United Community Financial Corp. (Company) (NASDAQ: UCFC), parent company of Home Savings Bank (Home Savings), announced today second quarter net income of $10.5 million, an increase of 9.9% compared to the second quarter of 2018. Diluted earnings per share (“EPS”) totaled $0.215, a 13.2% improvement over the $0.190 per share reported for the quarter ended June 30, 2018.
Second quarter 2019 highlights:
- ROA of 1.48%, ROE of 13.2%, ROTE of 14.3% for the quarter
- Total loan growth of 6.1% over the last twelve months
- Average customer deposit growth of 7.7% compared to second quarter 2018
- Revenue growth of 5.8% compared to second quarter 2018
- Pretax preprovision income of $12.7 million, a 9.6% increase compared to second quarter 2018
- Efficiency ratio of 55.4%
- Declared a dividend of $0.08 per common share, an increase of 14% over the prior quarter
- Authorized an additional one million shares for repurchase
Gary M. Small, President and Chief Executive Officer of the Company commented, “The team delivered an outstanding quarter and each business line continues to contribute to our success. Balanced improvements in commercial banking, residential mortgage and our consumer business produced a very strong 9.9% net income improvement for the quarter versus the same period last year.”
Small continued, “Excellent earnings growth and an accelerated stock repurchase program combined to deliver EPS growth of 13%. Based on the strength and momentum of our performance, the board approved a 14% dividend increase. Capital management will remain a strategic priority as we are focused on delivering top tier returns for our shareholders.”
Strong Loan and Deposit Growth
Total loans grew $129.5 million (excluding loans held for sale), or 6.1%, during the previous twelve months ended June 30, 2018 and $13.8 million compared to the previous quarter. At June 30, 2019, total net loans (excluding loans held for sale) aggregated $2.23 billion.
Home Savings continues to produce excellent results over all lending categories. The increase in total loans for the period was driven by an increase in commercial loans, which grew $73.5 million, or 8.2%, over the last twelve months, remaining flat compared to the prior quarter. This was as expected due to paydowns in the commercial real estate portfolio. Mortgage loans (excluding loans held for sale and permanent construction loans) increased $54.1 million, or 6.1%, over the previous twelve months and increased $8.1 million, during the past three months.
Average quarterly customer deposits (which exclude brokered certificates of deposit) increased 7.7% from June 30, 2018 and 5.7% from March 31, 2019. The growth in average customer deposits was driven by increases in average non-interest bearing accounts of 7.6% compared to the second quarter of 2018 and 1.2% over the past three months. Secondly, increases occurred in money market accounts of 19.8% compared to the second quarter of 2018 and 17.4% over the last three months. Finally, average business deposits continue to rise, increasing 29.6% compared to the second quarter of 2018 and 8.4% over the past three months.
Net Interest Income and Margin
Net interest income totaled $22.1 million on a fully taxable equivalent (FTE) basis for the quarter ended June 30, 2019 compared to $21.4 million for the quarter ended June 30, 2018, or an increase of 3.4%. This increase is the result of growth in average earning assets of 4.3% offset by a decline in purchase accounting adjustments.
The net interest margin on an FTE basis was 3.33% for the second quarter of 2019 compared to 3.36% in the second quarter of 2018. The decline was primarily due to lower purchase accounting adjustments. Excluding the effects of purchase accounting adjustments, the net interest margin was 3.29% in the second quarter of 2019 compared to 3.28% in the second quarter of 2018.
The net interest margin on a linked quarter basis declined 5 basis points from 3.38% in the first quarter of 2019 to 3.33% in the second quarter of 2019. Two basis points of this decline was the result of lower purchase accounting adjustments. One basis point is due to increased funding costs related to treasury share repurchases. The remaining difference can be attributed to a challenging interest rate environment with an inverted treasury curve along with falling treasury rates and LIBOR.
Asset Quality Remains Strong
Asset quality remained strong during the second quarter. At June 30, 2019, nonperforming loans aggregated $12.9 million compared to $10.8 million at June 30, 2018 and $7.1 million at the end of the previous quarter. The Company’s level of nonperforming loans moved up at the end of the quarter, primarily as a result of a single credit. A substantial portion of this credit was paid off in July, which should reduce nonperforming loans to levels seen in recent quarters. The allowance for loan losses at the end of the period, as a percent of nonperforming loans was 159.1%. Net recoveries for the quarter were $87,000, or two basis points. For the six months ended June 30, 2019, net recoveries totaled $29,000. The allowance for loan losses as a percent of loans totaled 0.91% at June 30, 2019 compared to 1.01% at June 30, 2018.
The Company recognized a negative provision for loan losses of $51,000 for the second quarter of 2019, compared to a negative provision of $138,000 in the second quarter of 2018. As of June 30, 2019 the allowance for loan losses to total loans amounted to 0.91% with no change from the prior quarter. Continued asset quality combined with net recoveries for the period resulted in the negative provision for the quarter.
Non-Interest Income
Non-interest income increased 14.0%, or $819,000, to $6.7 million for the second quarter of 2019 compared to $5.9 million for the same quarter last year. The primary reason for this is an increase in mortgage banking income of $1.4 million along with solid increases in brokerage income, mortgage servicing fees and trading and security gains. This was offset by a decrease in value of mortgage servicing rights of $975,000.
The increase in mortgage banking income was primarily driven by increased margins when comparing the second quarter of 2019 to the second quarter of 2018. Pricing in the market has been much more disciplined in 2019 compared to 2018 while hedging costs for the construction loans being sold have been much lower in 2019. At this time, the Company anticipates mortgage banking margins tracking higher than in 2018 for the remainder of the year. The decrease in the mortgage servicing rights valuation was due to the dramatic drop in long term interest rates and the commensurate rise in mortgage prepayment speeds.
Non-Interest Expense
Non-interest expense was $16.0 million for the second quarter of 2019 compared to $15.5 million during the second quarter of 2018, an increase of $446,000, or 2.9%. The Company’s efficiency ratio improved to 55.4% for the current quarter versus 57.8% for the same quarter a year ago.
Small added, “We are pleased with the positive operating leverage created during the quarter given the volatile rate environment. Revenue increased 5.8% with expenses up 2.9%. We anticipate continued expansion of operational leverage over the remainder of the year.”
Effective Tax Rate
The Company’s effective tax rate on an FTE basis for the quarter ended June 30, 2019 was 18.4% compared to 19.5% for the quarter ended June 30, 2018.
Dividend to be Paid and Equity
On July 23, 2019, the Board of Directors declared a 14.3% increase to the quarterly cash dividend to $0.08 per common share payable August 13, 2019 to shareholders of record August 5, 2019. On July 23, 2019 the Board also authorized an additional one million shares to the Company’s existing share repurchase program. The Company had 727,711 shares authorized as of June 30, 2019. During the second quarter of 2019, the Company repurchased 817,000 shares for a total of 1.1 million for 2019. The average cost was $9.33 per share for the quarter and $9.36 per share for the year.
Conference Call
United Community Financial Corp. will host an earnings conference call on Wednesday, July 24, 2019, at 10:00 a.m. ET, to provide an overview of the Company's second quarter 2019 results and highlights. The conference call may be accessed by calling 1-877-272-7661 ten minutes prior to the start time. Please ask to be joined into the United Community Financial Corp. (UCFC) call. Additionally, a live webcast may be accessed from the Company’s website ir.ucfconline.com. Click on 2nd Quarter 2019 Conference Call on our corporate profile page to join the webcast.
Home Savings is a wholly owned subsidiary of the Company, offering a full line of commercial, wealth management and consumer banking products and services with 33 retail banking offices (32 in Ohio and one in Pennsylvania). Home Savings also has residential mortgage loan centers servicing Ohio, West Virginia, western Pennsylvania, northern Kentucky, and eastern Indiana. Additional information on the Company, Home Savings and James & Sons Insurance may be found on the Company’s web site: ir.ucfconline.com.
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When used in this press release, the words or phrases “believes,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project”, “will have”, “can expect” 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 the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that 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. | ||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||
| (Unaudited) | ||||||||||||
June 30, | June 30, | |||||||||||
2019 | 2018 | F/(U) | ||||||||||
(Dollars in thousands) | ||||||||||||
| Assets: | ||||||||||||
| Cash and deposits with banks | $ | 27,507 | $ | 32,584 | -15.6 | % | ||||||
| Federal funds sold | 27,055 | 34,393 | -21.3 | % | ||||||||
| Total cash and cash equivalents | 54,562 | 66,977 | -18.5 | % | ||||||||
| Securities: | ||||||||||||
| Trading, at fair value | 705 | — | 0.0 | % | ||||||||
| Available for sale, at fair value | 319,009 | 247,630 | 28.8 | % | ||||||||
| Held to maturity (fair value of $0 and $78,194, respectively) | — | 81,294 | -100.0 | % | ||||||||
| Loans held for sale, at fair value | 97,477 | 107,701 | -9.5 | % | ||||||||
| Gross loans | 2,249,808 | 2,121,186 | 6.1 | % | ||||||||
| Allowance for loan losses | (20,482 | ) | (21,405 | ) | -4.3 | % | ||||||
| Net loans | 2,229,326 | 2,099,781 | 6.2 | % | ||||||||
| Federal Home Loan Bank stock, at cost | 14,059 | 19,324 | -27.2 | % | ||||||||
| Premises and equipment, net | 22,130 | 21,645 | 2.2 | % | ||||||||
| Accrued interest receivable | 9,184 | 8,454 | 8.6 | % | ||||||||
| Real estate owned and other repossessed assets | 955 | 877 | 8.9 | % | ||||||||
| Goodwill | 20,221 | 20,221 | 0.0 | % | ||||||||
| Core deposit intangible | 1,439 | 1,769 | -18.7 | % | ||||||||
| Customer list intangible | 2,123 | 1,980 | 7.2 | % | ||||||||
| Cash surrender value of life insurance | 65,002 | 63,354 | 2.6 | % | ||||||||
| Other assets | 32,924 | 29,551 | 11.4 | % | ||||||||
| Total assets | $ | 2,869,116 | $ | 2,770,558 | 3.6 | % | ||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Liabilities: | ||||||||||||
| Deposits: | ||||||||||||
| Interest bearing | $ | 1,672,764 | $ | 1,563,043 | 7.0 | % | ||||||
| Noninterest bearing | 398,340 | 383,082 | 4.0 | % | ||||||||
| Customer deposits | 2,071,104 | 1,946,125 | 6.4 | % | ||||||||
| Brokered deposits | 188,075 | 189,220 | -0.6 | % | ||||||||
| Total deposits | 2,259,179 | 2,135,345 | 5.8 | % | ||||||||
| Borrowed funds: | ||||||||||||
| Federal Home Loan Bank advances | ||||||||||||
| Long-term advances | — | 48,927 | -100.0 | % | ||||||||
| Short-term advances | 233,000 | 248,000 | -6.0 | % | ||||||||
| Total Federal Home Loan Bank advances | 233,000 | 296,927 | -21.5 | % | ||||||||
| Repurchase agreements and other | 146 | 191 | -23.6 | % | ||||||||
| Total borrowed funds | 233,146 | 297,118 | -21.5 | % | ||||||||
| Advance payments by borrowers for taxes and insurance | 25,335 | 19,253 | 31.6 | % | ||||||||
| Accrued interest payable | 1,378 | 964 | 42.9 | % | ||||||||
| Accrued expenses and other liabilities | 32,524 | 16,394 | 98.4 | % | ||||||||
| Total liabilities | 2,551,562 | 2,469,074 | 3.3 | % | ||||||||
| Shareholders' Equity: | ||||||||||||
| Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding | — | — | 0.0 | % | ||||||||
| Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares | ||||||||||||
| issued and 48,068,790 and 49,904,074 shares, respectively, outstanding | 177,319 | 177,311 | 0.0 | % | ||||||||
| Retained earnings | 204,355 | 179,965 | 13.6 | % | ||||||||
| Accumulated other comprehensive loss | (15,180 | ) | (24,077 | ) | -37.0 | % | ||||||
| Treasury stock, at cost, 6,070,120 and 4,234,836 shares, respectively | (48,940 | ) | (31,715 | ) | 54.3 | % | ||||||
| Total shareholders’ equity | 317,554 | 301,484 | 5.3 | % | ||||||||
| Total liabilities and shareholders’ equity | $ | 2,869,116 | $ | 2,770,558 | 3.6 | % | ||||||
| UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||
2019 | 2019 | Variance | F/(U) | 2018 | Variance | F/(U) | 2019 | 2018 | Variance | F/(U) | ||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||||||||||||||||||
| Loans | $ | 26,373 | $ | 25,856 | $ | 517 | 2.0 | % | $ | 23,275 | $ | 3,098 | 13.3 | % | $ | 52,229 | $ | 46,034 | $ | 6,195 | 13.5 | % | ||||||||||||||||||||||
| Loans held for sale | 991 | 1,007 | (16 | ) | -1.6 | % | 1,012 | (21 | ) | -2.1 | % | 1,998 | 1,870 | 128 | 6.8 | % | ||||||||||||||||||||||||||||
| Securities: | ||||||||||||||||||||||||||||||||||||||||||||
| Available for sale, nontaxable | 236 | 307 | (71 | ) | -23.1 | % | 356 | (120 | ) | -33.7 | % | 544 | 744 | (200 | ) | -26.9 | % | |||||||||||||||||||||||||||
| Available for sale, taxable | 1,611 | 1,263 | 348 | 27.6 | % | 1,193 | 418 | 35.0 | % | 2,874 | 2,408 | 466 | 19.4 | % | ||||||||||||||||||||||||||||||
| Held to maturity, nontaxable | 25 | 75 | (50 | ) | -66.7 | % | 61 | (36 | ) | -59.0 | % | 100 | 112 | (12 | ) | -10.7 | % | |||||||||||||||||||||||||||
| Held to maturity, taxable | 118 | 379 | (261 | ) | -68.9 | % | 398 | (280 | ) | -70.4 | % | 497 | 820 | (323 | ) | -39.4 | % | |||||||||||||||||||||||||||
| Federal Home Loan Bank stock dividends | 245 | 290 | (45 | ) | -15.5 | % | 274 | (29 | ) | -10.6 | % | 534 | 554 | (20 | ) | -3.6 | % | |||||||||||||||||||||||||||
| Other interest earning assets | 200 | 224 | (24 | ) | -10.7 | % | 92 | 108 | 117.4 | % | 424 | 169 | 255 | 150.9 | % | |||||||||||||||||||||||||||||
| Total interest income | 29,799 | 29,401 | 398 | 1.4 | % | 26,661 | 3,138 | 11.8 | % | 59,200 | 52,711 | 6,489 | 12.3 | % | ||||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 7,197 | 6,574 | (623 | ) | -9.5 | % | 3,790 | (3,407 | ) | -89.9 | % | 13,771 | 6,887 | (6,884 | ) | -100.0 | % | |||||||||||||||||||||||||||
| Federal Home Loan Bank advances | 559 | 641 | 82 | 12.8 | % | 1,576 | 1,017 | 64.5 | % | 1,200 | 2,996 | 1,796 | 59.9 | % | ||||||||||||||||||||||||||||||
| Total interest expense | 7,756 | 7,215 | (541 | ) | -7.5 | % | 5,366 | (2,390 | ) | -44.5 | % | 14,971 | 9,883 | (5,088 | ) | -51.5 | % | |||||||||||||||||||||||||||
| Net interest income | 22,043 | 22,186 | (143 | ) | -0.6 | % | 21,295 | 748 | 3.5 | % | 44,229 | 42,828 | 1,401 | 3.3 | % | |||||||||||||||||||||||||||||
| Taxable equivalent adjustment | 62 | 84 | (22 | ) | -26.2 | % | 90 | (28 | ) | -31.1 | % | 146 | 187 | (41 | ) | -21.9 | % | |||||||||||||||||||||||||||
| Net interest income (FTE) (1) | 22,105 | 22,270 | (165 | ) | -0.7 | % | 21,385 | 720 | 3.4 | % | 44,375 | 43,015 | 1,360 | 3.2 | % | |||||||||||||||||||||||||||||
| Provision for loan losses | (51 | ) | 61 | 112 | 183.6 | % | (138 | ) | (87 | ) | 63.0 | % | 10 | 269 | 259 | 96.3 | % | |||||||||||||||||||||||||||
| Net interest income after provision for loan losses (FTE) | 22,156 | 22,209 | (53 | ) | -0.2 | % | 21,523 | 633 | 2.9 | % | 44,365 | 42,746 | 1,619 | 3.8 | % | |||||||||||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||||||||||||||||||||
| Insurance agency income | 545 | 701 | (156 | ) | -22.3 | % | 513 | 32 | 6.2 | % | 1,246 | 1,090 | 156 | 14.3 | % | |||||||||||||||||||||||||||||
| Brokerage income | 409 | 370 | 39 | 10.5 | % | 300 | 109 | 36.3 | % | 779 | 572 | 207 | 36.2 | % | ||||||||||||||||||||||||||||||
| Service fees and other charges: | ||||||||||||||||||||||||||||||||||||||||||||
| Deposit related fees | 1,417 | 1,341 | 76 | 5.7 | % | 1,392 | 25 | 1.8 | % | 2,758 | 2,692 | 66 | 2.5 | % | ||||||||||||||||||||||||||||||
| Mortgage servicing fees | 881 | 873 | 8 | 0.9 | % | 813 | 68 | 8.4 | % | 1,754 | 1,625 | 129 | 7.9 | % | ||||||||||||||||||||||||||||||
| Mortgage servicing rights valuation | (995 | ) | (499 | ) | (496 | ) | 99.4 | % | (20 | ) | (975 | ) | 4875.0 | % | (1,494 | ) | (11 | ) | 1,483 | -13481.8 | % | |||||||||||||||||||||||
| Mortgage servicing rights amortization | (553 | ) | (446 | ) | (107 | ) | 24.0 | % | (542 | ) | (11 | ) | 2.0 | % | (999 | ) | (1,042 | ) | (43 | ) | 4.1 | % | ||||||||||||||||||||||
| Other service fees | 21 | 38 | (17 | ) | -44.7 | % | 61 | (40 | ) | -65.6 | % | 59 | 99 | (40 | ) | -40.4 | % | |||||||||||||||||||||||||||
| Net gains (losses): | ||||||||||||||||||||||||||||||||||||||||||||
| Trading securities | 39 | 64 | (25 | ) | -39.1 | % | — | 39 | 0.0 | % | 103 | |||||||||||||||||||||||||||||||||
| Securities available for sale | 148 | 144 | 4 | 2.8 | % | 94 | 54 | 57.4 | % | 292 | 233 | 59 | 25.3 | % | ||||||||||||||||||||||||||||||
| Mortgage banking income | 2,631 | 1,676 | 955 | 57.0 | % | 1,205 | 1,426 | 118.3 | % | 4,307 | 2,563 | 1,744 | 68.0 | % | ||||||||||||||||||||||||||||||
| Real estate owned and other repossessed assets charges, net | (33 | ) | (31 | ) | (2 | ) | 6.5 | % | (113 | ) | 80 | -70.8 | % | (64 | ) | (191 | ) | (127 | ) | 66.5 | % | |||||||||||||||||||||||
| Debit/credit card fees | 1,221 | 934 | 287 | 30.7 | % | 1,177 | 44 | 3.7 | % | 2,156 | 2,126 | 30 | 1.4 | % | ||||||||||||||||||||||||||||||
| Trust fee income | 461 | 465 | (4 | ) | -0.9 | % | 473 | (12 | ) | -2.5 | % | 926 | 942 | (16 | ) | -1.7 | % | |||||||||||||||||||||||||||
| Bank owned life insurance | 397 | 385 | 12 | 3.1 | % | 433 | (36 | ) | -8.3 | % | 782 | 866 | (84 | ) | -9.7 | % | ||||||||||||||||||||||||||||
| Other income | 82 | 58 | 24 | 41.4 | % | 66 | 16 | 24.2 | % | 139 | 107 | 32 | 29.9 | % | ||||||||||||||||||||||||||||||
| Total non-interest income | 6,671 | 6,073 | 598 | 9.8 | % | 5,852 | 819 | 14.0 | % | 12,744 | 11,671 | 1,073 | 9.2 | % | ||||||||||||||||||||||||||||||
| Non-interest expense | ||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 9,106 | 10,575 | 1,469 | 13.9 | % | 8,937 | (169 | ) | -1.9 | % | 19,681 | 18,935 | (746 | ) | -3.9 | % | ||||||||||||||||||||||||||||
| Occupancy | 1,028 | 1,046 | 18 | 1.7 | % | 950 | (78 | ) | -8.2 | % | 2,074 | 2,050 | (24 | ) | -1.2 | % | ||||||||||||||||||||||||||||
| Equipment and data processing | 2,208 | 2,292 | 84 | 3.7 | % | 2,372 | 164 | 6.9 | % | 4,501 | 4,526 | 25 | 0.6 | % | ||||||||||||||||||||||||||||||
| Financial institutions tax | 509 | 509 | — | 0.0 | % | 495 | (14 | ) | -2.8 | % | 1,018 | 991 | (27 | ) | -2.7 | % | ||||||||||||||||||||||||||||
| Advertising | 465 | 390 | (75 | ) | -19.2 | % | 290 | (175 | ) | -60.3 | % | 854 | 525 | (329 | ) | -62.7 | % | |||||||||||||||||||||||||||
| Amortization of intangible assets | 127 | 127 | — | 0.0 | % | 132 | 5 | 3.8 | % | 255 | 245 | (10 | ) | -4.1 | % | |||||||||||||||||||||||||||||
| FDIC insurance premiums | 297 | 331 | 34 | 10.3 | % | 288 | (9 | ) | -3.1 | % | 628 | 578 | (50 | ) | -8.7 | % | ||||||||||||||||||||||||||||
| Other insurance premiums | 76 | 76 | — | 0.0 | % | 109 | 33 | 30.3 | % | 151 | 218 | 67 | 30.7 | % | ||||||||||||||||||||||||||||||
| Professional fees: | ||||||||||||||||||||||||||||||||||||||||||||
| Legal fees | 214 | 60 | (154 | ) | -256.7 | % | 147 | (67 | ) | -45.6 | % | 274 | 446 | 172 | 38.6 | % | ||||||||||||||||||||||||||||
| Other professional fees | 562 | 587 | 25 | 4.3 | % | 499 | (63 | ) | -12.6 | % | 1,150 | 890 | (260 | ) | -29.2 | % | ||||||||||||||||||||||||||||
| Supervisory fees | 34 | 34 | — | 0.0 | % | 42 | 8 | 19.0 | % | 68 | 84 | |||||||||||||||||||||||||||||||||
| Real estate owned and other repossessed asset expenses | 17 | 39 | 22 | 56.4 | % | 34 | 17 | 50.0 | % | 56 | 70 | 14 | 20.0 | % | ||||||||||||||||||||||||||||||
| Other expenses | 1,333 | 1,608 | 275 | 17.1 | % | 1,235 | (98 | ) | -7.9 | % | 2,940 | 2,572 | (368 | ) | -14.3 | % | ||||||||||||||||||||||||||||
| Total non-interest expenses | 15,976 | 17,674 | 1,698 | 9.6 | % | 15,530 | (446 | ) | -2.9 | % | 33,650 | 32,130 | (1,520 | ) | -4.7 | % | ||||||||||||||||||||||||||||
| Income before income taxes | 12,851 | 10,608 | 2,243 | 21.1 | % | 11,845 | 1,006 | 8.5 | % | 23,459 | 22,287 | 1,172 | 5.3 | % | ||||||||||||||||||||||||||||||
| Taxable equivalent adjustment | 62 | 84 | 22 | 26.2 | % | 90 | 28 | 31.1 | % | 146 | 187 | 41 | 21.9 | % | ||||||||||||||||||||||||||||||
| Income tax expense | 2,303 | 1,868 | (435 | ) | -23.3 | % | 2,214 | (89 | ) | -4.0 | % | 4,171 | 4,003 | (168 | ) | -4.2 | % | |||||||||||||||||||||||||||
| Net income | $ | 10,486 | $ | 8,656 | $ | 1,830 | 21.1 | % | $ | 9,541 | $ | 945 | 9.9 | % | $ | 19,142 | $ | 18,097 | $ | 1,045 | 5.8 | % | ||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.216 | $ | 0.177 | $ | 0.039 | 22.0 | % | $ | 0.191 | $ | 0.025 | 13.1 | % | $ | 0.393 | $ | 0.363 | $ | 0.030 | 8.3 | % | ||||||||||||||||||||||
| Diluted | 0.215 | 0.176 | 0.039 | 22.2 | % | 0.190 | 0.025 | 13.2 | % | 0.391 | 0.361 | 0.030 | 8.3 | % | ||||||||||||||||||||||||||||||
(1) | Net interest income is also presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item. | ||||||||||||
| UNITED COMMUNITY FINANCIAL CORP. | |||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCES | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||
outstanding | earned/ | Yield/ | outstanding | earned/ | Yield/ | outstanding | earned/ | Yield/ | |||||||||||||||||||
balance | paid | rate | balance | paid | rate | balance | paid | rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||
| Net loans (1) | $ | 2,207,554 | $ | 26,382 | 4.79 | % | $ | 2,191,746 | $ | 25,864 | 4.75 | % | $ | 2,075,307 | $ | 23,275 | 4.49 | % | |||||||||
| Loans held for sale | 84,210 | 991 | 4.71 | % | 84,932 | 1,007 | 4.74 | % | 91,836 | 1,012 | 4.42 | % | |||||||||||||||
| Total loans, net | 2,291,764 | 27,373 | 4.79 | % | 2,276,678 | 26,871 | 4.75 | % | 2,167,143 | 24,287 | 4.48 | % | |||||||||||||||
| Securities: | |||||||||||||||||||||||||||
| Available for sale-taxable | 243,895 | 1,611 | 2.64 | % | 200,088 | 1,263 | 2.52 | % | 207,908 | 1,193 | 2.30 | % | |||||||||||||||
| Available for sale-nontaxable (2) | 33,068 | 283 | 3.42 | % | 43,468 | 365 | 3.36 | % | 50,710 | 429 | 3.38 | % | |||||||||||||||
| Held to maturity-taxable | 31,498 | 118 | 1.50 | % | 63,674 | 379 | 2.38 | % | 70,406 | 398 | 2.26 | % | |||||||||||||||
| Held to maturity-nontaxable (2) | 6,406 | 31 | 1.94 | % | 13,047 | 93 | 2.85 | % | 11,265 | 78 | 2.77 | % | |||||||||||||||
| Total securities | 314,867 | 2,043 | 2.60 | % | 320,277 | 2,100 | 2.62 | % | 340,289 | 2,098 | 2.47 | % | |||||||||||||||
| Federal Home Loan Bank stock | 15,408 | 245 | 6.36 | % | 18,010 | 290 | 6.43 | % | 19,324 | 274 | 5.67 | % | |||||||||||||||
| Other interest earning assets | 37,240 | 200 | 2.15 | % | 34,986 | 224 | 2.59 | % | 23,831 | 92 | 1.55 | % | |||||||||||||||
| Total interest earning assets | 2,659,279 | 29,861 | 4.50 | % | 2,649,951 | 29,485 | 4.48 | % | 2,550,587 | 26,751 | 4.20 | % | |||||||||||||||
| Non-interest earning assets | 181,268 | 176,913 | 174,270 | ||||||||||||||||||||||||
| Total assets | $ | 2,840,547 | $ | 2,826,864 | $ | 2,724,857 | |||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||
| Checking accounts | $ | 734,458 | 2,138 | 1.16 | % | $ | 650,268 | 1,440 | 0.89 | % | $ | 638,910 | 948 | 0.60 | % | ||||||||||||
| Savings accounts | 293,784 | 26 | 0.04 | % | 297,410 | 29 | 0.04 | % | 307,250 | 26 | 0.03 | % | |||||||||||||||
| Certificates of deposit | |||||||||||||||||||||||||||
| Customer certificates of deposit | 645,115 | 3,231 | 2.00 | % | 618,752 | 2,824 | 1.83 | % | 608,079 | 2,143 | 1.41 | % | |||||||||||||||
| Brokered certificates of deposit | 299,747 | 1,802 | 2.40 | % | 397,137 | 2,281 | 2.30 | % | 164,400 | 673 | 1.64 | % | |||||||||||||||
| Total certificates of deposit | 944,862 | 5,033 | 2.13 | % | 1,015,889 | 5,105 | 2.01 | % | 772,479 | 2,816 | 1.46 | % | |||||||||||||||
| Total interest bearing deposits | 1,973,104 | 7,197 | 1.46 | % | 1,963,567 | 6,574 | 1.34 | % | 1,718,639 | 3,790 | 0.88 | % | |||||||||||||||
| Federal Home Loan Bank advances | |||||||||||||||||||||||||||
| Long-term advances | — | — | 0.00 | % | — | — | 0.00 | % | 48,799 | 493 | 4.05 | % | |||||||||||||||
| Short-term advances | 89,879 | 559 | 2.49 | % | 103,333 | 641 | 2.48 | % | 236,747 | 1,083 | 1.83 | % | |||||||||||||||
| Total Federal Home Loan Bank advances | 89,879 | 559 | 2.49 | % | 103,333 | 641 | 2.48 | % | 285,546 | 1,576 | 2.21 | % | |||||||||||||||
| Repurchase agreements and other | 142 | — | 0.00 | % | 233 | — | 0.00 | % | 195 | — | 0.00 | % | |||||||||||||||
| Total borrowed funds | 90,021 | 559 | 2.49 | % | 103,566 | 641 | 2.48 | % | 285,741 | 1,576 | 2.21 | % | |||||||||||||||
| Total interest bearing liabilities | $ | 2,063,125 | 7,756 | 1.50 | % | $ | 2,067,133 | 7,215 | 1.40 | % | $ | 2,004,380 | 5,366 | 1.07 | % | ||||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||||||||
| Total noninterest bearing deposits | 405,535 | 400,874 | 376,905 | ||||||||||||||||||||||||
| Other noninterest bearing liabilities | 54,622 | 43,851 | 39,839 | ||||||||||||||||||||||||
| Total noninterest bearing liabilities | 460,157 | 444,725 | 416,744 | ||||||||||||||||||||||||
| Total liabilities | $ | 2,523,282 | $ | 2,511,858 | $ | 2,421,124 | |||||||||||||||||||||
| Shareholders’ equity | 317,265 | 315,006 | 303,733 | ||||||||||||||||||||||||
| Total liabilities and equity | $ | 2,840,547 | $ | 2,826,864 | $ | 2,724,857 | |||||||||||||||||||||
| Net interest income and interest rate spread | $ | 22,105 | 3.00 | % | $ | 22,270 | 3.08 | % | $ | 21,385 | 3.12 | % | |||||||||||||||
| Net interest margin | 3.33 | % | 3.38 | % | 3.36 | % | |||||||||||||||||||||
| Average interest earning assets to average interest bearing liabilities | 128.90 | % | 128.19 | % | 127.25 | % | |||||||||||||||||||||
| Interest bearing deposits | |||||||||||||||||||||||||||
| Checking accounts | $ | 734,458 | $ | 2,138 | 1.16 | % | $ | 650,268 | $ | 1,440 | 0.89 | % | $ | 638,910 | $ | 948 | 0.60 | % | |||||||||
| Savings accounts | 293,784 | 26 | 0.04 | % | 297,410 | 29 | 0.04 | % | 307,250 | 26 | 0.03 | % | |||||||||||||||
| Customer certificates of deposit | 645,115 | 3,231 | 2.00 | % | 618,752 | 2,824 | 1.83 | % | 608,079 | 2,143 | 1.41 | % | |||||||||||||||
| Total customer deposits | 1,673,357 | 5,395 | 1.29 | % | 1,566,430 | 4,293 | 1.10 | % | 1,554,239 | 3,117 | 0.80 | % | |||||||||||||||
| Brokered certificates of deposit | 299,747 | 1,802 | 2.40 | % | 397,137 | 2,281 | 2.30 | % | 164,400 | 673 | 1.64 | % | |||||||||||||||
| Total interest bearing deposits | 1,973,104 | 7,197 | 1.46 | % | 1,963,567 | 6,574 | 1.34 | % | 1,718,639 | 3,790 | 0.88 | % | |||||||||||||||
| Noninterest bearing deposits | 405,535 | — | 0.00 | % | 400,874 | — | 0.00 | % | 376,905 | — | 0.00 | % | |||||||||||||||
| Total average deposits and cost of deposits | $ | 2,378,639 | $ | 7,197 | 1.21 | % | $ | 2,364,441 | $ | 6,574 | 1.11 | % | $ | 2,095,544 | $ | 3,790 | 0.72 | % | |||||||||
| Other interest bearing liabilities | |||||||||||||||||||||||||||
| Federal Home Loan Bank advances | |||||||||||||||||||||||||||
| Long term advances | $ | — | $ | — | 0.00 | % | $ | — | $ | — | 0.00 | % | $ | 48,799 | $ | 493 | 4.05 | % | |||||||||
| Short term advances | 89,879 | 559 | 2.49 | % | 103,333 | 641 | 2.48 | % | 236,747 | 1,083 | 1.83 | % | |||||||||||||||
| Total Federal Home Loan Bank advances | 89,879 | 559 | 2.49 | % | 103,333 | 641 | 2.48 | % | 285,546 | 1,576 | 2.21 | % | |||||||||||||||
| Repurchase agreements and other | 142 | — | 0.00 | % | 233 | — | 0.00 | % | 195 | — | 0.00 | % | |||||||||||||||
| Total borrowed funds | 90,021 | 559 | 2.49 | % | 103,566 | 641 | 2.48 | % | 285,741 | 1,576 | 2.21 | % | |||||||||||||||
| Total average deposits and other interest bearing liabilities and total cost of funds | $ | 2,468,660 | $ | 7,756 | 1.26 | % | $ | 2,468,007 | $ | 7,215 | 1.17 | % | $ | 2,381,285 | $ | 5,366 | 0.90 | % | |||||||||
| Customer deposits interest bearing and noninterest bearing | $ | 2,078,892 | $ | 5,395 | 1.04 | % | $ | 1,967,304 | $ | 4,293 | 0.87 | % | $ | 1,931,144 | $ | 3,117 | 0.65 | % | |||||||||
| Brokered deposits | 299,747 | 1,802 | 2.40 | % | 397,137 | 2,281 | 2.30 | % | 164,400 | 673 | 1.64 | % | |||||||||||||||
| Total borrowings | 90,021 | 559 | 2.49 | % | 103,566 | 641 | 2.48 | % | 285,741 | 1,576 | 2.21 | % | |||||||||||||||
| Cost of funds | 2,468,660 | 7,756 | 1.26 | % | 2,468,007 | 7,215 | 1.17 | % | 2,381,285 | 5,366 | 0.90 | % | |||||||||||||||
| (1) Nonaccrual loans are included in the average balance at a yield of 0%. |
| (2) Yields are on a fully taxable equivalent basis. |
| UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
At or for the quarters ended | ||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
| Financial Data | ||||||||||||||||||||
| Total assets | $ | 2,869,116 | $ | 2,852,041 | $ | 2,811,357 | $ | 2,789,183 | $ | 2,770,558 | ||||||||||
| Total loans, net | 2,229,326 | 2,215,549 | 2,176,842 | 2,148,942 | 2,099,781 | |||||||||||||||
| Total securities | 319,714 | 313,847 | 319,498 | 320,806 | 328,924 | |||||||||||||||
| Total deposits | 2,259,179 | 2,289,803 | 2,213,220 | 2,352,476 | 2,135,345 | |||||||||||||||
| Average interest-bearing deposits | 1,973,104 | 1,963,567 | 1,936,539 | 1,884,617 | 1,718,639 | |||||||||||||||
| Average noninterest-bearing deposits | 405,535 | 400,874 | 395,649 | 382,044 | 376,905 | |||||||||||||||
| Total shareholders' equity | 317,554 | 314,709 | 309,334 | 306,043 | 301,484 | |||||||||||||||
| Net interest income | 22,043 | 22,186 | 23,494 | 21,623 | 21,295 | |||||||||||||||
| Net interest income (FTE) (1) | 22,105 | 22,270 | 23,605 | 21,707 | 21,385 | |||||||||||||||
| Provision for loan losses | (51 | ) | 61 | 178 | 251 | (138 | ) | |||||||||||||
| Noninterest income | 6,671 | 6,073 | 5,585 | 6,146 | 5,852 | |||||||||||||||
| Noninterest expense | 15,976 | 17,674 | 17,178 | 15,772 | 15,530 | |||||||||||||||
| Income tax expense | 2,303 | 1,868 | 2,172 | 2,217 | 2,214 | |||||||||||||||
| Net income | 10,486 | 8,656 | 9,551 | 9,529 | 9,541 | |||||||||||||||
| Share Data | ||||||||||||||||||||
| Basic earnings per common share | $ | 0.216 | $ | 0.177 | $ | 0.192 | $ | 0.191 | $ | 0.191 | ||||||||||
| Diluted earnings per common share | 0.215 | 0.176 | 0.191 | 0.190 | 0.190 | |||||||||||||||
| Book value per common share | 6.61 | 6.44 | 6.30 | 6.13 | 6.04 | |||||||||||||||
| Tangible book value per common share | 6.11 | 5.95 | 5.81 | 5.65 | 5.56 | |||||||||||||||
| Market value per common share | 9.57 | 9.35 | 8.85 | 9.67 | 10.99 | |||||||||||||||
| Common shares outstanding at end of period | 48,069 | 48,853 | 49,129 | 49,923 | 49,904 | |||||||||||||||
| Weighted average shares outstanding--basic | 48,463 | 48,854 | 49,445 | 49,683 | 49,694 | |||||||||||||||
| Weighted average shares outstanding--diluted | 48,644 | 49,113 | 49,695 | 49,947 | 49,944 | |||||||||||||||
| Key Ratios | ||||||||||||||||||||
| Return on average assets (2) | 1.48 | % | 1.22 | % | 1.36 | % | 1.37 | % | 1.40 | % | ||||||||||
| Return on average equity (3) | 13.22 | % | 10.99 | % | 12.15 | % | 12.25 | % | 12.56 | % | ||||||||||
| Return on tangible equity (4) | 14.30 | % | 11.90 | % | 13.16 | % | 13.28 | % | 13.65 | % | ||||||||||
| Net interest margin | 3.33 | % | 3.38 | % | 3.58 | % | 3.33 | % | 3.36 | % | ||||||||||
| Efficiency ratio | 55.37 | % | 62.29 | % | 54.79 | % | 57.30 | % | 57.75 | % | ||||||||||
| Nonperforming loans to net loans, end of period | 0.58 | % | 0.32 | % | 0.30 | % | 0.42 | % | 0.51 | % | ||||||||||
| Nonperforming assets to total assets, end of period | 0.48 | % | 0.34 | % | 0.27 | % | 0.36 | % | 0.57 | % | ||||||||||
| Allowance for loan loss as a percent of loans, end of period | 0.91 | % | 0.91 | % | 0.93 | % | 0.98 | % | 1.01 | % | ||||||||||
| Delinquent loans to total net loans, end of period | 0.58 | % | 0.41 | % | 0.50 | % | 0.69 | % | 0.67 | % | ||||||||||
| ______________________________ | ||||||||||||||||||||
(1) | Net interest income is presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item | |||||||||
(2) | Net income divided by average total assets | |||||||||
(3) | Net income divided by average total equity | |||||||||
(4) | Net income divided by average total equity, minus average intangible assets | |||||||||
| UNITED COMMUNITY FINANCIAL CORP. | |||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
At or for the quarters ended | |||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
| Loan Portfolio Composition | |||||||||||||||||||||
| Commercial loans | |||||||||||||||||||||
| Multi-family | $ | 154,630 | $ | 163,243 | $ | 134,143 | $ | 139,938 | $ | 141,004 | |||||||||||
| Owner/nonowner occupied commercial real estate | 414,780 | 412,550 | 409,979 | 408,938 | 396,624 | ||||||||||||||||
| Land | 16,955 | 17,090 | 16,830 | 16,129 | 16,887 | ||||||||||||||||
| Construction | 138,043 | 135,048 | 141,686 | 132,961 | 127,691 | ||||||||||||||||
| Commercial and industrial | 249,898 | 246,740 | 240,293 | 233,801 | 218,611 | ||||||||||||||||
Total | 974,306 | 974,671 | 942,931 | 931,767 | 900,817 | ||||||||||||||||
| Residential mortgage loans | |||||||||||||||||||||
| Real estate | 942,698 | 934,586 | 927,255 | 909,626 | 888,583 | ||||||||||||||||
| Construction | 46,196 | 45,102 | 43,435 | 39,396 | 40,623 | ||||||||||||||||
Total | 988,894 | 979,688 | 970,690 | 949,022 | 929,206 | ||||||||||||||||
| Consumer loans | |||||||||||||||||||||
| Consumer | 279,531 | 274,998 | 277,041 | 283,108 | 284,909 | ||||||||||||||||
| Total | 279,531 | 274,998 | 277,041 | 283,108 | 284,909 | ||||||||||||||||
| Total loans | 2,242,731 | 2,229,357 | 2,190,662 | 2,163,897 | 2,114,932 | ||||||||||||||||
| Less: | |||||||||||||||||||||
| Allowance for loan losses | 20,482 | 20,446 | 20,443 | 21,332 | 21,405 | ||||||||||||||||
| Deferred loan costs, net | (7,077 | ) | (6,638 | ) | (6,623 | ) | (6,377 | ) | (6,254 | ) | |||||||||||
| Total | 13,405 | 13,808 | 13,820 | 14,955 | 15,151 | ||||||||||||||||
| Total loans, net | 2,229,326 | 2,215,549 | 2,176,842 | 2,148,942 | 2,099,781 | ||||||||||||||||
| Loans held for sale, net | 97,477 | 77,676 | 91,472 | 95,235 | 107,701 | ||||||||||||||||
| Total loans | $ | 2,326,803 | $ | 2,293,225 | $ | 2,268,314 | $ | 2,244,177 | $ | 2,207,482 | |||||||||||
At or for the quarters ended | |||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
| Deposit Portfolio Composition | |||||||||||||||||||||
| Checking accounts | |||||||||||||||||||||
| Interest bearing checking accounts | $ | 131,725 | $ | 146,244 | $ | 146,977 | $ | 140,722 | $ | 138,812 | |||||||||||
| Non-interest bearing checking accounts | 398,340 | 404,644 | 394,208 | 383,535 | 383,082 | ||||||||||||||||
| Total checking accounts | 530,065 | 550,888 | 541,185 | 524,257 | 521,894 | ||||||||||||||||
| Savings accounts | 290,354 | 297,186 | 298,087 | 300,007 | 306,283 | ||||||||||||||||
| Money market accounts | 606,661 | 550,049 | 466,167 | 489,668 | 502,560 | ||||||||||||||||
| Total non-time deposits | 1,427,080 | 1,398,123 | 1,305,439 | 1,313,932 | 1,330,737 | ||||||||||||||||
| Certificates of deposit | 644,024 | 630,174 | 616,826 | 622,807 | 615,388 | ||||||||||||||||
| Total customer deposits | 2,071,104 | 2,028,297 | 1,922,265 | 1,936,739 | 1,946,125 | ||||||||||||||||
| Brokered deposits | 188,075 | 261,506 | 290,955 | 415,737 | 189,220 | ||||||||||||||||
| Total certificates of deposit | 832,099 | 891,680 | 907,781 | 1,038,544 | 804,608 | ||||||||||||||||
| Total deposits | $ | 2,259,179 | $ | 2,289,803 | $ | 2,213,220 | $ | 2,352,476 | $ | 2,135,345 | |||||||||||
| UNITED COMMUNITY FINANCIAL CORP. | ||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
At or for the quarters ended | ||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
| Allowance For Loan Losses | ||||||||||||||||||||
| Beginning balance | $ | 20,446 | $ | 20,443 | $ | 21,332 | $ | 21,405 | $ | 21,610 | ||||||||||
| Provision | (51 | ) | 61 | 178 | 251 | (138 | ) | |||||||||||||
| Net recoveries (chargeoffs) | 87 | (58 | ) | (1,067 | ) | (324 | ) | (67 | ) | |||||||||||
| Ending balance | $ | 20,482 | $ | 20,446 | $ | 20,443 | $ | 21,332 | $ | 21,405 | ||||||||||
At or for the quarters ended | ||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
| Net Recoveries (Charge-offs) | ||||||||||||||||||||
| Commercial loans | ||||||||||||||||||||
| Multi-family | $ | 4 | $ | 113 | $ | (99 | ) | $ | 4 | $ | 9 | |||||||||
| Owner/nonowner occupied commercial real estate | 165 | 28 | 38 | 12 | 29 | |||||||||||||||
| Land | — | — | — | 150 | — | |||||||||||||||
| Construction | — | 1 | — | 11 | 10 | |||||||||||||||
| Commercial and industrial | 1 | (84 | ) | (765 | ) | (275 | ) | (72 | ) | |||||||||||
| Total | 170 | 58 | (826 | ) | (98 | ) | (24 | ) | ||||||||||||
| Residential mortgage loans | ||||||||||||||||||||
| Real estate | (53 | ) | 78 | (131 | ) | (141 | ) | (14 | ) | |||||||||||
| Construction | — | — | — | — | — | |||||||||||||||
| Total | (53 | ) | 78 | (131 | ) | (141 | ) | (14 | ) | |||||||||||
| Consumer loans | ||||||||||||||||||||
| Consumer | (30 | ) | (194 | ) | (110 | ) | (85 | ) | (29 | ) | ||||||||||
| Total | (30 | ) | (194 | ) | (110 | ) | (85 | ) | (29 | ) | ||||||||||
| Total net chargeoffs | $ | 87 | $ | (58 | ) | $ | (1,067 | ) | $ | (324 | ) | $ | (67 | ) | ||||||
At or for the quarters ended | ||||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
| Nonperforming Loans | ||||||||||||||||||||
| Commercial loans | ||||||||||||||||||||
| Multi-family | $ | — | $ | — | $ | 171 | $ | 275 | $ | 275 | ||||||||||
| Owner/nonowner occupied commercial real estate | 2,688 | 1,565 | 13 | 1,101 | 1,111 | |||||||||||||||
| Land | — | — | — | — | — | |||||||||||||||
| Construction | — | — | — | — | — | |||||||||||||||
| Commercial and industrial | 4,678 | 456 | 531 | 1,489 | 1,475 | |||||||||||||||
| Total | 7,366 | 2,021 | 715 | 2,865 | 2,861 | |||||||||||||||
| Residential mortgage loans | ||||||||||||||||||||
| Real estate | 4,365 | 3,883 | 4,170 | 4,426 | 6,146 | |||||||||||||||
| Construction | — | — | — | — | — | |||||||||||||||
| Total | 4,365 | 3,883 | 4,170 | 4,426 | 6,146 | |||||||||||||||
| Consumer loans | ||||||||||||||||||||
| Consumer | 1,141 | 1,203 | 1,654 | 1,770 | 1,783 | |||||||||||||||
| Total | 1,141 | 1,203 | 1,654 | 1,770 | 1,783 | |||||||||||||||
| Total nonperforming loans | $ | 12,872 | $ | 7,107 | $ | 6,539 | $ | 9,061 | $ | 10,790 | ||||||||||
| Total Nonperforming Loans and Nonperforming Assets | ||||||||||||||||||||
| Past due 90 days and on nonaccrual status | $ | 5,392 | $ | 4,351 | $ | 5,732 | $ | 8,200 | $ | 8,395 | ||||||||||
| Past due 90 days and still accruing | — | — | 18 | — | — | |||||||||||||||
| Past due 90 days | 5,392 | 4,351 | 5,750 | 8,200 | 8,395 | |||||||||||||||
| Past due less than 90 days and on nonaccrual | 7,480 | 2,756 | 789 | 861 | 2,395 | |||||||||||||||
| Total nonperforming loans | 12,872 | 7,107 | 6,539 | 9,061 | 10,790 | |||||||||||||||
| Other real estate owned | 871 | 1,143 | 1,049 | 907 | 802 | |||||||||||||||
| Other classified assets | — | 1,479 | — | — | 4,050 | |||||||||||||||
| Repossessed assets | 84 | 37 | 39 | — | 75 | |||||||||||||||
| Total nonperforming assets | $ | 13,827 | $ | 9,766 | $ | 7,627 | $ | 9,968 | $ | 15,717 | ||||||||||
| UNITED COMMUNITY FINANCIAL CORP. | |||||||||||||||||||
| NON-GAAP DISCLOSURE RECONCILIATION | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Reconciliation of Average Shareholders' Equity to Average Tangible Equity: | |||||||||||||||||||
At or for the quarters ended | |||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
| Average shareholders equity | $ | 317,265 | $ | 315,006 | $ | 314,464 | $ | 311,058 | $ | 303,733 | |||||||||
| Average intangible assets | 23,867 | 23,994 | 24,123 | 24,144 | 24,063 | ||||||||||||||
| Average tangible equity | $ | 293,398 | $ | 291,012 | $ | 290,341 | $ | 286,914 | $ | 279,670 | |||||||||
| Net income | $ | 10,486 | $ | 8,656 | $ | 9,551 | $ | 9,529 | $ | 9,541 | |||||||||
| Return on tangible equity | 14.30 | % | 11.90 | % | 13.16 | % | 13.28 | % | 13.65 | % | |||||||||
| Reconciliation of Fully Taxable Equivalent Net Interest Income to Net Interest Income: | |||||||||||||||||||
For the quarters ended | |||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
| Interest income | $ | 29,799 | $ | 29,401 | $ | 30,170 | $ | 27,690 | $ | 26,661 | |||||||||
| Fully taxable equivalent adjustment | 62 | 84 | 111 | 84 | 90 | ||||||||||||||
| Fully taxable equivalent interest income | 29,861 | 29,485 | 30,281 | 27,774 | 26,751 | ||||||||||||||
| Interest expense | 7,756 | 7,215 | 6,676 | 6,067 | 5,366 | ||||||||||||||
| Fully taxable net interest income | $ | 22,105 | $ | 22,270 | $ | 23,605 | $ | 21,707 | $ | 21,385 | |||||||||
| Tangible Book Value Per Share: | |||||||||||||||||||
| Tangible book value, per share is defined at shareholders equity minus intangible assets divided by the number of shares outstanding. | |||||||||||||||||||
At the quarters ended | |||||||||||||||||||
June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | June 30, 2018 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
| Total shareholders' equity | $ | 317,554 | $ | 314,709 | $ | 309,334 | $ | 306,043 | $ | 301,484 | |||||||||
| Goodwill | 20,221 | 20,221 | 20,221 | 20,221 | 20,221 | ||||||||||||||
| Customer list intangible | 2,123 | 2,169 | 2,214 | 2,259 | 1,980 | ||||||||||||||
| Core deposit intangible | 1,439 | 1,521 | 1,603 | 1,686 | 1,769 | ||||||||||||||
| Total common shares outstanding | 48,068,790 | 48,852,688 | 49,128,875 | 49,922,514 | 49,904,074 | ||||||||||||||
| Tangible book value, as reported | $ | 6.11 | $ | 5.95 | $ | 5.81 | $ | 5.65 | $ | 5.56 | |||||||||
| Reconciliation of Net Interest Margin, Non-Interest Income and Non-Interest Expense: | |||||||||||||||||||
At the quarters ended | At the quarters ended | ||||||||||||||||||
June 30, 2019 | June 30, 2018 | March 31, 2019 | March 31, 2018 | ||||||||||||||||
| Net interest income (FTE) | $ | 22,105 | $ | 21,385 | $ | 22,270 | $ | 21,630 | |||||||||||
| less: impact of loan payoff | - | (588 | ) | ||||||||||||||||
| less: purchase accounting | (271 | ) | (463 | ) | (360 | ) | (545 | ) | |||||||||||
| Adjusted net interest income | 21,834 | 20,922 | 21,910 | 20,497 | |||||||||||||||
| Average earning assets | 2,659,279 | 2,550,587 | 2,649,951 | 2,496,673 | |||||||||||||||
| Net interest margin excluding purchase accounting | 3.29 | % | 3.28 | % | 3.32 | % | 3.30 | % | |||||||||||
| Non-interest income | $ | 6,671 | $ | 5,852 | $ | 6,073 | $ | 5,819 | |||||||||||
| less: mortgage servicing valuation adjustment | 995 | 20 | 499 | (9 | ) | ||||||||||||||
| Non-interest income, adjusted | 7,666 | 5,872 | 6,572 | 5,810 | |||||||||||||||
| Non-interest income % increase | 30.6 | % | 13.1 | % | |||||||||||||||
| Non-interest expense | $ | 15,976 | $ | 15,530 | $ | 17,674 | $ | 16,600 | |||||||||||
| Non-interest expense % increase | 2.9 | % | 2.6 | % | |||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190723005893/en/
Contacts:
Kathy Bushway
Senior Vice President, Marketing
Home Savings Bank
(330) 742-0638
kbushway@homesavings.com
