Exhibit 99.1
| | |
For Release: January 16, 2007 | | For Further Information: Steven R. Lewis, President & CEO Paul S. Musgrove, CFO (330) 373-1221 |
First Place Financial Corp. Reports Net Income of $6.5 Million for
Second Quarter Fiscal 2006, Up 8.0% over Prior Year
Third Quarter Dividend of $0.155 declared
Highlights
| | • | | Second quarter net income increased 8.0% to $6.5 million this year, up $0.5 million from $6.0 million last year. |
| | • | | First half net income increased 10.8% to $13.5 million this fiscal year up $1.3 million from $12.2 million last fiscal year. |
| | • | | Noninterest expense as a percent of average assets was 2.29% this quarter, down from 2.42% in the preceding quarter and down from 2.54% in the same quarter in the prior year. |
| | • | | Commercial loans grew $72 million or at an annualized rate of 32.7% during the current quarter and have increased to 39.6% of total portfolio loans. |
| | • | | Organic deposit growth was $69 million during the current quarter, which is growth at an annualized rate of 13.7%. |
| | • | | The Board of Directors declared a quarterly cash dividend of $0.155 per share. |
Summary
Warren, Ohio—January 16, 2007—First Place Financial Corp. (Nasdaq: FPFC) reported net income of $6.5 million for the quarter ended December 31, 2006, compared with $6.0 million for the quarter ended December 31, 2005, an increase of 8.0%. Diluted earnings per share were $0.38 for the current quarter compared with $0.41 for the same quarter in the prior year, a decrease of $0.03 or 7.3%. First Place issued 2.3 million shares of common stock as a portion of the purchase price of Northern Savings and currently has 17.5 million shares outstanding. Return on average equity for the current quarter was 8.06% compared with 9.86% for the same quarter in the prior year. Return on average tangible equity for the current quarter was 11.90% compared with 13.77% for the same quarter in the prior year.
Net income for the three months ended December 31, 2006, of $6.5 million decreased $0.5 million or 6.7% compared with $7.0 million for the preceding quarter ended September 30, 2006. Diluted earnings per share for the current quarter of $0.38 decreased $0.03 from $0.41 for the preceding quarter, a decrease of 7.3%. Return on average assets declined to 0.86% compared with 0.90% for the preceding quarter. Return on average equity declined to 8.06% for the current quarter compared with 8.78% for the preceding quarter. The primary reasons
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for the decline in net income and diluted earnings per share were that pretax income from the previous quarter included $1.6 million in gains on the sale of assets from the Northern Savings acquisition and $0.9 million in income from a purchase accounting adjustment on a Federal Home Loan Bank advance that was called.
For the six months ended December 31, 2006, the Company reported net income of $13.5 million compared with $12.2 million for the same period in the prior year, or an increase of 10.8%. Diluted earnings per share were $0.79 for the first half of fiscal 2007 compared with $0.83 for the same period in the prior year, or a decline of 4.8%. Return on average assets and return on average equity for the six months ended December 31, 2006 were 0.88% and 8.42% respectively, down from 0.95% and 10.05% for the six months ended December 31, 2005.
Commenting on these results, Steven R. Lewis, President and CEO, stated, “We are pleased to announce an increase of 8% in net income for the quarter over the prior year quarter. This was due in part to excellent control of expenses resulting in a ratio of noninterest expense to average assets of 2.29% for the current quarter down from 2.54% in the same quarter in the prior year. In addition, we were able to accomplish this while increasing our provision for loan losses by 18.5% over the prior year quarter and maintaining our allowance for loan losses at 0.97% of loans, the same level as it was at September 30, 2006. We continue to focus on those things which we can control, including noninterest expense and our interest rate risk profile, so that we are positioned to be even more successful in the future when we believe that the interest rate curve will return to a positive slope.”
Revenue
Net interest income for the second quarter of fiscal 2007 was $20.9 million, an increase of 6.4% over the second quarter of fiscal 2006. This increase was the net result of the benefit of a 17.1% increase in average earning assets in the current quarter compared with the same quarter in the prior year, partially offset by a decline in the net interest margin to 3.04% from 3.33% over the same periods. The increase in average earning assets was primarily due to the acquisition of Northern Savings on June 27, 2006. The net interest margin for the current quarter is down 0.29% from the second quarter of fiscal 2006 and down 0.20% from the preceding quarter. These declines have resulted from the flattening of the yield curve during the six months ended June 30, 2006, and the inversion of the yield curve during the six months ended December 31, 2006, in addition to the 10 basis point benefit from the call of a Federal Home Loan Bank advance discussed above. Steven Lewis stated, “It is a great challenge to manage net interest income while the interest rate curve is inverted. However, we were successful during this quarter in negotiating approximately $70 million of long-term borrowings at a savings of 110 basis points over short-term borrowing rates. Going forward, this will help counteract the downward pressure the inversion of the yield curve has put on the net interest margin during the current quarter.”
Noninterest income for the second quarter of fiscal 2007 was $7.5 million, an increase of $0.7 million or 10.3% over the same period in the prior year. The most significant increases in noninterest income in the current quarter over the prior year quarter were $0.4 million in other income-nonbank, $0.2 million in net gains on sale of loans and $0.1 million in service charges. The growth in nonbank income was due to growth in commission income in First Place’s investment and insurance affiliates.
Net gains on sale of loans were $1.6 million for the quarter ended December 31, 2006, a $0.2 million or 11.7% increase from the quarter ended December 31, 2005. The volume of loans sold in the current quarter of $197 million was down from $250 million sold in the same quarter in the prior year. However, higher margins on the sale of loans more than offset the decline in volume. The higher margins were due in part to the positive impact of activities to hedge the value of loan commitments and loans held for sale.
Noninterest Expense
Noninterest expense for the second quarter of fiscal year 2007 was $17.4 million, an increase of $0.9 million or 5.4% compared with the second quarter of fiscal year 2006. This was the result of the net impact of increases in salaries, employee benefits, occupancy and intangible amortization expenses related to the six retail sales offices
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added as a result of the Northern Savings acquisition substantially offset by a reduction in employee benefit costs. Employee benefit costs were reduced by $0.5 million due to a $0.6 million benefit resulting from an initiative to realign certain benefit plans to match our fiscal year. Noninterest expense as a percent of average assets was 2.29% for the quarter ended December 31, 2006, down from 2.42% for the preceding quarter and 2.54% from the same quarter in the prior year. Steve Lewis commented, “I congratulate our management team on an excellent quarter of expense control. They continue to seek and find ways to control noninterest expense.”
Asset Quality
Nonperforming assets were $29.4 million at December 31, 2006, or 0.96% of total assets, up $3.2 million from $26.2 million or 0.87% of total assets at September 30, 2006. The increase in nonperforming assets was due to a similar increase in nonperforming loans. Nonperforming loans were $25.7 million at December 31, 2006, up $3.4 million from $22.3 million at September 30, 2006. Nonperforming mortgage and construction loans increased $4.2 million during the quarter accounting for the majority of the increase. Of the total nonperforming loans at December 31, 2006, 68% were residential real estate loans and 21% were home equity loans. Mortgage and construction loans are generally well secured and if these loans do default, the actual losses are often only a fraction of the total loan amount. Net charge-offs for the quarter ended December 31, 2006 were $0.8 million compared with $0.9 million for the quarter ended September 30, 2006. The provision for loan losses for the current quarter was $1.4 million up $30,000 from the preceding quarter and up $220,000 from the same quarter in the prior year. The provision of $1.4 million was $0.6 million or 75% higher than chargeoffs in the current quarter of $0.8 million. The allowance for loan losses increased $0.6 million to $23.4 million at December 31, 2006, from $22.8 million at September 30, 2006. The ratio of the allowance for loan losses to total loans was 0.97% at December 31, 2006, equal to the ratio at September 30, 2006 and up from 0.95% at June 30, 2006. The increase in the provision and the allowance over prior periods are consistent with the increase in nonperforming loans.
Steven Lewis commented, “While we are concerned with the recent increase in nonperforming loans and are aggressively pursuing collection of these loans we recognize that our experience is not unique and is consistent with national and regional credit quality trends.”
Balance Sheet Activity
Assets were $3.074 billion at December 31, 2006, compared with $3.012 at September 30, 2006 and $3.113 at June 30, 2006. Total assets declined $101 million during the first quarter of fiscal 2007 due to a planned balance sheet restructuring in which First Place sold $98 million of loans held for sale and $16 million of securities available for sale acquired with Northern Savings. All of these assets were fixed rate assets and were sold primarily to achieve management’s interest rate risk objectives. The proceeds of the sale were used to reduce short-term borrowings. Total assets increased $62 million during the second quarter of fiscal 2007. Total portfolio loans were $2.423 billion at December 31, 2006, an increase of $63 million from September 30, 2006, or growth at an annualized rate of 10.7%. Commercial loans increased $72 million during the current quarter, or 32.7% annualized, to $960 million. Commercial loans now account for 39.6% of the loan portfolio up from 37.6% at September 30, 2006. Mortgage and construction loans decreased $10 million during the current quarter, and consumer loans increased $1 million during the current quarter.
Deposits totaled $2.136 billion at December 31, 2006, an increase of $59 million since September 30, 2006. This increase was composed of a $63 million increase in nonmaturity retail deposits, a $6 million increase in retail certificates of deposit and a $10 million decrease in brokered certificates of deposit. During the current quarter, total deposits grew at an annual rate of 11.4% while retail deposits grew at an annual rate of 13.7%. Nonmaturity retail deposits grew at an annual rate of 23.3% during the quarter. Total borrowings remained at $580 million at December 31, 2006, the same as at September 31, 2006. However, during the quarter, the Company committed to $70 million of long-term borrowings and used those funds to decrease short-term borrowings at higher interest rates.
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Steven Lewis noted, “During this past quarter, we were successful in concentrating our asset growth in commercial loans which typically carry higher rates of interest than other types of loans or investments. At the same time we were able to improve our funding mix by concentrating our liability growth in nonmaturity deposits which typically carry lower interest rates and more repricing flexibility than certificates of deposit. These actions and our long-term borrowings will have a positive impact on our net interest margin in the short run and will reduce our exposure to changes in interest rates in the long run.”
Shareholders’ equity remains strong; it was $324 million at December 31, 2006, up $5 million from September 30, 2006 primarily due to net income during the quarter. Shareholders equity as a percent of assets was 10.55% at December 31, 2006, down from 10.59% at September 30, 2006. Tangible equity to assets increased to 7.44% at December 31, 2006 from 7.38% at September 30, 2006. There were no purchases of treasury stock during the current quarter although board authorization to repurchase shares is in place through March 2007 should the internal metrics for the acquisition of treasury shares be met.
Branch Purchase
On December 18, 2006 First Place announced that it had signed a definitive agreement with Republic Bank and Citizens Banking Corporation to acquire seven Republic Bank branches in the greater Flint, Michigan area. Based on the information available at that time, the transaction would result in First Place Bank assuming approximately $210 million in deposits, and receiving $30 million in fixed assets and consumer loans and $170 million in cash. The transaction is expected to close during the second calendar quarter of 2007 and be immediately accretive to earnings excluding the impact of one-time acquisition costs.
Board Actions
At its regular meeting held January 16, 2007, the Board of Directors declared a per share cash dividend of $0.155 payable on February 8, 2007, to shareholders of record as of the close of business on January 25, 2007.
About First Place Financial Corp.
First Place Financial Corp., a $3.1 billion financial services holding company based in Warren, Ohio, is the largest publicly-traded thrift headquartered in Ohio. First Place Financial Corp. operates 34 retail locations, 2 business financial service centers and 15 loan production offices through First Place Bank, and the Northern Savings and Franklin Bank divisions of First Place Bank. Additional affiliates of First Place Financial Corp. include First Place Insurance Agency, Ltd.; Coldwell Banker First Place Real Estate, Ltd.; TitleWorks Agency, LLC and APB Financial Group, Ltd., an employee benefit consulting firm and specialist in wealth management services for businesses and consumers. Information about First Place Financial Corp. may be found on the Company’s web site:www.firstplacebank.com.
Explanation of Certain Non-GAAP Measures
This press release contains certain financial information determined by methods other than in accordance with Generally Accepted Accounting Principles (GAAP). Specifically, we have provided financial measures that are based on core earnings rather than net income. Ratios and other financial measures with the word “core” in their title were computed using core earnings rather than net income. Core earnings excludes merger, integration and restructuring expense; extraordinary income or expense; income or expense from discontinued operations; and income, expense, gains and losses that are not reflective of ongoing operations or that we do not expect to reoccur. Similarly, core noninterest expense or core noninterest income exclude the pretax impact of those same items that impact noninterest income or noninterest expense. We believe that this information is useful to both investors and to management and can aid them in understanding the Company’s current performance, performance trends and financial condition. While core earnings can be useful in evaluating current performance and projecting current trends into the future, we do not believe that core earnings are a substitute for GAAP net income. We encourage investors and others to use core earnings as a supplemental tool for analysis and not as a
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substitute for GAAP net income. Our non-GAAP measures may not be comparable to the non-GAAP measures of other companies. In addition, future results of operations may include nonrecurring items that would not be included in core earnings. A reconciliation from GAAP net income to the non-GAAP measure of core earnings is shown in the consolidated financial highlights on page eight.
Forward-Looking Statements
When used in this press release, or future press releases or other public or shareholder communications, in filings by First Place Financial Corp. (the Company) with the Securities and Exchange Commission or in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results to be materially different from those indicated. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the market areas the Company conducts business, which could materially impact credit quality trends, changes in laws, regulations or policies of regulatory agencies, fluctuations in interest rates, demand for loans in the market areas the Company conducts business, and competition, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
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FIRST PLACE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | | | | | | | | |
| | | Three months ended December 31, | | Percent
Change | | | Six months ended December 31, | | Percent
Change | |
| (Dollars in thousands, except share data) | | 2006 | | 2005 | | | 2006 | | 2005 | |
| | |
Interest income | | $ | 45,565 | | $ | 36,530 | | 24.7 | % | | $ | 92,319 | | $ | 71,321 | | 29.4 | % |
Interest expense | | | 24,663 | | | 16,878 | | 46.1 | | | | 48,685 | | | 32,238 | | 51.0 | |
| | | | | | | | | | | | | | | | | | |
Net interest income | | | 20,902 | | | 19,652 | | 6.4 | | | | 43,634 | | | 39,083 | | 11.6 | |
| | | | | | |
Provision for loan losses | | | 1,410 | | | 1,190 | | 18.5 | | | | 2,790 | | | 2,545 | | 9.6 | |
| | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 19,492 | | | 18,462 | | 5.6 | | | | 40,844 | | | 36,538 | | 11.8 | |
| | | | | | |
Noninterest income | | | | | | | | | | | | | | | | | | |
Service charges | | | 1,469 | | | 1,370 | | 7.2 | | | | 3,016 | | | 2,738 | | 10.2 | |
Net gains on sale of securities | | | 2 | | | — | | N/M | | | | 84 | | | — | | N/M | |
Net gains on sale of loans | | | 1,622 | | | 1,452 | | 11.7 | | | | 3,729 | | | 3,335 | | 11.8 | |
Loan servicing income | | | 248 | | | 192 | | 29.2 | | | | 471 | | | 358 | | 31.6 | |
Other income – bank | | | 1,847 | | | 1,853 | | (0.3 | ) | | | 3,742 | | | 3,622 | | 3.3 | |
Other income – non-bank | | | 2,320 | | | 1,940 | | 19.6 | | | | 4,374 | | | 3,656 | | 19.6 | |
| | | | | | | | | | | | | | | | | | |
Total noninterest income | | | 7,508 | | | 6,807 | | 10.3 | | | | 15,416 | | | 13,709 | | 12.5 | |
| | | | | | |
Noninterest expense | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 8,023 | | | 8,487 | | (5.5 | ) | | | 17,772 | | | 16,283 | | 9.1 | |
Occupancy and equipment | | | 2,861 | | | 2,463 | | 16.2 | | | | 5,742 | | | 4,881 | | 17.6 | |
Professional fees | | | 773 | | | 622 | | 24.3 | | | | 1,445 | | | 1,440 | | 0.3 | |
Loan expenses | | | 554 | | | 597 | | (7.2 | ) | | | 1,337 | | | 1,252 | | 6.8 | |
Marketing | | | 666 | | | 538 | | 23.8 | | | | 1,296 | | | 1,162 | | 11.5 | |
Franchise taxes | | | 330 | | | 237 | | 39.2 | | | | 490 | | | 328 | | 49.4 | |
Amortization of intangible assets | | | 1,063 | | | 925 | | 14.9 | | | | 2,145 | | | 1,869 | | 14.8 | |
Other | | | 3,155 | | | 2,666 | | 18.3 | | | | 6,131 | | | 5,386 | | 13.8 | |
| | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 17,425 | | | 16,535 | | 5.4 | | | | 36,358 | | | 32,601 | | 11.5 | |
| | | | | | |
Income before income taxes | | | 9,575 | | | 8,734 | | 9.6 | | | | 19,902 | | | 17,646 | | 12.8 | |
Provision for income taxes | | | 3,045 | | | 2,688 | | 13.3 | | | | 6,370 | | | 5,433 | | 17.2 | |
| | | | | | | | | | | | | | | | | | |
Net income | | $ | 6,530 | | $ | 6,046 | | 8.0 | % | | $ | 13,532 | | $ | 12,213 | | 10.8 | % |
| | | | | | | | | | | | | | | | | | |
|
| | |
| | | | | | |
SHARE DATA: | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.39 | | $ | 0.42 | | (7.1 | )% | | $ | 0.80 | | $ | 0.84 | | (4.8 | )% |
Diluted earnings per share | | $ | 0.38 | | $ | 0.41 | | (7.3 | ) | | $ | 0.79 | | $ | 0.83 | | (4.8 | ) |
Cash dividends per share | | $ | 0.155 | | $ | 0.14 | | 10.7 | | | $ | 0.31 | | $ | 0.28 | | 10.7 | |
Average shares outstanding—basic | | | 16,958,663 | | | 14,519,178 | | 16.8 | | | | 16,939,742 | | | 14,496,231 | | 16.9 | |
Average shares outstanding—diluted | | | 17,208,500 | | | 14,780,088 | | 16.4 | | | | 17,184,810 | | | 14,745,511 | | 16.6 | |
N/M—Not meaningful
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FIRST PLACE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
| | | | | | | | | | | | | | | |
| (Dollars in thousands) | | Dec 31, 2006 (Unaudited) | | Sept 30, 2006 (Unaudited) | | June 30, 2006 | | Mar 31, 2006 (Unaudited) | | Dec 31, 2005 (Unaudited) |
| |
ASSETS | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 75,946 | | $ | 73,736 | | $ | 72,906 | | $ | 60,513 | | $ | 70,153 |
Interest-bearing deposits in other banks | | | 84 | | | 79 | | | 4,605 | | | 4,600 | | | — |
Securities available for sale | | | 267,613 | | | 271,506 | | | 302,994 | | | 266,170 | | | 286,864 |
Loans held for sale | | | 75,572 | | | 76,541 | | | 154,799 | | | 59,015 | | | 83,754 |
Loans | | | | | | | | | | | | | | | |
Mortgage and construction | | | 1,102,648 | | | 1,112,827 | | | 1,123,911 | | | 916,479 | | | 884,123 |
Commercial | | | 959,678 | | | 887,183 | | | 856,129 | | | 789,992 | | | 775,782 |
Consumer | | | 361,082 | | | 360,157 | | | 370,744 | | | 358,004 | | | 345,643 |
| | | | | | | | | | | | | | | |
Total loans | | | 2,423,408 | | | 2,360,167 | | | 2,350,784 | | | 2,064,475 | | | 2,005,548 |
Less allowance for loan losses | | | 23,425 | | | 22,819 | | | 22,319 | | | 20,170 | | | 19,617 |
| | | | | | | | | | | | | | | |
Loans, net | | | 2,399,983 | | | 2,337,348 | | | 2,328,465 | | | 2,044,305 | | | 1,985,931 |
Federal Home Loan Bank stock | | | 33,209 | | | 32,946 | | | 32,616 | | | 27,518 | | | 31,281 |
Premises and equipment, net | | | 38,690 | | | 37,498 | | | 35,485 | | | 25,428 | | | 24,128 |
Goodwill | | | 88,046 | | | 88,046 | | | 88,009 | | | 56,207 | | | 55,173 |
Core deposit and other intangibles | | | 15,260 | | | 16,323 | | | 17,405 | | | 12,525 | | | 13,413 |
Other assets | | | 79,849 | | | 78,209 | | | 75,926 | | | 90,874 | | | 75,834 |
| | | | | | | | | | | | | | | |
Total assets | | $ | 3,074,252 | | $ | 3,012,232 | | $ | 3,113,210 | | $ | 2,647,155 | | $ | 2,626,531 |
| | | | | | | | | | | | | | | |
| | | | | |
LIABILITIES | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | |
Non-interest bearing checking | | $ | 234,576 | | $ | 214,067 | | $ | 224,738 | | $ | 223,647 | | $ | 251,624 |
Interest bearing checking | | | 146,878 | | | 136,063 | | | 140,752 | | | 117,586 | | | 122,219 |
Savings | | | 307,581 | | | 274,547 | | | 242,178 | | | 205,284 | | | 196,754 |
Money market | | | 464,999 | | | 465,898 | | | 511,482 | | | 442,061 | | | 450,746 |
Certificates of deposit | | | 982,050 | | | 986,350 | | | 941,597 | | | 759,784 | | | 743,738 |
| | | | | | | | | | | | | | | |
Total deposits | | | 2,136,084 | | | 2,076,925 | | | 2,060,747 | | | 1,748,362 | | | 1,765,081 |
Securities sold under agreements to repurchase | | | 67,325 | | | 51,533 | | | 44,013 | | | 39,911 | | | 39,095 |
Borrowings | | | 450,522 | | | 466,633 | | | 603,906 | | | 515,016 | | | 482,944 |
Junior subordinated debentures owed to unconsolidated subsidiary trusts | | | 61,857 | | | 61,857 | | | 61,857 | | | 61,857 | | | 61,857 |
Other liabilities | | | 34,069 | | | 36,228 | | | 31,113 | | | 29,992 | | | 32,363 |
| | | | | | | | | | | | | | | |
Total liabilities | | | 2,749,857 | | | 2,693,176 | | | 2,801,636 | | | 2,395,138 | | | 2,381,340 |
| | | | | |
SHAREHOLDERS’ EQUITY | | | 324,395 | | | 319,056 | | | 311,574 | | | 252,017 | | | 245,191 |
| | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 3,074,252 | | $ | 3,012,232 | | $ | 3,113,210 | | $ | 2,647,155 | | $ | 2,626,531 |
| | | | | | | | | | | | | | | |
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FIRST PLACE FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
| | | As of or for the three months ended | | | As of or for the six
months ended
December 31, | |
| | | 12/31/06 | | | 9/30/06 | | | 6/30/06 | | | 3/31/06 | | | 12/31/05 | | |
| | | 2nd Qtr | | | 1st Qtr | | | 4th Qtr | | | 3rd Qtr | | | 2nd Qtr | | |
| (Dollars in thousands except per share data) | | FY 2007 | | | FY 2007 | | | FY 2006 | | | FY 2006 | | | FY 2006 | | | 2006 | | | 2005 | |
| | |
EARNINGS (GAAP) | | | | | | | | | | | | | | | | | | | | | | |
Tax equivalent net interest income | | $ | 21,276 | | | 23,089 | | | 20,565 | | | 19,305 | | | 19,876 | | | 44,365 | | | 39,526 | |
Net interest income | | $ | 20,902 | | | 22,732 | | | 20,251 | | | 19,080 | | | 19,652 | | | 43,634 | | | 39,083 | |
Provision for loan losses | | $ | 1,410 | | | 1,380 | | | 2,317 | | | 1,013 | | | 1,190 | | | 2,790 | | | 2,545 | |
Noninterest income | | $ | 7,508 | | | 7,908 | | | 7,372 | | | 7,904 | | | 6,807 | | | 15,416 | | | 13,709 | |
Noninterest expense | | $ | 17,425 | | | 18,933 | | | 18,800 | | | 16,749 | | | 16,535 | | | 36,358 | | | 32,601 | |
Net income | | $ | 6,530 | | | 7,002 | | | 4,505 | | | 6,326 | | | 6,046 | | | 13,532 | | | 12,213 | |
Basic earnings per share | | $ | 0.39 | | | 0.41 | | | 0.31 | | | 0.43 | | | 0.42 | | | 0.80 | | | 0.84 | |
Diluted earnings per share | | $ | 0.38 | | | 0.41 | | | 0.30 | | | 0.43 | | | 0.41 | | | 0.79 | | | 0.83 | |
| | | | | | | |
PERFORMANCE RATIOS(annualized) (GAAP) | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.86 | % | | 0.90 | % | | 0.67 | % | | 0.98 | % | | 0.93 | % | | 0.88 | % | | 0.95 | % |
Return on average equity | | | 8.06 | % | | 8.78 | % | | 7.02 | % | | 10.30 | % | | 9.86 | % | | 8.42 | % | | 10.05 | % |
Return on average tangible assets | | | 0.89 | % | | 0.93 | % | | 0.69 | % | | 1.00 | % | | 0.95 | % | | 0.91 | % | | 0.97 | % |
Return on average tangible equity | | | 11.90 | % | | 13.13 | % | | 9.64 | % | | 14.22 | % | | 13.77 | % | | 12.51 | % | | 14.11 | % |
Net interest margin, fully tax equivalent | | | 3.04 | % | | 3.24 | % | | 3.29 | % | | 3.17 | % | | 3.33 | % | | 3.14 | % | | 3.34 | % |
Efficiency ratio | | | 60.54 | % | | 61.08 | % | | 67.29 | % | | 61.56 | % | | 61.97 | % | | 60.82 | % | | 61.24 | % |
Noninterest expense as a percent of average assets | | | 2.29 | % | | 2.42 | % | | 2.79 | % | | 2.58 | % | | 2.54 | % | | 2.36 | % | | 2.53 | % |
| | | | | | | |
| RECONCILIATION OF NET INCOME TO CORE EARNINGS | | | | | | | | | | | | | | | | | | | | | | |
GAAP net income | | $ | 6,530 | | | 7,002 | | | 4,505 | | | 6,326 | | | 6,046 | | | 13,532 | | | 12,213 | |
Merger, integration and restructuring, net of tax | | $ | — | | | — | | | 1,413 | | | — | | | — | | | — | | | — | |
Core earnings | | $ | 6,530 | | | 7,002 | | | 5,918 | | | 6,326 | | | 6,046 | | | 13,532 | | | 12,213 | |
| | | | | | | |
CORE EARNINGS | | | | | | | | | | | | | | | | | | | | | | |
Core earnings | | $ | 6,530 | | | 7,002 | | | 5,918 | | | 6,326 | | | 6,046 | | | 13,532 | | | 12,213 | |
Basic core earnings per share | | $ | 0.39 | | | 0.41 | | | 0.40 | | | 0.43 | | | 0.42 | | | 0.80 | | | 0.84 | |
Core diluted earnings per share | | $ | 0.38 | | | 0.41 | | | 0.40 | | | 0.43 | | | 0.41 | | | 0.79 | | | 0.83 | |
| | | | | | | |
CORE PERFORMANCE RATIOS(annualized) | | | | | | | | | | | | | | | | | | | | | | |
Core return on average assets | | | 0.86 | % | | 0.90 | % | | 0.88 | % | | 0.98 | % | | 0.93 | % | | 0.88 | % | | 0.95 | % |
Core return on average equity | | | 8.06 | % | | 8.78 | % | | 9.22 | % | | 10.30 | % | | 9.86 | % | | 8.42 | % | | 10.05 | % |
Core return on average tangible assets | | | 0.89 | % | | 0.93 | % | | 0.90 | % | | 1.00 | % | | 0.95 | % | | 0.91 | % | | 0.97 | % |
Core return on average tangible equity | | | 11.90 | % | | 13.13 | % | | 12.66 | % | | 14.22 | % | | 13.77 | % | | 12.51 | % | | 14.11 | % |
Core net interest margin, fully tax equivalent | | | 3.04 | % | | 3.24 | % | | 3.29 | % | | 3.17 | % | | 3.33 | % | | 3.14 | % | | 3.34 | % |
Core efficiency ratio | | | 60.54 | % | | 61.08 | % | | 59.52 | % | | 61.56 | % | | 61.97 | % | | 60.82 | % | | 61.24 | % |
Core noninterest expense as a percent of average assets | | | 2.29 | % | | 2.42 | % | | 2.47 | % | | 2.58 | % | | 2.54 | % | | 2.36 | % | | 2.53 | % |
8
FIRST PLACE FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
| | | As of or for the three months ended | | | As of or for the
six months ended
December 31, | |
| | | 12/31/06
2nd Qtr | | | 9/30/06
1st Qtr | | | 6/30/06
4th Qtr | | | 3/31/06
3rd Qtr | | | 12/31/05
2nd Qtr | | |
| (Dollars in thousands except per share data) | | FY 2007 | | | FY 2007 | | | FY 2006 | | | FY 2006 | | | FY 2006 | | | 2006 | | | 2005 | |
| | |
| | | | | | | |
CAPITAL | | | | | | | | | | | | | | | | | | | | | | |
Equity to total assets at end of period | | | 10.55 | % | | 10.59 | % | | 10.01 | % | | 9.52 | % | | 9.34 | % | | 10.55 | % | | 9.34 | % |
Tangible equity to tangible assets | | | 7.44 | % | | 7.38 | % | | 6.85 | % | | 7.11 | % | | 6.90 | % | | 7.44 | % | | 6.90 | % |
Book value per share | | $ | 18.57 | | | 18.28 | | | 17.87 | | | 16.65 | | | 16.24 | | | 18.57 | | | 16.24 | |
Tangible book value per share | | $ | 12.66 | | | 12.30 | | | 11.83 | | | 12.11 | | | 11.70 | | | 12.66 | | | 11.70 | |
Period-end market value per share | | $ | 23.49 | | | 22.66 | | | 23.01 | | | 24.80 | | | 24.05 | | | 23.49 | | | 24.05 | |
Dividends declared per common share | | $ | 0.155 | | | 0.14 | | | 0.14 | | | 0.14 | | | 0.14 | | | 0.31 | | | 0.28 | |
Common stock dividend payout ratio | | | 40.79 | % | | 34.15 | % | | 46.67 | % | | 32.56 | % | | 34.15 | % | | 39.24 | % | | 33.73 | % |
Period-end common shares outstanding (000) | | | 17,470 | | | 17,456 | | | 17,433 | | | 15,136 | | | 15,096 | | | 17,470 | | | 15,096 | |
Average basic shares outstanding (000) | | | 16,959 | | | 16,921 | | | 14,704 | | | 14,565 | | | 14,519 | | | 16,940 | | | 14,496 | |
Average diluted shares outstanding (000) | | | 17,209 | | | 17,163 | | | 14,950 | | | 14,841 | | | 14,780 | | | 17,185 | | | 14,746 | |
| | | | | | | |
ASSET QUALITY | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs (recoveries) | | $ | 805 | | | 879 | | | 694 | | | 460 | | | 767 | | | 1,684 | | | 1,194 | |
Annualized net charge-offs (recoveries) to average loans | | | 0.13 | % | | 0.15 | % | | 0.13 | % | | 0.09 | % | | 0.16 | % | | 0.14 | % | | 0.13 | % |
Nonperforming loans (NPLs) | | $ | 25,702 | | | 22,284 | | | 16,771 | | | 16,117 | | | 13,419 | | | 25,702 | | | 13,419 | |
NPLs as a percent of total loans | | | 1.06 | % | | 0.94 | % | | 0.71 | % | | 0.78 | % | | 0.67 | % | | 1.06 | % | | 0.67 | % |
Nonperforming assets (NPAs) | | $ | 29,439 | | | 26,184 | | | 20,695 | | | 19,940 | | | 16,294 | | | 29,439 | | | 16,294 | |
NPAs as a percent of total assets | | | 0.96 | % | | 0.87 | % | | 0.66 | % | | 0.75 | % | | 0.62 | % | | 0.96 | % | | 0.62 | % |
Allowance for loan losses | | $ | 23,425 | | | 22,819 | | | 22,319 | | | 20,170 | | | 19,617 | | | 23,425 | | | 19,617 | |
Allowance for loan losses as a percent of loans | | | 0.97 | % | | 0.97 | % | | 0.95 | % | | 0.98 | % | | 0.98 | % | | 0.97 | % | | 0.98 | % |
Allowance for loan losses as a percent of NPLs | | | 91.14 | % | | 102.40 | % | | 133.08 | % | | 125.15 | % | | 146.19 | % | | 91.14 | % | | 146.19 | % |
| | | | | | | |
MORTGAGE BANKING | | | | | | | | | | | | | | | | | | | | | | |
Mortgage originations | | $ | 234,100 | | | 296,600 | | | 329,600 | | | 270,400 | | | 339,100 | | | 530,700 | | | 759,000 | |
Net gains on sale of loans | | $ | 1,622 | | | 2,107 | | | 1,196 | | | 1,391 | | | 1,452 | | | 3,729 | | | 3,335 | |
Mortgage servicing portfolio | | $ | 1,972,502 | | | 1,882,029 | | | 1,627,595 | | | 1,485,629 | | | 2,446,605 | | | 1,972,502 | | | 2,446,605 | |
Mortgage servicing rights | | $ | 19,497 | | | 18,882 | | | 16,167 | | | 14,759 | | | 24,448 | | | 19,497 | | | 24,448 | |
Mortgage servicing rights valuation (loss) recovery | | $ | (55 | ) | | 20 | | | (95 | ) | | 257 | | | 107 | | | (35 | ) | | 354 | |
Mortgage servicing rights / Mortgage servicing portfolio | | | 0.99 | % | | 1.00 | % | | 0.99 | % | | 0.99 | % | | 1.00 | % | | 0.99 | % | | 1.00 | % |
| | | | | | | |
END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | | | |
Assets | | $ | 3,074,252 | | | 3,012,232 | | | 3,113,210 | | | 2,647,155 | | | 2,626,531 | | | 3,074,252 | | | 2,626,531 | |
Deposits | | $ | 2,136,084 | | | 2,076,925 | | | 2,060,747 | | | 1,748,362 | | | 1,765,081 | | | 2,136,084 | | | 1,765,081 | |
Shareholders’ equity | | $ | 324,395 | | | 319,056 | | | 311,574 | | | 252,017 | | | 245,191 | | | 324,395 | | | 245,191 | |
Tangible shareholders’ equity | | $ | 221,089 | | | 214,687 | | | 206,160 | | | 183,285 | | | 176,605 | | | 221,089 | | | 176,605 | |
| | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | | |
Loans | | $ | 2,428,262 | | | 2,370,173 | | | 2,115,447 | | | 2,036,257 | | | 1,952,498 | | | 2,399,218 | | | 1,901,376 | |
Loans held for sale | | $ | 68,984 | | | 170,416 | | | 71,541 | | | 84,698 | | | 115,185 | | | 119,700 | | | 143,147 | |
Earning assets | | $ | 2,799,368 | | | 2,853,699 | | | 2,497,241 | | | 2,436,108 | | | 2,389,805 | | | 2,826,534 | | | 2,367,585 | |
Assets | | $ | 3,023,710 | | | 3,097,857 | | | 2,703,370 | | | 2,630,097 | | | 2,582,202 | | | 3,060,784 | | | 2,559,461 | |
Deposits | | $ | 2,118,827 | | | 2,063,538 | | | 1,784,940 | | | 1,738,856 | | | 1,763,597 | | | 2,091,182 | | | 1,750,683 | |
Shareholders’ equity | | $ | 321,456 | | | 316,455 | | | 257,467 | | | 249,155 | | | 243,175 | | | 318,956 | | | 241,178 | |
Tangible shareholders’ equity | | $ | 217,641 | | | 211,538 | | | 187,522 | | | 180,362 | | | 174,145 | | | 214,589 | | | 171,693 | |
9
