First Place Financial Corp. said this week that it has launched an audit of its 2009 results and that it now operating under a cease-and-desist order from the Office of Thrift Supervision.
The $3.1 billion-asset First Place said on Wednesday that the order calls for the thrift to maintain a leverage ratio of 8.5% and a total risk-based capital ratio of 12% by Dec. 31. At March 31, those ratios were 8.37% and 13.31% respectively, according to data from the Federal Deposit Insurance Corp. In March, the company and the thrift entered into supervisory agreement with the OTS that required First Place to draft a capital plan by June 30.
First Place, in Warren, Ohio, said in December that it would restate its results for the year ending June 30, 2010, to account for an increase in its allowance to loan losses. On Wednesday, the company said that it intends to engage KPMG LLP to complete an audit of the fiscal 2009 results, also.
The company previously reported a loss of $35.5 million for its fiscal 2010 and a $111.7 million loss for its fiscal 2009.
In the release, Steven R. Lewis, president and chief executive, said he hopes to issue its restated financial statements for 2009, 2010 and the subsequent quarters in the fall.
