Market Overview

UCFC Announces Record Earnings and a Dividend Increase

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YOUNGSTOWN, Ohio--(BUSINESS WIRE)--

United Community Financial Corp. (Company) (Nasdaq: UCFC), parent company of The Home Savings and Loan Company (Home Savings), announced today that net income for the quarter ended June 30, 2016, was $5.3 million, up 29.2% from the $4.1 million reported for the quarter ended June 30, 2015. Second quarter diluted earnings per share increased 33.3% to $0.112 from $0.084 reported at the same time last year. Net income for the six months ended June 30, 2016 totaled $8.7 million, up 10.7% from the $7.8 million reported for the six months ended June 30, 2015. For the same time period, diluted earnings per share increased to $0.182, up 14.5% from the $0.159 per share previously reported.

Gary M. Small, President and Chief Executive Officer of the Company, commented, "I am very proud of the team's accomplishments during a very challenging period. Regardless of the somewhat unfavorable rate environment facing the industry, we have managed to stay on our growth track in each business group. Year over year, loan growth is up 15%, revenue is up over 10%, and margin is improving while expenses remain relatively flat." Small continued, "Home Savings has developed a more diverse business model over the past 24 months. We are benefiting from those efforts today and we are better positioned to continue to deliver strong performance in the less certain times ahead."

Balance Sheet Highlights

Total Loans

Total loans, including loans held for sale, increased $182.4 million, or 14.5% to $1.4 billion at June 30, 2016, compared to June 30, 2015, and 13.3% on an annualized basis through the second quarter compared to December 31, 2015. This positive growth is being driven primarily by the commercial loan portfolio. Commercial loan production of $145.4 million for the first six months was approximately 30% higher than the first six months of 2015, while commercial loan balances grew over 39% during the same time period and 18.3% for the first six months of 2016. Unfunded commercial loan commitments grew by 35% during the first six months of 2016.

Residential loans, including residential loans held for sale, grew as planned at a measured pace, increasing $48.1 million, or 6.2%, at June 30, 2016 compared to June 30, 2015. During the same time period, residential loan production grew by 26.2%, when comparing the second quarter of 2016 to the same time period in the previous year. Pipeline levels remain strong at the end of the second quarter.

Total Deposits

Total deposits increased $16.5 million, or 1.1% to $1.5 billion at June 30, 2016, compared to June 30, 2015, and 2.8% on an annualized basis during the first six months of 2016 compared to December 31, 2015. The Company continues to see improvement in growing public funds, which grew $38.3 million, or 46.0%, to $121.7 million at June 30, 2016, compared to $83.4 million at June 30, 2015. Noninterest bearing checking accounts grew $29.9 million, or 14.5% at June 30, 2016, compared to June 30, 2015. Furthermore, the Company has seen an increase in business deposits of $13.9 million, or 11.7%, during the first half of the year. During the quarter, as planned, the Company allowed high-cost certificates of deposit to roll off, causing a reduction in certificates of deposit of $9.7 million. As the deposit base changes, the Company has realized the benefit of lowering its overall cost of deposits to 41 basis points for the three months ended June 30, 2016.

Second Quarter and Year-to-date Results

Net Interest Income and Margin

Net interest income on a fully taxable equivalent basis was $15.5 million in the second quarter of 2016, up 12.0% from the $13.9 million recorded in the second quarter of 2015. The improvement in net interest income was primarily due to the growth in average net loan balances and a decline in funding costs, quarter versus quarter. Net interest income on a fully taxable equivalent basis was $30.5 million in the first half of 2016, up 10% from the $27.7 million recorded in the first half of 2015.

Net interest margin was 3.25% for the second quarter of 2016, an increase from 3.16% reported in the second quarter of 2015. This increase was due to the prepayment of high cost debt at the end of 2015 and the repricing of higher cost certificates of deposit during the quarter.

Net interest margin was 3.23% for the first six months of 2016, an increase from 3.20% reported in the first six months of 2015. The Company is taking steps to mitigate the impact of the current challenging interest rate environment experienced by the Company and industry as a whole.

Provision for Loan Losses

The Company recognized a provision for loan losses expense of $395,000 in the second quarter of 2016 compared to an expense of $2.2 million in the first quarter of 2016. Net chargeoffs for the quarter totaled four basis points. The first quarter included the impact of the chargeoff of a long-held commercial real estate loan.

The Company recognized a provision for loan losses expense of $2.6 million in the first six months of 2016 compared to an expense of $569,000 in the comparable period of 2015.

Non-Interest Income

Non-interest income was $5.8 million in the second quarter of 2016 compared to $5.3 million in the second quarter of 2015. Favorably impacting the change was the benefit of insurance agency income of $516,000 coupled with a 21.1% increase in debit/credit card fees along with a 59.7% increase in brokerage income. The Company also recognized security gains of $233,000 in the quarter as the investment portfolio is realigned to include higher-yielding municipal securities. Offsetting these gains were an increase in the valuation adjustment of mortgage servicing rights of $498,000 and, to a lesser extent, a decrease in mortgage banking income of $172,000.

Non-interest income was $10.4 million in the first half of 2016 compared to $9.4 million in the comparable period last year. Positively impacting the comparison was the benefit of insurance agency income totaling $818,000. Also contributing to the change was an increase of 11.7% of deposit related fees along with an increase of 28.9% in brokerage income and a 14.9% increase in debit/credit card fees, for a total of $698,000. The first half also saw security gains totaling $419,000. These increases were partially offset by a $772,000 increase in the valuation adjustment of mortgage servicing rights.

Non-Interest Expense

Non-interest expense was $12.9 million for the second quarter of 2016, which represented an increase of $652,000, or 5.3%, from the second quarter of 2015. Included in this increase were expenses of $307,000 related to the operation of the insurance agency acquired in 2016. The efficiency ratio continues to show improvement at 60.81% for the second quarter of 2016 as compared to 63.40% in the same time period last year.

Non-interest expense was $25.3 million for the six months ended June 30, 2016, which represented an increase of $435,000, or 1.7%, from the six months ended June 30, 2015. As in the quarter to quarter comparison, the acquisition of the insurance company and its operating expenses to date of $517,000 positively impacted the current six months. After giving consideration to the new acquisition, non-interest expense was essentially flat, in comparison to the same period last year. The efficiency ratio was 62.34% for the first six months of 2016 compared to 66.64% for the same period last year.

Pre-tax, Pre-provision Income

Pre-tax, pre-provision income was $8.3 million for the three months ended June 30, 2016, up $1.3 million, or 19.3%, from the $6.9 million recorded for the three months ended June 30, 2015. Pre-tax, pre-provision income was $15.3 million for the six months ended June 30, 2016, up $3.1 million, or 25.2%, from the $12.2 million recorded for the six months ended June 30, 2015. Pre-tax, pre-provision income is derived by subtracting provision for loan losses and income tax expense from net income. The Company believes this non-GAAP measure presentation removes volatility that can occur quarter to quarter due to changes in factors used in calculating the provision for loan losses.

Equity

Tangible book value per common share at June 30, 2016 improved to $5.43, as compared to $5.14 at December 31, 2015. Much of this change was due to changes in accumulated other comprehensive income paralleling the drop in long-term interest which resulted in a higher valuation of the Company's securities portfolio. The Company continues its share repurchase program, repurchasing approximately 1.5 million shares during the first six months of 2016.

Dividend to be Paid

The Board of Directors declared an increase in a quarterly cash dividend of $0.03 per common share payable August 12, 2016 to shareholders of record at the close of business August 1, 2016.

Conference Call

United Community Financial Corp. will host an earnings conference call on Wednesday, July 20, 2016, at 10:00 a.m. ET., to provide an overview of the Company's second quarter 2016 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 2nd Quarter 2016 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.

UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
     
June 30, December 31,
2016 2015
(Dollars in thousands)
Assets:
Cash and deposits with banks $ 24,176 $ 20,528
Federal funds sold   17,011     15,382  
Total cash and cash equivalents 41,187 35,910
Securities:
Available for sale, at fair value 367,202 357,670
Held to maturity (fair value of $109,662 and $109,664, respectively) 107,505 110,699
Loans held for sale, at lower of cost or market 928 9,085
Loans held for sale, at fair value 42,919 26,716
Loans, net of allowance for loan losses of $17,172 and $17,712 1,398,106 1,316,192
Federal Home Loan Bank stock, at cost 18,068 18,068
Premises and equipment, net 20,579 20,678
Accrued interest receivable 6,434 5,978
Real estate owned and other repossessed assets 1,616 2,727
Goodwill 1,554
Core deposit intangible 7 30
Cash surrender value of life insurance 55,096 54,366
Other assets   19,341     29,870  
Total assets $ 2,080,542   $ 1,987,989  
 
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Interest bearing $ 1,219,573 $ 1,208,238
Non-interest bearing   236,173     227,505  
Total deposits 1,455,746 1,435,743
Borrowed funds:
Federal Home Loan Bank advances
Long-term advances 47,365 46,975
Short-term advances   296,000     232,000  
Total Federal Home Loan Bank advances 343,365 278,975
Repurchase agreements and other   523     535  
Total borrowed funds 343,888 279,510
Advance payments by borrowers for taxes and insurance 19,599 21,174
Accrued interest payable 99 53
Accrued expenses and other liabilities   7,135     7,264  
Total liabilities   1,826,467     1,743,744  
 
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding

Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and 46,492,527 and 47,517,644 shares, respectively, outstanding

173,203 174,304
Retained earnings 146,385 140,819
Accumulated other comprehensive loss (8,640 ) (19,220 )
Treasury stock, at cost, 7,646,383 and 6,621,266 shares, respectively   (56,873 )   (51,658 )
Total shareholders' equity   254,075     244,245  
Total liabilities and shareholders' equity $ 2,080,542   $ 1,987,989  
 

UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

           
For the Three Months Ended For the Six Months Ended
June 30   March 31, June 30, June 30   June 30,
2016 2016 2015 2016 2015
(Dollars in thousands, except per share data)
Interest income
Loans $ 14,184 $ 13,801 $ 12,890 $ 27,985 $ 25,581
Loans held for sale 363 332 341 695 635
Securities:
Available for sale, nontaxable 290 123 413
Available for sale, taxable 1,781 1,935 2,679 3,716 5,540
Held to maturity, nontaxable 62 55 12 117 12
Held to maturity, taxable 524 577 1,101
Federal Home Loan Bank stock dividends 180 182 178 362 360
Other interest earning assets   15     15     11     30     17  
Total interest income 17,399 17,020 16,111 34,419 32,145
Interest expense
Deposits 1,496 1,612 1,639 3,108 3,172
Federal Home Loan Bank advances 563 530 302 1,093 607
Repurchase agreements and other   6     5     319     11     635  
Total interest expense   2,065     2,147     2,260     4,212     4,414  
Net interest income 15,334 14,873 13,851 30,207 27,731
Taxable equivalent adjustment   187     95     6     282     6  
Net interest income (FTE) (1) 15,521 14,968 13,857 30,489 27,737
Provision for loan losses   395     2,155     753     2,550     569  
Net interest income after provision for loan losses (FTE)   15,126     12,813     13,104     27,939     27,168  
Non-interest income
Insurance agency income 516 302 818
Brokerage income 396 300 248 696 540
Service fees and other charges:
Deposit related fees 1,362 1,326 1,341 2,688 2,406
Mortgage servicing fees 701 698 681 1,399 1,355
Mortgage servicing rights valuation (292 ) (435 ) 206 (727 ) 45
Mortgage servicing rights amortization (567 ) (468 ) (462 ) (1,035 ) (905 )
Other service fees 47 18 20 65 37
Net gains (losses):
Securities available for sale 233 153 386 11
Mortgage banking income 1,869 1,382 2,041 3,251 3,594
Real estate owned and other repossessed assets charges, net (63 ) (13 ) (102 ) (76 ) (192 )
Debit/credit card fees 1,120 881 925 2,001 1,741
Other income   458     514     377     972     761  
Total non-interest income   5,780     4,658     5,275     10,438     9,393  
Non-interest expense
Salaries and employee benefits 7,186 7,088 6,898 14,274 14,074
Occupancy 855 862 768 1,717 1,686
Equipment and data processing 1,887 1,835 1,719 3,722 3,391
Financial institutions tax 431 442 326 873 652
Advertising 221 127 221 348 363
Amortization of core deposit intangible 10 13 13 23 27
FDIC insurance premiums 287 326 307 613 633
Other insurance premiums 73 89 85 162 169
Professional fees:
Legal and consulting fees 214 197 311 411 528
Other professional fees 351 70 386 421 762
Real estate owned and other repossessed asset expenses 77 72 18 149 159
Other expenses   1,268     1,343     1,156     2,611     2,445  
Total non-interest expenses   12,860     12,464     12,208     25,324     24,889  
Income before income taxes 8,046 5,007 6,171 13,053 11,672
Taxable equivalent adjustment 187 95 6 282 6
Income tax expense   2,529     1,592     2,040     4,121     3,855  
Net income $ 5,330   $ 3,320   $ 4,125   $ 8,650   $ 7,811  
 
Earnings per common share:
Basic $ 0.113 $ 0.070 $ 0.085 $ 0.182 $ 0.160
Diluted 0.112 0.069 0.084 0.182 0.159
 
(1)  

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
June 30, 2016 March 31, 2016 June 30, 2015
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) $ 1,369,683 $ 14,186 4.14 % $ 1,331,265 $ 13,801 4.15 % $ 1,190,446 $ 12,890 4.33 %
Loans held for sale 37,521 363 3.87 % 35,359 332 3.76 % 33,268 341 4.10 %
Securities:
Available for sale-taxable 315,583 1,781 2.26 % 337,226 1,935 2.30 % 485,576 2,679 2.21 %
Available for sale-nontaxable (2) 42,394 441 4.16 % 18,134 189 4.17 % %
Held to maturity-taxable 95,933 524 2.18 % 99,043 577 2.33 % %
Held to maturity-nontaxable (2) 12,971 96 2.96 % 10,375 83 3.20 % 2,184 18 3.30 %
Federal Home Loan Bank stock 18,068 180 3.98 % 18,068 182 4.03 % 18,068 178 3.94 %
Other interest earning assets   18,978   15 0.32 %   18,130   15 0.33 %   22,928   11 0.19 %
Total interest earning assets 1,911,131 17,586 3.68 % 1,867,600 17,114 3.67 % 1,752,470 16,117 3.68 %
Non-interest earning assets   132,780   133,988   129,858
Total assets $ 2,043,911 $ 2,001,588 $ 1,882,328
Interest bearing liabilities:
Deposits:
Checking accounts $ 505,284 261 0.21 % $ 481,350 266 0.22 % $ 489,690 257 0.21 %
Savings accounts 291,820 34 0.05 % 283,892 41 0.06 % 283,070 40 0.06 %
Certificates of deposit 434,053 1,201 1.11 % 447,459 1,305 1.17 % 445,707 1,342 1.20 %
Federal Home Loan Bank advances
Long-term advances 47,237 307 2.60 % 47,043 289 2.46 % 46,458 262 2.26 %
Short-term advances 246,967 256 0.41 % 236,747 241 0.41 % 103,093 40 0.16 %
Repurchase agreements and other   527   6 4.55 %   532   5 3.76 %   30,550   319 4.18 %
Total interest bearing liabilities $ 1,525,888   2,065 0.54 % $ 1,497,023   2,147 0.57 % $ 1,398,568   2,260 0.65 %
Non-interest bearing liabilities
Total noninterest bearing deposits 241,098 228,308 209,174
Other noninterest bearing liabilities   29,751   27,111   29,467
Total noninterest bearing liabilities   270,849   255,419   238,641
Total liabilities $ 1,796,737 $ 1,752,442 $ 1,637,209
Shareholders' equity   247,174   249,146   245,119
Total liabilities and equity $ 2,043,911 $ 2,001,588 $ 1,882,328
Net interest income and interest rate spread $ 15,521 3.14 % $ 14,967 3.09 % $ 13,857 3.03 %
Net interest margin 3.25 % 3.21 % 3.16 %
Average interest earning assets to average interest bearing liabilities 125.25 % 124.75 % 125.30 %
 
Total interest bearing deposits $ 1,231,157 $ 1,496 $ 1,212,701 $ 1,612 $ 1,218,467 $ 1,639
Non-interest bearing deposits   241,098     228,308     209,174  
Total average deposits and cost of deposits 1,472,255 1,496 0.41 % 1,441,009 1,612 0.45 % 1,427,641 1,639 0.46 %
Other interest bearing liabilities   294,731   569   284,322   535   180,101   621
Total average deposits and other interest bearing liabilities and total cost of funds $ 1,766,986 $ 2,065 0.47 % $ 1,725,331 $ 2,147 0.50 % $ 1,607,742 $ 2,260 0.56 %
 

(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

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

June 30,
2015

(Dollars in thousands, except per share data)
Financial Data
Total assets $ 2,080,542 $ 2,036,430 $ 1,987,989 $ 1,970,887 $ 1,922,789
Total loans, net 1,398,106 1,359,146 1,316,192 1,277,330 1,224,468
Total securities 474,707 473,207 468,369 479,817 477,747
Total deposits 1,455,746 1,466,614 1,435,743 1,410,484 1,439,247
Average interest-bearing deposits 1,231,157 1,212,701 1,209,063 1,219,735 1,218,467
Average noninterest-bearing deposits 241,098 228,308 219,379 211,923 209,174
Total shareholders' equity 254,075 251,804 244,245 243,929 236,462
Net interest income 15,334 14,873 14,490 14,301 13,851
Net interest income (FTE) (1) 15,521 14,967 14,535 14,320 13,857
Provision (recovery) for loan losses 395 2,155 893 673 753
Noninterest income 5,780 4,658 5,451 4,873 5,275
Noninterest expense 12,859 12,464 12,755 12,285 12,208
Income tax expense (benefit) 2,529 1,592 1,965 2,073 2,040
Net income 5,330 3,320 4,328 4,143 4,125
 
Share Data
Basic earnings per common share $ 0.113 $ 0.070 $ 0.091 $ 0.087 $ 0.085
Diluted earnings per common share 0.112 0.069 0.090 0.086 0.084
Book value per common share 5.46 5.30 5.14 5.12 4.95
Tangible book value per common share 5.43 5.27 5.14 5.12 4.95
Market value per common share 6.08 5.87 5.90 5.00 5.35
 
Common shares outstanding at end of period 46,493 47,507 47,518 47,614 47,763
Weighted average shares outstanding--basic 46,869 47,272 47,356 47,480 48,359
Weighted average shares outstanding--diluted 47,117 47,551 47,636 47,744 48,634
 
Key Ratios
Return on average assets (2) 1.04 % 0.66 % 0.88 % 0.85 % 0.88 %
Return on average equity (3) 8.63 % 5.33 % 7.02 % 6.87 % 6.73 %
Net interest margin 3.25 % 3.21 % 3.16 % 3.18 % 3.16 %
Efficiency ratio (4) 60.81 % 63.90 % 63.74 % 63.54 % 63.40 %
Nonperforming loans to net loans, end of period 1.45 % 1.48 % 1.27 % 1.20 % 1.55 %
Nonperforming assets to total assets, end of period 1.06 % 1.08 % 0.98 % 0.95 % 1.16 %
Allowance for loan loss as a percent of loans, end of period 1.21 % 1.23 % 1.33 % 1.35 % 1.36 %
Delinquent loans to total net loans, end of period 1.49 % 1.50 % 1.70 % 1.62 % 1.43 %

_____________________

(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)

Excludes penalty on the prepayment of repurchase agreements

 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

June 30,
2015

(Dollars in thousands)
Loan Portfolio Composition
Commercial loans
Multi-family $ 81,022 $ 80,581 $ 80,170 $ 74,042 $ 69,485
Owner/nonowner occupied commercial real estate 196,110 184,279 175,456 167,366 148,025
Land 9,748 8,938 9,301 9,709 10,231
Construction 61,744 49,858 38,812 26,545 16,265
Commercial and industrial   88,804     83,256     66,013     65,004     69,269  
Total 437,428 406,912 369,752 342,666 313,275
Residential mortgage loans
Real estate 747,530 741,401 733,685 723,619 709,342
Construction   35,275     38,994     40,898     40,723     34,074  

Total

782,805 780,395 774,583 764,342 743,416
Consumer loans
Consumer   193,273     187,323     188,258     186,661     183,696  
Total   193,273     187,323     188,258     186,661     183,696  
Total loans 1,413,506 1,374,630 1,332,593 1,293,669 1,240,387
Less:
Allowance for loan losses 17,172 16,903 17,712 17,482 16,881
Deferred loan costs, net   (1,772 )   (1,419 )   (1,311 )   (1,143 )   (962 )
Total   15,400     15,484     16,401     16,339     15,919  
Total loans, net 1,398,106 1,359,146 1,316,192 1,277,330 1,224,468
Loans held for sale, net   43,847     35,998     35,801     38,274     35,102  
Total loans $ 1,441,953   $ 1,395,144   $ 1,351,993   $ 1,315,604   $ 1,259,570  
 
 
At or for the quarters ended

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

June 30,
2015

(Dollars in thousands)
Deposit Portfolio Composition
Checking accounts
Interest bearing checking accounts $ 182,713 $ 194,586 $ 160,264 $ 168,025 $ 179,969
Non-interest bearing checking accounts   236,173     230,831     227,505     208,598     206,228  
Total checking accounts 418,886 425,417 387,769 376,623 386,197
Savings accounts 292,232 288,324 280,889 277,313 282,737
Money market accounts   314,081     312,577     312,125     309,004     313,602  
Total non-time deposits 1,025,199 1,026,318 980,783 962,940 982,536
Retail certificates of deposit   430,547     440,296     454,960     447,544     456,711  
Total certificates of deposit   430,547     440,296     454,960     447,544     456,711  
Total deposits $ 1,455,746   $ 1,466,614   $ 1,435,743   $ 1,410,484   $ 1,439,247  
 
Certificates of deposit as a percent of total deposits 29.58 % 30.02 % 31.69 % 31.73 % 31.73 %
 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

June 30,
2015

(Dollars in thousands)
 
Allowance For Loan Losses
Beginning balance $ 16,903 $ 17,712 $ 17,482 $ 16,881 $ 17,221
Provision (recovery) 395 2,155 893 673 753
Net chargeoffs   (126 )   (2,964 )   (663 )   (72 )   (1,093 )
Ending balance $ 17,172   $ 16,903   $ 17,712   $ 17,482   $ 16,881  
 
At or for the quarters ended

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

June 30,
2015

(Dollars in thousands)
Net (Charge-offs) Recoveries
Commercial loans
Multi-family $ 3 $ 7 $ 7 $ 9 $ (64 )
Owner/nonowner occupied commercial real estate (117 ) (2,213 ) (67 ) (109 ) (31 )
Land (100 ) (12 )
Construction 21 (88 ) (603 )
Commercial and industrial   62     (74 )   141     137     127  
Total (52 ) (2,280 ) 2 (63 ) (571 )
Residential mortgage loans
Real estate (59 ) (300 ) (611 ) (17 ) (306 )
Construction                    
Total (59 ) (300 ) (611 ) (17 ) (306 )
Consumer loans
Consumer   (15 )   (384 )   (54 )   8     (216 )
Total   (15 )   (384 )   (54 )   8     (216 )
Total net chargeoffs $ (126 ) $ (2,964 ) $ (663 ) $ (72 ) $ (1,093 )
 
 
At or for the quarters ended

June 30,
2016

March 31,
2016

December 31,
2015

September 30,
2015

June 30,
2015

(Dollars in thousands)
Nonperforming Loans
Commercial loans
Multi-family $ $ $ $ $ 85
Owner/nonowner occupied commercial real estate 7,370 7,557 3,599 3,694 5,637
Land 384 384 384 484 496
Construction 415 415
Commercial and industrial   4,624     4,652     4,016     4,016     4,016  
Total 12,378 12,593 7,999 8,609 10,649
Residential mortgage loans
Real estate 5,713 5,312 6,181 4,845 6,475
Construction                    
Total 5,713 5,312 6,181 4,845 6,475
Consumer loans
Consumer   2,250     2,200     2,567     1,887     1,887  
Total   2,250     2,200     2,567     1,887     1,887  
Total nonperforming loans $ 20,341   $ 20,105   $ 16,747   $ 15,341   $ 19,011  
 
 
Total Nonperforming Loans and Nonperforming Assets
Past due 90 days and on nonaccrual status $ 15,819 $ 15,663 $ 16,279 $ 14,891 $ 14,246
Past due 90 days and still accruing                    
Past due 90 days 15,819 15,663 16,279 14,891 14,246
Past due less than 90 days and on nonaccrual   4,522     4,442     468     450     4,765  
Total nonperforming loans 20,341 20,105 16,747 15,341 19,011
Other real estate owned 1,613 1,832 2,651 3,262 3,127
Repossessed assets   3     14     76     54     234  
Total nonperforming assets $ 21,957   $ 21,951   $ 19,474   $ 18,657   $ 22,372  

Media Contact:
Home Savings
Colleen Scott, 330-742-0638
Vice President of Marketing
cscott@homesavings.com
or
Investor Contact:
United Community Financial Corp.
Gary M. Small, 330-742-0472
President and Chief Executive Officer

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