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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 28, 1999
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FIRST PLACE FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
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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 area code (330) 373-1221
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N/A
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(Former name or former address, if changed since last report)
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Item 5 Other Events
Fourth 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: July 28, 1999 By: /s/ Steven R. Lewis
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Steven R. Lewis, President and CEO
For Immediate Release For Further Information:
Wednesday, July 28, 1999 Steven Lewis, President and CEO
Troy Adair, Investor Relations
Phone (330) 373-1221
Fax (330) 392-8227
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First Place Financial Corp. Reports Fourth Quarter Earnings
and Share Repurchase Program
Warren, Ohio, July 28, 1999 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 June 30, 1999 of
$2.5 million, or $.25 per share. Earnings for the comparable period in the
prior year were $269,000. Prior year earnings were impacted by a $1.1 million
addition to the company's allowance for loan losses in June of 1998. 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 fiscal year ended June 30, 1999 was $2.1 million compared to
$4.1 million for the year ended June 30, 1998. Current year earnings include a
one-time charge of $8.0 million for the contribution to the First Federal of
Warren Community Foundation and a charge of $495,000 to restructure fixed rate
Federal Home Loan Bank borrowings. Earnings per share are not presented for
either period since the stock offering was not completed until December 31,
1998.
The company also announced that its Board of Directors has adopted a stock
repurchase program and intends to repurchase 5% of its outstanding shares. The
shares will be purchased at prevailing market prices from time to time over the
next six months with the repurchase program commencing on or after August 2,
1999.
First Place President and CEO, Steven R. Lewis, said, "The Board of Directors
believes that at current market prices, the repurchase program represents an
excellent opportunity to enhance shareholder value."
Assets totaled $747.3 million at June 30, 1999, an increase of $137.9 million,
or 23%, 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. Net loans receivable
increased $100.8 million and totaled $453.8 million at June 30, 1999. This
increase was primarily due to growth in 1- 4 family mortgage lending with
approximately 70% of the growth concentrated in 15 and 20 year fixed rate
production.
Deposits declined from $435.5 million at June 30, 1998 to $429.2 million at June
30, 1999. This decline was primarily due to deposits being used to purchase the
common stock of the company in the conversion. Total shareholders' equity was
$158.1 million at June 30, 1999 compared to $59.4 million at June 30, 1998.
This increase was due to the proceeds received in the mutual to stock
conversion.
Additional information may be found on the Company's web site:
www.firstfederalofwarren.com.
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FIRST PLACE FINANCIAL CORP.
Financial Statements & Exhibits
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June 30, June 30, %
Selected Consolidated Financial Condition Data: 1999 1998 Change
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($ in thousands)
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Total assets $747,332 $609,398 23%
Loans receivable, net 453,791 353,012 29%
Loans available for sale 945 0 N/M
Allowance for loan losses 3,623 3,027 20%
Non performing assets 1,782 2,143 -17%
Securities available for sale 249,159 211,185 18%
Securities held to maturity (1) 0 28,295 N/M
Deposits 429,225 435,462 -1%
Federal Home Loan Bank Advances 94,811 44,820 112%
Repurchase Agreements 54,430 60,430 -10%
Total shareholders' equity 158,054 59,357 166%
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Three Months Ended Twelve Months Ended
June 30, % June 30, %
Selected Consolidated Financial Operations Data: 1999 1998 Change 1999 1998 Change
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($ in thousands except per share amounts)
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Total interest income $ 12,605 $ 10,998 15% $48,126 $42,482 13%
Total interest expense 6,071 6,545 -7% 25,682 25,512 1%
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Net interest income 6,534 4,453 47% 22,444 16,970 32%
Provision for loan losses 238 1,288 -82% 1,062 1,779 -40%
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Net interest income after provision 6,296 3,165 99% 21,382 15,191 41%
Non interest income 612 403 52% 2,029 1,616 26%
Gain (loss) on sale of securities 0 179 -100% (48) 135 -136%
Contribution to Community Foundation 0 0 N/M 8,026 0 N/M
Non interest expense 3,267 2,829 15% 12,666 10,372 22%
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Income before federal income tax 3,641 918 297% 2,671 6,570 -59%
Federal income tax expense 1,092 649 68% 616 2,498 -75%
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Net income $ 2,549 $ 269 848% $ 2,055 $ 4,072 -50%
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Basic earnings per share $0.25 N/A N/M N/A
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Diluted 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.
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At or for the Three At or for the Twelve
Months Ended Months Ended
June 30, June 30,
Selected Financial Ratios and Other Data: (1) 1999 1998 1999 1998
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Performance Ratios:
Return on average assets (2) 1.41% 0.18% 0.30% 0.70%
Return on average equity (3) 6.33% 1.78% 1.86% 7.00%
Interest rate spread (4) 2.72% 2.48% 2.67% 2.55%
Net interest margin (5) 3.72% 2.99% 3.42% 3.00%
Efficiency ratio (6) 45.72% 56.19% 84.72% 55.40%
Net interest income to operating expenses 200.00% 157.41% 108.47% 163.60%
Capital Ratios:
Equity to total assets at end of period 21.15% 9.74% 21.15% 9.74%
Book value per share (7) $ 15.24 N/A $ 15.24 N/A
Average interest-earning assets to
average interest-bearing liabilities 127.53% 110.58% 119.07% 110.46%
Asset Quality Data and Ratios:
Nonperforming assets as a percent of total assets (8) 0.24% 0.35% 0.24% 0.35%
Allowance for loan losses to non performing assets 203.35% 141.25% 203.35% 141.25%
Allowance for loan losses to loans outstanding 0.79% 0.85% 0.79% 0.85%
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(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 interestincome.
(7) Total shareholders' equity divided by number of shares outstanding.
(8) Non performing assets consist of nonperforming loans and repossessed
automobiles.
