-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SqHBYh0o+sGKtDbPSfqpOy+c533kkpmCTG4oqMmFG9SDPB0n0cfnrItHWyJajEYI LgIihvPCrLs4Hx6Yb12IsQ== 0000912057-00-002477.txt : 20000203 0000912057-00-002477.hdr.sgml : 20000203 ACCESSION NUMBER: 0000912057-00-002477 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000126 ITEM INFORMATION: FILED AS OF DATE: 20000126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED COMMUNITY FINANCIAL CORP CENTRAL INDEX KEY: 0000707886 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 341856319 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-24399 FILM NUMBER: 513803 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: January 26, 2000 ------------------------ United Community Financial Corp. ------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Ohio 0-24399 34-1856319 ------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation ) File Number) Identification Number) 275 Federal Plaza West Youngstown, Ohio 44503-1203 -------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (330) 742-0500 ----------------- Not Applicable -------------------------------------------------------------------- (Former name or former address, if changes since last report.) UNITED COMMUNITY FINANCIAL CORP. 275 Federal Plaza West Youngstown, Ohio 44503-1203 FOR IMMEDIATE RELEASE Douglas M. McKay President (330) 742-0500, Ext. 801 UNITED COMMUNITY FINANCIAL CORP. ANNOUNCES EARNINGS FOR FOURTH QUARTER 1999 Youngstown, Ohio - January 26, 2000 - United Community Financial Corp. (Nasdaq: UCFC), holding company for The Home Savings and Loan Company of Youngstown, Ohio, and Butler Wick Corp., announced net income for the three months ended December 31, 1999 of $1.9 million, or $0.05 per diluted share. Net income for the comparable period in 1998 was $5.0 million or $0.15 per diluted share. All prior period financial information has been restated for the Butler Wick acquisition in August 1999, which was accounted for as a pooling of interests. United Community's annualized return on average assets and return on average equity were 0.58% and 2.96% respectively, for the three months ended December 31, 1999. The annualized return on average assets and return on average equity were 1.54% and 4.19% respectively, for the three months ended December 31, 1998. The primary reason for the decrease in net income of $3.1 million for the three months ended December 31, 1999 compared to the same period in 1998 was due to a decrease of $2.6 million in net interest income and an increase in noninterest expense of $2.2 million which was partially offset by a $610,000 increase in noninterest income. The decrease in net interest income was primarily due to an increase in interest expense on other borrowed funds, in conjunction with the special $6.00 per share distribution declared on September 30, 1999. An increase in salaries and employee benefits of $1.6 million is the primary reason for the increase in noninterest expense. This increase was due to the recognition of $419,000 in expense related to the United Community Recognition and Retention Plan (RRP), an increase in ESOP expense of $561,000 and $813,000 in expense related to the Butler Wick Retention Plan. The primary reason for the increase in noninterest income is a $533,000 increase in gains recognized on securities. Net income for the twelve months ended December 31, 1999 was $10.4 million, or $0.30 per diluted share, compared to $10.1 million for the twelve months ended December 31, 1998. Net interest income increased $4.5 million, or 8.8%, resulting from an increase in interest-earning assets combined with a reduction in the interest rates of interest-bearing liabilities. Noninterest expense increased $4.1 million for the year ended December 31, 1999 compared to 1998. The increase in noninterest expense was primarily due to a $14.3 million increase in salaries and employee benefits. This increase was primarily due to a $6.4 million one-time compensation expense due to the effect of the $6.00 per share special capital distribution on the RRP and a $3.3 million compensation expense for the first year of the RRP. The increase in noninterest expense was partially offset by a decrease in charitable contributions of $11.8 million due to United Community making a one-time donation to the Home Savings and Loan Charitable Foundation in 1998. Through this foundation, United Community will continue to have an impact in the community in areas of education, civic pride, youth enrichment, cultural activities and health care. Total shareholders' equity decreased $217.9 million, or 45.9%, to $256.9 million at December 31, 1999 from $474.8 million at December 31, 1998. The primary reason for the decrease was the $226.5 million special capital distribution. Book value per share was $7.46 as of December 31, 1999. Total assets increased $29.9 million, or 2.3%, from December 31, 1998 to December 31, 1999, primarily as a result of a $65.6 million, or 10.0%, increase in net loans and a $20.4 million, or 5.1%, increase in securities. The increase in loans and securities and the funds needed for the $6.00 per share special capital distribution were funded by an increase in other borrowed funds of $186.9 million, a $56.5 million increase in deposits and a reduction of $61.0 million in cash equivalents. Douglas M. McKay, President of United Community, stated, "United Community was able to take several steps throughout the year to provide a future benefit to United Community's shareholders. Among the steps taken, a special capital distribution of $6.00 per share was paid on October 26, 1999. The Board of Directors, after careful analysis of United Community's capital position combined with anticipated future needs, determined that this distribution of capital will help United Community manage excess capital and enhance the value of our shareholders' investment in United Community. During 1999, United Community implemented a RRP plan to retain the expertise of individuals in key positions by providing them with an ownership interest in United Community. The future impact to earnings caused by the RRP plan will be greatly reduced in comparison to this initial year of implementation. We also consummated the acquisition of Butler Wick Corp. The acquisition compliments our growth plan which contains some stringent selection criteria. As we continue to look for opportunities to enhance shareholder value, we intend to pursue affiliations with companies that are well established, successful, well managed, and have a commitment to providing exceptional value to customers." Home Savings and Butler Wick are wholly owned subsidiaries of United Community. Home Savings has 14 offices located throughout Mahoning, Columbiana and Trumbull Counties in Northeastern Ohio and Butler Wick has 9 offices located throughout Northeastern Ohio and Western Pennsylvania. Additional information on United Community, Home Savings and Butler Wick may be found on United Community's web site: www.ucfcorp.com. UNITED COMMUNITY FINANCIAL CORP.
As of As of December 31, 1999 December 31,1998 ----------------- ---------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 111,445 $ 172,409 Mortgage-backed securities 251,638 281,889 Investment securities 170,652 119,997 Federal Home Loan Bank stock 12,825 11,958 Net loans receivable: Loans held for investment 725,632 659,903 Loans held for sale 3,860 3,993 Allowance for loan losses (6,405) (6,398) Real estate owned 158 78 Other assets 57,768 53,860 ----------- ----------- Total assets $ 1,327,573 $ 1,297,689 =========== =========== LIABILITIES Deposits $ 834,087 $ 777,583 Other borrowed funds 213,578 26,727 Other liabilities 23,040 18,558 ----------- ----------- Total liabilities $ 1,070,705 $ 822,868 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at December 31, 1999 -- -- Common stock-no par value; 499,000,000 shares authorized; 37,758,166 shares issued and 34,420,931 outstanding at December 31, 1999 $ 136,509 $ 345,872 Retained earnings 153,553 154,078 Other comprehensive income (loss) (3,003) 733 Unearned compensation (30,191) (25,862) ----------- ----------- Total shareholders' equity $ 256,868 $ 474,821 ----------- ----------- Total liabilities and shareholders' equity $ 1,327,573 $ 1,297,689 =========== =========== Book value per share $ 7.46 $ 14.03 Dividends paid per share per quarter $ 0.075 $ 0.075
Three Months Ended Three Months Ended Three Months Ended December 31, September 30, December 31, 1999 1999 1998 --------------------- ---------------------- ---------------------- (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 22,836 $ 22,699 $ 22,546 Interest expense 10,968 7,850 8,048 --------------------- ---------------------- ---------------------- Net interest income 11,868 14,849 14,498 Provision for loan losses - - 150 Noninterest income: Commissions 4,294 3,563 4,224 Service fees and other charges 1,249 1,085 1,195 Underwriting and investment banking 93 40 92 Net gains (losses) Securities 526 21 (7) Other 7 (2) (10) Other income 180 155 245 --------------------- ---------------------- ---------------------- Total noninterest income 6,349 4,862 5,739 Noninterest expense Salaries and employee benefits 9,545 18,110 7,916 Occupancy 558 500 495 Equipment and data processing 1,356 1,234 1,259 Acquisition expense 48 431 - Other noninterest expense 2,826 2,295 2,507 --------------------- ---------------------- ---------------------- Total noninterest expense 14,333 22,570 12,177 Income (loss) before taxes 3,884 (2,859) 7,910 Income taxes 1,974 (916) 2,942 --------------------- ---------------------- ---------------------- Net income (loss) $ 1,910 $ (1,943) $ 4,968 ===================== ====================== ====================== Basic earnings (loss) per share $ 0.06 $ (0.06) $ 0.15 Diluted earnings (loss) per share $ 0.05 $ (0.06) $ 0.15
Twelve Months Ended Twelve Months Ended December 31, December 31, 1999 1998 ----------------------- ---------------------- (In thousands, except per share data) SELECTED EARNINGS DATA: Interest income $ 89,971 $ 87,755 Interest expense 34,284 36,570 ----------------------- ---------------------- Net interest income 55,687 51,185 Provision for loan losses 100 650 Noninterest income: Commissions 16,186 15,842 Service fees and other charges 4,644 4,232 Underwriting and investment banking 636 743 Net gains (losses) Securities 559 272 Other (4) (68) Other income 700 1,116 ----------------------- ---------------------- Total noninterest income 22,721 22,137 Noninterest expense Salaries and employee benefits 43,348 29,039 Occupancy 2,031 1,953 Equipment and data processing 5,148 4,946 Acquisition expense 478 - Other noninterest expense 10,032 20,993 ----------------------- ---------------------- Total noninterest expense 61,037 56,931 Income before taxes 17,271 15,741 Income taxes 6,876 5,612 ----------------------- ---------------------- Net income $ 10,395 $ 10,129 ======================= ====================== Basic earnings per share $ 0.31 N/A Diluted earnings per share $ 0.30 N/A
Three Months Ended Three Months Ended Three Months Ended December 31, September 30, June 30, 1999 1999 1999 ------------------ ------------------ ------------------ (Dollars in thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED): Net loans held for investment (including allowance for loan losses $ 712,985 $ 694,989 $ 672,986 of $6,405, $6,422 and $6,446, respectively) Net loans held for sale 3,526 3,473 4,051 Mortgage-backed securities 259,128 274,326 272,823 Investment securities 191,246 208,554 162,006 Margin accounts 31,771 33,063 30,456 Other interest-earning assets 78,452 63,075 128,737 Total interest-earning assets 1,277,108 1,277,480 1,271,059 Total assets 1,324,143 1,315,286 1,306,084 Certificates of deposit 440,658 418,177 423,562 Checking, demand and savings accounts 362,148 356,063 350,471 Other interest bearing liabilities 160,962 28,694 24,462 Total interest-bearing deposits 963,768 802,934 798,495 Total noninterest-bearing liabilities 101,980 33,883 28,956 Total liabilities 1,065,748 836,817 827,451 Shareholders' equity 258,395 478,469 478,633 Common shares outstanding 34,901,091 34,454,284 33,898,237 SUPPLEMENTAL LOAN DATA: Loans originated $ 54,871 $ 69,720 $ 63,743 Loans purchased - - - Loan chargeoffs 29 29 45 Recoveries on loans 13 5 4
As of As of As of December 31, 1999 September 30, 1999 June 30, 1999 ---------------------- ---------------------- ---------------------- (Dollars in thousands) SUPPLEMENTAL DATA: Nonaccrual loans $ 3,568 $ 3,687 $ 3,805 Restructured loans 317 1,651 1,712 Other real estate owned 158 222 152 Total nonperforming assets 4,043 5,560 5,669 Loans serviced for others 5,292 5,408 5,535 Number of full time equivalent employees 583 585 575 Mortgage-backed securities available for sale 113,559 120,202 126,501 Mortgage-backed securities held to maturity 138,079 145,128 155,112 Investment securities trading 7,657 6,746 - Investment securities available for sale 161,904 197,104 205,469 Investment securities held to maturity 1,091 - - Federal home loan bank stock 12,825 12,603 12,376 Fair value of held to maturity securities 137,091 144,265 155,838 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 320,119 $ 315,424 $ 307,885 Tangible capital ratio 26.75 27.71 27.00 Regulatory core capital 320,119 315,424 307,885 Core capital ratio 26.75 27.71 27.00 Regulatory total capital 326,376 321,693 314,235 Total risk adjusted assets 647,426 633,729 623,181 Total risk adjusted ratio 50.41 49.77 50.42
-----END PRIVACY-ENHANCED MESSAGE-----