UCFC - UCFC Announces Strong Earnings for the First Quarter and a Dividend of $0.07 Per Common Share
United Community Financial Corp. (Company) (NASDAQ: UCFC), parent company of Home Savings Bank (Home Savings), today announced net income of $8.7 million, or $0.176 per diluted common share (“EPS”) for the three months ended March 31, 2019, compared to $0.171 EPS, or $8.6 million for the three months ended March 31, 2018.
First quarter 2019 highlights:
- ROA of 1.22%, ROE of 10.99% and ROTE of 11.90%
- Net loan growth of 7.1%, annualized on a linked quarter basis
- Average customer deposit growth of 6.1% comparing first quarter 2019 to first quarter 2018
- Net interest margin of 3.38%
- Noninterest income growth of 4.4% comparing first quarter 2019 to first quarter 2018, 13.1% when adjusted for a change in mortgage servicing rights valuation
- Repurchase of 328,000 shares, or approximately 0.7% of outstanding shares
Gary M. Small, President and Chief Executive Officer of the Company commented, “We are pleased with Q1 performance as our loan and deposit growth came in right on target, margin met expectations during an unpredictable interest rate environment, and our residential mortgage, wealth and insurance business units experienced strong revenue growth.”
Small further commented, “The year began a bit softer than normal as clients seemed to strike a cautious stance while evaluating the impact of Q4 market uncertainty. Activity levels picked up over the course of the quarter, the residential mortgage business began to benefit from the lower rate environment, and we enter Q2 in a good position.”
Solid Loan Growth
Total net loans grew $38.7 million on a linked quarter basis, or 7.1% annualized, in the first quarter of 2019. Commercial loan growth was $31.7 million for the quarter ended March 31, 2019, an annualized growth rate of 13.5% on a linked quarter basis. Residential mortgage loans increased $9.0 million when comparing the linked quarters, or 3.7% annualized.
Strong Business Deposit and Noninterest Bearing Deposit Growth
Average customer deposit growth was 6.1% when comparing the first quarter of 2019 to the first quarter of 2018. Average noninterest bearing deposits grew $31.3 million, or 8.4%, from March of 2018 to March of 2019 while average business deposits grew $58.8 million, or 24.0%, and average public funds grew $29.2 million, or 27.5%, over this same time frame.
Net Interest Income and Margin
Net interest income totaled $22.3 million on a fully taxable equivalent (FTE) basis for the quarter ended March 31, 2019, compared to $21.6 million for the quarter ended March 31, 2018, an increase of 3.0%. First quarter 2018 net interest income includes a onetime fee recognition from the early payoff of a single loan and a higher level of purchase accounting accretion income versus 2019. Adjusting for these two items, the increase in first quarter net interest income would be 7.0%.
The net interest margin on an FTE basis was 3.38% for the first quarter of 2019 compared to 3.47% for the similar period last year. The net interest margin during the first quarter of 2018 was positively impacted by the payoff of a single loan that added approximately 8 basis points to the reported margin. Also included in the margin for both years are purchase accounting yield adjustments aggregating 6 and 9 basis points respectively for 2019 and 2018. Absent of both the early payoff and the purchase accounting adjustments the net interest margin for the first quarter of 2019 would be 3.32% compared to 3.30% for the same time period last year.
Non-Interest Income
Non-interest income increased to $6.1 million in the first quarter of 2019, compared to $5.8 million in the first quarter of 2018, an increase of 4.4%. Excluding the unfavorable mortgage servicing rights valuation adjustment in the first quarter of 2019, non-interest income would have increased by 13.1%. Mortgage banking income was up 23.4%. Insurance agency income was up 21.5% along with wealth fees being up 12.6%. These increases helped offset the impact of the negative mortgage servicing rights valuation adjustment.
Non-Interest Expense
Non-interest expense was $17.7 million for the quarter ended March 31, 2019 compared to $16.6 million for the quarter ended March 31, 2018, or a 6.5% increase. Non-interest expense for the first quarter of 2019 also included charges of $650,000 for organizational restructuring of the retail and wealth business units. Absent of the organizational restructure charges the increase in non-interest expense is 2.6% for the same period. The Company’s efficiency ratio was 62.29%.
Credit Quality
Credit quality metrics continue to show very favorably during the first quarter of 2019. The ratio of nonperforming loans to net loans was 0.32% at March 31, 2019, which is down from 0.59% reported at March 31, 2018. Total nonperforming commercial loans remain low at $2.0 million as of March 31, 2019 or 0.20% of total commercial loans. Total nonperforming assets to assets was 0.34% at March 31, 2019, while total delinquent loans to net loans was 0.41% for the same period. These ratios were 0.65% and 0.81%, respectively, at March 31, 2018.
During the quarter ended March 31, 2019, the Company recognized total net charge offs of $58,000 or one basis point as a percentage of average loans.
The Company’s provision for loan losses totaled $61,000 for the first quarter of 2019, which was down from the $407,000 reported in the first quarter of 2018. As of March 31, 2019, the Company’s allowance for loan losses to total loans was 0.91%, versus 1.04% at March 31, 2018. Also at March 31, 2019 the allowance for loan loss as a percent of nonperforming loans totaled 287.7%.
Loans acquired through acquisition during the first quarter of 2017 were recorded at fair value. When combining the remaining fair value adjustment of $1.7 million and the Company’s allowance, the Company’s allowance as a percentage total loans increases to .99%.
Capital Management and Tangible Book Value per Share
During the first quarter of 2019, the Company repurchased 328,000 shares. The Company had remaining 1,545,000 shares authorized for repurchase as of March 31, 2019. Tangible book value per common share at March 31, 2019 was $5.95 compared to $5.45 at March 31, 2018.
Dividend Declaration
On April 16, 2019, the Board of Directors declared a quarterly cash dividend of $0.07 per common share. The dividend is payable May 10, 2019 to shareholders of record at the close of business April 29, 2019.
Conference Call
United Community Financial Corp. will host an earnings conference call on Wednesday, April 17, 2019, at 10:00 a.m. ET., to provide an overview of the Company's first 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 1st Quarter 2019 Conference Call on the corporate profile page to join the webcast.
United Community Financial Corp.
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 is available at ir.ucfconline.com.
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) |
| March 31, |
| March 31, |
| 2019 |
| 2018 |
| F/(U) |
| (Dollars in thousands) |
| Assets: |
| Cash and deposits with banks |
| $ |
| 41,920 |
| $ |
| 27,683 |
| 51.4 |
| % |
| Federal funds sold |
| 35,277 |
| 19,058 |
| 85.1 |
| % |
| Total cash and cash equivalents |
| 77,197 |
| 46,741 |
| 65.2 |
| % |
| Securities: |
| Trading, at fair value |
| 666 |
| — |
| 0.0 |
| % |
| Available for sale, at fair value |
| 237,421 |
| 257,908 |
| -7.9 |
| % |
| Held to maturity (fair value of $74,748 and $78,033, respectively) |
| 75,760 |
| 80,685 |
| -6.1 |
| % |
| Loans held for sale, at fair value |
| 77,676 |
| 79,292 |
| -2.0 |
| % |
| Gross loans |
| 2,235,995 |
| 2,083,053 |
| 7.3 |
| % |
| Allowance for loan losses |
| (20,446 |
| ) |
| (21,610 |
| ) |
| -5.4 |
| % |
| Net loans |
| 2,215,549 |
| 2,061,443 |
| 7.5 |
| % |
| Federal Home Loan Bank stock, at cost |
| 16,702 |
| 19,324 |
| -13.6 |
| % |
| Premises and equipment, net |
| 22,012 |
| 21,795 |
| 1.0 |
| % |
| Accrued interest receivable |
| 8,873 |
| 7,615 |
| 16.5 |
| % |
| Real estate owned and other repossessed assets |
| 1,180 |
| 1,293 |
| -8.7 |
| % |
| Goodwill |
| 20,221 |
| 20,221 |
| 0.0 |
| % |
| Core deposit intangible |
| 1,521 |
| 1,851 |
| -17.8 |
| % |
| Customer list intangible |
| 2,169 |
| 2,030 |
| 6.8 |
| % |
| Cash surrender value of life insurance |
| 64,606 |
| 62,922 |
| 2.7 |
| % |
| Other assets |
| 30,488 |
| 27,587 |
| 10.5 |
| % |
| Total assets |
| $ |
| 2,852,041 |
| $ |
| 2,690,707 |
| 6.0 |
| % |
| Liabilities and Shareholders' Equity |
| Liabilities: |
| Deposits: |
| Interest bearing |
| $ |
| 1,623,653 |
| $ |
| 1,528,262 |
| 6.2 |
| % |
| Noninterest bearing |
| 404,644 |
| 376,904 |
| 7.4 |
| % |
| Customer deposits |
| 2,028,297 |
| 1,905,166 |
| 6.5 |
| % |
| Brokered deposits |
| 261,506 |
| 161,812 |
| 61.6 |
| % |
| Total deposits |
| 2,289,803 |
| 2,066,978 |
| 10.8 |
| % |
| Borrowed funds: |
| Federal Home Loan Bank advances |
| Long-term advances |
| — |
| 48,731 |
| -100.0 |
| % |
| Short-term advances |
| 204,000 |
| 245,000 |
| -16.7 |
| % |
| Total Federal Home Loan Bank advances |
| 204,000 |
| 293,731 |
| -30.5 |
| % |
| Repurchase agreements and other |
| 254 |
| 233 |
| 9.0 |
| % |
| Total borrowed funds |
| 204,254 |
| 293,964 |
| -30.5 |
| % |
| Advance payments by borrowers for taxes and insurance |
| 19,542 |
| 18,444 |
| 6.0 |
| % |
| Accrued interest payable |
| 1,492 |
| 1,363 |
| 9.5 |
| % |
| Accrued expenses and other liabilities |
| 22,241 |
| 13,763 |
| 61.6 |
| % |
| Total liabilities |
| 2,537,332 |
| 2,394,512 |
| 6.0 |
| % |
| 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 48,852,688 and 49,882,491 shares, respectively, outstanding |
| 177,410 |
| 177,297 |
| 0.1 |
| % |
| Retained earnings |
| 197,286 |
| 173,419 |
| 13.8 |
| % |
| Accumulated other comprehensive loss |
| (18,416 |
| ) |
| (22,675 |
| ) |
| -18.8 |
| % |
| Treasury stock, at cost, 5,286,222 and 4,256,419 shares, respectively |
| (41,571 |
| ) |
| (31,846 |
| ) |
| 30.5 |
| % |
| Total shareholders’ equity |
| 314,709 |
| 296,195 |
| 6.3 |
| % |
| Total liabilities and shareholders’ equity |
| $ |
| 2,852,041 |
| $ |
| 2,690,707 |
| 6.0 |
| % |
| UNITED COMMUNITY FINANCIAL CORP. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| For the Three Months Ended |
| March 31, |
| December 31, |
| March 31, |
| 2019 |
| 2018 |
| Variance |
| F/(U) |
| 2018 |
| Variance |
| F/(U) |
| (Dollars in thousands, except per share data) |
| Interest income |
| Loans |
| $ |
| 25,856 |
| $ |
| 26,587 |
| $ |
| (731 |
| ) |
| -2.7 |
| % |
| $ |
| 22,759 |
| $ |
| 3,097 |
| 13.6 |
| % |
| Loans held for sale |
| 1,007 |
| 1,184 |
| (177 |
| ) |
| -14.9 |
| % |
| 858 |
| 149 |
| 17.4 |
| % |
| Securities: |
| Available for sale, nontaxable |
| 307 |
| 334 |
| (27 |
| ) |
| -8.1 |
| % |
| 388 |
| (81 |
| ) |
| -20.9 |
| % |
| Available for sale, taxable |
| 1,263 |
| 1,148 |
| 115 |
| 10.0 |
| % |
| 1,215 |
| 48 |
| 4.0 |
| % |
| Held to maturity, nontaxable |
| 75 |
| 69 |
| 6 |
| 8.7 |
| % |
| 51 |
| 24 |
| 47.1 |
| % |
| Held to maturity, taxable |
| 379 |
| 380 |
| (1 |
| ) |
| -0.3 |
| % |
| 422 |
| (43 |
| ) |
| -10.2 |
| % |
| Federal Home Loan Bank stock dividends |
| 290 |
| 290 |
| — |
| 0.0 |
| % |
| 280 |
| 10 |
| 3.6 |
| % |
| Other interest earning assets |
| 224 |
| 178 |
| 46 |
| 25.8 |
| % |
| 77 |
| 147 |
| 190.9 |
| % |
| Total interest income |
| 29,401 |
| 30,170 |
| (769 |
| ) |
| -2.5 |
| % |
| 26,050 |
| 3,351 |
| 12.9 |
| % |
| Interest expense |
| Deposits |
| 6,574 |
| 5,866 |
| (708 |
| ) |
| -12.1 |
| % |
| 3,097 |
| (3,477 |
| ) |
| -112.3 |
| % |
| Federal Home Loan Bank advances |
| 641 |
| 810 |
| 169 |
| 20.9 |
| % |
| 1,420 |
| 779 |
| 54.9 |
| % |
| Total interest expense |
| 7,215 |
| 6,676 |
| (539 |
| ) |
| -8.1 |
| % |
| 4,517 |
| (2,698 |
| ) |
| -59.7 |
| % |
| Net interest income |
| 22,186 |
| 23,494 |
| (1,308 |
| ) |
| -5.6 |
| % |
| 21,533 |
| 653 |
| 3.0 |
| % |
| Taxable equivalent adjustment |
| 84 |
| 111 |
| (27 |
| ) |
| -24.3 |
| % |
| 97 |
| (13 |
| ) |
| -13.4 |
| % |
| Net interest income (FTE) (1) |
| 22,270 |
| 23,605 |
| (1,335 |
| ) |
| -5.7 |
| % |
| 21,630 |
| 640 |
| 3.0 |
| % |
| Provision for loan losses |
| 61 |
| 178 |
| 117 |
| 65.7 |
| % |
| 407 |
| 346 |
| 85.0 |
| % |
| Net interest income after provision for loan losses (FTE) |
| 22,209 |
| 23,427 |
| (1,218 |
| ) |
| -5.2 |
| % |
| 21,223 |
| 986 |
| 4.6 |
| % |
| Non-interest income |
| Insurance agency income |
| 701 |
| 562 |
| 139 |
| 24.7 |
| % |
| 577 |
| 124 |
| 21.5 |
| % |
| Brokerage income |
| 370 |
| 305 |
| 65 |
| 21.3 |
| % |
| 272 |
| 98 |
| 36.0 |
| % |
| Service fees and other charges: |
| Deposit related fees |
| 1,341 |
| 1,521 |
| (180 |
| ) |
| -11.8 |
| % |
| 1,300 |
| 41 |
| 3.2 |
| % |
| Mortgage servicing fees |
| 873 |
| 858 |
| 15 |
| 1.7 |
| % |
| 812 |
| 61 |
| 7.5 |
| % |
| Mortgage servicing rights valuation |
| (499 |
| ) |
| (44 |
| ) |
| (455 |
| ) |
| 1034.1 |
| % |
| 9 |
| (508 |
| ) |
| -5644.4 |
| % |
| Mortgage servicing rights amortization |
| (446 |
| ) |
| (430 |
| ) |
| (16 |
| ) |
| 3.7 |
| % |
| (500 |
| ) |
| 54 |
| -10.8 |
| % |
| Other service fees |
| 38 |
| 36 |
| 2 |
| 5.6 |
| % |
| 38 |
| — |
| 0.0 |
| % |
| Net gains (losses): |
| Trading securities |
| 64 |
| 669 |
| (605 |
| ) |
| -90.4 |
| % |
| — |
| 64 |
| 0.0 |
| % |
| Securities available for sale |
| 144 |
| (861 |
| ) |
| 1,005 |
| -116.7 |
| % |
| 139 |
| 5 |
| 3.6 |
| % |
| Mortgage banking income |
| 1,676 |
| 1,118 |
| 558 |
| 49.9 |
| % |
| 1,358 |
| 318 |
| 23.4 |
| % |
| Real estate owned and other repossessed assets charges, net |
| (31 |
| ) |
| (24 |
| ) |
| (7 |
| ) |
| 29.2 |
| % |
| (78 |
| ) |
| 47 |
| -60.3 |
| % |
| Debit/credit card fees |
| 934 |
| 1,033 |
| (99 |
| ) |
| -9.6 |
| % |
| 949 |
| (15 |
| ) |
| -1.6 |
| % |
| Trust fee income |
| 465 |
| 480 |
| (15 |
| ) |
| -3.1 |
| % |
| 469 |
| (4 |
| ) |
| -0.9 |
| % |
| Bank owned life insurance |
| 385 |
| 431 |
| (46 |
| ) |
| -10.7 |
| % |
| 433 |
| (48 |
| ) |
| -11.1 |
| % |
| Other income |
| 58 |
| (69 |
| ) |
| 127 |
| -184.1 |
| % |
| 41 |
| 17 |
| 41.5 |
| % |
| Total non-interest income |
| 6,073 |
| 5,585 |
| 488 |
| 8.7 |
| % |
| 5,819 |
| 254 |
| 4.4 |
| % |
| Non-interest expense |
| Salaries and employee benefits |
| 10,575 |
| 9,029 |
| (1,546 |
| ) |
| -17.1 |
| % |
| 9,998 |
| (577 |
| ) |
| -5.8 |
| % |
| Occupancy |
| 1,046 |
| 1,023 |
| (23 |
| ) |
| -2.2 |
| % |
| 1,100 |
| 54 |
| 4.9 |
| % |
| Equipment and data processing |
| 2,292 |
| 2,122 |
| (170 |
| ) |
| -8.0 |
| % |
| 2,154 |
| (138 |
| ) |
| -6.4 |
| % |
| Financial institutions tax |
| 509 |
| 464 |
| (45 |
| ) |
| -9.7 |
| % |
| 496 |
| (13 |
| ) |
| -2.6 |
| % |
| Advertising |
| 390 |
| 414 |
| 24 |
| 5.8 |
| % |
| 235 |
| (155 |
| ) |
| -66.0 |
| % |
| Amortization of intangible assets |
| 127 |
| 128 |
| 1 |
| 0.8 |
| % |
| 113 |
| (14 |
| ) |
| -12.4 |
| % |
| FDIC insurance premiums |
| 331 |
| 398 |
| 67 |
| 16.8 |
| % |
| 290 |
| (41 |
| ) |
| -14.1 |
| % |
| Other insurance premiums |
| 76 |
| 70 |
| (6 |
| ) |
| -8.6 |
| % |
| 109 |
| 33 |
| 30.3 |
| % |
| Professional fees: |
| Legal fees |
| 60 |
| 292 |
| 232 |
| 79.5 |
| % |
| 299 |
| 239 |
| 79.9 |
| % |
| Other professional fees |
| 587 |
| 721 |
| 134 |
| 18.6 |
| % |
| 391 |
| (196 |
| ) |
| -50.1 |
| % |
| Supervisory fees |
| 34 |
| 34 |
| — |
| 0.0 |
| % |
| 42 |
| 8 |
| 19.0 |
| % |
| Real estate owned and other repossessed asset expenses |
| 39 |
| 34 |
| (5 |
| ) |
| -14.7 |
| % |
| 36 |
| (3 |
| ) |
| -8.3 |
| % |
| Other expenses |
| 1,608 |
| 2,449 |
| 841 |
| 34.3 |
| % |
| 1,337 |
| (271 |
| ) |
| -20.3 |
| % |
| Total non-interest expenses |
| 17,674 |
| 17,178 |
| (496 |
| ) |
| -2.9 |
| % |
| 16,600 |
| (1,074 |
| ) |
| -6.5 |
| % |
| Income before income taxes |
| 10,608 |
| 11,834 |
| (1,226 |
| ) |
| -10.4 |
| % |
| 10,442 |
| 166 |
| 1.6 |
| % |
| Taxable equivalent adjustment |
| 84 |
| 111 |
| 27 |
| 24.3 |
| % |
| 97 |
| 13 |
| 13.4 |
| % |
| Income tax expense |
| 1,868 |
| 2,172 |
| 304 |
| 14.0 |
| % |
| 1,789 |
| (79 |
| ) |
| -4.4 |
| % |
| Net income |
| $ |
| 8,656 |
| $ |
| 9,551 |
| $ |
| (895 |
| ) |
| -9.4 |
| % |
| $ |
| 8,556 |
| $ |
| 100 |
| 1.2 |
| % |
| Earnings per common share: |
| Basic |
| $ |
| 0.177 |
| $ |
| 0.192 |
| $ |
| (0.015 |
| ) |
| -7.8 |
| % |
| $ |
| 0.172 |
| $ |
| 0.005 |
| 2.9 |
| % |
| Diluted |
| 0.176 |
| 0.191 |
| (0.015 |
| ) |
| -7.9 |
| % |
| 0.171 |
| 0.005 |
| 2.9 |
| % |
| (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 |
| March 31, 2019 |
| December 31, 2018 |
| March 31, 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) |
| $ |
| 2,191,746 |
| $ |
| 25,864 |
| 4.75 |
| % |
| $ |
| 2,161,414 |
| $ |
| 26,616 |
| 4.93 |
| % |
| $ |
| 2,026,266 |
| $ |
| 22,760 |
| 4.49 |
| % |
| Loans held for sale |
| 84,932 |
| 1,007 |
| 4.74 |
| % |
| 100,348 |
| 1,184 |
| 4.68 |
| % |
| 80,681 |
| 858 |
| 4.31 |
| % |
| Total loans, net |
| 2,276,678 |
| 26,871 |
| 4.75 |
| % |
| 2,261,762 |
| 27,800 |
| 4.91 |
| % |
| 2,106,947 |
| 23,618 |
| 4.49 |
| % |
| Securities: |
| Available for sale-taxable |
| 200,088 |
| 1,263 |
| 2.52 |
| % |
| 196,910 |
| 1,148 |
| 2.33 |
| % |
| 211,332 |
| 1,215 |
| 2.30 |
| % |
| Available for sale-nontaxable (2) |
| 43,468 |
| 365 |
| 3.36 |
| % |
| 48,370 |
| 399 |
| 3.30 |
| % |
| 54,737 |
| 472 |
| 3.45 |
| % |
| Held to maturity-taxable |
| 63,674 |
| 379 |
| 2.38 |
| % |
| 65,605 |
| 380 |
| 2.32 |
| % |
| 72,627 |
| 422 |
| 2.32 |
| % |
| Held to maturity-nontaxable (2) |
| 13,047 |
| 93 |
| 2.85 |
| % |
| 12,215 |
| 86 |
| 2.82 |
| % |
| 9,227 |
| 63 |
| 2.73 |
| % |
| Total securities |
| 320,277 |
| 2,100 |
| 2.62 |
| % |
| 323,100 |
| 2,013 |
| 2.49 |
| % |
| 347,923 |
| 2,172 |
| 2.50 |
| % |
| Federal Home Loan Bank stock |
| 18,010 |
| 290 |
| 6.43 |
| % |
| 19,144 |
| 290 |
| 6.06 |
| % |
| 19,324 |
| 280 |
| 5.80 |
| % |
| Other interest earning assets |
| 34,986 |
| 224 |
| 2.59 |
| % |
| 34,779 |
| 178 |
| 2.03 |
| % |
| 22,479 |
| 77 |
| 1.39 |
| % |
| Total interest earning assets |
| 2,649,951 |
| 29,485 |
| 4.48 |
| % |
| 2,638,785 |
| 30,281 |
| 4.59 |
| % |
| 2,496,673 |
| 26,147 |
| 4.19 |
| % |
| Non-interest earning assets |
| 176,913 |
| 176,579 |
| 176,785 |
| Total assets |
| $ |
| 2,826,864 |
| $ |
| 2,815,364 |
| $ |
| 2,673,458 |
| Interest bearing liabilities: |
| Deposits: |
| Checking accounts |
| $ |
| 650,268 |
| 1,440 |
| 0.89 |
| % |
| $ |
| 620,306 |
| 1,114 |
| 0.71 |
| % |
| $ |
| 593,499 |
| 687 |
| 0.47 |
| % |
| Savings accounts |
| 297,410 |
| 29 |
| 0.04 |
| % |
| 303,247 |
| 28 |
| 0.04 |
| % |
| 303,639 |
| 27 |
| 0.04 |
| % |
| Certificates of deposit |
| Customer certificates of deposit |
| 618,752 |
| 2,824 |
| 1.83 |
| % |
| 619,208 |
| 2,652 |
| 1.70 |
| % |
| 581,858 |
| 1,817 |
| 1.27 |
| % |
| Brokered certificates of deposit |
| 397,137 |
| 2,281 |
| 2.30 |
| % |
| 393,778 |
| 2,072 |
| 2.09 |
| % |
| 165,169 |
| 566 |
| 1.39 |
| % |
| Total certificates of deposit |
| 1,015,889 |
| 5,105 |
| 2.01 |
| % |
| 1,012,986 |
| 4,724 |
| 1.85 |
| % |
| 747,027 |
| 2,383 |
| 1.28 |
| % |
| Total interest bearing deposits |
| 1,963,567 |
| 6,574 |
| 1.34 |
| % |
| 1,936,539 |
| 5,866 |
| 1.20 |
| % |
| 1,644,165 |
| 3,097 |
| 0.76 |
| % |
| Federal Home Loan Bank advances |
| Long-term advances |
| — |
| — |
| 0.00 |
| % |
| 46,879 |
| 357 |
| 3.02 |
| % |
| 48,603 |
| 431 |
| 3.60 |
| % |
| Short-term advances |
| 103,333 |
| 641 |
| 2.48 |
| % |
| 75,033 |
| 453 |
| 2.40 |
| % |
| 265,322 |
| 989 |
| 1.51 |
| % |
| Total Federal Home Loan Bank advances |
| 103,333 |
| 641 |
| 2.48 |
| % |
| 121,912 |
| 810 |
| 2.64 |
| % |
| 313,925 |
| 1,420 |
| 1.83 |
| % |
| Repurchase agreements and other |
| 233 |
| — |
| 0.00 |
| % |
| 245 |
| — |
| 0.00 |
| % |
| 213 |
| — |
| 0.00 |
| % |
| Total borrowed funds |
| 103,566 |
| 641 |
| 2.48 |
| % |
| 122,157 |
| 810 |
| 2.63 |
| % |
| 314,138 |
| 1,420 |
| 1.83 |
| % |
| Total interest bearing liabilities |
| $ |
| 2,067,133 |
| 7,215 |
| 1.40 |
| % |
| $ |
| 2,058,696 |
| 6,676 |
| 1.29 |
| % |
| $ |
| 1,958,303 |
| 4,517 |
| 0.94 |
| % |
| Non-interest bearing liabilities |
| Total noninterest bearing deposits |
| 400,874 |
| 395,649 |
| 375,142 |
| Other noninterest bearing liabilities |
| 43,851 |
| 46,559 |
| 40,729 |
| Total noninterest bearing liabilities |
| 444,725 |
| 442,208 |
| 415,871 |
| Total liabilities |
| $ |
| 2,511,858 |
| $ |
| 2,500,904 |
| $ |
| 2,374,174 |
| Shareholders’ equity |
| 315,006 |
| 314,464 |
| 299,284 |
| Total liabilities and equity |
| $ |
| 2,826,864 |
| $ |
| 2,815,368 |
| $ |
| 2,673,458 |
| Net interest income and interest rate spread |
| $ |
| 22,270 |
| 3.08 |
| % |
| $ |
| 23,605 |
| 3.30 |
| % |
| $ |
| 21,630 |
| 3.25 |
| % |
| Net interest margin |
| 3.38 |
| % |
| 3.58 |
| % |
| 3.47 |
| % |
| Average interest earning assets to average interest bearing liabilities |
| 128.19 |
| % |
| 128.18 |
| % |
| 127.49 |
| % |
| Interest bearing deposits |
| Checking accounts |
| $ |
| 650,268 |
| $ |
| 1,440 |
| 0.89 |
| % |
| $ |
| 620,306 |
| $ |
| 1,114 |
| 0.71 |
| % |
| $ |
| 593,499 |
| $ |
| 687 |
| 0.47 |
| % |
| Savings accounts |
| 297,410 |
| 29 |
| 0.04 |
| % |
| 303,247 |
| 28 |
| 0.04 |
| % |
| 303,639 |
| 27 |
| 0.04 |
| % |
| Customer certificates of deposit |
| 618,752 |
| 2,824 |
| 1.83 |
| % |
| 619,208 |
| 2,652 |
| 1.70 |
| % |
| 581,858 |
| 1,817 |
| 1.27 |
| % |
| Total customer deposits |
| 1,566,430 |
| 4,293 |
| 1.10 |
| % |
| 1,542,761 |
| 3,794 |
| 0.98 |
| % |
| 1,478,996 |
| 2,531 |
| 0.68 |
| % |
| Brokered certificates of deposit |
| 397,137 |
| 2,281 |
| 2.30 |
| % |
| 393,778 |
| 2,072 |
| 2.09 |
| % |
| 165,169 |
| 566 |
| 1.39 |
| % |
| Total interest bearing deposits |
| 1,963,567 |
| 6,574 |
| 1.34 |
| % |
| 1,936,539 |
| 5,866 |
| 1.20 |
| % |
| 1,644,165 |
| 3,097 |
| 0.76 |
| % |
| Noninterest bearing deposits |
| 400,874 |
| — |
| 0.00 |
| % |
| 395,649 |
| — |
| 0.00 |
| % |
| 375,142 |
| — |
| 0.00 |
| % |
| Total average deposits and cost of deposits |
| $ |
| 2,364,441 |
| $ |
| 6,574 |
| 1.11 |
| % |
| $ |
| 2,332,188 |
| $ |
| 5,866 |
| 1.01 |
| % |
| $ |
| 2,019,307 |
| $ |
| 3,097 |
| 0.61 |
| % |
| Other interest bearing liabilities |
| Federal Home Loan Bank advances |
| Long term advances |
| $ |
| — |
| $ |
| — |
| 0.00 |
| % |
| $ |
| 46,879 |
| $ |
| 357 |
| 3.02 |
| % |
| $ |
| 48,603 |
| $ |
| 431 |
| 3.60 |
| % |
| Short term advances |
| 103,333 |
| 641 |
| 2.48 |
| % |
| 75,033 |
| 453 |
| 2.40 |
| % |
| 265,322 |
| 989 |
| 1.51 |
| % |
| Total Federal Home Loan Bank advances |
| 103,333 |
| 641 |
| 2.48 |
| % |
| 121,912 |
| 810 |
| 2.64 |
| % |
| 313,925 |
| 1,420 |
| 1.83 |
| % |
| Repurchase agreements and other |
| 233 |
| — |
| 0.00 |
| % |
| 245 |
| — |
| 0.00 |
| % |
| 213 |
| — |
| 0.00 |
| % |
| Total borrowed funds |
| 103,566 |
| 641 |
| 2.48 |
| % |
| 122,157 |
| 810 |
| 2.63 |
| % |
| 314,138 |
| 1,420 |
| 1.83 |
| % |
| Total average deposits and other interest bearing liabilities and total cost of funds |
| $ |
| 2,468,007 |
| $ |
| 7,215 |
| 1.17 |
| % |
| $ |
| 2,454,345 |
| $ |
| 6,676 |
| 1.09 |
| % |
| $ |
| 2,333,445 |
| $ |
| 4,517 |
| 0.79 |
| % |
| Customer deposits interest bearing and noninterest bearing |
| $ |
| 1,967,304 |
| $ |
| 4,293 |
| 0.87 |
| % |
| $ |
| 1,938,410 |
| $ |
| 3,794 |
| 0.78 |
| % |
| $ |
| 1,854,138 |
| $ |
| 2,531 |
| 0.55 |
| % |
| Brokered deposits |
| 397,137 |
| 2,281 |
| 2.30 |
| % |
| 393,778 |
| 2,072 |
| 2.09 |
| % |
| 165,169 |
| 566 |
| 1.39 |
| % |
| Total borrowings |
| 103,566 |
| 641 |
| 2.48 |
| % |
| 122,157 |
| 810 |
| 2.63 |
| % |
| 314,138 |
| 1,420 |
| 1.83 |
| % |
| Cost of funds |
| 2,468,007 |
| 7,215 |
| 1.17 |
| % |
| 2,454,345 |
| 6,676 |
| 1.09 |
| % |
| 2,333,445 |
| 4,517 |
| 0.79 |
| % |
| (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 |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands, except per share data) |
| Financial Data |
| Total assets |
| $ |
| 2,852,041 |
| $ |
| 2,811,357 |
| $ |
| 2,789,183 |
| $ |
| 2,770,558 |
| $ |
| 2,690,707 |
| Total loans, net |
| 2,215,549 |
| 2,176,842 |
| 2,148,942 |
| 2,099,781 |
| 2,061,443 |
| Total securities |
| 313,847 |
| 319,498 |
| 320,806 |
| 328,924 |
| 338,593 |
| Total deposits |
| 2,289,803 |
| 2,213,220 |
| 2,352,476 |
| 2,135,345 |
| 2,066,978 |
| Average interest-bearing deposits |
| 1,963,567 |
| 1,936,539 |
| 1,884,617 |
| 1,718,639 |
| 1,644,165 |
| Average noninterest-bearing deposits |
| 400,874 |
| 395,649 |
| 382,044 |
| 376,905 |
| 375,142 |
| Total shareholders' equity |
| 314,709 |
| 309,334 |
| 306,043 |
| 301,484 |
| 296,195 |
| Net interest income |
| 22,186 |
| 23,494 |
| 21,623 |
| 21,295 |
| 21,533 |
| Net interest income (FTE) (1) |
| 22,270 |
| 23,605 |
| 21,707 |
| 21,385 |
| 21,630 |
| Provision for loan losses |
| 61 |
| 178 |
| 251 |
| (138 |
| ) |
| 407 |
| Noninterest income |
| 6,073 |
| 5,585 |
| 6,146 |
| 5,852 |
| 5,819 |
| Noninterest expense |
| 17,674 |
| 17,178 |
| 15,772 |
| 15,530 |
| 16,600 |
| Income tax expense |
| 1,868 |
| 2,172 |
| 2,217 |
| 2,214 |
| 1,789 |
| Net income |
| 8,656 |
| 9,551 |
| 9,529 |
| 9,541 |
| 8,556 |
| Share Data |
| Basic earnings per common share |
| $ |
| 0.177 |
| $ |
| 0.192 |
| $ |
| 0.191 |
| $ |
| 0.191 |
| $ |
| 0.172 |
| Diluted earnings per common share |
| 0.176 |
| 0.191 |
| 0.190 |
| 0.190 |
| 0.171 |
| Book value per common share |
| 6.44 |
| 6.30 |
| 6.13 |
| 6.04 |
| 5.94 |
| Tangible book value per common share |
| 5.95 |
| 5.81 |
| 5.65 |
| 5.56 |
| 5.45 |
| Market value per common share |
| 9.35 |
| 8.85 |
| 9.67 |
| 10.99 |
| 9.86 |
| Common shares outstanding at end of period |
| 48,853 |
| 49,129 |
| 49,923 |
| 49,904 |
| 49,882 |
| Weighted average shares outstanding--basic |
| 48,854 |
| 49,445 |
| 49,683 |
| 49,694 |
| 49,611 |
| Weighted average shares outstanding--diluted |
| 49,113 |
| 49,695 |
| 49,947 |
| 49,944 |
| 49,885 |
| Key Ratios |
| Return on average assets (2) |
| 1.22 |
| % |
| 1.36 |
| % |
| 1.37 |
| % |
| 1.40 |
| % |
| 1.28 |
| % |
| Return on average equity (3) |
| 10.99 |
| % |
| 12.15 |
| % |
| 12.25 |
| % |
| 12.56 |
| % |
| 11.44 |
| % |
| Return on tangible equity (4) |
| 11.90 |
| % |
| 13.16 |
| % |
| 13.28 |
| % |
| 13.65 |
| % |
| 12.44 |
| % |
| Net interest margin |
| 3.38 |
| % |
| 3.58 |
| % |
| 3.33 |
| % |
| 3.36 |
| % |
| 3.47 |
| % |
| Efficiency ratio |
| 62.29 |
| % |
| 54.79 |
| % |
| 57.30 |
| % |
| 57.75 |
| % |
| 60.20 |
| % |
| Nonperforming loans to net loans, end of period |
| 0.32 |
| % |
| 0.30 |
| % |
| 0.42 |
| % |
| 0.51 |
| % |
| 0.59 |
| % |
| Nonperforming assets to total assets, end of period |
| 0.34 |
| % |
| 0.27 |
| % |
| 0.36 |
| % |
| 0.57 |
| % |
| 0.65 |
| % |
| Allowance for loan loss as a percent of loans, end of period |
| 0.91 |
| % |
| 0.93 |
| % |
| 0.98 |
| % |
| 1.01 |
| % |
| 1.04 |
| % |
| Delinquent loans to total net loans, end of period |
| 0.41 |
| % |
| 0.50 |
| % |
| 0.69 |
| % |
| 0.67 |
| % |
| 0.81 |
| % |
| (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 |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands) |
| Loan Portfolio Composition |
| Commercial loans |
| Multi-family |
| $ |
| 163,243 |
| $ |
| 134,143 |
| $ |
| 139,938 |
| $ |
| 141,004 |
| $ |
| 137,836 |
| Owner/nonowner occupied commercial real estate |
| 412,550 |
| 409,979 |
| 408,938 |
| 396,624 |
| 384,533 |
| Land |
| 17,090 |
| 16,831 |
| 16,129 |
| 16,887 |
| 15,452 |
| Construction |
| 135,048 |
| 141,685 |
| 132,961 |
| 127,691 |
| 134,181 |
| Commercial and industrial |
| 246,740 |
| 240,293 |
| 233,801 |
| 218,611 |
| 201,132 |
| Total |
| 974,671 |
| 942,931 |
| 931,767 |
| 900,817 |
| 873,134 |
| Residential mortgage loans |
| Real estate |
| 934,586 |
| 927,255 |
| 909,626 |
| 888,583 |
| 882,873 |
| Construction |
| 45,102 |
| 43,435 |
| 39,396 |
| 40,623 |
| 42,453 |
| Total |
| 979,688 |
| 970,690 |
| 949,022 |
| 929,206 |
| 925,326 |
| Consumer loans |
| Consumer |
| 274,998 |
| 277,041 |
| 283,108 |
| 284,909 |
| 279,110 |
| Total |
| 274,998 |
| 277,041 |
| 283,108 |
| 284,909 |
| 279,110 |
| Total loans |
| 2,229,357 |
| 2,190,662 |
| 2,163,897 |
| 2,114,932 |
| 2,077,570 |
| Less: |
| Allowance for loan losses |
| 20,446 |
| 20,443 |
| 21,332 |
| 21,405 |
| 21,610 |
| Deferred loan costs, net |
| (6,638 |
| ) |
| (6,623 |
| ) |
| (6,377 |
| ) |
| (6,254 |
| ) |
| (5,483 |
| ) |
| Total |
| 13,808 |
| 13,820 |
| 14,955 |
| 15,151 |
| 16,127 |
| Total loans, net |
| 2,215,549 |
| 2,176,842 |
| 2,148,942 |
| 2,099,781 |
| 2,061,443 |
| Loans held for sale, net |
| 77,676 |
| 91,472 |
| 95,235 |
| 107,701 |
| 79,292 |
| Total loans |
| $ |
| 2,293,225 |
| $ |
| 2,268,314 |
| $ |
| 2,244,177 |
| $ |
| 2,207,482 |
| $ |
| 2,140,735 |
| At or for the quarters ended |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands) |
| Deposit Portfolio Composition |
| Checking accounts |
| Interest bearing checking accounts |
| $ |
| 146,244 |
| $ |
| 146,977 |
| $ |
| 140,722 |
| $ |
| 138,812 |
| $ |
| 140,740 |
| Non-interest bearing checking accounts |
| 404,644 |
| 394,208 |
| 383,535 |
| 383,082 |
| 376,904 |
| Total checking accounts |
| 550,888 |
| 541,185 |
| 524,257 |
| 521,894 |
| 517,644 |
| Savings accounts |
| 297,186 |
| 298,087 |
| 300,007 |
| 306,283 |
| 308,025 |
| Money market accounts |
| 550,049 |
| 466,167 |
| 489,668 |
| 502,560 |
| 483,840 |
| Total non-time deposits |
| 1,398,123 |
| 1,305,439 |
| 1,313,932 |
| 1,330,737 |
| 1,309,509 |
| Certificates of deposit |
| 630,174 |
| 616,826 |
| 622,807 |
| 615,388 |
| 595,657 |
| Total customer deposits |
| 2,028,297 |
| 1,922,265 |
| 1,936,739 |
| 1,946,125 |
| 1,905,166 |
| Brokered deposits |
| 261,506 |
| 290,955 |
| 415,737 |
| 189,220 |
| 161,812 |
| Total certificates of deposit |
| 891,680 |
| 907,781 |
| 1,038,544 |
| 804,608 |
| 757,469 |
| Total deposits |
| $ |
| 2,289,803 |
| $ |
| 2,213,220 |
| $ |
| 2,352,476 |
| $ |
| 2,135,345 |
| $ |
| 2,066,978 |
| UNITED COMMUNITY FINANCIAL CORP. |
| SELECTED FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| At or for the quarters ended |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands) |
| Allowance For Loan Losses |
| Beginning balance |
| $ |
| 20,443 |
| $ |
| 21,332 |
| $ |
| 21,405 |
| $ |
| 21,610 |
| $ |
| 21,202 |
| Provision |
| 61 |
| 178 |
| 251 |
| (138 |
| ) |
| 407 |
| Net recoveries (chargeoffs) |
| (58 |
| ) |
| (1,067 |
| ) |
| (324 |
| ) |
| (67 |
| ) |
| 1 |
| Ending balance |
| $ |
| 20,446 |
| $ |
| 20,443 |
| $ |
| 21,332 |
| $ |
| 21,405 |
| $ |
| 21,610 |
| At or for the quarters ended |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands) |
| Net Recoveries (Charge-offs) |
| Commercial loans |
| Multi-family |
| $ |
| 113 |
| $ |
| (99 |
| ) |
| $ |
| 4 |
| $ |
| 9 |
| $ |
| 6 |
| Owner/nonowner occupied commercial real estate |
| 28 |
| 38 |
| 12 |
| 29 |
| 40 |
| Land |
| — |
| — |
| 150 |
| — |
| — |
| Construction |
| 1 |
| — |
| 11 |
| 10 |
| 7 |
| Commercial and industrial |
| (84 |
| ) |
| (765 |
| ) |
| (275 |
| ) |
| (72 |
| ) |
| 104 |
| Total |
| 58 |
| (826 |
| ) |
| (98 |
| ) |
| (24 |
| ) |
| 157 |
| Residential mortgage loans |
| Real estate |
| 78 |
| (131 |
| ) |
| (141 |
| ) |
| (14 |
| ) |
| (66 |
| ) |
| Construction |
| — |
| — |
| — |
| — |
| — |
| Total |
| 78 |
| (131 |
| ) |
| (141 |
| ) |
| (14 |
| ) |
| (66 |
| ) |
| Consumer loans |
| Consumer |
| (194 |
| ) |
| (110 |
| ) |
| (85 |
| ) |
| (29 |
| ) |
| (90 |
| ) |
| Total |
| (194 |
| ) |
| (110 |
| ) |
| (85 |
| ) |
| (29 |
| ) |
| (90 |
| ) |
| Total net chargeoffs |
| $ |
| (58 |
| ) |
| $ |
| (1,067 |
| ) |
| $ |
| (324 |
| ) |
| $ |
| (67 |
| ) |
| $ |
| 1 |
| At or for the quarters ended |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands) |
| Nonperforming Loans |
| Commercial loans |
| Multi-family |
| $ |
| — |
| $ |
| 171 |
| $ |
| 275 |
| $ |
| 275 |
| $ |
| 275 |
| Owner/nonowner occupied commercial real estate |
| 1,565 |
| 13 |
| 1,101 |
| 1,111 |
| 1,206 |
| Land |
| — |
| — |
| — |
| — |
| 9 |
| Construction |
| — |
| — |
| — |
| — |
| — |
| Commercial and industrial |
| 456 |
| 531 |
| 1,489 |
| 1,475 |
| 1,459 |
| Total |
| 2,021 |
| 715 |
| 2,865 |
| 2,861 |
| 2,949 |
| Residential mortgage loans |
| Real estate |
| 3,883 |
| 4,170 |
| 4,426 |
| 6,146 |
| 7,045 |
| Construction |
| — |
| — |
| — |
| — |
| — |
| Total |
| 3,883 |
| 4,170 |
| 4,426 |
| 6,146 |
| 7,045 |
| Consumer loans |
| Consumer |
| 1,203 |
| 1,654 |
| 1,770 |
| 1,783 |
| 2,180 |
| Total |
| 1,203 |
| 1,654 |
| 1,770 |
| 1,783 |
| 2,180 |
| Total nonperforming loans |
| $ |
| 7,107 |
| $ |
| 6,539 |
| $ |
| 9,061 |
| $ |
| 10,790 |
| $ |
| 12,174 |
| Total Nonperforming Loans and Nonperforming Assets |
| Past due 90 days and on nonaccrual status |
| $ |
| 4,351 |
| $ |
| 5,732 |
| $ |
| 8,200 |
| $ |
| 8,395 |
| $ |
| 8,326 |
| Past due 90 days and still accruing |
| — |
| 18 |
| — |
| — |
| — |
| Past due 90 days |
| 4,351 |
| 5,750 |
| 8,200 |
| 8,395 |
| 8,326 |
| Past due less than 90 days and on nonaccrual |
| 2,756 |
| 789 |
| 861 |
| 2,395 |
| 3,848 |
| Total nonperforming loans |
| 7,107 |
| 6,539 |
| 9,061 |
| 10,790 |
| 12,174 |
| Other real estate owned |
| 1,143 |
| 1,049 |
| 907 |
| 802 |
| 1,030 |
| Other classified assets |
| 1,479 |
| — |
| — |
| 4,050 |
| 4,050 |
| Repossessed assets |
| 37 |
| 39 |
| — |
| 75 |
| 263 |
| Total nonperforming assets |
| $ |
| 9,766 |
| $ |
| 7,627 |
| $ |
| 9,968 |
| $ |
| 15,717 |
| $ |
| 17,517 |
| UNITED COMMUNITY FINANCIAL CORP. |
| NON-GAAP DISCLOSURE RECONCILIATION |
| (Unaudited) |
| Reconciliation of Average Shareholders' Equity to Average Tangible Equity: |
| At or for the quarters ended |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands, except per share data) |
| Average shareholders equity |
| $ |
| 315,006 |
| $ |
| 314,464 |
| $ |
| 311,058 |
| $ |
| 303,733 |
| $ |
| 299,284 |
| Average intangible assets |
| 23,994 |
| 24,123 |
| 24,144 |
| 24,063 |
| 24,175 |
| Average tangible equity |
| $ |
| 291,012 |
| $ |
| 290,341 |
| $ |
| 286,914 |
| $ |
| 279,670 |
| $ |
| 275,109 |
| Net income |
| $ |
| 8,656 |
| $ |
| 9,551 |
| $ |
| 9,529 |
| $ |
| 9,541 |
| $ |
| 8,556 |
| Return on tangible equity |
| 11.90 |
| % |
| 13.16 |
| % |
| 13.28 |
| % |
| 13.65 |
| % |
| 12.44 |
| % |
| Reconciliation of Fully Taxable Equivalent Net Interest Income to Net Interest Income: |
| For the quarters ended |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands) |
| Interest income |
| $ |
| 29,401 |
| $ |
| 30,170 |
| $ |
| 27,690 |
| $ |
| 26,661 |
| $ |
| 26,050 |
| Fully taxable equivalent adjustment |
| 84 |
| 111 |
| 84 |
| 90 |
| 97 |
| Fully taxable equivalent interest income |
| 29,485 |
| 30,281 |
| 27,774 |
| 26,751 |
| 26,147 |
| Interest expense |
| 7,215 |
| 6,676 |
| 6,067 |
| 5,366 |
| 4,517 |
| Fully taxable net interest income |
| $ |
| 22,270 |
| $ |
| 23,605 |
| $ |
| 21,707 |
| $ |
| 21,385 |
| $ |
| 21,630 |
| Reconciliation of Coverage Ratio to Coverage Ratio with Fair Value Adjustments Included with Allowance for Loan Losses: |
| March 31, |
| 2019 |
| (Dollars in thousands) |
| Allowance for loan losses |
| $ |
| 20,446 |
| Fair value adjustments |
| 1,738 |
| 22,184 |
| Loans, net |
| $ |
| 2,215,548 |
| Add: Allowance for loan losses and fair value adjustment |
| 22,184 |
| Gross loans |
| $ |
| 2,237,732 |
| Coverage ratio with the Fair Value adjustments included in Allowance for loan losses |
| 0.99 |
| % |
| 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 |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| March 31, |
| 2019 |
| 2018 |
| 2018 |
| 2018 |
| 2018 |
| (Dollars in thousands, except per share data) |
| Total shareholders' equity |
| $ |
| 314,709 |
| $ |
| 309,334 |
| $ |
| 306,043 |
| $ |
| 301,484 |
| $ |
| 296,195 |
| Goodwill |
| 20,221 |
| 20,221 |
| 20,221 |
| 20,221 |
| 20,221 |
| Customer list intangible |
| 2,169 |
| 2,214 |
| 2,259 |
| 1,980 |
| 2,030 |
| Core deposit intangible |
| 1,521 |
| 1,603 |
| 1,686 |
| 1,769 |
| 1,851 |
| Total common shares outstanding |
| 48,852,688 |
| 49,128,875 |
| 49,922,514 |
| 49,904,074 |
| 49,882,491 |
| Tangible book value, as reported |
| $ |
| 5.95 |
| $ |
| 5.81 |
| $ |
| 5.65 |
| $ |
| 5.56 |
| $ |
| 5.45 |
| Reconciliation of Net Interest Margin, Non-Interest Income and Non-Interest Expense: |
| At the quarters ended |
| March 31, |
| March 31, |
| 2019 |
| 2018 |
| Net interest income (FTE) |
| $ |
| 22,270 |
| $ |
| 21,630 |
| less: impact of loan payoff |
| - |
| (588 |
| ) |
| less: purchase accounting |
| (360 |
| ) |
| (545 |
| ) |
| Adjusted net interest income |
| 21,910 |
| 20,497 |
| Average earning assets |
| 2,649,951 |
| 2,496,673 |
| Net interest margin exc. loan payoff and purch. accounting |
| 3.32 |
| % |
| 3.30 |
| % |
| Non-interest income |
| $ |
| 6,073 |
| $ |
| 5,819 |
| less: mortgage servicing valuation adjustment |
| 499 |
| (9 |
| ) |
| Non-interest income, adjusted |
| 6,572 |
| 5,810 |
| Non-interest income % increase |
| 13.1 |
| % |
| Non-interest expense |
| $ |
| 17,674 |
| $ |
| 16,600 |
| less: organizational restructure charge |
| (650 |
| ) |
| - |
| Non-interest expense, adjusted |
| 17,024 |
| 16,600 |
| Non-interest expense % increase |
| 2.6 |
| % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190416005958/en/
Media Contact:
Kathy Bushway
Senior Vice President, Marketing
Home Savings
(330) 742-0638
kbushway@homesavings.com
Investor Contact:
Gary M. Small
President and Chief Executive Officer
United Community Financial Corp.
(330) 742-0472