EXHIBIT 99.1
UNION COMMUNITY BANCORP
P.O. Box 151, 221 E. Main Street
Crawfordsville, Indiana 47933
For Immediate Release
Date: October 20, 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 nine and three months ended September
30, 2004. For the nine months ended September 30, 2004, the Company had net
income of $1,303,000 compared to $1,864,000 the nine months ended September 30,
2003. Basic and diluted earnings per share were $0.69 and $0.68 respectively for
the nine months ended September 30, 2004 compared to $0.93 for basic and $0.92
for diluted for the 2003 period. For the three months ended September 30, 2004
net income was $451,000 compared to $668,000 for the 2003 three month period.
Basic earnings per share were $0.25 and diluted earnings per share were $0.24
for the three months ended September 30, 2004 compared to $0.35 per share for
basic and $0.34 per share for diluted for the 2003 three month period.
The decrease in net income for the nine month period was primarily attributable
to a decrease in net interest income. Amortization of purchase accounting
adjustments reduced interest expense by $80,000 for the 2004 nine-month period
compared to $377,000 during 2003 period. Also contributing to the decrease in
net interest income was a decrease in interest rate spread from 3.04% for the
nine month period ending September 30, 2003 to 2.89% for the comparable 2004
nine month period.
The decrease in net income for the three-month period ending September 30, 2004
compared to the September 30, 2003 period was also primarily due to a decrease
in net interest income. Amortization of purchase accounting adjustments reduced
interest expense by $27,000 for the three-months ended September 30, 2004
compared to a reduction of $126,000 for the 2003 three month period. Interest
rate spread decreased from 3.11% for the three month period in 2003 to 2.83% for
the 2004 three month period.
From December 31, 2003 to September 30, 2004, total assets decreased $3.8
million to $257.8 million and net loans decreased $1.6 million to $219.6
million. During the same time frame, deposits decreased by $1.6 million to
$188.6 million. Shareholders' equity decreased $2.3 million to $33.3 million at
September 30, 2004. During the nine month period the Company repurchased 165,000
shares of common stock at a total cost of $3.0 million for an average cost of
$17.92 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: September 30, December 31,
2004 2003
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Assets
Cash $ 841 $ 785
Interest-bearing demand deposits 8,775 11,104
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Cash and cash equivalents 9,616 11,889
Interest-bearing deposits 2,131 150
Investment securities available for sale 5,002 5,908
Investment securities held to maturity 205 494
Loans, net 219,598 221,230
Premises and equipment 4,257 4,628
Federal Home Loan Bank stock 3,681 3,556
Investment in limited partnerships 2,215 2,215
Foreclosed assets and real estate held for
development, net 1,468 1,348
Goodwill 2,393 2,393
Cash value life insurance 5,337 5,149
Other assets 1,850 2,617
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Total assets $ 257,753 $261,577
Liabilities
Deposits $188,637 $190,192
Federal Home Loan Bank advances 33,533 33,814
Note payable - 132
Other liabilities 2,330 1,909
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Total liabilities 224,500 226,047
Shareholders' equity 33,253 35,530
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Total liabilities and
shareholders' equity $257,753 $261,577
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Book value per common share $17.18 $16.92
Shares outstanding 1,935,000 2,100,000
Average equity to average assets 13.38% 13.26%
Allowance for loan losses to total loans 0.49% 0.55%
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
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Operating Data:
Total interest and dividend income $3,447 $3,823 $10,514 $12,001
Total interest expense 1,572 1,669 4,718 5,375
------ ------ ------- -------
Net interest income 1,875 2,154 5,796 6,626
Provision for loan losses 60 119 173 178
------ ------ ------- -------
Net interest income after provision for loan
losses 1,815 2,035 5,623 6,448
------ ------ ------- -------
Other income:
Service charges on deposit accounts 72 37 179 108
Equity in income of limited partnership -- -- -- 10
Other 127 95 364 168
------ ------ ------- -------
Total other income 199 132 543 286
------ ------ ------- -------
Other expenses:
Salaries and employee benefits 759 564 2,318 2,043
Net occupancy expense and equipment expenses 160 154 487 459
Legal and professional fees 83 67 275 241
Data processing 109 94 317 298
Other 245 286 928 861
------ ------ ------- -------
Total other expenses 1,356 1,165 4,325 3,902
------ ------ ------- -------
Income before income taxes 658 1,002 1,841 2,832
Income taxes 207 334 538 968
------ ------ ------- -------
Net income $ 451 $ 668 $ 1,303 $ 1,864
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Other Data:
Return on average assets 0.70% 0.99% 0.66% 0.90%
Return on average equity 5.31% 7.59% 4.96% 6.83%
Basic earnings per share $0.25 $0.35 $0.69 $0.93
Diluted earnings per share $0.24 $0.34 $0.68 $0.92
Cash dividends per common share $0.15 $0.15 $0.45 $0.45