* First Place continued to strengthen its allowance for loan losses increasing it by $11.1 million or 28.0% during the current quarter to $50.6 million or 2.07% of loans, up from 1.60% of loans at June 30, 2009; * Net loss for the first quarter of fiscal 2010 was $5.9 million, primarily driven by a higher provision for loan losses, partially offset by increases in net interest income and mortgage banking gains; * Capital remains strong as bank-level total risk-based capital reached 12.67% at September 30, 2009 up from 12.37% at June 30, 2009 and well above the 10.00% required to be well capitalized for regulatory purposes; the Board of Directors opted to conserve capital by eliminating the dividend on common stock; * An increase in market share and continued favorable long-term interest rates resulted in an increase in mortgage banking activity and gains of $3.9 million, an increase of $2.1 million from the same quarter in the prior year; * First Place continued to manage its costs of deposits resulting in a 32 basis point increase in net interest margin to 3.38% from 3.06% in the June 2009 quarter.
Summary
WARREN, Ohio, Oct. 27, 2009 (GLOBE NEWSWIRE) -- First Place Financial Corp. (Nasdaq:FPFC) reported a net loss of $5.9 million for the quarter ended September 30, 2009 compared with a net loss of $6.2 million for the quarter ended September 30, 2008. The net loss for the first quarter of fiscal 2010 was primarily due to increases of $15.1 million in the provision for loan losses and $2.9 million in noninterest expense, partially offset by increases of $2.6 million in net interest income and $13.3 million in noninterest income and a decrease of $2.4 million in income taxes. The increase in noninterest expense was primarily due to increases of $1.3 million in FDIC premiums and $1.1 million in loan expenses. The increase in noninterest income was primarily due to the prior period charge of $9.3 million for the decline in the fair value of securities, including Fannie Mae preferred stock, which the Company has since sold, and a mortgage-backed securities mutual fund, along with current period increases of $2.1 million in mortgage banking gains and $1.0 million in service charges on deposit accounts. The loss per common share for the current quarter was $0.42 compared with a loss per common share of $0.37 for the same quarter in the prior year. Return on average assets and return on average equity for the current quarter were -0.73% and -8.38%, respectively, compared with -0.74% and -7.74%, respectively, for the same quarter in the prior year.
The net loss of $5.9 million for the quarter ended September 30, 2009 represented a decrease of $6.8 million from the net loss of $12.7 million for the preceding quarter ended June 30, 2009. The reduction in net loss was primarily due to a decrease of $6.7 million in noninterest expense along with increases of $3.3 million in noninterest income and $1.9 million in net interest income, partially offset by increases of $2.9 million in the provision for loan losses and $2.2 million in income taxes. The decrease in noninterest expense was primarily due to decreases in real estate owned expense, FDIC premiums and salaries and employee benefits. The FDIC premiums in the previous quarter included a special assessment of $1.6 million. The increase in noninterest income was primarily due to a reduction in impairment of securities and an increase in loan servicing income. Loss per common share for the current quarter was $0.42 compared with a loss per common share of $0.83 for the preceding quarter ended June 30, 2009. Return on average assets and return on average equity for the current quarter were -0.73% and -8.38%, respectively, compared with -1.52% and -17.61%, respectively, for the preceding quarter ended June 30, 2009.
Core earnings are a supplementary financial measure computed using methods other than Generally Accepted Accounting Principles (GAAP) that exclude certain unusual or nonrecurring items of revenue or expense. Core earnings excludes merger, integration and restructuring costs which were $0.3 million and $0.1 million for the quarters ended September 30, 2009 and 2008, respectively. Core loss for the quarter ended September 30, 2009 was $5.7 million compared with a core loss of $6.1 million for the quarter ended September 30, 2008. For additional information on core earnings, see the section entitled Explanation of Certain Non-GAAP Measures and the Reconciliation of Net Income to Core Earnings under the Consolidated Financial Highlights.
Commenting on these results, Steven R. Lewis, President and CEO, stated, "The current recession continues to impact our borrowers and therefore our credit costs. Our response has been consistent and focused. This quarter we recorded a provision for loan losses approximately twice the amount of our charge-offs which increased our allowance for loan losses to 2.07% of loans, up from 1.19% a year earlier. This position of strength leaves us well prepared to deal with future credit losses. At the same time, core operations of First Place Bank continue to improve; mortgage banking remains strong, fee income on deposit accounts has been growing and net interest margin has improved for the third consecutive quarter. As the recession draws to a close and credit issues improve, First Place is well positioned to be a strong performer."
Revenue
Net interest income for the first quarter of fiscal 2010 was $25.6 million, an increase of $2.6 million or 11.3% compared with $23.0 million in the first quarter of fiscal 2009. This increase was the result of an increase of 31 basis points in the net interest margin to 3.38% for the current quarter compared with 3.07% for the same quarter in the prior year. Net interest income of $25.6 million for the quarter ended September 30, 2009 represents an increase of $1.9 million from net interest income of $23.7 million for the quarter ended June 30, 2009 while net interest margin of 3.38% for the current quarter increased from 3.06% for the quarter ended June 30, 2009. The primary reason for the increase in net interest margin from the June 2009 quarter was that interest rates paid on interest-bearing liabilities continued to reprice lower, catching up with the already lower yielding assets. During the quarter ended June 30, 2009, the Company carried a higher level of short-term liquid assets due to the uncertainties in the financial markets. Since June 30, 2009, the Company has utilized a portion of these short-term liquid assets to retire maturing liabilities with high interest rates, further contributing to the improved margin.
Noninterest income for the first quarter of fiscal 2010 was $11.7 million, an increase of $13.3 million compared with a loss of $1.6 million in the first quarter of fiscal 2009. The increase in noninterest income was primarily due to the prior year charge of $9.3 million for the decline in the fair value of Fannie Mae preferred stock, which the Company has since sold, and a mortgage-backed securities mutual fund, along with current period increases of $2.1 million in mortgage banking gains and $1.0 million in service charges on deposit accounts.
The volume of loan sales in the current quarter was $507 million compared to $255 million for the same quarter in the prior year. The increase in mortgage banking gains was primarily due to the higher volume of loans sold supplemented by an increase in the margin on mortgage banking sales. The $1.0 million increase in service charges on deposit accounts was primarily due to overdraft fee income.
Mr. Lewis commented, "We are seeing substantial margin improvement, which we expect to continue into the second fiscal quarter of 2010 as we more fully realize the benefit of the rate reductions on liabilities as well as wider loan spreads. During the quarter we have liquidated high cost single service certificates of deposit reducing interest costs and improving our mix of deposits. Our mortgage banking personnel continue to generate substantial volumes in this historically low interest rate environment. This is a win for us and for our customers who were able to purchase new homes or reduce the monthly payments on their current homes."
Noninterest Expense
Noninterest expense for the first quarter of fiscal year 2010 was $24.3 million, an increase of $2.9 million or 13.9% compared with $21.4 million in the first quarter of fiscal year 2009. The increase in noninterest expense was primarily due to increases of $1.3 million in FDIC premiums and $1.1 million in loan expenses. The increase in FDIC premiums resulted from increases in premium rates and the exhaustion of credits carried over from prior years. The increase in loan expenses resulted from the higher volume of loan originations and expenses related to nonperforming loans. Salaries and employee benefits have decreased $0.6 million in the current quarter compared with the same quarter a year ago. Some savings have been achieved during the past six months by reorganizing into a line of business structure from a regional structure and consolidating back office operations. A significant portion of this savings has been reinvested by adding or reassigning personnel to credit functions to stay ahead of potential increases in credit problems. Noninterest expense to average assets increased to 2.99% for the quarter ended September 30, 2009 from 2.56% for the same quarter in the prior year. FDIC premiums to average assets were 0.18% for the quarter ended September 30, 2009 compared with 0.01% for the same quarter in the prior year.
Noninterest expense for the first quarter of fiscal 2010 decreased $6.7 million from $31.0 million in the preceding quarter ended June 30, 2009. The decrease was primarily due to decreases in real estate owned expense, FDIC premiums and salaries and employee benefits. Noninterest expense to average assets decreased to 2.99% in the current quarter compared with 3.72% in the preceding quarter.
Core noninterest expense excludes merger, integration and restructuring costs which were minimal in each of the quarters discussed, and therefore, provide no significant changes to the analyses.
Asset Quality
Nonperforming assets, which are comprised of nonperforming loans and real estate owned, were $159.9 million at September 30, 2009, or 4.93% of total assets, up $19.9 million from $140.0 million, or 4.11% of total assets at June 30, 2009. Nonperforming loans were $126.7 million at September 30, 2009, or 5.17% of total loans, up $23.5 million from $103.2 million, or 4.18% of total loans at June 30, 2009. Real estate owned was $33.1 million at September 30, 2009, down $3.7 million from $36.8 million at June 30, 2009. First Place works with borrowers to avoid foreclosure if at all possible. Furthermore, if it becomes inevitable that a borrower will not be able to retain ownership of their property, First Place often seeks a deed in lieu of foreclosure in order to gain control of the property earlier in the recovery process. This strategy of pursuing deeds in lieu of foreclosure more aggressively should result in a significant reduction in the holding period for nonperforming assets and ultimately reduce economic losses. Single family residential properties represented $17.2 million of the $33.1 million balance of real estate owned at September 30, 2009.
Net charge-offs were $11.4 million in the current quarter, which was a decrease of $4.4 million from net charge-offs of $15.8 million in the quarter ended June 30, 2009. The current quarter net charge-offs consisted of $7.0 million in commercial loans, $3.1 million in mortgage and construction loans and $1.3 million in consumer loans. Management performs an ongoing assessment of the overall credit risk within the loan portfolio. This assessment provides an analysis of the estimated probable credit losses that could be incurred in the loan portfolio. Based on this analysis, a provision for loan losses of $22.5 million was recorded for the quarter ended September 30, 2009. That provision represents a $15.1 million increase over the provision of $7.4 million recorded in the quarter ended September 30, 2008 and a $2.9 million increase from the provision of $19.6 million recorded in the quarter ended June 30, 2009. The allowance for loan losses increased to $50.6 million at September 30, 2009, from $39.6 million at June 30, 2009 and $31.4 million at September 30, 2008. The ratio of the allowance for loan losses to total loans was 2.07% at September 30, 2009, compared with 1.60% at June 30, 2009 and 1.19% at September 30, 2008. The allowance for loan losses to nonperforming loans was 39.96% at September 30, 2009, up from 38.34% at June 30, 2009. Of the total nonperforming loans at September 30, 2009, 85% were secured by real estate. Real estate loans are generally well secured and if these loans do default, the majority of the loan balance is recovered by liquidating the real estate.
Mr. Lewis commented, "From the beginning of this current credit cycle, we have been aggressively dealing with our most problematic assets, including heavier scrutiny of our more significant commercial relationships. This loan level visibility has allowed us to react quickly and minimize losses. While we continue to believe that our commercial portfolio will remain under pressure, we remain confident that the risks in our loan portfolios are manageable. With both the national and local unemployment beginning to level off, it is our hope that this small indication of improvement translates into reduced credit quality concerns in the near future. In the meantime, we will continue to seek opportunities to accelerate the resolution of problem credits and maintain a strong allowance for loan losses which will position the Company for its return to profitability."
Balance Sheet Activity
Assets were $3.245 billion at September 30, 2009, compared with $3.404 billion at June 30, 2009, a decrease of $159 million or 4.7%. The decrease in assets was primarily due to decreases of $91 million in loans held for sale, $31 million in cash and due from banks and $19 million in portfolio loans. Total portfolio loans were $2.450 billion at September 30, 2009. During the current quarter, consumer loans decreased $12 million or 3.1%, to $361 million, mortgage and construction loans decreased $6 million to $845 million and commercial loans decreased $1 million to $1.243 billion. Commercial loans now account for 50.8% of the loan portfolio, up from 50.4% at June 30, 2009. Loans held for sale decreased to $286 million at September 30, 2009, primarily due to the sale of the prior quarter's higher volume of refinanced loans and a decrease in the volume of loans originated during the current quarter.
Deposits totaled $2.331 billion at September 30, 2009, a decrease of $105 million since June 30, 2009. The decrease in deposits was primarily due to a decrease of $60 million in deposits from our retail branch network and a net decrease of $45 million in brokered certificates of deposit and public funds of the state of Ohio. The significant reduction in certificates of deposit has improved the mix of deposits as certificates of deposit make up 50.3% of total deposits at September 30, 2009 down from 54.7%. Total borrowings decreased $35 million to $623 million at September 30, 2009, compared with $658 million at June 30, 2009.
At September 30, 2009, total equity was $278 million, down $3 million from $281 million at June 30, 2009. The decrease was primarily due to the net loss of $6 million and $1 million in preferred stock dividends, partially offset by a $4 million increase in unrealized net gains on the securities portfolio. Total equity to total assets was 8.57% at September 30, 2009, up from 8.27% at June 30, 2009. Tangible equity to tangible assets was 8.27% at September 30, 2009, up from 7.96% at June 30, 2009. Bank-level total risk-based capital reached 12.67% at September 30, 2009 up from 12.37% at June 30, 2009 and well above the 10.00% required to be well capitalized for regulatory purposes. First Place Bank currently exceeds the well capitalized requirements by $63 million. During the quarter ended March 31, 2009, the Company received $73 million in the U.S. Treasury's Capital Purchase Program funds to strengthen total equity and invested $31 million of the funds directly into First Place Bank. First Place Bank was well capitalized under regulatory capital standards prior to the receipt of the U.S. Treasury's Capital Purchase Program funds and has continued to be well capitalized since then through September 30, 2009.
Mr. Lewis noted, "With the recent and dramatic disruption in the capital markets and the related tightening of credit nationwide, we have carefully monitored and maintained appropriate levels of both liquidity and capital. In this environment, it is imperative that we strike a careful balance between managing risk effectively and doing our part to help the communities we serve regain their financial viability. These times are certainly challenging, but I remain confident in the ability of First Place to come out of this cycle better positioned to compete and perform."
Board Actions
At its regular meeting held on October 20, 2009, the Board of Directors decided to not declare a dividend. Mr. Lewis stated, "We understand the importance of our dividend to our common shareholders, and we did not take this decision lightly. The Board of Directors and management believe this action is prudent and proactive given the near-term challenges in today's economic environment. This decision was based on our current level of earnings, our perception of the need for capital to weather the economic storm and our desire to build capital to retire our preferred stock as soon as possible. Our capital ratios remain strong and we will work to make sure they remain strong."
Conference Call
Steven R. Lewis, Chief Executive Officer of First Place Financial Corp., and David W. Gifford, Chief Financial Officer, along with members of the Company's executive team, will provide an overview of first quarter fiscal 2010 performance and business highlights in a conference call and simultaneous webcast to be held at 10 a.m. eastern time, Wednesday, October 28, 2009. The conference call can be accessed by dialing 877-407-0783 or 201-689-8564. The webcast can be accessed live at the Company's website, www.firstplacebank.com, along with the release and supporting financial information. The event will be archived on the First Place website for one month. In addition, the recorded version of the conference call can be accessed by phone from 12 p.m. eastern time, October 28, 2009 through midnight November 11, 2009 by dialing 877-660-6853 Account #286, ID #334401.
About First Place Financial Corp.
First Place Financial Corp. is a $3.2 billion financial services holding company based in Warren, Ohio. First Place Financial Corp. operates 44 retail locations, 2 business financial service centers and 18 loan production offices through its principal subsidiary, First Place Bank. Additional affiliates of First Place Financial Corp. include First Place Holdings, Inc., the holding company for the Company's nonbank affiliates including First Place Insurance Agency, Ltd., Coldwell Banker First Place Real Estate, Ltd., Title Works Agency, LLC and APB Financial Group, Ltd. Information about First Place Financial Corp. may be found on the Company's web site: www.firstplacebank.com.
Explanation of Certain Non-GAAP Measures
This press release contains certain financial information determined by methods other than in accordance with GAAP. Specifically, we have provided financial measures that are based on core earnings rather than net income. Ratios and other financial measures with the word "core" in their title were computed using core earnings rather than net income. Core earnings excludes merger, integration and restructuring expense; extraordinary income or expense; income or expense from discontinued operations; and income, expense, gains and losses that are not reflective of ongoing operations or that we do not expect to reoccur. Similarly, core noninterest expense or core noninterest income exclude the pre-tax impact of those same items that impact noninterest income or noninterest expense. We believe that this information is useful to both investors and to management and can aid them in understanding the Company's current performance, performance trends and financial condition. While core earnings can be useful in evaluating current performance and projecting current trends into the future, we do not believe that core earnings are a substitute for GAAP net income. We encourage investors and others to use core earnings as a supplemental tool for analysis and not as a substitute for GAAP net income. Our non-GAAP measures may not be comparable to the non-GAAP measures of other companies. In addition, future results of operations may include nonrecurring items that would not be included in core earnings. Reconciliation from GAAP net income to the non-GAAP measure of core earnings is shown in the consolidated financial highlights on page nine.
Forward-Looking Statements
When used in this press release, or future press releases or other public or shareholder communications, in filings by the Company with the Securities and Exchange Commission or in oral statements made with the approval of an authorized executive officer, the words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "believe," "should," "may," "will," "plan," or variations of such terms or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Company's actual results to be materially different from those indicated. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the market areas the Company conducts business, which could materially impact credit quality trends, changes in laws, regulations or policies of regulatory agencies, fluctuations in interest rates, demand for loans in the market areas the Company conducts business, and competition, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
FIRST PLACE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended
September 30,
(Dollars in thousands, ------------------------ Percent
except share data) 2009 2008 Change
---------------------------------------------------------------------
Interest income $ 40,902 $ 44,460 (8.0)%
Interest expense 15,344 21,505 (28.6)
------------------------
Net interest income 25,558 22,955 11.3
Provision for loan losses 22,500 7,351 206.1
------------------------
Net interest income after provision
for loan losses 3,058 15,604 (80.4)
Noninterest income
Service charges on deposit accounts 3,149 2,142 47.0
Net gains on sale of securities - 319 (100.0)
Change in fair value of securities 400 (9,320) N/M
Mortgage banking gains 3,908 1,775 120.2
Gain on sale of loan servicing
rights 689 -- N/M
Loan servicing income (loss) 152 (44) N/M
Other income - bank 1,623 1,689 (3.9)
Insurance commission income 1,289 933 38.2
Other income - nonbank 532 908 (41.4)
------------------------
Total noninterest income 11,742 (1,598) N/M
Noninterest expense
Salaries and employee benefits 9,970 10,627 (6.2)
Occupancy and equipment 3,581 3,399 5.4
Professional fees 1,045 845 23.7
Loan expenses 1,827 727 151.3
Marketing 390 578 (32.5)
Federal deposit insurance premiums 1,443 108 N/M
Merger, integration and
restructuring 297 45 N/M
Amortization of intangible assets 749 806 (7.1)
Real estate owned expense 1,068 1,080 (1.1)
Other expense 3,955 3,145 25.8
------------------------
Total noninterest expense 24,325 21,360 13.9
Loss before income tax benefit (9,525) (7,354) N/M
Income tax benefit (3,611) (1,195) N/M
------------------------
Net loss (5,914) (6,159) N/M
Preferred stock dividends and
discount accretion 1,091 -- N/M
------------------------
Net loss attributable to common
shareholders $ (7,005) $ (6,159) N/M
========================
SHARE DATA:
Basic loss per common share $ (0.42) $ (0.37) N/M
Diluted loss per common share $ (0.42) $ (0.37) N/M
Cash dividends per common share $ 0.01 $ 0.085 (88.2)
Average common shares outstanding -
basic 16,593,499 16,547,160 0.3
Average common shares outstanding -
diluted 16,593,499 16,547,160 0.3
N/M - Not meaningful
FIRST PLACE FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2009 2009 2009 2008 2008
------------------------------------------------------
(Dollars in
thousands) (Unaudited) (Unaudited)(Unaudited)(Unaudited)
---------------------------------------------------------------------
ASSETS
Cash and due
from banks $ 34,869 $ 38,321 $ 70,564 $ 38,647 $ 65,444
Interest-
bearing
deposits in
other banks 28,595 56,614 111,376 74,494 5,992
Federal funds
sold -- -- 41,000 -- 150
Securities,
at fair value 276,470 276,600 287,719 283,097 278,989
Loans held for
sale, at fair
value 285,760 376,406 160,165 96,851 66,039
Loans
Mortgage and
construc-
tion 845,421 851,281 886,805 954,660 989,003
Commercial 1,243,408 1,244,515 1,258,784 1,265,165 1,245,998
Consumer 361,108 372,648 383,640 393,630 395,942
---------- ---------- ---------- ---------- ----------
Total
loans 2,449,937 2,468,444 2,529,229 2,613,455 2,630,943
Less
allowance
for loan
losses 50,643 39,580 35,766 33,577 31,428
---------- ---------- ---------- ---------- ----------
Loans,
net 2,399,294 2,428,864 2,493,463 2,579,878 2,599,515
Federal Home
Loan Bank
stock 35,041 36,221 36,221 36,221 36,221
Premises and
equipment,
net 51,352 52,222 38,561 40,454 40,328
Premises held
for sale, net -- -- 14,739 13,333 13,491
Goodwill 885 885 909 -- 93,741
Core deposit
and other
intangibles 9,891 10,639 11,380 11,979 12,767
Real estate
owned 33,123 36,790 34,969 34,801 26,573
Other assets 90,102 90,905 84,304 74,527 76,703
---------- ---------- ---------- ---------- ----------
Total
assets $3,245,382 $3,404,467 $3,385,370 $3,284,282 $3,315,953
========== ========== ========== ========== ==========
LIABILITIES
Deposits
Noninterest-
bearing
checking $ 236,378 $ 238,417 $ 230,968 $ 227,434 $ 222,305
Interest-
bearing
checking 180,106 173,376 166,394 160,274 158,298
Savings 406,434 400,424 399,343 393,070 438,410
Money
markets 335,116 291,131 283,927 285,615 305,320
Certificates
of deposit 1,172,835 1,332,253 1,468,643 1,474,557 1,281,294
---------- ---------- ---------- ---------- ----------
Total
deposits 2,330,869 2,435,601 2,549,275 2,540,950 2,405,627
Short-term
borrowings 288,292 323,458 170,946 142,454 156,173
Long-term debt 335,162 335,159 337,092 364,269 414,448
Other
liabilities 12,821 28,770 33,681 18,752 28,790
---------- ---------- ---------- ---------- ----------
Total
liabil-
ities 2,967,144 3,122,988 3,090,994 3,066,425 3,005,038
SHAREHOLDERS'
EQUITY 278,238 281,479 294,376 217,857 310,915
---------- ---------- ---------- ---------- ----------
Total
liabil-
ities
and
share-
holders
equity $3,245,382 $3,404,467 $3,385,370 $3,284,282 $3,315,953
========== ========== ========== ========== ==========
FIRST PLACE FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of or for the three months ended
(Dollars in 9/30/09 6/30/09 3/31/09 12/31/08 9/30/08
thousands ------------------------------------------------------
except 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
per share data) FY 2010 FY 2009 FY 2009 FY 2009 FY 2009
----------------------------------------------------------------------
RESULTS OF
OPERATIONS
(GAAP)
Fully tax
equivalent
net
interest
income $ 25,907 24,016 22,038 21,712 23,358
Net
interest
income $ 25,558 23,651 21,685 21,303 22,955
Noninterest
income $ 11,742 8,455 11,136 4,543 (1,598)
Noninterest
expense $ 24,325 31,000 23,000 116,599 21,360
Pre-tax,
pre-
provision
income $ 12,975 1,106 9,821 (90,753) (3)
Provision
for loan
losses $ 22,500 19,620 6,797 9,216 7,351
Net income
(loss) $ (5,914) (12,719) 2,541 (94,097) (6,159)
Net income
(loss)
attributable
to common
share-
holders $ (7,005) (13,800) 2,325 (94,097) (6,159)
Basic
earnings
(loss) per
common
share $ (0.42) (0.83) 0.14 (5.68) (0.37)
Diluted
earnings
(loss) per
common
share $ (0.42) (0.83) 0.14 (5.68) (0.37)
PERFORMANCE
RATIOS (GAAP)
(annualized)
Return on
average
assets (0.73)% (1.52)% 0.31% (11.14)% (0.74)%
Return on
average
equity (8.38)% (17.61)% 4.46% (121.96)% (7.74)%
Return on
average
tangible
assets (0.73)% (1.53)% 0.31% (11.50)% (0.76)%
Return on
average
tangible
equity (8.72)% (18.36)% 4.71% (185.71)% (11.71)%
Net interest
margin,
fully tax
equivalent 3.38% 3.06% 2.85% 2.81% 3.07%
Efficiency
ratio 64.61% 95.47% 69.33% 444.98% 98.16%
Noninterest
expense to
average
assets 2.99% 3.72% 2.80% 13.81% 2.56%
RECONCILIATION
OF NET INCOME
(LOSS) TO
CORE EARNINGS
(LOSS)
Net income
(loss) $ (5,914) (12,719) 2,541 (94,097) (6,159)
Merger,
integration
and
re-
structuring,
net of tax $ 193 16 -- 692 29
Goodwill
impairment,
net of tax $ -- -- -- 92,139 --
Core
earnings
(loss) $ (5,721) (12,703) 2,541 (1,266) (6,130)
Core
earnings
(loss)
attributable
to common
shareholders$ (6,812) (13,784) 2,325 (1,266) (6,130)
CORE EARNINGS
(LOSS)
Core
earnings
(loss)
attributable
to common
shareholders$ (6,812) (13,784) 2,325 (1,266) (6,130)
Core basic
earnings
(loss) per
common
share $ (0.41) (0.83) 0.14 (0.08) (0.37)
Core diluted
earnings
(loss) per
common
share $ (0.41) (0.83) 0.14 (0.08) (0.37)
CORE
PERFORMANCE
RATIOS
(annualized)
Core return
on average
assets (0.70)% (1.52)% 0.31% (0.15)% (0.73)%
Core return
on average
equity (8.10)% (17.58)% 4.46% (1.64)% (7.71)%
Core return
on average
tangible
assets (0.70)% (1.53)% 0.31% (0.15)% (0.76)%
Core return
on average
tangible
equity (8.44)% (18.34)% 4.71% (2.50)% (11.65)%
Core net
interest
margin,
fully tax
equivalent 3.38% 3.06% 2.85% 2.81% 3.07%
Core
efficiency
ratio 63.82% 95.39% 69.33% 83.00% 97.95%
Core
noninterest
expense to
average
assets 2.95% 3.71% 2.80% 2.58% 2.56%
FIRST PLACE FINANCIAL CORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of or for the three months ended
(Dollars in 9/30/09 6/30/09 3/31/09 12/31/08 9/30/08
thousands ------------------------------------------------------
except per 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
share data) FY 2010 FY 2009 FY 2009 FY 2009 FY 2009
----------------------------------------------------------------------
CAPITAL
Total equity
to total
assets at
end of
period 8.57% 8.27% 8.70% 6.63% 9.38%
Tangible
total
equity to
tangible
assets at
end of
period 8.27% 7.96% 8.36% 6.29% 6.37%
Book value
per common
share $ 12.31 12.51 13.27 12.84 18.32
Tangible
book value
per common
share $ 11.68 11.83 12.55 12.13 12.04
Period-end
market
value per
common
share $ 2.95 3.11 3.36 3.83 12.85
Dividends
declared
per common
share $ 0.01 0.01 0.01 0.085 0.085
Period-end
common
shares
outstanding
(000) 16,973 16,973 16,973 16,973 16,973
Average
basic
common
shares
outstanding
(000) 16,593 16,580 16,569 16,558 16,547
Average
diluted
common
shares
outstanding
(000) 16,593 16,580 16,569 16,558 16,547
ASSET QUALITY
Net
charge-offs $ 11,437 15,805 4,609 7,066 4,140
Annualized
net
charge-offs
to average
loans 1.85% 2.52% 0.72% 1.07% 0.63%
Non-
performing
loans $ 126,740 103,228 69,190 66,951 62,860
Non-
performing
loans to
total loans 5.17% 4.18% 2.74% 2.56% 2.39%
Non-
performing
assets $ 159,863 140,018 104,159 101,752 89,433
Non-
performing
assets to
total
assets 4.93% 4.11% 3.08% 3.10% 2.70%
Allowance
for loan
losses $ 50,643 39,580 35,766 33,577 31,428
Allowance
for loan
losses to
total loans 2.07% 1.60% 1.41% 1.28% 1.19%
Allowance
for loan
losses to
non-
performing
loans 39.96% 38.34% 51.69% 50.15% 50.00%
MORTGAGE
BANKING
Mortgage
origin-
ations $ 457,964 636,561 717,403 291,765 263,900
Mortgage
banking
gains $ 3,908 3,772 6,812 2,106 2,064
Mortgage
servicing
portfolio $2,340,400 2,052,135 1,833,518 1,549,536 1,498,521
Mortgage
servicing
rights $ 22,964 20,114 16,994 13,636 14,457
Mortgage
servicing
rights
valuation
(loss)
recovery $ (112) 185 226 (1,071) (292)
Mortgage
servicing
rights to
mortgage
servicing
portfolio 0.98% 0.98% 0.93% 0.88% 0.96%
END OF PERIOD
BALANCES
Loans $2,449,937 2,468,444 2,529,229 2,613,455 2,630,943
Assets $3,245,382 3,404,467 3,385,370 3,284,282 3,315,953
Deposits $2,330,869 2,435,601 2,549,275 2,540,950 2,405,627
Total
equity $ 278,238 281,479 294,376 217,857 310,915
Tangible
total
equity $ 267,462 269,955 282,087 205,878 204,407
Common
equity $ 208,942 212,281 225,291 217,857 310,915
Tangible
common
equity $ 198,166 200,757 213,002 205,878 204,407
Loans to
deposits
ratio 105.11% 101.35% 99.21% 102.85% 109.37%
AVERAGE
BALANCES
Loans $2,457,983 2,520,156 2,585,519 2,622,016 2,608,491
Earning
assets $3,041,204 3,145,979 3,141,122 3,063,980 3,016,618
Assets $3,232,235 3,346,646 3,331,969 3,350,845 3,308,996
Deposits $2,409,542 2,502,267 2,566,770 2,483,101 2,394,237
Total
equity $ 280,136 289,768 231,155 306,099 315,519
Tangible
total
equity $ 268,997 277,872 218,737 201,020 208,705
Common
equity $ 210,867 220,607 219,640 306,099 315,519
Tangible
common
equity $ 199,728 208,711 207,222 201,020 208,705