United Community Bancorp Reports Fourth Quarter and Year End Results

     United Community Bancorp Reports Fourth Quarter and Year End Results

PR Newswire

LAWRENCEBURG, Ind., Aug. 12, 2013

LAWRENCEBURG, Ind., Aug. 12, 2013 /PRNewswire/ -- United Community Bancorp
(the "Company") (Nasdaq:UCBA), the parent company of United Community Bank
(the "Bank"), today reported net income of $970,000, or $0.20 per diluted
share, for the quarter ended June 30, 2013, compared to net income of
$344,000, or $0.07  per diluted share, for the quarter ended June 30, 2012.
Net income for the year ended June 30, 2013 was $2.6 million, or $0.52 per
diluted share, compared to $2.0 million, or $0.40 per diluted share, for the
year ended June 30, 2012.

United Community Bancorp
Summarized Statements of Income
(In thousands, except per share data)
                                           For the year ended
                                           6/30/2013    6/30/2012
                                           (Unaudited)
Interest income                            $15,887      $18,186
Interest expense                           3,351        4,288
 Net interest income                      12,536       13,898
Provision for (recovery of) loan losses    (66)         3,662
 Net interest income after provision for  12,602       10,236
 (recovery of) loan losses
Total other income                         4,489        4,977
Total noninterest expense                  13,595       12,436
 Income before income taxes               3,496        2,777
Income tax provision                       929          788
 Net income                               $2,567       $1,989
Basic and diluted earnings per share^(1)   $0.52        $0.40
Weighted average shares outstanding^(1)    4,967,672    5,025,108

     Weighted average share and related earnings per share amounts for periods
^(1) prior to January 9, 2013
     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,  6/30/2013     3/31/2013   12/31/2012  9/30/2012   6/30/2012
as of)
ASSETS
Cash and Cash   $   16,787 $ 27,621    $ 39,375    $  31,271  $  
Equivalents                                                       29,079
Investment      202,547       204,783     173,258     161,426     146,389
Securities
Loans           254,578       258,454     266,684     272,076     283,154
Receivable, net
Other Assets    38,719        35,109      37,347      37,380      37,281
Total Assets    $  512,631  $ 525,967   $ 516,664  $ 502,153  $ 495,903
LIABILITIES
Municipal       $   90,141 $ 103,483   $  102,806 $          $ 
Deposits                                              106,920    103,086
Other Deposits  331,102       333,498     322,311     326,139     323,881
FHLB Advances   15,000        10,083      10,333      10,583      10,833
Other           2,845         3,932       3,006       3,214       3,115
Liabilities
Total           439,088       450,996     438,456     446,856     440,915
Liabilities
Commitments and -             -           22,889      -           -
contingencies
Total
Stockholders'   73,543        74,971      55,319      55,297      54,988
Equity
Total
Liabilities &   $  512,631  $ 525,967   $ 516,664  $          $ 
Stockholders'                                         502,153    495,903
Equity
Summarized Consolidated Statements of Income
                (Unaudited)   (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                6/30/2013     3/31/2013   12/31/2012  9/30/2012   6/30/2012
                (for the three months ended, in thousands, except per share
                data)
Interest Income $          $        $        $        $   
                3,712        3,847      4,103      4,225      4,509
Interest        712           747         889         1,003       1,054
Expense
Net Interest    3,000         3,100       3,214       3,222       3,455
Income
Provision for
(Recovery of)   (651)         110         225         250         1,750
Loan Losses
Net Interest
Income after
Provision
 for
(Recovery of)   3,651         2,990       2,989       2,972       1,705
Loan Losses
Total Other     1,106         949         1,367       1,067       1,758
Income
Total
Noninterest     3,381         3,427       3,370       3,417       3,090
Expense
Income before   1,376         512         986         622         373
Tax Provision
Income Tax      406           105         290         128         29
Provision
Net Income      $        $      $      $      $     
                970           407         696         494         344
Basic and
Diluted         $         $       $       $       $    
Earnings per    0.20         0.08       0.14       0.10       0.07
Share (1)
Weighted
Average Shares
Outstanding
(1):
Basic and       4,875,257     4,892,523   5,050,134   5,050,134   5,050,134
Diluted
(1) Weighted average share and related earnings per share amounts for periods
prior to January 9, 2013 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
                  6/30/2013   3/31/2013   12/31/2012  9/30/2012   6/30/2012
Performance
Ratios:
Return on average 0.75%       0.31%       0.55%       0.40%       0.27%
assets (1)
Return on average 5.19%       2.41%       5.02%       3.58%       2.48%
equity (1)
Interest rate     2.43%       2.47%       2.70%       2.75%       2.92%
spread (2)
Net interest      2.48%       2.53%       2.75%       2.79%       2.96%
margin (3)
Noninterest
expense to        2.60%       2.61%       2.67%       2.74%       2.46%
average assets
(1)
Efficiency ratio 82.34%      84.64%      73.56%      79.67%      59.27%
(4)
Average
interest-earning
assets to
 average
interest-bearing  109.29%     109.16%     106.17%     105.06%     105.08%
liabilities
Average equity to 14.37%      12.83%      10.98%      11.07%      11.05%
average assets
Bank Capital
Ratios:
Tangible capital  12.07%      11.56%      9.37%       9.18%       9.24%
Core capital      12.07%      11.56%      9.37%       9.18%       9.24%
Total risk-based  26.72%      26.17%      20.36%      19.64%      19.05%
capital
Asset Quality
Ratios:
Nonperforming
loans as a
percent
 of total loans 4.87%       5.39%       5.34%       5.44%       5.62%
Nonperforming
assets as a
percent
 of total       2.60%       2.79%       2.98%       3.15%       3.30%
assets
Allowance for
loan losses as a
percent
 of total loans 2.09%       2.18%       2.10%       2.05%       1.95%
Allowance for
loan losses as a
percent
 of
nonperforming     42.83%      40.35%      39.37%      37.71%      34.64%
loans
Net charge-offs
(recoveries) to
average
 outstanding
loans during the  (0.56)%     0.13%       0.29%       0.26%       2.32%
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 June 30, 2013:

Net income increased $626,000 to $970,000 for the quarter ended June 30, 2013,
compared to net income of $344,000 for the quarter ended June 30, 2012.

Net interest income decreased $455,000, or 13.2%, to $3.0 million for the
quarter ended June 30, 2013 as compared to $3.5 million for the quarter ended
June 30, 2012. A decrease of $797,000 in interest income was partially
offset by a $342,000 decrease in interest expense. The decrease in interest
income was the result of a decrease in the average interest rate earned on
loans from 5.19% at June 30, 2012 to 4.83% at June 30, 2013, a $27.3 million
decrease in the average balance of loans and a decrease in the average rate
earned on investments from 2.14% at June 30, 2012 to 1.18% at June 30, 2013,
partially offset by a $51.6 million increase in the average balance of
investments over the same period. The decrease in interest expense was
primarily the result of a decrease in the average interest rate paid on
deposits from 0.92% at June 30, 2012 to 0.62% at June 30, 2013. Changes in
interest rates are reflective of decreases in overall market rates.

The recovery of loan losses was $651,000 for the quarter ended June 30, 2013,
compared to a provision for loan losses of $1.8 million for the same quarter
in the prior year, representing a decrease of $2.5 million. The decrease in
the provision for loan losses was primarily due to a $651,000 recovery in the
current year quarter on a multi-family loan which had previously been charged
off and which was paid off during the current period, as well as the overall
improvement in asset quality.

Other income decreased $652,000, or 37.1%, to $1.1 million for the quarter
ended June 30, 2013 from $1.8 million for the quarter ended June 30, 2012. The
decrease in other income was primarily due to a $726,000 decrease in gain on
sale of investments primarily due to a decreased level of sales of
mortgage-backed securities and other available for sale investment securities
during the current year quarter as compared to the same quarter in the prior
year.

Noninterest expense increased $291,000, or 9.4%, from $3.1 million for the
quarter ended June 30, 2012 to $3.4 million for the quarter ended June 30,
2013. The increase was primarily due to an increase of $305,000 in
compensation and employee benefits. The increase in compensation and employee
benefits expense was primarily due to the recognition of an IRS assessment in
the current quarter for prior years' payroll tax expense of $199,000, the
addition of employees in the accounting department, and annual wage increases.

For the year ended June 30, 2013:

Net income increased $578,000 to $2.6 million for the year ended June 30,
2013, compared to net income of $2.0 million for the year ended June 30, 2012.

Net interest income decreased $1.4 million, or 9.8%, to $12.5 million for the
year ended June 30, 2013 as compared to $13.9 million for the year ended June
30, 2012. A decrease of $2.3 million in interest income was partially offset
by a $937,000 decrease in interest expense. The decrease in interest income
was the result of a decrease in the average interest rate earned on loans from
5.33% at June 30, 2012 to 4.88% at June 30, 2013, an $18.2 million decrease in
the average balance of loans and a decrease in the average rate earned on
investments from 2.21% at June 30, 2012 to 1.59% at June 30, 2013, partially
offset by a $44.3 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 1.00% at June 30, 2012 to 0.73% at
June 30, 2013. Changes in interest rates are reflective of decreases in
overall market rates during the year ended June 30, 2013.

The recovery of loan losses was $66,000 for the year ended June 30, 2013,
compared to a provision for loan losses of $3.7 million for the prior year, a
decrease of $3.7 million. The decrease in the provision for loan losses was
primarily due to a $651,000 recovery in the current year on a multi-family
loan which had previously been charged off and which was paid off during the
current year, as well as the overall improvement in asset quality.

Other income decreased $488,000, or 9.8%, to $4.5 million for the year ended
June 30, 2013 from $5.0 million for the year ended June 30, 2012. The decrease
in other income was primarily due to an $830,000 decrease in gain on sale of
investments, partially offset by a $325,000 increase in gain on sale of
loans. The decrease in gain on sale of investments was primarily due to a
decreased level of sales of mortgage-backed securities and other available for
sale investment securities during the current year as compared to the prior
year. The increase in loan sales to Freddie Mac in the current year compared
to the prior year was primarily due to an increase in refinancing activity as
a result of the continued low interest rate environment.

Noninterest expense increased $1.2 million, or 9.3%, from $12.4 million for
the year ended June 30, 2012 to $13.6 million for the year ended June 30,
2013. The increase was primarily due to increases of $577,000 in compensation
and employee benefits, $235,000 in deposit insurance premium, $135,000 in data
processing expense and $201,000 in other operating expenses in the year ended
June 30, 2013 compared to the prior year. The increase in compensation and
employee benefits expense was primarily due to the recognition of an IRS
assessment in the current quarter for prior years' payroll tax expense of
$199,000, the addition of employees in the accounting department, 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 compared to the prior year. The increase
in data processing expense was primarily due to the implementation of a new
branch network communication system and a new core processing system.

Total assets were $512.6 million at June 30, 2013, compared to $495.9 million
at June 30, 2012. Total assets increased $16.7 million, or 3.4%, primarily as
a result of a $56.2 million increase in investment securities, partially
offset by a $28.6 million decrease in loans. The increase in 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, payoff of a multi-family loan totaling $896,000
and transfers to OREO totaling $3.2 million during the year ended June 30,
2013.

Total liabilities were $439.1 million at June 30, 2013, compared to $440.9
million at June 30, 2012.

Total stockholders' equity was $73.5 million at June 30, 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 $2.6
million for the year ended June 30, 2013, and a $612,000 contribution of cash
by United Community MHC, partially offset by dividends paid of $2.4 million
during the year, common stock acquired by the ESOP of $1.6 million, and
unrealized losses on available for sale securities totaling $2.6 million
during the year. At June 30, 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: United Community Bancorp, William F. Ritzmann, President and Chief
Executive Officer, (812) 537-4822
 
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