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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
_________________________ 
FORM 8-K 
__________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 17, 2018  
__________________________ 
United Financial Bancorp, Inc.
__________________________ 
 
 
 
 
 
Connecticut
 
001-35028
 
27-3577029
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
225 Asylum Street
Hartford, CT
 
06103
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (860) 291-3600

Not Applicable
(Former name or former address, if changed since last report)
__________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨





Item 2.02.
Results of Operations and Financial Condition
On July 17, 2018, United Financial Bancorp, Inc. issued a press release describing its results of operation for the quarter ended June 30, 2018. The press release announcing financial results is included as Exhibit 99.1 to this report and incorporated herein by reference.
Item 7.01.
Regulation FD Disclosure
On July 17, 2018, United Financial Bancorp, Inc. made available its presentation slides to accompany the earnings press release. The presentation includes among other things, a review of the financial results and trends through the period ending June 30, 2018. Copies of these materials are attached as Exhibit 99.2 to this filing.
Item 9.01.
Financial Statements and Exhibits
 
(a)
Not applicable.
(b)
Not applicable.
(c)
Not applicable.
(d)
Exhibits.
 
 
 
 
Number
  
Description
 
  
Press Release Dated July 17, 2018.
 
 
Investor Presentation Dated Second Quarter 2018.
 
 
 
 
 






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
Dated: July 17, 2018
 
 
 
UNITED FINANCIAL BANCORP, INC.
Registrant
 
 
 
 
 
 
 
 
By: 
 
/s/ Eric R. Newell
 
 
 
 
 
 
Eric R. Newell
Executive Vice President/
Chief Financial Officer





Exhibit Index
 
 
 
 
 
Number
  
Description
 
  
Press Release Dated July 17, 2018.
 
 
Investor Presentation Dated Second Quarter 2018.
 
 
 
 
 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit



Exhibit 99.1
 394253000_a8kgraphica01a01a14.jpg
 
 
 
For Immediate Release:
 
July 17, 2018
 
 
Investor Relations Contact:
Marliese L. Shaw
Executive Vice President, Investor Relations Officer
United Bank
860-291-3622
 
Media Relations Contact:
Adam J. Jeamel
Regional President, Corporate Communications
United Bank
860-291-3765


UNITED FINANCIAL BANCORP, INC.
ANNOUNCES SECOND QUARTER EARNINGS AND QUARTERLY DIVIDEND

HARTFORD, Conn., July 17, 2018United Financial Bancorp, Inc. ("United Financial" or the "Company") (NASDAQ Global Select Stock Market: “UBNK”), the holding company for United Bank (the "Bank"), announced results for the quarter ended June 30, 2018.

The Company reported net income of $15.6 million, or $0.31 per diluted share, for the quarter ended June 30, 2018, compared to net income for the linked quarter of $15.8 million, or $0.31 per diluted share. The Company reported net income of $16.2 million, or $0.32 per diluted share, for the quarter ended June 30, 2017.

"In the second quarter of 2018, United Financial Bancorp, Inc.'s earnings results reflected solid linked quarter net interest margin expansion and net interest income growth. Our Company continues to grow loans, deposits, particularly checking accounts, and tangible book value while maintaining strong asset quality, capital and liquidity," stated William H.W. Crawford, IV, Chief Executive Officer and President of the Company and the Bank. "I want to thank our United Bank employees for their steadfast support of our customers and communities."

Balance Sheet

Assets totaled $7.21 billion at June 30, 2018 and increased $139.9 million, or 2.0%, from $7.07 billion at March 31, 2018. At June 30, 2018, total loans were $5.48 billion, representing an increase of $93.2 million, or 1.7%, from the linked quarter. Changes to loan balances during the second quarter of 2018 were highlighted by an $85.1 million, or 4.6%, increase in investor non-owner occupied commercial real estate loans, a $22.0 million, or 7.1%, increase in other consumer loans, a $16.8 million, or 1.4%, increase in residential real estate loans and a $6.4 million, or 1.1%, increase in home equity loans. Loans held for sale increased $22.1 million, or 34.8%, from the linked quarter, as the Company observed an increase in saleable residential loan volumes during the second quarter of 2018. Total cash and cash equivalents increased $39.9 million, or 57.7%, from the linked quarter.

Deposits totaled $5.39 billion at June 30, 2018 and increased by $110.9 million, or 2.1%, from $5.28 billion at March 31, 2018. Increases in deposit balances during the second quarter of 2018 were highlighted by a $202.0 million, or 14.5%, increase in money market account balances, a $21.2 million, or 2.6%, increase in

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NOW checking account balances, and a $17.4 million, or 2.3%, increase in demand deposit account balances. Offsetting these increases were a $116.2 million, or 6.5%, decrease in certificate of deposit balances and a $13.5 million, or 2.6%, decrease in savings deposits.

Total Federal Home Loan Bank advances increased by $11.5 million, or 1.3%, over the linked quarter as the Company continued to utilize advances as an asset liability management tool through cash flow hedging strategies.

Net Interest Income

Net interest income increased by $1.6 million, or 3.5%, on a linked quarter basis, to $48.2 million, primarily attributable to an increase in loan interest income of $3.2 million, or 5.8%, to $58.0 million; the increase was offset by an increase in interest expense of $2.0 million, or 11.8%, to $18.9 million. Average interest-earning assets increased by $16.8 million, or 0.3%, primarily due to growth in average loan balances, which increased by $49.2 million, or 0.9%. Average loan balance growth was driven by a $25.0 million, or 1.1%, increase in average commercial real estate loans, a $23.8 million, or 1.8%, increase in average residential real estate loans, a $22.3 million, or 7.4%, increase in other consumer loans, and a $9.3 million, or 1.6%, increase in home equity loans. Average commercial business loan balances decreased by $26.7 million, or 3.2%, as the Company observed increased prepayment speeds in the shared national credit portfolio.

Interest expense increased by $2.0 million, or 11.8%, to $18.9 million during the second quarter of 2018, from $17.0 million in the linked quarter. Average interest-bearing deposit balances increased by $68.8 million, or 1.5%, primarily driven by a $109.4 million, or 5.1%, increase in average NOW and money market account balances, and a $7.0 million, or 1.4%, increase in average savings account balances. Average non-interest bearing demand deposits increased by $25.1 million, or 3.5%, as compared to the linked quarter. Offsetting the aforementioned increases was a $47.6 million, or 2.6%, decrease in average certificate of deposit balances. The overall growth observed in average account balances is attributable to the continued success of the Company's municipal and retail acquisition strategies.

The tax equivalent net interest margin increased by seven basis points to 2.97% in the second quarter of 2018, from 2.90% in the linked period. The improvement in the net interest margin was driven by an 18 point increase in the yield on earning assets, which was partially offset by a 13 basis point increase in the cost of interest bearing liabilities. The interest-earning asset yield improvement was largely driven by a ten basis point increase in the yield on commercial real estate loans, a 45 basis point increase in the yield on commercial business loans, a 22 basis point increase in the investment portfolio yield, a nine basis point increase in the yield on residential real estate loans and a 24 basis point increase in the home equity loan yield. The total cost of funds increased by 13 basis points to 1.20% in the second quarter driven by a 14 basis point increase in the cost of interest-bearing deposits and an 18 basis point increase in the cost of Federal Home Loan Bank of Boston advances.

Provision for Loan Losses

The provision for loan losses totaled $2.4 million for the quarter ended June 30, 2018 as compared to $1.9 million for the linked quarter. Net charge-offs totaled $1.1 million, or 0.08%, as a percentage of average loans outstanding for both quarters ended June 30, 2018 and March 31, 2018. Factors considered in the provision for loan losses include, but are not limited to, historical charge-offs, the composition of the portfolio, the current level of non-performing loans and charge-offs, local and national economic and credit conditions, the direction of real estate values and delinquency trends.


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Non-Interest Income

Total non-interest income decreased by $929,000, or 10.0%, to $8.4 million for the quarter ended June 30, 2018 from $9.3 million in the linked quarter. The decrease in the second quarter's non-interest income was driven by decreases in income from mortgage banking activities, net gain on sales of securities and other income. Additionally, there were higher losses on limited partnership investments as compared to the linked quarter, which contributed to the overall decrease in non-interest income. These decreases were offset by increases in both service charges and fees and bank-owned life insurance income.

Non-Interest Expense

Non-interest expense for the quarter ended June 30, 2018 totaled $38.4 million and increased by $1.6 million, or 4.4%, from the linked quarter. The increase in non-interest expense during the quarter was due to increases in salaries and employee benefits, other non-interest expenses, and marketing and promotions. These increases were primarily offset by a decrease in occupancy and equipment as compared to the linked quarter.

Asset Quality

Asset quality remained strong and stable for the period, with non-performing assets decreasing by $2.4 million to $31.3 million at June 30, 2018 from $33.7 million at March 31, 2018. The ratio of non-performing assets to total assets for the quarter ended June 30, 2018 was 0.43%, as compared to 0.48% in the linked quarter.

Capital

The Company reported Tangible Common Equity ("TCE") of $582.7 million, or 8.2% of average assets, for the quarter ended June 30, 2018. Tangible book value per share increased to $11.40 at June 30, 2018 from $11.25 at March 31, 2018. The increase was primarily driven by the impact of the Company's net income of $15.6 million, partially offset by the cash dividend payment to shareholders of $0.12 per share, as well as increases in accumulated other comprehensive losses as a result of a decrease in the market value of the Company's investment portfolio, as compared to the previous quarter. Book value per share at June 30, 2018 was $13.73.

Dividend

The Board of Directors declared a cash dividend on the Company’s common stock of $0.12 per share to shareholders of record at the close of business on July 27, 2018 and payable on August 8, 2018. This dividend equates to a 2.80% annualized yield based on the $17.17 average closing price of the Company’s common stock in the second quarter of 2018. The Company has paid dividends for 49 consecutive quarters.


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Investor Conference Call

United Financial Bancorp, Inc. will host a conference call on Wednesday, July 18, 2018 at 10:00 a.m. Eastern Time (ET) to discuss the Company’s second quarter results. Those wishing to participate in the call may dial toll-free 1-800-544-8281. A telephone replay of the call will be available through August 1, 2018 by calling 1-877-344-7529 and entering conference number 10121371. A podcast will be available on the Company’s website for an extended period of time, as well as on the Company’s investor relations app.

Investor Presentation

United Financial Bancorp, Inc. has prepared and furnished a visual slide presentation to accompany the earnings press release and investor conference call. The presentation has been furnished as an exhibit to the SEC Form 8-K, but is not included in this press release. Copies of the presentation may be accessed on the Company’s investor relations website (www.unitedfinancialinc.com) by selecting “News & Market Data,” then “Presentations;” or via the IRapp and selecting “Presentations;” or directly from SEC EDGAR.

About United Financial Bancorp, Inc.

United Financial Bancorp, Inc. is the holding company for United Bank, a full service financial services firm offering a complete line of commercial, business, and consumer banking products and services to customers throughout Connecticut and Massachusetts. United Bank is a financially strong, leading New England bank with more than 50 branches in two states and several commercial and residential loan production offices. United Financial Bancorp, Inc. trades on the NASDAQ Global Select Stock Exchange under the ticker symbol “UBNK.” At June 30, 2018, the Company had $7.21 billion in assets.

For more information about United Bank’s services and products call (866) 959-BANK or visit www.bankatunited.com. For more information about United Financial Bancorp, Inc., visit www.unitedfinancialinc.com or download the Company’s free Investor Relations app on your Apple or Android device. To download United Financial Bancorp, Inc.'s investor relations app on your iPhone or on your iPad, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit:
https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=725271098&mt=8
or https://play.google.com/store/apps/details?id=com.theirapp.ubnk for your Android mobile device.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures provide supplemental perspectives on operating results, performance trends, and financial condition. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is included on pages F-10 through F-12 in the accompanying financial tables. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector.


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Forward Looking Statements

This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

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United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
57,958

 
$
49,674

 
$
112,738

 
$
96,167

Securities-taxable interest
 
5,969

 
5,793

 
11,467

 
11,303

Securities-non-taxable interest
 
2,354

 
2,355

 
4,783

 
4,609

Securities-dividends
 
736

 
689

 
1,373

 
1,497

Interest-bearing deposits
 
113

 
51

 
263

 
152

Total interest and dividend income
 
67,130

 
58,562

 
130,624

 
113,728

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
12,864

 
7,603

 
23,891

 
14,422

Borrowed funds
 
6,085

 
4,631

 
12,009

 
8,681

Total interest expense
 
18,949

 
12,234

 
35,900

 
23,103

Net interest income
 
48,181

 
46,328

 
94,724

 
90,625

Provision for loan losses
 
2,350

 
2,292

 
4,289

 
4,580

Net interest income after provision for loan losses
 
45,831

 
44,036

 
90,435

 
86,045

Non-interest income:
 
 
 
 
 
 
 
 
Service charges and fees
 
6,542

 
7,184

 
12,701

 
12,829

Net gain from sales of securities
 
62

 
95

 
178

 
552

Income from mortgage banking activities
 
846

 
1,830

 
2,575

 
3,151

Bank-owned life insurance income
 
1,671

 
1,149

 
3,317

 
2,356

Net loss on limited partnership investments
 
(960
)
 
(638
)
 
(1,550
)
 
(718
)
Other income
 
199

 
206

 
428

 
388

Total non-interest income
 
8,360

 
9,826

 
17,649

 
18,558

Non-interest expense:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
22,113

 
19,574

 
43,311

 
39,304

Service bureau fees
 
2,165

 
2,293

 
4,383

 
4,623

Occupancy and equipment
 
4,668

 
3,657

 
9,617

 
8,126

Professional fees
 
1,105

 
952

 
2,269

 
2,261

Marketing and promotions
 
1,189

 
1,237

 
1,874

 
1,949

FDIC insurance assessments
 
735

 
796

 
1,474

 
1,475

Core deposit intangible amortization
 
305

 
353

 
642

 
738

Other
 
6,090

 
6,467

 
11,536

 
11,775

Total non-interest expense
 
38,370

 
35,329

 
75,106

 
70,251

Income before income taxes
 
15,821

 
18,533

 
32,978

 
34,352

Provision for income taxes
 
175

 
2,333

 
1,545

 
4,426

Net income
 
$
15,646

 
$
16,200

 
$
31,433

 
$
29,926

 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.31

 
$
0.32

 
$
0.62

 
$
0.60

Diluted
 
$
0.31

 
$
0.32

 
$
0.62

 
$
0.59

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
50,504,273

 
50,217,212

 
50,489,689

 
50,237,406

Diluted
 
50,974,283

 
50,839,091

 
50,985,520

 
50,887,124


 
F - 1
 




United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
 
 
For the Three Months Ended
 
 
June 30,
2018
 
March 31,
2018
 
December 31, 2017
 
September 30,
2017
 
June 30,
2017
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
57,958

 
$
54,780

 
$
52,758

 
$
51,809

 
$
49,674

Securities-taxable interest
 
5,969

 
5,498

 
5,643

 
5,604

 
5,793

Securities-non-taxable interest
 
2,354

 
2,429

 
2,571

 
2,499

 
2,355

Securities-dividends
 
736

 
637

 
669

 
736

 
689

Interest-bearing deposits
 
113

 
150

 
86

 
151

 
51

Total interest and dividend income
 
67,130

 
63,494

 
61,727

 
60,799

 
58,562

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
12,864

 
11,027

 
9,958

 
9,185

 
7,603

Borrowed funds
 
6,085

 
5,924

 
4,920

 
4,846

 
4,631

Total interest expense
 
18,949

 
16,951

 
14,878

 
14,031

 
12,234

Net interest income
 
48,181

 
46,543

 
46,849

 
46,768

 
46,328

Provision for loan losses
 
2,350

 
1,939

 
2,250

 
2,566

 
2,292

Net interest income after provision for loan losses
 
45,831

 
44,604

 
44,599

 
44,202

 
44,036

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
6,542

 
6,159

 
6,031

 
6,514

 
7,184

Net gain from sales of securities
 
62

 
116

 
72

 
158

 
95

Income from mortgage banking activities
 
846

 
1,729

 
1,184

 
1,204

 
1,830

Bank-owned life insurance income
 
1,671

 
1,646

 
1,939

 
1,167

 
1,149

Net loss on limited partnership investments
 
(960
)
 
(590
)
 
(1,441
)
 
(864
)
 
(638
)
Other income (loss)
 
199

 
229

 
(204
)
 
247

 
206

Total non-interest income
 
8,360

 
9,289

 
7,581

 
8,426

 
9,826

Non-interest expense:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
22,113

 
21,198

 
20,752

 
20,005

 
19,574

Service bureau fees
 
2,165

 
2,218

 
2,304

 
2,336

 
2,293

Occupancy and equipment
 
4,668

 
4,949

 
5,036

 
3,740

 
3,657

Professional fees
 
1,105

 
1,164

 
996

 
1,048

 
952

Marketing and promotions
 
1,189

 
685

 
1,011

 
1,087

 
1,237

FDIC insurance assessments
 
735

 
739

 
821

 
780

 
796

Core deposit intangible amortization
 
305

 
337

 
336

 
337

 
353

Other
 
6,090

 
5,446

 
5,981

 
5,929

 
6,467

Total non-interest expense
 
38,370

 
36,736

 
37,237

 
35,262

 
35,329

Income before income taxes
 
15,821

 
17,157

 
14,943

 
17,366

 
18,533

Provision for income taxes
 
175

 
1,370

 
5,442

 
2,175

 
2,333

Net income
 
$
15,646

 
$
15,787

 
$
9,501

 
$
15,191

 
$
16,200

 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.31

 
$
0.31

 
$
0.19

 
$
0.30

 
$
0.32

Diluted
 
$
0.31

 
$
0.31

 
$
0.19

 
$
0.30

 
$
0.32

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
50,504,273

 
50,474,942

 
50,392,382

 
50,263,602

 
50,217,212

Diluted
 
50,974,283

 
50,996,596

 
51,024,881

 
50,889,987

 
50,839,091


 
F - 2
 




United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
 
 
 
June 30,
2018
 
March 31,
2018
 
December 31, 2017
 
September 30,
2017
 
June 30,
2017
ASSETS
 
(In thousands)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
62,188

 
$
45,332

 
$
56,661

 
$
59,456

 
$
57,137

Short-term investments
 
46,987

 
23,910

 
32,007

 
39,061

 
17,714

Total cash and cash equivalents
 
109,175

 
69,242

 
88,668

 
98,517

 
74,851

Available for sale securities – At fair value
 
1,006,135

 
1,031,277

 
1,050,787

 
1,068,055

 
1,073,384

Held to maturity securities – At amortized cost
 

 

 
13,598

 
13,693

 
13,792

Loans held for sale
 
85,458

 
63,394

 
114,073

 
89,419

 
157,487

Loans:
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
418,338

 
442,938

 
445,820

 
442,989

 
429,848

Investor non-owner occupied
 
1,927,960

 
1,842,898

 
1,854,459

 
1,777,716

 
1,761,940

Construction
 
82,883

 
84,717

 
78,083

 
82,688

 
74,980

Total commercial real estate loans
 
2,429,181

 
2,370,553

 
2,378,362

 
2,303,393

 
2,266,768

Commercial business loans
 
841,142

 
846,182

 
840,312

 
821,372

 
792,918

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
1,252,001

 
1,235,197

 
1,204,401

 
1,211,783

 
1,172,540

Home equity
 
588,638

 
582,285

 
583,180

 
561,814

 
538,130

Residential construction
 
32,063

 
37,579

 
40,947

 
39,460

 
46,117

Other consumer
 
332,402

 
310,439

 
292,781

 
267,921

 
237,708

Total consumer loans
 
2,205,104

 
2,165,500

 
2,121,309

 
2,080,978

 
1,994,495

Total loans
 
5,475,427

 
5,382,235

 
5,339,983

 
5,205,743

 
5,054,181

Net deferred loan costs and premiums
 
15,502

 
14,724

 
14,794

 
15,297

 
15,413

Allowance for loan losses
 
(49,163
)
 
(47,915
)
 
(47,099
)
 
(46,368
)
 
(45,062
)
Loans receivable - net
 
5,441,766

 
5,349,044

 
5,307,678

 
5,174,672

 
5,024,532

Federal Home Loan Bank of Boston stock, at cost
 
46,734

 
49,895

 
50,194

 
46,758

 
54,760

Accrued interest receivable
 
23,209

 
22,333

 
22,332

 
20,893

 
19,751

Deferred tax asset, net
 
30,190

 
28,710

 
25,656

 
30,999

 
27,034

Premises and equipment, net
 
67,614

 
67,619

 
67,508

 
61,063

 
54,480

Goodwill
 
115,281

 
115,281

 
115,281

 
115,281

 
115,281

Core deposit intangible asset
 
3,849

 
4,154

 
4,491

 
4,827

 
5,164

Cash surrender value of bank-owned life insurance
 
180,490

 
179,556

 
148,300

 
171,300

 
170,144

Other assets
 
98,695

 
88,169

 
105,593

 
81,019

 
85,503

Total assets
 
$
7,208,596

 
$
7,068,674

 
$
7,114,159

 
$
6,976,496

 
$
6,876,163

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
F - 3
 




 
 
June 30,
2018
 
March 31,
2018
 
December 31, 2017
 
September 30,
2017
 
June 30,
2017
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing
 
$
770,982

 
$
753,575

 
$
778,576

 
$
725,130

 
$
721,917

Interest-bearing
 
4,622,394

 
4,528,935

 
4,419,645

 
4,427,892

 
4,271,562

Total deposits
 
5,393,376

 
5,282,510

 
5,198,221

 
5,153,022

 
4,993,479

Mortgagors’ and investor escrow accounts
 
14,526

 
11,096

 
7,545

 
9,641

 
15,045

Federal Home Loan Bank advances and other borrowings
 
1,041,896

 
1,030,735

 
1,165,054

 
1,068,814

 
1,138,817

Accrued expenses and other liabilities
 
56,921

 
51,333

 
50,011

 
54,366

 
49,358

Total liabilities
 
6,506,719

 
6,375,674

 
6,420,831

 
6,285,843

 
6,196,699

Total stockholders’ equity
 
701,877

 
693,000

 
693,328

 
690,653

 
679,464

Total liabilities and stockholders’ equity
 
$
7,208,596

 
$
7,068,674

 
$
7,114,159

 
$
6,976,496

 
$
6,876,163




 
F - 4
 




United Financial Bancorp, Inc. and Subsidiaries
Selected Financial Highlights
(Dollars In Thousands, Except Share Data)
(Unaudited)
 
At or For the Three Months Ended
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
 
September 30,
2017
 
June 30,
2017
Share Data:
 
 
 
 
 
 
 
 
 
Basic net income per share
$
0.31

 
$
0.31

 
$
0.19

 
$
0.30

 
$
0.32

Diluted net income per share
0.31

 
0.31

 
0.19

 
0.30

 
0.32

Dividends declared per share
0.12

 
0.12

 
0.12

 
0.12

 
0.12

Tangible book value per share
$
11.40

 
$
11.25

 
$
11.24

 
$
11.23

 
$
11.01

Key Statistics:
 
 
 
 
 
 
 
 
 
Total revenue
$
56,541

 
$
55,832

 
$
54,430

 
$
55,194

 
$
56,154

Total non-interest expense
38,370

 
36,736

 
37,327

 
35,262

 
35,329

Average earning assets
6,584,938

 
6,568,168

 
6,480,966

 
6,423,741

 
6,304,849

Key Ratios:
 
 
 
 
 
 
 
 
 
Return on average assets (annualized)
0.88
%
 
0.89
%
 
0.54
%
 
0.88
%
 
0.96
%
Return on average equity (annualized)
9.00
%
 
9.15
%
 
5.50
%
 
8.92
%
 
9.66
%
Tax-equivalent net interest margin (annualized)
2.97
%
 
2.90
%
 
2.98
%
 
3.00
%
 
3.04
%
Residential Mortgage Production:
 
 
 
 
 
 
 
 
 
Dollar volume (total)
$
140,409

 
$
94,433

 
$
135,522

 
$
133,462

 
$
186,220

Mortgages originated for purchases
110,351

 
63,193

 
83,181

 
97,132

 
129,165

Loans sold
99,637

 
99,899

 
94,738

 
152,551

 
61,363

Income from mortgage banking activities
846

 
1,729

 
1,184

 
1,204

 
1,830

Non-performing Assets:
 
 
 
 
 
 
 
 
 
Residential real estate
$
11,221

 
$
11,663

 
$
11,824

 
$
11,330

 
$
11,190

Home equity
4,607

 
4,698

 
4,968

 
4,206

 
5,211

Investor-owned commercial real estate
2,400

 
2,863

 
1,821

 
2,957

 
3,512

Owner-occupied commercial real estate
2,176

 
2,326

 
1,664

 
2,084

 
2,184

Construction
250

 
273

 
1,398

 
1,748

 
287

Commercial business
1,196

 
1,579

 
1,477

 
2,427

 
2,624

Other consumer
237

 
34

 
35

 
37

 
40

Non-accrual loans
22,087

 
23,436

 
23,187

 
24,789

 
25,048

Troubled debt restructured – non-accruing
7,330

 
8,308

 
8,475

 
6,628

 
7,475

Total non-performing loans
29,417

 
31,744

 
31,662

 
31,417

 
32,523

Other real estate owned
1,855

 
1,935

 
2,154

 
2,444

 
1,770

Total non-performing assets
$
31,272

 
$
33,679

 
$
33,816

 
$
33,861

 
$
34,293

Non-performing loans to total loans
0.54
%
 
0.59
%
 
0.59
%
 
0.60
%
 
0.64
%
Non-performing assets to total assets
0.43
%
 
0.48
%
 
0.48
%
 
0.49
%
 
0.50
%
Allowance for loan losses to non-performing loans
167.12
%
 
150.94
%
 
148.76
%
 
147.59
%
 
138.55
%
Allowance for loan losses to total loans
0.90
%
 
0.89
%
 
0.88
%
 
0.89
%
 
0.89
%
Non-GAAP Ratios: (1)
 
 
 
 
 
 
 
 
 
Non-interest expense to average assets (annualized)
2.16
%
 
2.08
%
 
2.13
%
 
2.04
%
 
2.08
%
Efficiency ratio (2)
65.18
%
 
63.97
%
 
63.53
%
 
60.47
%
 
59.75
%
Cost of funds (annualized) (3)
1.20
%
 
1.07
%
 
0.96
%
 
0.91
%
 
0.81
%
Total revenue growth rate
1.27
%
 
2.58
%
 
(1.38
)%
 
(1.71
)%
 
5.89
%
Total revenue growth rate (annualized)
5.08
%
 
10.30
%
 
(5.54
)%
 
(6.84
)%
 
23.57
%
Average earning asset growth rate
0.26
%
 
1.35
%
 
0.89
%
 
1.89
%
 
3.13
%
Average earning asset growth rate (annualized)
1.02
%
 
5.38
%
 
3.56
%
 
7.54
%
 
12.53
%
Return on average tangible common equity (annualized) (2)
11.03
%
 
11.25
%
 
6.81
%
 
10.99
%
 
11.95
%
Pre-provision net revenue to average assets (2)
1.14
%
 
1.15
%
 
1.19
%
 
1.31
%
 
1.38
%
(1)
Non-GAAP ratios are not financial measurements required by generally accepted accounting principles; however, management believes such information is useful to investors in evaluating Company performance.
(2)
Calculations of these non-GAAP metrics are provided after the reconciliations of non-GAAP financial measures and appear on page F-10 through page F-12.
(3)
The cost of funds ratio represents interest incurred on liabilities as a percentage of average non-interest bearing deposits and interest-bearing liabilities.

 
F - 5
 




United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
 
 
For the Three Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,338,021

 
$
12,020

 
3.60
%
 
$
1,297,558

 
$
10,839

 
3.34
%
Commercial real estate
2,306,896

 
24,762

 
4.25

 
2,153,938

 
21,837

 
4.01

Construction
114,987

 
1,331

 
4.58

 
128,730

 
1,396

 
4.29

Commercial business
816,102

 
9,139

 
4.43

 
780,553

 
7,628

 
3.87

Home equity
588,080

 
7,058

 
4.81

 
541,017

 
5,737

 
4.25

Other consumer
322,103

 
4,062

 
5.06

 
230,419

 
2,907

 
5.06

Investment securities
1,019,491

 
8,998

 
3.53

 
1,099,011

 
9,577

 
3.48

Federal Home Loan Bank stock
49,136

 
703

 
5.72

 
54,151

 
534

 
3.95

Other earning assets
30,122

 
116

 
1.55

 
19,472

 
50

 
1.03

Total interest-earning assets
6,584,938

 
68,189

 
4.12

 
6,304,849

 
60,505

 
3.82

Allowance for loan losses
(48,624
)
 
 
 
 
 
(44,888
)
 
 
 
 
Non-interest-earning assets
555,407

 
 
 
 
 
520,375

 
 
 
 
Total assets
$
7,091,721

 
 
 
 
 
$
6,780,336

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,256,323

 
$
6,163

 
1.10
%
 
$
1,929,917

 
$
2,808

 
0.58
%
Savings
517,910

 
77

 
0.06

 
541,867

 
80

 
0.06

Certificates of deposit
1,749,097

 
6,624

 
1.52

 
1,715,436

 
4,715

 
1.10

Total interest-bearing deposits
4,523,330

 
12,864

 
1.14

 
4,187,220

 
7,603

 
0.73

Federal Home Loan Bank advances
959,248

 
4,692

 
1.94

 
1,028,835

 
3,152

 
1.21

Other borrowings
112,112

 
1,393

 
4.91

 
154,780

 
1,479

 
3.78

Total interest-bearing liabilities
5,594,690

 
18,949

 
1.35

 
5,370,835

 
12,234

 
0.91

Non-interest-bearing deposits
738,484

 
 
 
 
 
670,244

 
 
 
 
Other liabilities
63,246

 
 
 
 
 
68,731

 
 
 
 
Total liabilities
6,396,420

 
 
 
 
 
6,109,810

 
 
 
 
Stockholders’ equity
695,301

 
 
 
 
 
670,526

 
 
 
 
Total liabilities and stockholders’ equity
$
7,091,721

 
 
 
 
 
$
6,780,336

 
 
 
 
Net interest-earning assets
$
990,248

 
 
 
 
 
$
934,014

 
 
 
 
Tax-equivalent net interest income
 
 
49,240

 
 
 
 
 
48,271

 
 
Tax-equivalent net interest rate spread (1)
 
 
 
 
2.77
%
 
 
 
 
 
2.91
%
Tax-equivalent net interest margin (2)
 
 
 
 
2.97
%
 
 
 
 
 
3.04
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.70
%
 
 
 
 
 
117.39
%
Less tax-equivalent adjustment
 
 
1,059

 
 
 
 
 
1,943

 
 
Net interest income
 
 
$
48,181

 
 
 
 
 
$
46,328

 
 

(1) Tax-equivalent net interest rate spread represents the difference between yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.

 
F - 6
 




United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
 
 
For the Three Months Ended
 
June 30, 2018
 
March 31, 2018
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,338,021

 
$
12,020

 
3.60
%
 
$
1,314,219

 
$
11,506

 
3.51
%
Commercial real estate
2,306,896

 
24,762

 
4.25

 
2,281,868

 
23,656

 
4.15

Construction
114,987

 
1,331

 
4.58

 
119,435

 
1,325

 
4.44

Commercial business
816,102

 
9,139

 
4.43

 
842,809

 
8,382

 
3.98

Home equity
588,080

 
7,058

 
4.81

 
578,776

 
6,528

 
4.57

Other consumer
322,103

 
4,062

 
5.06

 
299,839

 
3,800

 
5.14

Investment securities
1,019,491

 
8,998

 
3.53

 
1,041,849

 
8,624

 
3.31

Federal Home Loan Bank stock
49,136

 
703

 
5.72

 
51,458

 
606

 
4.71

Other earning assets
30,122

 
116

 
1.55

 
37,915

 
150

 
1.61

Total interest-earning assets
6,584,938

 
68,189

 
4.12

 
6,568,168

 
64,577

 
3.94

Allowance for loan losses
(48,624
)
 
 
 
 
 
(47,780
)
 
 
 
 
Non-interest-earning assets
555,407

 
 
 
 
 
554,333

 
 
 
 
Total assets
$
7,091,721

 
 
 
 
 
$
7,074,721

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,256,323

 
$
6,163

 
1.10
%
 
$
2,146,945

 
$
4,892

 
0.92
%
Savings
517,910

 
77

 
0.06

 
510,904

 
73

 
0.06

Certificates of deposit
1,749,097

 
6,624

 
1.52

 
1,796,675

 
6,062

 
1.37

Total interest-bearing deposits
4,523,330

 
12,864

 
1.14

 
4,454,524

 
11,027

 
1.00

Federal Home Loan Bank advances
959,248

 
4,692

 
1.94

 
1,033,884

 
4,545

 
1.76

Other borrowings
112,112

 
1,393

 
4.91

 
118,008

 
1,379

 
4.67

Total interest-bearing liabilities
5,594,690

 
18,949

 
1.35

 
5,606,416

 
16,951

 
1.22

Non-interest-bearing deposits
738,484

 
 
 
 
 
713,364

 
 
 
 
Other liabilities
63,246

 
 
 
 
 
64,596

 
 
 
 
Total liabilities
6,396,420

 
 
 
 
 
6,384,376

 
 
 
 
Stockholders’ equity
695,301

 
 
 
 
 
690,345

 
 
 
 
Total liabilities and stockholders’ equity
$
7,091,721

 
 
 
 
 
$
7,074,721

 
 
 
 
Net interest-earning assets
$
990,248

 
 
 
 
 
$
961,752

 
 
 
 
Tax-equivalent net interest income
 
 
49,240

 
 
 
 
 
47,626

 
 
Tax-equivalent net interest rate spread (1)
 
 
 
 
2.77
%
 
 
 
 
 
2.72
%
Tax-equivalent net interest margin (2)
 
 
 
 
2.97
%
 
 
 
 
 
2.90
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.70
%
 
 
 
 
 
117.15
%
Less tax-equivalent adjustment
 
 
1,059

 
 
 
 
 
1,083

 
 
Net interest income
 
 
$
48,181

 
 
 
 
 
$
46,543

 
 

(1) Tax-equivalent net interest rate spread represents the difference between yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.



 
F - 7
 




United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)

 
For the Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,326,185

 
$
23,526

 
3.56
%
 
$
1,266,484

 
$
21,062

 
3.33
%
Commercial real estate
2,294,451

 
48,419

 
4.20

 
2,126,358

 
42,563

 
3.98

Construction
117,199

 
2,656

 
4.51

 
137,062

 
2,960

 
4.29

Commercial business
829,382

 
17,521

 
4.20

 
755,637

 
14,347

 
3.78

Home equity
583,454

 
13,585

 
4.69

 
532,225

 
10,959

 
4.15

Other consumer
311,032

 
7,862

 
5.10

 
221,401

 
5,518

 
5.03

Investment securities
1,030,404

 
17,618

 
3.42

 
1,084,548

 
18,745

 
3.45

Federal Home Loan Bank stock
50,291

 
1,309

 
5.21

 
53,658

 
1,058

 
3.94

Other earning assets
34,202

 
270

 
1.59

 
32,263

 
152

 
0.95

Total interest-earning assets
6,576,600

 
132,766

 
4.03

 
6,209,636

 
117,364

 
3.77

Allowance for loan losses
(48,205
)
 
 
 
 
 
(44,260
)
 
 
 
 
Non-interest-earning assets
554,873

 
 
 
 
 
517,403

 
 
 
 
Total assets
$
7,083,268

 
 
 
 
 
$
6,682,779

 
 
 
 
Interest-bearing liabilities: