|
|
|
|
|
|
|
|
|
|
|
|
|
<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 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.)
<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 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.
<PAGE>
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.
<PAGE>
UNITED COMMUNITY FINANCIAL CORP.
<TABLE>
<CAPTION>
As of As of
March 31, 2000 December 31,1999
-------------- -----------------
(In thousands, except per share data)
SELECTED FINANCIAL CONDITION DATA:
<S> <C> <C>
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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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):
<S> <C> <C> <C>
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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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):
<S> <C> <C> <C>
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
</TABLE>
|
|