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: April 22, 1999
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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
Third 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: April 22, 1999 By: /s/ Steven R. Lewis
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Steven R. Lewis,
President and CEO
For Immediate Release For Further Information:
Thursday, April 22, 1999 Steve Lewis, President and CEO
Troy Adair, Investor Relations
Phone (330)373-1221
Fax (330)392-8227
First Place Financial Corp. Announces Third Quarter Earnings
Warren, Ohio, April 22, 1999 First Place Financial Corp. (NASDAQ: FPFC), the
holding company for First Federal Savings and Loan Association of Warren (the
"Association"), announced net income for the three months ended March 31, 1999
of $2.6 million, or $.25 per share. Earnings for the comparable period in the
prior year were $1.3 million. Earnings per share data are not reported for the
prior period as the company did not complete its stock offering until December
31, 1998.
Net income for the nine-month period ended March 31, 1999 was ($0.5) million
compared to $3.8 million in the year ago period. The decline in net income is
primarily due to an $8.0 million contribution to the First Federal of Warren
Community Foundation. In addition, a charge of $495,000 was taken in fiscal
year 1999 to restructure fixed rate Federal Home Loan Bank borrowings. Again,
earnings per share figures are not presented for either nine-month period since
the stock offering was not completed until December 31, 1998.
Assets totaled $739.5 million at March 31, 1999, an increase of $130.1 million,
or 21%, from $609.4 million at June 30, 1998. This increase in assets was
primarily due to the proceeds received in connection with the conversion of the
Association from a federally chartered mutual association to a federally
chartered stock association on December 31, 1998. These proceeds were used to
fund an $81.6 million increase, or 23%, in loans receivable from $353.0 million
at June 30, 1998 to $434.6 million at March 31, 1999.
Deposits declined from $435.5 million at June 30, 1998 to $415.1 million at
March 31, 1999. This decline was primarily due to deposits being used to
purchase stock in the conversion. Borrowings, consisting of repurchase
agreements and Federal Home Loan Bank advances, increased $48.4 million to
$153.6 million at March 31, 1999 from $105.2 million at June 30, 1998. Total
shareholders' equity totaled $159.2 million at March 31, 1999 compared to $59.4
million at June 30, 1998. This increase was due to the proceeds received in the
mutual to stock conversion.
On March 1, 1999, the Association commenced operation of a mortgage banking and
loan production office in Akron with satellite offices in Newark, Mt. Vernon and
Medina (suburbs of Columbus and Cleveland). These offices originate fixed rate
loans, both 15 and 30 years, which are in turn sold to various secondary market
investors including the Federal Home Loan Mortgage Corporation (FHLMC). A
portion of the originations, 10-15%, will be held in portfolio but will qualify
for sale to the secondary market in the event that the Association wishes to
obtain additional liquidity. The opening of these facilities provides a low
cost alternative to generate additional fee income while also providing
geographic diversification to existing markets.
The Association is a wholly owned subsidiary of First Place Financial Corp. In
addition to the newly formed loan offices noted above, the Association operates
eleven full-service banking facilities and two loan production offices serving
Trumbull and Mahoning Counties in Northeastern Ohio. Additional information may
be found on the Company's web site: www.firstfederalofwarren.com.
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FIRST PLACE FINANCIAL CORP.
Financial Statements & Exhibits
(Unaudited)
March 31, June 30, %
Selected Consolidated Financial Condition Data: 1999 1998 Change
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($ in thousands)
Total assets $739,457 $609,398 21%
Loans receivable, net 434,571 353,012 23%
Loans available for sale 644 0 N/M
Securities available for sale 267,596 211,185 27%
Securities held to maturity (1) 0 28,295 N/M
Deposits 415,088 435,462 -5%
Federal Home Loan Bank Advances 109,192 44,820 144%
Repurchase Agreements 44,430 60,430 -26%
Total shareholders' equity 159,184 59,357 168%
Three Months Ended Nine Months Ended
March 31, % March 31, %
Selected Consolidated Operations Data: 1999 1998 Change 1999 1998 Change
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($ in thousands except per share amounts)
Total interest income $12,455 $10,792 15% $35,522 $31,484 13%
Total interest expense 5,990 6,515 -8% 19,611 18,967 3%
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Net interest income 6,465 4,277 51% 15,911 12,517 27%
Provision for loan losses 166 151 10% 824 476 73%
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Net interest income after provision 6,299 4,126 53% 15,087 12,041 25%
Non interest income 468 388 21% 1,418 1,199 18%
Gain (loss) on sale of securities (8) (150) -95% (48) (44) 9%
Contribution to Community Foundation 0 0 N/M 8,026 0 N/M
Non interest expense 3,076 2,356 31% 9,401 7,543 25%
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Income before federal income tax 3,683 2,008 83% (970) 5,653 -117%
Federal income tax expense 1,105 691 60% (476) 1,850 -126%
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Net income $2,578 $1,317 96% ($494) $3,803 -113%
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Basic earnings per share $0.25 N/A N/M N/A
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(1) Effective October 1, 1998, the company adopted Statement of Financial
Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments
and Hedging Activities." Management reclassified all held to maturity
securities to available for sale as allowed by SFAS No. 133.
At or for the Three At or for the Nine
Months Ended Months Ended
March 31, March 31,
Selected Financial Ratios and Other Data: (1) 1999 1998 1999 1998
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Performance Ratios:
Return on average assets (2) 1.43% 0.88% -0.10% 0.88%
Return on average equity (3) 6.48% 8.90% -0.70% 8.83%
Interest rate spread (4) 2.61% 2.41% 2.57% 2.50%
Net interest margin (5) 3.63% 2.88% 3.24% 2.97%
Efficiency ratio (6) 44.42% 52.18% 100.84% 55.17%
Net interest income to operating expenses 210.18% 181.54% 91.30% 165.94%
Capital Ratios:
Equity to total assets at end of period 21.53% 9.83% 21.53% 9.83%
Book value per share $15.37 N/A $15.37 N/A
Average interest-earning assets to
average interest-bearing liabilities 129.96% 110.60% 116.88% 110.59%
Asset Quality Data and Ratios:
Nonperforming assets as a percent of total assets (7) 0.19% 0.35% 0.19% 0.35%
Allowance for loan losses to non performing assets 253.78% 89.41% 253.78% 89.41%
Allowance for loan losses to gross loans outstanding 0.81% 0.56% 0.81% 0.56%
(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) Non performing assets consist of nonperforming loans and repossessed
automobiles.