Keefe Bruyette & Woods Gives Company Update On First Defiance Financial Corp.

First Defiance Financial Corp. FDEF recently announced it raised approximately $19.6 million at $13.25 per share, or 80% of pro forma TBV/share. In addition to significantly improving liquidity at the holding company, Keefe Bruyette & Woods believes the capital raise improves the likelihood that FDEF's MOU could be lifted following the OCC's exam in October. Risks to the target price include earnings outlook, price target and rating include unexpected volatility of interest rates, meaningful deterioration in credit quality due to further slowdown in economic activity, slower-than-anticipated balance sheet growth, and incremental margin pressure. KBW reiterates its Outperform rating and $17 PT FDEF closed Friday at $14.45