UCFC announces strong earnings and dividend increase
YOUNGSTOWN, Ohio — United Community Financial Corp., parent company of Home Savings Bank, announced net income of $4.5 million, or 90 cents per diluted common share, for the three months ended Dec. 31.
For the year ended Dec. 31, net income was $21.8 million, or 43.7 cents per diluted common share.
During the year, three non-recurring charges were recognized. In the fourth quarter, a revaluation of net deferred tax assets increased tax expense $1.9 million and an asset write down of $1.5 million, after tax, was prompted by an unfavorable ruling from an appellate court. For the year, non-recurring acquisition-related expenses totaling $3.3 million, after tax, were also recognized. By adjusting reported earnings for these non-recurring items, the company’s normalized quarterly net income was $7.9 million for the quarter, or 15.8 cents per diluted share, and normalized full-year net income was $28.5 million, or 57.1 cents per diluted common share.
Fourth quarter 2017 highlights:
Continued strong organic loan growth at 10.1 percent annualized
Average deposit growth at 5.8 percent annualized
Net interest margin of 3.43 percent
Return on average assets of 0.68 percent, or 1.20 percent normalized
Return on average equity of 6.09 percent, or 10.72 percent normalized
Efficiency ratio was 63.73 percent, or 53.76 percent normalized
Increased dividend 50 percent to 6 cents per common share
Full year 2017 highlights:
Continued strong organic loan growth, including loans held for sale, at 16.5 percent
Net interest margin of 3.41 percent
Return on average assets of 0.85 percent, or 1.11 percent normalized
Return on average equity of 7.63 percent, or 9.97 percent normalized
Efficiency ratio was 64.28 percent, or 57.01 percent normalized
Gary M. Small, president and CEO of the company, said, “I am very pleased with the organization’s fourth quarter core performance. Commercial and consumer growth exceeded expectations, deposit growth initiatives took hold, and our core expenses for the quarter were well contained. These results, combined with the anticipated positive impacts for our customers from the recent tax legislation, certainly provide excellent momentum as we head into 2018.”
Home Savings is a wholly owned subsidiary of the company, offering a full line of commercial, wealth management and consumer banking products and services with 35 retail banking offices (34 in Ohio and one in Pennsylvania). Home Savings also has residential mortgage loan centers servicing Ohio, West Virginia, western Pennsylvania, northern Kentucky and eastern Indiana. Additional information on the company, Home Savings and James & Sons Insurance is available at ir.ucfconline.com.