After reporting loss, First Place won’t be paying dividend

STAFF REPORT

WARREN — First Place Financial Corp. is not paying a quarterly dividend after reporting a $5.9 million quarterly loss.

The Warren-based banking company said Tuesday that the board of directors did not approve a dividend. The most recent dividend had been 1 cent a share.

Steven Lewis, company president and chief executive, said the board is conserving cash to “weather the economic storm” and so it can to retire outstanding preferred stock as soon as possible.

“The current recession continues to impact our borrowers,” Lewis said as First Place reported its earnings for the quarter that ended Sept. 30.

First Place said the $5.9 million quarterly loss came largely because $22.5 million was set aside in the quarter to cover loan losses.

This amount is up from $7.4 million that was set aside in the same quarter last year, when First Place reported a $6.2 million loss.

Lewis said the company set aside a large amount of money last quarter so it could be sure to cover future losses on loans.

As of Sept. 30, nonperforming assets, which are loans that are at least 90 days past due and real estate owned by the bank, totaled $159.9 million, or 4.9 percent of total assets.

This is up from $140 million, or 4.1 percent of total assets as of June 30.

Lewis said, however, that the company’s mortgage banking is strong and fee income on deposit accounts has been growing.

“As this recession draws to a close and credit issues improve, First Place is well positioned to be a strong performer,” he said.

The earnings report was made after markets closed. The company’s stock closed down 34 cents, or 11 percent, at $2.84.