YOUNGSTOWN, Ohio--(BUSINESS WIRE)--United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company of Youngstown, Ohio (Home Savings), today reported consolidated net income of $2.2 million for the three months ended December 31, 2013. The Company also reported net income of $10.0 million (before amortization of the discount on preferred stock1) for the twelve months ended December 31, 2013.
Selected results:
- Net income for 2013 was $10.0 million compared to a net loss of $20.4 million for 2012
- Noninterest expense for 2013 was $56.7 million, down 12.9% from 2012
- Delinquent loans and nonperforming assets at December 31, 2013, were down 50.5% and 54.8% respectively from December 31, 2012
- The balance of real estate owned and other repossessed assets was $6.3 million at December 31, 2013, down 65.6% from December 31, 2012
- Home Savings’ Tier 1 leverage ratio was 10.50% and the total risk based capital ratio was 19.76%
Patrick W. Bevack, President and Chief Executive Officer of the Company and Home Savings, commented, “The year 2013 represented the culmination of many years of hard effort on the part of our team and Board of Directors. Not only did we successfully complete our capital raise, but as of today, we are free of all regulatory orders and agreements.” Bevack stated, “The Company is building a solid track record of consistent earnings, having been profitable in eight of the last nine quarters, including the last five consecutive quarters. As we celebrate Home Savings’ 125th anniversary, we are excited as to what the future has to offer.”
Asset Quality
Delinquent loans continued to decline in the fourth quarter of 2013. As of December 31, 2013, delinquent loans were $23.8 million, down $24.4 million, or 50.5%, from $48.2 million at December 31, 2012. Nonperforming loans also continued to decline; as of December 31, 2013, nonperforming loans were $23.6 million, down $24.2 million, or 50.6%, from $47.8 million at December 31, 2012. Nonperforming assets were $29.9 million as of December 31, 2013, down $36.3 million, or 54.8%, from $66.2 million at December 31, 2012.
The provision for loan losses decreased to $282,000 in the fourth quarter of 2013, compared to $2.1 million in the fourth quarter of 2012. The provision for loan losses also decreased to $4.1 million in the twelve months ended December 31, 2013, compared to $39.3 million for the comparable period in 2012 (which included $30.2 million related to the bulk sale of problem assets in the third quarter of 2012, as described below).
The decrease in the provision for loan losses for the fourth quarter of 2013 as compared to the same quarter last year was the result of specific reserves set aside in one commercial lending relationship in the amount of $1.3 million in December 2012. The relationship was settled in the beginning of 2013, and the need for additional reserves was not required. The remainder of the difference is the result of fewer risk-rating changes on specific loans coupled with fewer loans charged-off in excess of reserves previously established.
The decrease in the provision for loan losses for all of 2013, as compared to all of 2012, was primarily a result of the bulk asset sale that was completed in September 2012. As a result of the sale, an additional provision of $30.2 million was required in September 2012. This was the result of loans charged-off in excess of reserves on loans included in the bulk sale. In addition, the Company recognized a recovery of $1.9 million in the third quarter of 2013 as a result of the sale of one nonperforming loan, offset by the downgrade of one commercial loan relationship resulting in a provision of $1.4 million.
The Company continued to make significant progress in the resolution of foreclosed properties in the fourth quarter of 2013. At December 31, 2012, other real estate owned and other repossessed assets (OREO) consisted of 166 properties with a book value of $18.4 million. The Company sold 19 properties totaling $2.9 million in the fourth quarter of 2013 and 136 properties totaling $10.8 million in 2013, bringing total OREO, net of inflows, to 59 properties with a net book value of $6.3 million as of December 31, 2013.
Net Interest Income
Net interest income for the three months ended December 31, 2013 and December 31, 2012 was $13.1 million and $14.0 million, respectively.
Total interest income decreased $1.5 million in the fourth quarter of 2013 compared to the fourth quarter of 2012, primarily as a result of a decrease of $68.9 million in the average balance of outstanding loans as well as a decrease in the yield on net loans of 12 basis points. Further affecting the comparison, the Company also recognized a decrease in the average balance of available for sale securities of $59.4 million in the fourth quarter of 2013 as compared to the same quarter last year, despite an increase in the yield on those assets of 11 basis points.
Total interest expense decreased $548,000 for the quarter ended December 31, 2013, as compared to the same quarter last year. The change was due primarily to reductions of $542,000 in interest paid on deposits. The overall decrease in interest expense was attributable to a planned decision to decrease certificate of deposit balances. The average outstanding balance of certificates of deposit in the fourth quarter of 2013 declined by $75.1 million as compared to the fourth quarter of 2012. Also contributing to the decrease between the two quarterly periods was a reduction of 12 basis points in the cost of certificates of deposit. Additionally, the average balance of non-time deposits decreased $6.8 million and the cost of non-time deposits decreased 8 basis points.
Net interest income for the twelve months ended December 31, 2013 and December 31, 2012 was $51.3 million and $60.4 million, respectively.
Total interest income decreased $13.7 million in 2013 compared to 2012, primarily as a result of a decrease of $216.1 million in the average balance of outstanding loans. Home Savings also experienced a decrease in the yield on net loans of 22 basis points. Further affecting the comparison, the Company also recognized a decrease in the yield on available for sale securities of 30 basis points despite an increase in the average balance of available for sale securities of $51.8 million in 2013 as compared to the same period last year.
Total interest expense decreased $4.6 million for the twelve months ended December 31, 2013, as compared to the same period last year. The change was due primarily to reductions of $4.3 million in interest paid on deposits. The overall decrease in deposit interest expense was attributable to a shift in deposit balances from certificates of deposit to relatively less expensive non-time deposits. Between December 31, 2012, and December 31, 2013, the average outstanding balance of certificates of deposit declined by $122.3 million, while non-time deposits increased by $14.9 million. Also contributing to the decrease in interest expense was a reduction of 33 basis points in the cost of certificates of deposit, along with a decrease in the cost of non-time deposits of nine basis points.
Noninterest Income
Noninterest income in the fourth quarter of 2013 was $4.1 million, as compared to noninterest income for the fourth quarter of 2012 of $6.9 million. Decreased noninterest income was a result of lower gains recognized on the sale of securities available for sale. There was minimal sales activity during the fourth quarter of 2013, as compared to gains recognized on the sale of securities available for sale of $1.2 million in the fourth quarter of 2012. Also affecting the comparison, Home Savings recognized $1.3 million less in mortgage banking income in the fourth quarter of 2013 as compared to the same quarter in 2012. Lower mortgage banking income was the result of a lower volume of loans originated for sale during the quarter ended December 31, 2013, as compared to the same quarter in 2012. These reductions in noninterest income for the fourth quarter of 2013 as compared to the fourth quarter of 2012 were further impacted by a recovery $1.3 million on mortgage servicing rights recognized in fourth quarter of 2012 compared to a recovery of $4,000 in the fourth quarter of 2013. These changes were partially offset by a reduction of $529,000 in losses recognized on the valuation and disposal of OREO.
Noninterest income decreased in 2013 to $19.7 million, as compared to $22.7 million in 2012. Lower gains on the sale of securities accounted for the change. During 2013, $2.6 million in net gains on the sale of available for sale securities were recognized as compared to $6.3 million during 2012. Additionally, Home Savings recognized a reduction in mortgage banking income of $2.6 million. Partially offsetting these declines were increases in other income due to recoveries of $628,000 in interest rate caps during 2013 compared to establishment of a valuation reserve of $979,000 in 2012. Furthermore, Home Savings incurred a reduction of $2.0 million in the valuation and disposition of real estate owned and other repossessed assets in 2013 as compared to 2012.
Noninterest Expense
Noninterest expense was $15.0 million in the fourth quarter of 2013, compared to $14.3 million in the fourth quarter of 2012. In the fourth quarter of 2013, other expenses increased because of reserves established in December 2013 for potential buy-back and make-whole provisions on loans sold to government agencies in the secondary market. Partially offsetting this increase were lower legal and consulting fees during the quarter ended December 31, 2013, as compared to the same quarter last year.
Noninterest expense was $56.7 million in 2013, compared to $65.2 million in 2012, a decrease of 12.9%. Deposit insurance premiums were $1.9 million lower in 2013 due to Home Savings being able to avail itself of more favorable insurance rates and a lower average asset base used in the calculation of insurance premiums. Expenses for the maintenance and real estate taxes on OREO properties declined $293,000 for 2013 as compared to 2012. Professional fees were $2.4 million lower during the twelve months ended December 31, 2013 as compared to the same period last year. The improvement in asset quality has reduced the need to engage legal counsel and other consultants to assist in the resolution of problem assets. Lastly, prepayment penalties of $803,000 incurred on the early payoff of FHLB advances in 2012 were not a recurring expenditure in 2013.
Capital and Book Value per Common Share
Home Savings’ Tier 1 leverage ratio was 10.50% as of December 31, 2013, as compared to 8.70% as of December 31, 2012. Home Savings’ total risk-based capital ratio was 19.76% at December 31, 2013, as compared to 16.21% at December 31, 2012. Home Savings is considered well capitalized. Tangible book value per common share at December 31, 2013 was $3.47, as compared to $5.16 at December 31, 2012. Book value per share at December 31, 2013 was affected by two items that took place in 2013: the $48.4 million unrealized loss on available for sale securities at December 31, 2013 and the dilutive effect of the capital raise that took place in the first half of 2013, in which the Company issued 17.1 million shares in exchange for net proceeds of $42.3 million.
As of December 31, 2013, the net deferred tax asset (DTA), before valuation allowance, was $42.8 million compared to $28.8 million at December 31, 2012. The primary cause of the change in the net DTA at December 31, 2013 was the tax effect of the unrealized loss on available for sale securities. The Company has established a full valuation allowance against the entire net DTA. Management will continue to conduct a regular assessment of the need to maintain a full valuation allowance against its deferred tax asset. To that end, management will continue to apply its judgment in weighing positive and negative evidence in anticipation of the ultimate reversal of the deferred tax asset valuation allowance.
Home Savings is a wholly-owned subsidiary of the Company and operates 33 full-service banking offices and ten loan production offices located throughout Ohio and western Pennsylvania. Additional information on the Company and Home Savings may be found on the Company’s web site: www.ucfconline.com.
When used in this press release, the words or phrases “believes,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “will have” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake, and specifically disclaims any obligation, to release publicly 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.
_____________
(1) As part of the capital raise that was completed in the second quarter of 2013, we issued preferred stock that was later converted to common stock. Management believes that the presentation of net income before amortization of the discount on preferred stock provides useful information to investors about the Company’s financial condition and results of operation because the preferred stock was later converted to common stock and no dividend was declared or paid on the preferred stock. However, because the preferred stock was issued at a price below the then market price of our common stock, the difference is deemed a non-cash dividend under U.S. Generally Accepted Accounting Principles and is deducted in the calculation of net income available to common shareholders. Please refer to Note 23 of the Consolidated Financial Statements found in the Company’s Form 10-K for the period ended December 31, 2013 for further detail.
| UNITED COMMUNITY FINANCIAL CORP. | |||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||
| (Unaudited) | |||||||||
| December 31, | December 31, | ||||||||
| 2013 | 2012 | ||||||||
| (Dollars in thousands) | |||||||||
| Assets: | |||||||||
| Cash and deposits with banks | $ | 20,937 | $ | 26,041 | |||||
| Federal funds sold | 56,394 | 16,572 | |||||||
| Total cash and cash equivalents | 77,331 | 42,613 | |||||||
| Securities: | |||||||||
| Available for sale, at fair value | 511,006 | 574,562 | |||||||
| Loans held for sale | 4,838 | 13,031 | |||||||
| Loans, net of allowance for loan losses of $21,116 and $21,130 | 1,029,192 | 1,066,240 | |||||||
| Federal Home Loan Bank stock, at cost | 26,464 | 26,464 | |||||||
| Premises and equipment, net | 20,924 | 21,549 | |||||||
| Accrued interest receivable | 5,694 | 6,238 | |||||||
| Real estate owned and other repossessed assets | 6,341 | 18,440 | |||||||
| Core deposit intangible | 152 | 238 | |||||||
| Cash surrender value of life insurance | 44,972 | 28,881 | |||||||
| Other assets | 10,936 | 10,109 | |||||||
| Total assets | $ | 1,737,850 | $ | 1,808,365 | |||||
| Liabilities and Shareholders' Equity | |||||||||
| Liabilities: | |||||||||
| Deposits: | |||||||||
| Interest bearing | $ | 1,221,162 | $ | 1,302,307 | |||||
| Non-interest bearing | 170,590 | 159,767 | |||||||
| Total deposits | 1,391,752 | 1,462,074 | |||||||
| Borrowed funds: | |||||||||
| Federal Home Loan Bank advances | 50,000 | 50,000 | |||||||
| Repurchase agreements and other | 90,578 | 90,598 | |||||||
| Total borrowed funds | 140,578 | 140,598 | |||||||
| Advance payments by borrowers for taxes and insurance | 20,060 | 23,590 | |||||||
| Accrued interest payable | 550 | 563 | |||||||
| Accrued expenses and other liabilities | 9,836 | 10,780 | |||||||
| Total liabilities | 1,562,776 | 1,637,605 | |||||||
| Shareholders' Equity: | |||||||||
| Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding | - | - | |||||||
|
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 and 37,804,457 shares, respectively, issued and 50,339,089 and 33,027,886 shares, respectively, outstanding |
174,719 | 128,026 | |||||||
| Retained earnings | 81,515 | 86,345 | |||||||
| Accumulated other comprehensive income (loss) | (41,665 | ) | 6,682 | ||||||
| Treasury stock, at cost, 3,799,821 and 4,776,571 shares, respectively | (39,495 | ) | (50,293 | ) | |||||
| Total shareholders’ equity | 175,074 | 170,760 | |||||||
| Total liabilities and shareholders’ equity | $ | 1,737,850 | $ | 1,808,365 | |||||
| UNITED COMMUNITY FINANCIAL CORP. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||||
| 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Loans | $ | 12,657 | $ | 12,233 | $ | 13,862 | $ | 49,724 | $ | 63,044 | |||||||||||||
| Loans held for sale | 63 | 80 | 119 | 310 | 424 | ||||||||||||||||||
| Securities: | |||||||||||||||||||||||
| Available for sale | 3,278 | 3,364 | 3,488 | 13,454 | 13,741 | ||||||||||||||||||
| Federal Home Loan Bank stock dividends | 267 | 280 | 316 | 1,107 | 1,175 | ||||||||||||||||||
| Other interest earning assets | 47 | 52 | 12 | 149 | 60 | ||||||||||||||||||
| Total interest income | 16,312 | 16,009 | 17,797 | 64,744 | 78,444 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Deposits | 1,780 | 1,847 | 2,322 | 7,623 | 11,896 | ||||||||||||||||||
| Federal Home Loan Bank advances | 530 | 529 | 535 | 2,106 | 2,415 | ||||||||||||||||||
| Repurchase agreements and other | 928 | 929 | 929 | 3,684 | 3,695 | ||||||||||||||||||
| Total interest expense | 3,238 | 3,305 | 3,786 | 13,413 | 18,006 | ||||||||||||||||||
| Net interest income | 13,074 | 12,704 | 14,011 | 51,331 | 60,438 | ||||||||||||||||||
| Provision for loan losses | 282 | 657 | 2,102 | 4,116 | 39,325 | ||||||||||||||||||
| Net interest income after provision for loan losses | 12,792 | 12,047 | 11,909 | 47,215 | 21,113 | ||||||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Non-deposit investment income | 373 | 275 | 373 | 1,562 | 1,898 | ||||||||||||||||||
| Service fees and other charges | |||||||||||||||||||||||
| Mortgage servicing fees | 704 | 702 | 470 | 2,808 | 2,808 | ||||||||||||||||||
| Deposit related fees | 1,499 | 1,471 | 1,427 | 5,564 | 5,449 | ||||||||||||||||||
| Mortgage servicing rights valuation | 4 | 30 | 1,335 | 680 | 1,105 | ||||||||||||||||||
| Mortgage servicing rights amortization | (431 | ) | (482 | ) | (443 | ) | (2,143 | ) | (2,584 | ) | |||||||||||||
| Other service fees | - | 13 | 5 | 74 | 27 | ||||||||||||||||||
| Net gains (losses): | |||||||||||||||||||||||
| Securities available for sale | (1 | ) | - | 1,164 | 2,577 | 6,325 | |||||||||||||||||
| Other -than-temporary loss on equity securities | |||||||||||||||||||||||
| Total impairment loss | - | - | (13 | ) | - | (13 | ) | ||||||||||||||||
| Loss recognized in other comprehensive income | - | - | - | - | - | ||||||||||||||||||
| Net impairment loss recognized in earnings | - | - | (13 | ) | - | (13 | ) | ||||||||||||||||
| Mortgage banking income | 850 | 895 | 2,083 | 4,777 | 7,391 | ||||||||||||||||||
| Real estate owned and other repossessed assets charges, net | (215 | ) | (395 | ) | (744 | ) | (2,181 | ) | (4,191 | ) | |||||||||||||
| Card fees | 850 | 821 | 642 | 3,584 | 3,256 | ||||||||||||||||||
| Other income | 491 | 218 | 640 | 2,447 | 1,260 | ||||||||||||||||||
| Total non-interest income | 4,124 | 3,548 | 6,939 | 19,749 | 22,731 | ||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Salaries and employee benefits | 7,374 | 7,379 | 7,253 | 29,913 | 32,934 | ||||||||||||||||||
| Occupancy | 906 | 811 | 849 | 3,390 | 3,344 | ||||||||||||||||||
| Equipment and data processing | 1,863 | 1,698 | 1,821 | 7,103 | 6,895 | ||||||||||||||||||
| Franchise tax | 351 | 385 | 445 | 1,567 | 1,841 | ||||||||||||||||||
| Advertising | 247 | 226 | 292 | 893 | 778 | ||||||||||||||||||
| Amortization of core deposit intangible | 20 | 20 | 25 | 86 | 108 | ||||||||||||||||||
| Prepayment penalty | - | - | - | - | 803 | ||||||||||||||||||
| Deposit insurance premiums | 592 | 598 | 1,026 | 2,347 | 4,202 | ||||||||||||||||||
| Other insurance premiums | 137 | 174 | 116 | 662 | 636 | ||||||||||||||||||
| Professional fees | |||||||||||||||||||||||
| Legal and consulting fees | 264 | 368 | 596 | 688 | 2,340 | ||||||||||||||||||
| Other professional fees | 609 | 393 | 608 | 2,228 | 3,002 | ||||||||||||||||||
| Real estate owned and other repossessed asset expenses | 310 | 354 | 239 | 1,450 | 1,743 | ||||||||||||||||||
| Other expenses | 2,304 | 1,122 | 1,032 | 6,410 | 6,543 | ||||||||||||||||||
| Total non-interest expenses | 14,977 | 13,528 | 14,302 | 56,737 | 65,169 | ||||||||||||||||||
| Income before income taxes | 1,939 | 2,067 | 4,546 | 10,227 | (21,325 | ) | |||||||||||||||||
| Income tax expense | (300 | ) | 350 | 1,950 | 200 | (888 | ) | ||||||||||||||||
| Net income | 2,239 | 1,717 | 2,596 | 10,027 | (20,437 | ) | |||||||||||||||||
| Amortization of discount on preferred stock | - | - | - | (6,751 | ) | - | |||||||||||||||||
| Earnings (loss) available to common shareholders | $ | 2,239 | $ | 1,717 | $ | 2,596 | $ | 3,276 | $ | (20,437 | ) | ||||||||||||
| Earnings (loss) per common share | |||||||||||||||||||||||
| Basic | $ | 0.04 | $ | 0.03 | $ | 0.08 | $ | 0.07 | $ | (0.62 | ) | ||||||||||||
| Diluted | 0.04 | 0.03 | 0.08 | 0.07 | (0.62 | ) | |||||||||||||||||
| UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||
| (Unaudited) | ||||||||||||
| At or for the quarters ended | ||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||
| (In thousands, except per share data) | ||||||||||||
| Financial Data | ||||||||||||
| Total assets | $ 1,737,850 | $ 1,756,202 | $ 1,787,071 | $ 1,831,776 | $ 1,808,365 | |||||||
| Total loans, net | 1,029,192 | 1,009,029 | 1,008,843 | 1,034,415 | 1,066,240 | |||||||
| Total securities | 511,006 | 542,811 | 555,188 | 602,107 | 574,562 | |||||||
| Total deposits | 1,391,752 | 1,410,610 | 1,433,815 | 1,460,960 | 1,462,074 | |||||||
| Total shareholders' equity | 175,074 | 183,322 | 183,759 | 206,511 | 170,760 | |||||||
| Net interest income | 13,074 | 12,704 | 12,636 | 12,917 | 14,011 | |||||||
| Provision for loan losses | 282 | 657 | 1,113 | 2,064 | 2,102 | |||||||
| Noninterest income, excluding other-than-temporary impairment losses | 4,124 | 3,548 | 6,384 | 5,693 | 6,952 | |||||||
| Net impairment losses recognized in earnings | - | - | - | - | 13 | |||||||
| Noninterest expense | 14,977 | 13,528 | 14,368 | 13,864 | 14,302 | |||||||
| Income tax expense (benefit) | (300) | 350 | 150 | - | 1,950 | |||||||
| Net income | 2,239 | 1,717 | 3,389 | 2,682 | 2,596 | |||||||
| Share Data | ||||||||||||
| Basic earnings (loss) per common share | $ 0.04 | $ 0.03 | $ (0.06) | $ 0.06 | $ 0.08 | |||||||
| Diluted earnings (loss) per common share | 0.04 | 0.03 | (0.06) | 0.05 | 0.08 | |||||||
| Book value per common share | 3.48 | 3.65 | 3.66 | 4.81 | 5.17 | |||||||
| Tangible book value per common share | 3.47 | 3.65 | 3.66 | 4.81 | 5.16 | |||||||
| Market value per common share | 3.57 | 3.89 | 4.65 | 3.88 | 2.89 | |||||||
| Common shares outstanding at end of period | 50,339 | 50,225 | 50,189 | 39,607 | 33,028 | |||||||
| Weighted average shares outstanding--basic | 50,114 | 50,110 | 43,160 | 33,565 | 32,880 | |||||||
| Weighted average shares outstanding--diluted | 50,360 | 50,382 | 43,160 | 33,829 | 33,153 | |||||||
| Key Ratios | ||||||||||||
| Return on average assets (1) | 0.51% | 0.39% | 0.74% | 0.59% | 0.57% | |||||||
| Return on average equity (2) | 4.82% | 3.75% | 6.46% | 6.14% | 6.06% | |||||||
| Net interest margin | 3.17% | 3.04% | 2.93% | 3.01% | 3.23% | |||||||
| Efficiency ratio | 85.89% | 81.14% | 78.38% | 75.55% | 69.50% | |||||||
| Capital Ratios | ||||||||||||
| Tier 1 leverage ratio | 10.50% | 10.26% | 10.03% | 9.84% | 8.70% | |||||||
| Tier 1 risk-based capital ratio | 18.50% | 18.52% | 18.17% | 17.02% | 14.95% | |||||||
| Total risk-based capital ratio | 19.76% | 19.78% | 19.42% | 18.28% | 16.21% | |||||||
| Equity to assets | 10.07% | 10.44% | 10.28% | 11.27% | 9.44% | |||||||
| Tangible common equity to tangible assets (3) | 10.07% | 10.43% | 10.27% | 11.26% | 9.43% | |||||||
| (1) Net income divided by average total assets | |
| (2) Net income divided by average total equity | |
| (3) We use certain non-GAAP financial measures, such as the tangible common equity to tangible common assets ratio (TCE), to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. We believe TCE is useful because it is a measure utilized by regulators, market analysts and investors in evaluating a Company's financial condition and capital strength. TCE, as defined by us, represents common equity less core deposit intangible assets. A reconciliation form our GAAP total equity to total assets ratio to the non-GAAP tangible common equity to tangible assets ratio is presented below: |
| At or for the quarters ended | |||||||||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Total assets | $ | 1,737,850 | $ | 1,756,202 | $ | 1,787,071 | $ | 1,831,776 | $ | 1,808,365 | |||||||||||
| Less: Core deposit intangible | 152 | 172 | 192 | 215 | 238 | ||||||||||||||||
| Tangible assets (Non-GAAP) | $ | 1,737,698 | $ | 1,756,030 | $ | 1,786,879 | $ | 1,831,561 | $ | 1,808,127 | |||||||||||
| Total common equity | 175,074 | 183,322 | 183,759 | 206,511 | 170,760 | ||||||||||||||||
| Less: Core deposit intangible | 152 | 172 | 192 | 215 | 238 | ||||||||||||||||
| Tangible common equity (Non-GAAP) | $ | 174,922 | $ | 183,150 | $ | 183,567 | $ | 206,296 | $ | 170,522 | |||||||||||
| Total equity/Total assets | 10.07 | % | 10.44 | % | 10.28 | % | 11.27 | % | 9.44 | % | |||||||||||
| Tangible common equity/Tangible assets (non-GAAP) | 10.07 | % | 10.43 | % | 10.27 | % | 11.26 | % | 9.43 | % | |||||||||||
| UNITED COMMUNITY FINANCIAL CORP. | |||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||
| (Unaudited) | |||||||||||
| At or for the quarters ended | |||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||
| (Dollars in thousands) | |||||||||||
| Loan Portfolio Composition | |||||||||||
| Real Estate Loans | |||||||||||
| One-to four-family residential | $ 585,025 | $ 575,791 | $ 572,575 | $ 570,377 | $ 577,249 | ||||||
| Multi-family residential* | 54,485 | 55,696 | 62,559 | 69,857 | 80,923 | ||||||
| Nonresidential* | 131,251 | 127,699 | 120,586 | 132,662 | 138,188 | ||||||
| Land* | 9,683 | 9,546 | 9,821 | 15,216 | 15,808 | ||||||
| Construction Loans | |||||||||||
| One-to four-family residential and land development | 53,349 | 38,932 | 32,512 | 32,866 | 28,318 | ||||||
| Multi-family and nonresidential* | - | - | 4,584 | 4,584 | 4,534 | ||||||
| Total real estate loans | 833,793 | 807,664 | 802,637 | 825,562 | 845,020 | ||||||
| Consumer Loans | 189,231 | 194,383 | 199,634 | 206,496 | 214,593 | ||||||
| Commercial Loans | 26,141 | 26,888 | 24,526 | 23,077 | 26,543 | ||||||
| Total Loans | 1,049,165 | 1,028,935 | 1,026,797 | 1,055,135 | 1,086,156 | ||||||
| Less: | |||||||||||
| Allowance for loan losses | 21,116 | 21,032 | 19,037 | 21,827 | 21,130 | ||||||
| Deferred loan costs, net | (1,143) | (1,126) | (1,083) | (1,107) | (1,214) | ||||||
| Total | 19,973 | 19,906 | 17,954 | 20,720 | 19,916 | ||||||
| Loans, net | $ 1,029,192 | $ 1,009,029 | $ 1,008,843 | $ 1,034,415 | $ 1,066,240 | ||||||
| * Categories are considered commercial real estate | |||||||||||
| At or for the quarters ended | |||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||
| (Dollars in thousands) | |||||||||||
| Real Estate Owned and Other Repossessed Assets | |||||||||||
| Beginning balance | $ 9,315 | $ 11,359 | $ 15,782 | $ 18,440 | $ 20,206 | ||||||
| Acquisitions | 392 | 772 | 389 | 664 | 2,237 | ||||||
| Sales, net of gains | (3,153) | (2,352) | (3,780) | (3,017) | (3,560) | ||||||
| Changes in valuation allowance | (213) | (464) | (1,032) | (305) | (443) | ||||||
| Ending balance | $ 6,341 | $ 9,315 | $ 11,359 | $ 15,782 | $ 18,440 | ||||||
| Real Estate Owned and Other Repossessed Assets Expenses | |||||||||||
| Net (gain)/loss on sales | $ 2 | $ (69) | $ 126 | $ 108 | $ 301 | ||||||
| Provision for unrealized losses, net | 213 | 464 | 1,014 | 323 | 443 | ||||||
| Operating expenses, net of rental income | 310 | 354 | 293 | 493 | 239 | ||||||
| Total | $ 525 | $ 749 | $ 1,433 | $ 924 | $ 983 | ||||||
| At or for the quarters ended | |||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||
| (Dollars in thousands) | |||||||||||
| Deposit Portfolio Composition | |||||||||||
| Checking accounts | |||||||||||
| Interest bearing checking accounts | $ 132,751 | $ 134,766 | $ 135,228 | $ 136,952 | $ 132,947 | ||||||
| Non-interest bearing checking accounts | 170,590 | 167,167 | 165,224 | 169,790 | 159,767 | ||||||
| Total checking accounts | 303,341 | 301,933 | 300,452 | 306,742 | 292,714 | ||||||
| Savings accounts | 267,515 | 267,062 | 272,991 | 274,419 | 264,411 | ||||||
| Money market accounts | 328,625 | 331,449 | 334,242 | 341,804 | 345,651 | ||||||
| Total non-time deposits | 899,481 | 900,444 | 907,685 | 922,965 | 902,776 | ||||||
| Retail certificates of deposit | 492,271 | 510,166 | 526,130 | 537,995 | 559,298 | ||||||
| Total certificates of deposit | 492,271 | 510,166 | 526,130 | 537,995 | 559,298 | ||||||
| Total deposits | $ 1,391,752 | $ 1,410,610 | $ 1,433,815 | $ 1,460,960 | $ 1,462,074 | ||||||
| Certificates of deposit as a percent of total deposits | 35.37% | 36.17% | 36.69% | 36.82% | 38.25% | ||||||
| UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| At or for the quarters ended | ||||||||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Allowance For Loan Losses | ||||||||||||||||||||
| Beginning balance | $ | 21,032 | $ | 19,037 | $ | 21,827 | $ | 21,130 | $ | 20,048 | ||||||||||
| Provision | 282 | 657 | 1,113 | 2,064 | 2,102 | |||||||||||||||
| Net recoveries (chargeoffs) | (198 | ) | 1,338 | (3,903 | ) | (1,367 | ) | (1,020 | ) | |||||||||||
| Ending balance | $ | 21,116 | $ | 21,032 | $ | 19,037 | $ | 21,827 | $ | 21,130 | ||||||||||
| Net Charge-offs (Recoveries) | ||||||||||||||||||||
| Real Estate Loans | ||||||||||||||||||||
| One-to four-family | $ | (42 | ) | $ | 201 | $ | 487 | $ | 637 | $ | 317 | |||||||||
| Multi-family | - | (13 | ) | 113 | 41 | (1 | ) | |||||||||||||
| Nonresidential | 29 | 381 | 1,288 | 459 | 224 | |||||||||||||||
| Land | (12 | ) | (10 | ) | 1,639 | (196 | ) | (155 | ) | |||||||||||
| Construction Loans | ||||||||||||||||||||
| One-to four-family residential and land development | (451 | ) | (1,876 | ) | 108 | (75 | ) | 259 | ||||||||||||
| Multi-family and nonresidential | 620 | - | (4 | ) | 18 | (16 | ) | |||||||||||||
| Total real estate loans | 144 | (1,317 | ) | 3,631 | 884 | 628 | ||||||||||||||
| Consumer Loans | 193 | 143 | 387 | 443 | 397 | |||||||||||||||
| Commercial Loans | (139 | ) | (164 | ) | (115 | ) | 40 | (5 | ) | |||||||||||
| Total | $ | 198 | $ | (1,338 | ) | $ | 3,903 | $ | 1,367 | $ | 1,020 | |||||||||
| At or for the quarters ended | ||||||||||||||||||||
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||
| Real Estate Loans | ||||||||||||||||||||
| One-to four-family residential | $ | 6,356 | $ | 6,127 | $ | 4,993 | $ | 5,978 | $ | 5,437 | ||||||||||
| Multi-family residential | 641 | 705 | 727 | 1,727 | 2,027 | |||||||||||||||
| Nonresidential | 5,560 | 8,963 | 10,429 | 21,021 | 20,743 | |||||||||||||||
| Land | 496 | 628 | 656 | 5,957 | 6,047 | |||||||||||||||
| Construction Loans | ||||||||||||||||||||
| One-to four-family residential and land development | 3,084 | 3,320 | 4,385 | 4,931 | 7,465 | |||||||||||||||
| Multi-family and nonresidential | - | - | - | - | - | |||||||||||||||
| Total real estate loans | 16,137 | 19,743 | 21,190 | 39,614 | 41,719 | |||||||||||||||
| Consumer Loans | 3,293 | 3,564 | 3,459 | 3,608 | 4,843 | |||||||||||||||
| Commercial Loans | 4,158 | 4,177 | 4,453 | 1,492 | 1,225 | |||||||||||||||
| Total Loans | $ | 23,588 | $ | 27,484 | $ | 29,102 | $ | 44,714 | $ | 47,787 | ||||||||||
| Total Nonperforming Loans and Nonperforming Assets | ||||||||||||||||||||
| Past due 90 days and on nonaccrual status | $ | 20,188 | $ | 20,946 | $ | 22,487 | $ | 36,515 | $ | 38,378 | ||||||||||
| Past due 90 days and still accruing | 45 | 3,413 | 3,501 | 3,594 | 3,678 | |||||||||||||||
| Past due 90 days | 20,233 | 24,359 | 25,988 | 40,109 | 42,056 | |||||||||||||||
| Past due less than 90 days and on nonaccrual | 3,356 | 3,125 | 3,114 | 4,605 | 5,731 | |||||||||||||||
| Total Nonperforming Loans | 23,589 | 27,484 | 29,102 | 44,714 | 47,787 | |||||||||||||||
| Other Real Estate Owned | 6,318 | 9,276 | 11,203 | 15,349 | 18,075 | |||||||||||||||
| Repossessed Assets | 23 | 39 | 156 | 433 | 365 | |||||||||||||||
| Total Nonperforming Assets | $ | 29,930 | $ | 36,799 | $ | 40,461 | $ | 60,496 | $ | 66,227 | ||||||||||
| Total Troubled Debt Restructured Loans | ||||||||||||||||||||
| Accruing | $ | 26,577 | $ | 26,629 | $ | 25,165 | $ | 23,812 | $ | 21,006 | ||||||||||
| Nonaccruing | 4,941 | 5,474 | 5,455 | 3,616 | 4,430 | |||||||||||||||
| Total | $ | 31,518 | $ | 32,103 | $ | 30,620 | $ | 27,428 | $ | 25,436 | ||||||||||
