-----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, TW82YKk+XJiCZwmvoxvymUTcMsqik1DjOZgP6klaRHlA9AQsoQQQq6RJz+ZhgDkZ EeAEwNXAWdbOPDmH2IOvVg== 0000950152-01-000415.txt : 20010125 0000950152-01-000415.hdr.sgml : 20010125 ACCESSION NUMBER: 0000950152-01-000415 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010124 ITEM INFORMATION: FILED AS OF DATE: 20010124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED COMMUNITY FINANCIAL CORP CENTRAL INDEX KEY: 0000707886 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [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: 1514358 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 l86075ae8-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: January 24, 2001 ----------------- 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 FOURTH QUARTER 2000 YOUNGSTOWN, Ohio (January 24, 2001) - United Community Financial Corp. (Nasdaq: UCFC) today announced its financial results for the fourth 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 December 31, 2000, United Community reported net income of $2.5 million, or $0.08 per diluted share, compared to net income of $1.9 million, or $0.05 per diluted share, for the same three month period in the prior year. United Community's net interest income increased $12,000 and noninterest expense declined $434,000, which were partially offset by a $421,000 decrease in noninterest income. Net income for the year ended December 31, 2000 was $11.6 million, or $0.35 per diluted share, compared to $10.4 million, or $0.30 per diluted share, for the year ended December 31, 1999. Net interest income decreased $8.2 million, or 14.7%, resulting primarily from an increase in interest expense on deposits of $5.0 million, due to an increase in deposits and an increase in rates paid on deposits over this time period. Also contributing to the decrease in net interest income was an increase in interest expense on other borrowed funds of $4.9 million, primarily in conjunction with the special capital distribution paid in 1999. Noninterest expense for 2000 decreased $6.7 million, primarily attributable to a decrease in salaries and employee benefits due largely to expenses recognized in 1999 for the special capital distribution related to shares in the United Community Recognition and Retention Plan. A gain recognized on the curtailment of postretirement benefits also contributed to the decrease in noninterest expense. These decreases were partially offset due to a loss recognized on the termination of the pension plan and an increase in franchise tax expense. Noninterest income increased $2.0 million, primarily due to a $990,000 increase in commissions earned at Butler Wick and a $963,000 increase in service fees and other charges. 3 United Community's return on average assets and return on average equity were 0.92% and 4.47%, respectively, for 2000. The return on average assets and return on average equity were 0.79% and 2.46%, respectively, for 1999. Total shareholders' equity increased $5.0 million, or 2.0%, to $261.9 million at December 31, 2000 from $256.9 million at December 31, 1999. The increase was primarily due to earnings for the year, and was partially offset by quarterly dividend payments. Book value as of December 31, 2000 was $7.77 per share. Total assets decreased $27.4 million, or 2.1%, from December 31, 1999 to December 31, 2000, primarily as a result of a decline in cash and cash equivalents of $65.5 million, or 58.7%, and a reduction in securities of $117.6 million, or 27.9%. United Community used these assets to reduce its other borrowed funds by $99.3 million and to fund increases in net loans of $153.6 million. Net loans increased $153.6 million, or 21.2%, from December 31, 1999 to December 31, 2000 due to increases of $106.2 million in gross mortgage loans, $35.9 million in gross commercial loans, $31.3 million in gross construction loans and $15.2 million in gross consumer loans. These increases were due to a continual effort to increase loans in both United Community's traditional market and new markets such as Canton, Stow and Cleveland. Deposits increased $66.3 million, or 8.0%, from December 31, 1999 to December 31, 2000, primarily due to a $82.4 million increase in certificates of deposit and a $7.3 million increase in checking accounts, which were partially offset by a $23.4 million decrease in savings accounts. The increases in certificates of deposits and checking accounts were primarily due to Home Savings providing competitive interest rates. In December 2000, the board of directors of United Community entered into a definitive agreement to acquire Industrial Bancorp Inc. (Industrial). Industrial, based in Bellevue, Ohio, is the holding company for Industrial Savings and Loan Association and operates 12 branches throughout north central Ohio. Under the terms of the agreement, United Community has agreed to pay $20.375 per share, or approximately $91.8 million, to Industrial shareholders, a majority of which will be financed through various borrowing structures. The transaction will be accounted for as a purchase and is expected to close before the end of the second quarter of 2001, subject to shareholder approval and regulatory filings. "United Community was able to take several important steps in implementing our strategic plan to grow our company through product and geographic expansion throughout the year," said Douglas M. McKay, chairman and chief executive officer of United Community. "We have made banking more convenient for our customers by introducing telebanking services, online banking and by opening three new banking branches in Howland, Ohio, Youngstown, Ohio and Youngstown State University and five new loan production offices in the Cleveland, Canton, Stow, Medina and Mentor areas earlier in the year." McKay also pointed out that Butler Wick has grown with the opening of a new branch to serve trust clients and by offering expanded services during the year. 4 "The acquisition of Industrial, which is one of Ohio's most profitable thrifts," McKay stated, "will give United Community additional growth opportunities in new markets and will complement the expansion we have achieved in fiscal year 2000." McKay pointed out that Industrial has had good growth in recent years, which United Community hopes to build on by offering new services such as online banking, telephone banking and a broadened array of financial products. Home Savings and Butler Wick are wholly owned subsidiaries of United Community Financial Corp. Home Savings operates 17 full service banking offices located throughout Mahoning, Columbiana and Trumbull counties in Northeastern Ohio and 5 loan production offices in the Cleveland, Canton, Stow, Medina and Mentor areas. Butler Wick has 10 full service offices and one trust office 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.ucfconline.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 December 31, 2000 December 31,1999 ----------------- ---------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 45,972 $ 111,445 Mortgage-backed securities 199,415 251,638 Investment securities 105,254 170,652 Federal Home Loan Bank stock 13,793 12,825 Net loans receivable: Loans held for investment 879,356 725,632 Loans held for sale 3,850 3,860 Allowance for loan losses (6,553) (6,405) Real estate owned 359 158 Other assets 58,753 57,768 ----------- ----------- Total assets $ 1,300,199 $ 1,327,573 =========== =========== LIABILITIES Deposits $ 900,413 $ 834,087 Other borrowed funds 114,317 213,578 Other liabilities 23,570 23,040 ----------- ----------- Total liabilities 1,038,300 1,070,705 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at December 31, 2000 - - Common stock-no par value; 499,000,000 shares authorized; 37,800,497 shares issued and 37,316,997 outstanding at December 31, 2000 136,967 136,509 Retained earnings 155,026 153,553 Other comprehensive loss (98) (3,003) Unearned compensation (26,674) (30,191) Treasury stock, at cost, 483,500 shares (3,322) - Total shareholders' equity 261,899 256,868 ----------- ----------- Total liabilities and shareholders' equity $ 1,300,199 $ 1,327,573 =========== =========== Book value per share $ 7.77 $ 7.46 Dividends paid per share $ 0.075 $ 0.075
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Three Months Ended Three Months Ended Three Months Ended December 31, September 30, December 31, 2000 2000 1999 ------------------ ------------------ ------------------ (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 24,087 $ 23,236 $ 22,836 Interest expense 12,207 11,443 10,968 -------- -------- -------- Net interest income 11,880 11,793 11,868 Provision for loan losses 150 150 - Noninterest income: Commissions 3,645 3,910 4,294 Service fees and other charges 1,563 1,404 1,249 Underwriting and investment banking 320 113 93 Net gains (losses) Securities 166 1 526 Other (7) 8 7 Other income 241 278 180 -------- -------- -------- Total noninterest income 5,928 5,714 6,349 Noninterest expense Salaries and employee benefits 8,611 9,483 9,545 Gain from curtailment of postretirement benefits - (2,928) - Loss from settlement of pension - 1,008 - Occupancy 553 552 558 Equipment and data processing 1,585 1,477 1,356 Acquisition expense - - 48 Other noninterest expense 3,150 3,148 2,826 -------- -------- -------- Total noninterest expense 13,899 12,740 14,333 Income before taxes 3,759 4,617 3,884 Income taxes 1,306 1,528 1,974 -------- -------- -------- Net income $ 2,453 $ 3,089 $ 1,910 ======== ======== ======== Basic earnings per share $ 0.08 $ 0.09 $ 0.06 Diluted earnings per share $ 0.08 $ 0.09 $ 0.05
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Twelve Months Ended Twelve Months Ended December 31, December 31, 2000 1999 ------------------- ------------------- (In thousands, except per share data) SELECTED EARNINGS DATA: Interest income $ 91,622 $ 89,971 Interest expense 44,104 34,284 -------- -------- Net interest income 47,518 55,687 Provision for loan losses 300 100 Noninterest income: Commissions 17,176 16,186 Service fees and other charges 5,607 4,644 Underwriting and investment banking 646 636 Net gains (losses) Securities 392 559 Other (2) (4) Other income 935 700 -------- -------- Total noninterest income 24,754 22,721 Noninterest expense Salaries and employee benefits 36,193 43,348 Gain on postretirement curtailment (2,928) - Loss on pension termination 1,008 - Occupancy 2,093 2,031 Equipment and data processing 5,807 5,148 Acquisition expense - 478 Other noninterest expense 12,134 10,032 -------- -------- Total noninterest expense 54,307 61,037 Income before taxes 17,665 17,271 Income taxes 6,051 6,876 -------- -------- Net income $ 11,614 $ 10,395 ======== ======== Basic earnings per share $ 0.35 $ 0.31 Diluted earnings per share $ 0.35 $ 0.30
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Three Months Ended Three Months Ended Three Months Ended December 31, September 30, June 30, 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 $ 851,889 $ 800,785 $ 746,430 of $6,553, $6,461 and $6,324, respectively) Net loans held for sale 4,223 3,908 4,142 Mortgage-backed securities 211,030 222,108 234,727 Investment securities 111,578 141,482 151,870 Margin accounts 42,273 43,702 42,881 Other interest-earning assets 38,876 20,630 19,107 Total interest-earning assets 1,259,869 1,232,615 1,199,157 Total assets 1,300,516 1,275,354 1,240,837 Certificates of deposit 506,886 471,751 443,474 Checking, demand and savings accounts 346,319 358,298 366,121 Other interest bearing liabilities 141,943 139,447 131,566 Total interest-bearing deposits 995,148 969,496 941,161 Total noninterest-bearing liabilities 42,793 45,401 40,595 Total liabilities 1,037,941 1,014,897 981,756 Shareholders' equity 262,575 260,457 259,081 Common shares outstanding for basic EPS calculation 33,130,228 33,252,174 32,903,672 Common shares outstanding for diluted EPS calculation 33,874,324 34,093,040 33,442,391 SUPPLEMENTAL LOAN DATA: Loans originated $ 80,835 $ 92,587 $ 93,366 Loans purchased 4,409 3,262 4,281 Loan chargeoffs 87 16 70 Recoveries on loans 28 4 5
As of As of As of December 31, 2000 September 30, 2000 June 30, 2000 ------------------ ------------------ ------------------ (Dollars in thousands) SUPPLEMENTAL DATA: Nonaccrual loans $ 9,458 $ 3,409 $ 3,757 Restructured loans 208 212 214 Other real estate owned 359 307 302 Total nonperforming assets 10,025 3,928 4,273 Loans serviced for others 4,906 5,015 5,134 Number of full time equivalent employees 573 566 547 Mortgage-backed securities available for sale 91,731 99,097 102,863 Mortgage-backed securities held to maturity 107,684 117,847 125,115 Investment securities trading 5,933 5,813 5,161 Investment securities available for sale 98,445 113,010 144,102 Investment securities held to maturity 876 875 875 Federal home loan bank stock 13,793 13,538 13,287 Fair value of held to maturity securities 109,129 116,930 122,843 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 175,340 $ 159,552 $ 155,816 Tangible capital ratio 14.51 13.50 13.53 Regulatory core capital 175,340 159,552 155,816 Core capital ratio 14.51 13.50 13.53 Regulatory total capital 181,460 165,954 162,078 Total risk adjusted assets 745,696 710,548 679,300 Total risk adjusted ratio 24.33 23.36 23.86
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