Exhibit 99.1
UNION COMMUNITY BANCORP
P.O. Box 151, 221 E. Main Street
Crawfordsville, Indiana 47933
Date: April 26, 2004
Contact: J. Lee Walden, Chief Financial Officer
(765) 362-2400
UNION COMMUNITY BANCORP RELEASES EARNINGS
(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 ended March 31, 2004.
For the three months ended March 31, 2004, the Company had net income of
$444,000 compared to $645,000 the first quarter of 2003. Basic and diluted
earnings per share were $0.23 for the three months ended March 31, 2004 compared
to $0.31 for the 2003 period.
The decrease in net income for the period was primarily attributable to a
decrease in net interest income and the addition to the reserve for loan losses
caused by a loss on a participation loan secured by a nursing home. Amortization
of purchase accounting adjustments reduced interest expense by $27,000 in the
2004 period compared to a reduction of $126,000 for the 2003 period. The net
yield on average interest-earning assets decreased from 3.47% for the 2003 three
month period to 3.20% for the comparable 2004 period. Non-interest income
increased $90,000 while the increase in non-interest expense was $46,000.
From December 31, 2003 to March 31, 2004, total assets increased $3.3 million to
$264.9 and net loans increased $2.3 million to $223.6 million. During the same
time frame, deposits increased by $3.3 million to $193.4 million. Shareholders'
equity increased $266,000 to $35.8 million at March 31, 2004.
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 by 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.
-END-
SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY
(Unaudited)
Balance Sheet Data: March 31, December 31,
2004 2003
Assets --------- ---------
Cash $ 835 $ 785
Interest-bearing demand deposits 11,524 11,104
--------- ---------
Cash and cash equivalenst 12,359 11,889
Interest-bearing deposits 2,150 150
Investment securities available for sale 4,998 5,908
Investment securities held to maturity 316 494
Loans, net 223,577 221,230
Premises and equipment 4,347 4,628
Federal Home Loan Bank stock 3,601 3,556
Investment in limited partnership 2,215 2,215
Foreclosed assets and real estate held for development, net 1,324 1,348
Goodwill 2,393 2,393
Cash value of life insurance 5,213 5,149
Other Assets 2,414 2,617
--------- ---------
Total assets $ 264,907 $ 261,577
========= =========
Liabilities
Deposits $ 193,442 $ 190,192
Federal Home Loan Bank advances 33,667 33,814
Note payable -- 132
Other liabilities 2,002 1,909
--------- ---------
Total liabilities 229,111 226,047
Shareholders' equity 35,796 35,530
--------- ---------
Total liabilities and shareholders' equity 264,907 $261,577
========= =========
Book value per common share $17.05 $16.92
Shares outstanding 2,100,000 2,100,000
Average equity to average assets 13.63% 13.26%
Allowance for loan losses to total loans 0.53% 0.55%
Three Months Ended
March 31,
2004 2003
--------- ---------
Operating Data:
Total interest and dividend income $ 3,554 $ 4,226
Total interest expense 1,598 1,921
--------- ---------
Net interest income 1,956 2,305
Provision for loan losses 110 30
--------- ---------
Net interest income after provision for loan losses 1,846 2,275
--------- ---------
Other income (losses):
Service charges of deposit accounts 38 36
Equity in income (losses) of limited partnership -- 10
Other 121 23
--------- ---------
Total other income (losses) 159 69
--------- ---------
Other expenses:
Salaries and employee benefits 746 720
Net occupancy and equipment expenses 171 156
Legal and professional fees 96 86
Data processing 101 101
Other 274 279
--------- ---------
Total other expenses 1,388 1,342
--------- ---------
Income before income taxes 617 1,002
Income taxes 173 357
--------- ---------
Net income $ 444 $ 645
========= =========
Other Data:
Return on average assets 0.68% 0.93%
Return on average equity 4.97% 6.89%
Basic earnings per share $0.23 $0.31
Diluted earnings per share $0.23 $0.31
Cash dividends per common share $0.15 $0.15