UCFC Reports 3Q Net Income of $7.56 million

YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of  Home Savings Bank, Tuesday reported third-quarter net income of $7.56 million, or 15 cents per diluted share. 

This compares to second-quarter net income of $8.19 million, or 16.3 cents per diluted share and third-quarter 2016 net income of $5.15 million, or 11 cents per share.

UCFC directors declared a cash dividend of four cents per share payable Nov. 17 to shareholders of record Nov. 3.

In a prepared statement, the president and CEO of UCFC and Home Savings Bank, Gary M. Small, said,  “We are very pleased to report strong performance for the quarter. The team delivered excellent loan growth, stable margins and each business division and market is experiencing growth. Within our markets, the economic conditions remain supportive of steady growth and improvement in both the business and consumer sectors. We continue to see great opportunities in the market.”

Key performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2016:

  • Return on average assets, 1.17%, 1.27%, 0.98%.
  • Return on average equity, 10.43%, 11.60%, 8.38%.
  • Net interest margin, 3.45%, 3.46%, 3.25%.
  • Efficiency ratio, 57.13%, 54.71%, 59.40%.

Total loans rose to $2.032 billion at Sept. 30 compared to $1.955 billion at June 30 and $1.534 billion the year-ago quarter.

Commercial loans grew to $791.08 million, up $48.8 2million from  $742.26 million at June 30 and $494.18 million the year-ago quarter.

Residential mortgage loans also rose to $908,94 million from $891.30 million at June 20 and $791.70 million the quarter ended Sept. 30, 2016.

Consumer loans stood at $263,69 million at Sept. 30,  up from $251.15  million at the end of the second quarter and $203.85 million the year-ago quarter.

The ratio of nonperforming loans to net loans continues to improve, UCFC noted. The ratio was 0.62% at Sept. 30, which is down from 1.32% reported the year-ago quarter.

Net interest income remained at $20.50 million from June 30 but rose from $15.95 million the third quarter of 2016.

Noninterest income, including insurance agency income, was $6.31 million, down 11.1% from $7.09 million the preceding quarter, and up from $6.00 million, or 5% the year-ago quarter. 

Noninterest expense (includes wages and benefits, rents, data processing, marketing, Federal Deposit Insurance Corp. premiums) was $15.46 million, up from $15.27 million the second quarter and $12.98 million the same quarter in 2016. Salaries and employee benefits fell slightly to $8.74 million from $8.75 million the preceding quarter and were about $18,000 less than the same quarter in 2016.

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