And now, I’ll turn the call over to Mr. Small for his comments.
Thank you Terra. Good morning and thank you for joining us for the First Defiance Financial Corp conference call to review the 2012 second quarter. Last night we issued our earnings release reporting the second quarter and first half 2012 results. And 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 through the second quarter is Executive Vice President and 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 at the conclusion of our presentation.Second quarter 2012 net income on a GAAP basis was $3.9 million or $0.32 per diluted common share. This compares to net income of $4.8 million and $0.43 per diluted common share in the 2011 second quarter. Net income for the first six months of 2012 was $8.1 million or $0.68 per diluted common share versus $7.4 million and $0.70 per diluted common share for the six months ending June 30, 2011While the earnings performance for the quarter was somewhat disappointing, there were several major strategic objectives that were met representing significant positives for the quarter. The redemption of $36 million of preferred stock related to the US Treasuries Capital Purchase Program being the highlight for the quarter. With the final $1 million of the preferred stock being acquired in July, we are now totally out of our $37 million TARP investment.On the negative side of this quarter, additional credit related expenses and margin compression was the primary drags on the earnings performance.As credit quality issues continue to be dealt with and as we continue to adapt to the interpretation of certain regulations under the guidance of our new regulator, credit related expenses remained at an elevated level.
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