United Community Financial Corp. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2017; Provides Earnings Guidance for the Full Year 2017
July 18, 2017 at 04:10 pm EDT
United Community Financial Corp. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported net interest income of $20,494,000 against $15,334,000 a year ago, The increase in net interest income was primarily due to yield earned on loans was 4.30%, or 19 basis points higher than the prior quarter and 16 basis points higher than the same quarter last year while cost of deposits only increased 5 basis points to 0.42% from the quarter ended March 31, 2017 and 1 basis point from the quarter ended June 30, 2016. Income before income taxes was $11,795,000 against $8,046,000 a year ago. Net income was $8,189,000 or $0.163 diluted per share against $5,330,000 or $0.112 diluted per share a year ago. The increase in net interest income was primarily due to yield earned on loans was 4.30%, or 19 basis points higher than the prior quarter and 16 basis points higher than the same quarter last year while cost of deposits only increased 5 basis points to 0.42% from the quarter ended March 31, 2017 and 1 basis point from the quarter ended June 30, 2016. ROA was 1.27%. Return on tangible equity was 12.66%.
For the six months, the company reported net interest income of $38,970,000 against $30,207,000 a year ago. Income before income taxes was $14,127,000 against $13,053,000 a year ago. Net income was $9,727,000 or $0.196 diluted per share against $8,650,000 or $0.182 basic and diluted per share a year ago. Book value per common share as on June 30, 2017 was $5.74 against $5.46 as at June 30, 2016. Tangible book value per common share as on June 30, 2017 was $5.27 against $5.43 as at June 30, 2016. Return on average assets was 1.27% against 1.04% a year ago. Return on average equity was 11.60% against 8.63% a year ago. The decline in tangible book value per common share was primarily due to the acquisition of Premier.
The company's effective tax rate for a full year 2017 is expected to be 32% on a full taxable-equivalent basis, and about 30% on a GAAP basis.