First Defiance Financial Corp. Acquires Payak-Dubbs Insurance Agency

DEFIANCE, Ohio, July 1, 2011 /PRNewswire/ -- First Defiance Financial Corp. (NASDAQ: FDEF) announced today that its subsidiary, First Insurance & Investments, Inc., has  acquired the business of Payak-Dubbs Insurance Agency, Inc., an independent property and casualty insurance agency with two office locations based in Maumee and Oregon, Ohio.

The acquisition adds to the company's community financial services platform in northwest Ohio, southeast Michigan and northeast Indiana, which includes 33 First Federal Bank of the Midwest locations as well as the First Insurance & Investments offices in Defiance, Bowling Green, Bryan and Archbold. This acquisition expands First Insurance & Investments' presence into adjacent markets and supports the company's overall growth strategy.

"Payak-Dubbs has a strong community presence in both Maumee and Oregon," stated William J. Small, Chairman, President and CEO of First Defiance. "It has a solid base of clients that will be a good complement to our existing franchise. In addition, we believe that First Insurance's reputation of client service, combined with the additional resources we can offer, will benefit individual and business clients in the greater Toledo area."

"First Insurance & Investments is an ideal partner for us," said John Payak of Payak-Dubbs. "We are excited about the opportunities for our combined company to expand product offerings to our existing clients, and extend our reach to other communities in northwest Ohio." "We're really excited about the fit that First Insurance is for us and our clients," said Marty Dubbs of Payak-Dubbs. "First Insurance's dedication and commitment to serving their clients is consistent with the way we do business, which makes it a perfect fit."

"We expect to quickly integrate the agency into First Insurance & Investments with no disruption to clients," said Donald Hileman, CEO of First Insurance & Investments. "Our agency management software systems are comparable, as are the majority of our carriers, so client coverage and statements will be unaffected. Most importantly, the existing agents and staff will remain in place in their current offices. We look forward to working with the staff and clients of Payak-Dubbs for a seamless transition. I am excited with the opportunity to have John and Marty join our management team and assist in the development of the First Insurance brand in our market area. We expect that these two already very successful insurance professionals will bring an added dimension of expertise and senior level management experience to our growing Agency."

First Insurance & Investments was counseled by MarshBerry, a leading advisor to insurance firms, and Vorys, Sater, Seymour and Pease, LLP, its legal counsel.

Payak-Dubbs Insurance Agency was counseled by Niehaus & Associates, Ltd., its legal counsel.

About First Defiance Financial Corp.

First Defiance Financial Corp. is the holding company for First Federal Bank of the Midwest and First Insurance & Investments. First Federal Bank is a community bank serving northwest Ohio, southeast Michigan, and northeast Indiana where it currently operates 33 banking centers. First Insurance & Investments is a full line insurance agency with offices in Defiance, Bowling Green, Archbold and Bryan, Ohio.

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

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, 2010. 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.

SOURCE First Defiance Financial Corp.