United Financial Bancorp, Inc. ("United Financial" or the
"Company") (NASDAQ:UBNK), the holding company for United Bank (the
"Bank"), announced results for the quarter ended September 30,
2017.
The Company reported net income of $15.2
million, or $0.30 per diluted share, for the quarter ended
September 30, 2017, compared to net income for the linked
quarter of $16.2 million, or $0.32 per diluted share. The Company
reported net income of $14.2 million, or $0.28 per diluted share,
for the quarter ended September 30, 2016.
"Management remains focused on our Four Key
Objectives outlined in April 2016. In the third quarter of 2017, we
delivered 7% year-over-year diluted earnings per share ("EPS")
growth, 8% annualized linked quarter tangible book value growth,
and delivered 40% of net earnings to our shareholders via a cash
dividend, all while maintaining strong capital, liquidity, and
asset quality. Annualized loan and deposit growth was 12% and 13%,
respectively, for the quarter," stated William H.W. Crawford, IV,
Chief Executive Officer of the Company and the Bank. "As always, I
want to thank our United Bank teammates for their relentless focus
on serving our customers and communities."
Balance Sheet
Assets totaled $6.98 billion at
September 30, 2017 and increased $100.3 million, or 1.5%, from
$6.88 billion at June 30, 2017. At September 30, 2017, total
loans were $5.21 billion, representing an increase of $151.6
million, or 3.0%, from the linked quarter. Changes to loan balances
during the third quarter of 2017 were highlighted by a $28.5
million, or 3.6%, increase in commercial business loans, a $23.7
million, or 4.4%, increase in home equity loans, and a $13.1
million, or 3.1%, increase in owner-occupied commercial real estate
loans. Total residential mortgages increased during the third
quarter of 2017 by $39.2 million, or 3.3%. Loans held for sale
decreased $68.1 million, or 43.2%, from the linked quarter, as the
Company delivered a large portion of the held for sale portfolio to
third party investors at the end of the quarter. Total cash and
cash equivalents increased $23.7 million, or 31.6%, from the linked
quarter, while the available-for-sale securities portfolio remained
relatively flat, with a slight decrease of $5.3 million, or
0.5%.
Deposits totaled $5.15 billion at
September 30, 2017 and increased by $159.5 million, or 3.2%,
from $4.99 billion at June 30, 2017. In the third quarter of 2017,
NOW checking deposits increased by $47.2 million, or 7.5%, from the
linked quarter, while non-interest bearing checking deposits
increased by $3.2 million, or 0.4%. Money market
deposits increased by $160.1 million, or 11.8%, from the linked
quarter. The increases in NOW and money market deposits are
reflective of continued success in sourcing new commercial deposit
relationships, coupled with the seasonal return of municipal
deposits. These increases were slightly offset by a $34.7 million,
or 2.0%, decrease in certificates of deposit.
Total Federal Home Loan Bank advances decreased
by $39.7 million, or 4.0%, over the linked quarter, while other
borrowings decreased by $30.4 million, or 20.4%, due to a decrease
in the use of reverse repurchase borrowings.
Net Interest Income
Income growth in the third quarter of 2017, as
compared to the linked quarter, was highlighted by an increase in
net interest income of $440,000, or 0.9%, to $46.8 million,
primarily attributable to an increase in interest income of $2.2
million, or 3.8%, to $60.8 million. Average interest-earning
assets increased by $118.9 million, or 1.9%, primarily due to
growth in average loan balances, which increased by $105.7 million,
or 2.1%. Average loan balance growth was driven by a $57.7
million, or 2.7%, increase in average commercial real estate loans,
a $25.7 million, or 2.0%, increase in average residential real
estate loans, inclusive of loans held for sale, and a $11.0
million, or 1.4%, increase in average commercial business
loans.
Interest expense increased by $1.8 million to
$14.0 million during the third quarter of 2017, from $12.2 million
in the linked quarter. Average balance shifts in the third quarter
of 2017 included a $175.9 million, or 9.1%, increase in average NOW
and money market deposits, and a $16.2 million, or 1.0%, increase
in average certificates of deposit. The growth observed in average
deposit balances was largely driven by continued success in new
account acquisition strategies.
The non-GAAP tax equivalent net interest margin
decreased by four basis points to 3.00% in the third quarter from
the linked period. The decline was largely driven by duration
extension decisions made in the period, resulting in an increase in
the cost of interest-bearing liabilities. The interest-earning
asset yield improvement was largely driven by a seven basis point
increase in the yield on commercial real estate loans, which
represents 34.4% of the Company's interest-earning assets, a 13
basis point increase in the average home equity loan yield, and a
17 basis point increase in the average commercial business loan
yield. The increase in the loan portfolio yield was further driven
by increases in the 1-month LIBOR and Prime rate indices. The total
funding cost increased by ten basis points to 0.91% in the third
quarter driven by a ten basis point increase in the cost of
interest-bearing deposits, which represents 80.1% of costing
liabilities, while the cost of Federal Home Loan Bank advances
increased 19 basis points.
Provision for Loan Losses
The provision for loan losses remained
relatively flat, totaling $2.6 million at September 30, 2017
as compared to $2.3 million for the linked quarter. Net
charge-offs for the quarter ended September 30, 2017 totaled
$1.3 million, or 0.10%, as a percentage of average loans
outstanding, as compared to $534,000, or 0.04% as a percentage of
average loans for the quarter ended June 30, 2017. 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 economic and credit conditions, the direction of
real estate values and delinquency trends.
Non-Interest Income
Total non-interest income decreased by $1.4
million, or 14.8%, to $8.1 million for the quarter ended
September 30, 2017 from $9.5 million in the linked
quarter. The decrease in the third quarter's non-interest
income was driven primarily by a decrease in service charges and
fees and mortgage banking activities as compared to the linked
quarter. Additionally, there were higher losses on limited
partnership investments as compared to the linked quarter.
Non-Interest Expense
Non-interest expense for the quarter ended
September 30, 2017 totaled $34.9 million and decreased by
$70,000, or 0.2%, from the linked quarter. The decrease in
non-interest expense during the quarter was primarily due to a
decrease in marketing and promotions and other expenses, partially
offset by an increase in salaries and employee benefits,
professional fees, and occupancy and equipment expenses as compared
to the linked quarter.
Asset Quality
Asset quality remained strong and stable for the
period, with non-performing assets decreasing by $432,000 to $33.9
million at September 30, 2017 from $34.3 million at
June 30, 2017. The ratio of non-performing assets to total
assets for the quarter ended September 30, 2017 was 0.49%, as
compared to 0.50% in the linked quarter.
Capital
The Company reported Tangible Common Equity
("TCE") of $570.5 million, or 8.3% of average assets, at
September 30, 2017. Tangible book value per share increased to
$11.23 at September 30, 2017 from $11.01 at June 30,
2017. The increase was primarily driven by the impact of the
Company's net income of $15.2 million, partially offset by the cash
dividend payment to shareholders of $0.12 per share, which reduced
stockholders' equity by $6.1 million. Book value per share at
September 30, 2017 was $13.59.
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 27, 2017 and payable on
November 8, 2017. This dividend equates to a 2.76% annualized yield
based on the $17.38 average closing price of the Company’s common
stock in the third quarter of 2017. The Company has paid dividends
for 46 consecutive quarters.
Investor Conference Call
United Financial Bancorp, Inc. will host a
conference call on Wednesday, October 18, 2017 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 November 1, 2017 by calling 1-877-344-7529 and entering
conference number 10112041. 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,
2017, the Company had $6.98 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.
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.
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, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Interest and
dividend income: |
|
(In thousands, except share
data) |
Loans |
|
$ |
51,809 |
|
|
$ |
45,331 |
|
|
$ |
147,976 |
|
|
$ |
134,359 |
|
Securities-taxable interest |
|
5,604 |
|
|
4,808 |
|
|
16,907 |
|
|
14,830 |
|
Securities-non-taxable interest |
|
2,499 |
|
|
2,140 |
|
|
7,108 |
|
|
6,201 |
|
Securities-dividends |
|
736 |
|
|
990 |
|
|
2,233 |
|
|
2,934 |
|
Interest-bearing deposits |
|
151 |
|
|
67 |
|
|
303 |
|
|
207 |
|
Total
interest and dividend income |
|
60,799 |
|
|
53,336 |
|
|
174,527 |
|
|
158,531 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
Deposits |
|
9,185 |
|
|
6,279 |
|
|
23,607 |
|
|
18,927 |
|
Borrowed
funds |
|
4,846 |
|
|
4,028 |
|
|
13,527 |
|
|
11,677 |
|
Total
interest expense |
|
14,031 |
|
|
10,307 |
|
|
37,134 |
|
|
30,604 |
|
Net
interest income |
|
46,768 |
|
|
43,029 |
|
|
137,393 |
|
|
127,927 |
|
Provision for
loan losses |
|
2,566 |
|
|
3,766 |
|
|
7,146 |
|
|
10,078 |
|
Net
interest income after provision for loan losses |
|
44,202 |
|
|
39,263 |
|
|
130,247 |
|
|
117,849 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
Service
charges and fees |
|
6,161 |
|
|
5,726 |
|
|
18,413 |
|
|
14,679 |
|
Net gain
from sales of securities |
|
158 |
|
|
48 |
|
|
710 |
|
|
1,867 |
|
Income
from mortgage banking activities |
|
1,204 |
|
|
2,198 |
|
|
4,355 |
|
|
5,389 |
|
Bank-owned life insurance income |
|
1,167 |
|
|
899 |
|
|
3,523 |
|
|
2,531 |
|
Net loss
on limited partnership investments |
|
(864 |
) |
|
(850 |
) |
|
(1,582 |
) |
|
(3,290 |
) |
Other
income (loss) |
|
247 |
|
|
(132 |
) |
|
635 |
|
|
(28 |
) |
Total
non-interest income |
|
8,073 |
|
|
7,889 |
|
|
26,054 |
|
|
21,148 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
20,005 |
|
|
18,301 |
|
|
59,309 |
|
|
56,105 |
|
Service
bureau fees |
|
1,983 |
|
|
1,960 |
|
|
6,029 |
|
|
6,219 |
|
Occupancy
and equipment |
|
3,740 |
|
|
3,580 |
|
|
11,866 |
|
|
11,330 |
|
Professional fees |
|
1,048 |
|
|
1,125 |
|
|
3,309 |
|
|
2,893 |
|
Marketing
and promotions |
|
1,087 |
|
|
656 |
|
|
3,036 |
|
|
2,271 |
|
FDIC
insurance assessments |
|
780 |
|
|
819 |
|
|
2,255 |
|
|
2,800 |
|
Core
deposit intangible amortization |
|
337 |
|
|
385 |
|
|
1,075 |
|
|
1,219 |
|
FHLBB
prepayment penalties |
|
— |
|
|
— |
|
|
— |
|
|
1,454 |
|
Other |
|
5,929 |
|
|
5,410 |
|
|
17,704 |
|
|
16,389 |
|
Total
non-interest expense |
|
34,909 |
|
|
32,236 |
|
|
104,583 |
|
|
100,680 |
|
Income before income
taxes |
|
17,366 |
|
|
14,916 |
|
|
51,718 |
|
|
38,317 |
|
Provision for income
taxes |
|
2,175 |
|
|
757 |
|
|
6,601 |
|
|
3,206 |
|
Net
income |
|
$ |
15,191 |
|
|
$ |
14,159 |
|
|
$ |
45,117 |
|
|
$ |
35,111 |
|
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.30 |
|
|
$ |
0.28 |
|
|
$ |
0.90 |
|
|
$ |
0.71 |
|
Diluted |
|
$ |
0.30 |
|
|
$ |
0.28 |
|
|
$ |
0.89 |
|
|
$ |
0.70 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
50,263,602 |
|
|
49,800,105 |
|
|
50,246,234 |
|
|
49,617,136 |
|
Diluted |
|
50,889,987 |
|
|
50,141,175 |
|
|
50,888,175 |
|
|
49,917,049 |
|
United Financial Bancorp, Inc. and
Subsidiaries |
Consolidated Statements of Net
Income |
(Unaudited) |
|
|
|
For the Three Months Ended |
|
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
Interest and
dividend income: |
|
(In thousands, except share
data) |
Loans |
|
$ |
51,809 |
|
|
$ |
49,674 |
|
|
$ |
46,493 |
|
|
$ |
45,460 |
|
|
$ |
45,331 |
|
Securities-taxable interest |
|
5,604 |
|
|
5,793 |
|
|
5,510 |
|
|
4,848 |
|
|
4,808 |
|
Securities-non-taxable interest |
|
2,499 |
|
|
2,355 |
|
|
2,254 |
|
|
2,191 |
|
|
2,140 |
|
Securities-dividends |
|
736 |
|
|
689 |
|
|
808 |
|
|
986 |
|
|
990 |
|
Interest-bearing deposits |
|
151 |
|
|
51 |
|
|
101 |
|
|
136 |
|
|
67 |
|
Total
interest and dividend income |
|
60,799 |
|
|
58,562 |
|
|
55,166 |
|
|
53,621 |
|
|
53,336 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
9,185 |
|
|
7,603 |
|
|
6,819 |
|
|
6,649 |
|
|
6,279 |
|
Borrowed
funds |
|
4,846 |
|
|
4,631 |
|
|
4,050 |
|
|
3,800 |
|
|
4,028 |
|
Total
interest expense |
|
14,031 |
|
|
12,234 |
|
|
10,869 |
|
|
10,449 |
|
|
10,307 |
|
Net
interest income |
|
46,768 |
|
|
46,328 |
|
|
44,297 |
|
|
43,172 |
|
|
43,029 |
|
Provision for
loan losses |
|
2,566 |
|
|
2,292 |
|
|
2,288 |
|
|
3,359 |
|
|
3,766 |
|
Net
interest income after provision for loan losses |
|
44,202 |
|
|
44,036 |
|
|
42,009 |
|
|
39,813 |
|
|
39,263 |
|
Non-interest
income: |
|
|
|
|
|
|
|
|
|
|
Service
charges and fees |
|
6,161 |
|
|
6,834 |
|
|
5,418 |
|
|
5,580 |
|
|
5,726 |
|
Net gain
from sales of securities |
|
158 |
|
|
95 |
|
|
457 |
|
|
94 |
|
|
48 |
|
Income
from mortgage banking activities |
|
1,204 |
|
|
1,830 |
|
|
1,321 |
|
|
2,838 |
|
|
2,198 |
|
Bank-owned life insurance income |
|
1,167 |
|
|
1,149 |
|
|
1,207 |
|
|
863 |
|
|
899 |
|
Net loss
on limited partnership investments |
|
(864 |
) |
|
(638 |
) |
|
(80 |
) |
|
(705 |
) |
|
(850 |
) |
Other
income (loss) |
|
247 |
|
|
206 |
|
|
182 |
|
|
266 |
|
|
(132 |
) |
Total
non-interest income |
|
8,073 |
|
|
9,476 |
|
|
8,505 |
|
|
8,936 |
|
|
7,889 |
|
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
20,005 |
|
|
19,574 |
|
|
19,730 |
|
|
19,279 |
|
|
18,301 |
|
Service
bureau fees |
|
1,983 |
|
|
1,943 |
|
|
2,103 |
|
|
1,767 |
|
|
1,960 |
|
Occupancy
and equipment |
|
3,740 |
|
|
3,657 |
|
|
4,469 |
|
|
3,656 |
|
|
3,580 |
|
Professional fees |
|
1,048 |
|
|
952 |
|
|
1,309 |
|
|
1,024 |
|
|
1,125 |
|
Marketing
and promotions |
|
1,087 |
|
|
1,237 |
|
|
712 |
|
|
778 |
|
|
656 |
|
FDIC
insurance assessments |
|
780 |
|
|
796 |
|
|
679 |
|
|
773 |
|
|
819 |
|
Core
deposit intangible amortization |
|
337 |
|
|
353 |
|
|
385 |
|
|
385 |
|
|
385 |
|
Other |
|
5,929 |
|
|
6,467 |
|
|
5,308 |
|
|
5,631 |
|
|
5,410 |
|
Total
non-interest expense |
|
34,909 |
|
|
34,979 |
|
|
34,695 |
|
|
33,293 |
|
|
32,236 |
|
Income before
income taxes |
|
17,366 |
|
|
18,533 |
|
|
15,819 |
|
|
15,456 |
|
|
14,916 |
|
Provision for income
taxes |
|
2,175 |
|
|
2,333 |
|
|
2,093 |
|
|
906 |
|
|
757 |
|
Net
income |
|
$ |
15,191 |
|
|
$ |
16,200 |
|
|
$ |
13,726 |
|
|
$ |
14,550 |
|
|
$ |
14,159 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
$ |
0.28 |
|
Diluted |
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
$ |
0.28 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
50,263,602 |
|
|
50,217,212 |
|
|
50,257,825 |
|
|
50,070,710 |
|
|
49,800,105 |
|
Diluted |
|
50,889,987 |
|
|
50,839,091 |
|
|
50,935,382 |
|
|
50,602,494 |
|
|
50,141,175 |
|
United Financial Bancorp, Inc. and
Subsidiaries |
Consolidated Statements of
Condition |
(Unaudited) |
|
|
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
ASSETS |
|
(In thousands) |
Cash and cash
equivalents: |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
59,456 |
|
|
$ |
57,137 |
|
|
$ |
45,279 |
|
|
$ |
47,248 |
|
|
$ |
51,951 |
|
Short-term investments |
|
39,061 |
|
|
17,714 |
|
|
39,381 |
|
|
43,696 |
|
|
162,295 |
|
Total
cash and cash equivalents |
|
98,517 |
|
|
74,851 |
|
|
84,660 |
|
|
90,944 |
|
|
214,246 |
|
Available for sale
securities – At fair value |
|
1,068,055 |
|
|
1,073,384 |
|
|
1,075,729 |
|
|
1,043,411 |
|
|
1,052,439 |
|
Held to maturity
securities – At amortized cost |
|
13,693 |
|
|
13,792 |
|
|
13,937 |
|
|
14,038 |
|
|
14,162 |
|
Loans held for
sale |
|
89,419 |
|
|
157,487 |
|
|
87,031 |
|
|
62,517 |
|
|
83,321 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate
loans: |
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
442,989 |
|
|
429,848 |
|
|
433,358 |
|
|
416,718 |
|
|
392,168 |
|
Investor
non-owner occupied |
|
1,777,716 |
|
|
1,761,940 |
|
|
1,697,414 |
|
|
1,705,319 |
|
|
1,702,701 |
|
Construction |
|
82,688 |
|
|
74,980 |
|
|
85,533 |
|
|
98,794 |
|
|
90,380 |
|
Total commercial real
estate loans |
|
2,303,393 |
|
|
2,266,768 |
|
|
2,216,305 |
|
|
2,220,831 |
|
|
2,185,249 |
|
Commercial business
loans |
|
821,372 |
|
|
792,918 |
|
|
769,153 |
|
|
724,557 |
|
|
660,676 |
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
Residential real estate |
|
1,211,783 |
|
|
1,172,540 |
|
|
1,167,428 |
|
|
1,156,227 |
|
|
1,129,079 |
|
Home
equity |
|
561,814 |
|
|
538,130 |
|
|
516,325 |
|
|
536,772 |
|
|
479,390 |
|
Residential construction |
|
39,460 |
|
|
46,117 |
|
|
49,456 |
|
|
53,934 |
|
|
52,476 |
|
Other
consumer |
|
267,921 |
|
|
237,708 |
|
|
225,317 |
|
|
209,393 |
|
|
213,830 |
|
Total consumer
loans |
|
2,080,978 |
|
|
1,994,495 |
|
|
1,958,526 |
|
|
1,956,326 |
|
|
1,874,775 |
|
Total loans |
|
5,205,743 |
|
|
5,054,181 |
|
|
4,943,984 |
|
|
4,901,714 |
|
|
4,720,700 |
|
Net deferred loan costs
and premiums |
|
15,297 |
|
|
15,413 |
|
|
13,273 |
|
|
11,636 |
|
|
10,214 |
|
Allowance for loan
losses |
|
(46,368 |
) |
|
(45,062 |
) |
|
(43,304 |
) |
|
(42,798 |
) |
|
(41,080 |
) |
Loans receivable -
net |
|
5,174,672 |
|
|
5,024,532 |
|
|
4,913,953 |
|
|
4,870,552 |
|
|
4,689,834 |
|
Federal Home Loan Bank
of Boston stock, at cost |
|
46,758 |
|
|
54,760 |
|
|
52,707 |
|
|
53,476 |
|
|
52,847 |
|
Accrued interest
receivable |
|
20,893 |
|
|
19,751 |
|
|
19,126 |
|
|
18,771 |
|
|
17,888 |
|
Deferred tax asset,
net |
|
30,999 |
|
|
27,034 |
|
|
37,040 |
|
|
39,962 |
|
|
32,529 |
|
Premises and equipment,
net |
|
61,063 |
|
|
54,480 |
|
|
51,299 |
|
|
51,757 |
|
|
52,520 |
|
Goodwill |
|
115,281 |
|
|
115,281 |
|
|
115,281 |
|
|
115,281 |
|
|
115,281 |
|
Core deposit intangible
asset |
|
4,827 |
|
|
5,164 |
|
|
5,517 |
|
|
5,902 |
|
|
6,287 |
|
Cash surrender value of
bank-owned life insurance |
|
171,300 |
|
|
170,144 |
|
|
169,007 |
|
|
167,823 |
|
|
126,948 |
|
Other assets |
|
81,019 |
|
|
85,503 |
|
|
71,333 |
|
|
65,086 |
|
|
86,553 |
|
Total
assets |
|
$ |
6,976,496 |
|
|
$ |
6,876,163 |
|
|
$ |
6,696,620 |
|
|
$ |
6,599,520 |
|
|
$ |
6,544,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
725,130 |
|
|
$ |
721,917 |
|
|
$ |
690,516 |
|
|
$ |
708,050 |
|
|
$ |
687,865 |
|
Interest-bearing |
|
4,427,892 |
|
|
4,271,562 |
|
|
4,099,843 |
|
|
4,003,122 |
|
|
4,007,606 |
|
Total
deposits |
|
5,153,022 |
|
|
4,993,479 |
|
|
4,790,359 |
|
|
4,711,172 |
|
|
4,695,471 |
|
Mortgagors’ and
investor escrow accounts |
|
9,641 |
|
|
15,045 |
|
|
10,925 |
|
|
13,354 |
|
|
9,045 |
|
Federal Home Loan Bank
advances and other borrowings |
|
1,068,814 |
|
|
1,138,817 |
|
|
1,180,053 |
|
|
1,169,619 |
|
|
1,102,882 |
|
Accrued expenses and
other liabilities |
|
54,366 |
|
|
49,358 |
|
|
49,300 |
|
|
49,509 |
|
|
81,217 |
|
Total
liabilities |
|
6,285,843 |
|
|
6,196,699 |
|
|
6,030,637 |
|
|
5,943,654 |
|
|
5,888,615 |
|
Total stockholders’
equity |
|
690,653 |
|
|
679,464 |
|
|
665,983 |
|
|
655,866 |
|
|
656,240 |
|
Total
liabilities and stockholders’ equity |
|
$ |
6,976,496 |
|
|
$ |
6,876,163 |
|
|
$ |
6,696,620 |
|
|
$ |
6,599,520 |
|
|
$ |
6,544,855 |
|
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, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
Share
Data: |
|
|
|
|
|
|
|
|
|
Basic net income per
share |
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
0.27 |
|
|
$ |
0.29 |
|
|
$ |
0.28 |
|
Diluted net income per
share |
0.30 |
|
|
0.32 |
|
|
0.27 |
|
|
0.29 |
|
|
0.28 |
|
Dividends declared per
share |
0.12 |
|
|
0.12 |
|
|
0.12 |
|
|
0.12 |
|
|
0.12 |
|
Tangible book value per
share |
$ |
11.23 |
|
|
$ |
11.01 |
|
|
$ |
10.75 |
|
|
$ |
10.53 |
|
|
$ |
10.60 |
|
Key
Statistics: |
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
54,841 |
|
|
$ |
55,804 |
|
|
$ |
52,802 |
|
|
$ |
52,108 |
|
|
$ |
50,918 |
|
Total non-interest
expense |
34,909 |
|
|
34,979 |
|
|
34,695 |
|
|
33,293 |
|
|
32,236 |
|
Average earning
assets |
6,423,741 |
|
|
6,304,849 |
|
|
6,113,363 |
|
|
6,054,347 |
|
|
5,984,951 |
|
Key
Ratios: |
|
|
|
|
|
|
|
|
|
Return on average
assets (annualized) |
0.88 |
% |
|
0.96 |
% |
|
0.83 |
% |
|
0.90 |
% |
|
0.88 |
% |
Return on average
equity (annualized) |
8.92 |
% |
|
9.66 |
% |
|
8.35 |
% |
|
8.95 |
% |
|
8.80 |
% |
Tax-equivalent net
interest margin (annualized) |
3.00 |
% |
|
3.04 |
% |
|
3.01 |
% |
|
2.93 |
% |
|
2.95 |
% |
Residential
Mortgage Production: |
|
|
|
|
|
|
|
|
|
Dollar volume
(total) |
$ |
133,462 |
|
|
$ |
186,220 |
|
|
$ |
134,022 |
|
|
$ |
160,512 |
|
|
$ |
173,473 |
|
Mortgages originated
for purchases |
97,132 |
|
|
129,165 |
|
|
77,613 |
|
|
77,549 |
|
|
113,019 |
|
Loans sold |
152,551 |
|
|
61,363 |
|
|
51,826 |
|
|
87,626 |
|
|
99,051 |
|
Income from mortgage
banking activities |
1,204 |
|
|
1,830 |
|
|
1,321 |
|
|
2,838 |
|
|
2,198 |
|
Non-performing
Assets: |
|
|
|
|
|
|
|
|
|
Residential real
estate |
$ |
11,330 |
|
|
$ |
11,190 |
|
|
$ |
12,185 |
|
|
$ |
11,357 |
|
|
$ |
11,526 |
|
Home equity |
4,206 |
|
|
5,211 |
|
|
4,307 |
|
|
4,043 |
|
|
3,650 |
|
Investor-owned
commercial real estate |
2,957 |
|
|
3,512 |
|
|
3,809 |
|
|
4,016 |
|
|
3,746 |
|
Owner-occupied
commercial real estate |
2,084 |
|
|
2,184 |
|
|
2,314 |
|
|
2,642 |
|
|
2,838 |
|
Construction |
1,748 |
|
|
287 |
|
|
1,355 |
|
|
1,701 |
|
|
1,879 |
|
Commercial
business |
2,427 |
|
|
2,624 |
|
|
2,369 |
|
|
2,000 |
|
|
2,016 |
|
Other consumer |
37 |
|
|
40 |
|
|
37 |
|
|
1,000 |
|
|
328 |
|
Non-accrual loans |
24,789 |
|
|
25,048 |
|
|
26,376 |
|
|
26,759 |
|
|
25,983 |
|
Troubled debt
restructured – non-accruing |
6,628 |
|
|
7,475 |
|
|
8,252 |
|
|
7,304 |
|
|
7,345 |
|
Total non-performing
loans |
31,417 |
|
|
32,523 |
|
|
34,628 |
|
|
34,063 |
|
|
33,328 |
|
Other real estate
owned |
2,444 |
|
|
1,770 |
|
|
1,786 |
|
|
1,890 |
|
|
2,792 |
|
Total non-performing
assets |
$ |
33,861 |
|
|
$ |
34,293 |
|
|
$ |
36,414 |
|
|
$ |
35,953 |
|
|
$ |
36,120 |
|
Non-performing loans to
total loans |
0.60 |
% |
|
0.64 |
% |
|
0.70 |
% |
|
0.69 |
% |
|
0.71 |
% |
Non-performing assets
to total assets |
0.49 |
% |
|
0.50 |
% |
|
0.54 |
% |
|
0.54 |
% |
|
0.55 |
% |
Allowance for loan
losses to non-performing loans |
147.59 |
% |
|
138.55 |
% |
|
125.05 |
% |
|
125.64 |
% |
|
123.26 |
% |
Allowance for loan
losses to total loans |
0.89 |
% |
|
0.89 |
% |
|
0.88 |
% |
|
0.87 |
% |
|
0.87 |
% |
Non-GAAP
Ratios: (1) |
|
|
|
|
|
|
|
|
|
Non-interest expense to
average assets (annualized) |
2.02 |
% |
|
2.06 |
% |
|
2.11 |
% |
|
2.05 |
% |
|
2.00 |
% |
Efficiency ratio
(2) |
60.22 |
% |
|
59.49 |
% |
|
63.95 |
% |
|
60.79 |
% |
|
60.31 |
% |
Cost of funds
(annualized) (3) |
0.91 |
% |
|
0.81 |
% |
|
0.74 |
% |
|
0.73 |
% |
|
0.72 |
% |
Total revenue growth
rate |
(1.73 |
)% |
|
5.69 |
% |
|
1.33 |
% |
|
2.34 |
% |
|
6.02 |
% |
Total revenue growth
rate (annualized) |
(6.90 |
)% |
|
22.74 |
% |
|
5.33 |
% |
|
9.35 |
% |
|
24.07 |
% |
Average earning asset
growth rate |
1.89 |
% |
|
3.13 |
% |
|
0.97 |
% |
|
1.16 |
% |
|
1.65 |
% |
Average earning asset
growth rate (annualized) |
7.54 |
% |
|
12.53 |
% |
|
3.90 |
% |
|
4.64 |
% |
|
6.60 |
% |
Return on average
tangible common equity (annualized) (2) |
10.99 |
% |
|
11.95 |
% |
|
10.42 |
% |
|
11.19 |
% |
|
11.05 |
% |
Pre-provision net
revenue to average assets (2) |
1.31 |
% |
|
1.38 |
% |
|
1.18 |
% |
|
1.31 |
% |
|
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. |
United Financial Bancorp, Inc. and
Subsidiaries |
Average Balance Sheets, Interest and
Yields/Costs |
(Dollars In Thousands) |
(Unaudited) |
|
|
For the Three Months Ended |
|
September 30, 2017 |
|
September 30, 2016 |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate |
$ |
1,323,262 |
|
|
$ |
11,017 |
|
|
3.33 |
% |
|
$ |
1,229,384 |
|
|
$ |
10,033 |
|
|
3.26 |
% |
Commercial real
estate |
2,211,601 |
|
|
23,063 |
|
|
4.08 |
|
|
2,077,585 |
|
|
19,525 |
|
|
3.68 |
|
Construction |
122,511 |
|
|
1,301 |
|
|
4.16 |
|
|
156,217 |
|
|
1,565 |
|
|
3.92 |
|
Commercial
business |
791,547 |
|
|
8,163 |
|
|
4.04 |
|
|
669,595 |
|
|
6,103 |
|
|
3.57 |
|
Home equity |
536,509 |
|
|
5,917 |
|
|
4.38 |
|
|
467,552 |
|
|
6,046 |
|
|
5.15 |
|
Other consumer |
252,532 |
|
|
3,063 |
|
|
4.81 |
|
|
209,255 |
|
|
2,554 |
|
|
4.85 |
|
Investment
securities |
1,090,559 |
|
|
9,621 |
|
|
3.52 |
|
|
1,073,007 |
|
|
8,576 |
|
|
3.19 |
|
Federal Home Loan Bank
stock |
51,722 |
|
|
572 |
|
|
4.43 |
|
|
56,126 |
|
|
508 |
|
|
3.62 |
|
Other earning
assets |
43,498 |
|
|
151 |
|
|
1.38 |
|
|
46,230 |
|
|
67 |
|
|
0.57 |
|
Total
interest-earning assets |
6,423,741 |
|
|
62,868 |
|
|
3.86 |
|
|
5,984,951 |
|
|
54,977 |
|
|
3.63 |
|
Allowance for loan
losses |
(46,479 |
) |
|
|
|
|
|
(38,916 |
) |
|
|
|
|
Non-interest-earning
assets |
529,937 |
|
|
|
|
|
|
491,160 |
|
|
|
|
|
Total
assets |
$ |
6,907,199 |
|
|
|
|
|
|
$ |
6,437,195 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
NOW and money
market |
$ |
2,105,796 |
|
|
$ |
3,992 |
|
|
0.75 |
% |
|
$ |
1,485,177 |
|
|
$ |
1,501 |
|
|
0.40 |
% |
Savings |
527,641 |
|
|
77 |
|
|
0.06 |
|
|
527,225 |
|
|
77 |
|
|
0.06 |
|
Certificates of
deposit |
1,731,658 |
|
|
5,116 |
|
|
1.17 |
|
|
1,821,061 |
|
|
4,701 |
|
|
1.03 |
|
Total
interest-bearing deposits |
4,365,095 |
|
|
9,185 |
|
|
0.83 |
|
|
3,833,463 |
|
|
6,279 |
|
|
0.65 |
|
Federal Home Loan Bank
advances |
951,760 |
|
|
3,404 |
|
|
1.40 |
|
|
1,085,932 |
|
|
2,657 |
|
|
0.96 |
|
Other borrowings |
135,173 |
|
|
1,442 |
|
|
4.18 |
|
|
119,902 |
|
|
1,371 |
|
|
4.47 |
|
Total
interest-bearing liabilities |
5,452,028 |
|
|
14,031 |
|
|
1.02 |
|
|
5,039,297 |
|
|
10,307 |
|
|
0.81 |
|
Non-interest-bearing
deposits |
702,916 |
|
|
|
|
|
|
662,437 |
|
|
|
|
|
Other liabilities |
70,853 |
|
|
|
|
|
|
92,195 |
|
|
|
|
|
Total
liabilities |
6,225,797 |
|
|
|
|
|
|
5,793,929 |
|
|
|
|
|
Stockholders’
equity |
681,402 |
|
|
|
|
|
|
643,266 |
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
6,907,199 |
|
|
|
|
|
|
$ |
6,437,195 |
|
|
|
|
|
Net interest-earning
assets |
$ |
971,713 |
|
|
|
|
|
|
$ |
945,654 |
|
|
|
|
|
Tax-equivalent net
interest income |
|
|
48,837 |
|
|
|
|
|
|
44,670 |
|
|
|
Tax-equivalent net
interest rate spread |
|
|
|
|
2.84 |
% |
|
|
|
|
|
2.82 |
% |
Tax-equivalent net
interest margin |
|
|
|
|
3.00 |
% |
|
|
|
|
|
2.95 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
117.82 |
% |
|
|
|
|
|
118.77 |
% |
Less tax-equivalent
adjustment |
|
|
2,069 |
|
|
|
|
|
|
1,641 |
|
|
|
Net interest
income |
|
|
$ |
46,768 |
|
|
|
|
|
|
$ |
43,029 |
|
|
|
United Financial Bancorp, Inc. and
Subsidiaries |
Average Balance Sheets, Interest and
Yields/Costs |
(Dollars In Thousands) |
(Unaudited) |
|
|
For the Three Months Ended |
|
September 30, 2017 |
|
June 30, 2017 |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate |
$ |
1,323,262 |
|
|
$ |
11,017 |
|
|
3.33 |
% |
|
$ |
1,297,558 |
|
|
$ |
10,839 |
|
|
3.34 |
% |
Commercial real
estate |
2,211,601 |
|
|
23,063 |
|
|
4.08 |
|
|
2,153,938 |
|
|
21,837 |
|
|
4.01 |
|
Construction |
122,511 |
|
|
1,301 |
|
|
4.16 |
|
|
128,730 |
|
|
1,396 |
|
|
4.29 |
|
Commercial
business |
791,547 |
|
|
8,163 |
|
|
4.04 |
|
|
780,553 |
|
|
7,628 |
|
|
3.87 |
|
Home equity |
536,509 |
|
|
5,917 |
|
|
4.38 |
|
|
541,017 |
|
|
5,737 |
|
|
4.25 |
|
Other consumer |
252,532 |
|
|
3,063 |
|
|
4.81 |
|
|
230,419 |
|
|
2,907 |
|
|
5.06 |
|
Investment
securities |
1,090,559 |
|
|
9,621 |
|
|
3.52 |
|
|
1,099,011 |
|
|
9,577 |
|
|
3.48 |
|
Federal Home Loan Bank
stock |
51,722 |
|
|
572 |
|
|
4.43 |
|
|
54,151 |
|
|
534 |
|
|
3.95 |
|
Other earning
assets |
43,498 |
|
|
151 |
|
|
1.38 |
|
|
19,472 |
|
|
50 |
|
|
1.03 |
|
Total
interest-earning assets |
6,423,741 |
|
|
62,868 |
|
|
3.86 |
|
|
6,304,849 |
|
|
60,505 |
|
|
3.82 |
|
Allowance for loan
losses |
(46,479 |
) |
|
|
|
|
|
(44,888 |
) |
|
|
|
|
Non-interest-earning
assets |
529,937 |
|
|
|
|
|
|
520,375 |
|
|
|
|
|
Total
assets |
$ |
6,907,199 |
|
|
|
|
|
|
$ |
6,780,336 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
NOW and money
market |
$ |
2,105,796 |
|
|
$ |
3,992 |
|
|
0.75 |
% |
|
$ |
1,929,917 |
|
|
$ |
2,808 |
|
|
0.58 |
% |
Savings |
527,641 |
|
|
77 |
|
|
0.06 |
|
|
541,867 |
|
|
80 |
|
|
0.06 |
|
Certificates of
deposit |
1,731,658 |
|
|
5,116 |
|
|
1.17 |
|
|
1,715,436 |
|
|
4,715 |
|
|
1.10 |
|
Total
interest-bearing deposits |
4,365,095 |
|
|
9,185 |
|
|
0.83 |
|
|
4,187,220 |
|
|
7,603 |
|
|
0.73 |
|
Federal Home Loan Bank
advances |
951,760 |
|
|
3,404 |
|
|
1.40 |
|
|
1,028,835 |
|
|
3,152 |
|
|
1.21 |
|
Other borrowings |
135,173 |
|
|
1,442 |
|
|
4.18 |
|
|
154,780 |
|
|
1,479 |
|
|
3.78 |
|
Total
interest-bearing liabilities |
5,452,028 |
|
|
14,031 |
|
|
1.02 |
|
|
5,370,835 |
|
|
12,234 |
|
|
0.91 |
|
Non-interest-bearing
deposits |
702,916 |
|
|
|
|
|
|
670,244 |
|
|
|
|
|
Other liabilities |
70,853 |
|
|
|
|
|
|
68,731 |
|
|
|
|
|
Total
liabilities |
6,225,797 |
|
|
|
|
|
|
6,109,810 |
|
|
|
|
|
Stockholders’
equity |
681,402 |
|
|
|
|
|
|
670,526 |
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
6,907,199 |
|
|
|
|
|
|
$ |
6,780,336 |
|
|
|
|
|
Net interest-earning
assets |
$ |
971,713 |
|
|
|
|
|
|
$ |
934,014 |
|
|
|
|
|
Tax-equivalent net
interest income |
|
|
48,837 |
|
|
|
|
|
|
48,271 |
|
|
|
Tax-equivalent net
interest rate spread |
|
|
|
|
2.84 |
% |
|
|
|
|
|
2.91 |
% |
Tax-equivalent net
interest margin |
|
|
|
|
3.00 |
% |
|
|
|
|
|
3.04 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
117.82 |
% |
|
|
|
|
|
117.39 |
% |
Less tax-equivalent
adjustment |
|
|
2,069 |
|
|
|
|
|
|
1,943 |
|
|
|
Net interest
income |
|
|
$ |
46,768 |
|
|
|
|
|
|
$ |
46,328 |
|
|
|
United Financial Bancorp, Inc. and
Subsidiaries |
Average Balance Sheets, Interest and
Yields/Costs |
(Dollars In Thousands) |
(Unaudited) |
|
|
For the Nine Months Ended |
|
September 30, 2017 |
|
September 30, 2016 |
|
AverageBalance |
|
InterestandDividends |
|
Yield/Cost |
|
AverageBalance |
|
InterestandDividends |
|
Yield/Cost |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate |
$ |
1,285,618 |
|
|
$ |
32,079 |
|
|
3.33 |
% |
|
$ |
1,211,995 |
|
|
$ |
29,814 |
|
|
3.28 |
% |
Commercial real
estate |
2,155,085 |
|
|
65,626 |
|
|
4.02 |
|
|
2,039,087 |
|
|
61,477 |
|
|
3.96 |
|
Construction |
132,158 |
|
|
4,261 |
|
|
4.25 |
|
|
164,039 |
|
|
5,234 |
|
|
4.19 |
|
Commercial
business |
767,738 |
|
|
22,510 |
|
|
3.87 |
|
|
638,086 |
|
|
17,766 |
|
|
3.66 |
|
Home equity |
533,669 |
|
|
16,876 |
|
|
4.23 |
|
|
448,371 |
|
|
13,346 |
|
|
3.98 |
|
Other consumer |
231,892 |
|
|
8,581 |
|
|
4.95 |
|
|
218,801 |
|
|
8,201 |
|
|
5.00 |
|
Investment
securities |
1,086,574 |
|
|
28,366 |
|
|
3.48 |
|
|
1,083,717 |
|
|
25,942 |
|
|
3.18 |
|
Federal Home Loan Bank
stock |
53,005 |
|
|
1,630 |
|
|
4.10 |
|
|
54,842 |
|
|
1,366 |
|
|
3.32 |
|
Other earning
assets |
36,049 |
|
|
303 |
|
|
1.12 |
|
|
48,755 |
|
|
207 |
|
|
0.57 |
|
Total
interest-earning assets |
6,281,788 |
|
|
180,232 |
|
|
3.80 |
|
|
5,907,693 |
|
|
163,353 |
|
|
3.66 |
|
Allowance for loan
losses |
(45,008 |
) |
|
|
|
|
|
(36,775 |
) |
|
|
|
|
Non-interest-earning
assets |
521,629 |
|
|
|
|
|
|
479,513 |
|
|
|
|
|
Total
assets |
$ |
6,758,409 |
|
|
|
|
|
|
$ |
6,350,431 |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
NOW and money
market |
$ |
1,960,685 |
|
|
$ |
8,996 |
|
|
0.61 |
% |
|
$ |
1,533,096 |
|
|
$ |
4,950 |
|
|
0.43 |
% |
Savings |
532,718 |
|
|
235 |
|
|
0.06 |
|
|
527,919 |
|
|
229 |
|
|
0.06 |
|
Certificates of
deposit |
1,720,120 |
|
|
14,376 |
|
|
1.12 |
|
|
1,784,269 |
|
|
13,748 |
|
|
1.03 |
|
Total
interest-bearing deposits |
4,213,523 |
|
|
23,607 |
|
|
0.75 |
|
|
3,845,284 |
|
|
18,927 |
|
|
0.66 |
|
Federal Home Loan Bank
advances |
986,935 |
|
|
9,225 |
|
|
1.23 |
|
|
1,009,671 |
|
|
7,507 |
|
|
0.98 |
|
Other borrowings |
138,685 |
|
|
4,302 |
|
|
4.09 |
|
|
130,586 |
|
|
4,170 |
|
|
4.20 |
|
Total
interest-bearing liabilities |
5,339,143 |
|
|
37,134 |
|
|
0.93 |
|
|
4,985,541 |
|
|
30,604 |
|
|
0.81 |
|
Non-interest-bearing
deposits |
680,786 |
|
|
|
|
|
|
646,416 |
|
|
|
|
|
Other liabilities |
68,499 |
|
|
|
|
|
|
83,543 |
|
|
|
|
|
Total
liabilities |
6,088,428 |
|
|
|
|
|
|
5,715,500 |
|
|
|
|
|
Stockholders’
equity |
669,981 |
|
|
|
|
|
|
634,931 |
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
6,758,409 |
|
|
|
|
|
|
$ |
6,350,431 |
|
|
|
|
|
Net interest-earning
assets |
$ |
942,645 |
|
|
|
|
|
|
$ |
922,152 |
|
|
|
|
|
Tax-equivalent net
interest income |
|
|
143,098 |
|
|
|
|
|
|
132,749 |
|
|
|
Tax-equivalent net
interest rate spread |
|
|
|
|
2.87 |
% |
|
|
|
|
|
2.85 |
% |
Tax-equivalent net
interest margin |
|
|
|
|
3.02 |
% |
|
|
|
|
|
2.97 |
% |
Average
interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
117.66 |
% |
|
|
|
|
|
118.50 |
% |
Less tax-equivalent
adjustment |
|
|
5,705 |
|
|
|
|
|
|
4,822 |
|
|
|
Net interest
income |
|
|
$ |
137,393 |
|
|
|
|
|
|
$ |
127,927 |
|
|
|
United Financial Bancorp, Inc. and
SubsidiariesReconciliation of Non-GAAP Financial
Measures(Dollars In
Thousands)(Unaudited)
In addition to evaluating the Company’s results
of operations in accordance with GAAP, management periodically
supplements this evaluation with an analysis of certain non-GAAP
financial measures. These non-GAAP measures are intended to provide
the reader with additional perspectives on operating results,
financial condition, and performance trends, while facilitating
comparisons with the performance of other financial institutions.
Non-GAAP financial measures are not a substitute for GAAP measures,
rather, they should be read and used in conjunction with the
Company’s GAAP financial information.
The efficiency ratio is used as a common measure
by banks as a comparable metric to understand the Company’s expense
structure relative to its total revenue; in other words, for every
dollar of total revenue we recognize, how much of that dollar is
expended. In order to improve the comparability of the ratio to our
peers, we remove non-core items. To improve transparency, and
acknowledging that banks are not consistent in their definition of
the efficiency ratio, we include our calculation of this non-GAAP
measure.
Pre-provision net revenue is a measure that the
Company uses to understand fundamental operating performance before
credit related expenses and tax expense. It is often expressed as a
ratio relative to average assets which demonstrates the “core”
performance and can be viewed as an alternative measure of how
efficiently the Company services its asset base.
Return on average tangible common equity is used
by management and readers of our financial statements to understand
how efficiently the Company is deploying its common
equity. Companies that are able to demonstrate more efficient
use of common equity are more likely to be viewed favorably by
current and prospective investors.
The Company believes that disclosing these
non-GAAP metrics is both useful internally and is expected by our
investors and analysts in order to understand the overall
performance of the Company. Other companies may calculate and
define their supplemental data differently. A reconciliation of
GAAP financial measures to non-GAAP measures and other performance
ratios, as adjusted, are included on pages F-10 through F-12 in the
following press release tables:
|
|
Three Months Ended |
|
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
|
(Dollars in thousands) |
Net Income (GAAP) |
|
$ |
15,191 |
|
|
$ |
16,200 |
|
|
$ |
13,726 |
|
|
$ |
14,550 |
|
|
$ |
14,159 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
(158 |
) |
|
(95 |
) |
|
(465 |
) |
|
(94 |
) |
|
(118 |
) |
Non-interest expense |
|
— |
|
|
— |
|
|
— |
|
|
107 |
|
|
55 |
|
Related
income tax (benefit) expense |
|
55 |
|
|
33 |
|
|
163 |
|
|
(5 |
) |
|
22 |
|
Net
adjustment |
|
(103 |
) |
|
(62 |
) |
|
(302 |
) |
|
8 |
|
|
(41 |
) |
Total net income
(non-GAAP) |
|
$ |
15,088 |
|
|
$ |
16,138 |
|
|
$ |
13,424 |
|
|
$ |
14,558 |
|
|
$ |
14,118 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP) |
|
$ |
8,073 |
|
|
$ |
9,476 |
|
|
$ |
8,505 |
|
|
$ |
8,936 |
|
|
$ |
7,889 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Net gain
on sales of securities |
|
(158 |
) |
|
(95 |
) |
|
(457 |
) |
|
(94 |
) |
|
(48 |
) |
BOLI
claim benefit |
|
— |
|
|
— |
|
|
(8 |
) |
|
— |
|
|
(70 |
) |
Net
adjustment |
|
(158 |
) |
|
(95 |
) |
|
(465 |
) |
|
(94 |
) |
|
(118 |
) |
Total non-interest
income (non-GAAP) |
|
7,915 |
|
|
9,381 |
|
|
8,040 |
|
|
8,842 |
|
|
7,771 |
|
Total net interest
income |
|
46,768 |
|
|
46,328 |
|
|
44,297 |
|
|
43,172 |
|
|
43,029 |
|
Total revenue
(non-GAAP) |
|
$ |
54,683 |
|
|
$ |
55,709 |
|
|
$ |
52,337 |
|
|
$ |
52,014 |
|
|
$ |
50,800 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP) |
|
$ |
34,909 |
|
|
$ |
34,979 |
|
|
$ |
34,695 |
|
|
$ |
33,293 |
|
|
$ |
32,236 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Effect of
position eliminations |
|
— |
|
|
— |
|
|
— |
|
|
(107 |
) |
|
(55 |
) |
Net
adjustment |
|
— |
|
|
— |
|
|
— |
|
|
(107 |
) |
|
(55 |
) |
Total non-interest
expense (non-GAAP) |
|
$ |
34,909 |
|
|
$ |
34,979 |
|
|
$ |
34,695 |
|
|
$ |
33,186 |
|
|
$ |
32,181 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans |
|
$ |
5,205,743 |
|
|
$ |
5,054,181 |
|
|
$ |
4,943,984 |
|
|
$ |
4,901,714 |
|
|
$ |
4,720,700 |
|
Non-covered loans (1) |
|
(739,376 |
) |
|
(699,938 |
) |
|
(691,054 |
) |
|
(744,763 |
) |
|
(721,763 |
) |
Total
covered loans |
|
$ |
4,466,367 |
|
|
$ |
4,354,243 |
|
|
$ |
4,252,930 |
|
|
$ |
4,156,951 |
|
|
$ |
3,998,937 |
|
Allowance
for loan losses |
|
$ |
46,368 |
|
|
$ |
45,062 |
|
|
$ |
43,304 |
|
|
$ |
42,798 |
|
|
$ |
41,080 |
|
Allowance
for loan losses to total loans |
|
0.89 |
% |
|
0.89 |
% |
|
0.88 |
% |
|
0.87 |
% |
|
0.87 |
% |
Allowance
for loan losses to total covered loans |
|
1.04 |
% |
|
1.03 |
% |
|
1.02 |
% |
|
1.03 |
% |
|
1.03 |
% |
|
(1) As
required by GAAP, the Company recorded acquired loans at fair
value. These loans carry no allowance for loan losses for the
periods reflected above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
|
(Dollars in thousands) |
Efficiency Ratio: |
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
(GAAP) |
|
$ |
34,909 |
|
|
$ |
34,979 |
|
|
$ |
34,695 |
|
|
$ |
33,293 |
|
|
$ |
32,236 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Other
real estate owned expense |
|
(211 |
) |
|
(305 |
) |
|
(91 |
) |
|
(100 |
) |
|
(40 |
) |
Effect of
position eliminations |
|
— |
|
|
— |
|
|
— |
|
|
(107 |
) |
|
(55 |
) |
Non-Interest Expense
for Efficiency Ratio (non-GAAP) |
|
$ |
34,698 |
|
|
$ |
34,674 |
|
|
$ |
34,604 |
|
|
$ |
33,086 |
|
|
$ |
32,141 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
(GAAP) |
|
$ |
46,768 |
|
|
$ |
46,328 |
|
|
$ |
44,297 |
|
|
$ |
43,172 |
|
|
$ |
43,029 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Tax
equivalent adjustment for tax-exempt loans and investment
securities |
|
2,069 |
|
|
1,943 |
|
|
1,693 |
|
|
1,712 |
|
|
1,641 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income
(GAAP) |
|
8,073 |
|
|
9,476 |
|
|
8,505 |
|
|
8,936 |
|
|
7,889 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Net gain
on sales of securities |
|
(158 |
) |
|
(95 |
) |
|
(457 |
) |
|
(94 |
) |
|
(48 |
) |
Net loss
on limited partnership investments |
|
864 |
|
|
638 |
|
|
80 |
|
|
705 |
|
|
850 |
|
BOLI
claim benefit |
|
— |
|
|
— |
|
|
(8 |
) |
|
— |
|
|
(70 |
) |
Total Revenue for
Efficiency Ratio (non-GAAP) |
|
$ |
57,616 |
|
|
$ |
58,290 |
|
|
$ |
54,110 |
|
|
$ |
54,431 |
|
|
$ |
53,291 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
(Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue
for Efficiency Ratio (non-GAAP)) |
|
60.22 |
% |
|
59.49 |
% |
|
63.95 |
% |
|
60.79 |
% |
|
60.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net Revenue ("PPNR") to Average Assets
(Annualized): |
|
|
|
|
|
|
|
|
Net Interest income
(GAAP) |
|
$ |
46,768 |
|
|
$ |
46,328 |
|
|
$ |
44,297 |
|
|
$ |
43,172 |
|
|
$ |
43,029 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Tax
equivalent adjustment for tax-exempt loans and investment
securities |
|
2,069 |
|
|
1,943 |
|
|
1,693 |
|
|
1,712 |
|
|
1,641 |
|
Total tax equivalent
net interest income (A) |
|
$ |
48,837 |
|
|
$ |
48,271 |
|
|
$ |
45,990 |
|
|
$ |
44,884 |
|
|
$ |
44,670 |
|
|
|
|
|
|
|
|
|
|
|
|
Non Interest Income
(GAAP) |
|
8,073 |
|
|
9,476 |
|
|
8,505 |
|
|
8,936 |
|
|
7,889 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Net gain
on sales of securities |
|
(158 |
) |
|
(95 |
) |
|
(457 |
) |
|
(94 |
) |
|
(48 |
) |
Net loss
on limited partnership investments |
|
864 |
|
|
638 |
|
|
80 |
|
|
705 |
|
|
850 |
|
BOLI
claim benefit |
|
— |
|
|
— |
|
|
(8 |
) |
|
— |
|
|
(70 |
) |
Non-Interest Income for
PPNR (non-GAAP) (B) |
|
$ |
8,779 |
|
|
$ |
10,019 |
|
|
$ |
8,120 |
|
|
$ |
9,547 |
|
|
$ |
8,621 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
(GAAP) |
|
$ |
34,909 |
|
|
$ |
34,979 |
|
|
$ |
34,695 |
|
|
$ |
33,293 |
|
|
$ |
32,236 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Effect of
position eliminations |
|
— |
|
|
— |
|
|
— |
|
|
(107 |
) |
|
(55 |
) |
Non-Interest Expense
for PPNR (non-GAAP) (C) |
|
$ |
34,909 |
|
|
$ |
34,979 |
|
|
$ |
34,695 |
|
|
$ |
33,186 |
|
|
$ |
32,181 |
|
|
|
|
|
|
|
|
|
|
|
|
Total PPNR (non-GAAP)
(A + B - C) : |
|
$ |
22,707 |
|
|
$ |
23,311 |
|
|
$ |
19,415 |
|
|
$ |
21,245 |
|
|
$ |
21,110 |
|
Average Assets |
|
6,907,199 |
|
|
6,780,336 |
|
|
6,584,138 |
|
|
6,490,971 |
|
|
6,437,195 |
|
PPNR to Average Assets
(Annualized) |
|
1.31 |
% |
|
1.38 |
% |
|
1.18 |
% |
|
1.31 |
% |
|
1.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2017 |
|
June 30, 2017 |
|
March 31, 2017 |
|
December 31, 2016 |
|
September 30, 2016 |
|
|
(Dollars in thousands) |
Return on
Average Tangible Common Equity (Annualized): |
|
|
|
|
|
|
|
Net Income (GAAP) |
|
$ |
15,191 |
|
|
$ |
16,200 |
|
|
$ |
13,726 |
|
|
$ |
14,550 |
|
|
$ |
14,159 |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
Intangible Assets amortization, tax effected at 35% |
|
219 |
|
|
229 |
|
|
250 |
|
|
250 |
|
|
250 |
|
Net Income excluding
intangible assets amortization, tax effected at 35% |
|
$ |
15,410 |
|
|
$ |
16,429 |
|
|
$ |
13,976 |
|
|
$ |
14,800 |
|
|
$ |
14,409 |
|
Average stockholders'
equity (non-GAAP) |
|
$ |
681,402 |
|
|
$ |
670,526 |
|
|
$ |
657,755 |
|
|
$ |
650,590 |
|
|
$ |
643,266 |
|
Average goodwill &
other intangible assets (non-GAAP) |
|
120,275 |
|
|
120,631 |
|
|
121,004 |
|
|
121,383 |
|
|
121,767 |
|
Average tangible common
stockholders' equity (non-GAAP) |
|
$ |
561,127 |
|
|
$ |
549,895 |
|
|
$ |
536,751 |
|
|
$ |
529,207 |
|
|
$ |
521,499 |
|
Return on Average
Tangible Common Equity (non-GAAP) |
|
10.99 |
% |
|
11.95 |
% |
|
10.42 |
% |
|
11.19 |
% |
|
11.05 |
% |
|
|
Investor
Relations Contact:Marliese L. ShawExecutive Vice
President, Investor Relations Officer United
Bank860-291-3622MShaw@bankatunited.com |
|
Media Relations
Contact:Adam J. JeamelRegional President, Corporate
CommunicationsUnited Bank860-291-3765AJeamel@bankatunited.com |
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