-----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, IUPNTOAL1qpNOkYoUmIEzqLFd2sYafBv3vyPfbcCQbNVj0blwTXcNmSKNLV9B2ln lZ8rjN5Pk8dx1C18NapmNw== 0001047469-99-027449.txt : 19990715 0001047469-99-027449.hdr.sgml : 19990715 ACCESSION NUMBER: 0001047469-99-027449 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990714 ITEM INFORMATION: FILED AS OF DATE: 19990714 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: 99664207 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 FORM 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: JULY 14, 1999 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 Douglas M. McKay President (330) 742-0500, Ext. 801 UNITED COMMUNITY FINANCIAL CORP. ANNOUNCES EARNINGS FOR SECOND QUARTER 1999 AND HOLDS SPECIAL SHAREHOLDER'S MEETING Youngstown, Ohio - July 14, 1999 - United Community Financial Corp. (Nasdaq: UCFC), holding company for The Home Savings and Loan Company of Youngstown, Ohio, announced net income for the three months ended June 30, 1999 of $4.9 million, or $.15 per share. Net income for the comparable period in 1998 was $3.5 million and net income for the three months ended March 31, 1999 was $4.7 million. United Community's annualized return on average assets and return on average equity were 1.54% and 4.17%, respectively, for the three months ended June 30, 1999. The annualized return on average assets and return on average equity for the comparable period in 1998 were 1.20% and 9.55%, respectively, and 1.49% and 4.04%, respectively, for the three months ended March 31, 1999. For the six-month period ended June 30, 1999, United Community realized net income of $9.6 million, or $0.30 per share. For the comparable period in 1998, United Community realized net income of $6.2 million. Interest income increased $2.7 million to $43.4 million for the six months ended June 30, 1999, compared to $40.7 million for the same period in 1998. Interest expense was $15.0 million for the six months ended June 30, 1999, a $4.5 million decline from $19.5 million for the same period in 1998. United Community's annualized return on average assets and return on average equity were 1.52% and 4.11%, respectively, for the six months ended June 30, 1999. The annualized return on average assets and return on average equity for the comparable period in 1998 were 1.12% and 8.57%, respectively. Douglas M. McKay, President of United Community, stated, "Earnings for the first six months of 1999 have increased substantially when compared to last year, primarily due to an increase in interest-earning assets in conjunction with a decrease in interest-bearing liabilities." Total shareholders' equity increased $4.0 million to $468.6 million at June 30, 1999 from $464.6 million at December 31, 1998. This increase was primarily due to earnings for the six months, which were partially offset by the first and second quarter dividends of $0.075 per share paid in March and June of 1999. Book value per share was $14.54 as of June 30, 1999. Total assets increased $16.1 million from December 31, 1998 to June 30, 1999. The primary reason for the increase in total assets was a result of a $30.0 million increase in net loans and an $89.6 million increase in investment securities. The increases were offset by a $108.0 million decline in cash and cash equivalents. Funds from cash and cash equivalents were invested in short-term securities that were designated as available for sale. This enabled United Community to take advantage of the current interest rate environment by investing in higher yielding securities while providing a great deal of liquidity and flexibility. Deposits increased $4.3 million to $781.9 million as of June 30, 1999 from $777.6 million as of December 31, 1998. On June 30, 1999, the stock of United Community was added to the Russell 2000 index, which is an index of 2000 companies that generally have market capitalizations up to $1.5 billion. At a special meeting of United Community shareholders held on July 12, 1999, the shareholders approved the United Community Financial Corp. 1999 Long-Term Incentive Plan and the United Community Financial Corp. Recognition and Retention Plan. The purpose of the plans is to promote and advance the interests of United Community and its shareholders by enabling United Community to attract, retain and reward directors, directors emeritus and managerial and other key employees of United Community and any other subsidiary, by facilitating their purchase of an ownership interest in United Community. At this time, no awards have been made under either plan. As previously announced, United Community has entered into a merger agreement with Butler Wick Corp., also headquartered in Youngstown, Ohio, whereby Butler Wick will become a wholly-owned subsidiary of United Community. The shareholders of Butler Wick are expected to approve the merger at a special meeting of shareholders held on July 14, 1999, and the parties anticipate that the merger will be completed on or about July 30, 1999. In connection with the merger, United Community will issue up to 1.7 million common shares in exchange for all of the outstanding Butler Wick shares. Butler Wick Corp., an Ohio corporation, is the parent company for three wholly-owned subsidiaries: Butler Wick & Co., Inc., Butler Wick Asset Management Company and Butler Wick Trust Company. Through these subsidiaries, Butler Wick's business includes investment brokerage, which it has conducted for over 70 years, and a network of integrated financial services including asset management, trust and estate services, public finance and insurance. Butler Wick and its subsidiaries have ten offices throughout northeastern Ohio and western Pennsylvania. Home Savings, the wholly-owned subsidiary of United Community, has 14 offices located throughout Mahoning, Columbiana and Trumbull Counties in Northeastern Ohio. Additional information on United Community, Home Savings and Butler Wick may be found on Home Savings' web site: www.homesavingsandloan.com. UNITED COMMUNITY FINANCIAL CORP.
As of As of June 30, 1999 December 31,1998 -------------------- ----------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 62,494 $ 170,508 Mortgage-backed securities 281,613 281,889 Investment securities 205,469 115,881 Federal Home Loan Bank stock 12,376 11,958 Net loans receivable: Loans held for investment 690,201 659,903 Loans held for sale 3,719 3,993 Allowance for loan losses (6,446) (6,398) Real estate owned 152 78 Other assets 23,816 19,493 -------------------- ----------------- Total assets $ 1,273,394 $ 1,257,305 LIABILITIES Deposits $ 781,927 $ 777,583 Other liabilities 22,914 15,077 -------------------- ----------------- Total liabilities $ 804,841 $ 792,660 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at June 30, 1999 - - Common stock-no par value; 499,000,000 shares authorized; 34,715,625 shares issued-and 32,220,552 outstanding at June 30, 1999 $ 342,998 $ 342,840 Retained earnings 151,717 146,934 Other comprehensive income (1,211) 733 Unearned compensation (24,951) (25,862) -------------------- ----------------- Total shareholders' equity $ 468,553 $ 464,645 Book value per share $ 14.54 $ 14.46 Dividends paid per share per quarter $ 0.075 $ 0.075
Three Months Ended Three Months Ended Three Months Ended June 30, March 31, June 30, 1999 1999 1998 ----------------------- ----------------------- ----------------------- (In thousands, except per share data) SELECTED EARNINGS DATA: Interest income $ 21,816 $ 21,598 $ 21,017 Interest expense 7,491 7,507 9,960 ----------------------- ----------------------- ----------------------- Net interest income 14,325 14,091 11,057 Provision for loan losses 25 75 150 Noninterest income: Service fees and other charges 337 273 300 Net gains (losses) Securities 40 - 240 Other (10) 1 (6) Other income 137 116 150 ----------------------- ----------------------- ----------------------- Total noninterest income 504 390 684 Noninterest expense Salaries and employee benefits 4,255 4,183 3,564 Occupancy 337 301 328 Equipment and data processing 662 646 689 Other noninterest expense 1,859 1,983 1,682 ----------------------- ----------------------- ----------------------- Total noninterest expense 7,113 7,113 6,263 Income before taxes 7,691 7,293 5,328 Income taxes 2,800 2,582 1,866 ----------------------- ----------------------- ----------------------- Net income $ 4,891 $ 4,711 $ 3,462 ======================= ======================= ======================= Basic and diluted earnings per share $ 0.15 $ 0.15 N/A
Six Months Ended Six Months Ended June 30, June 30, 1999 1998 ----------------------- ---------------------- (In thousands, except per share data) SELECTED EARNINGS DATA: Interest income $ 43,415 $ 40,695 Interest expense 14,998 19,516 ----------------------- ---------------------- Net interest income 28,417 21,179 Provision for loan losses 100 400 Noninterest income: Service fees and other charges 610 580 Net gains (losses) Securities 40 253 Other (9) (58) Other income 253 287 ----------------------- ---------------------- Total noninterest income 894 1,062 Noninterest expense Salaries and employee benefits 8,440 7,145 Occupancy 639 641 Equipment and data processing 1,308 1,292 Other noninterest expense 3,840 3,280 ----------------------- ---------------------- Total noninterest expense 14,227 12,358 Income before taxes 14,984 9,483 Income taxes 5,382 3,320 ----------------------- ---------------------- Net income $ 9,602 $ 6,163 ======================= ====================== Basic and diluted earnings per share $ 0.30 N/A
Three Months Ended Three Months Ended Three Months Ended June 30, March 31, December 31, 1999 1999 1998 ---------------------- ---------------------- ---------------------- (Dollars in thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA: Net loans held for investment (including allowance for loan losses of $ 6,462, $6,413 and $6,315, respectively) $ 672,986 $ 660,225 $ 646,962 Net loans held for sale 4,051 4,035 3,679 Mortgage-backed securities 272,823 270,668 284,989 Investment securities 159,358 123,140 104,940 Other interest-earning assets 127,127 171,948 182,192 Total interest-earning assets 1,263,345 1,230,016 1,222,762 Total assets 1,269,016 1,261,453 1,253,463 Certificates of deposit 423,562 429,325 432,713 Checking, demand and savings accounts 350,471 340,454 331,182 Total interest-bearing deposits 774,308 769,779 763,895 Total noninterest-bearing deposits 7,874 6,712 6,752 Total liabilities 800,399 795,367 789,276 Shareholders' equity 468,617 466,086 464,187 Common shares outstanding 32,198,030 32,152,489 32,105,871 SUPPLEMENTAL LOAN DATA: Loans originated $ 63,743 $ 56,542 $ 67,718 Loans purchased - - - Loan chargeoffs 29 22 29 Recoveries on loans 4 9 16 As of As of As of June 30, 1999 March 31, 1999 December 31, 1998 ---------------------- ---------------------- ---------------------- (Dollars in thousands) SUPPLEMENTAL DATA: Nonaccrual loans $ 3,805 $ 4,856 $ 5,729 Restructured loans 1,712 1,822 1,832 Other real estate owned 152 196 78 Total nonperforming assets 5,669 6,874 7,639 Loans serviced for others 5,535 5,696 6,002 Number of full time equivalent employees 420 417 418 Mortgage-backed securities available for sale 126,501 97,127 98,890 Mortgage-backed securities held to maturity 155,112 166,996 182,999 Investment securities available for sale 205,469 129,221 110,888 Investment securities held to maturity - - 4,993 Federal home loan bank stock 12,376 12,164 11,958 Fair value of held to maturity securities 155,838 170,127 192,026 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 307,885 $ 303,666 $ 299,617 Tangible capital ratio 27.00 26.97 26.80 Regulatory core capital 307,885 303,666 299,617 Core capital ratio 27.00 26.97 26.80 Regulatory total capital 314,235 310,031 305,919 Total risk adjusted assets 623,181 605,685 593,913 Total risk adjusted ratio 50.42 51.19 51.51
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