UCFC Reports Net Income of $4.14M for 3rd Quarter

YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of the Home Savings and Loan Co., Tuesday reported net income of $4.143 million for the third quarter, or 8.6 cents per diluted share.

This compares to $4.125 million the preceding quarter, or 8.4 cents per diluted share, and third-quarter 2014 net income of $2.9 million, or 5.8 cents per diluted share.

UCFC directors declared a cash dividend of 2.5 cents per share payable Nov. 13 to shareholders of record Nov. 2.

In a statement, the president and CEO of UCFC and Home Savings, Gary M. Small, said, “We are pleased with the pace of performance improvement and see all aspects of our business improving. Quality loan growth, strong fee income and diligent expense management are creating outstanding momentum.”

UCFC cited its “robust annualized loan growth of 17.8%, including loans held for sale” as contributing to its profitability and noted that its tangible book value rose to $5.12 per share from $4.70 a year ago.

Key ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2014:

  • Return on average assets, 0.85%, 0.88%, 0.80%.
  • Return on average equity, 6.87%, 6.73%, 5.99%.
  • Net interest margin, 3.18%, 3.16%, 3.24%.
  • Efficiency ratio, 63.53%, 63.40%, 70.07%.
  • Nonperforming loans (those 90 days past due) to net loans (end of period), 1.20%, 1.55%, 1.72%.
  • Delinquent loans (those up to 89 days past due) to total net loans (end of period), 1.65%, 1.45%, 1.66%.
  • Nonperforming assets to total assets (end of period), 0.95%, 1.16%, 1.25%.

Among the balance sheet highlights UCFC cited were growth in total loans and total deposits. The former increased $146.8 million to $1.277 billion since Dec. 31, the latter to $1.41 billion from $1.347 billion. During the nine months, the increase in commercial deposits contributed to a 3.6% rise in interest-bearing deposits, or $42 million, UCFC said.

Net interest income for the third quarter was $14.3 million, up from $13.86 million the second quarter and $12.73 million the third quarter of 2014. Noninterest or fee income fell to $4.87 million from $5.28 million at June 30 but was up from $4.17 million the year-ago quarter.

Noninterest expense (salaries and employee benefits, rents, data processing, advertising, Federal Deposit Insurance Corp. premiums, administering repossessed real estate) rose slightly to $12.29 million during the quarter from $12.21 million the second quarter but was down from $14.5 million the third quarter of 2014.

For the first nine months, noninterest expense was nearly $5 million lower than the same period in 2014.

Credit quality remained strong with only $72,000 in bad loans charged off compared to $1.09 million the preceding quarter and $282,000 the year-ago quarter. The allowance for loan losses at Sept. 30 was $17.48 million compared to $16.88 million June 30 and $18.13 million Sept. 30, 2014.

Total assets continue their recovery with UCFC recording $1.971 billion at Sept. 30, up from $1.834 billion at year-end and $1.802 billion a year ago.

SOURCE: United Community Financial Corp.

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