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: January 20, 2000
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FIRST PLACE FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
Delaware 0-25049 34-1880130
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(State or other jurisdiction (Commission File Number) (IRS Employer Identification #)
of incorporation)
185 E. Market Street, Warren, OH 44482
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including are code (330) 373-1221
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N/A
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(Former name or former address, if changed since last report)
Item 5 Other Events
Second Quarter 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: January 20, 2000 By: /s/ Steven R. Lewis
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Steven R. Lewis,
President and CEO
For Immediate Release For Further Information:
Thursday, January 20, 1999 Steven Lewis, President and CEO
Troy Adair, Investor Relations
Phone (330) 373-1221
Fax (330) 392-8227
First Place Financial Corp. Announces Second Quarter Results
Warren, Ohio, January 20, 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 the three months ended December 31,
1999 of $2.2 million, or $.23 per share (diluted), compared to a loss of $4.3
million for the three month period ended December 31, 1998. Excluding a one-
time expense of $185,000 for a grocery store branch closing, earnings per share
would have been $.24 per share (diluted). The loss in the prior period was
primarily due to the $8.0 million contribution to the First Federal of Warren
Community Foundation.
Earnings for the six month period ending December 31, 1999, were $4.6 million,
or $.47 per share (diluted) compared to a loss of $3.1 million for the six
months ended December 31, 1998. Excluding the one-time expense, earnings would
have been $.48 per share for the six months ended December 31, 1999. Earnings
per share are not reported for prior periods since the Company did not complete
its initial public offering until December 31, 1998.
The Company expects that the closing of the grocery store office in the summer
of 2000 will result in cost savings of over $150,000 per year. Steven Lewis,
President and CEO, stated that "The financial success of any grocery store
office is highly dependent upon the traffic flowing through the retail
establishment. We have not seen sufficient customer volumes in the time this
store has been open to justify continued operation. We do recognize, however,
the value that our customers place on the extended hours and convenience offered
by this type of operation. To satisfy the needs of those customers, we will be
extending the hours of an office located nearby to closely match the hours
offered at the existing grocery store office. As a result, we do not anticipate
the loss of any customers."
On November 30, 1999, the company announced that it had completed a 5% share
repurchase program. The company also purchased an additional 1,311,938 shares
in December through open market purchases. These shares were repurchased
pursuant to the conditions set forth by the Office of Thrift Supervision (OTS),
with respect to the proposed acquisition of Ravenna Savings Bank by FPFC. Under
the terms of the agreement announced November 23, 1999, FPFC will exchange 2,033
shares of its common stock for each share outstanding of Ravenna Savings Bank
stock. The OTS granted FPFC the option to repurchase 100 percent of the shares
to be issued in the transaction which is expected to be consummated during the
Company's fourth quarter.
Assets totaled $804.9 million at December 31, 1999 compared to $747.3 million at
June 30, 1999. This increase in assets was primarily due to growth in net loans
receivable which totaled $516.0 million at December 31, 1999, compared to $453.8
million at June 30, 1999. This increase was primarily due to continued growth
in 1- 4 family mortgage lending along with smaller increases in home equity
loans and commercial real estate loans.
Deposits increased from $429.2 million at June 30, 1999 to $445.2 million at
December 31, 1999. This increase was primarily due to growth in certificates of
deposit. Total borrowings were $216.8 million at December 31, 1999 compared to
$149.2 million at June 30, 1999. The increase in borrowings was used to fund
the repurchase of common stock and to fund the growth in loans not supported by
deposit growth. Total shareholders' equity decreased $26.8 million to $131.3
million at December 31, 1999 compared to $158.1 million at June 30, 1999. This
decrease was primarily the result of the stock repurchases discussed previously.
Additional information about the Company may be found on the Company's web site:
www.firstfederalofwarren.com.
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FIRST PLACE FINANCIAL CORP.
Selected Consolidated Financial Condition Data:
(Unaudited)
December 31, June 30, %
($ in thousands) 1999 1999 Change
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Total assets $804,850 $747,332 8%
Loans receivable, net 516,036 453,791 14%
Loans available for sale 815 945 -14%
Allowance for loan losses 3,743 3,623 3%
Non performing assets 2,031 1,782 14%
Securities available for sale 248,476 249,159 0%
Deposits 445,240 429,225 4%
Federal Home Loan Bank Advances 142,351 94,811 50%
Repurchase Agreements 74,430 54,430 37%
Total shareholders' equity 131,306 158,054 -17%
Three Months Ended Six Months Ended
December 31, % December 31, %
Selected Consolidated Operations Data: 1999 1998 Change 1999 1998 Change
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($ in thousands except per share amounts)
Total interest income $13,999 $11,851 18% $27,398 $23,066 19%
Total interest expense 7,443 6,921 8% 14,233 13,620 5%
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Net interest income 6,556 4,930 33% 13,165 9,446 39%
Provision for loan losses 214 475 -55% 383 658 -42%
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Net interest income after provision 6,342 4,455 42% 12,782 8,788 45%
Non interest income 483 493 -2% 963 950 1%
Gain (loss) on sale of securities (6) (40) -85% (6) (40) -85%
Contribution to Community Foundation 0 8,026 N/M 0 8,026 N/M
Gain (loss) on sale of loans 96 0 N/M 175 0 N/M
Non interest expense 3,684 3,425 8% 7,169 6,325 13%
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Income before federal income tax 3,231 (6,543) -149% 6,745 (4,653) -245%
Federal income tax expense 1,056 (2,224) -147% 2,170 (1,581) -237%
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Net income $2,175 ($4,319) -150% $4,575 ($3,072) -249%
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Basic earnings per share $0.23 N/A $0.47 N/A
Diluted earnings per share $0.23 N/A $0.47 N/A
Cash dividends declared per share $0.075 N/A $0.15 N/A
Average shares outstanding - basic 9,469,662 N/A 9,743,907 N/A
Average shares outstanding - diluted 9,469,662 N/A 9,743,907 N/A
N/M - Not meaningful.
At or for the Three At or for the Six
Months Ended Months Ended
December 31, December 31,
Selected Financial Ratios and Other Data: (1) 1999 1998 1999 1998
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Performance Ratios:
Return on average assets (2) 1.11% -2.57% 1.19% -0.96%
Return on average equity (3) 5.86% -27.55% 6.04% -9.95%
Interest rate spread (4) 2.51% 2.58% 2.58% 2.56%
Net interest margin (5) 3.45% 3.02% 3.52% 3.02%
Efficiency ratio (6) 51.68% 212.72% 50.14% 138.57%
Net interest income to operating expenses 177.96% 43.06% 183.64% 65.82%
Capital Ratios:
Equity to total assets at end of period 16.31% 21.18% 16.31% 21.18%
Book value per share (7) $16.16 $15.24 $16.16 $15.24
Average interest-earning assets to
average interest-bearing liabilities 124.31% 110.71% 125.27% 110.80%
Asset Quality Data:
Nonperforming assets as a percent of total assets (8) 0.25% 0.21% 0.25% 0.21%
Allowance for loan losses to non performing loans 220.02% 247.95% 220.02% 247.95%
Allowance for loan losses to loans outstanding 0.72% 0.83% 0.72% 0.83%
Year-to-date net charge-offs (000's) $134 $142 $263 $208
Annualized net charge-offs to average loans 0.11% 0.14% 0.11% 0.11%
(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 divided by number of shares outstanding.
(8) Non performing assets consist of nonperforming loans and repossessed
automobiles.
N/A - Not applicable.