United Community Bancorp Reports Second Quarter Results

           United Community Bancorp Reports Second Quarter Results

PR Newswire

LAWRENCEBURG, Ind., Feb. 4, 2013

LAWRENCEBURG, Ind., Feb. 4, 2013 /PRNewswire/ --United Community Bancorp (the
"Company") (Nasdaq:UCBA), the holding company for United Community Bank (the
"Bank"), today reported net income of $696,000, or $0.09 per diluted share,
for the quarter ended December 31, 2012, compared to net income of $712,000,
or $0.09  per diluted share, for the quarter ended December 31, 2011. Net
income for the six months ended December 31, 2012 was $1.2 million, or $0.15
per diluted share, compared to $1.2 million, or $0.16 per diluted share, for
the six months ended December 31, 2011.



United Community Bancorp
Summarized Statements of Income
(In thousands, except per share data)
                                                      For the six months ended
                                                      12/31/2012   12/31/2011
                                                      (Unaudited)  (Unaudited)
Interest income                                       $8,328       $9,387
Interest expense                                      1,892        2,209
 Net interest income                                 6,436        7,178
Provision for loan losses                             475          1,579
 Net interest income after provision for loan        5,961        5,599
losses
Total other income                                    2,434        2,331
Total noninterest expense                             6,787        6,290
 Income before income taxes                          1,608        1,640
Income tax provision                                  418          452
 Net income                                          $1,190       $1,188
Basic and diluted earnings per share                  $0.15        $0.16
Weighted average shares outstanding                   7,683,150    7,638,321



Summarized Consolidated Statements of Financial Condition
                (Unaudited)  (Unaudited)              (Unaudited) (Unaudited)
(In thousands,  12/31/2012   9/30/2012    6/30/2012   3/31/2012   12/31/2011
as of)
ASSETS
Cash and Cash   $          $  31,271   $         $ 32,375    $  
Equivalents     39,375                   29,079                  16,644
Investment      173,258      161,426      146,389     150,158     126,369
Securities
Loans           266,684      272,076      283,154     284,415     285,709
Receivable, net
Other Assets    37,347       37,380       37,281      36,666      38,095
Total Assets    $  516,664 $ 502,153   $ 495,903  $          $ 
                                                      503,614    466,817
LIABILITIES
Municipal       $  102,806 $  106,920 $          $          $ 
Deposits                                  103,086    110,966    101,832
Other Deposits  322,311      326,139      323,881     322,680     305,611
FHLB Advances   10,333       10,583       10,833      11,083      1,333
Other           3,006        3,214        3,115       3,528       3,265
Liabilities
Total           438,456      446,856      440,915     448,257     412,041
Liabilities
Commitments and 22,889       -            -           -           -
contingencies
Total
Stockholders'   55,319       55,297       54,988      55,357      54,776
Equity
Total
Liabilities &   $  516,664 $  502,153 $          $          $ 
Stockholders'                             495,903    503,614    466,817
Equity
Summarized Consolidated Statements of Income
              (Unaudited)    (Unaudited)  (Unaudited) (Unaudited) (Unaudited)
              12/31/2012     9/30/2012    6/30/2012   3/31/2012   12/31/2011
              (for the three months ended, in thousands, except per share
              data)
Interest      $    4,103 $         $        $        $   
Income                       4,225       4,509      4,290      4,700
Interest      889            1,003        1,054       1,025       1,057
Expense
Net Interest  3,214          3,222        3,455       3,265       3,643
Income
Provision for 225            250          1,750       333         681
Loan Losses
Net Interest
Income after
Provision
 for Loan  2,989          2,972        1,705       2,932       2,962
Losses
Total Other   1,367          1,067        1,758       888         1,205
Income
Total
Noninterest   3,370          3,417        3,090       3,056       3,141
Expense
Income before 986            622          373         764         1,026
Tax Provision
Income Tax    290            128          29          307         314
Provision
Net Income    $         $       $      $      $     
              696            494          344         457         712
Basic and
Diluted       $          $        $       $       $    
Earnings per  0.09          0.06        0.04       0.06       0.09
Share (1)
Weighted
Average
Shares
Outstanding:
Basic and     7,683,150      7,683,150    7,683,150   7,652,150   7,638,321
Diluted
(1) For all periods shown, United Community MHC held 4,655,200 shares of
outstanding common stock. Since its inception, the MHC has waived receipt of
all quarterly dividends, except for the three months ended September 30,
2012. No dividends were paid during the three months ended December 31, 2012.



                  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                  For the three months ended
                  12/31/2012  9/30/2012   6/30/2012   3/31/2012   12/31/2011
Performance
Ratios:
Return on average 0.55%       0.40%       0.27%       0.38%       0.60%
assets (1)
Return on average 5.02%       3.58%       2.48%       3.31%       5.22%
equity (1)
Interest rate     2.70%       2.75%       2.92%       2.87%       3.30%
spread (2)
Net interest      2.75%       2.79%       2.96%       2.91%       3.35%
margin (3)
Noninterest
expense to        2.67%       2.74%       2.46%       2.52%       2.66%
average assets
(1)
Efficiency ratio 73.56%      79.67%      59.27%      73.59%      64.79%
(4)
Average
interest-earning
assets to
 average
interest-bearing  106.17%     105.06%     105.08%     105.08%     105.03%
liabilities
Average equity to 10.98%      11.07%      11.05%      11.37%      11.54%
average assets
Bank Capital
Ratios:
Tangible capital  9.37%       9.18%       9.24%       9.16%       10.12%
Core capital      9.37%       9.18%       9.24%       9.16%       10.12%
Total risk-based  20.36%      19.64%      19.05%      18.82%      18.20%
capital
Asset Quality
Ratios:
Nonperforming
loans as a
percent
 of total loans 5.34%       5.44%       5.62%       6.64%       5.33%
Nonperforming
assets as a
percent
 of total       2.98%       3.15%       3.30%       3.88%       3.46%
assets
Allowance for
loan losses as a
percent
 of total loans 2.10%       2.05%       1.95%       1.91%       1.83%
Allowance for
loan losses as a
percent
 of
nonperforming     39.37%      37.71%      34.64%      28.72%      34.22%
loans
Net charge-offs
to average
outstanding
 loans during   0.29%       0.26%       2.32%       0.14%       2.25%
the period (1)
(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, 2012:

Net income decreased $16,000 to $696,000 for the quarter ended December 31,
2012, compared to net income of $712,000 for the quarter ended December 31,
2011.

Net interest income decreased $429,000, or 11.8%, to $3.2 million for the
quarter ended December 31, 2012 as compared to $3.6 million for the quarter
ended December 31, 2011. The decrease of $597,000 in interest income was
partially offset by a $168,000 decrease in interest expense. The decrease in
interest income was the result of a decrease in the average interest rate
earned on loans from 5.60% to 4.94%, a $16.4 million decrease in the average
balance of loans and a decrease in the average rate earned on investments from
2.16% to 1.81%, partially offset by a $42.2 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 1.01%
to 0.78%, partially offset by a $17.0 million increase in the average balance
of outstanding deposits and a $9.0 million increase in the average balance of
outstanding advances from the Federal Home Loan Bank. Changes in interest
rates are reflective of decreases in overall market rates.

The provision for loan losses was $225,000 for the quarter ended December 31,
2012, compared to $681,000 for the same quarter in the prior year,
representing a decrease of $456,000 or 67.0%. The decrease in the loan loss
provision was primarily due to a decrease in impairment charges in
multi-family real estate loans in the quarter ended December 31, 2012, as
compared to the 2011 quarter.

Other income increased $162,000, or 13.4%, to $1.4 million for the quarter
ended December 31, 2012 from $1.2 million for the quarter ended December 31,
2011. The increase in other income was primarily due to a $154,000 increase in
gain on sale of loans and a $38,000 increase in gain on sale of other real
estate owned, partially offset by a $64,000 decrease in gain on sale of
investments. The increase in gain on sale of loans was the result of an
increase in loan sales to Freddie Mac in the December 31, 2012 quarter
compared to the same quarter in the prior year, primarily due to an increase
in refinancing activity as a result of the continued low interest rate
environment. The increase in gain on sale of other real estate owned was
primarily due to the sale of other real estate owned generating proceeds of
$1.5 million during the quarter ended December 31, 2012 resulting in a gain of
$40,000 compared to $10,000 in proceeds resulting in a gain of $2,000 during
the quarter ended December 31, 2011. The decrease in gain on sale of
investments was the result of fewer sales of mortgage-backed securities and no
sales of other available for sale securities during the current quarter as
compared to the prior year quarter.

Noninterest expense increased $229,000, or 7.3%, from $3.1 million for the
quarter ended December 31, 2011 to $3.4 million for the quarter ended December
31, 2012. The increase was primarily due to increases of $90,000 in
compensation and employee benefits and a $105,000 provision for loss on real
estate owned in the quarter ended December 31, 2012 compared to no such
provision in the prior year quarter. The increase in compensation and
employee benefits expense was primarily due to the addition of employees in
the accounting and collections departments, additional payroll expense
associated with the implementation of a new branch network communication
system, and annual wage increases. The provision for loss on real estate owned
was due to additional write-downs on two commercial REO properties. 

For the six months ended December 31, 2012:

Net income stayed flat at $1.2 million for the six months ended December 31,
2012 and 2011.

Net interest income decreased $742,000, or 10.3%, to $6.4 million for the six
months ended December 31, 2012 as compared to $7.2 million for the six months
ended December 31, 2011. The decrease of $1.1 million in interest income was
partially offset by a $317,000 decrease in interest expense. The decrease in
interest income was the result of a decrease in the average interest rate
earned on loans from 5.54% to 4.96%, a $12.3 million decrease in the average
balance of loans and a decrease in the average rate earned on investments from
2.28% to 1.90%, partially offset by a $32.9 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 1.06%
to 0.84%, partially offset by a $16.0 million increase in the average balance
of outstanding deposits and a $9.0 million increase in the average balance of
outstanding advances from the Federal Home Loan Bank. Changes in interest
rates are reflective of decreases in overall market rates.

The provision for loan losses was $475,000 for the six months ended December
31, 2012, compared to $1.6 million for the same period in the prior year, a
decrease of $1.1 million or 69.9%. The decrease in the loan loss provision was
primarily due to a decrease in impairment charges in multi-family real estate
loans in the six months ended December 31, 2012, as compared to the prior year
six month period.

Other income increased $103,000, or 4.4%, to $2.4 million for the six months
ended December 31, 2012 from $2.3 million for the six months ended December
31, 2011. The increase in other income was primarily due to a $319,000
increase in gain on sale of loans and an $86,000 increase in income from bank
owned life insurance, partially offset by a $300,000 decrease in gain on sale
of investments. The increase in loan sales to Freddie Mac in the December 31,
2012 period when compared to the same period in the prior year is primarily
due to an increase in refinancing activity as a result of the continued low
interest rate environment. The increase in income from bank owned life
insurance was the result of the purchase of additional bank owned life
insurance during the latter part of the fiscal year ended June 30, 2012. The
decrease in gain on sale of investments was the result of fewer sales of
mortgage-backed securities and no sales of other available for sale securities
during the current period as compared to the prior year period.

Noninterest expense increased $497,000, or 7.9%, from $6.3 million for the six
months ended December 31, 2011 to $6.8 million for the six months ended
December 31, 2012. The increase was primarily due to increases of $163,000 in
compensation and employee benefits and $103,000 in data processing expense, as
well as a $105,000 provision for loss on real estate owned in the six months
ended December 31, 2012 compared to no such provision in the prior year six
month period. The increase in compensation and employee benefits expense was
primarily due to the addition of employees in the accounting and collections
departments, additional payroll expense associated with the implementation of
a new branch network communication system and annual wage increases. The
increase in data processing expense was primarily due to the aforementioned
new branch network communication system. The provision for loss on real
estate owned was due to additional write-downs on two commercial REO
properties.

Total assets were $516.7 million at December 31, 2012, compared to $495.9
million at June 30, 2012. Total assets increased $20.8 million, or 4.2%,
primarily as a result of a $10.3 million increase in cash and a $26.9 million
increase in investment securities, partially offset by a $16.5 million
decrease in loans. The increase in cash is primarily due to subscription funds
held in escrow at the Bank at December 31, 2012 in connection with our
previously announced conversion from the mutual holding company form of
organization to the stock holding company form on January 9, 2013. The
increase in our investment securities was the result of purchases of
mortgage-backed securities. The decrease in loans was primarily the result of
payoffs aggregating $8.0 million for performing commercial real estate loans
in addition to transfers to REO totaling $2.3 million during the six month
period ending December 31, 2012.

Total liabilities were $438.5 million at December 31, 2012, compared to $440.9
million at June 30, 2012. Additionally, commitments and contingencies totaled
$22.9 million at December 31, 2012 as a result of subscription funds received
in conjunction with the aforementioned conversion. There was no recorded
balance in commitments and contingencies at June 30, 2012.

Total stockholders' equity was $55.3 million at December 31, 2012, compared to
$55.0 million at June 30, 2012. The increase was primarily the result of net
income of $1.2 million for the six months ended December 31, partially offset
by dividends paid of $812,000 during the six month period. At December 31,
2012, the Bank was considered "well-capitalized" under applicable regulatory
requirements.

United Community Bancorp is the holding 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, 2012 filed with the SEC on September 7, 2012 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.

SOURCE United Community Bancorp

Website: http://www.bankucb.com
Contact: United Community Bancorp, William F. Ritzmann, President and Chief
Executive Officer, +1-812-537-4822
 
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