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United Financial Bancorp, Inc. Announces Second Quarter Results and Quarterly Dividend

July 16, 2019

HARTFORD, Conn., July 16, 2019 (GLOBE NEWSWIRE) -- United Financial Bancorp, Inc. (“United Financial” or the “Company”) (NASDAQ Global Select Stock Market: “UBNK”), the holding company for United Bank (the “Bank”), announced results for the quarter ended June 30, 2019.

The Company reported a net loss of $3.2 million, or $0.06 per diluted share, for the quarter ended June 30, 2019, compared to net income for the quarter ended March 31, 2019 (“linked quarter”) of $12.7 million, or $0.25 per diluted share. The net loss for the current quarter was primarily due to an impairment charge recorded on the Company’s investments in D.C. Solar LLCs of $6.3 million (after tax) and the related establishment of an additional tax reserve of $8.7 million during the three months ended June 30, 2019. The Company reported net income of $15.6 million, or $0.31 per diluted share, for the quarter ended June 30, 2018.

On July 15, 2019, United Financial and People’s United Financial, Inc. announced the signing of a definitive agreement and plan of merger pursuant to which United Financial will merge with and into People’s United Financial, Inc., with People’s United Financial, Inc. surviving the merger, in an all stock transaction valued at approximately $759.0 million as of July 15, 2019. Subject to the satisfaction or waiver of customary closing conditions, including the approval of the merger agreement by United Financial shareholders and the receipt of required regulatory approvals, United Financial and People’s United Financial, Inc. expect that the merger will be completed during the fourth quarter of 2019.

Balance Sheet

Assets totaled $7.34 billion at both June 30, 2019 and March 31, 2019. At June 30, 2019, total available for sale securities were $840.5 million, representing a decrease of $8.0 million, or 0.9%, from the linked quarter. The overall decrease was primarily due to sales of lower yielding, higher risk weighted securities, offset by purchases of various mortgage-backed securities and corporate bonds. At June 30, 2019, total loans were $5.76 billion, representing an increase of $23.6 million, or 0.4%, from the linked quarter. Changes to loan balances during the second quarter of 2019 were highlighted by a $39.0 million, or 2.0%, increase in investor non-owner occupied commercial real estate loans, a $20.3 million, or 4.6%, increase in owner-occupied commercial real estate loans and a $13.6 million, or 3.2%, increase in other consumer loans. Slightly offsetting the increased loan balances above were a $16.2 million, or 1.2%, decrease in residential real estate loans, a $14.6 million, or 15.4%, decrease in commercial construction loans, a $9.7 million, or 1.1%, decrease in commercial business loans, a $7.7 million, or 1.3%, decrease in home equity loans and a $1.1 million, or 7.9%, decrease in residential construction loans from the linked quarter. Loans held for sale increased $22.6 million, or 140.0%, from the linked quarter due to a change in pipeline delivery terms. Total cash and cash equivalents decreased $40.4 million, or 26.1%, from the linked quarter as the Company utilized excess cash to pay off maturing Federal Home Loan Bank advances.

Deposits totaled $5.73 billion at June 30, 2019 and increased by $62.3 million, or 1.1%, from $5.66 billion at March 31, 2019. Increases in deposit balances during the second quarter of 2019 were primarily due to a $66.0 million, or 8.5%, increase in non-interest bearing checking deposits and a $40.6 million, or 2.5%, increase in money market account balances, largely due to seasonal inflows that are typical of commercial DDA accounts in the second quarter. Offsetting these increases was a $22.9 million, or 2.5%, decrease in NOW checking account balances, a $12.4 million, or 2.5%, decrease in regular savings accounts and a $9.3 million, or 0.5%, decrease in certificates of deposit balances.

Total Federal Home Loan Bank advances decreased by $85.2 million, or 11.6%, over the linked quarter as the Company utilized excess cash generated from proceeds from sales of investment securities to pay off maturing advances as noted above.

Investment in D.C. Solar Tax-Advantaged Funds

The Company continues to monitor developments in its investments in Solar Eclipse Investment Fund X, LLC, Solar Eclipse Investment Fund XV, LLC, and Solar Eclipse Investment Fund XXII, LLC (“LLC investments”), all of which are borrowers of and lessees to D.C. Solar Solutions, Inc. and D.C. Solar Distribution, Inc., respectively. In late January and early February, 2019, D.C Solar Solutions, Inc., D.C. Solar Distribution, Inc. and several affiliated companies filed for Chapter 11 bankruptcy. On March 22, 2019, all cases were converted to cases under Chapter 7 of the Bankruptcy Code.

During the three months ended June 30, 2019, the Company recorded an impairment charge to the investment in the LLCs of $6.3 million (after tax) and an additional tax reserve of $8.7 million to reflect the loss and the associated uncertain tax positions. The net impact to net income for the three months ended June 30, 2019 was $15.0 million. At this time, no additional measurable loss has been identified, but the Company believes an additional loss is more likely than not. Given the facts and circumstances that we are aware of at the time of the filing of this release, the Company does not believe a full loss or total tax benefit reversal to be likely.

Net Interest Income

Net interest income increased by $73,000, or 0.2%, on a linked quarter basis, to $47.0 million, primarily attributable to an increase in interest and dividend income of $191,000, or 0.3%, to $73.4 million being partially offset by an increase in interest expense of $118,000, or 0.4%, to $26.4 million. Average interest-earning assets decreased by $77.4 million, or 1.1%, on a linked quarter basis, primarily due to a decrease in average investment balances, which decreased by $120.1 million, or 12.4%, as the result of a deleveraging strategy executed at the end of March. This decrease was offset by average loan balance growth, which was driven by a $28.5 million, or 3.2%, increase in average commercial business loans, a $20.4 million, or 0.9%, increase in average commercial real estate loans and a $15.9 million, or 3.8%, increase in average other consumer loans. Slightly offsetting the increases was a $29.3 million, or 2.1%, decrease in average residential real estate loans, a $6.1 million, or 1.1%, decrease in average home equity loans and a $5.4 million, or 4.9%, decrease in average construction loans.

Interest expense increased by $118,000, or 0.4%, to $26.4 million during the second quarter of 2019, from $26.3 million in the linked quarter. Average interest-bearing deposit balances decreased by $39.5 million, or 0.8%, on a linked quarter basis, primarily driven by a $50.4 million, or 2.0%, decrease in average NOW and money market account balances, slightly offset by a $6.9 million, or 0.4%, increase in average certificates of deposit and a $4.0 million, or 0.8%, increase in average savings account balances. Average non-interest bearing deposits increased by $51.2 million, or 6.9%, as compared to the linked quarter. Average Federal Home Loan Bank advances decreased by $106.8 million, or 13.3%.

The tax-equivalent net interest margin increased by 1 basis point to 2.82% in the second quarter of 2019, from 2.81% in the linked period. The increase in the tax-equivalent net interest margin was driven by a 2 basis point increase in the yield of interest-earning assets slightly offset by a 3 basis point increase in the cost of interest-bearing liabilities. The interest-earning asset yield improvement was largely driven by an 18 basis point increase in the yield on commercial business loans, a 6 basis point increase in the yield on construction loans and a 6 basis point increase in the yield on other consumer loans. These increases were offset by a 7 basis point decrease in the yield on home equity loans, a 6 basis point decrease in the yield on commercial real estate loans and a 2 basis point decrease in the yield on residential real estate loans. In addition, there was a 3 basis point increase in the yield of the investment portfolio. The total cost of funds increased by 3 basis points to 1.64% in the second quarter of 2019 driven by a 5 basis point increase in the cost of interest-bearing deposits and a 7 basis point increase in the cost of Federal Home Loan Bank advances.

Provision for Loan Losses

The provision for loan losses totaled $2.5 million for the quarter ended June 30, 2019 as compared to $2.0 million for the linked quarter. Net charge-offs for the quarter ended June 30, 2019 totaled $1.3 million, or 0.09%, as a percentage of average loans outstanding, as compared to $1.6 million, or 0.11%, as a percentage of average loans for the quarter ended March 31, 2019. Factors considered in the provision for loan losses include, but are not limited to, historical charge-offs, the composition of the portfolio, the current level of non-performing loans and charge-offs, local and national economic and credit conditions, the direction of real estate values and delinquency trends.

Non-Interest Income

Total non-interest income decreased by $8.1 million, or 90.6%, to $840,000 for the quarter ended June 30, 2019 from $9.0 million in the linked quarter. The decrease in the second quarter’s non-interest income was driven primarily by a change of $7.3 million in net loss on limited partnership investments as compared to the linked quarter, due mainly to the $7.8 million impairment charge on the D.C. Solar LLC investments discussed above, a $1.0 million, or 169.4%, decrease in income from mortgage banking activities, a decrease of $600,000, or 81.4%, in net gain from sales of securities and a decrease of $425,000, or 21.8%, in bank-owned life insurance income as compared to the linked quarter. These decreases were slightly offset by an increase of $1.4 million, or 21.9%, in service charges and fee income primarily resulting from higher swap fee income as compared to the linked quarter.

Non-Interest Expense

Non-interest expense for the quarter ended June 30, 2019 totaled $39.5 million and increased by $270,000, or 0.7%, from the linked quarter. The increase in non-interest expense during the quarter was driven by a $1.1 million, or 86.70%, increase in professional fees largely due to legal expenses pertaining to the proposed acquisition by People’s United Financial, Inc. and D.C. Solar, offset by a $279,000, or 1.3%, decrease in salaries and employee benefits expense and a $429,000, or 7.7%, decrease in occupancy and equipment expense as compared to the linked quarter.

Provision for Income TaxesThe provision for income taxes was $9.2 million for the quarter ended June 30, 2019 as compared to $2 million in the linked quarter. The effective tax rate was 154.9% at June 30, 2019 as compared to 13.8% at March 31, 2019. The effective tax rate is higher compared to the linked quarter due to the recognition of uncertain tax positions of $8.7 million associated with D.C. Solar as discussed above.

Asset Quality

Asset quality remained strong and stable for the period, with non-performing assets increasing by $1.4 million to $32.0 million at June 30, 2019 from $30.6 million at March 31, 2019. The ratio of non-performing assets to total assets for the quarter ended June 30, 2019 was 0.44%, as compared to 0.42% in the linked quarter.

Capital

The Company reported Tangible Common Equity (“TCE”) of $598.1 million, or 8.2% of average assets, for the quarter ended June 30, 2019. Tangible book value per share decreased to $11.71 at June 30, 2019 from $11.78 at March 31, 2019. The decrease was primarily driven by the impact of the Company’s net loss of $3.2 million and the cash dividend payment to shareholders of $0.12 per share during the quarter, offset by an increase in accumulated other comprehensive income as a result of an increase in the market value of the Company’s investment portfolio as compared to the previous quarter. Book value per share at June 30, 2019 was $14.09, as compared to $14.17 in the linked quarter.

Dividend

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 July 26, 2019 and payable on August 7, 2019. This dividend equates to a 3.51% annualized yield based on the $13.68 average closing price of the Company’s common stock in the second quarter of 2019. The Company has paid dividends for 53 consecutive quarters.

About United Financial Bancorp, Inc.

United Financial Bancorp, Inc. is the holding company for United Bank, a full service financial services firm offering a complete line of commercial, small business, wealth management and consumer banking products and services to customers throughout Connecticut, Massachusetts and Rhode Island. United Bank is a financially strong, leading New England bank headquartered in Hartford, Connecticut with more than 50 branches in three states. United Financial Bancorp, Inc. trades on the NASDAQ Global Select Stock Exchange under the ticker symbol “UBNK.” At June 30, 2019, the Company had $7.34 billion in assets.

For more information about United Bank’s services and products call (866) 959-BANK or visit www.bankatunited.com. For more information about United Financial Bancorp, Inc., visit www.unitedfinancialinc.com or download the Company’s free Investor Relations app on your Apple or Android device. To download United Financial Bancorp, Inc.’s investor relations app on your iPhone or on your iPad, which offers access to SEC documents, press releases, videos, audiocasts and more, please visit: https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=725271098&mt=8 or https://play.google.com/store/apps/details?id=com.theirapp.ubnk for your Android mobile device.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures provide supplemental perspectives on operating results, performance trends, and financial condition. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is included on pages F-10 through F-12 in the accompanying financial tables. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector.

Forward Looking Statements

This press release contains certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events, such as the anticipated effect of the Company’s LLC investments, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include the outcome of the D.C. Solar bankruptcy, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which the Company and its subsidiaries are engaged.

Investor Relations Contact: Media Relations Contact: Marliese L. Shaw Adam J. Jeamel Executive Vice President, Investor Relations Officer Regional President, Corporate Communications United Bank United Bank 860-291-3622 860-291-3765 MShaw@bankatunited.com AJeamel@bankatunited.com

United Financial Bancorp, Inc. and Subsidiaries Consolidated Statements of Net Income (Unaudited) For the Three Months For the Six Months Ended Ended June 30, June 30, 2019 2018 2019 2018 ---------- ---------- ----------- ----------- Interest and dividend income: (In thousands, except share data) Loans $ 65,650 $ 57,958 $ 130,414 $ 112,738 Securities-taxable interest 6,117 5,969 12,592 11,467 Securities-non-taxable interest 644 2,354 1,738 4,783 Securities-dividends 653 736 1,309 1,373 Interest-bearing deposits 341 113 566 263 -------- - --------- - --------- - Total interest and dividend income 73,405 67,130 146,619 130,624 -------- - -------- - --------- - --------- - Interest expense: Deposits 20,564 12,864 40,495 23,891 Borrowed funds 5,831 6,085 12,177 12,009 -------- - --------- - --------- - Total interest expense 26,395 18,949 52,672 35,900 -------- - -------- - --------- - --------- - Net interest income 47,010 48,181 93,947 94,724 Provision for loan losses 2,472 2,350 4,515 4,289 -------- - --------- - --------- - Net interest income after provision for loan losses 44,538 45,831 89,432 90,435 -------- - -------- - --------- - --------- - Non-interest income: Service charges and fees 7,538 6,542 13,723 12,701 Net gain from sales of securities 137 62 874 178 (Loss) income from mortgage banking activities (410 ) 846 181 2,575 Bank-owned life insurance income 1,521 1,671 3,467 3,317 Net loss on limited partnership investments (7,898 ) (960 ) (8,501 ) (1,550 ) Other (loss) income (48 ) 199 76 428 -------- - --------- - --------- - Total non-interest income 840 8,360 9,820 17,649 -------- - -------- - --------- - --------- - Non-interest expense: Salaries and employee benefits 21,923 22,113 44,125 43,311 Service bureau fees 2,198 2,165 4,235 4,383 Occupancy and equipment 5,111 4,668 10,651 9,617 Professional fees 2,414 1,105 3,707 2,269 Marketing and promotions 782 1,189 1,640 1,874 FDIC insurance assessments 769 735 1,428 1,474 Core deposit intangible amortization 388 305 808 642 Other 5,872 6,090 12,050 11,536 -------- - --------- - --------- - Total non-interest expense 39,457 38,370 78,644 75,106 -------- - -------- - --------- - --------- - Income before income taxes 5,921 15,821 20,608 32,978 Provision for income taxes 9,169 175 11,199 1,545 -------- - --------- - --------- - Net (loss) income $ (3,248 ) $ 15,646 $ 9,409 $ 31,433 - ------ - - ------ - - ------- - - ------- - Net (loss) income per share: Basic $ (0.06 ) $ 0.31 $ 0.19 $ 0.62 Diluted $ (0.06 ) $ 0.31 $ 0.19 $ 0.62 Weighted-average shares outstanding: 50,620,23 50,504,27 50,617,661 50,489,689 Basic 6 3 50,620,23 50,974,28 50,763,678 50,985,520 Diluted 6 3

United Financial Bancorp, Inc. and Subsidiaries Consolidated Statements of Net Income (Unaudited) For the Three Months Ended June 30, March 31, December September June 30, 2019 2019 31, 30, 2018 2018 2018 ---------- ---------- ---------- ---------- ---------- Interest and dividend income: (In thousands, except share data) Loans $ 65,650 $ 64,764 $ 63,227 $ 61,061 $ 57,958 Securities-taxable interest 6,117 6,475 5,705 5,822 5,969 Securities-non-taxable interest 644 1,094 2,339 2,347 2,354 Securities-dividends 653 656 702 748 736 Interest-bearing deposits 341 225 250 213 113 Total interest and dividend income 73,405 73,214 72,223 70,191 67,130 -------- - -------- - -------- - -------- - -------- - Interest expense: Deposits 20,564 19,931 18,183 15,767 12,864 Borrowed funds 5,831 6,346 5,678 5,995 6,085 Total interest expense 26,395 26,277 23,861 21,762 18,949 -------- - -------- - -------- - -------- - -------- - Net interest income 47,010 46,937 48,362 48,429 48,181 Provision for loan losses 2,472 2,043 2,618 2,007 2,350 Net interest income after provision for loan 44,538 44,894 45,744 46,422 45,831 losses -------- - -------- - -------- - -------- - -------- - Non-interest income: Service charges and fees 7,538 6,185 7,447 6,623 6,542 Net gain (loss) from sales of securities 137 737 25 (58 ) 62 (Loss) income from mortgage banking activities (410 ) 591 698 1,486 846 Bank-owned life insurance income 1,521 1,946 1,517 1,460 1,671 Net loss on limited partnership investments (7,898 ) (603 ) (405 ) (221 ) (960 ) Other (loss) income (48 ) 124 211 265 199 Total non-interest income 840 8,980 9,493 9,555 8,360 -------- - -------- - -------- - -------- - -------- - Non-interest expense: Salaries and employee benefits 21,923 22,202 25,341 22,643 22,113 Service bureau fees 2,198 2,037 2,309 2,209 2,165 Occupancy and equipment 5,111 5,540 6,384 4,487 4,668 Professional fees 2,414 1,293 1,136 1,013 1,105 Marketing and promotions 782 858 1,108 1,119 1,189 FDIC insurance assessments 769 659 611 655 735 Core deposit intangible amortization 388 420 420 288 305 Other 5,872 6,178 6,409 6,529 6,090 Total non-interest expense 39,457 39,187 43,718 38,943 38,370 -------- - -------- - -------- - -------- - -------- - Income before income taxes 5,921 14,687 11,519 17,034 15,821 Provision (benefit) for income taxes 9,169 2,030 (646 ) 726 175 Net (loss) income $ (3,248 ) $ 12,657 $ 12,165 $ 16,308 $ 15,646 - ------ - - ------ - - ------ - - ------ - - ------ - Net (loss) income per share: Basic $ (0.06 ) $ 0.25 $ 0.24 $ 0.32 $ 0.31 Diluted $ (0.06 ) $ 0.25 $ 0.24 $ 0.32 $ 0.31 Weighted-average shares outstanding: 50,620,23 50,615,05 50,613,49 50,624,83 50,504,27 Basic 6 9 8 2 3 50,620,23 50,907,09 50,970,00 51,104,77 50,974,28 Diluted 6 2 0 6 3

United Financial Bancorp, Inc. and Subsidiaries Consolidated Statements of Condition (Unaudited) June 30, March 31, December 31, September 30, June 30, 2019 2019 2018 2018 2018 ------------- ------------- ------------- ------------- ------------- ASSETS (In thousands) Cash and cash equivalents: Cash and due from banks $ 67,939 $ 50,823 $ 36,434 $ 48,786 $ 62,188 Short-term investments 46,807 104,350 61,530 29,809 46,987 ----------- - ----------- - ----------- - ----------- - ----------- - Total cash and cash equivalents 114,746 155,173 97,964 78,595 109,175 Available for sale securities – At 840,500 848,541 973,347 972,035 1,006,135 fair value Loans held for sale 38,809 16,172 78,788 86,948 85,458 Loans: Commercial real estate loans: Owner-occupied 459,648 439,366 443,398 434,906 418,338 Investor non-owner occupied 1,971,103 1,932,137 1,911,070 1,888,848 1,927,960 Construction 80,063 94,649 87,493 78,235 82,883 Total commercial real estate loans 2,510,814 2,466,152 2,441,961 2,401,989 2,429,181 Commercial business loans 910,473 920,165 886,770 861,030 841,142 Consumer loans: Residential real estate 1,306,208 1,322,423 1,313,373 1,283,126 1,252,001 Home equity 575,683 583,368 583,454 579,907 588,638 Residential construction 12,542 13,620 20,632 32,750 32,063 Other consumer 439,413 425,854 410,249 369,781 332,402 Total consumer loans 2,333,846 2,345,265 2,327,708 2,265,564 2,205,104 Total loans 5,755,133 5,731,582 5,656,439 5,528,583 5,475,427 Net deferred loan costs and 17,965 17,901 17,786 16,603 15,502 premiums Allowance for loan losses (53,206 ) (52,041 ) (51,636 ) (49,909 ) (49,163 ) Loans receivable - net 5,719,892 5,697,442 5,622,589 5,495,277 5,441,766 Federal Home Loan Bank of Boston 34,335 37,702 41,407 42,032 46,734 stock, at cost Accrued interest receivable 24,938 25,061 24,823 25,485 23,209 Deferred tax asset, net 27,366 27,600 32,706 31,473 30,190 Premises and equipment, net 62,304 63,863 68,657 67,612 67,614 Operating lease right-of-use assets 43,171 44,377 — — — Financing lease right-of-use assets 4,266 4,356 — — — Goodwill 116,709 116,727 116,769 115,281 115,281 Core deposit intangible asset 5,219 5,607 6,027 3,561 3,849 Cash surrender value of bank-owned 195,993 194,496 193,429 181,928 180,490 life insurance Other assets 107,707 102,823 100,368 107,271 98,695 ----------- - ----------- - ----------- - ----------- - ----------- - Total assets $ 7,335,955 $ 7,339,940 $ 7,356,874 $ 7,207,498 $ 7,208,596 - --------- - - --------- - - --------- - - --------- - - --------- - June 30, March 31, December 31, September 30, June 30, 2019 2019 2018 2018 2018 ------------- ------------- ------------- ------------- ------------- LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Deposits: Non-interest-bearing $ 843,926 $ 777,969 $ 799,785 $ 759,210 $ 770,982 Interest-bearing 4,882,622 4,886,283 4,870,814 4,741,153 4,622,394 ----------- - ----------- - ----------- - ----------- - ----------- - Total deposits 5,726,548 5,664,252 5,670,599 5,500,363 5,393,376 Mortgagors’ and investor escrow 14,541 11,510 4,685 9,597 14,526 accounts Federal Home Loan Bank advances and 741,989 826,668 899,626 926,592 1,041,896 other borrowings Operating lease liabilities 55,197 56,265 — — — Financing lease liabilities 4,518 4,585 — — — Accrued expenses and other 73,140 52,562 69,446 61,128 56,921 liabilities ----------- - ----------- - ----------- - ----------- - ----------- - Total liabilities 6,615,933 6,615,842 6,644,356 6,497,680 6,506,719 Total stockholders’ equity 720,022 724,098 712,518 709,818 701,877 ----------- - ----------- - ----------- - ----------- - ----------- - Total liabilities and stockholders’ $ 7,335,955 $ 7,339,940 $ 7,356,874 $ 7,207,498 $ 7,208,596 equity - --------- - - --------- - - --------- - - --------- - - --------- -

United Financial Bancorp, Inc. and Subsidiaries Selected Financial Highlights (Dollars In Thousands, Except Share Data) (Unaudited) At or For the Three Months Ended June 30, March 31, December 31, September June 30, 2019 2019 2018 30, 2018 2018 ----------- ----------- ------------ ----------- ----------- Share Data: Basic net (loss) income per share $ (0.06 ) $ 0.25 $ 0.24 $ 0.32 $ 0.31 Diluted net (loss) income per share (0.06 ) 0.25 0.24 0.32 0.31 Dividends declared per share 0.12 0.12 0.12 0.12 0.12 Tangible book value per share $ 11.71 $ 11.78 $ 11.54 $ 11.55 $ 11.40 Key Statistics: Total revenue $ 47,850 $ 55,917 $ 57,855 $ 57,984 $ 56,541 Total non-interest expense 39,457 39,187 43,718 38,943 38,370 Average earning assets 6,706,237 6,783,604 6,708,701 6,671,424 6,584,938 Key Ratios: (Loss) return on average assets (annualized) (0.18 %) 0.69 % 0.67 % 0.91 % 0.88 % (Loss) return on average equity (annualized) (1.79 %) 7.13 % 6.89 % 9.26 % 9.00 % Tax-equivalent net interest margin 2.82 % 2.81 % 2.90 % 2.92 % 2.97 % (annualized) Non-interest expense to average assets 2.16 % 2.13 % 2.41 % 2.17 % 2.16 % (annualized) Cost of funds (annualized) (1) 1.64 % 1.61 % 1.48 % 1.36 % 1.20 % Total revenue growth rate (14.43 %) (3.35 %) (0.22 %) 2.55 % 1.27 % Total revenue growth rate (annualized) (57.71 %) (13.40 %) (0.89 %) 10.21 % 5.08 % Average earning asset growth rate (1.14 %) 1.12 % 0.56 % 1.31 % 0.26 % Average earning asset growth rate (4.56 %) 4.47 % 2.24 % 5.25 % 1.02 % (annualized) Residential Mortgage Production: Dollar volume (total) $ 46,549 $ 31,882 $ 128,209 $ 143,673 $ 140,409 Mortgages originated for purchases 24,409 21,434 101,266 111,555 110,351 Loans sold 22,352 89,980 108,663 99,372 99,637 (Loss) income from mortgage banking (410 ) 591 698 1,486 846 activities Non-performing Assets: Residential real estate $ 12,893 $ 13,742 $ 13,217 $ 11,949 $ 11,221 Home equity 5,051 4,577 4,735 4,005 4,607 Investor-owned commercial real estate 2,357 739 1,131 1,525 2,400 Owner-occupied commercial real estate 1,989 1,830 2,450 1,202 2,176 Construction 137 171 199 243 250 Commercial business 1,666 1,627 944 985 1,196 Other consumer 657 1,034 1,030 597 237 -------- -- -------- -- --------- -- --------- - --------- - Non-accrual loans 24,750 23,720 23,706 20,506 22,087 Troubled debt restructured – non-accruing 5,820 5,479 6,971 6,706 7,330 -------- -- -------- -- --------- -- --------- - --------- - Total non-performing loans 30,570 29,199 30,677 27,212 29,417 Other real estate owned 1,455 1,429 1,389 1,808 1,855 -------- -- -------- -- --------- -- --------- - --------- - Total non-performing assets $ 32,025 $ 30,628 $ 32,066 $ 29,020 $ 31,272 - ------ -- - ------ -- - ------- -- - ------- - - ------- - Non-performing loans to total loans 0.53 % 0.51 % 0.54 % 0.49 % 0.54 % Non-performing assets to total assets 0.44 % 0.42 % 0.44 % 0.40 % 0.43 % Allowance for loan losses to non-performing 174.05 % 178.23 % 168.32 % 183.41 % 167.12 % loans Allowance for loan losses to total loans 0.92 % 0.91 % 0.91 % 0.90 % 0.90 % Non-GAAP Ratios: (2) Efficiency ratio 69.99 % 69.67 % 69.18 % 65.61 % 65.18 % (Loss) return on average tangible common (1.94 %) 8.85 % 8.55 % 11.30 % 11.03 % equity (annualized) Pre-provision net revenue to average assets 0.92 % 0.92 % 1.00 % 1.12 % 1.14 %

(1) The cost of funds ratio represents interest incurred on liabilities as a percentage of average non-interest-bearing deposits and interest-bearing liabilities.(2) Non-GAAP ratios are not financial measurements required by generally accepted accounting principles; however, management believes such information is useful to investors in evaluating Company performance. Calculations of these non-GAAP metrics are provided after the reconciliations of non-GAAP financial measures and appear on pages F-11 and F-12.

United Financial Bancorp, Inc. and Subsidiaries Average Balance Sheets, Interest and Yields/Costs (Dollars In Thousands) (Unaudited) For the Three Months Ended June 30, 2019 June 30, 2018 Average Interest Yield/Cos Average Interest Yield/Cos Balance and t Balance and t Dividends Dividends ------------- --------- -------- ------------- --------- -------- Interest-earning assets: Residential real estate $ 1,351,571 $ 12,520 3.71 % $ 1,338,021 $ 12,020 3.60 % Commercial real estate 2,379,330 27,503 4.57 2,306,896 24,762 4.25 Construction 105,801 1,387 5.19 114,987 1,331 4.58 Commercial business 916,928 11,487 4.96 816,102 9,139 4.43 Home equity 576,046 7,771 5.41 588,080 7,058 4.81 Other consumer 433,971 5,496 5.08 322,103 4,062 5.06 Investment securities 846,711 6,921 3.26 1,019,491 8,998 3.53 Federal Home Loan Bank stock 35,513 620 6.98 49,136 703 5.72 Other earning assets 60,366 344 2.29 30,122 116 1.55 ----------- - -------- ----------- - -------- Total interest-earning assets 6,706,237 74,049 4.39 6,584,938 68,189 4.12 Allowance for loan losses (52,680 ) (48,624 ) Non-interest-earning assets 636,544 555,407 ----------- - ----------- - Total assets $ 7,290,101 $ 7,091,721 - --------- - - --------- - Interest-bearing liabilities: NOW and money market $ 2,517,212 $ 10,267 1.64 % $ 2,256,323 $ 6,163 1.10 % Savings 504,186 81 0.06 517,910 77 0.06 Certificates of deposit 1,830,763 10,215 2.24 1,749,097 6,624 1.52 ----------- - -------- ----------- - -------- Total interest-bearing deposits 4,852,161 20,563 1.70 4,523,330 12,864 1.14 Federal Home Loan Bank advances 694,082 4,542 2.59 959,248 4,692 1.94 Other borrowings 87,875 1,290 5.81 112,112 1,393 4.91 ----------- - -------- ----------- - -------- Total interest-bearing liabilities 5,634,118 26,395 1.87 5,594,690 18,949 1.35 -------- -------- Non-interest-bearing deposits 796,504 738,484 Other liabilities 134,924 63,246 ----------- - ----------- - Total liabilities 6,565,546 6,396,420 Stockholders’ equity 724,555 695,301 ----------- - ----------- - Total liabilities and stockholders’ $ 7,290,101 $ 7,091,721 equity - --------- - - --------- - Net interest-earning assets $ 1,072,119 $ 990,248 - --------- - - --------- - Tax-equivalent net interest income 47,654 49,240 Tax-equivalent net interest rate spread 2.52 % 2.77 % (1) Tax-equivalent net interest margin(2) 2.82 % 2.97 % Average interest-earning assets to 119.03 % 117.70 % average interest-bearing liabilities Less tax-equivalent adjustment 644 1,059 -------- -------- Net interest income $ 47,010 $ 48,181 - ------ - ------

(1) Tax-equivalent net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.

United Financial Bancorp, Inc. and Subsidiaries Average Balance Sheets, Interest and Yields/Costs (Dollars In Thousands) (Unaudited) For the Three Months Ended June 30, 2019 March 31, 2019 Average Interest Yield/Cos Average Interest Yield/Cos Balance and t Balance and t Dividends Dividends ------------- --------- -------- ------------- --------- -------- Interest-earning assets: Residential real estate $ 1,351,571 $ 12,520 3.71 % $ 1,380,829 $ 12,886 3.73 % Commercial real estate 2,379,330 27,503 4.57 2,358,955 27,302 4.63 Construction 105,801 1,387 5.19 111,198 1,426 5.13 Commercial business 916,928 11,487 4.96 888,436 10,612 4.78 Home equity 576,046 7,771 5.41 582,180 7,874 5.48 Other consumer 433,971 5,496 5.08 418,053 5,174 5.02 Investment securities 846,711 6,921 3.26 966,841 7,819 3.23 Federal Home Loan Bank stock 35,513 620 6.98 40,475 628 6.21 Other earning assets 60,366 344 2.29 36,637 229 2.53 ----------- - -------- ----------- - -------- Total interest-earning assets 6,706,237 74,049 4.39 6,783,604 73,950 4.37 Allowance for loan losses (52,680 ) (52,089 ) Non-interest-earning assets 636,544 639,923 ----------- - ----------- - Total assets $ 7,290,101 $ 7,371,438 - --------- - - --------- - Interest-bearing liabilities: NOW and money market $ 2,517,212 $ 10,267 1.64 % $ 2,567,634 $ 10,309 1.63 % Savings 504,186 81 0.06 500,167 75 0.06 Certificates of deposit 1,830,763 10,215 2.24 1,823,867 9,547 2.12 ----------- - -------- ----------- - -------- Total interest-bearing deposits 4,852,161 20,563 1.70 4,891,668 19,931 1.65 Federal Home Loan Bank advances 694,082 4,542 2.59 800,862 5,045 2.52 Other borrowings 87,875 1,290 5.81 88,757 1,301 5.86 ----------- - -------- ----------- - -------- Total interest-bearing liabilities 5,634,118 26,395 1.87 5,781,287 26,277 1.84 -------- -------- Non-interest-bearing deposits 796,504 745,259 Other liabilities 134,924 134,987 ----------- - ----------- - Total liabilities 6,565,546 6,661,533 Stockholders’ equity 724,555 709,905 ----------- - ----------- - Total liabilities and stockholders’ $ 7,290,101 $ 7,371,438 equity - --------- - - --------- - Net interest-earning assets $ 1,072,119 $ 1,002,317 - --------- - - --------- - Tax-equivalent net interest income 47,654 47,673 Tax-equivalent net interest rate spread 2.52 % 2.53 % (1) Tax-equivalent net interest margin(2) 2.82 % 2.81 % Average interest-earning assets to 119.03 % 117.34 % average interest-bearing liabilities Less tax-equivalent adjustment 644 736 -------- -------- Net interest income $ 47,010 $ 46,937 - ------ - ------

(1) Tax-equivalent net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.

United Financial Bancorp, Inc. and Subsidiaries Average Balance Sheets, Interest and Yields/Costs (Dollars In Thousands) (Unaudited) For the Six Months Ended June 30, 2019 June 30, 2018 Average Interest Yield/Cos Average Interest Yield/Cos Balance and t Balance and t Dividends Dividends ------------- --------- -------- ------------- --------- -------- Interest-earning assets: Residential real estate $ 1,366,119 $ 25,406 3.72 % $ 1,326,185 $ 23,526 3.56 % Commercial real estate 2,369,199 54,804 4.60 2,294,451 48,419 4.20 Construction 108,484 2,813 5.16 117,199 2,656 4.51 Commercial business 902,761 22,099 4.87 829,382 17,521 4.20 Home equity 579,096 15,645 5.45 583,454 13,585 4.69 Other consumer 426,056 10,670 5.05 311,032 7,862 5.10 Investment securities 906,444 14,740 3.25 1,030,404 17,618 3.42 Federal Home Loan Bank stock 37,980 1,248 6.57 50,291 1,309 5.21 Other earning assets 48,567 573 2.38 34,202 270 1.59 ----------- - -------- ----------- - -------- Total interest-earning assets 6,744,706 147,998 4.38 6,576,600 132,766 4.03 Allowance for loan losses (52,386 ) (48,205 ) Non-interest-earning assets 638,225 554,873 ----------- - ----------- - Total assets $ 7,330,545 $ 7,083,268 - --------- - - --------- - Interest-bearing liabilities: NOW and money market $ 2,542,284 $ 20,577 1.63 % $ 2,201,937 $ 11,055 1.01 % Savings 502,187 156 0.06 514,426 150 0.06 Certificates of deposit 1,827,334 19,762 2.18 1,772,754 12,686 1.44 ----------- - -------- ----------- - -------- Total interest-bearing deposits 4,871,805 40,495 1.68 4,489,117 23,891 1.07 Federal Home Loan Bank advances 747,177 9,586 2.55 996,360 9,238 1.84 Other borrowings 88,314 2,591 5.84 115,043 2,771 4.79 ----------- - -------- ----------- - -------- Total interest-bearing liabilities 5,707,296 52,672 1.86 5,600,520 35,900 1.29 -------- -------- Non-interest-bearing deposits 771,023 725,993 Other liabilities 134,955 63,919 ----------- - ----------- - Total liabilities 6,613,274 6,390,432 Stockholders’ equity 717,271 692,836 ----------- - ----------- - Total liabilities and stockholders’ $ 7,330,545 $ 7,083,268 equity - --------- - - --------- - Net interest-earning assets $ 1,037,410 $ 976,080 - --------- - - --------- - Tax-equivalent net interest income 95,326 96,866 Tax-equivalent net interest rate spread 2.52 % 2.74 % (1) Tax-equivalent net interest margin(2) 2.81 % 2.94 % Average interest-earning assets to 118.18 % 117.43 % average interest-bearing liabilities Less tax-equivalent adjustment 1,379 2,142 -------- -------- Net interest income $ 93,947 $ 94,724 - ------ - ------

(1) Tax-equivalent net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(2) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.

United Financial Bancorp, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (Dollars In Thousands) (Unaudited)

In addition to evaluating the Company’s results of operations in accordance with GAAP, management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures. These non-GAAP measures are intended to provide the reader with additional perspectives on operating results, financial condition, and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.

The efficiency ratio is used as a common measure by banks as a comparable metric to understand the Company’s expense structure relative to its total revenue; in other words, for every dollar of total revenue we recognize, how much of that dollar is expended. In order to improve the comparability of the ratio to our peers, we remove non-core items. To improve transparency, and acknowledging that banks are not consistent in their definition of the efficiency ratio, we include our calculation of this non-GAAP measure.

Pre-provision net revenue is a measure that the Company uses to understand fundamental operating performance before credit related expenses and tax expense. It is often expressed as a ratio relative to average assets which demonstrates the “core” performance and can be viewed as an alternative measure of how efficiently the Company services its asset base.

Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Company is deploying its common equity. Companies that are able to demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors.

The Company believes that disclosing these non-GAAP metrics is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included on pages F-10 through F-12 in the following press release tables:

Three Months Ended June 30, March 31, December 31, September 30, June 30, 2019 2019 2018 2018 2018 ------------- ------------- ------------- ------------- ------------- (Dollars in thousands) Net (Loss) Income (GAAP) $ (3,248 ) $ 12,657 $ 12,165 $ 16,308 $ 15,646 Non-GAAP adjustments: Non-interest income (137 ) (1,158 ) (25 ) 58 (271 ) Non-interest expense — — 2,677 (129 ) 215 Income tax benefit related to tax — — (1,717 ) — — reform Related income tax expense (benefit) 29 155 (557 ) 15 (93 ) ----------- - ----------- - ----------- - ----------- - ----------- - Net adjustment (108 ) (1,003 ) 378 (56 ) (149 ) ----------- - ----------- - ----------- - ----------- - ----------- - Total net (loss) income (non-GAAP) $ (3,356 ) $ 11,654 $ 12,543 $ 16,252 $ 15,497 - --------- - - --------- - - --------- - - --------- - - --------- - Non-interest income (GAAP) $ 840 $ 8,980 $ 9,493 $ 9,555 $ 8,360 Non-GAAP adjustments: Net (gain) loss on sales of (137 ) (737 ) (25 ) 58 (62 ) securities BOLI claim benefit — (421 ) — — (209 ) Net adjustment (137 ) (1,158 ) (25 ) 58 (271 ) ----------- - ----------- - ----------- - ----------- - ----------- - Total non-interest income (non-GAAP) 703 7,822 9,468 9,613 8,089 Total net interest income 47,010 46,937 48,362 48,429 48,181 ----------- - ----------- - ----------- - ----------- - ----------- - Total revenue (non-GAAP) $ 47,713 $ 54,759 $ 57,830 $ 58,042 $ 56,270 - --------- - - --------- - - --------- - - --------- - - --------- - Non-interest expense (GAAP) $ 39,457 $ 39,187 $ 43,718 $ 38,943 $ 38,370 Non-GAAP adjustments: Lease exit/disposal cost obligation — — (466 ) 129 (215 ) Effect of position eliminations — — (2,211 ) — — Net adjustment — — (2,677 ) 129 (215 ) ----------- - ----------- - ----------- - ----------- - ----------- - Total non-interest expense $ 39,457 $ 39,187 $ 41,041 $ 39,072 $ 38,155 (non-GAAP) - --------- - - --------- - - --------- - - --------- - - --------- - Total loans $ 5,755,133 $ 5,731,582 $ 5,656,439 $ 5,528,583 $ 5,475,427 Non-covered loans(1) (618,176 ) (658,455 ) (675,112 ) (708,621 ) (729,947 ) ----------- - ----------- - ----------- - ----------- - ----------- - Total covered loans $ 5,136,957 $ 5,073,127 $ 4,981,327 $ 4,819,962 $ 4,745,480 - --------- - - --------- - - --------- - - --------- - - --------- - Allowance for loan losses $ 53,206 $ 52,041 $ 51,636 $ 49,909 $ 49,163 Allowance for loan losses to total 0.92 % 0.91 % 0.91 % 0.90 % 0.90 % loans Allowance for loan losses to total 1.04 % 1.03 % 1.04 % 1.04 % 1.04 % covered loans

(1) Represents acquired loans that were recorded at fair value. These loans carry no allowance for loan losses for the periods reflected above.

Three Months Ended June 30, March 31, December September June 30, 2019 2019 31, 30, 2018 2018 2018 ------------ ----------- ----------- ----------- ----------- Efficiency Ratio: Non-Interest Expense (GAAP) $ 39,457 $ 39,187 $ 43,718 $ 38,943 $ 38,370 Non-GAAP adjustments: Other real estate owned expense (83 ) (105 ) (108 ) (256 ) (163 ) Lease exit/disposal cost obligation — — (466 ) 129 (215 ) Effect of position eliminations — — (2,211 ) — — Non-Interest Expense for Efficiency Ratio $ 39,374 $ 39,082 $ 40,933 $ 38,816 $ 37,992 (non-GAAP) - ------- -- - ------- - - ------- - - ------- - - ------- - Net Interest Income (GAAP) $ 47,010 $ 46,937 $ 48,362 $ 48,429 $ 48,181 Non-GAAP adjustments: Tax-equivalent adjustment for tax-exempt 644 736 938 895 1,059 loans and investment securities Non-Interest Income (GAAP) 840 8,980 9,493 9,555 8,360 Non-GAAP adjustments: Net (gain) loss on sales of securities (137 ) (737 ) (25 ) 58 (62 ) Net loss on limited partnership investments 7,898 603 405 221 960 BOLI claim benefit — (421 ) — — (209 ) Total Revenue for Efficiency Ratio (non-GAAP) $ 56,255 $ 56,098 $ 59,173 $ 59,158 $ 58,289 - ------- -- - ------- - - ------- - - ------- - - ------- - Efficiency Ratio (Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for 69.99 % 69.67 % 69.18 % 65.61 % 65.18 % Efficiency Ratio (non-GAAP)) Three Months Ended June 30, March 31, December September June 30, 2019 2019 31, 30, 2018 2018 2018 ------------ ----------- ----------- ----------- ----------- Pre-Provision Net Revenue (“PPNR”) to Average Assets (Annualized): Net Interest Income (GAAP) $ 47,010 $ 46,937 $ 48,362 $ 48,429 $ 48,181 Non-GAAP adjustments: Tax-equivalent adjustment for tax-exempt 644 736 938 895 1,059 loans and investment securities Total tax-equivalent net interest income (A) $ 47,654 $ 47,673 $ 49,300 $ 49,324 $ 49,240 - ------- -- - ------- - - ------- - - ------- - - ------- - Non-Interest Income (GAAP) 840 8,980 9,493 9,555 8,360 Non-GAAP adjustments: Net (gain) loss on sales of securities (137 ) (737 ) (25 ) 58 (62 ) Net loss on limited partnership investments 7,898 603 405 221 960 BOLI claim benefit — (421 ) — — (209 ) Non-Interest Income for PPNR (non-GAAP) (B) $ 8,601 $ 8,425 $ 9,873 $ 9,834 $ 9,049 - ------- -- - ------- - - ------- - - ------- - - ------- - Non-Interest Expense (GAAP) $ 39,457 $ 39,187 $ 43,718 $ 38,943 $ 38,370 Non-GAAP adjustments: Lease exit/disposal cost obligation — — (466 ) 129 (215 ) Effect of position eliminations — — (2,211 ) — — Non-Interest Expense for PPNR (non-GAAP) (C) $ 39,457 $ 39,187 $ 41,041 $ 39,072 $ 38,155 - ------- -- - ------- - - ------- - - ------- - - ------- - Total PPNR (non-GAAP) (A + B - C) : $ 16,798 $ 16,911 $ 18,132 $ 20,086 $ 20,134 Average Assets 7,290,101 7,371,438 7,244,396 7,191,072 7,091,721 PPNR to Average Assets (Annualized) 0.92 % 0.92 % 1.00 % 1.12 % 1.14 % Return on Average Tangible Common Equity (Annualized): Net (Loss) Income (GAAP) $ (3,248 ) $ 12,657 $ 12,165 $ 16,308 $ 15,646 Non-GAAP adjustments: Intangible assets amortization, tax effected 307 332 332 228 241 at 21% Net (Loss) Income excluding intangible assets $ (2,941 ) $ 12,989 $ 12,497 $ 16,536 $ 15,887 amortization, tax effected at 21% - ------- -- - ------- - - ------- - - ------- - - ------- - Average stockholders’ equity (non-GAAP) $ 724,555 $ 709,905 $ 706,124 $ 704,306 $ 695,301 Average goodwill & other intangible assets 119,287 122,597 121,614 119,009 119,288 (non-GAAP) Average tangible common stockholders’ equity $ 605,268 $ 587,308 $ 584,510 $ 585,297 $ 576,013 (non-GAAP) - ------- -- - ------- - - ------- - - ------- - - ------- - (Loss) Return on Average Tangible Common (1.94 )% 8.85 % 8.55 % 11.30 % 11.03 % Equity (non-GAAP)

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