United Financial Bancorp Announces Fourth-quarter Results

GLASTONBURY, Conn. — United Financial Bancorp Inc., the holding company for United Bank, announced results for the quarter and year ended Dec. 31, 2014.

These results represent the second full fiscal quarter as the combined United Financial (merger of Rockville Financial Inc. and legacy United Financial Bancorp Inc.). Rockville was the legal acquirer in the merger of equals with legacy United in a transaction that closed on April 30, 2014, and Rockville changed its name to United Financial Bancorp Inc. at that time.

The company had net income of $1.4 million, or $0.03 per diluted share, for the quarter ended Dec. 31, 2014, compared to Rockville’s net income of $1.8 million, or $0.07 per diluted share, for the quarter ended Dec. 31, 2013.

Operating net income for the fourth quarter of 2014 was $8.3 million (non-GAAP), or $0.16 per diluted share, adjusted for $10.6 million (pre-tax) of expenses related to the merger, $3.4 million (pre-tax) net positive impact of the amortization and accretion of the purchase accounting adjustments (or fair value adjustments) as a result of the merger, $2.6 million (pre-tax) net adjustment for the company’s announced branch-optimization program, and $59,000 (pre-tax) net loss on sales of securities.

Operating net income for the quarter ended Sept. 30, 2014 was $10.4 million (non-GAAP), or $0.20 per diluted share, adjusted for $4.5 million (pre-tax) of expenses related to the merger, $3.8 million (pre-tax) net positive impact of the amortization and accretion of the purchase accounting adjustments (or fair value adjustments) as a result of the merger, and $430,000 (pre-tax) net gains on sales of securities.

Operating net income for the prior-year period was $3.3 million (non-GAAP), or $0.13 per diluted share, adjusted for $2.1 million (pre-tax) of expenses related to the merger. Net income for the year ended Dec. 31, 2014 was $6.8 million, or $0.16 per diluted share, and declined from $14.2 million or $0.54 per diluted share for the year ended Dec. 31, 2013.

Operating net income of $26.7 million (non-GAAP), or $0.62 per diluted share for the year ended Dec. 31, 2014 increased from $16.3 million or $0.62 per diluted share for the year ended Dec. 31, 2013. Adjustments to operating net income from GAAP net income are largely related to the merger with legacy United and are itemized in the reconciliation of non-GAAP measures.

“As we close the books on 2014, I am pleased to announce that we reported impressive organic loan growth, successfully completed the conversion to one core operating system, and have materially achieved the company’s objectives related to eliminating redundant expenses by the end of the fourth quarter,” said William Crawford IV, CEO of United Financial Bancorp Inc. and United Bank. “Looking forward to 2015, the operational environment will be challenging; however, I am confident that our strategy to reduce expenses and improve efficiency will enhance long-term shareholder value while maintaining superior service for our customers.”