Financial Services

UCFC Reports Q1 Net Income of $8.7M

YOUNGSTOWN, Ohio – United Community Financial Corp., the parent company of Home Savings Bank, announced Tuesday first-quarter income of $8.7 million, or 17.6 cents per diluted common share.

The earnings are up slightly from the first quarter of 2018, when net income was $8.6 million, or 17.1 cents per diluted common share.

UCFC directors declared a cash dividend of seven cents per common share, payable May 10 to shareholders of record at the close of business April 29.

“We are pleased with Q1 performance as our loan and deposit growth came in right on target, margin met expectations during an unpredictable interest rate environment, and our residential mortgage, wealth and insurance business units experienced strong revenue growth,” said Gary Small, president and CEO, in a prepared statement. 

“The year began a bit softer than normal as clients seemed to strike a cautious stance while evaluating the impact of Q4 market uncertainty,” he continued. “Activity levels picked up over the course of the quarter, the residential mortgage business began to benefit from the lower rate environment, and we enter Q2 in a good position.”

Among the key performance ratios for the quarters ended March 31, Dec. 31, and March 31, 2018:

• Return on average assets, 1.22%, 1.36%, 1.28%.

• Return on average equity, 10.99%, 12.15%, 11.44%.

• Net interest margin, 3.38%, 3.58%, 3.47%.

• Efficiency ratio, 62.29%, 54.79%, 60.20%.

Total loans were up slightly in the first quarter, rising to $2.29 billion, up from $2.26 billion in the fourth quarter of 2018 and $2.14 billion in prior-year quarter.

Commercial loans totaled $974.67 million, ahead $942.93 million in the fourth quarter and $873.13 million in the first quarter of 2018.

Residential loans was $979.69 million in the first quarter of 2019, ahead of both the final quarter of 2018, $970.69 million, and the first quarter of 2018, $925.33 million.

Consumer loans was $274.99 million, down slightly from $277.04 million in the fourth quarter and $279.11 million in the prior-year quarter.

Net interest income dipped in the quarter ended March 31, coming in at $22.19 million, down from $23.49 million in the fourth quarter but ahead of $21.53 million in the first quarter of 2018.

Noninterest income was $6.07 million in the first quarter of 2019, up from both $5.58 million in the fourth quarter and $5.82 million in the first quarter of 2018.

Noninterest expense – which includes wages and benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums – was $17.67 million, up slightly from the previous quarter total of $17.19 million and the year-ago total of $16.60 million.

Salaries and employee benefits were $10.57 million, up from $9.03 million and $9.99 million in the previous and year-ago quarters, respectively.

Copyright 2019 The Business Journal, Youngstown, Ohio.