Profile: United Community Bancorp Inc (UCBA.O)
24 Oct 2014
United Community Bancorp is a mutual holding company. United Community Bancorp’s business activities consist of the ownership of the outstanding capital stock of United Community Bank (the Bank) and management of the investment of offering proceeds retained from the Reorganization. United Community Bancorp neither owns nor leases any property, but instead, uses the premises, equipment and other property of United Community Bank. United Community MHC is a federally chartered mutual holding company parent. United Community MHC does not engage in any business activity other than owning a majority of the common stock of United Community Bancorp. United Community Bank is a federally chartered savings bank. United Community MHC is also a savings and loan holding company.
As of June 30, 2012, the Company had approximately $495.9 million in assets and $427 million in deposits. It operates as a community-oriented financial institution offering a menu of banking services and products to consumers and businesses in our market areas. It attract deposits from the general public and local municipalities and use those funds to originate one-to four-family real estate, multi-family and nonresidential real estate and land, construction, commercial and consumer loans. It also maintains an investment portfolio. We offer non-deposit investment products through a third-party network arrangement with a registered broker-dealer.
The Bank originates loans for investment purposes. Its primary lending activity is the origination of one-to four-family mortgage loans secured by homes in its local market area, particularly in Dearborn, Ripley, Franklin, Ohio and Switzerland Counties, Indiana. It offer mortgage loans to enable borrowers to purchase or refinance existing homes, most of which serve as the primary residence of the owner. It offer fixed-rate and adjustable-rate loans with terms up to 30 years. It offers adjustable-rate mortgage loans secured by multi-family real estate. Its multi-family real estate loans are secured by apartment buildings within and outside its primary market area. As of June 30, 2012, approximately 76.7% of its multi-family real estate loans were secured by properties located outside of Dearborn, Ripley, Franklin, Ohio and Switzerland Counties, Indiana, 70.9% of which were in the Cincinnati and northern Kentucky markets. As of June 30, 2012, it had $42.3 million in multi-family real estate loans outstanding, or 14.7% of total loans.
The Company offer adjustable-rate mortgage loans secured by nonresidential real estate. Its nonresidential real estate loans are generally secured by commercial buildings. It originates adjustable-rate nonresidential real estate loans with terms up to 30 years. It also originates loans secured by unimproved property, including lots for single-family homes and for mobile homes, raw land, commercial property and agricultural property. As of June 30, 2012, it had $59.1 million in nonresidential real estate loans outstanding, or 20.5% of total loans. It originates fixed-rate and adjustable-rate loans to individuals and, to a lesser extent, builders to finance the construction of residential dwellings. It also make construction loans for commercial development projects, including apartment buildings, restaurants, shopping centers and owner-occupied properties used for businesses. Its construction loans provide for the payment of interest only during the construction phase, which are nine months for residential properties and 12 months for commercial properties. As of June 30, 2012, its outstanding residential construction loan was for $264,000. As of June 30, 2012, it had $1.2 million of construction loans or 0.4% of total loans.
The Company makes commercial business loans to professionals, sole proprietorships and small businesses in its market area. It originates secured and unsecured commercial lines of credit to finance the working capital needs of businesses to be repaid by seasonal cash flows. Commercial lines of credit secured by nonresidential real estate have a maximum term of five years and a maximum loan-to-value ratio of 80% of the pledged collateral. It also originates commercial lines of credit secured by marketable securities and unsecured lines of credit. It also originates secured and unsecured commercial loans. Secured commercial loans are collateralized by nonresidential real estate, marketable securities, accounts receivable, inventory, industrial/commercial machinery and equipment and furniture and fixtures. It originates both fixed-rate and adjustable-rate commercial loans with terms up to 20 years for secured loans and up to five years for unsecured loans. As of June 30, 2012, its commercial loan was a $570,000 loan secured by the assets of a private utility company. As of June 30, 2012, it had $3.9 million of commercial loans outstanding or 1.3% of total loans.
The Company offers a variety of consumer loans, primarily home equity loans and lines of credit, and, to a much lesser extent, loans secured by savings accounts or certificates of deposit (share loans), new farm and garden equipment, new and used automobiles, recreational vehicle loans and secured and unsecured personal loans. It offer home equity loans and lines of credit with a maximum combined loan to value ratio of 90%. It offer loans secured by new and used boats, motor homes, campers and motorcycles. It offers fixed and adjustable-rate loans for new motor homes and boats with terms up to 10 years for adjustable-rate loans and up to 10 years for fixed-rate loans. It offers fixed-rate loans for all other new and used recreational vehicles with terms up to 10 years for campers and five years for motorcycles. Its agricultural loans generally consist of short and medium-term loans and lines of credit that are primarily used for crops, livestock, equipment and general operations. As of June 30, 2012, it had $3.2 million of agricultural loans outstanding or 1.1% of total loans.
The Bank has legal authority to invest in a range of liquid assets, including the United States Treasury obligations, securities of various federal agencies and municipal governments, deposits at the Federal Home Loan Bank of Indianapolis and certificates of deposit of federally insured institutions. As of June 30, 2012, its investment portfolio totaled $146.4 million and consisted primarily of municipal bonds and mortgage-backed securities issued primarily by Fannie Mae and Freddie Mac. As of June 30, 2012, $13.4 million of its investment portfolio consisted of callable securities. These securities were included in municipal bonds. These securities contain either a one-time call option or may be called any time after the first call date.
Deposit Activities and Other Sources of Funds
Deposits, borrowings and loan repayments are the major sources of our funds for lending and other investment purposes. Substantially all of its depositors are residents of the State of Indiana. It offers a selection of deposit instruments, including noninterest-bearing demand accounts (such as checking accounts), interest-bearing accounts (such as interest-bearing checking and money market accounts), regular savings accounts and certificates of deposit. As of June 30, 2012, $103.1 million, or 24.1% of its total deposits, were municipal deposits. It may utilize advances from the Federal Home Loan Bank of Indianapolis to supplement its supply of investable funds.
United Community Bank has two subsidiaries: United Community Bank Financial Services, Inc. and UCB Real Estate Management Holdings, LLC. United Community Bank Financial Services, Inc. receives commissions from the sale of non-deposit investment and insurance products. UCB Real Estate Management Holdings, LLC owns and operates real estate that has been acquired through, or in lieu of, foreclosure.
The Bank competes with Fifth Third Bancorp and U.S. Bancorp.
United Community Bancorp Inc
92 Walnut St
LAWRENCEBURG IN 47025-1836