-----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, ElYJ9OgfADCCn8wd1F6bS/p9t4K9E9GYCu5uX5wWd8qZbq20SB0VHaSDkJN9tjyT KZ4Vz8dK2J9llHUMQtNMIw== 0000950152-02-003095.txt : 20020417 0000950152-02-003095.hdr.sgml : 20020417 ACCESSION NUMBER: 0000950152-02-003095 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020417 ITEM INFORMATION: Other events FILED AS OF DATE: 20020417 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: 1934 Act SEC FILE NUMBER: 000-24399 FILM NUMBER: 02613757 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 l93910ae8-k.txt UNITED COMMUNITY FINANCIAL CORP. 8-K 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: April 17, 2002 -------------- 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.) 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 FIRST QUARTER 2002 YOUNGSTOWN, Ohio (April 17, 2002) - United Community Financial Corp. (Nasdaq: UCFC), holding company of The Home Savings and Loan Co. and Butler Wick Corp., today reported net income of $4.3 million, or $0.13 per diluted share, for the quarter ended March 31, 2002, compared to $3.2 million, or $0.10 per diluted share, for the first quarter of 2001. "United Community had a strong first quarter with a 33% increase in net income over the prior year," said Douglas M. McKay, chairman and chief executive officer of United Community. "In addition, United Community has been able to reduce debt while it continues to meet its growth initiative by increasing both loans and deposits in 2002," McKay added. First Quarter Results - --------------------- United Community's net interest income for the three months ended March 31, 2002 increased $4.0 million over the same period in 2001, and noninterest income increased $2.0 million over the same quarter in the previous year. These increases were partially offset by a $2.7 million increase in noninterest expense, a $822,000 extraordinary item due to fees associated with the early extinguishment of debt with the Federal Home Loan Bank and a $366,000 increase in the provision for loan losses. The increase in net interest income is a result of higher interest income on loans resulting from increased loan volume in 2002 and from income earned on loans acquired from Industrial Bancorp (Industrial). This increase was partially offset by increases in interest expense on deposits and borrowed funds. The increase in interest expense was primarily the result of an increase in deposit volume and the acquisition of deposits from Industrial. The increase in noninterest income was primarily due to an increase in gains on loans sold, an increase in the gains recognized on securities and an increase in other income as a result of the acquisition of stock through the demutualization of Anthem, Inc., which Home Savings received since Anthem is the health care provider for its employees. The increase in noninterest expense was due to a $1.9 million increase in salaries and employee benefits primarily as a result of the additional staff acquired from Industrial Bancorp and an increase of $638,000 in the amortization of core deposit intangible from the acquisition of Industrial. Extraordinary items increased $822,000 net of tax from December 31, 2001 to March 31, 2002 due to the fees associated with the early extinguishment of debt with the Federal Home Loan Bank. Due to current economic conditions and cash inflow from loans sold, it was advantageous for United Community to extinguish the debt early and incur the associated fees. Financial Condition - ------------------- United Community's return on average assets and return on average equity were 0.87% and 6.42%, respectively, for the three months ended March 31, 2002. The returns on average assets and average equity were 0.98% and 4.89%, respectively, for the three months ended March 31, 2001. Total shareholders' equity increased $1.4 million from December 31, 2001 to March 31, 2002. The increase was primarily due to income for the quarter, offset by quarterly dividend payments, treasury stock purchases and a decline in other comprehensive income. Book value as of March 31, 2002 was $7.40 per share. Total assets decreased by $8.8 million, or 0.45%, to $1.9 billion at March 31, 2002 compared with December 31, 2001. Cash and cash equivalents decreased $49.2 million and loans held for sale decreased $13.4 million. These decreases were used to fund a $40.5 million increase in loans and a $16.8 million increase in securities. Net loans increased $40.5 million, or 2.9%, from December 31, 2001 to March 31, 2002. Home Savings had increases of $19.9 million in real estate loans, $4.5 million in construction loans and $16.3 million in commercial loans, which were partially offset by a $1.2 million decline in consumer loans. Due to growth in the loan portfolio, the allowance for loan losses increased $542,000, or 4.7%, to $12.0 million at March 31, 2002 compared to $11.5 million at December 31, 2001. The allowance for loan losses as a percentage of total loans increased to 0.82% at March 31, 2002 compared to 0.81% at December 31, 2001. Deposits increased $35.7 million, or 2.6%, from December 31, 2001 to March 31, 2002. Increases in Home Savings' deposits are primarily due to a $14.2 million increase in checking accounts, a $13.0 million increase in certificates of deposit, and a $8.9 million increase in savings accounts, largely as a result of Home Savings offering competitive interest rates and products. Other borrowed funds decreased $44.9 million due primarily to the maturity and early extinguishment of Federal Home Loan Bank debt. "We are continuing to pursue our three initiatives of growth, profitability and capital management in 2002," said McKay. "Assuming the economy continues to improve, we anticipate good results in the balance of the year. We are pleased with our previously announced acquisition of Potters Bancorp, which was completed on April 1, 2002. The acquisition will give us additional growth opportunities in new market areas and allow us to begin offering our variety of products and services to customers in these market areas." Home Savings and Butler Wick are wholly owned subsidiaries of United Community Financial Corp. Home Savings operates 33 full service banking offices and 5 loan production offices, including the former Potters offices, located throughout Northern Ohio and Western Pennsylvania. Butler Wick has 12 office locations providing full service retail brokerage, capital markets and trust services throughout Northern 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. ### When used in this Form 8-K or in future filings by United Community with the SEC, in United Community's press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in United Community's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in Home Savings' market area, demand for investments in Butler Wick's market area and competition, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. United Community cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United Community advises readers that the factors listed above could affect United Community's financial performance and could cause United Community's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. United Community does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. UNITED COMMUNITY FINANCIAL CORP.
As of As of March 31, 2002 December 31, 2001 -------------- ----------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 156,680 $ 205,883 Mortgage-related securities 124,760 145,867 Marketable securities 99,012 61,131 Federal Home Loan Bank stock 18,968 18,760 Loans held for sale 6,810 20,192 Loans 1,458,963 1,417,959 Allowance for loan losses (12,022) (11,480) Real estate owned 1,186 477 Goodwill 21,873 19,664 Core deposit intangible 5,674 6,312 Other assets 54,037 60,015 ------------------- ------------------- Total assets $ 1,935,941 $ 1,944,780 =================== =================== LIABILITIES Deposits $ 1,419,134 $ 1,383,418 Other borrowed funds 226,754 271,631 Other liabilities 26,745 27,851 ------------------- ------------------- Total liabilities 1,672,633 1,682,900 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at March 31, 2002 - - Common stock-no par value; 499,000,000 shares authorized; 37,753,294 and 37,754,086 issued, respectively 136,996 136,903 Retained earnings 162,751 160,915 Other comprehensive income 696 1,402 Unearned compensation (22,058) (22,988) Treasury stock, at cost; 2,186,500 and 2,086,500 shares, respectively (15,077) (14,352) ------------------- ------------------- Total shareholders' equity 263,308 261,880 ------------------- ------------------- Total liabilities and shareholders' equity $ 1,935,941 $ 1,944,780 =================== =================== Book value per share $ 7.40 $ 7.34
Three Months Ended Three Months Ended Three Months Ended March 31, December 31, March 31, 2002 2001 2001 ----------------- ------------------ ---------------- (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 31,263 $ 32,434 $ 24,038 Interest expense 14,893 16,303 11,681 ----------------- ------------------ ---------------- Net interest income 16,370 16,131 12,357 Provision for loan losses 696 1,450 330 Noninterest income: Commissions 3,382 3,380 3,591 Service fees and other charges 1,898 1,834 1,919 Underwriting and investment banking 33 806 63 Net gains (losses) Loans sold 776 5,111 - Securities 605 (13) (74) Other (1) (14) 16 Other income 1,065 203 273 ----------------- ------------------ ---------------- Total noninterest income 7,758 11,307 5,788 Noninterest expense: Salaries and employee benefits 9,723 10,033 7,864 Occupancy 673 679 573 Equipment and data processing 1,819 2,054 1,619 Amortization of core deposit intangible 638 756 - Other noninterest expense 2,634 3,337 2,723 ----------------- ------------------ ---------------- Total noninterest expense 15,487 16,859 12,779 Income before taxes and extraordinary items 7,945 9,129 5,036 Income taxes 2,868 3,555 1,834 ----------------- ------------------ ---------------- Income before extraordinary items 5,077 5,574 3,202 Extraordinary items: Early extinguishment of debt (net of tax of $443) 822 - - ----------------- ------------------ ---------------- Net Income $ 4,255 $ 5,574 $ 3,202 ================= ================== ================ Basic earnings per share before extraordinary items $ 0.16 $ 0.18 $ 0.10 Diluted earnings per share before extraordinary items $ 0.16 $ 0.17 $ 0.10 Basic earnings per share $ 0.13 $ 0.18 $ 0.10 Diluted earnings per share $ 0.13 $ 0.17 $ 0.10 Dividends paid per share $ 0.075 $ 0.075 $ 0.075
Three Months Ended Three Months Ended Three Months Ended March 31, December 31, September 30, 2002 2001 2001 ------------------ ------------------ ---------------- (Dollars in thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED): Net loans (including allowance for loan losses $ 1,428,867 $ 1,391,902 $ 1,456,973 of $12,022, $11,480 and $10,197, respectively) Loans held for sale 15,852 51,524 9,204 Mortgage-related securities 136,163 157,949 174,578 Marketable securities 101,730 60,028 64,282 Margin accounts 20,440 21,203 25,568 Other interest-earning assets 165,669 153,898 68,144 Total interest-earning assets 1,868,721 1,836,504 1,798,749 Total assets 1,952,630 1,925,300 1,880,134 Certificates of deposit 839,288 831,856 821,786 Interest-bearing checking, demand and savings accounts 523,731 494,023 459,759 Other-interest bearing liabilities 254,272 272,071 276,963 Total interest-bearing liabilities 1,617,291 1,597,950 1,558,508 Noninterest-bearing deposits 37,005 32,550 29,670 Total noninterest-bearing liabilities 33,249 65,223 62,920 Total liabilities 1,687,545 1,695,723 1,621,428 Shareholders' equity 265,085 262,127 258,706 Common shares outstanding for basic EPS calculation 31,951,231 31,788,375 31,920,741 Common shares outstanding for diluted EPS calculation 32,212,143 31,912,640 32,196,557 SUPPLEMENTAL LOAN DATA: Loans originated $ 198,712 $ 212,200 $ 175,659 Loans purchased 5,450 1,200 1,227 Loans sold 52,505 146,470 13,044 Loan chargeoffs 208 173 132 Recoveries on loans 54 6 5 As of As of As of March 31, December 31, September 30, 2002 2001 2001 ------------------ ------------------ ---------------- SUPPLEMENTAL DATA: Nonaccrual loans $ 9,479 $ 10,889 $ 12,979 Restructured loans 1,459 1,572 185 Other real estate owned 1,186 477 410 Total nonperforming assets 12,124 12,938 13,574 Loans serviced for others 215,001 178,932 6,741 Number of full time equivalent employees 726 723 716 Mortgage-related securities available for sale 54,533 67,069 79,496 Mortgage-related securities held to maturity 70,227 78,798 86,102 Marketable securities trading 6,514 8,352 6,126 Marketable securities available for sale 90,301 51,081 54,232 Marketable securities held to maturity 2,197 1,698 584 Federal Home Loan Bank stock 18,968 18,760 18,503 Fair value of held to maturity securities 73,654 82,339 89,238 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 171,759 $ 168,233 $ 160,917 Tangible capital ratio 9.28 9.07 8.90 Regulatory core capital 171,759 168,233 160,917 Core capital ratio 9.28 9.07 8.90 Regulatory total capital 182,158 178,196 169,805 Total risk adjusted assets 1,227,142 1,212,016 1,212,252 Total risk adjusted ratio 14.84 14.70 14.01
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/ Patrick A. Kelly ---------------------------- Patrick A. Kelly Chief Financial Officer Dated: April 16, 2002 -----END PRIVACY-ENHANCED MESSAGE-----