United Financial (NASDAQ:UBMT)
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United Financial Corp. Announces September 30, 2004 Earnings;
Declares Quarterly Dividend
HIGHLIGHTS: Assets increase 11% over last year period; YTD Net interest income
up over 10%; Loans up 15% over year ago period
GREAT FALLS, Mont., Oct. 28 /PRNewswire-FirstCall/ -- United Financial Corp.
("United") (NASDAQ:UBMT) today reported net income for the quarter ended
September 30, 2004 of $1,014,016, or $.42 basic and $.40 diluted earnings per
share, compared to $1,733,883, or $.71 basic and $.69 diluted earnings per
share, for the same quarter in 2003. Included in 2003 earnings was a $.30
basic per share gain on the sale of United's Valley Bancorp subsidiary in
Phoenix, Arizona. Income from continuing operations in 2003 was $1,011,119, or
$.41 basic and $.40 diluted earnings per share. Net income for the nine-month
period ended September 30, 2004 was $2,933,974 or $1.21 basic and $1.17 diluted
earnings per share, compared to net income of $3,859,807 or $1.58 basic and
$1.54 diluted earnings per share at September 30, 2003.
Included in the nine month period ended September 30, 2003 is $890,716 of
income from discontinued operations or $.36 basis earnings per share. Income
from continuing operations for the nine months ended September 30, 2003 was
$2,969,091, or $1.22 basic and $1.18 diluted earnings per share.
Net interest income rose to $3.4 million in the quarter ended September 30,
2004, compared to $3.0 million for the quarter ended September 30, 2003.
United's shareholders' equity was $30.4 million at September 30, 2004, compared
to $32.3 million at September 30, 2003, and book value per share was $12.47.
Outstanding shares at September 30, 2004 were 2,436,475.
United declared a cash dividend of $.27 per share to shareholders of record on
November 17, 2004, payable on December 1, 2004. The annual regular dividend of
$1.08 (excluding the special one-time dividend of $1.00 per share declared in
April 2004) represents a 4.50% annual yield based on a stock price of $24.00.
Chairman and CEO, Kurt Weise said, "Our strong performance for the quarter was
driven by increased net interest income and very good asset quality. Given the
significant drop in mortgage refinancing fees, we are quite pleased with our
earnings for the quarter. Our excellent staff, including those in our newest
office in Billings, continue to build strong customer relationships which will
benefit our franchise in the long run."
United's net interest income as a percentage of average earning assets
increased to 4.35% in the third quarter of 2004 compared to 3.98% in the same
quarter in 2003. United's subsidiary, Heritage Bank, originated $172 million
in real estate loans in the first 9 months of 2004 compared to $267 million in
real estate loans in the first nine months of 2003. Non-performing loans
totaled $.6 million at September 30, 2004, compared to $.4 million at December
31, 2003. United's 90 days past due and non-accrual loans totaled .22% of
total loans as of September 30, 2004, compared to its June 30, 2004 peer of
.66%, the most recent peer information available. Management estimates the
cost of operations at the new Billings office has reduced earnings by
approximately $.08 per share in the first nine months of 2004.
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, 2003 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,
2004 2003 2004 2003
Income statement amounts
Net interest income $3,396 $2,980 $9,675 8,786
Provision for losses on loans - 128 70 703
Noninterest income
Investment securities gains - - 213 18
Gain on the sale of loans 747 1,332 1,886 4,087
Other 412 424 1,211 1,029
Noninterest expense 2,927 3,159 8,208 8,627
Earnings before income taxes
and discontinued operations 1,628 1,449 4,707 4,590
Income taxes 614 438 1,773 1,621
Discontinued operations - 723 - 891
Net earnings 1,014 1,734 2,934 3,860
Per common share data
Net earnings - continuing
operations
- basic $0.42 0.41 1.21 1.22
- diluted 0.40 0.40 1.17 1.18
Net earnings - discontinued
operations
- basic - 0.30 - 0.36
- diluted - 0.29 - 0.36
Cash dividends 0.27 0.27 1.81 0.63
Book value 12.47 13.22
Balances at end of period
Loans, gross $265,870 225,860
Allowance for losses on loans 3,733 3,694
Nonperforming assets
Nonaccrual loans 348 479
Foreclosed properties 654 716
Available for sale investment
securities 35,497 39,393
Total assets 341,590 307,009
Goodwill and Identifiable
Intangible Assets 1,422 1,422
Total deposits 249,249 228,526
Total stockholders' equity 30,375 32,273
Other supplemental information
Net earnings
Return on average assets 1.03% 1.65%
Return on average
common equity 12.64% 16.42%
Allowance for loan losses
to loans 1.40% 1.64%
Common shares outstanding
(end of period, in
thousands) 2,436 2,442
Net interest margin 4.22% 4.01%
Shareholders' equity
to total assets (excluding
trust preferred stock) 8.89% 10.51%
Dividend payout ratio 149.59% 39.87%
DATASOURCE: United Financial Corp.
CONTACT: Kurt R. Weise, Chairman & CEO of United Financial Corp.,
+1-763-512-5299