United Community Bancorp Reports Third Quarter Results

            United Community Bancorp Reports Third Quarter Results

PR Newswire

LAWRENCEBURG, Ind., April 30, 2014

LAWRENCEBURG, Ind., April 30, 2014 /PRNewswire/ --United Community Bancorp
(the "Company") (Nasdaq:UCBA), the parent company of United Community Bank
(the "Bank"), today reported net income of $583,000, or $0.12 per diluted
share, for the quarter ended March 31, 2014, compared to net income of
$407,000, or $0.08  per diluted share, for the quarter ended March 31, 2013.
Net income for the nine months ended March 31, 2014 was $1.9 million, or $0.40
per diluted share, compared to net income of $1.6 million, or $0.32 per
diluted share, for the nine months ended March 31, 2013.





United Community Bancorp
Summarized Statements of Income
(In thousands, except per share data)
                                           For the nine months ended
                                           3/31/2014     3/31/2013
                                           (Unaudited)   (Unaudited)
Interest income                            $11,279       $12,175
Interest expense                           2,008         2,639
 Net interest income                      9,271         9,536
Provision for (recovery of) loan losses    (292)         585
 Net interest income after provision for  9,563         8,951
 (recovery of) loan losses
Total other income                         2,950         3,383
Total noninterest expense                  9,948         10,214
 Income before income taxes               2,565         2,120
Income tax provision                       638           523
 Net income                               $1,927        $1,597
Basic and diluted earnings per share^(1)   $0.40         $0.32
Weighted average shares outstanding^(1)    4,855,390     4,998,364

^(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) (Audited)   (Unaudited)
(In thousands,  3/31/2014     12/31/2013  9/30/2013   6/30/2013   3/31/2013
as of)
ASSETS
Cash and Cash   $   27,836 $  21,553 $  16,639 $ 16,787    $ 27,621
Equivalents
Investment      210,181       204,677     208,828     202,547     204,783
Securities
Loans           246,162       247,165     247,202     254,578     258,454
Receivable, net
Other Assets    41,636        38,817      38,782      38,719      35,109
Total Assets    $  525,815  $ 512,212  $ 511,451  $ 512,631  $  525,967
LIABILITIES
Municipal       $  107,127  $ 103,240   $ 101,994   $         $ 
Deposits                                              90,141      103,483
Other Deposits  327,022       317,226     322,837     331,102     333,498
FHLB Advances   15,000        15,000      10,000      15,000      10,083
Other           2,882         2,530       3,241       2,845       3,932
Liabilities
Total           452,031       437,996     438,072     439,088     450,996
Liabilities
Commitments and -             -           -           -           -
contingencies
Total
Stockholders'   73,784        74,216      73,379      73,543      74,971
Equity
Total
Liabilities &   $  525,815  $ 512,212  $ 511,451  $ 512,631  $ 
Stockholders'                                                     525,967
Equity
Summarized Consolidated Statements of Income
                (Unaudited)   (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                3/31/2014     12/31/2013  9/30/2013   6/30/2013   3/31/2013
                (for the three months ended, in thousands, except per share
                data)
Interest Income $          $        $        $        $   
                3,752        3,768      3,759      3,712      3,847
Interest        622           638         748         712         747
Expense
Net Interest    3,130         3,130       3,011       3,000       3,100
Income
Provision for
(Recovery of)   75            75          (442)       (651)       110
Loan Losses
Net Interest
Income after
Provision
 for
(Recovery of)   3,055         3,055       3,453       3,651       2,990
Loan Losses
Total Other     887           1,011       1,052       1,106       949
Income
Total
Noninterest     3,206         3,294       3,448       3,381       3,427
Expense
Income before   736           772         1,057       1,376       512
Tax Provision
Income Tax      153           190         295         406         105
Provision
Net Income      $        $      $      $      $     
                583           582         762         970         407
Basic and
Diluted         $         $       $       $       $    
Earnings per    0.12         0.12       0.16       0.20       0.08
Share (1)
Weighted
Average Shares
Outstanding
(1):
Basic and       4,814,774     4,875,257   4,875,257   4,875,257   4,892,523
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
                  3/31/2014   12/31/2013  9/30/2013   6/30/2013   3/31/2013
Performance
Ratios:
Return on average 0.45%       0.45%       0.59%       0.75%       0.31%
assets (1)
Return on average 3.14%       3.14%       4.17%       5.19%       2.41%
equity (1)
Interest rate     2.55%       2.58%       2.48%       2.43%       2.47%
spread (2)
Net interest      2.60%       2.62%       2.53%       2.48%       2.53%
margin (3)
Noninterest
expense to        2.46%       2.55%       2.68%       2.60%       2.61%
average assets
(1)
Efficiency ratio 79.81%      79.55%      84.86%      82.34%      84.64%
(4)
Average
interest-earning
assets to
 average
interest-bearing  108.45%     108.81%     108.65%     109.29%     109.16%
liabilities
Average equity to 14.25%      14.36%      14.23%      14.37%      12.83%
average assets
Bank Capital
Ratios:
Tangible capital  12.00%      12.30%      12.18%      12.07%      11.56%
Core capital      12.00%      12.30%      12.18%      12.07%      11.56%
Total risk-based  26.85%      27.33%      26.95%      26.72%      26.17%
capital
Asset Quality
Ratios:
Nonperforming
loans as a
percent
 of total loans 4.95%       3.48%       3.74%       4.87%       5.39%
Nonperforming
assets as a
percent
 of total       2.48%       1.88%       1.98%       2.60%       2.79%
assets
Allowance for
loan losses as a
percent
 of total loans 2.17%       2.12%       2.15%       2.09%       2.18%
Allowance for
loan losses as a
percent
 of
nonperforming     43.92%      60.90%      57.57%      42.83%      40.35%
loans
Net charge-offs
(recoveries) to
average
 outstanding
loans during the  (0.04)%     0.30%       (0.76)%     (0.56)%     0.13%
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, 2014:

Net income increased $176,000 to $583,000 for the quarter ended March 31,
2014, compared to net income of $407,000 for the quarter ended March 31, 2013.

Net interest income remained flat at $3.1 million for the quarter ended March
31, 2014 compared to the same period in the prior year.A decrease of $95,000
in interest income was offset by a decrease of $125,000 in interest expense.
The decrease in interest income was the result of a $14.8 million decrease in
the average balance of loans and a decrease in the average rate earned on
loans from 4.75% for the quarter ended March 31, 2013 to 4.59% for the quarter
ended March 31, 2014, partially offset by a $15.4 million increase in the
average balance of investments and an increase in the average rate earned on
investments from 1.49% for the quarter ended March 31, 2013 to 1.73% for the
quarter ended March 31, 2014. The decrease in interest expense was primarily
the result of a decrease in the average interest rate paid on deposits from
0.64% for the quarter ended March 31, 2013 to 0.52% for the quarter ended
March 31, 2014. Changes in interest rates are reflective of decreases in
overall market rates.

The provision for loan losses was $75,000 for the quarter ended March 31,
2014, compared to $110,000 for the same quarter in the prior year. The
decrease in the provision for loan losses is 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 2.79% at
March 31, 2013 to 2.48% at March 31, 2014.

Other income decreased $62,000, or 6.5%, to $887,000 for the quarter ended
March 31, 2014 compared to $949,000 for the prior year quarter. The decrease
is primarily due to a $290,000 decrease in gain on sale of investments and a
$121,000 decrease in gain on sale of loans, partially offset by a $114,000
increase in other income. The decrease in gain on sale of investments is due
to the sale of mortgage-backed securities and other available for sale
securities in the quarter ended March 31, 2013 with no such sales in the
current year quarter. The decrease in gain on sale of loans is the result of a
decrease in refinancing activity during the quarter ended March 31, 2014 as
compared to the prior year quarter primarily due to the Bank's decision to
hold fifteen year fixed-rate loans in its loan portfolio during the current
year period. The increase in other income is primarily due to an increase in
the value of mortgage servicing rights during the quarter ended March 31,
2014. The increase in income from mortgage servicing rights is primarily due
to the year over year decrease in the prepayment of mortgages. 

Noninterest expense decreased $221,000 to $3.2 million for the quarter ended
March 31, 2014 compared to $3.4 million for the prior year quarter. Decreases
included $84,000 in data processing expense and $60,000 in compensation and
employee benefits. The decreases in data processing expense and compensation
and employee benefits were primarily due to additional expenses in the prior
year related to a data processing conversion that was completed in February
2013.

For the nine months ended March 31, 2014:

Net income increased $330,000 to $1.9 million for the nine months ended March
31, 2014, compared to net income of $1.6 million for the nine months ended
March 31, 2013.

Net interest income decreased $265,000, or 2.8%, to $9.3 million for the nine
months ended March 31, 2014 as compared to $9.5 million for the nine months
ended March 31, 2013. A decrease of $896,000 in interest income was
partially offset by a $631,000 decrease in interest expense. The decrease in
interest income was the result of a $21.0 million decrease in the average
balance of loans, a decrease in the average rate earned on loans from 4.89%
for the nine months ended March 31, 2013 to 4.78% for the nine months ended
March 31, 2014, and a decrease in the average rate earned on investments from
1.74% for the nine months ended March 31, 2013 to 1.51% for the nine months
ended March 31, 2014, partially offset by a $33.6 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 0.77% for the nine months ended March 31, 2013 to 0.58% for the
nine months ended March 31, 2014. Changes in interest rates are reflective of
decreases in overall market rates.

The recovery of loan losses was $292,000 for the nine months ended March 31,
2014, compared to a provision for loan losses of $585,000 for the same period
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 during the nine months ended March 31, 2014.
The decrease in the provision for loan losses is also reflective of continued
improvement in our asset quality. Nonperforming assets as a percentage of
total assets decreased from 2.79% at March 31, 2013 to 2.48% at March 31,
2014.

Other income decreased $433,000, or 12.8%, to $3.0 million for the nine months
ended March 31, 2014 compared to $3.4 million for the prior year period. The
decrease is primarily due to a $553,000 decrease in gain on sale of
investments and a $527,000 decrease in gain on sale of loans, partially offset
by a $276,000 increase in other income and a $136,000 increase in gain on sale
of fixed assets. The decrease in gain on sale of investments is due to the
sale of mortgage-backed securities and other available for sale securities in
the nine months ended March 31, 2013 with no such sales in the current year
period. The decrease in gain on sale of loans is the result of a higher level
of refinancing activity during the nine months ended March 31, 2013 as
compared to the current year period due to higher loan rates in the current
year period and due to the Bank's decision to hold fifteen year fixed-rate
loans in its loan portfolio during the current year period. The increase in
gain on sale of fixed assets was the result of the sale of our Osgood branch
facility during the nine months ended March 31, 2014. The increase in other
income is primarily due to an increase in the value of mortgage servicing
rights during the nine months ended March 31, 2014. The increase in income
from mortgage servicing rights is primarily due to the decrease during the
nine month period in the prepayment of mortgages as compared to the prepayment
of mortgages during the prior nine month period. 

Noninterest expense decreased $266,000 to $9.9 million for the nine months
ended March 31, 2014 compared to $10.2 million for the prior year period.
Decreases of $134,000 in premises and occupancy expense, $119,000 in deposit
insurance premium and $104,000 in provision for loss on real estate owned were
partially offset by increases of $113,000 in professional fees and $108,000 in
other operating expenses. The decrease in premises and occupancy expense was
primarily the result of non-recurring expenses for data processing upgrades in
the prior year period. The decrease in provision for loss on real estate
owned is due to write-downs on two commercial OREO properties in the prior
year period with no such write-downs during the nine months ended March 31,
2014. The increase in professional fees is primarily the result of acquiring
outside resources for internal audit and planning in the current year. The
increase in other operating expenses is primarily the result of a short-term
loan-related promotion during the current year period.

Total assets were $525.8 million at March 31, 2014, compared to $512.6 million
at June 30, 2013. An $11.0 million increase in cash and cash equivalents and
a $7.6 million increase in investment securities were partially offset by an
$8.4 million decrease in loans. The increase in cash and cash equivalents and
investment securities was the result of the payoff of loans with a portion of
the proceeds being redeployed into purchases of mortgage-backed securities and
available for sale securities. The decrease in loans was primarily the result
of net payoffs totaling $5.8 million in one- to four-family real estate loans
and $2.3 million in commercial real estate loans during the nine months ended
March 31, 2014.

Total liabilities were $452.0 million at March 31, 2014, compared to $439.1
million at June 30, 2013. The increase in liabilities was the result of a
$12.9 million increase in deposits. The increase in deposits is primarily due
to an increase in municipal deposits resulting from normal fluctuations in
municipal deposits.

Total stockholders' equity was $73.8 million at March 31, 2014, compared to
$73.5 million at June 30, 2013. Net income of $1.9 million for the nine
months ended March 31, 2014 and amortization of ESOP shares totaling $308,000
for the same period were offset by stock repurchases totaling $1.2 million and
dividends paid of $812,000. At March 31, 2014, 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: William F. Ritzmann, President and Chief Executive Officer, United
Community Bancorp,(812) 537-4822
 
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