UCFC Reports Second-Quarter Net Income of $4.13M

YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of the Home Savings and Loan Co., reported second-quarter net income of $4.13 million, or 8.5 cents per basic share, 8.4 cents per diluted share.

This compares to net income of $3.67 million the first quarter, or 7.5 cents per basic share, and $42.40 million the quarter ended June 30, 2014, or 83.9 cents per basic share.

Second-quarter highlights UCFC cited:

  • Return on average assets was 0.88%, return on average equity 6.73%.
  • Annualized growth of net loans, including loans held for sale, 20.0%.
  • Annualized growth of deposits, 9.2%.
  • Noninterest income rose 28.1%, $1.2 million higher than the first quarter.
  • Efficiency ratio dropped to 63.4% from 70.1% the first quarter.
  • The repurchase of 1.5 million shares.

Said the president and CEO of UCFC and Home Savings, Gary M. Small, in a prepared statement, “Strong second-quarter performance reflects effective execution of our 2015 business plan, which focuses on commercial loans growth and continuous improvement in operating efficiency. The Home Savings team delivered loan growth of approximately $59.6 million for the quarter, with growth in each business segment. We are very pleased with our consistent improvement in quarterly earnings, return on average assets and operating efficiency.”

Key ratios for the quarters ended June 30, March 31 and June 30, 2014:

  • Return on average assets, 0.88%, 0.80%, 0.62%.
  • Return on average equity, 6.73%, 5.99%, 4.70%.
  • Net interest margin, 3.16%, 3.24%, 3.16%.
  • Efficiency ratio, 63.40%, 70.07%, 72.85%.
  • Nonperforming to net loans, 1.55%, 1.72%, 1.78%.
  • Nonperforming assets to total assets, 1.16%, 1.25%, 1.30%.
  • Allowance for loan losses as a % of loans, 1.36%, 1.45%, 1.52%.
  • Delinquent loans to total net loans, 1.45%, 1.66%, 1.82%.

Interest income was $16.11 million compared to $16.03 million the first quarter and $15,81 million the year-ago quarter.

Net interest income was $13.85 million, $13.88 million and $12.74 million respectively.

Noninterest income – includes nondeposit investment income, card fees, service fees and other charges – was $5.28 million compared to $4.12 million the preceding quarter and $3.44 million the year-ago quarter.

Noninterest expense – includes wages and benefits, rents, equipment and data processing, taxes, marketing, Federal Deposit Insurance Corp. premiums, and maintaining repossessed real estate – was $12.21 million compared to $12.68 million the first quarter and $14.27 million the year-ago quarter.

Asset quality continued to improve as reflected by nonperforming assets, which include nonperforming loans, falling more than $900,000 during the quarter and more than $1.5 million over the last 12 months.

Total assets rose to $1.923 billion from $1.834 billion at Dec. 31 and total deposits climbed to $1.686 billion from $1.593 billion over the same period.

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