First Place, National City report large losses

Two banks serving the Mahoning Valley posted financial losses as they struggle through the downturn in mortgage and credit markets.

First Place Financial Corp., based in Warren, said Tuesday that it lost $6.2 million last quarter. It attributed the losses to bad loans and investment losses.

Meanwhile in Cleveland, National City Corp. announced a loss of $5.15 billion and said it would cut 4,000 jobs over the next three years.

First Place has been hurt by loans that it made to contractors who were developing residential building lots and new homes, said Steven Lewis, president and chief executive of the company that operates First Place Bank.

“We have continued to experience depressed real estate values in the markets where we lend, resulting in an unsatisfactory level of nonperforming loans,” he said.

Read more in Wednesday’s Vindicator and Vindy.com