1
FOR IMMEDIATE RELEASE
---------------------
CONTACT: DWIGHT V. NEESE
PRESIDENT
203 WEST MAIN STREET
UNION, SC 29379-0866
(864) 429-1863
UNION FINANCIAL BANCSHARES, INC.
ANNOUNCES SECOND QUARTER EARNINGS
UNION, SOUTH CAROLINA - April 15, 2003: Union Financial Bancshares, Inc.
(Nasdaq: UFBS) announced earnings of $497,000 for the quarter ended March 31,
2003 compared to earnings of $472,000 for the second quarter of fiscal 2002, a
5.30% increase. Earnings per share were $.25 per share (basic) for the second
quarter of fiscal 2003 versus $.24 per share (basic) for the second quarter of
fiscal 2002. Net income for the six months ended March 31, 2003 was $950,000 or
$.48 per share (basic) versus $900,000 or $.46 per share (basic) for the same
period in 2002, a 5.56% increase.
At March 31, 2003, assets totaled $344.8 million, a 10.87% increase from $310.9
million at September 30, 2002. Net loans receivable decreased $7.3 million or
4.55% to $154.2 million at March 31, 2003, compared to $161.6 million at
September 30, 2002. Investment and mortgage-backed securities at March 31, 2003,
increased 34.10% to $157.8 million from $117.6 million at September 30, 2002.
Deposits at March 31, 2003, increased 6.37% to $213.1 million from $200.3
million at September 30, 2002.
Commenting on the second quarter results, Dwight V. Neese, President and Chief
Executive Officer, stated: "We are pleased to report our operating results for
second quarter of fiscal year 2003. Our non-interest income, excluding a gain on
the sale of securities of $182,000 for the quarter ended March 31, 2003 and a
loss on the sale of securities of $42,000 for the quarter ended March 31, 2002,
grew at a very healthy rate of 8.33%, while non-interest expense increased only
4.86%. Although our net loans declined from September 30, 2002 by $7.3 million,
our consumer and commercial loan portfolios increased 14.62% over the same
period of time. Overall, we are pleased with the results of the quarter."
The Company declared a quarterly dividend of $0.10 per share on its outstanding
common stock, payable on May 15, 2003 to shareholders of record on April 29,
2003.
Union Financial Bancshares is the holding company for Provident Community Bank
which operates six banking locations in the upstate of South Carolina. At March
31, 2003, Union Financial had $344.8 million in total assets and stockholders'
equity of $27.9 million.
2
Union Financial Bancshares, Inc.
Second Quarter - Fiscal Year Ending September 30, 2003
FINANCIAL HIGHLIGHTS
(UNAUDITED) ($ IN THOUSAND, EXCEPT SHARE DATA)
QUARTER ENDED YEAR ENDED
BALANCE SHEET 3/31/03 9/30/02 $ CHANGE % CHANGE
- ------------- ------------ ------------ ------------ ------------
Total assets $344,762 $310,968 $33,794 10.87%
Cash and interest-bearing deposits 7,373 8,731 (1,358) -15.55%
Investment & mortgage-backed securities 157,748 117,633 40,115 34.10%
Loans receivable (net) 154,222 161,576 (7,354) -4.55%
Goodwill and intangible assets 5,325 5,643 (318) -5.64%
Deposits 213,067 200,303 12,764 6.37%
Advances and other borrowings 92,725 74,000 18,725 25.30%
Trust preferred corporate obligations 8,000 8,000 0 0.00%
Stockholders' equity 27,939 27,198 741 2.72%
Outstanding shares 1,965,138 1,958,069 7,069 0.36%
Book value per share $14.22 $13.89 $0.33 2.35%
Tangible book value per share $11.51 $11.01 $0.50 4.54%
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
------------------------ ------------------------
INCOME STATEMENTS 2003 2002 2003 2002
- -----------------
----------- ----------- ------------ -----------
Net interest income $2,128 $2,286 $4,172 $4,283
Provision for loan losses 235 250 415 340
----------- ----------- ------------ -----------
Net interest income after 1,893 2,036 3,757 3,943
loan loss provision
Noninterest income 559 306 999 570
Noninterest expense 1,791 1,707 3,485 3,313
Income tax 164 163 321 300
----------- ----------- ------------ -----------
Net income $ 497 $ 472 $ 950 $ 900
----------- ----------- ------------ -----------
Earnings per share basic $0.25 $0.24 $0.48 $0.46
----------- ----------- ------------ -----------
Earnings per share diluted $0.24 $0.25 $0.46 $0.45
----------- ----------- ------------ -----------
SIX MONTHS ENDED
MARCH 31,
------------------------------
KEY FINANCIAL RATIOS 2003 2002
- -------------------- ------------------------------
Return on average assets 0.58% 0.62%
Return on average stockholders' equity 6.82% 7.32%
Operating expense to average assets 2.14% 2.27%
Capital to average assets 10.96% 11.17%