Youngstown, Ohio-based United Community Financial Corp. reported a $2 million third-quarter loss after contributing $11.8 million of stock to its charitable foundation.
United Community, the holding company for $1.2 billion-asset Home Savings and Loan Company of Youngstown, bought the stock for its seven- year-old foundation in July, when United went public. The contribution will let the thrift boost its donations to local not-for-profit groups, said Douglas M. McKay, United Community's president. He said that in the initial public offering, "we made it clear that we were going to do this." He added, "We had a few questions (from investors), but everyone thought it was the right thing to do."
The one-time donation also means that United Community's earnings will never again be hit by charitable giving because all corporate gifts will come from the foundation, Mr. McKay said.