Exhibit 99.1
| | |
| For Release: July 18, 2007 | | For Further Information: |
| | Steven R. Lewis, President & CEO |
| | Paul S. Musgrove, CFO |
| | (330) 373-1221 |
First Place Financial Corp. Reports Record Net Income of
$25.6 Million for Fiscal Year 2007, up 11.2% over prior year
Highlights
| | • | | Net income for fiscal 2007 was up 11.2% to $25.6 million from $23.0 million in fiscal 2006. |
| | • | | Net income for the three months ended June 30, 2007 was up 24.9% to $5.6 million from $4.5 million for the three months ended June 30, 2006. |
| | • | | Commercial loans grew $45 million during the current quarter or at an annualized rate of 18.1% and grew $191 million or 22.3% during fiscal 2007. |
| | • | | The acquisition of seven retail banking offices in the Flint, Michigan area as of April 27, 2007 added $200 million in deposits and $26 million in consumer loans. |
| | • | | The Board of Directors declared a quarterly cash dividend of $0.155 per share. |
Summary
Warren, Ohio — July 18, 2007 — First Place Financial Corp. (Nasdaq: FPFC) reported record net income of $25.6 million for the year ended June 30, 2007, compared with $23.0 million for the year ended June 30, 2006, an increase of 11.2%. Diluted earnings per share were $1.49 for the current year compared with $1.55 for the prior year, a decrease of $0.06 or 3.9%. Diluted earnings per share decreased while net income increased because First Place increased its common shares outstanding by 2.3 million as a portion of the purchase price of Northern Savings as of June 27, 2006. Return on average equity for the current year was 7.92% compared with 9.32% for the prior year. Return on average tangible equity for the current year was 11.71% compared with 12.96% for the prior year.
Net income for the three months ended June 30, 2007 was $5.6 million compared with $6.5 million for the preceding quarter ended March 31, 2007 and $4.5 million for the quarter ended June 30, 2006. The current quarter included $0.5 million net of tax of merger, integration and restructuring charges compared with none for the quarter ended March 31, 2007 and $1.4 million for the quarter ended June 30, 2006. The current quarter merger, integration and restructuring costs were associated with the purchase of seven retail offices in the Flint, Michigan area while the prior year’s costs were associated with the acquisition of The Northern Savings and Loan Company in Elyria, Ohio. Diluted earnings per share for the current quarter were $0.33 compared with $0.38 for the preceding quarter and $0.30 for the fourth quarter of the prior fiscal year. Return on average equity for the current quarter was 6.84% compared with 8.02% for the preceding quarter and 7.02% for the fourth quarter of the previous fiscal year.
Core earnings are a supplementary financial measure computed using methods other than generally accepted accounting principles (GAAP) that excludes certain unusual or nonrecurring items of revenue or expense. Core earnings in the current quarter do not include the $0.5 million of after tax charges for costs associated with the acquisition of retail branches in the Flint, Michigan area. Core earnings were identical to GAAP earnings for the preceding quarter. Core earnings for the prior year quarter do not include $1.4 million of after tax charges for merger costs associated with the Northern Savings acquisition.
Core earnings for the year ended June 30, 2007, were $26.1 million compared with $24.5 million for the year ended June 30, 2006, or an increase of 6.8%. Core diluted earnings per share were $1.52 for the current year compared with $1.65 for the prior year, a decrease of 7.9%. Core return on average equity for the current year was 8.07% compared with 9.89% for the prior year. For additional information on core earnings, see the Explanation of Certain Non-GAAP Measures beginning on page four of this release and the Reconciliation of GAAP Net Income to Core Earnings on page eight.
Core earnings for the quarter ended June 30, 2007 were $6.1 million down 5.5% from core earnings of $6.5 million for the preceding quarter and up 3.3% from core earnings of $5.9 million for the quarter ended June 30, 2006. Core diluted earnings per share were $0.36 for the current quarter compared with $0.38 for the preceding quarter and $0.40 for the fourth quarter of the prior fiscal year. Core return on average equity for the quarter ended June 30, 2007 was 7.44%, down from 8.02% for the preceding quarter and down from 9.22% for the prior year fourth quarter.
Commenting on these results, Steven R. Lewis, President and CEO, stated, “We are pleased to be able to announce another year of record earnings. Both the interest rate environment and the economic environment have presented challenges to us this year resulting in decreases in net interest margin and increases in nonperforming assets. However, we have been actively managing to counteract both trends and remain equally committed to growing franchise value. Our recent acquisition of retail banking offices in the Flint, Michigan area should contribute to stable funding costs going forward.”
Revenue
Net interest income for the fourth quarter of fiscal 2007 was $21.9 million, an increase of 7.9% over the fourth quarter of fiscal 2006. This increase was the net result of the benefit of a 16.1% 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 of 0.22% to 3.07% from 3.29% over the same periods. The increase in average earning assets was primarily due to the acquisition of Northern Savings on June 27, 2006. The decrease in the net interest margin from the same period in the prior year is the result of experiencing an inverted yield curve for substantially all of fiscal 2007 while liability maturities have been concentrated in the zero to 18 month range where rates have been the highest.
Noninterest income for the fourth quarter of fiscal 2007 was $9.1 million, an increase of $1.7 million or 23.2% compared with the same quarter in the prior year. Service charges, other income - non-bank and net gains on the sale of securities increased $0.6 million, $0.8 million and $0.3 million, respectively, over prior year levels while gain on the sale of servicing rights and other income-bank declined $0.3 million and 0.4 million, respectively. During the fourth quarter of fiscal 2006, the Company recorded a $0.4 million gain from recognizing an equity interest in a credit card servicer. During the fourth quarter of fiscal 2007 the Company sold that same stock for a $0.3 million gain. Each transaction was a unique event and they explain the increase in gain on securities and the decrease in other income – bank when the current and prior year quarters are compared. The increase in other income – nonbank was due to increases in commission revenue from affiliates in the insurance, real estate and securities industries.
Net gains on sale of loans were $1.8 million for the quarter ended June 30, 2007, a $0.5 million or 45.2% increase from the quarter ended June 30, 2006. The increase was primarily due to the increase in the volume of loans sold in the current quarter of $275 million from $208 million sold in the same quarter in the prior year and secondarily due to an increase in the margin recognized on the gain on sale of loans.
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Noninterest Expense
Noninterest expense for the fourth quarter of fiscal year 2007 was $19.4 million, an increase of $0.6 million or 3.4% compared with the fourth quarter of fiscal year 2006. This was the result of the net impact of increases in salaries, employee benefits, occupancy, marketing and intangible amortization expenses related to the six Northern Savings retail banking offices added as of June 27, 2006 and the seven Flint, Michigan retail banking offices acquired as of April 27, 2007, partially offset by a decrease in merger expenses on these same two acquisitions. Noninterest expense as a percent of average assets was 2.49% for the quarter ended June 30, 2007, down from 2.79% for the same quarter in the prior year.
Excluding merger charges in each year, core noninterest expense for the current quarter was $18.7 million, compared with $16.6 million in the same quarter in the prior year, an increase of 12.4%. Core noninterest expense as a percent of average assets for the quarter ended June 30, 2007 was 2.39%, down from 2.47% for the same quarter in the prior year.
Asset Quality
Nonperforming assets were $40.7 million at June 30, 2007, or 1.26% of total assets, up from $32.7 million or 1.06% of total assets at March 31, 2007. The increase in nonperforming assets was due to a $1.7 million increase in real estate owned and a $6.3 million increase in nonperforming loans. Nonperforming loans were $34.0 million at June 30, 2007, compared with $27.6 million at March 31, 2007. The increase in nonperforming loans was composed of $3.9 million of commercial loans, $2.0 million of mortgage and construction loans and $0.4 million of consumer loans. The increase of $3.9 million in nonperforming commercial loans was due to one $3.9 million acquisition and development loan in Southeast Michigan. The Company and the borrower had been working collectively to resolve the acquisition and development loan issue. However, at June 30, 2007, a satisfactory resolution was not imminent resulting in an impairment of $1.4 million of the loan. Of the total nonperforming loans at June 30, 2007, 92% were secured by real estate. Real estate 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 June 30, 2007 were $1.2 million or 0.19% of average loans annualized compared with $1.0 million or 0.17% of average loans annualized for the quarter ended March 31, 2007. The provision for loan losses for the current quarter was $3.2 million up $1.8 million from the preceding quarter. The current quarter provision included $1.4 million related to the impaired loan mentioned above. The provision of $3.2 million in the current quarter was $2.0 million or 172% higher than net charge-offs in the current quarter of $1.2 million. The allowance for loan losses increased $2.0 million to $25.9 million at June 30, 2007, from $23.8 million at March 31, 2007. The ratio of the allowance for loan losses to total loans was 1.03% at June 30, 2007, up from 0.98% at March 31, 2007 and up from 0.95% at June 30, 2006.
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. The ultimate measure of asset quality is the level of charge-offs. Our ratio of charge-offs to average loans has remained below 0.20% for the current fiscal year and during each quarter, which compares favorably with our regional peers. At the same time, our provision for loan losses was in excess of 190% of our charge-offs for the current quarter and for the fiscal year taken as a whole.”
Balance Sheet Activity
Assets were $3.226 billion at June 30, 2007, compared with $3.095 billion at March 31, 2007 and $3.113 billion at June 30, 2006. During the first quarter of fiscal 2007 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
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rate risk objectives. Since that time assets have grown as new loans were generated to replace the loans that were sold. Total portfolio loans were $2.508 billion at June 30, 2007, an increase of $86 million from March 31, 2007. Commercial loans increased $45 million during the current quarter, or 18.1% annualized, to $1.047 billion. Commercial loans now account for 41.7% of the loan portfolio up from 41.4% at March 31, 2007. Mortgage and construction loans increased $20 million during the current quarter, and consumer loans increased $21 million during the current quarter due to the acquisition of $26 million of consumer loans as part of the purchase of seven retail branch locations in the Flint, Michigan area.
Deposits totaled $2.241 billion at June 30, 2007, an increase of $137 million since March 31, 2007. This increase was composed of a $200 million increase from the acquisition of retail branch deposits in the Flint, Michigan area, a $53 million decrease in retail deposits and a $10 million decrease in brokered deposits. The decrease in retail deposits was the result of an intentional decision to be more conservative in pricing to utilize the liquidity generated by the retail branch purchase. Total borrowings decreased $29 million to $593 million at June 30, 2007, compared with March 31, 2007. That decrease was also in response to increased liquidity from the retail branch office purchase.
Steven Lewis noted, “We continued to increase commercial loans during the quarter bringing more balance and higher yields into our loan portfolio. In addition, we are very pleased with the deposit growth we have experienced in our new markets of Lorain County, Ohio and Flint, Michigan. That growth has enabled us to be more disciplined in our deposit pricing”
Shareholders’ equity remains strong; it was $326 million at June 30, 2007, down $4 million from March 31, 2007. The decline was primarily due to the excess of $5.3 million of treasury stock purchases, $2.7 million in dividends paid and an after-tax decline of $2.1 million in available for sale securities over net income of $5.6 million. Shareholders equity as a percent of assets was 10.11% at June 30, 2007, down from 10.67% at March 31, 2007 and up from 10.01% at June 30, 2006. Tangible equity to assets decreased to 6.99% at June 30, 2007 from 7.60% at March 31, 2007 and up from 6.85% at June 30, 2006. During the quarter ended June 30, 2007, First Place purchased 252,874 treasury shares at an average price of $21.24 per share.
Board Actions
At its regular meeting held June 17, 2007, the Board of Directors declared a per share cash dividend of $0.155 payable on August 9, 2007, to shareholders of record as of the close of business on July 26, 2007.
About First Place Financial Corp.
First Place Financial Corp., a $3.2 billion financial services holding company based in Warren, Ohio, is the largest publicly-owned thrift headquartered in Ohio. First Place Financial Corp. operates 41 retail locations, 2 business financial service centers and 18 loan production offices through the First Place Bank, 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
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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 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 June 30, | | Percent
Change | | | Year ended June 30, | | | Percent
Change | |
(Dollars in thousands, except share data) | | 2007 | | 2006 | | | 2007 | | 2006 | | |
Interest income | | $ | 47,739 | | $ | 40,185 | | 18.8 | % | | $ | 186,464 | | $ | 149,053 | | | 25.1 | % |
Interest expense | | | 25,885 | | | 19,934 | | 29.9 | | | | 99,459 | | | 70,639 | | | 40.8 | |
| | | | | | | | | | | | | | | | | | | |
Net interest income | | | 21,854 | | | 20,251 | | 7.9 | | | | 87,005 | | | 78,414 | | | 11.0 | |
Provision for loan losses | | | 3,176 | | | 2,317 | | 37.1 | | | | 7,391 | | | 5,875 | | | 25.8 | |
| | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 18,678 | | | 17,934 | | 4.1 | | | | 79,614 | | | 72,539 | | | 9.8 | |
Noninterest income | | | | | | | | | | | | | | | | | | | |
Service charges | | | 1,987 | | | 1,427 | | 39.2 | | | | 6,436 | | | 5,505 | | | 16.9 | |
Net gains (losses) on sale of securities | | | 346 | | | 2 | | N/M | | | | 430 | | | (943 | ) | | (145.6 | ) |
Net gains on sale of loans | | | 1,737 | | | 1,196 | | 45.2 | | | | 7,240 | | | 5,922 | | | 22.3 | |
Gain on sale of loan servicing rights | | | — | | | 290 | | (100.0 | ) | | | — | | | 1,841 | | | (100.0 | ) |
Loan servicing income | | | 386 | | | 221 | | 74.7 | | | | 1,339 | | | 1,302 | | | 2.8 | |
Other income – bank | | | 1,686 | | | 2,135 | | (21.0 | ) | | | 7,066 | | | 7,408 | | | (4.6 | ) |
Other income – non-bank | | | 2,943 | | | 2,101 | | 40.1 | | | | 9,777 | | | 7,950 | | | 23.0 | |
| | | | | | | | | | | | | | | | | | | |
Total noninterest income | | | 9,085 | | | 7,372 | | 23.2 | | | | 32,288 | | | 28,985 | | | 11.4 | |
Noninterest expense | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 8,625 | | | 8,089 | | 6.6 | | | | 35,951 | | | 32,654 | | | 10.1 | |
Occupancy and equipment | | | 2,989 | | | 2,743 | | 9.0 | | | | 11,577 | | | 10,089 | | | 14.7 | |
Professional fees | | | 852 | | | 683 | | 24.7 | | | | 3,010 | | | 2,816 | | | 6.9 | |
Loan expenses | | | 489 | | | 777 | | (37.1 | ) | | | 2,121 | | | 2,716 | | | (21.9 | ) |
Marketing | | | 786 | | | 406 | | 93.6 | | | | 2,535 | | | 2,005 | | | 26.4 | |
Merger, integration and restructuring | | | 749 | | | 2,173 | | (65.5 | ) | | | 749 | | | 2,173 | | | (65.5 | ) |
Franchise taxes | | | 451 | | | 481 | | (6.2 | ) | | | 1,239 | | | 1,407 | | | (11.9 | ) |
Amortization of intangible assets | | | 1,118 | | | 886 | | 26.2 | | | | 4,321 | | | 3,655 | | | 18.2 | |
Other | | | 3,383 | | | 2,562 | | 32.0 | | | | 12,693 | | | 10,635 | | | 19.4 | |
| | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | | 19,442 | | | 18,800 | | 3.4 | | | | 74,196 | | | 68,150 | | | 8.9 | |
Income before income taxes | | | 8,321 | | | 6,506 | | 27.9 | | | | 37,706 | | | 33,374 | | | 13.0 | |
Provision for income taxes | | | 2,696 | | | 2,001 | | 34.7 | | | | 12,082 | | | 10,330 | | | 17.0 | |
| | | | | | | | | | | | | | | | | | | |
Net income | | $ | 5,625 | | $ | 4,505 | | 24.9 | % | | $ | 25,624 | | $ | 23,044 | | | 11.2 | % |
| | | | | | | | | | | | | | | | | | | |
SHARE DATA: | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.33 | | $ | 0.31 | | 6.5 | % | | $ | 1.51 | | $ | 1.58 | | | (4.4 | )% |
Diluted earnings per share | | $ | 0.33 | | $ | 0.30 | | 10.0 | | | $ | 1.49 | | $ | 1.55 | | | (3.9 | ) |
Cash dividends per share | | $ | 0.155 | | $ | 0.140 | | 10.7 | | | $ | 0.605 | | $ | 0.560 | | | 8.0 | |
Average shares outstanding - basic | | | 16,934,216 | | | 14,703,935 | | 15.2 | | | | 16,954,804 | | | 14,564,909 | | | 16.4 | |
Average shares outstanding - diluted | | | 17,105,823 | | | 14,950,054 | | 14.4 | | | | 17,171,684 | | | 14,821,366 | | | 15.9 | |
N/M – Not meaningful
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FIRST PLACE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
| | | | | | | | | | | | | | | |
(Dollars in thousands) | | June 30,
2007
(Unaudited) | | Mar 31,
2007
(Unaudited) | | Dec 31, 2006
(Unaudited) | | Sept 30,
2006
(Unaudited) | | June 30,
2006 |
ASSETS | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 87,124 | | $ | 57,177 | | $ | 75,946 | | $ | 73,736 | | $ | 72,906 |
Interest-bearing deposits in other banks | | | 91 | | | 1,273 | | | 84 | | | 79 | | | 4,605 |
Securities available for sale | | | 285,242 | | | 267,305 | | | 267,613 | | | 271,506 | | | 302,994 |
Loans held for sale | | | 96,163 | | | 109,079 | | | 75,572 | | | 76,541 | | | 154,799 |
Loans | | | | | | | | | | | | | | | |
Mortgage and construction | | | 1,079,788 | | | 1,059,526 | | | 1,102,648 | | | 1,112,827 | | | 1,123,911 |
Commercial | | | 1,046,893 | | | 1,001,661 | | | 959,678 | | | 887,183 | | | 856,129 |
Consumer | | | 381,011 | | | 360,103 | | | 361,082 | | | 360,157 | | | 370,744 |
| | | | | | | | | | | | | | | |
Total loans | | | 2,507,692 | | | 2,421,290 | | | 2,423,408 | | | 2,360,167 | | | 2,350,784 |
Less allowance for loan losses | | | 25,851 | | | 23,844 | | | 23,425 | | | 22,819 | | | 22,319 |
| | | | | | | | | | | | | | | |
Loans, net | | | 2,481,841 | | | 2,397,446 | | | 2,399,983 | | | 2,337,348 | | | 2,328,465 |
Federal Home Loan Bank stock | | | 33,209 | | | 33,209 | | | 33,209 | | | 32,946 | | | 32,616 |
Premises and equipment, net | | | 45,639 | | | 41,535 | | | 38,690 | | | 37,498 | | | 35,485 |
Goodwill | | | 91,692 | | | 88,296 | | | 88,046 | | | 88,046 | | | 88,009 |
Core deposit and other intangibles | | | 16,678 | | | 14,429 | | | 15,260 | | | 16,323 | | | 17,405 |
Other assets | | | 88,534 | | | 85,648 | | | 79,849 | | | 78,209 | | | 75,926 |
| | | | | | | | | | | | | | | |
Total assets | | $ | 3,226,213 | | $ | 3,095,397 | | $ | 3,074,252 | | $ | 3,012,232 | | $ | 3,113,210 |
| | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | |
Non-interest bearing checking | | $ | 242,068 | | $ | 229,179 | | $ | 234,576 | | $ | 214,067 | | $ | 224,738 |
Interest bearing checking | | | 154,941 | | | 141,355 | | | 146,878 | | | 136,063 | | | 140,752 |
Savings | | | 390,462 | | | 327,236 | | | 307,581 | | | 274,547 | | | 242,178 |
Money market | | | 404,248 | | | 453,673 | | | 464,999 | | | 465,898 | | | 511,482 |
Certificates of deposit | | | 1,048,977 | | | 952,615 | | | 982,050 | | | 986,350 | | | 941,597 |
| | | | | | | | | | | | | | | |
Total deposits | | | 2,240,696 | | | 2,104,058 | | | 2,136,084 | | | 2,076,925 | | | 2,060,747 |
Securities sold under agreements to repurchase | | | 95,724 | | | 92,181 | | | 67,325 | | | 51,533 | | | 44,013 |
Borrowings | | | 435,582 | | | 468,258 | | | 450,522 | | | 466,633 | | | 603,906 |
Junior subordinated debentures owed to unconsolidated subsidiary trusts | | | 61,857 | | | 61,857 | | | 61,857 | | | 61,857 | | | 61,857 |
Other liabilities | | | 66,167 | | | 38,896 | | | 34,069 | | | 36,228 | | | 31,113 |
| | | | | | | | | | | | | | | |
Total liabilities | | | 2,900,026 | | | 2,765,250 | | | 2,749,857 | | | 2,693,176 | | | 2,801,636 |
SHAREHOLDERS’ EQUITY | | | 326,187 | | | 330,147 | | | 324,395 | | | 319,056 | | | 311,574 |
| | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 3,226,213 | | $ | 3,095,397 | | $ | 3,074,252 | | $ | 3,012,232 | | $ | 3,113,210 |
| | | | | | | | | | | | | | | |
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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
Year ended
June 30, | |
(Dollars in thousands except per share data) | | 6/30/07
4th Qtr
FY 2007 | | | 3/31/07
3rd Qtr
FY 2007 | | | 12/31/06
2nd Qtr
FY 2007 | | | 9/30/06
1st Qtr
FY 2007 | | | 6/30/06
4th Qtr
FY 2006 | | | 2007 | | | 2006 | |
EARNINGS (GAAP) | | | | | | | | | | | | | | | | | | | | | | |
Tax equivalent net interest income | | $ | 22,211 | | | 21,875 | | | 21,276 | | | 23,089 | | | 20,565 | | | 88,451 | | | 79,396 | |
Net interest income | | $ | 21,854 | | | 21,517 | | | 20,902 | | | 22,732 | | | 20,251 | | | 87,005 | | | 78,414 | |
Provision for loan losses | | $ | 3,176 | | | 1,425 | | | 1,410 | | | 1,380 | | | 2,317 | | | 7,391 | | | 5,875 | |
Noninterest income | | $ | 9,085 | | | 7,787 | | | 7,508 | | | 7,908 | | | 7,372 | | | 32,288 | | | 28,985 | |
Noninterest expense | | $ | 19,442 | | | 18,396 | | | 17,425 | | | 18,933 | | | 18,800 | | | 74,196 | | | 68,150 | |
Net income | | $ | 5,625 | | | 6,467 | | | 6,530 | | | 7,002 | | | 4,505 | | | 25,624 | | | 23,044 | |
Basic earnings per share | | $ | 0.33 | | | 0.38 | | | 0.39 | | | 0.41 | | | 0.31 | | | 1.51 | | | 1.58 | |
Diluted earnings per share | | $ | 0.33 | | | 0.38 | | | 0.38 | | | 0.41 | | | 0.30 | | | 1.49 | | | 1.55 | |
PERFORMANCE RATIOS(annualized) (GAAP) | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.72 | % | | 0.85 | % | | 0.86 | % | | 0.90 | % | | 0.67 | % | | 0.83 | % | | 0.88 | % |
Return on average equity | | | 6.84 | % | | 8.02 | % | | 8.06 | % | | 8.78 | % | | 7.02 | % | | 7.92 | % | | 9.32 | % |
Return on average tangible assets | | | 0.75 | % | | 0.88 | % | | 0.89 | % | | 0.93 | % | | 0.69 | % | | 0.86 | % | | 0.91 | % |
Return on average tangible equity | | | 10.15 | % | | 11.71 | % | | 11.90 | % | | 13.13 | % | | 9.64 | % | | 11.71 | % | | 12.96 | % |
Net interest margin, fully tax equivalent | | | 3.07 | % | | 3.15 | % | | 3.04 | % | | 3.24 | % | | 3.29 | % | | 3.11 | % | | 3.29 | % |
Efficiency ratio | | | 62.12 | % | | 62.02 | % | | 60.54 | % | | 61.08 | % | | 67.29 | % | | 61.45 | % | | 62.88 | % |
Noninterest expense as a percent of average assets | | | 2.49 | % | | 2.43 | % | | 2.29 | % | | 2.42 | % | | 2.79 | % | | 2.41 | % | | 2.61 | % |
RECONCILIATION OF NET INCOME TO CORE EARNINGS | | | | | | | | | | | | | | | | | | | | | | |
GAAP net income | | $ | 5,625 | | | 6,467 | | | 6,530 | | | 7,002 | | | 4,505 | | | 25,624 | | | 23,044 | |
Merger, integration and restructuring, net of tax | | $ | 487 | | | — | | | — | | | — | | | 1,413 | | | 487 | | | 1,413 | |
Core earnings | | $ | 6,112 | | | 6,467 | | | 6,530 | | | 7,002 | | | 5,918 | | | 26,111 | | | 24,457 | |
CORE EARNINGS | | | | | | | | | | | | | | | | | | | | | | |
Core earnings | | $ | 6,112 | | | 6,467 | | | 6,530 | | | 7,002 | | | 5,918 | | | 26,111 | | | 24,457 | |
Basic core earnings per share | | $ | 0.36 | | | 0.38 | | | 0.39 | | | 0.41 | | | 0.40 | | | 1.54 | | | 1.68 | |
Core diluted earnings per share | | $ | 0.36 | | | 0.38 | | | 0.38 | | | 0.41 | | | 0.40 | | | 1.52 | | | 1.65 | |
CORE PERFORMANCE RATIOS(annualized) | | | | | | | | | | | | | | | | | | | | | | |
Core return on average assets | | | 0.78 | % | | 0.85 | % | | 0.86 | % | | 0.90 | % | | 0.88 | % | | 0.85 | % | | 0.94 | % |
Core return on average equity | | | 7.44 | % | | 8.02 | % | | 8.06 | % | | 8.78 | % | | 9.22 | % | | 8.07 | % | | 9.89 | % |
Core return on average tangible assets | | | 0.81 | % | | 0.88 | % | | 0.89 | % | | 0.93 | % | | 0.90 | % | | 0.88 | % | | 0.96 | % |
Core return on average tangible equity | | | 11.03 | % | | 11.71 | % | | 11.90 | % | | 13.13 | % | | 12.66 | % | | 11.93 | % | | 13.76 | % |
Core net interest margin, fully tax equivalent | | | 3.07 | % | | 3.15 | % | | 3.04 | % | | 3.24 | % | | 3.29 | % | | 3.11 | % | | 3.29 | % |
Core efficiency ratio | | | 59.73 | % | | 62.02 | % | | 60.54 | % | | 61.08 | % | | 59.52 | % | | 60.83 | % | | 60.87 | % |
Core noninterest expense as a percent of average assets | | | 2.39 | % | | 2.43 | % | | 2.29 | % | | 2.42 | % | | 2.47 | % | | 2.38 | % | | 2.53 | % |
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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 Year ended June 30, | |
(Dollars in thousands except per share data) | | 6/30/07 4th Qtr FY 2007 | | | 3/31/07 3rd Qtr FY 2007 | | | 12/31/06
2nd Qtr FY 2007 | | | 9/30/06 1st Qtr FY 2007 | | | 6/30/06 4th Qtr FY 2006 | | | 2007 | | | 2006 | |
CAPITAL | | | | | | | | | | | | | | | | | | | | | | |
Equity to total assets at end of period | | | 10.11 | % | | 10.67 | % | | 10.55 | % | | 10.59 | % | | 10.01 | % | | 10.11 | % | | 10.01 | % |
Tangible equity to tangible assets | | | 6.99 | % | | 7.60 | % | | 7.44 | % | | 7.38 | % | | 6.85 | % | | 6.99 | % | | 6.85 | % |
Book value per share | | $ | 18.92 | | | 18.88 | | | 18.57 | | | 18.28 | | | 17.87 | | | 18.92 | | | 17.87 | |
Tangible book value per share | | $ | 12.64 | | | 13.01 | | | 12.66 | | | 12.30 | | | 11.83 | | | 12.64 | | | 11.83 | |
Period-end market value per share | | $ | 21.12 | | | 21.45 | | | 23.49 | | | 22.66 | | | 23.01 | | | 21.12 | | | 23.01 | |
Dividends declared per common share | | $ | 0.155 | | | 0.155 | | | 0.155 | | | 0.140 | | | 0.140 | | | 0.605 | | | 0.560 | |
Common stock dividend payout ratio | | | 46.97 | % | | 40.79 | % | | 40.79 | % | | 34.15 | % | | 46.67 | % | | 40.60 | % | | 36.13 | % |
Period-end common shares outstanding (000) | | | 17,236 | | | 17,486 | | | 17,470 | | | 17,456 | | | 17,433 | | | 17,236 | | | 17,433 | |
Average basic shares outstanding (000) | | | 16,934 | | | 17,006 | | | 16,959 | | | 16,921 | | | 14,704 | | | 16,955 | | | 14,565 | |
Average diluted shares outstanding (000) | | | 17,106 | | | 17,214 | | | 17,209 | | | 17,163 | | | 14,950 | | | 17,172 | | | 14,821 | |
ASSET QUALITY | | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs (recoveries) | | $ | 1,169 | | | 1,006 | | | 805 | | | 879 | | | 694 | | | 3,859 | | | 2,348 | |
Annualized net charge-offs (recoveries) to average loans | | | 0.19 | % | | 0.17 | % | | 0.13 | % | | 0.15 | % | | 0.13 | % | | 0.16 | % | | 0.12 | % |
Nonperforming loans (NPLs) | | $ | 33,962 | | | 27,630 | | | 25,702 | | | 22,284 | | | 16,771 | | | 33,962 | | | 16,771 | |
NPLs as a percent of total loans | | | 1.35 | % | | 1.14 | % | | 1.06 | % | | 0.94 | % | | 0.71 | % | | 1.35 | % | | 0.71 | % |
Nonperforming assets (NPAs) | | $ | 40,687 | | | 32,732 | | | 29,439 | | | 26,184 | | | 20,695 | | | 40,687 | | | 20,695 | |
NPAs as a percent of total assets | | | 1.26 | % | | 1.06 | % | | 0.96 | % | | 0.87 | % | | 0.66 | % | | 1.26 | % | | 0.66 | % |
Allowance for loan losses | | $ | 25,851 | | | 23,844 | | | 23,425 | | | 22,819 | | | 22,319 | | | 25,851 | | | 22,319 | |
Allowance for loan losses as a percent of loans | | | 1.03 | % | | 0.98 | % | | 0.97 | % | | 0.97 | % | | 0.95 | % | | 1.03 | % | | 0.95 | % |
Allowance for loan losses as a percent of NPLs | | | 76.12 | % | | 86.30 | % | | 91.14 | % | | 102.40 | % | | 133.08 | % | | 76.12 | % | | 133.08 | % |
MORTGAGE BANKING | | | | | | | | | | | | | | | | | | | | | | |
Mortgage originations | | $ | 356,300 | | | 233,200 | | | 234,100 | | | 296,600 | | | 329,600 | | | 1,120,200 | | | 1,359,000 | |
Net gains on sale of loans | | $ | 1,737 | | | 1,774 | | | 1,622 | | | 2,107 | | | 1,196 | | | 7,240 | | | 5,922 | |
Mortgage servicing portfolio | | $ | 2,095,607 | | | 2,035,437 | | | 1,972,502 | | | 1,882,029 | | | 1,627,595 | | | 2,095,607 | | | 1,627,595 | |
Mortgage servicing rights | | $ | 20,785 | | | 20,092 | | | 19,497 | | | 18,882 | | | 16,167 | | | 20,785 | | | 16,167 | |
Mortgage servicing rights valuation (loss) recovery | | $ | 70 | | | 76 | | | (55 | ) | | 20 | | | (95 | ) | | 111 | | | 516 | |
Mortgage servicing rights / Mortgage servicing portfolio | | | 0.99 | % | | 0.99 | % | | 0.99 | % | | 1.00 | % | | 0.99 | % | | 0.99 | % | | 0.99 | % |
END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | | | |
Assets | | $ | 3,226,213 | | | 3,095,397 | | | 3,074,252 | | | 3,012,232 | | | 3,113,210 | | | 3,226,213 | | | 3,113,210 | |
Deposits | | $ | 2,240,696 | | | 2,104,058 | | | 2,136,084 | | | 2,076,925 | | | 2,060,747 | | | 2,240,696 | | | 2,060,747 | |
Shareholders’ equity | | $ | 326,187 | | | 330,147 | | | 324,395 | | | 319,056 | | | 311,574 | | | 326,187 | | | 311,574 | |
Tangible shareholders’ equity | | $ | 217,817 | | | 227,422 | | | 221,089 | | | 214,687 | | | 206,160 | | | 217,817 | | | 206,160 | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | | |
Loans | | $ | 2,503,590 | | | 2,439,627 | | | 2,428,262 | | | 2,370,173 | | | 2,115,447 | | | 2,435,203 | | | 1,988,006 | |
Loans held for sale | | $ | 93,719 | | | 81,204 | | | 68,984 | | | 170,416 | | | 71,541 | | | 103,731 | | | 110,882 | |
Earning assets | | $ | 2,898,204 | | | 2,819,160 | | | 2,799,368 | | | 2,853,699 | | | 2,497,241 | | | 2,844,184 | | | 2,416,806 | |
Assets | | $ | 3,134,562 | | | 3,067,951 | | | 3,023,710 | | | 3,097,857 | | | 2,703,370 | | | 3,080,945 | | | 2,612,757 | |
Deposits | | $ | 2,193,083 | | | 2,095,705 | | | 2,118,827 | | | 2,063,538 | | | 1,784,940 | | | 2,117,703 | | | 1,756,307 | |
Shareholders’ equity | | $ | 329,652 | | | 326,873 | | | 321,456 | | | 316,455 | | | 257,467 | | | 323,575 | | | 247,206 | |
Tangible shareholders’ equity | | $ | 220,330 | | | 223,944 | | | 217,641 | | | 211,538 | | | 187,522 | | | 218,826 | | | 177,777 | |
- 9 -
