LAWRENCEBURG, Ind.,
Nov. 7, 2014 /PRNewswire/ -- United
Community Bancorp (the "Company") (Nasdaq: UCBA), the parent
company of United Community Bank (the "Bank"), today reported net
income of $479,000, or $0.10 per diluted share, for the quarter ended
September 30, 2014, compared to net
income of $762,000, or $0.16 per diluted share, for the quarter
ended September 30,
2013.
|
United Community
Bancorp
|
|
Summarized Statements
of Income
|
|
(In thousands, except
per share data)
|
|
|
For the quarter
ended
|
|
|
9/30/2014
|
|
9/30/2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Interest
income
|
|
$3,761
|
|
$3,759
|
|
Interest
expense
|
|
677
|
|
748
|
|
Net interest
income
|
|
3,084
|
|
3,011
|
|
|
|
|
|
|
Provision for
(recovery of) loan losses
|
|
9
|
|
(442)
|
|
Net interest
income after recovery of loan losses
|
|
3,075
|
|
3,453
|
|
|
|
|
|
|
Total other
income
|
|
884
|
|
1,052
|
|
Total noninterest
expense
|
|
3,406
|
|
3,448
|
|
Income before
income taxes
|
|
553
|
|
1,057
|
|
|
|
|
|
|
Income tax
provision
|
|
74
|
|
295
|
|
Net
income
|
|
$
479
|
|
$
762
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$0.10
|
|
$0.16
|
|
Weighted average
shares outstanding
|
|
4,583,593
|
|
4,875,257
|
|
Summarized
Consolidated Statements of Financial Condition
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(In thousands,
as of)
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
12/31/2013
|
9/30/2013
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$ 39,375
|
$ 24,970
|
$ 27,836
|
$ 21,553
|
$ 16,639
|
|
Investment
Securities
|
195,975
|
219,319
|
210,181
|
204,677
|
208,828
|
|
Loans Receivable,
net
|
245,961
|
244,384
|
246,162
|
247,165
|
247,202
|
|
Other
Assets
|
41,532
|
41,792
|
41,636
|
38,817
|
38,782
|
|
Total
Assets
|
$ 522,843
|
$ 530,465
|
$ 525,815
|
$ 512,212
|
$ 511,451
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Municipal
Deposits
|
$ 110,646
|
$ 114,270
|
$ 107,127
|
$ 103,240
|
$ 101,994
|
|
Other
Deposits
|
323,877
|
325,366
|
327,022
|
317,226
|
322,837
|
|
FHLB
Advances
|
15,000
|
15,000
|
15,000
|
15,000
|
10,000
|
|
Other
Liabilities
|
3,029
|
2,899
|
2,882
|
2,530
|
3,241
|
|
Total
Liabilities
|
452,552
|
457,535
|
452,031
|
437,996
|
438,072
|
|
Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
|
|
Total Stockholders'
Equity
|
70,291
|
72,930
|
73,784
|
74,216
|
73,379
|
|
Total Liabilities
& Stockholders' Equity
|
$ 522,843
|
$ 530,465
|
$ 525,815
|
$ 512,212
|
$ 511,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarized
Consolidated Statements of Income
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
12/31/2013
|
9/30/2013
|
|
(for the three
months ended, in thousands, except per share data)
|
|
|
|
|
|
|
|
Interest
Income
|
$ 3,761
|
$ 3,679
|
$ 3,752
|
$ 3,768
|
$ 3,759
|
|
Interest
Expense
|
677
|
648
|
622
|
638
|
748
|
|
Net Interest
Income
|
3,084
|
3,031
|
3,130
|
3,130
|
3,011
|
|
Provision for
(Recovery of) Loan Losses
|
9
|
160
|
75
|
75
|
(442)
|
|
Net Interest Income
after Provision
|
|
|
|
|
|
|
for Loan Losses
|
3,075
|
2,871
|
3,055
|
3,055
|
3,453
|
|
Total Other
Income
|
884
|
747
|
887
|
1,011
|
1,052
|
|
Total Noninterest
Expense
|
3,406
|
3,244
|
3,206
|
3,294
|
3,448
|
|
Income before Tax
Provision
|
553
|
374
|
736
|
772
|
1,057
|
|
Income Tax
Provision
|
74
|
21
|
153
|
190
|
295
|
|
Net
Income
|
$
479
|
$
353
|
$
583
|
$
582
|
$
762
|
|
Basic and Diluted
Earnings per Share
|
$
0.10
|
$
0.07
|
$
0.12
|
$
0.12
|
$
0.16
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
Basic and
Diluted
|
4,583,593
|
4,774,567
|
4,814,774
|
4,875,257
|
4,875,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
For the three
months ended
|
|
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
12/31/2013
|
9/30/2013
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.36%
|
0.27%
|
0.45%
|
0.45%
|
0.59%
|
|
|
Return on average
equity (1)
|
2.68%
|
1.91%
|
3.14%
|
3.14%
|
4.17%
|
|
|
Interest rate
spread (2)
|
2.51%
|
2.43%
|
2.55%
|
2.58%
|
2.48%
|
|
|
Net interest
margin (3)
|
2.55%
|
2.47%
|
2.60%
|
2.62%
|
2.53%
|
|
|
Noninterest expense
to average assets (1)
|
2.59%
|
2.44%
|
2.46%
|
2.55%
|
2.68%
|
|
|
Efficiency
ratio (4)
|
85.84%
|
85.87%
|
79.81%
|
79.55%
|
84.86%
|
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
|
average interest-bearing
liabilities
|
107.34%
|
107.79%
|
108.45%
|
108.81%
|
108.65%
|
|
|
Average equity to
average assets
|
13.63%
|
13.89%
|
14.25%
|
14.36%
|
14.23%
|
|
|
|
|
|
|
|
|
|
Bank Capital
Ratios:
|
|
|
|
|
|
|
|
Tangible
capital
|
12.14%
|
11.88%
|
12.00%
|
12.30%
|
12.18%
|
|
|
Core
capital
|
12.14%
|
11.88%
|
12.00%
|
12.30%
|
12.18%
|
|
|
Total risk-based
capital
|
26.50%
|
26.89%
|
26.85%
|
27.33%
|
26.95%
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent
|
|
|
|
|
|
|
|
of total
loans
|
3.34%
|
3.97%
|
4.95%
|
3.48%
|
3.74%
|
|
|
Nonperforming assets
as a percent
|
|
|
|
|
|
|
|
of total
assets
|
1.75%
|
1.99%
|
2.48%
|
1.88%
|
1.98%
|
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
|
of total
loans
|
2.20%
|
2.18%
|
2.17%
|
2.12%
|
2.15%
|
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
|
of
nonperforming loans
|
65.92%
|
54.88%
|
43.92%
|
60.90%
|
57.57%
|
|
|
Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
|
outstanding loans during the period (1)
|
(0.16)%
|
0.28%
|
(0.04)%
|
0.30%
|
(0.76)%
|
|
|
|
|
|
|
|
|
|
(1) Quarterly income and
expense amounts used in calculating the ratio have been
annualized.
|
|
|
|
|
(2) Represents the difference
between the weighted average yield on average interest-earning
assets and the weighted average cost of average interest-bearing
liabilities.
|
|
|
|
(3) Represents net interest
income as a percent of average interest-earning assets.
|
|
|
(4) Represents total
noninterest expense divided by the sum of net interest income and
total other income.
|
|
|
|
For the three months ended September 30, 2014:
Net income decreased $283,000 to
$479,000 for the quarter ended
September 30, 2014, compared to net
income of $762,000 for the quarter
ended September 30, 2013.
Net interest income increased to $3.1
million for the quarter ended September 30, 2014 compared to $3.0 million for the quarter ended September 30, 2013. Interest income
remained constant while interest expense decreased $71,000 from the prior year period. A decrease in
the average interest rate earned on loans from 4.95% for the
quarter ended September 30, 2013 to
4.66% for the quarter ended September 30,
2014 and a $5.4 million
decrease in the average balance of loans, were offset by an
increase in the average rate earned on investments from 1.27% for
the quarter ended September 30, 2013
to 1.74% for the quarter ended September
30, 2014. The decrease in interest expense was
primarily the result of a decrease in the average interest rate
paid on deposits from 0.66% for the quarter ended September 30, 2013 to 0.56% for the quarter ended
September 30, 2014. Changes in
interest rates are reflective of decreases in overall market
rates.
The provision for loan losses was $9,000 for the quarter ended September 30, 2014 compared to a recovery of loan
losses of $442,000 for the quarter
ended September 30, 2013. The prior
year quarter was impacted by a $379,000 recovery of a commercial loan and a
$124,000 recovery from two one- to
four-family loans, all of which were paid off during the prior year
quarter. The current quarter provision for loan losses is
reflective of continued improvement in our asset quality.
Nonperforming loans as a percentage of total loans decreased from
3.97% at June 30, 2014 to 3.34% at
September 30, 2014, and nonperforming
loans as a percentage of total assets decreased from 1.99% at
June 30, 2014 to 1.75% at
September 30, 2014.
Other income decreased $168,000,
or 16.0%, to $884,000 for the quarter
ended September 30, 2014 from
$1.1 million for the quarter ended
September 30, 2013. The decrease in
other income was primarily due to a $136,000 decrease in gain on sale of fixed assets
due to the sale of our Osgood
branch facility during the prior year quarter. Noninterest expense
remained constant at $3.4 million for
the quarters ended September 30, 2014
and 2013.
Total assets were $522.8 million
at September 30, 2014, compared to
$530.5 million at June 30, 2014. A $23.3 million decrease in investment securities
was partially offset by a $14.4
million increase in cash and cash equivalents. The sale of
mortgage-backed securities generated cash proceeds of $26.8 million, with $12.8
million redeployed for the purchase of held to maturity
investment securities.
Total liabilities decreased $4.9
million from $457.5 million at
June 30, 2014 to $452.6 million at September 30, 2014 due to a $5.1 million decrease in deposits during the
current year quarter, primarily as a result of a decrease in
municipal deposits.
Total stockholders' equity decreased $2.6
million from $72.9 million at
June 30, 2014 to $70.3 million at September
30, 2014. The decrease is primarily due to treasury
stock repurchases totaling $3.1
million during the current quarter, partially offset by net
income of $479,000 for the current
quarter. There were 4,702,219 and 5,149,564 outstanding shares of
common stock at September 30, 2014
and 2013, respectively. At September 30,
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,
2014 filed with the SEC on September
26, 2014 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
