Home Savings posts 4Q, and yearly earnings increase

January 25, 2017 at 12:00a.m.

YOUNGSTOWN

The health of the Mahoning Valley reflects on its businesses. From the looks of Home Savings and Loan Co.’s earnings, the Valley is healthy.

United Community Financial Corp., the holding company of Youngstown’s Home Savings and Loan, on Tuesday reported fourth-quarter net income of $5 million, a 16.1 percent increase from the $4.3 million reported during the fourth quarter of 2015. For the year, net income was reported at $18.8 million, up 15.6 percent from the $16.3 million reported in 2015.

“We were very pleased [with the earnings],” said Gary Small, president and chief executive officer of Home Savings and Loan Co. “I think [they] speak well for the Valley. We are very engaged across the Valley through the [Home Savings and Loan Charitable] foundation and the engagement of our team.”

Small said the bank originated more than $900 million in loans and delivered strong loan growth in both commercial and consumer business segments. Commercial loan production totaled $308.7 million for 2016, a 35.8 percent increase over 2015. Total residential loan production increased 28.5 percent over 2015.

Consumer loan balances increased $28.3 million, or 15.1 percent to $216.6 million in 2016. Consumer loan production increased 21.9 percent, mostly from the auto loan production of $35.6 million during 2016.

In 2016, Home Savings made its first acquisition of a bank since 2002. The acquisition of Ohio Legacy Corp., parent company of Premier Bank and Trust, is valued at $40.3 million. The last acquisition for UCFC was made in 2002 with Potters National Bank.

The acquisition, once complete at the end of January, will bring Home Savings to 35 locations. Home Savings has gone from a $1.6 billion institution in 2014 to a $2.6 billion institution this year.

Small said the acquisition of Legacy/Premier will give the bank a presence in the Akron/Canton market, larger lending opportunities and a trust and wealth management business that Home Savings doesn’t have now.

“We have had a lot of organic growth over the last three years,” Small said. “We see a continued success that we have had through 2017.”