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Section 1: 11-K (11-K)

Document

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 11-K

(Mark One)

X
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

OR

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission file number 001-35028

A.
Full title of the plan and the address of the plan, if different from that of the issuer named below:


THE UNITED BANK 401(k) PLAN
225 ASYLUM STREET
HARTFORD, CONNECTICUT 06103

B.
Name of issuer of the securities held pursuant to the plan and address of its principal executive office:

UNITED FINANCIAL BANCORP, INC.
225 ASYLUM STREET
HARTFORD, CONNECTICUT 06103




Financial Statements

The following financial statements are filed as a part of this annual report:

(a)
Financial Statements

1)
Financial statements of The United Bank 401(K) Plan as of December 31, 2017 and 2016 and for the year ended December 31, 2017, including the report of Pue, Chick, Leibowitz & Blezard, LLC with respect thereto.



















THE UNITED BANK 401(K) PLAN

Together with the Report of Independent
Registered Public Accounting Firm

FINANCIAL STATEMENTS
December 31, 2017 and 2016

SUPPLEMENTAL SCHEDULE
December 31, 2017





THE UNITED BANK 401(K) PLAN

FINANCIAL STATEMENTS

December 31, 2017 and 2016


Contents
 
 
Page
 
                                    
Report of Independent Registered Public Accounting Firm
 
1

 

FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits
 
2

 
Statement of Changes in Net Assets Available for Benefits
 
3

 
Notes to Financial Statements
 
4-9
 

SUPPLEMENTAL SCHEDULE
Form 5500, Schedule H, Part IV, Line 4i – Schedule of Assets (Held at End of Year)
10

 

All other schedules required by 29 CFR Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.






Report of Independent Registered Public Accounting Firm

To the Administrators, Trustees and Participants of
The United Bank 401(K) Plan
Hartford, Connecticut

Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of The United Bank 401(K) Plan as of December 31, 2017 and 2016, and the related statement of changes in net assets available for benefits for the year ended December 31, 2017 and the related notes and supplemental schedule (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of The United Bank 401(K) Plan as of December 31, 2017 and 2016, and the changes in its net assets available for benefits for the year ended December 31, 2017, in conformity with the accounting principles generally accepted in the United States of America.

Basis for Opinion
These financial statements are the responsibility of The United Bank 401(K) Plan’s management. Our responsibility is to express an opinion on The United Bank 401(K) Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to The United Bank 401(K) Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Report on Supplemental Information
The supplemental Schedule of Assets Held at End of Year, December 31, 2017 has been subjected to audit procedures performed in conjunction with the audit of The United Bank 401(K) Plan’s financial statements. The supplemental schedule is the responsibility of The United Bank 401(K) Plan’s management. Our procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting under the Employee Retirement Income Security Act of 1974. In our opinion the Schedule of Assets Held at End of Year, December 31, 2017 is fairly stated, in all material respects, in relation to the financial statements as a whole.
Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedule of Assets Held at End of Year referred to as the “supplemental schedule,” is presented for the purpose of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. Such information is the responsibility of the Plan’s management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards of the PCAOB. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.
 
/s/ Pue, Chick, Leibowitz & Blezard, LLC

 
Certified Public Accountants

We have served as The United Bank 401(K) Plan's auditor since 2004.

Vernon, Connecticut
June 20, 2018

1



THE UNITED BANK 401(K) PLAN

Statements of Net Assets Available for Benefits

As of December 31, 2017 and 2016
 
 
 
 
 
2017
 
2016
ASSETS
 
 
Allocated
 
Unallocated
 
Total
 
Allocated
 
Unallocated
 
Total
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mutual funds (at fair value)
 
$
20,909,866

 
$

 
$
20,909,866

 
$
38,224,695

 
$

 
$
38,224,695

 
United Financial Bancorp, Inc. - Common stock (at fair value)
 
15,459,687

 
9,255,726

 
24,715,413

 
17,327,360

 
9,942,854

 
27,270,214

 
Collective investment trusts (at net asset value)
 
27,196,941

 

 
27,196,941

 

 

 

 
Investment in trust (at contract value)
 
8,121,666

 

 
8,121,666

 
8,046,589

 

 
8,046,589

 
 
Total Investments
 
71,688,160

 
9,255,726

 
80,943,886

 
63,598,644

 
9,942,854

 
73,541,498

Receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes receivable from participants
 
1,163,251

 

 
1,163,251

 
716,694

 

 
716,694

 
Contributions
 
234,559

 

 
234,559

 
171,561

 

 
171,561

 
 
Total Receivables
 
1,397,810

 

 
1,397,810

 
888,255

 

 
888,255

 
 
 
Total Assets
 
73,085,970

 
9,255,726

 
82,341,696

 
64,486,899

 
9,942,854

 
74,429,753

LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan payable
 
 

 
6,044,298

 
6,044,298

 

 
6,198,023

 
6,198,023

 
 
 
Total Liabilities
 

 
6,044,298

 
6,044,298

 

 
6,198,023

 
6,198,023

 
Net Assets Available for Benefits
 
$
73,085,970

 
$
3,211,428

 
$
76,297,398

 
$
64,486,899

 
$
3,744,831

 
$
68,231,730






























See accompanying notes and report of independent registered public accounting firm.

2



THE UNITED BANK 401(K) PLAN

Statement of Changes in Net Assets Available for Benefits

For the Year Ended December 31, 2017
 
 
 
2017
 
 
 
Allocated
 
Unallocated
 
Total
Contributions:
 
 
 
 
 
 
Participant
$
4,338,247

 
$

 
$
4,338,247

 
Employer
1,907,657

 
205,842

 
2,113,499

 
Rollover
1,592,561

 

 
1,592,561

 
 
Total Contributions
7,838,465

 
205,842

 
8,044,307

Investment Income:
 
 
 
 
 
 
Net realized gain
3,127,854

 

 
3,127,854

 
Net unrealized appreciation (depreciation) in fair value of investments
4,641,102

 
(284,707
)
 
4,356,395

 
Dividends and interest
1,185,964

 
263,770

 
1,449,734

 
 
Net Investment Income
8,954,920

 
(20,937
)
 
8,933,983

 
 
 
 
 
 
 
 
 
Allocation of 22,813 shares of common stock of United Financial Bancorp, Inc., at market
402,421

 

 
402,421

 
 
Total Additions
17,195,806

 
184,905

 
17,380,711

Deductions:
 
 
 
 
 
 
Distributions paid to participants
8,470,671

 

 
8,470,671

 
Interest expense

 
315,887

 
315,887

 
Fees
126,064

 

 
126,064

 
Allocation of 22,813 shares of common stock of United Financial Bancorp, Inc., at market

 
402,421

 
402,421

 
 
Total Deductions
8,596,735

 
718,308

 
9,315,043

Change in Net Assets
8,599,071

 
(533,403
)
 
8,065,668

Net Assets Available for Benefits:
 
 
 
 
 
 
Beginning of year
64,486,899

 
3,744,831

 
68,231,730

 
End of year
$
73,085,970

 
$
3,211,428

 
$
76,297,398





















See accompanying notes and report of independent registered public accounting firm.

3




THE UNITED BANK 401(K) PLAN

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2017 AND 2016
Note 1.
Description of the Plan

Plan Sponsor Merger – On April 30, 2014, Rockville Financial, Inc. completed its merger with United Financial Bancorp, Inc. (“Legacy United”). In connection with the merger, Rockville Financial Inc. completed the following corporate actions:
Legacy United merged with and into Rockville Financial, Inc., which was the accounting acquirer and the surviving entity.
Rockville Financial, Inc. changed its legal entity name to United Financial Bancorp, Inc. ("The Company").
United Bank merged into Rockville Bank.
Rockville Bank changed its legal entity name to United Bank ("The Bank").

Plan Merger – Rockville Bank established a 401(k) plan on January 1, 1992 and an Employee Stock Ownership Plan ("ESOP") on May 23, 2005. Effective January 1, 2014, these plans were merged ("Merger") into a single plan known as, The Rockville Bank 401(k) Plan with ESOP Component. Effective April 1, 2015, the Bank changed the name of this plan to The United Bank 401(k) Plan (the "Plan"). In addition, effective April 1, 2015 the assets of Legacy United's 401(k) plan totaling $29,294,752 were transferred into the Plan.

The following description of the Plan is provided for general information purposes only. Participants should refer to the Plan agreement for more complete information.

a)
General – The Plan covers substantially all employees of the Bank. The Plan is subject to federal laws, such as the Employee Retirement Income Security Act ("ERISA"), the Internal Revenue Code, and other applicable federal and state laws. The provisions of the Plan are subject to revisions due to changes in laws or due to pronouncements by the Internal Revenue Service or Department of Labor.

The Plan consists of two components. One component of the Plan is a defined contribution plan qualifying as a salary reduction plan as defined in Section 401(k) of the Internal Revenue Code. The other component is intended to qualify as a Plan under Code Section 4975(e)(7) under the Internal Revenue Code. This component includes contributions invested in qualifying employer securities, including the qualifying employer securities in the profit sharing component, and is considered the ESOP component of the Plan. Both components of the Plan provide for participant-directed investments and are intended to comply with ERISA Section 404(c). The underlying Trust for both components of the Plan is intended to be exempt from taxation under Code Section 501.

The Principal Financial Group began serving as the Plan Trustee, record keeper and custodian effective April 1, 2015. Financial Investment Advisors is the financial advisor of the Plan.

b)
Eligibility – For purposes of employee pre-tax elective contributions, any employee who has attained age 21 shall be immediately eligible to contribute to the Plan after completing one hour of service effective April 1, 2015.

For purposes of employer matching contributions, an employee who has attained age 21 and has completed one year of service with at least 1,000 hours of service shall be eligible to receive employer matching contributions.

For purposes of employer discretionary contributions, employees who have attained age 21, and have completed one year of service with at least 1,000 hours of service shall be eligible to receive employer discretionary contributions provided they are employed on the last day of the year.

A break in eligibility occurs if an employee is severed from employment with the employer, however, if the employee is reemployed before a one year break in service occurs, the former employee shall become a participant as of the reemployment date. If a former employee is reemployed after a one year break in service has occurred, the employee

4




will be credited with years of service prior to the one year break in service as defined in the Plan, provided that the participant does not have five consecutive one-year breaks in service.

c)
Contributions – Each year, participants may contribute up to 75% of pretax annual compensation as defined in the Plan, subject to certain Internal Revenue Code (“IRC”) limitations. The maximum participant deferral is $18,000 for the Plan for the years ended December 31, 2017 and 2016. In addition, all employees who are eligible to make salary reductions under the Plan who have attained the age of 50 before the end of the Plan year are eligible to make catch up contributions up to $6,000 in 2017 and 2016 as determined by the Internal Revenue Service. Participants may also contribute amounts representing distributions from other plans and certain Individual Retirement Accounts (rollovers).

Effective April 1, 2015 the Bank makes the following contributions:
100% of the first 3% and 50% of the next 2% of matching contributions for eligible employees of each participant's contribution.
The Bank may make a discretionary contribution equal to a uniform percentage of eligible compensation for participants, which percentage is determined each year by the Bank.
As the Plan is designed to be a Safe Harbor 401(k) Plan, the Bank contributed $1,673,402 for the year ended December 31, 2017. Employer contributions may be made in cash or employer securities, at the employer's discretion. The Bank’s cash contributions totaled $1,907,657 for the year ended December 31, 2017. Commencing January 1, 2014, contributions may be funded with shares of United Financial Bancorp, Inc. stock that are released in connection with the repayment of the ESOP loan, as discussed below. In connection with the Bank’s defined benefit pension plan being frozen on December 31, 2012, the Bank provides additional benefits to the impacted employees by providing a non-elective contribution (transitional contribution) of 3% of compensation from 2013 through 2017 for active employees hired before January 2005.

During the years ended December 31, 2017 and 2016, the Bank matched 100% of the first 3% and 50% of the next 2% of eligible employee contributions of the participant’s pretax annual compensation, and the 3% non-elective transition contribution for certain employees who are participants in the frozen Retirement Plan of Rockville Bank, with cash contributions. The shares released from the ESOP component are allocated to function as a portion of the discretionary contribution. In addition, there were 22,813 shares of common stock at a fair value of $402,421 transferred from unallocated portion of the ESOP to allocated participant accounts during the year ended December 31, 2017.

Cash allocations to participant accounts are composed of the following for the year ended December 31, 2017:
Safe Harbor Match
$
1,673,402

Transition
95,853

Additional Employer Contribution
137,923

Qualified Corrective Contribution
479

 
$
1,907,657



d)
Participant Accounts and Forfeitures – Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution, the Bank’s matching contribution, the Bank’s discretionary contribution, if any, and if applicable, the Bank’s 3% non-elective contribution for employees impacted by the Pension freeze, and charged with withdrawals and allocated gains and losses attributable to the account’s investments. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

During the years ended December 31, 2017 and 2016, $595 and $308,957 in forfeitures were used to reduce employer contributions, respectively.

e)
Investments – Participants direct the investment of their accounts into various investment options offered by the Plan. The Plan currently offers thirteen collective investment trusts, eight mutual funds, investment in trust, and United Financial Bancorp, Inc. common stock (the parent company of United Bank) as investment options for participants.


5




f)
Vesting – Participants are fully vested in all contributions. In connection with the merger of the two plans, effective as of December 31, 2013, participants who were active in the ESOP Plan and employed on December 31, 2013 became fully vested (100%) in their Company Stock Account.

g)
Notes Receivable from Participants – Notes receivable from participants represent participant’s loans. Participants may borrow from their accounts up to a maximum of $50,000 or 50% of their vested account balance, whichever is less. The loans are secured by the balance in the participant’s account.

Loans made on April 1, 2015 and thereafter bear an interest rate of Prime plus 1% at the time the loan is taken out (5.50% and 4.75% at December 31, 2017 and 2016, respectively). Loans made prior to March 31, 2015 bear interest at rates commensurate with the current three-year certificate of deposit rate offered by the Plan Sponsor, United Bank, plus 1% (1.80% at March 31, 2015). An administrative loan processing fee of $100 is applicable and a participant may have only one loan outstanding at a time.

Principal and interest is paid ratably through payroll deductions. Loans are generally repayable within five years; however, loans for the purchase of a primary residence may be repayable over a period of up to 15 years.

h)
Payment of Benefits – Upon termination of employment for any reason, a participant may receive the vested value of his or her account as a lump-sum distribution in cash or by delivery of the number of full shares of United Financial Bancorp, Inc. common stock attributable to the account plus cash for any fractional shares.

i)
Voting Rights – Each participant is entitled to exercise voting rights attributable to the shares allocated to their account and is notified by the Trustee prior to the time that such rights are to be exercised. Any stock for which a signed voting direction instrument is not received from the Participant, or is not subject to being received, shall be voted by the Trustee in the same proportion as the stock for which signed voting-direction instruments are received as to the matter to be voted upon. The Trustee is required, however, to vote any unallocated shares on behalf of the collective best interest of plan participants and beneficiaries.

j)
Dividends – Dividend income on Company stock is recorded on the ex-dividend date. Amounts received on allocated shares increase participant accounts and amounts received on unallocated shares are available for plan expenses and debt service.
Note 2.
Summary of Significant Accounting Policies

a)
Basis of Accounting – The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), using the accrual method of accounting.

b)
Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires the Plan’s management to make estimates and assumptions that affect the reported amounts of net assets available for benefits, changes therein, and disclosures. Actual results could differ from those estimates.

c)
Risks and Uncertainties - The Plan invests in various investment instruments, including the plan sponsor’s stock (United Financial Bancorp, Inc. – Ticker "UBNK"), which is not diversified, mutual funds, collective investment trusts, and an insurance investment contract. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

d)
Investment Valuation and Income Recognition – The Plan’s investments are stated at fair value except for its investment in a guaranteed investment contract, which is valued at contract value, and its collective investment trusts, which are valued at the net asset value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with accounting principles generally accepted in the United States of America, the Plan classifies its investments into Level 1, which refers to securities valued using quoted prices from active markets for identical assets; Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available; and Level 3, which refers to securities valued based on significant unobservable inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted market prices are used to value investments.


6




Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2017 and 2016.

Common stock: Valued at the closing price reported on the active market on which the individual securities are traded.

Mutual funds: Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

Collective investment trusts: Valued at the net asset value ("NAV") practical expedient as determined by using estimated fair value of the underlying assets held in the fund, as provided by the manager of the fund.

Guaranteed investment contract: Guaranteed investment contracts are valued at contract value by the trustee.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Some management fees and operating expenses charged to the Plan for investments in common stock, mutual funds, collective investment trusts, and the guaranteed investment contract are deducted from income earned on a daily basis and are not separately reflected. Consequently, some plan expenses are reflected as a reduction of investment return for such investments.

e)
Fully Benefit-Responsive Investment Contracts – The Plan is required to report fully benefit responsive investment contracts at contract value. Contract value is the relevant measurement attribute for fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Plan invests in investment contracts through a Directed Trust. The statement of net assets available for benefits presents the contract value of the investment in the Trust. The statement of changes in net assets available for benefits is prepared on a contract value basis.

f)
Administrative Expenses – Fees paid to the Plan’s trustee and other administrative expenses incurred in connection with the operation of the Plan are paid by the Plan participants. Administrative expenses include managed account fees, loan processing fees, consulting fees and other expenses relating to purchases, sales, or transfers of the Plan’s investments.

g)
Payment of Benefits – Benefit payments and plan distributions to participants are recorded when paid.

Note 3.
Administration of Plan Assets

The Plan’s assets are held by Principal Financial Group ("the Trustee"). The Bank's contributions are held and managed by the Trustee, which invests cash received, interest and dividend income and makes distributions to participants. The Trustee also administers the payment of interest and principal on the ESOP loan, which is reimbursed to the Trustee through contributions as determined by the Bank.

Certain administrative functions are performed by officers or employees of the Bank or its subsidiaries. No such officer or employee receives compensation from the Plan. Administrative expenses for the Trustee’s fees are paid directly by the Bank. These fees are reflected as employer contributions and plan expenses in the accompanying statements of changes in net assets available for benefits.
Note 4.
Investments

The following table presents additional detail for the total Company common stock in the Plan as of December 31, 2017 and 2016:

7




 
December 31, 2017
 
December 31, 2016
 
Allocated
 
Unallocated
 
Allocated
 
Unallocated
Number of Shares
876,400
 
524,701
 
954,150
 
547,514
 
 
 
 
 
 
 
 
Cost
$11,237,861
 
$9,540,433
 
$12,029,198
 
$6,931,527
 
 
 
 
 
 
 
 
Market
$15,459,687
 
$9,255,726
 
$17,327,360
 
$9,942,854
Note 5.
Non-Participant Directed Investments

Information about the net assets and the significant components of the changes in net assets relating to the non-participant-directed investments are included in the unallocated columns of the statements of net assets available for benefits and the statement of changes in net assets available for benefits.
Note 6.
Fair Value Measurements

The following table sets forth by level within the fair value hierarchy a summary of the Plan’s investments measured at fair value on a recurring basis at December 31, 2017 and 2016.
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Total
December 31, 2017
 
 
 
 
 
 
 
 
Mutual Funds
 
$
20,909,866

 
$

 
$

 
$
20,909,866

Common Stock
 
24,715,413

 

 

 
24,715,413

Total investments in fair value hierarchy
 
$
45,625,279

 
$

 
$

 
$
45,625,279

Investments in collective investment trusts (1)
 

 

 

 
27,196,941

Investment in trust (2)
 

 

 

 
8,121,666

Total investments at fair value
 
$
45,625,279

 
$

 
$

 
$
80,943,886

 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
Mutual Funds
 
$
38,224,695

 
$

 
$

 
$
38,224,695

Common Stock
 
27,270,214

 

 

 
27,270,214

Total investments in fair value hierarchy
 
$
65,494,909

 
$

 
$

 
$
65,494,909

Investment in trust (2)
 

 

 

 
8,046,589

Total investments at fair value
 
$
65,494,909

 
$

 
$

 
$
73,541,498

(1) Investments measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the above table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the Statement of Net Assets Available for Benefits.
(2) Investments measured at contract value have not been classified in the fair value hierarchy. The amounts presented in the above table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the Statement of Net Assets Available for Benefit.
Note 7.
Loans Payable

In 2005, the ESOP entered into a term loan agreement with the Company (Plan Sponsor) to borrow enough to purchase up to 699,660 shares of the Company’s common stock. Through 2006, the plan borrowed $7,884,254 and the proceeds of the loan were used to purchase 699,659 shares of the Company’s common stock. Unallocated shares were collateral for the loan. The agreement provided for the loan to be repaid over ten years. The loan bears interest at the prime rate plus one percentage point as published in the Wall Street Journal. At December 31, 2014, prime plus one was 4.25%. This loan matured and was paid in full on December 31, 2014.


8




On March 3, 2011, the Company completed the “second step” conversion from a mutual holding company structure to a stock holding company structure. The Plan borrowed $7,071,039 from the Company to purchase 684,395 shares of common stock in the open market. Unallocated shares are collateral for the loan. The loan bears interest at the prime rate plus one percentage point as published in the Wall Street Journal. This loan matures on December 31, 2041. At December 31, 2017 and 2016, prime plus one was 5.50% and 4.75%, respectively. The balance on this note was $6,044,298 and $6,198,023 at December 31, 2017 and 2016, respectively.

The scheduled amortization of the remaining loan for the next five years and thereafter is as follows for the years ending December 31st:
2018
$
137,175

2019
144,720

2020
151,811

2021
161,029

2022
169,886

Thereafter
5,279,677

 
$
6,044,298

Note 8.
Plan Termination

Although it has not expressed any intention to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA.

Note 9.
Federal Income Tax Status

The Internal Revenue Service has determined and informed the Bank by a letter dated May 26, 2017, that the Plan and related trust were designed in accordance with the applicable regulations of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

In accordance with U.S. GAAP, the Plan Administrator has evaluated the Plan’s tax positions and concluded that the Plan has taken no uncertain tax positions that require adjustments to or disclosures in these financial statements.

Note 10.
Related Party Transactions

The Trustees manage certain Plan investment options. These transactions qualify as exempt party-in-interest transactions.

The Plan holds common shares of United Financial Bancorp, Inc., the Plan sponsor. These transactions qualify as exempt party-in-interest transactions. Loans to participants also qualify as exempt party-in-interest transactions.

Note 11.
Subsequent Events

The Trustee of the Plan has evaluated subsequent events through June 20, 2018, which represents the date that the financial statements were available to be issued.


9



THE UNITED BANK 401(K) PLAN
EIN: 06-0523930 PN: 002
FORM 5500, SCHEDULE H, PART IV, LINE 4i-SCHEDULE OF ASSETS
(HELD AT END OF YEAR) December 31, 2017
 
Identity of Issue, Borrower, Lessor, or Similar Party
 
Description of Investment, Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
 
Number of Shares/Units
 
Cost
 
Current Value
 
 
 
 
 
 
 
 
 
 
**
United Financial Bancorp, Inc.
 
Common Stock
 
1,401,101
 
*
 
$
24,715,413

 
Fixed Income Guarantee Option
 
Insurance Contract
 
1
 
*
 
8,121,666

 
American Beacon Large Cap VI Inst. Fund
 
Mutual Fund
 
94,580
 
*
 
2,756,996

 
Capital Research and Management Company American Funds EuroPacific Growth Fund
 
Mutual Fund
 
57,739
 
*
 
3,241,446

 
Metropolitan West Total Return Bond Plan
 
Mutual Fund
 
82,372
 
*
 
826,186

 
T. Rowe Price Bl Chip Gr Fund
 
Mutual Fund
 
65,185
 
*
 
6,277,976

 
Vanguard Total Bond Market Index Adm Fund
 
Mutual Fund
 
24,077
 
*
 
258,833

 
Vanguard 500 Index Admiral Fund
 
Mutual Fund
 
13,201
 
*
 
3,258,185

 
Vanguard Ext Mk Index Adm Fund
 
Mutual Fund
 
46,084
 
*
 
3,906,062

 
Vanguard Total International Stock Index Adm Fund
 
Mutual Fund
 
12,588
 
*
 
384,182

 
T. Rowe Price Retirement Balance Trust Cl A
 
Collective Investment Trust
 
25,623
 
*
 
367,435

 
T. Rowe Price Retirement 2005 Trust Cl A
 
Collective Investment Trust
 
1,656
 
*
 
24,461

 
T. Rowe Price Retirement 2010 Trust Cl A
 
Collective Investment Trust
 
30,814
 
*
 
474,533

 
T. Rowe Price Retirement 2015 Trust Cl A
 
Collective Investment Trust
 
66,808
 
*
 
1,096,325

 
T. Rowe Price Retirement 2020 Trust Cl A
 
Collective Investment Trust
 
231,630
 
*
 
4,037,305

 
T. Rowe Price Retirement 2025 Trust Cl A
 
Collective Investment Trust
 
273,507
 
*
 
5,027,056

 
T. Rowe Price Retirement 2030 Trust Cl A
 
Collective Investment Trust
 
253,755
 
*
 
4,882,251

 
T. Rowe Price Retirement 2035 Trust Cl A
 
Collective Investment Trust
 
169,840
 
*
 
3,376,414

 
T. Rowe Price Retirement 2040 Trust Cl A
 
Collective Investment Trust
 
114,510
 
*
 
2,325,707

 
T. Rowe Price Retirement 2045 Trust Cl A
 
Collective Investment Trust
 
135,040
 
*
 
2,753,464

 
T. Rowe Price Retirement 2050 Trust Cl A
 
Collective Investment Trust
 
80,887
 
*
 
1,649,276

 
T. Rowe Price Retirement 2055 Trust Cl A
 
Collective Investment Trust
 
48,972
 
*
 
997,557

 
T. Rowe Price Retirement 2060 Trust Cl A
 
Collective Investment Trust
 
14,123
 
*
 
185,157

**
Notes Receivable
 
Interest rate ranges 1.80% to 5.75% maturities through 2032
 
 
 
*
 
1,163,251

 
 
 
 
 
 
 
 
 
$
82,107,137

*
Participant-directed investment; the disclosure of cost is not required
 
 
 
 
 
 
**
Party-in-interest
 
 
 
 
 
 
 
 

See report of independent registered public accounting firm

10



SIGNATURE

The Plan

Pursuant to the requirements of the Securities and Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

THE UNITED BANK 401(k) PLAN

Date:
June 20, 2018
By:
 
/s/ Craig Hurty
 
 
 
 
Craig Hurty
 
 
 
 
EVP, Chief Human Resources Officer
            

EXHIBIT INDEX

23.
Consent of Independent Registered Public Accounting Firm





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Section 2: EX-23 (EXHIBIT 23)

Exhibit


Exhibit 23


Consent of Independent Registered Public Accounting Firm
    
We consent to the incorporation by reference in Registration Statement No. 333-173469 on Form S-8 of United Financial Bancorp, Inc. of our report dated June 20, 2018, relating to the financial statements and financial statement schedule of The United Bank 401(K) Plan, appearing in this Annual Report on Form 11-K of The United Bank 401(K) Plan for the year ended December 31, 2017.

Date:
June 20, 2018
By:
 
/s/ Pue, Chick, Leibowitz & Blezard, LLC
 
 
 
 
Pue, Chick, Leibowitz & Blezard, LLC
 
 
 
 
Vernon, Connecticut 06066











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