United Financial (NASDAQ:UBMT)
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United Financial Corp. Announces Fourth Quarter and Record 2003 Earnings
HIGHLIGHTS: 60% Increase in EPS in 2003 over 2002; Net interest income up 13% in
2003 over 2002; Real estate origination tops $300 million; Q4 EPS up 21% in 2003
over Q4 2002.
GREAT FALLS, Mont., Feb. 20 /PRNewswire-FirstCall/ -- United Financial Corp.
("United") today reported net income for the year ended December 31, 2003 of
$4,720,001, or basic earnings per share of $1.93, compared to $2,955,255, or
basic earnings per share of $1.21 for the same period in 2002. Fully diluted
earnings per share were $1.88 and $1.20 for 2003 and 2002, respectively. For
the quarter ended December 31, 2003, net income was $860,194, or basic and
diluted earnings per share of $.35 and $.34, respectively, compared with
$710,489, or basic and diluted earnings per share of $.29 and $.28,
respectively, for the same quarter in 2002. Included in 2003 earnings is a gain
on the sale of United's 62% interest in Valley Bancorp, a bank holding company
in Phoenix Arizona. The income from discontinued operations, relating to Valley
Bancorp, amounted to $.36 basic and $.35 fully diluted earnings per share in
2003, and $.16 basic and fully diluted earnings per share in 2002.
United's assets at December 31, 2003 were $305 million compared to $304 million
at December 31, 2002, excluding Valley Bancorp, which was sold in July 2003.
Net loans increased to $227 million at December 31, 2003 from $211 million a
year ago and deposits increased to $228 million at December 31, 2003 compared to
$225 million a year ago, excluding the effects of the Valley sale. Net interest
income rose to $11.4 million for the year ended December 31, 2003 compared to
$10.0 million for the same period one year ago. United's shareholders' equity
was $32.4 million at December 31, 2003, and book value per share was $13.29.
The weighted average number of shares outstanding for 2003 were 2,440,144
compared to 2,439,093 for 2002.
President and CEO Kurt Weise said, "2003 was a record year for United. Our asset
quality is good and our reserve for loan losses is strong. We enter 2004 with
strong capital ratios and are excited about our new office in Billings, Montana
which opened February 17, 2004. We believe 2004 earnings will be impacted by a
substantial drop in fees from mortgage refinancing and startup costs associated
with our Billings office."
United's net interest margin increased to 3.87% in 2003 compared to 3.47% in
2002. United also originated over $300 million in real estate loans in 2003, a
record for the company. Non-performing loans totaled $.8 million at December
31, 2003 compared to $.6 million in 2002, excluding Valley.
Forward-Looking Statements
When used in this press release, the words or phrases 'will likely result in',
'are expected to', 'will continue', 'is anticipated', 'estimate', 'could', or
'project' or similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from historical earnings
and those presently anticipated or projected including general economic
conditions, business conditions in the banking industry, the regulatory
environment, new legislation, vendor quality and efficiency, employee retention
factors, rapidly changing technology and evolving banking industry standards,
competitive standards, competitive factors including increased competition among
financial institutions and fluctuating interest rate environments. Readers are
cautioned not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. Readers shouldalso carefully review the
risk factors described in the company's most recent quarterly report on Form
10-Q for the period ending September 30, 2003, its Annual Report on Form 10-K
for the period ending December 31, 2002 and other documents the companyfiles
from time to time with the Securities and Exchange Commission.
United Financial Corp. is a bank holding company based in Great Falls, Montana,
and is the parent of Heritage Bank, with fifteen locations in Montana.
United Financial Corp.
Financial Highlights (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Income statement amounts
Net interest income $2,924 $2,299 $11,371 10,035
Provision for losses on loans 76 270 778 1,115
Noninterest income
Investment securities gains - - 18 1
Gain on the sale of loans 862 1,336 5,287 3,792
Other 332 276 1,361 1,151
Noninterest expense 2,865 2,666 11,492 9,747
Earnings from continuing
operations before income taxes 1,177 975 5,767 4,117
Income taxes 317 378 1,938 1,562
Discontinuedoperations - 113 891 400
Net earnings 860 710 4,720 2,955
Per common share data
Net earnings - continuing
operations
- basic $0.35 0.24 1.57 1.05
- diluted 0.34 0.23 1.53 1.04
Net earnings - discontinued
operations
- basic - 0.05 0.36 0.16
- diluted - 0.05 0.35 0.16
Cash dividends 0.27 0.17 0.89 0.66
Book value 13.29 12.49
Balances at end of period
(excluding Valley)
Loans, gross 230,934 214,463
Allowance for losses on loans 3,755 3,113
Nonperforming assets
Nonperforming loans 822 638
Foreclosed properties 530 567
Available for sale investment
securities 43,279 43,526
Total assets 304,724 377,980
Goodwill and Identifiable
Intangible Assets 1,422 3,429
Total deposits 227,514 225,230
Total stockholders' equity 32,381 30,476
Other supplemental information
Net earnings
Return on average assets 1.51% 0.95%
Return on average
common equity 14.96% 10.06%
Allowance for loan losses
to loans 1.63% 1.45%
Common shares outstanding
(end of period, in
thousands) 2,437 2,439
Net interest margin 3.87% 3.47%
Shareholders' equity
to total assets (excluding
trust preferred stock) 10.63% 8.06%
Dividend payout ratio 46.23% 54.30%
DATASOURCE: United Financial Corp.
CONTACT: Kurt R. Weise, Chairman & CEO of United Financial Corp.,
+1-763-512-5299