U.S. Bank to Acquire the Leader Mortgage Company, LLC, From First Defiance Financial Corp.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 18, 2002

U.S. Bancorp (NYSE:USB) today announced that its lead bank, U.S. Bank, will acquire Cleveland-based The Leader Mortgage Company, LLC, a wholly-owned subsidiary of First Defiance Financial Corp. (Nasdaq:FDEF) in Defiance, Ohio. The Leader Mortgage Company, which operates nationally, had $506 million in assets as of Dec. 31, 2001. In 2001 it had $2.1 billion in mortgage production and $8.6 billion in servicing volume.

Founded in 1960, The Leader Mortgage Company specializes in acquiring servicing of loans originated for various state and local housing authorities, which typically offer home financing to low and moderate income borrowers. The new combined company will be the number one originator and servicer of mortgages sold into Mortgage Revenue Bonds (MRBs). Financial terms of the agreement were not disclosed. The acquisition is expected to close during the second quarter of 2002.

U.S. Bank expects to retain most of Leader's 230 employees. "Leader has been a very successful company and has great growth potential," said Dan Arrigoni, president of U.S. Bank Home Mortgage. "We want them to continue with business as usual. They will even keep the Leader name." Leader Mortgage will operate as part of U.S. Bank Home Mortgage, which includes Firstar Home Mortgage, making a combined company with more than $18 billion in production and just under $40 billion in servicing volume.

U.S. Bank's mortgage business line reports to Richard Davis, vice chairman for consumer banking and payment services, who is based in Cincinnati. "The business generated by The Leader Mortgage Company fits perfectly with the direction of U.S. Bank Home Mortgage and the business portfolio of a number of other U.S. Bancorp lines of business, specifically U.S. Bancorp Piper Jaffray and Corporate Trust," Davis said. "Most importantly, it complements and enhances our existing, significant capabilities to provide loans to low-to-moderate income borrowers, making home ownership possible for more people."

First Defiance Financial Corp. acquired The Leader Mortgage Company in 1998. "The Leader was a good strategic acquisition and we have grown its business to the highest level that our capital allows," said William J. Small, Chairman, President and CEO of First Defiance. "We are very pleased that The Leader has the opportunity to continue its growth as a part of U.S. Bank."

First Defiance Financial Corp. is the holding company for First Federal Bank of the Midwest and First Insurance and Investments, headquartered in Defiance, Ohio. First Federal is a community banking service serving the northwest corner of Ohio, where it currently operates 14 full service branches. First Insurance and Investments is the largest property and casualty insurance in the Defiance, OH area and it also specializes in life and group health insurance. For more information, visit the company's web site at www.fdef.com.

Minneapolis-based U.S. Bancorp, with assets in excess of $171 billion, is the 8th largest financial services holding company in the United States. The company operates 2,186 banking offices and 4,937 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is home of the Five Star Service Guarantee which assures customers of certain key banking benefits and services or customers will be paid for their inconvenience. U.S. Bancorp is the parent company of Firstar Bank and U.S. Bank. Visit U.S. Bancorp on the web at usbank.com and Firstar Bank at firstar.com.