First Place Financial Corp. Strengthens Allowance for Loan Losses Recording a 28% Increase Which Leads to a Net Loss of $5.9 Million for the First Quarter

Highlights

• Press Release
• Source: First Place Financial Corp.
• On 4:05 pm EDT, Tuesday October 27, 2009

 * First Place continued to strengthen its allowance for loan losses
   increasing it by $11.1 million or 28.0% during the current
   quarter to $50.6 million or 2.07% of loans, up from 1.60% of
   loans at June 30, 2009;

 * Net loss for the first quarter of fiscal 2010 was $5.9 million,
   primarily driven by a higher provision for loan losses, partially
   offset by increases in net interest income and mortgage banking
   gains;

 * Capital remains strong as bank-level total risk-based capital
   reached 12.67% at September 30, 2009 up from 12.37% at June 30,
   2009 and well above the 10.00% required to be well capitalized
   for regulatory purposes; the Board of Directors opted to conserve
   capital by eliminating the dividend on common stock;

 * An increase in market share and continued favorable long-term
   interest rates resulted in an increase in mortgage banking
   activity and gains of $3.9 million, an increase of $2.1 million
   from the same quarter in the prior year;

 * First Place continued to manage its costs of deposits resulting
   in a 32 basis point increase in net interest margin to 3.38% from
   3.06% in the June 2009 quarter.

Related Quotes

Symbol	Price	Change
FPFC	2.79	-0.08

{"s" : "fpfc","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Summary

WARREN, Ohio, Oct. 27, 2009 (GLOBE NEWSWIRE) -- First Place Financial Corp. (Nasdaq:FPFC - News) reported a net loss of $5.9 million for the quarter ended September 30, 2009 compared with a net loss of $6.2 million for the quarter ended September 30, 2008. The net loss for the first quarter of fiscal 2010 was primarily due to increases of $15.1 million in the provision for loan losses and $2.9 million in noninterest expense, partially offset by increases of $2.6 million in net interest income and $13.3 million in noninterest income and a decrease of $2.4 million in income taxes. The increase in noninterest expense was primarily due to increases of $1.3 million in FDIC premiums and $1.1 million in loan expenses. The increase in noninterest income was primarily due to the prior period charge of $9.3 million for the decline in the fair value of securities, including Fannie Mae preferred stock, which the Company has since sold, and a mortgage-backed securities mutual fund, along with current period increases of $2.1 million in mortgage banking gains and $1.0 million in service charges on deposit accounts. The loss per common share for the current quarter was $0.42 compared with a loss per common share of $0.37 for the same quarter in the prior year. Return on average assets and return on average equity for the current quarter were -0.73% and -8.38%, respectively, compared with -0.74% and -7.74%, respectively, for the same quarter in the prior year.

The net loss of $5.9 million for the quarter ended September 30, 2009 represented a decrease of $6.8 million from the net loss of $12.7 million for the preceding quarter ended June 30, 2009. The reduction in net loss was primarily due to a decrease of $6.7 million in noninterest expense along with increases of $3.3 million in noninterest income and $1.9 million in net interest income, partially offset by increases of $2.9 million in the provision for loan losses and $2.2 million in income taxes. The decrease in noninterest expense was primarily due to decreases in real estate owned expense, FDIC premiums and salaries and employee benefits. The FDIC premiums in the previous quarter included a special assessment of $1.6 million. The increase in noninterest income was primarily due to a reduction in impairment of securities and an increase in loan servicing income. Loss per common share for the current quarter was $0.42 compared with a loss per common share of $0.83 for the preceding quarter ended June 30, 2009. Return on average assets and return on average equity for the current quarter were -0.73% and -8.38%, respectively, compared with -1.52% and -17.61%, respectively, for the preceding quarter ended June 30, 2009.

Core earnings are a supplementary financial measure computed using methods other than Generally Accepted Accounting Principles (GAAP) that exclude certain unusual or nonrecurring items of revenue or expense. Core earnings excludes merger, integration and restructuring costs which were $0.3 million and $0.1 million for the quarters ended September 30, 2009 and 2008, respectively. Core loss for the quarter ended September 30, 2009 was $5.7 million compared with a core loss of $6.1 million for the quarter ended September 30, 2008. For additional information on core earnings, see the section entitled Explanation of Certain Non-GAAP Measures and the Reconciliation of Net Income to Core Earnings under the Consolidated Financial Highlights.

Commenting on these results, Steven R. Lewis, President and CEO, stated, "The current recession continues to impact our borrowers and therefore our credit costs. Our response has been consistent and focused. This quarter we recorded a provision for loan losses approximately twice the amount of our charge-offs which increased our allowance for loan losses to 2.07% of loans, up from 1.19% a year earlier. This position of strength leaves us well prepared to deal with future credit losses. At the same time, core operations of First Place Bank continue to improve; mortgage banking remains strong, fee income on deposit accounts has been growing and net interest margin has improved for the third consecutive quarter. As the recession draws to a close and credit issues improve, First Place is well positioned to be a strong performer."

Revenue

Net interest income for the first quarter of fiscal 2010 was $25.6 million, an increase of $2.6 million or 11.3% compared with $23.0 million in the first quarter of fiscal 2009. This increase was the result of an increase of 31 basis points in the net interest margin to 3.38% for the current quarter compared with 3.07% for the same quarter in the prior year. Net interest income of $25.6 million for the quarter ended September 30, 2009 represents an increase of $1.9 million from net interest income of $23.7 million for the quarter ended June 30, 2009 while net interest margin of 3.38% for the current quarter increased from 3.06% for the quarter ended June 30, 2009. The primary reason for the increase in net interest margin from the June 2009 quarter was that interest rates paid on interest-bearing liabilities continued to reprice lower, catching up with the already lower yielding assets. During the quarter ended June 30, 2009, the Company carried a higher level of short-term liquid assets due to the uncertainties in the financial markets. Since June 30, 2009, the Company has utilized a portion of these short-term liquid assets to retire maturing liabilities with high interest rates, further contributing to the improved margin.

Noninterest income for the first quarter of fiscal 2010 was $11.7 million, an increase of $13.3 million compared with a loss of $1.6 million in the first quarter of fiscal 2009. The increase in noninterest income was primarily due to the prior year charge of $9.3 million for the decline in the fair value of Fannie Mae preferred stock, which the Company has since sold, and a mortgage-backed securities mutual fund, along with current period increases of $2.1 million in mortgage banking gains and $1.0 million in service charges on deposit accounts.

The volume of loan sales in the current quarter was $507 million compared to $255 million for the same quarter in the prior year. The increase in mortgage banking gains was primarily due to the higher volume of loans sold supplemented by an increase in the margin on mortgage banking sales. The $1.0 million increase in service charges on deposit accounts was primarily due to overdraft fee income.

Mr. Lewis commented, "We are seeing substantial margin improvement, which we expect to continue into the second fiscal quarter of 2010 as we more fully realize the benefit of the rate reductions on liabilities as well as wider loan spreads. During the quarter we have liquidated high cost single service certificates of deposit reducing interest costs and improving our mix of deposits. Our mortgage banking personnel continue to generate substantial volumes in this historically low interest rate environment. This is a win for us and for our customers who were able to purchase new homes or reduce the monthly payments on their current homes."

Noninterest Expense

Noninterest expense for the first quarter of fiscal year 2010 was $24.3 million, an increase of $2.9 million or 13.9% compared with $21.4 million in the first quarter of fiscal year 2009. The increase in noninterest expense was primarily due to increases of $1.3 million in FDIC premiums and $1.1 million in loan expenses. The increase in FDIC premiums resulted from increases in premium rates and the exhaustion of credits carried over from prior years. The increase in loan expenses resulted from the higher volume of loan originations and expenses related to nonperforming loans. Salaries and employee benefits have decreased $0.6 million in the current quarter compared with the same quarter a year ago. Some savings have been achieved during the past six months by reorganizing into a line of business structure from a regional structure and consolidating back office operations. A significant portion of this savings has been reinvested by adding or reassigning personnel to credit functions to stay ahead of potential increases in credit problems. Noninterest expense to average assets increased to 2.99% for the quarter ended September 30, 2009 from 2.56% for the same quarter in the prior year. FDIC premiums to average assets were 0.18% for the quarter ended September 30, 2009 compared with 0.01% for the same quarter in the prior year.

Noninterest expense for the first quarter of fiscal 2010 decreased $6.7 million from $31.0 million in the preceding quarter ended June 30, 2009. The decrease was primarily due to decreases in real estate owned expense, FDIC premiums and salaries and employee benefits. Noninterest expense to average assets decreased to 2.99% in the current quarter compared with 3.72% in the preceding quarter.

Core noninterest expense excludes merger, integration and restructuring costs which were minimal in each of the quarters discussed, and therefore, provide no significant changes to the analyses.

Asset Quality

Nonperforming assets, which are comprised of nonperforming loans and real estate owned, were $159.9 million at September 30, 2009, or 4.93% of total assets, up $19.9 million from $140.0 million, or 4.11% of total assets at June 30, 2009. Nonperforming loans were $126.7 million at September 30, 2009, or 5.17% of total loans, up $23.5 million from $103.2 million, or 4.18% of total loans at June 30, 2009. Real estate owned was $33.1 million at September 30, 2009, down $3.7 million from $36.8 million at June 30, 2009. First Place works with borrowers to avoid foreclosure if at all possible. Furthermore, if it becomes inevitable that a borrower will not be able to retain ownership of their property, First Place often seeks a deed in lieu of foreclosure in order to gain control of the property earlier in the recovery process. This strategy of pursuing deeds in lieu of foreclosure more aggressively should result in a significant reduction in the holding period for nonperforming assets and ultimately reduce economic losses. Single family residential properties represented $17.2 million of the $33.1 million balance of real estate owned at September 30, 2009.

Net charge-offs were $11.4 million in the current quarter, which was a decrease of $4.4 million from net charge-offs of $15.8 million in the quarter ended June 30, 2009. The current quarter net charge-offs consisted of $7.0 million in commercial loans, $3.1 million in mortgage and construction loans and $1.3 million in consumer loans. Management performs an ongoing assessment of the overall credit risk within the loan portfolio. This assessment provides an analysis of the estimated probable credit losses that could be incurred in the loan portfolio. Based on this analysis, a provision for loan losses of $22.5 million was recorded for the quarter ended September 30, 2009. That provision represents a $15.1 million increase over the provision of $7.4 million recorded in the quarter ended September 30, 2008 and a $2.9 million increase from the provision of $19.6 million recorded in the quarter ended June 30, 2009. The allowance for loan losses increased to $50.6 million at September 30, 2009, from $39.6 million at June 30, 2009 and $31.4 million at September 30, 2008. The ratio of the allowance for loan losses to total loans was 2.07% at September 30, 2009, compared with 1.60% at June 30, 2009 and 1.19% at September 30, 2008. The allowance for loan losses to nonperforming loans was 39.96% at September 30, 2009, up from 38.34% at June 30, 2009. Of the total nonperforming loans at September 30, 2009, 85% were secured by real estate. Real estate loans are generally well secured and if these loans do default, the majority of the loan balance is recovered by liquidating the real estate.

Mr. Lewis commented, "From the beginning of this current credit cycle, we have been aggressively dealing with our most problematic assets, including heavier scrutiny of our more significant commercial relationships. This loan level visibility has allowed us to react quickly and minimize losses. While we continue to believe that our commercial portfolio will remain under pressure, we remain confident that the risks in our loan portfolios are manageable. With both the national and local unemployment beginning to level off, it is our hope that this small indication of improvement translates into reduced credit quality concerns in the near future. In the meantime, we will continue to seek opportunities to accelerate the resolution of problem credits and maintain a strong allowance for loan losses which will position the Company for its return to profitability."

Balance Sheet Activity

Assets were $3.245 billion at September 30, 2009, compared with $3.404 billion at June 30, 2009, a decrease of $159 million or 4.7%. The decrease in assets was primarily due to decreases of $91 million in loans held for sale, $31 million in cash and due from banks and $19 million in portfolio loans. Total portfolio loans were $2.450 billion at September 30, 2009. During the current quarter, consumer loans decreased $12 million or 3.1%, to $361 million, mortgage and construction loans decreased $6 million to $845 million and commercial loans decreased $1 million to $1.243 billion. Commercial loans now account for 50.8% of the loan portfolio, up from 50.4% at June 30, 2009. Loans held for sale decreased to $286 million at September 30, 2009, primarily due to the sale of the prior quarter's higher volume of refinanced loans and a decrease in the volume of loans originated during the current quarter.

Deposits totaled $2.331 billion at September 30, 2009, a decrease of $105 million since June 30, 2009. The decrease in deposits was primarily due to a decrease of $60 million in deposits from our retail branch network and a net decrease of $45 million in brokered certificates of deposit and public funds of the state of Ohio. The significant reduction in certificates of deposit has improved the mix of deposits as certificates of deposit make up 50.3% of total deposits at September 30, 2009 down from 54.7%. Total borrowings decreased $35 million to $623 million at September 30, 2009, compared with $658 million at June 30, 2009.

At September 30, 2009, total equity was $278 million, down $3 million from $281 million at June 30, 2009. The decrease was primarily due to the net loss of $6 million and $1 million in preferred stock dividends, partially offset by a $4 million increase in unrealized net gains on the securities portfolio. Total equity to total assets was 8.57% at September 30, 2009, up from 8.27% at June 30, 2009. Tangible equity to tangible assets was 8.27% at September 30, 2009, up from 7.96% at June 30, 2009. Bank-level total risk-based capital reached 12.67% at September 30, 2009 up from 12.37% at June 30, 2009 and well above the 10.00% required to be well capitalized for regulatory purposes. First Place Bank currently exceeds the well capitalized requirements by $63 million. During the quarter ended March 31, 2009, the Company received $73 million in the U.S. Treasury's Capital Purchase Program funds to strengthen total equity and invested $31 million of the funds directly into First Place Bank. First Place Bank was well capitalized under regulatory capital standards prior to the receipt of the U.S. Treasury's Capital Purchase Program funds and has continued to be well capitalized since then through September 30, 2009.

Mr. Lewis noted, "With the recent and dramatic disruption in the capital markets and the related tightening of credit nationwide, we have carefully monitored and maintained appropriate levels of both liquidity and capital. In this environment, it is imperative that we strike a careful balance between managing risk effectively and doing our part to help the communities we serve regain their financial viability. These times are certainly challenging, but I remain confident in the ability of First Place to come out of this cycle better positioned to compete and perform."

Board Actions

At its regular meeting held on October 20, 2009, the Board of Directors decided to not declare a dividend. Mr. Lewis stated, "We understand the importance of our dividend to our common shareholders, and we did not take this decision lightly. The Board of Directors and management believe this action is prudent and proactive given the near-term challenges in today's economic environment. This decision was based on our current level of earnings, our perception of the need for capital to weather the economic storm and our desire to build capital to retire our preferred stock as soon as possible. Our capital ratios remain strong and we will work to make sure they remain strong."

Conference Call

Steven R. Lewis, Chief Executive Officer of First Place Financial Corp., and David W. Gifford, Chief Financial Officer, along with members of the Company's executive team, will provide an overview of first quarter fiscal 2010 performance and business highlights in a conference call and simultaneous webcast to be held at 10 a.m. eastern time, Wednesday, October 28, 2009. The conference call can be accessed by dialing 877-407-0783 or 201-689-8564. The webcast can be accessed live at the Company's website, www.firstplacebank.com, along with the release and supporting financial information. The event will be archived on the First Place website for one month. In addition, the recorded version of the conference call can be accessed by phone from 12 p.m. eastern time, October 28, 2009 through midnight November 11, 2009 by dialing 877-660-6853 Account #286, ID #334401.

About First Place Financial Corp.

First Place Financial Corp. is a $3.2 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 its principal subsidiary, 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., Title Works Agency, LLC and APB Financial Group, Ltd. Information about First Place Financial Corp. may be found on the Company's web site: www.firstplacebank.com.

Explanation of Certain Non-GAAP Measures

This press release contains certain financial information determined by methods other than in accordance with GAAP. Specifically, we have provided financial measures that are based on core earnings rather than net income. Ratios and other financial measures with the word "core" in their title were computed using core earnings rather than net income. Core earnings excludes merger, integration and restructuring expense; extraordinary income or expense; income or expense from discontinued operations; and income, expense, gains and losses that are not reflective of ongoing operations or that we do not expect to reoccur. Similarly, core noninterest expense or core noninterest income exclude the pre-tax impact of those same items that impact noninterest income or noninterest expense. We believe that this information is useful to both investors and to management and can aid them in understanding the Company's current performance, performance trends and financial condition. While core earnings can be useful in evaluating current performance and projecting current trends into the future, we do not believe that core earnings are a substitute for GAAP net income. We encourage investors and others to use core earnings as a supplemental tool for analysis and not as a substitute for GAAP net income. Our non-GAAP measures may not be comparable to the non-GAAP measures of other companies. In addition, future results of operations may include nonrecurring items that would not be included in core earnings. Reconciliation from GAAP net income to the non-GAAP measure of core earnings is shown in the consolidated financial highlights on page nine.

Forward-Looking Statements

When used in this press release, or future press releases or other public or shareholder communications, in filings by 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 such as "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "believe," "should," "may," "will," "plan," or variations of such terms 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.

 FIRST PLACE FINANCIAL CORP.                                           
 CONSOLIDATED STATEMENTS OF INCOME                                     
 (Unaudited)                                                           
                                                                       
                                          Three months ended           
                                             September 30,             
 (Dollars in thousands,               ------------------------ Percent 
  except share data)                       2009         2008    Change 
 --------------------------------------------------------------------- 
                                                                       
 Interest income                      $    40,902  $    44,460   (8.0)%
 Interest expense                          15,344       21,505  (28.6) 
                                      ------------------------         
    Net interest income                    25,558       22,955   11.3  
                                                                       
 Provision for loan losses                 22,500        7,351  206.1  
                                      ------------------------         
 Net interest income after provision                                   
  for loan losses                           3,058       15,604  (80.4) 
                                                                       
 Noninterest income                                                    
  Service charges on deposit accounts       3,149        2,142   47.0  
  Net gains on sale of securities               -          319 (100.0) 
  Change in fair value of securities          400       (9,320)   N/M  
  Mortgage banking gains                    3,908        1,775  120.2  
  Gain on sale of loan servicing                                       
   rights                                     689           --    N/M  
  Loan servicing income (loss)                152          (44)   N/M  
  Other income - bank                       1,623        1,689   (3.9) 
  Insurance commission income               1,289          933   38.2  
  Other income - nonbank                      532          908  (41.4) 
                                      ------------------------         
    Total noninterest income               11,742       (1,598)   N/M  
                                                                       
 Noninterest expense                                                   
  Salaries and employee benefits            9,970       10,627   (6.2) 
  Occupancy and equipment                   3,581        3,399    5.4  
  Professional fees                         1,045          845   23.7  
  Loan expenses                             1,827          727  151.3  
  Marketing                                   390          578  (32.5) 
  Federal deposit insurance premiums        1,443          108    N/M  
  Merger, integration and                                              
   restructuring                              297           45    N/M  
  Amortization of intangible assets           749          806   (7.1) 
  Real estate owned expense                 1,068        1,080   (1.1) 
  Other expense                             3,955        3,145   25.8  
                                      ------------------------         
    Total noninterest expense              24,325       21,360   13.9  
                                                                       
 Loss before income tax benefit            (9,525)      (7,354)   N/M  
  Income tax benefit                       (3,611)      (1,195)   N/M  
                                      ------------------------         
 Net loss                                  (5,914)      (6,159)   N/M  
  Preferred stock dividends and 
   discount accretion                       1,091           --    N/M  
                                      ------------------------         
 Net loss attributable to common                                       
  shareholders                        $    (7,005) $    (6,159)   N/M  
                                      ========================         
 SHARE DATA:                                                           
 Basic loss per common share          $     (0.42) $     (0.37)   N/M  
 Diluted loss per common share        $     (0.42) $     (0.37)   N/M  
 Cash dividends per common share      $      0.01  $     0.085  (88.2) 
 Average common shares outstanding -                                  
  basic                                16,593,499   16,547,160    0.3  
 Average common shares outstanding -                                  
  diluted                              16,593,499   16,547,160    0.3  
                                                                       
 N/M - Not meaningful

 FIRST PLACE FINANCIAL CORP.                                          
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                       
                                                                      
                 Sept. 30,  June 30,  March 31,   Dec. 31,  Sept. 30, 
                   2009       2009      2009        2008      2008   
                ------------------------------------------------------
 (Dollars in                                                          
   thousands)   (Unaudited)          (Unaudited)(Unaudited)(Unaudited)
 ---------------------------------------------------------------------
                                                                      
 ASSETS                                                               
  Cash and due                                                        
   from banks   $   34,869 $   38,321 $   70,564 $   38,647 $   65,444
  Interest-                                                           
   bearing                                                            
   deposits in                                                        
   other banks      28,595     56,614    111,376     74,494      5,992
  Federal funds                                                       
   sold                 --         --     41,000         --        150
  Securities,                                                         
   at fair value   276,470    276,600    287,719    283,097    278,989
  Loans held for                                                      
   sale, at fair                                                      
   value           285,760    376,406    160,165     96,851     66,039
  Loans                                                               
    Mortgage and                                                      
     construc-                                                        
     tion          845,421    851,281    886,805    954,660    989,003
    Commercial   1,243,408  1,244,515  1,258,784  1,265,165  1,245,998
    Consumer       361,108    372,648    383,640    393,630    395,942
                ---------- ---------- ---------- ---------- ----------
      Total                                                           
       loans     2,449,937  2,468,444  2,529,229  2,613,455  2,630,943
    Less                                                              
     allowance                                                        
     for loan                                                         
     losses         50,643     39,580     35,766     33,577     31,428
                ---------- ---------- ---------- ---------- ----------
      Loans,                                                          
       net       2,399,294  2,428,864  2,493,463  2,579,878  2,599,515
  Federal Home                                                        
   Loan Bank                                                          
   stock            35,041     36,221     36,221     36,221     36,221
  Premises and                                                        
   equipment,                                                         
   net              51,352     52,222     38,561     40,454     40,328
  Premises held                                                       
   for sale, net        --         --     14,739     13,333     13,491
  Goodwill             885        885        909         --     93,741
  Core deposit                                                        
   and other                                                          
   intangibles       9,891     10,639     11,380     11,979     12,767
  Real estate                                                         
   owned            33,123     36,790     34,969     34,801     26,573
  Other assets      90,102     90,905     84,304     74,527     76,703
                ---------- ---------- ---------- ---------- ----------
      Total                                                           
       assets   $3,245,382 $3,404,467 $3,385,370 $3,284,282 $3,315,953
                ========== ========== ========== ========== ==========
                                                                      
 LIABILITIES                                                          
  Deposits                                                            
   Noninterest-                                                       
    bearing                                                           
    checking    $  236,378 $  238,417 $  230,968 $  227,434 $  222,305
   Interest-                                                          
    bearing                                                           
    checking       180,106    173,376    166,394    160,274    158,298
   Savings         406,434    400,424    399,343    393,070    438,410
   Money                                                              
    markets        335,116    291,131    283,927    285,615    305,320
   Certificates                                                       
    of deposit   1,172,835  1,332,253  1,468,643  1,474,557  1,281,294
                ---------- ---------- ---------- ---------- ----------
     Total                                                            
      deposits   2,330,869  2,435,601  2,549,275  2,540,950  2,405,627
  Short-term                                                          
   borrowings      288,292    323,458    170,946    142,454    156,173
  Long-term debt   335,162    335,159    337,092    364,269    414,448
  Other                                                               
   liabilities      12,821     28,770     33,681     18,752     28,790
                ---------- ---------- ---------- ---------- ----------
     Total                                                            
      liabil-                                                         
      ities      2,967,144  3,122,988  3,090,994  3,066,425  3,005,038
                                                                      
 SHAREHOLDERS'                                                        
  EQUITY           278,238    281,479    294,376    217,857    310,915
                ---------- ---------- ---------- ---------- ----------
     Total                                                            
      liabil-                                                         
      ities                                                           
      and                                                             
      share-                                                          
      holders                                                         
      equity    $3,245,382 $3,404,467 $3,385,370 $3,284,282 $3,315,953
                ========== ========== ========== ========== ==========

 FIRST PLACE FINANCIAL CORP.
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 (Unaudited)

   

                          As of or for the three months ended
 (Dollars in      9/30/09    6/30/09     3/31/09   12/31/08    9/30/08
  thousands      ------------------------------------------------------
  except          1st Qtr    4th Qtr     3rd Qtr    2nd Qtr    1st Qtr
  per share data) FY 2010    FY 2009     FY 2009    FY 2009    FY 2009
 ----------------------------------------------------------------------

 RESULTS OF
 OPERATIONS
  (GAAP)
   Fully tax
    equivalent
    net
    interest
    income      $   25,907     24,016     22,038     21,712     23,358
   Net
    interest
    income      $   25,558     23,651     21,685     21,303     22,955
   Noninterest
    income      $   11,742      8,455     11,136      4,543     (1,598)
   Noninterest
    expense     $   24,325     31,000     23,000    116,599     21,360

   Pre-tax,
    pre-
    provision
    income      $   12,975      1,106      9,821    (90,753)        (3)
   Provision
    for loan
    losses      $   22,500     19,620      6,797      9,216      7,351
   Net income
    (loss)      $   (5,914)   (12,719)     2,541    (94,097)    (6,159)
   Net income
    (loss)
    attributable
    to common
    share-
    holders     $   (7,005)   (13,800)     2,325    (94,097)    (6,159)
   Basic
    earnings
    (loss) per
    common
    share       $    (0.42)     (0.83)      0.14      (5.68)     (0.37)
   Diluted
    earnings
    (loss) per
    common
    share       $    (0.42)     (0.83)      0.14      (5.68)     (0.37)

 PERFORMANCE
  RATIOS (GAAP)
  (annualized)
   Return on
    average
    assets           (0.73)%    (1.52)%     0.31%    (11.14)%    (0.74)%
   Return on
    average
    equity           (8.38)%   (17.61)%     4.46%   (121.96)%    (7.74)%
   Return on
    average
    tangible
    assets           (0.73)%    (1.53)%     0.31%    (11.50)%    (0.76)%
   Return on
    average
    tangible
    equity           (8.72)%   (18.36)%     4.71%   (185.71)%   (11.71)%
   Net interest
    margin,
    fully tax
    equivalent        3.38%      3.06%      2.85%      2.81%      3.07%
   Efficiency
    ratio            64.61%     95.47%     69.33%    444.98%     98.16%
   Noninterest
    expense to
    average
    assets            2.99%      3.72%      2.80%     13.81%      2.56%

 RECONCILIATION
  OF NET INCOME
  (LOSS) TO
  CORE EARNINGS
  (LOSS)
   Net income
    (loss)      $   (5,914)   (12,719)     2,541    (94,097)    (6,159)
   Merger,
    integration
    and
    re-
    structuring,
    net of tax  $      193         16         --        692         29
   Goodwill
    impairment,
    net of tax  $       --         --         --     92,139         --
   Core
    earnings
    (loss)      $   (5,721)   (12,703)     2,541     (1,266)    (6,130)
   Core
    earnings
    (loss)
    attributable
    to common
    shareholders$   (6,812)   (13,784)     2,325     (1,266)    (6,130)

 CORE EARNINGS
  (LOSS)
   Core
    earnings
    (loss)
    attributable
    to common
    shareholders$   (6,812)   (13,784)     2,325     (1,266)    (6,130)
   Core basic
    earnings
    (loss) per
    common
    share       $    (0.41)     (0.83)      0.14      (0.08)     (0.37)
   Core diluted
    earnings
    (loss) per
    common
    share       $    (0.41)     (0.83)      0.14      (0.08)     (0.37)

 CORE
  PERFORMANCE
  RATIOS
  (annualized)
   Core return
    on average
    assets           (0.70)%    (1.52)%     0.31%     (0.15)%    (0.73)%
   Core return
    on average
    equity           (8.10)%   (17.58)%     4.46%     (1.64)%    (7.71)%
   Core return
    on average
    tangible
    assets           (0.70)%    (1.53)%     0.31%     (0.15)%    (0.76)%
   Core return
    on average
    tangible
    equity           (8.44)%   (18.34)%     4.71%     (2.50)%   (11.65)%
   Core net
    interest
    margin,
    fully tax
    equivalent        3.38%      3.06%      2.85%      2.81%      3.07%
   Core
    efficiency
    ratio            63.82%     95.39%     69.33%     83.00%     97.95%
   Core
    noninterest
    expense to
    average
    assets            2.95%      3.71%      2.80%      2.58%      2.56%

 FIRST PLACE FINANCIAL CORP
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 (Unaudited)

    

                          As of or for the three months ended
 (Dollars in      9/30/09    6/30/09     3/31/09   12/31/08    9/30/08
  thousands      ------------------------------------------------------
  except per      1st Qtr    4th Qtr     3rd Qtr    2nd Qtr    1st Qtr
  share data)     FY 2010    FY 2009     FY 2009    FY 2009    FY 2009
 ----------------------------------------------------------------------
 CAPITAL
   Total equity
    to total
    assets at
    end of
    period            8.57%      8.27%      8.70%      6.63%      9.38%
   Tangible
    total
    equity to
    tangible
    assets at
    end of
    period            8.27%      7.96%      8.36%      6.29%      6.37%
   Book value
    per common
    share       $    12.31      12.51      13.27      12.84      18.32
   Tangible
    book value
    per common
    share       $    11.68      11.83      12.55      12.13      12.04
   Period-end
    market
    value per
    common
    share       $     2.95       3.11       3.36       3.83      12.85
   Dividends
    declared
    per common
    share       $     0.01       0.01       0.01      0.085      0.085
   Period-end
    common
    shares
    outstanding
    (000)           16,973     16,973     16,973     16,973     16,973
   Average
    basic
    common
    shares
    outstanding
    (000)           16,593     16,580     16,569     16,558     16,547
   Average
    diluted
    common
    shares
    outstanding
    (000)           16,593     16,580     16,569     16,558     16,547

 ASSET QUALITY
   Net
    charge-offs $   11,437     15,805      4,609      7,066      4,140
   Annualized
    net
    charge-offs
    to average
    loans             1.85%      2.52%      0.72%      1.07%      0.63%
   Non-
    performing
    loans       $  126,740    103,228     69,190     66,951     62,860
   Non-
    performing
    loans to
    total loans       5.17%      4.18%      2.74%      2.56%      2.39%
   Non-
    performing
    assets      $  159,863    140,018    104,159    101,752     89,433
   Non-
    performing
    assets to
    total
    assets            4.93%      4.11%      3.08%      3.10%      2.70%
   Allowance
    for loan
    losses      $   50,643     39,580     35,766     33,577     31,428
   Allowance
    for loan
    losses to
    total loans       2.07%      1.60%      1.41%      1.28%      1.19%
   Allowance
    for loan
    losses to
    non-
    performing
    loans            39.96%     38.34%     51.69%     50.15%     50.00%

 MORTGAGE
  BANKING
   Mortgage
    origin-
    ations      $  457,964    636,561    717,403    291,765    263,900
   Mortgage
    banking
    gains       $    3,908      3,772      6,812      2,106      2,064
   Mortgage
    servicing
    portfolio   $2,340,400  2,052,135  1,833,518  1,549,536  1,498,521
   Mortgage
    servicing
    rights      $   22,964     20,114     16,994     13,636     14,457
   Mortgage
    servicing
    rights
    valuation
    (loss)
    recovery    $     (112)       185        226     (1,071)      (292)
   Mortgage
    servicing
    rights to
    mortgage
    servicing
    portfolio         0.98%      0.98%      0.93%      0.88%      0.96%

 END OF PERIOD
  BALANCES
   Loans        $2,449,937  2,468,444  2,529,229  2,613,455  2,630,943
   Assets       $3,245,382  3,404,467  3,385,370  3,284,282  3,315,953
   Deposits     $2,330,869  2,435,601  2,549,275  2,540,950  2,405,627
   Total
    equity      $  278,238    281,479    294,376    217,857    310,915
   Tangible
    total
    equity      $  267,462    269,955    282,087    205,878    204,407
   Common
    equity      $  208,942    212,281    225,291    217,857    310,915
   Tangible
    common
    equity      $  198,166    200,757    213,002    205,878    204,407
   Loans to
    deposits
    ratio           105.11%    101.35%     99.21%    102.85%    109.37%

 AVERAGE
  BALANCES
   Loans        $2,457,983  2,520,156  2,585,519  2,622,016  2,608,491
   Earning
    assets      $3,041,204  3,145,979  3,141,122  3,063,980  3,016,618
   Assets       $3,232,235  3,346,646  3,331,969  3,350,845  3,308,996
   Deposits     $2,409,542  2,502,267  2,566,770  2,483,101  2,394,237
   Total
    equity      $  280,136    289,768    231,155    306,099    315,519
   Tangible
    total
    equity      $  268,997    277,872    218,737    201,020    208,705
   Common
    equity      $  210,867    220,607    219,640    306,099    315,519
   Tangible
    common
    equity      $  199,728    208,711    207,222    201,020    208,705

First Place Financial Corp.
Steven R. Lewis, President & CEO
David W. Gifford, CFO
(330) 373-1221