United Community Bancorp Reports Third Quarter Results

            United Community Bancorp Reports Third Quarter Results

PR Newswire

LAWRENCEBURG, Ind., May 6, 2013

LAWRENCEBURG, Ind., May 6, 2013 /PRNewswire/ --United Community Bancorp (the
"Company") (Nasdaq:UCBA), the parent company of United Community Bank (the
"Bank"), today reported net income of $407,000, or $0.08 per diluted share,
for the quarter ended March 31, 2013, compared to net income of $457,000, or
$0.09  per diluted share, for the quarter ended March 31, 2012. Net income for
the nine months ended March 31, 2013 was $1.6 million, or $0.32 per diluted
share, compared to $1.6 million, or $0.33 per diluted share, for the nine
months ended March 31, 2012.



United Community Bancorp
Summarized Statements of Income
(In thousands, except per share data)
                                                     For the nine months ended
                                                     3/31/2013     3/31/2012
                                                     (Unaudited)   (Unaudited)
Interest income                                      $12,175       $13,677
Interest expense                                     2,639         3,234
 Net interest income                                9,536         10,443
Provision for loan losses                            585           1,912
 Net interest income after provision for loan       8,951         8,531
losses
Total other income                                   3,383         3,219
Total noninterest expense                            10,214        9,346
 Income before income taxes                         2,120         2,404
Income tax provision                                 523           759
 Net income                                         $1,597        $1,645
Basic and diluted earnings per share^(1)             $0.32         $0.33
Weighted average shares outstanding^(1)              4,998,364     5,023,676

(1)^Prior period weighted average share and related earnings per share
amounts have been restated retroactively to reflect the previously announced
second step conversion at a conversion rate of 0.6573 to 1.



Summarized Consolidated Statements of Financial Condition
                (Unaudited)  (Unaudited) (Unaudited)              (Unaudited)
(In thousands,  3/31/2013    12/31/2012  9/30/2012    6/30/2012   3/31/2012
as of)
ASSETS
Cash and Cash   $          $ 39,375    $  31,271   $         $ 32,375
Equivalents     27,621                               29,079
Investment      204,783      173,258     161,426      146,389     150,158
Securities
Loans           258,454      266,684     272,076      283,154     284,415
Receivable, net
Other Assets    35,109       37,347      37,380       37,281      36,666
Total Assets    $  525,967 $ 516,664  $ 502,153   $ 495,903  $ 
                                                                  503,614
LIABILITIES
Municipal       $  103,483 $  102,806 $  106,920 $          $ 
Deposits                                              103,086    110,966
Other Deposits  333,498      322,311     326,139      323,881     322,680
FHLB Advances   10,083       10,333      10,583       10,833      11,083
Other           3,932        3,006       3,214        3,115       3,528
Liabilities
Total           450,996      438,456     446,856      440,915     448,257
Liabilities
Commitments and -            22,889      -            -           -
contingencies
Total
Stockholders'   74,971       55,319      55,297       54,988      55,357
Equity
Total
Liabilities &   $  525,967 $ 516,664  $  502,153 $          $ 
Stockholders'                                         495,903    503,614
Equity
Summarized Consolidated Statements of Income
                (Unaudited)  (Unaudited) (Unaudited)  (Unaudited) (Unaudited)
                3/31/2013    12/31/2012  9/30/2012    6/30/2012   3/31/2012
                (for the three months ended, in thousands, except per share
                data)
Interest Income $         $        $         $        $   
                3,847       4,103      4,225       4,509      4,290
Interest        747          889         1,003        1,054       1,025
Expense
Net Interest    3,100        3,214       3,222        3,455       3,265
Income
Provision for   110          225         250          1,750       333
Loan Losses
Net Interest
Income after
Provision
 for Loan    2,990        2,989       2,972        1,705       2,932
Losses
Total Other     949          1,367       1,067        1,758       888
Income
Total
Noninterest     3,427        3,370       3,417        3,090       3,056
Expense
Income before   512          986         622          373         764
Tax Provision
Income Tax      105          290         128          29          307
Provision
Net Income      $       $      $       $      $     
                407          696         494          344         457
Basic and
Diluted         $        $       $        $       $    
Earnings per    0.08        0.14       0.10        0.07       0.09
Share (1)
Weighted
Average Shares
Outstanding
(1):
Basic and       4,892,523    5,050,134   5,050,134    5,050,134   5,029,758
Diluted
(1) Prior period weighted average share and related earnings per share
amounts have been restated retroactively to reflect the previously announced
second step conversion at a conversion rate of 0.6573 to 1.







                  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                  For the three months ended
                  3/31/2013   12/31/2012  9/30/2012   6/30/2012   3/31/2012
Performance
Ratios:
Return on average 0.31%       0.55%       0.40%       0.27%       0.38%
assets (1)
Return on average 2.41%       5.02%       3.58%       2.48%       3.31%
equity (1)
Interest rate     2.47%       2.70%       2.75%       2.92%       2.87%
spread (2)
Net interest      2.53%       2.75%       2.79%       2.96%       2.91%
margin (3)
Noninterest
expense to        2.61%       2.67%       2.74%       2.46%       2.52%
average assets
(1)
Efficiency ratio 84.64%      73.56%      79.67%      59.27%      73.59%
(4)
Average
interest-earning
assets to
 average
interest-bearing  109.16%     106.17%     105.06%     105.08%     105.08%
liabilities
Average equity to 12.83%      10.98%      11.07%      11.05%      11.37%
average assets
Bank Capital
Ratios:
Tangible capital  11.56%      9.37%       9.18%       9.24%       9.16%
Core capital      11.56%      9.37%       9.18%       9.24%       9.16%
Total risk-based  26.17%      20.36%      19.64%      19.05%      18.82%
capital
Asset Quality
Ratios:
Nonperforming
loans as a
percent
 of total loans 5.39%       5.34%       5.44%       5.62%       6.64%
Nonperforming
assets as a
percent
 of total       2.79%       2.98%       3.15%       3.30%       3.88%
assets
Allowance for
loan losses as a
percent
 of total loans 2.18%       2.10%       2.05%       1.95%       1.91%
Allowance for
loan losses as a
percent
 of
nonperforming     40.35%      39.37%      37.71%      34.64%      28.72%
loans
Net charge-offs
to average
outstanding
 loans during   0.13%       0.29%       0.26%       2.32%       0.14%
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 March 31, 2013:

Net income decreased $50,000 to $407,000 for the quarter ended March 31, 2013,
compared to net income of $457,000 for the quarter ended March 31, 2012.

Net interest income decreased $165,000, or 5.1%, to $3.1 million for the
quarter ended March 31, 2013 as compared to $3.3 million for the quarter ended
March 31, 2012. A decrease of $443,000 in interest income was partially
offset by a $278,000 decrease in interest expense. The decrease in interest
income was the result of a decrease in the average interest rate earned on
loans from 5.03% to 4.75%, a $21.6 million decrease in the average balance of
loans and a decrease in the average rate earned on investments from 2.14% to
1.49%, partially offset by a $60.1 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 0.95% to 0.64%,
partially offset by a $20.6 million increase in the average balance of
outstanding deposits. Changes in interest rates are reflective of decreases
in overall market rates.

The provision for loan losses was $110,000 for the quarter ended March 31,
2013, compared to $333,000 for the same quarter in the prior year,
representing a decrease of $223,000 or 67.0%. The decrease in the provision
for loan losses was primarily due to improving asset quality.

Other income increased $61,000, or 6.9%, to $949,000 for the quarter ended
March 31, 2013 from $888,000 for the quarter ended March 31, 2012. The
increase in other income was primarily due to a $196,000 increase in gain on
sale of investments, partially offset by a $128,000 increase in loss on sale
of other real estate owned. The increase in loss on sale of other real estate
owned was primarily the result of the sale of a nonresidential property.

Noninterest expense increased $371,000, or 12.1%, from $3.1 million for the
quarter ended March 31, 2012 to $3.4 million for the quarter ended March 31,
2013. The increase was primarily due to increases of $109,000 in compensation
and employee benefits, $81,000 in deposit insurance premium, $81,000 in data
processing expense and $130,000 in other operating expenses. 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 core processing and branch
network communication system, and annual wage increases. The increase in
deposit insurance premium is reflective of an overall increase in average
deposits in the current year quarter compared to the prior year quarter. The
increase in data processing expense was primarily due to the implementation of
a new branch network communication system. The increase in other operating
expenses is primarily due to increased expenses associated with OREO
properties during the current year quarter compared to the prior year quarter.


For the nine months ended March 31, 2013:

Net income stayed flat at $1.6 million for the nine months ended March 31,
2013 and 2012.

Net interest income decreased $907,000, or 8.7%, to $9.5 million for the nine
months ended March 31, 2013 as compared to $10.4 million for the nine months
ended March 31, 2012. A decrease of $1.5 million in interest income was
partially offset by a $595,000 decrease in interest expense. The decrease in
interest income was the result of a decrease in the average interest rate
earned on loans from 5.37% to 4.89%, a $15.3 million decrease in the average
balance of loans and a decrease in the average rate earned on investments from
2.23% to 1.74%, partially offset by a $42.4 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 1.02%
to 0.77%, partially offset by a $17.7 million increase in the average balance
of outstanding deposits and a $6.0 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 $585,000 for the nine months ended March 31,
2013, compared to $1.9 million for the same period in the prior year, a
decrease of $1.3 million or 69.4%. The decrease in the provision for loan
losses was primarily due to improving asset quality.

Other income increased $164,000, or 5.1%, to $3.4 million for the nine months
ended March 31, 2013 from $3.2 million for the nine months ended March 31,
2012. The increase in other income was primarily due to a $346,000 increase in
gain on sale of loans, partially offset by a $104,000 decrease in gain on sale
of investments and a $83,000 increase in loss on sale of other real estate
owned. The increase in loan sales to Freddie Mac in the March 31, 2013 period
compared to the same period in the prior year was primarily due to an increase
in refinancing activity as a result of the continued low interest rate
environment. The increase in loss on sale of other real estate owned was
primarily the result of the sale of a nonresidential property.

Noninterest expense increased $868,000, or 9.3%, from $9.3 million for the
nine months ended March 31, 2012 to $10.2 million for the nine months ended
March 31, 2013. The increase was primarily due to increases of $272,000 in
compensation and employee benefits, $148,000 in deposit insurance premium,
$184,000 in data processing expense and $184,000 in other operating expenses,
as well as a $105,000 provision for loss on real estate owned in the nine
months ended March 31, 2013 compared to no such provision in the prior year
nine month period. The provision for loss on real estate owned was due to
additional write-downs of two commercial OREO properties.

Total assets were $526.0 million at March 31, 2013, compared to $495.9 million
at June 30, 2012. Total assets increased $30.0 million, or 6.0%, primarily as
a result of a $58.4 million increase in investment securities, partially
offset by a $24.7 million decrease in loans. The increase in our investment
securities was the result of purchases of mortgage-backed securities and
available for sale securities with the funds received in connection with the
conversion from a mutual holding company form of organization to the stock
holding company form on January 9, 2013. The decrease in loans was primarily
the result of net payoffs totaling $9.3 million reduction in one- to
four-family real estate loans, payoffs aggregating $8.0 million for performing
commercial real estate loans and transfers to OREO totaling $2.5 million
during the nine month period ended March 31, 2013.

Total liabilities were $451.0 million at March 31, 2013, compared to $440.9
million at June 30, 2012, reflecting a $10.0 million increase in deposits.
The increase in deposits was primarily due to a $9.6 million increase in
retail deposits.

Total stockholders' equity was $75.0 million at March 31, 2013, compared to
$55.0 million at June 30, 2012. The increase was primarily the result of net
proceeds from the stock conversion totaling $21.6 million, net income of $1.6
million for the nine months ended March 31, 2013, and a $612,000 contribution
of cash by United Community MHC, partially offset by dividends paid and
accrued totaling $2.0 million during the nine month period and common stock
acquired by the ESOP of $1.6 million. At March 31, 2013, 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, 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: William F. Ritzmann, President and Chief Executive Officer, United
Community Bancorp, (812) 537-4822
 
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