LAWRENCEBURG, Ind.,
Feb. 4, 2016 /PRNewswire/
-- United Community Bancorp (the "Company") (Nasdaq:
UCBA), the parent company of United Community Bank (the "Bank"),
today reported net income of $978,000, or $0.24
per diluted share, for the quarter ended December 31, 2015. Net income increased by
$310,000, or 46.4%, as compared to
the quarter ended December 31,
2014. Earnings per diluted share for the quarter ended
December 31, 2015 increased by 60.0%
when compared to the quarter ended December
31, 2014 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.
The Company also reported net income of $1.7 million for the six months ended
December 31, 2015, which represented
an increase of $530,000, or 46.2%
over the six months ended December
31, 2014. Earnings per diluted share for the six
months ended December 31, 2015
increased by 60.0% when compared to the same period in the prior
year 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
of 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)
|
|
|
For the six months
ended
|
|
|
12/31/2015
|
|
12/31/2014
|
|
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(Unaudited)
|
|
(Unaudited)
|
|
Interest
income
|
|
$7,841
|
|
$7,568
|
|
Interest
expense
|
|
1,127
|
|
1,260
|
|
Net interest
income
|
|
6,714
|
|
6,308
|
|
|
|
|
|
|
Provision for loan
losses
|
|
89
|
|
45
|
|
Net interest
income after provision for loan losses
|
|
6,625
|
|
6,263
|
|
|
|
|
|
|
Total noninterest
income
|
|
2,420
|
|
1,857
|
|
Total noninterest
expense
|
|
7,153
|
|
6,818
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|
Income before
income taxes
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1,892
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|
1,302
|
|
|
|
|
|
|
Income tax
provision
|
|
215
|
|
155
|
|
Net
income
|
|
$1,677
|
|
$1,147
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$0.40
|
|
$0.25
|
|
Diluted earnings per
share
|
|
$0.39
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|
$0.25
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
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4,245,039
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4,502,524
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|
Diluted
|
|
4,275,591
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|
4,502,524
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|
Summarized Consolidated
Statements of Financial Condition
|
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
(In thousands, except
for per share data)
|
12/31/2015
|
9/30/2015
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6/30/2015
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3/31/2015
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12/31/2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
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Cash and Cash
Equivalents
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$ 23,456
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$ 21,997
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$ 18,522
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$ 23,558
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$ 21,016
|
|
Investment
Securities
|
186,663
|
196,399
|
210,664
|
205,977
|
198,231
|
|
Loans Receivable,
net
|
263,327
|
263,540
|
253,828
|
253,885
|
249,611
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|
Other
Assets
|
36,734
|
37,958
|
38,171
|
39,058
|
40,080
|
|
Total
Assets
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$ 510,180
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$ 519,894
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$ 521,185
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$ 522,478
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$ 508,938
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|
|
|
|
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LIABILITIES
|
|
|
|
|
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Municipal
Deposits
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$ 95,192
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$ 102,348
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$ 103,222
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$ 100,628
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$ 98,082
|
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Other
Deposits
|
331,894
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328,848
|
329,315
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331,054
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322,470
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FHLB
Advances
|
13,000
|
13,000
|
13,000
|
13,000
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15,000
|
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Other
Liabilities
|
2,790
|
4,325
|
4,211
|
5,965
|
2,598
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Total
Liabilities
|
442,876
|
448,521
|
449,748
|
450,647
|
438,150
|
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Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
|
|
Total Stockholders'
Equity
|
67,304
|
71,373
|
71,437
|
71,831
|
70,788
|
|
Total Liabilities &
Stockholders' Equity
|
$ 510,180
|
$ 519,894
|
$ 521,185
|
$ 522,478
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$ 508,938
|
|
Outstanding
Shares
|
4,201,326
|
4,530,482
|
4,610,839
|
4,634,608
|
4,634,608
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|
Tangible Book Value per
share
|
$ 15.33
|
15.11
|
14.85
|
14.86
|
14.62
|
|
|
|
|
|
|
|
Summarized Consolidated
Statements of Income
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
12/31/2014
|
|
(for the three
months ended, in thousands, except per share data)
|
|
|
|
|
|
|
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Interest
Income
|
$ 3,883
|
$ 3,958
|
$ 3,882
|
$ 3,782
|
$ 3,807
|
|
Interest
Expense
|
526
|
601
|
558
|
557
|
583
|
|
Net Interest
Income
|
3,357
|
3,357
|
3,324
|
3,225
|
3,224
|
|
Provision for (Recovery of)
Loan Losses
|
45
|
44
|
(104)
|
(289)
|
36
|
|
Net Interest Income after
Provision
|
|
|
|
|
|
|
for (Recovery
of) Loan Losses
|
3,312
|
3,313
|
3,428
|
3,514
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3,188
|
|
|
|
|
|
|
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Total Noninterest
Income
|
1,353
|
1,067
|
856
|
683
|
973
|
|
Total Noninterest
Expense
|
3,528
|
3,625
|
3,467
|
3,355
|
3,412
|
|
Income before Tax
Provision
|
1,137
|
755
|
817
|
842
|
749
|
|
Income Tax
Provision
|
159
|
56
|
122
|
148
|
81
|
|
Net
Income
|
$ 978
|
$ 699
|
$ 695
|
$ 694
|
$ 668
|
|
|
|
|
|
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Basic Earnings per
Share
|
$ 0.24
|
$ 0.16
|
$ 0.16
|
$ 0.16
|
$ 0.15
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Diluted Earnings per
Share
|
$ 0.24
|
$ 0.16
|
$ 0.16
|
$ 0.16
|
$ 0.15
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding:
|
|
|
|
|
|
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Basic
|
4,120,938
|
4,368,527
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4,420,506
|
4,428,861
|
4,421,455
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|
Diluted
|
4,156,239
|
4,406,759
|
4,439,931
|
4,428,861
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4,421,455
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
For the three
months ended
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|
12/31/2015
|
9/30/2015
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6/30/2015
|
3/31/2015
|
12/31/2014
|
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Performance
Ratios:
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|
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|
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Return on average assets
(1)
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0.76%
|
0.54%
|
0.53%
|
0.54%
|
0.52%
|
|
Return on average equity
(1)
|
6.07%
|
3.91%
|
3.86%
|
3.88%
|
3.78%
|
|
Interest rate spread
(2)
|
2.74%
|
2.78%
|
2.72%
|
2.70%
|
2.69%
|
|
Net interest margin
(3)
|
2.81%
|
2.81%
|
2.76%
|
2.73%
|
2.72%
|
|
Noninterest expense to
average assets (1)
|
2.74%
|
2.79%
|
2.66%
|
2.62%
|
2.65%
|
|
Efficiency ratio
(4)
|
74.90%
|
82.00%
|
82.94%
|
85.76%
|
81.30%
|
|
Average interest-earning
assets to
|
|
|
|
|
|
|
average
interest-bearing liabilities
|
107.83%
|
107.49%
|
108.15%
|
106.79%
|
107.41%
|
|
Average equity to average
assets
|
12.52%
|
13.76%
|
13.78%
|
13.96%
|
13.74%
|
|
|
|
|
|
|
|
Bank Capital
Ratios:
|
|
|
|
|
|
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Tangible
capital
|
11.40%
|
11.68%
|
11.47%
|
12.22%
|
12.27%
|
|
Core
capital
|
11.40%
|
11.68%
|
11.47%
|
12.22%
|
12.27%
|
|
Total risk-based
capital
|
22.68%
|
23.36%
|
23.80%
|
24.85%
|
25.99%
|
|
|
|
|
|
|
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Asset Quality
Ratios:
|
|
|
|
|
|
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Nonperforming loans as a
percent
|
|
|
|
|
|
|
of total
loans
|
1.94%
|
2.23%
|
2.50%
|
2.86%
|
2.97%
|
|
Nonperforming assets as a
percent
|
|
|
|
|
|
|
of total
assets
|
1.08%
|
1.21%
|
1.30%
|
1.48%
|
1.63%
|
|
Allowance for loan losses
as a percent
|
|
|
|
|
|
|
of total
loans
|
1.77%
|
1.91%
|
1.98%
|
1.97%
|
1.99%
|
|
Allowance for loan losses
as a percent
|
|
|
|
|
|
|
of
nonperforming loans
|
91.25%
|
85.56%
|
78.95%
|
68.66%
|
67.12%
|
|
Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
outstanding
loans during the period (1)
|
0.61%
|
0.03%
|
(0.22)%
|
(0.20)%
|
0.68%
|
|
|
(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 December
31, 2015:
Net income totaled $978,000 for
the quarter ended December 31, 2015,
which represented an increase of $310,000, or 46.4% when compared to the quarter
ended December 31, 2014.
The improvement in net income was primarily the result of
improved net interest income and an increase in non-interest
income. Net interest income totaled $3.4 million for the quarter ended December 31, 2015, which represented an increase
of $133,000, or 4.1% when compared to
the quarter ended December 31, 2014.
The growth in the Company's core business was the result of an
increase in interest income as well as a decrease in interest
expense. Interest income increased by $76,000 due to a $15.1
million increase in the average balance of loans and an
increase in the average rate earned on investment securities to
2.15% in the current year quarter from 1.91% in the prior year
quarter, partially offset by a decrease in the average rate earned
on loans to 4.38% in the current year quarter from 4.60% in the
prior year quarter, and a $13.7
million decrease in the average balance of investments.
Interest expense decreased $57,000
primarily due to a decrease in the average rate paid on deposits
from 0.49% in the prior year quarter to 0.43% in the current year
quarter, partially offset by a $4.1
million increase in the average balance of deposits when
compared to the prior year quarter. The increase in
loan balances is primarily the result of our continued controlled
growth strategies in mortgage and commercial lending including the
hiring of several commercial lenders in the last year. 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.
Asset quality continued to improve over the three-month period
ended December 31, 2015 as the Bank
continues to focus on improving asset quality and reducing
nonperforming assets. Nonperforming assets as a percentage of
total assets decreased from 1.21% at September 30, 2015 to 1.08% at December 31, 2015, and nonperforming loans as a
percentage of total loans decreased from 2.23% at September 30, 2015 to 1.94% at December 31, 2015. The provision for loan
losses was $45,000 for the quarter
ended December 31, 2015, which
represented an increase of $9,000
compared to the quarter ended December
31, 2014.
Noninterest income totaled $1.4
million for the quarter ended December 31, 2015, which represented an increase
of $380,000, or 39.1% when compared
to the quarter ended December 31,
2014. The increase was primarily due to a $210,000 increase in income from Bank Owned Life
Insurance, which was received as a result of the death benefit for
a director. The increase was also due to a $40,000 increase in service charge income on
deposit accounts, a $33,000 increase
in profit on the sale of mortgage loans, and a $36,000 increase in the fair value of mortgage
servicing rights, as compared to a $44,000 decrease in the fair value of mortgage
servicing rights in the prior year quarter.
Noninterest expense totaled $3.5
million for the quarter ended December 31, 2015, which represented an increase
of $116,000, or 3.4% when compared to
the quarter ended December 31, 2014.
The increase was primarily due to an increase in compensation
expense of $208,000. This
increase was partially offset by a $20,000 decrease in premises and occupancy
expense and an $81,000 decrease in
data processing expense. The increase in compensation expense is
primarily due to salary increases provided to employees in the
normal course of business, and an increase in the number of
commercial lenders in the last year. The commercial lending
department has been expanded to enable the Bank to execute its
controlled growth strategy to prudently increase commercial and
real estate lending.
For the six months ended December
31, 2015:
Net income totaled $1.7 million
for the six months ended December 31,
2015, which represented an increase of $530,000, or 46.2%, when compared to the six
months ended December 31, 2014.
The improvement in net income is primarily the result of
improved net interest income and an increase in non-interest income
related to the receipt of a death benefit from the passing of two
directors. Net interest income totaled $6.7 million, which represented an increase of
$406,000, or 6.4%, when compared to
the six months ended December 31,
2014. The growth in the Company's core business was due to an
increase in interest income and a decrease in interest
expense. Interest income increased by $273,000 primarily due to a $14.0 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 six months ended
December 31, 2015 compared to 1.82%
for the prior year period, partially offset by a decrease in the
average rate earned on loans to 4.43% for the six months ended
December 31, 2015 from 4.62% for the
prior year period and a decrease in the average balance of
investments to $193.0 million for the
six months ended December 31, 2015
compared to $202.2 million for the
prior year period. Interest expense decreased by $133,000, primarily as a result of a decrease in
the average interest rate paid on deposits to 0.47% for the six
months ended December 31, 2015 from
0.53% for the prior year period. Changes in interest rates
are primarily due to higher rate certificates of deposit
maturing.
The provision for loan losses was $89,000 for the six months ended December 31, 2015, which represented an increase
of $44,000 compared to the six months
ended December 31, 2014.
Nonperforming assets as a percentage of total assets
decreased from 1.30% at June 30, 2015
to 1.08% 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 1.94% at
December 31, 2015.
Noninterest income totaled $2.4
million for the six months ended December 31, 2015, which represented an increase
of $563,000, or 30.3% compared to the
prior year period. The increase was primarily due to a $265,000 increase in income from Bank Owned Life
Insurance. The increase was due to the receipt of death
benefits from the passing of two directors (one previously retired)
during the period. The increase in non-interest income is
also due to a $112,000 increase in
service charges on deposit accounts, a $96,000 increase on gain on sale of mortgage
loans, a $113,000 increase on gain on
sale of investments, and a $3,000
decrease in the fair value of mortgage servicing rights , as
compared to a larger $107,000
decrease in the fair value of mortgage servicing rights in the
prior year period.
Noninterest expense totaled $7.2
million for the six months ended December 31, 2015, which represented an increase
of $335,000, or 4.9%, compared to six
months ended December 31, 2014. The
increase in noninterest expense was primarily the result of an
increase of $552,000 in compensation
expense, partially offset by a decrease in premises and occupancy
expense of $97,000, a decrease in
deposit insurance of $20,000, a
decrease in advertising expense of $27,000, and a decrease of $101,000 in data processing expenses. The
increase in compensation expense is primarily due to salary
increases provided to employees in the normal course of business
and an increase in the number of commercial lenders in the last
year. The commercial lending department has been expanded to
enable the Bank to execute its controlled growth strategy to
prudently increase commercial and real estate lending. The
decrease in data processing expense is primarily due to
nonrecurring items in the prior period with no corresponding
expense in the current period.
Statement of Financial Condition:
Total assets were $510.2 million
at December 31, 2015, compared to
$521.2 million at June 30, 2015. A $24.0 million decrease in investment securities
was partially offset by a $4.9
million increase in cash and cash equivalents and a
$9.5 million increase in loans. The
investment balances decreased partially due to normal amortization
and maturities during the period. There were also a sales of
$26.4 million during the period,
which generated cash proceeds of $8.6
million. The proceeds from the sales were used 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 decreased $6.8
million from $449.7 million at
June 30, 2015 to $442.9 million at December
31, 2015 primarily due to a $5.5
million decrease in deposits during the current year period
and a $1.4 million decrease in other
liabilities.
Stockholders' equity totaled $67.3
million as of December 31,
2015, which represented a decrease of $4.1 million when compared to June 30, 2015. Net income of $1.7 million for the six months ended
December 31, 2015, and a decrease in
the unrealized loss on available-for-sale securities of
$336,000 were offset by stock
repurchases totaling $6.1 million and
dividends paid totaling $482,000. There were 4,201,326 and
4,634,608 outstanding shares of common stock at December 31, 2015 and 2014, 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-second-quarter-results-300215852.html
SOURCE United Community Bancorp