(Crawfordsville) – Union Community Bancorp (the “Company”) (NASDAQ Symbol “UCBC”), the holding company of Union Federal Savings and Loan Association (the “Association”), announced earnings for the three months and the year ended December 31, 2004. For the three months ended December 31, 2004, the Company had net income of $495,000 compared to $468,000 the three months ended December 31, 2003. Basic and diluted earnings per share increased to $0.28 and $0.27, respectively, for the three months ended December 31, 2004 compared to $0.24 for both basic and diluted earnings per share for the 2003 period. For the year ended December 31, 2004 net income was $1,796,000 compared to $2,332,000 for the 2003 twelve month period. Basic and diluted earnings per share were $0.97 and $0.95 for the year ended December 31, 2004 compared to $1.18 and $1.16, respectively, for basic and diluted earnings per share for the 2003 twelve-month period. Net interest income decreased for the three-month period ending December 31, 2004 compared to the December 31, 2003. Amortization of purchase accounting adjustments reduced interest expense by $27,000 for the three months ended December 31, 2004 compared to a reduction of $126,000 for the 2003 three-month period. Interest rate spread decreased from 2.98% for the three-month period in 2003 to 2.85% for the 2004 three-month period. Noninterest income increased $75,000 to $190,000 for the three-month period ended December 31, 2004 compared to the three-months ended December 31, 2003 and noninterest expense increased $19,000 to $1,408,000 for the same comparable periods. The decrease in net income for the twelve-month period was primarily attributable to a decrease in net interest income. Amortization of purchase accounting adjustments reduced interest expense by $107,000 for the 2004 twelve-month period compared to $503,000 during 2003 period. Also contributing to the decrease in net interest income was a decrease in interest rate spread from 2.98% for the twelve-month period ending December 31, 2003 to 2.88% for the comparable 2004 twelve-month period. From December 31, 2003 to December 31, 2004, total assets decreased $4.7 million to $256.9 and net loans decreased $4.2 million to $217.1 million. During the same time frame, deposits decreased $1.7 million to $188.5 million. Shareholders’ equity decreased $2.1 million to $33.4 million at December 31, 2004. During the twelve-month period the Company repurchased 172,000 shares of common stock at a total cost of $3.1 million for an average cost of $17.95 per share. The Company and Association are headquartered in Crawfordsville, Indiana with two branch offices in Crawfordsville and branch offices in Covington, Williamsport and Lafayette, Indiana. The statements contained in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties. A number of factors could cause results to differ materially from the objectives and estimates expressed in such forward-looking statements. These factors include, but are not limited to, changes in the financial condition of issuers of the Company’s investments and borrowers, changes in economic conditions in the Company’s market area, changes in policies of regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, changes in the position of banking regulators on the adequacy of our allowance for loan losses, and competition, all or some of which could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These factors should be considered in evaluating any forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements. |
