SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 20, 2002
UNITED COMMUNITY BANCORP
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(Exact name of Registrant as specified in its charter)
North Carolina 0-26551 56-2137427
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(State or other jurisdiction (Commission File No.) (IRS Employer Identification
of incorporation) number)
1039 Second Street, NE, Hickory, NC 28601-3843
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(Address of principal executive offices)
Registrant's telephone number, including area code (828) 894-2483
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(Former name or address, if changed since last report.)
Item 5. Other Material Events
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HICKORY - Shareholders, in separate meetings Thursday (Dec. 19), approved the
transaction that will all allow United Community Bancorp, a multi-bank holding
company in Hickory, NC, to acquire Northwestern National Bank of Wilkesboro, NC.
United Community Bancorp is the holding company for Catawba Valley Bank,
Hickory, NC, and First Gaston Bank, Gastonia, NC. The combined assets of the
banks now exceed $539 million. The merger will be completed December 31, 2002.
Northwestern National Bank will be merged into Catawba Valley Bank, and the
Northwestern branches will operate under the name Northwestern Bank, a division
of Catawba Valley Bank.
Northwestern serves four mountain counties with six branches in Wilkesboro,
North Wilkesboro, Millers Creek, Taylorsville, West Jefferson and Boone.
Catawba Valley Bank currently serves three offices in Hickory and one in
Newton-Conover. Branches in Statesville and Mooresville will open in August,
2003.
First Gaston Bank operates five offices, all in Gaston County, with
Gastonia, Belmont, Mt. Holly, Stanley, and Dallas.
Additionally, Catawba Valley Bank offers a Mortgage Center in Hickory, and
United Community Bancorp holds Community Mortgage, based in Wilkesboro. The
holding company also provides nonbank products through a subsidiary, Valley
Financial Services, Inc., serving customers with insurance, trusts, investments,
annuities, and similar products for wealth management.
United Community Bancorp paid approximately $35 million to acquire the
assets of Northwestern.
"We see a lot of positives in this merger," Catawba Valley Bank president
Steve Aaron said. "We're very compatible, and we are glad to connect contiguous
markets and to enhance the diversity of our market. Now, we have branches from
the Virginia line to the South Carolina line. Our customers live along waterways
such as Lake Norman, Lake Hickory, and the Kerr Scott Reservoir. Our branches
are near Interstates 40, 77 and 85, plus well traveled highways across much of
the region. Those are much desired locations.
"Each of our branches is the community bank in each location, and our
employees are well rooted in each community. We're known as the local banker,
local teller, local lender. Our success is directly linked to people with
long-term relationships in the area. Northwestern customers will find the same
offices, same faces, and some additional products and services. "
Northwestern Bank president Ron Shoemaker, who will be a regional president
for Northwestern branches, said he sought a partner for carrying the bank to a
higher level. "We had spent 10 years developing our bank, and we knew it was
time to increase our presence. We believe this helps create the finest banking
franchise in western North Carolina."
The merger leads to various economies of scales. The banks can share data
processing, product development and marketing, accounting, auditing, compliance,
human resources, and other overlapped areas.
The shareholder vote for each bank was overwhelming in support of the
recommendation. Stock for the holding company is listed under the symbol UCBB on
the NASDAQ board.
December 20, 2002
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNITED COMMUNITY BANCORP
By: /s/R. Steve Aaron
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R. Steve Aaron
President and Chief Executive Officer
Dated: December 20, 2002
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EXHIBIT INDEX
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Exhibit
Number Description of Exhibit
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99 Press Release dated December 20, 2002
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