Attached files
| file | filename |
|---|---|
| 8-K - 8-K - United Financial Bancorp, Inc. | a8-k20171231.htm |
| EX-99.2 - EXHIBIT 99.2 - United Financial Bancorp, Inc. | exhibit992earningsdeck20.htm |
Exhibit 99.1
For Immediate Release: | January 23, 2018 | |
Investor Relations Contact: Marliese L. Shaw Executive Vice President, Investor Relations Officer United Bank 860-291-3622 MShaw@bankatunited.com | Media Relations Contact: Adam J. Jeamel Regional President, Corporate Communications United Bank 860-291-3765 AJeamel@bankatunited.com | |
UNITED FINANCIAL BANCORP, INC.
ANNOUNCES FOURTH QUARTER EARNINGS AND QUARTERLY DIVIDEND
HARTFORD, Conn., January 23, 2018 – 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 December 31, 2017.
The Company reported net income of $9.5 million, or $0.19 per diluted share, for the quarter ended December 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 December 31, 2016. Net income for the year ended December 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 December 31, 2016.
On December 22, 2017, President Donald Trump signed into law the Tax Cuts and Jobs Act of 2017, that, 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 ("GAAP"). 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 (“BOLI”) policy value, resulting in a $2.4 million negative impact to the provision for income taxes. The Company subsequently re-invested $30.0 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," stated William H.W. Crawford, IV, Chief Executive Officer and President of the Company and the Bank. "I want to thank our United Bank teammates for their steadfast focus on serving our customers and communities."
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Balance Sheet
Assets totaled $7.11 billion at December 31, 2017 and increased $137.7 million, or 2.0%, from $6.98 billion at September 30, 2017. At December 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 10.0%, from the linked quarter.
Deposits totaled $5.20 billion at December 31, 2017 and increased by $45.2 million, or 0.9%, from $5.15 billion at September 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.
Total Federal Home Loan Bank advances increased by $95.9 million, or 10.1%, over the linked quarter as a source of funding for loan demand and municipal deposit outflows.
Net Interest Income
Net interest income increased by $81,000, or 0.2%, on a linked quarter basis, to $46.8 million, primarily attributable to an increase in interest income of $928,000, or 1.5%, to $61.7 million. Average interest-earning assets increased by $57.2 million, or 0.9%, primarily due to growth in average loan balances, which increased by $90.4 million, or 1.7%. Average loan balance growth was driven by a $32.5 million, or 6.1%, increase in home equity loans, a $25.9 million, or 10.3%, increase in other consumer loans, a $23.3 million, or 1.1%, increase in average commercial real estate loans, and a $21.9 million, or 2.8%, increase in average commercial business loans. Average residential real estate loan balances declined by $12.9 million, or 1.0%, as the Company continues to actively sell loan originations in the secondary market.
Interest expense increased by $847,000, or 6.0%, to $14.9 million during the fourth quarter of 2017, from $14.0 million in the linked quarter. Average balance shifts in the fourth quarter of 2017 included a $19.4 million, or 0.9%, increase in average NOW and money market deposits, and a $33.3 million, or 1.9%, increase in average certificates of deposit. Slightly offsetting the aforementioned increases was a $9.6 million, or 1.8%, decrease in average savings account balances. The overall growth observed in average deposit balances was largely driven by continued success in new account acquisition strategies.
The tax equivalent net interest margin decreased by two basis points to 2.98% in the fourth quarter from the linked period. As compared to the linked quarter, the decline was largely driven by an increase of five basis points in the cost of interest-bearing liabilities to 1.07%, offset by a three basis point increase in the yield on interest-earning assets to 3.89%. The interest-earning asset yield improvement was largely driven by a 14 basis point increase in the yield on residential real estate loans, which represents 20.2% of the Company's interest-earning assets, an eight basis point increase in the average investment portfolio yield, and a one basis point increase in the average home equity loan yield. The total cost of funds increased by five basis points to 0.96% in the fourth quarter driven by a seven basis point increase in the cost of interest-bearing deposits, while the
UBNK - United Financial Bancorp, Inc. | Page 2 | www.unitedfinancialinc.com |
cost of Federal Home Loan Bank advances increased five basis points. The Company observed favorable growth of $37.1 million, or 5.3%, in average non-interest bearing deposit balances on a linked quarter basis.
Provision for Loan Losses
The provision for loan losses remained relatively flat, totaling $2.3 million for the quarter ended December 31, 2017 as compared to $2.6 million for the linked quarter. Net charge-offs for the quarter ended December 31, 2017 totaled $1.5 million, or 0.11%, as a percentage of average loans outstanding, as compared to $1.3 million, or 0.10% as a percentage of average loans for the quarter ended September 30, 2017. 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 economic and credit conditions, the direction of real estate values and delinquency trends.
Non-Interest Income
Total non-interest income decreased by $727,000, or 9.0%, to $7.3 million for the quarter ended December 31, 2017 from $8.1 million in the linked quarter. The decrease in the fourth quarter's non-interest income was driven primarily by decreases in services charges and fees and other income. There was also a decrease in limited partnership investments as a result of the previously discussed writedown due to the Tax Cuts and Jobs Act, which was signed into law in December 2017, resulting in a decrease of future tax benefits of these investments. These decreases were offset by an increase in bank-owned life insurance income due to the receipt of a death benefit settlement.
Non-Interest Expense
Non-interest expense for the quarter ended December 31, 2017 totaled $37.0 million and increased by $2.1 million, or 6.0%, from the linked quarter. The increase in non-interest expense during the quarter was primarily due to an increase in occupancy and equipment, mainly due to accelerated lease expense recognized in the fourth quarter on a property that the Company no longer occupies, as well as an increase in salaries and employee benefits. These increases were partially offset by decreases in professional fees and marketing and promotions, as compared to the linked quarter.
Asset Quality
Asset quality remained strong and stable for the period, with non-performing assets decreasing by $45,000 to $33.8 million at December 31, 2017 from $33.9 million at September 30, 2017. The ratio of non-performing assets to total assets for the quarter ended December 31, 2017 was 0.48%, as compared to 0.49% in the linked quarter.
Capital
The Company reported Tangible Common Equity ("TCE") of $573.6 million, or 8.2% of average assets, for the quarter ended December 31, 2017. Tangible book value per share increased to $11.24 at December 31, 2017 from $11.23 at September 30, 2017. The increase was primarily driven by the impact of the Company's net income of $9.5 million, partially offset by the cash dividend payment to shareholders of $0.12 per share, as well as a decrease in accumulated other comprehensive income as a result of a decrease in the market value of the Company's investment portfolio, as compared to the previous quarter. Book value per share at December 31, 2017 was $13.58.
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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 February 2, 2018 and payable on February 14, 2018. This dividend equates to a 2.64% annualized yield based on the $18.20 average closing price of the Company’s common stock in the fourth quarter of 2017. The Company has paid dividends for 47 consecutive quarters.
Investor Conference Call
United Financial Bancorp, Inc. will host a conference call on Wednesday, January 24, 2018 at 10:00 a.m. Eastern Time (ET) to discuss the Company’s fourth quarter results. Those wishing to participate in the call may dial toll-free 1-800-544-8281. A telephone replay of the call will be available through February 7, 2018 by calling 1-877-344-7529 and entering conference number 10115483. A podcast will be available on the Company’s website for an extended period of time, as well as on the Company’s investor relations app.
Investor Presentation
United Financial Bancorp, Inc. has prepared and furnished a visual slide presentation to accompany the earnings press release and investor conference call. The presentation has been furnished as an exhibit to the SEC Form 8-K, but is not included in this press release. Copies of the presentation may be accessed on the Company’s investor relations website (www.unitedfinancialinc.com) by selecting “News & Market Data,” then “Presentations;” or via the IRapp and selecting “Presentations;” or directly from SEC EDGAR.
Annual Meeting
The Board of Directors approved May 17, 2018 as the date of the Company's 2018 Annual Meeting of Shareholders (the "Annual Meeting") and set the record date on which the Company's shareholders who will be eligible to vote at the Annual Meeting as the close of business on March 8, 2018.
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, business, and consumer banking products and services to customers throughout Connecticut and Massachusetts. United Bank is a financially strong, leading New England bank with more than 50 branches in two states and several commercial and residential loan production offices. United Financial Bancorp, Inc. trades on the NASDAQ Global Select Stock Exchange under the ticker symbol “UBNK.” At December 31, 2017, the Company had $7.11 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.
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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-13 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 may contain certain forward-looking statements about the Company. Forward-looking statements include statements regarding anticipated future events 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 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.
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United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||
Loans | $ | 52,758 | $ | 45,460 | $ | 200,734 | $ | 179,819 | ||||||||
Securities-taxable interest | 5,643 | 4,848 | 22,550 | 19,678 | ||||||||||||
Securities-non-taxable interest | 2,571 | 2,191 | 9,679 | 8,392 | ||||||||||||
Securities-dividends | 669 | 986 | 2,902 | 3,920 | ||||||||||||
Interest-bearing deposits | 86 | 136 | 389 | 343 | ||||||||||||
Total interest and dividend income | 61,727 | 53,621 | 236,254 | 212,152 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 9,958 | 6,649 | 33,565 | 25,576 | ||||||||||||
Borrowed funds | 4,920 | 3,800 | 18,447 | 15,477 | ||||||||||||
Total interest expense | 14,878 | 10,449 | 52,012 | 41,053 | ||||||||||||
Net interest income | 46,849 | 43,172 | 184,242 | 171,099 | ||||||||||||
Provision for loan losses | 2,250 | 3,359 | 9,396 | 13,437 | ||||||||||||
Net interest income after provision for loan losses | 44,599 | 39,813 | 174,846 | 157,662 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges and fees | 5,796 | 5,580 | 24,209 | 20,259 | ||||||||||||
Net gain from sales of securities | 72 | 94 | 782 | 1,961 | ||||||||||||
Income from mortgage banking activities | 1,184 | 2,838 | 5,539 | 8,227 | ||||||||||||
Bank-owned life insurance income | 1,939 | 863 | 5,462 | 3,394 | ||||||||||||
Net loss on limited partnership investments | (1,441 | ) | (705 | ) | (3,023 | ) | (3,995 | ) | ||||||||
Other income (loss) | (204 | ) | 266 | 431 | 238 | |||||||||||
Total non-interest income | 7,346 | 8,936 | 33,400 | 30,084 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 20,752 | 19,279 | 80,061 | 75,384 | ||||||||||||
Service bureau fees | 2,069 | 1,767 | 8,098 | 7,986 | ||||||||||||
Occupancy and equipment | 5,036 | 3,656 | 16,902 | 14,986 | ||||||||||||
Professional fees | 996 | 1,024 | 4,305 | 3,917 | ||||||||||||
Marketing and promotions | 1,011 | 778 | 4,047 | 3,049 | ||||||||||||
FDIC insurance assessments | 821 | 773 | 3,076 | 3,573 | ||||||||||||
Core deposit intangible amortization | 336 | 385 | 1,411 | 1,604 | ||||||||||||
FHLBB prepayment penalties | — | — | — | 1,454 | ||||||||||||
Other | 5,981 | 5,631 | 23,685 | 22,020 | ||||||||||||
Total non-interest expense | 37,002 | 33,293 | 141,585 | 133,973 | ||||||||||||
Income before income taxes | 14,943 | 15,456 | 66,661 | 53,773 | ||||||||||||
Provision for income taxes | 5,442 | 906 | 12,043 | 4,112 | ||||||||||||
Net income | $ | 9,501 | $ | 14,550 | $ | 54,618 | $ | 49,661 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.19 | $ | 0.29 | $ | 1.09 | $ | 1.00 | ||||||||
Diluted | $ | 0.19 | $ | 0.29 | $ | 1.07 | $ | 0.99 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 50,392,382 | 50,070,710 | 50,283,071 | 49,731,149 | ||||||||||||
Diluted | 51,024,881 | 50,602,494 | 50,922,652 | 50,089,030 | ||||||||||||
F - 1 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||||||
Loans | $ | 52,758 | $ | 51,809 | $ | 49,674 | $ | 46,493 | $ | 45,460 | ||||||||||
Securities-taxable interest | 5,643 | 5,604 | 5,793 | 5,510 | 4,848 | |||||||||||||||
Securities-non-taxable interest | 2,571 | 2,499 | 2,355 | 2,254 | 2,191 | |||||||||||||||
Securities-dividends | 669 | 736 | 689 | 808 | 986 | |||||||||||||||
Interest-bearing deposits | 86 | 151 | 51 | 101 | 136 | |||||||||||||||
Total interest and dividend income | 61,727 | 60,799 | 58,562 | 55,166 | 53,621 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 9,958 | 9,185 | 7,603 | 6,819 | 6,649 | |||||||||||||||
Borrowed funds | 4,920 | 4,846 | 4,631 | 4,050 | 3,800 | |||||||||||||||
Total interest expense | 14,878 | 14,031 | 12,234 | 10,869 | 10,449 | |||||||||||||||
Net interest income | 46,849 | 46,768 | 46,328 | 44,297 | 43,172 | |||||||||||||||
Provision for loan losses | 2,250 | 2,566 | 2,292 | 2,288 | 3,359 | |||||||||||||||
Net interest income after provision for loan losses | 44,599 | 44,202 | 44,036 | 42,009 | 39,813 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Service charges and fees | 5,796 | 6,161 | 6,834 | 5,418 | 5,580 | |||||||||||||||
Net gain from sales of securities | 72 | 158 | 95 | 457 | 94 | |||||||||||||||
Income from mortgage banking activities | 1,184 | 1,204 | 1,830 | 1,321 | 2,838 | |||||||||||||||
Bank-owned life insurance income | 1,939 | 1,167 | 1,149 | 1,207 | 863 | |||||||||||||||
Net loss on limited partnership investments | (1,441 | ) | (864 | ) | (638 | ) | (80 | ) | (705 | ) | ||||||||||
Other income (loss) | (204 | ) | 247 | 206 | 182 | 266 | ||||||||||||||
Total non-interest income | 7,346 | 8,073 | 9,476 | 8,505 | 8,936 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | 20,752 | 20,005 | 19,574 | 19,730 | 19,279 | |||||||||||||||
Service bureau fees | 2,069 | 1,983 | 1,943 | 2,103 | 1,767 | |||||||||||||||
Occupancy and equipment | 5,036 | 3,740 | 3,657 | 4,469 | 3,656 | |||||||||||||||
Professional fees | 996 | 1,048 | 952 | 1,309 | 1,024 | |||||||||||||||
Marketing and promotions | 1,011 | 1,087 | 1,237 | 712 | 778 | |||||||||||||||
FDIC insurance assessments | 821 | 780 | 796 | 679 | 773 | |||||||||||||||
Core deposit intangible amortization | 336 | 337 | 353 | 385 | 385 | |||||||||||||||
Other | 5,981 | 5,929 | 6,467 | 5,308 | 5,631 | |||||||||||||||
Total non-interest expense | 37,002 | 34,909 | 34,979 | 34,695 | 33,293 | |||||||||||||||
Income before income taxes | 14,943 | 17,366 | 18,533 | 15,819 | 15,456 | |||||||||||||||
Provision for income taxes | 5,442 | 2,175 | 2,333 | 2,093 | 906 | |||||||||||||||
Net income | $ | 9,501 | $ | 15,191 | $ | 16,200 | $ | 13,726 | $ | 14,550 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.30 | $ | 0.32 | $ | 0.27 | $ | 0.29 | ||||||||||
Diluted | $ | 0.19 | $ | 0.30 | $ | 0.32 | $ | 0.27 | $ | 0.29 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 50,392,382 | 50,263,602 | 50,217,212 | 50,257,825 | 50,070,710 | |||||||||||||||
Diluted | 51,024,881 | 50,889,987 | 50,839,091 | 50,935,382 | 50,602,494 | |||||||||||||||
F - 2 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||||
ASSETS | (In thousands) | |||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 56,661 | $ | 59,456 | $ | 57,137 | $ | 45,279 | $ | 47,248 | ||||||||||
Short-term investments | 32,007 | 39,061 | 17,714 | 39,381 | 43,696 | |||||||||||||||
Total cash and cash equivalents | 88,668 | 98,517 | 74,851 | 84,660 | 90,944 | |||||||||||||||
Available for sale securities – At fair value | 1,050,787 | 1,068,055 | 1,073,384 | 1,075,729 | 1,043,411 | |||||||||||||||
Held to maturity securities – At amortized cost | 13,598 | 13,693 | 13,792 | 13,937 | 14,038 | |||||||||||||||
Loans held for sale | 114,073 | 89,419 | 157,487 | 87,031 | 62,517 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||
Owner-occupied | 445,820 | 442,989 | 429,848 | 433,358 | 416,718 | |||||||||||||||
Investor non-owner occupied | 1,854,459 | 1,777,716 | 1,761,940 | 1,697,414 | 1,705,319 | |||||||||||||||
Construction | 78,083 | 82,688 | 74,980 | 85,533 | 98,794 | |||||||||||||||
Total commercial real estate loans | 2,378,362 | 2,303,393 | 2,266,768 | 2,216,305 | 2,220,831 | |||||||||||||||
Commercial business loans | 840,312 | 821,372 | 792,918 | 769,153 | 724,557 | |||||||||||||||
Consumer loans: | ||||||||||||||||||||
Residential real estate | 1,204,401 | 1,211,783 | 1,172,540 | 1,167,428 | 1,156,227 | |||||||||||||||
Home equity | 583,180 | 561,814 | 538,130 | 516,325 | 536,772 | |||||||||||||||
Residential construction | 40,947 | 39,460 | 46,117 | 49,456 | 53,934 | |||||||||||||||
Other consumer | 292,781 | 267,921 | 237,708 | 225,317 | 209,393 | |||||||||||||||
Total consumer loans | 2,121,309 | 2,080,978 | 1,994,495 | 1,958,526 | 1,956,326 | |||||||||||||||
Total loans | 5,339,983 | 5,205,743 | 5,054,181 | 4,943,984 | 4,901,714 | |||||||||||||||
Net deferred loan costs and premiums | 14,794 | 15,297 | 15,413 | 13,273 | 11,636 | |||||||||||||||
Allowance for loan losses | (47,099 | ) | (46,368 | ) | (45,062 | ) | (43,304 | ) | (42,798 | ) | ||||||||||
Loans receivable - net | 5,307,678 | 5,174,672 | 5,024,532 | 4,913,953 | 4,870,552 | |||||||||||||||
Federal Home Loan Bank of Boston stock, at cost | 50,194 | 46,758 | 54,760 | 52,707 | 53,476 | |||||||||||||||
Accrued interest receivable | 22,332 | 20,893 | 19,751 | 19,126 | 18,771 | |||||||||||||||
Deferred tax asset, net | 25,656 | 30,999 | 27,034 | 37,040 | 39,962 | |||||||||||||||
Premises and equipment, net | 67,508 | 61,063 | 54,480 | 51,299 | 51,757 | |||||||||||||||
Goodwill | 115,281 | 115,281 | 115,281 | 115,281 | 115,281 | |||||||||||||||
Core deposit intangible asset | 4,491 | 4,827 | 5,164 | 5,517 | 5,902 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 148,300 | 171,300 | 170,144 | 169,007 | 167,823 | |||||||||||||||
Other assets | 105,593 | 81,019 | 85,503 | 71,333 | 65,086 | |||||||||||||||
Total assets | $ | 7,114,159 | $ | 6,976,496 | $ | 6,876,163 | $ | 6,696,620 | $ | 6,599,520 | ||||||||||
F - 3 | ||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing | $ | 778,576 | $ | 725,130 | $ | 721,917 | $ | 690,516 | $ | 708,050 | ||||||||||
Interest-bearing | 4,419,645 | 4,427,892 | 4,271,562 | 4,099,843 | 4,003,122 | |||||||||||||||
Total deposits | 5,198,221 | 5,153,022 | 4,993,479 | 4,790,359 | 4,711,172 | |||||||||||||||
Mortgagors’ and investor escrow accounts | 7,545 | 9,641 | 15,045 | 10,925 | 13,354 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings | 1,165,054 | 1,068,814 | 1,138,817 | 1,180,053 | 1,169,619 | |||||||||||||||
Accrued expenses and other liabilities | 50,011 | 54,366 | 49,358 | 49,300 | 49,509 | |||||||||||||||
Total liabilities | 6,420,831 | 6,285,843 | 6,196,699 | 6,030,637 | 5,943,654 | |||||||||||||||
Total stockholders’ equity | 693,328 | 690,653 | 679,464 | 665,983 | 655,866 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,114,159 | $ | 6,976,496 | $ | 6,876,163 | $ | 6,696,620 | $ | 6,599,520 | ||||||||||
F - 4 | ||
United Financial Bancorp, Inc. and Subsidiaries
Selected Financial Highlights
(Dollars In Thousands, Except Share Data)
(Unaudited)
At or For the Three Months Ended | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Share Data: | |||||||||||||||||||
Basic net income per share | $ | 0.19 | $ | 0.30 | $ | 0.32 | $ | 0.27 | $ | 0.29 | |||||||||
Diluted net income per share | 0.19 | 0.30 | 0.32 | 0.27 | 0.29 | ||||||||||||||
Dividends declared per share | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | ||||||||||||||
Tangible book value per share | $ | 11.24 | $ | 11.23 | $ | 11.01 | $ | 10.75 | $ | 10.53 | |||||||||
Key Statistics: | |||||||||||||||||||
Total revenue | $ | 54,195 | $ | 54,841 | $ | 55,804 | $ | 52,802 | $ | 52,108 | |||||||||
Total non-interest expense | 37,002 | 34,909 | 34,979 | 34,695 | 33,293 | ||||||||||||||
Average earning assets | 6,480,966 | 6,423,741 | 6,304,849 | 6,113,363 | 6,054,347 | ||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets (annualized) | 0.54 | % | 0.88 | % | 0.96 | % | 0.83 | % | 0.90 | % | |||||||||
Return on average equity (annualized) | 5.50 | % | 8.92 | % | 9.66 | % | 8.35 | % | 8.95 | % | |||||||||
Tax-equivalent net interest margin (annualized) | 2.98 | % | 3.00 | % | 3.04 | % | 3.01 | % | 2.93 | % | |||||||||
Residential Mortgage Production: | |||||||||||||||||||
Dollar volume (total) | $ | 135,522 | $ | 133,462 | $ | 186,220 | $ | 134,022 | $ | 160,512 | |||||||||
Mortgages originated for purchases | 83,181 | 97,132 | 129,165 | 77,613 | 77,549 | ||||||||||||||
Loans sold | 94,738 | 152,551 | 61,363 | 51,826 | 87,626 | ||||||||||||||
Income from mortgage banking activities | 1,184 | 1,204 | 1,830 | 1,321 | 2,838 | ||||||||||||||
Non-performing Assets: | |||||||||||||||||||
Residential real estate | $ | 11,824 | $ | 11,330 | $ | 11,190 | $ | 12,185 | $ | 11,357 | |||||||||
Home equity | 4,968 | 4,206 | 5,211 | 4,307 | 4,043 | ||||||||||||||
Investor-owned commercial real estate | 1,821 | 2,957 | 3,512 | 3,809 | 4,016 | ||||||||||||||
Owner-occupied commercial real estate | 1,664 | 2,084 | 2,184 | 2,314 | 2,642 | ||||||||||||||
Construction | 1,398 | 1,748 | 287 | 1,355 | 1,701 | ||||||||||||||
Commercial business | 1,477 | 2,427 | 2,624 | 2,369 | 2,000 | ||||||||||||||
Other consumer | 35 | 37 | 40 | 37 | 1,000 | ||||||||||||||
Non-accrual loans | 23,187 | 24,789 | 25,048 | 26,376 | 26,759 | ||||||||||||||
Troubled debt restructured – non-accruing | 8,475 | 6,628 | 7,475 | 8,252 | 7,304 | ||||||||||||||
Total non-performing loans | 31,662 | 31,417 | 32,523 | 34,628 | 34,063 | ||||||||||||||
Other real estate owned | 2,154 | 2,444 | 1,770 | 1,786 | 1,890 | ||||||||||||||
Total non-performing assets | $ | 33,816 | $ | 33,861 | $ | 34,293 | $ | 36,414 | $ | 35,953 | |||||||||
Non-performing loans to total loans | 0.59 | % | 0.60 | % | 0.64 | % | 0.70 | % | 0.69 | % | |||||||||
Non-performing assets to total assets | 0.48 | % | 0.49 | % | 0.50 | % | 0.54 | % | 0.54 | % | |||||||||
Allowance for loan losses to non-performing loans | 148.76 | % | 147.59 | % | 138.55 | % | 125.05 | % | 125.64 | % | |||||||||
Allowance for loan losses to total loans | 0.88 | % | 0.89 | % | 0.89 | % | 0.88 | % | 0.87 | % | |||||||||
Non-GAAP Ratios: (1) | |||||||||||||||||||
Non-interest expense to average assets (annualized) | 2.12 | % | 2.02 | % | 2.06 | % | 2.11 | % | 2.05 | % | |||||||||
Efficiency ratio (2) | 63.38 | % | 60.22 | % | 59.51 | % | 63.93 | % | 60.62 | % | |||||||||
Cost of funds (annualized) (3) | 0.96 | % | 0.91 | % | 0.81 | % | 0.74 | % | 0.73 | % | |||||||||
Total revenue growth rate | (1.18 | )% | (1.73 | )% | 5.69 | % | 1.33 | % | 2.34 | % | |||||||||
Total revenue growth rate (annualized) | (4.71 | )% | (6.90 | )% | 22.74 | % | 5.33 | % | 9.35 | % | |||||||||
Average earning asset growth rate | 0.89 | % | 1.89 | % | 3.13 | % | 0.97 | % | 1.16 | % | |||||||||
Average earning asset growth rate (annualized) | 3.56 | % | 7.54 | % | 12.53 | % | 3.90 | % | 4.64 | % | |||||||||
Return on average tangible common equity (annualized) (2) | 6.81 | % | 10.99 | % | 11.95 | % | 10.42 | % | 11.19 | % | |||||||||
Pre-provision net revenue to average assets (2) | 1.19 | % | 1.31 | % | 1.38 | % | 1.18 | % | 1.31 | % | |||||||||
(1) | 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. |
(2) | Calculations of these non-GAAP metrics are provided after the reconciliations of non-GAAP financial measures and appear on page F-10 through page F-13. |
(3) | The cost of funds ratio represents interest incurred on liabilities as a percentage of average non-interest bearing deposits and interest-bearing liabilities. |
F - 5 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | |||||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,310,352 | $ | 11,343 | 3.47 | % | $ | 1,222,681 | $ | 9,878 | 3.23 | % | |||||||||
Commercial real estate | 2,234,878 | 23,089 | 4.04 | 2,104,146 | 20,843 | 3.88 | |||||||||||||||
Construction | 122,151 | 1,453 | 4.66 | 146,688 | 1,621 | 4.32 | |||||||||||||||
Commercial business | 813,457 | 7,994 | 3.85 | 670,795 | 6,297 | 3.67 | |||||||||||||||
Home equity | 569,021 | 6,293 | 4.39 | 496,379 | 4,817 | 3.86 | |||||||||||||||
Other consumer | 278,465 | 3,309 | 4.71 | 210,473 | 2,542 | 4.80 | |||||||||||||||
Investment securities | 1,074,840 | 9,713 | 3.60 | 1,047,419 | 8,662 | 3.30 | |||||||||||||||
Federal Home Loan Bank stock | 47,964 | 564 | 4.71 | 52,861 | 537 | 4.06 | |||||||||||||||
Other earning assets | 29,838 | 86 | 1.15 | 102,905 | 136 | 0.53 | |||||||||||||||
Total interest-earning assets | 6,480,966 | 63,844 | 3.89 | 6,054,347 | 55,333 | 3.61 | |||||||||||||||
Allowance for loan losses | (46,880 | ) | (42,176 | ) | |||||||||||||||||
Non-interest-earning assets | 542,596 | 478,800 | |||||||||||||||||||
Total assets | $ | 6,976,682 | $ | 6,490,971 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,125,177 | $ | 4,286 | 0.80 | % | $ | 1,620,960 | $ | 1,597 | 0.39 | % | |||||||||
Savings | 517,993 | 77 | 0.06 | 526,426 | 80 | 0.06 | |||||||||||||||
Certificates of deposit | 1,765,007 | 5,595 | 1.26 | 1,869,223 | 4,972 | 1.06 | |||||||||||||||
Total interest-bearing deposits | 4,408,177 | 9,958 | 0.90 | 4,016,609 | 6,649 | 0.66 | |||||||||||||||
Federal Home Loan Bank advances | 954,159 | 3,538 | 1.45 | 926,828 | 2,425 | 1.02 | |||||||||||||||
Other borrowings | 117,578 | 1,382 | 4.60 | 122,751 | 1,375 | 4.39 | |||||||||||||||
Total interest-bearing liabilities | 5,479,914 | 14,878 | 1.07 | 5,066,188 | 10,449 | 0.82 | |||||||||||||||
Non-interest-bearing deposits | 740,007 | 691,871 | |||||||||||||||||||
Other liabilities | 65,757 | 82,322 | |||||||||||||||||||
Total liabilities | 6,285,678 | 5,840,381 | |||||||||||||||||||
Stockholders’ equity | 691,004 | 650,590 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,976,682 | $ | 6,490,971 | |||||||||||||||||
Net interest-earning assets | $ | 1,001,052 | $ | 988,159 | |||||||||||||||||
Tax-equivalent net interest income | 48,966 | 44,884 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.82 | % | 2.79 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.98 | % | 2.93 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 118.27 | % | 119.50 | % | |||||||||||||||||
Less tax-equivalent adjustment | 2,117 | 1,712 | |||||||||||||||||||
Net interest income | $ | 46,849 | $ | 43,172 | |||||||||||||||||
(1) Tax-equivalent net interest rate spread represents the difference between 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.
F - 6 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | |||||||||||||||||||||
December 31, 2017 | September 30, 2017 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,310,352 | $ | 11,343 | 3.47 | % | $ | 1,323,262 | $ | 11,017 | 3.33 | % | |||||||||
Commercial real estate | 2,234,878 | 23,089 | 4.04 | 2,211,601 | 23,063 | 4.08 | |||||||||||||||
Construction | 122,151 | 1,453 | 4.66 | 122,511 | 1,301 | 4.16 | |||||||||||||||
Commercial business | 813,457 | 7,994 | 3.85 | 791,547 | 8,163 | 4.04 | |||||||||||||||
Home equity | 569,021 | 6,293 | 4.39 | 536,509 | 5,917 | 4.38 | |||||||||||||||
Other consumer | 278,465 | 3,309 | 4.71 | 252,532 | 3,063 | 4.81 | |||||||||||||||
Investment securities | 1,074,840 | 9,713 | 3.60 | 1,090,559 | 9,621 | 3.52 | |||||||||||||||
Federal Home Loan Bank stock | 47,964 | 564 | 4.71 | 51,722 | 572 | 4.43 | |||||||||||||||
Other earning assets | 29,838 | 86 | 1.15 | 43,498 | 151 | 1.38 | |||||||||||||||
Total interest-earning assets | 6,480,966 | 63,844 | 3.89 | 6,423,741 | 62,868 | 3.86 | |||||||||||||||
Allowance for loan losses | (46,880 | ) | (46,479 | ) | |||||||||||||||||
Non-interest-earning assets | 542,596 | 529,937 | |||||||||||||||||||
Total assets | $ | 6,976,682 | $ | 6,907,199 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,125,177 | $ | 4,286 | 0.80 | % | $ | 2,105,796 | $ | 3,992 | 0.75 | % | |||||||||
Savings | 517,993 | 77 | 0.06 | 527,641 | 77 | 0.06 | |||||||||||||||
Certificates of deposit | 1,765,007 | 5,595 | 1.26 | 1,731,658 | 5,116 | 1.17 | |||||||||||||||
Total interest-bearing deposits | 4,408,177 | 9,958 | 0.90 | 4,365,095 | 9,185 | 0.83 | |||||||||||||||
Federal Home Loan Bank advances | 954,159 | 3,538 | 1.45 | 951,760 | 3,404 | 1.40 | |||||||||||||||
Other borrowings | 117,578 | 1,382 | 4.60 | 135,173 | 1,442 | 4.18 | |||||||||||||||
Total interest-bearing liabilities | 5,479,914 | 14,878 | 1.07 | 5,452,028 | 14,031 | 1.02 | |||||||||||||||
Non-interest-bearing deposits | 740,007 | 702,916 | |||||||||||||||||||
Other liabilities | 65,757 | 70,853 | |||||||||||||||||||
Total liabilities | 6,285,678 | 6,225,797 | |||||||||||||||||||
Stockholders’ equity | 691,004 | 681,402 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,976,682 | $ | 6,907,199 | |||||||||||||||||
Net interest-earning assets | $ | 1,001,052 | $ | 971,713 | |||||||||||||||||
Tax-equivalent net interest income | 48,966 | 48,837 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.82 | % | 2.84 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.98 | % | 3.00 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 118.27 | % | 117.82 | % | |||||||||||||||||
Less tax-equivalent adjustment | 2,117 | 2,069 | |||||||||||||||||||
Net interest income | $ | 46,849 | $ | 46,768 | |||||||||||||||||
(1) Tax-equivalent net interest rate spread represents the difference between 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.
F - 7 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Years Ended | |||||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,291,852 | $ | 43,422 | 3.36 | % | $ | 1,214,681 | $ | 39,691 | 3.27 | % | |||||||||
Commercial real estate | 2,175,197 | 88,716 | 4.02 | 2,055,441 | 83,996 | 4.02 | |||||||||||||||
Construction | 129,636 | 5,714 | 4.35 | 159,677 | 6,855 | 4.22 | |||||||||||||||
Commercial business | 779,262 | 30,504 | 3.86 | 646,308 | 24,064 | 3.66 | |||||||||||||||
Home equity | 542,579 | 23,168 | 4.27 | 460,439 | 16,487 | 3.58 | |||||||||||||||
Other consumer | 243,631 | 11,890 | 4.88 | 216,708 | 10,743 | 4.95 | |||||||||||||||
Investment securities | 1,083,616 | 38,078 | 3.51 | 1,074,593 | 34,605 | 3.21 | |||||||||||||||
Federal Home Loan Bank stock | 51,735 | 2,195 | 4.24 | 54,344 | 1,903 | 3.50 | |||||||||||||||
Other earning assets | 34,484 | 389 | 1.13 | 62,367 | 343 | 0.55 | |||||||||||||||
Total interest-earning assets | 6,331,992 | 244,076 | 3.83 | 5,944,558 | 218,687 | 3.65 | |||||||||||||||
Allowance for loan losses | (45,480 | ) | (38,133 | ) | |||||||||||||||||
Non-interest-earning assets | 526,914 | 479,333 | |||||||||||||||||||
Total assets | $ | 6,813,426 | $ | 6,385,758 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,002,146 | $ | 13,282 | 0.66 | % | $ | 1,555,182 | $ | 6,547 | 0.42 | % | |||||||||
Savings | 529,006 | 312 | 0.06 | 527,544 | 309 | 0.06 | |||||||||||||||
Certificates of deposit | 1,731,434 | 19,971 | 1.15 | 1,805,623 | 18,720 | 1.04 | |||||||||||||||
Total interest-bearing deposits | 4,262,586 | 33,565 | 0.79 | 3,888,349 | 25,576 | 0.66 | |||||||||||||||
Federal Home Loan Bank advances | 978,673 | 12,763 | 1.29 | 988,847 | 9,931 | 0.99 | |||||||||||||||
Other borrowings | 133,364 | 5,684 | 4.20 | 128,617 | 5,546 | 4.24 | |||||||||||||||
Total interest-bearing liabilities | 5,374,623 | 52,012 | 0.96 | 5,005,813 | 41,053 | 0.82 | |||||||||||||||
Non-interest-bearing deposits | 695,713 | 657,842 | |||||||||||||||||||
Other liabilities | 67,810 | 83,236 | |||||||||||||||||||
Total liabilities | 6,138,146 | 5,746,891 | |||||||||||||||||||
Stockholders’ equity | 675,280 | 638,867 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 6,813,426 | $ | 6,385,758 | |||||||||||||||||
Net interest-earning assets | $ | 957,369 | $ | 938,745 | |||||||||||||||||
Tax-equivalent net interest income | 192,064 | 177,634 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.87 | % | 2.83 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 3.01 | % | 2.96 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.81 | % | 118.75 | % | |||||||||||||||||
Less tax-equivalent adjustment | 7,822 | 6,535 | |||||||||||||||||||
Net interest income | $ | 184,242 | $ | 171,099 | |||||||||||||||||
(1) Tax-equivalent net interest rate spread represents the difference between 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.
F - 8 | ||
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-13 in the following press release tables:
F - 9 | ||
Three Months Ended | Years Ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Net Income (GAAP) | $ | 9,501 | $ | 15,191 | $ | 16,200 | $ | 13,726 | $ | 14,550 | $ | 54,618 | $ | 49,661 | |||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||
Non-interest income | 745 | (158 | ) | (95 | ) | (465 | ) | (94 | ) | 27 | (2,031 | ) | |||||||||||||||
Non-interest expense | 536 | — | — | — | 107 | 536 | 3,019 | ||||||||||||||||||||
Income tax expense related to tax reform | 1,609 | — | — | — | — | 1,609 | — | ||||||||||||||||||||
Related income tax (benefit) expense | 2,074 | 55 | 33 | 163 | (5 | ) | 2,325 | (346 | ) | ||||||||||||||||||
Net adjustment | 4,964 | (103 | ) | (62 | ) | (302 | ) | 8 | 4,497 | 642 | |||||||||||||||||
Total net income (non-GAAP) | $ | 14,465 | $ | 15,088 | $ | 16,138 | $ | 13,424 | $ | 14,558 | $ | 59,115 | $ | 50,303 | |||||||||||||
Non-interest income (GAAP) | $ | 7,346 | $ | 8,073 | $ | 9,476 | $ | 8,505 | $ | 8,936 | $ | 33,400 | $ | 30,084 | |||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||
Net gain on sales of securities | (72 | ) | (158 | ) | (95 | ) | (457 | ) | (94 | ) | (782 | ) | (1,961 | ) | |||||||||||||
Limited partnership writedown | 1,214 | — | — | — | — | 1,214 | — | ||||||||||||||||||||
Loss on sale of premises and equipment | 401 | — | — | — | — | 401 | — | ||||||||||||||||||||
BOLI claim benefit | (798 | ) | — | — | (8 | ) | — | (806 | ) | (70 | ) | ||||||||||||||||
Net adjustment | 745 | (158 | ) | (95 | ) | (465 | ) | (94 | ) | 27 | (2,031 | ) | |||||||||||||||
Total non-interest income (non-GAAP) | 8,091 | 7,915 | 9,381 | 8,040 | 8,842 | 33,427 | 28,053 | ||||||||||||||||||||
Total net interest income | 46,849 | 46,768 | 46,328 | 44,297 | 43,172 | 184,242 | 171,099 | ||||||||||||||||||||
Total revenue (non-GAAP) | $ | 54,940 | $ | 54,683 | $ | 55,709 | $ | 52,337 | $ | 52,014 | $ | 217,669 | $ | 199,152 | |||||||||||||
Non-interest expense (GAAP) | $ | 37,002 | $ | 34,909 | $ | 34,979 | $ | 34,695 | $ | 33,293 | $ | 141,585 | $ | 133,973 | |||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||
Lease exit/disposal cost obligation | (536 | ) | — | — | — | — | (536 | ) | — | ||||||||||||||||||
Effect of position eliminations | — | — | — | — | (107 | ) | — | (1,565 | ) | ||||||||||||||||||
FHLBB prepayment penalties | — | — | — | — | — | — | (1,454 | ) | |||||||||||||||||||
Net adjustment | (536 | ) | — | — | — | (107 | ) | (536 | ) | (3,019 | ) | ||||||||||||||||
Total non-interest expense (non-GAAP) | $ | 36,466 | $ | 34,909 | $ | 34,979 | $ | 34,695 | $ | 33,186 | $ | 141,049 | $ | 130,954 | |||||||||||||
Total loans | $ | 5,339,983 | $ | 5,205,743 | $ | 5,054,181 | $ | 4,943,984 | $ | 4,901,714 | $ | 5,339,983 | $ | 4,901,714 | |||||||||||||
Non-covered loans (1) | (780,776 | ) | (739,376 | ) | (699,938 | ) | (691,054 | ) | (744,763 | ) | (780,776 | ) | (744,763 | ) | |||||||||||||
Total covered loans | $ | 4,559,207 | $ | 4,466,367 | $ | 4,354,243 | $ | 4,252,930 | $ | 4,156,951 | $ | 4,559,207 | $ | 4,156,951 | |||||||||||||
Allowance for loan losses | $ | 47,099 | $ | 46,368 | $ | 45,062 | $ | 43,304 | $ | 42,798 | $ | 47,099 | $ | 42,798 | |||||||||||||
Allowance for loan losses to total loans | 0.88 | % | 0.89 | % | 0.89 | % | 0.88 | % | 0.87 | % | 0.88 | % | 0.87 | % | |||||||||||||
Allowance for loan losses to total covered loans | 1.03 | % | 1.04 | % | 1.03 | % | 1.02 | % | 1.03 | % | 1.03 | % | 1.03 | % | |||||||||||||
F - 10 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Efficiency Ratio: | ||||||||||||||||||||||||||||
Non-Interest Expense (GAAP) | $ | 37,002 | $ | 34,909 | $ | 34,979 | $ | 34,695 | $ | 33,293 | $ | 141,585 | $ | 133,973 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Other real estate owned expense | (157 | ) | (211 | ) | (293 | ) | (103 | ) | (191 | ) | (764 | ) | (343 | ) | ||||||||||||||
Lease exit/disposal cost obligation | (536 | ) | — | — | — | — | (536 | ) | — | |||||||||||||||||||
Effect of position eliminations | — | — | — | — | (107 | ) | — | (1,565 | ) | |||||||||||||||||||
FHLBB prepayment penalties | — | — | — | — | — | — | (1,454 | ) | ||||||||||||||||||||
Non-Interest Expense for Efficiency Ratio (non-GAAP) | $ | 36,309 | $ | 34,698 | $ | 34,686 | $ | 34,592 | $ | 32,995 | $ | 140,285 | $ | 130,611 | ||||||||||||||
Net Interest Income (GAAP) | $ | 46,849 | $ | 46,768 | $ | 46,328 | $ | 44,297 | $ | 43,172 | $ | 184,242 | $ | 171,099 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Tax equivalent adjustment for tax-exempt loans and investment securities | 2,117 | 2,069 | 1,943 | 1,693 | 1,712 | 7,822 | 6,535 | |||||||||||||||||||||
Non-Interest Income (GAAP) | 7,346 | 8,073 | 9,476 | 8,505 | 8,936 | 33,400 | 30,084 | |||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net gain on sales of securities | (72 | ) | (158 | ) | (95 | ) | (457 | ) | (94 | ) | (782 | ) | (1,961 | ) | ||||||||||||||
Net loss on limited partnership investments | 1,441 | 864 | 638 | 80 | 705 | 3,023 | 3,995 | |||||||||||||||||||||
Loss on sale of premises and equipment | 401 | — | — | — | — | 401 | — | |||||||||||||||||||||
BOLI claim benefit | (798 | ) | — | — | (8 | ) | — | (806 | ) | (70 | ) | |||||||||||||||||
Total Revenue for Efficiency Ratio (non-GAAP) | $ | 57,284 | $ | 57,616 | $ | 58,290 | $ | 54,110 | $ | 54,431 | $ | 227,300 | $ | 209,682 | ||||||||||||||
Efficiency Ratio (Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) | 63.38 | % | 60.22 | % | 59.51 | % | 63.93 | % | 60.62 | % | 61.72 | % | 62.29 | % | ||||||||||||||
F - 11 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Pre-Provision Net Revenue ("PPNR") to Average Assets (Annualized): | ||||||||||||||||||||||||||||
Net Interest income (GAAP) | $ | 46,849 | $ | 46,768 | $ | 46,328 | $ | 44,297 | $ | 43,172 | $ | 184,242 | $ | 171,099 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Tax equivalent adjustment for tax-exempt loans and investment securities | 2,117 | 2,069 | 1,943 | 1,693 | 1,712 | 7,822 | 6,535 | |||||||||||||||||||||
Total tax equivalent net interest income (A) | $ | 48,966 | $ | 48,837 | $ | 48,271 | $ | 45,990 | $ | 44,884 | $ | 192,064 | $ | 177,634 | ||||||||||||||
Non Interest Income (GAAP) | 7,346 | 8,073 | 9,476 | 8,505 | 8,936 | 33,400 | 30,084 | |||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Net gain on sales of securities | (72 | ) | (158 | ) | (95 | ) | (457 | ) | (94 | ) | (782 | ) | (1,961 | ) | ||||||||||||||
Net loss on limited partnership investments | 1,441 | 864 | 638 | 80 | 705 | 3,023 | 3,995 | |||||||||||||||||||||
Loss on sale of premises and equipment | 401 | — | — | — | — | 401 | — | |||||||||||||||||||||
BOLI claim benefit | (798 | ) | — | — | (8 | ) | — | (806 | ) | (70 | ) | |||||||||||||||||
Non-Interest Income for PPNR (non-GAAP) (B) | $ | 8,318 | $ | 8,779 | $ | 10,019 | $ | 8,120 | $ | 9,547 | $ | 35,236 | $ | 32,048 | ||||||||||||||
Non-Interest Expense (GAAP) | $ | 37,002 | $ | 34,909 | $ | 34,979 | $ | 34,695 | $ | 33,293 | $ | 141,585 | $ | 133,973 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Lease exit/disposal cost obligation | (536 | ) | — | — | — | — | (536 | ) | — | |||||||||||||||||||
Effect of position eliminations | — | — | — | — | (107 | ) | — | (1,565 | ) | |||||||||||||||||||
FHLBB prepayment penalties | — | — | — | — | — | — | (1,454 | ) | ||||||||||||||||||||
Non-Interest Expense for PPNR (non-GAAP) (C) | $ | 36,466 | $ | 34,909 | $ | 34,979 | $ | 34,695 | $ | 33,186 | $ | 141,049 | $ | 130,954 | ||||||||||||||
Total PPNR (non-GAAP) (A + B - C) : | $ | 20,818 | $ | 22,707 | $ | 23,311 | $ | 19,415 | $ | 21,245 | $ | 86,251 | $ | 78,728 | ||||||||||||||
Average Assets | 6,976,682 | 6,907,199 | 6,780,336 | 6,584,138 | 6,490,971 | 6,813,426 | 6,385,758 | |||||||||||||||||||||
PPNR to Average Assets (Annualized) | 1.19 | % | 1.31 | % | 1.38 | % | 1.18 | % | 1.31 | % | 1.27 | % | 1.23 | % | ||||||||||||||
F - 12 | ||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Return on Average Tangible Common Equity (Annualized): | ||||||||||||||||||||||||||||
Net Income (GAAP) | $ | 9,501 | $ | 15,191 | $ | 16,200 | $ | 13,726 | $ | 14,550 | $ | 54,618 | $ | 49,661 | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||
Intangible Assets amortization, tax effected at 35% | 219 | 219 | 229 | 250 | 250 | 917 | 1,043 | |||||||||||||||||||||
Net Income excluding intangible assets amortization, tax effected at 35% | $ | 9,720 | $ | 15,410 | $ | 16,429 | $ | 13,976 | $ | 14,800 | $ | 55,535 | $ | 50,704 | ||||||||||||||
Average stockholders' equity (non-GAAP) | $ | 691,004 | $ | 681,402 | $ | 670,526 | $ | 657,755 | $ | 650,590 | $ | 675,280 | $ | 638,867 | ||||||||||||||
Average goodwill & other intangible assets (non-GAAP) | 119,962 | 120,275 | 120,631 | 121,004 | 121,383 | 120,465 | 121,976 | |||||||||||||||||||||
Average tangible common stockholders' equity (non-GAAP) | $ | 571,042 | $ | 561,127 | $ | 549,895 | $ | 536,751 | $ | 529,207 | $ | 554,815 | $ | 516,891 | ||||||||||||||
Return on Average Tangible Common Equity (non-GAAP) | 6.81 | % | 10.99 | % | 11.95 | % | 10.42 | % | 11.19 | % | 10.01 | % | 9.81 | % | ||||||||||||||
F - 13 | ||