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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 23, 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 July 23, 1999, announcing second quarter 1999
earnings and quarterly dividend.
Shareholder letter dated August 2, 1999, announcing second quarter 1999
earnings and quarterly dividend.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
99.1 News release dated July 23, 1999.
99.2 Shareholder letter dated August 2, 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: August 2, 1999 /s/ James D. Rose
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President and Chief Operating Officer
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FIRST PLACE
[LOGO] FINANCIAL
CORPORATION
NEWS RELEASE
Date: July 23, 1999
Contact: James D. Rose, President
Telephone: (505) 324-9542
FIRST PLACE FINANCIAL CORPORATION
REPORTS SECOND QUARTER 1999 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 of $2.4 million for the second quarter of 1999, an increase of
$138,000 compared to the $2.3 million reported for the second quarter of
1998. Basic earnings per share were $1.10 for the second quarter of 1999
compared to $1.05 for the second quarter of 1998. Year to date 1999 net
income was $5.4 million, an increase of $1.5 million, or 37.4%, compared to
the $3.9 million reported for the same six months of 1998. Basic earnings
per share were $2.50 for the six months of 1999 compared to $1.83 for the
same period in 1998.
Jim Rose, president and chief operating officer of FPFC, reported that the
year to date increase in net income from 1998 to 1999 was primarily due to
the decrease of $1,624,000 in the provision for loan losses. An $800,000
reverse provision for loan losses was recorded during the first quarter of
1999 at the lead bank, First National Bank of Farmington (FNBF). The reverse
provision was mainly due to a reduction in adversely classified commercial
and commercial real estate loans. FPFC's provision for loan losses for the
second quarter of 1999 was $120,000, a decrease of $450,000 from the same
period last year.
In addition to the reduction in the provision for loan loss expense, FPFC
recorded increases in net interest income and other income in 1999 compared
to the six month and second quarter periods a year ago. These positive
income factors were offset somewhat by increases in other operating expenses
and the effective tax rates for the second quarter and the first six months
of 1999 compared to the same periods in 1998.
FPFC ended the quarter with $875 million in total assets, a year to date
decrease of $61 million from June 30, 1998 total assets of $936 million and a
decrease of $27 million compared to the $902 million of total assets reported
at December 31, 1998. Total loans at June 30, 1999 were $433 million, a
decrease of 5.2% from the $457 million reported at June 30, 1998. Loans at
June 30, 1999 increased $3 million from the $430 million reported at December
31, 1998. Total stockholders' equity at June 30, 1999 was $77 million, an
increase of $2 million during the last twelve months.
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The board of directors of FPFC recently declared a quarterly dividend of $.37
per share payable August 2, 1999 to shareholders of record as of July 21,
1999.
FPFC, the largest bank holding company headquartered in New Mexico, owns
First National Bank of Farmington, Western Bank, Gallup, Burns National Bank
of Durango, Colorado and Capital Bank, Albuquerque. FPFC stock is quoted on
the NASDAQ bulletin board under the symbol FPLF.
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FIRST PLACE
[LOGO] FINANCIAL
CORPORATION
August 2, 1999
Dear Shareholder:
At their May 21, 1999 meeting, the Board of Directors declared a dividend
of $.37 per share to shareholders of record as of July 21, 1999 and payable
August 2, 1999.
During the first six months of 1999, the Company had net income of
$5,419,000, an increase of $1,474,000 compared to the first six months of
1998. Net income before taxes increased $2,158,000 during this period,
primarily as the result of a $1,624,000 decrease in the provision for loan
losses.
Net interest income increased $489,000. Noninterest income was up
$880,000 while noninterest expense was up $835,000.
Total assets at June 30, 1999 were $874,706,000, a decrease of
$60,879,000 compared to total assets at June 30, 1998 of $935,585,000. As
reported previously, the Company has experienced significant payoffs on loans
primarily as the result of customers refinancing their borrowings with
non-bank lenders and also due to certain customers selling their businesses.
Total interest-bearing funds at June 30, 1999 were $645,244,000 compared
to $715,929,000 a year earlier, a decrease of $70,685,000. This decrease was
primarily in federal funds purchased and Federal Home Loan Banks and other
notes payable. During this same period, noninterest-bearing deposits
increased $5,093,000.
Western Bank opened a branch in the new Gallup Wal-Mart superstore and
early results are very encouraging in terms of new accounts opened and
transaction volume. This is the Company's fourth in-store branch as we
continue to explore alternative delivery channels.
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
