YOUNGSTOWN, Ohio--(BUSINESS WIRE)--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.
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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. |
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|
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. |
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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 | ||||||||||||||||||||||
. |