First Defiance Financial Corp. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported, total interest income of $30,299,000, net interest income of $26,547,000, income before income taxes of $13,673,000, net income of $11,109,000, compared to total interest income of $27,458,000, net interest income of $24,632,000, income before income taxes of $12,024,000, net income of $8,347,000, for the same period a year ago. Basic and diluted earnings per common share were $0.54 against $0.41 a year ago. Return on average assets was 1.48% against 1.15% a year ago. Return on average equity was 11.69% against 9.36% a year ago. The net interest income increase over the prior year second quarter was primarily driven by the growth in average balances. It also reflects margin expansion from a year ago as the loan portfolio yield increase from the past year's rate hikes has been greater than the rise in deposit funding costs.

For the year to date, the company reported, total interest income of $59,204,000, net interest income of $52,234,000, income before income taxes of $27,907,000, net income of $22,846,000, compared to total interest income of $51,494,000, net interest income of $46,277,000, income before income taxes of $21,022,000, net income of $13,488,000, for the same period a year ago. Diluted earnings per common share were $1.12 against $0.68 a year ago. Common book value per share was $18.97 against $17.81 a year ago. Tangible common book value was $13.89 against $12.66 a year ago. Return on average assets was 1.54% against 0.98% a year ago. Return on average equity was 12.20% against 8.10% a year ago.

The second quarter 2018 results include net charge-offs of $369,000 compared with net charge-offs of $2.0 million a year ago.

The company expected effective tax rate going forward is still about 8.5% to maybe 8.75%.