EX-99 3 a4499056ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Union Financial Bancshares, Inc. Announces Year-End and Fourth Quarter Earnings UNION, S.C.--(BUSINESS WIRE)--Oct. 22, 2003--Union Financial Bancshares, Inc. (NASDAQ: UFBS) announced earnings of $425,000 for the fourth quarter ending September 30, 2003 compared to earnings of $383,000 for the fourth quarter of 2002, a 10.97% increase. Earnings per share were $.22 per share (basic) for the fourth quarter of fiscal 2003 versus $.20 per share (basic) for the fourth quarter of fiscal 2002. Net income for the twelve-months ended September 30, 2003 was $1,859,000, or $.95 per share (basic), versus $1,744,000, or $.90 per share (basic), for the same period in 2002, a 6.59% increase. At September 30, 2003, assets totaled $341.3 million, a 9.76% increase from $311.0 million at September 30, 2002. Net loans receivable decreased $8.6 million or 5.36% to $152.9 million at September 30, 2003, compared to $161.6 million at September 30, 2002. Investment and mortgage-backed securities at September 30, 2003, increased 33.84% to $157.4 million from $117.6 million at September 30, 2002. Deposits at September 30, 2003, increased 9.95% to $220.2 million from $200.3 million at September 30, 2002. Commenting on the fourth quarter results, Dwight V. Neese, President and Chief Executive Officer, stated: "We are pleased to report our earnings performance improvement over the comparable periods in the previous year. Not only did our fourth quarter results show an earnings increase of 11% over the previous year quarter, our earnings per share also rose 10%. As we continue to reposition our company for long- term growth, the consumer and commercial loan portfolios increased 37.4% over the same period last year. We will continue to focus on our core operations over the coming quarters with the goal of continuing to build long-term value for our shareholders." The Company declared a quarterly dividend of $0.10 per share on its outstanding common stock, payable on November 17, 2003 to shareholders of record October 30, 2003. Union Financial Bancshares is the holding company for Provident Community Bank, which operates seven banking locations in the upstate area of South Carolina. At September 30, 2003, Union Financial had $341.3 million in total assets and stockholders' equity of $26.2 million. Union Financial Bancshares, Inc. Fourth Quarter - Fiscal Year Ending September 30, 2003 Financial Highlights ($ in thousands, except share data) Sept. 30, Balance Sheet 2003 2002 $ Change % Change Total assets $341,305 $310,968 $30,337 9.76% Cash and interest-bearing deposits 5,017 8,731 (3,714) -42.54% Investments & mortgage-backed securities 157,438 117,633 39,805 33.84% Loans receivable (net) 152,921 161,576 (8,655) -5.36% Goodwill & intangible assets 5,007 5,853 (846) -14.45% Deposits 220,232 200,303 19,929 9.95% Advances & other borrowings 85,000 74,000 11,000 14.86% Stockholders' equity 26,216 27,198 (982) -3.61% Number of outstanding shares 1,965,103 1,958,069 7,034 0.36% Book value per share $13.34 $13.89 ($0.55) -3.96% Tangible book value per share $10.79 $10.90 ($0.11) -0.99% Three Months Twelve Months Ended Ended Sept. 30, Sept. 30, Income Statement 2003 2002 2003 2002 Net interest income $2,066 $2,068 $8,222 $8,586 Provision for loan losses 120 300 725 990 Net interest income after loan 1,946 1,768 7,497 7,596 Noninterest income 579 374 2,211 1,308 Noninterest expense 1,998 1,649 7,278 6,602 Income tax 102 110 571 558 Net income $425 $383 $1,859 $1,744 Earnings per share: Basic $0.22 $0.20 $0.95 $0.90 Earnings per share: Dilutive $0.21 $0.19 $0.90 $0.86 Twelve Months Ended Sept. 30, Key Financial Ratios 2003 2002 Return on average assets 0.55% 0.59% Return on average stockholder 6.64% 7.06% Operating expense to average 2.17% 2.22% Capital to average assets 10.20% 11.83% CONTACT: Union Financial Bancshares, Inc. Dwight V. Neese, 864-429-1863