NasdaqGS:FDEF

Stock Analysis Report

First Defiance Financial

Executive Summary

First Defiance Financial Corp. operates as a unitary thrift holding company that provides community-based financial services in northwest Ohio, northeast Indiana, and southeastern Michigan.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has First Defiance Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FDEF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

FDEF

-13.0%

US Mortgage

-2.6%

US Market


1 Year Return

-53.2%

FDEF

-36.4%

US Mortgage

-13.3%

US Market

Return vs Industry: FDEF underperformed the US Mortgage industry which returned -36.4% over the past year.

Return vs Market: FDEF underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

FDEFIndustryMarket
7 Day-7.9%-13.0%-2.6%
30 Day-44.8%-36.1%-15.2%
90 Day-56.4%-41.2%-22.2%
1 Year-51.8%-53.2%-34.9%-36.4%-11.5%-13.3%
3 Year-44.0%-47.8%-28.7%-33.7%13.2%5.7%
5 Year-8.8%-18.6%-11.1%-20.9%31.8%17.2%

Price Volatility Vs. Market

How volatile is First Defiance Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Defiance Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FDEF ($13.54) is trading below our estimate of fair value ($39.89)

Significantly Below Fair Value: FDEF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FDEF is good value based on its PE Ratio (5.4x) compared to the Mortgage industry average (10.3x).

PE vs Market: FDEF is good value based on its PE Ratio (5.4x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: FDEF is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: FDEF is good value based on its PB Ratio (0.6x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is First Defiance Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FDEF's forecast earnings growth (29.1% per year) is above the savings rate (1.7%).

Earnings vs Market: FDEF's earnings (29.1% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FDEF's revenue (25.8% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: FDEF's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FDEF's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has First Defiance Financial performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FDEF has high quality earnings.

Growing Profit Margin: FDEF's current net profit margins (31.2%) are lower than last year (31.6%).


Past Earnings Growth Analysis

Earnings Trend: FDEF's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: FDEF's earnings growth over the past year (6.7%) is below its 5-year average (16.1% per year).

Earnings vs Industry: FDEF earnings growth over the past year (6.7%) underperformed the Mortgage industry 10.9%.


Return on Equity

High ROE: FDEF's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is First Defiance Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FDEF's level of assets compared to its equity is low.

Allowance for Bad Loans: FDEF has a sufficient allowance for bad loans.

Low Risk Liabilities: FDEF's liabilities are made up of primarily low risk sources of funding.

Loan Level: FDEF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FDEF's loans are broadly funded by customer deposits.

Level of Bad Loans: FDEF has an appropriate level of bad loans (0.47%)


Next Steps

Dividend

What is First Defiance Financial's current dividend yield, its reliability and sustainability?

6.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FDEF's dividend (6.5%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: FDEF's dividend (6.5%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

Stable Dividend: FDEF's dividend payments have been volatile in the past 10 years.

Growing Dividend: FDEF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.7%), FDEF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FDEF's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Don Hileman (66yo)

6.25s

Tenure

US$1,102,434

Compensation

Mr. Donald P. Hileman, also known as Don, has been the Chief Executive Officer at First Defiance Financial Corp. and First Federal Bank since January 1, 2014 and served as its President from January 1, 201 ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD1.10M) is below average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Hileman
CEO & Director6.25yrsUS$1.10m0.19% $971.8k
Paul Nungester
CFO & Executive VP1yrUS$526.53k0.018% $90.1k
Dennis Rose
Executive VP0.25yrUS$309.46k0.097% $497.7k
Sharon Davis
Executive VP & Chief Human Resources Officer4.42yrsUS$343.99k0.027% $137.3k
John Reisner
Executive VPno dataUS$408.13k0.016% $84.0k
Gary Small
President & Director0.25yrno data0.13% $653.6k
Douglas Young
Senior VP & Chief Information Technology Officerno datano datano data
Gary Verhoff
Compliance Officerno datano datano data
Jude Nohra
EVP, Chief General Counsel & Director of Enterprise Risk Managementno datano data0.048% $244.4k
Tera Murphy
VP & Marketing Directorno datano datano data

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: FDEF's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Hileman
CEO & Director6.25yrsUS$1.10m0.19% $971.8k
Gary Small
President & Director0.25yrno data0.13% $653.6k
Martin Adams
Independent Director0.25yrno data0.20% $1.0m
Richard Schiraldi
Independent Vice Chairman of the Board0.25yrno data0.16% $817.8k
John Bookmyer
Former Lead Independent Director1.75yrsUS$78.85k0.073% $370.6k
Mark Robison
Independent Director2.25yrsUS$52.85k0.020% $104.1k
Samuel Strausbaugh
Independent Director14.25yrsUS$57.60k0.054% $275.7k
Jean Hubbard
Independent Director12yrsUS$60.85k0.038% $196.2k
Charles Niehaus
Independent Director5.75yrsUS$59.85k0.033% $168.0k
Terri Bettinger
Independent Director2.25yrsUS$54.35k0.0056% $28.5k

2.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: FDEF's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FDEF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

First Defiance Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Defiance Financial Corp.
  • Ticker: FDEF
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$510.753m
  • Shares outstanding: 37.67m
  • Website: https://www.fdef.com

Number of Employees


Location

  • First Defiance Financial Corp.
  • 601 Clinton Street
  • Defiance
  • Ohio
  • 43512
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FDEFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1995

Biography

First Defiance Financial Corp. operates as a unitary thrift holding company that provides community-based financial services in northwest Ohio, northeast Indiana, and southeastern Michigan. It offers checking accounts, money market accounts, savings accounts, term certificate accounts, demand deposits, and certificates of deposit, as well as certificate of deposit account registry service; and commercial real estate, commercial, consumer finance, 1-4 family residential real estate, construction, and home equity and improvement loans. The company also provides trust and wealth management, and online banking services. In addition, it sells various property and casualty, group health and life, and individual health and life insurance products. The company operates through 44 full service banking centers and 1 loan production office. First Defiance Financial Corp. was incorporated in 1995 and is headquartered in Defiance, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:32
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.