UCFC Reports Q3 Net Income of $9.52M

YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of Home Savings Bank, Tuesday reported third-quarter net income of $9.52 million, or 19 cents per diluted share. 

This compares to second-quarter net income of $9.54 million, or 19 cents per diluted share and third-quarter 2017 net income of $7.56 million, or 15 cents per share.

UCFC directors declared a cash dividend of seven cents per share payable Nov. 9 to shareholders of record Oct. 26.

In a prepared statement, the president and CEO of UCFC and Home Savings Bank, Gary M. Small, said,  “Home Savings’ strong quarterly performance reflected the continued favorable economic and business environment experienced in each of the markets we serve. We delivered excellent loan and solid revenue growth creating positive operating leverage for the organization…a winning formula. While the interest rate environment and trade/tariff issues create uncertainty, I believe our balanced business approach and the strength of our client base will serve us very well in the future.”

Key performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2017:

• Return on average assets, 1.37%, 1.40%, 1.17%.
• Return on average equity, 12.25%, 11.56%, 10.43%.
• Net interest margin, 3.33%, 3.36%, 3.45%.
• Efficiency ratio, 57.30%, 57.75%, 57.13%.

Total loans rose slightly to $2.244 billion at Sept. 30 compared to $2.207 billion at June 30 and $2.032 billion the year-ago quarter.

Commercial loans grew to $931.76 million, up from $900.81 million at June 30 and $791.08 million the year-ago quarter.

Residential mortgage loans also rose to $949.02 million at Sept. 30, up from $929.20 million at June 30 and $908.94 million the quarter ended Sept. 30, 2017.

Consumer loans were at $263.10 million at Sept. 30, from $284.90 million at the end of the second quarter and $263.69 million the year-ago quarter.

Net interest income rose to $21.62 million at Sept. 30 from $21.29 million the second quarter of 2018 and $20.50 million the third quarter of 2017.

Noninterest income, including insurance agency income, was $6.14 million, up 5% from $5.85 million the preceding quarter, but down from $6.30 million the year-ago quarter.

Noninterest expense (includes wages and benefits, rents, data processing, marketing, Federal Deposit Insurance Corp. premiums) was $15.77 million, up from $15.53 million the preceding quarter and $15.46 million the same quarter in 2017. Salaries and employee benefits increased to $9.10 million from $8.74 million the same quarter in 2017.

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