United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company of Youngstown, Ohio (Home Savings), today reported consolidated net income of $3.8 million, or $0.12 per diluted share, for the three months ended March 31, 2012. This represents the second consecutive quarter of profitability for the Company.
Selected first quarter results:
- Delinquent loans declined $21.2 million from the prior quarter
- Nonperforming loans declined $13.2 million from the prior quarter
- Nonperforming assets declined $17.6 million from the prior quarter
- Home Savings’ Tier 1 leverage ratio of 8.96% and the total risk based capital ratio of 15.21% both reflected increases from the prior quarter
Patrick W. Bevack, President and Chief Executive Officer of UCFC and Home Savings, commented that, “The Company has started 2012 with positive news. Net income of $3.8 million and continued improvement in asset quality reflects the progress the Company has made over the past few years. The results of the first quarter further emphasize that the hard work and dedication of management, employees and directors is truly paying off.” Bevack continued, “We recognize there is still more work to be done. We continue to move forward with our capital raising plan and achieving compliance with the recently agreed-to Consent Order.”
Asset QualityDelinquent loans declined to $105.7 million at March 31, 2012, down $89.5 million, or 45.9%, from their high point of $195.2 million at March 31, 2010. Nonperforming loans at March 31, 2012 fell to $110.0 million, down $45.2 million, or 29.1%, from their high point of $155.1 million at June 30, 2010. Nonperforming assets dropped to $139.0 million at March 31, 2012, down $58.2 million, or 29.5%, from their high point of $197.2 million at June 30, 2010.