United Community Bancorp Reports First Quarter Results

            United Community Bancorp Reports First Quarter Results

PR Newswire

LAWRENCEBURG, Ind., Oct. 30, 2013

LAWRENCEBURG, Ind., Oct. 30, 2013 /PRNewswire/ --United Community Bancorp
(the "Company") (Nasdaq: UCBA), the parent company of United Community Bank
(the "Bank"), today reported net income of $762,000, or $0.16 per diluted
share, for the quarter ended September 30, 2013, compared to net income of
$494,000, or $0.10  per diluted share, for the quarter ended September 30,
2012.

United Community Bancorp
Summarized Statements of Income
(In thousands, except per share data)
                                                    For the three months ended
                                                    9/30/2013      9/30/2012
                                                    (Unaudited)    (Unaudited)
Interest income                                     $3,759         $4,225
Interest expense                                    748            1,003
 Net interest income                               3,011          3,222
Provision for (recovery of) loan losses             (442)          250
 Net interest income after provision for loan      3,453          2,972
losses
Total other income                                  1,052          1,067
Total noninterest expense                           3,448          3,417
 Income before income taxes                        1,057          622
Income tax provision                                295            128
 Net income                                        $  762        $  494
Basic and diluted earnings per share^(1)            $0.16          $0.10
Weighted average shares outstanding^(1)             4,875,257      5,050,134

^(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.



Summarized Consolidated Statements of Financial Condition
               (Unaudited)               (Unaudited)  (Unaudited) (Unaudited)
(In thousands, 9/30/2013    6/30/2013    3/31/2013    12/31/2012  9/30/2012
as of)
ASSETS
Cash and Cash  $          $ 16,787     $ 27,621     $ 39,375    $  31,271
Equivalents    16,639
Investment     208,828      202,547      204,783      173,258     161,426
Securities
Loans
Receivable,    247,202      254,578      258,454      266,684     272,076
net
Other Assets   38,872       38,719       35,109       37,347      37,380
Total Assets   $  511,451 $ 512,631   $  525,967  $ 516,664  $ 502,153
LIABILITIES
Municipal      $  101,994 $   90,141 $  103,483 $  102,806 $ 
Deposits                                                          106,920
Other Deposits 322,837      331,102      333,498      322,311     326,139
FHLB Advances  10,000       15,000       10,083       10,333      10,583
Other          3,241        2,845        3,932        3,006       3,214
Liabilities
Total          438,072      439,088      450,996      438,456     446,856
Liabilities
Commitments
and            -            -            -            22,889      -
contingencies
Total
Stockholders'  73,379       73,543       74,971       55,319      55,297
Equity
Total
Liabilities &  $  511,451 $ 512,631   $  525,967 $ 516,664  $ 
Stockholders'                                                     502,153
Equity
Summarized Consolidated Statements of Income
               (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) (Unaudited)
               9/30/2013    6/30/2013    3/31/2013    12/31/2012  9/30/2012
               (for the three months ended, in thousands, except per share
               data)
Interest       $         $         $         $        $   
Income         3,759       3,712       3,847       4,103      4,225
Interest       748          712          747          889         1,003
Expense
Net Interest   3,011        3,000        3,100        3,214       3,222
Income
Provision for
(Recovery of)  (442)        (651)        110          225         250
Loan Losses
Net Interest
Income after
Provision
 for Loan   3,453        3,651        2,990        2,989       2,972
Losses
Total Other    1,052        1,106        949          1,367       1,067
Income
Total
Noninterest    3,448        3,381        3,427        3,370       3,417
Expense
Income before  1,057        1,376        512          986         622
Tax Provision
Income Tax     295          406          105          290         128
Provision
Net Income     $       $       $       $      $     
               762          970          407          696         494
Basic and
Diluted        $        $        $        $       $    
Earnings per   0.16        0.20        0.08        0.14       0.10
Share (1)
Weighted
Average Shares
Outstanding
(1):
Basic and      4,875,257    4,875,257    4,892,523    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
                  9/30/2013   6/30/2013   3/31/2013   12/31/2012  9/30/2012
Performance
Ratios:
Return on average 0.59%       0.75%       0.31%       0.55%       0.40%
assets (1)
Return on average 4.17%       5.19%       2.41%       5.02%       3.58%
equity (1)
Interest rate     2.48%       2.43%       2.47%       2.70%       2.75%
spread (2)
Net interest      2.53%       2.48%       2.53%       2.75%       2.79%
margin (3)
Noninterest
expense to        2.68%       2.60%       2.61%       2.67%       2.74%
average assets
(1)
Efficiency ratio 84.86%      82.34%      84.64%      73.56%      79.67%
(4)
Average
interest-earning
assets to
 average
interest-bearing  108.65%     109.29%     109.16%     106.17%     105.06%
liabilities
Average equity to 14.23%      14.37%      12.83%      10.98%      11.07%
average assets
Bank Capital
Ratios:
Tangible capital  12.18%      12.07%      11.56%      9.37%       9.18%
Core capital      12.18%      12.07%      11.56%      9.37%       9.18%
Total risk-based  26.95%      26.72%      26.17%      20.36%      19.64%
capital
Asset Quality
Ratios:
Nonperforming
loans as a
percent
 of total loans 3.74%       4.87%       5.39%       5.34%       5.44%
Nonperforming
assets as a
percent
 of total       1.98%       2.60%       2.79%       2.98%       3.15%
assets
Allowance for
loan losses as a
percent
 of total loans 2.15%       2.09%       2.18%       2.10%       2.05%
Allowance for
loan losses as a
percent
 of
nonperforming     57.57%      42.83%      40.35%      39.37%      37.71%
loans
Net charge-offs
(recoveries) to
average
 outstanding
loans during the  (0.76)%     (0.56)%     0.13%       0.29%       0.26%
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 weightedaverage
 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 September 30, 2013:

Net income increased $268,000 to $762,000 for the quarter ended September 30,
2013, compared to net income of $494,000 for the quarter ended September 30,
2012.

Net interest income decreased $211,000, or 6.5%, to $3.0 million for the
quarter ended September 30, 2013 as compared to $3.2 million for the quarter
ended September 30, 2012. A decrease of $466,000 in interest income was
partially offset by a $255,000 decrease in interest expense. The decrease in
interest income was the result of a $26.7 million decrease in the average
balance of loans and a decrease in the average rate earned on investments from
2.01% at September 30, 2012 to 1.27% at September 30, 2013, partially offset
by a $53.1 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 0.89% to 0.66%. Changes in
interest rates are reflective of decreases in overall market rates.

The recovery of loan losses was $442,000 for the quarter ended September 30,
2013, compared to a provision for loan losses of $250,000 for the same quarter
in the prior year. The decrease in the provision for loan losses was primarily
due to a $379,000 recovery of a commercial loan and a $124,000 recovery from
two one-to four-family loans, all three of which were paid off during the
current year quarter. The decrease in the provision for loan losses is also
reflective of continued improvement in our asset quality. Asset quality
continues to improve primarily due to the Bank's continuing efforts to resolve
asset quality issues. Nonperforming assets as a percentage of total assets
decreased from 3.15% at September 30, 2012 to 1.98% at September 30, 2013.

Other income remained flat at $1.1 million for the quarters ended September
30, 2013 and September 30, 2012. A $136,000 increase in gain on sale of fixed
assets was offset by a $161,000 decrease in gain on sale of loans. The
increase in gain on sale of fixed assets was the result of the sale of our
Osgood branch facility for total proceeds of $425,000, compared to a net book
value of $289,000, during the current quarter. The decrease in gain on sale
of loans is the result of a higher level of refinancing activity during the
quarter ended September 30, 2012 as compared to the current year quarter due
to higher loan rates in the current year quarter.

Noninterest expense remained flat at $3.4 million for the quarters ended
September 30, 2013 and September 30, 2012. A $131,000 increase in other
operating expenses was offset by an $80,000 decrease in deposit insurance
premium. The increase in other operating expenses is primarily the result of a
$94,000 increase in loan-related expenses associated with a short-term
promotion during the current year quarter.

Total assets were $511.5 million at September 30, 2013, compared to $512.6
million at June 30, 2013. A $7.4 million decrease in loans was partially
offset by a $6.3 million increase in investment securities. The decrease in
loans was primarily the result of net payoffs totaling $5.6 million in one- to
four-family real estate loans and $2.1 million in commercial real estate loans
during the quarter ended September 30, 2013. The increase in investment
securities was the result of redeploying proceeds from the payoff of loans
into purchases of mortgage-backed securities and available for sale
securities.

Total liabilities were $438.1 million at September 30, 2013, compared to
$439.1 million at June 30, 2013, reflecting a $5.0 million decrease in FHLB
advances partially offset by a $3.6 million increase in deposits. The
decrease in FHLB advances is due to a $5.0 million payment on a short-term
advance in July 2013. The increase in deposits was primarily due to a $11.9
million increase in municipal deposits, offset by an $8.3 million decrease in
retail deposits due to declining certificate of deposit rates.

Total stockholders' equity was $73.4 million at September 30, 2013, compared
to $73.5 million at June 30, 2013. The decrease was primarily the result of a
$735,000 after-tax increase in unrealized loss on investments and dividends
paid of $309,000, partially offset by net income of $762,000. At September
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, 2013 filed with the SEC on September 27, 2013 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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