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EXHIBIT 99.1
PRESS RELEASE
Contact: United Community Bancorp
William F. Ritzmann, President and Chief Executive Officer
(812) 537-4822
UNITED COMMUNITY BANCORP REPORTS FIRST QUARTER RESULTS
Lawrenceburg, Indiana - October 30, 2009 - United Community Bancorp (the
"Company") (Nasdaq: UCBA), the holding company for United Community Bank (the
"Bank"), today reported earnings of $222,000, or $0.03 per diluted share, for
the quarter ended September 30, 2009, compared to net income of $387,000, or
$0.05 per diluted share, for the quarter ended September 30, 2008.
United Community Bancorp
Statements of Income
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED
9/30/2009 9/30/2008
--------- ---------
NET INCOME $222 $387
BASIC EARNINGS PER SHARE 0.03 0.05
DILUTED EARNINGS PER SHARE 0.03 0.05
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC 7,612,070 7,597,109
DILUTED 7,612,070 7,597,109
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UNITED COMMUNITY BANCORP
SUMMARIZED STATEMENTS OF FINANCIAL CONDITION
- ---------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
(IN THOUSANDS, AS OF) 9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
--------- --------- --------- ---------- ---------
ASSETS
Cash and cash equivalents $24,341 $27,004 $42,029 $19,824 $27,808
Investment securities 82,439 76,657 58,325 41,614 36,948
Loans receivable, net 272,652 272,270 278,184 288,349 287,486
Other Assets 23,710 25,648 23,076 23,389 23,904
-------- -------- -------- -------- --------
TOTAL ASSETS $403,142 $401,579 $401,614 $373,176 $376,146
LIABILITIES
Municipal Deposits $114,954 $124,282 $134,126 $116,343 $120,420
Other Deposits 225,912 215,334 204,959 194,372 193,879
FHLB Advances 3,583 3,833 4,083 4,333 4,583
Other Liabilities 3,100 3,051 2,844 2,662 2,665
-------- -------- -------- -------- --------
TOTAL LIABILITIES 347,549 346,500 346,012 317,710 321,547
Total Stockholders' Equity 55,593 55,079 55,602 55,466 54,599
-------- -------- -------- -------- --------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $403,142 $401,579 $401,614 $373,176 $376,146
SUMMARIZED STATEMENTS OF OPERATIONS
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(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
(IN THOUSANDS, AS OF) 9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
--------- --------- --------- ---------- ---------
(FOR THE THREE MONTHS ENDED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Interest Income $4,821 $4,689 $5,049 $5,030 $5,144
Interest Expense 1,705 1,733 1,774 2,091 2,308
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Net Interest Income 3,116 2,956 3,275 2,939 2,836
Provision for Loan Losses 622 1,052 664 396 335
-------- -------- -------- -------- --------
Net Interest Income after Provision
for Loan Losses 2,494 1,904 2,611 2,543 2,501
Total Non-Interest Income 686 854 735 502 696
Total Non-Interest Expenses 2,875 3,480 2,738 2,639 2,593
-------- -------- -------- -------- --------
INCOME BEFORE TAX PROVISION (BENEFIT) 305 (722) 608 406 604
Income Tax Provision (Benefit) -------- -------- -------- -------- --------
83 (443) 259 144 217
-------- -------- -------- -------- --------
NET INCOME (LOSS) $222 $(279) $349 $262 $387
Basic earnings (loss) per share (1) 0.03 (0.04) 0.05 0.03 0.05
Diluted earnings (loss) per share (2) 0.03 (0.04) 0.05 0.03 0.05
(1) - FOR ALL PERIODS SHOWN, UNITED COMMUNITY MHC HAS HELD 4,655,200 SHARES OF
OUTSTANDING COMMON STOCK. SINCE ITS INCEPTION, THE MHC HAS WAIVED RECEIPT OF
QUARTERLY DIVIDENDS ON COMMON STOCK.
(2) - DUE TO THE NET LOSS FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2009, NO
ADJUSTMENTS WERE MADE FOR OUTSTANDING STOCK OPTIONS AND UNEARNED RESTRICTED
SHARES, AS SUCH EFFECT WOULD BE ANTI-DILUTIVE.
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(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
FOR THE THREE MONTHS ENDED
9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
--------- --------- --------- ---------- ---------
PERFORMANCE RATIOS:
Return on average assets (1) 0.22% (0.28%) 0.35% 0.27% 0.41%
Return on average equity (1) 1.61% (2.02%) 2.51% 1.91% 2.84%
Interest rate spread (2) 3.11% 2.93% 3.30% 3.03% 2.91%
Net interest margin (3) 3.30% 3.12% 3.50% 3.28% 3.18%
Noninterest expense to average assets (1) 2.86% 3.46% 2.76% 2.76% 2.72%
Efficiency ratio (4) 75.62% 91.34% 68.28% 76.69% 73.41%
Average interest-earning assets to
average interest-bearing liabilities 110.26% 110.28% 110.51% 110.47% 110.30%
Average equity to average assets 13.75% 13.75% 14.00% 14.33% 14.30%
CAPITAL RATIOS:
Tangible capital 12.16% 12.08% 12.69% 13.58% 13.34%
Core capital 12.16% 12.08% 12.69% 13.58% 13.34%
Total risk-based capital 19.36% 18.40% 20.07% 20.02% 20.64%
ASSET QUALITY RATIOS:
Nonperforming loans as a percent
of total loans 1.45% 2.19% 2.56% 1.96% 2.17%
Allowance for loan losses as a percent
of total loans 1.47% 1.55% 1.53% 1.26% 1.36%
Allowance for loan losses as a percent
of nonperforming loans 101.22% 70.51% 59.65% 64.53% 62.65%
Net charge-offs to average outstanding
loans during the period (1) 1.22% 1.59% 0.07% 0.85% 1.47%
(1) Quarterly income and expense amounts used in ratio have been annualized.
(2) Represents the difference between the weighted average yield on
average interest-earning assets and the weighted average cost on
average interest-bearing liabilities.
(3) Represents net interest income as a percent of average interest-earning
assets.
(4) Represents other expense divided by the sum of net interest income and
other income.
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Net interest income increased $280,000, or 9.9%, to $3.1 million in the quarter
ended September 30, 2009, as compared to $2.8 million for the prior year
quarter. The increase is the result of a decrease in the average interest rate
paid on interest bearing liabilities from 2.85% to 1.99%, partially offset by a
decrease in the average rate earned on interest earning assets from 5.76% to
5.10%. Changes in interest rates are reflective of changes in overall market
rates during that same period.
Noninterest expense increased $282,000, or 10.9 %, to $2.9 million for the
quarter ended September 30, 2009, from $2.6 million in the prior year quarter.
The increase is primarily a result of a $100,000 provision for loss on the sale
of other real estate owned ("REO") by the Bank for the quarter ended September
30, 2009 compared to no such provision in the prior year quarter, and an
increase of $157,000 in the Bank's FDIC insurance premium in the current period.
The increase in FDIC insurance premium is a result of rate increases.
The provision for loan losses was $622,000 for the quarter ended September 30,
2009 compared to $335,000 for the same quarter in the prior year. The increase
is attributable to troubled debt restructurings increasing from $4.5 million at
June 30, 2009 to $7.1 million at September 30, 2009. These increases are
primarily the result of the economic conditions in our market area. At September
30, 2009, troubled debt restructurings included ten commercial real estate loans
representing eight commercial lending relationships. These loans have been
restructured with lower-than-market interest rates of 0% to 3%, for fixed terms
that will end between 2010 and 2012.
Other nonperforming assets (comprised of nonperforming loans and REO) decreased
to $6.6 million at September 30, 2009 from a balance of $7.9 million at June 30,
2009. Included in REO at September 30, 2009 are six separate properties totaling
$2.7 million, at June 30, 2009 there were four separate properties totaling $1.9
million. The Bank is actively working to sell all of the assets in REO. Where
necessary, management has reserved for losses on the sale of certain properties
(these reserves are included in the REO balance at September 30, 2009 and June
30, 2009), and continues to maintain the properties and monitor their values
based upon current market conditions. For the quarter ended September 30, 2009,
the Bank has recorded $100,000 in provision for loss on the sale of REO,
compared to $0 in the prior year quarter. Nonperforming loans decreased to $3.9
million at September 30, 2009 from $6.0 million at June 30, 2009. A $1.1 million
commercial real estate loan was included in both troubled debt restructuring and
nonperforming loans at September 30, 2009 and June 30, 2009. The decrease in
nonperforming loans is attributable to $1.6 million in the previously mentioned,
newly classified troubled debt restructurings, $1.7 million in loans being
charged off, and $643,000 in loans coming current, partially offset by $1.8
million in new nonperforming loans being added.
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Total assets were $403.1 million at September 30, 2009, compared to $401.6
million at June 30, 2009. The increase is primarily due to a $5.8 million
increase in investments, partially offset by a $2.7 million decrease in cash,
and a $2.1 million decrease in loans available for sale (included in other
assets). The increase in investments is the result of the purchase of $8.1
million in investment securities during the quarter, partially offset by
payments, sales and maturities on investments. The purchase of securities was
funded by cash on hand and cash obtained through the sale of loans held for
sale. Total liabilities were $347.5 million at September 30, 2009, compared to
$346.5 million at June 30, 2009. The increase is a result of a $10.6 million
increase in other deposits, partially offset by a $9.3 million decrease in
municipal deposits. The increase in other deposits is attributable to increased
advertising and promotional efforts in our existing market area. The decrease in
municipal deposits is the result of the cyclical nature of these accounts, which
is affected by the timing of the receipt of tax revenues and spending for
ongoing civic projects. Total stockholders' equity was $55.6 million at
September 30, 2009, compared to $55.1 million at June 30, 2009. The increase is
primarily the result of an increase of $475,000 in unrealized gains on available
for sale securities and net income of $222,000, partially offset by dividends
paid of $321,000.
United Community Bancorp is the holding company of United Community Bank,
headquartered in Lawrenceburg, Indiana. The Bank currently operates six offices
in Dearborn County, Indiana.
This news release may contain forward-looking statements, which can be
identified by the use of words such as "believes," "expects," "anticipates,"
"estimates" or similar expressions. Such forward-looking statements and all
other statements that are not historic facts are subject to risks and
uncertainties which could cause actual results to differ materially from those
currently anticipated due to a number of factors. These factors include, but are
not limited to, general economic conditions, changes in the interest rate
environment, legislative or regulatory changes that may adversely affect our
business, changes in accounting policies and practices, changes in competition
and demand for financial services, adverse changes in the securities markets,
changes in deposit flows and changes in the quality or composition of the
Company's loan or investment portfolios. Additionally, other risks and
uncertainties may be described in the Company's annual report on Form 10-K, or
its quarterly reports on Form 10-Q, which are available through the SEC's
website at www.sec.gov. Should one or more of these risks materialize, actual
results may vary from those anticipated, estimated or projected. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Except as may be required by
applicable law or regulation, the Company assumes no obligation to update any
forward-looking statements.