LAWRENCEBURG, Ind.,
Aug. 7, 2015 /PRNewswire/ -- United
Community Bancorp (the "Company") (Nasdaq: UCBA), the parent
company of United Community Bank (the "Bank"), today reported net
income of $695,000, or $0.16 per diluted share, for the quarter ended
June 30, 2015, compared to net income
of $353,000, or $0.07 per diluted share, for the quarter
ended June 30, 2014. Net income
for the year ended June 30, 2015 was
$2.5 million, or $0.57 per diluted share, compared to net income
of $2.3 million, or $0.47 per diluted share, for the year ended
June 30,
2014.
|
United Community
Bancorp
|
|
Summarized Statements
of Income
|
|
(In thousands, except
per share data)
|
|
|
For the year
ended
|
|
|
6/30/2015
|
|
6/30/2014
|
|
|
(Unaudited)
|
|
(Audited)
|
|
Interest
income
|
|
$15,232
|
|
$14,958
|
|
Interest
expense
|
|
2,375
|
|
2,656
|
|
Net interest
income
|
|
12,857
|
|
12,302
|
|
|
|
|
|
|
Recovery of loan
losses
|
|
(348)
|
|
(132)
|
|
Net interest
income after Recovery of loan losses
|
|
13,205
|
|
12,434
|
|
|
|
|
|
|
Total other
income
|
|
3,396
|
|
3,697
|
|
Total noninterest
expense
|
|
13,640
|
|
13,192
|
|
Income before
income taxes
|
|
2,961
|
|
2,939
|
|
|
|
|
|
|
Income tax
provision
|
|
425
|
|
659
|
|
Net
income
|
|
$2,536
|
|
$2,280
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
$0.57
|
|
$0.47
|
|
Weighted average
shares outstanding - basic
|
|
4,463,912
|
|
4,835,240
|
|
Weighted average
shares outstanding - diluted
|
|
4,476,184
|
|
4,835,240
|
|
Summarized
Consolidated Statements of Financial Condition
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
(In thousands,
as of)
|
6/30/2015
|
3/31/2015
|
12/31/2014
|
9/30/2014
|
6/30/2014
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$ 18,522
|
$ 23,558
|
$ 21,016
|
$ 39,375
|
$ 24,970
|
|
|
Investment
Securities
|
210,664
|
205,977
|
198,231
|
195,975
|
219,319
|
|
|
Loans Receivable,
net
|
253,828
|
253,885
|
249,611
|
245,961
|
244,384
|
|
|
|
|
|
|
|
|
|
Other
Assets
|
38,171
|
39,058
|
40,080
|
41,532
|
41,792
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$521,185
|
$522,478
|
$508,938
|
$522,843
|
$530,465
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Municipal
Deposits
|
$103,222
|
$100,628
|
$98,082
|
$110,646
|
$114,270
|
|
|
Other
Deposits
|
329,315
|
331,054
|
322,470
|
323,877
|
325,366
|
|
|
FHLB
Advances
|
13,000
|
13,000
|
15,000
|
15,000
|
15,000
|
|
|
|
|
|
|
|
|
|
Other
Liabilities
|
4,211
|
5,965
|
2,598
|
3,029
|
2,899
|
|
|
Total
Liabilities
|
449,748
|
450,647
|
438,150
|
452,552
|
457,535
|
|
|
Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
71,437
|
71,831
|
70,788
|
70,291
|
72,930
|
|
|
|
|
|
|
|
|
|
Total Liabilities
& Stockholders' Equity
|
$521,185
|
$522,478
|
$508,938
|
$522,843
|
$530,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarized
Consolidated Statements of Income
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
6/30/2015
|
3/31/2015
|
12/31/2014
|
9/30/2014
|
6/30/2014
|
|
|
(for the three
months ended, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Interest
Income
|
$ 3,882
|
$ 3,782
|
$ 3,807
|
$ 3,761
|
$ 3,679
|
|
|
Interest
Expense
|
558
|
557
|
583
|
677
|
648
|
|
|
Net Interest
Income
|
3,324
|
3,225
|
3,224
|
3,084
|
3,031
|
|
|
Provision for
(Recovery of) Loan Losses
|
(104)
|
(289)
|
36
|
9
|
160
|
|
|
Net Interest Income
after Provision
|
|
|
|
|
|
|
|
for Loan Losses
|
3,428
|
3,514
|
3,188
|
3,075
|
2,871
|
|
|
Total Other
Income
|
856
|
683
|
973
|
884
|
747
|
|
|
Total Noninterest
Expense
|
3,467
|
3,355
|
3,412
|
3,406
|
3,244
|
|
|
Income before Tax
Provision
|
817
|
842
|
749
|
553
|
374
|
|
|
Income Tax
Provision
|
122
|
148
|
81
|
74
|
21
|
|
|
Net
Income
|
$
695
|
$
694
|
$
668
|
$
479
|
$
353
|
|
|
Basic and Diluted
Earnings per Share (1)
|
$
0.16
|
$
0.16
|
$
0.15
|
$
0.10
|
$
0.07
|
|
|
Weighted Average
Shares Outstanding (1):
|
|
|
|
|
|
|
|
Basic
|
4,420,506
|
4,428,861
|
4,421,455
|
4,583,593
|
4,774,567
|
|
|
Diluted
|
4,439,931
|
4,428,861
|
4,421,455
|
4,583,593
|
4,774,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
For the three
months ended
|
|
|
6/30/2015
|
3/31/2015
|
12/31/2014
|
9/30/2014
|
6/30/2014
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.53%
|
0.54%
|
0.52%
|
0.36%
|
0.27%
|
|
|
Return on average
equity (1)
|
3.86%
|
3.88%
|
3.78%
|
2.68%
|
1.91%
|
|
|
Interest rate
spread (2)
|
2.72%
|
2.70%
|
2.69%
|
2.51%
|
2.43%
|
|
|
Net interest
margin (3)
|
2.76%
|
2.73%
|
2.72%
|
2.55%
|
2.47%
|
|
|
Noninterest expense
to average assets (1)
|
2.66%
|
2.62%
|
2.65%
|
2.59%
|
2.44%
|
|
|
Efficiency
ratio (4)
|
82.94%
|
85.76%
|
81.30%
|
85.84%
|
85.87%
|
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
|
average interest-bearing
liabilities
|
108.15%
|
106.79%
|
107.41%
|
107.34%
|
107.79%
|
|
|
Average equity to
average assets
|
13.78%
|
13.96%
|
13.74%
|
13.63%
|
13.89%
|
|
|
|
|
|
|
|
|
|
Bank Capital
Ratios:
|
|
|
|
|
|
|
|
Tangible
capital
|
11.47%
|
12.22%
|
12.27%
|
12.14%
|
11.88%
|
|
|
Core
capital
|
11.47%
|
12.22%
|
12.27%
|
12.14%
|
11.88%
|
|
|
Total risk-based
capital
|
23.80%
|
24.85%
|
25.99%
|
26.50%
|
26.89%
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
|
Nonperforming loans
as a percent
|
|
|
|
|
|
|
|
of total
loans
|
2.50%
|
2.86%
|
2.97%
|
3.34%
|
3.97%
|
|
|
Nonperforming assets
as a percent
|
|
|
|
|
|
|
|
of total
assets
|
1.30%
|
1.48%
|
1.63%
|
1.75%
|
1.99%
|
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
|
of total
loans
|
1.98%
|
1.97%
|
1.99%
|
2.20%
|
2.18%
|
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
|
of
nonperforming loans
|
78.95%
|
68.66%
|
67.12%
|
65.92%
|
54.88%
|
|
|
Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
|
outstanding loans during the period (1)
|
(0.22)%
|
(0.20)%
|
0.68%
|
(0.16)%
|
0.28%
|
|
|
|
|
|
|
|
|
|
(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 June 30,
2015:
Net income increased $342,000 to
$695,000 for the quarter ended
June 30, 2015, compared to net income
of $353,000 for the quarter ended
June 30, 2014.
Net interest income increased $293,000 to $3.3
million for the quarter ended June
30, 2015 compared to the same period in the prior
year. This was the result of an increase of $203,000 in interest income and a decrease of
$90,000 in interest expense.
The increase in interest income was the result of an $8.1 million increase in the average balance of
loans, combined with an increase in the average rate earned on
investments from 1.59% for the quarter ended June 30, 2014 to 2.00% for the quarter ended
June 30, 2015, partially offset by a
decrease in the average rate earned on loans from 4.59% for the
quarter ended June 30, 2014 to 4.47%
for the quarter ended June 30, 2015,
as well as a decrease of $6.3 million
in the average balance of investments. The decrease in the
average balance of investments was primarily due to the use of cash
flows from investments to fund loan production. The decrease
in interest expense was primarily the result of a decrease in the
average interest rate paid on deposits from 0.53% for the quarter
ended June 30, 2014 to 0.46% for the
quarter ended June 30, 2015.
Net interest margin increased from 2.47% for the quarter ended
June 30, 2014 to 2.76% for the
quarter ended June 30, 2015.
Asset quality continued to improve. The provision for loan
losses was a net recovery of $104,000
for the quarter ended June 30, 2015,
compared to a $160,000 provision for
loan losses for the same quarter in the prior year. The net
recovery in the provision for loan losses is due to the recovery of
$122,000 on a non-residential loan
partially offset by a provision of $18,000. Nonperforming assets as a
percentage of total assets decreased from 1.99% at June 30, 2014 to 1.30% at June 30, 2015.
Other income increased $109,000,
or 15%, to $856,000 for the quarter
ended June 30, 2015 compared to
$747,000 for the prior year
quarter. The increase is primarily due to a decrease of
$74,000 in loss on the sale of fixed
assets, a $56,000 increase in service
charge income, a $27,000 decrease in
mortgage servicing rights amortization, and a $50,000 increase in gain on the sale of loans,
partially offset by a $122,000
increase in loss on sale of investments. The decrease in loss
on sale of fixed assets was the result of land sold related to the
sale of the Osgood branch in the
prior year period, with no corresponding losses in the current year
period. The increase in service charges is primarily due to
increased customer activity. The increase in gain on sale of
loans is the result of an increase in loan sale activity during the
quarter ended June 30, 2015 as
compared to the prior year quarter. The increase in losses on
sale of investments is due to the sale of lower yielding
mortgage-backed securities in the quarter ended June 30, 2015, with no such sales in the prior
year quarter.
Noninterest expense increased $223,000 to $3.5
million for the quarter ended June
30, 2015 compared to $3.2
million for the prior year quarter. The increase
includes $412,000 in compensation and
employee benefits, partially offset by a $74,000 decrease in occupancy expense and a
$65,000 decrease in data processing
expense. The increase in compensation and employee benefits
is primarily due to an increase in routine annual compensation
increases and expenses related to additional employees hired to
enhance business development efforts in the commercial loan
department. The decrease in occupancy expense is primarily
due to a decrease in computer software licenses and contract fees
resulting from the renegotiation of contracts. The decrease in data
processing expense is due to the absence in the current year period
of data conversion expenses incurred in the prior year period.
For the year ended June 30,
2015:
Net income increased $256,000 to
$2.5 million for the year ended
June 30, 2015, compared to net income
of $2.3 million for the year ended
June 30, 2014.
Net interest income increased $555,000, or 4.5%, to $12.9 million for the year ended June 30, 2015 as compared to $12.3 million for the year ended June 30, 2014. The increase in net interest
income was due to an increase of $274,000 in interest income and a $281,000 decrease in interest expense. The
increase in interest income was primarily the result of an increase
in the average rate earned on investments from 1.53% for the year
ended June 30, 2014 to 1.92% for the
year ended June 30, 2015, partially
offset by a $7.1 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 0.56% for the year ended
June 30, 2014 to 0.49%, for the year
ended June 30, 2015. Net interest
margin increased from 2.55%, for the year ended June 30, 2014 to 2.68% for year ended
June 30, 2015. The decrease in
the balance of investments was primarily due to using cash flows
from investments to fund loan production.
Asset quality continued to improve. The recovery of loan
losses was $348,000 for the year
ended June 30, 2015, compared to a
recovery of loan losses of $132,000
for the prior year. The increase in the recovery for
loan losses was primarily due to recoveries on one 1 -to 4- family
loan and one multi-family loan totaling $492,000 and a provision of $360,000 during the year ended June 30, 2014, compared to the recoveries on two
non-residential loans totaling $423,000 and a provision of $75,000 for the year ended June 30, 2015. Nonperforming assets as a
percentage of total assets decreased from 1.99% at June 30, 2014 to 1.30% at June 30, 2015.
Other income decreased $301,000,
or 8.1%, to $3.4 million for the year
ended June 30, 2015 compared to
$3.7 million for the prior year
period. The decrease is primarily due to a $432,000 increase in loss on the sale of
investments, a $207,000 decrease in
other income, including a $253,000
decline in the fair value of mortgage servicing rights, partially
offset by a $191,000 increase in
service charges and a $165,000
increase in gain on the sale of other real estate owned. The
increase in loss on the sale of investments is due to the sale of
lower yielding mortgage-backed securities in the year ended
June 30, 2015 with no such sales in
the prior year. The increase in service charges is primarily
due to an increase in volume. The increase in gain on the
sale of other real estate owned is related to the sale of two 1-to
4- family and one multi-family property.
Noninterest expense increased $448,000 to $13.6
million for the year ended June 30,
2015 compared to $13.2 million
for the prior year period. An increase of $721,000 in compensation expense was partially
offset by decreases of $95,000 in
other operating expenses, $85,000 in
data processing expenses and a decrease of $71,000 in premises and occupancy expense.
The increase in compensation expense was primarily the result of
stock-based compensation expense of $262,000 in the year ended June 30, 2015 related to the vesting of stock
options and restricted share awards issued in April 2014, compared to a $44,000 corresponding expense in the prior year
period. Additionally, routine annual compensation increases
and employees hired in the fiscal year to enhance the business
development efforts in the commercial loan department resulted in
an increase of $400,000 for the year
ended June 30, 2015.
Total assets were $521.2 million
at June 30, 2015, compared to
$530.5 million at June 30, 2014. A $6.5 million decrease in cash and cash
equivalents and an $8.7 million
decrease in investment securities were partially offset by a
$9.4 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 $449.8
million at June 30, 2015,
compared to $457.5 million at
June 30, 2014. The decrease in
liabilities was primarily the result of a $7.1 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 $71.4
million at June 30, 2015,
compared to $72.9 million at
June 30, 2014. Net income of
$2.5 million for the year ended
June 30, 2015 was partially offset by
amortization of ESOP shares totaling $395,000, amortization of EIP shares totaling
$186,000, stock repurchases totaling
$4.2 million, dividends paid of
$1.1 million and a decrease in
unrealized loss on securities available for sale of $556,000. At June
30, 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-fourth-quarter-and-year-end-results-300125566.html
SOURCE United Community Bancorp