United Financial Bancorp Posts Solid Third Quarter

GLASTONBURY, Conn. — United Financial Bancorp Inc., the holding company for United Bank, announced results for the quarter ended Sept. 30, 2014.

These results represent the first full fiscal quarter as the combined United Financial (merger of legacy 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 $10 million, or $0.19 per diluted share, for the quarter ended Sept. 30, compared to Rockville’s net income of $4.6 million, or $0.18 per diluted share, for the quarter ended Sept. 30, 2013.

Operating net income for the third quarter of 2014 was $10.5 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 quarter ending June 30 was $5.8 million (non-GAAP), or $0.13 per diluted share, adjusted for $21.3 million (pre-tax) of expenses related to the merger, $4.9 million (pre-tax) net impact of the amortization and accretion of the purchase accounting adjustments (or fair-value adjustments) as a result of the merger, and $589,000 (pre-tax) net gains on sales of securities.

Operating net income for the third quarter of 2013 was $4.6 million (non-GAAP), or $0.18 per diluted share, adjusted for income of $29,000 (pre-tax) from net gains on sales of securities.

“I am pleased to announce that, during United Financial Bancorp, Inc.’s first full quarter as a merged entity, the company reported strong organic earning asset growth, highlighted by 10% annualized commercial loan growth and record residential mortgage loan production, while maintaining superior asset quality,” stated William Crawford IV, CEO of United Financial Bancorp Inc. and United Bank. “While this is a difficult operating environment for banks, the company will continue its strategy of organic growth and commitment to enhancement of long-term shareholder value through operational and capital efficiency.”

Other financial highlights:
• Third-quarter net income of $10.0 million, or $0.19 per diluted share, and operating net income of $10.5 million, or $0.20 per diluted share;
• A 12% increase in operating revenue, compared to linked quarter;
• A 22% increase in operating expense, compared to linked quarter;
• A 3.56% GAAP tax-equivalent net-interest margin, compared to 3.86% in the linked quarter. On an operating basis, the third-quarter tax-equivalent net-interest margin was 3.23%, compared to 3.34% in the linked quarter; and
• Operating non-interest expense/average assets decreased to 2.32% from 2.38% in the linked quarter.