Home Savings reports strong fourth quarter results

Staff report

YOUNGSTOWN

United Community Financial Corp., parent company of the Home Savings and Loan Co., reported a year-over-year increase in net income for the fourth quarter of 2015 that totaled $4.3 million, or $0.09 per diluted common share.

This is compared with the report of $2.8 million, or $0.06 per diluted common share for the quarter ending Dec. 31, 2014.

Net income for the 12 months that ended Dec. 31, 2015, totaled $16.3 million, or $0.34 per diluted common share compared with $50.2 million or $1 per diluted common share – $10.5 million, or $0.20 per diluted share adjusted for the recognition of $39.7 million of income tax benefit from the reversal of a deferred tax asset valuation reserve – for the 12 months that ended Dec. 31, 2014.

“Strong performance in the fourth quarter closes out an excellent year for the organization,” said Gary M. Small, president and chief executive officer of the company and Home Savings. “The organization is very well-positioned heading into 2016.”

Net interest income on a fully taxable equivalent basis was $14.5 million in the fourth quarter of 2015, up from the $13.4 million recorded in the fourth quarter of 2014 and the $14.3 million recorded in the third quarter of 2015.

Home Savings recognized a provision for loan losses of $893,000 in the fourth quarter of 2015 compared with a provision of $194,000 in the fourth quarter of 2014, and a provision of $673,000 in the previous quarter. Provision expense continues to be driven primarily by strong loan growth.

Noninterest income was $5.5 million in the fourth quarter of 2015 compared with $2.9 million in the fourth quarter of 2014, and up from $4.9 million in the previous quarter.

Noninterest expense was $12.8 million for the fourth quarter of 2015 compared with $13.9 million for the fourth quarter of 2014, a decrease of $1.2 million.

Total outstanding loans, net of allowance for loan losses and including loans held for sale, increased $183.2 million, or 15.7 percent to $1.4 billion at Dec. 31, 2015, compared with Dec. 31, 2014.

Driving the growth in loans was an increase of $116.8 million, or 46.2 percent, in commercial loans during 2015. Residential loans, including residential loans held for sale, increased 7.8 percent, or $58.4 million during 2015.

Total deposits increased $87.9 million, or 6.5 percent, to $1.4 billion at Dec. 31, 2015, compared with $1.3 billion at Dec. 31, 2014.

The board of directors declared a quarterly cash dividend of $0.025 per common share payable Feb. 19 to shareholders of record at the close of business Feb. 8.

On Monday, Home Savings announced the purchase of James & Sons Insurance Co. of Boardman. James & Sons is engaged in the business of selling auto, commercial, homeowners and life-health insurance. Completion of the transaction is anticipated in the first quarter of this year.