EXHIBIT 99.1
[LOGO] UNITED FINANCIAL CORP.
FOR IMMEDIATE RELEASE
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July 24, 2003 7:00 a.m. MT
Contact: Kurt R. Weise
President & CEO
763-512-5299
UNITED FINANCIAL CORP. ANNOUNCES RECORD JUNE 30, 2003 EARNINGS
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AND DECLARES QUARTERLY DIVIDEND
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HIGHLIGHTS: 43% INCREASE IN EPS FOR THE SIX MONTHS ENDED 2003 OVER 2002; TOTAL
ASSETS OF $384 MILLION AT JUNE 30, 2003; NET INTEREST INCOME FOR THE SIX MONTHS
ENDED JUNE 30, 2003 UP 6% COMPARED TO 2002.
Great Falls, Montana July 24, 2003----United Financial Corp. ("United")
(NASDAQ-UBMT) today reported net income for the quarter ended June 30, 2003 of
$1,143,784, or basic and diluted earnings per share of $.47 and $.46,
respectively, compared with $741,105 or basic and diluted earnings per share of
$.30 , for the same quarter in 2002. Net income for the six month period ended
June 30, 2003 was $2,125,924, or basic and diluted earnings per share of $.87
and $.85, respectively, compared to $1,478,733, or basic and diluted earnings
per share of $.61 in the same period a year ago.
United's assets at June 30, 2003 were $384 million compared to $382 million at
June 30, 2002. Net loans were $255 million at June 30, 2003 compared to $252
million a year ago and deposits increased to $300 million at June 30, 2003
compared to $288 million a year ago. Net interest income rose to $3.5 million in
the quarter ended June 30, 2003 compared to $3.3 million for the same quarter
one year ago. United's shareholders' equity was $31.7 million at June 30, 2003,
and book value per share was $12.97. Outstanding shares at June 30, 2003 were
2,441,669. All financial numbers were restated to take into effect a 3 for 2
stock split that was paid June 30, 2003.
The Board of Directors of United declared a cash dividend of $.18 per share, to
shareholders of record on August 19, 2003, payable on September 2, 2003. This is
an increase of about 2% from $.177 per share, previously being paid by United
each quarter.
Regarding the previously announced proposed sale of Valley Bancorp, Inc. (a
majority-owned subsidiary of United) to Marquette Financial Companies, United
provides the following update: approvals of the merger application have been
received from the Federal Reserve Bank and the Arizona State Banking Department,
Valley's shareholder meeting has been scheduled for July 29, 2003 and a closing
date has been scheduled for July 31, 2003. United expects to receive
approximately $9.0 million from the sale of its 65% ownership of Valley.
President and CEO, Kurt Weise said, "We are extremely pleased with our second
quarter and six month financial results. Our market share continues to increase
and our team of dedicated employees must be commended for their hard work. We
expect that mortgage refinancing will slow with the increase in long term rates,
however, our core business remains active and on target."
United's net interest margin as a percentage of average earning assets increased
to 4.04% in the second quarter of 2003 compared to 3.66% in the same quarter in
2002. United originated $173 million in real estate loans in the first six
months of 2003 compared to $79 million in the six month period a year ago.
Non-performing loans totaled $ .9 million at June 30, 2003 compared to $.9 at
December 31, 2002. United's 90 days past due and non-accrual loans totaled .36%
of loans as of June 30, 2003, compared to its March 31, 2003 peer of .80%, the
most recent peer information available.
Forward-Looking Statements
When used in this press release, the words or phrases 'will likely result in',
'are expected to', 'will continue', 'is anticipated', 'estimate', 'could', or
'project' or similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from historical earnings
and those presently anticipated or projected including general economic
conditions, business conditions in the banking industry, the regulatory
environment, new legislation, vendor quality and efficiency, employee retention
factors, rapidly changing technology and evolving banking industry standards,
competitive standards, competitive factors including increased competition among
financial institutions and fluctuating interest rate environments. Readers are
cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. Readers should
also carefully review the risk factors described in the company's most recent
Annual Report on Form 10-K for the period ending December 31, 2002 and other
documents the company files from time to time with the Securities Exchange
Commission.
United Financial Corp. is a bank holding company based in Great Falls, Montana,
and is the parent of Heritage Bank, with thirteen locations in Montana. United
also is the majority shareholder of Valley Bancorp, a commercial banking
organization located in Phoenix, Arizona, with offices in Phoenix and
Scottsdale, Arizona.
UNITED FINANCIAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
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Income statement amounts
Net interest income $ 3,526 $ 3,301 $ 6,946 6,525
Provision for losses on loans 333 215 625 455
Noninterest income
Investment securities gains -- -- 18 86
Gain on the sale of loans 1,806 742 3,117 1,426
Other 381 334 700 655
Noninterest expense 3,476 2,901 6,605 5,721
Earnings before income taxes
and minority interest 1,904 1,261 3,551 2,516
Income taxes 717 470 1,336 938
Minority Interest (43) (50) (89) (99)
Net earnings 1,144 741 2,126 1,479
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Per common share data
Net earnings
- basic $ 0.47 0.30 0.87 0.61
- diluted 0.46 0.30 0.85 0.60
Cash dividends 0.18 0.17 0.35 0.32
Book value 12.97 12.19
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Balances at end of period
Loans, gross 259,278 255,063
Allowance for losses on loans 3,993 3,261
Nonperforming assets
Nonaccrual loans 555 1,507
Foreclosed properties 562 567
Available for sale investment securities 57,498 79,179
Total assets 383,673 381,584
Goodwill and Identifiable Intangible Assets 3,429 3,455
Total deposits 299,596 288,474
Total stockholders' equity 31,671 29,722
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Other supplemental information
Net earnings
Return on average assets 1.12% 0.77%
Return on average
common equity 13.78% 10.30%
Allowance for loan losses
to loans 1.54% 1.28%
Common shares outstanding
(end of period, in
thousands) 2,442 2,439
Net interest margin 3.95% 3.62%
Shareholders' equity
to total assets (excluding trust preferred stock) 8.25% 7.79%
Dividend payout ratio 40.54% 53.54%
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