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United Community Financial Corp. in Youngstown, Ohio reported a fourth-quarter profit of $7.9 million, compared with a loss of $17.3 million a year earlier, after selling four branches.
March 16
United Community Financial (UCFC) of Youngstown, Ohio, will once again raise fresh capital to meet the requirements of a regulatory order.
The $2 billion-asset company's bank, the Home Savings and Loan Co., entered into a consent order with the Federal Deposit Insurance Corp. and the Ohio Division of Financial Institutions after the regulators
The consent order requires the bank to maintain a Tier 1 leverage ratio of 9%, up from 8% under the cease and desist order, and a total risk-based capital ratio of 12%, which is unchanged from the previous order, United Community said Tuesday. At Dec. 31, the bank had a Tier 1 leverage ratio of 8.61% and a total risk-based capital ratio of 14.57%.
United Community did not specify how it will raise capital but said it will make further announcements in the coming months. In the past, the company raised funds by
Home Savings will prepare a revised capital plan that complies with the new capital requirements, United Community said. For the past two years, United Community has filed a capital plan with regulators. The company also postponed its annual shareholder meeting until the summer in order to pursue its capital plan.
United Community said that the majority of the capital it raises will be contributed to Home Savings, which will use the funds to dispose of nonperforming loans and real estate owned to meet the requirements. The remainder of the funds will be used for general corporate purposes.
United Community returned to profitability in 2011 after losses for three straight years. It reported in March that fourth-quarter income totaled $7.9 million, compared with a loss of $17.3 million a year earlier. For 2011, it earned $230,000, compared a loss of $37.3 million in 2010.