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UCFC Reports Third-Quarter Loss of $26.89 Million
YOUNGSTOWN, Ohio – United Community Financial Corp., holding company of the Home Savings and Loan Co., today reported a third-quarter net loss of $26.89 million, or 82 cents per share.
UFCF attributed the results primarily to a $33 million loss related to its bulk loan sale completed Sept. 22 of $114.8 million, on which it recorded a loss of $29.4 million.
This in turn caused UCFC to report a loss for the first nine months of $23.03 million, or 70 cents per share.
In a prepared statement, the president and CEO, Patrick W, Bevack, said, “The bulk asset sale completed in September represented an enormous step forward for the company. We have achieved substantial improvement in our asset quality and a dramatic reduction in our risk profile and have exceeded our regulatory asset quality targets well ahead of schedule.”
Third-quarter results UCFC pointed to:
- Delinquent loans (those 30 to 89 days past due) were $52.22 million, down from $109.79 million at June 30 and 59.6% year-to-date.
- Nonperforming assets were $66.8 million, down 57.4% year-to-date. Total nonperforming loans (those 90 days past due) were $46.56 million, down from $114.53 million at June 30.
- Classified loans were $58.37 million, down from $171.84 million at June 30.
- Home Savings Tier 1 leverage ratio was 8.27%, down from 9.32% at June 30 and 8.13% Sept. 30, 2011.
- Home Savings risk-based capital ratio was 15.85%, down from 16.43% June 30 but more than 2.5% better than the 13.25% at Sept. 30, 2011.
Key performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2011:
- Return on average assets, -5.67%, 0.01%, -1.69%.
- Return on average equity, -53.53%, 0.12%, -18.98%.
- Net interest margin, 3.17%, 3.55%, 3.18%.
- Efficiency ratio, 93.62%, 78.50%, 79.67%.
Net interest income for the quarter ended Sept. 30 was $14.13 million compared to $16.42 million the second quarter and $15.63 million the third quarter of 2011.
Total interest expense fell by $411,000 to $4.06 million from $4.47 million the second quarter. For the first nine months was $14.22 million, $9.36 million less than the $23.58 million reported for same period a year ago, UCFC said.
Noninterest income fell to $3.75 million. Second-quarter noninterest income was $6.95 million and third-quarter 2011 noninterest income was $1.92 million. For the first nine months UCFC reported total noninterest income of $15.79 million compared to $11.20 million the same period a year ago.
Noninterest expenses (wages, benefits, rents, Federal Deposit Insurance Corp. premiums, administering repossessed real estate) was $17.33 million compared to $17.04 million the second quarter and $14.60 million the third quarter of 2011.
Total assets fell to $1.831 billion from $2.031 billion at the end of 2011. Total shareholders’ equity fell to $171.58 million from $188.75 million.