United Financial Announces Record Revenue, 20% Increase in Dividend
GLASTONBURY, Conn. — United Financial Bancorp, Inc., the holding company for United Bank, today announced results for the quarter ended March 31. These results represent the third full fiscal quarter as the combined United Financial — the merger of Rockville Financial Inc. (Rockville) and legacy United Financial Bancorp, Inc. (legacy United). The company had net income of $13.0 million, or $0.26 per diluted share, for the quarter ended March 31, 2015, compared to Rockville’s net income of $947,000, or $0.04 per diluted share, for the quarter ended March 31, 2014. Net income for the linked quarter was $1.4 million, or $0.03 per diluted share.
“I am pleased to report that during the first quarter of 2015 United Financial Bancorp Inc. delivered 7% linked quarter revenue growth and a 7% decrease in linked quarter operating expenses, resulting in net income of $0.26 per diluted share. The company reported return on tangible common equity of 10.72%, return on average equity of 8.63%, return on average assets of 0.95%, non-interest expense to average assets of 2.23% and a 63% efficiency ratio. All of these metrics reflect progress toward merger financial targets we outlined in November 2013,” said William H. W. Crawford, IV, Chief Executive Officer of United Financial Bancorp Inc. and United Bank.
“For the balance of 2015 we remain focused on generating high single-digit loan growth, growing fee income and core deposits, while exercising expense discipline to drive non-interest expense to average assets approaching 2.00% by the fourth quarter.” While the first quarter of 2015 commercial loan growth was below plan, he went on, “we have record commercial and robust mortgage loan pipelines. The transformational merger into United Financial Bancorp Inc. has positioned us for solid organic growth with a conservative risk profile and attractive cost structure all fueled by our ability to retain and recruit top talent across our organization. Given all of the above, we are increasing our quarterly dividend by 20% to $0.12 per share from $0.10 per share.” The company reported record quarterly net income of $13.0 million, or $0.26 per diluted share, and return on average assets (ROA) of 0.95% in the first quarter of 2015. Total revenues increased 7%, reaching a record $48.2 million for the quarter ended March 31, 2015. Interest income totaled $48.3 million in the first quarter of 2015 and was flat in comparison to the linked quarter. Earning assets grew organically by $57 million, or 1%, during the quarter, while average interest-earning assets increased by $115 million, or 2%, from the linked quarter.