-----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, FWKD/B8DNF3SPLGWxEH/Fivh+HrkuG5MPW6IqEMFrLP94mMW1OsxuLMmDHUcFiac jValV7TDGDkJjnzLQpl9KQ== 0000950152-01-503265.txt : 20010719 0000950152-01-503265.hdr.sgml : 20010719 ACCESSION NUMBER: 0000950152-01-503265 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010718 ITEM INFORMATION: FILED AS OF DATE: 20010718 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: 1684034 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 l89477ae8-k.txt UNITED COMMUNITY FINANCIAL CORP. 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: July 18, 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 SECOND QUARTER 2001 YOUNGSTOWN, Ohio (July 18, 2001) - United Community Financial Corp. (Nasdaq: UCFC) today announced its financial results for the second quarter of 2001. United Community is the holding company of The Home Savings and Loan Co. and Butler Wick Corp. For the three month period ended June 30, 2001, United Community reported net income of $2.9 million, or $0.09 per diluted share, compared to net income of $3.0 million, or $0.09 per diluted share, for the same three month period in 2000. United Community's net interest income increased $352,000 and noninterest income increased $261,000, which were substantially offset by a $250,000 increase in provision for loan losses and a $325,000 increase in noninterest expense. The improvement in net interest income is a result of an increase in interest income on loans and a decrease in interest expense on borrowed funds, partially offset by lower interest income on mortgage-related and investment securities and margin accounts and an increase in interest expense on deposits. Noninterest income increased due to higher levels of service fees and other charges, underwriting and investment banking fees and gains on trading securities, offset by a decline in commission income. The increase in noninterest expense is largely due to increased equipment and data processing expenses, as lower franchise taxes offset increases in advertising and other expenses. "We are pleased with our overall performance in the quarter, especially in light of the current economic environment," said Douglas M. McKay, chairman and chief executive officer of United Community. "Home Savings continues to show profitable year-over-year growth, however the uneasiness of investors in the stock market caused a significant decline in commission income at Butler Wick compared to last year. We also are excited that we completed our acquisition of Industrial Bancorp on July 1 and look forward to the future benefits of that transaction." Net income for the six months ended June 30, 2001 was $6.1 million, or $0.19 per diluted share, compared to $6.1 million, or $.18 per diluted share, for the six months ended June 30, 2000. Net interest income increased $914,000 primarily as a result of an increase in loan interest income of $8.1 million and a decrease of $1.1 million in interest expense on borrowed funds, partially offset by an 3 increase of $4.6 million in interest expense on deposits, and decreases of $1.8 million in interest income on mortgage-related securities and $2.0 million in interest income on investment securities available for sale. Noninterest income for the six months declined by $1.2 million due to declines of $2.6 million in commission income at Butler Wick and $422,000 in trading securities gains. The lower commission income is attributable to the overall volatility of the stock market, which has led to fewer transactions throughout the brokerage industry. These declines were partially offset by increases of $1.1 million in service fees and other charges, and higher gains on the sale of mortgage-related and investment securities and loans. Noninterest expense declined by $1.3 million due largely to a $1.7 million decline in salaries and employee benefits and $851,000 in franchise taxes, partially offset by increases in equipment and data processing, occupancy, advertising and other expenses. The decline in salaries and employee benefits is primarily due to the decline in commission income, and lower expenses related to the Butler Wick retention plan. United Community's return on average assets and return on average equity were 0.92% and 4.72%, respectively, for the first half of 2001. The return on average assets and return on average equity were 0.98% and 4.70%, respectively, for the first half of 2000. Total shareholders' equity decreased $5.3 million, or 2.0%, to $256.6 million at June 30, 2001 from $261.9 million at December 31, 2000. The decrease was primarily due to the quarterly dividend payments and treasury stock purchases, offset by earnings for the quarter and an increase in other comprehensive income. Book value as of June 30, 2001 was $7.90 per share. Total assets increased $185.0 million, or 14.2%, from December 31, 2000 to June 30, 2001, primarily as a result of increases in cash and cash equivalents and loans of $83.5 million and $171.0 million, respectively. Increases in deposits of $67.1 million and other borrowed funds of $123.1 million and a reduction of $48.6 million in investment securities available for sale funded these increases. Net loans increased $171.0 million, or 19.5%, from December 31, 2000 to June 30, 2001 due to increases of $64.3 million in gross mortgage loans, $58.1 million in gross commercial loans, $46.6 million in gross construction loans and $16.3 million in gross consumer loans. "The continued loan growth experienced by Home Savings is the result of our focus to diversify our loan portfolio," McKay said. "We continue to see exciting opportunities in areas like consumer lending, where we are offering a variety of new products to our customers." Deposits increased $67.1 million, or 7.4%, from December 31, 2000 to June 30, 2001, primarily due to a $49.3 million increase in certificates of deposit, largely as a result of Home Savings offering competitive interest rates. Other borrowed funds increased $123.1 million due to $87.0 million borrowed from the Federal Home Loan Bank in anticipation of the acquisition of Industrial Bancorp on July 1, 2001 and other borrowings to fund loan growth. Home Savings and Butler Wick are wholly owned subsidiaries of United Community Financial Corp. Home Savings operates 29 full service banking offices, including the former Industrial offices, located throughout Northeastern and Northcentral Ohio and 4 loan production offices in the Cleveland, Canton, Stow and Mentor areas. Butler Wick has 11 full service offices and one trust office located throughout Northeastern Ohio and Western Pennsylvania. Additional information on United 4 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 and anticipated earnings for the year 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 June 30, 2001 December 31, 2000 ------------- ----------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 129,516 $ 45,972 Mortgage-related securities 182,155 199,415 Investment securities 57,631 105,254 Federal Home Loan Bank stock 14,293 13,793 Loans held for sale 10,453 3,850 Loans 1,044,308 879,356 Allowance for loan losses (7,063) (6,553) Real estate owned 337 359 Other assets 53,596 58,753 ----------- ----------- Total assets $ 1,485,226 $ 1,300,199 =========== =========== LIABILITIES Deposits $ 967,468 $ 900,413 Other borrowed funds 237,463 114,317 Other liabilities 23,675 23,570 ----------- ----------- Total liabilities 1,228,606 1,038,300 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at June 30, 2001 -- -- Common stock-no par value; 499,000,000 shares authorized; 37,799,309 and 37,800,497 issued, respectively 137,020 136,967 Retained earnings 156,207 155,026 Other comprehensive income (loss) 1,074 (98) Unearned compensation (24,922) (26,674) Treasury stock, at cost; 1,858,500 and 483,500 shares, respectively (12,759) (3,322) ----------- ----------- Total shareholders' equity 256,620 261,899 ----------- ----------- Total liabilities and shareholders' equity $ 1,485,226 $ 1,300,199 =========== =========== Book value per share $ 7.90 $ 7.77 Dividends paid per share $ 0.075 $ 0.075
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Three Months Ended Three Months Ended Three Months Ended June 30, March 31, June 30, 2001 2001 2000 ------------------ ------------------ ------------------ (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 24,645 $ 24,038 $ 22,420 Interest expense 12,244 11,681 10,371 -------- -------- -------- Net interest income 12,401 12,357 12,049 Provision for loan losses 250 330 -- Noninterest income: Commissions 3,421 3,591 4,238 Service fees and other charges 1,848 1,919 1,385 Underwriting and investment banking 321 63 192 Net gains (losses) Securities 264 (74) (158) Other 69 16 (4) Other income 195 273 204 -------- -------- -------- Total noninterest income 6,118 5,788 5,857 Noninterest expense Salaries and employee benefits 8,534 7,864 8,470 Occupancy 621 573 532 Equipment and data processing 1,775 1,619 1,446 Other noninterest expense 2,622 2,723 2,779 -------- -------- -------- Total noninterest expense 13,552 12,779 13,227 Income before taxes 4,717 5,036 4,679 Income taxes 1,779 1,834 1,709 -------- -------- -------- Net income $ 2,938 $ 3,202 $ 2,970 ======== ======== ======== Basic earnings per share $ 0.09 $ 0.10 $ 0.09 Diluted earnings per share $ 0.09 $ 0.10 $ 0.09
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Six Months Ended Six Months Ended June 30, June 30, 2001 2000 ---------------- ---------------- (In thousands, except per share data) SELECTED EARNINGS DATA: Interest income $ 48,683 $ 44,299 Interest expense 23,924 20,454 -------- -------- Net interest income 24,759 23,845 Provision for loan losses 580 -- Noninterest income: Commissions 7,012 9,622 Service fees and other charges 3,767 2,640 Underwriting and investment banking 383 214 Net gains (losses) Securities 191 223 Other 86 (3) Other income 468 416 -------- -------- Total noninterest income 11,907 13,112 Noninterest expense Salaries and employee benefits 16,399 18,098 Occupancy 1,194 988 Equipment and data processing 3,394 2,746 Other noninterest expense 5,344 5,836 -------- -------- Total noninterest expense 26,331 27,668 Income before taxes 9,755 9,289 Income taxes 3,614 3,217 -------- -------- Net income $ 6,141 $ 6,072 ======== ======== Basic earnings per share $ 0.19 $ 0.18 Diluted earnings per share $ 0.19 $ 0.18
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Three Months Ended Three Months Ended Three Months Ended June 30, March 31, December 31, 2001 2001 2000 ------------------ ------------------ ------------------ (Dollars in thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED): Net loans held for investment (including allowance for loan losses of $7,063 $6,865 and $6,553, respectively) $ 980,455 $ 890,813 $ 851,889 Net loans held for sale 4,540 4,914 4,223 Mortgage-related securities 191,580 197,933 211,030 Investment securities 73,667 96,088 111,578 Margin accounts 26,902 32,874 42,273 Other interest-earning assets 51,287 45,586 38,876 Total interest-earning assets 1,328,431 1,268,208 1,259,869 Total assets 1,373,514 1,308,752 1,300,516 Certificates of deposit 579,160 553,389 506,886 Interest bearing checking, demand and savings accounts 351,587 344,909 346,319 Other interest bearing liabilities 135,841 104,430 141,943 Total interest-bearing liabilities 1,066,588 1,002,728 995,148 Total noninterest-bearing liabilities 48,787 43,902 42,793 Total liabilities 1,115,375 1,046,648 1,037,941 Shareholders' equity 258,139 262,104 262,575 Common shares outstanding for basic EPS calculation 31,824,605 32,671,313 33,130,228 Common shares outstanding for diluted EPS calculation 32,048,424 32,814,872 33,187,843 SUPPLEMENTAL LOAN DATA: Loans originated $ 225,778 $ 113,590 $ 80,835 Loans purchased 450 900 4,409 Loans sold 4,984 1,305 -- Loan chargeoffs 45 32 87 Recoveries on loans 5 14 28
As of As of As of June 30, 2001 March 31, 2001 December 31, 2000 ------------- -------------- ----------------- (Dollars in thousands) SUPPLEMENTAL DATA: Nonaccrual loans $ 6,313 $ 5,578 $ 9,458 Restructured loans 204 206 208 Other real estate owned 349 349 359 Total nonperforming assets 6,865 6,133 10,025 Loans serviced for others 4,653 4,780 4,906 Number of full time equivalent employees 605 591 573 Mortgage-related securities available for sale 88,443 97,741 91,731 Mortgage-related securities held to maturity 93,712 100,651 107,684 Investment securities trading 6,763 5,968 5,933 Investment securities available for sale 49,883 79,415 98,445 Investment securities held to maturity 985 881 876 Federal home loan bank stock 14,293 14,039 13,793 Fair value of held to maturity securities 96,791 103,639 109,129 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 182,426 $ 178,896 $ 175,340 Tangible capital ratio 12.89 14.05 14.51 Regulatory core capital 182,426 178,896 175,340 Core capital ratio 12.89 14.05 14.51 Regulatory total capital 188,311 185,330 181,460 Total risk adjusted assets 877,490 785,202 745,696 Total risk adjusted ratio 21.46 23.60 24.33
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