EX-99.1 2 dex991.htm COPIES OF SLIDES USED AT 2005 SANDLER O'NEILL & PARTNERS CONFERENCE Copies of slides used at 2005 Sandler O'Neill & Partners Conference
This
presentation
and
the
information
contained
herein
should
not
be
copied,
summarized
or
disseminated
in
any
form
to
any
other
party without the prior written approval of First Place Financial Corp.  The improper dissemination of this presentation and related
information may result in violations of Federal Securities Laws.
Steven Lewis, President & Chief Executive Officer
Paul Musgrove, Chief Financial Officer
Welcome
Exhibit 99.1

Forward-looking Statements
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 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.
2

Who are those guys?
3

$2.6 billion in assets
$334 million market cap @ 09/30/05
Four state market:  Ohio, Michigan, Pennsylvania, Indiana
•
26 branches
•
15 loan offices
•
2 business financial centers
Market share leader in primary markets
Diversified bank:  commercial, retail, consumer, insurance,
wealth management, and real estate
Ticker Symbol: FPFC  
First Place Corporate Profile
4

Our Expanding Franchise
26 retail locations
in Ohio and Michigan
Network of 15  LPOs
in OH, MI, and IN
APB Financial Group in
PA
2 Business Financial
Services Centers
5

Leverage existing franchise and platforms
-
De novo retail expansion & strategic acquisitions
Diversify, Diversify, Diversify
-
Geography & products
Go deep and get wide
-
Expand product lines, maximize complimentary    
businesses, & grow non-interest income
Watch the pennies
-
Discipline!
Core Strategies
6

Key to Success
•
Steven Lewis, Chief Executive Officer
21
•
Albert Blank, Chief Operating Officer
21
•
Paul Musgrove, Chief Financial Officer
13
•
Craig Johnson, Michigan Regional President
23
•
Kenton Thompson, Ohio Regional President
26
•
Bruce Wenmoth, Corporate Exec. VP, Consumer Banking    
22
•
Dominique Stoeber, Corporate Exec. VP, Retail Banking
15
•
Tim Beaumont, Corporate Exec. VP, Chief Credit Officer
25
Years in Banking
A strong management team with the Rite Stuff
7

Today
8

Asset Mix: 
5 YR. CAGR of 18.9% in Total Assets
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2000
2001
2002
2003
2004
2005
1Q'06
$1,052
$1,593
$1,591
  $2,499
  $2,247
  $1,559
  $2,560
Fiscal year ending 6/30
($ in millions)
9
Commercial         Consumer/Residential          Investments          Other

Residential
44%
Franklin Line
1%
C & I
16%
Multi-Family Real
Estate
5%
Home Equity
7%
HELOC
8%
Consumer
1%
Commercial Real
Estate
18%
A Diversified Loan Portfolio
Loans at 9/30/2005
$1.880 Billion
10

First Place:
The Bank That Means Business
$716
$508
$160
$116
$120
$54
2000
2001
2002
2003
2004
2005
1Q'06
CAGR =
67.9%
Fiscal year ending 6/30
($ in millions)
Commercial Loans
Vision
•
A leader in our markets
for full-service
commercial banking
•
Mortgage and
Commercial LPOs
•
Business financial         
centers
•
17 commercial lenders
$54
$120
$116
$160
$508
$716
11
$743

C & I - 40%
Multi-Family  -
11%
Franklin Line - 2%
Commercial Real
Estate -  47%
Commercial Loans at 9/30/2005
$743 Million
Commercial Loan Diversification
12

Commercial Loans By State
52.7%
Michigan
4.5%
Indiana
38.5%
Ohio
Pennsylvania
13
1.6%

2%
15%
35%
56%
19%
18%
16%
14%
79%
67%
49%
30%
A Changing Loan Mix
Becoming More Bank-Like
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
First Place
Peer Group *
June 30,
1998
Dec. 31,
2003
Sept. 30,
2005
14
C&I, CRE          Consumer           1-4 & Multi

Mortgage Banking
Vision
•
Stable revenue growth across economic cycles
•
A leader in our selected higher-growth markets
•
Contribution of 10-15% to net income
•
Currently, 15 loan production offices in Midwest,
2 opened in fiscal 2005
15

Mortgage Banking
$8
$261
$146
$623
$1,038
$1,292
$997
$900
$680
$464
$1,284
$1,680
$1,387
$161
2000
2001
2002
2003
2004
2005
1Q'06
Sales
Originations
Fiscal year ending 6/30
($ in millions)
16
(Annualized)

Keys To Asset Quality
•
Loan production and underwriting are separated
•
Commercial Loan Officers have “zero”
approval authority
•
Loan approval process is compressed yet efficient
•
Aggregate in-house limit is $12 million
•
Coordinated internal and external loan review process
•
Results:
–
11
basis
points
in
charge-off
in
’05
/
9
basis
points
in
1
st
Qtr ‘06
–
4 years in a row of charge-off decline
–
Portfolio diversification
17

2000
2001
2002
2003
2004
2005
1Q'06
CD's
Money Market
Savings
NOW
Non-interest DDA
$1,709
$1,108
$1,061
$1,019
$587
$1,548
$1,755
Deposit Composition
CAGR =
23.8%
Fiscal year ending 6/30
($ in millions)
18

in millions
$993
$983
$939
$547
$486
$422
$240
2000
2001
2002
2003
2004
2005
1Q'06
Retail Banking
Vision
•
Continue development of  
more stable funding mix
•
Focus on business and
consumer core deposits
•
Core deposit growth of
7.0%
•
Commitments to 2 new
locations in SE Michigan
over next 12 months
•
Transfer of Michigan
business strategy
Core Deposit Growth*
CAGR =
32.5%
Fiscal year ending 6/30
($ in millions)
* Core Deposits include all non-CD products
19

Deposit Breakdown
16.6%
8.1%
13.0%
FPFC
Thrift
Bank
DDA –
Non-interest Bearing/Total Deposits
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
20
Sept. 30, 2005

First Quarter ‘06
•
Net
Income
+29.6%
over
1
st
Qtr
’05
•
Commercial Loans      14.7% annualized growth
•
Mortgage Banking
+ 23.9% over 1st Qtr ‘05
Volumes  
•
Balance Sheet         
9.7% annualized growth
•
Deposits:      
Organic
8.3% annualized growth
Including Broker
10.6%
21

Financial
Results
22

Net Income
$6.0
$4.8
$6.2
$6.6
$4.8
$1.6
$5.0
$6.2
$6.0
$5.6
1Q'05
2Q'05
3Q'05
4Q'05
1Q'06
Net Income
Core Earnings
23

Diluted Earnings Per Share
24
$0.42
$0.41
$0.33
$0.11
$0.45
$0.38
$0.33
$0.41
$0.42
$0.35
1Q'05
2Q'05
3Q'05
4Q'05
1Q'06
GAAP Diluted EPS
Core Diluted EPS

Profitability
Core Return on Average Equity
25
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
12.4%
7.3%
10.2%
8.4%
8.9%
9.9%
10.2%
1Q'05
2Q'05
3Q'05
4Q'05
1Q'06
Thrift
Bank

Profitability
0.96%
0.94%
0.85%
0.82%
0.96%
0.85%
1.07%
1Q'05
2Q'05
3Q'05
4Q'05
1Q'06
Thrift
Bank
Quarterly Core ROAA
26
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL

FTE Net Interest Margin
Profitability
3.35%
3.37%
3.30%
3.30%
3.35%
3.30%
3.68%
1Q'05
2Q'05
3Q'05
4Q'05
1Q'06
Thrift
Bank
27
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL

Expense Control
66.6%
62.0%
62.5%
63.1%
60.5%
66.3%
60.2%
1Q'05
2Q'05
3Q'05
4Q'05
1Q'06
Thrift
Bank
Core Efficiency
28
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL

Tier 1 Risk Based Capital
29
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
13.12%
14.89%
12.43%
14.46%
10.48%
9.60%
10.13%
10.90%
11.30%  
2000
2001
2002
2003
2004
2005
1Q'06
Thrift
Bank

12.50%
11.60%
11.21%
10.61%
12.07%
14.03%
15.97%
13.05%
15.27%
2000
2001
2002
2003
2004
2005
1Q'06
Thrift
Bank
Capital Ratios
Total Risk-Based Capital
30
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL

Asset Quality
Net Charge-offs/Average Loans
31
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
(Annualized)
0.23%
0.29%
0.33%
0.40%
0.11%
0.09%
0.08%
0.18%
2001
2002
2003
2004
2005
1Q'06
Thrift
Bank

138%
140%
206%
FPFC**
Thrift*
Bank*
Current Price to Book
Shareholder Value
32
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
** Price as of 09/30/05 @ $22.17

Current Price to Tangible Book
Shareholder Value
33
194%
155%
241%
FPFC**
Thrift*
Bank*
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
** Price as of 09/30/05 @ $22.17

15.4X
17.3X
14.2X
FPFC**
Thrift*
Bank*
Current Price to Core Diluted EPS -
LTM
Shareholder Value
34
* Peers: Median of Thrifts & Banks $1-5 Billion in 4 state footprint: OH, MI, IN, IL
** Price as of 09/30/05 @ $22.17

25.0
50.0
75.0
100.0
125.0
150.0
175.0
200.0
225.0
250.0
275.0
FPFC (+150.6%)
FMER (+26.5%)
KEY (+36.9%)
SKYF (+64.1%)
HBAN (+15.4%)
NCC (+21.2%)
UCFC (+58.2%)
FITB(-12.1%)
FNB (+78.9%)
Total Return Comparison
Total Return Comparison
35

$22.17
$20.09
$18.59
$10.75
$12.92
$19.91
$17.50
4Q'00
4Q'01
4Q'02
4Q'03
4Q'04
4Q'05
1Q'06
Share Price
36
Fiscal year ending 6/30

$2,560
$2,499
$2,247
$1,559
$1,591
$1,593
$1,052
$747
1999
2000
2001
2002
2003
2004
2005
1Q'06
Growth Profile Total Assets
CAGR =
18.9%
Fiscal year ending 6/30
($ in millions)
37
* Acquisitions shown in blue
$201
$682
$627

Acquisition/Growth
Institution
Close Date
Total Return*
Ravenna Savings Bank
05/12/2000
19.67%
FFY Financial Corp.
12/22/2000
18.95%
Franklin Bancorp.
05/28/2004
29.33%
38
* @ 09/30/05

Challenges
Ahead
39

What’s
the
Plan?
40

Growth Strategy:
Acquisitions and New Branches
•
Bank acquisition strategies
–
Within FPFC’s 4-state footprint
–
Accretive to EPS in first full year
–
Assist in transformation into a commercial bank
•
Strategies for branch expansion   
–
Sustainable and measured growth in 4-
state footprint
–
24-36 months minimum profitability requirement
•
Expansion of mortgage LPO network into higher-growth
Midwest markets
•
Fee-based businesses to diversify product line
41

Livonia
42

Shelby
43

Howland
44

Fiscal 2006 Strategic Goals
Complete FPFC transformation to
commercial bank
Grow commercial loans
Grow core deposits
Maintain excellent asset quality
Make strategic acquisitions
•
Within FPFC’s 4-state footprint
•
Accretive to EPS in first full
year
•
Assist in transformation into a
commercial bank
Expand branch network
•
Sustainable and measured
growth in 4-state
footprint
•
24-36 months minimum
profitability requirement
Fee-based businesses to diversify
product line
Strategic Growth Plan
45
2005
Actual
Performance
Q1/06
Annualized
2006
Strategic
Goals
Asset Growth Rate
11.2%
9.7%
11%
Commercial Loan Growth
40.9%
14.7%
14%
Loan Growth
22.2%
10.8%
15%
Core Deposit Growth
4.7%
4.0%
8%
Total Deposit Growth
10.4%
10.6%
11%
Core EPS Growth
21.7%
14.3%
>10%
ROAE (core)
9.35%
10.23%
>10%
ROAA (core)
0.89%
0.96%
>1%
Total Risk-Based capital
10.82%
11.21%
>11%
Efficiency Ratio (core)
63.39%
60.51%
<61%
Loan Loss Reserve / Loans
1.00%
1.02%
>1%
Annualized Net Charge-offs /
Avg Loans
0.11%
0.09%
<.20%

What’s the
market saying
about   First
Place?
46

Investment Appeals
•
Proven management team
•
Diversified balance sheet
•
Asset-sensitive to interest-rate risk
•
Positive earning trends
•
Strong asset quality
•
Strong quality of earnings
•
Diversified markets
•
Commercial loan growth
•
Core deposit growth
•
Excellent timing
47

Thank you!
48

The
Bank
That Means
Business

$7,262
$8,386
$16,230
$16,692
15,565
$21,343
Core earnings
-
-
-
-
-
(1,005)
Tax-free proceeds from
executive life insurance
policy
-
-
-
-
-
3,410
Other-than-temporary
impairment of securities,
net of tax
448
2,072
-
-
1,414
-
Merger, integration and
restructuring costs, net of
tax
$6,814
$6,314
$16,230
$16,692
$14,151
$18,938
GAAP Net income
2000
2001
2002
2003
2004
2005
Year Ended June 30
Reconciliation from GAAP to Non-
GAAP Measures
50

$6,167
-
-
$6,167
9/30/05
$4,757
$5,046
$5,585
$5,955
Core earnings
-
-
(1,005)
-
Tax-free proceeds from
executive life insurance
policy
-
3,410
-
-
Other-than-temporary
impairment of
securities, net of tax
$4,757
$1,636
$6,590
$5,955
GAAP Net income
9/30/04
12/31/04
3/31/05
6/30/05
Quarter Ended:
Reconciliation from GAAP to Non-
GAAP Measures
51