Attached files
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| 8-K - CURRENT REPORT - FIRST PLACE FINANCIAL CORP /DE/ | d8k.htm |
 2009 Annual
Shareholders’ Meeting October 29, 2009 Steven R. Lewis, President & CEO David W. Gifford, CFO Exhibit 99.1 |
 2 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. When used in this presentation, or future presentations or other public or shareholder communications, in filings by First Place Financial Corp. (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 “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” 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 Forward-Looking Statements |
 3 • Business of the Meeting • 2009 Financial Overview and Q1 ’10 Highlights • 2009 Environment, Achievements, & Challenges • Question & Answer • Recognizing Commitment & Leadership • Election Results First Place Annual Meeting Agenda |
 4 Financial Results Fiscal 2009 Results 1 Quarter 2010 Results Capital st |
 5 Fiscal 2009 Results |
 6 Net Income (Loss) History $(110.43) $10.79 $25.62 2009 2008 2007 Dollars in Millions |
 7 Factors Contributing to the Decline in Net Income $28.21 $29.67 $31.06 All Other Components of Net Income 3.53 .25 .17 Federal Deposit Insurance 6.29 2.33 .47 Real Estate Owned Expense 27.94 10.70 4.80 Provision for Loan Losses Credit Related Charges 8.74 5.60 - Securities Impairment 92.14 - - Goodwill Impairment $(110.43) $10.79 $25.62 Net Income (Loss) 2009 2008 2007 All amounts are in Millions of Dollars and are Net of Income Taxes
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 8 Goodwill - The Value of Having All the Elements of a Business Assembled and Operating Name Recognition Operating Systems and Procedures Existing Customers Trained Work Force What Does It Represent - Total Purchase Price Less Fair Value of Assets and Liabilities Equals Goodwill How Is the Amount Determined - When You Acquire a Company or a Line of Business Where Does It Come From |
 9 - During 2009 Our Earnings Were Not High Enough to Support a Stock Price Equal to Our Book Value Why Did We Write It Off - They Were Not. Regulators Begin by Subtracting Goodwill from Capital for All Regulatory Capital Ratios How Were Our Regulatory Capital Ratios Affected - As an Intangible Asset without Amortization Unless Impaired How is Goodwill Accounted For - None What is the Impact on Future Periods - First Place Completed 7 Acquisitions in the Past Nine Years Why Did First Place Have Goodwill |
 10 Positive Income Factors $10.21 $8.35 $6.44 Service Charges and Fees on Deposit Accounts Mortgage Banking Gains 14.47 9.26 7.24 2009 2008 2007 Dollars in Millions |
 11 1 Quarter 2010 Results st |
 12 Net Income (Loss) By Quarter $(6.16) 9/30/08 Quarter Ended $(94.10) 12/31/08 9/30/09 6/30/09 3/31/09 Net Income (Loss) $(5.91) $(12.72) $2.54 Dollars in Millions |
 13 Factors Negatively Impacting Net Income Credit Related Charges 14.63 12.75 4.42 5.99 4.78 Provision for Loan Losses .69 3.97 .72 .90 .70 Real Estate Owned Expense .94 1.98 .64 .84 .07 FDIC Insurance $(5.91) $(12.72) $2.54 $(94.10) $(6.16) Net Income (Loss) 92.14 Goodwill Impairment - .75 - 1.65 6.06 Securities Impairment $10.35 $6.73 $8.32 $7.42 $5.45 All Other Components of Net Income 9/30/08 Quarter Ended 12/31/08 9/30/09 6/30/09 3/31/09 All amounts are in Millions of Dollars and are Net of Income Taxes
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 14 Asset Quality 27.9% $50.64 $39.58 Allowance for Loan Losses 22.8% $126.74 $103.23 Nonperforming Loans 5.17% 4.18% Nonperforming Loans to Total Loans 2.07% 1.60% Allowance for Loan Losses to Total Loans Percentage Increase 9/30/09 6/30/09 Dollars in Millions |
 15 Positive Income Factors $3.15 $2.94 $2.68 $2.46 $2.14 Service Charges on Deposit Accounts $3.91 $3.77 $6.81 $2.11 $1.78 Mortgage Banking Gains 3.38% 3.06% 2.85% 2.81% 3.07% Net Interest Margin 9/30/08 Quarter Ended 12/31/08 9/30/09 6/30/09 3/31/09 Dollars in Millions |
 16 First Place Financial Corp. • Selected for the Treasury Capital Purchase Program for Healthy Institutions • Issued $73 Million in Preferred Stock and Warrants on 3/13/09 • Invested $31 Million in First Place Bank to Strengthen Capital Position First Place Bank • Was Considered “Well Capitalized” Before $31 Million • Has Remained “Well Capitalized” Capital |
 17 10.61% 10.42% 11.47% 12.37% 11.16% Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Minimum to be well capitalized = 10.00% 10.00% 12 Total Capital to Risk Weighted Assets Year End Bank Regulatory Capital is at a Five Year High Minimum to be well capitalized = 10.00% |
 18 Capital – First Place Financial Corp. 8.27% 7.96% Tangible Equity to Tangible Assets 8.57% 8.27% Equity to Assets Cash on Hand $45.14 $46.79 9/30/09 6/30/09 Dollars in Millions |
 19 Capital – First Place Bank 8.35% 11.42% 12.67% 9/30/09 5.00% 6.00% 10.00% Required to be Well Capitalized 5.42% 11.23% Tier 1 Capital to Risk Weighted Assets 2.67% 12.37% Total Capital to Risk Weighted Assets Tangible Capital to Adjusted Assets 3.35% 8.16% Excess 6/30/09 |
 20 • Ticker Symbol: FPFC • Average Daily Trading Volume: 51,201 (7/1/09 - 9/30/09) • Primary Regulator: Office of Thrift Supervision • Institutional & Insider Ownership: 22.7% & 11.0% respectively First Place Assets $3.2 Billion Retail Locations 44 Loan Offices 18 States: Ohio, Indiana, Maryland, Michigan, Pennsylvania First Place Corporate Profile |
 Multi-State
Footprint 21 |
 22 “Remember the Alamo” CFPA FDIC Media Admin D.C. Regulators Credit Fraud Cyber Fraud ODP Community Banks Community Banks |
 23 • Commercial Banking Kenton Thompson • Mortgage Banking Bruce Wenmoth • Retail Dominique Stoeber • Wealth Management Mark Wenick Transitioning our Business Model |
 24 • Control • Consistency • Complexity • Risk • Efficiency What did we gain? |
 25 COST OF DEPOSITS Quarter Ended 6/30/09 9/30/09 Q4 09 Q1 10 Change Cost of
Deposits 2.03% 1.74% -0.29% Cost of Deposits 2.26% 1.93% -0.33% (Less Noninterest-bearing checking) NET CHECKING ACCOUNT GROWTH 2009 Consumer 1,792 Business Checking 1,421 Retail Banking |
 26 FY ’08 FY ’09 Q1 ’10 Loan Originations $1.3B $1.9B $.458B Gain on Sale $9.3 mil $14.5 mil $3.9 mil Conclusions: Keep Growing Purchase new loan origination system Mortgage Banking |
 27 Reallocation of Resources Commercial |
 28
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 29 • Net charge-offs $31.6 million • Total added to Reserves $43.0 million • Non-performing loans increased by $52 million • Total properties acquired in FY’09 - 208 units • Total properties sold in FY’09 - 135 units • $33 million in Real Estate Owned at 9/30/09 • Reserves at 2.07% at 9/30/09 2009 |
 30 What’s the Plan? Credit Challenges … |
 31 • Transitioned corporate business model to Line of Business • Opened new LPO in Rockville, Maryland • Opened new LPO in Grand Rapids, Michigan • Integrated OC Financial into First Place Bank • Acquired the Guerra, Richards and Mulvey Insurance • Developed new comprehensive model for providing wealth management services • Transitioned the Franklin Bank name to First Place Bank • Launched a new web site • Opened our new Liberty office • Consolidated two Southfield, Michigan offices into one new facility • Implemented Remote Capture, Positive Pay features, and automated Lock Box Strategic Achievements |
 32 Corporate Accolades • Second largest publicly traded savings institution in Ohio, and 26 largest in America • Deemed “well capitalized” by the U.S. Treasury Office of Thrift Supervision • Ranked in the Top 150 Performers two years in a row by Bank Director magazine • Named one of the country’s Top 100 Mid-Tier Banks by US Banker magazine • Number one mortgage lender in many of the markets served • Chosen by FNMA to help pilot their new Home Path Program • First Place originators included in Mortgage Originator magazine’s list of the
nation’s top 200 mortgage originators for 10 consecutive years, including six
recognized for their 2008 performance • Named Top Bank by readers of the Warren Tribune Chronicle • Named Top Bank by readers of the Flint Morning
Journal th
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 35 “It’s not the load that breaks you down, it’s the way you carry it.” - Lou Holtz |
 36 QUESTION & ANSWER |
 37 Congratulations to Our Newest and Most Recently Promoted Officers Daniel C. Cook Vice President - Commercial Banking Cathy L. Doerr Senior Vice President, Regional Sales Manager Wayne A. Jannette Vice President, Senior Portfolio Manager James H. MacQueen Vice President, REO/REH Manager Kathleen E. Marks Senior Vice President, Regional Sales Manager Ginger L. Nolen Vice President, Branch Sales Manager Todd R. Sardich Vice President, Senior Credit Risk Officer Richard R. Sculthorpe Vice President, Senior Portfolio Manager Racheal L. Solida Assistant Vice President, Business Relationship Specialist Cynthia Vespa Assistant Vice President, Branch Sales Manager Christina M. Wiskur Assistant Vice President, Business Relationship Specialist |
 38 Thank You Board Member Jeffrey B. Ohlemacher Years of Service 2006 - 2009 |
 39 The Bank That Means The Bank That Means Business Business |