This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

United Community Financial Corp. Announces Fourth Quarter Results; Profitability Returns

The provision for loan losses was $2.1 million for the fourth quarter of 2012, as compared to $30.3 million for the third quarter in 2012. The provision expense in the third quarter of 2012 included $29.4 million directly associated with the bulk asset sale. The provision for loan losses was $39.3 million for all of 2012, as compared to $24.7 million for all of 2011.

Net Interest Income and Margin

Net interest income for the three months ended December 31, 2012 was $14.0 million, as compared to $14.1 million in the prior quarter. The net interest margin improved six basis points from 3.17% during the third quarter to 3.23% during the fourth quarter.

Total interest income decreased $394,000 in the fourth quarter of 2012 compared to the third quarter of 2012, primarily as a result of a decrease of $128.8 million in the average balance of outstanding loans. Home Savings also experienced a decrease in yield on those assets of 31 basis points during the quarter.

Total interest expense decreased $277,000 for the quarter ended December 31, 2012, as compared to the previous quarter. The change was due to a reduction of $278,000 in interest paid on deposits. The average outstanding balance of certificates of deposit declined by $51.9 million, while non-time deposits increased by $5.4 million. Also contributing to the change was a reduction of seven basis points in the cost of certificates of deposit.

Net interest income for the twelve months ended December 31, 2012 and December 31, 2011, was $60.4 million and $65.2 million, respectively. Total interest income decreased $17.9 million in 2012 compared to 2011, primarily as a result of a decrease of $295.0 million in the average balance of outstanding loans. United Community also experienced a decrease in the yield on net loans of 28 basis points. Home Savings’ construction and segments of its commercial real estate loan portfolios declined as a result of executing its strategic objective of reducing specific concentrations in these portfolios, as well as the bulk asset sale.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs