-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IWoHMe9srv2sTZCB6O8ASGapISt8CcP+sv4td2pygJYwPjV3Am1GTthHSU2rZzAO kVTj7/0hJDK/aneCeTVoOg== /in/edgar/work/0000950152-00-007334/0000950152-00-007334.txt : 20001019 0000950152-00-007334.hdr.sgml : 20001019 ACCESSION NUMBER: 0000950152-00-007334 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001018 ITEM INFORMATION: FILED AS OF DATE: 20001018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED COMMUNITY FINANCIAL CORP CENTRAL INDEX KEY: 0000707886 STANDARD INDUSTRIAL CLASSIFICATION: [6036 ] IRS NUMBER: 341856319 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-24399 FILM NUMBER: 742153 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 l84409ae8-k.txt UNITED COMMUNITY FINANCIAL CORP. 8-K 1 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: October 18, 2000 United Community Financial Corp. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Ohio 0-24399 34-1856319 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification Number) 275 Federal Plaza West 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 changes since last report.) 2 UNITED COMMUNITY FINANCIAL CORP. 275 Federal Plaza West Youngstown, Ohio 44503-1203 FOR IMMEDIATE RELEASE Patrick A. Kelly Chief Financial Officer (330) 742-0500, Ext. 592 UNITED COMMUNITY FINANCIAL CORP. ANNOUNCES EARNINGS FOR THIRD QUARTER 2000 YOUNGSTOWN, Ohio (October 18, 2000) - United Community Financial Corp. (Nasdaq: UCFC) today announced its financial results for the third quarter of fiscal 2000. United Community is the holding company of The Home Savings and Loan Co. and Butler Wick Corp. For the three month period ended September 30, 2000, United Community reported net income of $3.1 million, or $0.09 per diluted share, compared with a net loss of $1.9 million, or $(0.06) per diluted share, for the same three month period in the prior year. United Community's net interest income declined $3.1 million in the third quarter of 2000 compared to the same period last year, primarily due to interest expense on other borrowed funds in conjunction with a special $6 per share distribution declared in September 1999. Noninterest expense declined by $9.8 million, due largely to a decrease in salaries and employee benefits and a gain on the curtailment of postretirement benefits, which were partially offset by a loss on the termination of Home Savings' pension plan. Net income for the nine months ended September 30, 2000 was $9.2 million, or $0.27 per diluted share, compared to $8.5 million, or $0.25 per diluted share, for the nine months ended September 30, 1999. Net interest income decreased $8.2 million, or 18.7%, resulting primarily from an increase in interest expense on other borrowed funds of $5.5 million, primarily in conjunction with the special distribution. Also contributing to the decrease in net interest income was an increase in interest expense on deposits of $3.1 million, due to an increase in deposits and an increase in rates paid on deposits over this time period. Noninterest expense through the first nine months of 2000 decreased $6.3 million, primarily attributable to a decrease in salaries and employee benefits due largely to expense recognized in 1999 for the special capital distribution related to the United Community Recognition and Retention Plan. The gain on postretirement benefits curtailment also contributed to the decrease in noninterest expense. These decreases were partially offset by the loss on pension termination and an increase in franchise tax expense. 3 Noninterest income increased $2.4 million, primarily due to a $1.6 million increase in commissions earned at Butler Wick and a $622,000 increase in service fees and other charges. United Community's annualized return on average assets and return on average equity were 0.98% and 4.71%, respectively, for the first nine months of the year. The annualized return on average assets and return on average equity were 0.87% and 2.37%, respectively, for the nine months ended September 30, 1999. Total shareholders' equity increased $5.7 million, or 2.2%, to $262.6 million at September 30, 2000 from $256.9 million at December 31, 1999. The increase was primarily due to earnings for the nine months, and was partially offset by quarterly dividend payments. Book value as of September 30, 2000 was $7.69 per share. Total assets decreased $27.3 million, or 2.1%, from December 31, 1999 to September 30, 2000, primarily as a result of a decline in cash and cash equivalents of $71.4 million, or 64.1%, and a reduction in securities of $85.6 million, or 20.3%. United Community used these assets to reduce its other borrowed funds by $50.9 million and to fund increases in net loans of $112.8 million and margin accounts of $13.8 million. Net loans increased $112.8 million, or 15.6%, from December 31, 1999 to September 30, 2000 due to an increase of $51.9 million in mortgage loans, an increase of $48.1 million in commercial loans and a $12.8 million increase in consumer loans. These increases were due to a continual effort to increase loans in both United Community's current market and new markets such as Canton, Stow and Cleveland. Deposits increased $20.3 million, or 2.4%, from December 31, 1999 to September 30, 2000, primarily due to a $31.6 million increase in certificates of deposit and a $4.6 million increase in checking accounts, which were offset by a $16.2 million decrease in savings accounts. The increases in certificates of deposits and checking accounts were primarily due to competitive interest rates. "We are satisfied with the results from the quarter, as well as with United Community's progress in implementing its strategic plan," said Douglas M. McKay, chairman and chief executive officer of United Community. "We have made banking more convenient for our customers by introducing online banking and opening a new bank branch in Howland, Ohio this quarter and telebanking services earlier in the year. These new innovations will help us meet the needs of consumers." McKay also pointed out several other developments in implementing its strategic plan to increase its loan portfolio. Loan production offices were opened in Canton and Stow during the third quarter and a third loan production office is scheduled to open in Cleveland in the fourth quarter. The new loan production offices, along with increased loan production in the Youngstown market, have allowed United Community to increase its loan portfolio by $113.0 million in the current year. Home Savings will also be expanding by opening new branches at Youngstown State University and the Lincoln Knolls Plaza in Youngstown, Ohio in the near future. 4 Home Savings and Butler Wick are wholly owned subsidiaries of United Community Financial Corp. Home Savings has 15 full service offices located throughout Mahoning, Columbiana and Trumbull counties in Northeastern Ohio. Butler Wick has 10 full service offices located throughout Northeastern Ohio and Western Pennsylvania. Additional information on United Community, Home Savings and Butler Wick may be found on United Community's web site: www.ucfcorp.com. ### This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding continued implementation of United Community's strategic plan are forward-looking in nature. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Such risks include, among other factors, the acceptance of new products in the marketplace and the success of finding additional opportunities for product and geographic expansion. For a more complete list of risk factors, read United Community's Form 10K filed with the Securities and Exchange Commission. 5 UNITED COMMUNITY FINANCIAL CORP.
As of As of September 30, 2000 December 31,1999 ------------------ ---------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 40,005 $ 111,445 Mortgage-backed securities 216,944 251,638 Investment securities 119,698 170,652 Federal Home Loan Bank stock 13,538 12,825 Net loans receivable: Loans held for investment 837,965 725,632 Loans held for sale 4,363 3,860 Allowance for loan losses (6,461) (6,405) Real estate owned 307 158 Other assets 73,887 57,768 ----------- ----------- Total assets $ 1,300,246 $ 1,327,573 =========== =========== LIABILITIES Deposits $ 854,390 $ 834,087 Other borrowed funds 162,639 213,578 Other liabilities 20,652 23,040 ----------- ----------- Total liabilities 1,037,681 1,070,705 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at September 30, 2000 -- -- Common stock-no par value; 499,000,000 shares authorized; 37,802,873 shares issued and outstanding at September 30, 2000 136,903 136,509 Retained earnings 155,091 153,553 Other comprehensive loss (1,698) (3,003) Unearned compensation (27,731) (30,191) ----------- ----------- Total shareholders' equity 262,565 256,868 ----------- ----------- Total liabilities and shareholders' equity $ 1,300,246 $ 1,327,573 =========== =========== Book value per share $ 7.69 $ 7.46 Dividends paid per share $ 0.075 $ 0.075
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Three Months Ended Three Months Ended Three Months Ended September 30, June 30, September 30, 2000 2000 1999 ------------------ ------------------ ------------------ (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 23,236 $ 22,420 $ 22,699 Interest expense 11,443 10,371 7,850 -------- -------- -------- Net interest income 11,793 12,049 14,849 Provision for loan losses 150 -- -- Noninterest income: Commissions 3,910 4,238 3,563 Service fees and other charges 1,404 1,385 1,085 Underwriting and investment banking 113 192 40 Net gains (losses) Securities 1 (158) 21 Other 8 (4) (2) Other income 278 204 155 -------- -------- -------- Total noninterest income 5,714 5,857 4,862 Noninterest expense Salaries and employee benefits 9,483 8,470 18,110 Gain from curtailment of postretirement benefits (2,928) -- -- Loss from settlement of pension 1,008 -- -- Occupancy 552 532 500 Equipment and data processing 1,477 1,446 1,234 Acquisition expense -- -- 431 Other noninterest expense 3,148 2,779 2,294 -------- -------- -------- Total noninterest expense 12,740 13,227 22,569 Income before taxes 4,617 4,679 (2,858) Income taxes 1,528 1,709 (916) -------- -------- -------- Net income $ 3,089 $ 2,970 $ (1,942) ======== ======== ======== Basic earnings per share $ 0.09 $ 0.09 $ (0.06) Diluted earnings per share $ 0.09 $ 0.09 $ (0.06)
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Nine Months Ended Nine Months Ended September 30, September 30, 2000 1999 ----------------- ----------------- (In thousands, except per share data) SELECTED EARNINGS DATA: Interest income $ 67,535 $ 67,136 Interest expense 31,897 23,316 -------- -------- Net interest income 35,638 43,820 Provision for loan losses 150 100 Noninterest income: Commissions 13,532 11,891 Service fees and other charges 4,017 3,395 Underwriting and investment banking 327 396 Net gains (losses) Securities 224 181 Other 5 (11) Other income 694 520 -------- -------- Total noninterest income 18,799 16,372 Noninterest expense Salaries and employee benefits 27,554 33,803 Gain on postretirement curtailment (2,928) -- Loss on pension termination 1,008 -- Occupancy 1,540 1,473 Equipment and data processing 4,222 3,792 Acquisition expense -- 431 Other noninterest expense 8,985 7,206 -------- -------- Total noninterest expense 40,381 46,705 Income before taxes 13,906 13,387 Income taxes 4,745 4,902 -------- -------- Net income $ 9,161 $ 8,485 ======== ======== Basic earnings per share $ 0.27 $ 0.25 Diluted earnings per share $ 0.27 $ 0.25
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Three Months Ended Three Months Ended Three Months Ended September 30, June 30, March 31, 2000 2000 2000 ------------------ ------------------ ------------------ (Dollars in thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED): Net loans held for investment (including allowance for loan losses $ 800,785 $ 746,430 $ 724,776 of $6,461, $6,324 and $6,390, respectively) Net loans held for sale 3,908 4,142 3,979 Mortgage-backed securities 222,108 234,727 246,713 Investment securities 141,482 151,870 162,364 Margin accounts 43,702 42,881 36,295 Other interest-earning assets 20,630 19,107 23,203 Total interest-earning assets 1,232,615 1,199,157 1,197,330 Total assets 1,275,354 1,240,837 1,236,916 Certificates of deposit 471,751 443,474 448,488 Checking, demand and savings accounts 358,298 366,121 365,412 Other interest bearing liabilities 139,447 131,566 127,320 Total interest-bearing deposits 969,496 941,161 941,220 Total noninterest-bearing liabilities 45,401 40,595 37,925 Total liabilities 1,014,897 981,756 979,145 Shareholders' equity 260,457 259,081 257,771 Common shares outstanding for basic EPS calculation 33,252,174 32,903,672 32,923,217 Common shares outstanding for diluted EPS calculation 34,093,040 33,442,391 33,437,697 SUPPLEMENTAL LOAN DATA: Loans originated $ 92,587 $ 93,366 $ 45,642 Loans purchased 3,262 4,281 322 Loan chargeoffs 16 70 28 Recoveries on loans 4 5 12 As of As of As of September 30, 2000 June 30, 2000 March 31, 2000 ------------------ ------------- -------------- (Dollars in thousands) SUPPLEMENTAL DATA: Nonaccrual loans $ 3,409 $ 3,757 $ 3,952 Restructured loans 212 214 216 Other real estate owned 307 302 204 Total nonperforming assets 3,928 4,273 4,372 Loans serviced for others 5,015 5,134 5,207 Number of full time equivalent employees 566 547 578 Mortgage-backed securities available for sale 99,097 102,863 108,670 Mortgage-backed securities held to maturity 117,847 125,115 131,657 Investment securities trading 5,813 5,161 6,590 Investment securities available for sale 113,010 144,102 150,865 Investment securities held to maturity 875 875 1,175 Federal home loan bank stock 13,538 13,287 13,048 Fair value of held to maturity securities 116,930 122,843 129,465 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 159,552 $ 155,816 $ 153,021 Tangible capital ratio 13.50 13.53 13.66 Regulatory core capital 159,552 155,816 153,021 Core capital ratio 13.50 13.53 13.66 Regulatory total capital 165,954 162,078 159,311 Total risk adjusted assets 710,548 679,300 645,164 Total risk adjusted ratio 23.36 23.86 24.69
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