Banking & Finance

UCFC Reports Third-Quarter Income of $5.15 Million

YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of the Home Savings and Loan Co., Tuesday reported third-quarter net income of $5.15 million, or 11 cents per diluted share.

This compares to second-quarter net income of $5.33 million, or 11.2 cents per diluted share and third-quarter 2015 net income of $4.14 million, or 8.6 cents per share.

UCFC directors declared a cash dividend of three cents per share payable Nov. 14 to shareholders of record Oct. 31.

By all measures, UCFC enjoyed a stronger quarter compared to the same quarter a year ago: Net income up 24.4%, diluted earnings per share up 27.9%, net loans 15.4% higher, efficiency ratio dropped below 60%, total deposits rose 4.4%, or $62.6 million to $1.5 billion, and total interest-earning assets stood at $1.965 billion compared to $1.802 billion at Sept. 30, 2015.

And Home Savings recognized a provision for loan-loss expense of $1.3 million compared to the provision of $395,000 a year ago.

In a prepared statement, the president and CEO, Gary M. Small, said, “We are very pleased to post another strong quarter with revenue up 14% and loan growth in excess of 12% versus the same period in 2015. Earnings momentum is excellent as reflected in our pre-provision pretax comparisons, up 6.4% on a linked-quarter basis and 30% versus 2015. The entire Home Savings team remains focused on growth and has put the organization in a very good position as we prepare for the successful integration of Premier Bank & Trust in the first quarter of 2017.”

Key performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2015:

  • Return on average assets, 0.98%, 1.04%, 0.66%.
  • Return on average equity, 8.38%, 8.63%, 5.33%.
  • Net interest margin, 3.25%, 3.25%, 3.21%.
  • Efficiency ratio, 59.40%, 60.81%, 63.90%.

Note: The efficiency ratio excludes the penalty on prepaying repurchase agreements.

Total loans rose to $1.534 billion from $1.442 billion the quarter ended June 30 and $1.395 billion the quarter ended Sep. 30, 2015.

Total nonperforming loans (those 90 and more days past due) fell to $19.45 million from $20.34 million the previous quarter and $20.11 million the year–ago quarter. Nonperforming commercial loans fell more than $200,000 to $4.24 million while residential mortgage loans rose slightly to $5.84 million. Consumer nonperforming loans also rose slightly to $2.36 million.

Interest income was $17.82 million, up from $17.40 million the preceding quarter and $16.65 million the year-ago quarter.

Noninterest income, including insurance agency income, was slightly more than $6 million, up from $5.78 million the preceding quarter, and $4.83 million the year-ago quarter. The James & Sons insurance agency contributed $451,000 to noninterest income, down from $516,000 the second quarter.

Noninterest expense (included wages and benefits, rents, data processing, marketing, Federal Deposit Insurance Corp. premiums) was $12.98 million, up from $12.86 million the second quarter and $12.29 million the same quarter in 2016. Salaries and employee benefits fell to $6.95 million from $7.19 million the preceding quarter but were $56,000 higher than the same quarter in 2015.

Published by The Business Journal, Youngstown, Ohio.