First Place taking over HBLS Bank in Hicksville

A local bank takes over a western Ohio company at no cost.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

WARREN — First Place Bank continues to expand westward with the addition of a troubled, small-town bank in Defiance County.

First Place said Thursday that it has signed a deal to take over HBLS Bank in Hicksville.

Steven Lewis, president and chief executive of Warren-based First Place, said there is no cost to First Place because of financial problems at the Hicksville bank. Its board agreed to turn over the company to First Place, and the deal is expected to close by the end of the year.

HBLS is converting to a publicly owned institution, and First Place will assume the company’s liabilities in exchange for the stock, Lewis said.

He said said HBLS made some loans for rental properties near Fort Wayne, Ind., that were uncollectible. The loans have been sold, but losses from the loans exceeded the net worth of the company, he said.

Several financial institutions met with the HBLS board and it selected First Place as the acquiring company.

Jamie Shinabarger, HBLS president and chief executive, said that the company’s board “placed a great deal of value on the First Place culture and successful track record.”

Growing deposits

Lewis said Hicksville has a stable population and that First Place will “recapitalize and revitalize” the HBLS operations.

“The deposits in the community have shown good growth over the past five years, growing at over 6 percent per year,” he said.

Lewis said taking over the Hicksville bank makes sense because First Place has a loan office in Toledo and three in Indianapolis. He added that the local bank can consider expanding into Fort Wayne, which is 15 miles from Hicksville.

First Place expanded its geographic reach in 2004 by acquiring Franklin Bank in southeast Michigan and since then has been opening offices between here and there.

HBLS, which is formally known as Hicksville Building, Loan and Savings Bank, has $54 million in assets, which are generally loans in the banking industry.

By adding HBLS, First Place would become the 33rd largest publicly trading savings institution in the country with $3.3 billion in assets. First Place would have 42 branches and 20 business service centers and loan production offices.

shilling@vindy.com