First Place Financial’s stock price drops 15%

By Don Shilling

The stocks of other local banking companies posted mixed results.

The stock price for First Place Financial Corp. dropped 15 percent Wednesday, a day after the company reported lower earnings and a 50 percent cut in its dividend.

The stock closed at $9.61, down $1.75. The Warren-based company is the parent of First Place Bank.

Steven Lewis, company president and chief executive, said in a conference call with analysts Wednesday that the dividend will be reviewed each quarter. When an analyst asked if that meant the dividend could be raised significantly in a later quarter, Lewis said, “Absolutely.”

The First Place board set its August dividend at 8.5 cents, which was down from 17 cents.

Lewis said the board decided it would be prudent to retain cash in this economic environment. He noted that other financial institutions also have cut dividends because obtaining capital has become more expensive.

The company reported earnings of $2.9 million for the quarter that ended June 30, down from $5.6 million in the same quarter last year.

First Place attributed the decline in earnings to an increase in $1.5 million in money set aside for loan losses and a $1.4 million accounting charge for a decline in the value of an investment.

The stocks of other local banking companies had mixed results Wednesday.

The stock of United Community Financial Corp. increased 18 to close at $5.14. The Youngstown-based company is the parent of Home Savings and Loan Co.

F.N.B. Corp. saw its stock decline 30 cents to close at $11.65. The Hermitage, Pa.-based company is the parent of First National Bank of Pennsylvania.

Farmers National Banc Corp. of Canfield gained 35 cents to close at $5.85.

Wall Street in general saw slight gains on the day. The Dow Jones industrial average gained 29.88 to close at 11,632.38.

shilling@vindy.com