UCBC Union Community Bancorp (MM)

Union Community Bancorp (the "Company") (NASDAQ:UCBC): Please replace the release dated April 27, 2005, with the following corrected version, which reflects the Company's revised results of operation after making adjustments to reflect subsequently received information about a pre-tax loss on investments in two limited partnerships during the quarter, the net effect of which loss, after decreasing income and income tax expense, was a $69,000 decline in net income. The corrected release reads in its entirety as follows: UNION COMMUNITY BANCORP RELEASES EARNINGS Union Community Bancorp (the "Company") (NASDAQ:"UCBC"), the holding company of Union Federal Savings and Loan Association (the "Association"), announced earnings for the three months ended March 31, 2005. For the three months ended March 31, 2005, the Company had net income of $289,000 compared to $444,000 the first quarter of 2004. Basic and diluted earnings per share were $0.16 for the three months ended March 31, 2005 compared to $0.23 for the 2004 period. The decrease in net income for the period was primarily attributable to a decrease in net interest income and non-interest income and an increase in non-interest expense. The net yield on average interest-earning assets decreased from 3.20% for the 2004 three month period to 3.11% for the comparable 2005 period. Non-interest income decreased $58,000 and the increase in non-interest expense was $92,000. From December 31, 2004 to March 31, 2005, total assets increased $4.4 million to $261.3 million and net loans increased $5.9 million to $222.9 million. During the same time frame, deposits decreased by $827,000 to $187.6 million. Shareholders' equity increased $219,000 to $33.7 million at March 31, 2005. The Company and Association are headquartered in Crawfordsville, Indiana with two branch offices in Crawfordsville and branch offices in Covington, Williamsport and Lafayette, Indiana. The statements contained in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties. A number of factors could cause results to differ materially from the objectives and estimates expressed in such forward-looking statements. These factors include, but are not limited to, changes in the financial condition of issuers of the Company's investments and borrowers, changes in economic conditions in the company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area, changes in the position of banking regulators on the adequacy of our allowance for loan losses, and competition, all or some of which could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These factors should be considered in evaluating any forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements. -0- *T SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY (Unaudited) (Dollars in thousands, except share data) Balance Sheet Data: March 31, December 31, 2005 2004 ----------- ------------- Assets Cash $804 $706 Interest-bearing demand deposits 11,572 12,782 ---------- ------------ Cash and cash equivalents 12,376 13,488 Interest-bearing deposits 116 116 Investment securities available for sale 2,995 3,037 Investment securities held to maturity 131 152 Loans, net 222,914 217,056 Premises and equipment 4,111 4,180 Federal Home Loan Bank stock 3,760 3,721 Investment in limited partnership 2,023 2,184 Foreclosed assets and real estate held for development, net 1,733 1,623 Goodwill 2,393 2,393 Cash value of life insurance 6,971 6,900 Other Assets 1,791 2,049 ---------- ------------ Total assets $261,314 $256,899 ========== ============ Liabilities Deposits $187,634 $188,461 Federal Home Loan Bank advances 37,881 32,908 Other liabilities 2,143 2,093 ---------- ------------ Total liabilities 227,658 223,462 Shareholders' equity 33,656 33,437 ---------- ------------ Total liabilities and shareholders' equity $261,314 $256,899 ========== ============ Book value per common share $17.36 $17.34 Shares outstanding 1,939,000 1,928,000 Average equity to average assets 12.99 % 13.26 % Allowance for loan losses to total loans 0.43 % 0.42 % Three Months Ended March 31, 2005 2004 ----------- ------------- Operating Data: Total interest and dividend income $3,489 $3,554 Total interest expense 1,622 1,598 ---------- ------------ Net interest income 1,867 1,956 Provision for loan losses 60 110 ---------- ------------ Net interest income after provision for loan losses 1,807 1,846 ---------- ------------ Other income: Service charges of deposit accounts 67 38 Equity in losses of limited partnerships (114) - Other 148 121 ---------- ------------ Total other income 101 159 ---------- ------------ Other expenses: Salaries and employee benefits 840 746 Net occupancy and equipment expenses 171 171 Legal and professional fees 72 96 Data processing 105 101 Other 292 274 ---------- ------------ Total other expenses 1,480 1,388 ---------- ------------ Income before income taxes 428 617 Income taxes 139 173 ---------- ------------ Net income $289 $444 ========== ============ Other Data: Return on average assets 0.45 % 0.68 % Return on average equity 3.44 % 4.97 % Basic earnings per share $0.16 $0.23 Diluted earnings per share $0.16 $0.23 Cash dividends per common share $0.15 $0.15 *T