United Community Reports Net Income / Trends 'Encouraging'
That compared to a $1.3 million loss for the third quarter of 1986.
The company's improvement was primarily the result of a 60.1 percent decline in the provision for loan losses to $1.8 million for the quarter, compared to $4.6 million for the third quarter last year, the company said.
"We continue to be encouraged by the trends in our non-performing assets and loss provision," said David Rainbolt, chief financial officer of the company. "However, there has been little improvement in loan demand, and the generation of earning assets is an essential ingredient if we are to achieve high performance earnings."
Net income for the first nine months was $741,000, a 7.3 percent decline from $800,000 for the same period last year.
The provision for loan losses for the year-to-date was $4.2 million, down 51.3 percent from $8.6 million for 1986.
"Our current profitability is largely the result of cost cutting measures implemented last year," Rainbolt said. "We are anticipating similar contributions to the bottom line from Unitech and our bank acquisitions during fiscal year 1988."
In July, United Community announced its joint venture with MTech, the nation's largest data processor of financial institutions, to form Unitech Inc., which will provide check processing services to financial institutions in the state through its facility in Oklahoma City.
Unitech will eventually employ approximately 50 persons and is scheduled to commence operations in early November.
United Community also expects to receive Federal Reserve approval in the fourth quarter for its pending acquisition of four Oklahoma banks. The mergers will increase the company's total number of bank subsidiaries from eight to 12, making it the largest bank holding company in Oklahoma in terms of number of bank subsidiaries. …