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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) October 16, 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 October 16, 2018, United Financial Bancorp, Inc. issued a press release describing its results of operation for the quarter ended September 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 October 16, 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 September 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 October 16, 2018.
 
 
Investor Presentation Dated Third 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: October 16, 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 October 16, 2018.
 
 
Investor Presentation Dated Third Quarter 2018.
 
 
 
 
 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit



Exhibit 99.1
 395366272_a8kgraphica01a01a15.jpg
 
 
 
For Immediate Release:
 
October 16, 2018
 
 
Investor Relations Contact:
Marliese L. Shaw
Executive Vice President, Investor Relations Officer
United Bank
860-291-3622
MShaw@bankatunited.com
 
Media Relations Contact:
Adam J. Jeamel
Regional President, Corporate Communications
United Bank
860-291-3765
AJeamel@bankatunited.com

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

HARTFORD, Conn., October 16, 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 September 30, 2018.

The Company reported net income of $16.3 million, or $0.32 per diluted share, for the quarter ended September 30, 2018, compared to net income for the linked quarter of $15.6 million, or $0.31 per diluted share. The Company reported net income of $15.2 million, or $0.30 per diluted share, for the quarter ended September 30, 2017.

"I want to thank our United Bank employees for their steadfast focus on serving our customers and communities, while also prudently growing revenue, earnings, tangible book value, and core deposits," stated William H.W. Crawford, IV, Chief Executive Officer and President of the Company and the Bank.

Balance Sheet

Assets totaled $7.21 billion at September 30, 2018 and remained relatively flat, decreasing $1.1 million from $7.21 billion at June 30, 2018. At September 30, 2018, total loans were $5.53 billion, representing an increase of $53.2 million, or 1.0%, from the linked quarter. Changes to loan balances during the third quarter of 2018 were highlighted by a $37.4 million, or 11.2%, increase in other consumer loans, a $31.1 million, or 2.5%, increase in residential real estate loans, a $19.9 million, or 2.4%, increase in commercial business loans, and a $16.6 million, or 4.0%, increase in owner-occupied commercial real estate loans. Slightly offsetting the increased balances were a $39.1 million, or 2.0%, decrease in investor non-owner occupied commercial real estate loans and an $8.7 million, or 1.5%, decrease in home equity loans. Loans held for sale increased $1.5 million, or 1.7%, from the linked quarter. Available-for-sale securities decreased $34.1 million, or 3.4%, as the Company utilized cash flows for improved risk adjusted returns on capital in the loan portfolio. Total cash and cash equivalents decreased $30.6 million, or 28.0%, from the linked quarter as the Company paid down Federal Home Loan Bank of Boston advances at the end of the quarter.


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Deposits totaled $5.50 billion at September 30, 2018 and increased by $107.0 million, or 2.0%, from $5.39 billion at June 30, 2018. Increases in deposit balances during the third quarter of 2018 were highlighted by a $157.1 million, or 9.8%, increase in money market account balances and a $2.1 million, or 0.2%, increase in NOW checking account balances. Offsetting these increases were a $21.2 million, or 1.3%, decrease in certificate of deposit balances, a $19.2 million, or 3.8%, decrease in savings deposit balances, and an $11.8 million, or 1.5%, decrease in demand deposit account balances.

Total Federal Home Loan Bank advances decreased by $112.5 million, or 12.2%, over the linked quarter as the Company utilized excess cash from deposit growth to pay off maturing advances.

Net Interest Income

Net interest income increased by $248,000, or 0.5%, on a linked quarter basis, to $48.4 million, primarily attributable to an increase in loan interest income of $3.1 million, or 5.4%, to $61.1 million. This increase was offset by an increase in interest expense of $2.8 million, or 14.8%, to $21.8 million. Average interest-earning assets increased by $86.5 million, or 1.3%, primarily due to growth in average loan balances, which increased by $102.7 million, or 1.9%. Average loan balance growth was driven by a $37.9 million, or 2.8%, increase in average residential real estate loans, a $29.8 million, or 9.2%, increase in average other consumer loans, a $25.8 million, or 3.2%, increase in average commercial business loans, and a $13.5 million, or 0.6%, increase in average commercial real estate loans. Slightly offsetting the increases was a $3.4 million, or 0.6%, decrease in average home equity loans.

Interest expense increased by $2.8 million, or 14.8%, to $21.8 million during the third quarter of 2018, from $18.9 million in the linked quarter. Average interest-bearing deposit balances increased by $185.4 million, or 4.1%, primarily driven by a $259.3 million, or 11.5%, increase in average NOW and money market account balances, which was slightly offset by a $16.2 million, or 3.1%, decrease in average savings account balances and a $57.7 million, or 3.3%, decrease in average certificates of deposits. Average non-interest bearing deposits increased by $12.0 million, or 1.6%, as compared to the linked quarter. Average Federal Home Loan Bank of Boston advances decreased by $115.0 million, or 12.0%, as the Company used funds obtained through deposit growth to pay down the maturing advances. The overall growth observed in average account balances is attributable to the continued success of the Company's municipal and commercial acquisition strategies.

The tax-equivalent net interest margin decreased by five basis points to 2.92% in the third quarter of 2018, from 2.97% in the linked period. The decline in the net interest margin was driven by a 17 basis point increase in the cost of interest-bearing liabilities, which was partially offset by a nine basis point increase in the yield of interest-earning assets. The interest-earning asset yield improvement was largely driven by a 15 basis point increase in the yield on commercial real estate loans, a 26 basis point increase in the yield on home equity loans, a five basis point increase in the yield on residential real estate loans, and a five basis point increase in the yield on other consumer loans. The total cost of funds increased by 16 basis points to 1.36% in the third quarter of 2018 driven by a 19 basis point increase in the cost of interest-bearing deposits and a 19 point basis point increase in the cost of Federal Home Loan Bank of Boston advances.

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Provision for Loan Losses

The provision for loan losses totaled $2.0 million for the quarter ended September 30, 2018 as compared to $2.4 million for the linked quarter. Net charge-offs for the quarter ended September 30, 2018 totaled $1.3 million, or 0.09%, as a percentage of average loans outstanding, as compared to $1.1 million, or 0.08%, as a percentage of average loans for the quarter ended June 30, 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.

Non-Interest Income

Total non-interest income increased by $1.2 million, or 14.3%, to $9.6 million for the quarter ended September 30, 2018 from $8.4 million in the linked quarter. The increase in the third quarter's non-interest income was driven primarily by an increase in income from mortgage banking activities. Additionally, there were lower losses on limited partnership investments as compared to the linked quarter, which contributed to the overall increase in non-interest income. These increases were offset primarily by a decrease in bank-owned life insurance income, as well as net losses on sales of securities as compared to the linked quarter.

Non-Interest Expense

Non-interest expense for the quarter ended September 30, 2018 totaled $38.9 million and slightly increased by $573,000, or 1.5%, from the linked quarter. The increase in non-interest expense during the quarter was primarily due to increases in salaries and employee benefits and other non-interest expenses. These increases were primarily offset by decreases in occupancy and equipment and professional fees as compared to the linked quarter.

Asset Quality

Asset quality remained strong and stable for the period, with non-performing assets decreasing by $2.3 million to $29.0 million at September 30, 2018 from $31.3 million at June 30, 2018. The ratio of non-performing assets to total assets for the quarter ended September 30, 2018 was 0.40%, as compared to 0.43% in the linked quarter.

Capital

The Company reported Tangible Common Equity ("TCE") of $591.0 million, or 8.2% of average assets, for the quarter ended September 30, 2018. Tangible book value per share increased to $11.55 at September 30, 2018 from $11.40 at June 30, 2018. The increase was primarily driven by the impact of the Company's net income of $16.3 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 September 30, 2018 was $13.88, as compared to $13.73 in the linked quarter.

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 October 26, 2018 and payable on November 6, 2018. This dividend equates to a 2.73% annualized yield based on the $17.59 average closing price of the Company’s common stock in the third quarter of 2018. The Company has paid dividends for 50 consecutive quarters.


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Investor Conference Call

United Financial Bancorp, Inc. will host a conference call on Wednesday, October 17, 2018 at 10:00 a.m. Eastern Time (ET) to discuss the Company’s third 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 October 31, 2018 by calling 1-877-344-7529 and entering conference number 10124821. 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 September 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 September 30,
 
For the Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
61,061

 
$
51,809

 
$
173,799

 
$
147,976

Securities-taxable interest
 
5,822

 
5,604

 
17,289

 
16,907

Securities-non-taxable interest
 
2,347

 
2,499

 
7,130

 
7,108

Securities-dividends
 
748

 
736

 
2,121

 
2,233

Interest-bearing deposits
 
213

 
151

 
476

 
303

Total interest and dividend income
 
70,191

 
60,799

 
200,815

 
174,527

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
15,767

 
9,185

 
39,658

 
23,607

Borrowed funds
 
5,995

 
4,846

 
18,004

 
13,527

Total interest expense
 
21,762

 
14,031

 
57,662

 
37,134

Net interest income
 
48,429

 
46,768

 
143,153

 
137,393

Provision for loan losses
 
2,007

 
2,566

 
6,296

 
7,146

Net interest income after provision for loan losses
 
46,422

 
44,202

 
136,857

 
130,247

Non-interest income:
 
 
 
 
 
 
 
 
Service charges and fees
 
6,623

 
6,514

 
19,324

 
19,343

Net (loss) gain from sales of securities
 
(58
)
 
158

 
120

 
710

Income from mortgage banking activities
 
1,486

 
1,204

 
4,061

 
4,355

Bank-owned life insurance income
 
1,460

 
1,167

 
4,777

 
3,523

Net loss on limited partnership investments
 
(221
)
 
(864
)
 
(1,771
)
 
(1,582
)
Other income
 
265

 
247

 
693

 
635

Total non-interest income
 
9,555

 
8,426

 
27,204

 
26,984

Non-interest expense:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
22,643

 
20,005

 
65,954

 
59,309

Service bureau fees
 
2,209

 
2,336

 
6,592

 
6,959

Occupancy and equipment
 
4,487

 
3,740

 
14,104

 
11,866

Professional fees
 
1,013

 
1,048

 
3,282

 
3,309

Marketing and promotions
 
1,119

 
1,087

 
2,993

 
3,036

FDIC insurance assessments
 
655

 
780

 
2,129

 
2,255

Core deposit intangible amortization
 
288

 
337

 
930

 
1,075

Other
 
6,529

 
5,929

 
18,065

 
17,704

Total non-interest expense
 
38,943

 
35,262

 
114,049

 
105,513

Income before income taxes
 
17,034

 
17,366

 
50,012

 
51,718

Provision for income taxes
 
726

 
2,175

 
2,271

 
6,601

Net income
 
$
16,308

 
$
15,191

 
$
47,741

 
$
45,117

 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.32

 
$
0.30

 
$
0.94

 
$
0.90

Diluted
 
$
0.32

 
$
0.30

 
$
0.94

 
$
0.89

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
50,624,832

 
50,263,602

 
50,535,569

 
50,246,234

Diluted
 
51,104,776

 
50,889,987

 
51,026,105

 
50,888,175


 
F - 1
 




United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
 
 
For the Three Months Ended
 
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
 
September 30,
2017
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
61,061

 
$
57,958

 
$
54,780

 
$
52,758

 
$
51,809

Securities-taxable interest
 
5,822

 
5,969

 
5,498

 
5,643

 
5,604

Securities-non-taxable interest
 
2,347

 
2,354

 
2,429

 
2,571

 
2,499

Securities-dividends
 
748

 
736

 
637

 
669

 
736

Interest-bearing deposits
 
213

 
113

 
150

 
86

 
151

Total interest and dividend income
 
70,191

 
67,130

 
63,494

 
61,727

 
60,799

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
15,767

 
12,864

 
11,027

 
9,958

 
9,185

Borrowed funds
 
5,995

 
6,085

 
5,924

 
4,920

 
4,846

Total interest expense
 
21,762

 
18,949

 
16,951

 
14,878

 
14,031

Net interest income
 
48,429

 
48,181

 
46,543

 
46,849

 
46,768

Provision for loan losses
 
2,007

 
2,350

 
1,939

 
2,250

 
2,566

Net interest income after provision for loan losses
 
46,422

 
45,831

 
44,604

 
44,599

 
44,202

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
6,623

 
6,542

 
6,159

 
6,031

 
6,514

Net (loss) gain from sales of securities
 
(58
)
 
62

 
116

 
72

 
158

Income from mortgage banking activities
 
1,486

 
846

 
1,729

 
1,184

 
1,204

Bank-owned life insurance income
 
1,460

 
1,671

 
1,646

 
1,939

 
1,167

Net loss on limited partnership investments
 
(221
)
 
(960
)
 
(590
)
 
(1,441
)
 
(864
)
Other income (loss)
 
265

 
199

 
229

 
(204
)
 
247

Total non-interest income
 
9,555

 
8,360

 
9,289

 
7,581

 
8,426

Non-interest expense:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
22,643

 
22,113

 
21,198

 
20,752

 
20,005

Service bureau fees
 
2,209

 
2,165

 
2,218

 
2,304

 
2,336

Occupancy and equipment
 
4,487

 
4,668

 
4,949

 
5,036

 
3,740

Professional fees
 
1,013

 
1,105

 
1,164

 
996

 
1,048

Marketing and promotions
 
1,119

 
1,189

 
685

 
1,011

 
1,087

FDIC insurance assessments
 
655

 
735

 
739

 
821

 
780

Core deposit intangible amortization
 
288

 
305

 
337

 
336

 
337

Other
 
6,529

 
6,090

 
5,446

 
5,981

 
5,929

Total non-interest expense
 
38,943

 
38,370

 
36,736

 
37,237

 
35,262

Income before income taxes
 
17,034

 
15,821

 
17,157

 
14,943

 
17,366

Provision for income taxes
 
726

 
175

 
1,370

 
5,442

 
2,175

Net income
 
$
16,308

 
$
15,646

 
$
15,787

 
$
9,501

 
$
15,191

 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.32

 
$
0.31

 
$
0.31

 
$
0.19

 
$
0.30

Diluted
 
$
0.32

 
$
0.31

 
$
0.31

 
$
0.19

 
$
0.30

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
50,624,832

 
50,504,273

 
50,474,942

 
50,392,382

 
50,263,602

Diluted
 
51,104,776

 
50,974,283

 
50,996,596

 
51,024,881

 
50,889,987


 
F - 2
 




United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
 
 
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
 
September 30,
2017
ASSETS
 
(In thousands)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
48,786

 
$
62,188

 
$
45,332

 
$
56,661

 
$
59,456

Short-term investments
 
29,809

 
46,987

 
23,910

 
32,007

 
39,061

Total cash and cash equivalents
 
78,595

 
109,175

 
69,242

 
88,668

 
98,517

Available for sale securities – At fair value
 
972,035

 
1,006,135

 
1,031,277

 
1,050,787

 
1,068,055

Held to maturity securities – At amortized cost
 

 

 

 
13,598

 
13,693

Loans held for sale
 
86,948

 
85,458

 
63,394

 
114,073

 
89,419

Loans:
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
434,906

 
418,338

 
442,938

 
445,820

 
442,989

Investor non-owner occupied
 
1,888,848

 
1,927,960

 
1,842,898

 
1,854,459

 
1,777,716

Construction
 
78,235

 
82,883

 
84,717

 
78,083

 
82,688

Total commercial real estate loans
 
2,401,989

 
2,429,181

 
2,370,553

 
2,378,362

 
2,303,393

Commercial business loans
 
861,030

 
841,142

 
846,182

 
840,312

 
821,372

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
1,283,126

 
1,252,001

 
1,235,197

 
1,204,401

 
1,211,783

Home equity
 
579,907

 
588,638

 
582,285

 
583,180

 
561,814

Residential construction
 
32,750

 
32,063

 
37,579

 
40,947

 
39,460

Other consumer
 
369,781

 
332,402

 
310,439

 
292,781

 
267,921

Total consumer loans
 
2,265,564

 
2,205,104

 
2,165,500

 
2,121,309

 
2,080,978

Total loans
 
5,528,583

 
5,475,427

 
5,382,235

 
5,339,983

 
5,205,743

Net deferred loan costs and premiums
 
16,603

 
15,502

 
14,724

 
14,794

 
15,297

Allowance for loan losses
 
(49,909
)
 
(49,163
)
 
(47,915
)
 
(47,099
)
 
(46,368
)
Loans receivable - net
 
5,495,277

 
5,441,766

 
5,349,044

 
5,307,678

 
5,174,672

Federal Home Loan Bank of Boston stock, at cost
 
42,032

 
46,734

 
49,895

 
50,194

 
46,758

Accrued interest receivable
 
25,485

 
23,209

 
22,333

 
22,332

 
20,893

Deferred tax asset, net
 
31,473

 
30,190

 
28,710

 
25,656

 
30,999

Premises and equipment, net
 
67,612

 
67,614

 
67,619

 
67,508

 
61,063

Goodwill
 
115,281

 
115,281

 
115,281

 
115,281

 
115,281

Core deposit intangible asset
 
3,560

 
3,849

 
4,154

 
4,491

 
4,827

Cash surrender value of bank-owned life insurance
 
181,928

 
180,490

 
179,556

 
148,300

 
171,300

Other assets
 
107,272

 
98,695

 
88,169

 
105,593

 
81,019

Total assets
 
$
7,207,498

 
$
7,208,596

 
$
7,068,674

 
$
7,114,159

 
$
6,976,496

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
F - 3
 




 
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
 
September 30,
2017
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing
 
$
759,210

 
$
770,982

 
$
753,575

 
$
778,576

 
$
725,130

Interest-bearing
 
4,741,153

 
4,622,394

 
4,528,935

 
4,419,645

 
4,427,892

Total deposits
 
5,500,363

 
5,393,376

 
5,282,510

 
5,198,221

 
5,153,022

Mortgagors’ and investor escrow accounts
 
9,597

 
14,526

 
11,096

 
7,545

 
9,641

Federal Home Loan Bank advances and other borrowings
 
926,592

 
1,041,896

 
1,030,735

 
1,165,054

 
1,068,814

Accrued expenses and other liabilities
 
61,128

 
56,921

 
51,333

 
50,011

 
54,366

Total liabilities
 
6,497,680

 
6,506,719

 
6,375,674

 
6,420,831

 
6,285,843

Total stockholders’ equity
 
709,818

 
701,877

 
693,000

 
693,328

 
690,653

Total liabilities and stockholders’ equity
 
$
7,207,498

 
$
7,208,596

 
$
7,068,674

 
$
7,114,159

 
$
6,976,496




 
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
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
 
September 30,
2017
Share Data:
 
 
 
 
 
 
 
 
 
Basic net income per share
$
0.32

 
$
0.31

 
$
0.31

 
$
0.19

 
$
0.30

Diluted net income per share
0.32

 
0.31

 
0.31

 
0.19

 
0.30

Dividends declared per share
0.12

 
0.12

 
0.12

 
0.12

 
0.12

Tangible book value per share
$
11.55

 
$
11.40

 
$
11.25

 
$
11.24

 
$
11.23

Key Statistics:
 
 
 
 
 
 
 
 
 
Total revenue
$
57,984

 
$
56,541

 
$
55,832

 
$
54,430

 
$
55,194

Total non-interest expense
38,943

 
38,370

 
36,736

 
37,327

 
35,262

Average earning assets
6,671,424

 
6,584,938

 
6,568,168

 
6,480,966

 
6,423,741

Key Ratios:
 
 
 
 
 
 
 
 
 
Return on average assets (annualized)
0.91
%
 
0.88
%
 
0.89
%
 
0.54
%
 
0.88
%
Return on average equity (annualized)
9.26
%
 
9.00
%
 
9.15
%
 
5.50
%
 
8.92
%
Tax-equivalent net interest margin (annualized)
2.92
%
 
2.97
%
 
2.90
%
 
2.98
%
 
3.00
%
Residential Mortgage Production:
 
 
 
 
 
 
 
 
 
Dollar volume (total)
$
143,673

 
$
140,409

 
$
94,433

 
$
135,522

 
$
133,462

Mortgages originated for purchases
111,555

 
110,351

 
63,193

 
83,181

 
97,132

Loans sold
99,372

 
99,637

 
99,899

 
94,738

 
152,551

Income from mortgage banking activities
1,486

 
846

 
1,729

 
1,184

 
1,204

Non-performing Assets:
 
 
 
 
 
 
 
 
 
Residential real estate
$
11,949

 
$
11,221

 
$
11,663

 
$
11,824

 
$
11,330

Home equity
4,005

 
4,607

 
4,698

 
4,968

 
4,206

Investor-owned commercial real estate
1,525

 
2,400

 
2,863

 
1,821

 
2,957

Owner-occupied commercial real estate
1,202

 
2,176

 
2,326

 
1,664

 
2,084

Construction
243

 
250

 
273

 
1,398

 
1,748

Commercial business
985

 
1,196

 
1,579

 
1,477

 
2,427

Other consumer
597

 
237

 
34

 
35

 
37

Non-accrual loans
20,506

 
22,087

 
23,436

 
23,187

 
24,789

Troubled debt restructured – non-accruing
6,706

 
7,330

 
8,308

 
8,475

 
6,628

Total non-performing loans
27,212

 
29,417

 
31,744

 
31,662

 
31,417

Other real estate owned
1,808

 
1,855

 
1,935

 
2,154

 
2,444

Total non-performing assets
$
29,020

 
$
31,272

 
$
33,679

 
$
33,816

 
$
33,861

Non-performing loans to total loans
0.49
%
 
0.54
%
 
0.59
%
 
0.59
%
 
0.60
%
Non-performing assets to total assets
0.40
%
 
0.43
%
 
0.48
%
 
0.48
%
 
0.49
%
Allowance for loan losses to non-performing loans
183.41
%
 
167.12
%
 
150.94
%
 
148.76
%
 
147.59
%
Allowance for loan losses to total loans
0.90
%
 
0.90
%
 
0.89
%
 
0.88
%
 
0.89
%
Non-GAAP Ratios: (1)
 
 
 
 
 
 
 
 
 
Non-interest expense to average assets (annualized)
2.17
%
 
2.16
%
 
2.08
%
 
2.13
%
 
2.04
%
Efficiency ratio (2)
65.73
%
 
65.18
%
 
63.97
%
 
63.53
%
 
60.47
%
Cost of funds (annualized) (3)
1.36
%
 
1.20
%
 
1.07
%
 
0.96
%
 
0.91
%
Total revenue growth rate
2.55
%
 
1.27
%
 
2.58
%
 
(1.38
)%
 
(1.71
)%
Total revenue growth rate (annualized)
10.21
%
 
5.08
%
 
10.30
%
 
(5.54
)%
 
(6.84
)%
Average earning asset growth rate
1.31
%
 
0.26
%
 
1.35
%
 
0.89
%
 
1.89
%
Average earning asset growth rate (annualized)
5.25
%
 
1.02
%
 
5.38
%
 
3.56
%
 
7.54
%
Return on average tangible common equity (annualized) (2)
11.30
%
 
11.03
%
 
11.25
%
 
6.81
%
 
10.99
%
Pre-provision net revenue to average assets (2)
1.11
%
 
1.14
%
 
1.15
%
 
1.19
%
 
1.31
%
(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
 
September 30, 2018
 
September 30, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,375,948

 
$
12,451

 
3.65
%
 
$
1,323,262

 
$
11,017

 
3.33
%
Commercial real estate
2,320,375

 
26,105

 
4.40

 
2,211,601

 
23,063

 
4.08

Construction
114,068

 
1,379

 
4.73

 
122,511

 
1,301

 
4.16

Commercial business
841,936

 
9,428

 
4.38

 
791,547

 
8,163

 
4.04

Home equity
584,706

 
7,471

 
5.07

 
536,509

 
5,917

 
4.38

Other consumer
351,892

 
4,532

 
5.11

 
252,532

 
3,063

 
4.81

Investment securities
995,405

 
8,686

 
3.48

 
1,090,559

 
9,621

 
3.52

Federal Home Loan Bank stock
45,016

 
715

 
6.35

 
51,722

 
572

 
4.43

Other earning assets
42,078

 
216

 
2.04

 
43,498

 
151

 
1.38

Total interest-earning assets
6,671,424

 
70,983

 
4.21

 
6,423,741

 
62,868

 
3.86

Allowance for loan losses
(49,823
)
 
 
 
 
 
(46,479
)
 
 
 
 
Non-interest-earning assets
569,471

 
 
 
 
 
529,937

 
 
 
 
Total assets
$
7,191,072

 
 
 
 
 
$
6,907,199

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,515,660

 
$
8,461

 
1.33
%
 
$
2,105,796

 
$
3,992

 
0.75
%
Savings
501,700

 
75

 
0.06

 
527,641

 
77

 
0.06

Certificates of deposit
1,691,382

 
7,231

 
1.70

 
1,731,658

 
5,116

 
1.17

Total interest-bearing deposits
4,708,742

 
15,767

 
1.33

 
4,365,095

 
9,185

 
0.83

Federal Home Loan Bank advances
844,207

 
4,591

 
2.13

 
951,760

 
3,404

 
1.40

Other borrowings
111,760

 
1,404

 
4.92

 
135,173

 
1,442

 
4.18

Total interest-bearing liabilities
5,664,709

 
21,762

 
1.52

 
5,452,028

 
14,031

 
1.02

Non-interest-bearing deposits
750,503

 
 
 
 
 
702,916

 
 
 
 
Other liabilities
71,554

 
 
 
 
 
70,853

 
 
 
 
Total liabilities
6,486,766

 
 
 
 
 
6,225,797

 
 
 
 
Stockholders’ equity
704,306

 
 
 
 
 
681,402

 
 
 
 
Total liabilities and stockholders’ equity
$
7,191,072

 
 
 
 
 
$
6,907,199

 
 
 
 
Net interest-earning assets
$
1,006,715

 
 
 
 
 
$
971,713

 
 
 
 
Tax-equivalent net interest income
 
 
49,221

 
 
 
 
 
48,837

 
 
Tax-equivalent net interest rate spread (1)
 
 
 
 
2.69
%
 
 
 
 
 
2.84
%
Tax-equivalent net interest margin (2)
 
 
 
 
2.92
%
 
 
 
 
 
3.00
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.77
%
 
 
 
 
 
117.82
%
Less tax-equivalent adjustment
 
 
792

 
 
 
 
 
2,069

 
 
Net interest income
 
 
$
48,429

 
 
 
 
 
$
46,768

 
 

(1) Tax-equivalent net interest rate spread represents the difference between the 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
 
September 30, 2018
 
June 30, 2018
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,375,948

 
$
12,451

 
3.65
%
 
$
1,338,021

 
$
12,020

 
3.60
%
Commercial real estate
2,320,375

 
26,105

 
4.40

 
2,306,896

 
24,762

 
4.25

Construction
114,068

 
1,379

 
4.73

 
114,987

 
1,331

 
4.58

Commercial business
841,936

 
9,428

 
4.38

 
816,102

 
9,139

 
4.43

Home equity
584,706

 
7,471

 
5.07

 
588,080

 
7,058

 
4.81

Other consumer
351,892

 
4,532

 
5.11

 
322,103

 
4,062

 
5.06

Investment securities
995,405

 
8,686

 
3.48

 
1,019,491

 
8,998

 
3.53

Federal Home Loan Bank stock
45,016

 
715

 
6.35

 
49,136

 
703

 
5.72

Other earning assets
42,078

 
216

 
2.04

 
30,122

 
116

 
1.55

Total interest-earning assets
6,671,424

 
70,983

 
4.21

 
6,584,938

 
68,189

 
4.12

Allowance for loan losses
(49,823
)
 
 
 
 
 
(48,624
)
 
 
 
 
Non-interest-earning assets
569,471

 
 
 
 
 
555,407

 
 
 
 
Total assets
$
7,191,072

 
 
 
 
 
$
7,091,721

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,515,660

 
$
8,461

 
1.33
%
 
$
2,256,323

 
$
6,163

 
1.10
%
Savings
501,700

 
75

 
0.06

 
517,910

 
77

 
0.06

Certificates of deposit
1,691,382

 
7,231

 
1.70

 
1,749,097

 
6,624

 
1.52

Total interest-bearing deposits
4,708,742

 
15,767

 
1.33

 
4,523,330

 
12,864

 
1.14

Federal Home Loan Bank advances
844,207

 
4,591

 
2.13

 
959,248

 
4,692

 
1.94

Other borrowings
111,760

 
1,404

 
4.92

 
112,112

 
1,393

 
4.91

Total interest-bearing liabilities
5,664,709

 
21,762

 
1.52

 
5,594,690

 
18,949

 
1.35

Non-interest-bearing deposits
750,503

 
 
 
 
 
738,484

 
 
 
 
Other liabilities
71,554

 
 
 
 
 
63,246

 
 
 
 
Total liabilities
6,486,766

 
 
 
 
 
6,396,420

 
 
 
 
Stockholders’ equity
704,306

 
 
 
 
 
695,301

 
 
 
 
Total liabilities and stockholders’ equity
$
7,191,072

 
 
 
 
 
$
7,091,721

 
 
 
 
Net interest-earning assets
$
1,006,715

 
 
 
 
 
$
990,248

 
 
 
 
Tax-equivalent net interest income
 
 
49,221

 
 
 
 
 
49,240

 
 
Tax-equivalent net interest rate spread (1)
 
 
 
 
2.69
%
 
 
 
 
 
2.77
%
Tax-equivalent net interest margin (2)
 
 
 
 
2.92
%
 
 
 
 
 
2.97
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.77
%
 
 
 
 
 
117.70
%
Less tax-equivalent adjustment
 
 
792

 
 
 
 
 
1,059

 
 
Net interest income
 
 
$
48,429

 
 
 
 
 
$
48,181

 
 

(1) Tax-equivalent net interest rate spread represents the difference between the 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 Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,342,955

 
$
35,977

 
3.59
%
 
$
1,285,618

 
$
32,079

 
3.33
%
Commercial real estate
2,303,188

 
74,522

 
4.27

 
2,155,085

 
65,626

 
4.02

Construction
116,144

 
4,035

 
4.58

 
132,158

 
4,261

 
4.25

Commercial business
833,612

 
26,949

 
4.26

 
767,738

 
22,510

 
3.87

Home equity
583,876

 
21,056

 
4.82

 
533,669

 
16,876

 
4.23

Other consumer
324,802

 
12,394

 
5.10

 
231,892

 
8,581

 
4.95

Investment securities
1,018,609

 
26,305

 
3.44

 
1,086,574

 
28,366

 
3.48

Federal Home Loan Bank stock
48,513

 
2,024

 
5.56

 
53,005

 
1,630

 
4.10

Other earning assets
36,856

 
487

 
1.77

 
36,049

 
303

 
1.12

Total interest-earning assets
6,608,555

 
203,749

 
4.09

 
6,281,788

 
180,232

 
3.80

Allowance for loan losses
(48,750
)
 
 
 
 
 
(45,008
)
 
 
 
 
Non-interest-earning assets
559,792

 
 
 
 
 
521,629

 
 
 
 
Total assets
$
7,119,597

 
 
 
 
 
$
6,758,409