UBMT United Financial

United Financial Corp. Announces March 31, 2005 Earnings and Declares Quarterly Dividend HIGHLIGHTS: Total assets of $352 million; Q1 Net interest income up 7.9%; 2005 Q1 Net loans up over 15% over Q1 2004. GREAT FALLS, Mont., April 27 /PRNewswire-FirstCall/ -- United Financial Corp. ("United") (NASDAQ:UBMT) today reported net income for the quarter ended March 31, 2005 of $867,845, or basic earnings per share of $.36 and $.34 on a fully diluted basis. This compares to March 31, 2004 of $974,190, or basic earnings per share of $.40 and $.39 per share on a fully diluted basis. Included in March 31, 2004 earnings were $121,068 of gains on sales of investment securities, net of tax, or $.05 per basic and fully diluted earnings per share. Excluding these investment securities gains, March 31, 2004 basic earnings per share would have been $.35 and $.34 on a fully diluted basis. United's assets at March 31, 2005 were $352 million, an increase of 11.7% from a year ago. Net loans were $273 million at March 31, 2005 compared to $236 million at March 31, 2004, an increase of 15.8%. Net interest income rose to $3.3 million in the quarter ended March 31, 2005, compared to $3.0 million in the quarter ended March 31, 2004. United's shareholders' equity was $30.7 million at March 31, 2005 and book value per share was $12.55. Outstanding shares at March 31, 2005 were 2,444,634, compared to 2,429,773 March 31, 2004. Chairman and CEO, Kurt Weise, said, "We are pleased with this quarter in terms of loan growth and the overall progress we have made in our new markets. Considering the first quarter is typically our slowest, the nearly 8% increase in net interest income bodes well for future quarters. Asset quality remained very good with non-performing loans only .17% of total loans." United's net interest margin was 4.10% in the first quarter of 2005 compared to 4.07% in the first quarter of 2004. Non-performing loans totaled $.5 million at March 31, 2005 compared to $.7 million at March 31, 2004. United's past due and non-accrual loans totaled .17% of loans at March 31, 2005 compared to .30 % of loans at March 31, 2004, compared to .59 % for that of its peer bank holding companies at December 31, 2004 the most recent peer information available. United declared a regular quarterly dividend of $.28 per share, to shareholders of record on May 18, 2005, payable June 1, 2005. Forward-Looking Statements When used in this press release, the words or phrases 'will likely result in', 'are expected to', 'will continue', 'is anticipated', 'estimate', 'could', or 'project' or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected including general economic conditions, business conditions in the banking industry, the regulatory environment, new legislation, vendor quality and efficiency, employee retention factors, rapidly changing technology and evolving banking industry standards, competitive standards, competitive factors including increased competition among financial institutions and fluctuating interest rate environments. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Readers should also carefully review the risk factors described in the company's most recent Annual Report on Form 10-K for the period ending December 31, 2004 and other documents the company files from time to time with the Securities and Exchange Commission. United Financial Corp. is a bank holding company based in Great Falls, Montana, and is the parent of Heritage Bank, a full service community bank with fifteen locations in Montana. United Financial Corp. Financial Highlights (Unaudited) (Dollars in thousands, except per share data) Three Months Ended March 31, 2005 2004 Income statement amounts Net interest income $3,281 3,040 Provision for losses on loans - 52 Noninterest income Investment securities gains - 194 Gain on the sale of loans 537 569 Other 292 306 Noninterest expense 2,717 2,494 Earnings before income taxes 1,393 1,563 Income taxes 525 589 Net earnings 868 974 Per common share data Net earnings - basic 0.36 0.40 - diluted 0.34 0.39 Cash dividends 0.280 0.270 Book value 12.55 13.32 Balances at end of period Loans, gross 276,799 239,804 Allowance for losses on loans 3,625 3,804 Nonperforming assets Nonperforming loans 466 726 Foreclosed properties - 525 Available for sale investment securities 37,609 40,382 Total assets 351,722 314,782 Goodwill 1,422 1,422 Total deposits 254,214 236,689 Total stockholders' equity 30,692 32,370 Other supplemental information Net earnings Return on average assets 1.00% 1.24% Return on average common equity 11.39% 12.02% Allowance for loan losses to loans 1.31% 1.59% Common shares outstanding (end of period, in thousands) 2,445 2,430 Net interest margin 4.10% 4.07% Shareholders' equity to total assets 8.73% 10.28% Dividend payout ratio 77.78% 67.50% DATASOURCE: United Financial Corp. CONTACT: Kurt R. Weise, Chairman & CEO of United Financial Corp., +1-763-512-5299

Copyright