United Community Financial Corp. (Company) UCFC, parent company of Home Savings Bank (Home Savings), announced today net income of $9.5 million and diluted earnings per share ("EPS") of $0.190, a 25.8% improvement over the $0.151 per common share reported for the quarter ended September 30, 2017.
Third quarter 2018 highlights:
- Total loans, net growth of 10.3% over the last twelve months, and 2.3% on a linked quarter basis
- Monthly average customer deposit growth of 9.6% over the last twelve months
- Total revenue up by 2.3% on a linked quarter basis
- Efficiency Ratio of 57.3%
- ROA of 1.37%, ROE of 12.25% and ROTE of 13.28%
- Dividend of $0.07 per common share declared
Gary M. Small, President and Chief Executive Officer of the Company commented, "Home Savings' strong quarterly performance reflected the continued favorable economic and business environment experienced in each of the markets we serve. We delivered excellent loan and solid revenue growth creating positive operating leverage for the organization…a winning formula. While the interest rate environment and trade/tariff issues create uncertainty, I believe our balanced business approach and the strength of our client base will serve us very well in the future."
Strong Loan and Deposit Growth
Total loans, net grew $201.2 million, or 10.3%, during the previous twelve months ended September 30, 2018, and $49.2 million, or 2.3% compared to the previous quarter. At September 30, 2018, total net loans aggregated $2.15 billion.
Home Savings has produced excellent results within all lending categories. The increase in total loans for the period was driven by an increase in commercial loans, which grew $140.7 million, or 17.8%, over the last twelve months and $31.0 million, or 3.4%, versus June 30, 2018. Mortgage loans increased $40.1 million, or 4.4%, over the previous twelve months and increased $19.8 million, or 2.1%, during the past three months. Consumer loans increased $19.4 million, or 7.4%, since September 30, 2017 and remained consistent with the prior quarter.
Monthly average customer deposits (which exclude brokered certificates of deposit) increased 9.6% from September 30, 2017 and remained consistent on a linked quarter basis. Average customer deposit growth in the third quarter was muted by seasonality associated with one large, public fund deposit. This relationship historically experiences a high point in the deposit level during the second quarter with decreasing balances through the end of the calendar year. The growth in average customer deposits was driven by increases in non-interest bearing accounts of 13.6% over the past twelve months and an increase of 2.4% over the past three months. Average business deposits continue to rise, increasing 21.9% over the past twelve months and 6.2% over the past three months.
Net Interest Margin
The net interest margin was 3.33% for the three months ended September 30, 2018 compared to 3.36% for the previous quarter. This change is the result of several factors. First, the slowing of the recognition of loan and deposit marks from the 2017 acquisition accounted for one basis point of the decline. Also, the continued flattening of the yield curve during the third quarter put pressure on spreads. Finally, short-term LIBOR rates did not move in advance of the Federal Reserve Bank increasing rates at the end of September, as has occurred previously, resulting in lower loan yields than expected. The Company expects the delayed increase seen in LIBOR to favorably impact net interest margin during the fourth quarter. Adjustments made during the quarter resulted in a positive margin trend within the period.
Excluding the impact of purchase accounting yield adjustments, the net interest margin would have been 3.27%, or six basis points lower than the 3.33% reported, for the quarter ended September 30, 2018.
Nonperforming Loans to Total Loans Ratio Continued to Decrease during the Third Quarter
Asset quality remained very strong during the third quarter. The Company's level of nonperforming loans and classified assets all improved during the quarter. Net chargeoffs for the quarter were 6.1 basis points of average loans. Additionally, over the past three months, the ratio of the allowance for loan losses as a percent of nonperforming loans has increased from 198.4% to 235.43% at September 30, 2018. Nonperforming loans to total loans, net at September 30, 2018 declined to 0.42%. Nonperforming assets declined $5.7 million to 0.36% of total assets.
The Company recognized a provision for loan losses of $251,000 for the third quarter of 2018, which was up $389,000 in comparison to the previous quarter. Loan growth offset by continued asset quality improvements and an improved credit environment has impacted the provision level. As of September 30, 2018, the Company's allowance for loan losses to total loans was 0.98%, versus 1.01% at June 30, 2018.
Loans acquired through the acquisition during the first quarter of 2017 were recorded at fair value. When combining the remaining fair value adjustment of $2.6 million and the Company's allowance, the combined coverage as a percentage of total loans is 1.10%.
Non-Interest Income
Non-interest income increased 5.0% or $294,000 to $6.1 million on a linked quarter basis. During this same time period, the Company did see an increase of 16.9% in mortgage banking income. Additionally a 6.2% increase in agency income, a 13.0% increase in brokerage income, a 7.3% increase in deposit related fees and finally, a 2.1% increase in trust fees offset a 15% seasonal decrease in card fees. As experienced industry-wide, market conditions continue to impact the margin on salable loans. Also impacting the comparison negatively was the fact no security gains were recognized in the third quarter 2018.
At the end of the third quarter, trust assets under management and advisory totaled $775 million.
Non-Interest Expense
Non-interest expense was $15.8 million for the third quarter of 2018 compared to $15.5 million for the same quarter last year, an increase of $308,000, or 2.0%. This increase is reflective of digital banking expansion and additional incentive compensation resulting from increased loan production. The Company's efficiency ratio remains consistent at 57.3%, compared to the prior quarter.
Effective Tax Rate
The Company's effective tax rate on an FTE basis for the three months ended September 30, 2018 was 19.5% compared to 30.3% for the three months ended September 30, 2017. The decline was due to the enactment of tax legislation at the end of the year.
Dividend to be Paid
On October 16, 2018, the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable November 9, 2018 to shareholders of record October 26, 2018.
Conference Call
United Community Financial Corp. will host an earnings conference call on Wednesday, October 17, 2018, at 10:00 a.m. ET, to provide an overview of the Company's third quarter 2018 results and highlights. The conference call may be accessed by calling 1-877-272-7661 ten minutes prior to the start time. Please ask to be joined into the United Community Financial Corp. (UCFC) call. Additionally, a live webcast may be accessed from the Company's website ir.ucfconline.com. Click on 3rd Quarter 2018 Conference Call on our corporate profile page to join the webcast.
United Community Financial Corp.
Home Savings is a wholly owned subsidiary of the Company and operates retail banking offices and loan production centers in Ohio, western Pennsylvania and West Virginia. Additional information on the Company, Home Savings and James & Sons Insurance may be found on the Company's web site: ir.ucfconline.com.
When used in this press release, the words or phrases "believes," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project", "will have", "can expect" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
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UNITED COMMUNITY FINANCIAL CORP. | |||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
(Unaudited) | |||||||||||
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September 30, | December 31, | ||||||||||
2018 | 2017 | F/(U) | |||||||||
(Dollars in thousands) |
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Assets: | |||||||||||
Cash and deposits with banks | $ | 31,042 | $ | 34,365 | -9.7 | % | |||||
Federal funds sold | Â | 23,223 | Â | Â | 12,515 | Â | 85.6 | % | |||
Total cash and cash equivalents | 54,265 | 46,880 | 15.8 | % | |||||||
Securities: | |||||||||||
Available for sale, at fair value | 242,106 | 270,561 | -10.5 | % | |||||||
Held to maturity (fair value of $74,812 and $82,126, respectively) | 78,700 | 82,911 | -5.1 | % | |||||||
Loans held for sale, at lower of cost or market | — | 211 | -100.0 | % | |||||||
Loans held for sale, at fair value | 95,235 | 83,541 | 14.0 | % | |||||||
Loans, net of allowance for loan losses of $21,332 and $21,202 | 2,148,942 | 1,999,877 | 7.5 | % | |||||||
Federal Home Loan Bank stock, at cost | 19,144 | 19,324 | -0.9 | % | |||||||
Premises and equipment, net | 21,449 | 22,094 | -2.9 | % | |||||||
Accrued interest receivable | 8,551 | 8,190 | 4.4 | % | |||||||
Real estate owned and other repossessed assets | 907 | 1,253 | -27.6 | % | |||||||
Goodwill | 20,221 | 20,221 | 0.0 | % | |||||||
Core deposit intangible | 1,686 | 1,934 | -12.8 | % | |||||||
Customer list intangible | 2,259 | 2,060 | 9.7 | % | |||||||
Cash surrender value of life insurance | 63,789 | 62,488 | 2.1 | % | |||||||
Other assets | Â | 31,929 | Â | Â | 28,360 | Â | 12.6 | % | |||
Total assets | $ | 2,789,183 | Â | $ | 2,649,905 | Â | 5.3 | % | |||
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Liabilities and Shareholders' Equity | |||||||||||
Liabilities: | |||||||||||
Deposits: | |||||||||||
Interest bearing | $ | 1,553,204 | $ | 1,445,293 | 7.5 | % | |||||
Noninterest bearing | Â | 383,535 | Â | Â | 354,970 | Â | 8.0 | % | |||
Customer deposits | 1,936,739 | 1,800,263 | 7.6 | % | |||||||
Brokered deposits | Â | 415,737 | Â | Â | 156,476 | Â | 165.7 | % | |||
Total deposits | 2,352,476 | 1,956,739 | 20.2 | % | |||||||
Borrowed funds: | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Long-term advances | 49,025 | 48,536 | 1.0 | % | |||||||
Short-term advances | Â | 46,000 | Â | Â | 308,000 | Â | -85.1 | % | |||
Total Federal Home Loan Bank advances | 95,025 | 356,536 | -73.3 | % | |||||||
Repurchase agreements and other | Â | 238 | Â | Â | 197 | Â | 20.8 | % | |||
Total borrowed funds | 95,263 | 356,733 | -73.3 | % | |||||||
Advance payments by borrowers for taxes and insurance | 16,494 | 25,038 | -34.1 | % | |||||||
Accrued interest payable | 1,177 | 1,097 | 7.3 | % | |||||||
Accrued expenses and other liabilities | Â | 17,730 | Â | Â | 16,033 | Â | 10.6 | % | |||
Total liabilities | Â | 2,483,140 | Â | Â | 2,355,640 | Â | 5.4 | % | |||
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Shareholders' Equity: | |||||||||||
Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding | — | — | 0.0 | % | |||||||
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares | |||||||||||
issued and 49,922,514 and 49,800,126 shares, respectively, outstanding | 177,412 | 177,458 | 0.0 | % | |||||||
Retained earnings | 186,000 | 167,852 | 10.8 | % | |||||||
Accumulated other comprehensive loss | (25,783 | ) | (18,685 | ) | 38.0 | % | |||||
Treasury stock, at cost, 4,216,396 and 4,338,784 shares, respectively | Â | (31,586 | ) | Â | (32,360 | ) | -2.4 | % | |||
Total shareholders' equity | Â | 306,043 | Â | Â | 294,265 | Â | 4.0 | % | |||
Total liabilities and shareholders' equity | $ | 2,789,183 | Â | $ | 2,649,905 | Â | 5.3 | % | |||
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UNITED COMMUNITY FINANCIAL CORP. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) | |||||||||||||||||||||||||||||||||
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For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
2018 | 2017 | Variance | F/(U) | 2018 | 2017 | Variance | F/(U) | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Interest income | |||||||||||||||||||||||||||||||||
Loans | $ | 24,031 | $ | 20,697 | $ | 3,334 | 16.1 | % | $ | 70,065 | $ | 58,266 | $ | 11,799 | 20.3 | % | |||||||||||||||||
Loans held for sale | 1,264 | 882 | 382 | 43.3 | % | 3,134 | 2,415 | 719 | 29.8 | % | |||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||
Available for sale, nontaxable | 333 | 416 | (83 | ) | -20.0 | % | 1,077 | 1,252 | (175 | ) | -14.0 | % | |||||||||||||||||||||
Available for sale, taxable | 1,176 | 1,276 | (100 | ) | -7.8 | % | 3,584 | 4,357 | (773 | ) | -17.7 | % | |||||||||||||||||||||
Held to maturity, nontaxable | 69 | 49 | 20 | 40.8 | % | 181 | 163 | 18 | 11.0 | % | |||||||||||||||||||||||
Held to maturity, taxable | 374 | 424 | (50 | ) | -11.8 | % | 1,194 | 1,343 | (149 | ) | -11.1 | % | |||||||||||||||||||||
Federal Home Loan Bank stock dividends | 289 | 253 | 36 | 14.2 | % | 843 | 694 | 149 | 21.5 | % | |||||||||||||||||||||||
Other interest earning assets | Â | 154 | Â | Â | 51 | Â | Â | 103 | Â | 202.0 | % | Â | 323 | Â | Â | 171 | Â | Â | 152 | Â | 88.9 | % | |||||||||||
Total interest income | 27,690 | 24,048 | 3,642 | 15.1 | % | 80,401 | 68,661 | 11,740 | 17.1 | % | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||
Deposits | 5,044 | 2,226 | (2,818 | ) | -126.6 | % | 11,931 | 5,834 | (6,097 | ) | -104.5 | % | |||||||||||||||||||||
Federal Home Loan Bank advances | 1,023 | 1,315 | 292 | 22.2 | % | 4,019 | 3,334 | (685 | ) | -20.5 | % | ||||||||||||||||||||||
Repurchase agreements and other |  | — |  |  | 4 |  |  | 4 |  | 100.0 | % |  | — |  |  | 20 |  |  | 20 |  | 100.0 | % | |||||||||||
Total interest expense | Â | 6,067 | Â | Â | 3,545 | Â | Â | (2,522 | ) | -71.1 | % | Â | 15,950 | Â | Â | 9,188 | Â | Â | (6,762 | ) | -73.6 | % | |||||||||||
Net interest income | 21,623 | 20,503 | 1,120 | 5.5 | % | 64,451 | 59,473 | 4,978 | 8.4 | % | |||||||||||||||||||||||
Taxable equivalent adjustment | Â | 84 | Â | Â | 224 | Â | Â | (140 | ) | -62.5 | % | Â | 271 | Â | Â | 690 | Â | Â | (419 | ) | -60.7 | % | |||||||||||
Net interest income (FTE) (1) | 21,707 | 20,727 | 980 | 4.7 | % | 64,722 | 60,163 | 4,559 | 7.6 | % | |||||||||||||||||||||||
Provision for loan losses | Â | 251 | Â | Â | 721 | Â | Â | 470 | Â | 65.2 | % | Â | 520 | Â | Â | 3,038 | Â | Â | 2,518 | Â | 82.9 | % | |||||||||||
Net interest income after provision for loan losses (FTE) | Â | 21,456 | Â | Â | 20,006 | Â | Â | 1,450 | Â | 7.2 | % | Â | 64,202 | Â | Â | 57,125 | Â | Â | 7,077 | Â | 12.4 | % | |||||||||||
Non-interest income | |||||||||||||||||||||||||||||||||
Insurance agency income | 545 | 509 | 36 | 7.1 | % | 1,635 | 1,454 | 181 | 12.4 | % | |||||||||||||||||||||||
Brokerage income | 339 | 271 | 68 | 25.1 | % | 911 | 894 | 17 | 1.9 | % | |||||||||||||||||||||||
Service fees and other charges: | |||||||||||||||||||||||||||||||||
Deposit related fees | 1,494 | 1,499 | (5 | ) | -0.3 | % | 4,186 | 4,200 | (14 | ) | -0.3 | % | |||||||||||||||||||||
Mortgage servicing fees | 821 | 760 | 61 | 8.0 | % | 2,446 | 2,225 | 221 | 9.9 | % | |||||||||||||||||||||||
Mortgage servicing rights valuation | (6 | ) | (10 | ) | 4 | -40.0 | % | (17 | ) | (15 | ) | 2 | -13.3 | % | |||||||||||||||||||
Mortgage servicing rights amortization | (477 | ) | (491 | ) | 14 | -2.9 | % | (1,519 | ) | (1,426 | ) | 93 | -6.5 | % | |||||||||||||||||||
Other service fees | 26 | 21 | 5 | 23.8 | % | 125 | 83 | 42 | 50.6 | % | |||||||||||||||||||||||
Net gains (losses): | |||||||||||||||||||||||||||||||||
Securities available for sale | — | 236 | (236 | ) | -100.0 | % | 233 | 566 | (333 | ) | -58.8 | % | |||||||||||||||||||||
Mortgage banking income | 1,409 | 1,688 | (279 | ) | -16.5 | % | 3,972 | 5,128 | (1,156 | ) | -22.5 | % | |||||||||||||||||||||
Real estate owned and other repossessed assets charges, net | (45 | ) | (73 | ) | 28 | -38.4 | % | (236 | ) | (143 | ) | 93 | -65.0 | % | |||||||||||||||||||
Debit/credit card fees | 1,000 | 971 | 29 | 3.0 | % | 3,126 | 3,220 | (94 | ) | -2.9 | % | ||||||||||||||||||||||
Trust fee income | 483 | 449 | 34 | 7.6 | % | 1,425 | 1,151 | 274 | 23.8 | % | |||||||||||||||||||||||
Other income | Â | 557 | Â | Â | 475 | Â | Â | 82 | Â | 17.3 | % | Â | 1,530 | Â | Â | 1,442 | Â | Â | 88 | Â | 6.1 | % | |||||||||||
Total non-interest income | Â | 6,146 | Â | Â | 6,305 | Â | Â | (159 | ) | -2.5 | % | Â | 17,817 | Â | Â | 18,779 | Â | Â | (962 | ) | -5.1 | % | |||||||||||
Non-interest expense | |||||||||||||||||||||||||||||||||
Salaries and employee benefits | 9,107 | 8,736 | (371 | ) | -4.2 | % | 28,042 | 26,460 | (1,582 | ) | -6.0 | % | |||||||||||||||||||||
Occupancy | 1,094 | 1,013 | (81 | ) | -8.0 | % | 3,144 | 2,920 | (224 | ) | -7.7 | % | |||||||||||||||||||||
Equipment and data processing | 2,032 | 2,303 | 271 | 11.8 | % | 6,558 | 6,688 | 130 | 1.9 | % | |||||||||||||||||||||||
Financial institutions tax | 495 | 348 | (147 | ) | -42.2 | % | 1,486 | 1,348 | (138 | ) | -10.2 | % | |||||||||||||||||||||
Advertising | 340 | 285 | (55 | ) | -19.3 | % | 865 | 674 | (191 | ) | -28.3 | % | |||||||||||||||||||||
Amortization of intangible assets | 128 | 113 | (15 | ) | -13.3 | % | 373 | 308 | (65 | ) | -21.1 | % | |||||||||||||||||||||
FDIC insurance premiums | 294 | 301 | 7 | 2.3 | % | 872 | 829 | (43 | ) | -5.2 | % | ||||||||||||||||||||||
Other insurance premiums | 85 | 115 | 30 | 26.1 | % | 303 | 336 | 33 | 9.8 | % | |||||||||||||||||||||||
Professional fees: | |||||||||||||||||||||||||||||||||
Legal fees | 356 | 156 | (200 | ) | -128.2 | % | 802 | 569 | (233 | ) | -40.9 | % | |||||||||||||||||||||
Other professional fees | 651 | 666 | 15 | 2.3 | % | 1,541 | 1,606 | 65 | 4.0 | % | |||||||||||||||||||||||
Supervisory fees | 34 | — | (34 | ) | 0.0 | % | 118 | — | (118 | ) | -100.0 | % | |||||||||||||||||||||
Real estate owned and other repossessed asset expenses | 25 | 33 | 8 | 24.2 | % | 95 | 118 | 23 | 19.5 | % | |||||||||||||||||||||||
Acquisition related expenses | — | — | — | 0.0 | % | — | 4,962 | 4,962 | 100.0 | % | |||||||||||||||||||||||
Other expenses | Â | 1,131 | Â | Â | 1,395 | Â | Â | 264 | Â | 18.9 | % | Â | 3,703 | Â | Â | 4,112 | Â | Â | 409 | Â | 9.9 | % | |||||||||||
Total non-interest expenses | Â | 15,772 | Â | Â | 15,464 | Â | Â | (308 | ) | -2.0 | % | Â | 47,902 | Â | Â | 50,930 | Â | Â | 3,028 | Â | 5.9 | % | |||||||||||
Income before income taxes | 11,830 | 10,847 | 983 | 9.1 | % | 34,117 | 24,974 | 9,143 | 36.6 | % | |||||||||||||||||||||||
Taxable equivalent adjustment | 84 | 224 | 140 | 62.5 | % | 271 | 690 | 419 | 60.7 | % | |||||||||||||||||||||||
Income tax expense | Â | 2,217 | Â | Â | 3,067 | Â | Â | 850 | Â | 27.7 | % | Â | 6,220 | Â | Â | 7,001 | Â | Â | 781 | Â | 11.2 | % | |||||||||||
Net income | $ | 9,529 | Â | $ | 7,556 | Â | $ | 1,973 | Â | 26.1 | % | $ | 27,626 | Â | $ | 17,283 | Â | $ | 10,343 | Â | 59.8 | % | |||||||||||
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Earnings per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.191 | $ | 0.152 | $ | 0.039 | 25.7 | % | $ | 0.554 | $ | 0.350 | $ | 0.204 | 58.3 | % | |||||||||||||||||
Diluted | 0.190 | 0.151 | 0.039 | 25.8 | % | 0.551 | 0.347 | 0.204 | 58.8 | % |
(1) | Â |
Net interest income is also presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item. |
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UNITED COMMUNITY FINANCIAL CORP. |
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CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
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For the Three Months Ended | ||||||||||||||||||
September 30, | June 30, | |||||||||||||||||
2018 | 2018 | Variance | F/(U) | |||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||
Interest income | ||||||||||||||||||
Loans | $ | 24,031 | $ | 23,275 | $ | 756 | 3.2 | % | ||||||||||
Loans held for sale | 1,264 | 1,012 | 252 | 24.9 | % | |||||||||||||
Securities: | ||||||||||||||||||
Available for sale, nontaxable | 333 | 356 | (23 | ) | -6.5 | % | ||||||||||||
Available for sale, taxable | 1,176 | 1,193 | (17 | ) | -1.4 | % | ||||||||||||
Held to maturity, nontaxable | 69 | 61 | 8 | 13.1 | % | |||||||||||||
Held to maturity, taxable | 374 | 398 | (24 | ) | -6.0 | % | ||||||||||||
Federal Home Loan Bank stock dividends | 289 | 274 | 15 | 5.5 | % | |||||||||||||
Other interest earning assets | Â | 154 | Â | Â | 92 | Â | Â | 62 | Â | 67.4 | % | |||||||
Total interest income | 27,690 | 26,661 | 1,029 | 3.9 | % | |||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 5,044 | 3,790 | (1,254 | ) | -33.1 | % | ||||||||||||
Federal Home Loan Bank advances | 1,023 | 1,576 | 553 | 35.1 | % | |||||||||||||
Repurchase agreements and other |  | — |  |  | — |  |  | — |  | 0.0 | % | |||||||
Total interest expense | Â | 6,067 | Â | Â | 5,366 | Â | Â | (701 | ) | -13.1 | % | |||||||
Net interest income | 21,623 | 21,295 | 328 | 1.5 | % | |||||||||||||
Taxable equivalent adjustment | Â | 84 | Â | Â | 90 | Â | Â | (6 | ) | -6.7 | % | |||||||
Net interest income (FTE) (1) | 21,707 | 21,385 | 322 | 1.5 | % | |||||||||||||
Provision for loan losses | Â | 251 | Â | Â | (138 | ) | Â | (389 | ) | 281.9 | % | |||||||
Net interest income after provision for loan losses (FTE) | Â | 21,456 | Â | Â | 21,523 | Â | Â | (67 | ) | -0.3 | % | |||||||
Non-interest income | ||||||||||||||||||
Insurance agency income | 545 | 513 | 32 | 6.2 | % | |||||||||||||
Brokerage income | 339 | 300 | 39 | 13.0 | % | |||||||||||||
Service fees and other charges: | ||||||||||||||||||
Deposit related fees | 1,494 | 1,392 | 102 | 7.3 | % | |||||||||||||
Mortgage servicing fees | 821 | 813 | 8 | 1.0 | % | |||||||||||||
Mortgage servicing rights valuation | (6 | ) | (20 | ) | 14 | -70.0 | % | |||||||||||
Mortgage servicing rights amortization | (477 | ) | (542 | ) | 65 | -12.0 | % | |||||||||||
Other service fees | 26 | 61 | (35 | ) | -57.4 | % | ||||||||||||
Net gains (losses): | ||||||||||||||||||
Securities available for sale | — | 94 | (94 | ) | -100.0 | % | ||||||||||||
Mortgage banking income | 1,409 | 1,205 | 204 | 16.9 | % | |||||||||||||
Real estate owned and other repossessed assets charges, net |
(45 | ) | (113 | ) | 68 | -60.2 | % | |||||||||||
Debit/credit card fees | 1,000 | 1,177 | (177 | ) | -15.0 | % | ||||||||||||
Trust fee income | 483 | 473 | 10 | 2.1 | % | |||||||||||||
Other income | Â | 557 | Â | Â | 499 | Â | Â | 58 | Â | 11.6 | % | |||||||
Total non-interest income | Â | 6,146 | Â | Â | 5,852 | Â | Â | 294 | Â | 5.0 | % | |||||||
Non-interest expense | ||||||||||||||||||
Salaries and employee benefits | 9,107 | 8,937 | (170 | ) | -1.9 | % | ||||||||||||
Occupancy | 1,094 | 950 | (144 | ) | -15.2 | % | ||||||||||||
Equipment and data processing | 2,032 | 2,372 | 340 | 14.3 | % | |||||||||||||
Financial institutions tax | 495 | 495 | — | 0.0 | % | |||||||||||||
Advertising | 340 | 290 | (50 | ) | -17.2 | % | ||||||||||||
Amortization of intangible assets | 128 | 132 | 4 | 3.0 | % | |||||||||||||
FDIC insurance premiums | 294 | 288 | (6 | ) | -2.1 | % | ||||||||||||
Other insurance premiums | 85 | 109 | 24 | 22.0 | % | |||||||||||||
Professional fees: | ||||||||||||||||||
Legal fees | 356 | 147 | (209 | ) | -142.2 | % | ||||||||||||
Other professional fees | 651 | 499 | (152 | ) | -30.5 | % | ||||||||||||
Supervisory fees | 34 | 42 | 8 | 0.0 | % | |||||||||||||
Real estate owned and other repossessed asset expenses | 25 | 34 | 9 | 26.5 | % | |||||||||||||
Acquisition related expenses | — | — | — | 0.0 | % | |||||||||||||
Other expenses | Â | 1,131 | Â | Â | 1,235 | Â | Â | 104 | Â | 8.4 | % | |||||||
Total non-interest expenses | Â | 15,772 | Â | Â | 15,530 | Â | Â | (242 | ) | -1.6 | % | |||||||
Income before income taxes | 11,830 | 11,845 | (15 | ) | -0.1 | % | ||||||||||||
Taxable equivalent adjustment | 84 | 90 | 6 | 6.7 | % | |||||||||||||
Income tax expense | Â | 2,217 | Â | Â | 2,214 | Â | Â | (3 | ) | -0.1 | % | |||||||
Net income | $ | 9,529 | Â | $ | 9,541 | Â | $ | (12 | ) | -0.1 | % | |||||||
 | ||||||||||||||||||
Earnings per common share: | ||||||||||||||||||
Basic | $ | 0.191 | $ | 0.191 | $ | - | 0.0 | % | ||||||||||
Diluted | 0.190 | 0.190 | - | 0.0 | % | |||||||||||||
 |
(1) | Â |
Net interest income is also presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item. |
 |  |  |  |  |  |  |  |  | |||||||||||||||||||
UNITED COMMUNITY FINANCIAL CORP. |
|||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | |||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||
outstanding | earned/ | Yield/ | outstanding | earned/ | Yield/ | outstanding | earned/ | Yield/ | |||||||||||||||||||
balance | paid | rate | balance | paid | rate | balance | paid | rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||
Net loans (1) | $ | 2,115,227 | $ | 24,031 | 4.54 | % | $ | 2,075,307 | $ | 23,275 | 4.49 | % | $ | 1,906,786 | $ | 20,699 | 4.34 | % | |||||||||
Loans held for sale | Â | 111,295 | Â | 1,264 | 4.51 | % | Â | 91,836 | Â | 1,012 | 4.42 | % | Â | 88,854 | Â | 882 | 3.97 | % | |||||||||
Total loans, net | 2,226,522 | 25,295 | 4.54 | % | 2,167,143 | 24,287 | 4.48 | % | 1,995,640 | 21,581 | 4.33 | % | |||||||||||||||
Securities: | |||||||||||||||||||||||||||
Available for sale-taxable | 204,924 | 1,176 | 2.30 | % | 207,908 | 1,193 | 2.30 | % | 224,927 | 1,276 | 2.27 | % | |||||||||||||||
Available for sale-nontaxable (2) | 48,370 | 400 | 3.31 | % | 50,710 | 429 | 3.38 | % | 59,057 | 611 | 4.14 | % | |||||||||||||||
Held to maturity-taxable | 67,979 | 374 | 2.20 | % | 70,406 | 398 | 2.26 | % | 77,947 | 424 | 2.18 | % | |||||||||||||||
Held to maturity-nontaxable (2) | Â | 12,215 | Â | 86 | 2.82 | % | Â | 11,265 | Â | 78 | 2.77 | % | Â | 9,239 | Â | 76 | 3.29 | % | |||||||||
Total securities | 333,488 | 2,036 | 2.44 | % | 340,289 | 2,098 | 2.47 | % | 371,170 | 2,387 | 2.57 | % | |||||||||||||||
Federal Home Loan Bank stock | 19,160 | 289 | 6.03 | % | 19,324 | 274 | 5.67 | % | 19,324 | 253 | 5.24 | % | |||||||||||||||
Other interest earning assets | Â | 30,140 | Â | 154 | 2.03 | % | Â | 23,831 | Â | 92 | 1.55 | % | Â | 18,881 | Â | 51 | 1.08 | % | |||||||||
Total interest earning assets | 2,609,310 | 27,774 | 4.26 | % | 2,550,587 | 26,751 | 4.20 | % | 2,405,015 | 24,272 | 4.04 | % | |||||||||||||||
Non-interest earning assets | Â | 177,553 | Â | 174,270 | Â | 185,773 | |||||||||||||||||||||
Total assets | $ | 2,786,863 | $ | 2,724,857 | $ | 2,590,788 | |||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||
Checking accounts | $ | 635,705 | 1,026 | 0.64 | % | $ | 638,910 | 948 | 0.60 | % | $ | 591,982 | 468 | 0.32 | % | ||||||||||||
Savings accounts | 303,247 | 27 | 0.04 | % | 307,250 | 26 | 0.03 | % | 308,829 | 28 | 0.04 | % | |||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||
Customer certificates of deposit | 618,545 | 2,457 | 1.58 | % | 608,079 | 2,143 | 1.41 | % | 526,697 | 1,333 | 1.01 | % | |||||||||||||||
Brokered certificates of deposit | Â | 327,120 | Â | 1,534 | 1.86 | % | Â | 164,400 | Â | 673 | 1.64 | % | Â | 135,956 | Â | 397 | 1.17 | % | |||||||||
Total certificates of deposit | Â | 945,665 | Â | 3,991 | 1.67 | % | Â | 772,479 | Â | 2,816 | 1.46 | % | Â | 662,653 | Â | 1,730 | 1.04 | % | |||||||||
Total interest bearing deposits | 1,884,617 | 5,044 | 1.06 | % | 1,718,639 | 3,790 | 0.88 | % | 1,563,464 | 2,226 | 0.57 | % | |||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||||||
Long-term advances | 48,976 | 413 | 3.35 | % | 48,799 | 493 | 4.05 | % | 48,212 | 388 | 3.22 | % | |||||||||||||||
Short-term advances | Â | 120,880 | Â | 610 | 2.00 | % | Â | 236,747 | Â | 1,083 | 1.83 | % | Â | 310,152 | Â | 927 | 1.20 | % | |||||||||
Total Federal Home Loan Bank advances | 169,856 | 1,023 | 2.39 | % | 285,546 | 1,576 | 2.21 | % | 358,364 | 1,315 | 1.47 | % | |||||||||||||||
Repurchase agreements and other |  | 213 |  | — | 0.00 | % |  | 195 |  | — | 0.00 | % |  | 6,483 |  | 4 | 0.25 | % | |||||||||
Total borrowed funds | Â | 170,069 | Â | 1,023 | 2.39 | % | Â | 285,741 | Â | 1,576 | 2.21 | % | Â | 364,847 | Â | 1,319 | 1.45 | % | |||||||||
Total interest bearing liabilities | $ | 2,054,686 | Â | 6,067 | 1.17 | % | $ | 2,004,380 | Â | 5,366 | 1.07 | % | $ | 1,928,311 | Â | 3,545 | 0.74 | % | |||||||||
Non-interest bearing liabilities | |||||||||||||||||||||||||||
Total noninterest bearing deposits | 382,044 | 376,905 | 337,067 | ||||||||||||||||||||||||
Other noninterest bearing liabilities | Â | 39,075 | Â | 39,839 | Â | 35,576 | |||||||||||||||||||||
Total noninterest bearing liabilities | Â | 421,119 | Â | 416,744 | Â | 372,643 | |||||||||||||||||||||
Total liabilities | $ | 2,475,805 | $ | 2,421,124 | $ | 2,300,954 | |||||||||||||||||||||
Shareholders' equity | Â | 311,058 | Â | 303,733 | Â | 289,834 | |||||||||||||||||||||
Total liabilities and equity | $ | 2,786,863 | $ | 2,724,857 | $ | 2,590,788 | |||||||||||||||||||||
Net interest income and interest rate spread | $ | 21,707 | 3.09 | % | $ | 21,385 | 3.12 | % | $ | 20,727 | 3.30 | % | |||||||||||||||
Net interest margin | 3.33 | % | 3.36 | % | 3.45 | % | |||||||||||||||||||||
Average interest earning assets to average interest bearing liabilities | 126.99 | % | 127.25 | % | 124.72 | % | |||||||||||||||||||||
 | |||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||
Interest bearing deposits | |||||||||||||||||||||||||||
Checking accounts | $ | 635,705 | $ | 1,026 | 0.64 | % | $ | 638,910 | $ | 948 | 0.60 | % | $ | 591,982 | $ | 468 | 0.32 | % | |||||||||
Savings accounts | 303,247 | 27 | 0.04 | % | 307,250 | 26 | 0.03 | % | 308,829 | 28 | 0.04 | % | |||||||||||||||
Customer certificates of deposit | Â | 618,545 | Â | 2,457 | 1.58 | % | Â | 608,079 | Â | 2,143 | 1.41 | % | Â | 526,697 | Â | 1,333 | 1.01 | % | |||||||||
Total interest bearing customer deposits | 1,557,497 | 3,510 | 0.90 | % | 1,554,239 | 3,117 | 0.80 | % | 1,427,508 | 1,829 | 0.51 | % | |||||||||||||||
Brokered certificates of deposit | Â | 327,120 | Â | 1,534 | 1.86 | % | Â | 164,400 | Â | 673 | 1.64 | % | Â | 135,956 | Â | 397 | 1.17 | % | |||||||||
Total interest bearing deposits | 1,884,617 | 5,044 | 1.06 | % | 1,718,639 | 3,790 | 0.88 | % | 1,563,464 | 2,226 | 0.57 | % | |||||||||||||||
Noninterest bearing deposits |  | 382,044 |  | — | 0.00 | % |  | 376,905 |  | — | 0.00 | % |  | 337,067 |  | — | 0.00 | % | |||||||||
Total average deposits and cost of deposits | $ | 2,266,661 | $ | 5,044 | 0.89 | % | $ | 2,095,544 | $ | 3,790 | 0.72 | % | $ | 1,900,531 | $ | 2,226 | 0.47 | % | |||||||||
Other interest bearing liabilities | |||||||||||||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||||||||||||
Long term advances | $ | 48,976 | $ | 413 | 3.35 | % | $ | 48,799 | $ | 493 | 4.05 | % | $ | 48,212 | $ | 388 | 3.22 | % | |||||||||
Short term advances | Â | 120,880 | Â | 610 | 2.00 | % | Â | 236,747 | Â | 1,083 | 1.83 | % | Â | 310,152 | Â | 927 | 1.20 | % | |||||||||
Total Federal Home Loan Bank advances | 169,856 | 1,023 | 2.39 | % | 285,546 | 1,576 | 2.21 | % | 358,364 | 1,315 | 1.47 | % | |||||||||||||||
Repurchase agreements and other |  | 213 |  | — | 0.00 | % |  | 195 |  | — | 0.00 | % |  | 6,483 |  | 4 | 0.25 | % | |||||||||
Total borrowed funds | Â | 170,069 | Â | 1,023 | 2.39 | % | Â | 285,741 | Â | 1,576 | 2.21 | % | Â | 364,847 | Â | 1,319 | 1.45 | % | |||||||||
Total average deposits and other interest bearing liabilities and total cost of funds | $ | 2,436,730 | $ | 6,067 | 1.00 | % | $ | 2,381,285 | $ | 5,366 | 0.90 | % | $ | 2,265,378 | $ | 3,545 | 0.63 | % | |||||||||
 | |||||||||||||||||||||||||||
 | |||||||||||||||||||||||||||
Customer deposits interest bearing and noninterest bearing | $ | 1,939,541 | $ | 3,510 | 0.72 | % | $ | 1,931,144 | $ | 3,117 | 0.65 | % | $ | 1,764,575 | $ | 1,829 | 0.41 | % | |||||||||
Brokered deposits | 327,120 | 1,534 | 1.86 | % | 164,400 | 673 | 1.64 | % | 135,956 | 397 | 1.17 | % | |||||||||||||||
Total borrowings | 170,069 | 1,023 | 2.39 | % | 285,741 | 1,576 | 2.21 | % | 364,847 | 1,319 | 1.45 | % | |||||||||||||||
Cost of funds | 2,436,730 | 6,067 | 1.00 | % | 2,381,285 | 5,366 | 0.90 | % | 2,265,378 | 3,545 | 0.63 | % |
(1) |
 |
Nonaccrual loans are included in the average balance at a yield of 0%. |
(2) |
Yields are on a fully taxable equivalent basis. |
|
 |
 | |||||||||||||||||||||
UNITED COMMUNITY FINANCIAL CORP. | |||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
 |  |  |  |  | |||||||||||||||||
At or for the quarters ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, |
September 30, |
|||||||||||||||||
2018 | 2018 | 2018 | 2017 |
2017 |
|||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Financial Data | |||||||||||||||||||||
Total assets | $ | 2,789,183 | $ | 2,770,558 | $ | 2,690,707 | $ | 2,649,905 | $ | 2,602,365 | |||||||||||
Total loans, net | 2,148,942 | 2,099,781 | 2,061,443 | 1,999,877 | 1,947,695 | ||||||||||||||||
Total securities | 320,806 | 328,924 | 338,593 | 353,472 | 360,371 | ||||||||||||||||
Total deposits | 2,352,476 | 2,135,345 | 2,066,978 | 1,956,739 | 1,938,699 | ||||||||||||||||
Average interest-bearing deposits | 1,884,617 | 1,718,639 | 1,644,165 | 1,598,922 | 1,563,464 | ||||||||||||||||
Average noninterest-bearing deposits | 382,044 | 376,905 | 375,142 | 355,225 | 337,067 | ||||||||||||||||
Total shareholders' equity | 306,043 | 301,484 | 296,195 | 294,265 | 291,851 | ||||||||||||||||
Net interest income | 21,623 | 21,295 | 21,533 | 20,880 | 20,503 | ||||||||||||||||
Net interest income (FTE) (1) | 21,707 | 21,385 | 21,630 | 21,101 | 20,727 | ||||||||||||||||
Provision (recovery) for loan losses | 251 | (138 | ) | 407 | 1,215 | 721 | |||||||||||||||
Noninterest income | 6,146 | 5,852 | 5,819 | 6,460 | 6,305 | ||||||||||||||||
Noninterest expense | 15,772 | 15,530 | 16,600 | 17,329 | 15,464 | ||||||||||||||||
Income tax expense | 2,217 | 2,214 | 1,789 | 4,294 | 3,067 | ||||||||||||||||
Net income | 9,529 | 9,541 | 8,556 | 4,502 | 7,556 | ||||||||||||||||
 | |||||||||||||||||||||
Share Data | |||||||||||||||||||||
Basic earnings per common share | $ | 0.191 | $ | 0.191 | $ | 0.172 | $ | 0.090 | $ | 0.152 | |||||||||||
Diluted earnings per common share | 0.190 | 0.190 | 0.171 | 0.090 | 0.151 | ||||||||||||||||
Book value per common share | 6.13 | 6.04 | 5.94 | 5.90 | 5.87 | ||||||||||||||||
Tangible book value per common share | 5.65 | 5.56 | 5.45 | 5.41 | 5.38 | ||||||||||||||||
Market value per common share | 9.67 | 10.99 | 9.86 | 9.13 | 9.60 | ||||||||||||||||
 | |||||||||||||||||||||
Common shares outstanding at end of period | 49,923 | 49,904 | 49,882 | 49,800 | 49,758 | ||||||||||||||||
Weighted average shares outstanding--basic | 49,683 | 49,694 | 49,611 | 49,497 | 49,460 | ||||||||||||||||
Weighted average shares outstanding--diluted | 49,947 | 49,944 | 49,885 | 49,827 | 49,851 | ||||||||||||||||
 | |||||||||||||||||||||
Key Ratios | |||||||||||||||||||||
Return on average assets (ROA) (2) | 1.37 | % | 1.40 | % | 1.28 | % | 0.68 | % | 1.17 | % | |||||||||||
Return on average equity (ROE)(3) | 12.25 | % | 12.56 | % | 11.44 | % | 6.09 | % | 10.43 | % | |||||||||||
Return on tangible equity (ROTE)(4) | 13.28 | % | 13.65 | % | 12.44 | % | 6.62 | % | 11.35 | % | |||||||||||
Net interest margin | 3.33 | % | 3.36 | % | 3.47 | % | 3.43 | % | 3.45 | % | |||||||||||
Efficiency ratio | 57.30 | % | 57.75 | % | 60.20 | % | 63.73 | % | 57.13 | % | |||||||||||
Nonperforming loans to net loans, end of period | 0.42 | % | 0.51 | % | 0.59 | % | 0.59 | % | 0.62 | % | |||||||||||
Nonperforming assets to total assets, end of period | 0.36 | % | 0.57 | % | 0.65 | % | 0.64 | % | 0.75 | % | |||||||||||
Allowance for loan loss as a percent of loans, end of period | 0.98 | % | 1.01 | % | 1.04 | % | 1.05 | % | 1.04 | % | |||||||||||
Delinquent loans to total net loans, end of period | 0.69 | % | 0.67 | % | 0.81 | % | 0.86 | % | 0.89 | % |
(1) |
 |
Net interest income is presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item |
|
(2) |
Net income divided by average total assets |
||
(3) |
Net income divided by average total equity |
||
(4) |
Net income divided by average total equity, minus average intangible assets |
||
 |
UNITED COMMUNITY FINANCIAL CORP. | |||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
 |  |  |  |  | |||||||||||||||||
At or for the quarters ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Loan Portfolio Composition | |||||||||||||||||||||
Commercial loans | |||||||||||||||||||||
Multi-family | $ | 139,938 | $ | 141,004 | $ | 137,836 | $ | 120,480 | $ | 126,977 | |||||||||||
Owner/nonowner occupied commercial real estate | 408,938 | 396,624 | 384,533 | 381,611 | 366,747 | ||||||||||||||||
Land | 16,129 | 16,887 | 15,452 | 15,162 | 13,666 | ||||||||||||||||
Construction | 132,961 | 127,691 | 134,181 | 116,863 | 108,105 | ||||||||||||||||
Commercial and industrial | Â | 233,801 | Â | Â | 218,611 | Â | Â | 201,132 | Â | Â | 188,500 | Â | Â | 175,581 | Â | ||||||
Total | 931,767 | 900,817 | 873,134 | 822,616 | 791,076 | ||||||||||||||||
Residential mortgage loans | |||||||||||||||||||||
Real estate | 909,626 | 888,583 | 882,873 | 870,939 | 851,863 | ||||||||||||||||
Construction | Â | 39,396 | Â | Â | 40,623 | Â | Â | 42,453 | Â | Â | 49,092 | Â | Â | 57,081 | Â | ||||||
Total | 949,022 | 929,206 | 925,326 | 920,031 | 908,944 | ||||||||||||||||
Consumer loans | |||||||||||||||||||||
Consumer | Â | 283,108 | Â | Â | 284,909 | Â | Â | 279,110 | Â | Â | 273,494 | Â | Â | 263,692 | Â | ||||||
Total | Â | 283,108 | Â | Â | 284,909 | Â | Â | 279,110 | Â | Â | 273,494 | Â | Â | 263,692 | Â | ||||||
Total loans | 2,163,897 | 2,114,932 | 2,077,570 | 2,016,141 | 1,963,712 | ||||||||||||||||
Less: | |||||||||||||||||||||
Allowance for loan losses | 21,332 | 21,405 | 21,610 | 21,202 | 20,555 | ||||||||||||||||
Deferred loan costs, net | Â | (6,377 | ) | Â | (6,254 | ) | Â | (5,483 | ) | Â | (4,938 | ) | Â | (4,538 | ) | ||||||
Total | Â | 14,955 | Â | Â | 15,151 | Â | Â | 16,127 | Â | Â | 16,264 | Â | Â | 16,017 | Â | ||||||
Total loans, net | 2,148,942 | 2,099,781 | 2,061,443 | 1,999,877 | 1,947,695 | ||||||||||||||||
Loans held for sale, net | Â | 95,235 | Â | Â | 107,701 | Â | Â | 79,292 | Â | Â | 83,752 | Â | Â | 84,545 | Â | ||||||
Total loans | $ | 2,244,177 | Â | $ | 2,207,482 | Â | $ | 2,140,735 | Â | $ | 2,083,629 | Â | $ | 2,032,240 | Â | ||||||
 | |||||||||||||||||||||
 | |||||||||||||||||||||
At or for the quarters ended |
|||||||||||||||||||||
September 30, |
June 30, |
March 31, | December 31, | September 30, | |||||||||||||||||
2018 |
2018 |
2018 | 2017 | 2017 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Deposit Portfolio Composition | |||||||||||||||||||||
Checking accounts | |||||||||||||||||||||
Interest bearing checking accounts | $ | 140,722 | $ | 138,812 | $ | 140,740 | $ | 170,478 | $ | 173,171 | |||||||||||
Non-interest bearing checking accounts | Â | 383,535 | Â | Â | 383,082 | Â | Â | 376,904 | Â | Â | 354,970 | Â | Â | 343,146 | Â | ||||||
Total checking accounts | 524,257 | 521,894 | 517,644 | 525,448 | 516,317 | ||||||||||||||||
Savings accounts | 300,007 | 306,283 | 308,025 | 301,716 | 307,169 | ||||||||||||||||
Money market accounts | Â | 489,668 | Â | Â | 502,560 | Â | Â | 483,840 | Â | Â | 424,234 | Â | Â | 418,294 | Â | ||||||
Total non-time deposits | 1,313,932 | 1,330,737 | 1,309,509 | 1,251,398 | 1,241,780 | ||||||||||||||||
Certificates of deposit less than or equal to $250,000 | 977,588 | 744,770 | 704,147 | 651,255 | 617,839 | ||||||||||||||||
Certificates of deposit greater than $250,000 | Â | 60,956 | Â | Â | 59,838 | Â | Â | 53,322 | Â | Â | 54,086 | Â | Â | 79,080 | Â | ||||||
Total certificates of deposit | Â | 1,038,544 | Â | Â | 804,608 | Â | Â | 757,469 | Â | Â | 705,341 | Â | Â | 696,919 | Â | ||||||
Total deposits | $ | 2,352,476 | Â | $ | 2,135,345 | Â | $ | 2,066,978 | Â | $ | 1,956,739 | Â | $ | 1,938,699 | Â | ||||||
 |
 |  |  |  |  | ||||||||||||||||
UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
 | ||||||||||||||||||||
At or for the quarters ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
 | ||||||||||||||||||||
Allowance For Loan Losses | ||||||||||||||||||||
Beginning balance | $ | 21,405 | $ | 21,610 | $ | 21,202 | $ | 20,555 | $ | 19,660 | ||||||||||
Provision | 251 | (138 | ) | 407 | 1,215 | 721 | ||||||||||||||
Net (chargeoffs) recoveries | Â | (324 | ) | Â | (67 | ) | Â | 1 | Â | Â | (568 | ) | Â | 174 | Â | |||||
Ending balance | $ | 21,332 | Â | $ | 21,405 | Â | $ | 21,610 | Â | $ | 21,202 | Â | $ | 20,555 | Â | |||||
 | ||||||||||||||||||||
At or for the quarters ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Net Recoveries (Charge-offs) | ||||||||||||||||||||
Commercial loans | ||||||||||||||||||||
Multi-family | $ | 4 | $ | 9 | $ | 6 | $ | (126 | ) | $ | (4 | ) | ||||||||
Owner/nonowner occupied commercial real estate | 12 | 29 | 40 | 23 | 39 | |||||||||||||||
Land | 150 | — | — | — | — | |||||||||||||||
Construction | 11 | 10 | 7 | — | — | |||||||||||||||
Commercial and industrial | Â | (275 | ) | Â | (72 | ) | Â | 104 | Â | Â | (90 | ) | Â | 314 | Â | |||||
Total | (98 | ) | (24 | ) | 157 | (193 | ) | 349 | ||||||||||||
Residential mortgage loans | ||||||||||||||||||||
Real estate | (141 | ) | (14 | ) | (66 | ) | (257 | ) | (291 | ) | ||||||||||
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | |||||
Total | (141 | ) | (14 | ) | (66 | ) | (257 | ) | (291 | ) | ||||||||||
Consumer loans | ||||||||||||||||||||
Consumer | Â | (85 | ) | Â | (29 | ) | Â | (90 | ) | Â | (118 | ) | Â | 116 | Â | |||||
Total | Â | (85 | ) | Â | (29 | ) | Â | (90 | ) | Â | (118 | ) | Â | 116 | Â | |||||
Total net chargeoffs | $ | (324 | ) | $ | (67 | ) | $ | 1 | Â | $ | (568 | ) | $ | 174 | Â | |||||
 | ||||||||||||||||||||
 | ||||||||||||||||||||
At or for the quarters ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming Loans | ||||||||||||||||||||
Commercial loans | ||||||||||||||||||||
Multi-family | $ | 275 | $ | 275 | $ | 275 | $ | 275 | $ | 402 | ||||||||||
Owner/nonowner occupied commercial real estate | 1,101 | 1,111 | 1,206 | 1,218 | 1,234 | |||||||||||||||
Land | — | — | 9 | 9 | 9 | |||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||
Commercial and industrial | Â | 1,489 | Â | Â | 1,475 | Â | Â | 1,459 | Â | Â | 1,505 | Â | Â | 234 | Â | |||||
Total | 2,865 | 2,861 | 2,949 | 3,007 | 1,879 | |||||||||||||||
Residential mortgage loans | ||||||||||||||||||||
Real estate | 4,426 | 6,146 | 7,045 | 6,076 | 6,627 | |||||||||||||||
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  | |||||
Total | 4,426 | 6,146 | 7,045 | 6,076 | 6,627 | |||||||||||||||
Consumer loans | ||||||||||||||||||||
Consumer | Â | 1,770 | Â | Â | 1,783 | Â | Â | 2,180 | Â | Â | 2,620 | Â | Â | 2,332 | Â | |||||
Total | Â | 1,770 | Â | Â | 1,783 | Â | Â | 2,180 | Â | Â | 2,620 | Â | Â | 2,332 | Â | |||||
Total nonperforming loans | $ | 9,061 | Â | $ | 10,790 | Â | $ | 12,174 | Â | $ | 11,703 | Â | $ | 10,838 | Â | |||||
 | ||||||||||||||||||||
 | ||||||||||||||||||||
Total Nonperforming Loans and Nonperforming Assets | ||||||||||||||||||||
Past due 90 days and on nonaccrual status | $ | 8,200 | $ | 8,395 | $ | 8,326 | $ | 8,620 | $ | 7,634 | ||||||||||
Past due 90 days and still accruing |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  | |||||
Past due 90 days | 8,200 | 8,395 | 8,326 | 8,620 | 7,642 | |||||||||||||||
Past due less than 90 days and on nonaccrual | Â | 861 | Â | Â | 2,395 | Â | Â | 3,848 | Â | Â | 3,083 | Â | Â | 3,196 | Â | |||||
Total nonperforming loans | 9,061 | 10,790 | 12,174 | 11,703 | 10,838 | |||||||||||||||
Other real estate owned | 907 | 802 | 1,030 | 1,047 | 1,133 | |||||||||||||||
Other classified assets | — | 4,050 | 4,050 | 4,050 | 6,384 | |||||||||||||||
Repossessed assets |  | — |  |  | 75 |  |  | 263 |  |  | 206 |  |  | 10 |  | |||||
Total nonperforming assets | $ | 9,968 | Â | $ | 15,717 | Â | $ | 17,517 | Â | $ | 17,006 | Â | $ | 18,365 | Â | |||||
 | ||||||||||||||||||||
 |
 | ||||||||||||||||||||
UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||||||||||
NON-GAAP DISCLOSURE RECONCILIATION | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
 |  |  |  |  | ||||||||||||||||
 | ||||||||||||||||||||
Reconciliation of Average Shareholders' Equity to Average Tangible Equity: | ||||||||||||||||||||
 | ||||||||||||||||||||
At or for the quarters ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Average shareholders equity | $ | 311,058 | $ | 303,733 | $ | 299,284 | $ | 295,506 | $ | 295,506 | ||||||||||
Average intangible assets | Â | 24,144 | Â | Â | 24,063 | Â | Â | 24,175 | Â | Â | 23,563 | Â | Â | 23,642 | Â | |||||
Average tangible equity | $ | 286,914 | Â | $ | 279,670 | Â | $ | 275,109 | Â | $ | 271,943 | Â | $ | 271,864 | Â | |||||
 | ||||||||||||||||||||
Net income | $ | 9,529 | $ | 9,541 | $ | 8,556 | $ | 4,502 | $ | 7,556 | ||||||||||
 | ||||||||||||||||||||
Return on tangible equity | 13.28 | % | 13.65 | % | 12.44 | % | 6.62 | % | 11.12 | % | ||||||||||
 | ||||||||||||||||||||
Reconciliation of Fully Taxable Equivalent Net Interest Income to Net Interest Income: | ||||||||||||||||||||
 | ||||||||||||||||||||
For the quarters ended | ||||||||||||||||||||
September 30, |
June 30, |
March 31, | December 31, | September 30, | ||||||||||||||||
2018 |
2018 |
2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
 | ||||||||||||||||||||
Interest income | $ | 27,690 | $ | 26,661 | $ | 26,050 | $ | 24,849 | $ | 24,048 | ||||||||||
Fully taxable equivalent adjustment | Â | 84 | Â | Â | 90 | Â | Â | 97 | Â | Â | 221 | Â | Â | 224 | Â | |||||
Fully taxable equivalent interest income | 27,774 | 26,751 | 26,147 | 25,070 | 24,272 | |||||||||||||||
Interest expense | Â | 6,067 | Â | Â | 5,366 | Â | Â | 4,517 | Â | Â | 3,969 | Â | Â | 3,545 | Â | |||||
Fully taxable net interest income | $ | 21,707 | Â | $ | 21,385 | Â | $ | 21,630 | Â | $ | 21,101 | Â | $ | 20,727 | Â | |||||
 | ||||||||||||||||||||
Reconciliation of Coverage Ratio to Coverage Ratio with Fair Value Adjustments Included with Allowance for Loan Losses: | ||||||||||||||||||||
 | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2018 | ||||||||||||||||||||
(Dollars in |
||||||||||||||||||||
thousands) |
||||||||||||||||||||
Allowance for loan losses | $ | 21,332 | ||||||||||||||||||
Fair value adjustments | Â | 2,644 | Â | |||||||||||||||||
 | 23,976 |  | ||||||||||||||||||
 | ||||||||||||||||||||
Loans, net | $ | 2,148,942 | ||||||||||||||||||
Add: Allowance for loan losses and fair value adjustment | Â | 23,976 | Â | |||||||||||||||||
Gross loans | $ | 2,172,918 | Â | |||||||||||||||||
 | ||||||||||||||||||||
 |
||||||||||||||||||||
Coverage ratio with the Fair Value adjustments included in Allowance for loan losses |
1.10 | % | ||||||||||||||||||
 | ||||||||||||||||||||
 | ||||||||||||||||||||
Tangible Book Value Per Share: | ||||||||||||||||||||
 | ||||||||||||||||||||
Tangible book value, per share is defined at shareholders equity minus intangible assets divided by the number of shares outstanding. | ||||||||||||||||||||
 | ||||||||||||||||||||
At the quarters ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 306,043 | $ | 301,484 | $ | 296,195 | $ | 294,265 | $ | 291,851 | ||||||||||
Goodwill | 20,221 | 20,221 | 20,221 | 20,221 | 19,488 | |||||||||||||||
Customer list intangible | 2,259 | 1,980 | 2,030 | 2,060 | 2,090 | |||||||||||||||
Core deposit intangible | 1,686 | 1,769 | 1,851 | 1,934 | 2,017 | |||||||||||||||
Total common shares outstanding | 49,922,514 | 49,904,074 | 49,882,491 | 49,800,126 | 49,758,487 | |||||||||||||||
Tangible book value, as reported | $ | 5.65 | $ | 5.56 | $ | 5.45 | $ | 5.41 | $ | 5.38 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181016006025/en/
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