EXHIBIT 99
275 West Federal Street
Youngstown, Ohio 44503-1203
FOR IMMEDIATE RELEASE
| | |
| Media Contact: | | Investor Contact: |
| Colleen Scott | | Gary M. Small |
| Vice President of Marketing | | President and Chief Executive Officer |
| Home Savings | | United Community Financial Corp. |
| (330) 742-0638 | | (330) 742-9823 |
| cscott@homesavings.com | | |
UNITED COMMUNITY FINANCIAL CORP. POSTS
ANOTHER STRONG QUARTER
| | • | | Quarterly pretax core earnings of $4.1 million (adjusted for debt prepayment charge of $2.0 million) |
| | • | | Annualized loan growth was 13% for the fourth quarter and 12% for the year |
| | • | | Prepayment of a $30 million repurchase agreement and the modification of a $50 million FHLB advance during the quarter |
| | • | | Net interest margin increasing to 3.16% for the fourth quarter of 2014 from 3.06% for the previous quarter |
| | • | | Tangible book value per share increased to $4.88 at December 31, 2014 from $3.47 at the same time last year |
| | • | | UCFC declares a dividend of $0.01 per common share |
YOUNGSTOWN, Ohio (January 27, 2015) – United Community Financial Corp. (Company) (Nasdaq: UCFC), parent company of The Home Savings and Loan Company of Youngstown, Ohio (Home Savings), announced today that net income for the fiscal year ended December 31, 2014 totaled $50.2 million (including the recognition of $39.7 million of income tax benefit from the reversal of a deferred tax asset valuation reserve), or $1.00 per diluted common share, compared to $10.0 million or $0.07 per common share for the year ended December 31, 20131. For the fourth quarter 2014, UCFC earned $2.8 million, or $0.06 per diluted common share compared to $2.2 million or $0.04 per diluted common share for the fourth quarter of 2013.
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Gary M. Small, President and Chief Executive Officer of United Community and Home Savings, commented that, “We are very pleased with continued quarterly improvement of pretax core earnings. The Company is delivering loan growth, reducing the core expense run rate and improving margins. We feel well positioned heading into 2015.”
Total Loans
Total loans increased $115.7 million to $1.2 billion at December 31, 2014 from $1.1 billion at December 31, 2013. The increase was driven by a 13.2% increase, or $29.2 million, in commercial loans year over year. Unfunded commercial loan commitments continue to show strong growth with an increase of $43.6 million, or 298% year over year. Residential real estate loans increased 14.9% or $94.9 million in the same time period.
Fourth Quarter Results
Net Interest Income and Margin
Net interest income was $13.4 million in the fourth quarter of 2014 up from the $13.1 million recorded in the fourth quarter of 2013. Net interest margin was 3.16% at the end of the fourth quarter of 2014 compared to 3.17% in the fourth quarter of 2013, and increased from the 3.06% net interest margin recorded in the third quarter of 2014. The net interest margin was positively impacted in the fourth quarter of 2014 by the modification of a $50.0 million FHLB advance in mid-November, which resulted in the borrowing rate declining from 4.20% to 2.05%. In addition, a $30.0 million repurchase agreement was prepaid at the end of December that resulted in the borrowing rate declining from 4.28% to 0.14%.
“The prepayment and modification of $110.0 million of high cost debt during the third and fourth quarters was a key initiative in 2014, and positions the Company for meaningful interest margin improvement going forward,” said Small.
Non-Interest Income
Non-interest income was $2.9 million in the fourth quarter of 2014 compared to $4.1 million in the fourth quarter of 2013. This change of $1.2 million is primarily attributable to a decrease in mortgage banking income as a result of timing differences associated with hedging activity in addition to lower origination volumes.
Non-Interest Expense
Total non-interest expense was $13.9 million in the fourth quarter of 2014 ($11.9 million after adjusting for the prepayment penalty of $2.0 million), a decrease of $1.0 million from the $15.0 million reported in the fourth quarter of 2013. All expense categories declined, with the exception of equipment and data processing expense, which experienced a minimal increase. Significantly offsetting these savings was the recognition of a $2.0 million prepayment penalty in the fourth quarter of 2014 associated with the prepayment of a $30.0 million repurchase agreement borrowing discussed previously.
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2014 Results
Net Interest Income and Margin
For the year ended December 31, 2014, net interest income totaled $51.4 million, compared with $51.3 million for 2013. The net interest margin increased to 3.10% in 2014 from 3.04% in the prior year. As in the fourth quarter of 2014, the net interest margin was positively impacted by the modification of a $50.0 million FHLB advance in mid-November. In addition, two $30.0 million repurchase agreements were prepaid during the year, one at the end of September and one at the end of December.
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Provision for Loan Losses
The Company recognized a negative provision for loan losses of $1.3 million in fiscal year 2014 compared to $4.1 million of provision expense in 2013. This improvement was primarily due to a lower level of net charge-offs and disposition of nonperforming loans.
Non-Interest Income
Non-interest income for fiscal year 2014 totaled $13.7 million compared to $19.7 million for 2013. The difference in noninterest income year over year is due to security gains of approximately $2.6 million that were recognized in 2013. Also, during 2013, Home Savings recognized a $680,000 recovery on mortgage servicing rights. A similar recovery was not experienced in 2014. Mortgage banking income has declined $3.2 million, which is being driven by lower mortgage production due to lower mortgage refinance activity and timing differences with hedging activity in connection with the construction loan portfolio. These declines over the same period in 2013 were offset partially by a reduction in losses incurred on the resolution of real estate owned of $1.4 million.
Non-Interest Expense
Non-interest expense was $52.6 million2 for 2014; down 7.9% from the $56.7 million recognized during the same period of 2013. FDIC insurance premiums decreased $1.1 million, and reserves established for potential buy-back and make whole provisions on loans sold to government agencies in the secondary market decreased $2.5 million. Additionally, The Company incurred lower expenses on real estate owned and other repossessed assets of $819,000, and lower financial institutions tax expenses of $772,000. Salaries and employee benefits expense of $29.5 million for 2014, compared to $29.1 million during the same period of 2013, partially offset these declines.
Asset Quality
Non-performing loans totaled $20.5 million at December 31, 2014, a decrease of 13.3% from $23.6 million at December 31, 2013. In addition, Home Savings had reduced real estate owned and other repossessed assets by 45% to $3.5 million at December 31, 2014 compared to $6.3 million at December 31, 2013. For the fourth quarter of 2014, the allowance for loan loss as a percentage of total loans was 1.52% at December 31, 2014 compared with 2.01% at December 31, 2013.
Total Assets
Total assets at December 31, 2014 were $1.8 billion compared to $1.7 billion at December 31, 2013. Net loans were $1.1 billion at December 31, 2014 compared to $1.0 billion at December 31, 2013. Total cash and cash equivalents were $33.0 million at December 31, 2014 compared with $77.3 million at December 31, 2013.
Total deposits at December 31, 2014 were $1.3 billion compared with $1.4 billion at December 31, 2013. Non-interest bearing deposits at December 31, 2014 were $188.0 million compared to $170.6 million at December 31, 2013. Total shareholders’ equity was $240.1 million at December 31, 2014 compared to $175.1 million at December 31, 2013.
Deferred Tax Asset Valuation
At the end of 2010, the Company established a deferred tax asset (“DTA”) valuation allowance. In the course of its periodic assessment of its DTA position, the Company was able to reverse this valuation
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allowance in the second quarter of 2014. The Company has determined that it is more likely than not it will be able to fully realize its net deferred tax asset, including its tax loss carryforward. This action resulted in the recognition of a $38.8 million income tax benefit in June of 2014.
Dividend to be Paid
The Board of Directors declared a quarterly cash dividend of $0.01 per common share payable February 17, 2015 to shareholders of record at the close of business February 6, 2015.
Conference Call
United Community Financial Corp. will host an earnings conference call on Wednesday, January 28, 2015, at 10:00 a.m. EST., to provide an overview of the Company’s fourth quarter 2014 results and highlights. The conference call may be accessed by calling 1-888-317-6016 ten minutes prior to the start time. Please ask to be joined into the United Community Financial Corporation (UCFC) call. Additionally, a live webcast may be accessed from the Company’s websitewww.ucfconline.com. Click on4th Quarter 2014 Conference Call on our corporate profile page to join the webcast.
United Community Financial Corp.
Home Savings is a wholly-owned subsidiary of the Company and operates 32 full-service banking offices and nine loan production offices located throughout Ohio and western Pennsylvania. Additional information on the Company and Home Savings may be found on the Company’s web site: www.ucfconline.com.
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When used in this press release, the words or phrases “believes,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project”, “will have”, “can expect” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
| (1) | As part of the capital raise that was completed in the second quarter of 2013, the Company issued preferred stock that was later converted to common stock. Management is presenting 2013 net income before amortization of the discount on preferred stock as it provides useful information to investors about the Company’s financial condition and results of operation because the preferred stock was later converted to common stock and no dividend was declared or paid on the preferred stock. However, because the preferred stock was issued at a price below the then market price of our common stock, the |
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| | difference is deemed a non-cash dividend under U.S. Generally Accepted Accounting Principles and is deducted in the calculation of net income available to common shareholders. Please refer to Note 23 of the Consolidated Financial Statements found in the Company’s Form 10-K for the period ended December 31, 2013 for further detail. |
| (2) | We use certain non-GAAP financial measures, such as adjusted non-interest expense, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. We believe adjusting non-interest expense is useful because it is a measure utilized by regulators, market analysts and investors in evaluating a Company’s financial condition and capital strength. Adjusted non-interest expense, as defined by us, represents non-interest expense minus prepayment penalties. A reconciliation form our GAAP non-interest expense to adjusted non-interest expense is presented below: |
| | | | |
| | | December 31,
2014 | |
Non-interest expense | | $ | 55,960 | |
Prepayment penalty | | | 3,409 | |
| | | | |
Adjusted non-interest expense (Non-GAAP) | | $ | 52,551 | |
| | | | |
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UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
| | | | | | | | |
| | | December 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands) | |
Assets: | | | | | | | | |
Cash and deposits with banks | | $ | 21,152 | | | $ | 20,937 | |
Federal funds sold | | | 11,828 | | | | 56,394 | |
| | | | | | | | |
Total cash and cash equivalents | | | 32,980 | | | | 77,331 | |
Securities: | | | | | | | | |
Available for sale, at fair value | | | 499,790 | | | | 511,006 | |
Loans held for sale | | | 20,730 | | | | 4,838 | |
Loans, net of allowance for loan losses of $17,687 and $21,116 | | | 1,148,093 | | | | 1,029,192 | |
Federal Home Loan Bank stock, at cost | | | 18,068 | | | | 26,464 | |
Premises and equipment, net | | | 21,002 | | | | 20,924 | |
Accrued interest receivable | | | 5,763 | | | | 5,694 | |
Real estate owned and other repossessed assets | | | 3,467 | | | | 6,341 | |
Core deposit intangible | | | 84 | | | | 152 | |
Cash surrender value of life insurance | | | 46,401 | | | | 44,972 | |
Other assets | | | 37,172 | | | | 10,936 | |
| | | | | | | | |
Total assets | | $ | 1,833,550 | | | $ | 1,737,850 | |
| | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | |
Liabilities: | | | | | | | | |
Deposits: | | | | | | | | |
Interest bearing | | $ | 1,159,871 | | | $ | 1,221,162 | |
Non-interest bearing | | | 187,965 | | | | 170,590 | |
| | | | | | | | |
Total deposits | | | 1,347,836 | | | | 1,391,752 | |
Borrowed funds: | | | | | | | | |
Federal Home Loan Bank advances | | | 186,194 | | | | 50,000 | |
Repurchase agreements and other | | | 30,558 | | | | 90,578 | |
| | | | | | | | |
Total borrowed funds | | | 216,752 | | | | 140,578 | |
Advance payments by borrowers for taxes and insurance | | | 19,904 | | | | 20,060 | |
Accrued interest payable | | | 185 | | | | 550 | |
Accrued expenses and other liabilities | | | 8,738 | | | | 9,836 | |
| | | | | | | | |
Total liabilities | | | 1,593,415 | | | | 1,562,776 | |
| | | | | | | | |
Shareholders’ Equity: | | | | | | | | |
Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding | | | — | | | | — | |
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and 49,239,004 and 50,339,089 shares, respectively, outstanding | | | 174,385 | | | | 174,719 | |
Retained earnings | | | 128,512 | | | | 81,515 | |
Accumulated other comprehensive loss | | | (19,998 | ) | | | (41,665 | ) |
Treasury stock, at cost, 4,899,906 and 3,799,821 shares, respectively | | | (42,764 | ) | | | (39,495 | ) |
| | | | | | | | |
Total shareholders’ equity | | | 240,135 | | | | 175,074 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 1,833,550 | | | $ | 1,737,850 | |
| | | | | | | | |
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UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | | | For the Twelve Months Ended | |
| | | December 31, | | | September 30, | | | December 31, | | | December 31, | | | December 31, | |
| | | 2014 | | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
| | | (Dollars in thousands, except per share data) | |
Interest income | | | | | | | | | | | | |
Loans | | $ | 12,640 | | | $ | 12,436 | | | $ | 12,657 | | | $ | 49,559 | | | $ | 49,724 | |
Loans held for sale | | | 217 | | | | 114 | | | | 63 | | | | 454 | | | | 310 | |
Securities: | | | | | | | | | | | | |
Available for sale | | | 2,946 | | | | 3,002 | | | | 3,278 | | | | 12,314 | | | | 13,454 | |
Federal Home Loan Bank stock dividends | | | 182 | | | | 180 | | | | 267 | | | | 859 | | | | 1,107 | |
Other interest earning assets | | | 7 | | | | 4 | | | | 47 | | | | 58 | | | | 149 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest income | | | 15,992 | | | | 15,736 | | | | 16,312 | | | | 63,244 | | | | 64,744 | |
Interest expense | | | | | | | | | | | | |
Deposits | | | 1,583 | | | | 1,548 | | | | 1,780 | | | | 6,435 | | | | 7,623 | |
Federal Home Loan Bank advances | | | 443 | | | | 537 | | | | 530 | | | | 2,022 | | | | 2,106 | |
Repurchase agreements and other | | | 615 | | | | 926 | | | | 928 | | | | 3,368 | | | | 3,684 | |
| | | | | | | | | | | | | | | | | | | | |
Total interest expense | | | 2,641 | | | | 3,011 | | | | 3,238 | | | | 11,825 | | | | 13,413 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 13,351 | | | | 12,725 | | | | 13,074 | | | | 51,419 | | | | 51,331 | |
Provision for loan losses | | | 194 | | | | 116 | | | | 282 | | | | (1,271 | ) | | | 4,116 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 13,157 | | | | 12,609 | | | | 12,792 | | | | 52,690 | | | | 47,215 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest income | | | | | | | | | | | | |
Non-deposit investment income | | | 259 | | | | 408 | | | | 373 | | | | 1,415 | | | | 1,562 | |
Service fees and other charges | | | | | | | | | | | | |
Mortgage servicing fees | | | 684 | | | | 678 | | | | 704 | | | | 2,737 | | | | 2,808 | |
Deposit related fees | | | 1,051 | | | | 1,321 | | | | 1,499 | | | | 4,901 | | | | 5,564 | |
Mortgage servicing rights valuation | | | (54 | ) | | | 2 | | | | 4 | | | | (58 | ) | | | 680 | |
Mortgage servicing rights amortization | | | (428 | ) | | | (435 | ) | | | (431 | ) | | | (1,687 | ) | | | (2,143 | ) |
Other service fees | | | 17 | | | | 3 | | | | — | | | | 20 | | | | 74 | |
Net gains (losses): | | | | | | | | | | | | |
Securities available for sale | | | 82 | | | | 328 | | | | (1 | ) | | | 444 | | | | 2,577 | |
Mortgage banking income | | | (30 | ) | | | 676 | | | | 850 | | | | 1,570 | | | | 4,777 | |
Real estate owned and other repossessed assets charges, net | | | (172 | ) | | | (203 | ) | | | (215 | ) | | | (800 | ) | | | (2,181 | ) |
Card fees | | | 893 | | | | 837 | | | | 850 | | | | 3,354 | | | | 3,584 | |
Other income | | | 603 | | | | 559 | | | | 491 | | | | 1,845 | | | | 2,447 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-interest income | | | 2,905 | | | | 4,174 | | | | 4,124 | | | | 13,741 | | | | 19,749 | |
| | | | | | | | | | | | | | | | | | | | |
Non-interest expense | | | | | | | | | | | | |
Salaries and employee benefits | | | 6,683 | | | | 7,001 | | | | 7,176 | | | | 29,546 | | | | 29,142 | |
Occupancy | | | 847 | | | | 874 | | | | 906 | | | | 3,469 | | | | 3,390 | |
Equipment and data processing | | | 1,918 | | | | 1,791 | | | | 1,863 | | | | 7,470 | | | | 7,103 | |
Financial institutions tax | | | 201 | | | | 198 | | | | 351 | | | | 795 | | | | 1,567 | |
Advertising | | | 221 | | | | 181 | | | | 247 | | | | 838 | | | | 893 | |
Amortization of core deposit intangible | | | 16 | | | | 17 | | | | 20 | | | | 68 | | | | 86 | |
Prepayment penalty | | | 2,013 | | | | 1,396 | | | | — | | | | 3,409 | | | | — | |
FDIC assessment | | | 341 | | | | 295 | | | | 592 | | | | 1,216 | | | | 2,347 | |
Other insurance premiums | | | 85 | | | | 138 | | | | 137 | | | | 495 | | | | 662 | |
Professional fees | | | | | | | | | | | | |
Legal and consulting fees | | | 85 | | | | 184 | | | | 264 | | | | 607 | | | | 781 | |
Other professional fees | | | 381 | | | | 555 | | | | 609 | | | | 1,945 | | | | 2,135 | |
Real estate owned and other repossessed asset expenses | | | 92 | | | | 189 | | | | 310 | | | | 631 | | | | 1,450 | |
Other expenses | | | 1,056 | | | | 1,433 | | | | 2,502 | | | | 5,471 | | | | 7,181 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-interest expenses | | | 13,939 | | | | 14,252 | | | | 14,977 | | | | 55,960 | | | | 56,737 | |
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 2,123 | | | | 2,531 | | | | 1,939 | | | | 10,471 | | | | 10,227 | |
Income tax expense (benefit) | | | (685 | ) | | | (369 | ) | | | (300 | ) | | | (39,735 | ) | | | 200 | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | | 2,808 | | | | 2,900 | | | | 2,239 | | | | 50,206 | | | | 10,027 | |
Amortization of discount on preferred stock | | | — | | | | — | | | | — | | | | — | | | | 6,751 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings available to common shareholders | | $ | 2,808 | | | $ | 2,900 | | | $ | 2,239 | | | $ | 50,206 | | | $ | 3,276 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings per common share | | | | | | | | | | | | |
Basic | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.04 | | | $ | 1.00 | | | $ | 0.07 | |
Diluted | | | 0.06 | | | | 0.06 | | | | 0.04 | | | | 1.00 | | | | 0.07 | |
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UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | At or for the quarters ended | |
| | | December 31,
2014 | | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands, except per share data) | |
Financial Data | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,833,550 | | | $ | 1,801,540 | | | $ | 1,789,939 | | | $ | 1,749,144 | | | $ | 1,737,850 | |
Total loans, net | | | 1,148,093 | | | | 1,119,955 | | | | 1,086,771 | | | | 1,060,901 | | | | 1,029,192 | |
Total securities | | | 499,790 | | | | 507,125 | | | | 516,637 | | | | 517,388 | | | | 511,006 | |
Total deposits | | | 1,347,836 | | | | 1,346,377 | | | | 1,375,474 | | | | 1,398,067 | | | | 1,391,752 | |
Total shareholders’ equity | | | 240,135 | | | | 233,706 | | | | 235,049 | | | | 189,829 | | | | 175,074 | |
Net interest income | | | 13,351 | | | | 12,725 | | | | 12,741 | | | | 12,602 | | | | 13,074 | |
Provision for loan losses | | | 194 | | | | 116 | | | | (1,614 | ) | | | 33 | | | | 282 | |
Noninterest income | | | 2,905 | | | | 4,174 | | | | 3,438 | | | | 3,224 | | | | 4,124 | |
Noninterest expense | | | 13,939 | | | | 14,252 | | | | 14,226 | | | | 13,543 | | | | 14,977 | |
Income tax expense (benefit) | | | (685 | ) | | | (369 | ) | | | (38,837 | ) | | | 156 | | | | (300 | ) |
Net income | | | 2,808 | | | | 2,900 | | | | 42,404 | | | | 2,094 | | | | 2,239 | |
| | | | | |
Share Data | | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.84 | | | $ | 0.04 | | | $ | 0.04 | |
Diluted earnings per common share | | | 0.06 | | | | 0.06 | | | | 0.84 | | | | 0.04 | | | | 0.04 | |
Book value per common share | | | 4.88 | | | | 4.70 | | | | 4.66 | | | | 3.76 | | | | 3.48 | |
Tangible book value per common share | | | 4.88 | | | | 4.70 | | | | 4.66 | | | | 3.76 | | | | 3.47 | |
Market value per common share | | | 5.37 | | | | 4.68 | | | | 4.13 | | | | 3.92 | | | | 3.57 | |
| | | | | |
Common shares outstanding at end of period | | | 49,239 | | | | 49,682 | | | | 50,452 | | | | 50,422 | | | | 50,339 | |
Weighted average shares outstanding—basic | | | 49,244 | | | | 49,698 | | | | 50,274 | | | | 50,196 | | | | 50,114 | |
Weighted average shares outstanding—diluted | | | 49,531 | | | | 49,958 | | | | 50,495 | | | | 50,451 | | | | 50,360 | |
| | | | | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
Return on average assets(1) | | | 0.62 | % | | | 0.66 | % | | | 9.67 | % | | | 0.48 | % | | | 0.51 | % |
Return on average equity(2) | | | 4.70 | % | | | 4.99 | % | | | 84.84 | % | | | 4.52 | % | | | 4.82 | % |
Net interest margin | | | 3.16 | % | | | 3.06 | % | | | 3.09 | % | | | 3.07 | % | | | 3.17 | % |
Efficiency ratio | | | 72.85 | %(3) | | | 76.55 | %(3) | | | 87.77 | % | | | 83.45 | % | | | 85.89 | % |
Nonperforming loans to total loans, end of period | | | 1.78 | % | | | 1.85 | % | | | 1.87 | % | | | 2.17 | % | | | 2.29 | % |
Nonperforming assets to total assets, end of period | | | 1.30 | % | | | 1.40 | % | | | 1.39 | % | | | 1.58 | % | | | 1.72 | % |
Allowance for loan loss as a percent of loans, end of period | | | 1.52 | % | | | 1.59 | % | | | 1.65 | % | | | 1.90 | % | | | 2.01 | % |
Delinquent loans to total loans, end of period | | | 1.82 | % | | | 2.10 | % | | | 1.86 | % | | | 2.07 | % | | | 2.32 | % |
| (1) | Net income divided by average total assets |
| (2) | Net income divided by average total equity |
| (3) | Excludes penalty on the prepayment of repurchase agreements |
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UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | At or for the quarters ended | |
| | | December 31,
2014 | | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands) | |
Loan Portfolio Composition | | | | | | | | | | | | | | | | | | | | |
Commercial loans | | | | | | | | | | | | | | | | | | | | |
Multi-family | | $ | 60,546 | | | $ | 56,445 | | | $ | 52,938 | | | $ | 54,233 | | | $ | 54,485 | |
Owner/nonowner occupied commercial real estate | | | 121,595 | | | | 123,260 | | | | 122,066 | | | | 125,796 | | | | 131,251 | |
Land | | | 9,484 | | | | 9,487 | | | | 9,635 | | | | 9,829 | | | | 9,683 | |
Construction | | | 13,959 | | | | 4,667 | | | | 1,010 | | | | 207 | | | | — | |
Commercial and industrial | | | 45,222 | | | | 39,853 | | | | 39,127 | | | | 40,013 | | | | 26,141 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 250,806 | | | | 233,712 | | | | 224,776 | | | | 230,078 | | | | 221,560 | |
Residential mortgage loans | | | | | | | | | | | | | | | | | | | | |
Real estate | | | 694,105 | | | | 669,270 | | | | 645,211 | | | | 610,879 | | | | 585,025 | |
Construction | | | 39,218 | | | | 52,735 | | | | 51,974 | | | | 55,082 | | | | 53,349 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 733,323 | | | | 722,005 | | | | 697,185 | | | | 665,961 | | | | 638,374 | |
Consumer loans | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 180,754 | | | | 181,474 | | | | 182,027 | | | | 184,409 | | | | 189,231 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 180,754 | | | | 181,474 | | | | 182,027 | | | | 184,409 | | | | 189,231 | |
| | | | | | | | | | | | | | | | | | | | |
Total loans | | | 1,164,883 | | | | 1,137,191 | | | | 1,103,988 | | | | 1,080,448 | | | | 1,049,165 | |
Less: | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | 17,687 | | | | 18,132 | | | | 18,264 | | | | 20,554 | | | | 21,116 | |
Deferred loan costs, net | | | (897 | ) | | | (896 | ) | | | (1,047 | ) | | | (1,007 | ) | | | (1,143 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 16,790 | | | | 17,236 | | | | 17,217 | | | | 19,547 | | | | 19,973 | |
| | | | | | | | | | | | | | | | | | | | |
Total loans, net | | $ | 1,148,093 | | | $ | 1,119,955 | | | $ | 1,086,771 | | | $ | 1,060,901 | | | $ | 1,029,192 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | At or for the quarters ended | |
| | | December 31,
2014 | | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands) | |
Deposit Portfolio Composition | | | | | | | | | | | | | | | | | | | | |
Checking accounts | | | | | | | | | | | | | | | | | | | | |
Interest bearing checking accounts | | $ | 137,511 | | | $ | 131,266 | | | $ | 133,999 | | | $ | 136,031 | | | $ | 132,751 | |
Non-interest bearing checking accounts | | | 187,965 | | | | 181,631 | | | | 185,411 | | | | 185,620 | | | | 170,590 | |
| | | | | | | | | | | | | | | | | | | | |
Total checking accounts | | | 325,476 | | | | 312,897 | | | | 319,410 | | | | 321,651 | | | | 303,341 | |
Savings accounts | | | 274,149 | | | | 273,192 | | | | 277,404 | | | | 278,906 | | | | 267,515 | |
Money market accounts | | | 312,911 | | | | 313,513 | | | | 326,738 | | | | 329,163 | | | | 328,625 | |
| | | | | | | | | | | | | | | | | | | | |
Total non-time deposits | | | 912,536 | | | | 899,602 | | | | 923,552 | | | | 929,720 | | | | 899,481 | |
Retail certificates of deposit | | | 435,300 | | | | 446,774 | | | | 451,922 | | | | 468,347 | | | | 492,271 | |
| | | | | | | | | | | | | | | | | | | | |
Total certificates of deposit | | | 435,300 | | | | 446,774 | | | | 451,922 | | | | 468,347 | | | | 492,271 | |
| | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 1,347,836 | | | $ | 1,346,376 | | | $ | 1,375,474 | | | $ | 1,398,067 | | | $ | 1,391,752 | |
| | | | | | | | | | | | | | | | | | | | |
Certificates of deposit as a percent of total deposits | | | 32.30 | % | | | 33.18 | % | | | 32.86 | % | | | 33.50 | % | | | 35.37 | % |
10
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | At or for the quarters ended | |
| | | December 31,
2014 | | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands) | |
Allowance For Loan Losses | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 18,132 | | | $ | 18,264 | | | $ | 20,554 | | | $ | 21,116 | | | $ | 21,032 | |
Provision | | | 194 | | | | 116 | | | | (1,614 | ) | | | 33 | | | | 282 | |
Net (chargeoffs) recoveries | | | (639 | ) | | | (248 | ) | | | (676 | ) | | | (595 | ) | | | (198 | ) |
| | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 17,687 | | | $ | 18,132 | | | $ | 18,264 | | | $ | 20,554 | | | $ | 21,116 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | At or for the quarters ended | |
| | | December 31,
2014 | | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands) | |
Net (Charge-offs) Recoveries | | | | | | | | | | | | | | | | | | | | |
Commercial loans | | | | | | | | | | | | | | | | | | | | |
Multi-family | | $ | — | | | $ | — | | | $ | (135 | ) | | $ | (5 | ) | | $ | — | |
Owner/nonowner occupied commercial real estate | | | (25 | ) | | | (9 | ) | | | 56 | | | | (252 | ) | | | (29 | ) |
Land | | | — | | | | — | | | | — | | | | — | | | | 12 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | (620 | ) |
Commercial and industrial | | | 199 | | | | 158 | | | | 218 | | | | 137 | | | | 139 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 174 | | | | 149 | | | | 139 | | | | (120 | ) | | | (498 | ) |
Residential mortgage loans | | | | | | | | | | | | | | | | | | | | |
Real estate | | | (141 | ) | | | (278 | ) | | | (181 | ) | | | (163 | ) | | | 42 | |
Construction | | | (488 | ) | | | (90 | ) | | | (330 | ) | | | (79 | ) | | | 451 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | (629 | ) | | | (368 | ) | | | (511 | ) | | | (242 | ) | | | 493 | |
Consumer loans | | | | | | | | | | | | | | | | | | | | |
Consumer | | | (184 | ) | | | (29 | ) | | | (304 | ) | | | (233 | ) | | | (193 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total | | | (184 | ) | | | (29 | ) | | | (304 | ) | | | (233 | ) | | | (193 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total net (chargeoffs) recoveries | | $ | (639 | ) | | $ | (248 | ) | | $ | (676 | ) | | $ | (595 | ) | | $ | (198 | ) |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | At or for the quarters ended | |
| | | December 31,
2014 | | | September 30,
2014 | | | June 30,
2014 | | | March 31,
2014 | | | December 31,
2013 | |
| | | (Dollars in thousands) | |
Nonperforming Loans | | | | | | | | | | | | | | | | | | | | |
Commercial loans | | | | | | | | | | | | | | | | | | | | |
Multi-family | | $ | 93 | | | $ | 114 | | | $ | 133 | | | $ | 1,158 | | | $ | 641 | |
Owner/nonowner occupied commercial real estate | | | 5,781 | | | | 6,804 | | | | 4,902 | | | | 5,033 | | | | 5,560 | |
Land | | | 531 | | | | 531 | | | | 532 | | | | 532 | | | | 496 | |
Construction | | | — | | | | — | | | | — | | | | — | | | | — | |
Commercial and industrial | | | 4,016 | | | | 4,144 | | | | 4,151 | | | | 4,155 | | | | 4,158 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 10,421 | | | | 11,593 | | | | 9,718 | | | | 10,878 | | | | 10,855 | |
Residential mortgage loans | | | | | | | | | | | | | | | | | | | | |
Real estate | | | 6,816 | | | | 4,700 | | | | 5,380 | | | | 6,133 | | | | 6,356 | |
Construction | | | 1,051 | | | | 2,453 | | | | 2,553 | | | | 2,884 | | | | 3,084 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 7,867 | | | | 7,153 | | | | 7,933 | | | | 9,017 | | | | 9,440 | |
Consumer loans | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 2,163 | | | | 1,960 | | | | 2,663 | | | | 3,089 | | | | 3,293 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 2,163 | | | | 1,960 | | | | 2,663 | | | | 3,089 | | | | 3,293 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans | | $ | 20,451 | | | $ | 20,706 | | | $ | 20,314 | | | $ | 22,984 | | | $ | 23,588 | |
| | | | | | | | | | | | | | | | | | | | |
Total Nonperforming Loans and Nonperforming Assets | | | | | | | | | | | | | | | | | | | | |
Past due 90 days and on nonaccrual status | | $ | 16,017 | | | $ | 18,114 | | | $ | 16,636 | | | $ | 18,708 | | | $ | 20,188 | |
Past due 90 days and still accruing | | | — | | | | — | | | | — | | | | — | | | | 45 | |
| | | | | | | | | | | | | | | | | | | | |
Past due 90 days | | | 16,017 | | | | 18,114 | | | | 16,636 | | | | 18,708 | | | | 20,233 | |
Past due less than 90 days and on nonaccrual | | | 4,434 | | | | 2,592 | | | | 3,678 | | | | 4,276 | | | | 3,355 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming loans | | | 20,451 | | | | 20,706 | | | | 20,314 | | | | 22,984 | | | | 23,588 | |
Other real estate owned | | | 3,345 | | | | 4,445 | | | | 4,546 | | | | 4,700 | | | | 6,318 | |
Repossessed assets | | | 122 | | | | 42 | | | | 2 | | | | — | | | | 23 | |
| | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 23,918 | | | $ | 25,193 | | | $ | 24,862 | | | $ | 27,684 | | | $ | 29,929 | |
| | | | | | | | | | | | | | | | | | | | |
11
