19. Employee Benefit Plans

401(k) Plan

Employees of First Defiance are eligible to participate in the First Defiance Financial Corp. 401(k) Employee Savings Plan (the “First Defiance 401(k)”) if they meet certain age and service requirements. Beginning in 2009, under the First Defiance 401(k), First Defiance matches 100% of the participants’ contributions up to 3% of compensation and then 50% of the participants’ contributions for the next 2% of compensation. Previously, matching contributions were 50% of the first 3% of participants contributions. The First Defiance 401(k) also provides for a discretionary First Defiance contribution in addition to the First Defiance matching contribution. First Defiance matching contributions totaled $919,000, $868,000 and $799,000 for the years ended December 31, 2014, 2013 and 2012, respectively. There were no discretionary contributions in any of those years.

Group Life Plan

On June 30, 2010, First Federal adopted the First Federal Bank of the Midwest Executive Group Life Plan – Post Separation (the “Group Life Plan”) in which various employees, including the Company’s named executive officers, may participate. Under the terms of the Group Life Plan, First Federal will purchase and own life insurance policies covering the lives of employees selected by the board of directors of First Federal as participants. There was $167,000, ($35,000), and $76,000 of expense recorded for the years ended December 31, 2014, 2013 and 2012, respectively, with a liability of $892,000, $724,000 and $760,000 for future benefits recorded at December 31, 2014, 2013 and 2012, respectively. In 2014, management changed the discount rate to 4.25% to reflect the current interest rate environment which resulted in an increase of the group life plan liability as of December 31, 2014.