UCFC explains lower earnings

YOUNGSTOWN -- The parent company of Home Savings and Loan Co. blamed lower first-quarter earnings on a drop in interest income and delinquent loans.
"We will continue to address these challenges to meet our goals for 2007," said Douglas McKay, chairman and chief executive of United Community Financial Corp.
The Youngstown-based company said Wednesday that it earned 4.7 million, or 16 cents a share, in the first quarter, compared with 6.1 million, or 21 cents a share, in the same quarter last year.
UCFC set aside 2.3 million for loan losses in the first quarter of this year, compared with 738,000 in the first three months of 2006.
It said the provision for loan losses had to be increased because of the status of loans with two commercial clients. UCFC considers these loans "impaired" and said they will be monitored for any additional deterioration.
The customers were not identified, but the UCFC said the loans were secured with marine-related assets.
Also hurting UCFC was a decline in interest income, which totaled 19.4 million last quarter. That was down from 20.7 million in the first quarter of 2006.
UCFC also is the parent company of Butler Wick Corp., a Youngstown-based stock brokerage. UCFC is holding its annual shareholders meeting at 10 a.m. today at Mr. Anthony's in Boardman.