United Financial Announces Q1 Earnings, Dividend
GLASTONBURY, Conn. — United Financial Bancorp Inc., the holding company for United Bank (the “Bank”), announced results for the quarter ended March 31, 2017. The company reported net income of $13.7 million, or $0.27 per diluted share, for the quarter ended March 31, 2017, compared to net income for the linked quarter of $14.6 million, or $0.29 per diluted share. The company reported net income of $11.9 million, or $0.24 per diluted share, for the quarter ended March 31, 2016.
“Over the last three consecutive quarters, United Financial Bancorp Inc. has averaged a return on average assets (ROA) of 0.87% and a return on average tangible common equity (ROTCE) of 10.89%, as the company continues to make progress on its four key objectives communicated in April 2016,” said William H.W. Crawford, IV, CEO of the company and the bank. “I want to thank our dedicated employees, executives, and board of directors for their relentless focus on making United Bank a better bank for our customers and communities each day.”
Assets totaled $6.70 billion at March 31, 2017 and increased $97.1 million, or 1.5%, from $6.60 billion at Dec. 31, 2016. At March 31, 2017, total loans were $4.94 billion, representing an increase of $42.3 million, or 0.9%, from the linked quarter. Changes to loan balances during the first quarter of 2017 were highlighted by a $44.6 million, or 6.2%, increase in commercial business loans and a $16.6 million, or 4.0%, increase in owner-occupied commercial real estate loans. Total residential mortgages increased during the first quarter of 2017 by $11.2 million, or 1.0%. Total cash and cash equivalents decreased $6.3 million, or 6.9%, during the linked quarter, while the available for sale securities portfolio increased by $32.3 million, or 3.1%.
Deposits totaled $4.79 billion at March 31, 2017 and increased by $79.2 million, or 1.7%, from $4.71 billion at December 31, 2016. In the first quarter of 2017, money market deposit accounts increased $157.2 million, or 12.9%, and NOW checking deposits increased $39.2 million, or 7.9%, from the linked quarter, reflective of a seasonal increase in municipal deposits and successful new account acquisition. These increases were offset by a $110.1 million, or 6.3%, decrease in certificates of deposit, some of which migrated to money market deposit accounts.
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 April 28, 2017 and payable on May 10, 2017. This dividend equates to a 2.73% annualized yield based on the $17.58 average closing price of the company’s common stock in the first quarter of 2017. The company has paid dividends for 44 consecutive quarters.