Toggle SGML Header (+)


Section 1: 8-K (FORM 8-K)

Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 16, 2019

UNITED COMMUNITY FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

 

                    OHIO                               000-024399                        34-1856319            
(State or other jurisdiction of incorporation)    (Commission File No.)    (IRS Employer I.D. No.)

        275 West Federal Street, Youngstown, Ohio 44503-1203        

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (330) 742-0500

                                          Not Applicable                                          

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Section 2 – Financial Information

 

Item  2.02    Results of Operation and Financial Condition
            (a)   

On April 16, 2019, United Community Financial Corp. issued a press release announcing its results of operations for the first quarter of 2019. A copy of the press release is attached as Exhibit 99.

Section 9 – Financial Statements and Exhibits

 

Item  9.01    Financial Statements and Exhibits.
              (d)    Exhibits.

 

Exhibit
Number

  

Description

    

99

   Press Release of United Community dated April 16, 2019.   

Included herewith.

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  

UNITED COMMUNITY FINANCIAL CORP.

     

By:        

  

 /s/ Jude J. Nohra                                        

        

 Jude J. Nohra

        

 General Counsel & Secretary

Date: April 16, 2019

 

3

(Back To Top)

Section 2: EX-99 (EX-99)

EX-99

EXHIBIT 99

 

LOGO

275 West Federal Street

Youngstown, Ohio 44503-1203

FOR IMMEDIATE RELEASE

 

Media Contact:       Investor Contact:   
Kathy Bushway       Gary M. Small   
Senior Vice President, Marketing       President and Chief Executive Officer   
Home Savings       United Community Financial Corp.   
(330) 742-0638       (330) 742-0472   
kbushway@homesavings.com         

UCFC ANNOUNCES STRONG EARNINGS FOR THE FIRST QUARTER AND A

DIVIDEND OF $0.07 PER COMMON SHARE

YOUNGSTOWN, Ohio (April 16, 2019) – United Community Financial Corp. (Company) (NASDAQ: UCFC), parent company of Home Savings Bank (Home Savings), today announced net income of $8.7 million, or $0.176 per diluted common share (“EPS”) for the three months ended March 31, 2019, compared to $0.171 EPS, or $8.6 million for the three months ended March 31, 2018.

First quarter 2019 highlights:

 

   

ROA of 1.22%, ROE of 10.99% and ROTE of 11.90%

   

Net loan growth of 7.1%, annualized on a linked quarter basis

   

Average customer deposit growth of 6.1% comparing first quarter 2019 to first quarter 2018

   

Net interest margin of 3.38%

   

Noninterest income growth of 4.4% comparing first quarter 2019 to first quarter 2018, 13.1% when adjusted for a change in mortgage servicing rights valuation

   

Repurchase of 328,000 shares, or approximately 0.7% of outstanding shares

Gary M. Small, President and Chief Executive Officer of the Company commented, “We are pleased with Q1 performance as our loan and deposit growth came in right on target, margin met expectations during an unpredictable interest rate environment, and our residential mortgage, wealth and insurance business units experienced strong revenue growth.”

Small further commented, “The year began a bit softer than normal as clients seemed to strike a cautious stance while evaluating the impact of Q4 market uncertainty. Activity levels picked up over the course of the quarter, the residential mortgage business began to benefit from the lower rate environment, and we enter Q2 in a good position.”

 

1


Solid Loan Growth

Total net loans grew $38.7 million on a linked quarter basis, or 7.1% annualized, in the first quarter of 2019. Commercial loan growth was $31.7 million for the quarter ended March 31, 2019, an annualized growth rate of 13.5% on a linked quarter basis. Residential mortgage loans increased $9.0 million when comparing the linked quarters, or 3.7% annualized.

Strong Business Deposit and Noninterest Bearing Deposit Growth

Average customer deposit growth was 6.1% when comparing the first quarter of 2019 to the first quarter of 2018. Average noninterest bearing deposits grew $31.3 million, or 8.4%, from March of 2018 to March of 2019 while average business deposits grew $58.8 million, or 24.0%, and average public funds grew $29.2 million, or 27.5%, over this same time frame.

Net Interest Income and Margin

Net interest income totaled $22.3 million on a fully taxable equivalent (FTE) basis for the quarter ended March 31, 2019, compared to $21.6 million for the quarter ended March 31, 2018, an increase of 3.0%. First quarter 2018 net interest income includes a onetime fee recognition from the early payoff of a single loan and a higher level of purchase accounting accretion income versus 2019. Adjusting for these two items, the increase in first quarter net interest income would be 7.0%.

The net interest margin on an FTE basis was 3.38% for the first quarter of 2019 compared to 3.47% for the similar period last year. The net interest margin during the first quarter of 2018 was positively impacted by the payoff of a single loan that added approximately 8 basis points to the reported margin. Also included in the margin for both years are purchase accounting yield adjustments aggregating 6 and 9 basis points respectively for 2019 and 2018. Absent of both the early payoff and the purchase accounting adjustments the net interest margin for the first quarter of 2019 would be 3.32% compared to 3.30% for the same time period last year.

Non-Interest Income

Non-interest income increased to $6.1 million in the first quarter of 2019, compared to $5.8 million in the first quarter of 2018, an increase of 4.4%. Excluding the unfavorable mortgage servicing rights valuation adjustment in the first quarter of 2019, non-interest income would have increased by 13.1%. Mortgage banking income was up 23.4%. Insurance agency income was up 21.5% along with wealth fees being up 12.6%. These increases helped offset the impact of the negative mortgage servicing rights valuation adjustment.

Non-Interest Expense

Non-interest expense was $17.7 million for the quarter ended March 31, 2019 compared to $16.6 million for the quarter ended March 31, 2018, or a 6.5% increase. Non-interest expense for the first quarter of 2019 also included charges of $650,000 for organizational restructuring of the retail and wealth business units. Absent of the organizational restructure charges the increase in non-interest expense is 2.6% for the same period. The Company’s efficiency ratio was 62.29%.

 

2


Credit Quality

Credit quality metrics continue to show very favorably during the first quarter of 2019. The ratio of nonperforming loans to net loans was 0.32% at March 31, 2019, which is down from 0.59% reported at March 31, 2018. Total nonperforming commercial loans remain low at $2.0 million as of March 31, 2019 or 0.20% of total commercial loans. Total nonperforming assets to assets was 0.34% at March 31, 2019, while total delinquent loans to net loans was 0.41% for the same period. These ratios were 0.65% and 0.81%, respectively, at March 31, 2018.

During the quarter ended March 31, 2019, the Company recognized total net charge offs of $58,000 or one basis point as a percentage of average loans.

The Company’s provision for loan losses totaled $61,000 for the first quarter of 2019, which was down from the $407,000 reported in the first quarter of 2018. As of March 31, 2019, the Company’s allowance for loan losses to total loans was 0.91%, versus 1.04% at March 31, 2018. Also at March 31, 2019 the allowance for loan loss as a percent of nonperforming loans totaled 287.7%.

Loans acquired through acquisition during the first quarter of 2017 were recorded at fair value. When combining the remaining fair value adjustment of $1.7 million and the Company’s allowance, the Company’s allowance as a percentage total loans increases to .99%.

Capital Management and Tangible Book Value per Share

During the first quarter of 2019, the Company repurchased 328,000 shares. The Company had remaining 1,545,000 shares authorized for repurchase as of March 31, 2019. Tangible book value per common share at March 31, 2019 was $5.95 compared to $5.45 at March 31, 2018.

Dividend Declaration

On April 16, 2019, the Board of Directors declared a quarterly cash dividend of $0.07 per common share. The dividend is payable May 10, 2019 to shareholders of record at the close of business April 29, 2019.

Conference Call

United Community Financial Corp. will host an earnings conference call on Wednesday, April 17, 2019, at 10:00 a.m. ET., to provide an overview of the Company’s first quarter 2019 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 1st Quarter 2019 Conference Call on the corporate profile page to join the webcast.

United Community Financial Corp.

Home Savings is a wholly owned subsidiary of the Company, offering a full line of commercial, wealth management and consumer banking products and services with 33 retail banking offices (32 in Ohio and one in Pennsylvania). Home Savings also has residential mortgage loan centers servicing Ohio, West Virginia, western Pennsylvania, northern Kentucky, and eastern Indiana. Additional information on the Company, Home Savings and James & Sons Insurance is available at 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

 

3


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.

 

4


UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

 

     March 31,   March 31,    
     2019   2018   F/(U)
     (Dollars in thousands)

Assets:

      

Cash and deposits with banks

     $ 41,920       $ 27,683       51.4

Federal funds sold

     35,277       19,058       85.1
  

 

 

 

 

 

 

 

 

Total cash and cash equivalents

     77,197       46,741       65.2

Securities:

      

Trading, at fair value

     666             0.0

Available for sale, at fair value

     237,421       257,908       -7.9

Held to maturity (fair value of $74,748 and $78,033, respectively)

     75,760       80,685       -6.1

Loans held for sale, at fair value

     77,676       79,292       -2.0

Gross loans

     2,235,995       2,083,053       7.3

Allowance for loan losses

     (20,446     (21,610     -5.4
  

 

 

 

 

 

 

 

 

Net loans

     2,215,549       2,061,443       7.5

Federal Home Loan Bank stock, at cost

     16,702       19,324       -13.6

Premises and equipment, net

     22,012       21,795       1.0

Accrued interest receivable

     8,873       7,615       16.5

Real estate owned and other repossessed assets

     1,180       1,293       -8.7

Goodwill

     20,221       20,221       0.0

Core deposit intangible

     1,521       1,851       -17.8

Customer list intangible

     2,169       2,030       6.8

Cash surrender value of life insurance

     64,606       62,922       2.7

Other assets

     30,488       27,587       10.5
  

 

 

 

 

 

 

 

 

Total assets

     $   2,852,041       $   2,690,707       6.0
  

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

      

Liabilities:

      

Deposits:

      

Interest bearing

     $ 1,623,653       $ 1,528,262       6.2

Noninterest bearing

     404,644       376,904       7.4
  

 

 

 

 

 

 

 

 

Customer deposits

     2,028,297       1,905,166       6.5

Brokered deposits

     261,506       161,812       61.6
  

 

 

 

 

 

 

 

 

Total deposits

     2,289,803       2,066,978       10.8

Borrowed funds:

      

Federal Home Loan Bank advances

      

Long-term advances

           48,731       -100.0

Short-term advances

     204,000       245,000       -16.7
  

 

 

 

 

 

 

 

 

Total Federal Home Loan Bank advances

     204,000       293,731       -30.5

Repurchase agreements and other

     254       233       9.0
  

 

 

 

 

 

 

 

 

Total borrowed funds

     204,254       293,964       -30.5

Advance payments by borrowers for taxes and insurance

     19,542       18,444       6.0

Accrued interest payable

     1,492       1,363       9.5

Accrued expenses and other liabilities

     22,241       13,763       61.6
  

 

 

 

 

 

 

 

 

Total liabilities

     2,537,332       2,394,512       6.0
  

 

 

 

 

 

 

 

 

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 48,852,688 and 49,882,491 shares, respectively, outstanding

     177,410       177,297       0.1

Retained earnings

     197,286       173,419       13.8

Accumulated other comprehensive loss

     (18,416     (22,675     -18.8

Treasury stock, at cost, 5,286,222 and 4,256,419 shares, respectively

     (41,571     (31,846     30.5
  

 

 

 

 

 

 

 

 

Total shareholders’ equity

     314,709       296,195       6.3
  

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

     $ 2,852,041       $ 2,690,707       6.0
  

 

 

 

 

 

 

 

 

 

5


UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     For the Three Months Ended
     March 31,   December 31,            March 31,          
     2019   2018   Variance   F/(U)    2018   Variance   F/(U)  
     (Dollars in thousands, except per share data)

Interest income

               

Loans

     $ 25,856       $ 26,587       $ (731     -2.7%        $ 22,759       $ 3,097       13.6%  

Loans held for sale

     1,007       1,184       (177     -14.9%        858       149       17.4%  

Securities:

               

Available for sale, nontaxable

     307       334       (27     -8.1%        388       (81     -20.9%  

Available for sale, taxable

     1,263       1,148       115       10.0%        1,215       48       4.0%  

Held to maturity, nontaxable

     75       69       6       8.7%        51       24       47.1%  

Held to maturity, taxable

     379       380       (1     -0.3%        422       (43     -10.2%  

Federal Home Loan Bank stock dividends

     290       290             0.0%        280       10       3.6%  

Other interest earning assets

     224       178       46       25.8%        77       147       190.9%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Total interest income

     29,401       30,170       (769     -2.5%        26,050       3,351       12.9%  

Interest expense

               

Deposits

     6,574       5,866       (708     -12.1%        3,097       (3,477     -112.3%  

Federal Home Loan Bank advances

     641       810       169       20.9%        1,420       779       54.9%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Total interest expense

     7,215       6,676       (539     -8.1%        4,517       (2,698     -59.7%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Net interest income

     22,186       23,494       (1,308     -5.6%        21,533       653       3.0%  

Taxable equivalent adjustment

     84       111       (27     -24.3%        97       (13     -13.4%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

     22,270       23,605       (1,335     -5.7%        21,630       640       3.0%  

Provision for loan losses

     61       178       117       65.7%        407       346       85.0%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses (FTE)

     22,209       23,427       (1,218     -5.2%        21,223       986       4.6%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Non-interest income

               

Insurance agency income

     701       562       139       24.7%        577       124       21.5%  

Brokerage income

     370       305       65       21.3%        272       98       36.0%  

Service fees and other charges:

               

Deposit related fees

     1,341       1,521       (180     -11.8%        1,300       41       3.2%  

Mortgage servicing fees

     873       858       15       1.7%        812       61       7.5%  

Mortgage servicing rights valuation

     (499     (44     (455     1034.1%        9       (508     -5644.4%  

Mortgage servicing rights amortization

     (446     (430     (16     3.7%        (500     54       -10.8%  

Other service fees

     38       36       2       5.6%        38             0.0%  

Net gains (losses):

               

Trading securities

     64       669       (605     -90.4%              64       0.0%  

Securities available for sale

     144       (861     1,005       -116.7%        139       5       3.6%  

Mortgage banking income

     1,676       1,118       558       49.9%        1,358       318       23.4%  

Real estate owned and other repossessed assets charges, net

     (31     (24     (7     29.2%        (78     47       -60.3%  

Debit/credit card fees

     934       1,033       (99     -9.6%        949       (15     -1.6%  

Trust fee income

     465       480       (15     -3.1%        469       (4     -0.9%  

Bank owned life insurance

     385       431       (46     -10.7%        433       (48     -11.1%  

Other income

     58       (69     127       -184.1%        41       17       41.5%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Total non-interest income

     6,073       5,585       488       8.7%        5,819       254       4.4%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Non-interest expense

               

Salaries and employee benefits

     10,575       9,029       (1,546     -17.1%        9,998       (577     -5.8%  

Occupancy

     1,046       1,023       (23     -2.2%        1,100       54       4.9%  

Equipment and data processing

     2,292       2,122       (170     -8.0%        2,154       (138     -6.4%  

Financial institutions tax

     509       464       (45     -9.7%        496       (13     -2.6%  

Advertising

     390       414       24       5.8%        235       (155     -66.0%  

Amortization of intangible assets

     127       128       1       0.8%        113       (14     -12.4%  

FDIC insurance premiums

     331       398       67       16.8%        290       (41     -14.1%  

Other insurance premiums

     76       70       (6     -8.6%        109       33       30.3%  

Professional fees:

               

Legal fees

     60       292       232       79.5%        299       239       79.9%  

Other professional fees

     587       721       134       18.6%        391       (196     -50.1%  

Supervisory fees

     34       34             0.0%        42       8       19.0%  

Real estate owned and other repossessed asset expenses

     39       34       (5     -14.7%        36       (3     -8.3%  

Other expenses

     1,608       2,449                   841       34.3%        1,337       (271     -20.3%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Total non-interest expenses

     17,674       17,178       (496     -2.9%        16,600       (1,074     -6.5%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Income before income taxes

     10,608       11,834       (1,226     -10.4%        10,442       166       1.6%  

Taxable equivalent adjustment

     84       111       27       24.3%        97       13       13.4%  

Income tax expense

     1,868       2,172       304       14.0%        1,789       (79     -4.4%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Net income

     $             8,656       $             9,551       $ (895     -9.4%        $             8,556       $               100       1.2%  
  

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

Earnings per common share:

               

Basic

     $ 0.177       $ 0.192       $ (0.015     -7.8%        $ 0.172       $ 0.005       2.9%  

Diluted

     0.176       0.191       (0.015     -7.9%        0.171       0.005       2.9%  

 

(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.

 

6


UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED AVERAGE BALANCES

(Unaudited)

 

     For the three months ended
     March 31, 2019    December 31, 2018    March 31, 2018
     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)

     $ 2,191,746       $ 25,864        4.75%        $ 2,161,414        $ 26,616        4.93%        $ 2,026,266        $ 22,760        4.49%  

Loans held for sale

     84,932       1,007        4.74%        100,348        1,184        4.68%        80,681        858        4.31%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total loans, net

     2,276,678       26,871        4.75%        2,261,762        27,800        4.91%        2,106,947        23,618        4.49%  

Securities:

                         

Available for sale-taxable

     200,088       1,263        2.52%        196,910        1,148        2.33%        211,332        1,215        2.30%  

Available for sale-nontaxable (2)

     43,468       365        3.36%        48,370        399        3.30%        54,737        472        3.45%  

Held to maturity-taxable

     63,674       379        2.38%        65,605        380        2.32%        72,627        422        2.32%  

Held to maturity-nontaxable (2)

     13,047       93        2.85%        12,215        86        2.82%        9,227        63        2.73%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total securities

     320,277       2,100        2.62%        323,100        2,013        2.49%        347,923        2,172        2.50%  

Federal Home Loan Bank stock

     18,010       290        6.43%        19,144        290        6.06%        19,324        280        5.80%  

Other interest earning assets

     34,986       224        2.59%        34,779        178        2.03%        22,479        77        1.39%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total interest earning assets

     2,649,951       29,485        4.48%        2,638,785        30,281        4.59%        2,496,673        26,147        4.19%  

Non-interest earning assets

     176,913             176,579              176,785        
  

 

 

 

       

 

 

 

        

 

 

 

     

Total assets

     $ 2,826,864             $ 2,815,364              $ 2,673,458        
  

 

 

 

       

 

 

 

        

 

 

 

     

Interest bearing liabilities:

                         

Deposits:

                         

Checking accounts

     $ 650,268       1,440        0.89%        $ 620,306        1,114        0.71%        $ 593,499        687        0.47%  

Savings accounts

     297,410       29        0.04%        303,247        28        0.04%        303,639        27        0.04%  

Certificates of deposit

                         

Customer certificates of deposit

     618,752       2,824        1.83%        619,208        2,652        1.70%        581,858        1,817        1.27%  

Brokered certificates of deposit

     397,137       2,281        2.30%        393,778        2,072        2.09%        165,169        566        1.39%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total certificates of deposit

     1,015,889       5,105        2.01%        1,012,986        4,724        1.85%        747,027        2,383        1.28%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total interest bearing deposits

     1,963,567       6,574        1.34%        1,936,539        5,866        1.20%        1,644,165        3,097        0.76%  

Federal Home Loan Bank advances

                         

Long-term advances

                  0.00%        46,879        357        3.02%        48,603        431        3.60%  

Short-term advances

     103,333       641        2.48%        75,033        453        2.40%        265,322        989        1.51%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total Federal Home Loan Bank advances

     103,333       641        2.48%        121,912        810        2.64%        313,925        1,420        1.83%  

Repurchase agreements and other

     233              0.00%        245               0.00%        213               0.00%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total borrowed funds

     103,566       641        2.48%        122,157        810        2.63%        314,138        1,420        1.83%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total interest bearing liabilities

     $ 2,067,133       7,215        1.40%        $ 2,058,696        6,676        1.29%        $ 1,958,303        4,517        0.94%  
    

 

 

 

        

 

 

 

        

 

 

 

  

Non-interest bearing liabilities

                         

Total noninterest bearing deposits

     400,874             395,649              375,142        

Other noninterest bearing liabilities

     43,851             46,559              40,729        
  

 

 

 

       

 

 

 

        

 

 

 

     

Total noninterest bearing liabilities

     444,725             442,208              415,871        
  

 

 

 

       

 

 

 

        

 

 

 

     

Total liabilities

     $ 2,511,858             $ 2,500,904              $ 2,374,174        

Shareholders’ equity

     315,006             314,464              299,284        
  

 

 

 

       

 

 

 

        

 

 

 

     

Total liabilities and equity

     $ 2,826,864             $ 2,815,368              $ 2,673,458        
  

 

 

 

       

 

 

 

        

 

 

 

     

Net interest income and interest rate spread

       $ 22,270        3.08%           $ 23,605        3.30%           $ 21,630        3.25%  
    

 

 

 

        

 

 

 

        

 

 

 

  

Net interest margin

          3.38%              3.58%              3.47%  

Average interest earning assets to average interest bearing liabilities

          128.19%              128.18%              127.49%  

Interest bearing deposits

                         

Checking accounts

     $ 650,268       $ 1,440        0.89%        $ 620,306        $ 1,114        0.71%        $ 593,499        $ 687        0.47%  

Savings accounts

     297,410       29        0.04%        303,247        28        0.04%        303,639        27        0.04%  

Customer certificates of deposit

     618,752       2,824        1.83%        619,208        2,652        1.70%        581,858        1,817        1.27%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total customer deposits

     1,566,430       4,293        1.10%        1,542,761        3,794        0.98%        1,478,996        2,531        0.68%  

Brokered certificates of deposit

     397,137       2,281        2.30%        393,778        2,072        2.09%        165,169        566        1.39%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total interest bearing deposits

     1,963,567       6,574        1.34%        1,936,539        5,866        1.20%        1,644,165        3,097        0.76%  

Noninterest bearing deposits

     400,874              0.00%        395,649               0.00%        375,142               0.00%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total average deposits and cost of deposits

     $ 2,364,441       $ 6,574        1.11%        $ 2,332,188        $ 5,866        1.01%        $ 2,019,307        $ 3,097        0.61%  

Other interest bearing liabilities

                         

Federal Home Loan Bank advances

                         

Long term advances

     $       $        0.00%        $ 46,879        $ 357        3.02%        $ 48,603        $ 431        3.60%  

Short term advances

     103,333       641        2.48%        75,033        453        2.40%        265,322        989        1.51%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total Federal Home Loan Bank advances

     103,333       641        2.48%        121,912        810        2.64%        313,925        1,420        1.83%  

Repurchase agreements and other

     233              0.00%        245               0.00%        213               0.00%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total borrowed funds

     103,566       641        2.48%        122,157        810        2.63%        314,138        1,420        1.83%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Total average deposits and other interest bearing liabilities and total cost of funds

     $ 2,468,007       $ 7,215        1.17%        $ 2,454,345        $ 6,676        1.09%        $ 2,333,445        $ 4,517        0.79%  
  

 

 

 

 

 

 

 

     

 

 

 

  

 

 

 

     

 

 

 

  

 

 

 

  

Customer deposits interest bearing and noninterest bearing

     $   1,967,304       $     4,293        0.87%        $   1,938,410        $     3,794        0.78%        $   1,854,138        $     2,531        0.55%  

Brokered deposits

     397,137       2,281        2.30%        393,778        2,072        2.09%        165,169        566        1.39%  

Total borrowings

     103,566       641        2.48%        122,157        810        2.63%        314,138        1,420        1.83%  

Cost of funds

     2,468,007       7,215        1.17%        2,454,345        6,676        1.09%        2,333,445        4,517        0.79%  

(1) Nonaccrual loans are included in the average balance at a yield of 0%.

(2) Yields are on a fully taxable equivalent basis.

 

7


UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

 

     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands, except per share data)  

Financial Data

              

Total assets

     $     2,852,041          $     2,811,357          $     2,789,183          $     2,770,558          $     2,690,707    

Total loans, net

     2,215,549          2,176,842          2,148,942          2,099,781          2,061,443    

Total securities

     313,847          319,498          320,806          328,924          338,593    

Total deposits

     2,289,803          2,213,220          2,352,476          2,135,345          2,066,978    

Average interest-bearing deposits

     1,963,567          1,936,539          1,884,617          1,718,639          1,644,165    

Average noninterest-bearing deposits

     400,874          395,649          382,044          376,905          375,142    

Total shareholders’ equity

     314,709          309,334          306,043          301,484          296,195    

Net interest income

     22,186          23,494          21,623          21,295          21,533    

Net interest income (FTE) (1)

     22,270          23,605          21,707          21,385          21,630    

Provision for loan losses

     61          178          251          (138)         407    

Noninterest income

     6,073          5,585          6,146          5,852          5,819    

Noninterest expense

     17,674          17,178          15,772          15,530          16,600    

Income tax expense

     1,868          2,172          2,217          2,214          1,789    

Net income

     8,656          9,551          9,529          9,541          8,556    

Share Data

              

Basic earnings per common share

     $ 0.177          $ 0.192          $ 0.191          $ 0.191          $ 0.172    

Diluted earnings per common share

     0.176          0.191          0.190          0.190          0.171    

Book value per common share

     6.44          6.30          6.13          6.04          5.94    

Tangible book value per common share

     5.95          5.81          5.65          5.56          5.45    

Market value per common share

     9.35          8.85          9.67          10.99          9.86    

Common shares outstanding at end of period

     48,853          49,129          49,923          49,904          49,882    

Weighted average shares outstanding--basic

     48,854          49,445          49,683          49,694          49,611    

Weighted average shares outstanding--diluted

     49,113          49,695          49,947          49,944          49,885    

Key Ratios

              

Return on average assets (2)

     1.22%        1.36%        1.37%        1.40%        1.28%  

Return on average equity (3)

     10.99%        12.15%        12.25%        12.56%        11.44%  

Return on tangible equity (4)

     11.90%        13.16%        13.28%        13.65%        12.44%  

Net interest margin

     3.38%        3.58%        3.33%        3.36%        3.47%  

Efficiency ratio

     62.29%        54.79%        57.30%        57.75%        60.20%  

Nonperforming loans to net loans, end of period

     0.32%        0.30%        0.42%        0.51%        0.59%  

Nonperforming assets to total assets, end of period

     0.34%        0.27%        0.36%        0.57%        0.65%  

Allowance for loan loss as a percent of loans, end of period

     0.91%        0.93%        0.98%        1.01%        1.04%  

Delinquent loans to total net loans, end of period

     0.41%        0.50%        0.69%        0.67%        0.81%  

 

 

 

(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

 

8


UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

 

     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands)  

Loan Portfolio Composition

              

Commercial loans

              

Multi-family

     $ 163,243          $ 134,143          $ 139,938          $ 141,004          $ 137,836    

Owner/nonowner occupied commercial real estate

     412,550          409,979          408,938          396,624          384,533    

Land

     17,090          16,831          16,129          16,887          15,452    

Construction

     135,048          141,685          132,961          127,691          134,181    

Commercial and industrial

     246,740          240,293          233,801          218,611          201,132    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     974,671          942,931          931,767          900,817          873,134    

Residential mortgage loans

              

Real estate

     934,586          927,255          909,626          888,583          882,873    

Construction

     45,102          43,435          39,396          40,623          42,453    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     979,688          970,690          949,022          929,206          925,326    

Consumer loans

              

Consumer

     274,998          277,041          283,108          284,909          279,110    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     274,998          277,041          283,108          284,909          279,110    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

     2,229,357          2,190,662          2,163,897          2,114,932          2,077,570    

Less:

              

Allowance for loan losses

     20,446          20,443          21,332          21,405          21,610    

Deferred loan costs, net

     (6,638)         (6,623)         (6,377)         (6,254)         (5,483)   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     13,808          13,820          14,955          15,151          16,127    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans, net

     2,215,549          2,176,842          2,148,942          2,099,781          2,061,443    

Loans held for sale, net

     77,676          91,472          95,235          107,701          79,292    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

     $ 2,293,225          $ 2,268,314          $ 2,244,177          $ 2,207,482          $ 2,140,735    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands)  

Deposit Portfolio Composition

              

Checking accounts

              

Interest bearing checking accounts

     $ 146,244          $ 146,977          $ 140,722          $ 138,812          $ 140,740    

Non-interest bearing checking accounts

     404,644          394,208          383,535          383,082          376,904    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total checking accounts

     550,888          541,185          524,257          521,894          517,644    

Savings accounts

     297,186          298,087          300,007          306,283          308,025    

Money market accounts

     550,049          466,167          489,668          502,560          483,840    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total non-time deposits

     1,398,123          1,305,439          1,313,932          1,330,737          1,309,509    

Certificates of deposit

     630,174          616,826          622,807          615,388          595,657    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total customer deposits

     2,028,297          1,922,265          1,936,739          1,946,125          1,905,166    

Brokered deposits

     261,506          290,955          415,737          189,220          161,812    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total certificates of deposit

     891,680          907,781          1,038,544          804,608          757,469    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

     $     2,289,803          $     2,213,220          $     2,352,476          $     2,135,345          $     2,066,978    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

9


UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

 

     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands)  

Allowance For Loan Losses

              

Beginning balance

     $ 20,443          $ 21,332          $ 21,405          $ 21,610          $ 21,202    

Provision

     61          178          251          (138)         407    

Net recoveries (chargeoffs)

     (58)         (1,067)         (324)         (67)         1    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ending balance

     $             20,446          $             20,443          $             21,332          $             21,405          $             21,610    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands)  

Net Recoveries (Charge-offs)

              

Commercial loans

              

Multi-family

     $ 113          $ (99)         $ 4          $ 9          $ 6    

Owner/nonowner occupied commercial real estate

     28          38          12          29          40    

Land

     —          —          150          —          —    

Construction

     1          —          11          10          7    

Commercial and industrial

     (84)         (765)         (275)         (72)         104    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     58          (826)         (98)         (24)         157    

Residential mortgage loans

              

Real estate

     78          (131)         (141)         (14)         (66)   

Construction

     —          —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     78          (131)         (141)         (14)         (66)   

Consumer loans

              

Consumer

     (194)         (110)         (85)         (29)         (90)   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     (194)         (110)         (85)         (29)         (90)   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total net chargeoffs

     $ (58)         $ (1,067)         $ (324)         $ (67)         $ 1    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands)  

Nonperforming Loans

              

Commercial loans

              

Multi-family

     $ —          $ 171          $ 275          $ 275          $ 275    

Owner/nonowner occupied commercial real estate

     1,565          13          1,101          1,111          1,206    

Land

     —          —          —          —          9    

Construction

     —          —          —          —          —    

Commercial and industrial

     456          531          1,489          1,475          1,459    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,021          715          2,865          2,861          2,949    

Residential mortgage loans

              

Real estate

     3,883          4,170          4,426          6,146          7,045    

Construction

     —          —          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     3,883          4,170          4,426          6,146          7,045    

Consumer loans

              

Consumer

     1,203          1,654          1,770          1,783          2,180    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,203          1,654          1,770          1,783          2,180    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming loans

     $ 7,107          $ 6,539          $ 9,061          $ 10,790          $ 12,174    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Nonperforming Loans and Nonperforming Assets

              

Past due 90 days and on nonaccrual status

     $ 4,351          $ 5,732          $ 8,200          $ 8,395          $ 8,326    

Past due 90 days and still accruing

     —          18          —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Past due 90 days

     4,351          5,750          8,200          8,395          8,326    

Past due less than 90 days and on nonaccrual

     2,756          789          861          2,395          3,848    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming loans

     7,107          6,539          9,061          10,790          12,174    

Other real estate owned

     1,143          1,049          907          802          1,030    

Other classified assets

     1,479          —          —          4,050          4,050    

Repossessed assets

     37          39          —          75          263    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total nonperforming assets

     $ 9,766          $ 7,627          $ 9,968          $ 15,717          $ 17,517    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

10


UNITED COMMUNITY FINANCIAL CORP.

NON-GAAP DISCLOSURE RECONCILIATION

(Unaudited)

Reconciliation of Average Shareholders’ Equity to Average Tangible Equity:

 

     At or for the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands, except per share data)  

Average shareholders equity

     $             315,006          $             314,464          $             311,058          $             303,733          $             299,284    

Average intangible assets

     23,994          24,123          24,144          24,063          24,175    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average tangible equity

     $ 291,012          $ 290,341          $ 286,914          $ 279,670          $ 275,109    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Net income

     $ 8,656          $ 9,551          $ 9,529          $ 9,541          $ 8,556    

 

Return on tangible equity

     11.90%          13.16%         13.28%         13.65%         12.44%   

 

Reconciliation of Fully Taxable Equivalent Net Interest Income to Net Interest Income:

 

     For the quarters ended  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands)  

Interest income

     $ 29,401          $ 30,170          $ 27,690          $ 26,661          $ 26,050    

Fully taxable equivalent adjustment

     84          111          84          90          97    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fully taxable equivalent interest income

     29,485          30,281          27,774          26,751          26,147    

Interest expense

     7,215          6,676          6,067          5,366          4,517    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Fully taxable net interest income

     $                 22,270          $                 23,605          $                 21,707          $                21,385          $                21,630    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Reconciliation of Coverage Ratio to Coverage Ratio with Fair Value Adjustments Included with Allowance for Loan Losses:

     March 31,
2019
 
     (Dollars in
thousands)
 

Allowance for loan losses

     $ 20,446    

Fair value adjustments

     1,738    
  

 

 

 
     22,184    
  

 

 

 

Loans, net

     $         2,215,548    

Add: Allowance for loan losses and fair value adjustment

     22,184    
  

 

 

 

Gross loans

     $ 2,237,732    
  

 

 

 

Coverage ratio with the Fair Value adjustments included in Allowance for loan losses

     0.99%  

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  
     March 31,
2019
     December 31,
2018
     September 30,
2018
     June 30,
2018
     March 31,
2018
 
     (Dollars in thousands, except per share data)  

Total shareholders’ equity

     $ 314,709          $ 309,334          $ 306,043          $ 301,484          $ 296,195    

Goodwill

     20,221          20,221          20,221          20,221          20,221    

Customer list intangible

     2,169          2,214          2,259          1,980          2,030    

Core deposit intangible

     1,521          1,603          1,686          1,769          1,851    

Total common shares outstanding

         48,852,688              49,128,875              49,922,514              49,904,074              49,882,491    

Tangible book value, as reported

     $ 5.95          $ 5.81          $ 5.65          $ 5.56          $ 5.45    

 

Reconciliation of Net Interest Margin, Non-Interest Income and Non-Interest Expense:

 

     At the quarters ended  
     March 31, 2019      March 31, 2018  

Net interest income (FTE)

     $ 22,270          $ 21,630    

less: impact of loan payoff

     -          (588)  

less: purchase accounting

     (360)        (545)  
  

 

 

    

 

 

 

Ajdusted net interest income

     21,910          20,497    

Average earning assets

           2,649,951                2,496,673    

Net interest margin exc. loan payoff and purch. accounting

     3.32%        3.30%  

Non-interest income

     $ 6,073          $ 5,819    

less: mortgage servicing valuation adjustment

     499          (9)  
  

 

 

    

 

 

 

Non-interest income, adjusted

     6,572          5,810    

Non-interest income % increase

     13.1%     

Non-interest expense

     $ 17,674          $ 16,600    

less: organizational restructure charge

     (650)        -    
  

 

 

    

 

 

 

Non-interest expense, adjusted

     17,024          16,600    

Non-interest expense % increase

     2.6%     

 

11

(Back To Top)