Company Notebook

United Financial Announces Q1 Earnings, Dividend

GLASTONBURY, Conn. — United Financial Bancorp Inc., the holding company for United Bank, announced results for the quarter ended March 31.
The company had net income of $11.9 million, or $0.24 per diluted share, for the quarter ended March 31, compared to net income for the linked quarter of $9.9 million, or $0.20 per diluted share. Operating net income (non-GAAP) for the first quarter of 2016 was $10.9 million, or $0.22 per diluted share, compared to $11.3 million, or $0.23 per diluted share for the linked quarter. Operating net income is adjusted for purchase accounting impacts and net gain on sale of securities.
Additionally, in the first quarter of 2016, operating income was also adjusted for Federal Home Loan Bank of Boston pre-payment penalties. The company reported net income of $13.0 million, or $0.26 per diluted share, for the quarter ended March 31, 2015.
“In the first quarter of 2016, linked quarter annualized growth included a 13% increase in demand deposits, 9% growth in total deposits, and a seven-basis-point expansion in the net interest margin. Non-interest expense to average assets declined to 2.03% on an operating basis, and asset quality remained excellent. Tangible book value increased by 5% compared to the linked quarter (annualized) as we announced our 40th consecutive dividend payment,” said William Crawford IV, CEO of the company and the bank. “Given the interest-rate environment, we believe execution on the aforementioned key variables gives us the best opportunity to continue building long-term shareholder value.
“While volatile interest rates reduced mortgage-banking income and headline company profitability in the first quarter of 2016, management is focused on growing revenue centered in net interest income and core fee income,” he went on. “I remain bullish on United Financial Bancorp Inc.’s outlook for 2016 earnings and tangible book value growth.”
The report’s financial highlights include return on average assets of 0.76%, return on average equity of 7.59%, a net interest margin increase to 3.09% from 3.02% in the linked quarter, and operating non-interest expense/average assets of 2.03% for the quarter (annualized) balance sheet. Total assets at March 31, 2016 increased by $90.7 million to $6.3 billion from $6.2 billion at Dec. 31, 2015.
At March 31, 2016, total loans were $4.6 billion, representing an increase of $34.9 million from the linked quarter. Despite the typical softness experienced in the first quarter in general, total commercial loans increased by $38.5 million, or 6% annualized. Residential mortgages declined during the first quarter of 2016 by $3.6 million, reflecting the company’s strategy to reduce on-balance sheet exposure to residential mortgage loans.

Balise Kia Dealership Opens in West Springfield

WEST SPRINGFIELD — The new Balise Kia in West Springfield, located on Riverdale Street next to Balise Mazda, opened on April 14. The completely renovated, 15,000-square-foot dealership replaces the Balise-owned Mighty Auto Parts warehouse, which has been relocated to a nearby facility. The new Kia building features a customer-friendly showroom and comfortable waiting area with free WiFi. The dealership also offers a covered service drive-up for customer convenience. Bill Peffer, president and COO of Balise Motor Sales, said he’s excited to welcome a rapidly growing brand to the Balise family. “The addition of Kia, one of the fastest-growing brands in the United States, aligns perfectly with the Balise philosophy of putting the customer first,” he said. “With numerous accolades in the areas of quality, safety, and sustainability, we’re thrilled to continue serving Kia customers throughout Western Massachusetts with a high-quality product.” Construction and renovation of the facility was completed by Associated Builders of South Hadley. This is the first Kia dealership for the Balise group and will be the only Kia Motors America franchise in the Springfield Metro area.

W.D. Cowls, Beacon Communities to Partner on Third Phase of Mill District

NORTH AMHERST — W.D. Cowls Inc. announced the start of phase three of its Mill District development, with a preliminarily agreement with Beacon Communities, a multi-family housing development, management, and investment company based in Boston.
Mollye Lockwood, W.D. Cowls’ vice president for Real Estate and Community Development, initiated a relationship with Beacon Communities for what she expects will be the next phase of the Mill District.
Beacon envisions a development that will feature mixed-income rental housing and first-floor commercial/retail space for lease, all to be located on the south side of Cowls Road, across the street from the Trolley Barn, between Atkins Farms and Cowls Building Supply. The project is still in its initial stages of site due diligence, community engagement, and concept brainstorming.
With the redevelopment of the Mill District, Cowls seeks to bring back community in this less-personally connected Internet age. “So many people today don’t belong to sporting clubs, fraternal organizations, or churches like they used to. Shopping malls and huge grocery emporiums on highways have taken away community interactions that were once naturally organic,” said Lockwood. “The Mill District seeks to bring back community by creating a sense of place through a mixed-use destination, where people live, dine, recreate, buy things better bought at a store rather than on the Internet, and enjoy services such as salons and health clubs.”
For several years, Cowls has been looking for the opportunity to create a mixed-income rental community in the Mill District and has heard from its neighbors and the Amherst community that this much-needed housing would be welcomed.
“I’ve worked with the impressive principals of Beacon Communities in the past,” Lockwood said, “and the town of Amherst has admired this Massachusetts company for stepping forward to protect the town’s affordable-housing inventory by purchasing and soundly managing Rolling Green Apartments.
“We have heard and responded to the wishes of our neighbors,” she added. “Our goal is to create a high-quality community that serves a diverse income range and offers housing options that will appeal to young professionals, young families, and those who are downsizing their homes.”
While Beacon will own and professionally manage all apartments, as it does with all of its properties, the first-floor commercial/retail space will be controlled by Cowls in order to provide and ensure a diverse community gathering space with a balanced mix of restaurants, shops, and services.