United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company of Youngstown, Ohio (Home Savings), today reported a consolidated net loss of $8.9 million, or $(0.29) per diluted share, for the three months ended September 30, 2011. This compares to a net loss of $9.9 million, or $(0.32) per diluted share, for the three months ended September 30, 2010. Current earnings have been negatively impacted by the level of the provision for loan losses, which totaled $11.8 million in the third quarter. The Company also reported a cumulative net loss of $7.7 million, or $(0.25) per diluted share, for the nine months ended September 30, 2011, as compared to a cumulative net loss of $19.9 million, or $(0.66) per diluted share, for the nine months ended September 30, 2010.
Selected third quarter results:
- Delinquent loans declined $10.9 million from the prior quarter to $130.9 million
- Nonperforming loans declined $5.0 million from the prior quarter to $134.1 million
- Nonperforming assets declined $10.4 million from the prior quarter to $172.4 million
- Home Savings’ Tier 1 leverage ratio of 8.13% and the total risk based capital of 13.25% both exceed regulatory requirements
- Tangible book value per share at September 30, 2011 was $5.88, down from $5.90 at June 30, 2011
Patrick W. Bevack, President and Chief Executive Officer of UCFC and Home Savings, commented that, “The positive trend of decreasing delinquent loans, nonperforming loans and nonperforming assets continued through the third quarter. The branch sale previously announced is still expected to close in the fourth quarter. This sale is expected to generate a net gain of approximately $4.0 million. The Bank was also able to recognize a gain of $4.5 million on the sale of select investment securities in October. These two actions will have a positive effect on both earnings and capital ratios in the fourth quarter.”
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