Exhibit 99.1
UNION COMMUNITY BANCORP
P.O. Box 151, 221 E. Main Street
Crawfordsville, Indiana 47933
For Immediate Release
Date: July 15, 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 six and three months ended June 30,
2004. For the six months ended June 30, 2004, the Company had net income of
$852,000 compared to $1,196,000 the six months ended June 30, 2003. Basic and
diluted earnings per share were $0.45 and $0.44 respectively for the six months
ended June 30, 2004 compared to $0.59 for basic and $0.58 for diluted for the
2003 period. For the three months ended June 30, 2004 net income was $408,000
compared to $551,000 for the 2003 three month period. Basic earnings per share
were $0.22 and diluted earnings per share were $0.21 for the three months ended
June 30, 2004 compared to $0.28 per share for both basic and diluted for the
2003 three month period.
The decrease in net income for the six month period was primarily attributable
to a decrease in net interest income and losses on the sale of real estate
owned. Amortization of purchase accounting adjustments reduced interest expense
by $53,000 for the 2004 six-month period compared to $252,000 during 2003
period. Also contributing to the decrease in net interest income was a decrease
in interest rate spread from 3.00% for the six month period ending June 30, 2003
to 2.92% for the comparable 2004 six month period. The net loss on the sale of
real estate owned totaled $121,000 for the six months ended June 30, 2004
compared to $14,000 for the 2003 six month period.
The decrease in net income for the three-month period ending June 30, 2004
compared to the June 30, 2003 period was also primarily due to a decrease in net
interest income and an increase in non-interest expenses mainly due to the loss
on sales of real estate owned. Amortization of purchase accounting adjustments
reduced interest expense by $27,000 for the three-months ended June 30, 2004
compared to a reduction of $126,000 for the 2003 three month period. Interest
rate spread decreased from 2.94% for the three month period in 2003 to 2.91% for
the 2004 three month period. The net loss on the sale of real estate owned
totaled $100,000 for the three months ended June 30, 2004 compared to a net gain
on the sale of real estate owned of $4,000 for the 2003 three month period.
From December 31, 2003 to June 30, 2004, total assets decreased $37,000 to
$261.5 million and net loans increased $832,000 to $222.1 million. During the
same time frame, deposits increased by $1.9 million to $192.1 million.
Shareholders' equity decreased $1.6 million to $33.9 million at June 30, 2004.
During the six month period the Company repurchased 112,000 shares of common
stock at a total cost of $2.0 million for an average cost of $17.84 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.
-END-
SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY
(Unaudited)
Balance Sheet Data: June 30, December 31,
2004 2003
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Assets
Cash $ 743 $ 785
Interest-bearing demand deposits 10,843 11,104
-----------------------------------
Cash and cash equivalents 11,586 11,889
Interest-bearing deposits 2,126 150
Investment securities available for sale 4,903 5,908
Investment securities held to maturity 273 494
Loans, net 222,062 221,230
Premises and equipment 4,277 4,628
Federal Home Loan Bank stock 3,641 3,556
Investment in limited partnerships 2,215 2,215
Foreclosed assets and real estate held for development, net 906 1,348
Goodwill 2,393 2,393
Cash value life insurance 5,277 5,149
Other assets 1,881 2,617
-----------------------------------
Total assets $261,540 $261,577
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Liabilities
Deposits $192,054 $190,192
Federal Home Loan Bank advances 33,640 33,814
Note payable - 132
Other liabilities 1,940 1,909
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Total liabilities 227,634 226,047
Shareholders' equity 33,906 35,530
-----------------------------------
Total liabilities and shareholders'
equity $261,540 $261,577
====================================
Book value per common share $17.06 $16.92
Shares outstanding 1,988,000 2,100,000
Average equity to average assets 13.51% 13.26%
Allowance for loan losses to total loans 0.52% 0.55%
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
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Operating Data:
Total interest and dividend income $3,513 $3,952 $7,067 $8,179
Total interest expense 1,548 1,785 3,146 3,706
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Net interest income 1,965 2,167 3,921 4,473
Provision for loan losses 3 30 113 60
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Net interest income after provision
for loan losses 1,962 2,137 3,808 4,413
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Other income:
Service charges on deposit accounts 68 35 106 71
Equity in income of limited
partnership -- -- -- 10
Other 117 50 237 72
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Total other income 185 85 343 153
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Other expenses:
Salaries and employee benefits 813 759 1,559 1,479
Net occupancy expense and equipment
expenses 157 149 327 305
Legal and professional fees 97 89 193 174
Data processing 107 103 208 204
Other 407 294 681 575
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Total other expenses 1,581 1,394 2,968 2,737
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Income before income taxes 566 828 1,183 1,829
Income taxes 158 277 331 633
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Net income $ 408 $ 551 $852 $1,196
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Other Data:
Return on average assets 0.62% 0.79% 0.65% 0.86%
Return on average equity
4.61% 6.02% 4.79% 6.46%
Basic earnings per share $0.22 $0.28 $0.45 $0.59
Diluted earnings per share $0.21 $0.28 $0.44 $0.58
Cash dividends per common share $0.15 $0.15 $0.30 $0.30