LAWRENCEBURG, Ind.,
May 6, 2015 /PRNewswire/ -- United
Community Bancorp (the "Company") (Nasdaq: UCBA), the parent
company of United Community Bank (the "Bank"), today reported net
income of $694,000, or $0.16 per diluted share, for the quarter ended
March 31, 2015, compared to net
income of $583,000, or $0.12 per diluted share, for the quarter
ended March 31, 2014. Net income for
the nine months ended March 31, 2015
was $1.8 million, or $0.41 per diluted share, compared to net income
of $1.9 million, or $0.40 per diluted share, for the nine months
ended March 31,
2014.
United Community
Bancorp
|
Summarized Statements
of Income
|
(In thousands, except
per share data)
|
|
|
For the nine
months ended
|
|
|
3/31/2015
|
|
3/31/2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Interest
income
|
|
$11,350
|
|
$11,279
|
Interest
expense
|
|
1,817
|
|
2,008
|
Net interest
income
|
|
9,533
|
|
9,271
|
|
|
|
|
|
Provision for
(recovery of) loan losses
|
|
(244)
|
|
(292)
|
Net interest
income after provision for loan losses
|
|
9,777
|
|
9,563
|
|
|
|
|
|
Total other
income
|
|
2,540
|
|
2,950
|
Total noninterest
expense
|
|
10,173
|
|
9,948
|
Income before
income taxes
|
|
2,144
|
|
2,565
|
|
|
|
|
|
Income tax
provision
|
|
303
|
|
638
|
Net
income
|
|
$1,841
|
|
$1,927
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$0.41
|
|
$0.40
|
Weighted average
shares outstanding
|
|
4,478,328
|
|
4,855,390
|
Summarized
Consolidated Statements of Financial Condition
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
(In thousands,
as of)
|
3/31/2015
|
12/31/2014
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$ 23,558
|
21,016
|
$ 39,375
|
$ 24,970
|
$ 27,836
|
Investment
Securities
|
205,977
|
198,231
|
195,975
|
219,319
|
210,181
|
Loans Receivable,
net
|
253,885
|
249,611
|
245,961
|
244,384
|
246,162
|
Other
Assets
|
39,058
|
40,080
|
41,532
|
41,792
|
41,636
|
Total
Assets
|
$522,478
|
$508,938
|
$522,843
|
$530,465
|
$525,815
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Municipal
Deposits
|
$100,628
|
$ 98,082
|
$110,646
|
$114,270
|
$107,127
|
Other
Deposits
|
331,054
|
322,470
|
323,877
|
325,366
|
327,022
|
FHLB
Advances
|
13,000
|
15,000
|
15,000
|
15,000
|
15,000
|
Other
Liabilities
|
5,965
|
2,598
|
3,029
|
2,899
|
2,882
|
Total
Liabilities
|
450,647
|
438,150
|
452,552
|
457,535
|
452,031
|
Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
|
Total Stockholders'
Equity
|
71,831
|
70,788
|
70,291
|
72,930
|
73,784
|
Total Liabilities
& Stockholders' Equity
|
$522,478
|
$508,938
|
$522,843
|
$530,465
|
$525,815
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarized
Consolidated Statements of Income
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
|
3/31/2015
|
12/31/2014
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
|
(for the three
months ended, in thousands, except per share data)
|
|
|
|
|
|
|
Interest
Income
|
$ 3,782
|
$ 3,807
|
$ 3,761
|
$ 3,679
|
$ 3,752
|
Interest
Expense
|
557
|
583
|
677
|
648
|
622
|
Net Interest
Income
|
3,225
|
3,224
|
3,084
|
3,031
|
3,130
|
Provision for
(Recovery of) Loan Losses
|
(289)
|
36
|
9
|
160
|
75
|
Net Interest Income
after Provision
|
|
|
|
|
|
for Loan Losses
|
3,514
|
3,188
|
3,075
|
2,871
|
3,055
|
Total Other
Income
|
683
|
973
|
884
|
747
|
887
|
Total Noninterest
Expense
|
3,355
|
3,412
|
3,406
|
3,244
|
3,206
|
Income before Tax
Provision
|
842
|
749
|
553
|
374
|
736
|
Income Tax
Provision
|
148
|
81
|
74
|
21
|
153
|
Net
Income
|
$
694
|
$
668
|
$
479
|
$
353
|
$
583
|
Basic and Diluted
Earnings per Share (1)
|
$
0.16
|
$
0.15
|
$
0.10
|
$
0.07
|
$
0.12
|
Weighted Average
Shares Outstanding (1):
|
|
|
|
|
|
Basic and
Diluted
|
4,428,861
|
4,421,455
|
4,583,593
|
4,774,567
|
4,814,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
|
|
For the three
months ended
|
|
|
3/31/2015
|
12/31/2014
|
9/30/2014
|
6/30/2014
|
3/31/2014
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.54%
|
0.52%
|
0.36%
|
0.27%
|
0.45%
|
|
Return on average
equity (1)
|
3.88%
|
3.78%
|
2.68%
|
1.91%
|
3.14%
|
|
Interest rate
spread (2)
|
2.70%
|
2.69%
|
2.51%
|
2.43%
|
2.55%
|
|
Net interest
margin (3)
|
2.73%
|
2.72%
|
2.55%
|
2.47%
|
2.60%
|
|
Noninterest expense
to average assets (1)
|
2.62%
|
2.65%
|
2.59%
|
2.44%
|
2.46%
|
|
Efficiency
ratio (4)
|
85.76%
|
81.30%
|
85.84%
|
85.87%
|
79.81%
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
average interest-bearing
liabilities
|
106.79%
|
107.41%
|
107.34%
|
107.79%
|
108.45%
|
|
Average equity to
average assets
|
13.96%
|
13.74%
|
13.63%
|
13.89%
|
14.25%
|
|
|
|
|
|
|
|
|
Bank Capital
Ratios:
|
|
|
|
|
|
|
Tangible
capital
|
12.22%
|
12.27%
|
12.14%
|
11.88%
|
12.00%
|
|
Core
capital
|
12.22%
|
12.27%
|
12.14%
|
11.88%
|
12.00%
|
|
Total risk-based
capital
|
24.85%
|
25.99%
|
26.50%
|
26.89%
|
26.85%
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
Nonperforming loans
as a percent
|
|
|
|
|
|
|
of total
loans
|
2.86%
|
2.97%
|
3.34%
|
3.97%
|
4.95%
|
|
Nonperforming assets
as a percent
|
|
|
|
|
|
|
of total
assets
|
1.48%
|
1.63%
|
1.75%
|
1.99%
|
2.48%
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
of total
loans
|
1.97%
|
1.99%
|
2.20%
|
2.18%
|
2.17%
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
of
nonperforming loans
|
68.66%
|
67.12%
|
65.92%
|
54.88%
|
43.92%
|
|
Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
outstanding loans during the period (1)
|
(0.20)%
|
0.68%
|
(0.16)%
|
0.28%
|
(0.04)%
|
|
|
|
|
|
|
|
|
(1) Quarterly income and
expense amounts used in calculating the ratio have been
annualized.
|
|
|
|
(2) Represents the difference
between the weighted average yield on average interest-earning
assets and the weighted
average cost
of average interest-bearing liabilities.
|
|
|
(3) Represents net interest
income as a percent of average interest-earning assets.
|
|
(4) Represents total
noninterest expense divided by the sum of net interest income and
total other income.
|
|
|
|
For the three months ended March
31, 2015:
Net income increased $111,000 to
$694,000 for the quarter ended
March 31, 2015, compared to net
income of $583,000 for the quarter
ended March 31, 2014.
Net interest income increased $95,000 to $3.2
million for the quarter ended March
31, 2015 compared to the same period in the prior
year. This resulted from an increase of $30,000 in interest income and a decrease of
$65,000 in interest expense.
The increase in interest income was the result of a $3.6 million increase in the average balance of
loans, partially offset by a decrease in the average rate earned on
loans from 4.59% for the quarter ended March
31, 2014 to 4.43% for the quarter ended March 31, 2015, and an increase in the average
rate earned on investments from 1.73% for the quarter ended
March 31, 2014 to 2.05% for the
current year period. The increase in interest income was also
partially offset by a $15.4 million
decrease in the average balance of investments. The decrease in
interest expense was primarily the result of a decrease in the
average interest rate paid on deposits from 0.52% for the quarter
ended March 31, 2014 to 0.46% for the
quarter ended March 31, 2015.
Net interest margin increased from 2.60% for the quarter ended
March 31, 2014 to 2.73% for the
quarter ended March 31, 2015.
Asset quality continued to improve. The provision for loan
losses was a net recovery of $289,000
for the quarter ended March 31, 2015,
compared to a $75,000 provision for
the same quarter in the prior year. The net recovery in the
provision for loan losses is due to the recovery of $301,000 on a non-residential loan and a
provision of $12,000. Nonperforming
assets as a percentage of total assets decreased from 2.48% at
March 31, 2014 to 1.48% at
March 31, 2015.
Other income decreased $204,000,
or 23%, to $683,000 for the quarter
ended March 31, 2015 compared to
$887,000 for the prior year quarter.
The decrease is primarily due to a $257,000 increase in loss on sale of investments,
partially offset by a $26,000
increase in gain on sale of loans and a $48,000 increase in service charge income,
partially offset by an $80,000
decrease in other income. The increase in losses on sale of
investments is due to the sale of low yielding mortgage-backed
securities and other available for sale securities in the quarter
ended March 31, 2015 with no such
sales in the previous year quarter. The increase in gain on
sale of loans is the result of an increase in loan sale activity
during the quarter ended March 31,
2015 as compared to the prior year quarter. The
decrease in other income is primarily due to a decrease of
$42,000 in the value of mortgage
servicing rights during the quarter ended March 31, 2015. The decrease in income from
mortgage servicing rights is primarily due to the year over year
increase in the prepayment of mortgages and low volume of loan
sales.
Noninterest expense increased $149,000 to $3.4
million for the quarter ended March
31, 2015 compared to $3.2
million for the prior year quarter. The increase includes
$238,000 in compensation and employee
benefits partially offset by a $23,000 decrease in occupancy expense and a
$31,000 decrease in data processing
expense. The increase in compensation and employee benefits is
primarily due to a $57,000 increase
in normal annual compensation increases, expenses related to
additional employees hired to enhance the commercial loan
department, and an increase in profit sharing expense of
$60,000. Additionally, compensation
expense increased as a result of a $65,000 stock-based compensation expense related
to the vesting of stock options and restricted share awards issued
in April 2014. There was no
corresponding expense for this item in the prior year period. The
decrease in occupancy expense is primarily due to a decrease in
depreciation expense. The decrease in data processing expense is
due to expenses related to a data conversion incurred in the
previous period with no such expense in the current reporting
period.
For the nine months ended March 31,
2015:
Net income decreased $86,000 to
$1.8 million for the nine months
ended March 31, 2015, compared to net
income of $1.9 million for the nine
months ended March 31, 2014.
Net interest income increased $262,000, or 2.8%, to $9.5
million for the nine months ended March 31, 2015 as compared to $9.3 million for the nine months ended
March 31, 2014. Increase in net
interest income was due to an increase of $71,000 in interest income and a $191,000 decrease in interest expense. The
increase in interest income was primarily the result of an increase
in the average rate earned on investments from 1.51% for the nine
months ended March 31, 2014 to 1.91%
for the nine months ended March 31,
2015, partially offset by an $8.6
million decrease in the average balance of
investments. The decrease in interest expense was primarily
the result of a decrease in the average interest rate paid on
deposits from 0.58% for the nine months ended March 31, 2014 to 0.50%, for the nine months
ended March 31, 2015. Net interest
margin increased from 2.60%, for the nine months ended June 30, 2014 to 2.73% for the nine months ended
March 31, 2015.
Asset quality continued to improve. The recovery of loan losses
was $244,000 for the nine months
ended March 31, 2015, compared to a
recovery of loan losses of $292,000
for the same period in the prior year. The decrease in the recovery
of provision for loan losses was primarily due to recoveries on one
1-4 family loan and one multi-family loan totaling $492,000 with a provision of $200,000 during the nine months ended
March 31, 2014 compared to the
recovery of a $301,000
non-residential loan with a provision of $12,000. Nonperforming assets as a
percentage of total assets decreased from 2.48% at March 31, 2014 to 1.48% at March 31, 2015.
Other income decreased $410,000,
or 13.9%, to $2.5 million for the
nine months ended March 31, 2015
compared to $3.0 million for the
prior year period. The decrease is primarily due to a $310,000 increase in loss on the sale of
investments, a $40,000 decrease in
gain on sale of loans and a $136,000
decrease in gain on sale of fixed assets, partially offset by a
$135,000 increase in service charges.
The increase in loss on sale of investments is due to the sale of
primarily lower yielding mortgage-backed securities and other
available for sale securities in the nine months ended March 31, 2015 with no such sales in the previous
year period. The decrease in gain on sale of loans is the result of
a lower level of refinancing activity during the nine months ended
March 31, 2015 as compared to the
previous year period due to higher loan rates in the current year
period and due to the Bank's decision to hold 15-year fixed-rate
loans in its loan portfolio during the current year period. The
decrease in gain on sale of fixed assets was the result of the sale
of our Osgood branch facility
during the nine months ended March 31,
2014 and no corresponding sale in the current year
period. The increase in service charges is primarily due to
increased customer activity.
Noninterest expense increased $225,000 to $10.2
million for the nine months ended March 31, 2015 compared to $9.9 million for the prior year period. An
increases of $348,000 in compensation
expense was partially offset by decreases of $58,000 in professional fees, $20,000 in data processing expenses and a gain on
the sale of OREO property of $147,000. The increase in compensation was
primarily the result of stock-based compensation expense of
$201,000 in the nine months ended
March 31, 2015 related to the vesting
of stock options and restricted share awards issued in April 2014 with no corresponding expense in the
prior year period, $84,000 in normal
annual compensation increases, and increases relating to additional
employees hired in the fiscal year to enhance the commercial loan
department.
Total assets were $522.5 million
at March 31, 2015, compared to
$530.5 million at June 30, 2014. A $1.4 million decrease in cash and cash
equivalents and a $13.3 million
decrease in investment securities were partially offset by a
$9.5 million increase in loans.
The decrease in cash and cash equivalents and investment securities
was primarily due to the use of cash and the proceeds generated
from the sale of investment securities to fund the increase in
loans.
Total liabilities were $450.6
million at March 31, 2015,
compared to $457.5 million at
June 30, 2014. The decrease in
liabilities was the result of an $8.0
million decrease in deposits. The decrease in deposits
is primarily due to a decrease in municipal deposits resulting from
normal fluctuations in municipal deposits.
Total stockholders' equity was $71.8
million at March 31, 2015,
compared to $72.9 million at
June 30, 2014. Net income of
$1.8 million for the nine months
ended March 31, 2015 and amortization
of ESOP shares totaling $300,000 for
the same period were offset by stock repurchases totaling
$3.9 million, dividends paid of
$859,500 and an increase in
unrealized gain on securities available for sale of $1.2 million. At March 31, 2015, the Bank was considered
"well-capitalized" under applicable regulatory requirements.
United Community Bancorp is the parent company of United
Community Bank, headquartered in Lawrenceburg, Indiana. The Bank
currently operates eight offices in Dearborn and Ripley Counties, Indiana.
This news release may contain forward-looking statements, which
can be identified by the use of words such as "believes,"
"expects," "anticipates," "estimates" or similar expressions. Such
forward-looking statements and all other statements that are not
historic facts are subject to risks and uncertainties which could
cause actual results to differ materially from those currently
anticipated due to a number of factors. These factors include, but
are not limited to, general economic conditions, changes in the
interest rate environment, legislative or regulatory changes that
may adversely affect our business, changes in accounting policies
and practices, changes in competition and demand for financial
services, adverse changes in the securities markets, changes in
deposit flows and changes in the quality or composition of the
Company's loan or investment portfolios. Additionally, other risks
and uncertainties may be described in the Company's annual report
on Form 10-K for the year ended June 30,
2014 filed with the SEC on September
26, 2014 which is available through the SEC's website at
www.sec.gov. Should one or more of these risks materialize,
actual results may vary from those anticipated, estimated or
projected. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Except as may be required by
applicable law or regulation, the Company assumes no obligation to
update any forward-looking statements.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-community-bancorp-reports-third-quarter-results-300078887.html
SOURCE United Community Bancorp