United Community Financial Corp. (Company) (NASDAQ: UCFC), parent company of Home Savings Bank (Home Savings), announced today net income of $8.6 million and diluted earnings per share (“EPS”) of $0.171 for the quarter ended March 31, 2018. The first quarter of 2017 results included two months of operations from Premier Bank & Trust that was acquired on January 31, 2017. In comparison, the first quarter of 2018 results include a full quarter of operations.

First quarter 2018 highlights:

  • Loan growth of 2.7% for the quarter
  • Customer deposit growth of 5.8% for the quarter
  • Net interest margin improved four basis points to 3.47% for the quarter
  • ROA of 1.28%, ROE of 11.44% for the quarter
  • Dividend of $0.06 per common share declared

Gary M. Small President and Chief Executive Officer of the Company commented, “I am very pleased with the first quarter results. We achieved excellent loan and deposit growth while margin metrics remained very strong. The investments made in our team and the expansion of our product offerings in 2017, are clearly making a difference in our results today.”

Strong Loan and Deposit Growth

Total loan growth for the first quarter was $57.1 million, or 11.0% on an annualized basis. At March 31, 2018, total net loans aggregated $2.14 billion.

Commercial loan growth was $50.5 million for the quarter ended March 31, 2018, or 24.6% on an annualized basis. Consumer loans increased $5.6 million, or 8.2% annualized, during the same time period. The increase in consumer loans was primarily due to the growth and expansion of indirect auto lending, which grew 16.7% during the first quarter of 2018.

Total customer deposit growth for the first quarter was $104.9 million, or 5.8% for the quarter. Included in that growth was an increase of $21.9 million of non-interest bearing deposits, which grew at an annualized rate of 24.7%. The Company experienced deposit gains from all lines of business including commercial, private banking, consumer and public funds. Total customer deposits totaled $1.9 billion at March 31, 2018.

Net Interest Margin Expands

Net interest income totaled $21.5 million and $21.6 million on a fully taxable equivalent (FTE) basis for the quarter ended March 31, 2018, up 2.5% from the quarter ended December 31, 2017. The positive change is a result of a higher level of earning assets compared to the prior period as well as fees associated with the early payoff of loans.

The net interest margin on a fully taxable equivalent basis was 3.47% for the first quarter, which was four basis points higher than the fourth quarter of 2017. This was partially offset by a lower FTE adjustment of approximately two basis points, due to the tax law change.

Excluding purchase accounting yield adjustments, the net interest margin would have been 8 basis points lower, or 3.39%, for the three months ended March 31, 2018.

Nonperforming Loans to Total Loans Ratio Decreases during the First Quarter

Asset quality remained stable during the first quarter. The ratio of nonperforming loans to total loans was 0.59% at March 31, 2018, which is comparable to what was reported in the previous quarter and the quarter a year ago.

The provision for loan losses totaled $407,000 for the first quarter of 2018, which was down $808,000 in comparison to the prior quarter. Net charge-offs for the quarter, both gross and net, remained negligible. As of March 31, 2018, the Company’s allowance for loan losses to total loans was 1.04%, versus 1.05% at December 31, 2017 and 1.02% at March 31, 2017.

Loans acquired through the acquisition during the first quarter of 2017 were recorded at fair value. When combining the remaining fair value adjustment of $3.3 million and the Company’s allowance, the Company’s allowance as a percentage of total loans increases to 1.20%.

Non-Interest Income

Non-interest income increased to $5.8 million in the first quarter of 2018 from $5.4 million reported in the first quarter of 2017. The Company realized strong gains in insurance agency income, mortgage servicing fees and trust fees along with additional gains on the sale of available for sale securities. Mortgage banking income was up slightly from the same period a year ago even as mortgage rates have climbed. The Company continues to make strides in increasing its share of the business in this segment even in a more difficult operating environment.

Non-Interest Expense

Non-interest expense was $16.6 million for the first quarter of 2018 compared to $15.3 million in the first quarter of 2017 when merger expense is excluded. The resulting increase is due to higher operating expenses after the acquisition, which occurred on January 31, 2017, with only two months of expense included in the 2017 results. In addition, the Company took advantage of timing opportunities in the market during the latter half of 2017 to add talented employees to expand several lines of business including treasury management, wealth management and commercial lending. The additional staff increased salary expense in the first quarter of 2018 compared to the first quarter of 2017, but also contributed to the deposit and revenue growth success.

Effective Tax Rate

The Company’s effective tax rate on an FTE basis at March 31, 2018 was 18.06% compared to 34.05% at March 31, 2017. The decline was due to the enactment of recent tax legislation.

Dividend to be Paid

On April 17, 2018, the Board of Directors declared a quarterly cash dividend of $0.06 per common share payable May 11, 2018 to shareholders of record at the close of business April 27, 2018.

Conference Call

United Community Financial Corp. will host an earnings conference call on Wednesday, April 18, 2018, at 10:00 a.m. ET., to provide an overview of the Company's first quarter 2018 results and highlights. The conference call may be accessed by calling 1-877-272-7661 ten minutes prior to the start time. Please ask to be joined into the United Community Financial Corp. (UCFC) call. Additionally, a live webcast may be accessed from the Company’s website ir.ucfconline.com. Click on 1st Quarter 2018 Conference Call on our corporate profile page to join the webcast.

United Community Financial Corp.

Home Savings is a wholly owned subsidiary of the Company, offering a full line of commercial, wealth management and consumer banking products and services with 35 retail banking offices (34 in Ohio and one in Pennsylvania). Home Savings also has residential mortgage loan centers servicing Ohio, West Virginia, western Pennsylvania, northern Kentucky, and eastern Indiana. Additional information on the Company, Home Savings and James & Sons Insurance is available at ir.ucfconline.com.

______________

When used in this press release, the words or phrases “believes,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project”, “will have”, “can expect” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
     
March 31, December 31,
2018 2017 F/(U)
(Dollars in thousands)

Assets:

Cash and deposits with banks $ 27,683 $ 34,365 -19.4 %
Federal funds sold   19,058     12,515   52.3 %
Total cash and cash equivalents 46,741 46,880 -0.3 %
Securities:
Available for sale, at fair value 257,908 270,561 -4.7 %
Held to maturity (fair value of $78,033 and $82,126, respectively) 80,685 82,911 -2.7 %
Loans held for sale, at lower of cost or market — 211

-100.0

%

Loans held for sale, at fair value 79,292 83,541 -5.1 %
Loans, net of allowance for loan losses of $21,610 and $21,202 2,061,443 1,999,877 3.1 %
Federal Home Loan Bank stock, at cost 19,324 19,324 0.0 %
Premises and equipment, net 21,795 22,094 -1.4 %
Accrued interest receivable 7,615 8,190 -7.0 %
Real estate owned and other repossessed assets 1,293 1,253 3.2 %
Goodwill 20,221 20,221 0.0 %
Core deposit intangible 1,851 1,934 -4.3 %
Customer list intangible 2,030 2,060 -1.5 %
Cash surrender value of life insurance 62,922 62,488 0.7 %
Other assets   27,587     28,360   -2.7 %
Total assets $ 2,690,707   $ 2,649,905   1.5 %
 
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Interest bearing $ 1,528,262 $ 1,445,293 5.7 %
Noninterest bearing   376,904     354,970   6.2 %
Customer deposits 1,905,166 1,800,263 5.8 %
Brokered deposits   161,812     156,476   3.4 %
Total deposits 2,066,978 1,956,739 5.6 %
Borrowed funds:
Federal Home Loan Bank advances
Long-term advances 48,731 48,536 0.4 %
Short-term advances   245,000     308,000   -20.5 %
Total Federal Home Loan Bank advances 293,731 356,536 -17.6 %
Repurchase agreements and other   233     197   18.3 %
Total borrowed funds 293,964 356,733 -17.6 %
Advance payments by borrowers for taxes and insurance 18,444 25,038 -26.3 %
Accrued interest payable 1,363 1,097 24.2 %
Accrued expenses and other liabilities   13,763     16,033   -14.2 %
Total liabilities   2,394,512     2,355,640   1.7 %
 
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding — — 0.0 %

Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and 49,882,491 and 49,800,126 shares, respectively, outstanding

177,297 177,458 -0.1 %
Retained earnings 173,419 167,852 3.3 %
Accumulated other comprehensive loss (22,675 ) (18,685 ) 21.4 %
Treasury stock, at cost, 4,256,419 and 4,338,784 shares, respectively   (31,846 )   (32,360 ) -1.6 %
Total shareholders’ equity   296,195     294,265   0.7 %
Total liabilities and shareholders’ equity $ 2,690,707   $ 2,649,905   1.5 %
 
   
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
        For the Three Months Ended
March 31,   December 31, March 31,  
2018 2017 F/(U) 2017 F/(U)
(Dollars in thousands, except per share data)
Interest income
Loans $ 22,759 $ 21,529 5.7 % $ 17,558 29.6 %
Loans held for sale 858 886 -3.2 % 661 29.8 %
Securities:
Available for sale, nontaxable 388 416 -6.7 % 418 -7.2 %
Available for sale, taxable 1,215 1,222 -0.6 % 1,602 -24.2 %
Held to maturity, nontaxable 51 51 0.0 % 62 -17.7 %
Held to maturity, taxable 422 421 0.2 % 465 -9.2 %
Federal Home Loan Bank stock dividends 280 267 4.9 % 214 30.8 %
Other interest earning assets   77     57   35.1 %   80   -3.8 %
Total interest income 26,050 24,849 4.8 % 21,060 23.7 %
Interest expense
Deposits 3,097 2,603 -19.0 % 1,621 -91.1 %
Federal Home Loan Bank advances 1,420 1,365 -4.0 % 955 -48.7 %
Repurchase agreements and other   —    

1

  100.0 %   8   100.0 %
Total interest expense   4,517     3,969   -13.8 %   2,584   -74.8 %
Net interest income 21,533 20,880 3.1 % 18,476 16.5 %
Taxable equivalent adjustment   97     221   -56.1 %   237   -59.1 %
Net interest income (FTE) (1) 21,630 21,101 2.5 % 18,713 15.6 %
Provision for loan losses   407     1,215   66.5 %   1,475   72.4 %
Net interest income after provision for loan losses (FTE)   21,223     19,886   6.7 %   17,238   23.1 %
Non-interest income
Insurance agency income 577 552 4.5 % 473 22.0 %
Brokerage income 272 264 3.0 % 322 -15.5 %
Service fees and other charges:
Deposit related fees 1,300 1,436 -9.5 % 1,290 0.8 %
Mortgage servicing fees 812 780 4.1 % 735 10.5 %
Mortgage servicing rights valuation 9 6 50.0 % (3 ) -400.0 %
Mortgage servicing rights amortization (500 ) (518 ) -3.5 % (448 ) 11.6 %
Other service fees 38 42 -9.5 % 29 31.0 %
Net gains (losses):
Securities available for sale 139 — 100.0 % 29 379.3 %
Mortgage banking income 1,358 1,375 -1.2 % 1,323 2.6 %
Real estate owned and other repossessed assets charges, net (78 ) (46 ) 69.6 % (52 ) -100.0 %
Debit/credit card fees 949 995 -4.6 % 923 2.8 %
Trust fee income 469 467 0.4 % 282 100.0 %
Other income   474     1,107   -57.2 %   481   -1.5 %
Total non-interest income   5,819     6,460   -9.9 %   5,384   8.1 %
Non-interest expense
Salaries and employee benefits 9,998 8,347 -19.8 % 8,975 -11.4 %
Occupancy 1,100 1,023 -7.5 % 964 -14.1 %
Equipment and data processing 2,154 2,256 4.5 % 2,079 -3.6 %
Financial institutions tax 496 300 -65.3 % 490 -1.2 %
Advertising 235 317 25.9 % 124 -89.5 %
Amortization of intangible assets 113 114 0.9 % 83 -36.1 %
FDIC insurance premiums 290 249 -16.5 % 188 -54.3 %
Other insurance premiums 109 113 3.5 % 112 2.7 %
Professional fees:
Legal fees 299 155 -92.9 % 229 -30.6 %
Other professional fees 391 461 15.2 % 520 24.8 %
Supervisory fees 42 84 50.0 % — 0.0 %
Real estate owned and other repossessed asset expenses 36 17 -111.8 % 62 41.9 %
Acquisition related expenses — 39 0.0 % 4,962 0.0 %
Other expenses   1,337     3,854   65.3 %   1,502   11.0 %
Total non-interest expenses   16,600     17,329   4.2 %   20,290   18.2 %
Income before income taxes 10,442 9,017 15.8 % 2,332 347.8 %
Taxable equivalent adjustment 97 221 56.1 % 237 59.1 %
Income tax expense   1,789     4,294   58.3 %   557   -221.2 %
Net income $ 8,556   $ 4,502   90.0 % $ 1,538   456.3 %
 
Earnings per common share:
Basic $ 0.172 $ 0.090 91.1 % $ 0.032 437.5 %
Diluted 0.171 0.090 90.0 % 0.032 434.4 %

(1)

  

Net interest income is also presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item.

 

 
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED AVERAGE BALANCES
(Unaudited)
 
  For the three months ended
March 31, 2018   December 31, 2017   March 31, 2017
Average   Interest   Average   Interest   Average   Interest  
outstanding earned/ Yield/ outstanding earned/ Yield/ outstanding earned/ Yield/
balance paid rate balance paid rate balance paid rate
(Dollars in thousands)
Interest earning assets:
Net loans (1) $ 2,026,266 $ 22,760 4.49 % $ 1,975,847 $ 21,531 4.36 % $ 1,706,009 $ 17,560 4.12 %
Loans held for sale   80,681   858 4.31 %   88,247   886 4.02 %   67,860   661 3.90 %

Total loans, net

2,106,947 23,618 4.49 % 2,064,094 22,417 4.34 % 1,773,869 18,221 4.11 %

Securities:

Available for sale-taxable 211,332 1,215 2.30 % 214,631 1,222 2.28 % 287,775 1,602 2.23 %
Available for sale-nontaxable (2) 54,737 472 3.45 % 58,903 609 4.14 % 59,361 621 4.18 %
Held to maturity-taxable 72,627 422 2.32 % 75,136 421 2.24 % 83,655 465 2.22 %
Held to maturity-nontaxable (2)   9,227   63 2.73 %   9,233   77 3.34 %   12,451   94 3.02 %
Total securities 347,923 2,172 2.50 % 357,903 2,329 2.60 % 443,242 2,782 2.51 %
Federal Home Loan Bank stock 19,324 280 5.80 % 19,324 267 5.53 % 18,905 214 4.53 %
Other interest earning assets   22,479   77 1.39 %   22,656   57 1.01 %   43,059   80 0.74 %
Total interest earning assets 2,496,673 26,147 4.19 % 2,463,977 25,070 4.07 % 2,279,075 21,297 3.74 %
Non-interest earning assets   176,785   179,023   166,070
Total assets $ 2,673,458 $ 2,643,000 $ 2,445,145
Interest bearing liabilities:
Deposits:
Checking accounts $ 593,499 687 0.47 % $ 600,249 589 0.39 % $ 564,903 337 0.24 %
Savings accounts 303,639 27 0.04 % 304,229 27 0.04 % 301,675 30 0.04 %
Certificates of deposit
Customer certificates of deposit 581,858 1,817 1.27 % 530,297 1,458 1.10 % 468,686 1,073 0.92 %
Brokered certificates of deposit   165,169   566 1.39 %   164,147   529 1.29 %   99,380   181 0.73 %
Total certificates of deposit   747,027   2,383 1.28 %   694,444   1,987 1.14 %   568,066   1,254 0.88 %
Total interest bearing deposits 1,644,165 3,097 0.76 % 1,598,922 2,603 0.65 % 1,434,644 1,621 0.45 %
Federal Home Loan Bank advances
Long-term advances 48,603 431 3.60 % 48,409 404 3.34 % 47,823 349 2.92 %
Short-term advances   265,322   989 1.51 %   301,424   961 1.28 %   347,050   606 0.70 %
Total Federal Home Loan Bank advances 313,925 1,420 1.83 % 349,833 1,365 1.56 % 394,873 955 0.97 %
Repurchase agreements and other   213   — 0.00 %   2,114   1 0.19 %   1,051   8 3.04 %
Total borrowed funds   314,138   1,420 1.83 %   351,947   1,366 1.55 %   395,924   963 0.97 %
Total interest bearing liabilities $ 1,958,303   4,517 0.94 % $ 1,950,869   3,969 0.81 % $ 1,830,568   2,584 0.56 %
Non-interest bearing liabilities
Total noninterest bearing deposits 375,142 355,225 306,402
Other noninterest bearing liabilities   40,729   41,400   33,898
Total noninterest bearing liabilities   415,871   396,625   340,300
Total liabilities $ 2,374,174 $ 2,347,494 $ 2,170,868
Shareholders’ equity   299,284   295,506   274,277
Total liabilities and equity $ 2,673,458 $ 2,643,000 $ 2,445,145
Net interest income and interest rate spread $ 21,630 3.25 % $ 21,101 3.26 % $ 18,713 3.17 %
Net interest margin 3.47 % 3.43 % 3.28 %
Average interest earning assets to average interest bearing liabilities 127.49 % 126.30 % 124.50 %
 
 
Interest bearing deposits
Checking accounts $ 593,499 $ 687 0.47 % $ 600,249 $ 589 0.39 % $ 564,903 $ 337 0.24 %
Savings accounts 303,639 27 0.04 % 304,229 27 0.04 % 301,675 30 0.04 %
Customer certificates of deposit   581,858   1,817 1.27 %   530,297   1,458 1.10 %   468,686   1,073 0.92 %
Total customer deposits 1,478,996 2,531 0.68 % 1,434,775 2,074 0.58 % 1,335,264 1,440 0.43 %
Brokered certificates of deposit   165,169   566 1.39 %   164,147   529 1.29 %   99,380   181 0.73 %
Total interest bearing deposits 1,644,165 3,097 0.76 % 1,598,922 2,603 0.65 % 1,434,644 1,621 0.45 %
Noninterest bearing deposits   375,142   — 0.00 %   355,225   — 0.00 %   306,402   — 0.00 %
Total average deposits and cost of deposits $ 2,019,307 $ 3,097 0.62 % $ 1,954,147 $ 2,603 0.53 % $ 1,741,046 $ 1,621 0.37 %
Other interest bearing liabilities
Federal Home Loan Bank advances
Long term advances $ 48,603 $ 431 3.60 % $ 48,409 $ 404 3.34 % $ 47,823 $ 349 2.92 %
Short term advances   265,322   989 1.51 %   301,424   961 1.28 %   347,050   606 0.70 %
Total Federal Home Loan Bank advances 313,925 1,420 1.83 % 349,833 1,365 1.56 % 394,873 955 0.97 %
Repurchase agreements and other   213   — 0.00 %   2,114   1 0.19 %   1,051   8 3.04 %
Total borrowed funds   314,138   1,420 1.83 %   351,947   1,366 1.55 %   395,924   963 0.97 %
Total average deposits and other interest bearing liabilities and total cost of funds $ 2,333,445 $ 4,517 0.79 % $ 2,306,094 $ 3,969 0.69 % $ 2,136,970 $ 2,584 0.48 %
 
 
Customer deposits interest bearing and noninterest bearing $ 1,854,138 $ 2,531 0.55 % $ 1,790,000 $ 2,074 0.46 % $ 1,641,666 $ 1,440 0.35 %
Brokered deposits 165,169 566 1.39 % 164,147 529 1.29 % 99,380 181 0.73 %
Total borrowings 314,138 1,420 1.83 % 351,947 1,366 1.55 % 395,924 963 0.97 %
Cost of funds 2,333,445 4,517 0.79 % 2,306,094 3,969 0.69 % 2,136,970 2,584 0.48 %

(1)

  

Nonaccrual loans are included in the average balance at a yield of 0%.

(2)

Yields are on a fully taxable equivalent basis.

 
 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands, except per share data)
Financial Data
Total assets $ 2,690,707 $ 2,649,905 $ 2,602,365 $ 2,553,565 $ 2,557,010
Total loans, net 2,061,443 1,999,877 1,947,695 1,869,095 1,835,000
Total securities 338,593 353,472 360,371 375,738 430,357
Total deposits 2,066,978 1,956,739 1,938,699 1,893,993 1,905,205
Average interest-bearing deposits 1,644,165 1,598,922 1,563,464 1,579,438 1,434,644
Average noninterest-bearing deposits 375,142 355,225 337,067 333,784 306,402
Total shareholders' equity 296,195 294,265 291,851 285,480 277,102
Net interest income 21,533 20,880 20,503 20,494 18,476
Net interest income (FTE) (1) 21,630 21,101 20,727 20,723 18,713
Provision for loan losses 407 1,215 721 842 1,475
Noninterest income 5,819 6,460 6,305 7,090 5,384
Noninterest expense 16,600 17,329 15,464 15,176 20,290
Income tax expense 1,789 4,294 3,067 3,377 557
Net income 8,556 4,502 7,556 8,189 1,538
 
Share Data
Basic earnings per common share $ 0.172 $ 0.090 $ 0.152 $ 0.165 $ 0.032
Diluted earnings per common share 0.171 0.090 0.151 0.163 0.032
Book value per common share 5.94 5.90 5.87 5.74 5.58
Tangible book value per common share 5.45 5.41 5.38 5.27 5.10
Market value per common share 9.86 9.13 9.60 8.31 8.34
 
Common shares outstanding at end of period 49,882 49,800 49,758 49,715 49,695
Weighted average shares outstanding--basic 49,611 49,497 49,460 49,392 48,289
Weighted average shares outstanding--diluted 49,885 49,827 49,851 49,795 48,646
 
Key Ratios
Return on average assets (2) 1.28 % 0.68 % 1.17 % 1.27 % 0.25 %
Return on average equity (3) 11.44 % 6.09 % 10.43 % 11.60 % 2.24 %
Return on tangible equity (4) 12.44 % 6.62 % 11.35 % 12.66 % 2.39 %
Net interest margin 3.47 % 3.43 % 3.45 % 3.46 % 3.28 %
Efficiency ratio 60.20 % 63.73 % 57.13 % 54.71 % 83.78 %
Nonperforming loans to net loans, end of period 0.59 % 0.59 % 0.62 % 0.58 % 0.58 %
Nonperforming assets to total assets, end of period 0.65 % 0.64 % 0.75 % 0.72 % 0.74 %
Allowance for loan loss as a percent of loans, end of period 1.04 % 1.05 % 1.04 % 1.04 % 1.02 %
Delinquent loans to total net loans, end of period 0.81 % 0.86 % 0.89 % 0.77 % 0.81 %
 

(1)

  

Net interest income is presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item

(2)

Net income divided by average total assets

(3)

Net income divided by average total equity

(4)

Net income divided by average total equity, minus average intangible assets

 
         
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
 
At or for the quarters ended
March 31, December 31,

September 30,

June 30, March 31,
2018 2017

2017

2017 2017
(Dollars in thousands)
Loan Portfolio Composition
Commercial loans
Multi-family $ 137,836 $ 120,480 $ 126,977 $ 121,565 $ 108,330
Owner/nonowner occupied commercial real estate 384,533 381,611 366,747 342,300 325,633
Land 15,452 15,162 13,666 10,867 9,276
Construction 134,181 116,863 108,105 96,765 94,727
Commercial and industrial   201,132     188,500     175,581     170,758     170,398  
Total 873,134 822,616 791,076 742,255 708,364
Residential mortgage loans
Real estate 882,873 870,939 851,863 834,349 839,413
Construction   42,453     49,092     57,081     56,946     51,372  
Total 925,326 920,031 908,944 891,295 890,785
Consumer loans
Consumer   279,110     273,494     263,692     251,151     251,215  
Total   279,110     273,494     263,692     251,151     251,215  
Total loans 2,077,570 2,016,141 1,963,712 1,884,701 1,850,364
Less:
Allowance for loan losses 21,610 21,202 20,555 19,660 18,970
Deferred loan costs, net   (5,483 )   (4,938 )   (4,538 )   (4,054 )   (3,606 )
Total   16,127     16,264     16,017     15,606     15,364  
Total loans, net 2,061,443 1,999,877 1,947,695 1,869,095 1,835,000
Loans held for sale, net   79,292     83,752     84,545     86,153     75,698  
Total loans $ 2,140,735   $ 2,083,629   $ 2,032,240   $ 1,955,248   $ 1,910,698  
 
At or for the quarters ended
March 31, December 31,

September 30,

June 30, March 31,
2018 2017

2017

2017 2017
(Dollars in thousands)
Deposit Portfolio Composition
Checking accounts
Interest bearing checking accounts $ 140,740 $ 170,478 $ 173,171 $ 175,800 $ 211,875
Non-interest bearing checking accounts   376,904     354,970     343,146     339,067     333,940  
Total checking accounts 517,644 525,448 516,317 514,867 545,815
Savings accounts 308,025 301,716 307,169 310,012 308,533
Money market accounts   483,840     424,234     418,294     427,348     418,449  
Total non-time deposits 1,309,509 1,251,398 1,241,780 1,252,227 1,272,797
Certificates of deposit less than or equal to $250,000 704,147 651,255 617,839 557,300 547,823
Certificates of deposit greater than $250,000   53,322     54,086     79,080     84,466     84,585  
Total certificates of deposit   757,469     705,341     696,919     641,766     632,408  
Total deposits $ 2,066,978   $ 1,956,739   $ 1,938,699   $ 1,893,993   $ 1,905,205  
 
 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands)
 
Allowance For Loan Losses
Beginning balance $ 21,202 $ 20,555 $ 19,660 $ 18,970 $ 19,087
Provision 407 1,215 721 842 1,475
Net recoveries (chargeoffs)   1     (568 )   174     (152 )   (1,592 )
Ending balance $ 21,610   $ 21,202   $ 20,555   $ 19,660   $ 18,970  
 
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands)
Net Recoveries (Charge-offs)
Commercial loans
Multi-family $ 6 $ (126 ) $ (4 ) $ 4 $ 1
Owner/nonowner occupied commercial real estate 40 23 39 24 (1,141 )
Land — — — — (25 )
Construction 7 — — — —
Commercial and industrial   104     (90 )   314     108     1  
Total 157 (193 ) 349 136 (1,164 )
Residential mortgage loans
Real estate (66 ) (257 ) (291 ) (239 ) (196 )
Construction   —     —     —     —     —  
Total (66 ) (257 ) (291 ) (239 ) (196 )
Consumer loans
Consumer   (90 )   (118 )   116     (49 )   (232 )
Total   (90 )   (118 )   116     (49 )   (232 )
Total net chargeoffs $ 1   $ (568 ) $ 174   $ (152 ) $ (1,592 )
 
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands)
Nonperforming Loans
Commercial loans
Multi-family $ 275 $ 275 $ 402 $ 413 $ 419
Owner/nonowner occupied commercial real estate 1,206 1,218 1,234 1,331 1,398
Land 9 9 9 9 9
Construction — — — — —
Commercial and industrial   1,459     1,505     234     190     354  
Total 2,949 3,007 1,879 1,943 2,180
Residential mortgage loans
Real estate 7,045 6,076 6,627 6,701 5,868
Construction   —     —     —     —     —  
Total 7,045 6,076 6,627 6,701 5,868
Consumer loans
Consumer   2,180     2,620     2,332     2,137     2,513  
Total   2,180     2,620     2,332     2,137     2,513  
Total nonperforming loans $ 12,174   $ 11,703   $ 10,838   $ 10,781   $ 10,561  
 
Total Nonperforming Loans and Nonperforming Assets
Past due 90 days and on nonaccrual status $ 8,326 $ 8,620 $ 7,634 $ 7,706 $ 7,581
Past due 90 days and still accruing   —     —     8     2     —  
Past due 90 days 8,326 8,620 7,642 7,708 7,581
Past due less than 90 days and on nonaccrual   3,848     3,083     3,196     3,073     2,980  
Total nonperforming loans 12,174 11,703 10,838 10,781 10,561
Other real estate owned 1,030 1,047 1,133 1,197 1,137
Other classified assets 4,050 4,050 6,384 6,384 6,384
Repossessed assets   263     206     10     —     —  
Total nonperforming assets $ 17,517   $ 17,006   $ 18,365   $ 18,362   $ 18,082  
 
 
UNITED COMMUNITY FINANCIAL CORP.
NON-GAAP DISCLOSURE RECONCILIATION
(Unaudited)
         
Reconciliation of Average Shareholders' Equity to Average Tangible Equity:
 
At or for the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands, except per share data)
Average shareholders equity $ 299,284 $ 295,506 $ 295,506 $ 282,335 $ 274,277
Average intangible assets   24,175     23,563     23,642     23,699     26,935  
Average tangible equity $ 275,109   $ 271,943   $ 271,864   $ 258,636   $ 247,342  
 
Net income $ 8,556 $ 4,502 $ 7,556 $ 8,189 $ 1,538
 
Return on tangible equity 12.44 % 6.62 % 11.12 % 12.66 % 2.49 %
 
Reconciliation of Fully Taxable Equivalent Net Interest Income to Net Interest Income:
 
For the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands)
 
Interest income $ 26,050 $ 24,849 $ 24,048 $ 23,553 $ 21,060
Fully taxable equivalent adjustment   97     221     224     229     237  
Fully taxable equivalent interest income 26,147 25,070 24,272 23,782 21,297
Interest expense   4,517     3,969     3,545     3,059     2,584  
Fully taxable net interest income $ 21,630   $ 21,101   $ 20,727   $ 20,723   $ 18,713  
 
Reconciliation of Coverage Ratio to Coverage Ratio with Fair Value Adjustments Included with Allowance for Loan Losses:
 
March 31,
2018
(Dollars in thousands)
Allowance for loan losses $ 21,610
Fair value adjustments   3,340  
  24,950  
 
Loans, net $ 2,061,443
Add: Allowance for loan losses and fair value adjustment   24,950  
Gross loans $ 2,086,393  
 

Coverage ratio with the Fair Value adjustments included in Allowance for loan losses

1.20 %
 
 
Tangible Book Value Per Share:
 
Tangible book value, per share is defined at shareholders equity minus intangible assets divided by the number of shares outstanding.
 
At the quarters ended
March 31, December 31, September 30, June 30, March 31,
2018 2017 2017 2017 2017
(Dollars in thousands, except per share data)
Total shareholders' equity $ 296,195 $ 294,265 $ 291,851 $ 285,480 $ 277,102
Goodwill 20,221 20,221 19,488 19,467 19,460
Customer list intangible 2,030 2,060 2,090 2,060 2,090
Core deposit intangible 1,851 1,934 2,017 2,099 2,182
Total common shares outstanding 49,882,491 49,800,126 49,758,487 49,715,021 49,695,487
Tangible book value, as reported $ 5.45 $ 5.42 $ 5.39 $ 5.27 $ 5.10