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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)
January 28, 1999
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 January 28, 1999, announcing 1998 earnings and
quarterly dividend and special dividend.
Shareholder letter dated February 1, 1999, reporting 1998 earnings
and quarterly dividend and special dividend.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99.1 News release dated January 28, 1999.
99.2 Shareholder letter dated February 1, 1999.
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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: February 3, 1999 /s/ James D. Rose
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President and Chief Operating Officer
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NEWS RELEASE
DATE: January 28, 1999
CONTACT: James D. Rose, President
TELEPHONE: (505) 324-9542
FIRST PLACE FINANCIAL CORPORATION
REPORTS 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 1998 of $8.2 million, compared to $9.1 million
reported for the same period a year ago.
The year-to-date decrease of $933,000 in net income for the year ended
December 31, 1998 compared to the year-to-date net income for 1997 was
primarily due to increases in operating expenses. Other expenses for 1998
were up 9 % from the like period a year ago. This increase was primarily in
data processing expenses and was mainly due to technical enhancements.
Salaries and benefits also increased due to normal salary increases and a
higher level of full-time equivalent employees. Employees were added to
support expansion, and included staff hired for Capital Bank, a de novo bank
located in Albuquerque, which opened in October, 1998. The increases in
other expenses were offset somewhat by an increase in net interest income, a
decrease in the provision for loan losses and a decrease in the effective tax
rate from 24% in 1997 to 21% in 1998.
At December 31, 1998 FPFC had $902 million in total assets, an increase of $4
million over December 31, 1997 total assets of $898 million. Total loans
at December 31,1998 were $430 million, a decrease of $62 million from the
$492 million reported at December 31, 1997. A significant part of the
decrease in loans was attributable to borrowers obtaining alternative
long-term financing. In addition, the company had some early loan payoffs
due to corporate acquisitions.
Total stockholders' equity at December 31,1998 increased $5 million during
1998 to $77 million.
The board of directors of FPFC declared a quarterly dividend of $.37 per
share and a special dividend of $.37 per share payable February 1, 1999 to
shareholders of record as of December 16, 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
[LOGO] FINANCIAL
CORPORATION
February 1, 1999
Dear Shareholder:
We are pleased to announce that at their November 30, 1998 meeting, the
Board of Directors declared a regular quarterly dividend of $.37 per share
and a special dividend of $.37 per share. Both dividends were declared to
shareholders of record as of December 16, 1998 and are payable February 1,
1999. Total dividends declared per share for the year were $1.85 compared to
$1.79 last year, an increase of $.06, or 3.35 percent.
Although total assets at December 31, 1998 were up $4,000,000, or .5
percent, over year-end 1997, total loans were down by $62,000,000, or 12.7
percent. The decrease in total loans was primarily the result of commercial
real estate borrowers obtaining alternative long-term financing and from
early payoffs due to our customers' businesses being acquired by other
entities.
Net income for 1998 was $8,161,000, a decrease of $933,000, or 10.3
percent, from 1997. The primary cause of this decrease was a $1,923,000
increase in other expenses. Salaries and employee benefits were up $808,000
and other operating expenses were $1,178,000 higher than last year.
Total stockholders' equity at December 31, 1998 was $77,046,000 compared
to $71,831,000 at year-end 1997. Aggregate cash dividends declared for 1998
were $4,004,000 compared to $3,843,000 for 1997.
While the earnings performance for 1998 was disappointing, there were
some very positive accomplishments during 1998, which should bode well for
our future. With the opening of Capital Bank, we have entered the largest and
most robust market in New Mexico. Overall asset quality has improved and
continues to improve, and recent steps to decrease the cost of funds are
paying off.
Thank you for your continued support.
/s/ Richard I. Ledbetter /s/ James D. Rose
Richard I. Ledbetter James D. Rose
Chairman of the Board and President and
Chief Executive Officer Chief Operating Officer
