United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company (Home Savings), today reported a consolidated net loss of $4.9 million, or $(0.16) per diluted share, for the three months ended June 30, 2010. This compares to a net loss of $5.1 million, or $(0.17) per diluted share, for the three months ended June 30, 2009. The Company also reported a cumulative net loss of $10.0 million, or $(0.33) per diluted share, for the six month’s ended June 30, 2010 as compared to net income of $356,000, or $0.01 per diluted share, for the six months ended June 30, 2009.

Beginning with this earnings release, the Company has adopted the practice of issuing its quarterly earnings release on or about the day that the quarterly report on Form 10-Q is filed in order to eliminate the potential for changes in financial results in the time period traditionally between the two filings.

Selected second quarter results:
  • Net interest margin improved to 3.30%
  • Tier 1 leverage ratio increased to 8.71%
  • Total Risk Based Capital increased to 13.16%
  • Tangible common equity to tangible assets was 9.17%
  • Nonperforming loans were $155.1 million
  • Nonperforming assets were $197.2 million
  • Book value per share and tangible book value per share were $6.88 and $6.87, respectively

Chairman, President and Chief Executive Officer Douglas M. McKay commented, “The poor performance of the economy continues to cause weaknesses in several of our commercial real estate loan relationships and we, in turn, continue to recognize those weaknesses through loan loss provisions. Despite the fact that we have yet to turn the corner relative to earnings, we have increased our capital ratios, and, through favorable changes in our deposit mix, have expanded our net interest margin.”

Net Interest Income

Net interest income was $18.0 million in the second quarter of 2010, a decrease from $18.7 million for the second quarter of 2009. Both interest income and interest expense decreased, with a larger decline in interest income. Total interest income decreased $5.2 million in the second quarter of 2010 compared to the second quarter of 2009, primarily as a result of a decrease of $270.0 million in the average balance of outstanding loans. The Company’s construction and commercial loan portfolios declined due to the strategic objective of reducing specific concentrations in these portfolios in the period. United Community also experienced a decrease in the yield on net loans of 28 basis points.

Total interest expense decreased $4.5 million for the quarter ended June 30, 2010, as compared to the same quarter last year. The change was due primarily to reductions of $3.7 million in interest paid on deposits, $694,000 in interest paid on Federal Home Loan Bank advances and $130,000 in interest paid on repurchase agreements and other borrowings. The overall decrease in interest expense is attributable to a shift in deposit balances from certificates of deposit to relatively less expensive non-time deposits. The average outstanding balance of certificates of deposit declined by $182.9 million, while non-time deposits increased by $52.3 million. Also contributing to the change was a reduction of 72 basis points in the cost of certificates of deposit, as well as a decrease in the cost of non-time deposits of 36 basis points.

The primary cause of the decrease in interest expense on Federal Home Loan Bank advances was a decrease in the average balance of those funds of $54.2 million, as well as a rate decrease on those borrowings of 67 basis points in the second quarter of 2010 compared to the same quarter in 2009. The rate on short-term advances from the Federal Home Loan Bank decreased due to the Federal Reserve’s action to keep the Federal Funds rate low. The decrease in interest expense on repurchase agreements and other borrowings was due primarily to a decrease in average balances of $11.6 million.

The Company’s net interest margin in the second quarter increased to 3.30% compared to 3.28% in the first quarter of 2010 and 3.12% in the second quarter of 2009.

Net interest income for the six months ended June 30, 2010, was $35.7 million, compared to $37.4 million for the same period last year. Both interest income and interest expense decreased, with a larger decline in interest income. Total interest income decreased $10.8 million in the first six months of 2010 compared to the first six months of 2009. The change in interest income was primarily the result of a decline of $10.4 million in interest earned on loans, which was a result of a decrease of $290.6 million in the average balance of outstanding loans. United Community also experienced a decrease in the yield on net loans of 22 basis points.

Total interest expense decreased $9.1 million for the six months ended June 30, 2010, as compared to the same period last year. The change was due primarily to reductions of $7.0 million in interest paid on deposits, $1.7 million in interest paid on Federal Home Loan Bank advances and $397,000 in interest paid on repurchase agreements and other borrowings. The overall decrease in interest expense is attributable to a decline in the average outstanding balances of certificates of deposit of $168.6 million, as well as a reduction of 65 basis points in the cost of those liabilities. Also contributing to the change was a decrease in the cost of interest bearing checking accounts of 35 basis points despite an increase in the average balance of those deposits of $29.7 million.

The primary cause of the decrease in interest expense on Federal Home Loan Bank advances was a decrease in the average balance of those funds of $111.2 million, as well as a rate decrease on those borrowings of 49 basis points in the first half of 2010 compared to the same period in 2009. The rate on short-term advances from the Federal Home Loan Bank has decreased due to the Federal Reserve’s action to keep the Federal Funds rate low. The decrease in interest expense on repurchase agreements and other borrowings was due primarily to a decrease in the average balances of $19.4 million in those liabilities.

Noninterest Income

Noninterest income decreased in the second quarter of 2010 to $4.7 million, as compared to $6.2 million in the second quarter of 2009. Driving the decrease in noninterest income was a $1.3 million valuation allowance recognized on deferred mortgage servicing rights and, to a lesser extent, additional losses recognized on the sale of an REO property during the quarter. These decreases were offset partially with higher security gains during the quarter.

Due to the continued low interest rate environment, amortization of deferred mortgage servicing rights has trailed runoff. As a result, the Company established a valuation allowance to bring the balance of these assets to fair value. As interest rates begin to rise, the valuation allowance would be expected to be recovered.

Noninterest income increased in the first half of 2010 to $11.3 million, as compared to the first half of 2009 of $8.9 million. Driving the increase in noninterest income was an increase in gains realized on the sale of available for sale securities of $5.1 million along with a gain recognized on the sale of Home Savings’ Findlay, Ohio branch of $1.4 million. These gains were offset partially by the aforementioned valuation allowance of $1.3 million established on the Bank’s deferred mortgage servicing rights and lower mortgage banking income due to fewer gains recognized on loan sales.

Noninterest Expense

Noninterest expense was $17.3 million in the second quarter of 2010, compared to $17.2 million in the second quarter of 2009. The increase in noninterest expense was driven by higher employee benefit expenses of $1.3 million along with higher real estate owned and other repossessed asset expenses, offset by declines in deposit insurance expense. Higher employee benefit expenses are the result of Home Savings’ prepayment of the ESOP loan to United Community and allocation of shares to plan participants, which, following the downstream of the prepayment amount, resulted in $9.0 million in additional capital at Home Savings. The increase in real estate owned and other repossessed asset expenses are a result of the higher volume of properties the Company is maintaining and the level of expenses associated with keeping the properties in saleable condition.

Noninterest expense was $34.3 million in the first half of 2010, compared to $33.6 million in the first half of 2009. The increase in noninterest expense was driven by higher employee benefit expenses of $1.5 million along with higher professional fees associated with legal expenses paid by the Company during the first half of 2010 as compared to the first half of 2009, offset by declines in deposit insurance expense. Higher employee benefit expenses are the result of $1.3 million in expense associates with the aforementioned prepayment of the ESOP loan and allocation of shares to plan participants. Professional fees include legal, audit, tax consulting and other professional services obtained by the Company. Legal fees were elevated during the first half of 2010 primarily because of the continued resolution of asset quality issues.

Asset Quality

Certain negative trends existed relative to nonperforming and impaired loans during the first half of 2010. These trends are caused by a continuation of events occurring in the second half of 2009, which resulted in both general and specific reserves being set aside against future charge offs at that time. In the first half of 2010, certain loans were charged off that had been previously provided for. Specifically, one-to four-family residential construction loan chargeoffs of $13.0 million exceeded the provision for loan losses in this category by approximately $9.3 million in the first half of 2010. Chargeoffs for this category exceed the loan loss provision in this period primarily as a result of $8.1 million of chargeoffs being fully reserved at December 31, 2009. A substantial portion of the $8.1 million was attributable to six loan relationships. As a result, for the Company as a whole, total chargeoffs of $24.7 million exceeded provisions of $22.8 million in the first half of 2010, resulting in a decrease in the allowance for loan losses of $1.6 million for the period.

The provision for loan losses increased to $22.8 million in the first half of 2010, compared to $20.8 million in the first half of 2009. The increase in the provision for loan losses in the first half of 2010 is primarily the result of credit downgrades within the commercial real estate portfolio and specific reserves assigned to a number of commercial real estate properties. Also contributing to the increase is the effect of charge-offs to record foreclosed and repossessed assets at fair market value before the Company takes possession of the properties in satisfaction of loans.

Net loan charge-offs were $17.4 million in the second quarter of 2010, compared to $10.3 million in the second quarter a year ago. Net loan charge-offs for the six months ended June 30, 2010 were $24.3 million compared to $16.9 million for the six months ended June 30, 2009. The net charge-offs include partial charge-offs of select one-to four-family mortgage loans, multifamily loans, non-residential real estate loans and commercial loans to appropriately reflect the declining value of the collateral supporting such loans.

The allowance for loan losses decreased to $40.7 million, or 2.23% of the net loan portfolio and 26.25% of nonperforming loans as of June 30, 2010, down from $42.3 million or 2.22% of the net loan portfolio and 36.49% of nonperforming loans as of December 31, 2009.

During the first six months of 2010, nonperforming loans increased $39.2 million, to $155.1 million at June 30, 2010 as compared to $115.9 million at December 31, 2009. During the first six months of 2010, four nonresidential loan relationships aggregating $23.8 million, one $11.6 million residential construction loan, one $2.0 million nonresidential construction loan and one $1.7 million unsecured commercial loan all became nonperforming.

Nonperforming assets, which consist of the nonperforming loans discussed above plus real estate owned and other repossessed assets, increased $50.3 million to $197.2 million at June 30, 2010 compared to $146.8 million at December 31, 2009. The increase in nonperforming assets was due primarily to the increase in nonperforming loans mentioned above along with an increase in real estate and tangible property of $11.1 million acquired in satisfaction of loans.

Net Loans

Net loans decreased $80.0 million during the first six months of 2010. The primary source of the decrease was the overall decline in originations of construction loans and commercial real estate loans. Home Savings has made a conscious effort to decrease its construction and commercial real estate portfolios.

Available for Sale Securities

Available for sale securities increased $25.8 million during the first six months of 2010 as a result of various security transactions initiated during the period. During the first six months of 2010, the Company purchased approximately $263.2 million in available for sale securities. Some of these securities purchased had not settled on the day the second quarter ended, which had the effect of temporarily increasing Other Assets by $27.4 million. Securities purchases during the first six months of 2010 were offset partially by sales approximating $195.4 million in securities and experienced paydowns and maturities of $40.9 million. The Company also sold its investments in a Fannie Mae auction rate pass through trust security and an equity investment in which impairment charges had previously been recognized. The sale of these two securities, which occurred in the first quarter, had the benefit of reducing the Company’s remaining net deferred tax asset.

Deposits and Borrowed Funds

Deposits decreased $73.0 million during the six months ended June 30, 2010. The primary cause for the decline in deposits is the sale of Home Savings’ Findlay, Ohio branch, which had $26.5 million in deposits at the time of sale. Also affecting the change was expected runoff due to the maturity of $391.8 million in retail certificates of deposit. The runoff consisted primarily of high-rate CD’s that were issued in the summer of 2008. Despite the relatively high dollar amount of the runoff, the majority of CD’s maturing in the period were retained at substantially lower rates, and new products were introduced toward the end of the period, which slowed the runoff. The maturity and paydown of $12.7 million in brokered certificates of deposit during the first six months of 2010 also contributed to the decline in deposits.

Borrowed funds increased $56.1 million during the six-month period ending June 30, 2010. Federal Home Loan Bank advances increased $54.5 million and repurchase agreements and other borrowings decreased $1.6 million. The change is due primarily to funding needs as a result of maturing certificates of deposit during the period. The average balance of borrowed funds for the six months ended June 30, 2010 was $213.2 million as compared with $324.3 million for the same period a year ago.

Home Savings is a wholly-owned subsidiary of the Company and operates 38 full-service banking offices and six loan production offices located throughout Ohio and western Pennsylvania. Additional information on the Company and Home Savings may be found on the Company’s web site: www.ucfconline.com.

When used in this press release, the words or phrases “believes,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
   
June 30, December 31,
2010 2009
(Dollars in thousands)
Assets:
Cash and deposits with banks $ 23,673 $ 22,330
Federal funds sold and other   18,189     22,744  
Total cash and cash equivalents 41,862 45,074
Securities:
Available for sale, at fair value 307,154 281,348
Loans held for sale 4,946 10,497
Loans, net of allowance for loan losses of $40,728 and $42,287, respectively 1,786,038 1,866,018
Federal Home Loan Bank stock, at cost 26,464 26,464
Premises and equipment, net 22,308 23,139
Accrued interest receivable 8,473 9,090
Real estate owned and other repossessed assets 42,046 30,962
Core deposit intangible 568 661
Cash surrender value of life insurance 26,751 26,198
Other assets   47,499     18,976  
Total assets $ 2,314,109   $ 2,338,427  
 
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Interest bearing $ 1,570,093 $ 1,642,722
Non-interest bearing   126,438     126,779  
Total deposits 1,696,531 1,769,501
Borrowed funds:
Federal Home Loan Bank advances 275,773 221,323
Repurchase agreements and other   98,440     96,833  
Total borrowed funds 374,213 318,156
Advance payments by borrowers for taxes and insurance 17,939 19,791
Accrued interest payable 1,024 1,421
Accrued expenses and other liabilities   11,711     9,775  
Total liabilities   2,101,418     2,118,644  
 
Shareholders' Equity:
Preferred stock-no par value; 1,000,000 shares authorized and unissued - -

Common stock-no par value; 499,000,000 shares authorized; 37,804,457 shares issued and 30,897,825 shares outstanding
142,808 145,775
Retained earnings 138,647 148,674
Accumulated other comprehensive income 4,191 4,110
Unearned employee stock ownership plan shares - (5,821 )
Treasury stock, at cost, 6,906,632 shares   (72,955 )   (72,955 )
Total shareholders’ equity   212,691     219,783  
Total liabilities and shareholders’ equity $ 2,314,109   $ 2,338,427  
 
UNITED COMMUNITY FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
             
For the Three Months Ended For the Six Months Ended
June 30, June 30,
2010 2009 2010 2009
(Dollars in thousands, except per share data)
Interest income
Loans $ 24,918 $ 30,076 $ 50,761 $ 61,143
Loans held for sale 69 216 139 479
Securities:
Available for sale 2,896 2,796 5,481 5,566
Federal Home Loan Bank stock dividends 294 294 594 593
Other interest earning assets   8     9     15     38  
Total interest income 28,185 33,391 56,990 67,819
Interest expense
Deposits 8,408 12,074 17,726 24,725
Federal Home Loan Bank advances 875 1,569 1,723 3,427
Repurchase agreements and other   931     1,061     1,854     2,251  
Total interest expense   10,214     14,704     21,303     30,403  
Net interest income 17,971 18,687 35,687 37,416
Provision for loan losses   10,310     12,311     22,760     20,755  
Net interest income after provision for loan losses   7,661     6,376     12,927     16,661  
Non-interest income
Non-deposit investment income 484 404 912 708
Service fees and other charges 424 2,721 2,175 4,233
Net gains (losses):
Securities available for sale 3,671 1,382 6,514 1,382

Other-than-temporary loss in equity securities
Total impairment loss - - - (150 )
Loss recognized in other comprehensive income   -     -     -     -  
Net impairment loss recognized in earnings - - - (150 )
Mortgage banking income 651 1,788 1,037 2,928
Real estate owned and other repossessed assets (1,755 ) (1,182 ) (3,239 ) (2,320 )
Gain on retail branch sale 1 - 1,388 -
Other income   1,269     1,092     2,518     2,167  
Total non-interest income   4,745     6,205     11,305     8,948  
Non-interest expense
Salaries and employee benefits 9,105 7,764 17,279 15,787
Occupancy 839 899 1,843 1,883
Equipment and data processing 1,720 1,660 3,387 3,390
Franchise tax 503 555 1,014 1,147
Advertising 147 187 369 416
Amortization of core deposit intangible 45 58 93 118
Deposit insurance premiums 1,459 2,940 2,920 4,723
Professional fees 940 907 1,973 1,623
Real estate owned and other repossessed asset expenses 1,024 804 1,631 1,755
Other expenses   1,509     1,428     3,750     2,759  
Total non-interest expenses   17,291     17,202     34,259     33,601  
Income (loss) before income taxes and discontinued operations (4,885 ) (4,621 ) (10,027 ) (7,992 )
Income taxes expense (benefit)   -     (1,707 )   -     (3,399 )
Net income (loss) before discontinued operations (4,885 ) (2,914 ) (10,027 ) (4,593 )
Discontinued operations
Net income of Butler Wick Corp., net of tax   -     -     -     4,949  
Net income (loss) $ (4,885 ) $ (2,914 ) $ (10,027 ) $ 356  
 
Earnings (loss) per share
Basic--continuing operations $ (0.16 ) $ (0.10 ) $ (0.33 ) $ (0.16 )
Basic--discontinued operations - - - 0.17
Basic (0.16 ) (0.10 ) (0.33 ) 0.01
Diluted--continuing operations (0.16 ) (0.10 ) (0.33 ) (0.16 )
Diluted--discontinued operations - - - 0.17
Diluted (0.16 ) (0.10 ) (0.33 ) 0.01
 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended

June 30,2010

March 31,2010

December 31,2009

September 30,2009

June 30,2009
(In thousands, except per share data)
Financial Data
Total assets $ 2,314,109 $ 2,279,719 $ 2,338,427 $ 2,462,185 $ 2,487,055
Total loans, net 1,786,038 1,823,899 1,866,018 1,919,803 2,032,404
Total securities 307,154 272,239 281,348 296,461 255,845
Total deposits 1,696,531 1,728,592 1,769,501 1,755,503 1,828,214
Total shareholders' equity 212,691 214,482 219,783 235,926 234,613
Net interest income 17,971 17,716 19,093 19,405 18,687
Provision for loan losses 10,310 12,450 22,740 5,579 12,311
Noninterest income, excluding other-than-temporary impairment losses 4,745 6,560 4,907 691 6,205
Net impairment losses recognized in earnings - - 56 572 -
Noninterest expense 17,291 16,968 14,654 15,385 17,202
Income tax expense (benefit) - - 2,812 (573 ) (1,707 )
Net income (loss) (4,885 ) (5,142 ) (16,262 ) (867 ) (2,914 )
 
Share Data
Basic earnings (loss) per share $ (0.16 ) $ (0.17 ) $ (0.54 ) $ (0.03 ) $ (0.10 )
Diluted earnings (loss) per share (0.16 ) (0.17 ) (0.54 ) (0.03 ) (0.10 )
Dividends declared per share - - - - -
Book value per share 6.88 6.94 7.11 7.64 7.59
Tangible book value per share 6.87 6.92 7.09 7.61 7.57
Market value per share 1.68 1.50 1.45 1.74 1.09
 
Shares outstanding at end of period 30,898 30,898 30,898 30,898 30,898
Weighted average shares outstanding--basic 30,039 29,955 29,879 29,803 29,727
Weighted average shares outstanding--diluted 30,039 29,955 29,879 29,803 29,727
 
Key Ratios
Return on average assets -0.85 % -0.90 % -2.69 % -0.14 % -0.46 %
Return on average equity -8.91 % -9.18 % -27.18 % -1.45 % -4.74 %
Net interest margin 3.30 % 3.28 % 3.33 % 3.32 % 3.12 %
Efficiency ratio 82.92 % 78.59 % 56.97 % 65.02 % 69.38 %
 
Capital Ratios
Tier 1 leverage ratio 8.71 % 8.47 % 8.22 % 8.68 % 8.50 %
Tier 1 risk-based capital ratio 11.90 % 11.47 % 11.53 % 11.77 % 11.50 %
Total risk-based capital ratio 13.16 % 12.73 % 12.80 % 13.03 % 12.76 %
Equity to assets 9.19 % 9.41 % 9.40 % 9.58 % 9.43 %
Tangible common equity to tangible assets 9.17 % 9.38 % 9.37 % 9.56 % 9.41 %
 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended

June 30,2010

March 31,2010

December 31,2009

September 30,2009

June 30,2009
(Dollars in thousands, except per share data)
Loan Portfolio Composition
Real Estate Loans
One-to four-family residential $ 779,565 $ 777,380 $ 773,831 $ 771,891 $ 852,833
Multi-family residential* 138,875 143,992 150,480 158,342 164,376
Nonresidential* 383,882 389,407 397,895 407,853 396,688
Land* 26,217 25,122 23,502 23,625 23,221
Construction Loans
One-to four-family residential and land development 133,534 161,625 178,095 190,123 209,610
Multi-family and nonresidential*   14,870     14,682     13,741     13,675     15,007  
Total real estate loans 1,476,943 1,512,208 1,537,544 1,565,509 1,661,735
Consumer Loans 295,007 301,457 309,202 320,106 322,874
Commercial Loans   53,566     56,726     60,217     71,727     86,286  
Total Loans 1,825,516 1,870,391 1,906,963 1,957,342 2,070,895
Less:
Allowance for loan losses 40,728 47,768 42,287 38,845 39,832
Deferred loan costs, net   (1,250 )   (1,276 )   (1,342 )   (1,306 )   (1,341 )
Total   39,478     46,492     40,945     37,539     38,491  
Loans, net $ 1,786,038   $ 1,823,899   $ 1,866,018   $ 1,919,803   $ 2,032,404  
* Such categories are considered commercial real estate
 

At or for the quarters ended

June 30,2010
 

March 31,2010
 

December 31,2009
 

September 30,2009
 

June 30,2009
(Dollars in thousands, except per share data)
Deposit Portfolio Composition
Checking accounts
Interest bearing checking accounts $ 104,905 $ 101,068 $ 108,513 $ 102,525 $ 102,584
Non-interest bearing checking accounts   126,437     125,741     126,779     115,092     116,899  
Total checking accounts 231,342 226,809 235,292 217,617 219,483
Savings accounts 212,778 210,091 202,900 199,233 196,541
Money market accounts   310,506     300,610     291,320     282,438     274,931  
Total non-time deposits 754,626 737,510 729,512 699,288 690,955
Retail certificates of deposit 939,568 988,747 1,024,961 1,041,196 1,045,079
Brokered certificates of deposit   2,337     2,335     15,028     15,019     92,181  
Total certificates of deposit   941,905     991,082     1,039,989     1,056,215     1,137,260  
Total deposits $ 1,696,531   $ 1,728,592   $ 1,769,501   $ 1,755,503   $ 1,828,215  
Certificates of deposit as a percent of total deposits 55.52 % 57.33 % 58.77 % 60.17 % 62.21 %
 
UNITED COMMUNITY FINANCIAL CORP.
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
         
At or for the quarters ended

June 30,2010

March 31,2010

December 31,2009

September 30,2009

June 30,2009
(Dollars in thousands, except per share data)
 
Allowance For Loan Losses
Beginning balance $ 47,768 $ 42,287 $ 38,845 $ 39,832 $ 37,856
Provision 10,310 12,450 22,740 5,579 12,311
Net chargeoffs (17,350) (6,969) (19,298) (6,566) (10,335)
Ending balance $ 40,728 $ 47,768 $ 42,287 $ 38,845 $ 39,832
 
Net Charge-offs
Real Estate Loans
One-to four-family $ 2,318 $ 998 $ 762 $ 1,634 $ 1,258
Multi-family 1,067 1,585 208 254 652
Nonresidential 25 1,951 1,410 435 1,693
Land - 318 - - -
Construction Loans
One-to four-family residential and land development 11,924 1,018 3,860 2,724 4,532
Multi-family and nonresidential 310 - 118 - -
Total real estate loans 15,644 5,870 6,358 5,047 8,135
Consumer Loans 1,330 904 1,312 1,447 1,466
Commercial Loans 376 195 11,628 72 734
Total $ 17,350 $ 6,969 $ 19,298 $ 6,566 $ 10,335
 
 
At or for the quarters ended

June 30,2010

March 31,2010

December 31,2009

September 30,2009

June 30,2009
(Dollars in thousands, except per share data)
Nonperforming Loans
Real Estate Loans
One-to four family residential $ 30,279 $ 30,054 $ 26,766 $ 25,808 $ 23,081
Multi-family residential 8,816 7,885 7,863 5,612 5,349
Nonresidential 48,653 36,083 24,091 16,623 15,046
Land 5,943 11,627 5,160 5,168 5,169
Construction Loans
One-to four-family residential and land development 49,146 42,963 42,819 46,623 36,806
Multi-family and nonresidential 2,414 382 392 531 555
Total real estate loans 145,251 128,994 107,091 100,365 86,006
Consumer Loans 3,482 3,898 5,383 5,253 5,889
Commercial Loans 6,407 5,672 3,413 6,174 7,614
Total Loans $ 155,140 $ 138,564 $ 115,887 $ 111,792 $ 99,509
 
Total Nonperforming Loans and Nonperforming Assets
Past due 90 days and on nonaccrual status $ 129,534 $ 131,951 $ 103,864 $ 93,806 $ 91,757
Past due 90 days and still accruing 2,628 536 3,669 4,330 3,007
Past due 90 days 132,162 132,487 107,533 98,136 94,764
Past due less than 90 days and on nonaccrual 22,978 6,077 8,354 13,656 4,745
Total Nonperforming Loans 155,140 138,564 115,887 111,792 99,509
Other Real Estate Owned 41,470 34,605 30,340 26,905 31,411
Repossessed Assets 576 813 622 702 1,666
Total Nonperforming Assets $ 197,186 $ 173,982 $ 146,849 $ 139,399 $ 132,586
 
Total Troubled Debt Restructured Loans
Accruing $ 18,214 $ 23,153 $ 17,640 $ 1,949 $ 2,494
Non-accruing 10,855 8,764 5,008 1,469 1,998
Total $ 29,069 $ 31,917 $ 22,648 $ 3,418 $ 4,492

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