Saturday, September 29, 2012
Staff Report
Youngstown
United Community Financial Corp. announced early this week that its subsidiary, the Home Savings and Loan Co., has completed the sale of $114.8 million in troubled loans to an undisclosed third party.
Though Home Savings is now absolved of the troubled assets, it will take a loss of $29.4 million after the sale, which will appear in its third-quarter report, expected sometime in the coming months.
Like other banks, Home Savings’ loan portfolio was troubled as early as 2008 and its return to profitability was followed closely by regulators.
The sale of the troubled assets was approved by the board of directors and hailed as a move forward for the company. After the sale, Home Savings’ total portfolio of troubled loans stands at $85 million.