LAWRENCEBURG, Ind.,
Nov. 1, 2016 /PRNewswire/ -- United
Community Bancorp (the "Company") (Nasdaq: UCBA), the parent
company of United Community Bank (the "Bank"), today reported net
income of $782,000 or $0.19 per diluted share, for the quarter ended
September 30, 2016. Net income
increased by $83,000, or 11.9%, as
compared to the quarter ended September
30, 2015. Earnings per share for the quarter ended
September 30, 2016 increased by
18.8%, when compared to the quarter ended September 30, 2015 due to an increase in earnings
and a decrease in the weighted average shares outstanding as a
result of the Company's previously announced stock repurchases,
which concluded in November 2015.
|
United Community
Bancorp
|
|
Summarized Statements
of Income
|
|
(Dollars in
thousands, except per share data)
|
|
|
For the quarter
ended
|
|
|
9/30/2016
|
|
9/30/2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Interest
income
|
|
$3,943
|
|
$3,958
|
|
Interest
expense
|
|
625
|
|
601
|
|
Net interest
income
|
|
3,318
|
|
3,357
|
|
|
|
|
|
|
Provision for loan
losses
|
|
17
|
|
44
|
|
Net interest
income after provision for loan losses
|
|
3,301
|
|
3,313
|
|
|
|
|
|
|
Total noninterest
income
|
|
1,308
|
|
1,067
|
|
Total noninterest
expense
|
|
3,662
|
|
3,625
|
|
Income before
income taxes
|
|
947
|
|
755
|
|
|
|
|
|
|
Income tax
provision
|
|
165
|
|
56
|
|
Net
income
|
|
$
782
|
|
$
699
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$0.19
|
|
$0.16
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
|
4,024,249
|
|
4,368,527
|
|
Diluted
|
|
4,058,011
|
|
4,406,759
|
|
Summarized
Consolidated Statements of Financial Condition
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
(In thousands,
as of)
|
9/30/2016
|
6/30/2016
|
3/31/2016
|
12/31/2015
|
09/30/2015
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
28,173
|
$
28,980
|
$ 23,246
|
$ 23,456
|
$ 21,997
|
|
|
Investment
Securities
|
188,967
|
193,215
|
188,919
|
186,663
|
196,399
|
|
|
Loans Receivable,
net
|
273,176
|
267,138
|
269,480
|
263,327
|
263,540
|
|
|
Other
Assets
|
37,747
|
36,756
|
36,361
|
36,734
|
37,958
|
|
|
Total
Assets
|
$
528,063
|
$
526,089
|
$
519,894
|
$
510,180
|
$
519,894
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Municipal
Deposits
|
$
101,763
|
$
100,203
|
$ 95,089
|
$ 95,192
|
$ 102,348
|
|
|
Other
Deposits
|
340,211
|
338,682
|
336,895
|
331,894
|
328,848
|
|
|
FHLB
Advances
|
12,000
|
12,000
|
13,934
|
13,000
|
13,000
|
|
|
Other
Liabilities
|
3,414
|
4,750
|
3,310
|
2,790
|
4,325
|
|
|
Total
Liabilities
|
457,388
|
455,635
|
449,228
|
442,876
|
448,521
|
|
|
Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
|
|
|
Total Stockholders'
Equity
|
70,675
|
70,454
|
68,788
|
67,304
|
71,373
|
|
|
Total Liabilities
& Stockholders' Equity
|
$
528,063
|
$
526,089
|
$
518,016
|
$
510,180
|
$
519,894
|
|
|
Outstanding
Shares
|
4,198,143
|
4,198,143
|
4,201,326
|
4,201,326
|
4,530,482
|
|
|
Tangible Book Value
per share
|
$
16.16
|
$
16.11
|
$
15.69
|
$
15.33
|
$
15.11
|
|
|
|
|
|
|
|
|
|
Summarized
Consolidated Statements of Income
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
9/30/2016
|
6/30/2016
|
3/31/2016
|
12/31/2015
|
09/30/2015
|
|
|
(for the three
months ended, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
Interest
Income
|
$
3,943
|
$
3,966
|
$
3,891
|
$
3,883
|
$
3,958
|
|
|
Interest
Expense
|
625
|
544
|
530
|
526
|
601
|
|
|
Net Interest
Income
|
3,318
|
3,422
|
3,361
|
3,357
|
3,357
|
|
|
Provision for Loan
Losses
|
17
|
46
|
52
|
45
|
44
|
|
|
Net Interest Income
after Provision
|
|
|
|
|
|
|
|
for Loan Losses
|
3,301
|
3,376
|
3,309
|
3,312
|
3,313
|
|
|
Total Noninterest
Income
|
1,308
|
1,098
|
1,121
|
1,353
|
1,067
|
|
|
Total Noninterest
Expense
|
3,662
|
3,597
|
3,230
|
3,528
|
3,625
|
|
|
Income before Tax
Provision
|
947
|
877
|
1,200
|
1,137
|
755
|
|
|
Income Tax
Provision
|
165
|
67
|
259
|
159
|
56
|
|
|
Net
Income
|
$
782
|
$
810
|
$
941
|
$
978
|
$
699
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
Earnings per Share
|
$
0.19
|
$
0.20
|
$
0.23
|
$
0.24
|
$
0.16
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
4,024,249
|
4,025,088
|
4,027,432
|
4,120,938
|
4,368,527
|
|
|
Diluted
|
4,058,011
|
4,063,727
|
4,057,600
|
4,156,239
|
4,406,759
|
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
9/30/2016
|
6/30/2016
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.59%
|
0.62%
|
0.73%
|
0.76%
|
0.54%
|
|
|
Return on average
equity (1)
|
4.43%
|
4.66%
|
5.51%
|
6.07%
|
3.91%
|
|
|
Interest rate
spread (2)
|
2.66%
|
2.79%
|
2.79%
|
2.74%
|
2.78%
|
|
|
Net interest
margin (3)
|
2.70%
|
2.83%
|
2.82%
|
2.81%
|
2.81%
|
|
|
Noninterest expense
to average assets (1)
|
2.77%
|
2.76%
|
2.48%
|
2.74%
|
2.79%
|
|
|
Efficiency
ratio (4)
|
79.16%
|
79.58%
|
70.82%
|
74.90%
|
82.00%
|
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
|
average interest-bearing
liabilities
|
108.14%
|
108.15%
|
107.88%
|
107.83%
|
107.49%
|
|
|
Average equity to
average assets
|
13.33%
|
13.34%
|
13.32%
|
12.52%
|
13.76%
|
|
|
|
|
|
|
|
|
|
Bank Capital
Ratios:
|
|
|
|
|
|
|
|
Tangible
capital
|
11.42%
|
11.60%
|
11.69%
|
11.40%
|
11.68%
|
|
|
Core
capital
|
11.42%
|
11.60%
|
11.69%
|
11.40%
|
11.68%
|
|
|
Total risk-based
capital
|
22.36%
|
22.70%
|
22.91%
|
22.68%
|
23.36%
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent
|
|
|
|
|
|
|
|
of total
loans
|
1.09%
|
1.05%
|
1.31%
|
1.94%
|
2.23%
|
|
|
Nonperforming assets
as a percent
|
|
|
|
|
|
|
|
of total
assets
|
0.59%
|
0.56%
|
0.75%
|
1.08%
|
1.21%
|
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
|
of total
loans
|
1.60%
|
1.78%
|
1.82%
|
1.77%
|
1.91%
|
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
|
of
nonperforming loans
|
146.73%
|
169.21%
|
138.71%
|
91.25%
|
85.56%
|
|
|
Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
|
outstanding loans during the period (1)
|
0.61%
|
0.27%
|
(0.26)%
|
0.61%
|
0.03%
|
|
|
|
|
|
|
|
|
|
(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, 2016:
Net income totaled $782,000 for
the quarter ended September 30, 2016,
which represented an increase of $83,000, or 11.9% when compared to the quarter
ended September 30, 2015. The
improvement in net income was primarily the result of an increase
in non-interest income, which included increases in gain on the
sale of loans, gain on the sale of investments, and service charge
income.
Net interest income totaled $3.3
million for the quarter ended September 30, 2016. This represented a
decrease of $39,000, or 1.2% when
compared to the quarter ended September
30, 2015. The decrease was caused by a decrease in
interest income of $15,000 as well as
an increase in interest expense of $24,000. Interest income decreased as a
result of a $62,000 decrease in
interest income on investments. The decrease in interest
income on investments was partially offset by a $47,000 increase in interest income on
loans. Interest income on investments decreased due to a
decrease in the average balance of approximately $12.8 million as well as a decrease in the
average yield on investments from 2.10% to 2.06%. Interest
income on loans increased due to an increase in the average balance
of approximately $11.7 million.
This increase was partially offset by a decrease in the average
rate earned on loans from 4.47% to 4.34%. The increase in
loan balances was the result of an increase in mortgage loan
balances and the controlled growth strategy in commercial
lending. The $24,000 increase
in interest expense was primarily due to an increase in new deposit
accounts resulting from a successful seasonal checking account
promotion. In addition, the average balance of deposits
increased $11.9 million.
Nonperforming assets as a percentage of total assets decreased
from 1.21% at September 30, 2015 to
0.59% at September 30, 2016.
Nonperforming assets as a percentage of total assets increased
slightly from 0.56% at June 30, 2016
to 0.59% at September 30, 2016.
Nonperforming loans as a percentage of total loans decreased from
2.23% at September 30, 2015 to 1.09%
at September 30, 2016.
Nonperforming loans as a percentage of total loans increased
slightly from 1.05% at June 30, 2016
to 1.09% at September 30, 2016.
This increase was due to the addition of a nonresidential loan with
a net value of $700,000 to
nonperforming loans. The Company remains focused on improving
asset quality and continues to review all available options to
decrease nonperforming assets. The provision for loan losses
was $17,000 for the quarter ended
September 30, 2016 compared to
$44,000 for the quarter ended
September 30, 2015.
Noninterest income totaled $1.3
million for the quarter ended September 30, 2016, which represented an increase
of $241,000, or 22.6% when compared
to the quarter ended September 30,
2015. The increase was primarily due to an increase of
$130,000 in gain on the sale of
mortgage loans, a $73,000 increase in
gain on the sale of investments, and a $46,000 increase in service charge income on
deposit accounts. Service charge income increase primarily due to
increased activity in deposit accounts and debit card usage.
These increases were partially offset by a $66,000 decrease in income from bank owned life
insurance. Death benefits totaling $68,000 were received in the prior year quarter
with no such amounts received in the current year quarter.
Noninterest expense totaled $3.7
million for the quarter ended September 30, 2016, which represented an increase
of $37,000, or 1.0% when compared to
the quarter ended September 30, 2015.
The increase was primarily due to an increase in data
processing expense of $159,000.
$111,000 of the increase in data
processing expense was primarily due to an increase in users taking
advantage of new mobile banking products, increases in debit card
usage, and increases in data center service charges.
$30,000 of the increase related to
the expiration of a monthly implementation credit. The
$159,000 increase in data processing
expense was partially offset by a $117,000 decrease in other operating expenses,
including an $89,000 decrease in loan
closing costs incurred and a $26,000
decrease in expenses related to other real estate owned. The
decrease in loan closing costs incurred was primarily due to a
change in the Company's accounting method for certain loan closing
costs associated with a closing cost promotion. Prior to
July 1, 2016, the Company charged
certain loan closing costs immediately to expense. Pursuant
to ASC 310-20, the Company is deferring a portion of these closing
costs associated with new loans and amortizing those costs over the
life of the loan. The decrease in other real estate owned
related expenses was due to property improvement expenses in the
prior year period with no corresponding expenses in the current
year period.
Statement of Financial Condition:
Total assets were $528.1 million
at September 30, 2016, compared to
$526.1 million at June 30, 2016. Total loans increased by
$6.0 million. The increase in
loans was partially offset by a $4.3
million decrease in investment securities. The investment
balances decreased partially due to normal amortization and
maturities during the period and the sale of investment
securities. A portion of the proceeds from the sale of
investments securities was used to fund new loans, which is
expected to enhance the Bank's net interest margin as well as
increase interest income in the future.
Total liabilities increased $1.8
million from $455.6 million at
June 30, 2016 to $457.4 million at September 30, 2016 primarily due to a
$3.1 million increase in deposits
during the quarter, partially offset by the settlement of
investments which was included in other liabilities at June 30, 2016.
Stockholders' equity totaled $70.7
million as of September 30,
2016, which represents an increase of $221,000 when compared to June 30, 2016. Net income of $782,000 for the quarter ended September 30, 2016 was partially offset by a
reduction in the unrealized gain on securities available for sale
of $490,000 and dividends paid
totaling $252,000. The
$782,000 net income for the quarter
ended September 30, 2016 represented
an increase of $83,000, or 11.9% when
compared to the quarter ended September
30, 2015. There were 4,198,143 outstanding shares of
common stock at both September 30,
2016 and June 30, 2016.
For all periods presented, 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,
2016 filed with the SEC on September
27, 2016 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-community-bancorp-reports-first-quarter-results-300355536.html
SOURCE United Community Bancorp
