-----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, J8wBlvDV3NdRbFsu+gqRbHRjAp1sEoeXRp8Xb3aTGz9TfnlxIxcjfFIA67LX71Yg 0p9vX+IX4IR5TQgC2PFdAw== 0000912057-00-018803.txt : 20000420 0000912057-00-018803.hdr.sgml : 20000420 ACCESSION NUMBER: 0000912057-00-018803 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000419 ITEM INFORMATION: FILED AS OF DATE: 20000419 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: 604858 BUSINESS ADDRESS: STREET 1: 275 FEDERAL PLAZA WEST CITY: YOUNGSTOWN STATE: OH ZIP: 44503-1203 BUSINESS PHONE: 3307420500 8-K 1 FROM 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: April 19, 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 FIRST QUARTER 2000 Youngstown, Ohio - April 19, 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 March 31, 2000 of $3.1 million, or $0.09 per diluted share. Net income for the comparable period in 1999 was $5.1 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 1.00% and 4.81%, respectively, for the three months ended March 31, 2000. The annualized return on average assets and return on average equity were 1.58% and 4.31%, respectively, for the three months ended March 31, 1999. The primary reason for the decrease in net income of $2.0 million for the three months ended March 31, 2000, compared to the same period in 1999, was due to a decrease of $2.5 million in net interest income and an increase in noninterest expense of $2.3 million, which were partially offset by a $1.5 million increase in noninterest income and a $1.3 million decrease in income taxes. 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 $1.8 million is the primary reason for the increase in noninterest expense. This increase was primarily due to $567,000 in expense related to the Butler Wick Retention Plan and the recognition of $419,000 in expense related to the United Community Recognition and Retention Plan. The remainder of the increase is primarily due to increases in commissions paid due to an increase in the volume of transactions and merit increases. The primary reason for the increase in noninterest income is a $1.3 million increase in commissions earned, which is attributable to an increase in the volume of transactions due to the current volatile state of the stock market. Total shareholders' equity increased $1.0 million, or 0.4%, to $257.9 million at March 31, 2000 from $256.9 million at December 31, 1999. The increase was primarily due to earnings for the three months, which were partially offset by the first quarter dividends of $0.075 per share paid in March of 2000. Book value as of March 31, 2000 was $7.60 per share. Total assets decreased $89.2 million, or 6.7%, from December 31, 1999 to March 31, 2000, primarily as a result of a decline in cash and cash equivalents of $91.0 million, or 81.7%, and a reduction in securities of $23.3 million, or 5.5%. These decreases were primarily used to reduce United Community's other borrowed funds by $84.3 million, to fund an increase in net loans of $12.9 million and to fund an increase in margin accounts of $8.3 million. Deposits declined $9.2 million, or 1.1%, primarily due to a decrease in certificate accounts. Douglas M. McKay, President of United Community, stated, "Due to capital management steps taken, United Community has increased its return on average equity from 4.31% for the three months ended March 31,1999 to 4.81% for the three months ended March 31, 2000. At the same time, United Community was able to increase loans $12.9 million and margin accounts $8.3 million." 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 10 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 March 31, 2000 December 31,1999 -------------- ----------------- (In thousands, except per share data) SELECTED FINANCIAL CONDITION DATA: ASSETS Cash and cash equivalents $ 20,418 $ 111,445 Mortgage-backed securities 240,327 251,638 Investment securities 158,630 170,652 Federal Home Loan Bank stock 13,048 12,825 Net loans receivable: Loans held for investment 738,047 725,632 Loans held for sale 4,293 3,860 Allowance for loan losses (6,390) (6,405) Real estate owned 204 158 Other assets 69,784 57,768 ----------- ----------- Total assets $ 1,238,361 $ 1,327,573 =========== =========== LIABILITIES Deposits $ 824,838 $ 834,087 Other borrowed funds 129,274 213,578 Other liabilities 26,311 23,040 ----------- ----------- Total liabilities 980,423 1,070,705 SHAREHOLDERS' EQUITY Preferred stock-no par value; 1,000,000 shares authorized and unissued at March 31, 2000 -- -- Common stock-no par value; 499,000,000 shares authorized; 37,756,582 shares issued and 33,940,113 outstanding at March 31, 2000 136,616 136,509 Retained earnings 154,115 153,553 Other comprehensive loss (3,478) (3,003) Unearned compensation (29,315) (30,191) ----------- ----------- Total shareholders' equity 257,938 256,868 ----------- ----------- Total liabilities and shareholders' equity $ 1,238,361 $ 1,327,573 =========== =========== Book value per share $ 7.60 $ 7.46 Dividends paid per share $ 0.075 $ 0.075
Three Months Ended Three Months Ended Three Months Ended March 31, December 31, March 31, 2000 1999 1999 --------------- --------------- --------------- (In thousands, except per share data) SELECTED EARNINGS DATA (UNAUDITED): Interest income $ 21,879 $ 22,836 $ 22,046 Interest expense 10,083 10,968 7,702 --------------- --------------- --------------- Net interest income 11,796 11,868 14,344 Provision for loan losses -- -- 75 Noninterest income: Commissions 5,384 4,294 4,104 Service fees and other charges 1,255 1,249 1,077 Underwriting and investment banking 21 93 255 Net gains (losses) Securities 381 526 136 Other 2 7 1 Other income 212 180 177 --------------- --------------- --------------- Total noninterest income 7,255 6,349 5,750 Noninterest expense Salaries and employee benefits 9,628 9,545 7,827 Occupancy 456 558 457 Equipment and data processing 1,300 1,356 1,250 Acquisition expense -- 48 -- Other noninterest expense 3,057 2,826 2,559 --------------- --------------- --------------- Total noninterest expense 14,441 14,333 12,093 Income before taxes 4,610 3,884 7,926 Income taxes 1,508 1,974 2,801 --------------- --------------- --------------- Net income $ 3,102 $ 1,910 $ 5,125 =============== =============== =============== Basic earnings per share $ 0.09 $ 0.06 $ 0.15 Diluted earnings per share $ 0.09 $ 0.05 $ 0.15
Three Months Ended Three Months Ended Three Months Ended March 31, December 31, September 30, 2000 1999 1999 ---------------------- ---------------------- ---------------- (Dollars in thousands) AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED): Net loans held for investment (including allowance for loan losses $ 724,776 $ 712,985 $ 694,989 of $6,390, $6,405 and $6,422, respectively) Net loans held for sale 3,979 3,526 3,473 Mortgage-backed securities 246,713 259,128 274,326 Investment securities 162,364 191,246 208,554 Margin accounts 36,295 31,771 33,063 Other interest-earning assets 23,203 78,452 63,075 Total interest-earning assets 1,197,330 1,277,108 1,277,480 Total assets 1,236,916 1,324,143 1,315,286 Certificates of deposit 448,488 440,658 418,177 Checking, demand and savings accounts 365,412 362,148 356,063 Other interest bearing liabilities 127,320 160,962 28,694 Total interest-bearing deposits 941,220 963,768 802,934 Total noninterest-bearing liabilities 37,925 101,980 33,883 Total liabilities 979,145 1,065,748 836,817 Shareholders' equity 257,771 258,395 478,469 Common shares outstanding for basic EPS calculation 32,923,217 33,827,224 34,454,284 Common shares outstanding for diluted EPS calculation 33,437,697 34,367,314 34,454,284 SUPPLEMENTAL LOAN DATA: Loans originated $ 45,642 $ 54,871 $ 69,720 Loans purchased 322 -- -- Loan chargeoffs 28 29 29 Recoveries on loans 12 13 5 As of As of As of March 31, 2000 December 31, 1999 September 30, 1999 -------------- ----------------- ------------------ (Dollars in thousands) SUPPLEMENTAL DATA: Nonaccrual loans $ 3,952 $ 3,568 $ 3,687 Restructured loans 216 317 1,651 Other real estate owned 204 158 222 Total nonperforming assets 4,372 4,043 5,560 Loans serviced for others 5,207 5,292 5,408 Number of full time equivalent employees 578 583 585 Mortgage-backed securities available for sale 108,670 113,559 120,202 Mortgage-backed securities held to maturity 131,657 138,079 145,128 Investment securities trading 6,590 7,657 6,746 Investment securities available for sale 150,865 161,904 197,104 Investment securities held to maturity 1,175 1,091 -- Federal home loan bank stock 13,048 12,825 12,603 Fair value of held to maturity securities 129,465 137,091 144,265 REGULATORY CAPITAL DATA: Regulatory tangible capital $ 153,021 $ 320,119 $ 315,424 Tangible capital ratio 13.66 26.75 27.71 Regulatory core capital 153,021 320,119 315,424 Core capital ratio 13.66 26.75 27.71 Regulatory total capital 159,311 326,376 321,693 Total risk adjusted assets 645,164 647,426 633,729 Total risk adjusted ratio 24.69 50.41 49.77
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