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 $1.7 million for the three months ended September 30, 2013. The Company also reported net income of $7.8 million (before amortization of the discount on preferred stock 1) for the nine months ended September 30, 2013.
Selected third quarter and year-to-date results:
- Net income for the first nine months of 2013 was $7.8 million
- Noninterest expense for the first nine months of 2013 was $41.8 million, down 17.8% from the first nine months of 2012
- Delinquent loans and nonperforming assets at September 30, 2013, were down 41.2% and 44.4% respectively from December 31, 2012
- The balance of real estate owned and other repossessed assets was $9.3 million at September 30, 2013, down 49.5% from December 31, 2012
- Home Savings’ Tier 1 leverage ratio was 10.26% and the total risk based capital ratio was 19.78%, well in excess of regulatory minimums
Patrick W. Bevack, President and Chief Executive Officer of the Company and Home Savings, commented, “Performance throughout the third quarter continued the positive trend for our Company. With the exception of the third quarter of 2012 in which we conducted a bulk asset sale, the Company has been profitable for seven out of the last eight quarters.” Bevack continued, “We will continue to focus our efforts on maintaining the strength and profitability of our Company while maximizing shareholder value.”
Asset QualityDelinquent loans continued to decline in the third quarter of 2013. As of September 30, 2013, delinquent loans were $27.9 million, down $20.3 million, or 42.1%, from $48.2 million at December 31, 2012. Nonperforming loans also continued to decline; as of September 30, 2013, nonperforming loans were $27.5 million, down $20.3 million, or 42.5%, from $47.8 million at December 31, 2012. Nonperforming assets were $36.8 million as of September 30, 2013, down $29.4 million, or 44.4%, from $66.2 million at December 31, 2012.