Wednesday, January 28, 2015YOUNGSTOWN, Ohio -- United Community Financial Corp., holding company of the Home Savings and Loan Co., Tuesday reported fourth-quarter net income of $2.81 million, or six cents a share, and full-year 2014 net income of $50.21 million, or $1 a share.
Full-year income reflects the company’s recognition of $39.74 million of income tax benefit from the reversal of a deferred tax asset valuation reserve.
The quarterly and yearly net income compare to third-quarter net income of $2.90 million, or six cents a share, and fourth-quarter 2013 income of $2.24 million, or four cents a share. Full-year 2013 net income was $10.03 million, or seven cents a share.
UCFC also announced its board of directors declared a penny per share cash dividend payable Feb. 17 to shareholders of record Feb. 6.
In the highlights UCFC cited in its fourth-quarter results, it said it had pretax core earnings of $4.1 million, adjusted for a debt prepayment charge of $2.0 million. ”The prepayment and modification of $110.0 million of high-cost debt during the third and fourth quarters was a key initiative of 2014,” said Gary M. Small, president and CEO of UCFC and Home Savings, “and positions the company for meaningful interest margin improvement going forward.”
The bank prepaid a $30 million repurchase agreement and modified a $50 million advance from the Federal Home Loan Bank.
Annualized growth during the fourth quarter was 13%, for the year 12%, UCFC said.
And the net interest margin rose to 3.16%, up from 3.06% the third quarter.
Total loans increased $115.7 million to $1.165 billion at Dec. 31 from $1.049 billion a year earlier.
Key performance ratios for the quarters ended Dec. 31, Sept. 30, and Dec. 31, 2013:
The third- and fourth-quarter 2014 efficiency ratios exclude the prepayment penalty on the repurchase agreements, UCFC said in a footnote.
Net interest income was $13.35 million compared to $12.73 million the previous quarter and $13.07 million the year-ago quarter.
Noninterest income (includes fees and mortgage service payments from loans originated but sold) fell to $2.91 million from $4.17 million the third quarter and $4.12 million the fourth quarter of 2013.
Noninterest expense (includes wages and benefits, rents, data processing, marketing and Federal Deposit Insurance Corp. premiums) was $13.94 million compared to $14.25 million the third quarter and $14.98 million the last quarter of 2013.
Credit quality continues to improve as reflected by a ratio of 1.78% of nonperforming loans (those 90 days and more past due) to total loans during the fourth quarter, 1.85% the third and 2.29% the final quarter of 2013.
Total nonperforming loans stood at $20.45 million, $20.71 million and $23.59 million at the end of each period.
Nonperforming assets to total assets showed ratios of 1.30%, 1.40% and 1.72% respectively. Total nonperforming assets at the end of each quarter respectively were $23.92 million, $25.19 million and $29.93 million.
Total loans continued to increase, driven by commercial lending, UCFC said. The commercial loan portfolio was $29.2 million higher, or 13.2% larger, at Dec. 31 than a year earlier. Residential real estate loans rose 14.9%, or $94.9 million during 2014.
At Dec. 31, total assets were $1.834 billion, up from $1.738 billion a year earlier.
SOURCE: United Community Financial Corp.
Copyright 2015 The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.