LAWRENCEBURG, Ind.,
April 30, 2014 /PRNewswire/
-- United Community Bancorp (the "Company")
(Nasdaq: UCBA), the parent company of United Community Bank
(the "Bank"), today reported net income of $583,000, or $0.12
per diluted share, for the quarter ended March 31, 2014, compared to net income of
$407,000, or $0.08 per diluted share, for the quarter ended
March 31, 2013. Net income for the
nine months ended March 31, 2014 was
$1.9 million, or $0.40 per diluted share, compared to net income
of $1.6 million, or $0.32 per diluted share, for the nine months
ended March 31,
2013.
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United Community
Bancorp
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Summarized Statements
of Income
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(In thousands, except
per share data)
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|
|
For the nine
months ended
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|
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3/31/2014
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|
3/31/2013
|
|
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(Unaudited)
|
|
(Unaudited)
|
|
Interest
income
|
|
$11,279
|
|
$12,175
|
|
Interest
expense
|
|
2,008
|
|
2,639
|
|
Net interest
income
|
|
9,271
|
|
9,536
|
|
|
|
|
|
|
Provision for
(recovery of) loan losses
|
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(292)
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|
585
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|
Net interest
income after provision for
(recovery of) loan losses
|
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9,563
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8,951
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|
|
|
|
|
|
Total other
income
|
|
2,950
|
|
3,383
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|
Total noninterest
expense
|
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9,948
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10,214
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Income before
income taxes
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2,565
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|
2,120
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|
|
|
|
|
|
Income tax
provision
|
|
638
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|
523
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|
Net
income
|
|
$1,927
|
|
$1,597
|
|
|
|
|
|
|
Basic and diluted
earnings per share(1)
|
|
$0.40
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$0.32
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|
Weighted average
shares outstanding(1)
|
|
4,855,390
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|
4,998,364
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|
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(1)
Weighted average share and related earnings per share amounts for
periods prior to January 9, 2013 have been restated retroactively
to reflect the previously announced second step conversion at a
conversion rate of 0.6573 to 1.
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Summarized
Consolidated Statements of Financial Condition
|
|
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(Unaudited)
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(Unaudited)
|
(Unaudited)
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(Audited)
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(Unaudited)
|
|
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(In thousands,
as of)
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3/31/2014
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12/31/2013
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9/30/2013
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6/30/2013
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3/31/2013
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|
|
|
|
|
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ASSETS
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|
|
|
|
|
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Cash and Cash
Equivalents
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$
27,836
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$
21,553
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$
16,639
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$ 16,787
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$ 27,621
|
|
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Investment
Securities
|
210,181
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204,677
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208,828
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202,547
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204,783
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|
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Loans Receivable,
net
|
246,162
|
247,165
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247,202
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254,578
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258,454
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|
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Other
Assets
|
41,636
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38,817
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38,782
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38,719
|
35,109
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|
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Total
Assets
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$
525,815
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$
512,212
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$
511,451
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$
512,631
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$
525,967
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|
|
|
|
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LIABILITIES
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|
|
|
|
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Municipal
Deposits
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$
107,127
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$ 103,240
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$ 101,994
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$
90,141
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$
103,483
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|
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Other
Deposits
|
327,022
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317,226
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322,837
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331,102
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333,498
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|
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FHLB
Advances
|
15,000
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15,000
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10,000
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15,000
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10,083
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|
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Other
Liabilities
|
2,882
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2,530
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3,241
|
2,845
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3,932
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|
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Total
Liabilities
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452,031
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437,996
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438,072
|
439,088
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450,996
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|
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Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
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|
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Total Stockholders'
Equity
|
73,784
|
74,216
|
73,379
|
73,543
|
74,971
|
|
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Total Liabilities
& Stockholders' Equity
|
$
525,815
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$
512,212
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$
511,451
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$
512,631
|
$
525,967
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|
|
|
|
|
|
|
|
|
|
|
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Summarized
Consolidated Statements of Income
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
3/31/2014
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12/31/2013
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9/30/2013
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6/30/2013
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3/31/2013
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(for the three
months ended, in thousands, except per share data)
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|
|
|
|
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Interest
Income
|
$
3,752
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$
3,768
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$
3,759
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$
3,712
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$
3,847
|
|
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Interest
Expense
|
622
|
638
|
748
|
712
|
747
|
|
|
Net Interest
Income
|
3,130
|
3,130
|
3,011
|
3,000
|
3,100
|
|
|
Provision for
(Recovery of) Loan Losses
|
75
|
75
|
(442)
|
(651)
|
110
|
|
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Net Interest Income
after Provision
|
|
|
|
|
|
|
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for (Recovery of) Loan Losses
|
3,055
|
3,055
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3,453
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3,651
|
2,990
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Total Other
Income
|
887
|
1,011
|
1,052
|
1,106
|
949
|
|
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Total Noninterest
Expense
|
3,206
|
3,294
|
3,448
|
3,381
|
3,427
|
|
|
Income before Tax
Provision
|
736
|
772
|
1,057
|
1,376
|
512
|
|
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Income Tax
Provision
|
153
|
190
|
295
|
406
|
105
|
|
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Net
Income
|
$
583
|
$
582
|
$
762
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$
970
|
$
407
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Basic and Diluted
Earnings per Share (1)
|
$
0.12
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$
0.12
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$
0.16
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$
0.20
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$
0.08
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Weighted Average
Shares Outstanding (1):
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Basic and
Diluted
|
4,814,774
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4,875,257
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4,875,257
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4,875,257
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4,892,523
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(1)
Weighted average share and related earnings per share
amounts for periods prior to January 9, 2013 have been restated
retroactively to reflect the previously announced second step
conversion at a conversion rate of 0.6573 to 1.
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|
|
|
|
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|
|
|
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|
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(Unaudited)
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(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
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|
|
For the three
months ended
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3/31/2014
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12/31/2013
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9/30/2013
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6/30/2013
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3/31/2013
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Performance
Ratios:
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Return on average
assets (1)
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0.45%
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0.45%
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0.59%
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0.75%
|
0.31%
|
|
|
Return on average
equity (1)
|
3.14%
|
3.14%
|
4.17%
|
5.19%
|
2.41%
|
|
|
Interest rate
spread (2)
|
2.55%
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2.58%
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2.48%
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2.43%
|
2.47%
|
|
|
Net interest
margin (3)
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2.60%
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2.62%
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2.53%
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2.48%
|
2.53%
|
|
|
Noninterest expense
to average assets (1)
|
2.46%
|
2.55%
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2.68%
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2.60%
|
2.61%
|
|
|
Efficiency
ratio (4)
|
79.81%
|
79.55%
|
84.86%
|
82.34%
|
84.64%
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Average
interest-earning assets to
|
|
|
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|
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|
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average interest-bearing
liabilities
|
108.45%
|
108.81%
|
108.65%
|
109.29%
|
109.16%
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Average equity to
average assets
|
14.25%
|
14.36%
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14.23%
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14.37%
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12.83%
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Bank Capital
Ratios:
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Tangible
capital
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12.00%
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12.30%
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12.18%
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12.07%
|
11.56%
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|
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Core
capital
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12.00%
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12.30%
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12.18%
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12.07%
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11.56%
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Total risk-based
capital
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26.85%
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27.33%
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26.95%
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26.72%
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26.17%
|
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|
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Asset Quality
Ratios:
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Nonperforming loans
as a percent
|
|
|
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of total
loans
|
4.95%
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3.48%
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3.74%
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4.87%
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5.39%
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Nonperforming assets
as a percent
|
|
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of total
assets
|
2.48%
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1.88%
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1.98%
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2.60%
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2.79%
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Allowance for loan
losses as a percent
|
|
|
|
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of total
loans
|
2.17%
|
2.12%
|
2.15%
|
2.09%
|
2.18%
|
|
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Allowance for loan
losses as a percent
|
|
|
|
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|
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of
nonperforming loans
|
43.92%
|
60.90%
|
57.57%
|
42.83%
|
40.35%
|
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Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
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outstanding loans during the period (1)
|
(0.04)%
|
0.30%
|
(0.76)%
|
(0.56)%
|
0.13%
|
|
|
|
|
|
|
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(1) Quarterly
income and expense amounts used in calculating the ratio have been
annualized.
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(2) Represents
the difference between the weighted average yield on average
interest-earning assets and the weighted average cost of average
interest-bearing liabilities.
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(3) Represents
net interest income as a percent of average interest-earning
assets.
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(4) Represents
total noninterest expense divided by the sum of net interest income
and total other income.
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For the three months ended March
31, 2014:
Net income increased $176,000 to
$583,000 for the quarter ended
March 31, 2014, compared to net
income of $407,000 for the quarter
ended March 31, 2013.
Net interest income remained flat at $3.1
million for the quarter ended March
31, 2014 compared to the same period in the prior
year. A decrease of $95,000 in interest income was offset by a
decrease of $125,000 in interest
expense. The decrease in interest income was the result of a
$14.8 million decrease in the average
balance of loans and a decrease in the average rate earned on loans
from 4.75% for the quarter ended March 31,
2013 to 4.59% for the quarter ended March 31, 2014, partially offset by a
$15.4 million increase in the average
balance of investments and an increase in the average rate earned
on investments from 1.49% for the quarter ended March 31, 2013 to 1.73% for the quarter ended
March 31, 2014. The decrease in
interest expense was primarily the result of a decrease in the
average interest rate paid on deposits from 0.64% for the quarter
ended March 31, 2013 to 0.52% for the
quarter ended March 31, 2014.
Changes in interest rates are reflective of decreases in overall
market rates.
The provision for loan losses was $75,000 for the quarter ended March 31, 2014, compared to $110,000 for the same quarter in the prior year.
The decrease in the provision for loan losses is reflective of
continued improvement in our asset quality. Asset quality continues
to improve primarily due to the Bank's continuing efforts to
resolve asset quality issues. Nonperforming assets as a percentage
of total assets decreased from 2.79% at March 31, 2013 to 2.48% at March 31, 2014.
Other income decreased $62,000, or
6.5%, to $887,000 for the quarter
ended March 31, 2014 compared to
$949,000 for the prior year quarter.
The decrease is primarily due to a $290,000 decrease in gain on sale of investments
and a $121,000 decrease in gain on
sale of loans, partially offset by a $114,000 increase in other income. The
decrease in gain on sale of investments is due to the sale of
mortgage-backed securities and other available for sale securities
in the quarter ended March 31, 2013
with no such sales in the current year quarter. The decrease in
gain on sale of loans is the result of a decrease in refinancing
activity during the quarter ended March 31,
2014 as compared to the prior year quarter primarily due to
the Bank's decision to hold fifteen year fixed-rate loans in its
loan portfolio during the current year period. The increase in
other income is primarily due to an increase in the value of
mortgage servicing rights during the quarter ended March 31, 2014. The increase in income from
mortgage servicing rights is primarily due to the year over year
decrease in the prepayment of mortgages.
Noninterest expense decreased $221,000 to $3.2
million for the quarter ended March
31, 2014 compared to $3.4
million for the prior year quarter. Decreases included
$84,000 in data processing expense
and $60,000 in compensation and
employee benefits. The decreases in data processing expense
and compensation and employee benefits were primarily due to
additional expenses in the prior year related to a data processing
conversion that was completed in February
2013.
For the nine months ended March 31,
2014:
Net income increased $330,000 to
$1.9 million for the nine months
ended March 31, 2014, compared to net
income of $1.6 million for the nine
months ended March 31, 2013.
Net interest income decreased $265,000, or 2.8%, to $9.3
million for the nine months ended March 31, 2014 as compared to $9.5 million for the nine months ended
March 31, 2013. A
decrease of $896,000 in interest
income was partially offset by a $631,000 decrease in interest expense. The
decrease in interest income was the result of a $21.0 million decrease in the average balance of
loans, a decrease in the average rate earned on loans from 4.89%
for the nine months ended March 31,
2013 to 4.78% for the nine months ended March 31, 2014, and a decrease in the average
rate earned on investments from 1.74% for the nine months ended
March 31, 2013 to 1.51% for the nine
months ended March 31, 2014,
partially offset by a $33.6 million
increase in the average balance of investments. The decrease
in interest expense was primarily the result of a decrease in the
average interest rate paid on deposits from 0.77% for the nine
months ended March 31, 2013 to 0.58%
for the nine months ended March 31,
2014. Changes in interest rates are reflective of decreases
in overall market rates.
The recovery of loan losses was $292,000 for the nine months ended March 31, 2014, compared to a provision for loan
losses of $585,000 for the same
period in the prior year. The decrease in the provision for loan
losses was primarily due to a $379,000 recovery of a commercial loan and a
$124,000 recovery from two one- to
four-family loans during the nine months ended March 31, 2014. The decrease in the
provision for loan losses is also reflective of continued
improvement in our asset quality. Nonperforming assets as a
percentage of total assets decreased from 2.79% at March 31, 2013 to 2.48% at March 31, 2014.
Other income decreased $433,000,
or 12.8%, to $3.0 million for the
nine months ended March 31, 2014
compared to $3.4 million for the
prior year period. The decrease is primarily due to a $553,000 decrease in gain on sale of investments
and a $527,000 decrease in gain on
sale of loans, partially offset by a $276,000 increase in other income and a
$136,000 increase in gain on sale of
fixed assets. The decrease in gain on sale of investments is
due to the sale of mortgage-backed securities and other available
for sale securities in the nine months ended March 31, 2013 with no such sales in the current
year period. The decrease in gain on sale of loans is the result of
a higher level of refinancing activity during the nine months ended
March 31, 2013 as compared to the
current year period due to higher loan rates in the current year
period and due to the Bank's decision to hold fifteen year
fixed-rate loans in its loan portfolio during the current year
period. The increase in gain on sale of fixed assets was the result
of the sale of our Osgood branch
facility during the nine months ended March
31, 2014. The increase in other income is primarily
due to an increase in the value of mortgage servicing rights during
the nine months ended March 31, 2014.
The increase in income from mortgage servicing rights is primarily
due to the decrease during the nine month period in the prepayment
of mortgages as compared to the prepayment of mortgages during the
prior nine month period.
Noninterest expense decreased $266,000 to $9.9
million for the nine months ended March 31, 2014 compared to $10.2 million for the prior year period.
Decreases of $134,000 in premises and
occupancy expense, $119,000 in
deposit insurance premium and $104,000 in provision for loss on real estate
owned were partially offset by increases of $113,000 in professional fees and $108,000 in other operating expenses. The
decrease in premises and occupancy expense was primarily the result
of non-recurring expenses for data processing upgrades in the prior
year period. The decrease in provision for loss on real
estate owned is due to write-downs on two commercial OREO
properties in the prior year period with no such write-downs during
the nine months ended March 31,
2014. The increase in professional fees is primarily the
result of acquiring outside resources for internal audit and
planning in the current year. The increase in other operating
expenses is primarily the result of a short-term loan-related
promotion during the current year period.
Total assets were $525.8 million
at March 31, 2014, compared to
$512.6 million at June 30, 2013. An $11.0 million increase in cash and cash
equivalents and a $7.6 million
increase in investment securities were partially offset by an
$8.4 million decrease in loans.
The increase in cash and cash equivalents and investment securities
was the result of the payoff of loans with a portion of the
proceeds being redeployed into purchases of mortgage-backed
securities and available for sale securities. The decrease in loans
was primarily the result of net payoffs totaling $5.8 million in one- to four-family real estate
loans and $2.3 million in commercial
real estate loans during the nine months ended March 31, 2014.
Total liabilities were $452.0
million at March 31, 2014,
compared to $439.1 million at
June 30, 2013. The increase in
liabilities was the result of a $12.9
million increase in deposits. The increase in deposits
is primarily due to an increase in municipal deposits resulting
from normal fluctuations in municipal deposits.
Total stockholders' equity was $73.8
million at March 31, 2014,
compared to $73.5 million at
June 30, 2013. Net income of
$1.9 million for the nine months
ended March 31, 2014 and amortization
of ESOP shares totaling $308,000 for
the same period were offset by stock repurchases totaling
$1.2 million and dividends paid of
$812,000. At March 31, 2014, the Bank was considered
"well-capitalized" under applicable regulatory requirements.
United Community Bancorp is the parent company of United
Community Bank, headquartered in Lawrenceburg, Indiana. The Bank
currently operates eight offices in Dearborn and Ripley Counties, Indiana.
This news release may contain forward-looking statements, which
can be identified by the use of words such as "believes,"
"expects," "anticipates," "estimates" or similar expressions. Such
forward-looking statements and all other statements that are not
historic facts are subject to risks and uncertainties which could
cause actual results to differ materially from those currently
anticipated due to a number of factors. These factors include, but
are not limited to, general economic conditions, changes in the
interest rate environment, legislative or regulatory changes that
may adversely affect our business, changes in accounting policies
and practices, changes in competition and demand for financial
services, adverse changes in the securities markets, changes in
deposit flows and changes in the quality or composition of the
Company's loan or investment portfolios. Additionally, other risks
and uncertainties may be described in the Company's annual report
on Form 10-K for the year ended June 30,
2013 filed with the SEC on September
27, 2013 which is available through the SEC's website at
www.sec.gov. Should one or more of these risks materialize, actual
results may vary from those anticipated, estimated or projected.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Except as may be required by applicable law or
regulation, the Company assumes no obligation to update any
forward-looking statements.
SOURCE United Community Bancorp
