Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - United Financial Bancorp, Inc. | finalexhibit992earningsd.htm |
| 8-K - 8-K - United Financial Bancorp, Inc. | a8-k20181231.htm |
Exhibit 99.1
For Immediate Release: | January 22, 2019 | |
Investor Relations Contact: Marliese L. Shaw Executive Vice President, Investor Relations Officer United Bank 860-291-3622 MShaw@bankatunited.com | Media Relations Contact: Adam J. Jeamel Regional President, Corporate Communications United Bank 860-291-3765 AJeamel@bankatunited.com | |
UNITED FINANCIAL BANCORP, INC. ANNOUNCES
RECORD ANNUAL EARNINGS OF $59.9 MILLION; $1.17 EARNINGS PER SHARE
HARTFORD, Conn., January 22, 2019 – 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, 2018.
The Company reported net income of $12.2 million, or $0.24 per diluted share, for the quarter ended December 31, 2018, compared to net income for the linked quarter of $16.3 million, or $0.32 per diluted share. The Company reported net income of $9.5 million, or $0.19 per diluted share, for the quarter ended December 31, 2017. Net income for the year ended December 31, 2018 was $59.9 million, or $1.17 per diluted share, compared to net income of $54.6 million, or $1.07 per diluted share, for the year ended December 31, 2017.
"In the fourth quarter of 2018, United Financial Bancorp, Inc. delivered annualized linked quarter loan growth of 9% and deposit growth of 12%, while maintaining pristine asset quality and a strong balance sheet," stated William H.W. Crawford, IV, Chief Executive Officer and President of the Company and the Bank. "I would like to thank our United employees for their continued steadfast focus on serving the needs of our customers and communities."
Balance Sheet
Assets totaled $7.36 billion at December 31, 2018, increasing $149.4 million from $7.21 billion at September 30, 2018. At December 31, 2018, total loans were $5.66 billion, representing an increase of $127.9 million, or 2.3%, from the linked quarter. Changes to loan balances during the fourth quarter of 2018 were highlighted by a $40.5 million, or 10.9%, increase in other consumer loans, a $30.2 million, or 2.4%, increase in residential real estate loans, a $25.7 million, or 3.0%, increase in commercial business loans, a $22.2 million, or 1.2%, increase in investor non-owner occupied commercial real estate loans, a $9.3 million, or 11.8%, increase in commercial construction loans, and an $8.5 million, or 2.0%, increase in owner-occupied commercial real estate loans. Slightly offsetting the increased loan balances above was a $12.1 million, or 37.0%, decrease in residential construction loans from the linked quarter. Loans held for sale also decreased $8.2 million, or 9.4%, from the linked quarter. Total cash and cash equivalents increased $19.4 million, or 24.6%, from the linked quarter.
UBNK - United Financial Bancorp, Inc. | Page 1 | www.unitedfinancialinc.com |
Deposits totaled $5.67 billion at December 31, 2018 and increased by $170.2 million, or 3.1%, from $5.50 billion at September 30, 2018. The increase in deposits was positively impacted by the Webster Bank deposit acquisition of $109.4 million that occurred in the beginning of October 2018. Increases in deposit balances during the fourth quarter of 2018 were highlighted by a $121.2 million, or 7.3%, increase in certificates of deposit balances, a $40.6 million, or 5.3%, increase in demand deposit balances, a $17.1 million, or 3.6%, increase in savings deposit balances, and an $11.8 million, or 1.4%, increase in NOW checking account balances. Slightly offsetting these increases was a $20.5 million, or 1.2%, decrease in money market account balances. The growth in the certificate of deposit account balances was attributable to the success of two retail pricing campaigns executed during the fourth quarter.
Total Federal Home Loan Bank advances decreased by $15.7 million, or 1.9%, over the linked quarter as the Company utilized excess cash from deposit growth to pay off maturing advances.
Net Interest Income
Net interest income decreased by $67,000, or 0.1%, on a linked quarter basis, to $48.4 million, primarily attributable to an increase in loan interest income of $2.2 million, or 3.5%, to $63.2 million, offset by an increase in interest expense of $2.1 million, or 9.6%, to $23.9 million. Average interest-earning assets increased by $37.3 million, or 0.6%, on a linked quarter basis, primarily due to growth in average loan balances, which increased by $61.8 million, or 1.1%. Average loan balance growth was driven by a $38.3 million, or 10.9%, increase in average other consumer loans, a $21.7 million, or 1.6%, increase in average residential real estate loans, and a $19.4 million, or 2.3%, increase in average commercial business loans. Slightly offsetting the increases was a $17.6 million, or 0.8%, decrease in average commercial real estate loans.
Interest expense increased by $2.1 million, or 9.6%, to $23.9 million during the fourth quarter of 2018, from $21.8 million in the linked quarter. Average interest-bearing deposit balances increased by $141.5 million, or 3.0%, on a linked quarter basis, primarily driven by a $68.3 million, or 2.7%, increase in average NOW and money market account balances, a $68.0 million, or 4.0%, increase in average certificates of deposits, and a $5.2 million, or 1.0%, increase in average savings account balances. Average non-interest bearing deposits increased by $18.4 million, or 2.5%, as compared to the linked quarter. Average Federal Home Loan Bank of Boston advances decreased by $111.2 million, or 13.2%, as the Company used funds obtained through deposit growth to pay down the maturing advances. The overall growth observed in average account balances is attributable to the continued success of the Company's retail deposit acquisition strategies.
The tax-equivalent net interest margin decreased by two basis points to 2.90% in the fourth quarter of 2018, from 2.92% in the linked period. The decline in the net interest margin was driven by a 14 basis point increase in the cost of interest-bearing liabilities, which was partially offset by a ten basis point increase in the yield of interest-earning assets. The interest-earning asset yield improvement was largely driven by a 33 basis point increase in the yield on commercial business loans, a 25 basis point increase in the yield on home equity loans, an eight basis point increase in the yield on residential real estate loans, and a three basis point increase in the yield on commercial real estate loans. The total cost of funds increased by 12 basis points to 1.48% in the fourth quarter of 2018 driven by a 16 basis point increase in the cost of interest-bearing deposits and a 17 basis point increase in the cost of Federal Home Loan Bank of Boston advances.
UBNK - United Financial Bancorp, Inc. | Page 2 | www.unitedfinancialinc.com |
Provision for Loan Losses
The provision for loan losses totaled $2.6 million for the quarter ended December 31, 2018 as compared to $2.0 million for the linked quarter. Net charge-offs for the quarter ended December 31, 2018 totaled $891,000, or 0.06%, as a percentage of average loans outstanding, as compared to $1.3 million, or 0.09%, as a percentage of average loans for the quarter ended September 30, 2018. Factors considered in the provision for loan losses include, but are not limited to, historical charge-offs, the composition of the portfolio, the current level of non-performing loans and charge-offs, local and national economic and credit conditions, the direction of real estate values and delinquency trends.
Non-Interest Income
Total non-interest income decreased slightly by $62,000, or 0.6%, to $9.5 million for the quarter ended December 31, 2018 from $9.6 million in the linked quarter. The decrease in the fourth quarter's non-interest income was driven primarily by decreases in income from mortgage banking activities and other income. Additionally, there were higher losses on limited partnership investments as compared to the linked quarter, which contributed to the overall decrease in non-interest income. These decreases were offset primarily by an increase in service charges and fees, as well as bank-owned life insurance income.
Non-Interest Expense
Non-interest expense for the quarter ended December 31, 2018 totaled $43.7 million and increased by $4.8 million, or 12.3%, from the linked quarter. The increase in non-interest expense during the quarter was primarily due to increases in salaries and employee benefits, occupancy and equipment, and the core deposit intangible amortization. These increases were primarily offset by decreases in other expenses and FDIC insurance assessment expenses as compared to the linked quarter.
The primary driver of the increase in non-interest expense occurred late in the quarter as the Company shifted its mortgage banking strategy to reflect our customers' preference to conduct business with us over the internet and through our direct sales channel. Consequently, we reduced staffing in our mortgage division, resulting in a $2.2 million severance expense (pre-tax) in the quarter ending December 31, 2018. Other notable increases in the quarter included a change in Company policy related to the carryover of unused vacation days by employees year-over-year, resulting in the Company recording $439,000 of additional expense. The Company also recorded lease impairment expense of $466,000 as a result of branch consolidation. Additionally, the Webster Bank branch acquisition also closed in the fourth quarter, resulting in $371,000 of other expenses related to this transaction.
Asset Quality
Asset quality remained strong and stable for the period, with non-performing assets increasing by $3.0 million to $32.1 million at December 31, 2018 from $29.0 million at September 30, 2018. The ratio of non-performing assets to total assets for the quarter ended December 31, 2018 was 0.44%, as compared to 0.40% in the linked quarter.
UBNK - United Financial Bancorp, Inc. | Page 3 | www.unitedfinancialinc.com |
Capital
The Company reported Tangible Common Equity ("TCE") of $589.7 million, or 8.1% of average assets, for the quarter ended December 31, 2018. Tangible book value per share decreased slightly to $11.54 at December 31, 2018 from $11.55 at September 30, 2018. The decrease was primarily driven by the cash dividend payment to shareholders of $0.12 per share, an increase in intangibles associated with the Webster Bank branch acquisition, and the continued repurchase of Company stock during the quarter, which was slightly offset by the Company's net income of $12.2 million. Book value per share at December 31, 2018 was $13.94, as compared to $13.88 in the linked quarter.
Dividend
The Board of Directors declared a cash dividend on the Company’s common stock of $0.12 per share to shareholders of record at the close of business on February 1, 2019 and payable on February 13, 2019. This dividend equates to a 3.04% annualized yield based on the $15.78 average closing price of the Company’s common stock in the fourth quarter of 2018. The Company has paid dividends for 51 consecutive quarters.
Investor Conference Call
United Financial Bancorp, Inc. will host a conference call on Wednesday, January 23, 2019 at 10:00 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter results. Those wishing to participate in the call may dial toll-free 1-800-544-8281. A telephone replay of the call will be available through February 6, 2019 by calling 1-877-344-7529 and entering conference number 10127439. A podcast will be available on the Company’s website for an extended period of time, as well as on the Company’s investor relations app.
Investor Presentation
United Financial Bancorp, Inc. has prepared and furnished a visual slide presentation to accompany the earnings press release and investor conference call. The presentation has been furnished as an exhibit to the SEC Form 8-K, but is not included in this press release. Copies of the presentation may be accessed on the Company’s investor relations website (www.unitedfinancialinc.com) by selecting “News & Market Data,” then “Presentations;” or via the IRapp and selecting “Presentations;” or directly from SEC EDGAR.
Annual Meeting
The Board of Directors approved May 13, 2019 as the date of the Company's 2019 Annual Meeting of Shareholders (the "Annual Meeting") and set the record date on which the Company's shareholders who will be eligible to vote at the Annual Meeting as the close of business on March 4, 2019.
About United Financial Bancorp, Inc.
United Financial Bancorp, Inc. is the holding company for United Bank, a full service financial services firm offering a complete line of commercial, small business, wealth management and consumer banking products and services to customers throughout Connecticut, Massachusetts and Rhode Island. United Bank is a financially strong, leading New England bank headquartered in Hartford, Connecticut with more than 50 branches in three states. United Financial Bancorp, Inc. trades on the NASDAQ Global Select Stock Exchange under the ticker symbol “UBNK.” At December 31, 2018, the Company had $7.36 billion in assets.
For more information about United Bank’s services and products call (866) 959-BANK or visit www.bankatunited.com. For more information about United Financial Bancorp, Inc., visit
UBNK - United Financial Bancorp, Inc. | Page 4 | www.unitedfinancialinc.com |
www.unitedfinancialinc.com or download the Company’s free Investor Relations app on your Apple or Android device. To download United Financial Bancorp, Inc.'s investor relations app on your iPhone or on your iPad, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit:
https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=725271098&mt=8
or https://play.google.com/store/apps/details?id=com.theirapp.ubnk for your Android mobile device.
Non-GAAP Financial Measures
This document contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures provide supplemental perspectives on operating results, performance trends, and financial condition. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is included on pages F-10 through F-12 in the accompanying financial tables. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector.
Forward Looking Statements
This press release may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.
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, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||
Loans | $ | 63,227 | $ | 52,758 | $ | 237,026 | $ | 200,734 | ||||||||
Securities-taxable interest | 5,705 | 5,643 | 22,994 | 22,550 | ||||||||||||
Securities-non-taxable interest | 2,339 | 2,571 | 9,469 | 9,679 | ||||||||||||
Securities-dividends | 702 | 669 | 2,823 | 2,902 | ||||||||||||
Interest-bearing deposits | 250 | 86 | 726 | 389 | ||||||||||||
Total interest and dividend income | 72,223 | 61,727 | 273,038 | 236,254 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 18,183 | 9,958 | 57,841 | 33,565 | ||||||||||||
Borrowed funds | 5,678 | 4,920 | 23,682 | 18,447 | ||||||||||||
Total interest expense | 23,861 | 14,878 | 81,523 | 52,012 | ||||||||||||
Net interest income | 48,362 | 46,849 | 191,515 | 184,242 | ||||||||||||
Provision for loan losses | 2,618 | 2,250 | 8,914 | 9,396 | ||||||||||||
Net interest income after provision for loan losses | 45,744 | 44,599 | 182,601 | 174,846 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges and fees | 7,447 | 6,031 | 26,771 | 25,374 | ||||||||||||
Net gain from sales of securities | 25 | 72 | 145 | 782 | ||||||||||||
Income from mortgage banking activities | 698 | 1,184 | 4,759 | 5,539 | ||||||||||||
Bank-owned life insurance income | 1,517 | 1,939 | 6,294 | 5,462 | ||||||||||||
Net loss on limited partnership investments | (405 | ) | (1,441 | ) | (2,176 | ) | (3,023 | ) | ||||||||
Other income (loss) | 211 | (204 | ) | 904 | 431 | |||||||||||
Total non-interest income | 9,493 | 7,581 | 36,697 | 34,565 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 25,341 | 20,752 | 91,295 | 80,061 | ||||||||||||
Service bureau fees | 2,309 | 2,304 | 8,901 | 9,263 | ||||||||||||
Occupancy and equipment | 6,384 | 5,036 | 20,488 | 16,902 | ||||||||||||
Professional fees | 1,136 | 996 | 4,418 | 4,305 | ||||||||||||
Marketing and promotions | 1,108 | 1,011 | 4,101 | 4,047 | ||||||||||||
FDIC insurance assessments | 611 | 821 | 2,740 | 3,076 | ||||||||||||
Core deposit intangible amortization | 420 | 336 | 1,350 | 1,411 | ||||||||||||
Other | 6,409 | 5,981 | 24,474 | 23,685 | ||||||||||||
Total non-interest expense | 43,718 | 37,237 | 157,767 | 142,750 | ||||||||||||
Income before income taxes | 11,519 | 14,943 | 61,531 | 66,661 | ||||||||||||
Provision (benefit) for income taxes | (646 | ) | 5,442 | 1,625 | 12,043 | |||||||||||
Net income | $ | 12,165 | $ | 9,501 | $ | 59,906 | $ | 54,618 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.24 | $ | 0.19 | $ | 1.18 | $ | 1.09 | ||||||||
Diluted | $ | 0.24 | $ | 0.19 | $ | 1.17 | $ | 1.07 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 50,613,498 | 50,392,382 | 50,555,212 | 50,283,071 | ||||||||||||
Diluted | 50,970,000 | 51,024,881 | 51,012,239 | 50,922,652 | ||||||||||||
F - 1 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||||||
Loans | $ | 63,227 | $ | 61,061 | $ | 57,958 | $ | 54,780 | $ | 52,758 | ||||||||||
Securities-taxable interest | 5,705 | 5,822 | 5,969 | 5,498 | 5,643 | |||||||||||||||
Securities-non-taxable interest | 2,339 | 2,347 | 2,354 | 2,429 | 2,571 | |||||||||||||||
Securities-dividends | 702 | 748 | 736 | 637 | 669 | |||||||||||||||
Interest-bearing deposits | 250 | 213 | 113 | 150 | 86 | |||||||||||||||
Total interest and dividend income | 72,223 | 70,191 | 67,130 | 63,494 | 61,727 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 18,183 | 15,767 | 12,864 | 11,027 | 9,958 | |||||||||||||||
Borrowed funds | 5,678 | 5,995 | 6,085 | 5,924 | 4,920 | |||||||||||||||
Total interest expense | 23,861 | 21,762 | 18,949 | 16,951 | 14,878 | |||||||||||||||
Net interest income | 48,362 | 48,429 | 48,181 | 46,543 | 46,849 | |||||||||||||||
Provision for loan losses | 2,618 | 2,007 | 2,350 | 1,939 | 2,250 | |||||||||||||||
Net interest income after provision for loan losses | 45,744 | 46,422 | 45,831 | 44,604 | 44,599 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Service charges and fees | 7,447 | 6,623 | 6,542 | 6,159 | 6,031 | |||||||||||||||
Net gain (loss) from sales of securities | 25 | (58 | ) | 62 | 116 | 72 | ||||||||||||||
Income from mortgage banking activities | 698 | 1,486 | 846 | 1,729 | 1,184 | |||||||||||||||
Bank-owned life insurance income | 1,517 | 1,460 | 1,671 | 1,646 | 1,939 | |||||||||||||||
Net loss on limited partnership investments | (405 | ) | (221 | ) | (960 | ) | (590 | ) | (1,441 | ) | ||||||||||
Other income (loss) | 211 | 265 | 199 | 229 | (204 | ) | ||||||||||||||
Total non-interest income | 9,493 | 9,555 | 8,360 | 9,289 | 7,581 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | 25,341 | 22,643 | 22,113 | 21,198 | 20,752 | |||||||||||||||
Service bureau fees | 2,309 | 2,209 | 2,165 | 2,218 | 2,304 | |||||||||||||||
Occupancy and equipment | 6,384 | 4,487 | 4,668 | 4,949 | 5,036 | |||||||||||||||
Professional fees | 1,136 | 1,013 | 1,105 | 1,164 | 996 | |||||||||||||||
Marketing and promotions | 1,108 | 1,119 | 1,189 | 685 | 1,011 | |||||||||||||||
FDIC insurance assessments | 611 | 655 | 735 | 739 | 821 | |||||||||||||||
Core deposit intangible amortization | 420 | 288 | 305 | 337 | 336 | |||||||||||||||
Other | 6,409 | 6,529 | 6,090 | 5,446 | 5,981 | |||||||||||||||
Total non-interest expense | 43,718 | 38,943 | 38,370 | 36,736 | 37,237 | |||||||||||||||
Income before income taxes | 11,519 | 17,034 | 15,821 | 17,157 | 14,943 | |||||||||||||||
Provision (benefit) for income taxes | (646 | ) | 726 | 175 | 1,370 | 5,442 | ||||||||||||||
Net income | $ | 12,165 | $ | 16,308 | $ | 15,646 | $ | 15,787 | $ | 9,501 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.24 | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.19 | ||||||||||
Diluted | $ | 0.24 | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.19 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 50,613,498 | 50,624,832 | 50,504,273 | 50,474,942 | 50,392,382 | |||||||||||||||
Diluted | 50,970,000 | 51,104,776 | 50,974,283 | 50,996,596 | 51,024,881 | |||||||||||||||
F - 2 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||||||
ASSETS | (In thousands) | |||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 36,434 | $ | 48,786 | $ | 62,188 | $ | 45,332 | $ | 56,661 | ||||||||||
Short-term investments | 61,530 | 29,809 | 46,987 | 23,910 | 32,007 | |||||||||||||||
Total cash and cash equivalents | 97,964 | 78,595 | 109,175 | 69,242 | 88,668 | |||||||||||||||
Available for sale securities – At fair value | 973,347 | 972,035 | 1,006,135 | 1,031,277 | 1,050,787 | |||||||||||||||
Held to maturity securities – At amortized cost | — | — | — | — | 13,598 | |||||||||||||||
Loans held for sale | 78,788 | 86,948 | 85,458 | 63,394 | 114,073 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||
Owner-occupied | 443,398 | 434,906 | 418,338 | 442,938 | 445,820 | |||||||||||||||
Investor non-owner occupied | 1,911,070 | 1,888,848 | 1,927,960 | 1,842,898 | 1,854,459 | |||||||||||||||
Construction | 87,493 | 78,235 | 82,883 | 84,717 | 78,083 | |||||||||||||||
Total commercial real estate loans | 2,441,961 | 2,401,989 | 2,429,181 | 2,370,553 | 2,378,362 | |||||||||||||||
Commercial business loans | 886,770 | 861,030 | 841,142 | 846,182 | 840,312 | |||||||||||||||
Consumer loans: | ||||||||||||||||||||
Residential real estate | 1,313,373 | 1,283,126 | 1,252,001 | 1,235,197 | 1,204,401 | |||||||||||||||
Home equity | 583,454 | 579,907 | 588,638 | 582,285 | 583,180 | |||||||||||||||
Residential construction | 20,632 | 32,750 | 32,063 | 37,579 | 40,947 | |||||||||||||||
Other consumer | 410,249 | 369,781 | 332,402 | 310,439 | 292,781 | |||||||||||||||
Total consumer loans | 2,327,708 | 2,265,564 | 2,205,104 | 2,165,500 | 2,121,309 | |||||||||||||||
Total loans | 5,656,439 | 5,528,583 | 5,475,427 | 5,382,235 | 5,339,983 | |||||||||||||||
Net deferred loan costs and premiums | 17,786 | 16,603 | 15,502 | 14,724 | 14,794 | |||||||||||||||
Allowance for loan losses | (51,636 | ) | (49,909 | ) | (49,163 | ) | (47,915 | ) | (47,099 | ) | ||||||||||
Loans receivable - net | 5,622,589 | 5,495,277 | 5,441,766 | 5,349,044 | 5,307,678 | |||||||||||||||
Federal Home Loan Bank of Boston stock, at cost | 41,407 | 42,032 | 46,734 | 49,895 | 50,194 | |||||||||||||||
Accrued interest receivable | 24,823 | 25,485 | 23,209 | 22,333 | 22,332 | |||||||||||||||
Deferred tax asset, net | 32,706 | 31,473 | 30,190 | 28,710 | 25,656 | |||||||||||||||
Premises and equipment, net | 68,657 | 67,612 | 67,614 | 67,619 | 67,508 | |||||||||||||||
Goodwill | 116,769 | 115,281 | 115,281 | 115,281 | 115,281 | |||||||||||||||
Core deposit intangible asset | 6,027 | 3,561 | 3,849 | 4,154 | 4,491 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 193,429 | 181,928 | 180,490 | 179,556 | 148,300 | |||||||||||||||
Other assets | 100,368 | 107,271 | 98,695 | 88,169 | 105,593 | |||||||||||||||
Total assets | $ | 7,356,874 | $ | 7,207,498 | $ | 7,208,596 | $ | 7,068,674 | $ | 7,114,159 | ||||||||||
F - 3 | ||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing | $ | 799,785 | $ | 759,210 | $ | 770,982 | $ | 753,575 | $ | 778,576 | ||||||||||
Interest-bearing | 4,870,814 | 4,741,153 | 4,622,394 | 4,528,935 | 4,419,645 | |||||||||||||||
Total deposits | 5,670,599 | 5,500,363 | 5,393,376 | 5,282,510 | 5,198,221 | |||||||||||||||
Mortgagors’ and investor escrow accounts | 4,685 | 9,597 | 14,526 | 11,096 | 7,545 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings | 899,626 | 926,592 | 1,041,896 | 1,030,735 | 1,165,054 | |||||||||||||||
Accrued expenses and other liabilities | 69,446 | 61,128 | 56,921 | 51,333 | 50,011 | |||||||||||||||
Total liabilities | 6,644,356 | 6,497,680 | 6,506,719 | 6,375,674 | 6,420,831 | |||||||||||||||
Total stockholders’ equity | 712,518 | 709,818 | 701,877 | 693,000 | 693,328 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,356,874 | $ | 7,207,498 | $ | 7,208,596 | $ | 7,068,674 | $ | 7,114,159 | ||||||||||
F - 4 | ||
United Financial Bancorp, Inc. and Subsidiaries
Selected Financial Highlights
(Dollars In Thousands, Except Share Data)
(Unaudited)
At or For the Three Months Ended | |||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||
Share Data: | |||||||||||||||||||
Basic net income per share | $ | 0.24 | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.19 | |||||||||
Diluted net income per share | 0.24 | 0.32 | 0.31 | 0.31 | 0.19 | ||||||||||||||
Dividends declared per share | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | ||||||||||||||
Tangible book value per share | $ | 11.54 | $ | 11.55 | $ | 11.40 | $ | 11.25 | $ | 11.24 | |||||||||
Key Statistics: | |||||||||||||||||||
Total revenue | $ | 57,855 | $ | 57,984 | $ | 56,541 | $ | 55,832 | $ | 54,430 | |||||||||
Total non-interest expense | 43,718 | 38,943 | 38,370 | 36,736 | 37,327 | ||||||||||||||
Average earning assets | 6,708,701 | 6,671,424 | 6,584,938 | 6,568,168 | 6,480,966 | ||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets (annualized) | 0.67 | % | 0.91 | % | 0.88 | % | 0.89 | % | 0.54 | % | |||||||||
Return on average equity (annualized) | 6.89 | % | 9.26 | % | 9.00 | % | 9.15 | % | 5.50 | % | |||||||||
Tax-equivalent net interest margin (annualized) | 2.90 | % | 2.92 | % | 2.97 | % | 2.90 | % | 2.98 | % | |||||||||
Residential Mortgage Production: | |||||||||||||||||||
Dollar volume (total) | $ | 128,209 | $ | 143,673 | $ | 140,409 | $ | 94,433 | $ | 135,522 | |||||||||
Mortgages originated for purchases | 101,266 | 111,555 | 110,351 | 63,193 | 83,181 | ||||||||||||||
Loans sold | 108,663 | 99,372 | 99,637 | 99,899 | 94,738 | ||||||||||||||
Income from mortgage banking activities | 698 | 1,486 | 846 | 1,729 | 1,184 | ||||||||||||||
Non-performing Assets: | |||||||||||||||||||
Residential real estate | $ | 13,217 | $ | 11,949 | $ | 11,221 | $ | 11,663 | $ | 11,824 | |||||||||
Home equity | 4,735 | 4,005 | 4,607 | 4,698 | 4,968 | ||||||||||||||
Investor-owned commercial real estate | 1,131 | 1,525 | 2,400 | 2,863 | 1,821 | ||||||||||||||
Owner-occupied commercial real estate | 2,450 | 1,202 | 2,176 | 2,326 | 1,664 | ||||||||||||||
Construction | 199 | 243 | 250 | 273 | 1,398 | ||||||||||||||
Commercial business | 944 | 985 | 1,196 | 1,579 | 1,477 | ||||||||||||||
Other consumer | 1,030 | 597 | 237 | 34 | 35 | ||||||||||||||
Non-accrual loans | 23,706 | 20,506 | 22,087 | 23,436 | 23,187 | ||||||||||||||
Troubled debt restructured – non-accruing | 6,971 | 6,706 | 7,330 | 8,308 | 8,475 | ||||||||||||||
Total non-performing loans | 30,677 | 27,212 | 29,417 | 31,744 | 31,662 | ||||||||||||||
Other real estate owned | 1,389 | 1,808 | 1,855 | 1,935 | 2,154 | ||||||||||||||
Total non-performing assets | $ | 32,066 | $ | 29,020 | $ | 31,272 | $ | 33,679 | $ | 33,816 | |||||||||
Non-performing loans to total loans | 0.54 | % | 0.49 | % | 0.54 | % | 0.59 | % | 0.59 | % | |||||||||
Non-performing assets to total assets | 0.44 | % | 0.40 | % | 0.43 | % | 0.48 | % | 0.48 | % | |||||||||
Allowance for loan losses to non-performing loans | 168.32 | % | 183.41 | % | 167.12 | % | 150.94 | % | 148.76 | % | |||||||||
Allowance for loan losses to total loans | 0.91 | % | 0.90 | % | 0.90 | % | 0.89 | % | 0.88 | % | |||||||||
Non-GAAP Ratios: (1) | |||||||||||||||||||
Non-interest expense to average assets (annualized) | 2.41 | % | 2.17 | % | 2.16 | % | 2.08 | % | 2.13 | % | |||||||||
Efficiency ratio (2) | 69.18 | % | 65.61 | % | 65.18 | % | 63.97 | % | 63.53 | % | |||||||||
Cost of funds (annualized) (3) | 1.48 | % | 1.36 | % | 1.20 | % | 1.07 | % | 0.96 | % | |||||||||
Total revenue growth rate | (0.22 | )% | 2.55 | % | 1.27 | % | 2.58 | % | (1.38 | )% | |||||||||
Total revenue growth rate (annualized) | (0.89 | )% | 10.21 | % | 5.08 | % | 10.30 | % | (5.54 | )% | |||||||||
Average earning asset growth rate | 0.56 | % | 1.31 | % | 0.26 | % | 1.35 | % | 0.89 | % | |||||||||
Average earning asset growth rate (annualized) | 2.24 | % | 5.25 | % | 1.02 | % | 5.38 | % | 3.56 | % | |||||||||
Return on average tangible common equity (annualized) (2) | 8.55 | % | 11.30 | % | 11.03 | % | 11.25 | % | 6.81 | % | |||||||||
Pre-provision net revenue to average assets (2) | 1.00 | % | 1.12 | % | 1.14 | % | 1.15 | % | 1.19 | % | |||||||||
(1) | Non-GAAP ratios are not financial measurements required by generally accepted accounting principles; however, management believes such information is useful to investors in evaluating Company performance. |
(2) | Calculations of these non-GAAP metrics are provided after the reconciliations of non-GAAP financial measures and appear on page F-10 through page F-12. |
(3) | The cost of funds ratio represents interest incurred on liabilities as a percentage of average non-interest bearing deposits and interest-bearing liabilities. |
F - 5 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | |||||||||||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,397,669 | $ | 12,929 | 3.70 | % | $ | 1,310,352 | $ | 11,343 | 3.47 | % | |||||||||
Commercial real estate | 2,302,741 | 26,085 | 4.43 | 2,234,878 | 23,089 | 4.04 | |||||||||||||||
Construction | 113,617 | 1,405 | 4.84 | 122,151 | 1,453 | 4.66 | |||||||||||||||
Commercial business | 861,311 | 10,481 | 4.76 | 813,457 | 7,994 | 3.85 | |||||||||||||||
Home equity | 585,178 | 7,848 | 5.32 | 569,021 | 6,293 | 4.39 | |||||||||||||||
Other consumer | 390,237 | 4,931 | 5.01 | 278,465 | 3,309 | 4.71 | |||||||||||||||
Investment securities | 967,881 | 8,564 | 3.53 | 1,074,840 | 9,713 | 3.60 | |||||||||||||||
Federal Home Loan Bank stock | 40,428 | 665 | 6.58 | 47,964 | 564 | 4.71 | |||||||||||||||
Other earning assets | 49,639 | 253 | 2.02 | 29,838 | 86 | 1.15 | |||||||||||||||
Total interest-earning assets | 6,708,701 | 73,161 | 4.31 | 6,480,966 | 63,844 | 3.89 | |||||||||||||||
Allowance for loan losses | (50,754 | ) | (46,880 | ) | |||||||||||||||||
Non-interest-earning assets | 586,449 | 542,596 | |||||||||||||||||||
Total assets | $ | 7,244,396 | $ | 6,976,682 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,583,982 | $ | 9,641 | 1.48 | % | $ | 2,125,177 | $ | 4,286 | 0.80 | % | |||||||||
Savings | 506,880 | 76 | 0.06 | 517,993 | 77 | 0.06 | |||||||||||||||
Certificates of deposit | 1,759,382 | 8,466 | 1.91 | 1,765,007 | 5,595 | 1.26 | |||||||||||||||
Total interest-bearing deposits | 4,850,244 | 18,183 | 1.49 | 4,408,177 | 9,958 | 0.90 | |||||||||||||||
Federal Home Loan Bank advances | 732,995 | 4,307 | 2.30 | 954,159 | 3,538 | 1.45 | |||||||||||||||
Other borrowings | 107,365 | 1,371 | 5.00 | 117,578 | 1,382 | 4.60 | |||||||||||||||
Total interest-bearing liabilities | 5,690,604 | 23,861 | 1.66 | 5,479,914 | 14,878 | 1.07 | |||||||||||||||
Non-interest-bearing deposits | 768,916 | 740,007 | |||||||||||||||||||
Other liabilities | 78,752 | 65,757 | |||||||||||||||||||
Total liabilities | 6,538,272 | 6,285,678 | |||||||||||||||||||
Stockholders’ equity | 706,124 | 691,004 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,244,396 | $ | 6,976,682 | |||||||||||||||||
Net interest-earning assets | $ | 1,018,097 | $ | 1,001,052 | |||||||||||||||||
Tax-equivalent net interest income | 49,300 | 48,966 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.65 | % | 2.82 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.90 | % | 2.98 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.89 | % | 118.27 | % | |||||||||||||||||
Less tax-equivalent adjustment | 938 | 2,117 | |||||||||||||||||||
Net interest income | $ | 48,362 | $ | 46,849 | |||||||||||||||||
(1) Tax-equivalent net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.
F - 6 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | |||||||||||||||||||||
December 31, 2018 | September 30, 2018 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,397,669 | $ | 12,929 | 3.70 | % | $ | 1,375,948 | $ | 12,451 | 3.62 | % | |||||||||
Commercial real estate | 2,302,741 | 26,085 | 4.43 | 2,320,375 | 26,105 | 4.40 | |||||||||||||||
Construction | 113,617 | 1,405 | 4.84 | 114,068 | 1,379 | 4.73 | |||||||||||||||
Commercial business | 861,311 | 10,481 | 4.76 | 841,936 | 9,531 | 4.43 | |||||||||||||||
Home equity | 585,178 | 7,848 | 5.32 | 584,706 | 7,471 | 5.07 | |||||||||||||||
Other consumer | 390,237 | 4,931 | 5.01 | 351,892 | 4,532 | 5.11 | |||||||||||||||
Investment securities | 967,881 | 8,564 | 3.53 | 995,405 | 8,686 | 3.48 | |||||||||||||||
Federal Home Loan Bank stock | 40,428 | 665 | 6.58 | 45,016 | 715 | 6.35 | |||||||||||||||
Other earning assets | 49,639 | 253 | 2.02 | 42,078 | 216 | 2.04 | |||||||||||||||
Total interest-earning assets | 6,708,701 | 73,161 | 4.31 | 6,671,424 | 71,086 | 4.21 | |||||||||||||||
Allowance for loan losses | (50,754 | ) | (49,823 | ) | |||||||||||||||||
Non-interest-earning assets | 586,449 | 569,471 | |||||||||||||||||||
Total assets | $ | 7,244,396 | $ | 7,191,072 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,583,982 | $ | 9,641 | 1.48 | % | $ | 2,515,660 | $ | 8,461 | 1.33 | % | |||||||||
Savings | 506,880 | 76 | 0.06 | 501,700 | 75 | 0.06 | |||||||||||||||
Certificates of deposit | 1,759,382 | 8,466 | 1.91 | 1,691,382 | 7,231 | 1.70 | |||||||||||||||
Total interest-bearing deposits | 4,850,244 | 18,183 | 1.49 | 4,708,742 | 15,767 | 1.33 | |||||||||||||||
Federal Home Loan Bank advances | 732,995 | 4,307 | 2.30 | 844,207 | 4,591 | 2.13 | |||||||||||||||
Other borrowings | 107,365 | 1,371 | 5.00 | 111,760 | 1,404 | 4.92 | |||||||||||||||
Total interest-bearing liabilities | 5,690,604 | 23,861 | 1.66 | 5,664,709 | 21,762 | 1.52 | |||||||||||||||
Non-interest-bearing deposits | 768,916 | 750,503 | |||||||||||||||||||
Other liabilities | 78,752 | 71,554 | |||||||||||||||||||
Total liabilities | 6,538,272 | 6,486,766 | |||||||||||||||||||
Stockholders’ equity | 706,124 | 704,306 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,244,396 | $ | 7,191,072 | |||||||||||||||||
Net interest-earning assets | $ | 1,018,097 | $ | 1,006,715 | |||||||||||||||||
Tax-equivalent net interest income | 49,300 | 49,324 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.65 | % | 2.69 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.90 | % | 2.92 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.89 | % | 117.77 | % | |||||||||||||||||
Less tax-equivalent adjustment | 938 | 895 | |||||||||||||||||||
Net interest income | $ | 48,362 | $ | 48,429 | |||||||||||||||||
(1) Tax-equivalent net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.
F - 7 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Years Ended | |||||||||||||||||||||
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,356,746 | $ | 48,905 | 3.60 | % | $ | 1,291,852 | $ | 43,422 | 3.36 | % | |||||||||
Commercial real estate | 2,303,075 | 100,608 | 4.31 | 2,175,197 | 88,716 | 4.02 | |||||||||||||||
Construction | 115,507 | 5,440 | 4.65 | 129,636 | 5,714 | 4.35 | |||||||||||||||
Commercial business | 840,594 | 37,533 | 4.40 | 779,262 | 30,504 | 3.86 | |||||||||||||||
Home equity | 584,204 | 28,903 | 4.95 | 542,579 | 23,168 | 4.27 | |||||||||||||||
Other consumer | 341,295 | 17,326 | 5.08 | 243,631 | 11,890 | 4.88 | |||||||||||||||
Investment securities | 1,005,823 | 34,869 | 3.46 | 1,083,616 | 38,078 | 3.51 | |||||||||||||||
Federal Home Loan Bank stock | 46,475 | 2,689 | 5.78 | 51,735 | 2,195 | 4.24 | |||||||||||||||
Other earning assets | 40,078 | 740 | 1.85 | 34,484 | 389 | 1.13 | |||||||||||||||
Total interest-earning assets | 6,633,797 | 277,013 | 4.15 | 6,331,992 | 244,076 | 3.83 | |||||||||||||||
Allowance for loan losses | (49,255 | ) | (45,480 | ) | |||||||||||||||||
Non-interest-earning assets | 566,511 | 526,914 | |||||||||||||||||||
Total assets | $ | 7,151,053 | $ | 6,813,426 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,377,309 | $ | 29,157 | 1.23 | % | $ | 2,002,146 | $ | 13,282 | 0.66 | % | |||||||||
Savings | 509,316 | 301 | 0.06 | 529,006 | 312 | 0.06 | |||||||||||||||
Certificates of deposit | 1,748,873 | 28,383 | 1.62 | 1,731,434 | 19,971 | 1.15 | |||||||||||||||
Total interest-bearing deposits | 4,635,498 | 57,841 | 1.25 | 4,262,586 | 33,565 | 0.79 | |||||||||||||||
Federal Home Loan Bank advances | 891,626 | 18,135 | 2.01 | 978,673 | 12,763 | 1.29 | |||||||||||||||
Other borrowings | 112,280 | 5,547 | 4.87 | 133,364 | 5,684 | 4.20 | |||||||||||||||
Total interest-bearing liabilities | 5,639,404 | 81,523 | 1.44 | 5,374,623 | 52,012 | 0.96 | |||||||||||||||
Non-interest-bearing deposits | 742,990 | 695,713 | |||||||||||||||||||
Other liabilities | 69,582 | 67,810 | |||||||||||||||||||
Total liabilities | 6,451,976 | 6,138,146 | |||||||||||||||||||
Stockholders’ equity | 699,077 | 675,280 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,151,053 | $ | 6,813,426 | |||||||||||||||||
Net interest-earning assets | $ | 994,393 | $ | 957,369 | |||||||||||||||||
Tax-equivalent net interest income | 195,490 | 192,064 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.71 | % | 2.87 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.92 | % | 3.01 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.63 | % | 117.81 | % | |||||||||||||||||
Less tax-equivalent adjustment | 3,975 | 7,822 | |||||||||||||||||||
Net interest income | $ | 191,515 | $ | 184,242 | |||||||||||||||||
(1) Tax-equivalent net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.
F - 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 current and prospective investors.
The Company believes that disclosing these non-GAAP metrics is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included on pages F-10 through F-12 in the following press release tables:
F - 9 | ||
Three Months Ended | Years Ended | ||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Net Income (GAAP) | $ | 12,165 | $ | 16,308 | $ | 15,646 | $ | 15,787 | $ | 9,501 | $ | 59,906 | $ | 54,618 | |||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||
Non-interest income | (25 | ) | 58 | (271 | ) | (342 | ) | 745 | (580 | ) | 27 | ||||||||||||||||
Non-interest expense | 2,677 | (129 | ) | 215 | — | 536 | 2,763 | 536 | |||||||||||||||||||
Income tax (benefit) expense related to tax reform | (1,717 | ) | — | — | — | 1,609 | (1,717 | ) | 1,609 | ||||||||||||||||||
Related income tax (benefit) expense | (557 | ) | 15 | (93 | ) | 72 | 2,074 | (563 | ) | 2,325 | |||||||||||||||||
Net adjustment | 378 | (56 | ) | (149 | ) | (270 | ) | 4,964 | (97 | ) | 4,497 | ||||||||||||||||
Total net income (non-GAAP) | $ | 12,543 | $ | 16,252 | $ | 15,497 | $ | 15,517 | $ | 14,465 | $ | 59,809 | $ | 59,115 | |||||||||||||
Non-interest income (GAAP) | $ | 9,493 | $ | 9,555 | $ | 8,360 | $ | 9,289 | $ | 7,581 | $ | 36,697 | $ | 34,565 | |||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||
Net loss (gain) on sales of securities | (25 | ) | 58 | (62 | ) | (116 | ) | (72 | ) | (145 | ) | (782 | ) | ||||||||||||||
Limited partnership writedown (1) | — | — | — | — | 1,214 | — | 1,214 | ||||||||||||||||||||
Loss on sale of premises and equipment | — | — | — | — | 401 | — | 401 | ||||||||||||||||||||
BOLI claim benefit | — | — | (209 | ) | (226 | ) | (798 | ) | (435 | ) | (806 | ) | |||||||||||||||
Net adjustment | (25 | ) | 58 | (271 | ) | (342 | ) | 745 | (580 | ) | 27 | ||||||||||||||||
Total non-interest income (non-GAAP) | 9,468 | 9,613 | 8,089 | 8,947 | 8,326 | 36,117 | 34,592 | ||||||||||||||||||||
Total net interest income | 48,362 | 48,429 | 48,181 | 46,543 | 46,849 | 191,515 | 184,242 | ||||||||||||||||||||
Total revenue (non-GAAP) | $ | 57,830 | $ | 58,042 | $ | 56,270 | $ | 55,490 | $ | 55,175 | $ | 227,632 | $ | 218,834 | |||||||||||||
Non-interest expense (GAAP) | $ | 43,718 | $ | 38,943 | $ | 38,370 | $ | 36,736 | $ | 37,237 | $ | 157,767 | $ | 142,750 | |||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||
Lease exit/disposal cost obligation | (466 | ) | 129 | (215 | ) | — | (536 | ) | (552 | ) | (536 | ) | |||||||||||||||
Effect of position eliminations | (2,211 | ) | — | — | — | — | (2,211 | ) | — | ||||||||||||||||||
Net adjustment | (2,677 | ) | 129 | (215 | ) | — | (536 | ) | (2,763 | ) | (536 | ) | |||||||||||||||
Total non-interest expense (non-GAAP) | $ | 41,041 | $ | 39,072 | $ | 38,155 | $ | 36,736 | $ | 36,701 | $ | 155,004 | $ | 142,214 | |||||||||||||
Total loans | $ | 5,656,439 | $ | 5,528,583 | $ | 5,475,427 | $ | 5,382,235 | $ | 5,339,983 | $ | 5,656,439 | $ | 5,339,983 | |||||||||||||
Non-covered loans (2) | (675,112 | ) | (708,621 | ) | (729,947 | ) | (771,802 | ) | (780,776 | ) | (675,112 | ) | (780,776 | ) | |||||||||||||
Total covered loans | $ | 4,981,327 | $ | 4,819,962 | $ | 4,745,480 | $ | 4,610,433 | $ | 4,559,207 | $ | 4,981,327 | $ | 4,559,207 | |||||||||||||
Allowance for loan losses | $ | 51,636 | $ | 49,909 | $ | 49,163 | $ | 47,915 | $ | 47,099 | $ | 51,636 | $ | 47,099 | |||||||||||||
Allowance for loan losses to total loans | 0.91 | % | 0.90 | % | 0.90 | % | 0.89 | % | 0.88 | % | 0.91 | % | 0.88 | % | |||||||||||||
Allowance for loan losses to total covered loans | 1.04 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.03 | % | 1.04 | % | 1.03 | % | |||||||||||||
(2) Represents acquired loans that were recorded at fair value. These loans carry no allowance for loan losses for the periods reflected above.
F - 10 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Efficiency Ratio: | ||||||||||||||||||||||||||||
Non-Interest Expense (GAAP) | $ | 43,718 | $ | 38,943 | $ | 38,370 | $ | 36,736 | $ | 37,237 | $ | 157,767 | $ | 142,750 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Other real estate owned expense | (108 | ) | (256 | ) | (163 | ) | (167 | ) | (157 | ) | (694 | ) | (764 | ) | ||||||||||||||
Lease exit/disposal cost obligation | (466 | ) | 129 | (215 | ) | — | (536 | ) | (552 | ) | (536 | ) | ||||||||||||||||
Effect of position eliminations | (2,211 | ) | — | — | — | — | (2,211 | ) | — | |||||||||||||||||||
Non-Interest Expense for Efficiency Ratio (non-GAAP) | $ | 40,933 | $ | 38,816 | $ | 37,992 | $ | 36,569 | $ | 36,544 | $ | 154,310 | $ | 141,450 | ||||||||||||||
Net Interest Income (GAAP) | $ | 48,362 | $ | 48,429 | $ | 48,181 | $ | 46,543 | $ | 46,849 | $ | 191,515 | $ | 184,242 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Tax-equivalent adjustment for tax-exempt loans and investment securities | 938 | 895 | 1,059 | 1,083 | 2,117 | 3,975 | 7,822 | |||||||||||||||||||||
Non-Interest Income (GAAP) | 9,493 | 9,555 | 8,360 | 9,289 | 7,581 | 36,697 | 34,565 | |||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net (gain) loss on sales of securities | (25 | ) | 58 | (62 | ) | (116 | ) | (72 | ) | (145 | ) | (782 | ) | |||||||||||||||
Net loss on limited partnership investments | 405 | 221 | 960 | 590 | 1,441 | 2,176 | 3,023 | |||||||||||||||||||||
Loss on sale of premises and equipment | — | — | — | — | 401 | — | 401 | |||||||||||||||||||||
BOLI claim benefit | — | — | (209 | ) | (226 | ) | (798 | ) | (435 | ) | (806 | ) | ||||||||||||||||
Total Revenue for Efficiency Ratio (non-GAAP) | $ | 59,173 | $ | 59,158 | $ | 58,289 | $ | 57,163 | $ | 57,519 | $ | 233,783 | $ | 228,465 | ||||||||||||||
Efficiency Ratio (Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) | 69.18 | % | 65.61 | % | 65.18 | % | 63.97 | % | 63.53 | % | 66.01 | % | 61.91 | % | ||||||||||||||
F - 11 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Pre-Provision Net Revenue ("PPNR") to Average Assets (Annualized): | ||||||||||||||||||||||||||||
Net Interest income (GAAP) | $ | 48,362 | $ | 48,429 | $ | 48,181 | $ | 46,543 | $ | 46,849 | $ | 191,515 | $ | 184,242 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Tax-equivalent adjustment for tax-exempt loans and investment securities | 938 | 895 | 1,059 | 1,083 | 2,117 | 3,975 | 7,822 | |||||||||||||||||||||
Total tax-equivalent net interest income (A) | $ | 49,300 | $ | 49,324 | $ | 49,240 | $ | 47,626 | $ | 48,966 | $ | 195,490 | $ | 192,064 | ||||||||||||||
Non Interest Income (GAAP) | 9,493 | 9,555 | 8,360 | 9,289 | 7,581 | 36,697 | 34,565 | |||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net (gain) loss on sales of securities | (25 | ) | 58 | (62 | ) | (116 | ) | (72 | ) | (145 | ) | (782 | ) | |||||||||||||||
Net loss on limited partnership investments | 405 | 221 | 960 | 590 | 1,441 | 2,176 | 3,023 | |||||||||||||||||||||
Loss on sale of premises and equipment | — | — | — | — | 401 | — | 401 | |||||||||||||||||||||
BOLI claim benefit | — | — | (209 | ) | (226 | ) | (798 | ) | (435 | ) | (806 | ) | ||||||||||||||||
Non-Interest Income for PPNR (non-GAAP) (B) | $ | 9,873 | $ | 9,834 | $ | 9,049 | $ | 9,537 | $ | 8,553 | $ | 38,293 | $ | 36,401 | ||||||||||||||
Non-Interest Expense (GAAP) | $ | 43,718 | $ | 38,943 | $ | 38,370 | $ | 36,736 | $ | 37,237 | $ | 157,767 | $ | 142,750 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Lease exit/disposal cost obligation | (466 | ) | 129 | (215 | ) | — | (536 | ) | (552 | ) | (536 | ) | ||||||||||||||||
Effect of position eliminations | (2,211 | ) | — | — | — | — | (2,211 | ) | — | |||||||||||||||||||
Non-Interest Expense for PPNR (non-GAAP) (C) | $ | 41,041 | $ | 39,072 | $ | 38,155 | $ | 36,736 | $ | 36,701 | $ | 155,004 | $ | 142,214 | ||||||||||||||
Total PPNR (non-GAAP) (A + B - C) : | $ | 18,132 | $ | 20,086 | $ | 20,134 | $ | 20,427 | $ | 20,818 | $ | 78,779 | $ | 86,251 | ||||||||||||||
Average Assets | 7,244,396 | 7,191,072 | 7,091,721 | 7,074,721 | 6,976,682 | 7,151,053 | 6,813,426 | |||||||||||||||||||||
PPNR to Average Assets (Annualized) | 1.00 | % | 1.12 | % | 1.14 | % | 1.15 | % | 1.19 | % | 1.10 | % | 1.27 | % | ||||||||||||||
Return on Average Tangible Common Equity (Annualized): | ||||||||||||||||||||||||||||
Net Income (GAAP) | $ | 12,165 | $ | 16,308 | $ | 15,646 | $ | 15,787 | $ | 9,501 | $ | 59,906 | $ | 54,618 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Intangible assets amortization, tax effected (1) | 332 | 228 | 241 | 266 | 219 | 1,067 | 917 | |||||||||||||||||||||
Net Income excluding intangible assets amortization, tax effected (1) | $ | 12,497 | $ | 16,536 | $ | 15,887 | $ | 16,053 | $ | 9,720 | $ | 60,973 | $ | 55,535 | ||||||||||||||
Average stockholders' equity (non-GAAP) | $ | 706,124 | $ | 704,306 | $ | 695,301 | $ | 690,345 | $ | 691,004 | $ | 699,077 | $ | 675,280 | ||||||||||||||
Average goodwill & other intangible assets (non-GAAP) | 121,614 | 119,009 | 119,288 | 119,611 | 119,962 | 119,883 | 120,465 | |||||||||||||||||||||
Average tangible common stockholders' equity (non-GAAP) | $ | 584,510 | $ | 585,297 | $ | 576,013 | $ | 570,734 | $ | 571,042 | $ | 579,194 | $ | 554,815 | ||||||||||||||
Return on Average Tangible Common Equity (non-GAAP) | 8.55 | % | 11.30 | % | 11.03 | % | 11.25 | % | 6.81 | % | 10.53 | % | 10.01 | % | ||||||||||||||
(1) Intangible assets amortization is tax effected at 21% for quarters and year ended 2018, and at 35% for all prior periods due to the Tax Cuts and Jobs Act of 2017 that was signed into law in December 2017, lowering the corporate federal tax rate from 35% to 21%.
F - 12 | ||