Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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
	2014		2013		2012
	(In Thousands)
Current:
Federal	$	9,198	$	7,751	$	7,862
State and local		144		9		(50)
Deferred		(179)		1,518		200
	$	9,163	$	9,278	$	8,012

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
	2014		2013		2012
	(In Thousands)
Tax expense at statutory rate (35%)	$	11,709	$	11,030	$	9,337
Increases (decreases) in taxes from:
State income tax – net of federal tax benefit		94		4		(32)
Tax exempt interest income, net of TEFRA		(1,152)		(1,043)		(1,047)
Bank owned life insurance		(816)		(449)		(374)
Captive insurance		(390)		(415)		-
Other		(282)		151		128
Totals	$	9,163	$	9,278	$	8,012

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
	2014		2013
	(In Thousands)
Deferred federal income tax assets:
Allowance for loan losses	$	8,743	$	8,798
Postretirement benefit costs		1,149		1,013
Deferred compensation		1,629		1,412
Impaired loans		524		986
Capital loss carry-forward		-		555
Impaired investments		-		971
Accrued vacation		623		581
Allowance for real estate held for sale losses		333		277
Deferred loan origination fees and costs		311		265
Other		1,481		718
Total deferred federal income tax assets		14,793		15,576
Deferred federal income tax liabilities:
FHLB stock dividends		2,299		3,238
Goodwill		5,019		4,586
Mortgage servicing rights		3,181		3,211
Fixed assets		1,714		1,693
Other intangible assets		270		607
Loan mark to market		315		515
Net unrealized gains on available-for-sale securities		2,528		488
Prepaid expenses		622		617
Other		21		56
Total deferred federal income tax liabilities		15,969		15,011
Net deferred federal income tax asset (liability)	$	(1,176)	$	565

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, 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	$	-
Balance at January 1, 2014	$	-
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		-
Settlements		-
Balance at December 31, 2014	$	-