GLASTONBURY, Conn.,
Jan. 27, 2015 /PRNewswire/
-- United Financial Bancorp, Inc. ("United Financial" or the
"Company") (NASDAQ Global Select Stock Market: UBNK), the holding
company for United Bank (the "Bank"), today announced results for
the quarter and year ended December 31,
2014. These results represent the second full fiscal quarter
as the combined United Financial [merger of Rockville Financial,
Inc. ("Rockville") and legacy United Financial Bancorp, Inc.
("legacy United")]. Rockville was the legal acquirer in the merger
of equals with legacy United, in a transaction that closed on
April 30, 2014, and Rockville changed
its name to United Financial Bancorp, Inc. at that time.
The Company had net income of $1.4
million, or $0.03 per diluted
share, for the quarter ended December 31,
2014, compared to Rockville's net income of $1.8 million, or $0.07 per diluted share, for the quarter ended
December 31, 2013. Operating net
income for the fourth quarter of 2014 was $8.3 million (Non-GAAP), or $0.16 per diluted share, adjusted for
$10.6 million (pre-tax) of expenses
related to the merger, $3.4 million
(pre-tax) net positive impact of the amortization and accretion of
the purchase accounting adjustments (or fair value adjustments) as
a result of the merger, $2.6 million
(pre-tax) net adjustment for the Company's announced branch
optimization program and $59,000
(pre-tax) net loss on sales of securities.
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For the Three
Months Ended
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For the Years
Ended
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(In thousands, except
share data)
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December
31,
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September
30,
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|
December
31,
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|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2014
|
|
2013
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|
2014
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|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
1,421
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|
$
9,985
|
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$
1,757
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|
$
6,782
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$
14,227
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|
|
|
|
|
|
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Operating net
income
|
8,316
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|
10,450
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3,296
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26,729
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|
16,300
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GAAP EPS -
Diluted
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$0.03
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$0.19
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$0.07
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$0.16
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$0.54
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Operating EPS -
Diluted
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$0.16
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$0.20
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$0.13
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$0.62
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$0.62
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Operating net income for the quarter ended September 30, 2014 was $10.4 million (Non-GAAP), or $0.20 per diluted share, adjusted for
$4.5 million (pre-tax) of expenses
related to the merger, $3.8 million
(pre-tax) net positive impact of the amortization and accretion of
the purchase accounting adjustments (or fair value adjustments) as
a result of the merger, and $430,000
(pre-tax) net gains on sales of securities. Operating net income
for the prior year period was $3.3
million (Non-GAAP), or $0.13
per diluted share, adjusted for $2.1
million (pre-tax) of expenses related to the merger.
Net income for the year ended December
31, 2014 was $6.8 million, or
$0.16 per diluted share, and declined
from $14.2 million or $0.54 per diluted share for the year ended
December 31, 2013. Operating
net income of $26.7 million
(Non-GAAP), or $0.62 per diluted
share for the year ended December 31,
2014 increased from $16.3
million or $0.62 per diluted
share for the year ended December 31,
2013. Adjustments to operating net income from GAAP net
income are largely related to the merger with legacy United and are
itemized in the reconciliation of non-GAAP measures.
"As we close the books on 2014, I am pleased to announce that we
reported impressive organic loan growth, successfully completed the
conversion to one core operating system, and have materially
achieved the Company's objectives related to eliminating redundant
expenses by the end of the fourth quarter," stated William H. W. Crawford, IV, Chief Executive
Officer of United Financial Bancorp, Inc. and United Bank. "Looking
forward to 2015, the operational environment will be challenging;
however, I am confident that our strategy to reduce expenses and
improve efficiency will enhance long term shareholder value, while
maintaining superior service for our customers."
Earnings in both 2014 and 2013 were affected by non-operating
income and expense. A reconciliation of these non-GAAP measures may
be found on pages F-8 and F-9.
Financial Highlights
- Fourth quarter net income of $1.4 million, or $0.03 per diluted share, operating net income of
$8.3 million, or $0.16 per diluted share
- Year-to-date 2014 net income of
$6.8 million, or $0.16 per diluted share, operating net income of
$26.7 million, or $0.62 per diluted share
- 3.44% GAAP tax equivalent net interest
margin, compared to 3.56% in the linked quarter. On an operating
basis, the fourth quarter tax equivalent net interest margin was
3.15%, compared to 3.23% in the linked quarter.
- Operating Return on Tangible Common Equity
was 6.96%
Loan Production Highlights
- 11% annualized linked quarter organic loan
growth
- $106 million
of loan growth from the linked quarter
- 3% linked quarter organic commercial loan
growth (11% annualized)
- Record residential mortgage originations
at $122 million in the fourth quarter
of 2014
- 61% of residential mortgage volume is for
home purchases
GAAP Results
The Company reported net income of $1.4
million, or $0.03 per diluted
share, in the fourth quarter of 2014. The quarter's results reflect
charges related to the Company's previously announced restructuring
initiatives aimed at reducing redundant positions and eliminating
non-strategic branches to better posture the Company to achieve
greater operational efficiencies going forward. The completion of
the core data processor conversion in the fourth quarter of 2014
allowed the Company to eliminate redundant back office positions
and consultancy required to maintain the two legacy banks'
processing systems. As a result, merger and acquisition expenses
totaling $10.1 million in the fourth
quarter of 2014 included payments to former employees due to
position eliminations, payments to consultants and advisors in
order to execute the transaction and to assist in the data
processing conversion, as well as other integration related
expenses.
Interest income totaled $48.2
million in the fourth quarter of 2014, an increase of
$1.0 million, or 2%, from the linked
quarter due to organic earning asset growth across loan portfolios
as well as the investment portfolio. Earning assets increased by
$165 million, or 3%, organically
during the quarter, while average interest-earning assets increased
by $151 million, or 3% from the
linked quarter. Interest income and expense results include the
recognition of purchase accounting adjustments made during the
fourth quarter of 2014, for which more details are provided
subsequently in this release. Interest expense increased by
$1.3 million, or 26%, to $6.3 million for the fourth quarter of
2014. The increase was primarily driven by the $75 million subordinated debt issuance that
occurred on September 24, 2014, which
had limited effect on the Company's third quarter 2014 interest
expense but included $1.1 million of
expense in the fourth quarter. Average interest bearing liabilities
increased by $175 million, or 5%,
from the linked quarter.
The GAAP tax equivalent net interest margin for the fourth
quarter of 2014 compressed by 12 basis points to 3.44% compared to
3.56% for the linked quarter, primarily as a result of the impact
of the interest expense associated with the subordinated debt
issuance and to a lesser extent by the diminished impact of
purchase accounting adjustments on the loan yields. On a GAAP
basis, the yield on interest-earning assets declined by 3 basis
points in the fourth quarter of 2014 to 3.94%, while the cost of
interest-bearing liabilities increased by 11 basis points during
the quarter to 0.62%, which was attributable to the expense on the
subordinated debt. The operating net interest margin, which
excludes the impact of purchase accounting adjustments, decreased
by 8 basis points to 3.15% in the fourth quarter of 2014 from 3.23%
in the linked quarter due in large part from the expense related to
the subordinated debt and somewhat by lower yields on loans
originated during the fourth quarter.
The net benefit to interest income in the fourth quarter of 2014
from accretion of purchase accounting adjustments totaled
$1.5 million, an 11% decrease from
$1.7 million recognized in the third
quarter of 2014. The decline between the two quarters reflects
the decreased impact of loan purchase accounting marks that is
expected as the purchased portfolio continues to amortize. Interest
expense benefited from net accretion of discounts totaling
$1.9 million in the fourth quarter of
2014, a 10% decrease from $2.1
million recognized in the linked quarter. The decrease
in the interest expense benefit was due to a notably lower level of
maturities related to term wholesale funding in the fourth quarter
of 2014 as compared to the linked quarter. The Company continues to
expect future benefits to net interest income.
Total non-interest income declined $1.1, million, or 26%, to $3.0 million for the quarter ended December 31, 2014 from $4.1 million recognized in the linked
quarter. The fourth quarter results include the recognition of
a $2.1 million loss related to
limited partnership investments, similarly reported in the linked
quarter, this was largely attributable to a tax credit investment
the Company entered into in the third quarter of 2014. During
the third quarter of 2014, the Company completed a tax credit
investment in which expense was recognized relating to the
amortization of the underlying asset, while concurrently realizing
an offsetting credit benefit of $2.6
million reflected in the tax provision for the third
quarter. That tax benefit is duplicated in the fourth quarter of
2014.
Significantly impacting non-interest income during the fourth
quarter of 2014 was the $1.4 million
reduction in other income (loss) compared to the linked quarter
which largely attributable to the branch optimization program,
whereby the Company recognized a $670,000 loss in the fourth quarter of 2014
representing the write-down of fixed assets. Additionally, the
Company's mortgage servicing rights valuation reflected a reduction
in value of $487,000 during the
fourth quarter of 2014, a $421,000
unfavorable change from the linked quarter. The decline in market
interest rates throughout 2014 had the effect of reducing fee
income by $1.1 million year-to-date
through reduction in mortgage servicing rights valuation
adjustments, largely due to the Company's assumptions pertaining to
the average life of the servicing asset at lower interest rates.
While the Company produced record residential mortgage origination
volume in the fourth quarter and for the full year of 2014 of
$122 million and $378 million, respectively, gains on sales of
loans were flat to the linked quarter and declined by $1.9 million to $3.1
million for the year ended December
31, 2014. Recognition of gains on sales of loans reflects
the recognition of income at the time that secondary market
contracts are executed rather than at the time those loans are
delivered to the investor. Also noteworthy in the fourth quarter is
the Company's recognition of $1.1
million of gross fee income associated with loan level
hedging activity that occurred during the quarter, reflecting an
increase of $989,000 over the linked
quarter.
Non-interest expense for the quarter ended December 31, 2014 totaled $45.1 million and increased by $10.2 million, or 29%, from the quarter ended
September 30, 2014. The linked
quarter increase in non-interest expense is primarily driven by the
$6.1 million increase in expenses
directly related to the merger; by the $2.4
million increase in occupancy expense, of which $1.9 million is attributed to the announced
closure of underutilized branches; and by the $1.1 million increase in marketing and promotion
expense attributed to the introduction of the Company's new
branding and marketing initiatives. These non-interest expense
increases were partially offset by the $1.0
million decrease in salaries and employee benefits expense
and $712,000 decrease in service
bureau fees.
Operating Results
Operating net income declined by $2.1
million to $8.3 million, or
$0.16 per diluted share, in the
fourth quarter of 2014 from $10.4
million, or $0.20 per diluted
share, in the linked quarter. The decline in operating net income
is primarily attributable to a $1.7
million increase in the provision for loan losses and a
$2.1 million increase in operating
expense, partially offset by a $1.5
million increase in the tax benefit for operating results.
The Company's total operating revenue was relatively flat and
increased by $190,000 in comparison
to the linked quarter comprised of a $106,000 increase in operating net interest
income and an $84,000 increase in
operating non-interest income. The slight increase in operating net
interest income reflects the increase in interest income
attributable to the growth in the loan and investment portfolios,
partially offset by the increase in operating interest expense
associated with a full quarter impact from the Company's
$75 million subordinated debt
issuance in September 2014. The
Company reported operating return on average assets ("ROA") of
0.62% and operating return on tangible common equity ("ROTCE") of
6.96% for the fourth quarter of 2014, decreased from 0.80% and
7.93% in the linked quarter, respectively.
Noteworthy is the increase in fee income derived from United
Northeast Financial Advisory ("United Northeast"), the Company's
financial advisory business, which increased by $810,000 to $1.8
million for the year 2014. Specifically, Sorrento Pacific
Financial, a research and consulting firm from Pennsylvania, ranks United Northeast Financial
Advisory number three in their top ten list of high performing bank
wealth management programs. The report cites United Northeast's
year-over-year increase of 135% in fee income generated in the
first half of 2014.
The provision for loan losses increased by $1.7 million to $4.3
million for the quarter ended December 31, 2014 compared to $2.6 million for the quarter ended September 30, 2014. A post-merger objective was
to conduct and complete a comprehensive review of the purchased
loan portfolio by year-end and ensure a consistent application of
risk ratings across the portfolio. We have completed that exercise
and believe asset quality for the Company remains strong and
stable. As a result, net charge-offs for the fourth quarter of 2014
were $1.8 million, or 0.19%
annualized as a percentage of average loans outstanding, and
increased by $157,000 from
$1.7 million, or 0.18% annualized as
a percentage of average loans outstanding, in the linked quarter.
Net charge-offs for the year-to-date 2014 were 0.12% as a
percentage of average loans outstanding. Factors that continue to
be considered in the provision for loan losses include the
composition of the portfolio, the level of non-performing loans and
charge-offs, local economic and credit conditions, the direction of
real estate values and delinquency trends.
On a linked quarter basis, operating expense increased by
$2.1 million, or 7%, to $32.6 million in the fourth quarter of 2014. Of
the $2.1 million increase,
$1.1 million is attributable to
higher marketing and promotion expense, $2.0
million to increased other expenses and $487,000 to increased occupancy and equipment
expense. These expense increases were partially offset by the
$1.0 million, or 5.8%, decline in
salaries and benefits expense and the $712,000, or 23.6%, decline in service bureau
fees. Marketing and promotion expense increased $1.1 million to $1.4
million in the fourth quarter and is due to the deployment
of a new branding campaign which was launched subsequent to the
completion of the fourth quarter data conversion. Other expenses
increased by $2.0 million to
$6.0 million in the fourth quarter,
largely due to a $771,000 increase in
an off-balance sheet provision, to $191,000 in the fourth quarter of 2014 from a
benefit of $580,000 in the linked
quarter. The decline in salaries and benefits expense and the
decline in service bureau fees are reflective of the Company
eliminating redundant expenses associated with operating two core
data processing systems from the legacy banks. The Company expects
a normalized level of service bureau fees will begin in the first
quarter of 2015.
Business Line Discussions
Commercial Banking
Total commercial loans grew organically during the fourth
quarter of 2014 by $65 million, or
11% annualized. For the quarter ended December 31, 2014, commercial loan growth was
comprised of a commercial real estate portfolio increase of
$19 million, or 1%, and an increase
in the commercial construction portfolio of $51 million, or 42%, partially offset by a
decrease in the commercial business portfolio of $5 million, or 1%.
The Company recently announced the acquisition and expansion of
our commercial loan teams in our Greater
Springfield and Worcester
markets. The commercial banking team acquired in Greater Springfield is led by Daniel Flynn, Executive Vice President and Chief
Operating Officer for Wholesale Banking, a seasoned commercial
banker with over three decades of experience in the Western Massachusetts market. The Worcester commercial banking team is led by
Tom McGregor, SVP & Regional
Commercial Banking Executive bringing over twenty years of
commercial banking experience, focusing on commercial and asset
based lending. These two leaders, with their respective teams, will
augment the strong commercial banking focus at United and will not
only allow the Company better access to commercial opportunities in
their respective geographies, but will also service and seek to
expand our existing relationships.
Mortgage Banking
The Company reported record quarterly origination volume for
residential mortgage loans in the fourth quarter of 2014. During
the quarter, mortgage originations increased by $62 million to $122
million from $60 million in
the same period of the prior year. On a linked quarter basis,
residential mortgage originations increased by $6 million from $116
million in the third quarter of 2014. Purchase mortgage
activity increased during this time period to $74 million, or 61%, of production in the fourth
quarter of 2014 compared to $37
million, or 62%, in the prior year period. On-balance sheet,
residential mortgage loans grew by $52
million (15% annualized) during the fourth quarter of 2014
compared to the linked quarter. The Company continues to take
market-share throughout its footprint and in 2014 was reported as
the number one purchase lender in Hartford County and number one lender overall
in Tolland County. Additionally,
according to the Mortgage Bankers Association, home lending fell by
36% in 2014 while United Financial grew by 35% during that same
period.
Funding & Deposits
Deposits totaled $4.04 billion at
December 31, 2014 and were flat to
the linked quarter with a slight increase of $6 million from $4.03
billion at September 30, 2014,
reflecting a $58 million, or 9%,
decrease in non-interest-bearing deposits and a $64 million, or 2%, increase in interest-bearing
deposits. The cost of total interest bearing deposits
increased by 2 basis points to 0.50% in the quarter ended
December 31, 2014 from 0.48% in the
linked quarter, driven primarily by the impact of certificate of
deposit specials utilized in the fourth quarter of 2014.
At the end of the third quarter of 2014, the Company issued
$75 million of ten-year term
subordinated debt with a coupon rate of 5.75%. The impact of
the issuance on the cost of interest-bearing funding in the fourth
quarter 2014 results drove the majority of the 11 basis point
increase in the cost of total interest bearing liabilities as
compared to the linked quarter.
Investment Portfolio
The available for sale securities portfolio increased by
$40 million during the quarter to
$1.05 billion at December 31, 2014 from $1.01 billion at September
30, 2014. This increase is largely reflective of increased
investments in cash flowing mortgage backed securities. These bond
purchases represent an opportunity to shorten the investment
portfolio duration and add diversification to the portfolio
holdings. The available for sale securities portfolio represented
19% of total assets at December 31,
2014, unchanged from the prior quarter.
Asset Quality
The Company maintains a disciplined approach to asset quality
and will not match extremely favorable pricing or underwriting and
structure pressures of competitor banks if those considerations do
not meet the Company's asset quality and return standards. The
asset quality metrics as of December 31,
2014 reflect the combined loan portfolios following the
merger, as well as the purchase accounting marks at legal close.
Non-performing assets increased $2.7
million to $34.6 million at
December 31, 2014 from $31.9 million at September
30, 2014. The ratio of non-performing assets to total assets
increased 3 basis points to 0.63% at December 31, 2014 from 0.60% at September 30, 2014. Non-performing loans
increased $3.1 million to
$32.4 million at December 31, 2014 from $29.3 million at September, 2014. Included in
non-performing loans are non-accruing troubled debt restructurings
(TDR). Non-accruing TDRs decreased $1.4
million to $3.8 million at
December 31, 2014 from $5.2 million at September
30, 2014. The ratio of non-performing loans to total loans
increased 6 basis points to 0.83% at December 31, 2014 from 0.77% at September 30, 2014. At December 31, 2014, the allowance for loan losses
as a percentage of non-performing loans and of total loans
outstanding was 76.67% and 0.64%, respectively, compared to 76.15%
and 0.59% at September 30, 2014,
respectively. The allowance for loan losses as a percentage of
total covered loans outstanding was 1.11% at December 31, 2014, compared to 1.06% at
September 30, 2014.
Dividend
The Board of Directors declared a cash dividend on the Company's
common stock of $0.10 per share to
shareholders of record at the close of business on February 6, 2015 and payable on February 17, 2015. This dividend equates to a
2.89% annualized yield based on the $13.84 average closing price of the Company's
common stock in the fourth quarter of 2014. The Company has paid
dividends for 35 consecutive quarters.
Tangible Book Value
Tangible book value per share decreased to $9.65 at December 31,
2014 from $10.02 at
September 30, 2014; primarily due to
the impact of the Company's stock repurchase activity in the
fourth, quarter and the cash dividend payment to shareholders
totaling $0.10 per share, offset in
part by the after-tax GAAP net income of $1.4 million. Tangible book value was also
negatively impacted during the fourth quarter 2014 by the
$10.1 million (pre-tax) of merger
related expenses. As stated earlier, the Company expects to
recognize limited merger and acquisition expense in 2015, thus
significantly reducing further negative impact to tangible book
value.
Stock Repurchase Program
The Company obtained approval and initiated a third buyback plan
on October 15, 2014. Under this plan,
the Company is authorized to repurchase up to 2,566,283 shares, or
5% of the outstanding shares at the time the plan was approved. As
of December 31, 2014, the Company had
repurchased 1,934,189 shares under this plan at an average cost of
$14.02 per share, and has
authorization to purchase an additional 632,094 shares. The Company
repurchased 3,202,429 shares during the quarter ended December 31, 2014, at an average price of
$13.71 as compared to the average
closing price during the period of $13.84. In total, the Company has repurchased
7,615,465 shares as of December 31,
2014, or 26% of total shares outstanding prior to the first
repurchase program.
Management Comments
"United Financial Bancorp, Inc. significantly returned capital
to its shareholders in the fourth quarter of 2014 by buying back 6%
of its shares outstanding as well as issuing its quarterly dividend
payment. Our total shareholder return since the closing date of the
merger is 12% compared to the SNL thrift index of 7% and our total
shareholder return since the date of the Company's mutual
conversion is 51% compared to the SNL thrift index of 41%," stated
William H. W. Crawford, IV, Chief
Executive Officer of United Financial Bancorp, Inc. and United
Bank. "We look forward to becoming a highly efficient and top
performing Company, to continuing to provide exceptional service to
our customers and communities, to rewarding the performance of our
hard working employees and to providing strong returns to our
shareholders. I would like to thank our team of dedicated employees
who continue to win new business and deliver a superior customer
experience every day."
Investor Conference Call
United Financial Bancorp, Inc. will host a conference call on
Wednesday, January 28, 2015 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 1-888-339-0797. A
telephone replay of the call will be available through February 8, 2015 by calling 1-877-344-7529 and
entering conference number 10058633. 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.
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 Central and Southern Connecticut, and Western and
Central Massachusetts. On
April 30, 2014, United Bank and
Rockville Bank completed a
transformational merger of equals bringing together two financially
strong, well-respected institutions and creating a leading New
England bank with more than 50 branches in two states and
$5 billion in assets. Through
the merger, Rockville Financial, Inc. completed the acquisition of
United Financial Bancorp, Inc. The combined Company, known as
United Financial Bancorp, Inc. trades on the NASDAQ Global Select
Stock Exchange under the ticker symbol "UBNK".
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.
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
|
(In Thousands,
Except Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
Loans
|
$ 40,682
|
|
$ 16,898
|
|
$ 133,011
|
|
$ 67,752
|
Securities-taxable interest
|
5,303
|
|
1,995
|
|
16,367
|
|
6,687
|
Securities-non-taxable interest
|
1,794
|
|
763
|
|
5,113
|
|
2,748
|
Securities-dividends
|
409
|
|
72
|
|
1,302
|
|
250
|
Interest-bearing deposits
|
21
|
|
20
|
|
86
|
|
80
|
Total interest and dividend
income
|
48,209
|
|
19,748
|
|
155,879
|
|
77,517
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
4,265
|
|
2,130
|
|
13,559
|
|
7,992
|
Borrowed
funds
|
2,052
|
|
642
|
|
4,448
|
|
2,468
|
Total interest
expense
|
6,317
|
|
2,772
|
|
18,007
|
|
10,460
|
Net interest
income
|
41,892
|
|
16,976
|
|
137,872
|
|
67,057
|
Provision for loan
losses
|
4,333
|
|
720
|
|
9,496
|
|
2,046
|
Net interest
income after provision
|
|
|
|
|
|
|
|
for loan losses
|
37,559
|
|
16,256
|
|
128,376
|
|
65,011
|
Non-interest
income:
|
|
|
|
|
|
|
|
Service
charges and fees
|
4,511
|
|
1,810
|
|
14,473
|
|
7,935
|
Net gain
(loss) from sales of securities
|
(59)
|
|
-
|
|
1,228
|
|
585
|
Net gain from
sales of loans
|
741
|
|
257
|
|
3,148
|
|
5,054
|
Bank-owned
life insurance
|
897
|
|
514
|
|
3,042
|
|
2,092
|
Net loss on
limited partnership investments
|
(2,048)
|
|
-
|
|
(4,224)
|
|
-
|
Other income
(loss)
|
(1,041)
|
|
378
|
|
(1,062)
|
|
1,385
|
Total non-interest
income
|
3,001
|
|
2,959
|
|
16,605
|
|
17,051
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
16,758
|
|
9,680
|
|
59,332
|
|
36,428
|
Service bureau
fees
|
2,304
|
|
663
|
|
8,179
|
|
3,287
|
Occupancy and
equipment
|
5,653
|
|
1,519
|
|
13,239
|
|
6,679
|
Professional
fees
|
1,297
|
|
429
|
|
3,662
|
|
2,377
|
Marketing and
promotions
|
1,420
|
|
42
|
|
2,296
|
|
476
|
FDIC insurance
assessments
|
818
|
|
301
|
|
2,553
|
|
1,172
|
Other real
estate owned
|
223
|
|
241
|
|
792
|
|
874
|
Core deposit
intangible amortization
|
481
|
|
-
|
|
1,283
|
|
-
|
Merger related
expense
|
10,136
|
|
2,141
|
|
36,918
|
|
2,141
|
Other
|
5,986
|
|
2,159
|
|
16,178
|
|
9,032
|
Total non-interest
expense
|
45,076
|
|
17,175
|
|
144,432
|
|
62,466
|
Income (loss) before
income taxes
|
(4,516)
|
|
2,040
|
|
549
|
|
19,596
|
Provision (benefit)
for income taxes
|
(5,937)
|
|
283
|
|
(6,233)
|
|
5,369
|
Net
income
|
$ 1,421
|
|
$ 1,757
|
|
$ 6,782
|
|
$ 14,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$0.03
|
|
$0.07
|
|
$0.16
|
|
$0.55
|
Diluted
|
$0.03
|
|
$0.07
|
|
$0.16
|
|
$0.54
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
50,329,002
|
|
25,444,330
|
|
42,829,094
|
|
26,061,942
|
Diluted
|
51,086,811
|
|
25,872,666
|
|
43,269,517
|
|
26,426,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-1
|
United Financial
Bancorp, Inc. and Subsidiaries
|
Consolidated
Statements of Operations
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Interest and
dividend income:
|
|
|
|
|
|
|
|
|
|
Loans
|
$
40,682
|
|
$
40,119
|
|
$
35,366
|
|
$
16,844
|
|
$
16,898
|
Securities-taxable interest
|
5,303
|
|
5,180
|
|
3,981
|
|
1,903
|
|
1,995
|
Securities-non-taxable interest
|
1,794
|
|
1,495
|
|
1,053
|
|
771
|
|
763
|
Securities-dividends
|
409
|
|
381
|
|
339
|
|
173
|
|
72
|
Interest-bearing deposits
|
21
|
|
26
|
|
28
|
|
11
|
|
20
|
Total interest and dividend
income
|
48,209
|
|
47,201
|
|
40,767
|
|
19,702
|
|
19,748
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
4,265
|
|
3,990
|
|
3,146
|
|
2,158
|
|
2,130
|
Borrowed
funds
|
2,052
|
|
1,018
|
|
742
|
|
636
|
|
642
|
Total interest
expense
|
6,317
|
|
5,008
|
|
3,888
|
|
2,794
|
|
2,772
|
Net interest
income
|
41,892
|
|
42,193
|
|
36,879
|
|
16,908
|
|
16,976
|
Provision for loan
losses
|
4,333
|
|
2,633
|
|
2,080
|
|
450
|
|
720
|
Net interest
income after provision
|
|
|
|
|
|
|
|
|
|
for loan losses
|
37,559
|
|
39,560
|
|
34,799
|
|
16,458
|
|
16,256
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Service
charges and fees
|
4,511
|
|
3,944
|
|
3,892
|
|
2,126
|
|
1,810
|
Net gain
(loss) from sales of securities
|
(59)
|
|
430
|
|
589
|
|
268
|
|
-
|
Net gain from
sales of loans
|
741
|
|
667
|
|
1,284
|
|
456
|
|
257
|
Bank-owned
life insurance
|
897
|
|
873
|
|
750
|
|
522
|
|
514
|
Net loss on
limited partnership investments
|
(2,048)
|
|
(2,176)
|
|
-
|
|
-
|
|
-
|
Other income
(loss)
|
(1,041)
|
|
338
|
|
(196)
|
|
(163)
|
|
378
|
Total non-interest
income
|
3,001
|
|
4,076
|
|
6,319
|
|
3,209
|
|
2,959
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits
|
16,758
|
|
17,791
|
|
14,541
|
|
10,242
|
|
9,680
|
Service bureau
fees
|
2,304
|
|
3,016
|
|
1,768
|
|
1,091
|
|
663
|
Occupancy and
equipment
|
5,653
|
|
3,278
|
|
2,610
|
|
1,698
|
|
1,519
|
Professional
fees
|
1,297
|
|
1,081
|
|
856
|
|
428
|
|
429
|
Marketing and
promotions
|
1,420
|
|
367
|
|
280
|
|
229
|
|
42
|
FDIC insurance
assessments
|
818
|
|
785
|
|
632
|
|
318
|
|
301
|
Other real
estate owned
|
223
|
|
136
|
|
125
|
|
308
|
|
241
|
Core deposit
intangible amortization
|
481
|
|
481
|
|
321
|
|
-
|
|
-
|
Merger related
expense
|
10,136
|
|
4,008
|
|
20,945
|
|
1,829
|
|
2,141
|
Other
|
5,986
|
|
3,979
|
|
4,099
|
|
2,114
|
|
2,159
|
Total non-interest
expense
|
45,076
|
|
34,922
|
|
46,177
|
|
18,257
|
|
17,175
|
Income (loss)
before income taxes
|
(4,516)
|
|
8,714
|
|
(5,059)
|
|
1,410
|
|
2,040
|
Provision (benefit)
for income taxes
|
(5,937)
|
|
(1,271)
|
|
512
|
|
463
|
|
283
|
Net income
(loss)
|
$
1,421
|
|
$
9,985
|
|
$
(5,571)
|
|
$
947
|
|
$
1,757
|
|
|
F-2
|
United Financial
Bancorp, Inc. and Subsidiaries
|
Consolidated
Statements of Condition
|
(In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
ASSETS
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
43,416
|
|
$
58,109
|
|
$
66,269
|
|
$
19,977
|
|
$
20,308
|
|
Short-term
investments
|
43,536
|
|
26,876
|
|
23,157
|
|
12,669
|
|
24,927
|
|
|
Total cash and cash
equivalents
|
86,952
|
|
84,985
|
|
89,426
|
|
32,646
|
|
45,235
|
Available for sale
securities - At fair value
|
1,053,011
|
|
1,012,780
|
|
952,033
|
|
442,332
|
|
404,903
|
Held to maturity
securities - At amortized cost
|
15,368
|
|
15,556
|
|
15,761
|
|
14,749
|
|
13,830
|
Loans held for
sale
|
8,220
|
|
6,332
|
|
19,656
|
|
3,267
|
|
422
|
Loans receivable, net
of allowance for loan losses
|
3,877,063
|
|
3,772,522
|
|
3,674,936
|
|
1,739,952
|
|
1,697,012
|
Federal Home Loan
Bank of Boston stock, at cost
|
31,950
|
|
30,090
|
|
30,419
|
|
15,053
|
|
15,053
|
Accrued interest
receivable
|
14,212
|
|
14,712
|
|
13,728
|
|
5,923
|
|
5,706
|
Deferred tax asset,
net
|
33,833
|
|
25,974
|
|
22,656
|
|
9,977
|
|
10,697
|
Premises and
equipment, net
|
57,665
|
|
57,595
|
|
52,149
|
|
25,413
|
|
24,690
|
Goodwill
|
|
115,240
|
|
114,160
|
|
114,936
|
|
1,070
|
|
1,070
|
Core deposit
intangible asset
|
9,302
|
|
9,783
|
|
10,264
|
|
-
|
|
-
|
Cash surrender value
of bank-owned life insurance
|
122,622
|
|
121,724
|
|
120,851
|
|
64,992
|
|
64,470
|
Other real estate
owned
|
2,239
|
|
2,647
|
|
3,213
|
|
2,657
|
|
1,529
|
Other
assets
|
49,132
|
|
44,946
|
|
39,450
|
|
14,517
|
|
16,998
|
|
|
|
$ 5,476,809
|
|
$ 5,313,806
|
|
$ 5,159,478
|
|
$ 2,372,548
|
|
$ 2,301,615
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$
602,359
|
|
$
659,859
|
|
$
649,929
|
|
$
275,068
|
|
$
266,609
|
Interest-bearing
|
3,432,952
|
|
3,369,143
|
|
3,290,261
|
|
1,533,385
|
|
1,468,596
|
|
Total
deposits
|
4,035,311
|
|
4,029,002
|
|
3,940,190
|
|
1,808,453
|
|
1,735,205
|
Mortgagors' and
investor escrow accounts
|
13,004
|
|
6,649
|
|
11,983
|
|
3,868
|
|
6,342
|
Federal Home Loan
Bank advances and other borrowings
|
777,314
|
|
594,873
|
|
526,375
|
|
245,560
|
|
240,228
|
Accrued expenses and
other liabilities
|
48,772
|
|
31,916
|
|
28,287
|
|
14,320
|
|
20,458
|
|
|
Total
liabilities
|
4,874,401
|
|
4,662,440
|
|
4,506,835
|
|
2,072,201
|
|
2,002,233
|
Total stockholders'
equity
|
602,408
|
|
651,366
|
|
652,643
|
|
300,347
|
|
299,382
|
|
|
|
$ 5,476,809
|
|
$ 5,313,806
|
|
$ 5,159,478
|
|
$ 2,372,548
|
|
$ 2,301,615
|
|
|
F-3
|
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,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Share
Data:
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
$
0.03
|
|
$
0.19
|
|
$
(0.13)
|
|
$
0.04
|
|
$
0.07
|
Diluted net income
(loss) per share
|
0.03
|
|
0.19
|
|
(0.13)
|
|
0.04
|
|
0.07
|
Dividends declared
per share
|
0.10
|
|
0.10
|
|
0.10
|
|
0.10
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
Operating
Data:
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
44,893
|
|
$
46,269
|
|
$
43,198
|
|
$
20,117
|
|
$
19,935
|
Total non-interest
expense
|
45,076
|
|
34,922
|
|
46,177
|
|
18,257
|
|
17,175
|
Average earning
assets
|
4,969,225
|
|
4,817,907
|
|
3,892,382
|
|
2,190,391
|
|
2,126,987
|
|
|
|
|
|
|
|
|
|
|
Key
Ratios:
|
|
|
|
|
|
|
|
|
|
Return (loss) on
average assets (annualized)
|
0.11%
|
|
0.76%
|
|
-0.53%
|
|
0.16%
|
|
0.31%
|
Return (loss) on
average equity (annualized)
|
0.90%
|
|
6.12%
|
|
-4.19%
|
|
1.26%
|
|
2.39%
|
Tax-equivalent net
interest margin (annualized)
|
3.44%
|
|
3.56%
|
|
3.86%
|
|
3.17%
|
|
3.23%
|
|
|
|
|
|
|
|
|
|
|
Residential
Mortgage Production:
|
|
|
|
|
|
|
|
|
|
Dollar volume
(total)
|
$
121,886
|
|
$
115,787
|
|
$
82,434
|
|
$
58,141
|
|
$
59,687
|
Mortgages originated
for home purchases
|
74,171
|
|
80,709
|
|
64,273
|
|
38,474
|
|
37,046
|
Loans sold
|
39,489
|
|
55,806
|
|
23,485
|
|
17,923
|
|
22,493
|
Net gains from sales
of loans
|
741
|
|
667
|
|
1,284
|
|
456
|
|
257
|
|
|
|
|
|
|
|
|
|
|
Non-performing
Assets:
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
$
12,387
|
|
$
11,468
|
|
$
8,366
|
|
$
8,373
|
|
$
8,887
|
Commercial real
estate
|
10,663
|
|
5,914
|
|
168
|
|
-
|
|
656
|
Construction
|
611
|
|
638
|
|
665
|
|
673
|
|
1,518
|
Commercial
business
|
4,872
|
|
5,703
|
|
5,516
|
|
1,148
|
|
1,259
|
Installment and
collateral
|
25
|
|
386
|
|
18
|
|
6
|
|
3
|
Non-accrual
loans
|
28,558
|
|
24,109
|
|
14,733
|
|
10,200
|
|
12,323
|
Troubled debt
restructures - non-accruing
|
3,800
|
|
5,180
|
|
4,380
|
|
1,784
|
|
1,331
|
Total non-performing
loans
|
32,358
|
|
29,289
|
|
19,113
|
|
11,984
|
|
13,654
|
Other real estate
owned
|
2,239
|
|
2,647
|
|
3,213
|
|
2,657
|
|
1,529
|
Total non-performing
assets
|
$
34,597
|
|
$
31,936
|
|
$
22,326
|
|
$
14,641
|
|
$
15,183
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
to total loans
|
0.83%
|
|
0.77%
|
|
0.52%
|
|
0.68%
|
|
0.80%
|
Non-performing assets
to total assets
|
0.63%
|
|
0.60%
|
|
0.43%
|
|
0.62%
|
|
0.66%
|
Allowance for loan
losses to non-performing loans
|
76.67%
|
|
76.15%
|
|
111.67%
|
|
162.72%
|
|
140.50%
|
Allowance for loan
losses to total loans
|
0.64%
|
|
0.59%
|
|
0.58%
|
|
1.11%
|
|
1.12%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Ratios: (1)
|
|
|
|
|
|
|
|
|
|
Non-interest expense
to average assets
|
3.35%
|
|
2.66%
|
|
4.41%
|
|
3.16%
|
|
3.06%
|
Efficiency ratio
(2)
|
96.03%
|
|
72.09%
|
|
106.89%
|
|
90.76%
|
|
86.15%
|
Cost of
interest-bearing deposits (annualized)
|
0.50%
|
|
0.46%
|
|
0.46%
|
|
0.58%
|
|
0.59%
|
Revenue growth
rate
|
-2.97%
|
|
7.11%
|
|
114.73%
|
|
0.91%
|
|
-9.28%
|
Revenue growth rate
(annualized)
|
-11.90%
|
|
28.44%
|
|
n/m
|
(3)
|
3.65%
|
|
-37.10%
|
Average earning asset
growth rate
|
3.14%
|
|
23.78%
|
|
77.70%
|
|
2.98%
|
|
3.53%
|
Average earning asset
growth rate (annualized)
|
12.56%
|
|
95.11%
|
|
n/m
|
(3)
|
11.92%
|
|
14.14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) The
efficiency ratio represents the ratio of non-interest expenses to
the sum of net interest income before provision for loan losses and
non-interest income, exclusive of
|
net loss on
limited partnership investments.
|
|
|
|
|
|
|
|
|
|
|
|
(3) The
annualized growth rate for revenue and earning assets based on
second quarter 2014 results is not meaningful due to the
acquisition of United Financial Bancorp, Inc.
|
on April 30,
2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
F- 4
|
United Financial
Bancorp, Inc. and Subsidiaries
|
Average Balance
Sheets, Interest and Yields/Costs
|
(Dollars In
Thousands)
|
(Unaudited)
|
|
For the
Three Months Ended
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
Interest
|
|
|
|
|
Interest
|
|
|
Average
|
|
and
|
|
|
Average
|
|
and
|
|
Interest-earning
assets:
|
Balance
|
|
Dividends
|
Yield/Cost
|
|
Balance
|
|
Dividends
|
Yield/Cost
|
Residential real
estate
|
$ 1,403,045
|
|
$ 12,296
|
3.51
|
%
|
$ 630,228
|
|
$ 5,706
|
3.62
|
Commercial real
estate
|
1,665,230
|
|
19,538
|
4.65
|
|
761,970
|
|
8,450
|
4.40
|
Construction
|
162,823
|
|
2,406
|
5.86
|
|
52,459
|
|
497
|
3.76
|
Commercial
business
|
618,429
|
|
6,380
|
4.09
|
|
233,491
|
|
2,214
|
3.76
|
Installment and
collateral
|
8,483
|
|
62
|
2.94
|
|
2,315
|
|
31
|
5.38
|
Investment
securities
|
1,048,052
|
|
8,385
|
3.20
|
|
399,033
|
|
3,075
|
3.08
|
Federal Home Loan
Bank stock
|
30,110
|
|
113
|
1.49
|
|
15,053
|
|
14
|
0.37
|
Other earning
assets
|
33,053
|
|
21
|
0.25
|
|
32,438
|
|
20
|
0.25
|
Total
interest-earning assets
|
4,969,225
|
|
49,201
|
3.94
|
|
2,126,987
|
|
20,007
|
3.75
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
(23,353)
|
|
|
|
|
(18,930)
|
|
|
|
Non-interest-earning
assets
|
434,559
|
|
|
|
|
140,383
|
|
|
|
Total
assets
|
$ 5,380,431
|
|
|
|
|
$ 2,248,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
NOW and money
market
|
$ 1,309,691
|
|
1,024
|
0.31
|
|
$ 659,882
|
|
547
|
0.33
|
Savings
|
549,209
|
|
100
|
0.07
|
|
224,098
|
|
37
|
0.07
|
Certificates of
deposit
|
1,545,452
|
|
3,141
|
0.81
|
|
559,951
|
|
1,546
|
1.10
|
Total
interest-bearing deposits
|
3,404,352
|
|
4,265
|
0.50
|
|
1,443,931
|
|
2,130
|
0.59
|
Federal Home Loan
Bank advances
|
469,194
|
|
589
|
0.50
|
|
181,117
|
|
609
|
1.33
|
Other
borrowings
|
205,057
|
|
1,463
|
2.85
|
|
30,366
|
|
33
|
0.43
|
Total
interest-bearing liabilities
|
4,078,603
|
|
6,317
|
0.62
|
|
1,655,414
|
|
2,772
|
0.66
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
616,618
|
|
|
|
|
265,736
|
|
|
|
Other
liabilities
|
53,786
|
|
|
|
|
33,267
|
|
|
|
Total
liabilities
|
4,749,007
|
|
|
|
|
1,954,417
|
|
|
|
Stockholders'
equity
|
631,424
|
|
|
|
|
294,023
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 5,380,431
|
|
|
|
|
$ 2,248,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$ 890,622
|
|
|
|
|
$ 471,573
|
|
|
|
Tax-equivalent net
interest income
|
|
|
42,884
|
|
|
|
|
17,235
|
|
Tax-equivalent net
interest rate spread
|
|
|
|
3.32
|
|
|
|
|
3.09
|
Tax-equivalent net
interest margin
|
|
|
|
3.44
|
|
|
|
|
3.23
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities
|
|
|
|
121.84
|
|
|
|
|
128.49
|
|
|
|
|
|
|
|
|
|
|
Less tax-equivalent
adjustment
|
|
|
992
|
|
|
|
|
259
|
|
Net interest
income
|
|
|
$ 41,892
|
|
|
|
|
$ 16,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2014
|
|
September 30,
2014
|
|
|
|
|
Interest
|
|
|
|
|
Interest
|
|
|
|
Average
|
|
and
|
|
|
Average
|
|
and
|
|
|
Interest-earning
assets:
|
Balance
|
|
Dividends
|
Yield/Cost
|
|
Balance
|
|
Dividends
|
Yield/Cost
|
|
Residential real
estate
|
$ 1,403,045
|
|
$ 12,296
|
3.51
|
%
|
$ 1,364,982
|
|
$ 11,776
|
3.45
|
%
|
Commercial real
estate
|
1,665,230
|
|
19,538
|
4.65
|
|
1,632,233
|
|
18,549
|
4.51
|
|
Construction
|
162,823
|
|
2,406
|
5.86
|
|
123,848
|
|
2,851
|
9.13
|
|
Commercial
business
|
618,429
|
|
6,380
|
4.09
|
|
610,574
|
|
6,787
|
4.41
|
|
Installment and
collateral
|
8,483
|
|
62
|
2.94
|
|
17,146
|
|
156
|
3.64
|
|
Investment
securities
|
1,048,052
|
|
8,385
|
3.20
|
|
987,362
|
|
7,809
|
3.16
|
|
Federal Home Loan
Bank stock
|
30,110
|
|
113
|
1.49
|
|
30,197
|
|
115
|
1.51
|
|
Other earning
assets
|
33,053
|
|
21
|
0.25
|
|
51,565
|
|
26
|
0.20
|
|
Total
interest-earning assets
|
4,969,225
|
|
49,201
|
3.94
|
|
4,817,907
|
|
48,069
|
3.97
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
(23,353)
|
|
|
|
|
(22,152)
|
|
|
|
|
Non-interest-earning
assets
|
434,559
|
|
|
|
|
446,626
|
|
|
|
|
Total
assets
|
$ 5,380,431
|
|
|
|
|
$ 5,242,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
NOW and money
market
|
$ 1,309,691
|
|
1,024
|
0.31
|
|
$ 1,366,795
|
|
945
|
0.28
|
|
Savings
|
549,209
|
|
100
|
0.07
|
|
438,607
|
|
167
|
0.15
|
|
Certificates of
deposit
|
1,545,452
|
|
3,141
|
0.81
|
|
1,532,862
|
|
2,878
|
0.75
|
|
Total
interest-bearing deposits
|
3,404,352
|
|
4,265
|
0.50
|
|
3,338,264
|
|
3,990
|
0.48
|
|
Federal Home Loan
Bank advances
|
469,194
|
|
589
|
0.50
|
|
400,220
|
|
584
|
0.58
|
|
Other
borrowings
|
205,057
|
|
1,463
|
2.85
|
|
165,557
|
|
434
|
1.05
|
|
Total
interest-bearing liabilities
|
4,078,603
|
|
6,317
|
0.62
|
|
3,904,041
|
|
5,008
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
616,618
|
|
|
|
|
632,425
|
|
|
|
|
Other
liabilities
|
53,786
|
|
|
|
|
53,011
|
|
|
|
|
Total
liabilities
|
4,749,007
|
|
|
|
|
4,589,477
|
|
|
|
|
Stockholders'
equity
|
631,424
|
|
|
|
|
652,904
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 5,380,431
|
|
|
|
|
$ 5,242,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
890,622
|
|
|
|
|
$ 913,866
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
42,884
|
|
|
|
|
43,061
|
|
|
Tax-equivalent net
interest rate spread
|
|
|
|
3.32
|
|
|
|
|
3.46
|
|
Tax-equivalent net
interest margin
|
|
|
|
3.44
|
|
|
|
|
3.56
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
|
|
121.84
|
|
|
|
|
123.41
|
|
|
|
|
|
|
|
|
|
|
|
|
Less tax-equivalent
adjustment
|
|
|
992
|
|
|
|
|
868
|
|
|
Net interest
income
|
|
|
$ 41,892
|
|
|
|
|
$ 42,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F- 6
|
|
United Financial
Bancorp, Inc. and Subsidiaries
|
Average Balance
Sheets, Interest and Yields/Costs
|
(Dollars In
Thousands)
|
(Unaudited)
|
|
|
For the Year Ended
December 31,
|
|
2014
|
|
|
2013
|
|
Average
Balance
|
|
Interest and
Dividends
|
|
Yield/Cost
|
|
Average
Balance
|
|
Interest and
Dividends
|
|
Yield/Cost
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real
estate
|
$
1,134,890
|
|
$ 39,537
|
|
3.48
|
%
|
|
$
652,220
|
|
$ 24,646
|
|
3.78
|
%
|
Commercial real
estate
|
1,365,059
|
|
65,044
|
|
4.76
|
|
|
724,089
|
|
33,337
|
|
4.60
|
|
Construction
|
106,291
|
|
7,469
|
|
7.03
|
|
|
48,531
|
|
1,773
|
|
3.65
|
|
Commercial
business
|
492,035
|
|
20,549
|
|
4.18
|
|
|
197,499
|
|
7,867
|
|
3.98
|
|
Installment and
collateral
|
10,147
|
|
412
|
|
4.06
|
|
|
2,581
|
|
129
|
|
5.01
|
|
Investment
securities
|
809,305
|
|
25,203
|
|
3.11
|
|
|
348,627
|
|
10,619
|
|
3.05
|
|
Federal Home Loan
Bank stock
|
24,097
|
|
404
|
|
1.68
|
|
|
15,222
|
|
59
|
|
0.39
|
|
Other earning
assets
|
35,842
|
|
86
|
|
0.24
|
|
|
30,143
|
|
80
|
|
0.27
|
|
Total
interest-earning assets
|
3,977,666
|
|
158,704
|
|
3.99
|
|
|
2,018,912
|
|
78,510
|
|
3.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
(21,192)
|
|
|
|
|
|
|
(18,664)
|
|
|
|
|
|
Non-interest-earning
assets
|
329,652
|
|
|
|
|
|
|
133,409
|
|
|
|
|
|
Total
assets
|
$
4,286,126
|
|
|
|
|
|
|
$
2,133,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and money
market
|
$
1,109,625
|
|
3,293
|
|
0.30
|
|
|
$
596,580
|
|
1,772
|
|
0.30
|
|
Savings
|
418,091
|
|
437
|
|
0.10
|
|
|
225,379
|
|
142
|
|
0.06
|
|
Certificates of
deposit
|
1,218,782
|
|
9,829
|
|
0.81
|
|
|
541,148
|
|
6,078
|
|
1.12
|
|
Total
interest-bearing deposits
|
2,746,498
|
|
13,559
|
|
0.49
|
|
|
1,363,107
|
|
7,992
|
|
0.59
|
|
Federal Home Loan
Bank advances
|
344,218
|
|
2,326
|
|
0.68
|
|
|
179,637
|
|
2,387
|
|
1.33
|
|
Other
borrowings
|
127,381
|
|
2,122
|
|
1.67
|
|
|
17,842
|
|
81
|
|
0.45
|
|
Total
interest-bearing liabilities
|
3,218,097
|
|
18,007
|
|
0.56
|
|
|
1,560,586
|
|
10,460
|
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
503,398
|
|
|
|
|
|
|
238,803
|
|
|
|
|
|
Other
liabilities
|
34,482
|
|
|
|
|
|
|
29,681
|
|
|
|
|
|
Total
liabilities
|
3,755,977
|
|
|
|
|
|
|
1,829,070
|
|
|
|
|
|
Stockholders'
equity
|
530,149
|
|
|
|
|
|
|
304,587
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
4,286,126
|
|
|
|
|
|
|
$
2,133,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
759,569
|
|
|
|
|
|
|
$
458,326
|
|
|
|
|
|
Tax-equivalent net
interest income
|
|
|
140,697
|
|
|
|
|
|
|
68,050
|
|
|
|
Tax-equivalent net
interest rate spread
|
|
|
|
|
3.43
|
|
|
|
|
|
|
3.22
|
|
Tax-equivalent net
interest margin
|
|
|
|
|
3.54
|
|
|
|
|
|
|
3.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets to average interest-bearing
liabilities
|
|
|
|
|
123.60
|
|
|
|
|
|
|
129.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less tax-equivalent
adjustment
|
|
|
2,825
|
|
|
|
|
|
|
993
|
|
|
|
Net interest
income
|
|
|
$ 137,872
|
|
|
|
|
|
|
$ 67,057
|
|
|
|
|
|
|
F-7
|
United Financial
Bancorp, Inc. and Subsidiaries
|
Reconciliation of
Non-GAAP Financial Measures
|
(Dollars In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1,421
|
|
$
9,985
|
|
$
(5,571)
|
|
$
947
|
|
$
1,757
|
|
$
6,782
|
|
$
14,227
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
(3,421)
|
|
(3,828)
|
|
(4,948)
|
|
-
|
|
-
|
|
(12,197)
|
|
-
|
|
Non-interest
income
|
|
729
|
|
(430)
|
|
(589)
|
|
(268)
|
|
-
|
|
(558)
|
|
(585)
|
|
Non-interest
expense
|
|
12,513
|
|
4,497
|
|
21,266
|
|
1,829
|
|
2,141
|
|
40,105
|
|
3,511
|
|
Income tax expense
(benefit)
|
|
(2,926)
|
|
226
|
|
(4,346)
|
|
(357)
|
|
(602)
|
|
(7,403)
|
|
(853)
|
|
Net
adjustment
|
|
6,895
|
|
465
|
|
11,383
|
|
1,204
|
|
1,539
|
|
19,947
|
|
2,073
|
Total operating net
income
|
|
$
8,316
|
|
$
10,450
|
|
$
5,812
|
|
$
2,151
|
|
$
3,296
|
|
$
26,729
|
|
$
16,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net interest
income
|
|
$
41,892
|
|
$
42,193
|
|
$
36,879
|
|
$
16,908
|
|
$
16,976
|
|
$
137,872
|
|
$
67,057
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact from purchase
accounting fair value marks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Accretion) /
Amortization of loan mark
|
|
(1,543)
|
|
(1,734)
|
|
(3,388)
|
|
-
|
|
-
|
|
(6,665)
|
|
-
|
|
Accretion /
(Amortization) of deposit mark
|
|
1,276
|
|
1,482
|
|
1,150
|
|
-
|
|
-
|
|
3,908
|
|
-
|
|
Accretion /
(Amortization) of borrowings mark
|
|
602
|
|
612
|
|
410
|
|
-
|
|
-
|
|
1,624
|
|
-
|
|
Net
adjustment
|
|
(3,421)
|
|
(3,828)
|
|
(4,948)
|
|
-
|
|
-
|
|
(12,197)
|
|
-
|
Total operating net
interest income
|
|
$
38,471
|
|
$
38,365
|
|
$
31,931
|
|
$
16,908
|
|
$
16,976
|
|
$
125,675
|
|
$
67,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
|
$
3,001
|
|
$
4,076
|
|
$
6,319
|
|
$
3,209
|
|
$
2,959
|
|
$
16,605
|
|
$
17,051
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss on
sales of securities
|
|
59
|
|
(430)
|
|
(589)
|
|
(268)
|
|
-
|
|
(1,228)
|
|
(585)
|
|
Loss on fixed assets
- branch optimization
|
|
670
|
|
-
|
|
-
|
|
-
|
|
-
|
|
670
|
|
-
|
|
Net
adjustment
|
|
729
|
|
(430)
|
|
(589)
|
|
(268)
|
|
-
|
|
(558)
|
|
(585)
|
Total operating
non-interest income
|
|
3,730
|
|
3,646
|
|
5,730
|
|
2,941
|
|
2,959
|
|
16,047
|
|
16,466
|
Total operating net
interest income
|
|
38,471
|
|
38,365
|
|
31,931
|
|
16,908
|
|
16,976
|
|
125,675
|
|
67,057
|
Total operating
revenue
|
|
$
42,201
|
|
$
42,011
|
|
$
37,661
|
|
$
19,849
|
|
$
19,935
|
|
$
141,722
|
|
$
83,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
$
45,076
|
|
$
34,922
|
|
$
46,177
|
|
$
18,257
|
|
$
17,175
|
|
$
144,432
|
|
$
62,466
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and
acquisition expense
|
|
(10,136)
|
|
(4,008)
|
|
(20,945)
|
|
(1,829)
|
|
(2,141)
|
|
(36,918)
|
|
(2,141)
|
|
Core deposit
intangible amortization expense
|
|
(481)
|
|
(481)
|
|
(321)
|
|
-
|
|
-
|
|
(1,283)
|
|
-
|
|
Effect of position
eliminations
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(561)
|
|
Effect of branch
lease termination agreements
|
|
(1,888)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,888)
|
|
(809)
|
|
Amortization of fixed
asset fair value mark
|
|
(8)
|
|
(8)
|
|
-
|
|
-
|
|
-
|
|
(16)
|
|
-
|
|
Net
adjustment
|
|
(12,513)
|
|
(4,497)
|
|
(21,266)
|
|
(1,829)
|
|
(2,141)
|
|
(40,105)
|
|
(3,511)
|
Total operating
expense
|
|
$
32,563
|
|
$
30,425
|
|
$
24,911
|
|
$
16,428
|
|
$
15,034
|
|
$
104,327
|
|
$
58,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
|
$ 3,897,866
|
|
$ 3,791,491
|
|
$ 3,693,115
|
|
$ 1,756,611
|
|
$ 1,713,792
|
|
$ 3,897,866
|
|
$ 1,713,792
|
|
Non-covered loans
(1)
|
|
(1,658,594)
|
|
(1,693,669)
|
|
(1,820,526)
|
|
-
|
|
-
|
|
(1,655,102)
|
|
-
|
|
Total covered
loans
|
|
$ 2,239,272
|
|
$ 2,097,822
|
|
$ 1,872,589
|
|
$ 1,756,611
|
|
$ 1,713,792
|
|
$ 2,242,764
|
|
$ 1,713,792
|
|
Allowance for loan
losses
|
|
24,809
|
|
22,304
|
|
$
21,343
|
|
$
19,500
|
|
$
19,183
|
|
24,809
|
|
$
19,183
|
|
Allowance for loan
losses to total loans
|
|
0.64%
|
|
0.59%
|
|
0.58%
|
|
1.11%
|
|
1.12%
|
|
0.64%
|
|
1.12%
|
|
Allowance for loan
losses to total covered loans
|
|
1.11%
|
|
1.06%
|
|
1.14%
|
|
1.11%
|
|
1.12%
|
|
1.11%
|
|
1.12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As required
by GAAP, the Company recorded at fair value the loans acquired in
the legacy United transactions. These loans carry no allowance for
loan losses
|
|
|
|
for the periods
reflected above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-8
|
United Financial
Bancorp, Inc. and Subsidiaries
|
Selected Interest
Income/Expense and Yields/Costs
|
Reconciliation of
Non-GAAP Financial Measures
|
(Dollars In
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Mark to
Market
|
|
Operating
|
|
|
|
|
|
Interest
|
|
|
|
Interest
|
|
|
|
Interest
|
|
|
|
|
|
|
|
and
|
|
|
|
and
|
|
|
|
and
|
|
|
|
|
|
|
|
Dividends
|
|
Yield/Cost
|
|
Dividends
|
|
Yield/Cost
|
|
Dividends
|
|
Yield/Cost
|
|
|
|
Residential real
estate
|
|
$ 12,296
|
|
3.51
|
%
|
$ (633)
|
|
(0.21)
|
%
|
$ 12,929
|
|
3.72
|
%
|
|
|
Commercial real
estate
|
|
19,538
|
|
4.65
|
|
744
|
|
0.21
|
|
18,794
|
|
4.44
|
|
|
|
Construction
|
|
2,406
|
|
5.86
|
|
774
|
|
2.03
|
|
1,632
|
|
3.83
|
|
|
|
Commercial
business
|
|
6,380
|
|
4.09
|
|
685
|
|
0.51
|
|
5,695
|
|
3.58
|
|
|
|
Installment and
collateral
|
|
62
|
|
2.94
|
|
(27)
|
|
(1.81)
|
|
89
|
|
4.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit
|
|
3,141
|
|
0.81
|
|
(1,276)
|
|
(0.33)
|
|
4,417
|
|
1.14
|
|
|
|
Federal Home Loan
Bank advances
|
|
589
|
|
0.50
|
|
(609)
|
|
(0.53)
|
|
1,198
|
|
1.03
|
|
|
|
Other
borrowings
|
|
1,463
|
|
2.85
|
|
7
|
|
(0.14)
|
|
1,456
|
|
2.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net
interest margin
|
|
42,884
|
|
3.44
|
|
3,421
|
|
|
|
39,463
|
|
3.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Mark to
Market
|
|
Operating
|
|
|
|
|
|
Interest
|
|
|
|
Interest
|
|
|
|
Interest
|
|
|
|
|
|
|
|
and
|
|
|
|
and
|
|
|
|
and
|
|
|
|
|
|
|
|
Dividends
|
|
Yield/Cost
|
|
Dividends
|
|
Yield/Cost
|
|
Dividends
|
|
Yield/Cost
|
|
|
|
Residential real
estate
|
|
$ 11,776
|
|
3.45
|
%
|
$ (794)
|
|
(0.27)
|
%
|
$ 12,570
|
|
3.72
|
%
|
|
|
Commercial real
estate
|
|
18,549
|
|
4.51
|
|
248
|
|
0.10
|
|
18,301
|
|
4.41
|
|
|
|
Construction
|
|
2,851
|
|
9.13
|
|
1,348
|
|
4.59
|
|
1,503
|
|
4.54
|
|
|
|
Commercial
business
|
|
6,787
|
|
4.41
|
|
1,003
|
|
0.73
|
|
5,784
|
|
3.68
|
|
|
|
Installment and
collateral
|
|
156
|
|
3.64
|
|
(71)
|
|
(2.00)
|
|
227
|
|
5.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit
|
|
2,878
|
|
0.75
|
|
(1,482)
|
|
(0.38)
|
|
4,360
|
|
1.13
|
|
|
|
Federal Home Loan
Bank advances
|
|
584
|
|
0.58
|
|
(620)
|
|
(0.63)
|
|
1,204
|
|
1.21
|
|
|
|
Other
borrowings
|
|
434
|
|
1.05
|
|
8
|
|
0.04
|
|
426
|
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net
interest margin
|
|
43,061
|
|
3.56
|
|
3,828
|
|
|
|
39,233
|
|
3.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-9
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20141027/154555LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/united-financial-bancorp-inc-announces-fourth-quarter-and-annual-earnings-results-and-fourth-quarter-dividend-300026601.html
SOURCE United Financial Bancorp, Inc.