UCFC Earns $2.24M in 4Q, Reports Profit for 2013
YOUNGSTOWN, Ohio -- United Community Financial Corp., holding company of Home Savings and Loan Co., Friday reported fourth-quarter net income of $2.24 million, or four cents per common share.
The company also reported full-year 2013 net income of $10.03 million, amortized by a discount on preferred stock of $6.75 million, leaving $3.28 million available to common shareholders, or seven cents per common share. (The preferred stock was later converted to common shares. No dividend was declared or paid on the preferred stock. Generally Accepted Accounting Principles, or GAAP, required UCFC to record the amortization as a noncash dividend because the preferred stock was issued at a price below the then-market price of UCFC common stock.)
By comparison, third-quarter 2013 net income was $1.72 million, or three cents per common share, and fourth-quarter 2012 net income of $2.60 million, or eight cents per common share.
UCFC recorded a net loss for full-year 2012 of $20.44 million, or 62 cents per share.
Said the president and CEO of UCFC, Patrick W. Bevack, in a prepared statement, “The year 2013 represented the culmination of many years of hard effort on the part of our team and board of directors. Not only did we successfully complete our capital raise, but as of today, we are free of regulatory orders and agreements. The company is building a solid track record of consistent earnings, having been profitable in eight of the last nine quarters, including the last five consecutive quarters. As we celebrate Home Savings’ 125th anniversary, we are excited as to what the future has the future has to offer.”
UCFC cited these highlights in its earnings report:
- Noninterest expense (salaries and benefits, rents, data processing, Federal Deposit Insurance Corp., premiums) for 2013 was $56.73 million, down 12.9% from $65.17 million in 2012.
- Delinquent loans (those up to 89 days past due) and nonperforming assets (includes loans 90-plus days past due) at Dec. 31 were down 50.5% and 54.8% respectively from Dec. 31, 2012. Delinquent loans at Dec. 31 were $23.8 million compared to $48.2 million a year earlier. Nonperforming assets were $29.93 million and $66.23 million at yearends 2013 and 2012 respectively.
- The balance of real estate owned and other repossessed assets was $6.3 million at Dec. 31, down 65.6% from Dec. 31, 2012.
- Home Savings’ Tier 1 leverage ratio, a capital ratio, was 10.50% and total risk-based capital was 19.76%, well above regulatory minimums.
Key ratios for the quarters ended Dec. 31, Sept. 30, 2013, and Dec. 31, 2012; years ended Dec. 31, 2013 and 2012:
- Return on average assets, 0.51%, 0.39%, 0.74%; 0.59%, 0.57%.
- Return on average equity, 4.82%, 3.75%, 6.46%; 6.14%, 6.06%.
- Net interest margin, 3.17%, 3.04%, 2.93%; 3.01%, 3.23%.
- Efficiency ratio, 85.89%, 81.14%, 78.38%; 75.55%, 69.50%.
Asset quality continues to improve as indicated by the figures at yearend 2013 and 2012, total nonperforming loans, $23.59 million and $47.79 million respectively; total nonperforming assets, $29.93 million and $66.23 million respectively; other real estate owned, $6.32 million and $18.08 million respectively.
Total assets also continue to be reduced, $1.738 billion at Dec. 31 compared to $1.808 billion a year earlier while shareholders’ equity rose slightly, $175.07 million versus $170.76 million at Dec. 31, 2012.
Source: United Community Financial Corp.
Published by The Business Journal, Youngstown, Ohio.
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