UCFC Emerges from Regulatory Probation
YOUNGSTOWN, Ohio -- United Community Financial Corp., parent of the Home Savings and Loan Co., announced late Tuesday afternoon that the Federal Reserve Bank of Cleveland has terminated its memorandum of understanding with the one-bank holding company.
The lifting of the memorandum means both parent and subsidiary are completely free of regulatory agreements. The Cleveland Fed’s memorandum with Home Savings was lifted Dec. 4, according to UCFC.
The memorandum with the holding company, issued last July 9, replaced the far more restrictive cease-and-desist order in effect since Aug. 8, 2008.
The news comes on the eve of the bank celebrating its 125th anniversary today with Mayor John A. McNally IV scheduled to present a proclamation in the Home Savings headquarters at 10 a.m.
Two effects of lifting the last restriction on UCFC’s ability to conduct business without first seeking a green light from the Cleveland Fed are that the company can declare and pay cash dividends on its stock and engage in mergers and acquisitions. The directors of UCFC have said nothing about when cash dividends on common shares would resume or indicated any interest in pursuing M&A activity.
In a prepared statement, the president and CEO of UCFC and Home Savings, Patrick W. Bevack, said, “We are very pleased the Federal Reserve Bank of Cleveland has terminated the MOU [memorandum]. United Community and Home Savings are now completely free of all regulatory orders and agreements, and we are proud of what we have accomplished. Our capital position is strong, and we are focused on executing our strategic plans and improving the profitability of United Community and Home Savings.”
Copyright 2014 The Business Journal, Youngstown, Ohio.
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