LAWRENCEBURG, Ind.,
Aug. 11, 2016 /PRNewswire/ -- United
Community Bancorp (the "Company") (Nasdaq: UCBA), the parent
company of United Community Bank (the "Bank"), today reported net
income of $810,000, or $0.20 per diluted share, for the quarter ended
June 30, 2016. Net income
increased by $115,000, or 16.5%, as
compared to the quarter ended June
30, 2015. Earnings per diluted share for the quarter
ended June 30, 2016 increased by
25.0% when compared to the quarter ended June 30, 2015 primarily due to an increase in
earnings and a decrease in the weighted-average shares outstanding
as a result of the Company's previously announced stock
repurchases, which concluded in November 2015. In addition,
the Company reported net income of $3.4
million for the year ended June 30,
2016, an increase of $892,000,
or 35.2%, as compared to the year ended June
30, 2015.
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United Community
Bancorp
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Summarized Statements
of Income
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(In thousands, except
per share data)
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For the year
ended
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6/30/2016
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6/30/2015
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|
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(Unaudited)
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Interest
income
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$15,698
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$15,232
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|
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Interest
expense
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2,201
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|
2,375
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Net interest
income
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13,497
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12,857
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|
|
|
|
|
|
|
|
|
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Provision for loan
losses
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187
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(348)
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Net interest
income after provision for loan losses
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13,310
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13,205
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|
|
|
|
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|
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Total noninterest
income
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4,639
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3,374
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Total noninterest
expense
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13,980
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13,618
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Income before
income taxes
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3,969
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2,961
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|
|
|
|
|
|
|
|
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Income tax
provision
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541
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|
425
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Net
income
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$3,428
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$2,536
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Basic earnings per
share
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$0.83
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$0.57
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Diluted earnings per
share
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$0.82
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$0.57
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Weighted average
shares outstanding-basic
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4,136,244
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4,463,912
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Weighted average
shares outstanding-diluted
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4,176,235
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4,476,184
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Summarized
Consolidated Statements of Financial Condition
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(In thousands,
except for per share data)
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6/30/2016
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3/31/2016
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12/31/2015
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9/30/2015
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6/30/2015
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ASSETS
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Cash and Cash
Equivalents
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$
28,980
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$ 23,246
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$ 23,456
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$ 21,997
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$ 18,522
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Investment
Securities
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193,215
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188,929
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186,663
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196,399
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210,664
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Loans Receivable,
net
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267,138
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269,480
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263,327
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263,540
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253,828
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Other
Assets
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36,756
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36,361
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36,734
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37,958
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38,171
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Total
Assets
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$
526,089
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$
518,016
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$
510,180
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$
519,894
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$
521,185
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LIABILITIES
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Municipal
Deposits
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$
100,203
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$ 95,089
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$ 95,192
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$ 102,348
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$ 103,222
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Other
Deposits
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338,682
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336,895
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331,894
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328,848
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329,315
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FHLB
Advances
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12,000
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13,934
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13,000
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13,000
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13,000
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Other
Liabilities
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4,750
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3,310
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2,790
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4,325
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4,211
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Total
Liabilities
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455,635
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449,228
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442,876
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448,521
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449,748
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Commitments and
contingencies
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-
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-
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-
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-
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-
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Total Stockholders'
Equity
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70,454
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68,788
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67,304
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71,373
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71,437
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Total Liabilities
& Stockholders' Equity
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$
526,089
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$
518,016
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$
510,180
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$
519,894
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$
521,185
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Outstanding
Shares
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4,198,143
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4,201,326
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4,201,326
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4,530,482
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4,610,839
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Tangible Book Value
per share
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$
16.11
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15.69
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15.33
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15.11
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14.85
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Summarized
Consolidated Statements of Income
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(Unaudited)
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(Unaudited)
|
(Unaudited)
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(Unaudited)
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(Unaudited)
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6/30/2016
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3/31/2016
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12/31/2015
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9/30/2015
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6/30/2015
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(for the three
months ended, in thousands, except per share data)
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Interest
Income
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$
3,966
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$
3,891
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$
3,883
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$
3,958
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$
3,882
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Interest
Expense
|
544
|
530
|
526
|
601
|
558
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Net Interest
Income
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3,422
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3,361
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3,357
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3,357
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3,324
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Provision for
(Recovery of) Loan Losses
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46
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52
|
45
|
44
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(104)
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Net Interest Income
after Provision
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for (Recovery of) Loan Losses
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3,376
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3,309
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3,312
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3,313
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3,428
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Total Noninterest
Income
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1,098
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1,121
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1,353
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1,067
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834
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Total Noninterest
Expense
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3,597
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3,230
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3,528
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3,625
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3,445
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Income before Tax
Provision
|
877
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1,200
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1,137
|
755
|
817
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Income Tax
Provision
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67
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259
|
159
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56
|
122
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Net
Income
|
$
810
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$
941
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$
978
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$
699
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$
695
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Basic Earnings per
Share
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$
0.20
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$
0.23
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$
0.24
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$
0.16
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$
0.16
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Diluted Earnings per
Share
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$
0.20
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$
0.23
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$
0.24
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$
0.16
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$
0.16
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Weighted Average
Shares Outstanding:
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Basic
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4,025,088
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4,027,432
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4,120,938
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4,368,527
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4,420,506
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Diluted
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4,063,727
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4,057,600
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4,156,239
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4,406,759
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4,439,931
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|
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|
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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For the three
months ended
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6/30/2016
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3/31/2016
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12/31/2015
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9/30/2015
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6/30/2015
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Performance
Ratios:
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Return on average
assets (1)
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0.62%
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0.73%
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0.76%
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0.54%
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0.53%
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Return on average
equity (1)
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4.66%
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5.51%
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6.07%
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3.91%
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3.86%
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Interest rate
spread (2)
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2.79%
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2.79%
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2.74%
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2.78%
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2.72%
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Net interest
margin (3)
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2.83%
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2.82%
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2.81%
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2.81%
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2.76%
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Noninterest expense
to average assets (1)
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2.76%
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2.48%
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2.74%
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2.79%
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2.66%
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Efficiency
ratio (4)
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79.58%
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70.82%
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74.90%
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82.00%
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82.94%
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Average
interest-earning assets to
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average interest-bearing
liabilities
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108.15%
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107.88%
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107.83%
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107.49%
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108.15%
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Average equity to
average assets
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13.34%
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13.32%
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12.52%
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13.76%
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13.78%
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Bank Capital
Ratios:
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Tangible
capital
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11.60%
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11.69%
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11.40%
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11.68%
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11.47%
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Core
capital
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11.60%
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11.69%
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11.40%
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11.68%
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11.47%
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Total risk-based
capital
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22.70%
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22.91%
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22.68%
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23.36%
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23.80%
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Asset Quality
Ratios:
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Nonperforming loans
as a percent
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of total
loans
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1.05%
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1.31%
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1.94%
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2.23%
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2.50%
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Nonperforming assets
as a percent
|
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of total
assets
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0.56%
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0.75%
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1.08%
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1.21%
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1.30%
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Allowance for loan
losses as a percent
|
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|
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of total
loans
|
1.78%
|
1.82%
|
1.77%
|
1.91%
|
1.98%
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Allowance for loan
losses as a percent
|
|
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of
nonperforming loans
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169.21%
|
138.71%
|
91.25%
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85.56%
|
78.95%
|
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Net charge-offs
(recoveries) to average
|
|
|
|
|
|
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outstanding loans during the period (1)
|
0.27%
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(0.26)%
|
0.61%
|
0.03%
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(0.22)%
|
|
|
|
|
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(1) Quarterly income and
expense amounts used in calculating the ratio have been
annualized.
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(2) Represents the difference
between the weighted average yield on average interest-earning
assets and the weighted
average cost of average interest-bearing
liabilities.
|
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(3) Represents net interest
income as a percent of average interest-earning assets.
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|
(4) Represents total
noninterest expense divided by the sum of net interest income and
total other income.
|
For the three months ended June 30,
2016:
Net income totaled $810,000 for
the quarter ended June 30, 2016,
which represented an increase of $115,000, or 16.5%, when compared to the quarter
ended June 30, 2015.
The improvement in net income was primarily the result of
improved net interest income and an increase in non-interest
income. Increases in noninterest income, including service
charge income and gains on sales of investments, also contributed
to the improvement in net income. Net interest income totaled
$3.4 million for the quarter ended
June 30, 2016, which represented an
increase of $98,000, or 2.9%, when
compared to the quarter ended June 30,
2015. The growth in the Company's core business resulted in
an increase in interest income which increased by $84,000 due to a $13.1
million increase in the average balance of loans. The
increase in loan balances is primarily the result of the continued
implementation of our controlled growth strategy in commercial
lending. Net income also reflected a 14 basis point increase
in the average rate earned on investment securities to 2.14% in the
current year quarter from 2.00% in the prior year quarter, and a
$14,000 decrease in interest expense
due to a one basis point decrease in the average rate paid on
deposits from 0.46% in the prior year quarter to 0.45% in the
current year quarter. The increase in investment yield is
primarily the result of divesting lower yielding mortgage-backed
securities and increasing the allocation to higher yielding
municipal bonds. The benefits of increased interest income,
decreased interest expense and increased investment yield were
partially offset by a seven basis point decrease in the average
rate earned on loans to 4.40% in the current year quarter from
4.47% in the prior year quarter, and a $17.5
million decrease in the average balance of investments.
The decrease in investments was primarily related to the
Company's use of the proceeds from the sale of investments to fund
loan growth.
Asset quality continued to improve over the three-month period
ended June 30, 2016 and the Bank has
successfully continued to reduce nonperforming assets.
Nonperforming assets as a percentage of total assets decreased from
1.30% at June 30, 2015 to 0.56% at
June 30, 2016, and nonperforming
loans as a percentage of total loans decreased from 2.50% at
June 30, 2015 to 1.05% at
June 30, 2016. The provision
for loan losses was $46,000 for the
quarter ended June 30, 2016, which
represented an increase of $150,000
compared to the quarter ended June 30,
2015, which included a recovery of $104,000.
Noninterest income totaled $1.1
million for the quarter ended June
30, 2016, which represented an increase of $264,000, or 31.7%, when compared to the quarter
ended June 30, 2015. The
increase was primarily due to a $33,000 increase in service charge income
resulting primarily from an increase in the number of transaction
accounts, a $48,000 increase in
profit on the sale of mortgage loans, and a $21,000 gain on the sale of investments as
compared to a $122,000 loss on the
sale of investments in the prior year quarter.
Noninterest expense totaled $3.6
million for the quarter ended June
30, 2016, which represented an increase of $152,000, or 4.4%, when compared to the quarter
ended June 30, 2015. The
increase was primarily due to a $50,000 increase in occupancy expense, a
$28,000 increase in advertising
expense, an increase of $97,000 in
data processing expense and an increase of $96,000 in other operating expenses, partially
offset by a $92,000 decrease in
employee benefits expense primarily due to a $40,000 decrease in payroll taxes and a
$23,000 credit to SERP ESOP expenses
resulting from annual accrual adjustments. The increase in other
operating expenses was due primarily to a $27,000 increase in debit card related expenses,
a $9,000 increase in postage
expenses, a $27,000 increase in 401K
administrative expenses and a $22,000
increase in mortgage loan promotion expenses.
For the year ended June 30,
2016:
Net income totaled $3.4 million
for the year ended June 30, 2016,
which represented an increase of $892,000, or 35.2%, when compared to the year
ended June 30, 2015.
The improvement in net income was primarily the result of
improved net interest income.
Increases in noninterest income, including the receipt of a life
insurance death benefit from the passing of two directors (one
previously retired), service charge income and gains on sales of
securities, also contributed to the improvement in net income. Net
interest income totaled $13.5
million, which represented an increase of $640,000, or 5.0%, when compared to the year
ended June 30, 2015. The growth
in the Company's core business resulted in an increase in interest
income. Interest income increased by $466,000 primarily due to a $13.6 million increase in the average balance of
loans as well as an increase in the average rate earned on
investment securities to 2.13% for the year ended June 30, 2016 compared to 1.92% for the prior
year, partially offset by a decrease in the average rate earned on
loans to 4.40% for the year ended June 30,
2016 from 4.54% for the prior year, and a decrease in
the average balance of investments to $190.4
million for the year ended June 30,
2016 compared to $201.8
million for the prior year. The decrease in investments was
primarily related to the Company's use of the proceeds from the
sale of investments to fund loan growth. The improvement in
net income also reflected a decrease in interest expense which
decreased by $174,000 year over year,
primarily as a result of a three basis point decrease in the
average interest rate paid on deposits to 0.46% for the year ended
June 30, 2016 from 0.49% for the year
ended June 30, 2015. The
decrease in interest rates paid year over year was primarily due to
the maturity of higher yielding certificates of deposit.
Nonperforming assets as a percentage of total assets decreased
from 1.30% at June 30, 2015 to 0.56%
at June 30, 2016, reflecting the
continuing efforts of management to improve asset quality and
reduce nonperforming assets. Nonperforming loans as a
percentage of total loans decreased from 2.50% at June 30, 2015 to 1.05% at June 30, 2016. At June 30, 2016 nonperforming loans totaled
$2.9 million as compared to
$6.5 million at June 30, 2015. The provision for loan
losses was $187,000 for the year
ended June 30, 2016, which
represented an increase of $535,000
compared to the provision recorded for the year ended June 30, 2015. The provision for the year
ended June 30, 2015 included a
recovery of $348,000.
Noninterest income totaled $4.6
million for the year ended June 30,
2016, which represented an increase of $1.3 million, or 37.5%, compared to the prior
year. The increase was primarily due to a $244,000 increase in proceeds received from bank
owned life insurance, a $221,000
increase in service charges on deposit accounts resulting primarily
from an increase in the number of transaction accounts, a
$166,000 increase on gain on sale of
mortgage loans, and a $577,000
increase on gain on sale of investments.
Noninterest expense totaled $14.0
million for the year ended June 30,
2016, which represented an increase of $362,000, or 2.7%, compared to the year ended
June 30, 2015. The increase in
noninterest expense was primarily the result of an increase of
$390,000 in compensation expense, an
increase of $51,000 in data
processing expenses, and an increase of $58,000 in other operating expenses, partially
offset by a decrease in premises and occupancy expense of
$48,000, a decrease of $63,000 in deposit insurance, and a decrease of
$26,000 in professional fees. The
increase in compensation expense is primarily due to salary
increases provided to employees in the normal course of
business. The increase in data processing expense is
primarily due to nonrecurring credit items in the prior period with
no corresponding credit in the current period. The increase in
other operating expense was primarily due to a $34,000 increase in 401k administrative fees, a
$33,000 increase in correspondent
bank fees, and an increase of $25,000
in debit card related expenses, partially offset by a $36,000 decrease in postage expense.
Statement of Financial Condition:
Total assets were $526.1 million
at June 30, 2016, compared to
$521.2 million at June 30, 2015. A $10.5 million increase in cash and cash
equivalents and a $13.3 million
increase in loans was partially offset by a $17.5 million decrease in investment securities.
Loan growth was partially tempered by the repayment of $1.5 million of nonperforming commercial loans,
$2.7 million of commercial loans
classified as troubled debt restructurings and $4.4 million of commercial loans classified as
"special mention" or "watch". The investment securities
balances decreased partially due to normal amortization and
maturities during the period. There were also sales of
investments totaling $16.3 million
during the year ended June 30, 2016.
The proceeds from the sales were used primarily to fund new loans,
which is expected to enhance the Bank's net interest margin as well
as increase interest income in the future.
Total liabilities increased $5.9
million from $449.7 million at
June 30, 2015 to $455.6 million at June 30,
2016 primarily due to a $6.3
million increase in deposits during the current year and a
$539,000 increase in other
liabilities, partially offset by a decrease in FHLB advances of
$1.0 million.
Stockholders' equity totaled $70.5
million as of June 30, 2016,
which represented a decrease of $983,000 when compared to June 30, 2015. The decrease in
stockholders' equity was the net effect of net income of
$3.4 million and a change in
unrealized gain on available-for-sale securities of $1.9 million, partially offset by stock
repurchases totaling $6.1 million and
dividends paid totaling $981,000 for
the year ended June 30, 2016.
There were 4,198,143 and 4,610,839 outstanding shares of common
stock at June 30, 2016 and 2015,
respectively. For all periods presented, 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,
2015 filed with the SEC on September
28, 2015 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-fourth-quarter-and-year-end-results-300312804.html
SOURCE United Community Bancorp