YOUNGSTOWN - United Community Financial Corp., the holding company of Youngstown-based Home Savings and Loan Co., has completed the bulk sale of troubled loans, along with other assets, to an unrelated party.
Assets with a book balance of $114.8 million were sold. The Home Savings board of directors approved the transaction Wednesday, and the deal was completed Friday, according to a media release from the company.
Home Savings has now exceeded the asset quality targets set forth in its recent consent order that required the bank to reduce total adversely classified assets to a level of $219.2 million by the end of this month and $146 million by March 31.
Home Savings will record a loss on the transaction of $29.4 million, which, along with certain other transaction-related expenses, will be reflected in third quarter results.
Patrick W. Bevack, president and CEO of United Community and Home Savings, said, "This represents an enormous step forward for the company. ... We have achieved a substantial improvement in our asset quality and a dramatic reduction in our risk profile, and have met our regulatory asset quality targets well ahead of schedule."