Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - United Financial Bancorp, Inc. | exhibit992earningsdeck20.htm |
| 8-K - 8-K - United Financial Bancorp, Inc. | a8-k20161231.htm |
Exhibit 99.1
For Immediate Release: | January 24, 2017 | |
Investor Relations Contact: Marliese L. Shaw Executive Vice President, Investor Relations Officer United Bank 860-291-3622 MShaw@bankatunited.com | Media Relations Contact: Adam J. Jeamel Regional President, Corporate Communications United Bank 860-291-3765 AJeamel@bankatunited.com | |
UNITED FINANCIAL BANCORP, INC.
ANNOUNCES RECORD EARNINGS FOR FOURTH QUARTER,
QUARTERLY DIVIDEND AND ANNUAL MEETING DATE
GLASTONBURY, Conn., January 24, 2017 – United Financial Bancorp, Inc. (“United Financial” or the "Company”) (NASDAQ Global Select Stock Market: “UBNK”), the holding company for United Bank (the "Bank”), announced results for the quarter ended December 31, 2016.
The Company reported net income of $14.6 million, or $0.29 per diluted share, for the quarter ended December 31, 2016, compared to net income for the linked quarter of $14.2 million, or $0.28 per diluted share. The Company reported net income of $9.9 million, or $0.20 per diluted share, for the quarter ended December 31, 2015.
"In the fourth quarter of 2016 the United Financial Bancorp, Inc. team delivered record revenue, record earnings per share, and strong loan growth all supported by an attractive cost structure and excellent asset quality," stated William H. W. Crawford, IV, Chief Executive Officer of the Company and the Bank. "I want to thank our employees for their relentless focus on serving the financial needs of our customers."
GAAP net income for the year ended December 31, 2016 was $49.7 million, or $0.99 per diluted share, compared to GAAP net income for the year ended December 31, 2015 of $49.6 million, or $1.00 per diluted share. Non-GAAP net income for the year ended December 31, 2016 was $49.6 million compared to $44.2 million for the year ended December 31, 2015. Non-GAAP net income for the year ended December 31, 2016 was adjusted for purchase accounting impacts, the net gain from sales of securities, bank-owned life insurance ("BOLI") claim benefit and the effect of position eliminations as part of the Company's 2016 reorganization plan. For the year ended December 31, 2015, non-GAAP net income was adjusted for purchase accounting impacts, the net gain from sales of securities, BOLI claim benefit, merger related expenses and fees associated with loan portfolio acquisitions.
UBNK - United Financial Bancorp, Inc. | Page 1 | www.unitedfinancialinc.com |
Balance Sheet
Total assets at December 31, 2016 increased by $54.7 million to $6.60 billion from $6.54 billion at September 30, 2016. At December 31, 2016, total loans were $4.90 billion, representing an increase of $181.0 million, or 3.8%, from the linked quarter. Changes to loan balances during the fourth quarter of 2016 were highlighted by a $63.9 million, or 9.7%, increase in commercial business loans and a $24.6 million, or 6.3%, increase in owner-occupied commercial real estate loans. Total residential mortgages increased during the fourth quarter of 2016 by $27.1 million and total held for sale loans decreased $20.8 million. Total cash and cash equivalents decreased $123.3 million, or 57.6%, during the linked quarter partially due to the Company funding loan originations.
Deposits totaled $4.71 billion at December 31, 2016 and increased by $15.7 million, or 0.3%, from $4.70 billion at September 30, 2016. Reflective of growth in newly acquired deposit relationships, increases in the fourth quarter of 2016 included a $20.2 million, or 2.9%, increase in non-interest bearing deposits and a $65.6 million, or 15.2%, increase in NOW checking deposits. These increases were offset by a $115.4 million, or 6.2%, decrease in certificates of deposit, some of which migrated to money market deposit accounts that reflected growth of $40.5 million, or 3.4%, during the quarter ended December 31, 2016.
Total Federal Home Loan Bank advances and other borrowings increased by $66.7 million, or 6.1%, at December 31, 2016 from the linked quarter.
Net Interest Income
Net interest income increased by $143,000, or 0.3%, to $43.2 million during the fourth quarter of 2016 from $43.0 million during the linked quarter. Interest income totaled $53.6 million in the fourth quarter of 2016 and increased by $285,000, or 0.5%, in comparison to $53.3 million in the linked quarter. As communicated in the second quarter of 2016, the Company planned to grow assets at a slower pace and as a result, average interest-earning assets increased slightly by $69.4 million, or 1.2%, from the linked quarter. Average loan balances increased by $41.6 million, or 0.9%, from the linked quarter, highlighted by a $26.6 million, or 1.3%, increase in commercial real estate loans and a $1.2 million, or 0.2%, increase in commercial business loans. Average residential mortgage balances decreased by $6.7 million, or 0.6%, during the fourth quarter of 2016. On a non-GAAP basis, net interest income increased by $119,000 to $42.8 million during the fourth quarter of 2016 as compared to the linked quarter.
Interest expense increased by $142,000 to $10.4 million during the fourth quarter of 2016 from $10.3 million in the linked quarter. Average balance increases in the fourth quarter of 2016 included a $135.5 million, or 9.1%, increase in NOW and money market deposits and a $48.2 million, or 2.6%, increase in certificates of deposit. The growth observed in the money market and NOW checking deposits was largely driven by newly acquired deposit relationships.
The GAAP tax equivalent net interest margin for the fourth quarter of 2016 decreased by two basis points to 2.96% compared to 2.98% for the linked quarter. The yield on interest-earning assets decreased by two basis points in the fourth quarter of 2016 to 3.65% as compared to the linked quarter, and the total funding cost increased one basis point to 0.73% in the quarter ending December 31, 2016. The non-GAAP net interest margin, which excludes the impact of purchase accounting adjustments, decreased by two basis points to 2.94% in the fourth quarter of 2016 from 2.96% in the linked quarter.
UBNK - United Financial Bancorp, Inc. | Page 2 | www.unitedfinancialinc.com |
Provision for Loan Losses
The provision for loan losses decreased by $407,000, or 10.8% to $3.4 million for the quarter ended December 31, 2016 compared to $3.8 million for the linked quarter. The decrease in the provision for the quarter is the result of slowed growth in the covered portfolio. Net charge-offs for the year ending December 31, 2016 totaled $4.5 million, or 0.10% as a percentage of average loans outstanding, as compared to $3.9 million, or 0.10% as a percentage of average loans outstanding, as of the year ending December 31, 2015. 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 increased by $1.0 million, or 13.3%, to $8.9 million for the quarter ended December 31, 2016 from $7.9 million in the linked quarter. The increase in the fourth quarter's non-interest income was driven primarily by a $640,000 increase in mortgage banking activities as compared to the linked quarter. Total non-interest income increased by $473,000 from the comparable quarter in 2015.
Non-Interest Expense
GAAP non-interest expense for the quarter ended December 31, 2016 totaled $33.3 million and increased by $1.1 million, or 3.3%, from the linked quarter, while non-GAAP non-interest expense increased by $1.0 million, or 3.2%. The increase in GAAP non-interest expense during the quarter was mostly due to the $978,000, or 5.3%, increase in salaries and employee benefits expense as compared to the linked quarter. The increase in salaries and employee benefits expense was due to the Company continuing to make investments in hiring experienced information technology personnel, as well as increases in commissions and health insurance expense as compared to the linked quarter. The Company's cost structure continues to be favorable with non-interest expense to average assets reported at 2.05% for the quarter ended December 31, 2016, on an annualized basis. Total non-GAAP non-interest expense increased by $1.1 million from the comparable quarter in 2015.
Asset Quality
Asset quality remained strong and stable. Non-performing assets decreased by $167,000 to $36.0 million at December 31, 2016 from $36.1 million at September 30, 2016. The ratio of non-performing assets to total assets as compared to the linked quarter decreased to 0.54% at December 31, 2016 from 0.55% at September 30, 2016.
Capital
The Company reported Tangible Common Equity ("TCE") of $534.7 million, or 8.24% of average assets, at December 31, 2016. Tangible book value per share decreased to $10.53 at December 31, 2016 from $10.60 at September 30, 2016. The decrease was primarily due to a net contraction in accumulated other comprehensive income as a result of the increase in interest rates during the fourth quarter of 2016 as well as the cash dividend payment to shareholders of $0.12 per share, which reduced shareholders' equity by $6.0 million. These decreases were partially offset by the impact of the Company’s net income of $14.6 million, and the change in the value of the Company's derivative strategy. Book value per share at December 31, 2016 was $12.91.
UBNK - United Financial Bancorp, Inc. | Page 3 | www.unitedfinancialinc.com |
Dividend
The Board of Directors declared a cash dividend on the Company’s common stock of $0.12 per share to shareholders of record at the close of business on February 3, 2017 and payable on February 15, 2017. This dividend equates to a 3.00% annualized yield based on the $16.01 average closing price of the Company’s common stock in the fourth quarter of 2016. The Company has paid dividends for 43 consecutive quarters.
Investor Conference Call
United Financial Bancorp, Inc. will host a conference call on Wednesday, January 25, 2017 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, 2017 by calling 1-877-344-7529 and entering conference number 10098766. A podcast will be available on the Company’s website for an extended period of time, as well as on the Company’s investor relations app.
Investor Presentation
United Financial Bancorp, Inc. has prepared and furnished a visual slide presentation to accompany the earnings press release and investor conference call. The presentation has been furnished as an exhibit to the SEC Form 8-K, but is not included in this press release. Copies of the presentation may be accessed on the Company’s investor relations website (www.unitedfinancialinc.com) by selecting “News & Market Data,” then “Presentations;” or via the IRapp and selecting “Presentations;” or directly from SEC EDGAR.
Annual Meeting
The Board of Directors approved May 24, 2017 as the date of the Company's 2017 Annual Meeting of Shareholders (the "Annual Meeting") and set the record date on which the Company's shareholders who will be eligible to vote at the Annual Meeting as the close of business on March 15, 2017.
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 December 31, 2016, the Company had $6.6 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.
UBNK - United Financial Bancorp, Inc. | Page 4 | www.unitedfinancialinc.com |
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-9 and F-14 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.
UBNK - United Financial Bancorp, Inc. | Page 5 | www.unitedfinancialinc.com |
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||
Loans | $ | 45,460 | $ | 41,751 | $ | 179,819 | $ | 165,409 | ||||||||
Securities-taxable interest | 4,848 | 5,092 | 19,678 | 20,039 | ||||||||||||
Securities-non-taxable interest | 2,191 | 2,001 | 8,392 | 8,354 | ||||||||||||
Securities-dividends | 986 | 809 | 3,920 | 2,363 | ||||||||||||
Interest-bearing deposits | 136 | 61 | 343 | 180 | ||||||||||||
Total interest and dividend income | 53,621 | 49,714 | 212,152 | 196,345 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 6,649 | 5,799 | 25,576 | 21,442 | ||||||||||||
Borrowed funds | 3,800 | 3,222 | 15,477 | 10,321 | ||||||||||||
Total interest expense | 10,449 | 9,021 | 41,053 | 31,763 | ||||||||||||
Net interest income | 43,172 | 40,693 | 171,099 | 164,582 | ||||||||||||
Provision for loan losses | 3,359 | 3,780 | 13,437 | 13,005 | ||||||||||||
Net interest income after provision for loan losses | 39,813 | 36,913 | 157,662 | 151,577 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges and fees | 5,580 | 5,606 | 20,259 | 21,040 | ||||||||||||
Net gain from sales of securities | 94 | 300 | 1,961 | 939 | ||||||||||||
Income from mortgage banking activities | 2,838 | 1,934 | 8,227 | 9,552 | ||||||||||||
Bank-owned life insurance income | 863 | 1,059 | 3,394 | 3,616 | ||||||||||||
Net loss on limited partnership investments | (705 | ) | (799 | ) | (3,995 | ) | (3,136 | ) | ||||||||
Other income (loss) | 266 | 363 | 238 | 476 | ||||||||||||
Total non-interest income | 8,936 | 8,463 | 30,084 | 32,487 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 19,279 | 17,308 | 75,384 | 67,469 | ||||||||||||
Service bureau fees | 1,767 | 1,614 | 7,986 | 6,728 | ||||||||||||
Occupancy and equipment | 3,656 | 3,842 | 14,986 | 15,442 | ||||||||||||
Professional fees | 1,024 | 3,037 | 3,917 | 6,317 | ||||||||||||
Marketing and promotions | 778 | 478 | 3,049 | 2,321 | ||||||||||||
FDIC insurance assessments | 773 | 1,041 | 3,573 | 3,692 | ||||||||||||
Core deposit intangible amortization | 385 | 433 | 1,604 | 1,796 | ||||||||||||
Merger related expense | — | 1,575 | — | 1,575 | ||||||||||||
FHLBB prepayment penalties | — | — | 1,454 | — | ||||||||||||
Other | 5,631 | 5,977 | 22,020 | 22,855 | ||||||||||||
Total non-interest expense | 33,293 | 35,305 | 133,973 | 128,195 | ||||||||||||
Income before income taxes | 15,456 | 10,071 | 53,773 | 55,869 | ||||||||||||
Provision for income taxes | 906 | 169 | 4,112 | 6,229 | ||||||||||||
Net income | $ | 14,550 | $ | 9,902 | $ | 49,661 | $ | 49,640 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.20 | $ | 1.00 | $ | 1.01 | ||||||||
Diluted | $ | 0.29 | $ | 0.20 | $ | 0.99 | $ | 1.00 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 50,070,710 | 49,160,925 | 49,731,149 | 48,912,807 | ||||||||||||
Diluted | 50,602,494 | 49,621,935 | 50,089,030 | 49,385,566 | ||||||||||||
F - 1 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||||
Interest and dividend income: | (In thousands) | |||||||||||||||||||
Loans | $ | 45,460 | $ | 45,331 | $ | 43,556 | $ | 45,472 | $ | 41,751 | ||||||||||
Securities-taxable interest | 4,848 | 4,808 | 4,926 | 5,096 | 5,092 | |||||||||||||||
Securities-non-taxable interest | 2,191 | 2,140 | 2,051 | 2,010 | 2,001 | |||||||||||||||
Securities-dividends | 986 | 990 | 1,021 | 923 | 809 | |||||||||||||||
Interest-bearing deposits | 136 | 67 | 67 | 73 | 61 | |||||||||||||||
Total interest and dividend income | 53,621 | 53,336 | 51,621 | 53,574 | 49,714 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 6,649 | 6,279 | 6,382 | 6,266 | 5,799 | |||||||||||||||
Borrowed funds | 3,800 | 4,028 | 3,743 | 3,906 | 3,222 | |||||||||||||||
Total interest expense | 10,449 | 10,307 | 10,125 | 10,172 | 9,021 | |||||||||||||||
Net interest income | 43,172 | 43,029 | 41,496 | 43,402 | 40,693 | |||||||||||||||
Provision for loan losses | 3,359 | 3,766 | 3,624 | 2,688 | 3,780 | |||||||||||||||
Net interest income after provision for loan losses | 39,813 | 39,263 | 37,872 | 40,714 | 36,913 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Service charges and fees | 5,580 | 5,726 | 4,359 | 4,594 | 5,606 | |||||||||||||||
Net gain from sales of securities | 94 | 48 | 367 | 1,452 | 300 | |||||||||||||||
Income from mortgage banking activities | 2,838 | 2,198 | 2,331 | 860 | 1,934 | |||||||||||||||
Bank-owned life insurance income | 863 | 899 | 814 | 818 | 1,059 | |||||||||||||||
Net loss on limited partnership investments | (705 | ) | (850 | ) | (1,504 | ) | (936 | ) | (799 | ) | ||||||||||
Other income (loss) | 266 | (132 | ) | 165 | (61 | ) | 363 | |||||||||||||
Total non-interest income | 8,936 | 7,889 | 6,532 | 6,727 | 8,463 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | 19,279 | 18,301 | 20,013 | 17,791 | 17,308 | |||||||||||||||
Service bureau fees | 1,767 | 1,960 | 2,230 | 2,029 | 1,614 | |||||||||||||||
Occupancy and equipment | 3,656 | 3,580 | 3,850 | 3,900 | 3,842 | |||||||||||||||
Professional fees | 1,024 | 1,125 | 887 | 881 | 3,037 | |||||||||||||||
Marketing and promotions | 778 | 656 | 1,023 | 592 | 478 | |||||||||||||||
FDIC insurance assessments | 773 | 819 | 1,042 | 939 | 1,041 | |||||||||||||||
Core deposit intangible amortization | 385 | 385 | 401 | 433 | 433 | |||||||||||||||
Merger related expense | — | — | — | — | 1,575 | |||||||||||||||
FHLBB prepayment penalties | — | — | — | 1,454 | — | |||||||||||||||
Other | 5,631 | 5,410 | 5,235 | 5,744 | 5,977 | |||||||||||||||
Total non-interest expense | 33,293 | 32,236 | 34,681 | 33,763 | 35,305 | |||||||||||||||
Income before income taxes | 15,456 | 14,916 | 9,723 | 13,678 | 10,071 | |||||||||||||||
Provision for income taxes | 906 | 757 | 665 | 1,784 | 169 | |||||||||||||||
Net income | $ | 14,550 | $ | 14,159 | $ | 9,058 | $ | 11,894 | $ | 9,902 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.28 | $ | 0.18 | $ | 0.24 | $ | 0.20 | ||||||||||
Diluted | $ | 0.29 | $ | 0.28 | $ | 0.18 | $ | 0.24 | $ | 0.20 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 50,070,710 | 49,800,105 | 49,623,472 | 49,423,218 | 49,160,925 | |||||||||||||||
Diluted | 50,602,494 | 50,091,202 | 49,946,639 | 49,652,632 | 49,621,935 | |||||||||||||||
F - 2 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||||
ASSETS | (In thousands) | |||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 47,248 | $ | 51,951 | $ | 54,792 | $ | 46,618 | $ | 47,602 | ||||||||||
Short-term investments | 43,696 | 162,295 | 42,649 | 40,616 | 47,574 | |||||||||||||||
Total cash and cash equivalents | 90,944 | 214,246 | 97,441 | 87,234 | 95,176 | |||||||||||||||
Available for sale securities – At fair value | 1,043,411 | 1,052,439 | 1,073,459 | 1,090,498 | 1,059,169 | |||||||||||||||
Held to maturity securities – At amortized cost | 14,038 | 14,162 | 14,289 | 14,434 | 14,565 | |||||||||||||||
Loans held for sale | 62,517 | 83,321 | 30,558 | 7,560 | 10,136 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||
Owner-occupied | 416,718 | 392,168 | 384,324 | 376,511 | 322,084 | |||||||||||||||
Investor non-owner occupied | 1,705,319 | 1,702,701 | 1,675,821 | 1,648,321 | 1,673,248 | |||||||||||||||
Construction | 98,794 | 90,380 | 107,302 | 128,007 | 129,922 | |||||||||||||||
Total commercial real estate loans | 2,220,831 | 2,185,249 | 2,167,447 | 2,152,839 | 2,125,254 | |||||||||||||||
Commercial business loans | 724,557 | 660,676 | 671,687 | 614,235 | 603,332 | |||||||||||||||
Consumer loans: | ||||||||||||||||||||
Residential real estate | 1,156,227 | 1,129,079 | 1,171,300 | 1,176,357 | 1,179,915 | |||||||||||||||
Home equity | 536,772 | 479,390 | 460,058 | 446,515 | 431,282 | |||||||||||||||
Residential construction | 53,934 | 52,476 | 49,338 | 42,205 | 41,084 | |||||||||||||||
Other consumer | 209,393 | 213,830 | 211,065 | 217,725 | 233,064 | |||||||||||||||
Total consumer loans | 1,956,326 | 1,874,775 | 1,891,761 | 1,882,802 | 1,885,345 | |||||||||||||||
Total loans | 4,901,714 | 4,720,700 | 4,730,895 | 4,649,876 | 4,613,931 | |||||||||||||||
Net deferred loan costs and premiums | 11,636 | 10,214 | 9,403 | 7,612 | 7,018 | |||||||||||||||
Allowance for loan losses | (42,798 | ) | (41,080 | ) | (37,961 | ) | (35,500 | ) | (33,887 | ) | ||||||||||
Loans receivable - net | 4,870,552 | 4,689,834 | 4,702,337 | 4,621,988 | 4,587,062 | |||||||||||||||
Federal Home Loan Bank of Boston stock, at cost | 53,476 | 52,847 | 55,989 | 55,989 | 51,196 | |||||||||||||||
Accrued interest receivable | 18,771 | 17,888 | 16,635 | 16,922 | 15,740 | |||||||||||||||
Deferred tax asset, net | 39,962 | 32,529 | 31,395 | 32,222 | 33,094 | |||||||||||||||
Premises and equipment, net | 51,757 | 52,520 | 53,021 | 53,685 | 54,779 | |||||||||||||||
Goodwill | 115,281 | 115,281 | 115,281 | 115,281 | 115,281 | |||||||||||||||
Core deposit intangible asset | 5,902 | 6,287 | 6,672 | 7,073 | 7,506 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 167,823 | 126,948 | 126,734 | 125,920 | 125,101 | |||||||||||||||
Other assets | 65,086 | 86,553 | 91,273 | 90,438 | 59,736 | |||||||||||||||
Total assets | $ | 6,599,520 | $ | 6,544,855 | $ | 6,415,084 | $ | 6,319,244 | $ | 6,228,541 | ||||||||||
F - 3 | ||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing | $ | 708,050 | $ | 687,865 | $ | 673,624 | $ | 657,144 | $ | 657,718 | ||||||||||
Interest-bearing | 4,003,122 | 4,007,606 | 3,781,717 | 3,876,901 | 3,779,353 | |||||||||||||||
Total deposits | 4,711,172 | 4,695,471 | 4,455,341 | 4,534,045 | 4,437,071 | |||||||||||||||
Mortgagors’ and investor escrow accounts | 13,354 | 9,045 | 14,040 | 9,696 | 13,526 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings | 1,169,619 | 1,102,882 | 1,222,160 | 1,073,034 | 1,099,020 | |||||||||||||||
Accrued expenses and other liabilities | 49,509 | 81,217 | 79,350 | 69,191 | 53,403 | |||||||||||||||
Total liabilities | 5,943,654 | 5,888,615 | 5,770,891 | 5,685,966 | 5,603,020 | |||||||||||||||
Total stockholders’ equity | 655,866 | 656,240 | 644,193 | 633,278 | 625,521 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,599,520 | $ | 6,544,855 | $ | 6,415,084 | $ | 6,319,244 | $ | 6,228,541 | ||||||||||
F - 4 | ||
United Financial Bancorp, Inc. and Subsidiaries
Selected Financial Highlights
(Dollars In Thousands, Except Share Data)
(Unaudited)
At or For the Three Months Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | |||||||||||||||
Share Data: | |||||||||||||||||||
Basic net income per share | $ | 0.29 | $ | 0.28 | $ | 0.18 | $ | 0.24 | $ | 0.20 | |||||||||
Diluted net income per share | 0.29 | 0.28 | 0.18 | 0.24 | 0.20 | ||||||||||||||
Dividends declared per share | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | ||||||||||||||
Key Statistics: | |||||||||||||||||||
Total revenue | $ | 52,108 | $ | 50,918 | $ | 48,028 | $ | 50,129 | $ | 49,156 | |||||||||
Total non-interest expense | 33,293 | 32,236 | 34,681 | 33,763 | 35,305 | ||||||||||||||
Average earning assets | 6,054,346 | 5,984,951 | 5,887,738 | 5,849,517 | 5,575,297 | ||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets (annualized) | 0.90 | % | 0.88 | % | 0.57 | % | 0.76 | % | 0.66 | % | |||||||||
Return on average equity (annualized) | 8.95 | % | 8.80 | % | 5.71 | % | 7.59 | % | 6.35 | % | |||||||||
Tax-equivalent net interest margin (annualized) | 2.96 | % | 2.98 | % | 2.94 | % | 3.09 | % | 3.02 | % | |||||||||
Residential Mortgage Production: | |||||||||||||||||||
Dollar volume (total) | $ | 160,512 | $ | 173,473 | $ | 173,507 | $ | 124,058 | $ | 146,271 | |||||||||
Mortgages originated for purchases | 77,549 | 113,019 | 100,871 | 66,696 | 95,927 | ||||||||||||||
Loans sold | 87,626 | 99,051 | 93,681 | 89,758 | 119,289 | ||||||||||||||
Income from mortgage banking activities | 2,838 | 2,198 | 2,331 | 860 | 1,934 | ||||||||||||||
Non-performing Assets: | |||||||||||||||||||
Residential real estate | $ | 11,357 | $ | 11,526 | $ | 11,729 | $ | 11,725 | $ | 11,193 | |||||||||
Home equity | 4,043 | 3,650 | 3,176 | 3,036 | 2,786 | ||||||||||||||
Investor-owned commercial real estate | 4,016 | 3,746 | 5,618 | 5,297 | 8,565 | ||||||||||||||
Owner-occupied commercial real estate | 2,642 | 2,838 | 3,815 | 3,115 | 2,939 | ||||||||||||||
Construction | 1,701 | 1,879 | 2,103 | 2,114 | 2,808 | ||||||||||||||
Commercial business | 2,000 | 2,016 | 4,364 | 3,979 | 3,898 | ||||||||||||||
Other consumer | 1,000 | 328 | 1,505 | 19 | 2 | ||||||||||||||
Non-accrual loans | 26,759 | 25,983 | 32,310 | 29,285 | 32,191 | ||||||||||||||
Troubled debt restructured – non-accruing | 7,304 | 7,345 | 6,713 | 7,143 | 5,611 | ||||||||||||||
Total non-performing loans | 34,063 | 33,328 | 39,023 | 36,428 | 37,802 | ||||||||||||||
Other real estate owned | 1,890 | 2,792 | 702 | 659 | 755 | ||||||||||||||
Total non-performing assets | $ | 35,953 | $ | 36,120 | $ | 39,725 | $ | 37,087 | $ | 38,557 | |||||||||
Non-performing loans to total loans | 0.69 | % | 0.71 | % | 0.82 | % | 0.78 | % | 0.82 | % | |||||||||
Non-performing assets to total assets | 0.54 | % | 0.55 | % | 0.62 | % | 0.59 | % | 0.62 | % | |||||||||
Allowance for loan losses to non-performing loans | 125.64 | % | 123.26 | % | 97.28 | % | 97.45 | % | 89.64 | % | |||||||||
Allowance for loan losses to total loans | 0.87 | % | 0.87 | % | 0.80 | % | 0.76 | % | 0.73 | % | |||||||||
Non-GAAP Ratios: (1) | |||||||||||||||||||
Non-interest expense to average assets (annualized) | 2.05 | % | 2.00 | % | 2.19 | % | 2.15 | % | 2.37 | % | |||||||||
Efficiency ratio (2) | 60.00 | % | 59.50 | % | 64.54 | % | 61.98 | % | 62.20 | % | |||||||||
Cost of funds (annualized) (3) | 0.73 | % | 0.72 | % | 0.72 | % | 0.73 | % | 0.68 | % | |||||||||
Total revenue growth rate | 2.34 | % | 6.02 | % | (4.19 | )% | 1.98 | % | (0.62 | )% | |||||||||
Total revenue growth rate (annualized) | 9.35 | % | 24.07 | % | (16.77 | )% | 7.92 | % | (2.47 | )% | |||||||||
Average earning asset growth rate | 1.16 | % | 1.65 | % | 0.65 | % | 4.92 | % | 4.55 | % | |||||||||
Average earning asset growth rate (annualized) | 4.64 | % | 6.60 | % | 2.61 | % | 19.67 | % | 18.19 | % | |||||||||
Return on average tangible common equity (annualized) (2) | 11.19 | % | 11.05 | % | 7.28 | % | 9.65 | % | 8.14 | % | |||||||||
Pre-provision net revenue to average assets (2) | 1.31 | % | 1.32 | % | 1.11 | % | 1.21 | % | 1.17 | % | |||||||||
(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-13. |
(3) | The cost of funds ratio represents interest incurred on liabilities as a percentage of average non-interest bearing deposits and interest-bearing liabilities. |
F - 5 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | |||||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,222,680 | $ | 9,907 | 3.24 | % | $ | 1,200,471 | $ | 9,812 | 3.27 | % | |||||||||
Commercial real estate | 2,104,146 | 20,950 | 3.96 | 1,950,133 | 20,501 | 4.17 | |||||||||||||||
Construction | 146,688 | 1,612 | 4.37 | 179,684 | 1,851 | 4.09 | |||||||||||||||
Commercial business | 670,795 | 6,171 | 3.66 | 604,976 | 6,025 | 3.95 | |||||||||||||||
Home equity | 496,379 | 4,846 | 3.91 | 355,479 | 2,990 | 3.36 | |||||||||||||||
Other consumer | 210,473 | 2,551 | 4.85 | 74,131 | 977 | 5.27 | |||||||||||||||
Investment securities | 1,100,280 | 9,234 | 3.36 | 1,129,522 | 9,007 | 3.19 | |||||||||||||||
Other earning assets | 102,905 | 136 | 0.53 | 80,901 | 61 | 0.30 | |||||||||||||||
Total interest-earning assets | 6,054,346 | 55,407 | 3.65 | 5,575,297 | 51,224 | 3.66 | |||||||||||||||
Allowance for loan losses | (42,176 | ) | (31,968 | ) | |||||||||||||||||
Non-interest-earning assets | 478,997 | 422,145 | |||||||||||||||||||
Total assets | $ | 6,491,167 | $ | 5,965,474 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 1,620,899 | $ | 1,597 | 0.39 | % | $ | 1,533,823 | $ | 1,826 | 0.47 | % | |||||||||
Savings | 526,426 | 80 | 0.06 | 517,219 | 71 | 0.05 | |||||||||||||||
Certificates of deposit | 1,869,223 | 4,972 | 1.06 | 1,619,038 | 3,902 | 0.96 | |||||||||||||||
Total interest-bearing deposits | 4,016,548 | 6,649 | 0.66 | 3,670,080 | 5,799 | 0.63 | |||||||||||||||
Federal Home Loan Bank advances | 926,827 | 2,425 | 1.04 | 797,484 | 1,805 | 0.90 | |||||||||||||||
Other borrowings | 122,752 | 1,375 | 4.46 | 163,974 | 1,417 | 3.43 | |||||||||||||||
Total interest-bearing liabilities | 5,066,127 | 10,449 | 0.82 | 4,631,538 | 9,021 | 0.77 | |||||||||||||||
Non-interest-bearing deposits | 691,932 | 637,481 | |||||||||||||||||||
Other liabilities | 82,518 | 72,902 | |||||||||||||||||||
Total liabilities | 5,840,577 | 5,341,921 | |||||||||||||||||||
Stockholders’ equity | 650,590 | 623,553 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,491,167 | $ | 5,965,474 | |||||||||||||||||
Net interest-earning assets | $ | 988,219 | $ | 943,759 | |||||||||||||||||
Tax-equivalent net interest income | 44,958 | 42,203 | |||||||||||||||||||
Tax-equivalent net interest rate spread | 2.83 | % | 2.89 | % | |||||||||||||||||
Tax-equivalent net interest margin | 2.96 | % | 3.02 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 119.51 | % | 120.38 | % | |||||||||||||||||
Less tax-equivalent adjustment | 1,786 | 1,510 | |||||||||||||||||||
Net interest income | $ | 43,172 | $ | 40,693 | |||||||||||||||||
F - 6 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | |||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | |||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Residential real estate | $ | 1,222,680 | $ | 9,907 | 3.24 | % | $ | 1,229,384 | $ | 10,026 | 3.26 | % | ||||||||||
Commercial real estate | 2,104,146 | 20,950 | 3.96 | 2,077,585 | 21,255 | 4.07 | ||||||||||||||||
Construction | 146,688 | 1,612 | 4.37 | 156,217 | 1,563 | 3.98 | ||||||||||||||||
Commercial business | 670,795 | 6,171 | 3.66 | 669,595 | 6,054 | 3.60 | ||||||||||||||||
Home equity | 496,379 | 4,846 | 3.91 | 467,552 | 4,407 | 3.77 | ||||||||||||||||
Other consumer | 210,473 | 2,551 | 4.85 | 209,255 | 2,562 | 4.90 | ||||||||||||||||
Investment securities | 1,100,280 | 9,234 | 3.36 | 1,129,133 | 9,123 | 3.23 | ||||||||||||||||
Other earning assets | 102,905 | 136 | 0.53 | 46,230 | 67 | 0.58 | ||||||||||||||||
Total interest-earning assets | 6,054,346 | 55,407 | 3.65 | 5,984,951 | 55,057 | 3.67 | ||||||||||||||||
Allowance for loan losses | (42,176 | ) | (38,916 | ) | ||||||||||||||||||
Non-interest-earning assets | 478,997 | 491,061 | ||||||||||||||||||||
Total assets | $ | 6,491,167 | $ | 6,437,096 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
NOW and money market | $ | 1,620,899 | $ | 1,597 | 0.39 | % | $ | 1,485,372 | $ | 1,501 | 0.40 | % | ||||||||||
Savings | 526,426 | 80 | 0.06 | 527,225 | 77 | 0.06 | ||||||||||||||||
Certificates of deposit | 1,869,223 | 4,972 | 1.06 | 1,821,061 | 4,701 | 1.03 | ||||||||||||||||
Total interest-bearing deposits | 4,016,548 | 6,649 | 0.66 | 3,833,658 | 6,279 | 0.65 | ||||||||||||||||
Federal Home Loan Bank advances | 926,827 | 2,425 | 1.04 | 1,085,932 | 2,657 | 0.97 | ||||||||||||||||
Other borrowings | 122,752 | 1,375 | 4.46 | 119,902 | 1,371 | 4.55 | ||||||||||||||||
Total interest-bearing liabilities | 5,066,127 | 10,449 | 0.82 | 5,039,492 | 10,307 | 0.81 | ||||||||||||||||
Non-interest-bearing deposits | 691,932 | 662,243 | ||||||||||||||||||||
Other liabilities | 82,518 | 92,095 | ||||||||||||||||||||
Total liabilities | 5,840,577 | 5,793,830 | ||||||||||||||||||||
Stockholders’ equity | 650,590 | 643,266 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,491,167 | $ | 6,437,096 | ||||||||||||||||||
Net interest-earning assets | $ | 988,219 | $ | 945,459 | ||||||||||||||||||
Tax-equivalent net interest income | 44,958 | 44,750 | ||||||||||||||||||||
Tax-equivalent net interest rate spread | 2.83 | % | 2.86 | % | ||||||||||||||||||
Tax-equivalent net interest margin | 2.96 | % | 2.98 | % | ||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 119.51 | % | 118.76 | % | ||||||||||||||||||
Less tax-equivalent adjustment | 1,786 | 1,721 | ||||||||||||||||||||
Net interest income | $ | 43,172 | $ | 43,029 | ||||||||||||||||||
F - 7 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Year Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | |||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Residential real estate | $ | 1,214,681 | $ | 39,658 | 3.26 | % | $ | 1,169,083 | $ | 39,384 | 3.37 | % | ||||||||||
Commercial real estate | 2,055,441 | 84,290 | 4.10 | 1,776,407 | 78,709 | 4.43 | ||||||||||||||||
Construction | 159,677 | 6,854 | 4.29 | 172,257 | 8,264 | 4.80 | ||||||||||||||||
Commercial business | 646,308 | 23,814 | 3.68 | 610,424 | 28,275 | 4.63 | ||||||||||||||||
Home equity | 460,439 | 16,584 | 3.60 | 339,287 | 10,961 | 3.23 | ||||||||||||||||
Other consumer | 216,708 | 10,779 | 4.97 | 22,599 | 1,118 | 4.95 | ||||||||||||||||
Investment securities | 1,128,937 | 36,626 | 3.24 | 1,127,144 | 35,370 | 3.14 | ||||||||||||||||
Other earning assets | 62,367 | 343 | 0.55 | 60,956 | 181 | 0.3 | ||||||||||||||||
Total interest-earning assets | 5,944,558 | 218,948 | 3.68 | 5,278,157 | 202,262 | 3.83 | ||||||||||||||||
Allowance for loan losses | (38,529 | ) | (28,483 | ) | ||||||||||||||||||
Non-interest-earning assets | 479,768 | 444,518 | ||||||||||||||||||||
Total assets | $ | 6,385,797 | $ | 5,694,192 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
NOW and money market | $ | 1,555,194 | $ | 6,547 | 0.42 | % | $ | 1,470,459 | $ | 7,183 | 0.49 | % | ||||||||||
Savings | 527,544 | 309 | 0.06 | 529,659 | 319 | 0.06 | ||||||||||||||||
Certificates of deposit | 1,805,624 | 18,720 | 1.04 | 1,577,739 | 13,940 | 0.88 | ||||||||||||||||
Total interest-bearing deposits | 3,888,362 | 25,576 | 0.66 | 3,577,857 | 21,442 | 0.60 | ||||||||||||||||
Federal Home Loan Bank advances | 988,847 | 9,932 | 1.00 | 664,665 | 4,749 | 0.71 | ||||||||||||||||
Other borrowings | 128,617 | 5,545 | 4.31 | 162,419 | 5,572 | 3.43 | ||||||||||||||||
Total interest-bearing liabilities | 5,005,826 | 41,053 | 0.82 | 4,404,941 | 31,763 | 0.72 | ||||||||||||||||
Non-interest-bearing deposits | 657,829 | 605,112 | ||||||||||||||||||||
Other liabilities | 83,275 | 69,646 | ||||||||||||||||||||
Total liabilities | 5,746,930 | 5,079,699 | ||||||||||||||||||||
Stockholders’ equity | 638,867 | 614,493 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,385,797 | $ | 5,694,192 | ||||||||||||||||||
Net interest-earning assets | $ | 938,732 | $ | 873,216 | ||||||||||||||||||
Tax-equivalent net interest income | 177,895 | 170,499 | ||||||||||||||||||||
Tax-equivalent net interest rate spread | 2.86 | % | 3.11 | % | ||||||||||||||||||
Tax-equivalent net interest margin | 2.99 | % | 3.23 | % | ||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 118.75 | % | 119.82 | % | ||||||||||||||||||
Less tax-equivalent adjustment | 6,796 | 5,917 | ||||||||||||||||||||
Net interest income | $ | 171,099 | $ | 164,582 | ||||||||||||||||||
F - 8 | ||
United Financial Bancorp, Inc. and Subsidiaries
Reconciliation 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 the 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 below and on pages F-9 through F-14 in the following press release tables.
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Net Income (GAAP) | $ | 14,550 | $ | 14,159 | $ | 9,058 | $ | 11,894 | $ | 9,902 | $ | 49,661 | $ | 49,640 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net interest income | (407 | ) | (383 | ) | 35 | (1,900 | ) | (1,617 | ) | (2,655 | ) | (12,653 | ) | |||||||||||||||
Non-interest income | (94 | ) | (118 | ) | (367 | ) | (1,452 | ) | (519 | ) | (2,031 | ) | (1,158 | ) | ||||||||||||||
Non-interest expense | 501 | 447 | 1,814 | 1,893 | 3,586 | 4,655 | 4,770 | |||||||||||||||||||||
Related income tax (benefit) expense | — | 19 | (518 | ) | 511 | (65 | ) | 12 | 3,609 | |||||||||||||||||||
Net adjustment | — | (35 | ) | 964 | (948 | ) | 1,385 | (19 | ) | (5,432 | ) | |||||||||||||||||
Total net income (non-GAAP) | $ | 14,550 | $ | 14,124 | $ | 10,022 | $ | 10,946 | $ | 11,287 | $ | 49,642 | $ | 44,208 | ||||||||||||||
Net interest income (GAAP) | $ | 43,172 | $ | 43,029 | $ | 41,496 | $ | 43,402 | $ | 40,693 | $ | 171,099 | $ | 164,582 | ||||||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||||||||
Impact from purchase accounting fair value marks: | ||||||||||||||||||||||||||||
Accretion of loan mark | 228 | 403 | 835 | (1,094 | ) | (718 | ) | 372 | (7,570 | ) | ||||||||||||||||||
Accretion of deposit mark | (259 | ) | (359 | ) | (359 | ) | (359 | ) | (444 | ) | (1,336 | ) | (3,209 | ) | ||||||||||||||
Accretion of borrowings mark | (376 | ) | (427 | ) | (441 | ) | (447 | ) | (455 | ) | (1,691 | ) | (1,874 | ) | ||||||||||||||
Net adjustment | (407 | ) | (383 | ) | 35 | (1,900 | ) | (1,617 | ) | (2,655 | ) | (12,653 | ) | |||||||||||||||
Total net interest income (non-GAAP) | $ | 42,765 | $ | 42,646 | $ | 41,531 | $ | 41,502 | $ | 39,076 | $ | 168,444 | $ | 151,929 | ||||||||||||||
F - 9 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Non-interest income (GAAP) | $ | 8,936 | $ | 7,889 | $ | 6,532 | $ | 6,727 | $ | 8,463 | $ | 30,084 | $ | 32,487 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net gain on sales of securities | (94 | ) | (48 | ) | (367 | ) | (1,452 | ) | (300 | ) | (1,961 | ) | (939 | ) | ||||||||||||||
BOLI claim benefit | — | (70 | ) | — | — | (219 | ) | (70 | ) | (219 | ) | |||||||||||||||||
Net adjustment | (94 | ) | (118 | ) | (367 | ) | (1,452 | ) | (519 | ) | (2,031 | ) | (1,158 | ) | ||||||||||||||
Total non-interest income (non-GAAP) | 8,842 | 7,771 | 6,165 | 5,275 | 7,944 | 28,053 | 31,329 | |||||||||||||||||||||
Total net interest income (non-GAAP) | 42,765 | 42,646 | 41,531 | 41,502 | 39,076 | 168,444 | 151,929 | |||||||||||||||||||||
Total revenue (non-GAAP) | $ | 51,607 | $ | 50,417 | $ | 47,696 | $ | 46,777 | $ | 47,020 | $ | 196,497 | $ | 183,258 | ||||||||||||||
Non-interest expense (GAAP) | $ | 33,293 | $ | 32,236 | $ | 34,681 | $ | 33,763 | $ | 35,305 | $ | 133,973 | $ | 128,195 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Merger related expense | — | — | — | — | (1,575 | ) | — | (1,575 | ) | |||||||||||||||||||
Core deposit intangible amortization expense | (385 | ) | (385 | ) | (401 | ) | (433 | ) | (433 | ) | (1,604 | ) | (1,796 | ) | ||||||||||||||
Loan portfolio acquisition fees | — | — | — | — | (1,572 | ) | — | (1,572 | ) | |||||||||||||||||||
Effect of position eliminations | (107 | ) | (55 | ) | (1,403 | ) | — | — | (1,565 | ) | — | |||||||||||||||||
Effect of branch lease termination agreement | — | — | — | — | — | — | 195 | |||||||||||||||||||||
Amortization of fixed asset fair value mark | (9 | ) | (7 | ) | (10 | ) | (6 | ) | (6 | ) | (32 | ) | (22 | ) | ||||||||||||||
FHLBB prepayment penalties | — | — | — | (1,454 | ) | — | (1,454 | ) | — | |||||||||||||||||||
Net adjustment | (501 | ) | (447 | ) | (1,814 | ) | (1,893 | ) | (3,586 | ) | (4,655 | ) | (4,770 | ) | ||||||||||||||
Total non-interest expense (non-GAAP) | $ | 32,792 | $ | 31,789 | $ | 32,867 | $ | 31,870 | $ | 31,719 | $ | 129,318 | $ | 123,425 | ||||||||||||||
Total loans | $ | 4,901,714 | $ | 4,720,700 | $ | 4,730,895 | $ | 4,649,876 | $ | 4,613,931 | $ | 4,901,714 | $ | 4,613,931 | ||||||||||||||
Non-covered loans (1) | (744,763 | ) | (721,763 | ) | (1,259,285 | ) | (1,334,303 | ) | (1,448,435 | ) | (744,763 | ) | (1,448,435 | ) | ||||||||||||||
Total covered loans | $ | 4,156,951 | $ | 3,998,937 | $ | 3,471,610 | $ | 3,315,573 | $ | 3,165,496 | $ | 4,156,951 | $ | 3,165,496 | ||||||||||||||
Allowance for loan losses | $ | 42,798 | $ | 41,080 | $ | 37,961 | $ | 35,500 | $ | 33,887 | $ | 42,798 | $ | 33,887 | ||||||||||||||
Allowance for loan losses to total loans | 0.87 | % | 0.87 | % | 0.80 | % | 0.76 | % | 0.73 | % | 0.87 | % | 0.73 | % | ||||||||||||||
Allowance for loan losses to total covered loans | 1.03 | % | 1.03 | % | 1.09 | % | 1.07 | % | 1.07 | % | 1.03 | % | 1.07 | % | ||||||||||||||
Efficiency Ratio: | ||||||||||||||||||||||||||||
Non-Interest Expense (GAAP) | $ | 33,293 | $ | 32,236 | $ | 34,681 | $ | 33,763 | $ | 35,305 | $ | 133,973 | $ | 128,195 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Other real estate owned expense | (100 | ) | (40 | ) | (63 | ) | (35 | ) | (35 | ) | (238 | ) | (237 | ) | ||||||||||||||
Intangible assets amortization | (385 | ) | (385 | ) | (401 | ) | (433 | ) | (433 | ) | (1,604 | ) | (1,796 | ) | ||||||||||||||
F - 10 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Merger related expense | — | — | — | — | (1,575 | ) | — | (1,575 | ) | |||||||||||||||||||
Loan portfolio acquisition fees | — | — | — | — | (1,572 | ) | — | (1,572 | ) | |||||||||||||||||||
Effect of position eliminations | (107 | ) | (55 | ) | (1,403 | ) | — | — | (1,565 | ) | — | |||||||||||||||||
Effect of branch lease termination agreement | — | — | — | — | — | — | 195 | |||||||||||||||||||||
FHLBB prepayment penalties | — | — | — | (1,454 | ) | — | (1,454 | ) | — | |||||||||||||||||||
Non-Interest Expense for Efficiency Ratio (non-GAAP) | $ | 32,701 | $ | 31,756 | $ | 32,814 | $ | 31,841 | $ | 31,690 | $ | 129,112 | $ | 123,210 | ||||||||||||||
Net Interest Income (GAAP) | $ | 43,172 | $ | 43,029 | $ | 41,496 | $ | 43,402 | $ | 40,693 | $ | 171,099 | $ | 164,582 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Tax equivalent adjustment for tax-exempt loans and investment securities | 1,786 | 1,721 | 1,675 | 1,616 | 1,510 | 6,796 | 5,917 | |||||||||||||||||||||
Non-Interest Income (GAAP) | 8,936 | 7,889 | 6,532 | 6,727 | 8,463 | 30,084 | 32,487 | |||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net gain on sales of securities | 94 | 48 | 367 | 1,452 | 300 | 1,961 | 939 | |||||||||||||||||||||
Net loss on limited partnership investments | (705 | ) | (850 | ) | (1,504 | ) | (936 | ) | (799 | ) | (3,995 | ) | (3,136 | ) | ||||||||||||||
BOLI claim benefit | — | 70 | — | — | 219 | 70 | 219 | |||||||||||||||||||||
Total Revenue for Efficiency Ratio (non-GAAP) | $ | 54,505 | $ | 53,371 | $ | 50,840 | $ | 51,229 | $ | 50,946 | $ | 209,943 | $ | 204,964 | ||||||||||||||
Efficiency Ratio (Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) | 60.00 | % | 59.50 | % | 64.54 | % | 62.15 | % | 62.20 | % | 61.50 | % | 60.11 | % | ||||||||||||||
Pre-Provision Net Revenue ("PPNR") to Average Assets (Annualized): | ||||||||||||||||||||||||||||
Net Interest income (GAAP) | $ | 43,172 | $ | 43,029 | $ | 41,496 | $ | 43,402 | $ | 40,693 | $ | 171,099 | $ | 164,582 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Tax equivalent adjustment for tax-exempt loans and investment securities | 1,786 | 1,721 | 1,675 | 1,616 | 1,510 | 6,796 | 5,917 | |||||||||||||||||||||
Total net interest income before provision (A) | $ | 44,958 | $ | 44,750 | $ | 43,171 | $ | 45,018 | $ | 42,203 | $ | 177,895 | $ | 170,499 | ||||||||||||||
F - 11 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Non Interest Income (GAAP) | 8,936 | 7,889 | 6,532 | 6,727 | 8,463 | 30,084 | 32,487 | |||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net gain on sales of securities | (94 | ) | (48 | ) | (367 | ) | (1,452 | ) | (300 | ) | (1,961 | ) | (939 | ) | ||||||||||||||
Net loss on limited partnership investments | 705 | 850 | 1,504 | 936 | 799 | 3,995 | 3,136 | |||||||||||||||||||||
Loss on fixed assets - branch optimization | — | — | — | — | — | — | — | |||||||||||||||||||||
BOLI claim benefit | — | (70 | ) | — | — | (219 | ) | (70 | ) | (219 | ) | |||||||||||||||||
Non-Interest Income for PPNR (non-GAAP) (B) | $ | 9,547 | $ | 8,621 | $ | 7,669 | $ | 6,211 | $ | 8,743 | $ | 32,048 | $ | 34,465 | ||||||||||||||
Non-Interest Expense (GAAP) | $ | 33,293 | $ | 32,236 | $ | 34,681 | $ | 33,763 | $ | 35,305 | $ | 133,973 | $ | 128,195 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Merger related expense | — | — | — | — | (1,575 | ) | — | (1,575 | ) | |||||||||||||||||||
Loan portfolio acquisition fees | — | — | — | — | (1,572 | ) | — | (1,572 | ) | |||||||||||||||||||
Effect of position eliminations | (107 | ) | (55 | ) | (1,403 | ) | — | — | (1,565 | ) | — | |||||||||||||||||
Effect of branch lease termination agreement | — | — | — | — | — | — | 195 | |||||||||||||||||||||
FHLBB prepayment penalties | — | — | — | (1,454 | ) | — | (1,454 | ) | — | |||||||||||||||||||
Non-Interest Expense for PPNR (non-GAAP) (C) | $ | 33,186 | $ | 32,181 | $ | 33,278 | $ | 32,309 | $ | 32,158 | $ | 130,954 | $ | 125,243 | ||||||||||||||
Total PPNR (non-GAAP) (A + B - C) : | $ | 21,319 | $ | 21,190 | $ | 17,562 | $ | 18,920 | $ | 18,788 | $ | 78,989 | $ | 79,721 | ||||||||||||||
Average Assets | 6,491,167 | 6,437,096 | 6,326,441 | 6,286,762 | 5,965,474 | 6,385,797 | 5,694,192 | |||||||||||||||||||||
PPNR to Average Assets (Annualized) | 1.31 | % | 1.32 | % | 1.11 | % | 1.20 | % | 1.26 | % | 1.24 | % | 1.40 | % | ||||||||||||||
F - 12 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Return on Average Tangible Common Equity (Annualized) : | ||||||||||||||||||||||||||||
Net Income (GAAP) | $ | 14,550 | $ | 14,159 | $ | 9,058 | $ | 11,894 | $ | 9,902 | $ | 49,661 | $ | 49,640 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Intangible Assets amortization, tax effected at 35% | 250 | 250 | 261 | 281 | 281 | 1,043 | 1,167 | |||||||||||||||||||||
Net Income excluding intangible assets amortization, tax effected at 35% | $ | 14,800 | $ | 14,409 | $ | 9,319 | $ | 12,175 | $ | 10,183 | $ | 50,704 | $ | 50,807 | ||||||||||||||
Average shareholders' equity (non-GAAP) | $ | 650,590 | $ | 643,266 | $ | 634,375 | $ | 627,060 | $ | 623,553 | $ | 638,867 | $ | 614,493 | ||||||||||||||
Average goodwill & other intangible assets (non-GAAP) | 121,383 | 121,767 | 122,171 | 122,590 | 123,022 | 121,976 | 123,694 | |||||||||||||||||||||
Average tangible common shareholders' equity (non-GAAP) | $ | 529,207 | $ | 521,499 | $ | 512,204 | $ | 504,470 | $ | 500,531 | $ | 516,891 | $ | 490,799 | ||||||||||||||
Return on Average Tangible Common Equity (non-GAAP) | 11.19 | % | 11.05 | % | 7.28 | % | 9.65 | % | 8.14 | % | 9.81 | % | 10.35 | % | ||||||||||||||
(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.
F - 13 | ||
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, 2016 | |||||||||||||||||||||
Non-GAAP (Including Tax Equivalent Adjustment) | Mark to Market | Non-GAAP (Excluding Mark to Market and Tax Equivalents Adjustments) | |||||||||||||||||||
Interest and Dividends | Yield/Cost | Interest and Dividends | Yield/Cost | Interest and Dividends | Yield/Cost | ||||||||||||||||
Residential real estate | $ | 9,907 | 3.24 | % | $ | (232 | ) | (0.09) % | $ | 10,139 | 3.33 | % | |||||||||
Commercial real estate | 20,950 | 3.96 | 335 | 0.07 | 20,615 | 3.89 | |||||||||||||||
Construction | 1,612 | 4.37 | 58 | 0.17 | 1,554 | 4.20 | |||||||||||||||
Commercial business | 6,171 | 3.66 | 363 | 0.24 | 5,808 | 3.42 | |||||||||||||||
Home equity | 4,846 | 3.91 | (249 | ) | (0.25 | ) | 5,095 | 4.16 | |||||||||||||
Other consumer | 2,551 | 4.85 | (503 | ) | (1.05 | ) | 3,054 | 5.90 | |||||||||||||
Certificates of deposit | 4,972 | 1.06 | (259 | ) | (0.05 | ) | 5,231 | 1.11 | |||||||||||||
Federal Home Loan Bank advances | 2,425 | 1.04 | (395 | ) | (0.17 | ) | 2,820 | 1.21 | |||||||||||||
Other borrowings | 1,375 | 4.46 | 19 | 0.13 | 1,356 | 4.33 | |||||||||||||||
Tax-equivalent net interest margin | 44,958 | 2.96 | 407 | 44,551 | 2.94 | ||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||
Non-GAAP (Including Tax Equivalent Adjustment) | Mark to Market | Non-GAAP (Excluding Mark to Market and Tax Equivalents Adjustments) | |||||||||||||||||||
Interest and Dividends | Yield/Cost | Interest and Dividends | Yield/Cost | Interest and Dividends | Yield/Cost | ||||||||||||||||
Residential real estate | $ | 10,026 | 3.26 | % | $ | (483 | ) | (0.18 | ) % | $ | 10,509 | 3.44 | % | ||||||||
Commercial real estate | 21,255 | 4.07 | 545 | 0.12 | 20,710 | 3.95 | |||||||||||||||
Construction | 1,563 | 3.98 | 39 | 0.11 | 1,524 | 3.87 | |||||||||||||||
Commercial business | 6,054 | 3.60 | 329 | 0.22 | 5,725 | 3.38 | |||||||||||||||
Home equity | 4,407 | 3.77 | (293 | ) | (0.30 | ) | 4,700 | 4.07 | |||||||||||||
Other consumer | 2,562 | 4.90 | (540 | ) | (1.14 | ) | 3,102 | 6.04 | |||||||||||||
Certificates of deposit | 4,701 | 1.03 | (359 | ) | (0.08 | ) | 5,060 | 1.11 | |||||||||||||
Federal Home Loan Bank advances | 2,657 | 0.97 | (445 | ) | (0.17 | ) | 3,102 | 1.14 | |||||||||||||
Other borrowings | 1,371 | 4.55 | 18 | 0.12 | 1,353 | 4.43 | |||||||||||||||
Tax-equivalent net interest margin | 44,750 | 2.98 | 383 | 44,367 | 2.96 | ||||||||||||||||
F - 14 | ||