UCFC Earns $2.6M in 4Q, Loses $20.4M in 2012
YOUNGSTOWN, Ohio -- United Community Financial Corp., holding company of the Home Savings and Loan Co., Friday reported fourth-quarter net income of $2.596 million, or eight cents per share, but a net loss for 2012 of $20.437 million, or 62 cents per share.
This compares to fourth-quarter 2011 net income of $7.928 million, or 25 cents a share, a third-quarter net loss of $26.891 million, or 82 cents a share, and 2011 net income of $230,000, or a penny a share.
In its earnings release, UCFC pointed to the progress made in restoring Home Savings to financial health: At Dec. 31, delinquent loans (those 31 to 89 days past due) had fallen 62% to $48.2 million, nonperforming assets, which include nonperforming loans (those 91 days and longer past due), had fallen 57.7% to $66.23 million from $156.58 million, and classified loans had fallen 72.8% to $59.9 million.
In a prepared statement, the president and CEO of UCFC and Home Savings, Patrick W. Bevack, said, “Ending the year on a positive note with net income for the quarter is exactly where we want to be. More significantly, the announcements we made earlier this year regarding the capital raise [of $47 million] and rights offering, as well as the termination of the consent order, further exemplify the trust and confidence that investors and regulators have in our company.”
Key performance ratios for the quarters ended Dec. 31 and Sept. 30, 2012, and Dec. 31, 2001:
- Return on average assets: 0.57%, (5.67%), 1.53%.
- Return on average equity, 6.06%, (53.53%), 16.97%.
- Net interest margin, 3.23%, 3.17%, 3.04%.
- Efficiency ratio, 69.50%, 93.62%, 87.96%.
Capital ratios for the same periods:
- Tier 1 leverage ratio, 8.70%, 8.27%, 8.61%.
- Tier 1 risk-based capital ratio, 14.95%, 14.59%, 13.30%.
- Total risk-based capital ratio, 16.21%, 15.85%, 14.57%.
- Tangible common equity to tangible assets: 9.43%, 9.36%, 9.28%.
Asset quality continued to improve. The fourth-quarter provision for loan losses was $2.102 million compared to $30.279 million the preceding quarter and $2.386 million the last quarter of 2011. The third-quarter figure reflects the bulk asset sale of which $91.6 million were classified (current in their payments but questionable), $63.3 million were nonperforming and $53 million were noncurrent.
Net interest income was $14.011 million compared to $14.128 million the third quarter and $14.838 million the last quarter of 2011. The net interest margin was 3.23%, up six basis points from the third quarter.
Noninterest income (for example, fees charged) was $6.939 million, up from $3.72 million the preceding quarter but down from $12.021 million the same quarter a year ago.
Noninterest expense (salaries and benefits, rents, Federal Deposit Insurance Corp. premiums, professional/consulting fees) was $14.302 million, down from the third-quarter’s $17.730 million and fourth-quarter 2011’s $16.545 million. Salaries and employee benefits fell to $7.253 million from $8.634 million the preceding quarter.
Professional fees were $1.204 million, down from $2.219 million the third quarter. “Professional fees specifically associated with the bulk asset sale in the third quarter came to $1.2 million,” UCFC said. They were $1.132 the last quarter of 2011.
Such fees ran $5.342 million in 2012 compared to $3.677 million in 2011.
Total assets continue to shrink. At year-end, that figure stood at $1.808 billion when they were $2.031 billion at Dec. 31, 2001. Total deposits also continue to fall, down from $1.589 billion at Dec. 31, 2011, to $1.462 billion at year-end.
Published by The Business Journal, Youngstown, Ohio.
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