Banking & Finance

UCFC Reports Record Q2 Net Income of $9.54M

YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of Home Savings Bank and the James & Sons Insurance agency, Tuesday reported second-quarter net income of $9.54 million, or 19 cents per basic share.

The $9.54 million, UCFC noted, is a record for second-quarter earnings.

First-quarter net income was $8.56 million, or 17 cents per basic share, and a 16.6% improvement from year-ago income of $8.18 million, or 16.3 cents per basic share.

In a prepared statement, the president and CEO of UCFC and Home Savings Bank, Gary M. Small, said, “We are pleased with the quarterly performance results and the ongoing progress on our strategic initiatives focused on loan, deposit and revenue growth. Each market and business unit is showing improvement and our client base is expanding. Loan growth, outstanding credit performance, and a well-managed expense base continue to be strong points for the organization. Deposit growth over the past year has been outstanding and remains a central focus for the team.”

Highlights UCFC included are:

  • Total loan growth of 12.9% over the last twelve months, and 3.1% on a linked quarter basis.
  • Monthly average customer deposit growth of 10.1% over the last 12 months, and 2.2% over the last three months
  • Dividend increase of 17% to seven cents per common share.

Key financial ratios for the quarters ended June 30, March 31 and June 30, 2017:

  • Return on average assets, 1.40%, 1.28%, 1.27%.
  • Return on average equity, 12.56%, 11.44%, 11.60%.
  • Net interest margin, 3.36%, 3.47%, 3.46%.
  • Efficiency ratio, 57.75%, 60.20%, 54.71%.

Total loans, including those held for sale, were at $2.207 billion at June 30 compared to $2.140 billion at March 31 and $1.955 billion at June 30, 2017.

Total deposits reached $2.135 billion at June 30, up from $2.066 billion at March 31, and $1.893 billion at June 30, 2017.

Net interest income was $21.29 million, slightly down from $21.53 million at March 31 and up from $20.49 million at the second quarter of 2017.

Total noninterest income (includes insurance agency income, brokerage income and debit and credit card fees) was $5.85 million, up slightly from the $5.81 million reported at March 31 and down from $7.09 million the year-ago quarter.

Noninterest expense (salaries and employee benefits, rents, data processing, acquisition-related, marketing, professional fees and Federal Deposit Insurance Corp. premiums) was $15.53 million, down from $16.60 million the first quarter but up from $15.17 million the year-ago quarter.

Total assets increased to $2.724 billion during the quarter, compared to $2.673 billion at March 31 and $2.573 at June 30, 2017.

Published by The Business Journal, Youngstown, Ohio.