Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense are as follows:

	Years Ended December 31
	2013		2012		2011
	(In Thousands)
Current:
Federal	$	7,751	$	7,862	$	3,714
State and local		9		(50)		(91)
Deferred		1,518		200		3,042
	$	9,278	$	8,012	$	6,665

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The provision for income taxes differs from that computed at the statutory corporate tax rate as follows:

	Years Ended December 31
	2013		2012		2011
	(In Thousands)
Tax expense at statutory rate (35%)	$	11,030	$	9,337	$	7,769
Increases (decreases) in taxes from:
State income tax – net of federal tax benefit		4		(32)		(59)
Tax exempt interest income, net of TEFRA		(1,043)		(1,047)		(926)
Bank owned life insurance		(449)		(374)		(230)
Stock option expense		12		22		36
Captive insurance		(415)		-		-
Other		139		106		75
Totals	$	9,278	$	8,012	$	6,665

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components of First Defiance’s deferred federal income tax assets and liabilities are as follows:

	December 31
	2013		2012
	(In Thousands)
Deferred federal income tax assets:
Allowance for loan losses	$	8,798	$	9,349
Postretirement benefit costs		1,013		1,078
Deferred compensation		1,412		1,095
Impaired loans		986		1,531
Capital loss carry-forward		555		596
Impaired investments		971		846
Accrued vacation		581		499
Allowance for real estate held for sale losses		277		484
Deferred loan origination fees and costs		265		251
Other		718		844
Total deferred federal income tax assets		15,576		16,573
Deferred federal income tax liabilities:
FHLB stock dividends		3,238		3,259
Goodwill		4,586		4,293
Mortgage servicing rights		3,211		2,742
Fixed assets		1,693		1,353
Other intangible assets		607		954
Loan mark to market		515		766
Net unrealized gains on available-for-sale securities		488		2,612
Prepaid expenses		617		464
Other		56		52
Total deferred federal income tax liabilities		15,011		16,495
Net deferred federal income tax asset (liability)	$	565	$	78

Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2011	$	281
Additions based on tax positions related to the current year		-
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		-
Reductions due to the statute of limitations		(140)
Settlements		-
Balance at December 31, 2011	$	141
Balance at January 1, 2012	$	141
Additions based on tax positions related to the current year		-
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		-
Reductions due to the statute of limitations		(76)
Settlements		-
Balance at December 31, 2012	$	65
Balance at January 1, 2013	$	65
Additions based on tax positions related to the current year		-
Additions for tax positions of prior years		-
Reductions for tax positions of prior years		-
Reductions due to the statute of limitations		(65)
Settlements		-
Balance at December 31, 2013	$	-