UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report: July 21, 2000
FIRST PLACE FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Delaware | 0-25049 | 34-1880130 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification #) |
| 185 E. Market Street, Warren, OH (Address of principal executive offices) | 44482 (Zip Code) |
Registrant's telephone number, including are code (330) 373-1221
N/A
(Former name or former address, if changed since last report)
Item 5 Other Events
Fiscal 2000 Financial Information Press Release
Item 7 Financial Statements & Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
| FIRST PLACE FINANCIAL CORP. | ||
| Date: July 21, 2000 | By:/s/ Steven R. Lewis Steven R. Lewis, President and CEO |
First Place Financial Corp. Reports Results for Fiscal Year 2000
Warren, Ohio, July 21, 2000 -- First Place Financial Corp. (NASDAQ: FPFC), the holding company for First Federal Savings and Loan Association of Warren (the "Association"), reported net income for fiscal year 2000 of $6.8 million, or $.75 per diluted share. This figure is inclusive of $689,000 in merger costs and $1.5 million in additional loan loss reserves related to the Company's acquisition of Ravenna Savings Bank completed in the fourth quarter. Excluding merger costs and additional loan loss reserves, net income was $8.2 million compared to $2.1 million for fiscal year 1999 during which the Company completed its initial public offering. Diluted earnings per share for fiscal year 2000 excluding merger costs and additional reserves would have been $.91 compared to a loss of ($.02) for fiscal year 1999. For the fourth quarter, the Company earned $201,000, or $.02 per diluted share. Absent the merger costs and additional reserves, earnings per share would have been $.19 per diluted share for the quarter compared to $.25 per diluted share for the same period a year ago.
Net income during the quarter continued to be affected by the interest rate increases over the last 12 months while an increase in nonperforming loans due to the Ravenna merger also contributed to this compression. In addition to these items, no cost savings associated with the acquisition of Ravenna Savings were realized during this most recent quarter due to the timing of the transaction. Significant cost savings are anticipated prospectively.
Steven R. Lewis, First Place's CEO and President, stated "I was extremely pleased with the successful conversion of Ravenna Savings into First Federal. The merger will provide an opportunity for our Company to expand its geographic presence into new and growing markets. It has pushed the Company over the $1 billion in asset mark and should serve to provide additional liquidity to our stock. It provides a large customer base that has been virtually untapped from a consumer-lending standpoint. Finally, it provides a solid mortgage banking operation that will provide both current income and a tool to manage our interest rate risk position. The merger also brought with it challenges such as the increase in our nonperforming loans. We immediately addressed this issue with the recording of additional loan loss reserves and enhanced collection efforts."
Total assets were $1.1 billion at June 30, 2000 compared to $747 million at June 30, 1999. Approximately $200 million of this increase was due to the acquisition of Ravenna Savings which was accounted for using purchase accounting. Total loans outstanding at year-end totaled $705 million compared to $454 million at June 30, 1999. While the acquisition provided approximately 60% of this increase, the remainder was due to strong asset generation from core operations.
Deposits increased to $587 million at June 30, 2000 compared to $429 million at June 30, 1999. Total borrowings increased $153 million and totaled $303 million at June 30, 2000. The increase in borrowings was used to fund growth in loans not supported by deposit growth and for share repurchases which totaled over 2.5 million shares during this fiscal year.
In an unrelated matter, First Place is pleased to announce the hiring of Timothy A. Beaumont as Senior Vice President of Commercial Lending. Mr. Beaumont is a seasoned commercial banking specialist having spent his entire career in the commercial area. The hiring of Mr. Beaumont pushes the Company closer toward its stated goal of becoming a more active player in commercial operations.
Additional information about the Company may be found on the Company's web site:
www.firstfederalofwarren.com.
FIRST PLACE FINANCIAL CORP.
Selected Consolidated Financial Condition Data:
(Unaudited)
| June 30, | March 31, | June 30, | ||||
| ($ in thousands) | 2000 | 2000 | 1999 | |||
| Total assets | $1,051,577 | $825,695 | $747,332 | |||
| Loans receivable, net | 705,066 | 543,294 | 453,791 | |||
| Loans available for sale | 13,071 | 705 | 945 | |||
| Allowance for loan losses | 6,150 | 3,758 | 3,623 | |||
| Non performing assets | 7,416 | 1,869 | 1,782 | |||
| Securities available for sale | 261,051 | 252,747 | 249,159 | |||
| Deposits | 586,748 | 466,833 | 429,225 | |||
| Federal Home Loan Bank Advances | 227,762 | 145,657 | 94,811 | |||
| Repurchase Agreements | 75,000 | 75,000 | 54,430 | |||
| Total shareholders' equity | 147,975 | 126,292 | 158,054 | |||
| Three Months Ended | Twelve Months Ended | |||||||||||
| June 30, | % | June 30, | % | |||||||||
| Selected Consolidated Operations Data: | 2000 | 1999 | Change | 2000 | 1999 | Change | ||||||
| ($ in thousands except per share amounts) | ||||||||||||
| Total interest income | $16,693 | $12,605 | 32% | $58,506 | $48,126 | 22% | ||||||
| Total interest expense | 10,365 | 6,071 | 71% | 32,657 | 25,682 | 27% | ||||||
| Net interest income | 6,328 | 6,534 | -3% | 25,849 | 22,444 | 15% | ||||||
| Provision for loan losses | 1,689 | 238 | 610% | 2,294 | 1,062 | 116% | ||||||
| Net interest income after provision | 4,639 | 6,296 | -26% | 23,555 | 21,382 | 10% | ||||||
| Non interest income | 630 | 539 | 16% | 2,090 | 1,956 | 7% | ||||||
| Gain (loss) on sale of securities | 32 | 0 | N/M | 25 | (48) | -152% | ||||||
| Gain (loss) on sale of loans | 61 | 71 | -14% | 332 | 73 | 355% | ||||||
| Merger expenses | 689 | 689 | ||||||||||
| Contribution to Community Foundation | 8,026 | |||||||||||
| Non interest expense | 4,372 | 3,266 | 34% | 15,201 | 12,666 | 20% | ||||||
| Income before federal income tax | 301 | 3,640 | -92% | 10,112 | 2,671 | 279% | ||||||
| Federal income tax expense | 99 | 1,092 | -91% | 3,298 | 616 | 435% | ||||||
| Net income | $202 | $2,548 | -92% | $6,814 | $2,055 | 232% | ||||||
| Net income excluding merger costs and additional reserves | $1,646 | $8,258 | ||||||||||
| Basic earnings per share | $0.02 | $0.25 | $0.75 | ($0.02) | ||||||||
| Diluted earnings per share | $0.02 | $0.25 | $0.75 | ($0.02) | ||||||||
| Diluted earnings per share exc. merger costs and additional reserves | $0.19 | $0.91 | ||||||||||
| Average shares outstanding - basic | 8,710,771 | 10,362,115 | 9,036,419 | 10,350,580 | ||||||||
| Average shares outstanding - diluted | 8,710,771 | 10,362,115 | 9,036,419 | 10,350,580 | ||||||||
| At or for the Three | At or for the Twelve | |||||||
| Months Ended | Months Ended | |||||||
| June 30, | June 30, | |||||||
| Selected Average Balances and Financial Ratios: (1) | 2000 | 1999 | 2000 | 1999 | ||||
| Average Balances (000's): | ||||||||
| Assets | $928,134 | $724,152 | $819,503 | $682,066 | ||||
| Loans receivable, net | 636,908 | 443,823 | 533,675 | 405,036 | ||||
| Securities available for sale | 257,211 | 265,324 | 256,481 | 253,284 | ||||
| Deposits | 533,086 | 424,526 | 465,360 | 434,632 | ||||
| Federal Home Loan Bank Advances | 181,626 | 76,591 | 130,615 | 70,472 | ||||
| Repurchase Agreements | 75,000 | 51,243 | 70,632 | 53,800 | ||||
| Shareholders' equity | 135,068 | 161,010 | 142,084 | 110,534 | ||||
| Performance Ratios: | ||||||||
| Return on average assets (2) | 0.09% | 1.41% | 0.83% | 0.30% | ||||
| Return on average equity (3) | 0.60% | 6.33% | 4.80% | 1.86% | ||||
| Interest rate spread (4) | 2.11% | 2.72% | 2.39% | 2.67% | ||||
| Net interest margin (5) | 2.81% | 3.72% | 3.25% | 3.42% | ||||
| Efficiency ratio (6) | 71.78% | 45.72% | 56.16% | 84.72% | ||||
| Net interest income to operating expenses | 125.03% | 200.00% | 162.67% | 108.47% | ||||
| Without merger costs and additional reserves: | ||||||||
| Return on average assets | 0.71% | 1.41% | 1.01% | 0.30% | ||||
| Return on average equity | 4.87% | 6.33% | 5.81% | 1.86% | ||||
| Efficiency ratio | 62.01% | 45.72% | 53.72% | 84.72% | ||||
| Capital Ratios: | ||||||||
| Equity to total assets at end of period | 14.07% | 21.15% | 14.07% | 21.15% | ||||
| Tangible book value per share (7) | $12.61 | $14.06 | $12.61 | $14.06 | ||||
| Average interest-earning assets to average interest-bearing liabilities | 115.32% | 127.53% | 121.29% | 119.07% | ||||
| Asset Quality Data: | ||||||||
| Nonperforming assets as a percent of total assets (8) | 0.71% | 0.24% | 0.71% | 0.24% | ||||
| Allowance for loan losses to non performing loans | 93.67% | 230.23% | 93.67% | 230.23% | ||||
| Allowance for loan losses to loans outstanding | 0.86% | 0.79% | 0.86% | 0.79% | ||||
| Year-to-date net charge-offs (000's) | $119 | $147 | $588 | $466 | ||||
| Annualized net charge-offs to average loans | 0.07% | 0.13% | 0.11% | 0.12% | ||||
(1) Ratios are annualized where appropriate.
(2) Ratio of net income to average total assets.
(3) Ratio of net income to average equity.
(4) Difference between weighted average yield on interest-earning assets and weighted average cost of interest-bearing liabilities.
(5) Ratio of net interest income to average interest-earning assets.
(6) Ratio of non interest expense to the sum of net interest income plus non interest income.
(7) Total shareholders' equity minus goodwill divided by number of shares outstanding.
(8) Non performing assets consist of nonperforming loans and repossessed automobiles.
N/A - Not appicable.
