United Financial (NASDAQ:UBMT)
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United Financial Corp. Announces September 30, 2003 Earnings; Declares Quarterly
Dividend
HIGHLIGHTS: YTD 69% Increase in diluted EPS in 2003 over 2002; YTD Net interest
income up over 9%; Net Loan charge offs drop 84% in 2003 vs. 2002
GREAT FALLS, Mont., Oct. 29 /PRNewswire-FirstCall/ -- United Financial Corp.
("United") today reported net income for the quarter ended September 30, 2003
of $1,733,883, or $.71 basic and $.69 diluted earnings per share, compared to
$766,033, or basic and diluted earnings per share of $.31, for the same quarter
in 2002. Net income for the nine-month period ended September 30, 2003 was
$3,859,807 or $1.58 basic and $1.54 diluted earnings per share, compared to
$2,245,766, or basic and diluted earnings per share of $.92 and $.91,
respectively, in the same period a year ago.
Included in the quarter ended September 30, 2003 net income is an after tax gain
of $723,000, or $.29 per diluted share on the sale of United's Valley Bancorp
subsidiary, which was based in Phoenix, Arizona. Valley was sold to Marquette
Financial on July 31, 2003. United received approximately $9 million cash for
its 62% interest in Valley.
Net interest income rose to $2.8 million in the quarter ended September 30,
2003, compared to $2.7 million for the quarter ended September 30, 2002.
United's shareholders' equity was $32.3 million at September 30, 2003, compared
to $30.2 million at September 30, 2002, and book value per share was $13.22.
Outstanding shares at September 30, 2003 were 2,441,810.
United declared a cash dividend of $.27 per share to shareholders of record on
November 17, 2003, payable on December 1, 2003. The annual dividend of $1.08
represents a 4.53% annual yield based on a stock price of $23.84.
Chairman and CEO, Kurt Weise said, "Our strong performance for the quarter was
driven by fee income from mortgage origination. While our volume of originations
for the quarter was down 12% on a sequential basis, we are up 65% year to date.
I am very pleased with our asset quality as evidenced by our reduction in
charged off loans, and our strong Allowance for Loan Losses. Furthermore, our
entry into the Billings, Montana market later this year will give us great
momentum entering 2004."
United's net interest income as a percentage of average earning assets increased
to 3.86 % in the third quarter of 2003 compared to 3.56 % in the same quarter in
2002. United's subsidiary, Heritage Bank, originated $267 million in real
estate loans in the first 9 months of 2003 compared to $142 million in real
estate loans in the first nine months of 2002. Non-performing loans totaled
$1.0 million at September 30, 2003, compared to $.9 at December 31, 2002.
United's 90 days past due and non-accrual loans totaled .46 % of total loans as
of September 30, 2003, compared to its June 30, 2003 peer of .80 %, the most
recent peer information available. Net charge-offs for the first 9 months of
2003 were $121,794, compared to $774,535 for the same 9 months in 2002, a
reduction of 84%.
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 should also carefully review the
risk factors described in the company's most recent Annual Report on Form 10-K
for the period ending December 31, 2002 and other documents the company files
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 Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Income statement amounts
Net interest income $2,828 $2,684 $8,448 7,736
Provision for losses on loans 128 425 703 845
Noninterest income
Investment securities gains - 1 18 1
Gain on the sale of loans 1,484 1,085 4,425 2,456
Other 424 306 1,029 875
Noninterest expense 3,159 2,571 8,627 7,081
Earnings before income taxes
and discontinued operations 1,449 1,080 4,590 3,142
Income taxes 438 414 1,621 1,184
Discontinued operations 723 100 891 287
Net earnings 1,734 766 3,860 2,245
Per common share data
Net earnings
- basic $0.71 0.31 1.58 0.92
- diluted 0.69 0.31 1.54 0.91
Cash dividends 0.27 0.17 0.62 0.49
Book value 13.22 12.37
Balances at end of period
(excluding Valley)
Loans, gross 225,860 210,318
Allowance for losses on loans 3,694 2,864
Nonperforming assets
Nonaccrual loans 479 97
Foreclosed properties 716 538
Available for sale investment securities 39,393 47,341
Total assets 307,009 309,885
Goodwill and Identifiable Intangible Assets 1,422 3,429
Total deposits 228,526 224,213
Total stockholders' equity 32,273 30,180
Other supplemental information
Net earnings
Return on average assets 1.65% 0.97%
Return on average common equity 16.42% 10.28%
Allowance for loan losses to loans 1.64% 1.36%
Common shares outstanding (end of period,
in thousands) 2,442 2,439
Net interest margin 3.86% 3.56%
Shareholders' equity to total assets
(excluding trust preferred stock) 10.51% 9.74%
Dividend payout ratio 39.41% 53.34%
DATASOURCE: United Financial Corp.
CONTACT: Kurt R. Weise, Chairman & CEO of United Financial Corp.,
+1-763-512-5299