SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT



                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934



         Date of Report (Date of earliest event reported): July 1, 1998



                         FIRST DEFIANCE FINANCIAL CORP.
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             (Exact name of registrant as specified in its charter)




          OHIO                          0-26850                 34-1803915
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(State or other jurisdiction of   (Commission File No.)  (IRS Employer I.D. No.)
incorporation)




                    601 Clinton Street, Defiance, Ohio 43512
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               (Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code:       (419) 762-5015

                                    FORM 8-K



Item 2.           Acquisition or Disposition of Assets.

                  Exhibit 1.  Press Release Announcing Completion of the
                              Acquisition.



                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereto duly authorized.



Date:    July 16, 1998                      FIRST DEFIANCE FINANCIAL CORP.




                                            By: /s/ John C. Wahl
                                                ------------------------
                                                John C. Wahl
                                                Senior Vice President,
                                                Chief Financial Officer

                                    EXHIBIT 1

CONTACT: Don C. Van Brackel, Chairman, President and CEO
                  First Defiance Financial Corp.
                  (419) 782-5015

                  Alvin A. Siegal, Chairman and CEO
                  The Leader Mortgage Company
                  (216) 696-8000

           First Defiance Financial Corp. Announces the Completion of
                 the Acquisition of The Leader Mortgage Company

Defiance, Ohio, July 1, 1998 -- First Defiance Financial Corp. (Nasdaq NMS-FDEF)
("First  Defiance") today announced that it has completed the acquisition of The
Leader Mortgage  Company  ("Leader"),  a privately held,  Cleveland,  Ohio-based
mortgage banking company.  Under terms of the agreement,  the aggregate purchase
price was $39.6 million in cash. The pricing reflects 310% of Leader's March 31,
1998 book value (adjusted for certain journal entries to be recorded at closing)
and 8.4 times Leader's pro forma fiscal September 30, 1998 earnings.

Leader will operate as a subsidiary of First Defiance's wholly owned subsidiary,
First Federal Savings and Loan ("First  Federal"),  Defiance,  Ohio. Leader will
maintain its  Cleveland  headquarters  and continue to operate  under The Leader
Mortgage  Company  name.  First  Defiance  does  not  anticipate  any  staff  or
management changes as a result of the merger.

Leader,  founded in 1960 by  Chairman  Alvin A.  Siegal,  is a mortgage  banking
company specializing in bond programs for first-time homebuyers.  As of June 30,
1998, the company had a total servicing portfolio of approximately  81,000 loans
and $4.7  billion.  Unaudited  earnings  for the six months ended March 31, 1998
were $2.1 million. Loan originations for the six months ended March 31, 1998 and
fiscal  year  ended  September  30,  1997 were $566  million  and $1.1  billion,
respectively.  The  equity of Leader at March 31,  1998,  adjusted  for  certain
anticipated  closing entries,  was $12.8 million.  Leader's return on equity for
the six months ended March 31, 1998 (annualized and adjusted for certain closing
entries)  and the fiscal  year  ended  September  30,  1997 were 32.5% and 24.1%
respectively.

"We are very happy to announce the  completion of this  transaction  and we look
forward to a long and  successful  relationship,"  commented Don C. Van Brackel,
First  Defiance's  Chairman  and CEO.  "First  of all,  Leader  is an  excellent
performer which has recently achieved  outstanding  financial  results.  Second,
their niche in the first time  home-buyer bond programs has allowed them to grow
substantially  the last several  years.  And, most  importantly,  all of the key
members of management will be staying."

"We  believe  that  there will be  significant  cross-selling  potential  within
Leader's  customer base,"  continued Van Brackel.  "We also believe we will have
some opportunities with our funding sources to reduce Leader's overall borrowing
costs and we also will have an opportunity to take advantage of the  substantial
escrow deposits that Leader maintains.  We also believe the combination of these
two  institutions  will be accretive to First Defiance's net income and earnings
per share  immediately upon acquisition.  We have been seeking  opportunities to
better  leverage  our  capital  base since our  conversion  from mutual to stock
ownership.  This transaction  will help us to accomplish that objective,  and it
should result in an enhanced return on equity for First Defiance in the future."

Alvin Siegal, Leader's principal shareholder and its Chairman and CEO added that
"Leader is excited  about this  merger  with First  Defiance.  With an  expanded
capital  base Leader will be in a position to  increase  its  activities  in the
origination   and  servicing  of  residential   mortgage  loans  for  first-time
homebuyers  through the programs in which we operate.  Additionally,  we believe
that the increased  capital will allow Leader to expand into states where growth
had been limited in the past due to Leader's  capital  constraints."  Mr. Siegal
continued,  "We are pleased that the operations of Leader will remain intact. We
believe that this combination is beneficial for our shareholders,  customers and
employees."

First Defiance  Financial Corp.  conducts business  primarily through its wholly
owned  subsidiary,  First Federal Savings and Loan,  Defiance,  Ohio, which is a
federally  chartered savings and loan association.  It currently has eleven full
service  offices  located in five counties in the  northwestern  corner of Ohio.
Total  assets at March 31, 1998 were $577 million and  stockholders'  equity was
$102 million. First Defiance was represented in this transaction by Charles Webb
& Company,  a division of Keefe,  Bruyette & Woods.  Leader was  represented  by
McDonald & Company Securities, Inc.

This press release may contain certain forward-looking  statements regarding the
acquisition  of  Leader,  including  earnings  accretion,  which  are  based  on
management's current expectations regarding economic, legislative and regulatory
issues.  The factors which may cause future results to vary materially  include,
but are not limited to, general economic conditions,  changes in interest rates,
loan demand,  and  competition;  changes in accounting  principles,  policies or
guidelines;   changes  in  legislation  or  regulation;   and,  other  economic,
competitive,  regulatory  and  technological  factors  affecting  each company's
operations, pricing, products and services.