Exhibit 99.1
Union Financial Bancshares, Inc. Announces Year-End and Fourth Quarter
Earnings
UNION, S.C.--(BUSINESS WIRE)--Oct. 22, 2003--Union Financial
Bancshares, Inc. (NASDAQ: UFBS) announced earnings of $425,000 for the
fourth quarter ending September 30, 2003 compared to earnings of
$383,000 for the fourth quarter of 2002, a 10.97% increase. Earnings
per share were $.22 per share (basic) for the fourth quarter of fiscal
2003 versus $.20 per share (basic) for the fourth quarter of fiscal
2002. Net income for the twelve-months ended September 30, 2003 was
$1,859,000, or $.95 per share (basic), versus $1,744,000, or $.90 per
share (basic), for the same period in 2002, a 6.59% increase.
At September 30, 2003, assets totaled $341.3 million, a 9.76%
increase from $311.0 million at September 30, 2002. Net loans
receivable decreased $8.6 million or 5.36% to $152.9 million at
September 30, 2003, compared to $161.6 million at September 30, 2002.
Investment and mortgage-backed securities at September 30, 2003,
increased 33.84% to $157.4 million from $117.6 million at September
30, 2002. Deposits at September 30, 2003, increased 9.95% to $220.2
million from $200.3 million at September 30, 2002.
Commenting on the fourth quarter results, Dwight V. Neese,
President and Chief Executive Officer, stated: "We are pleased to
report our earnings performance improvement over the comparable
periods in the previous year. Not only did our fourth quarter results
show an earnings increase of 11% over the previous year quarter, our
earnings per share also rose 10%. As we continue to reposition our
company for long- term growth, the consumer and commercial loan
portfolios increased 37.4% over the same period last year. We will
continue to focus on our core operations over the coming quarters with
the goal of continuing to build long-term value for our shareholders."
The Company declared a quarterly dividend of $0.10 per share on
its outstanding common stock, payable on November 17, 2003 to
shareholders of record October 30, 2003.
Union Financial Bancshares is the holding company for Provident
Community Bank, which operates seven banking locations in the upstate
area of South Carolina. At September 30, 2003, Union Financial had
$341.3 million in total assets and stockholders' equity of $26.2
million.
Union Financial Bancshares, Inc.
Fourth Quarter - Fiscal Year Ending September 30, 2003
Financial Highlights
($ in thousands, except share data)
Sept. 30,
Balance Sheet 2003 2002 $ Change % Change
Total assets $341,305 $310,968 $30,337 9.76%
Cash and interest-bearing deposits 5,017 8,731 (3,714) -42.54%
Investments & mortgage-backed
securities 157,438 117,633 39,805 33.84%
Loans receivable (net) 152,921 161,576 (8,655) -5.36%
Goodwill & intangible assets 5,007 5,853 (846) -14.45%
Deposits 220,232 200,303 19,929 9.95%
Advances & other borrowings 85,000 74,000 11,000 14.86%
Stockholders' equity 26,216 27,198 (982) -3.61%
Number of outstanding shares 1,965,103 1,958,069 7,034 0.36%
Book value per share $13.34 $13.89 ($0.55) -3.96%
Tangible book value per share $10.79 $10.90 ($0.11) -0.99%
Three Months Twelve Months
Ended Ended
Sept. 30, Sept. 30,
Income Statement 2003 2002 2003 2002
Net interest income $2,066 $2,068 $8,222 $8,586
Provision for loan losses 120 300 725 990
Net interest income after loan 1,946 1,768 7,497 7,596
Noninterest income 579 374 2,211 1,308
Noninterest expense 1,998 1,649 7,278 6,602
Income tax 102 110 571 558
Net income $425 $383 $1,859 $1,744
Earnings per share: Basic $0.22 $0.20 $0.95 $0.90
Earnings per share: Dilutive $0.21 $0.19 $0.90 $0.86
Twelve Months Ended
Sept. 30,
Key Financial Ratios 2003 2002
Return on average assets 0.55% 0.59%
Return on average stockholder 6.64% 7.06%
Operating expense to average 2.17% 2.22%
Capital to average assets 10.20% 11.83%
CONTACT: Union Financial Bancshares, Inc.
Dwight V. Neese, 864-429-1863