was $11.5 million or $0.57 per diluted share, compared to $11.7 million or $0.57 in Q1 2018, influenced by a $2 million recovery in the previous year [8][14] - Return on Assets (ROA) was 1.46% and return on tangible equity was 15.93% [8] - Non-performing loans decreased to $17.6 million from $19 million in the previous quarter and down 37% from $27.9 million a year ago [39] Business Line Data and Key Metrics Changes - Year-over-year loan growth was 8.1%, with a linked quarter growth of 1.4% annualized [10] - Net interest income for Q1 2019 was $28.3 million, up 10% from $25.7 million in Q1 2018 [19] - Mortgage banking revenues were $1.8 million, up from $1.4 million in the linked quarter and $1.7 million in Q1 2018 [28] Market Data and Key Metrics Changes - Total deposits increased by 8% year-over-year and 10% on a linked quarter annualized basis [13] - The lending environment remains competitive, with pressures on rates and structures [12] Company Strategy and Development Direction - The company aims for core balance sheet growth focusing on loan and deposit growth, overall revenue growth, expense control, and improved asset quality [45] - Emphasis on technology and digital strategy to enhance customer service and meet changing expectations [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual loan growth goals in the upper single digits despite a slower start [11][46] - The outlook for the margin remains positive, although there are pressures from increasing deposit costs [60] Other Important Information - The company announced a dividend increase to $0.19 per share, representing a 26% increase in annual dividend yield [14] - The total risk-based capital ratio was approximately 12.6% at the end of Q1 2019, supporting growth strategies [43] Q&A Session Summary Question: Outlook for net interest margin (NIM) - Management expects NIM to maintain similar levels but acknowledges potential downward pressure from increasing deposit costs [60] Question: Share repurchase priorities - The company remains focused on dividends and share repurchases as part of its long-term capital strategy [62] Question: Expectation for allowance trends - The allowance is expected to remain comparable, potentially improving with continued asset quality improvements [63][65] Question: Outlook for mortgage banking - The pipeline is strong, with expectations for a seasonal pickup in mortgage banking activity [74] Question: Provision expectations - Provision levels are expected to normalize with loan growth, around $1 million depending on actual volumes [79]

Call Start: 11:00 January 1, 0000 11:37 AM ET First Defiance Financial Corp. (FDEF) Q4 2018 Earnings Conference Call January 22, 2019 11:00 ET Company Participants Tera Murphy - VP & Marketing Director Don Hileman - President & CEO Kevin Thompson - EVP & CFO Brent Beard - Controller Paul Nungester - Director of Finance & Accounting Conference Call Participants Nick Cucharale - Sandler O'Neill & Partners Damon DelMonte - KBW Christopher Marinac - FIG Partners Operator Good morning. And welcome to the First D ...