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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 26, 1998
FIRST PLACE FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
New Mexico 0-25956 85-0317365
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(State or other jurisdiction of (Commission (I.R.S Employer
incorporation or organization) file number) Identification No.)
100 East Broadway, Farmington, New Mexico 87401
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Address of principal executive offices Zip Code
Registrant's telephone number, including area code: (505) 324-9500
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ITEM 5. OTHER EVENTS
News release dated October 26, 1998, announcing third quarter 1998
earnings and quarterly dividend.
Shareholder letter dated November 2, 1998, reporting third quarter
1998 earnings and quarterly dividend.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99.1 News release dated October 26, 1998.
99.2 Shareholder letter dated November 2, 1998.
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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 CORPORATION
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(Registrant)
Date: November 4, 1998 /s/ James D. Rose
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President and Chief Operating Officer
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FIRST PLACE
FINANCIAL
CORPORATION
NEWS RELEASE
DATE: October 26, 1998
CONTACT: James D. Rose, President
TELEPHONE: (505) 324-9542
FIRST PLACE FINANCIAL CORPORATION
REPORTS THIRD QUARTER 1998 NET INCOME
FARMINGTON, NEW MEXICO -- Richard I. Ledbetter, chairman of the board and
chief executive officer of First Place Financial Corporation (FPFC), today
reported net income for the first nine months of 1998 of $6.2 million,
compared to $6.8 million reported for the same period a year ago. Net income
for the third quarter of 1998 was $2.3 million compared to net income of $2.1
million recorded for the third quarter of 1997.
The year-to-date decrease of $598,000 in net income for the nine months ended
September 30, 1998 compared to the like period in 1997 was primarily due to
an increase in the provision for loan losses and increases in other operating
expenses. The provision for loan losses for the first nine months of 1998
was $1,555,000, an increase of $265,000 from the year ago period. This
increase was primarily due to concerns with certain portions of the loan
portfolio. The provision for loan losses for the third quarter of 1998 was
$420,000 a decrease of $135,000 from the $555,000 recorded in the third
quarter of 1997 and reflects improving trends in the loan portfolio. Other
expenses of $16.8 million for the nine months ended September 30, 1998 were
up 10 % from the like period a year ago. The other expense increases were
primarily in data processing expenses and supplies, which were mainly due to
technical enhancements. Salaries and benefits also increased primarily due
to normal salary increases and a higher level of full-time equivalent
employees added to support expansion, including pre-opening salaries for
Capital Bank, Albuquerque. These increases in other expenses were offset
somewhat by increases in net interest income and other income and a decrease
in the effective tax rate from 25% at September 30, 1997 to 21% at September
30, 1998.
At September 30, 1998 FPFC had $910 million in total assets, an increase of
$46 million over September 30, 1997 total assets of $864 million. Total
loans at September 30,1998 were $431 million, a decrease of $57 million from
the $488 million reported at September 30, 1997. A significant part of the
decrease in loans was attributable to borrowers obtaining alternative
long-term financing. In addition, the company experienced some early loan
payoffs due to corporate
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acquisitions. Total stockholders' equity at September 30,1998 increased $6
million during the last twelve months to $77 million.
The board of directors of FPFC has declared a quarterly dividend of $.37 per
share payable November 2, 1998 to shareholders of record as of September 16,
1998.
James D. Rose, president and chief operating officer of FPFC reported that
Capital Bank, a de novo state chartered bank in Albuquerque, New Mexico, was
opened on October 7, 1998.
FPFC, the largest bank holding company headquartered in New Mexico, owns
First National Bank of Farmington, Western Bank, Gallup, Capital Bank,
Albuquerque and Burns National Bank of Durango, Colorado. FPFC stock is
quoted on the NASDAQ bulletin board under the symbol FPLF.
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FIRST PLACE
FINANCIAL
CORPORATION
November 2, 1998
Dear Shareholder:
We are pleased to report that at their last meeting, the Board of
Directors declared a regular quarterly dividend of $.37 per share payable
November 2, 1998 to shareholders of record as of September 16, 1998.
We are also pleased to announce that Capital Bank in Albuquerque opened
for business on October 7, 1998. We regard the Company's entry into the
Albuquerque market as being of significant strategic importance, as the
Albuquerque metropolitan area economy is the largest and most robust economy
in New Mexico.
Capital Bank president Bob Goodman has assembled an absolutely
outstanding staff and there is no doubt that their customers will quickly
notice the difference. Capital Bank is located at 4700 Montgomery Boulevard
N.E. (just west of San Mateo) and we encourage you to drop by and tour the
facility. You are also invited to attend the grand opening reception the
evening of November 5 from 5:30 p.m. to 8:30 p.m.
Total assets at September 30, 1998 were $910 million, an increase of $46
million, or 5.3%, over September 30, 1997. In spite of the continued growth
in total assets, loans outstanding have decreased $57 million, or 11.7%, in
the last twelve months and this has negatively impacted the net interest
margin and, in turn, net income.
Net income for the third quarter was $2.3 million compared to $2.1
million for the third quarter last year. However, year-to-date net income for
the first nine months of 1998 is still $600,000 lower than the same period
for 1997.
On September 1, 1998, Richard I. Ledbetter assumed the position of
chairman of the board of First Place Financial Corporation, succeeding Robert
S. Culpepper. Mr. Culpepper remains chairman of the board of First National
Bank of Farmington. In a related move, James D. Rose succeeded Mr. Ledbetter
as president of First National Bank of Farmington.
We appreciate your continued support and the dedication and hard work of
our directors, officers, and employees.
/s/ Richard I. Ledbetter /s/ James D. Rose
Chairman of the Board and President and
Chief Executive Officer Chief Operating Officer
