UCFC Announces First Quarter Earnings and Successful Integration of Premier Bank & Trust Acquisition

YOUNGSTOWN, Ohio--()--United Community Financial Corp. (Company) (NASDAQ: UCFC), parent company of Home Savings Bank (Home Savings), announced today net income of $1.5 million and diluted earnings per share (“EPS”) of $0.032 for the quarter ended March 31, 2017. This included $3.3 million of acquisition costs (after tax) related to the previously announced acquisition of Premier Bank & Trust (“Premier”). Excluding these acquisition costs, the Company reported core net income (non-GAAP) of $4.8 million1 and diluted EPS of $0.0991. By comparison, for the quarter ended December 31, 2016, the Company reported net income of $5.0 million and diluted EPS of $0.107. For the first quarter of 2016, the Company reported net income of $3.3 million and diluted EPS of $0.069.

First quarter 2017 highlights:

  • Completed acquisition and integration of Premier
  • Organic loan growth strong at 23.1% annualized
  • Nonperforming loans and delinquent loans decreased to 0.58% and 0.81%, respectively of total loans.
  • Home Savings converted to a bank charter
  • Dividend of $0.03 per common share declared

Gary M. Small President and Chief Executive Officer of the Company commented, “We are very pleased to announce solid core earnings along with the completion of a significant acquisition integration effort in March. New clients are on-boarded, financial performance is in line with expectations, and we are currently expanding our Wealth Management group to capitalize on our newly acquired capabilities. I could not be more proud of the team … certainly an outstanding effort all around.”

Small continued, “Our business units remained focused in the first quarter as we continue to see outstanding business opportunities. For the quarter, we delivered outstanding organic loan growth. We are well positioned for the remainder of the year.”

Strong Organic Loan Growth

During the first quarter of 2017, the Company’s total assets increased $365.7 million, or 16.7%, to a total of $2.6 billion. Loan growth, including loans available for sale but excluding the effects of the acquisition, totaled $90.4 million, or 23.1% on an annualized basis. Total loans, including loans held for sale, grew $344.4 million for the quarter, as a result of this organic growth and the acquisition of Premier. Commercial loan growth led the way, however both mortgage and consumer loans also increased.

Net Interest Margin Expands

Net interest income totaled $18.7 million on a fully taxable equivalent (FTE) basis for the quarter ended March 31, 2017, up 13.0% from the quarter ended December 31, 2016 and up 25.0% from the quarter ended March 31, 2016. Net interest income totaled $16.6 million and $15.0 million for the quarters ended December 31, 2016 and March 31, 2016, respectively. The increase in net interest income was primarily due to the acquisition of Premier and the continued growth in earning assets over the last several quarters.

The net interest margin on a fully taxable equivalent basis was 3.28% for the first quarter, which was two basis points higher than the fourth quarter of 2016 and seven basis points higher than the first quarter of 2016.

Nonperforming Loans to Total Loans Ratio Decreases during the First Quarter

The ratio of nonperforming loans to total loans was 0.58% at March 31, 2017, which was down from 0.83% reported at December 31, 2016 and down from 1.48% reported in the first quarter of 2016. Nonperforming loans (“NPLs”) decreased $1.9 million during the quarter due to the resolution of a long-held $3.6 million commercial loan offset by the addition of $1.5 million in nonperforming Premier loans.

The Company’s provision for loan losses totaled $1.5 million for the first quarter of 2017, which was flat in comparison to the prior quarter, and down $680,000 from the first quarter of 2016. As of March 31, 2017, the Company’s allowance for loan losses to total loans was 1.02%, versus 1.25% at December 31, 2016 and 1.23% at March 31, 2016. This decrease was due to the acquisition of Premier.

Loans acquired from Premier were recorded at fair value at the time of acquisition; therefore, there was no allowance associated with Premier’s loans at March 31, 2017. When combining a fair value adjustment to the Company’s allowance, the Company’s allowance as a percentage of total loans increased to 1.32%.

Non-Interest Income

Non-interest income was $5.4 million in the first quarter of 2017 compared to $4.7 million in the first quarter of 2016, an increase of 15.6%. Favorably affecting this change was the recognition of Premier’s fee income for two months including $282,000 in trust fees recognized during that time frame. The Company also had minimal negative change in the valuation adjustment of the mortgage serving asset in the first quarter of 2017, compared with a negative adjustment of $435,000 in the first quarter of 2016.

Non-Interest Expense

Non-interest expense increased to $20.3 million during the first quarter of 2017 compared to $12.5 million during the first quarter of 2016. Excluding the $5.0 million of acquisition related expense, non-interest expense was up $2.9 million during the quarter compared to the first quarter of 2016. The increase is primarily due cost of operating both institutions independently before conversion. While there was no cost-savings recognized during the first quarter with the acquisition, the Company expects meaningful cost savings to materialize in the second quarter of 2017.

Tangible Book Value

Tangible book value per common share at March 31, 2017 was $5.10 compared to $5.32 at December 31, 2016. The decline was primarily due to the acquisition of Premier.

Dividend to be Paid

On April 25, 2017, the Board of Directors declared a quarterly cash dividend of $0.03 per common share payable May 19, 2017 to shareholders of record at the close of business May 8, 2017.

Conference Call

United Community Financial Corp. will host an earnings conference call on Wednesday, April 26, 2017, at 10:00 a.m. ET., to provide an overview of the Company's first quarter 2017 results and highlights. The conference call may be accessed by calling 1-877-272-7661 ten minutes prior to the start time. Please ask to be joined into the United Community Financial Corp. (UCFC) call. Additionally, a live webcast may be accessed from the Company’s website ir.ucfconline.com. Click on 1st Quarter 2017 Conference Call on our corporate profile page to join the webcast.

United Community Financial Corp.

Home Savings is a wholly owned subsidiary of the Company and operates retail banking offices and loan production centers in Ohio, western Pennsylvania and West Virginia. Additional information on the Company, Home Savings and James & Sons Insurance may be found on the Company’s web site: ir.ucfconline.com.

______________

1 See supplementary information, Non-GAAP Disclosure Reconciliation

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”, “can expect” 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.

   
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
 
March 31, December 31,
2017 2016
(Dollars in thousands)
Assets:
Cash and deposits with banks $ 32,904 $ 27,690
Federal funds sold   16,868     18,197  
Total cash and cash equivalents 49,772 45,887
Securities:
Available for sale, at fair value 335,834 343,284
Held to maturity (fair value of $93,298 and $96,150, respectively) 94,523 97,519
Loans held for sale, at lower of cost or market 197 165
Loans held for sale, at fair value 75,501 62,593
Loans, net of allowance for loan losses of $18,970 and $19,087 1,835,000 1,503,577
Federal Home Loan Bank stock, at cost 19,324 18,068
Premises and equipment, net 23,919 20,963
Accrued interest receivable 7,032 6,900
Real estate owned and other repossessed assets 1,137 1,777
Goodwill 19,460 208
Core deposit intangible 2,090 5
Customer list intangible 2,182 1,356
Cash surrender value of life insurance 56,238 55,861
Other assets   34,801     33,182  
Total assets $ 2,557,010   $ 2,191,345  
 
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Non-interest bearing $ 333,940 $ 256,918
Interest bearing
Customer deposits 1,439,266 1,181,557
Brokered deposits   131,999     76,516  
Total interest bearing deposits   1,571,265     1,258,073  
Total deposits 1,905,205 1,514,991
Borrowed funds:
Federal Home Loan Bank advances
Long-term advances 47,951 47,756
Short-term advances   291,000     343,000  
Total Federal Home Loan Bank advances 338,951 390,756
Repurchase agreements and other   6,839     512  
Total borrowed funds 345,790 391,268
Advance payments by borrowers for taxes and insurance 17,084 23,812
Accrued interest payable 304 145
Accrued expenses and other liabilities   11,525     11,323  
Total liabilities   2,279,908     1,941,539  
 
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 shares issued and 49,695,487 and 46,581,370 shares, respectively, outstanding

174,187 174,360
Retained earnings 156,057 152,675
Accumulated other comprehensive loss (20,042 ) (21,040 )
Treasury stock, at cost, 4,443,423 and 7,557,540 shares, respectively   (33,100 )   (56,189 )
Total shareholders’ equity   277,102     249,806  
Total liabilities and shareholders’ equity $ 2,557,010   $ 2,191,345  
     
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
   
For the Three Months Ended
March 31, December 31, March 31,
2017 2016 2016
(Dollars in thousands, except per share data)
Interest income
Loans $ 17,558 $ 15,285 $ 13,801
Loans held for sale 661 578 332
Securities:
Available for sale, nontaxable 418 377 123
Available for sale, taxable 1,602 1,569 1,935
Held to maturity, nontaxable 62 65 55
Held to maturity, taxable 465 422 577
Federal Home Loan Bank stock dividends 214 181 182
Other interest earning assets   80     18     15  
Total interest income 21,060 18,495 17,020
Interest expense
Deposits 1,621 1,425 1,612
Federal Home Loan Bank advances 955 732 530
Repurchase agreements and other   8     4     5  
Total interest expense   2,584     2,161     2,147  
Net interest income 18,476 16,334 14,873
Taxable equivalent adjustment   237     219     95  
Net interest income (FTE) (1) 18,713 16,553 14,968
Provision for loan losses   1,475     1,493     2,155  
Net interest income after provision for loan losses (FTE)   17,238     15,060     12,813  
Non-interest income
Insurance agency income 473 417 336
Brokerage income 322 248 300
Service fees and other charges:
Deposit related fees 1,290 1,380 1,326
Mortgage servicing fees 736 719 698
Mortgage servicing rights valuation (3 ) 741 (435 )
Mortgage servicing rights amortization (449 ) (534 ) (468 )
Other service fees 29 27 18
Net gains (losses):
Securities available for sale 29 153
Mortgage banking income 1,323 1,236 1,382
Real estate owned and other repossessed assets charges, net (52 ) (17 ) (13 )
Debit/credit card fees 923 930 881
Trust fee income 282
Other income   481     488     480  
Total non-interest income   5,384     5,635     4,658  
Non-interest expense
Salaries and employee benefits 8,975 7,376 7,088
Occupancy 964 809 862
Equipment and data processing 2,079 1,916 1,835
Financial institutions tax 490 410 442
Advertising 124 207 127
Amortization of intangible assets 83 (26 ) 13
FDIC insurance premiums 188 172 326
Other insurance premiums 112 77 89
Professional fees:
Legal and consulting fees 229 331 80
Other professional fees 520 284 187
Real estate owned and other repossessed asset expenses 62 1 72
Acquisition related expenses 4,962 787
Other expenses   1,502     1,373     1,343  
Total non-interest expenses   20,290     13,717     12,464  
Income before income taxes 2,332 6,978 5,007
Taxable equivalent adjustment 237 219 95
Income tax expense   557     1,734     1,592  
Net income $ 1,538   $ 5,025   $ 3,320  
 
Earnings per common share:
Basic $ 0.032 $ 0.108 $ 0.070
Diluted 0.032 0.107 0.069
 

(1)

Net interest income is also presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item.

 

                 
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCES
(Unaudited)
 
For the three months ended
March 31, 2017 December 31, 2016 March 31, 2016
Average Interest Average Interest Average Interest
outstanding earned/ Yield/ outstanding earned/ Yield/ outstanding earned/ Yield/
balance paid rate balance paid rate balance paid rate
(Dollars in thousands)
Interest earning assets:
Net loans (1) $ 1,706,009 $ 17,560 4.12 % $ 1,485,617 $ 15,286 4.12 % $ 1,331,265 $ 13,801 4.15 %
Loans held for sale   67,860   661 3.90 %   61,289   578 3.77 %   35,359   332 3.76 %
Total loans, net 1,773,869 18,221 4.11 % 1,546,906 15,864 4.10 % 1,366,624 14,133 4.14 %
Securities:
Available for sale-taxable 287,775 1,602 2.23 % 292,115 1,569 2.15 % 337,226 1,935 2.30 %
Available for sale-nontaxable (2) 59,361 621 4.18 % 54,018 561 4.15 % 18,134 189 4.17 %
Held to maturity-taxable 83,655 465 2.22 % 87,480 422 1.93 % 99,043 577 2.33 %
Held to maturity-nontaxable (2)   12,451   94 3.02 %   13,438   99 2.95 %   10,375   83 3.20 %
Total securities 443,242 2,782 2.51 % 447,051 2,651 2.37 % 464,778 2,784 2.40 %
Federal Home Loan Bank stock 18,905 214 4.53 % 18,068 181 4.01 % 18,068 182 4.03 %
Other interest earning assets   43,059   80 0.74 %   22,071   18 0.33 %   18,130   15 0.33 %
Total interest earning assets 2,279,075 21,297 3.74 % 2,034,096 18,714 3.68 % 1,867,600 17,114 3.67 %
Non-interest earning assets   166,070   134,902   133,988
Total assets $ 2,445,145 $ 2,168,998 $ 2,001,588
Interest bearing liabilities:
Deposits:
Checking accounts $ 564,903 337 0.24 % $ 481,225 248 0.21 % $ 481,350 266 0.22 %
Savings accounts 301,675 30 0.04 % 291,212 25 0.03 % 283,892 41 0.06 %
Certificates of deposit
Customer certificates of deposit 468,686 1,073 0.92 % 416,299 1,077 1.03 % 447,459 1,305 1.17 %
Brokered certificates of deposit   99,380   181 0.73 %   47,760   75 0.63 %     %
Total certificates of deposit   568,066   1,254 0.88 %   464,059   1,152 0.99 %   447,459   1,305 1.17 %
Total interest bearing deposits 1,434,644 1,621 0.45 % 1,236,496 1,425 0.46 % 1,212,701 1,612 0.53 %
Federal Home Loan Bank advances
Long-term advances 47,823 349 2.92 % 47,628 337 2.83 % 47,043 289 2.46 %
Short-term advances   347,050   606 0.70 %   342,174   395 0.46 %   236,747   241 0.41 %
Total Federal Home Loan Bank advances 394,873 955 0.97 % 389,802 732 0.75 % 283,790 530 0.75 %
Repurchase agreements and other   1,051   8 3.04 %   514   4 3.11 %   532   5 3.76 %
Total borrowed funds   395,924   963 0.97 %   390,316   736 0.75 %   284,322   535 0.75 %
Total interest bearing liabilities $ 1,830,568   2,584 0.56 % $ 1,626,812   2,161 0.53 % $ 1,497,023   2,147 0.57 %
Non-interest bearing liabilities
Total noninterest bearing deposits 306,402 257,412 228,308
Other noninterest bearing liabilities   33,898   33,544   27,111
Total noninterest bearing liabilities   340,300   290,956   255,419
Total liabilities $ 2,170,868 $ 1,917,768 $ 1,752,442
Shareholders’ equity   274,277   251,230   249,146
Total liabilities and equity $ 2,445,145 $ 2,168,998 $ 2,001,588
Net interest income and interest rate spread $ 18,713 3.17 % $ 16,553 3.15 % $ 14,967 3.09 %
Net interest margin 3.28 % 3.26 % 3.21 %
Average interest earning assets to average interest bearing liabilities 124.50 % 125.04 % 124.75 %
 
 
Interest bearing deposits
Checking accounts $ 564,903 $ 337 0.24 % $ 481,225 $ 248 0.21 % $ 481,350 $ 266 0.22 %
Savings accounts 301,675 30 0.04 % 291,212 25 0.03 % 283,892 41 0.06 %
Customer certificates of deposit   468,686   1,073 0.92 %   416,299   1,077 1.03 %   447,459   1,305 1.17 %
Total customer deposits 1,335,264 1,440 0.43 % 1,188,736 1,350 0.45 % 1,212,701 1,612 0.53 %
Brokered certificates of deposit   99,380   181 0.73 %   47,760   75 0.63 %     %
Total interest bearing deposits 1,434,644 1,621 0.45 % 1,236,496 1,425 0.46 % 1,212,701 1,612 0.53 %
Noninterest bearing deposits   306,402   0.00 %   257,412   0.00 %   228,308   0.00 %
Total average deposits and cost of deposits $ 1,741,046 $ 1,621 0.37 % $ 1,493,908 $ 1,425 0.38 % $ 1,441,009 $ 1,612 0.45 %
Other interest bearing liabilities
Federal Home Loan Bank advances
Long term advances $ 47,823 $ 349 2.92 % $ 47,628 $ 337 2.83 % $ 47,043 $ 289 2.46 %
Short term advances   347,050   606 0.70 %   342,174   395 0.46 %   236,747   241 0.41 %
Total Federal Home Loan Bank advances 394,873 955 0.97 % 389,802 732 0.75 % 283,790 530 0.75 %
Repurchase agreements and other   1,051   8 3.04 %   514   4 3.11 %   532   5 3.76 %
Total borrowed funds   395,924   963 0.97 %   390,316   736 0.75 %   284,322   535 0.75 %
Total average deposits and other interest bearing liabilities and total cost of funds $ 2,136,970 $ 2,584 0.48 % $ 1,884,224 $ 2,161 0.46 % $ 1,725,331 $ 2,147 0.50 %
 
(1) Nonaccrual loans are included in the average balance at a yield of 0%.
(2) Yields are on a fully taxable equivalent basis.
         
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
 
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
(Dollars in thousands, except per share data)
Financial Data
Total assets $ 2,557,010 $ 2,191,345 $ 2,160,234 $ 2,080,542 $ 2,036,430
Total loans, net 1,835,000 1,503,577 1,473,949 1,398,106 1,359,146
Total securities 430,357 440,803 457,671 474,707 473,207
Total deposits 1,905,205 1,514,991 1,473,043 1,455,746 1,466,614
Average interest-bearing deposits 1,434,644 1,236,496 1,207,858 1,231,157 1,212,701
Average noninterest-bearing deposits 306,402 257,412 242,310 241,098 228,308
Total shareholders' equity 277,102 249,528 256,403 254,075 251,804
Net interest income 18,476 16,334 15,760 15,334 14,873
Net interest income (FTE) (1) 18,713 16,553 15,945 15,520 14,967
Provision for loan losses 1,475 1,493 1,344 395 2,155
Noninterest income 5,384 5,635 6,003 5,780 4,658
Noninterest expense 20,290 13,717 12,978 12,860 12,464
Income tax expense 557 1,734 2,288 2,529 1,592
Net income 1,538 5,025 5,153 5,330 3,320
 
Share Data
Basic earnings per common share $ 0.032 $ 0.108 $ 0.111 $ 0.113 $ 0.070
Diluted earnings per common share 0.032 0.107 0.110 0.112 0.069
Book value per common share 5.58 5.36 5.51 5.46 5.30
Tangible book value per common share 5.10 5.32 5.48 5.43 5.27
Market value per common share 8.34 8.94 7.11 6.08 5.87
 
Common shares outstanding at end of period 49,695 46,581 46,542 46,493 47,507
Weighted average shares outstanding--basic 49,349 46,216 46,167 46,869 47,272
Weighted average shares outstanding--diluted 49,716 46,415 46,392 47,117 47,551
 
Key Ratios
Return on average assets (2) 0.25 % 0.93 % 0.98 % 1.04 % 0.66 %
Return on average equity (3) 2.24 % 8.00 % 8.38 % 8.63 % 5.33 %
Net interest margin 3.28 % 3.26 % 3.25 % 3.25 % 3.21 %
Efficiency ratio 83.78 % 61.89 % 59.40 % 60.81 % 63.90 %
Nonperforming loans to net loans, end of period 0.58 % 0.83 % 1.32 % 1.45 % 1.48 %
Nonperforming assets to total assets, end of period 0.74 % 0.94 % 0.98 % 1.06 % 1.08 %
Allowance for loan loss as a percent of loans, end of period 1.02 % 1.25 % 1.22 % 1.21 % 1.23 %
Delinquent loans to total net loans, end of period 0.81 % 1.26 % 1.48 % 1.49 % 1.50 %
 
 
 

(1) Net interest income is presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item

(2) Net income divided by average total assets
(3) Net income divided by average total equity
         
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
 
At or for the quarters ended
March 31, December 31,

September 30,

June 30, March 31,
2017 2016

2016

2016 2016
(Dollars in thousands)
Loan Portfolio Composition
Commercial loans
Multi-family $ 108,330 $ 93,597 $ 107,066 $ 81,022 $ 80,581
Owner/nonowner occupied commercial real estate 325,633 231,401 225,699 196,110 184,279
Land 9,276 8,373 9,401 9,748 8,938

Construction

94,727 68,158 45,137 61,744 49,858
Commercial and industrial   170,398     102,729     106,880     88,804     83,256  
Total 708,364 504,258 494,183 437,428 406,912
Residential mortgage loans
Real estate 839,413 762,926 755,893 747,530 741,401
Construction   51,372     35,695     35,875     35,275     38,994  
Total 890,785 798,621 791,768 782,805 780,395
Consumer loans
Consumer   251,215     216,598     203,851     193,272     187,323  
Total   251,215     216,598     203,851     193,272     187,323  
Total loans 1,850,364 1,519,477 1,489,802 1,413,505 1,374,630
Less:
Allowance for loan losses 18,970 19,087 18,234 17,172 16,903
Deferred loan costs, net   (3,606 )   (3,187 )   (2,381 )   (1,773 )   (1,419 )
Total   15,364     15,900     15,853     15,399     15,484  
Total loans, net 1,835,000 1,503,577 1,473,949 1,398,106 1,359,146
Loans held for sale, net   75,698     62,758     60,345     43,847     35,998  

Total loans

$ 1,910,698   $ 1,566,335   $ 1,534,294   $ 1,441,953   $ 1,395,144  
 
 
At or for the quarters ended
March 31,

December 31,

September 30, June 30, March 31,
2017 2016 2016 2016 2016
(Dollars in thousands)
Deposit Portfolio Composition
Checking accounts
Interest bearing checking accounts $ 211,875 $ 158,271 $ 170,348 $ 182,713 $ 194,586
Non-interest bearing checking accounts   333,940     256,918     252,923     236,173     230,831  
Total checking accounts 545,815 415,189 423,271 418,886 425,417
Savings accounts 308,533 294,563 290,325 292,232 288,324
Money market accounts   418,449     316,813     312,124     314,081     312,577  
Total non-time deposits 1,272,797 1,026,565 1,025,720 1,025,199 1,026,318
Certificates of deposit less than $250,000 547,823 425,893 381,605 366,410 376,836
Certificates of deposit greater than $250,000   84,585     62,533     65,718     64,137     63,460  
Total certificates of deposit   632,408     488,426     447,323     430,547     440,296  
Total deposits $ 1,905,205   $ 1,514,991   $ 1,473,043   $ 1,455,746   $ 1,466,614  
         
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
 
At or for the quarters ended
March 31,

December 31,

September 30,

June 30, March 31,
2017 2016

2016

2016 2016
(Dollars in thousands)
 
Allowance For Loan Losses
Beginning balance $ 19,087 $ 18,234 $ 17,172 $ 16,903 $ 17,712
Provision 1,475 1,493 1,344 395 2,155
Net chargeoffs   (1,592 )   (640 )   (282 )   (126 )   (2,964 )
Ending balance $ 18,970   $ 19,087   $ 18,234   $ 17,172   $ 16,903  
 
At or for the quarters ended
March 31,

September 30,

June 30, March 31, December 31,
2017 2016 2016 2016 2015
(Dollars in thousands)
Net (Charge-offs) Recoveries
Commercial loans
Multi-family $ 1 $ 5 $ 35 $ 3 $ 7
Owner/nonowner occupied commercial real estate (1,141 ) (570 ) 17 (117 ) (2,213 )
Land (25 ) (100 ) (250 )
Construction
Commercial and industrial   1     139     192     62     (74 )
Total (1,164 ) (526 ) (6 ) (52 ) (2,280 )
Residential mortgage loans
Real estate (196 ) (123 ) (146 ) (59 ) (300 )
Construction                    
Total (196 ) (123 ) (146 ) (59 ) (300 )
Consumer loans
Consumer   (232 )   9     (130 )   (15 )   (384 )
Total   (232 )   9     (130 )   (15 )   (384 )
Total net chargeoffs $ (1,592 ) $ (640 ) $ (282 ) $ (126 ) $ (2,964 )
 
 
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
(Dollars in thousands)
Nonperforming Loans
Commercial loans
Multi-family $ 419 $ $ $ $
Owner/nonowner occupied commercial real estate 1,398 3,546 6,879 7,362 7,557
Land 9 34 134 384 384
Construction
Commercial and industrial   354     361     4,242     4,633     4,652  
Total 2,180 3,941 11,255 12,379 12,593
Residential mortgage loans
Real estate 5,868 6,084 5,835 5,713 5,312
Construction                    
Total 5,868 6,084 5,835 5,713 5,312
Consumer loans
Consumer   2,513     2,414     2,358     2,249     2,200  
Total   2,513     2,414     2,358     2,249     2,200  
Total nonperforming loans $ 10,561   $ 12,439   $ 19,448   $ 20,341   $ 20,105  
 
 
Total Nonperforming Loans and Nonperforming Assets
Past due 90 days and on nonaccrual status $ 7,581 $ 7,859 $ 15,350 $ 15,819 $ 15,663
Past due 90 days and still accruing                    
Past due 90 days 7,581 7,859 15,350 15,819 15,663
Past due less than 90 days and on nonaccrual   2,980     4,580     4,098     4,522     4,442  
Total nonperforming loans 10,561 12,439 19,448 20,341 20,105
Other real estate owned 1,137 1,726 1,790 1,613 1,832
Other classified assets 6,384 6,384
Repossessed assets       51     3     3     14  
Total nonperforming assets $ 18,082   $ 20,600   $ 21,241   $ 21,957   $ 21,951  
           
UNITED COMMUNITY FINANCIAL CORP.
NON-GAAP DISCLOSURE RECONCILIATION
(Unaudited)
 

In reporting the results of the quarter ended March 31, 2017, the Company has provided supplemental performance measures on a tax-equivalent basis or excluding merger related costs. These measures are a supplement to GAAP used to prepare the Company’s financial statements and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP measures may not be comparable to non-GAAP measures of other companies.

 

For the three

For the three

months ended

months ended
March 31, December 31,
2017 2016
Acquisition related costs $ 4,962 $ 787
Tax expense   (1,709 )   (176 )
Merger related costs, net of tax $ 3,253   $ 611  
 
As Reported Acquisition Non-GAAP Proforma As Reported Acquisition Non-GAAP Proforma
Three months ended

related costs,

Three months ended Three months ended

related costs,

Three months ended
March 31, 2017

net of tax

March 31, 2017 December 31, 2016

net of tax

December 31, 2016
(In thousands, except per share data)
Net income: $ 1,538   $ 3,253   $ 4,791   $ 5,025     611   $ 5,636  
 
Diluted EPS:
Net income $ 1,538 $ 3,253 $ 4,791 5,025 5,636
Net income allocated to participating securities   (11 )   (33 )   (37 )   (37 )
Net income available to common shareholders $ 1,527   $ 4,758     4,988     5,599  
Weighted average shares outstanding: diluted 48,071,165 48,071,165 46,415,038 46,415,038
Diluted EPS: $ 0.032   $ 0.099   $ 0.107   $ 0.121  
 
 
Net income $ 1,538 $ 3,253 $ 4,791 $ 5,025 $ 611 $ 5,636
Average assets 2,445,145 2,445,145 2,168,998 2,168,998
Average equity 274,277 274,277 251,230 251,230
ROA:   0.25 %   0.78 %   0.93 %   1.04 %
ROE:   2.24 %   6.99 %   8.00 %   8.97 %
 
Efficiency Ratio:
Noninterest Expense $ 20,290 $ (4,962 ) $ 15,328 $ 13,719 $ (787 ) $ 12,932
Intangible asset amortization (83 ) (83 ) (26 ) (26 )
Net interest income 18,713 18,713 16,556 16,556
Noninterest income 5,384 5,384 5,635 5,635
Net gain on securities available for sale 29 29
Loss on real estate owned (52 ) (52 ) (17 ) (17 )
Efficiency Ratio:   83.78 %   63.20 %   61.89 %   58.35 %
 
 
Tangible Book Value Per Share:
Tangible book value, per share is defined at shareholders equity minus intangible assets divided by the number of shares outstanding.
(In thousands,
except common
shares outstanding

and tangible

book value)

Total shareholders' equity $ 277,102
Goodwill 19,460
Customer list intangible 2,090
Core deposit intangible 2,182
Total common shares outstanding 49,695,487
Tangible book value, as reported $ 5.10
.

Contacts

Media Contact:
Home Savings
Kathy Bushway, 330-742-0638
Senior Vice President, Marketing
kbushway@homesavings.com
or
Investor Contact:
United Community Financial Corp.
Gary M. Small, 330-742-0472
President and Chief Executive Officer

Contacts

Media Contact:
Home Savings
Kathy Bushway, 330-742-0638
Senior Vice President, Marketing
kbushway@homesavings.com
or
Investor Contact:
United Community Financial Corp.
Gary M. Small, 330-742-0472
President and Chief Executive Officer