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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) January 22, 2019  
__________________________ 
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 January 22, 2019, United Financial Bancorp, Inc. issued a press release describing its results of operation for the quarter ended December 31, 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 January 22, 2019, 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 December 31, 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 January 22, 2019.
 
 
Investor Presentation Dated Fourth 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: January 22, 2019
 
 
 
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 January 22, 2019.
 
 
Investor Presentation Dated Fourth Quarter 2018.
 
 
 
 
 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit



Exhibit 99.1
 396441080_a8kgraphica01a01a16.jpg
 
 
 
For Immediate Release:
 
January 22, 2019
 
 
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
RECORD ANNUAL EARNINGS OF $59.9 MILLION; $1.17 EARNINGS PER SHARE

HARTFORD, Conn., January 22, 2019United 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 December 31, 2018.

The Company reported net income of $12.2 million, or $0.24 per diluted share, for the quarter ended December 31, 2018, compared to net income for the linked quarter of $16.3 million, or $0.32 per diluted share. The Company reported net income of $9.5 million, or $0.19 per diluted share, for the quarter ended December 31, 2017. Net income for the year ended December 31, 2018 was $59.9 million, or $1.17 per diluted share, compared to net income of $54.6 million, or $1.07 per diluted share, for the year ended December 31, 2017.

"In the fourth quarter of 2018, United Financial Bancorp, Inc. delivered annualized linked quarter loan growth of 9% and deposit growth of 12%, while maintaining pristine asset quality and a strong balance sheet," stated William H.W. Crawford, IV, Chief Executive Officer and President of the Company and the Bank. "I would like to thank our United employees for their continued steadfast focus on serving the needs of our customers and communities."

Balance Sheet

Assets totaled $7.36 billion at December 31, 2018, increasing $149.4 million from $7.21 billion at September 30, 2018. At December 31, 2018, total loans were $5.66 billion, representing an increase of $127.9 million, or 2.3%, from the linked quarter. Changes to loan balances during the fourth quarter of 2018 were highlighted by a $40.5 million, or 10.9%, increase in other consumer loans, a $30.2 million, or 2.4%, increase in residential real estate loans, a $25.7 million, or 3.0%, increase in commercial business loans, a $22.2 million, or 1.2%, increase in investor non-owner occupied commercial real estate loans, a $9.3 million, or 11.8%, increase in commercial construction loans, and an $8.5 million, or 2.0%, increase in owner-occupied commercial real estate loans. Slightly offsetting the increased loan balances above was a $12.1 million, or 37.0%, decrease in residential construction loans from the linked quarter. Loans held for sale also decreased $8.2 million, or 9.4%, from the linked quarter. Total cash and cash equivalents increased $19.4 million, or 24.6%, from the linked quarter.


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Deposits totaled $5.67 billion at December 31, 2018 and increased by $170.2 million, or 3.1%, from $5.50 billion at September 30, 2018. The increase in deposits was positively impacted by the Webster Bank deposit acquisition of $109.4 million that occurred in the beginning of October 2018. Increases in deposit balances during the fourth quarter of 2018 were highlighted by a $121.2 million, or 7.3%, increase in certificates of deposit balances, a $40.6 million, or 5.3%, increase in demand deposit balances, a $17.1 million, or 3.6%, increase in savings deposit balances, and an $11.8 million, or 1.4%, increase in NOW checking account balances. Slightly offsetting these increases was a $20.5 million, or 1.2%, decrease in money market account balances. The growth in the certificate of deposit account balances was attributable to the success of two retail pricing campaigns executed during the fourth quarter.

Total Federal Home Loan Bank advances decreased by $15.7 million, or 1.9%, over the linked quarter as the Company utilized excess cash from deposit growth to pay off maturing advances.

Net Interest Income

Net interest income decreased by $67,000, or 0.1%, on a linked quarter basis, to $48.4 million, primarily attributable to an increase in loan interest income of $2.2 million, or 3.5%, to $63.2 million, offset by an increase in interest expense of $2.1 million, or 9.6%, to $23.9 million. Average interest-earning assets increased by $37.3 million, or 0.6%, on a linked quarter basis, primarily due to growth in average loan balances, which increased by $61.8 million, or 1.1%. Average loan balance growth was driven by a $38.3 million, or 10.9%, increase in average other consumer loans, a $21.7 million, or 1.6%, increase in average residential real estate loans, and a $19.4 million, or 2.3%, increase in average commercial business loans. Slightly offsetting the increases was a $17.6 million, or 0.8%, decrease in average commercial real estate loans.

Interest expense increased by $2.1 million, or 9.6%, to $23.9 million during the fourth quarter of 2018, from $21.8 million in the linked quarter. Average interest-bearing deposit balances increased by $141.5 million, or 3.0%, on a linked quarter basis, primarily driven by a $68.3 million, or 2.7%, increase in average NOW and money market account balances, a $68.0 million, or 4.0%, increase in average certificates of deposits, and a $5.2 million, or 1.0%, increase in average savings account balances. Average non-interest bearing deposits increased by $18.4 million, or 2.5%, as compared to the linked quarter. Average Federal Home Loan Bank of Boston advances decreased by $111.2 million, or 13.2%, 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 retail deposit acquisition strategies.

The tax-equivalent net interest margin decreased by two basis points to 2.90% in the fourth quarter of 2018, from 2.92% in the linked period. The decline in the net interest margin was driven by a 14 basis point increase in the cost of interest-bearing liabilities, which was partially offset by a ten basis point increase in the yield of interest-earning assets. The interest-earning asset yield improvement was largely driven by a 33 basis point increase in the yield on commercial business loans, a 25 basis point increase in the yield on home equity loans, an eight basis point increase in the yield on residential real estate loans, and a three basis point increase in the yield on commercial real estate loans. The total cost of funds increased by 12 basis points to 1.48% in the fourth quarter of 2018 driven by a 16 basis point increase in the cost of interest-bearing deposits and a 17 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 $2.6 million for the quarter ended December 31, 2018 as compared to $2.0 million for the linked quarter. Net charge-offs for the quarter ended December 31, 2018 totaled $891,000, or 0.06%, as a percentage of average loans outstanding, as compared to $1.3 million, or 0.09%, as a percentage of average loans for the quarter ended September 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 decreased slightly by $62,000, or 0.6%, to $9.5 million for the quarter ended December 31, 2018 from $9.6 million in the linked quarter. The decrease in the fourth quarter's non-interest income was driven primarily by decreases in income from mortgage banking activities 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 primarily by an increase in service charges and fees, as well as bank-owned life insurance income.

Non-Interest Expense

Non-interest expense for the quarter ended December 31, 2018 totaled $43.7 million and increased by $4.8 million, or 12.3%, from the linked quarter. The increase in non-interest expense during the quarter was primarily due to increases in salaries and employee benefits, occupancy and equipment, and the core deposit intangible amortization. These increases were primarily offset by decreases in other expenses and FDIC insurance assessment expenses as compared to the linked quarter.

The primary driver of the increase in non-interest expense occurred late in the quarter as the Company shifted its mortgage banking strategy to reflect our customers' preference to conduct business with us over the internet and through our direct sales channel. Consequently, we reduced staffing in our mortgage division, resulting in a $2.2 million severance expense (pre-tax) in the quarter ending December 31, 2018. Other notable increases in the quarter included a change in Company policy related to the carryover of unused vacation days by employees year-over-year, resulting in the Company recording $439,000 of additional expense. The Company also recorded lease impairment expense of $466,000 as a result of branch consolidation. Additionally, the Webster Bank branch acquisition also closed in the fourth quarter, resulting in $371,000 of other expenses related to this transaction.

Asset Quality

Asset quality remained strong and stable for the period, with non-performing assets increasing by $3.0 million to $32.1 million at December 31, 2018 from $29.0 million at September 30, 2018. The ratio of non-performing assets to total assets for the quarter ended December 31, 2018 was 0.44%, as compared to 0.40% in the linked quarter.


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Capital

The Company reported Tangible Common Equity ("TCE") of $589.7 million, or 8.1% of average assets, for the quarter ended December 31, 2018. Tangible book value per share decreased slightly to $11.54 at December 31, 2018 from $11.55 at September 30, 2018. The decrease was primarily driven by the cash dividend payment to shareholders of $0.12 per share, an increase in intangibles associated with the Webster Bank branch acquisition, and the continued repurchase of Company stock during the quarter, which was slightly offset by the Company's net income of $12.2 million. Book value per share at December 31, 2018 was $13.94, as compared to $13.88 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 February 1, 2019 and payable on February 13, 2019. This dividend equates to a 3.04% annualized yield based on the $15.78 average closing price of the Company’s common stock in the fourth quarter of 2018. The Company has paid dividends for 51 consecutive quarters.

Investor Conference Call

United Financial Bancorp, Inc. will host a conference call on Wednesday, January 23, 2019 at 10:00 a.m. Eastern Time (ET) to discuss the Company’s fourth 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 February 6, 2019 by calling 1-877-344-7529 and entering conference number 10127439. 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.

Annual Meeting

The Board of Directors approved May 13, 2019 as the date of the Company's 2019 Annual Meeting of Shareholders (the "Annual Meeting") and set the record date on which the Company's shareholders who will be eligible to vote at the Annual Meeting as the close of business on March 4, 2019.

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, small business, wealth management and consumer banking products and services to customers throughout Connecticut, Massachusetts and Rhode Island. United Bank is a financially strong, leading New England bank headquartered in Hartford, Connecticut with more than 50 branches in three states. United Financial Bancorp, Inc. trades on the NASDAQ Global Select Stock Exchange under the ticker symbol “UBNK.” At December 31, 2018, the Company had $7.36 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

UBNK - United Financial Bancorp, Inc.
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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.

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 December 31,
 
For the Year Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
63,227

 
$
52,758

 
$
237,026

 
$
200,734

Securities-taxable interest
 
5,705

 
5,643

 
22,994

 
22,550

Securities-non-taxable interest
 
2,339

 
2,571

 
9,469

 
9,679

Securities-dividends
 
702

 
669

 
2,823

 
2,902

Interest-bearing deposits
 
250

 
86

 
726

 
389

Total interest and dividend income
 
72,223

 
61,727

 
273,038

 
236,254

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
18,183

 
9,958

 
57,841

 
33,565

Borrowed funds
 
5,678

 
4,920

 
23,682

 
18,447

Total interest expense
 
23,861

 
14,878

 
81,523

 
52,012

Net interest income
 
48,362

 
46,849

 
191,515

 
184,242

Provision for loan losses
 
2,618

 
2,250

 
8,914

 
9,396

Net interest income after provision for loan losses
 
45,744

 
44,599

 
182,601

 
174,846

Non-interest income:
 
 
 
 
 
 
 
 
Service charges and fees
 
7,447

 
6,031

 
26,771

 
25,374

Net gain from sales of securities
 
25

 
72

 
145

 
782

Income from mortgage banking activities
 
698

 
1,184

 
4,759

 
5,539

Bank-owned life insurance income
 
1,517

 
1,939

 
6,294

 
5,462

Net loss on limited partnership investments
 
(405
)
 
(1,441
)
 
(2,176
)
 
(3,023
)
Other income (loss)
 
211

 
(204
)
 
904

 
431

Total non-interest income
 
9,493

 
7,581

 
36,697

 
34,565

Non-interest expense:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
25,341

 
20,752

 
91,295

 
80,061

Service bureau fees
 
2,309

 
2,304

 
8,901

 
9,263

Occupancy and equipment
 
6,384

 
5,036

 
20,488

 
16,902

Professional fees
 
1,136

 
996

 
4,418

 
4,305

Marketing and promotions
 
1,108

 
1,011

 
4,101

 
4,047

FDIC insurance assessments
 
611

 
821

 
2,740

 
3,076

Core deposit intangible amortization
 
420

 
336

 
1,350

 
1,411

Other
 
6,409

 
5,981

 
24,474

 
23,685

Total non-interest expense
 
43,718

 
37,237

 
157,767

 
142,750

Income before income taxes
 
11,519

 
14,943

 
61,531

 
66,661

Provision (benefit) for income taxes
 
(646
)
 
5,442

 
1,625

 
12,043

Net income
 
$
12,165

 
$
9,501

 
$
59,906

 
$
54,618

 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.24

 
$
0.19

 
$
1.18

 
$
1.09

Diluted
 
$
0.24

 
$
0.19

 
$
1.17

 
$
1.07

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
50,613,498

 
50,392,382

 
50,555,212

 
50,283,071

Diluted
 
50,970,000

 
51,024,881

 
51,012,239

 
50,922,652


 
F - 1
 




United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
 
 
For the Three Months Ended
 
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
63,227

 
$
61,061

 
$
57,958

 
$
54,780

 
$
52,758

Securities-taxable interest
 
5,705

 
5,822

 
5,969

 
5,498

 
5,643

Securities-non-taxable interest
 
2,339

 
2,347

 
2,354

 
2,429

 
2,571

Securities-dividends
 
702

 
748

 
736

 
637

 
669

Interest-bearing deposits
 
250

 
213

 
113

 
150

 
86

Total interest and dividend income
 
72,223

 
70,191

 
67,130

 
63,494

 
61,727

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
18,183

 
15,767

 
12,864

 
11,027

 
9,958

Borrowed funds
 
5,678

 
5,995

 
6,085

 
5,924

 
4,920

Total interest expense
 
23,861

 
21,762

 
18,949

 
16,951

 
14,878

Net interest income
 
48,362

 
48,429

 
48,181

 
46,543

 
46,849

Provision for loan losses
 
2,618

 
2,007

 
2,350

 
1,939

 
2,250

Net interest income after provision for loan losses
 
45,744

 
46,422

 
45,831

 
44,604

 
44,599

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
7,447

 
6,623

 
6,542

 
6,159

 
6,031

Net gain (loss) from sales of securities
 
25

 
(58
)
 
62

 
116

 
72

Income from mortgage banking activities
 
698

 
1,486

 
846

 
1,729

 
1,184

Bank-owned life insurance income
 
1,517

 
1,460

 
1,671

 
1,646

 
1,939

Net loss on limited partnership investments
 
(405
)
 
(221
)
 
(960
)
 
(590
)
 
(1,441
)
Other income (loss)
 
211

 
265

 
199

 
229

 
(204
)
Total non-interest income
 
9,493

 
9,555

 
8,360

 
9,289

 
7,581

Non-interest expense:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
25,341

 
22,643

 
22,113

 
21,198

 
20,752

Service bureau fees
 
2,309

 
2,209

 
2,165

 
2,218

 
2,304

Occupancy and equipment
 
6,384

 
4,487

 
4,668

 
4,949

 
5,036

Professional fees
 
1,136

 
1,013

 
1,105

 
1,164

 
996

Marketing and promotions
 
1,108

 
1,119

 
1,189

 
685

 
1,011

FDIC insurance assessments
 
611

 
655

 
735

 
739

 
821

Core deposit intangible amortization
 
420

 
288

 
305

 
337

 
336

Other
 
6,409

 
6,529

 
6,090

 
5,446

 
5,981

Total non-interest expense
 
43,718

 
38,943

 
38,370

 
36,736

 
37,237

Income before income taxes
 
11,519

 
17,034

 
15,821

 
17,157

 
14,943

Provision (benefit) for income taxes
 
(646
)
 
726

 
175

 
1,370

 
5,442

Net income
 
$
12,165

 
$
16,308

 
$
15,646

 
$
15,787

 
$
9,501

 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.24

 
$
0.32

 
$
0.31

 
$
0.31

 
$
0.19

Diluted
 
$
0.24

 
$
0.32

 
$
0.31

 
$
0.31

 
$
0.19

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
50,613,498

 
50,624,832

 
50,504,273

 
50,474,942

 
50,392,382

Diluted
 
50,970,000

 
51,104,776

 
50,974,283

 
50,996,596

 
51,024,881


 
F - 2
 




United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
 
 
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
ASSETS
 
(In thousands)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
36,434

 
$
48,786

 
$
62,188

 
$
45,332

 
$
56,661

Short-term investments
 
61,530

 
29,809

 
46,987

 
23,910

 
32,007

Total cash and cash equivalents
 
97,964

 
78,595

 
109,175

 
69,242

 
88,668

Available for sale securities – At fair value
 
973,347

 
972,035

 
1,006,135

 
1,031,277

 
1,050,787

Held to maturity securities – At amortized cost
 

 

 

 

 
13,598

Loans held for sale
 
78,788

 
86,948

 
85,458

 
63,394

 
114,073

Loans:
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
443,398

 
434,906

 
418,338

 
442,938

 
445,820

Investor non-owner occupied
 
1,911,070

 
1,888,848

 
1,927,960

 
1,842,898

 
1,854,459

Construction
 
87,493

 
78,235

 
82,883

 
84,717

 
78,083

Total commercial real estate loans
 
2,441,961

 
2,401,989

 
2,429,181

 
2,370,553

 
2,378,362

Commercial business loans
 
886,770

 
861,030

 
841,142

 
846,182

 
840,312

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
1,313,373

 
1,283,126

 
1,252,001

 
1,235,197

 
1,204,401

Home equity
 
583,454

 
579,907

 
588,638

 
582,285

 
583,180

Residential construction
 
20,632

 
32,750

 
32,063

 
37,579

 
40,947

Other consumer
 
410,249

 
369,781

 
332,402

 
310,439

 
292,781

Total consumer loans
 
2,327,708

 
2,265,564

 
2,205,104

 
2,165,500

 
2,121,309

Total loans
 
5,656,439

 
5,528,583

 
5,475,427

 
5,382,235

 
5,339,983

Net deferred loan costs and premiums
 
17,786

 
16,603

 
15,502

 
14,724

 
14,794

Allowance for loan losses
 
(51,636
)
 
(49,909
)
 
(49,163
)
 
(47,915
)
 
(47,099
)
Loans receivable - net
 
5,622,589

 
5,495,277

 
5,441,766

 
5,349,044

 
5,307,678

Federal Home Loan Bank of Boston stock, at cost
 
41,407

 
42,032

 
46,734

 
49,895

 
50,194

Accrued interest receivable
 
24,823

 
25,485

 
23,209

 
22,333

 
22,332

Deferred tax asset, net
 
32,706

 
31,473

 
30,190

 
28,710

 
25,656

Premises and equipment, net
 
68,657

 
67,612

 
67,614

 
67,619

 
67,508

Goodwill
 
116,769

 
115,281

 
115,281

 
115,281

 
115,281

Core deposit intangible asset
 
6,027

 
3,561

 
3,849

 
4,154

 
4,491

Cash surrender value of bank-owned life insurance
 
193,429

 
181,928

 
180,490

 
179,556

 
148,300

Other assets
 
100,368

 
107,271

 
98,695

 
88,169

 
105,593

Total assets
 
$
7,356,874

 
$
7,207,498

 
$
7,208,596

 
$
7,068,674

 
$
7,114,159

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
F - 3
 




 
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing
 
$
799,785

 
$
759,210

 
$
770,982

 
$
753,575

 
$
778,576

Interest-bearing
 
4,870,814

 
4,741,153

 
4,622,394

 
4,528,935

 
4,419,645

Total deposits
 
5,670,599

 
5,500,363

 
5,393,376

 
5,282,510

 
5,198,221

Mortgagors’ and investor escrow accounts
 
4,685

 
9,597

 
14,526

 
11,096

 
7,545

Federal Home Loan Bank advances and other borrowings
 
899,626

 
926,592

 
1,041,896

 
1,030,735

 
1,165,054

Accrued expenses and other liabilities
 
69,446

 
61,128

 
56,921

 
51,333

 
50,011

Total liabilities
 
6,644,356

 
6,497,680

 
6,506,719

 
6,375,674

 
6,420,831

Total stockholders’ equity
 
712,518

 
709,818

 
701,877

 
693,000

 
693,328

Total liabilities and stockholders’ equity
 
$
7,356,874

 
$
7,207,498

 
$
7,208,596

 
$
7,068,674

 
$
7,114,159




 
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
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
 
December 31,
2017
Share Data:
 
 
 
 
 
 
 
 
 
Basic net income per share
$
0.24

 
$
0.32

 
$
0.31

 
$
0.31

 
$
0.19

Diluted net income per share
0.24

 
0.32

 
0.31

 
0.31

 
0.19

Dividends declared per share
0.12

 
0.12

 
0.12

 
0.12

 
0.12

Tangible book value per share
$
11.54

 
$
11.55

 
$
11.40

 
$
11.25

 
$
11.24

Key Statistics:
 
 
 
 
 
 
 
 
 
Total revenue
$
57,855

 
$
57,984

 
$
56,541

 
$
55,832

 
$
54,430

Total non-interest expense
43,718

 
38,943

 
38,370

 
36,736

 
37,327

Average earning assets
6,708,701

 
6,671,424

 
6,584,938

 
6,568,168

 
6,480,966

Key Ratios:
 
 
 
 
 
 
 
 
 
Return on average assets (annualized)
0.67
%
 
0.91
%
 
0.88
%
 
0.89
%
 
0.54
%
Return on average equity (annualized)
6.89
%
 
9.26
%
 
9.00
%
 
9.15
%
 
5.50
%
Tax-equivalent net interest margin (annualized)
2.90
%
 
2.92
%
 
2.97
%
 
2.90
%
 
2.98
%
Residential Mortgage Production:
 
 
 
 
 
 
 
 
 
Dollar volume (total)
$
128,209

 
$
143,673

 
$
140,409

 
$
94,433

 
$
135,522

Mortgages originated for purchases
101,266

 
111,555

 
110,351

 
63,193

 
83,181

Loans sold
108,663

 
99,372

 
99,637

 
99,899

 
94,738

Income from mortgage banking activities
698

 
1,486

 
846

 
1,729

 
1,184

Non-performing Assets:
 
 
 
 
 
 
 
 
 
Residential real estate
$
13,217

 
$
11,949

 
$
11,221

 
$
11,663

 
$
11,824

Home equity
4,735

 
4,005

 
4,607

 
4,698

 
4,968

Investor-owned commercial real estate
1,131

 
1,525

 
2,400

 
2,863

 
1,821

Owner-occupied commercial real estate
2,450

 
1,202

 
2,176

 
2,326

 
1,664

Construction
199

 
243

 
250

 
273

 
1,398

Commercial business
944

 
985

 
1,196

 
1,579

 
1,477

Other consumer
1,030

 
597

 
237

 
34

 
35

Non-accrual loans
23,706

 
20,506

 
22,087

 
23,436

 
23,187

Troubled debt restructured – non-accruing
6,971

 
6,706

 
7,330

 
8,308

 
8,475

Total non-performing loans
30,677

 
27,212

 
29,417

 
31,744

 
31,662

Other real estate owned
1,389

 
1,808

 
1,855

 
1,935

 
2,154

Total non-performing assets
$
32,066

 
$
29,020

 
$
31,272

 
$
33,679

 
$
33,816

Non-performing loans to total loans
0.54
%
 
0.49
%
 
0.54
%
 
0.59
%
 
0.59
%
Non-performing assets to total assets
0.44
%
 
0.40
%
 
0.43
%
 
0.48
%
 
0.48
%
Allowance for loan losses to non-performing loans
168.32
%
 
183.41
%
 
167.12
%
 
150.94
%
 
148.76
%
Allowance for loan losses to total loans
0.91
%
 
0.90
%
 
0.90
%
 
0.89
%
 
0.88
%
Non-GAAP Ratios: (1)
 
 
 
 
 
 
 
 
 
Non-interest expense to average assets (annualized)
2.41
%
 
2.17
%
 
2.16
%
 
2.08
%
 
2.13
%
Efficiency ratio (2)
69.18
%
 
65.61
%
 
65.18
%
 
63.97
%
 
63.53
%
Cost of funds (annualized) (3)
1.48
%
 
1.36
%
 
1.20
%
 
1.07
%
 
0.96
%
Total revenue growth rate
(0.22
)%
 
2.55
%
 
1.27
%
 
2.58
%
 
(1.38
)%
Total revenue growth rate (annualized)
(0.89
)%
 
10.21
%
 
5.08
%
 
10.30
%
 
(5.54
)%
Average earning asset growth rate
0.56
%
 
1.31
%
 
0.26
%
 
1.35
%
 
0.89
%
Average earning asset growth rate (annualized)
2.24
%
 
5.25
%
 
1.02
%
 
5.38
%
 
3.56
%
Return on average tangible common equity (annualized) (2)
8.55
%
 
11.30
%
 
11.03
%
 
11.25
%
 
6.81
%
Pre-provision net revenue to average assets (2)
1.00
%
 
1.12
%
 
1.14
%
 
1.15
%
 
1.19
%
(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
 
December 31, 2018
 
December 31, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,397,669

 
$
12,929

 
3.70
%
 
$
1,310,352

 
$
11,343

 
3.47
%
Commercial real estate
2,302,741

 
26,085

 
4.43

 
2,234,878

 
23,089

 
4.04

Construction
113,617

 
1,405

 
4.84

 
122,151

 
1,453

 
4.66

Commercial business
861,311

 
10,481

 
4.76

 
813,457

 
7,994

 
3.85

Home equity
585,178

 
7,848

 
5.32

 
569,021

 
6,293

 
4.39

Other consumer
390,237

 
4,931

 
5.01

 
278,465

 
3,309

 
4.71

Investment securities
967,881

 
8,564

 
3.53

 
1,074,840

 
9,713

 
3.60

Federal Home Loan Bank stock
40,428

 
665

 
6.58

 
47,964

 
564

 
4.71

Other earning assets
49,639

 
253

 
2.02

 
29,838

 
86

 
1.15

Total interest-earning assets
6,708,701

 
73,161

 
4.31

 
6,480,966

 
63,844

 
3.89

Allowance for loan losses
(50,754
)
 
 
 
 
 
(46,880
)
 
 
 
 
Non-interest-earning assets
586,449

 
 
 
 
 
542,596

 
 
 
 
Total assets
$
7,244,396

 
 
 
 
 
$
6,976,682

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,583,982

 
$
9,641

 
1.48
%
 
$
2,125,177

 
$
4,286

 
0.80
%
Savings
506,880

 
76

 
0.06

 
517,993

 
77

 
0.06

Certificates of deposit
1,759,382

 
8,466

 
1.91

 
1,765,007

 
5,595

 
1.26

Total interest-bearing deposits
4,850,244

 
18,183

 
1.49

 
4,408,177

 
9,958

 
0.90

Federal Home Loan Bank advances
732,995

 
4,307

 
2.30

 
954,159

 
3,538

 
1.45

Other borrowings
107,365

 
1,371

 
5.00

 
117,578

 
1,382

 
4.60

Total interest-bearing liabilities
5,690,604

 
23,861

 
1.66

 
5,479,914

 
14,878

 
1.07

Non-interest-bearing deposits
768,916

 
 
 
 
 
740,007

 
 
 
 
Other liabilities
78,752

 
 
 
 
 
65,757

 
 
 
 
Total liabilities
6,538,272

 
 
 
 
 
6,285,678

 
 
 
 
Stockholders’ equity
706,124

 
 
 
 
 
691,004

 
 
 
 
Total liabilities and stockholders’ equity
$
7,244,396

 
 
 
 
 
$
6,976,682

 
 
 
 
Net interest-earning assets
$
1,018,097

 
 
 
 
 
$
1,001,052

 
 
 
 
Tax-equivalent net interest income
 
 
49,300

 
 
 
 
 
48,966

 
 
Tax-equivalent net interest rate spread (1)
 
 
 
 
2.65
%
 
 
 
 
 
2.82
%
Tax-equivalent net interest margin (2)
 
 
 
 
2.90
%
 
 
 
 
 
2.98
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.89
%
 
 
 
 
 
118.27
%
Less tax-equivalent adjustment
 
 
938

 
 
 
 
 
2,117

 
 
Net interest income
 
 
$
48,362

 
 
 
 
 
$
46,849

 
 

(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
 
December 31, 2018
 
September 30, 2018
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,397,669

 
$
12,929

 
3.70
%
 
$
1,375,948

 
$
12,451

 
3.62
%
Commercial real estate
2,302,741

 
26,085

 
4.43

 
2,320,375

 
26,105

 
4.40

Construction
113,617

 
1,405

 
4.84

 
114,068

 
1,379

 
4.73

Commercial business
861,311

 
10,481

 
4.76

 
841,936

 
9,531

 
4.43

Home equity
585,178

 
7,848

 
5.32

 
584,706

 
7,471

 
5.07

Other consumer
390,237

 
4,931

 
5.01

 
351,892

 
4,532

 
5.11

Investment securities
967,881

 
8,564

 
3.53

 
995,405

 
8,686

 
3.48

Federal Home Loan Bank stock
40,428

 
665

 
6.58

 
45,016

 
715

 
6.35

Other earning assets
49,639

 
253

 
2.02

 
42,078

 
216

 
2.04

Total interest-earning assets
6,708,701

 
73,161

 
4.31

 
6,671,424

 
71,086

 
4.21

Allowance for loan losses
(50,754
)
 
 
 
 
 
(49,823
)
 
 
 
 
Non-interest-earning assets
586,449

 
 
 
 
 
569,471

 
 
 
 
Total assets
$
7,244,396

 
 
 
 
 
$
7,191,072

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,583,982

 
$
9,641

 
1.48
%
 
$
2,515,660

 
$
8,461

 
1.33
%
Savings
506,880

 
76

 
0.06

 
501,700

 
75

 
0.06

Certificates of deposit
1,759,382

 
8,466

 
1.91

 
1,691,382

 
7,231

 
1.70

Total interest-bearing deposits
4,850,244

 
18,183

 
1.49

 
4,708,742

 
15,767

 
1.33

Federal Home Loan Bank advances
732,995

 
4,307

 
2.30

 
844,207

 
4,591

 
2.13

Other borrowings
107,365

 
1,371

 
5.00

 
111,760

 
1,404

 
4.92

Total interest-bearing liabilities
5,690,604

 
23,861

 
1.66

 
5,664,709

 
21,762

 
1.52

Non-interest-bearing deposits
768,916

 
 
 
 
 
750,503

 
 
 
 
Other liabilities
78,752

 
 
 
 
 
71,554

 
 
 
 
Total liabilities
6,538,272

 
 
 
 
 
6,486,766

 
 
 
 
Stockholders’ equity
706,124

 
 
 
 
 
704,306

 
 
 
 
Total liabilities and stockholders’ equity
$
7,244,396

 
 
 
 
 
$
7,191,072

 
 
 
 
Net interest-earning assets
$
1,018,097

 
 
 
 
 
$
1,006,715

 
 
 
 
Tax-equivalent net interest income
 
 
49,300

 
 
 
 
 
49,324

 
 
Tax-equivalent net interest rate spread (1)
 
 
 
 
2.65
%
 
 
 
 
 
2.69
%
Tax-equivalent net interest margin (2)
 
 
 
 
2.90
%
 
 
 
 
 
2.92
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.89
%
 
 
 
 
 
117.77
%
Less tax-equivalent adjustment
 
 
938

 
 
 
 
 
895

 
 
Net interest income
 
 
$
48,362

 
 
 
 
 
$
48,429

 
 

(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 Years Ended
 
December 31, 2018
 
December 31, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,356,746

 
$
48,905

 
3.60
%
 
$
1,291,852

 
$
43,422

 
3.36
%
Commercial real estate
2,303,075

 
100,608

 
4.31

 
2,175,197

 
88,716

 
4.02

Construction
115,507

 
5,440

 
4.65

 
129,636

 
5,714

 
4.35

Commercial business
840,594

 
37,533

 
4.40

 
779,262

 
30,504

 
3.86

Home equity
584,204

 
28,903

 
4.95

 
542,579

 
23,168

 
4.27

Other consumer
341,295

 
17,326

 
5.08

 
243,631

 
11,890

 
4.88

Investment securities
1,005,823

 
34,869

 
3.46

 
1,083,616

 
38,078

 
3.51

Federal Home Loan Bank stock
46,475

 
2,689

 
5.78

 
51,735

 
2,195

 
4.24

Other earning assets
40,078

 
740

 
1.85

 
34,484

 
389

 
1.13

Total interest-earning assets
6,633,797

 
277,013

 
4.15

 
6,331,992

 
244,076

 
3.83

Allowance for loan losses
(49,255
)
 
 
 
 
 
(45,480
)
 
 
 
 
Non-interest-earning assets
566,511

 
 
 
 
 
526,914

 
 
 
 
Total assets
$