United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company (Home Savings), today reported a consolidated net loss of $4.9 million, or $(0.16) per diluted share, for the three months ended June 30, 2010. This compares to a net loss of $5.1 million, or $(0.17) per diluted share, for the three months ended June 30, 2009. The Company also reported a cumulative net loss of $10.0 million, or $(0.33) per diluted share, for the six month’s ended June 30, 2010 as compared to net income of $356,000, or $0.01 per diluted share, for the six months ended June 30, 2009.
Beginning with this earnings release, the Company has adopted the practice of issuing its quarterly earnings release on or about the day that the quarterly report on Form 10-Q is filed in order to eliminate the potential for changes in financial results in the time period traditionally between the two filings.
Selected second quarter results:
- Net interest margin improved to 3.30%
- Tier 1 leverage ratio increased to 8.71%
- Total Risk Based Capital increased to 13.16%
- Tangible common equity to tangible assets was 9.17%
- Nonperforming loans were $155.1 million
- Nonperforming assets were $197.2 million
- Book value per share and tangible book value per share were $6.88 and $6.87, respectively
Chairman, President and Chief Executive Officer Douglas M. McKay commented, “The poor performance of the economy continues to cause weaknesses in several of our commercial real estate loan relationships and we, in turn, continue to recognize those weaknesses through loan loss provisions. Despite the fact that we have yet to turn the corner relative to earnings, we have increased our capital ratios, and, through favorable changes in our deposit mix, have expanded our net interest margin.”