United Community Bancorp Reports First Quarter Results

PR Newswire

LAWRENCEBURG, Ind., Oct. 30, 2013 /PRNewswire/ -- United Community Bancorp (the "Company") (Nasdaq:  UCBA), the parent company of United Community Bank (the "Bank"), today reported net income of $762,000, or $0.16 per diluted share, for the quarter ended September 30, 2013, compared to net income of $494,000, or $0.10 per diluted share, for the quarter ended September 30, 2012.     

United Community Bancorp

Summarized Statements of Income

(In thousands, except per share data)



For the three months ended



9/30/2013


9/30/2012



(Unaudited)


(Unaudited)

Interest income


$3,759


$4,225

Interest expense


748


1,003

  Net interest income


3,011


3,222






Provision for (recovery of) loan losses


(442)


250

  Net interest income after provision for loan losses


3,453


2,972






Total other income


1,052


1,067

Total noninterest expense


3,448


3,417

  Income before income taxes


1,057


622






Income tax provision


295


128

  Net income


$   762


$   494






Basic and diluted earnings per share(1)


$0.16


$0.10

Weighted average shares outstanding(1)


4,875,257


5,050,134

(1)      Weighted average share and related earnings per share amounts for periods prior to January 9, 2013 have been restated retroactively to reflect the previously announced second step conversion at a conversion rate of 0.6573 to 1.

 

Summarized Consolidated Statements of Financial Condition



(Unaudited)


(Unaudited)

(Unaudited)

(Unaudited)


(In thousands, as of)

9/30/2013

6/30/2013

3/31/2013

12/31/2012

9/30/2012









ASSETS







Cash and Cash Equivalents

$      16,639

$ 16,787

$ 27,621

$ 39,375

$   31,271


Investment Securities

208,828

202,547

204,783

173,258

161,426


Loans Receivable, net

247,202

254,578

258,454

266,684

272,076


Other Assets

38,872

38,719

35,109

37,347

37,380


Total Assets

$    511,451

$  512,631

$   525,967

$  516,664

$  502,153









LIABILITIES







Municipal Deposits

$    101,994

$     90,141

$    103,483

$   102,806

$    106,920


Other Deposits

322,837

331,102

333,498

322,311

326,139


FHLB Advances

10,000

15,000

10,083

10,333

10,583


Other Liabilities

3,241

2,845

3,932

3,006

3,214


Total Liabilities

438,072

439,088

450,996

438,456

446,856


Commitments and contingencies

-

-

-

22,889

-


Total Stockholders' Equity

73,379

73,543

74,971

55,319

55,297


Total Liabilities & Stockholders' Equity

$    511,451

$  512,631

$    525,967

$  516,664

$    502,153
















Summarized Consolidated Statements of Income



(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)



9/30/2013

6/30/2013

3/31/2013

12/31/2012

9/30/2012



(for the three months ended, in thousands, except per share data)









Interest Income

$        3,759

$        3,712

$        3,847

$        4,103

$        4,225


Interest Expense

748

712

747

889

1,003


Net Interest Income

3,011

3,000

3,100

3,214

3,222


Provision for (Recovery of) Loan Losses

(442)

(651)

110

225

250


Net Interest Income after Provision







    for Loan Losses

3,453

3,651

2,990

2,989

2,972


Total Other Income

1,052

1,106

949

1,367

1,067


Total Noninterest Expense

3,448

3,381

3,427

3,370

3,417


Income before Tax Provision

1,057

1,376

512

986

622


Income Tax Provision

295

406

105

290

128


Net Income

$           762

$           970

$           407

$           696

$           494


Basic and Diluted Earnings per Share (1)

$          0.16

$          0.20

$          0.08

$          0.14

$          0.10


Weighted Average Shares Outstanding (1):








Basic and Diluted

4,875,257

4,875,257

4,892,523

5,050,134

5,050,134























(1) Weighted average share and related earnings per share amounts for periods prior to January 9, 2013 have been restated retroactively to reflect the previously announced second step conversion at a conversion rate of 0.6573 to 1.



 

















(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)



For the three months ended



9/30/2013

6/30/2013

3/31/2013

12/31/2012

9/30/2012


Performance Ratios:







Return on average assets (1)

0.59%

0.75%

0.31%

0.55%

0.40%


Return on average equity (1)

4.17%

5.19%

2.41%

5.02%

3.58%


Interest rate spread  (2)

2.48%

2.43%

2.47%

2.70%

2.75%


Net interest margin  (3)

2.53%

2.48%

2.53%

2.75%

2.79%


Noninterest expense to average assets (1)

2.68%

2.60%

2.61%

2.67%

2.74%


Efficiency ratio  (4)

84.86%

82.34%

84.64%

73.56%

79.67%


Average interest-earning assets to







     average interest-bearing liabilities

108.65%

109.29%

109.16%

106.17%

105.06%


Average equity to average assets

14.23%

14.37%

12.83%

10.98%

11.07%









Bank Capital Ratios:







Tangible capital

12.18%

12.07%

11.56%

9.37%

9.18%


Core capital

12.18%

12.07%

11.56%

9.37%

9.18%


Total risk-based capital

26.95%

26.72%

26.17%

20.36%

19.64%









Asset Quality Ratios:







Nonperforming loans as a percent







   of total loans

3.74%

4.87%

5.39%

5.34%

5.44%


Nonperforming assets as a percent







   of total assets

1.98%

2.60%

2.79%

2.98%

3.15%


Allowance for loan losses as a percent







   of total loans

2.15%

2.09%

2.18%

2.10%

2.05%


Allowance for loan losses as a percent







   of nonperforming loans

57.57%

42.83%

40.35%

39.37%

37.71%


Net charge-offs (recoveries) to average







   outstanding loans during the period (1)

(0.76)%

(0.56)%

0.13%

0.29%

0.26%









(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 September 30, 2013:

Net income increased $268,000 to $762,000 for the quarter ended September 30, 2013, compared to net income of $494,000 for the quarter ended September 30, 2012.

Net interest income decreased $211,000, or 6.5%, to $3.0 million for the quarter ended September 30, 2013 as compared to $3.2 million for the quarter ended September 30, 2012.   A decrease of $466,000 in interest income was partially offset by a $255,000 decrease in interest expense.  The decrease in interest income was the result of a $26.7 million decrease in the average balance of loans and a decrease in the average rate earned on investments from 2.01% at September 30, 2012 to 1.27% at September 30, 2013, partially offset by a $53.1 million increase 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 0.89% to 0.66%.  Changes in interest rates are reflective of decreases in overall market rates.

The recovery of loan losses was $442,000 for the quarter ended September 30, 2013, compared to a provision for loan losses of $250,000 for the same quarter in the prior year. The decrease in the provision for loan losses was primarily due to a $379,000 recovery of a commercial loan and a $124,000 recovery from two one-to four-family loans, all three of which were paid off during the current year quarter. The decrease in the provision for loan losses is also reflective of continued improvement in our asset quality. Asset quality continues to improve primarily due to the Bank's continuing efforts to resolve asset quality issues. Nonperforming assets as a percentage of total assets decreased from 3.15% at September 30, 2012 to 1.98% at September 30, 2013.

Other income remained flat at $1.1 million for the quarters ended September 30, 2013 and September 30, 2012.  A $136,000 increase in gain on sale of fixed assets was offset by a $161,000 decrease in gain on sale of loans.  The increase in gain on sale of fixed assets was the result of the sale of our Osgood branch facility for total proceeds of $425,000, compared to a net book value of $289,000, during the current quarter.  The decrease in gain on sale of loans is the result of a higher level of refinancing activity during the quarter ended September 30, 2012 as compared to the current year quarter due to higher loan rates in the current year quarter.

Noninterest expense remained flat at $3.4 million for the quarters ended September 30, 2013 and September 30, 2012.  A $131,000 increase in other operating expenses was offset by an $80,000 decrease in deposit insurance premium. The increase in other operating expenses is primarily the result of a $94,000 increase in loan-related expenses associated with a short-term promotion during the current year quarter.   

Total assets were $511.5 million at September 30, 2013, compared to $512.6 million at June 30, 2013.  A $7.4 million decrease in loans was partially offset by a $6.3 million increase in investment securities.  The decrease in loans was primarily the result of net payoffs totaling $5.6 million in one- to four-family real estate loans and $2.1 million in commercial real estate loans during the quarter ended September 30, 2013. The increase in investment securities was the result of redeploying proceeds from the payoff of loans into purchases of mortgage-backed securities and available for sale securities.

Total liabilities were $438.1 million at September 30, 2013, compared to $439.1 million at June 30, 2013, reflecting a $5.0 million decrease in FHLB advances partially offset by a $3.6 million increase in deposits.  The decrease in FHLB advances is due to a $5.0 million payment on a short-term advance in July 2013.  The increase in deposits was primarily due to a $11.9 million increase in municipal deposits, offset by an $8.3 million decrease in retail deposits due to declining certificate of deposit rates.

Total stockholders' equity was $73.4 million at September 30, 2013, compared to $73.5 million at June 30, 2013.  The decrease was primarily the result of a $735,000 after-tax increase in unrealized loss on investments and dividends paid of $309,000, partially offset by net income of $762,000.  At September 30, 2013, 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, 2013 filed with the SEC on September 27, 2013 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.

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