Exhibit 99

For Immediate Release

FIRST DEFIANCE FINANCIAL CORP. ANNOUNCES 2010

THIRD QUARTER EARNINGS

• Net Income of $2.3 million for 2010 third quarter, up from $329,000 in the third quarter of 2009

• Provision for Loan Losses of $5.2 million, down from $8.1 million in the third quarter of 2009

• Charge of $527,000 on previously recorded Mortgage Servicing Rights Assets

• Net Interest Margin of 3.94%, up from 2009 second quarter of 3.88%

• Other-Than-Temporary Impairment of $190,000 recognized on certain investment securities

DEFIANCE, OHIO (October 25, 2010) – First Defiance Financial Corp. (NASDAQ: FDEF) today announced that net income for its third quarter ended September 30, 2010 totaled $2.3 million or $0.22 per diluted common share, compared to $329,000 or ($0.02) per diluted common share for the quarter ended September 30, 2009.

For the nine month period ended September 30, 2010, First Defiance earned $5.8 million or $0.53 per diluted common share compared to $6.6 million or $0.63 per diluted common share for the nine month period ended September 30, 2009.

“The sluggish economic environment impacted our results for the third quarter,” said William J. Small, Chairman, President, and Chief Executive Officer of First Defiance Financial Corp. “Most core operating metrics were again very solid, however, additional provision expense and additional expenses related to collections and Other Real Estate Owned had a negative effect on earnings. We are pleased with the strong mortgage banking results this quarter, bolstered by the low rate environment. And despite the challenges, we saw improvement in our quarterly income this year compared to the third quarter of 2009.”

Credit Quality

The third quarter 2010 results include expense for provision for loan losses of $5.2 million, compared with $8.1 million in the same period in 2009 and $5.4 million in the second quarter of 2010. “In light of the continued uncertain economic environment, including high unemployment, slower economic growth activity and the ongoing instability of the commercial

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real estate market, we believe it is responsible to maintain higher general reserves at this time,” said Small. The allowance for loan loss as a percentage of average total loans increased to 2.66% at September 30, 2010 from 2.47% at June 30, 2010 and 1.92% at September 30, 2009.

Non-performing loans totaled $46.2 million at September 30, 2010, up from $40.1 million at September 30, 2009. The September 30, 2010 balance included $37.4 million of loans that are on non-accrual or 90 days past due and another $8.8 million of loans considered non-performing because of changes in terms granted to borrowers, although the loans are still accruing interest. In addition, First Defiance had $11.1 million of Other Real Estate Owned at September 30, 2010. For the third quarter of 2010, First Defiance recorded net charge-offs of $2.7 million, which represented 0.70% of average loans outstanding (annualized) for the quarter, compared with 1.44% in the second quarter of 2010 and 0.66% in the third quarter of 2009.

“Asset quality continues to be a drag on earnings in this economy,” Small said. “We devote significant resources to the monitoring and early recognition of any weaknesses in the portfolio. While we are not seeing new specific loan problems arise in the portfolio, more credits are moving through the credit process toward final disposition. We also saw a reduction in charge-offs in the linked quarters. However, the overall continuation of the reserve build was appropriate based on our view of the near term direction of the economy.”

Investment Portfolio

The Other-Than-Temporary Impairment (OTTI) charge recognized by First Defiance in the third quarter of 2010 totaled $190,000, compared with $994,000 in the third quarter of 2009. The 2010 third quarter OTTI charge related to two Trust Preferred Collateralized Debt Obligations (CDOs) with a remaining book value of $860,000, and FNMA and FHMC stock with a remaining book balance of $35,000.

First Defiance also has other Trust Preferred CDO investments with a total book value of $2.8 million and fair value of $1.1 million at September 30, 2010. Two of these investments with a book value of $2.0 million and a fair value of $934,000 continue to pay principal and interest in accordance with the contractual terms of the securities. The decline in value of those investments is primarily due to the overall lack of liquidity in the CDO market. Management has not deemed the impairment in value of these CDO investments to be Other-Than-Temporary and, therefore, has not recognized the reduction in value of those investments in earnings. The third investment with a book value of $899,000 and a fair value of $151,000 has been written down with OTTI charges in prior periods, but the third quarter of 2010 analysis did not result in additional OTTI for this investment.

Net Interest Margin

Net interest income increased to $17.8 million in the third quarter of 2010 compared to $17.6 million in the 2009 third quarter, and was up from $17.6 million for the second quarter of 2010. Net interest margin was 3.94% for the 2010 third quarter compared to 3.88% in the third quarter of 2009. Yield on interest earning assets declined by 29 basis points, to 5.31% in the third quarter of 2010 from 5.60% in the 2009 third quarter while the cost of interest-bearing liabilities and non-interest-bearing demand deposits decreased by 37 basis points, to 1.40% from 1.77%.

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“Our continued focus on managing the margin and adjusting our pricing strategy in this challenging rate environment resulted in the improvement in the net interest margin this quarter,” said Small “We see an extended low rate environment as one of the challenges to the net interest margin for the remainder of this year and into 2011.”

Non-Interest Income

Non-interest income for the 2010 third quarter increased to $7.5 million from $5.6 million in the third quarter of 2009. Loss on investment securities in the third quarter of 2010 was $190,000 related entirely to OTTI charges, compared with a third quarter 2009 net loss of $840,000, which was comprised of OTTI charges of $994,000 offset by security gains of $154,000.

Mortgage banking income increased to $2.3 million in the third quarter of 2010, from $980,000 for the same period in 2009. Gains from the sale of mortgage loans increased in the third quarter of 2010 to $2.9 million from $1.5 million in the third quarter of 2009. Mortgage loan servicing revenue increased slightly for the 2010 third quarter compared to 2009. The increases in gains and servicing revenue were partially offset by expense increases of $284,000 for the amortization of mortgage servicing rights.

First Defiance recorded a negative valuation allowance adjustment of $527,000 on mortgage servicing rights (MSR) in the third quarter of 2010 compared to a negative valuation adjustment of $772,000 in the third quarter of 2009. The MSR valuation adjustment is a reflection of the change in the fair value of certain sectors of First Defiance’s portfolio of MSRs.

Insurance and investment sale income was $1.4 million in the third quarter of 2010, up from $1.1 million in the third quarter of 2009.

“Mortgage banking activity in the third quarter picked up dramatically from the second quarter,” commented Small. “In the third quarter of 2010 we generated $130 million in loans compared to $67 million in the second quarter of 2010 and $90.5 million in loans in the third quarter of 2009. Due to the lower rate environment, we also recorded additional impairment on our previously recorded servicing rights.”

Non-Interest Expenses

Total non-interest expense was $17.1 million for the quarter ended September 30, 2010, which included $16,000 of acquisition-related charges attributable to the purchase of an employee benefits business in northwestern Ohio by First Insurance and Investments, Inc., an increase from the $14.8 million of non-interest expense for the quarter ended September 30, 2009.

Compensation and benefits increased by $563,000 compared to the 2009 third quarter. The increase is primarily due to adjustments in performance based variable compensation. Occupancy expense in the third quarter of 2010 was $1.7 million, down from $1.9 million in the third quarter of 2009. FDIC insurance expense increased to $907,000 in the third quarter of 2010 from $649,000 in the same period of 2009 as a result of the FDIC rate increases and higher insured deposits. Other non-interest expense increased to $5.2 million in the third quarter of 2010 from $3.7 million in the third quarter of 2009. Credit, collection and OREO-related costs

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increased $1.5 million over the third quarter of 2009. These increases were partially offset by decreases in marketing and postage.

Year-To-Date Results

For the nine month period ended September 30, 2010, net interest income totaled $52.4 million, compared with $49.8 million in the first nine months of 2009. Average interest-earning assets increased to $1.83 billion for the nine months of 2010 compared to $1.81 billion for the first nine months of 2009. Net interest margin for the first nine months of 2010 was 3.89%, up 16 basis points from the 3.73% margin reported in the nine month period ended September 30, 2009.

The provision for loan losses for the first nine months of 2010 was $17.5 million, compared to $14.8 million recorded during the first nine months of 2009.

Non-interest income for the first nine months of 2010 was $20.0 million compared to $20.7 million during the same period of 2009. Most of the non-interest income decline was in mortgage banking, which declined to $5.1 million for the first nine months of 2010 compared to $7.7 million in the first nine months of 2009. In addition, service fees and other charges were $9.9 million for the first nine months of 2010 compared to $10 million during the first nine months of 2009. Non-interest income for the first nine month period of 2010 was reduced by $331,000 of OTTI charges recognized for impaired investment securities compared with $2.5 million during the first nine months of 2009.

Non-interest expense increased to $47.0 million for the first nine months of 2010 from $45.9 million in 2009. Excluding one-time acquisition-related charges of $53,000, non-interest expense was $46.9 million for the first nine months of 2010. For the nine months ending September 30, 2010 compared to the same period in 2009, occupancy costs declined $600,000, FDIC insurance expense increased by $168,000, and credit, collection and OREO-related costs have increased $2.3 million. Year to date 2010 non-interest expense included the $53,000 of charges associated with the acquisition of a group medical benefits book of business and $457,000 related to the core system conversion that will take place later this year.

“We believe that we will see stronger indications of improvement in the national and local economies in the near future, but we also realize many challenges remain for certain sectors,” said Small. “We have positioned First Defiance to address these challenges as the economy slowly builds back to a healthier level of activity.”

Total Assets at $2.05 Billion

Total assets at September 30, 2010 were $2.05 billion, compared to $2.02 billion at September 30, 2009. Net loans receivable (excluding loans held for sale) were $1.51 billion at September 30, 2010 compared to $1.59 billion at September 30, 2009. Total cash and cash equivalents were $148.7 million at September 30, 2010 compared with $77.3 million at September 30, 2009, an increase of $71.4 million. Total deposits at September 30, 2010 were $1.59 billion compared to $1.54 billion at September 30, 2009, an increase of $47.6 million. Non-interest bearing deposits at September 30, 2010 were $213.4 million compared to $174.1 million at September 30, 2009. Total stockholders’ equity was $241.0 million at September 30,

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2010 compared to $234.5 million at September 30, 2009. Also at September 30, 2010, goodwill and other intangible assets totaled $64.0 million compared to $63.8 million at September 30, 2009.

Conference Call

First Defiance Financial Corp. will host a conference call at 11:00 a.m. (EDT) on Tuesday, October 26, 2010 to discuss the earnings results and business trends.

The conference call may be accessed by calling 1-800-860-2442. Internet access to the call is also available (in listen-only mode) at the following URL: http://www.talkpoint.com/viewer/starthere.asp?Pres=132180.

Audio replay of the Internet Web cast will be available at www.fdef.com until Monday November 29th, 2010 at 9:00 a.m.

First Defiance Financial Corp.

First Defiance Financial Corp., headquartered in Defiance, Ohio, is the holding company for First Federal Bank of the Midwest and First Insurance & Investments. First Federal operates 33 full service branches and 45 ATM locations in northwest Ohio, southeast Michigan and Fort Wayne, Indiana. First Insurance & Investments specializes in property and casualty and group health and life insurance, with offices in Defiance, Bryan, Archbold and Bowling Green, Ohio.

For more information, visit the company’s Web site at www.fdef.com.

Financial Statements and Highlights Follow-

Safe Harbor Statement

This news release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21 B of the Securities Act of 1934, as amended, which are intended to be safe harbors created thereby. Those statements may include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts and plans of First Defiance Financial Corp. and its management, and specifically include statements regarding: changes in economic conditions, the nature, extent and timing of governmental actions and reforms, future movements of interest rates, the production levels of mortgage loan generation, the ability to continue to grow loans and deposits, the ability to benefit from a changing interest rate environment, the ability to sustain credit quality ratios at current or improved levels, the ability to sell OREO properties, continued strength in the market area for First Federal Bank of the Midwest, and the ability of the Company to grow in existing and adjacent markets. These forward-looking statements involve numerous risks and uncertainties, including those inherent in general and local banking, insurance and mortgage conditions, competitive factors specific to markets in which the Company and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions or capital market conditions and other risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission (SEC) filings, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. One or more of these factors have affected or could in the future affect the Company’s business and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurances that the forward-looking statements included in this news release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this news release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

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Consolidated Balance Sheets

First Defiance Financial Corp.

(in thousands)	(Unaudited) September  30, 2010			December 31, 2009			September 30, 2009
Assets
Cash and cash equivalents
Cash and amounts due from depository institutions	$	31,662		$	29,613		$	30,207
Interest-bearing deposits		117,000			91,503			47,109
		148,662			121,116			77,316
Securities
Available-for sale, carried at fair value		156,355			137,458			126,985
Held-to-maturity, carried at amortized cost		918			1,920			1,697
		157,273			139,378			128,682
Loans		1,553,546			1,617,122			1,623,627
Allowance for loan losses		(41,343	)		(36,547	)		(31,248	)
Loans, net		1,512,203			1,580,575			1,592,379
Loans held for sale		21,613			10,346			24,340
Mortgage servicing rights		8,289			8,958			8,350
Accrued interest receivable		7,248			6,851			8,110
Federal Home Loan Bank stock		21,376			21,376			21,376
Bank Owned Life Insurance		32,751			30,804			30,585
Office properties and equipment		42,276			43,597			46,372
Real estate and other assets held for sale		11,127			13,527			9,352
Goodwill		57,556			56,585			56,585
Core deposit and other intangibles		6,485			6,888			7,242
Deferred taxes		4,865			3,289			1,305
Other assets		14,384			14,233			6,604
Total Assets	$	2,046,108		$	2,057,523		$	2,018,598
Liabilities and Stockholders’ Equity
Non-interest-bearing deposits	$	213,414		$	189,132		$	174,145
Interest-bearing deposits		1,377,234			1,391,094			1,368,940
Total deposits		1,590,648			1,580,226			1,543,085
Advances from Federal Home Loan Bank		116,896			146,927			146,937
Notes payable and other interest-bearing liabilities		41,923			48,398			43,280
Subordinated debentures		36,083			36,083			36,083
Advance payments by borrowers for tax and insurance		501			665			492
Other liabilities		19,028			11,138			14,192
Total liabilities		1,805,079			1,823,437			1,784,069
Stockholders’ Equity
Preferred stock- including warrants and amortization of discount on preferred shares		36,418			36,293			36,252
Common stock, net		127			127			127
Common stock warrant		878			878			878
Additional paid-in-capital		140,808			140,677			140,622
Accumulated other comprehensive income (loss)		2,198			(158	)		446
Retained earnings		133,228			128,900			128,835
Treasury stock, at cost		(72,628	)		(72,631	)		(72,631	)
Total stockholders’ equity		241,029			234,086			234,529
Total liabilities and stockholders’ equity	$	2,046,108		$	2,057,523		$	2,018,598

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Consolidated Statements of Income (Unaudited)

First Defiance Financial Corp.

	Three Months Ended September 30,						Nine Months  Ended September 30,
(in thousands, except per share amounts)	2010			2009			2010			2009
Interest Income:
Loans	$	22,230		$	23,766		$	67,104		$	70,229
Investment securities		1,534			1,422			4,556			4,388
Interest-bearing deposits		68			41			198			89
FHLB stock dividends		225			258			678			726
Total interest income		24,057			25,487			72,536			75,432
Interest Expense:
Deposits		4,667			6,163			15,192			20,206
FHLB advances and other		1,187			1,267			3,625			3,865
Subordinated debentures		332			344			982			1,139
Notes Payable		109			140			329			433
Total interest expense		6,295			7,914			20,128			25,643
Net interest income		17,762			17,573			52,408			49,789
Provision for loan losses		5,196			8,051			17,525			14,762
Net interest income after provision for loan losses		12,566			9,522			34,883			35,027
Non-interest Income:
Service fees and other charges		3,301			3,577			9,856			9,989
Mortgage banking income		2,322			980			5,114			7,677
Gain on sale of non-mortgage loans		10			151			97			251
Gain on securities		—			154			6			279
Impairment on securities		(190	)		(994	)		(331	)		(2,541	)
Insurance and investment sales commissions		1,421			1,129			3,838			3,945
Trust income		118			101			372			306
Income from Bank Owned Life Insurance		226			201			917			338
Other non-interest income		271			257			167			475
Total Non-interest Income		7,479			5,556			20,036			20,719
Non-interest Expense:
Compensation and benefits		7,114			6,551			20,161			21,501
Occupancy		1,734			1,860			5,264			5,901
FDIC insurance premium		907			649			2,881			2,713
State franchise tax		542			571			1,621			1,668
Data processing		1,186			1,100			3,556			3,330
Amortization of intangibles		356			355			1,139			1,101
One time acquisition related charges		16			—			53			—
Other non-interest expense		5,247			3,700			12,303			9,701
Total Non-interest Expense		17,102			14,786			46,978			45,915
Income before income taxes		2,943			292			7,941			9,831
Income taxes		668			(37	)		2,100			3,193
Net Income	$	2,275		$	329		$	5,841		$	6,638
Dividends Accrued on Preferred Shares		(463	)		(473	)		(1,388	)		(1,403	)
Accretion on Preferred Shares		(43	)		(40	)		(125	)		(118	)
Net Income (loss) Applicable to Common Shares	$	1,769		$	(184	)	$	4,328		$	5,117
Earnings (loss) per common share:
Basic	$	0.22		$	(0.02	)	$	0.53		$	0.63
Diluted	$	0.22		$	(0.02	)	$	0.53		$	0.63
Core operating earnings per common share*:
Basic	$	0.22		$	(0.02	)	$	0.54		$	0.63
Diluted	$	0.22		$	(0.02	)	$	0.54		$	0.63
Average Shares Outstanding:
Basic		8,118			8,117			8,118			8,117
Diluted		8,118			8,117			8,143			8,172

* - See Non-GAAP Disclosure Reconciliations

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Financial Summary and Comparison

First Defiance Financial Corp.

	(Unaudited) Three Months  Ended September 30,									(Unaudited) Nine Months  Ended September 30,
(dollars in thousands, except per share data)	2010			2009			% change			2010			2009			% change
Summary of Operations
Tax-equivalent interest income (1)	$	24,373		$	25,796			(5.5	)%	$	73,456		$	76,293			(3.7	)%
Interest expense		6,295			7,914			(20.5	)		20,128			25,643			(21.5	)
Tax-equivalent net interest income (1)		18,078			17,882			1.1			53,328			50,650			5.3
Provision for loan losses		5,196			8,051			(35.5	)		17,525			14,762			18.7
Tax-equivalent NII after provision for loan loss (1)		12,882			9,831			31.0			35,803			35,888			(0.2	)
Investment Securities gains (losses)		(190	)		(840	)		(77.4	)		(325	)		(2,262	)		(85.6	)
Non-interest income-excluding securities losses		7,669			6,396			19.9			20,361			22,981			(11.4	)
Non-interest expense		17,102			14,786			15.7			46,978			45,915			2.3
Non-interest expense-excluding non-core charges		17,086			14,786			15.6			46,925			45,915			2.2
One time acquisition related charges		16			—			NM			53			—			NM
Income taxes		668			(37	)		(1,905.4	)		2,100			3,193			(34.2	)
Net Income		2,275			329			591.5			5,841			6,638			(12.0	)
Dividends Declared on Preferred Shares		(463	)		(473	)		(2.1	)		(1,388	)		(1,403	)		(1.1	)
Accretion on Preferred Shares		(43	)		(40	)		7.5			(125	)		(118	)		5.9
Net Income Applicable to Common Shares		1,769			(184	)		(1,061.4	)		4,328			5,117			(15.4	)
Core operating earnings (2)		2,285			329			594.5			5,875			6,638			(11.5	)
Tax equivalent adjustment (1)		316			309			2.3			920			861			6.9
At Period End
Assets		2,046,108			2,018,598			1.4
Earning assets		1,870,808			1,845,134			1.4
Loans		1,553,546			1,623,627			(4.3	)
Allowance for loan losses		41,343			31,248			32.3
Deposits		1,590,648			1,543,085			3.1
Stockholders’ equity		241,029			234,529			2.8
Average Balances
Assets		2,045,878			2,029,970			0.8			2,051,770			2,014,238			1.9
Earning assets		1,823,954			1,826,400			(0.1	)		1,833,710			1,812,230			1.2
Deposits and interest-bearing liabilities		1,790,022			1,778,223			0.7			1,799,125			1,764,667			2.0
Loans		1,545,421			1,613,529			(4.2	)		1,552,408			1,600,878			(3.0	)
Deposits		1,585,300			1,550,369			2.3			1,586,420			1,538,986			3.1
Stockholders’ equity		240,709			234,241			2.8			237,759			231,912			2.5
Stockholders’ equity / assets		11.77	%		11.54	%		2.0			11.59	%		11.51	%		0.6
Per Common Share Data
Net Income
Basic	$	0.22		$	(0.02	)		(1,200.0	)	$	0.53		$	0.63			(15.9	)
Diluted		0.22			(0.02	)		(1,200.0	)		0.53			0.63			(15.9	)
Core operating earnings (2)
Basic	$	0.22		$	(0.02	)		(1,066.8	)	$	0.54		$	0.63			(14.8	)
Diluted		0.22			(0.02	)		(1,066.8	)		0.54			0.63			(14.5	)
Dividends		—			0.04			(100.0	)		—			0.30			(100.0	)
Market Value:
High	$	10.63		$	18.33			(42.0	)	$	14.85		$	18.33			(19.0	)
Low		8.55			12.00			(28.8	)		8.53			3.76			126.9
Close		10.06			14.91			(32.5	)		10.06			14.91			(32.5	)
Book Value		25.10			24.32			3.2			25.10			24.32			3.2
Tangible Book Value		17.21			16.45			4.6			17.21			16.45			4.6
Shares outstanding, end of period (000)		8,118			8,118			—			8,118			8,118			—
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.94	%		3.88	%		1.5			3.89	%		3.73	%		4.3
Return on average assets - GAAP		0.44	%		0.06	%		586.1			0.38	%		0.44	%		(13.6	)
Return on average equity - GAAP		3.75	%		0.56	%		572.9			3.28	%		3.83	%		(14.2	)
Efficiency ratio (3) - GAAP		66.42	%		60.90	%		9.1			63.75	%		62.36	%		2.2
Effective tax rate		22.70	%		-12.67	%		(279.1	)		26.45	%		32.48	%		(18.6	)
Dividend payout ratio (basic)		0.00	%		-200.00	%		(100.0	)		0.00	%		46.83	%		(100.0	)

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35%

(2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains or losses, net.

NM Percentage change not meaningful

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Non-GAAP Disclosure Reconciliations

First Defiance Financial Corp.

Management believes that the presentation of the non-GAAP financial measures in this release assists investors when comparing results period-to-period in a more meaningful and consistent manner and provides a better measure of results for First Defiance’s ongoing operations.

Core operating earnings are net income adjusted to exclude discontinued operations, merger, integration and restructuring expenses and the results of certain significant transactions not representative of ongoing operations.

Core Operating Earnings	Three months ended September 30,					Nine Months Ended September 30,
(dollars in thousands, except per share data)	2010			2009		2010			2009
Net Income	$	2,275		$	329	$	5,841		$	6,638
Acquisition related charges		16			—		53			—
Tax effect		(6	)		—		(19	)		—
After-tax non-operating items		10			—		34			—
Core operating earnings	$	2,285		$	329	$	5,875		$	6,638

Acquisition related charges in 2010 reflect charges associated with the purchase of the group benefits business from Andres, O’Neil & Lowe.

Core operating earnings is used as the numerator to calculate core operating return on average assets, core operating return on average equity and core operating earnings per share. Additionally, non-operating items are deducted from non-interest expense in the numerator and non-interest income in the denominator of the core operating efficiency ratio disclosed in the tables. Comparable information on a GAAP basis is also provided in the tables.

Income from Mortgage Banking

Revenue from sales and servicing of mortgage loans consisted of the following:

	Three months  ended September 30,						Nine Months  Ended September 30,
(dollars in thousands)	2010			2009			2010			2009
Gain from sale of mortgage loans	$	2,886		$	1,541		$	5,262		$	7,276
Mortgage loan servicing revenue (expense):
Mortgage loan servicing revenue		761			725			2,263			2,109
Amortization of mortgage servicing rights		(798	)		(514	)		(1,634	)		(2,625	)
Mortgage servicing rights valuation adjustments		(527	)		(772	)		(777	)		917
		(564	)		(561	)		(148	)		401
Total revenue from sale and servicing of mortgage loans	$	2,322		$	980		$	5,114		$	7,677

9

Yield Analysis

First Defiance Financial Corp.

	Three Months Ended September 30, (dollars in thousands)
	2010							2009
	Average Balance		Interest(1)		Yield Rate(2)			Average Balance		Interest(1)		Yield Rate(2)
Interest-earning assets:
Loans receivable	$	1,545,421	$	22,266		5.72	%	$	1,613,529	$	23,812		5.85	%
Securities		159,045		1,814		4.64	%		130,673		1,685		5.08	%
Interest Bearing Deposits		98,112		68		0.27	%		60,822		41		0.27	%
FHLB stock		21,376		225		4.18	%		21,376		258		4.79	%
Total interest-earning assets		1,823,954		24,373		5.31	%		1,826,400		25,796		5.60	%
Non-interest-earning assets		221,924							203,570
Total assets	$	2,045,878						$	2,029,970
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	1,385,093	$	4,667		1.34	%	$	1,374,441	$	6,163		1.78	%
FHLB advances and other		123,566		1,187		3.81	%		146,941		1,267		3.42	%
Other Borrowings		44,927		109		0.96	%		44,685		140		1.24	%
Subordinated debentures		36,229		332		3.64	%		36,228		344		3.77	%
Total interest-bearing liabilities		1,589,815		6,295		1.57	%		1,602,295		7,914		1.96	%
Non-interest bearing deposits		200,207		—		—			175,928		—		—
Total including non-interest-bearing demand deposits		1,790,022		6,295		1.40	%		1,778,223		7,914		1.77	%
Other non-interest-bearing liabilities		15,147							17,506
Total liabilities		1,805,169							1,795,729
Stockholders’ equity		240,709							234,241
Total liabilities and stockholders’ equity	$	2,045,878						$	2,029,970
Net interest income; interest rate spread			$	18,078		3.74	%			$	17,882		3.64	%
Net interest margin (3)						3.94	%						3.88	%
Average interest-earning assets to average interest bearing liabilities						115	%						114	%
	Nine Months Ended September 30,
	2010							2009
	Average Balance		Interest(1)		Yield Rate(2)			Average Balance		Interest(1)		Yield Rate(2)
Interest-earning assets:
Loans receivable	$	1,552,408	$	67,216		5.79	%	$	1,600,878	$	70,333		5.87	%
Securities		152,318		5,364		4.79	%		126,883		5,145		5.36	%
Interest Bearing Deposits		107,608		198		0.25	%		63,093		89		0.19	%
FHLB stock		21,376		678		4.24	%		21,376		726		4.54	%
Total interest-earning assets		1,833,710		73,456		5.36	%		1,812,230		76,293		5.61	%
Non-interest-earning assets		218,060							202,008
Total assets	$	2,051,770						$	2,014,238
Deposits and Interest-bearing liabilities:
Interest bearing deposits	$	1,393,747	$	15,192		1.46	%	$	1,366,645	$	20,206		1.98	%
FHLB advances and other		130,745		3,625		3.71	%		146,994		3,865		3.52	%
Other Borrowings		45,731		329		0.96	%		42,446		433		1.36	%
Subordinated debentures		36,229		982		3.62	%		36,241		1,139		4.20	%
Total interest-bearing liabilities		1,606,452		20,128		1.67	%		1,592,326		25,643		2.15	%
Non-interest bearing deposits		192,673		—		—			172,341		—		—
Total including non-interest-bearing demand deposits		1,799,125		20,128		1.50	%		1,764,667		25,643		1.94	%
Other non-interest-bearing liabilities		14,886							17,659
Total liabilities		1,814,011							1,782,326
Stockholders’ equity		237,759							231,912
Total liabilities and stockholders’ equity	$	2,051,770						$	2,014,238
Net interest income; interest rate spread			$	53,328		3.69	%			$	50,650		3.46	%
Net interest margin (3)						3.89	%						3.73	%
Average interest-earning assets to average interest bearing liabilities						114	%						114	%

(1) Interest on certain tax exempt loans and securities is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 35%.

(2) Annualized

(3) Net interest margin is net interest income divided by average interest-earning assets.

10

Selected Quarterly Information

First Defiance Financial Corp.

(dollars in thousands, except per share data)	3rd Qtr 2010			2nd Qtr 2010			1st Qtr 2010			4th Qtr 2009			3rd Qtr 2009
Summary of Operations
Tax-equivalent interest income (1)	$	24,373		$	24,655		$	24,427		$	25,434		$	25,796
Interest expense		6,295			6,788			7,044			7,614			7,914
Tax-equivalent net interest income (1)		18,078			17,867			17,383			17,820			17,882
Provision for loan losses		5,196			5,440			6,889			8,470			8,051
Tax-equivalent NII after provision for loan losses (1)		12,882			12,427			10,494			9,350			9,831
Investment securities gains (losses)		(190	)		(71	)		(64	)		(1,394	)		(840	)
Non-interest income (excluding securities gains/losses)		7,669			5,862			6,830			6,970			6,396
Non-interest expense		17,102			15,045			14,832			14,609			14,786
Income taxes		668			808			624			(525	)		(37	)
Net income		2,275			2,059			1,506			555			329
Dividends Declared on Preferred Shares		(463	)		(462	)		(463	)		(447	)		(473	)
Accretion on Preferred Shares		(43	)		(42	)		(40	)		(41	)		(40	)
Net Income (loss) Applicable to Common Shares		1,769			1,555			1,003			67			(184	)
Tax equivalent adjustment (1)		316			306			298			287			309
At Period End
Total assets	$	2,046,108		$	2,038,656		$	2,058,775		$	2,057,523		$	2,018,598
Earning assets		1,870,808			1,858,300			1,884,650			1,879,725			1,845,134
Loans		1,553,546			1,571,413			1,576,602			1,617,122			1,623,627
Allowance for loan losses		41,343			38,852			38,980			36,547			31,248
Deposits		1,590,648			1,580,520			1,599,584			1,580,226			1,543,085
Stockholders’ equity		241,029			238,438			235,655			234,086			234,529
Stockholders’ equity / assets		11.78	%		11.70	%		11.45	%		11.38	%		11.62	%
Goodwill		57,556			57,556			56,585			56,585			56,585
Average Balances
Total assets	$	2,045,878		$	2,060,925		$	2,048,506		$	2,058,219		$	2,029,970
Earning assets		1,823,954			1,845,306			1,831,867			1,852,401			1,826,400
Deposits and interest-bearing liabilities		1,790,022			1,808,944			1,798,408			1,805,090			1,778,223
Loans		1,545,421			1,551,396			1,560,405			1,600,265			1,613,529
Deposits		1,585,300			1,597,820			1,576,140			1,572,399			1,550,369
Stockholders’ equity		240,709			237,076			235,492			235,152			234,241
Stockholders’ equity / assets		11.77	%		11.50	%		11.50	%		11.43	%		11.54	%
Per Common Share Data
Net Income:
Basic	$	0.22		$	0.19		$	0.12		$	0.01		$	(0.02	)
Diluted		0.22			0.19			0.12			0.01			(0.02	)
Dividends		—			—			—			—			0.04
Market Value:
High	$	10.63		$	14.85		$	12.33		$	18.93		$	18.33
Low		8.55			8.53			9.20			10.06			12.00
Close		10.06			8.94			10.12			11.29			14.91
Book Value		25.10			24.78			24.45			24.26			24.32
Shares outstanding, end of period (in thousands)		8,118			8,118			8,117			8,118			8,118
Performance Ratios (annualized)
Tax-equivalent net interest margin (1)		3.94	%		3.89	%		3.85	%		3.82	%		3.88	%
Return on average assets		0.44	%		0.40	%		0.30	%		0.11	%		0.06	%
Return on average equity		3.75	%		3.48	%		2.59	%		0.94	%		0.56	%
Efficiency ratio (2)		66.42	%		63.40	%		61.26	%		58.93	%		60.90	%
Effective tax rate		22.70	%		28.18	%		29.30	%		-1750.00	%		-12.67	%
Common dividend payout ratio (basic)		0.00	%		0.00	%		0.00	%		0.00	%		-200.00	%

(1) Interest income on tax-exempt securities and loans has been adjusted to a tax-equivalent basis using the statutory federal income tax rate of 35%

(2) Efficiency ratio = Non-interest expense divided by sum of tax-equivalent net interest income plus non-interest income, excluding securities gains, net.

11

Selected Quarterly Information

First Defiance Financial Corp.

(dollars in thousands, except per share data)	3rd Qtr 2010			2nd Qtr 2010			1st Qtr 2010			4th Qtr 2009			3rd Qtr 2009
Loan Portfolio Composition
One to four family residential real estate	$	213,574		$	217,603		$	222,099		$	227,592		$	233,958
Construction		31,722			43,333			46,369			48,625			53,605
Commercial real estate		776,972			790,521			797,449			806,890			802,434
Commercial		376,452			364,281			352,923			379,408			371,881
Consumer finance		27,060			28,961			31,718			34,105			36,416
Home equity and improvement		137,747			140,969			144,826			147,977			150,379
Total loans		1,563,527			1,585,668			1,595,384			1,644,597			1,648,673
Less:
Loans in process		9,030			13,283			17,794			26,494			23,957
Deferred loan origination fees		951			972			988			981			1,089
Allowance for loan loss		41,343			38,852			38,980			36,547			31,248
Net Loans	$	1,512,203		$	1,532,561		$	1,537,622		$	1,580,575		$	1,592,379
Allowance for loan loss activity
Beginning allowance		38,852			38,980			36,547		$	31,248		$	25,840
Provision for loan losses		5,196			5,440			6,889			8,470			8,051
Credit loss charge-offs:
One to four family residential real estate		1,164			1,135			326			884			744
Commercial real estate		688			1,243			3,191			1,912			1,152
Commercial		842			3,153			735			354			658
Consumer finance		28			16			25			75			39
Home equity and improvement		148			156			399			134			196
Total charge-offs		2,870			5,703			4,676			3,359			2,789
Total recoveries		165			135			220			188			146
Net charge-offs (recoveries)		2,705			5,568			4,456			3,171			2,643
Ending allowance	$	41,343		$	38,852		$	38,980		$	36,547		$	31,248
Credit Quality
Non-accrual loans	$	37,377		$	31,804		$	33,567		$	41,191		$	35,490
Restructured loans, accruing		8,784			8,918			7,023			6,715			4,574
Total non-performing loans (1)		46,161			40,722			40,590			47,906			40,064
Real estate owned (REO)		11,127			12,735			12,768			13,527			9,352
Total non-performing assets (2)	$	57,288		$	53,457		$	53,358		$	61,433		$	49,416
Net charge-offs		2,705			5,568			4,456			3,171			2,643
Allowance for loan losses / loans		2.66	%		2.47	%		2.47	%		2.26	%		1.92	%
Allowance for loan losses / non-performing assets		72.17	%		72.68	%		73.05	%		59.49	%		63.23	%
Allowance for loan losses / non-performing loans		89.56	%		95.41	%		96.03	%		76.29	%		78.00	%
Non-performing assets / loans plus REO		3.66	%		3.37	%		3.36	%		3.77	%		3.03	%
Non-performing assets / total assets		2.80	%		2.62	%		2.59	%		2.99	%		2.45	%
Net charge-offs / average loans (annualized)		0.70	%		1.44	%		1.14	%		0.79	%		0.66	%
Deposit Balances
Non-interest-bearing demand deposits	$	213,414		$	190,140		$	187,231		$	189,132		$	174,145
Interest-bearing demand deposits and money market		543,539			517,170			525,311			499,575			477,566
Savings deposits		141,190			140,473			138,364			130,156			132,333
Retail time deposits less than $100,000		485,777			527,421			539,313			550,172			544,957
Retail time deposits greater than $100,000		161,413			158,069			161,071			163,838			166,787
National/Brokered time deposits		45,315			47,247			48,294			47,353			47,297
Total deposits	$	1,590,648		$	1,580,520		$	1,599,584		$	1,580,226		$	1,543,085

(1) Non-performing loans consist of non-accrual loans that are contractually past due 90 days or more and loans that are deemed impaired.

(2) Non-performing assets are non-performing loans plus real estate and other assets acquired by foreclosure or deed-in-lieu thereof.

12

Loan Delinquency Information

First Defiance Financial Corp.

(dollars in thousands)	Total Balance		Current		30 to 89 days past due		Non Accrual Loans		Troubled Debt Restructuring
September 30, 2010
One to four family residential real estate	$	213,574	$	200,573	$	2,483	$	6,589	$	3,929
Construction		31,722		31,553		—		169		—
Commercial real estate		776,972		745,663		3,420		23,421		4,468
Commercial		376,452		368,827		318		6,955		352
Consumer finance		27,060		26,842		184		34		—
Home equity and improvement		137,747		135,825		1,678		209		35
Total loans		1,563,527	$	1,509,283	$	8,083	$	37,377	$	8,784
June 30, 2010
One to four family residential real estate	$	217,603	$	202,472	$	4,790	$	6,457	$	3,884
Construction		43,333		43,079		—		254		—
Commercial real estate		790,521		763,913		4,057		17,912		4,639
Commercial		364,281		356,500		508		6,898		375
Consumer finance		28,961		28,767		177		17		—
Home equity and improvement		140,969		139,219		1,464		266		20
Total loans	$	1,585,668	$	1,533,950	$	10,996	$	31,804	$	8,918
December 31, 2009
One to four family residential real estate	$	227,592	$	215,209	$	4,333	$	5,349	$	2,701
Construction		48,625		47,950		—		675		—
Commercial real estate		809,890		775,604		3,280		24,042		3,964
Commercial		379,408		367,592		1,151		10,615		50
Consumer finance		34,105		33,669		377		59		—
Home equity and improvement		147,977		145,481		2,045		451		—
Total loans	$	1,647,597	$	1,585,505	$	11,186	$	41,191	$	6,715
September 30, 2009
One to four family residential real estate	$	233,958	$	221,077	$	4,637	$	5,839	$	2,405
Construction		53,605		53,340		71		194		—
Commercial real estate		802,434		765,469		11,570		23,279		2,116
Commercial		371,881		363,739		2,525		5,564		53
Consumer finance		36,416		35,913		454		49		—
Home equity and improvement		150,379		147,031		2,783		565		—
Total loans	$	1,648,673	$	1,586,569	$	22,040	$	35,490	$	4,574

13