-----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, RHGICc68qPlTdNn0e6oUxQL3JZgDaO4zy4XSD+FrxF4mDKNSUckcUnYUj7mAZpwf kOKaBEkt3IhTussFncMmDw== 0001157523-06-000336.txt : 20060117 0001157523-06-000336.hdr.sgml : 20060116 20060117164643 ACCESSION NUMBER: 0001157523-06-000336 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060117 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060117 DATE AS OF CHANGE: 20060117 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNION FINANCIAL BANCSHARES INC CENTRAL INDEX KEY: 0000926164 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 570264560 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-80808 FILM NUMBER: 06533468 BUSINESS ADDRESS: STREET 1: 203 WEST MAIN ST STREET 2: C/O PROVIDENT COMMUNITY BANK CITY: UNION STATE: SC ZIP: 29379 BUSINESS PHONE: 8644279000 MAIL ADDRESS: STREET 1: 203 WEST MAIN STREET STREET 2: C/O PROVIDENT COMMUNITY BANK CITY: UNION STATE: SC ZIP: 29379 8-K 1 a5058224.txt UNION FINANCIAL BANCSHARES 8-K UNITED STATES 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 (Date of earliest event reported): January 17, 2006 ---------------- UNION FINANCIAL BANCSHARES, INC. -------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-5735 57-1001177 -------- ------ ---------- (State or other jurisdiction of (Commission (IRS Employer incorporation or organization) File Number) Identification No.) 203 West Main Street, Union, South Carolina 29379-0886 ------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (864) 427-9000 -------------- Not Applicable -------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. --------------------------------------------- On January 17, 2006, Union Financial Bancshares, Inc., the holding company for Provident Community Bank, N.A., announced its financial results for the quarter and year ended December 31, 2005. The press release announcing financial results for the quarter and year end December 31, 2005 is included as Exhibit 99.1 and incorporated herein by reference. Item 9.01 Financial Statements and Exhibits. --------------------------------- (a) Financial Statement of Businesses Acquired: Not applicable (b) Pro Forma Information: Not applicable (c) Exhibits Number Description ------ ----------- 99.1 Press Release Dated January 17, 2006 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 hereunto duly authorized. UNION FINANCIAL BANCSHARES, INC. Dated: January 17, 2006 By: /s/ Dwight V. Neese ---------------------------- Dwight V. Neese President and Chief Executive Officer EX-99.1 2 a5058224ex99_1.txt EXHIBIT 99.1 - PRESS RELEASE Exhibit 99.l Union Financial Bancshares, Inc. Reports 25% Increase in Fourth Quarter Earnings and Record Results for 2005 UNION, S.C.--(BUSINESS WIRE)--Jan. 17, 2006--Union Financial Bancshares, Inc. (NASDAQ:UFBS) today reported earnings of $740,000 for the three months ended December 31, 2005 compared to earnings of $592,000 for the fourth quarter of 2004, a 25.0% increase. Earnings per share were $0.38 per share (diluted) for the fourth quarter of 2005, versus $0.29 per share (diluted) for the fourth quarter of 2004. The Company reported record net income of $2.5 million or $1.26 per share (diluted), for the year ended December 31, 2005, a 14% increase over net income of $2.2 million, or $1.05 per share (diluted), for 2004. Net interest income before the loan loss provision for the fourth quarter increased $153,000, or 6.0%, to $2.7 million compared to $2.5 million for the same period in the previous year. The increase was due primarily to higher average loan balances over the previous year along with an increase in yield on loans that resulted from a higher concentration of commercial loans. The increase in interest income was partially offset by higher deposit costs as a result of rising rates and increased borrowings. The provision for loan losses for the fourth quarter totaled $100,000 compared to $475,000 for the same period in the previous year. The decrease in provision for loan losses as compared to the previous year was due to a $1.1 million reduction in classified loans to $3.4 million compared to $4.5 million for the same period in the previous year, offset by a 12.6% increase in net loans over the previous year, and a higher concentration of commercial loans in the portfolio, which carry a higher risk of default. Non-interest income for the fourth quarter decreased $80,000, or 11.7%, to $601,000 compared to $681,000 for the same period in the previous year. The decrease was due to lower fees generated from third party investment brokerage and financing receivables program due to a reduction in product volumes, offset by higher fees for financial services that resulted from an increase in transaction accounts. The Company also recorded a loss on the sale of investments of $54,000 that resulted from a restructuring of the investment portfolio to reduce exposure to government equity securities. Non-interest expense for the fourth quarter increased $210,000, or 10.7%, to $2.2 million compared to $2.0 million for the same period in the previous year. The increase was due primarily to higher employee benefits and advertising costs. At December 31, 2005, assets totaled $370.8 million, a 5.5% increase from $351.6 million at December 31, 2004. Net loans receivable increased $21.5 million, or 12.6%, during the period to $192.6 million at December 31, 2005, compared to $171.1 million at December 31, 2004. The net growth in loans was driven by a 25% increase in the consumer/commercial loan sector as the Company continues to focus on this lending segment with specialized loan officers and products. Growth in lower cost transaction accounts resulted in deposits increasing 5.3% to $239.6 million at December 31, 2005 compared to $227.6 million at December 31, 2004. Cash on hand and the increase in deposits along with an increase in borrowings of $8.2 million funded the increase in loans. Commenting on the earning results, Dwight V. Neese, President and Chief Executive Officer, stated: "We are extremely pleased with our 2005 year-end results. Not only did our twelve month results show an earnings increase of 14% over the previous fiscal year, our earnings per share also rose 20%. We saw growth in loans and deposits for the year, with solid increases across the board in both our consumer and business lines. We look forward to focusing on our operations over the coming quarters and building long-term value for our shareholders." In other news, the Company has announced plans to open two more banking centers in Rock Hill at Manchester Village and Westminster Towers and to expand into Greenville County with the acquisition of an existing banking center in Simpsonville. All locations have received regulatory approval and are anticipated to open during the first half of 2006. The Company also declared a quarterly cash dividend of $0.10 per share payable on February 15, 2006 to shareholders of record on January 31, 2006. Union Financial Bancshares has a dividend reinvestment plan and information about the plan can be obtained from Registrar and Transfer Company at 800-368-5948. Union Financial Bancshares is the holding company for Provident Community Bank, N.A., which operates seven banking locations in the upstate of South Carolina. At December 31, 2005, Union Financial had $371 million in total assets and total stockholders' equity of $25.3 million. Please visit our website at www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder Relations Officer at wwells@providentonline.com or Richard H. Flake, EVP/CFO at rflake@providentonline.com. Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Corporation's actual results, see the Corporation's Quarterly Reports on Form 10-Q for the quarters ended September 30, 2005, June 30, 2005 and March 31, 2005 and the Corporation's Annual Report in Form 10-K for the year ended December 31, 2004. Union Financial Bancshares, Inc. Fourth Quarter - Year Ended December 31, 2005 - ------------------------------------------------------------------- Financial Highlights ($ in thousands, except share data) At At December December 31, 31, Balance Sheet 2005 2004 $Change % Change - -------------- ---------------------------------------- Total assets $370,795 $351,598 $19,197 5.46% Cash and interest- earning deposits 8,380 13,197 (4,817) -36.50% Investments & mortgage- backed securities 146,283 143,494 2,789 1.94% Loans receivable (net) 192,577 171,094 21,483 12.56% Goodwill & intangible assets 3,576 4,212 (636) -15.10% Deposits 239,603 227,589 12,014 5.28% Advances & other borrowings 95,715 87,500 8,215 9.39% Stockholders' equity 25,333 26,019 (686) -2.64% Outstanding shares 1,905,897 1,957,989 (52,092) -2.66% Book value per share $13.29 $13.29 $0.00 0.02% Three Months Ended Twelve Months Ended December 31, December 31, ---------------------------------------- Income Statement 2005 2004 2005 2004 - ---------------- ---------------------------------------- Net interest income $2,714 $2,561 $10,243 $9,706 Provision for loan losses 100 475 869 1,250 ---------------------------------------- Net interest income after loan loss provision 2,614 2,086 9,374 8,456 Noninterest income 601 681 2,543 2,561 Noninterest expense 2,174 1,964 8,537 8,140 Income tax 301 211 914 721 ---------------------------------------- Net income $740 $592 $2,466 $2,156 ======================================== Earnings per share: basic $0.39 $0.30 $1.29 $1.10 ======================================== Earnings per share: diluted $0.38 $0.29 $1.26 $1.05 ======================================== Twelve Months Ended December 31, ------------------- Key Financial Ratios 2005 2004 -------------------- ------------------ Return on average assets 0.68% 0.61% Return on average stockholders' equity 9.68% 8.40% Operating expense to average assets 2.17% 2.14% Capital to average assets 9.17% 9.64% CONTACT: Union Financial Bancshares, Inc. Wanda J. Wells, 864-429-1861 wwells@providentonline.com or Richard H. Flake rflake@providentonline.com -----END PRIVACY-ENHANCED MESSAGE-----