United Community Financial Corp. (Company) (NASDAQ: 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 16.6% improvement over the $0.163 per common share
reported for the quarter ended June 30, 2017.
Second quarter 2018 highlights:
- Total loan growth of 12.9% over the
last twelve months, and 3.1% on a linked quarter basis
- Monthly average customer deposit growth
of 10.1% over the last twelve months, and 2.2% over the last three
months
- ROA of 1.40%, ROE of 12.56%, ROTE of
13.65% for the quarter
- Dividend increase of 17% to $0.07 per
common share declared
Gary M. Small President and Chief Executive Officer of the
Company commented, “We are pleased with the quarterly performance
results and the ongoing progress on our strategic initiatives
focused on loan, deposit and revenue growth. Each market and
business unit is showing improvement and our client base is
expanding. Loan growth, outstanding credit performance, and a
well-managed expense base continue to be strong points for the
organization. Deposit growth over the past year has been
outstanding and remains a central focus for the team.”
Strong Loan and Deposit Growth
Total loans grew $252.2 million, or 12.9%, during the previous
twelve months ended June 30, 2018, and $66.7 million, or 3.1%
compared to the previous quarter. At June 30, 2018, total net loans
and loans held for sale aggregated $2.21 billion.
Home Savings has produced excellent results over all lending
categories. The increase in total loans for the period was driven
by an increase in commercial loans, which grew $158.6 million, or
21.4%, over the last twelve months and $27.7 million, or 3.2%,
versus March 31, 2018. Mortgage loans (including loans held for
sale) increased $59.5 million, or 6.1%, over the previous twelve
months and increased $32.3 million, or 3.2%, during the past three
months. Consumer loans increased $33.8 million, or 13.4%, since
June 30, 2017 and $5.8 million, or 2.1%, since the previous
quarter.
Monthly average customer deposits (which exclude brokered
certificates of deposit) increased 10.1% from June 30, 2017 and
2.2% from March 31, 2018. The growth in average customer deposits
was driven by increases in average non-interest bearing accounts of
12.7% over the past twelve months and an increase of 0.60% over the
past three months. Average business deposits continue to rise,
increasing 16.6% over the past twelve months and 2.8% over the past
three months. The Company continues to experience deposit gains
from all lines of business including treasury management, private
banking, consumer and public funds.
Net Interest Margin
The net interest margin was 3.36% for the three months ended
June 30, 2018 compared to 3.47% for the previous quarter. This
eleven basis point decrease is the result of three separate items.
First, a one time prepayment penalty on a commercial loan in the
first quarter 2018 increased the margin five basis points in that
quarter. Secondly, purchase accounting adjustments were two basis
points less favorable to the margin than the first quarter of 2018.
Lastly, the remaining four basis point difference is the result of
a 38 basis point increase in cost of Federal Home Loan Bank
advances.
Excluding the impact of purchase accounting yield adjustments,
the net interest margin would have been 3.29%, or seven basis
points lower than the 3.36% reported, for the quarter ended June
30, 2018.
Small continued, “The flattening yield curve presents challenges
for all in the banking industry and adds more volatility to Home
Savings’ net interest margin management. We are operating within
our expected margin range and are funded well for additional
growth.”
Nonperforming Loans to Total Loans Ratio
Decreases during the Second Quarter
Asset quality remained very strong during the second quarter.
The Company’s level of nonperforming loans, delinquencies and
classified assets all improved during the quarter. Net chargeoffs
for the quarter were 1.3 basis points of average loans.
Additionally, over the past three months, the ratio of the
allowance for loan losses as a percent of loans has increased from
177.5% to 198.4% at June 30, 2018. Nonperforming loans to total
loans at June 30, 2018 declined to 0.51%. Delinquent loans to total
loans are down to 0.67% at June 30, 2018.
The Company recognized a negative provision for loan losses of
$138,000 for the second quarter of 2018, which was down $545,000 in
comparison to the previous quarter. Continued asset quality
improvements, and an improved credit environment, combined with a
favorable change in loan portfolio mix resulted in the need for a
lower required provision. As of June 30, 2018, the Company’s
allowance for loan losses to total loans was 1.01%, versus 1.04% at
March 31, 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 $3.0 million and the Company’s allowance,
the Company’s allowance as a percentage of total loans increases to
1.15%.
Non-Interest Income
Non-interest income decreased $1.2 million to $5.9 million for
the second quarter of 2018 compared to $7.1 million for the same
quarter last year. Significantly affecting this comparison is
mortgage banking income being lower by $912,000, or 43.1%. The
volume of mortgage loan production increased 17% and is very
favorable to the prior year, however, as experienced industry-wide,
market competitiveness continues to impact the margin on saleable
loans.
On a year to date basis, mortgage banking income was down 25.5%
compared to the same period last year.
Also affecting non-interest income, security gains were down
$207,000 when compared to the second quarter of 2017. Lastly,
debit/credit card fee income was down $149,000, when compared to
the second quarter of 2017 due primarily to a one-time VISA credit
as a result of the implementation of a more secure chip debit card,
which did not reoccur in 2018.
Small added, “Home Savings’ residential mortgage team has
delivered double-digit production growth over the past year, well
in excess of the industry benchmark. The landscape is more
competitive than ever and pricing has gotten very aggressive. While
narrowed pricing is having an adverse impact on gain on sale
income, we also see our portfolio yields increasing and our related
operating costs decreasing. On balance, the business unit
performance remains strong, and we remain very committed to our
residential mortgage clients.”
Non-Interest Expense
Non-interest expense was $15.5 million for the second quarter of
2018 compared to $15.2 million during the second quarter of 2017,
an increase of $354,000, or 2.3%. This increase is reflective of
higher salary and employee benefits costs associated with the
hiring of additional revenue generating staff in the latter half of
2017. The Company’s efficiency ratio remains consistent at
57.8%.
Effective Tax Rate
The Company’s effective tax rate on an FTE basis at June 30,
2018 was 19.5% compared to 30.6% at June 30, 2017. The decline was
due to the enactment of tax legislation at the end of the year.
Dividend to be Paid
On July 17, 2018, the Board of Directors declared a 17% increase
to the quarterly cash dividend to $0.07 per common share payable
August 10, 2018 to shareholders of record July 27, 2018.
Conference Call
United Community Financial Corp. will host an earnings
conference call on Wednesday, July 18, 2018, at 10:00 a.m. ET, to
provide an overview of the Company's second 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 2nd 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.
UNITED COMMUNITY FINANCIAL CORP. CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION (Unaudited)
June 30, December 31, 2018 2017 F/(U) (Dollars
in thousands)
Assets: Cash and deposits with banks $ 32,584
$ 34,365 -5.2 % Federal funds sold 34,393
12,515 174.8 % Total cash and cash equivalents 66,977 46,880
42.9 % Securities: Available for sale, at fair value 247,630
270,561 -8.5 % Held to maturity (fair value of $78,194 and $82,126,
respectively) 81,294 82,911 -2.0 % Loans held for sale, at lower of
cost or market — 211 -100.0 % Loans held for sale, at fair value
107,701 83,541 28.9 % Loans, net of allowance for loan losses of
$21,405 and $21,202 2,099,781 1,999,877 5.0 % Federal Home Loan
Bank stock, at cost 19,324 19,324 0.0 % Premises and equipment, net
21,645 22,094 -2.0 % Accrued interest receivable 8,454 8,190 3.2 %
Real estate owned and other repossessed assets 877 1,253 -30.0 %
Goodwill 20,221 20,221 0.0 % Core deposit intangible 1,769 1,934
-8.5 % Customer list intangible 1,980 2,060 -3.9 % Cash surrender
value of life insurance 63,354 62,488 1.4 % Other assets
29,551 28,360 4.2 %
Total assets $
2,770,558 $ 2,649,905 4.6 %
Liabilities and
Shareholders' Equity Liabilities: Deposits: Interest
bearing $ 1,563,043 $ 1,445,293 8.1 % Noninterest bearing
383,082 354,970 7.9 % Customer deposits
1,946,125 1,800,263 8.1 % Brokered deposits 189,220
156,476 20.9 % Total deposits 2,135,345 1,956,739 9.1
% Borrowed funds: Federal Home Loan Bank advances Long-term
advances 48,927 48,536 0.8 % Short-term advances 248,000
308,000 -19.5 % Total Federal Home Loan Bank
advances 296,927 356,536 -16.7 % Repurchase agreements and other
191 197 -3.0 % Total borrowed funds
297,118 356,733 -16.7 % Advance payments by borrowers for taxes and
insurance 19,253 25,038 -23.1 % Accrued interest payable 964 1,097
-12.1 % Accrued expenses and other liabilities 16,394
16,033 2.3 %
Total liabilities
2,469,074 2,355,640 4.8 %
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 49,904,074 and
49,800,126 shares, respectively, outstanding
177,311 177,458 -0.1 % Retained earnings 179,965 167,852 7.2 %
Accumulated other comprehensive loss (24,077 ) (18,685 ) 28.9 %
Treasury stock, at cost, 4,234,836 and 4,338,784 shares,
respectively (31,715 ) (32,360 ) -2.0 %
Total
shareholders’ equity 301,484 294,265
2.5 %
Total liabilities and shareholders’ equity $
2,770,558 $ 2,649,905 4.6 %
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, 2018 2018 F/(U) 2017 F/(U) 2018 2017 F/(U) (Dollars in
thousands, except per share data)
Interest income Loans $
23,275 $ 22,759 2.3 % $ 20,011 16.3 % $ 46,034 $ 37,569 22.5 %
Loans held for sale 1,012 858 17.9 % 872 16.1 % 1,870 1,533 22.0 %
Securities: Available for sale, nontaxable 356 388 -8.2 % 418 -14.8
% 744 836 -11.0 % Available for sale, taxable 1,193 1,215 -1.8 %
1,479 -19.3 % 2,408 3,081 -21.8 % Held to maturity, nontaxable 61
51 19.6 % 52 17.3 % 112 114 -1.8 % Held to maturity, taxable 398
422 -5.7 % 454 -12.3 % 820 919 -10.8 % Federal Home Loan Bank stock
dividends 274 280 -2.1 % 227 20.7 % 554 441 25.6 % Other interest
earning assets 92 77 19.5 % 40
130.0 % 169 120 40.8 % Total
interest income 26,661 26,050 2.3 % 23,553 13.2 % 52,711 44,613
18.2 %
Interest expense Deposits 3,790 3,097 -22.4 % 1,987
-90.7 % 6,887 3,608 -90.9 % Federal Home Loan Bank advances 1,576
1,420 -11.0 % 1,064 -48.1 % 2,996 2,019 -48.4 % Repurchase
agreements and other — — 0.0 % 8
100.0 % — 16 100.0 % Total
interest expense 5,366 4,517 -18.8 %
3,059 -75.4 % 9,883 5,643
-75.1 %
Net interest income 21,295 21,533 -1.1 % 20,494 3.9
% 42,828 38,970 9.9 %
Taxable equivalent adjustment
90 97 -7.2 % 229 -60.7 %
187 466 -59.9 %
Net interest income
(FTE) (1) 21,385 21,630 -1.1 % 20,723 3.2 % 43,015
39,436 9.1 %
Provision for loan losses (138 )
407 133.9 % 842 116.4 % 269
2,317 88.4 %
Net interest income after provision
for loan losses (FTE) 21,523 21,223
1.4 % 19,881 8.3 % 42,746 37,119
15.2 %
Non-interest income Insurance agency income
513 577 -11.1 % 472 8.7 % 1,090 945 15.3 % Brokerage income 300 272
10.3 % 301 -0.3 % 572 623 -8.2 % Service fees and other charges:
Deposit related fees 1,392 1,300 7.1 % 1,411 -1.3 % 2,692 2,701
-0.3 % Mortgage servicing fees 813 812 0.1 % 729 11.5 % 1,625 1,465
10.9 % Mortgage servicing rights valuation (20 ) 9 -322.2 % (2 )
900.0 % (11 ) (5 ) -120.0 % Mortgage servicing rights amortization
(542 ) (500 ) 8.4 % (486 ) 11.5 % (1,042 ) (935 ) -11.4 % Other
service fees 61 38 60.5 % 33 84.8 % 99 62 59.7 % Net gains
(losses): Securities available for sale 94 139 -32.4 % 301 -68.8 %
233 330 -29.4 % Mortgage banking income 1,205 1,358 -11.3 % 2,117
-43.1 % 2,563 3,440 -25.5 % Real estate owned and other repossessed
assets charges, net (113 ) (78 ) 44.9 % (18 ) 527.8 % (191 ) (70 )
-172.9 % Debit/credit card fees 1,177 949 24.0 % 1,326 -11.2 %
2,126 2,249 -5.5 % Trust fee income 473 469 0.9 % 420 12.6 % 942
702 34.2 % Other income 499 474 5.3 %
486 2.7 % 973 967 0.6 %
Total non-interest income 5,852 5,819
0.6 % 7,090 -17.5 % 11,671
12,474 -6.4 %
Non-interest expense Salaries and
employee benefits 8,937 9,998 10.6 % 8,749 -2.1 % 18,935 17,724
-6.8 % Occupancy 950 1,100 13.6 % 943 -0.7 % 2,050 1,907 -7.5 %
Equipment and data processing 2,372 2,154 -10.1 % 2,306 -2.9 %
4,526 4,385 -3.2 % Financial institutions tax 495 496 0.2 % 510 2.9
% 991 1,000 0.9 % Advertising 290 235 -23.4 % 265 -9.4 % 525 389
-35.0 % Amortization of intangible assets 132 113 -16.8 % 113 -16.8
% 245 196 -25.0 % FDIC insurance premiums 288 290 0.7 % 340 15.3 %
578 528 -9.5 % Other insurance premiums 109 109 0.0 % 109 0.0 % 218
221 1.4 % Professional fees: Legal fees 147 299 50.8 % 184 20.1 %
446 413 -8.0 % Other professional fees 499 391 -27.6 % 420 -18.8 %
890 940 5.3 % Supervisory fees 42 42 0.0 % — 0.0 % 84 — -100.0 %
Real estate owned and other repossessed asset expenses 34 36 5.6 %
23 -47.8 % 70 85 17.6 % Acquisition related expenses — — 0.0 % —
0.0 % — 4,962 100.0 % Other expenses 1,235
1,337 7.6 % 1,214 -1.7 % 2,572
2,716 5.3 % Total non-interest expenses 15,530
16,600 6.4 % 15,176 -2.3 %
32,130 35,466 9.4 %
Income before
income taxes 11,845 10,442 13.4 % 11,795 0.4 % 22,287 14,127
57.8 %
Taxable equivalent adjustment 90 97 7.2 % 229 60.7 %
187 466 59.9 %
Income tax expense 2,214
1,789 -23.8 % 3,377 34.4 % 4,003
3,934 -1.8 %
Net income $ 9,541 $ 8,556
11.5 % $ 8,189 16.5 % $ 18,097 $ 9,727
86.0 %
Earnings per common share: Basic $ 0.191 $
0.172 11.0 % $ 0.165 15.8 % $ 0.363 $ 0.198 83.3 % Diluted 0.190
0.171 11.1 % 0.163 16.6 % 0.361 0.196 84.2 % (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, 2018 March 31, 2018 June 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) $ 2,075,307 $ 23,275 4.49 %
$ 2,026,266 $ 22,760 4.49 % $ 1,863,525 $ 20,012 4.30 % Loans held
for sale 91,836 1,012 4.42 % 80,681 858
4.31 % 80,205 872 4.35 % Total loans, net 2,167,143
24,287 4.48 % 2,106,947 23,618 4.49 % 1,943,730 20,884 4.30 %
Securities: Available for sale-taxable 207,908 1,193 2.30 % 211,332
1,215 2.30 % 258,217 1,479 2.29 % Available for sale-nontaxable (2)
50,710 429 3.38 % 54,737 472 3.45 % 59,209 619 4.18 % Held to
maturity-taxable 70,406 398 2.26 % 72,627 422 2.32 % 80,817 454
2.25 % Held to maturity-nontaxable (2) 11,265 78 2.77
% 9,227 63 2.73 % 9,843 79 3.21 % Total
securities 340,289 2,098 2.47 % 347,923 2,172 2.50 % 408,086 2,631
2.58 % Federal Home Loan Bank stock 19,324 274 5.67 % 19,324 280
5.80 % 19,324 227 4.70 % Other interest earning assets
23,831 92 1.55 % 22,479 77 1.39 %
22,129 40 0.72 % Total interest earning assets 2,550,587
26,751 4.20 % 2,496,673 26,147 4.19 % 2,393,269 23,782 3.97 %
Non-interest earning assets 174,270 176,785
180,524 Total assets $ 2,724,857 $ 2,673,458 $ 2,573,793 Interest
bearing liabilities: Deposits: Checking accounts $ 638,910 948 0.60
% $ 593,499 687 0.47 % $ 633,276 480 0.30 % Savings accounts
307,250 26 0.03 % 303,639 27 0.04 % 308,683 27 0.03 % Certificates
of deposit Customer certificates of deposit 608,079 2,143 1.41 %
581,858 1,817 1.27 % 504,397 1,166 0.92 % Brokered certificates of
deposit 164,400 673 1.64 % 165,169 566
1.39 % 133,082 314 0.94 % Total certificates of
deposit 772,479 2,816 1.46 % 747,027
2,383 1.29 % 637,479 1,480 0.93 % Total interest
bearing deposits 1,718,639 3,790 0.88 % 1,644,165 3,097 0.76 %
1,579,438 1,987 0.50 % Federal Home Loan Bank advances Long-term
advances 48,799 493 4.05 % 48,603 431 3.60 % 48,019 370 3.08 %
Short-term advances 236,747 1,083 1.83 %
265,322 989 1.51 % 286,604 694 0.97 % Total
Federal Home Loan Bank advances 285,546 1,576 2.21 % 313,925 1,420
1.83 % 334,623 1,064 1.27 % Repurchase agreements and other
195 — 0.00 % 213 — 0.00 % 4,844
8 0.66 % Total borrowed funds 285,741 1,576 2.21 %
314,138 1,420 1.83 % 339,467 1,072 1.26
% Total interest bearing liabilities $ 2,004,380 5,366 1.07
% $ 1,958,303 4,517 0.94 % $ 1,918,905 3,059 0.64 %
Non-interest bearing liabilities Total noninterest bearing deposits
376,905 375,142 333,784 Other noninterest bearing liabilities
39,839 40,729 38,771 Total noninterest bearing
liabilities 416,744 415,871 372,555 Total
liabilities $ 2,421,124 $ 2,374,174 $ 2,291,460 Shareholders’
equity 303,733 299,284 282,333 Total
liabilities and equity $ 2,724,857 $ 2,673,458 $ 2,573,793 Net
interest income and interest rate spread $ 21,385 3.13 % $ 21,630
3.25 % $ 20,723 3.33 % Net interest margin 3.36 % 3.47 % 3.46 %
Average interest earning assets to average interest bearing
liabilities 127.25 % 127.49 % 124.72 % Interest
bearing deposits Checking accounts $ 638,910 $ 948 0.60 % $ 593,499
$ 687 0.47 % $ 633,276 $ 480 0.30 % Savings accounts 307,250 26
0.03 % 303,639 27 0.04 % 308,683 27 0.03 % Customer certificates of
deposit 608,079 2,143 1.41 % 581,858
1,817 1.27 % 504,397 1,166 0.92 % Total customer
deposits 1,554,239 3,117 0.80 % 1,478,996 2,531 0.68 % 1,446,356
1,673 0.46 % Brokered certificates of deposit 164,400
673 1.64 % 165,169 566 1.39 % 133,082
314 0.94 % Total interest bearing deposits 1,718,639 3,790 0.88 %
1,644,165 3,097 0.76 % 1,579,438 1,987 0.50 % Noninterest bearing
deposits 376,905 — 0.00 % 375,142 —
0.00 % 333,784 — 0.00 % Total average deposits and
cost of deposits $ 2,095,544 $ 3,790 0.72 % $ 2,019,307 $ 3,097
0.62 % $ 1,913,222 $ 1,987 0.42 % Other interest bearing
liabilities Federal Home Loan Bank advances Long term advances $
48,799 $ 493 4.05 % $ 48,603 $ 431 3.60 % $ 48,019 $ 370 3.08 %
Short term advances 236,747 1,083 1.83 %
265,322 989 1.51 % 286,604 694 0.97 % Total
Federal Home Loan Bank advances 285,546 1,576 2.21 % 313,925 1,420
1.83 % 334,623 1,064 1.27 % Repurchase agreements and other
195 — 0.00 % 213 — 0.00 % 4,844
8 0.66 % Total borrowed funds 285,741 1,576 2.21 %
314,138 1,420 1.83 % 339,467 1,072 1.26
% Total average deposits and other interest bearing liabilities and
total cost of funds $ 2,381,285 $ 5,366 0.90 % $ 2,333,445 $ 4,517
0.79 % $ 2,252,689 $ 3,059 0.54 % Customer deposits
interest bearing and noninterest bearing $ 1,931,144 $ 3,117 0.65 %
$ 1,854,138 $ 2,531 0.55 % $ 1,780,140 $ 1,673 0.38 % Brokered
deposits 164,400 673 1.64 % 165,169 566 1.39 % 133,082 314 0.94 %
Total borrowings 285,741 1,576 2.21 % 314,138 1,420 1.83 % 339,467
1,072 1.26 % Cost of funds 2,381,285 5,366 0.90 % 2,333,445 4,517
0.79 % 2,252,689 3,059 0.54 %
(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 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands, except per share data)
Financial Data
Total assets $ 2,770,558 $ 2,690,707 $ 2,649,905 $ 2,602,365 $
2,553,565 Total loans, net 2,099,781 2,061,443 1,999,877 1,947,695
1,869,095 Total securities 328,924 338,593 353,472 360,371 375,738
Total deposits 2,135,345 2,066,978 1,956,739 1,938,699 1,893,993
Average interest-bearing deposits 1,718,639 1,644,165 1,598,922
1,563,464 1,579,438 Average noninterest-bearing deposits 376,905
375,142 355,225 337,067 333,784 Total shareholders' equity 301,484
296,195 294,265 291,851 285,480 Net interest income 21,295 21,533
20,880 20,503 20,494 Net interest income (FTE) (1) 21,385 21,630
21,101 20,727 20,723 (Recovery) provision for loan losses (138 )
407 1,215 721 842 Noninterest income 5,852 5,819 6,460 6,305 7,090
Noninterest expense 15,530 16,600 17,329 15,464 15,176 Income tax
expense 2,214 1,789 4,294 3,067 3,377 Net income 9,541 8,556 4,502
7,556 8,189
Share Data Basic earnings per common
share $ 0.191 $ 0.172 $ 0.090 $ 0.152 $ 0.165 Diluted earnings per
common share 0.190 0.171 0.090 0.151 0.163 Book value per common
share 6.04 5.94 5.90 5.87 5.74 Tangible book value per common share
5.56 5.45 5.41 5.38 5.27 Market value per common share 10.99 9.86
9.13 9.60 8.31 Common shares outstanding at end of period
49,904 49,882 49,800 49,758 49,715 Weighted average shares
outstanding--basic 49,694 49,611 49,497 49,460 49,392 Weighted
average shares outstanding--diluted 50,006 49,885 49,827 49,851
49,795
Key Ratios Return on average assets (ROA) (2)
1.40 % 1.28 % 0.68 % 1.17 % 1.27 % Return on average equity
(ROE)(3) 12.56 % 11.44 % 6.09 % 10.43 % 11.60 % Return on tangible
equity (ROTE)(4) 13.65 % 12.44 % 6.62 % 11.35 % 12.66 % Net
interest margin 3.36 % 3.47 % 3.43 % 3.45 % 3.46 % Efficiency ratio
57.75 % 60.20 % 63.73 % 57.13 % 54.71 % Nonperforming loans to net
loans, end of period 0.51 % 0.59 % 0.59 % 0.62 % 0.58 %
Nonperforming assets to total assets, end of period 0.57 % 0.65 %
0.64 % 0.75 % 0.72 % Allowance for loan loss as a percent of loans,
end of period 1.01 % 1.04 % 1.05 % 1.04 % 1.04 % Delinquent loans
to total net loans, end of period 0.67 % 0.81 % 0.86 % 0.89 % 0.77
%
______________________________
(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
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands)
Loan Portfolio Composition
Commercial loans Multi-family $ 141,004 $ 137,836 $ 120,480
$ 126,977 $ 121,565 Owner/nonowner occupied commercial real estate
396,624 384,533 381,611 366,747 342,300 Land 16,887 15,452 15,162
13,666 10,867 Construction 127,691 134,181 116,863 108,105 96,765
Commercial and industrial 218,611 201,132
188,500 175,581 170,758
Total 900,817 873,134 822,616 791,076 742,255
Residential mortgage loans Real estate 888,583 882,873
870,939 851,863 834,349 Construction 40,623
42,453 49,092 57,081
56,946
Total 929,206 925,326 920,031 908,944 891,295
Consumer loans Consumer 284,909 279,110
273,494 263,692 251,151
Total 284,909 279,110
273,494 263,692 251,151
Total loans 2,114,932 2,077,570 2,016,141 1,963,712
1,884,701 Less: Allowance for loan losses 21,405 21,610 21,202
20,555 19,660 Deferred loan costs, net (6,254 )
(5,483 ) (4,938 ) (4,538 ) (4,054 )
Total 15,151 16,127
16,264 16,017 15,606
Total
loans, net 2,099,781 2,061,443 1,999,877 1,947,695 1,869,095
Loans held for sale, net 107,701 79,292
83,752 84,545 86,153
Total loans $ 2,207,482 $ 2,140,735 $
2,083,629 $ 2,032,240 $ 1,955,248
At or for the quarters ended
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands)
Deposit Portfolio Composition
Checking accounts Interest bearing checking accounts $
138,812 $ 140,740 $ 170,478 $ 173,171 $ 175,800 Non-interest
bearing checking accounts 383,082 376,904
354,970 343,146 339,067
Total checking accounts 521,894 517,644 525,448
516,317 514,867 Savings accounts 306,283 308,025 301,716 307,169
310,012 Money market accounts 502,560 483,840
424,234 418,294 427,348
Total non-time deposits 1,330,737 1,309,509 1,251,398
1,241,780 1,252,227 Certificates of deposit less than or equal to
$250,000 744,770 704,147 651,255 617,839 557,300 Certificates of
deposit greater than $250,000 59,838 53,322
54,086 79,080 84,466
Total certificates of deposit 804,608
757,469 705,341 696,919
641,766
Total deposits $ 2,135,345 $
2,066,978 $ 1,956,739 $ 1,938,699 $ 1,893,993
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
At or for the quarters ended
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands)
Allowance For Loan Losses
Beginning balance $ 21,610 $ 21,202 $ 20,555 $ 19,660 $ 18,970
Provision (138 ) 407 1,215 721 842 Net (chargeoffs) recoveries
(67 ) 1 (568 ) 174
(152 ) Ending balance $ 21,405 $ 21,610 $ 21,202
$ 20,555 $ 19,660 At or for the
quarters ended
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands)
Net Recoveries (Charge-offs)
Commercial loans Multi-family $ 9 $ 6 $ (126 ) $ (4 ) $ 4
Owner/nonowner occupied commercial real estate 29 40 23 39 24 Land
— — — — — Construction 10 7 — — — Commercial and industrial
(72 ) 104 (90 ) 314 108
Total (24 ) 157 (193 ) 349 136
Residential
mortgage loans Real estate (14 ) (66 ) (257 ) (291 ) (239 )
Construction — — —
— —
Total (14 ) (66 ) (257 ) (291 )
(239 )
Consumer loans Consumer (29 ) (90 )
(118 ) 116 (49 )
Total
(29 ) (90 ) (118 ) 116 (49 )
Total net chargeoffs $ (67 ) $ 1 $ (568 ) $ 174
$ (152 ) At or for the quarters ended
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands)
Nonperforming Loans Commercial
loans Multi-family $ 275 $ 275 $ 275 $ 402 $ 413 Owner/nonowner
occupied commercial real estate 1,111 1,206 1,218 1,234 1,331 Land
— 9 9 9 9 Construction — — — — — Commercial and industrial
1,475 1,459 1,505 234
190
Total 2,861 2,949 3,007 1,879 1,943
Residential mortgage loans Real estate 6,146 7,045 6,076
6,627 6,701 Construction — — —
— —
Total 6,146 7,045
6,076 6,627 6,701
Consumer loans Consumer 1,783
2,180 2,620 2,332
2,137
Total 1,783 2,180
2,620 2,332 2,137
Total nonperforming loans $ 10,790 $ 12,174 $
11,703 $ 10,838 $ 10,781
Total Nonperforming Loans and Nonperforming Assets Past due
90 days and on nonaccrual status $ 8,395 $ 8,326 $ 8,620 $ 7,634 $
7,706 Past due 90 days and still accruing — —
— 8 2 Past due 90
days 8,395 8,326 8,620 7,642 7,708 Past due less than 90 days and
on nonaccrual 2,395 3,848 3,083
3,196 3,073
Total
nonperforming loans 10,790 12,174 11,703 10,838 10,781 Other
real estate owned 802 1,030 1,047 1,133 1,197 Other classified
assets 4,050 4,050 4,050 6,384 6,384 Repossessed assets 75
263 206 10
—
Total nonperforming assets $ 15,717 $ 17,517
$ 17,006 $ 18,365 $ 18,362
UNITED COMMUNITY FINANCIAL CORP. NON-GAAP DISCLOSURE
RECONCILIATION (Unaudited)
Reconciliation of Average Shareholders' Equity to
Average Tangible Equity: At or for the quarters ended
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands, except per share data) Average shareholders
equity $ 303,733 $ 299,284 $ 295,506 $ 295,506 $ 282,335 Average
intangible assets 24,063 24,175
23,563 23,642 23,699 Average
tangible equity $ 279,670 $ 275,109 $ 271,943
$ 271,864 $ 258,636 Net income $ 9,541 $ 8,556
$ 4,502 $ 7,556 $ 8,189 Return on tangible equity 13.65 %
12.44 % 6.62 % 11.12 % 12.66 %
Reconciliation of Fully
Taxable Equivalent Net Interest Income to Net Interest Income:
For the quarters ended
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands) Interest income $ 26,661 $ 26,050 $
24,849 $ 24,048 $ 23,553 Fully taxable equivalent adjustment
90 97 221 224
229 Fully taxable equivalent interest income 26,751
26,147 25,070 24,272 23,782 Interest expense 5,366
4,517 3,969 3,545
3,059 Fully taxable net interest income $ 21,385 $
21,630 $ 21,101 $ 20,727 $ 20,723
Reconciliation of Coverage Ratio to Coverage Ratio with
Fair Value Adjustments Included with Allowance for Loan Losses:
June 30,2018
(Dollars in thousands) Allowance for loan losses $ 21,405 Fair
value adjustments 2,961 24,366
Loans, net $ 2,099,781 Add: Allowance for loan losses and fair
value adjustment 24,366 Gross loans $ 2,124,147
Coverage ratio with the Fair Value
adjustments included in Allowance for loan losses
1.15 %
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
June 30,2018
March 31,2018
December 31,2017
September 30,2017
June 30,2017
(Dollars in thousands, except per share data) Total shareholders'
equity $ 301,484 $ 296,195 $ 294,265 $ 291,851 $ 285,480 Goodwill
20,221 20,221 20,221 19,488 19,467 Customer list intangible 1,980
2,030 2,060 2,090 2,060 Core deposit intangible 1,769 1,851 1,934
2,017 2,099 Total common shares outstanding 49,904,074 49,882,491
49,800,126 49,758,487 49,715,021 Tangible book value, as reported $
5.56 $ 5.45 $ 5.41 $ 5.38 $ 5.27
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180717005993/en/
Media Contact:Home Savings BankKathy Bushway,
330-742-0638Senior Vice President,
Marketingkbushway@homesavings.comorInvestor Contact:United
Community Financial Corp.Gary M. Small, 330-742-0472President and
Chief Executive Officer
United Community Financial (NASDAQ:UCFC)
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