WARREN, Ohio, Feb. 5, 2009 (GLOBE NEWSWIRE) -- First Place Financial Corp. (Nasdaq:FPFC), the parent company of First Place Bank, has been notified by the U.S. Department of the Treasury that it has been selected to participate in the Treasury Capital Purchase Program for healthy institutions.
The Treasury Department recently created the program to encourage U.S. financial institutions to build capital to increase lending to businesses and consumers, thereby supporting the national economy.
To participate in the program, financial institutions must agree to Treasury Department standards, including those for executive compensation and corporate governance.
Under the program, the U.S. Treasury would purchase $75 million in preferred stock from First Place, and First Place would issue warrants to the U.S. Treasury to purchase $11.3 million of common stock at the price in effect when the preferred stock is issued. First Place Bank was considered well capitalized for regulatory purposes at December 31, 2008.
"We're honored to be selected among the nation's strongest community banks to participate in the economic stability effort," said Steven R. Lewis, President and CEO. "In fact, our strength and soundness has recently been recognized by Bank Director Magazine for the second consecutive year, in the publication's annual list of the nation's top 150 bank performers."
(For more details on the Top 150 Bank Performers recognition, please see separate February 5 news release.)
First Place has an evaluation period to review the Treasury program specifics and decide whether to accept the funds. "Over the next 30 days, we'll be examining the program in detail to ensure that it fits in with our short- and long-term strategic direction," Lewis concluded.
About First Place Financial Corp.
First Place Financial Corp. is a $3.4 billion financial services holding company based in Warren, Ohio. First Place Financial Corp. operates 44 retail locations, 2 business financial service centers and 18 loan production offices through the First Place Bank and the Franklin Bank divisions of First Place Bank.
Additional affiliates of First Place Financial Corp. include First Place Holdings, Inc., the holding company for the Company's nonbank affiliates including First Place Insurance Agency, Ltd.; Coldwell Banker First Place Real Estate, Ltd.; TitleWorks Agency, LLC, APB Financial Group, Ltd. and American Pension Benefits, Inc. Information about First Place Financial Corp. may be found on the Company's Web site: www.firstplacebank.com.