The company has reported a loss of $4.3 million
United Community Financial, the holding company of The Home Savings and Loan Company and Butler Wick, has reported a loss from continuing operations of $4.3 million, or $0.15 per diluted share, for the fourth quarter ended December 31, 2008, compared to a loss from continuing operations of $7.7 million, or $0.26 per diluted share, for the same quarter of 2007.
The loss in the fourth quarter of 2008 was primarily the result of provisions for loan losses, as Home Savings set aside $10.6 million against probable losses. Net interest income was $18.6 million for the fourth quarter of 2008, compared to $17.9 million for the fourth quarter of 2007.
For the year ended December 31, 2008, the company reported a loss from continuing operations of $37.2 million, or $1.26 per diluted share, compared to an income from continuing operations of $1.7 million, or $0.06 per diluted share, for 2007. Net interest income for 2008 was $73.3 million, an increase of $550,000, compared to $72.7 million for 2007.
Douglas McKay, chairman and CEO of United Community Financial, said: We accomplished three important strategic objectives in the fourth quarter. We negotiated favourable terms on the Butler Wick sale, reduced outstanding debt and met the increased capital requirements set by bank regulators.
Nevertheless, economic conditions facing banks like ours continue to be challenging, including declining real estate collateral valuations and difficulties in the housing sector in general. As a result, we have increased our provision for loan losses in order to more ably weather the current economic storm.