“Loan demand is still weak, but we are beginning to see some areas of recovery,” continued Mr. House. “Our challenge will be to grow our loan portfolio with quality loans. We believe that our strong capital base will continue to provide us with the capacity to make new loans and will provide us with a competitive advantage as the economy improves.”
Fourth Quarter Results
Net income attributable to USBI rose to $883,000, or $0.15 per diluted share, for the fourth quarter of 2012, compared with a net loss attributable to USBI of ($9.5 million), or ($1.58) per diluted share, for the fourth quarter of 2011. The 2011 fourth quarter’s results included a $4.1 million non-cash write-off of goodwill.
“Our improved profitability has added to our strong capital base, and we continue to be rated “well capitalized,” the highest regulatory rating,” continued Mr. House. “We maintained our ‘well capitalized,’ rating throughout the economic downturn and without any financial assistance from the Federal government. At December 31, 2012, our total risk based capital ratio rose to 17.1% for the Company and 17.2% for the Bank, both well above the regulatory requirement of 10.0% for a well-capitalized institution and a minimum regulatory requirement of 8.0%. In addition, our Tier 1 leverage ratio was 10.5% for the Company and 10.6% for the Bank, both measures significantly above the requirement of 5.0% for a well-capitalized institution and minimum regulatory requirement of 3.0%.”
Interest income totaled $9.7 million in the fourth quarter of 2012, compared with $10.6 million in the fourth quarter of 2011. The decrease in interest income was due primarily to lower earning assets, primarily loans, compared with the fourth quarter of 2011, partially offset by a 53 basis point increase in net interest margin to 6.66% in the fourth quarter of 2012, compared with 6.13% in the fourth quarter of 2011.