LAWRENCEBURG, Ind.,
May 4, 2016 /PRNewswire/ -- United
Community Bancorp (the "Company") (Nasdaq: UCBA), the parent
company of United Community Bank (the "Bank"), today reported net
income of $941,000, or $0.23 per diluted share, for the quarter ended
March 31, 2016. Net income
increased by $247,000, or 35.6%, as
compared to the quarter ended March
31, 2015. Earnings per diluted share for the quarter
ended March 31, 2016 increased by
43.8% when compared to the quarter ended March 31, 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.
The Company also reported net income of $2.6 million for the nine months ended
March 31, 2016, which represented an
increase of $777,000, or 42.2% over
the nine months ended March 31,
2015. Earnings per diluted share for the nine months ended
March 31, 2016 increased by 51.2%
when compared to the same period in the prior year primarily due to
a decrease in the number of shares outstanding and an increase
earnings.
|
United Community
Bancorp
|
|
Summarized Statements
of Income
|
|
(In thousands, except
per share data)
|
|
|
For the nine
months ended
|
|
|
3/31/2016
|
|
03/31/2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Interest
income
|
|
$11,732
|
|
$11,350
|
|
Interest
expense
|
|
1,657
|
|
1,817
|
|
Net interest
income
|
|
10,075
|
|
9,533
|
|
|
|
|
|
|
Provision for loan
losses
|
|
141
|
|
(244)
|
|
Net interest
income after provision for loan losses
|
|
9,934
|
|
9,777
|
|
|
|
|
|
|
Total noninterest
income
|
|
3,541
|
|
2,540
|
|
Total noninterest
expense
|
|
10,383
|
|
10,173
|
|
Income before
income taxes
|
|
3,092
|
|
2,144
|
|
|
|
|
|
|
Income tax
provision
|
|
474
|
|
303
|
|
Net
income
|
|
$2,618
|
|
$1,841
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$0.63
|
|
$0.41
|
|
Diluted earnings per
share
|
|
$0.62
|
|
$0.41
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
|
4,173,027
|
|
4,478,328
|
|
Diluted
|
|
4,205,170
|
|
4,478,328
|
|
Summarized
Consolidated Statements of Financial Condition
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
|
(In thousands,
except for per share data)
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$ 23,246
|
$ 23,456
|
$ 21,997
|
$ 18,522
|
$ 23,558
|
|
Investment
Securities
|
188,929
|
186,663
|
196,399
|
210,664
|
205,977
|
|
Loans Receivable,
net
|
269,480
|
263,327
|
263,540
|
253,828
|
253,885
|
|
Other
Assets
|
36,361
|
36,734
|
37,958
|
38,171
|
39,058
|
|
Total
Assets
|
$ 518,016
|
$ 510,180
|
$ 519,894
|
$ 521,185
|
$ 522,478
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Municipal
Deposits
|
$ 95,089
|
$ 95,192
|
$ 102,348
|
$ 103,222
|
$ 100,628
|
|
Other
Deposits
|
336,895
|
331,894
|
328,848
|
329,315
|
331,054
|
|
FHLB
Advances
|
13,934
|
13,000
|
13,000
|
13,000
|
13,000
|
|
Other
Liabilities
|
3,310
|
2,790
|
4,325
|
4,211
|
5,965
|
|
Total
Liabilities
|
449,228
|
442,876
|
448,521
|
449,748
|
450,647
|
|
Commitments and
contingencies
|
-
|
-
|
-
|
-
|
-
|
|
Total Stockholders'
Equity
|
68,788
|
67,304
|
71,373
|
71,437
|
71,831
|
|
Total Liabilities
& Stockholders' Equity
|
$ 518,016
|
$ 510,180
|
$ 519,894
|
$ 521,185
|
$ 522,478
|
|
Outstanding
Shares
|
4,201,326
|
4,201,326
|
4,530,482
|
4,610,839
|
4,634,608
|
|
Tangible Book Value
per share
|
$ 15.69
|
15.33
|
15.11
|
14.85
|
14.86
|
|
|
|
|
|
|
|
Summarized
Consolidated Statements of Income
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
|
(for the three
months ended, in thousands, except per share data)
|
|
|
|
|
|
|
|
Interest
Income
|
$ 3,891
|
$ 3,883
|
$ 3,958
|
$ 3,882
|
$ 3,782
|
|
Interest
Expense
|
530
|
526
|
601
|
558
|
557
|
|
Net Interest
Income
|
3,361
|
3,357
|
3,357
|
3,324
|
3,225
|
|
Provision for
(Recovery of) Loan Losses
|
52
|
45
|
44
|
(104)
|
(289)
|
|
Net Interest Income
after Provision
|
|
|
|
|
|
|
for (Recovery of) Loan Losses
|
3,309
|
3,312
|
3,313
|
3,428
|
3,514
|
|
|
|
|
|
|
|
Total Noninterest
Income
|
1,121
|
1,353
|
1,067
|
856
|
683
|
|
Total Noninterest
Expense
|
3,230
|
3,528
|
3,625
|
3,467
|
3,355
|
|
Income before Tax
Provision
|
1,200
|
1,137
|
755
|
817
|
842
|
|
Income Tax
Provision
|
259
|
159
|
56
|
122
|
148
|
|
Net
Income
|
$
941
|
$
978
|
$
699
|
$
695
|
$
694
|
|
|
|
|
|
|
|
Basic Earnings per
Share
|
$
0.23
|
$
0.24
|
$
0.16
|
$
0.16
|
$
0.16
|
|
Diluted Earnings per
Share
|
$
0.23
|
$
0.24
|
$
0.16
|
$
0.16
|
$
0.16
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
4,027,432
|
4,120,938
|
4,368,527
|
4,420,506
|
4,428,861
|
|
Diluted
|
4,057,600
|
4,156,239
|
4,406,759
|
4,439,931
|
4,428,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
For the three
months ended
|
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.73%
|
0.76%
|
0.54%
|
0.53%
|
0.54%
|
|
Return on average
equity (1)
|
5.51%
|
6.07%
|
3.91%
|
3.86%
|
3.88%
|
|
Interest rate
spread (2)
|
2.79%
|
2.74%
|
2.78%
|
2.72%
|
2.70%
|
|
Net interest
margin (3)
|
2.82%
|
2.81%
|
2.81%
|
2.76%
|
2.73%
|
|
Noninterest expense
to average assets (1)
|
2.48%
|
2.74%
|
2.79%
|
2.66%
|
2.62%
|
|
Efficiency
ratio (4)
|
70.82%
|
74.90%
|
82.00%
|
82.94%
|
85.76%
|
|
Average
interest-earning assets to
|
|
|
|
|
|
|
average interest-bearing
liabilities
|
107.88%
|
107.83%
|
107.49%
|
108.15%
|
106.79%
|
|
Average equity to
average assets
|
13.32%
|
12.52%
|
13.76%
|
13.78%
|
13.96%
|
|
|
|
|
|
|
|
Bank Capital
Ratios:
|
|
|
|
|
|
|
Tangible
capital
|
11.69%
|
11.40%
|
11.68%
|
11.47%
|
12.22%
|
|
Core
capital
|
11.69%
|
11.40%
|
11.68%
|
11.47%
|
12.22%
|
|
Total risk-based
capital
|
22.91%
|
22.68%
|
23.36%
|
23.80%
|
24.85%
|
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
|
|
|
|
|
|
Nonperforming loans
as a percent
|
|
|
|
|
|
|
of total
loans
|
1.31%
|
1.94%
|
2.23%
|
2.50%
|
2.86%
|
|
Nonperforming assets
as a percent
|
|
|
|
|
|
|
of total
assets
|
0.75%
|
1.08%
|
1.21%
|
1.30%
|
1.48%
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
of total
loans
|
1.82%
|
1.77%
|
1.91%
|
1.98%
|
1.97%
|
|
Allowance for loan
losses as a percent
|
|
|
|
|
|
|
of
nonperforming loans
|
138.71%
|
91.25%
|
85.56%
|
78.95%
|
68.66%
|
|
Net charge-offs
(recoveries) to average
|
|
|
|
|
|
|
outstanding loans during the period (1)
|
(0.26)%
|
0.61%
|
0.03%
|
(0.22)%
|
(0.20)%
|
|
|
(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, 2016:
Net income totaled $941,000 for
the quarter ended March 31, 2016,
which represented an increase of $247,000, or 35.6%, when compared to the quarter
ended March 31, 2015. 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 March 31, 2016, which
represented an increase of $136,000,
or 4.2%, when compared to the quarter ended March 31, 2015. 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 $109,000 due to a $13.7 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 2.01% in the
prior year quarter, partially offset by a decrease in the average
rate earned on loans to 4.34% in the current year quarter from
4.43% in the prior year quarter, and a $10.8
million decrease in the average balance of investments.
Interest expense decreased $27,000
primarily due to a decrease in the average rate paid on deposits
from 0.46% in the prior year quarter to 0.44% in the current year
quarter. The increase in loan balances is primarily the result of
our continued controlled growth strategies in commercial lending.
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 March 31, 2016 as the Bank has
successfully continued to improve asset quality and reduce
nonperforming assets. Nonperforming assets as a percentage of
total assets decreased from 1.48% at March
31, 2015 to 0.75% at March 31,
2016, and nonperforming loans as a percentage of total loans
decreased from 2.86% at March 31,
2015 to 1.31% at March 31,
2016 primarily due to the repayment of $2.0 million of nonperforming loans during the
quarter ended March 31, 2016.
The provision for loan losses was $52,000 for the quarter ended March 31, 2016, which represented an increase of
$341,000 compared to the quarter
ended March 31, 2015, which included
a recovery of $289,000.
Noninterest income totaled $1.1
million for the quarter ended March
31, 2016, which represented an increase of $438,000, or 64.1%, when compared to the quarter
ended March 31, 2015. The
increase was primarily due to a $76,000 increase in service charge income, a
$22,000 increase in profit on the
sale of mortgage loans, and a $64,000
gain on the sale of investments as compared to a $257,000 loss on the sale of investments in the
prior year quarter.
Noninterest expense totaled $3.2
million for the quarter ended March
31, 2016, which represented a decrease of $125,000, or 3.7%, when compared to the quarter
ended March 31, 2015. The
decrease was primarily due to a decrease in compensation expense of
$70,000, and an $80,000 decrease in other operating expenses,
partially offset by a $55,000
increase in data processing expense related to a onetime charge of
$50,000 resulting from a change in
vendors. The decrease in other operating expenses is due primarily
to a decrease in OREO expenses of $92,000 as compared to the quarter ended
March 31, 2015.
For the nine months ended March 31,
2016:
Net income totaled $2.6 million
for the nine months ended March 31,
2016, which represented an increase of $777,000, or 42.2%, when compared to the nine
months ended March 31, 2015.
The improvement in net income is primarily the result of
improved net interest income and an increase in noninterest income
related to the receipt of a life insurance death benefit from the
passing of two directors. Net interest income totaled
$10.1 million, which represented an
increase of $542,000, or 5.7%, when
compared to the nine months ended March
31, 2015. The growth in the Company's core business
resulted in an increase in interest income and a decrease in
interest expense. Interest income increased by $382,000 primarily due to a $13.9 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 nine months ended
March 31, 2016 compared to 1.89% for
the prior year period, partially offset by a decrease in the
average rate earned on loans to 4.40% for the nine months ended
March 31, 2016 from 4.56% for the
prior year period and a decrease in the average balance of
investments to $190.9 million for the
nine months ended March 31, 2016
compared to $200.4 million for the
prior year period. Interest expense decreased by $160,000, primarily as a result of a decrease in
the average interest rate paid on deposits to 0.46% for the nine
months ended March 31, 2016 from
0.51% 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 $141,000 for the nine months ended March 31, 2016, which represented an increase of
$385,000 compared to the nine months
ended March 31, 2015 which included a
recovery of $244,000.
Nonperforming assets as a percentage of total assets
decreased from 1.30% at June 30, 2015
to 0.75% 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 1.31% at
March 31, 2016 primarily due to the
repayment of $2.2 million of
nonperforming loans during the nine months ended March 31, 2016.
Noninterest income totaled $3.5
million for the nine months ended March 31, 2016, which represented an increase of
$1.0 million, or 39.4%, compared to
the prior year period. The increase was primarily due to a
$253,000 increase in income from Bank
Owned Life Insurance due to the receipt of death benefits from the
passing of two directors (one previously retired) during the
period, a $188,000 increase in
service charges on deposit accounts, a $118,000 increase on gain on sale of mortgage
loans, and a $434,000 increase on
gain on sale of investments.
Noninterest expense totaled $10.4
million for the nine months ended March 31, 2016, which represented an increase of
$210,000, or 2.1%, compared to the
nine months ended March 31, 2015. The
increase in noninterest expense was primarily the result of an
increase of $482,000 in compensation
expense, partially offset by a decrease in premises and occupancy
expense of $98,000, a decrease in
deposit insurance of $41,000, a
decrease in advertising expense of $27,000, a decrease of $46,000 in data processing expenses, a decrease
of $22,000 in professional fees and a
decrease of $38,000 in other
operating expenses. The increase in compensation expense is
primarily due to salary increases provided to employees in the
normal course of business. The commercial lending department
has been expanded to enable the Bank to execute its controlled
growth strategy to prudently increase commercial 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 $518.0 million
at March 31, 2016, compared to
$521.2 million at June 30, 2015. A $21.7 million decrease in investment securities
was partially offset by a $4.7
million increase in cash and cash equivalents and a
$15.5 million increase in loans. The
investment balances decreased partially due to normal amortization
and maturities during the period. There were also sales of
investments totaling $5.0 million
during the period. 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 $520,000 from $449.7
million at June 30, 2015 to
$449.2 million at March 31, 2016 primarily due to a $553,000 decrease in deposits during the current
year period and a $901,000 decrease
in other liabilities, partially offset by an increase in FHLB
advances of $934,000.
Stockholders' equity totaled $68.8
million as of March 31, 2016,
which represented a decrease of $2.7
million when compared to June
30, 2015. Net income of $2.6
million for the nine months ended March 31, 2016, and a decrease in the unrealized
loss on available-for-sale securities of $960,000 were offset by stock repurchases
totaling $6.1 million and dividends
paid totaling $729,000. There
were 4,201,326 and 4,634,608 outstanding shares of common stock at
March 31, 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-third-quarter-results-300263142.html
SOURCE United Community Bancorp