-----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, BqBTKcfB/0xxZAwtxCcqijAeeS5zxIrVse22lXOZFx7AqaH0vfet6pPTHcGCgOEu luAMIa9VFV+U/pildjHcXg== 0000950152-04-002875.txt : 20040414 0000950152-04-002875.hdr.sgml : 20040414 20040414162638 ACCESSION NUMBER: 0000950152-04-002875 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040414 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040414 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: 04733364 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 l06983ae8vk.txt UNITED COMMUNITY FINANCIAL CORPORATION 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 14, 2004 -------------- 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.) Item 7. Financial Statements and Exhibits (a.) and (b.) Not applicable. (c.) Exhibits. See Index to Exhibits. Item 12: Results of Operations and Financial Condition. On April 14, 2004, United Community Financial Corp. issued a press release discussing its earnings for the first quarter of 2004. The press release is attached as Exhibit 99. 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 14, 2004 INDEX TO EXHIBITS Exhibit 99 Press release dated April 14, 2004 EX-99 3 l06983aexv99.txt EXHIBIT 99 EXHIBIT 99 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. 2592 UNITED COMMUNITY FINANCIAL CORP. ANNOUNCES EARNINGS FOR FIRST QUARTER 2004 YOUNGSTOWN, Ohio (April 14, 2004) - United Community Financial Corp. (United Community) (Nasdaq: UCFC), holding company of The Home Savings and Loan Co. (Home Savings) and Butler Wick Corp. (Butler Wick), today reported net income of $5.5 million, or $0.18 per diluted share, for the quarter ended March 31, 2004, compared to $5.0 million, or $0.16 per diluted share, for the first quarter of 2003. Commenting on the first quarter, Douglas M. McKay, Chairman and Chief Executive Officer of United Community noted, "United Community continues to maintain strong profitability. Earnings per share increased 12.5% compared to the same period last year. Furthermore, return on equity continues to improve. During the first quarter of 2004, return on equity increased 8.02% or a 77 basis point increase when compared to the first quarter of last year." First Quarter Results Net interest income for the first quarter was $18.0 million, down from $18.5 million in the first quarter of last year. The average volume of interest earning assets increased 1.4% from the first quarter of last year, with continued strong growth in average loans. The average volume loans increased 11.0% from last year. Average deposits were down 6.9% from the same quarter last year. The net interest margin was 3.76%, an increase of 6 basis points from the last quarter and a decrease of 16 basis points from the first quarter a year ago. The lower net interest margin over the year primarily reflects the impact of the extended low rate environment. Noninterest income increased $2.3 million to $10.3 million for the first three months ended March 31, 2004, compared to $8.0 million for the same period in 2003. The primary reason for the increase is an increase in service fees and other charges of $1.1 million and a $1.5 million increase in commissions received as a result of increased brokerage activity. These increases were partially offset by a decrease in gains on loans sold of $1.1 million during the first quarter. It is anticipated the level of loan sales will be significantly lower during 2004 as compared to the previous year. The provision for loan losses declined $237,000 for the three months ended March 31, 2004, compared to the same period in 2003. This decrease was based on an analytical review of the allowance for loan losses; after consideration was given to levels and trends of delinquencies, reserve coverage ratios and other factors in relation to the loan portfolio. Noninterest expense increased $1.4 million in the first quarter of 2004 compared to the same period in 2003, primarily as a result of a $1.8 million increase in salaries and employee benefits. The increase in salaries and employee benefits is primarily due to the change in market value of retention plan assets and increased provisions for commissions earned as a result of increased brokerage activity. This increase was partially offset by a decrease of $324,000 in other noninterest expense. Financial Condition United Community's return on average assets and return on average equity were 1.07% and 8.02%, respectively, for the three months ended March 31, 2004. The returns on average assets and average equity were 1.00% and 7.25 %, respectively, for the three months ended March 31, 2003. Total assets increased by $9.5 million, or 0.46%, to $2.1 billion at March 31, 2004, compared to December 31, 2003. The net change in assets was a result of increases of $93.8 million in loans, $12.6 million in trading securities and $4.4 million in other assets partially offset by decreases of $47.3 million in cash and cash equivalents, $37.3 million in available for sale securities and $16.9 million in loans held for sale. Total liabilities increased $46.5 million primarily as a result of a $6.1 million increase in non-interest bearing deposits, a $13.1 million increase in short-term borrowings and a $32.7 million increase in accrued other expenses and other liabilities. Net loans increased $93.8 million, or 6.0%, from December 31, 2003 to March 31, 2004. Home Savings had increases of $26.7 million in real estate loans, $37.6 million in construction loans, $32.2 million in consumer loans and $17.8 million in commercial loans. The allowance for loan losses increased $200,000 at March 31, 2004 to $15.3 million from $15.1 million at December 31, 2003. The allowance for loan losses is monitored closely and may be increased or decreased depending on a variety of factors such as levels and trends of delinquencies, chargeoffs and recoveries and perceived risk in the portfolios. The allowance for loan losses as a percentage of total loans was 0.90% at March 31, 2004, compared to 0.96% at December 31, 2003. The increase in short-term borrowed funds of $13.1 million from December 31, 2003 to March 31, 2004 was to fund loan growth in excess of deposit growth. Additionally, accrued expenses and other liabilities increased by $32.7 million at March 31, 2004 compared to December 31, 2003. This increase was primarily due to unsettled securities transactions at both Butler Wick and Home Savings. Total shareholders' equity decreased $37.0 million from December 31, 2003 to March 31, 2004, largely due to the self-tender offer. Tangible book value and book value as of March 31, 2004, were $6.61 and $7.80 per share, respectively. During the first quarter of 2004, United Community announced the commencement of a self-tender offer to purchase up to four million shares of its common stock at a price of $12.50 per share. At the end of the offer period United Community announced it had repurchased 3,667,227 shares. The purchase represented approximately 10.4 % of the shares then outstanding while the purchase price totaled $45.9 million. Mr. McKay expressed that, "We are pleased with the results of the self-tender offer. Our goals in this transaction were to generate additional liquidity for our shareholders, increase earnings per share growth and return on shareholders' equity. We were successful in achieving all of these goals." Home Savings and Butler Wick are wholly owned subsidiaries of United Community Financial Corp. Home Savings operates 36 full service banking offices and 6 loan production offices located throughout 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 press release 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, 2004 December 31, 2003 -------------- ----------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA (UNAUDITED): ASSETS Cash and cash equivalents $ 33,880 $ 81,155 Securities 218,338 243,125 Federal Home Loan Bank stock 22,142 21,924 Loans held for sale 20,771 37,715 Loans 1,685,567 1,591,605 Allowance for loan losses (15,253) (15,111) Real estate owned 1,449 1,299 Goodwill 33,593 33,593 Core deposit intangible 3,530 3,787 Cash surrender value of life insurance 20,735 20,496 Other assets 58,583 54,245 ----------- ----------- Total assets $ 2,083,335 $ 2,073,833 =========== =========== LIABILITIES Deposits $ 1,428,329 $ 1,423,698 Other borrowed funds 350,092 338,463 Other liabilities 62,105 31,836 ----------- ----------- Total liabilities 1,840,526 1,793,997 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at March 31, 2004 -- -- Common stock-no par value; 499,000,000 shares authorized; 37,804,457 and 37,804,457 issued, respectively 140,076 139,526 Retained earnings 187,910 185,495 Other comprehensive income 1,639 1,124 Unearned compensation (16,296) (16,752) Treasury stock, at cost; 6,670,900 and 3,718,542 shares, respectively (70,520) (29,557) ----------- ----------- Total shareholders' equity 242,809 279,836 ----------- ----------- Total liabilities and shareholders' equity $ 2,083,335 $ 2,073,833 =========== =========== Book value per share $ 7.80 $ 8.21 Tangible book value per share $ 6.61 $ 7.11
Three Months Ended March 31, --------------------------- 2004 2003 -------- -------- (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 27,075 $ 29,741 Interest expense 9,067 11,232 -------- -------- Net interest income 18,008 18,509 Provision for loan losses 459 696 Noninterest income: Commissions 4,652 3,175 Service fees and other charges 2,890 1,800 Underwriting and investment banking 372 118 Net gains (losses) Loans sold 901 2,010 Securities 837 348 Other (9) (59) Other income 688 583 -------- -------- Total noninterest income 10,331 7,975 Noninterest expense: Salaries and employee benefits 12,665 10,901 Occupancy 914 829 Equipment and data processing 2,335 2,344 Amortization of core deposit intangible 257 389 Other noninterest expense 3,343 3,692 -------- -------- Total noninterest expense 19,514 18,155 -------- -------- Income before taxes 8,366 7,633 Income taxes 2,893 2,653 -------- -------- Net income $ 5,473 $ 4,980 ======== ======== Basic earnings per share $ 0.18 $ 0.16 Diluted earnings per share $ 0.18 $ 0.16 Dividends paid per share $ 0.075 $ 0.075
Three Months Ended Three Months Ended Three Months Ended March 31 December 31, September 30, 2004 2003 2003 ------------------ ------------------ ------------------ (In thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED): Net loans (including allowance for loan losses of $15,253, $15,111 and $15,973, respectively) $1,619,186 $1,549,363 $1,483,019 Loans held for sale 18,756 32,230 51,796 Securities 236,330 236,584 269,890 Margin accounts 13,783 14,654 14,106 Other interest-earning assets 28,030 29,773 30,728 Total interest-earning assets 1,916,085 1,862,604 1,849,539 Total assets 2,045,992 1,989,801 1,974,949 Certificates of deposit 730,139 751,531 741,432 Interest-bearing checking, demand and savings accounts 619,102 630,277 645,213 Other-interest bearing liabilities 314,336 239,798 235,520 Total interest-bearing liabilities 1,663,577 1,621,606 1,622,165 Noninterest-bearing deposits 68,199 65,436 61,379 Total noninterest-bearing liabilities 109,358 87,508 73,255 Total liabilities 1,772,935 1,709,114 1,695,420 Shareholders' equity 273,057 280,687 279,529 Common shares outstanding for basic EPS calculation 30,861 31,052 31,440 Common shares outstanding for diluted EPS calculation 31,328 31,664 31,884 SUPPLEMENTAL LOAN DATA: Loans originated $ 256,624 $ 232,725 $ 435,636 Loans purchased 46,135 52,398 52,428 Loans sold 46,539 55,646 163,290 Loan chargeoffs 352 1,181 889 Recoveries on loans 35 109 13
As of As of As of March 31, December 31, September 30, 2004 2003 2003 --------- ------------ ------------- (In thousands, except employee data) SUPPLEMENTAL DATA: Nonaccrual loans $ 12,178 $ 12,981 $ 14,423 Restructured loans 944 2,025 1,923 Other real estate owned 1,449 1,299 546 Total nonperforming assets 14,571 16,305 16,892 Loans serviced for others 633,703 633,189 615,352 Number of full time equivalent employees 782 779 773 Securities trading 28,159 15,600 12,735 Securities available for sale 190,179 227,525 234,649 Federal Home Loan Bank stock 22,142 21,924 21,705 REGULATORY CAPITAL DATA: Tier 1 leverage ratio 8.35 8.22 9.08 Tier 1 risk-based capital ratio 9.68 9.64 10.97 Total risk-based capital ratio 10.58 10.56 11.98
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