Information on these risk factors and additional information on forward-looking statements are included in the news release and in the Company’s reports on file with the Securities and Exchange Commission.
And now I’ll turn the call over to Mr. Small for his comments.
William J. Small
Thank you, [Terra]. Good morning and thank you for joining us for the First Defiance Financial Corp. conference call to review the 2011 second quarter. Last night, we issued our earnings release reporting the second quarter and first half 2011 results, this morning we would like to discuss that release, and look forward into the second half of the year.Joining me on the call this morning to give more detail on the financial performance to the second quarter, Executive Vice President, CFO, Don Hileman. Also with us this morning to answer questions is Jim Rohrs, President and CEO of First Federal Bank. We will answer any questions you might have with the conclusion of our presentation. Second quarter 2011 net income on a GAAP basis was $4.8 million or $0.43 per diluted common share. This compares to net income of $2.1 million and $0.19 per diluted common share in the 2010 second quarter. Net income for the first six months of 2011 is $7.4 million or $0.70 per diluted common share versus $3.6 million and $0.31 per diluted common share for the six months ending June 30, 2010. The second quarter 2011 performance showed very encouraging progress during a period that still needs a lot of questions about overall economic stability. Again, this quarter as in the past, the lower provision expense was a primary factor in the positive earnings impact. We also saw an increase in non-interest income over the second quarter of 2010 and the linked quarter at the same time keeping non-interest expense in line. This credit quality issues continue to be dealt with and move to the system, we have been able to benefit from our prudent approach to asset quality management as reflected in our improved performance, while we’re still seeing a degree of stress on certain credits, overall, we saw marked improvement in the majority of the loan portfolio and we feel we have identified and are addressing the remaining issues.