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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)
July 22, 1998
FIRST PLACE FINANCIAL CORPORATION
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(Exact name of registrant as specified in its charter)
New Mexico 0-25956 85-0317365
(State or other jurisdiction of (Commission (I.R.S Employer
incorporation or organization) file number) Identification No.)
100 East Broadway, Farmington, New Mexico 87401
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 July 22, 1998, announcing second quarter 1998
earnings and quarterly dividend.
Shareholder letter dated August 1, 1998, reporting second quarter
1998 earnings and quarterly dividend.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
News release from First Place Financial Corporation dated July 22,
1998.
Shareholder letter from First Place Financial Corporation dated
August 1, 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: August 3, 1998 /s/ James D. Rose
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President and Chief Operating Officer
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[LETTERHEAD]
NEWS RELEASE
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DATE: July 22, 1998
CONTACT: Richard I. Ledbetter, Chief Executive Officer
(505) 324-9525
James D. Rose, President
(505) 324-9542
FIRST PLACE FINANCIAL CORPORATION
REPORTS SECOND QUARTER 1998 NET INCOME
FARMINGTON, NEW MEXICO -- Richard I. Ledbetter, chief executive officer of
First Place Financial Corporation (FPFC), today reported net income for the
first six months of 1998 of $3.9 million, compared to $4.7 million reported
for the first half of 1997. Net income for the second quarter of 1998 was
$2.3 million compared to net income of $2.4 million recorded for the same
period a year ago.
The year-to-date decrease of $757,000 in net income for the six months
ended June 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
expenses. The provision for loan losses for the first half of 1998 was
$1,135,000, an increase of $400,000 from the year earlier period. This
increase was primarily due to concerns with certain portions of the loan
portfolio. Other expenses of $11.4 million for the six months ended June 30,
1998 were up 14% 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. These increases
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in other expenses were offset somewhat by increases in net interest income
and other income and a decrease in the effective tax rate from 26% at June
30, 1997 to 22% at June 30, 1998.
At June 30, 1998, FPFC had $936 million in total assets, an increase of
$93 million over June 30, 1997's total assets of $843 million. Total loans at
June 30, 1998 were $457 million, a decrease of $11 million from the $468
million reported at June 30, 1997. Total stockholders' equity at June 30,
1998 increased $6 million during the last twelve months to $74 million.
The Board of Directors of FPFC recently declared a quarterly dividend of
$.37 per share payable August 3, 1998 to shareholders of record as of June
17, 1998.
FPFC, the largest bank holding company headquartered in New Mexico, owns
First National Bank of Farmington, Western Bank, Gallup, and Burns National
Bank of Durango, Colorado. Capital Bank, a de novo bank scheduled to open in
Albuquerque, New Mexico in September, will be a wholly-owned subsidiary of
FPFC. FPFC stock is quoted on the NASDAQ bulletin board under the symbol FPLF.
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[LETTERHEAD]
August 1, 1998
Dear Shareholder:
At their June 17, 1998 meeting, the Board of Directors declared a
regular quarterly dividend of $.37 per share to shareholders of record as of
that date and payable August 3, 1998.
Net income for the second quarter was $2.3 million. Although total
assets continue to increase ($38 million since year-end), loans have
decreased $35 million since year end. This shift in the composition of
earning assets puts further pressure on the net interest margin. On the
positive side, asset quality continues to improve.
Renovation of the Capital Bank building in Albuquerque is well under way
and should be completed by early September. There are currently seven people
on staff operating in temporary quarters. The tentative opening date is
September 14, 1998.
We are pleased to announce that at the May 27, 1998 board meeting, Ike
Kalangis was elected to the board. Ike was formerly Chairman, CEO, and
President of Boatmen's Sunwest, Inc. We look forward to benefiting from
Ike's expertise, experience, and counsel.
As the result of the sale of a block of 40,000 shares, almost 44,000
shares of First Place stock traded during the second quarter. This was more
than double the number of shares traded during any previous 12-month period.
Prices for these shares ranged from $60 to $69. First Place stock is quoted
on the NASDAQ Bulletin Board under the symbol "FPLF".
We appreciate your continued support and your business. We also
encourage you to recommend us to your friends and associates.
/s/ Robert S. Culpepper /s/ Richard I. Ledbetter /s/ James D. Rose
Robert S. Culpepper Richard I. Ledbetter James D. Rose
Chairman of the Board Chief Executive Officer President
