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<PAGE>
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 14, 1999
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United Community Financial Corp.
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(Exact name of registrant as specified in its charter)
Ohio 0-24399 34-1856319
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(State or other jurisdiction (Commission (IRS Employer of
incorporation ) File Number) Identification Number)
275 Federal Plaza West
Youngstown, Ohio 44503-1203
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (330) 742-0500
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Not Applicable
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(Former name or former address, if changes since last report.)
<PAGE>
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 1999
Youngstown, Ohio - April 14, 1999 - United Community Financial Corp. (Nasdaq:
UCFC), holding company for The Home Savings and Loan Company of Youngstown,
Ohio, (Home Savings), announced net income for the three months ended March 31,
1999 of $4.7 million, or $.15 per share. Net income for the comparable period in
1998 was $2.7 million. United Community Financial Corp.'s (UCFC) annualized
return on average assets and return on average equity were 1.49% and 4.04%,
respectively, for the three months ended March 31, 1999. The annualized return
on average assets and return on average equity for the comparable period in 1998
were 1.03% and 7.59%, respectively. Effective July 8, 1998, Home Savings
converted from a mutual association to a stock company and formed UCFC.
Douglas M. McKay, President of UCFC, said "There was a significant increase in
earnings for the first quarter of 1999 compared to the same period in 1998. This
increase was primarily attributable to a substantial increase in net interest
income, due to a reduction in our overall cost of interest-bearing liabilities
combined with an increase in interest-earning assets."
Total shareholders' equity increased $2.4 million to $467.0 million at March 31,
1999 from $464.6 million at December 31, 1998. This increase was primarily due
to first quarter earnings which were partially offset by the first quarter
dividend of $0.075 per share paid in March 1999. Book value per share was $14.52
as of March 31, 1999. Total assets increased $5.9 million from December 31, 1998
to March 31, 1999. The primary reason for the increase in total assets was a
result of an increase in net loans of $13.4 million which was partially offset
by decreases of $4.4 million in the investment portfolio and $5.0 million in
cash and cash equivalents. Deposits increased by $3.7 million as of March 31,
1999 compared to December 31, 1998.
Home Savings has 14 offices located throughout Mahoning, Columbiana and Trumbull
Counties in Northeastern Ohio. Additional information may be found on Home
Savings' web site: www.homesavingsandloan.com.
<PAGE>
UNITED COMMUNITY FINANCIAL CORP.
<TABLE>
<CAPTION>
As of As of
March 31, 1999 December 31,1998
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(In thousands, except per share data)
<S> <C> <C>
SELECTED FINANCIAL CONDITION DATA:
ASSETS
Cash and cash equivalents $ 165,494 $ 170,508
Mortgage-backed securities 264,123 281,889
Investment securities 129,221 115,881
Federal Home Loan Bank stock 12,164 11,958
Net loans receivable:
Loans held for investment 673,020 659,903
Loans held for sale 4,306 3,993
Allowance for loan losses (6,461) (6,398)
Real estate owned 196 78
Other assets 21,092 19,493
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Total assets $ 1,263,155 $ 1,257,305
LIABILITIES
Deposits $ 781,301 $ 777,583
Other liabilities 14,815 15,077
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Total liabilities $ 796,116 $ 792,660
SHAREHOLDERS' EQUITY
Preferred stock-no par value; 1,000,000 shares authorized and unissued
at March 31, 1999 - -
Common stock-no par value; 499,000,000 shares authorized; 34,715,625
shares issued-and 32,175,008 outstanding at March 31, 1999 $ 342,921 $ 342,840
Retained earnings 149,235 146,934
Other comprehensive income 289 733
Unearned compensation (25,406) (25,862)
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Total shareholders' equity $ 467,039 $ 464,645
Book value per share $ 14.52 $ 14.46
Dividends paid per share $ 0.075 $ 0.075
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended Three Months Ended
March 31, December 31, March 31,
1999 1998 1998
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(In thousands, except per share data)
<S> <C> <C> <C>
SELECTED EARNINGS DATA:
Interest income $ 21,598 $ 21,974 $ 19,678
Interest expense 7,507 7,777 9,556
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Net interest income 14,091 14,197 10,122
Provision for loan losses 75 150 250
Noninterest income:
Service fees and other charges 273 299 280
Net gains (losses)
Securities - - 13
Other 1 (10) (52)
Other income 116 193 137
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Total noninterest income 390 482 378
Noninterest expense
Salaries and employee benefits 4,183 4,306 3,581
Occupancy 301 317 313
Equipment and data processing 646 613 603
Other noninterest expense 1,983 2,010 1,598
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Total noninterest expense 7,113 7,246 6,095
Income before taxes 7,293 7,283 4,155
Income taxes 2,582 2,725 1,454
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Net income $ 4,711 $ 4,558 $ 2,701
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Basic earnings per share $ 0.15 $ 0.14 N/A
Diluted earnings per share $ 0.15 $ 0.14 N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended
March 31, December 31,
1999 1998
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(Dollars in thousands)
<S> <C> <C>
AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA:
Net loans held for investment (including allowance for loan losses $ 660,225 $ 646,962
of $6,413 and $6,315, respectively)
Net loans held for sale 4,035 3,679
Mortgage-backed securities 270,668 284,989
Investment securities 123,140 104,940
Other interest-earning assets 171,948 182,192
Total interest-earning assets 1,230,016 1,222,762
Total assets 1,261,453 1,253,463
Certificates of deposit 429,325 432,713
Checking, demand and savings accounts 340,454 331,182
Total interest-bearing deposits 769,779 763,895
Total noninterest-bearing deposits 6,712 6,752
Total liabilities 795,367 789,276
Shareholders' equity 466,086 464,187
Common shares outstanding 32,152,489 32,105,871
SUPPLEMENTAL LOAN DATA:
Loans originated $ 56,542 $ 67,718
Loans purchased - -
Loan chargeoffs 22 29
Recoveries on loans 9 16
</TABLE>
<TABLE>
<CAPTION>
As of As of
March 31, 1999 December 31, 1998
------------------- ----------------------
(Dollars in thousands)
<S> <C> <C>
SUPPLEMENTAL DATA:
Nonaccrual loans $ 4,856 $ 5,729
Restructured loans 1,822 1,832
Other real estate owned 196 78
Total nonperforming assets 6,874 7,639
Loans serviced for others 5,696 6,002
Number of full time equivalent employees 417 418
Mortgage-backed securities available for sale 97,127 98,890
Mortgage-backed securities held to maturity 166,996 182,999
Investment securities available for sale 129,221 110,888
Investment securities held to maturity - 4,993
Federal home loan bank stock 12,164 11,958
Fair value of held to maturity securities 170,127 192,026
REGULATORY CAPITAL DATA:
Regulatory tangible capital $ 303,666 $ 299,617
Tangible capital ratio 26.97 26.80
Regulatory core capital 303,666 299,617
Core capital ratio 26.97 26.80
Regulatory total capital 310,031 305,919
Total risk adjusted assets 605,685 593,913
Total risk adjusted ratio 51.19 51.51
</TABLE>
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