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United Financial Bancorp Inc. 
Announces Fourth-quarter Results

HARTFORD, Conn. — United Financial Bancorp, Inc., the holding company for United Bank, announced results for the quarter ended Dec. 31, 2017.

The company reported net income of $9.5 million, or $0.19 per diluted share, for the quarter ended Dec. 31, 2017, compared to net income for the linked quarter of $15.2 million, or $0.30 per diluted share. The company reported net income of $14.6 million, or $0.29 per diluted share, for the quarter ended Dec. 31, 2016. Net income for the year ended Dec. 31, 2017 was $54.6 million, or $1.07 per diluted share, compared to net income of $49.7 million, or $0.99 per diluted share, for the year ended Dec. 31, 2016.

On Dec. 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017, which, among other things, lowered the corporate tax rate from 35% to 21%. Companies must recognize the effect of tax-law changes in the period of enactment under the generally accepted accounting principles. This tax reform resulted in a $2.8 million negative net-income impact in the fourth quarter of 2017. Of the $2.8 million impact, $1.6 million flowed directly through the provision for income taxes, and was primarily related to a re-measurement of the company’s deferred tax asset.

Additionally, there was a $1.2 million pre-tax adjustment related to the write-down of legacy United limited partnerships due to the aforementioned tax reform. Other significant events during the quarter included the company surrendering $32.8 million of under-performing bank-owned life insurance policy value, resulting in a $2.4 million negative impact to the provision for income taxes. The company subsequently reinvested $30 million into higher-yielding product in early January 2018.

“The United Bank team delivered strong loan and non-interest bearing deposit growth in the fourth quarter of 2017. Asset quality, capital, and liquidity remained strong and stable,” said William Crawford IV, CEO and President of the ompany and the bank. “I want to thank our United Bank teammates for their steadfast focus on serving our customers and communities.”

Assets totaled $7.11 billion at Dec. 31, 2017 and increased $137.7 million, or 2%, from $6.98 billion at Sept. 30, 2017. At Dec. 31, 2017, total loans were $5.34 billion, representing an increase of $134.2 million, or 2.6%, from the linked quarter. Changes to loan balances during the fourth quarter of 2017 were highlighted by a $76.7 million, or 4.3%, increase in investor non-owner occupied commercial real-estate loans; a $24.9 million, or 9.3%, increase in other consumer loans; a $21.4 million, or 3.8%, increase in home-equity loans; and a $18.9 million, or 2.3%, increase in commercial business loans. Loans held for sale increased $24.7 million, or 27.6%, from the linked quarter, as the company increased the held-for-sale portfolio for delivery to third-party investors at the end of the quarter. Total cash and cash equivalents decreased $9.8 million, or 10%, from the linked quarter.

Deposits totaled $5.2 billion at Dec. 31, 2017 and increased by $45.2 million, or 0.9%, from $5.15 billion at Sept. 30, 2017. Increases in deposit balances during the fourth quarter of 2017 were highlighted by a $53.4 million, or 7.4%, increase in non-interest-bearing checking deposits, as well as a $77.3 million, or 4.5%, increase in certificates of deposit. Offsetting these increases was a $75.5 million, or 3.4%, decline in NOW checking and money-market deposits, largely due to seasonal withdrawals in municipal funds that are experienced during the fourth quarter.

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