-----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, KgEDZBjzBlFEg/e1AuUgLCoguVO9sp3hYW97Pz4e8dn4u8M9GDditdG0TiM3NXsm Esb1BHJk19nuTOjlEaCtGg== 0001157523-06-003821.txt : 20060419 0001157523-06-003821.hdr.sgml : 20060419 20060419161115 ACCESSION NUMBER: 0001157523-06-003821 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060419 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060419 DATE AS OF CHANGE: 20060419 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: 06767409 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 a5127318.txt UNION FINANCIAL BANCSHARES, INC. 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): April 19, 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 April 19, 2006, Union Financial Bancshares, Inc., the holding company for Provident Community Bank, N.A., announced its financial results for the quarter ending March 31, 2006. The press release announcing financial results for the quarter ending March 31, 2006 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) Shell Company Transactions: Not applicable (d) Exhibits Number Description ------ ----------- 99.1 Press Release Dated April 19, 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: April 19, 2006 By: /s/ Dwight V. Neese ----------------------------- Dwight V. Neese President and Chief Executive Officer EX-99.1 2 a5127318ex99_1.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Union Financial Bancshares, Inc. Reports 30% Increase in First Quarter Earnings UNION, S.C--(BUSINESS WIRE)--April 19, 2006--Union Financial Bancshares, Inc. (NASDAQ: UFBS) today reported earnings of $699,000 for the three months ended March 31, 2006 compared to earnings of $539,000 for the first quarter of 2005, a 29.7% increase. Earnings per share were $0.36 per share (diluted) for the first quarter of 2006, versus $0.27 per share (diluted) for the first quarter of 2005. Net interest income before the loan loss provision for the first quarter increased $204,000, or 8.3%, 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 the yield on loans that resulted from a higher concentration of consumer and commercial loans. The increase in interest income was partially offset by higher deposit costs as a result of an increase in balances and rising rates. The provision for loan losses for the first quarter totaled $175,000 compared to $208,000 for the same period in the previous year. The decrease in provision for loan losses 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 14.4% 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 first quarter increased $109,000, or 18.9%, to $686,000 compared to $577,000 for the same period in the previous year. The increase was due to higher fees generated from third party investment brokerage and financing receivables programs due to an increase in product volumes, along with higher fees for financial services that resulted from an increase in transaction accounts. Non-interest expense for the first quarter increased $84,000, or 4.0%, to $2.2 million compared to $2.1 million for the same period in the previous year. The increase was due primarily to higher compensation and benefits costs for normal merit salary increases and the opening of a new banking center location in Simpsonville, South Carolina. At March 31, 2006, assets totaled $368.1 million, a 0.8% decrease from $371.0 million at December 31, 2005. Net loans receivable increased $9.1 million, or 4.7%, during the period to $201.7 million at March 31, 2006, compared to $192.6 million at December 31, 2005. The net growth in loans was driven by a 9.3% increase in the consumer/commercial loan portfolio as the Company continues to focus on these lending segments with specialized loan officers and products. Growth in lower cost transaction accounts resulted in deposits increasing 6.1% to $254.2 million at March 31, 2006 compared to $239.6 million at December 31, 2005. Reductions in lower yielding investments and mortgage-backed securities of $11 million and the increase in deposits funded the increase in loans and a reduction in borrowings of $16.7 million. Commenting on the results, Dwight V. Neese, President and Chief Executive Officer, stated: "We are delighted to be able to report another quarter of very positive results. Loan growth has been strong and asset quality trends are improving. We have continued to grow deposits even while focusing on transactional accounts. These positive trends are all reflected in our first quarter results of a 30% increase in net income over the previous year period with earnings per share increasing 33%. Overall, we are very pleased with the results of the first quarter." The Company is moving forward in the construction of a third Rock Hill banking center location in Manchester Village that is expected to open in the third quarter of 2006. This follows the recent openings of a satellite office in Westminster Towers in Rock Hill and a full-service banking center in Simpsonville. The Company also announced a 10% increase in the quarterly dividend from $0.10 to $0.11 per share payable on May 15, 2006 to shareholders of record on April 28, 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 nine banking locations in the upstate of South Carolina. At March 31, 2006, Union Financial had $368 million in total assets and total stockholders= equity of $24.8 million. Please visit our website at www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder Relations Officer at wwells@providentonline.com or Richard H. Flake, EVP/CFO at rflake@providentonline.com. Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Corporation's actual results, see the Corporation's Quarterly Reports on Form 10-Q for the quarters ended September 30, 2005, June 30, 2005 and March 31, 2005 and the Corporation's Annual Report in Form 10-K for the year ended December 31, 2005. - ---------------------------------------------------------------------- Union Financial Bancshares, Inc. First Quarter - Year Ending December 31, 2006 - ---------------------------------------------------------------------- Financial Highlights (Unaudited) ($ in thousands, except share data) At At Balance Sheet 3/31/06 12/31/05 $ Change % Change - -------------------- ----------- ---------- ----------------- Total assets $ 368,175 $ 371,042 -$2,867 -0.77% Cash and due from banks 8,004 8,380 -376 -4.49% Investments & mortgage- backed securities 135,303 146,283 -10,980 -7.51% Loans receivable (net) 201,705 192,577 9,128 4.74% Goodwill and intangible assets 3,417 3,576 -159 -4.45% Deposits 254,218 239,603 14,615 6.10% Advances and other borrowings 79,000 95,715 -16,715 -17.46% Stockholders' equity 24,832 25,333 -501 -1.98% Outstanding shares 1,897,259 1,905,897 -8,638 -0.45% Book value per share $ 13.09 $ 13.29 -$0.20 -1.53% Three Months Ended March 31, ------------------------------------------ Income Statement 2006 2005 $ Change % Change - ---------------------------- ----------- ---------- ----------------- Net interest income $ 2,654 $ 2,450 $ 204 8.33% Provision for loan losses 175 208 -33 -15.87% ----------- ---------- ----------------- Net interest income after loan loss provision 2,479 2,242 237 10.57% Non-interest income 686 577 109 18.89% Non-interest expense 2,186 2,102 84 4.00% Income tax 280 178 102 57.30% ----------- ---------- ----------------- Net income $ 699 $ 539 $ 160 29.68% =========== ========== ================= Earnings per share: basic $ 0.37 $ 0.28 $ 0.09 32.14% =========== ========== ================= Earnings per share: diluted $ 0.36 $ 0.27 $ 0.09 33.33% =========== ========== ================= Weighted Average Number of Common Shares Outstanding Basic 1,896,210 1,928,946 Diluted 1,917,866 1,992,002 Three Months Ended March 31, ----------------------- Key Financial Ratios 2006 2005 -------------------- ----------------------- Return on average assets 0.75% 0.61% Return on average stockholders' equity 11.10% 8.43% Operating expense to average assets 2.19% 2.19% Capital to average assets 8.86% 9.16% CONTACT: Union Financial Bancshares, Inc. Dwight V. Neese, 864-429-1863 -----END PRIVACY-ENHANCED MESSAGE-----