Earnings Review and Free Research Report: First Defiance Financial’s Net Interest Income Surged 27%

Research Desk Line-up: Jacksonville Bancorp Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on First Defiance Financial Corp. (NASDAQ: FDEF) (“First Defiance”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FDEF, following the Company’s disclosure of its financial results on July 17, 2017, for the second quarter fiscal 2017. The financial services Company reported improved efficiency ratio of 58.96%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Savings & Loans industry. Pro-TD has currently selected Jacksonville Bancorp, Inc. (NASDAQ: JXSB) for due-diligence and potential coverage as the Company reported on July 11, 2017, its unaudited net income for the three months which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Jacksonville Bancorp when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FDEF; also brushing on JXSB. With the links below you can directly download the report of your stock of interest-free of charge at:

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Earnings Reviewed

For three months ended June 30, 2017, First Defiance’s net interest income increased 26.9% to $24.63 million from $19.40 million in Q2 FY16 and below analysts’ expectations of $27.00 million. The increase was mainly attributable to operations from the Commercial Bancshares’ (CSB) merger and increase in interest and prepayment penalties along with steady net interest margin. During Q2 FY17, the net interest margin increased 18 basis points on a y-o-y basis.

During Q2 FY17, First Defiance’s noninterest income increased 18.2% to $10.14 million from $8.58 million in the same quarter last year. The increase was partially due to the merger and gains from the sale of securities. For the reported quarter, the Company’s gains from the sale of securities were $267,000 compared to $227,000 in Q2 FY16. For the reported quarter, the Company’s other noninterest income increased 164.9% on a y-o-y basis. The rise was mainly due to gains from the sale of real estate owned and sale of investments.

During Q2 FY17, the Company’s total non-interest expenses were $20.63 million compared to $17.35 million in the same quarter last year. The increase was due to additional expenses for the operations of CSB and Corporate One mergers completed in 2017.

For the reported quarter, First Defiance’s net income increased 15% on a y-o-y basis. During Q2 FY17, the Company’s net income was $8.35 million compared to $7.26 million in Q2 FY16. During Q2 FY17, the Company’s diluted EPS was $0.82 compared to $0.80 in the same quarter last year. For the reported quarter, analysts expected an EPS of $0.83. During Q2 FY17, the Company’s efficiency ratio improved to 58.96% from 61.51% in the same quarter last year.

During Q2 FY17, First Defiance’s Board of Directors declared a quarterly cash dividend of $0.25 per common share payable on August 25, 2017, to shareholders of record at the close of business on August 18, 2017. The dividend represented an annual dividend of 1.90% based on the Company’s common stock closing price on July 14, 2017.

Balance Sheet

As on June 30, 2017, First Defiance’s cash and cash equivalents increased 13.1% to $111.94 million from $99.00 million in Q2 FY16.

For the reported quarter, the Company’s total assets increased 19.9% to $2.89 billion from $2.41 billion in Q2 FY16. The increase was primarily due to the acquisition of CSB. During Q2 FY17, the Company’s yield on interest earning assets increased 23 basis points on a y-o-y basis and the cost of interest-bearing liabilities increased 7 basis points on a y-o-y basis.

During Q2 FY17, First Defiance’s total deposits increased 21.4% to $2.33 billion from $1.92 billion in the same quarter last year. The increase reflected the acquisition of CSB and, excluding the acquisition, the increase was 5.1% on a y-o-y basis.

For the reported quarter, First Defiance’s net loans receivable, excluding loans held for sale, were $2.23 billion compared to $1.84 billion in Q2 FY16. Excluding the CSB acquired loans, net loans receivable increased 5.8% on a y-o-y basis.

For the reported quarter, the Company’s return on average assets ratio was 1.15% compared to 1.22% in Q2 FY16. During Q2 FY17, First Defiance’s return on average equity ratio was 9.36% compared to 10.34% in the same quarter last year.

Credit Quality

As on June 30, 2017, First Defiance’s non-performing loans increased 84.9%to $30.36 million from $16.42 million in Q2 FY16. The increase was mainly attributable to two loans totaling $13.6 million downgraded in the reported quarter. During Q2 FY17, the allowance for loan loss as a percentage of total loans was 1.15% compared to 1.39% in Q2 FY16. The decrease was primarily attributable to the CSB’s acquisition.

Stock Performance

At the closing bell, on Tuesday, July 18, 2017, First Defiance Financial’s stock slipped 4.33%, ending the trading session at $50.76. A total volume of 47.38 thousand shares has exchanged hands, which was higher than the 3-month average volume of 33.73 thousand shares. The Company’s stock price rallied 7.41% in the past six months and 28.64% in the previous twelve months. Moreover, the stock gained 0.04% since the start of the year. The stock is trading at a PE ratio of 17.28 and has a dividend yield of 1.97%. The stock currently has a market cap of $518.26 million.

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