Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - United Financial Bancorp, Inc. | exhibit992earningsdeck20.htm |
| 8-K - 8-K - United Financial Bancorp, Inc. | a8-k20180930.htm |
Exhibit 99.1
For Immediate Release: | October 16, 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 THIRD QUARTER EARNINGS AND QUARTERLY DIVIDEND
HARTFORD, Conn., October 16, 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 September 30, 2018.
The Company reported net income of $16.3 million, or $0.32 per diluted share, for the quarter ended September 30, 2018, compared to net income for the linked quarter of $15.6 million, or $0.31 per diluted share. The Company reported net income of $15.2 million, or $0.30 per diluted share, for the quarter ended September 30, 2017.
"I want to thank our United Bank employees for their steadfast focus on serving our customers and communities, while also prudently growing revenue, earnings, tangible book value, and core deposits," stated William H.W. Crawford, IV, Chief Executive Officer and President of the Company and the Bank.
Balance Sheet
Assets totaled $7.21 billion at September 30, 2018 and remained relatively flat, decreasing $1.1 million from $7.21 billion at June 30, 2018. At September 30, 2018, total loans were $5.53 billion, representing an increase of $53.2 million, or 1.0%, from the linked quarter. Changes to loan balances during the third quarter of 2018 were highlighted by a $37.4 million, or 11.2%, increase in other consumer loans, a $31.1 million, or 2.5%, increase in residential real estate loans, a $19.9 million, or 2.4%, increase in commercial business loans, and a $16.6 million, or 4.0%, increase in owner-occupied commercial real estate loans. Slightly offsetting the increased balances were a $39.1 million, or 2.0%, decrease in investor non-owner occupied commercial real estate loans and an $8.7 million, or 1.5%, decrease in home equity loans. Loans held for sale increased $1.5 million, or 1.7%, from the linked quarter. Available-for-sale securities decreased $34.1 million, or 3.4%, as the Company utilized cash flows for improved risk adjusted returns on capital in the loan portfolio. Total cash and cash equivalents decreased $30.6 million, or 28.0%, from the linked quarter as the Company paid down Federal Home Loan Bank of Boston advances at the end of the quarter.
UBNK - United Financial Bancorp, Inc. | Page 1 | www.unitedfinancialinc.com |
Deposits totaled $5.50 billion at September 30, 2018 and increased by $107.0 million, or 2.0%, from $5.39 billion at June 30, 2018. Increases in deposit balances during the third quarter of 2018 were highlighted by a $157.1 million, or 9.8%, increase in money market account balances and a $2.1 million, or 0.2%, increase in NOW checking account balances. Offsetting these increases were a $21.2 million, or 1.3%, decrease in certificate of deposit balances, a $19.2 million, or 3.8%, decrease in savings deposit balances, and an $11.8 million, or 1.5%, decrease in demand deposit account balances.
Total Federal Home Loan Bank advances decreased by $112.5 million, or 12.2%, over the linked quarter as the Company utilized excess cash from deposit growth to pay off maturing advances.
Net Interest Income
Net interest income increased by $248,000, or 0.5%, on a linked quarter basis, to $48.4 million, primarily attributable to an increase in loan interest income of $3.1 million, or 5.4%, to $61.1 million. This increase was offset by an increase in interest expense of $2.8 million, or 14.8%, to $21.8 million. Average interest-earning assets increased by $86.5 million, or 1.3%, primarily due to growth in average loan balances, which increased by $102.7 million, or 1.9%. Average loan balance growth was driven by a $37.9 million, or 2.8%, increase in average residential real estate loans, a $29.8 million, or 9.2%, increase in average other consumer loans, a $25.8 million, or 3.2%, increase in average commercial business loans, and a $13.5 million, or 0.6%, increase in average commercial real estate loans. Slightly offsetting the increases was a $3.4 million, or 0.6%, decrease in average home equity loans.
Interest expense increased by $2.8 million, or 14.8%, to $21.8 million during the third quarter of 2018, from $18.9 million in the linked quarter. Average interest-bearing deposit balances increased by $185.4 million, or 4.1%, primarily driven by a $259.3 million, or 11.5%, increase in average NOW and money market account balances, which was slightly offset by a $16.2 million, or 3.1%, decrease in average savings account balances and a $57.7 million, or 3.3%, decrease in average certificates of deposits. Average non-interest bearing deposits increased by $12.0 million, or 1.6%, as compared to the linked quarter. Average Federal Home Loan Bank of Boston advances decreased by $115.0 million, or 12.0%, as the Company used funds obtained through deposit growth to pay down the maturing advances. The overall growth observed in average account balances is attributable to the continued success of the Company's municipal and commercial acquisition strategies.
The tax-equivalent net interest margin decreased by five basis points to 2.92% in the third quarter of 2018, from 2.97% in the linked period. The decline in the net interest margin was driven by a 17 basis point increase in the cost of interest-bearing liabilities, which was partially offset by a nine basis point increase in the yield of interest-earning assets. The interest-earning asset yield improvement was largely driven by a 15 basis point increase in the yield on commercial real estate loans, a 26 basis point increase in the yield on home equity loans, a five basis point increase in the yield on residential real estate loans, and a five basis point increase in the yield on other consumer loans. The total cost of funds increased by 16 basis points to 1.36% in the third quarter of 2018 driven by a 19 basis point increase in the cost of interest-bearing deposits and a 19 point basis point increase in the cost of Federal Home Loan Bank of Boston advances.
UBNK - United Financial Bancorp, Inc. | Page 2 | www.unitedfinancialinc.com |
Provision for Loan Losses
The provision for loan losses totaled $2.0 million for the quarter ended September 30, 2018 as compared to $2.4 million for the linked quarter. Net charge-offs for the quarter ended September 30, 2018 totaled $1.3 million, or 0.09%, as a percentage of average loans outstanding, as compared to $1.1 million, or 0.08%, as a percentage of average loans for the quarter ended June 30, 2018. 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 increased by $1.2 million, or 14.3%, to $9.6 million for the quarter ended September 30, 2018 from $8.4 million in the linked quarter. The increase in the third quarter's non-interest income was driven primarily by an increase in income from mortgage banking activities. Additionally, there were lower losses on limited partnership investments as compared to the linked quarter, which contributed to the overall increase in non-interest income. These increases were offset primarily by a decrease in bank-owned life insurance income, as well as net losses on sales of securities as compared to the linked quarter.
Non-Interest Expense
Non-interest expense for the quarter ended September 30, 2018 totaled $38.9 million and slightly increased by $573,000, or 1.5%, from the linked quarter. The increase in non-interest expense during the quarter was primarily due to increases in salaries and employee benefits and other non-interest expenses. These increases were primarily offset by decreases in occupancy and equipment and professional fees as compared to the linked quarter.
Asset Quality
Asset quality remained strong and stable for the period, with non-performing assets decreasing by $2.3 million to $29.0 million at September 30, 2018 from $31.3 million at June 30, 2018. The ratio of non-performing assets to total assets for the quarter ended September 30, 2018 was 0.40%, as compared to 0.43% in the linked quarter.
Capital
The Company reported Tangible Common Equity ("TCE") of $591.0 million, or 8.2% of average assets, for the quarter ended September 30, 2018. Tangible book value per share increased to $11.55 at September 30, 2018 from $11.40 at June 30, 2018. The increase was primarily driven by the impact of the Company's net income of $16.3 million, partially offset by the cash dividend payment to shareholders of $0.12 per share, as well as increases in accumulated other comprehensive losses 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 September 30, 2018 was $13.88, as compared to $13.73 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 October 26, 2018 and payable on November 6, 2018. This dividend equates to a 2.73% annualized yield based on the $17.59 average closing price of the Company’s common stock in the third quarter of 2018. The Company has paid dividends for 50 consecutive quarters.
UBNK - United Financial Bancorp, Inc. | Page 3 | www.unitedfinancialinc.com |
Investor Conference Call
United Financial Bancorp, Inc. will host a conference call on Wednesday, October 17, 2018 at 10:00 a.m. Eastern Time (ET) to discuss the Company’s third 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 October 31, 2018 by calling 1-877-344-7529 and entering conference number 10124821. 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.
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 September 30, 2018, the Company had $7.21 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.
UBNK - United Financial Bancorp, Inc. | Page 4 | www.unitedfinancialinc.com |
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.
UBNK - United Financial Bancorp, Inc. | Page 5 | www.unitedfinancialinc.com |
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||
Loans | $ | 61,061 | $ | 51,809 | $ | 173,799 | $ | 147,976 | ||||||||
Securities-taxable interest | 5,822 | 5,604 | 17,289 | 16,907 | ||||||||||||
Securities-non-taxable interest | 2,347 | 2,499 | 7,130 | 7,108 | ||||||||||||
Securities-dividends | 748 | 736 | 2,121 | 2,233 | ||||||||||||
Interest-bearing deposits | 213 | 151 | 476 | 303 | ||||||||||||
Total interest and dividend income | 70,191 | 60,799 | 200,815 | 174,527 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 15,767 | 9,185 | 39,658 | 23,607 | ||||||||||||
Borrowed funds | 5,995 | 4,846 | 18,004 | 13,527 | ||||||||||||
Total interest expense | 21,762 | 14,031 | 57,662 | 37,134 | ||||||||||||
Net interest income | 48,429 | 46,768 | 143,153 | 137,393 | ||||||||||||
Provision for loan losses | 2,007 | 2,566 | 6,296 | 7,146 | ||||||||||||
Net interest income after provision for loan losses | 46,422 | 44,202 | 136,857 | 130,247 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges and fees | 6,623 | 6,514 | 19,324 | 19,343 | ||||||||||||
Net (loss) gain from sales of securities | (58 | ) | 158 | 120 | 710 | |||||||||||
Income from mortgage banking activities | 1,486 | 1,204 | 4,061 | 4,355 | ||||||||||||
Bank-owned life insurance income | 1,460 | 1,167 | 4,777 | 3,523 | ||||||||||||
Net loss on limited partnership investments | (221 | ) | (864 | ) | (1,771 | ) | (1,582 | ) | ||||||||
Other income | 265 | 247 | 693 | 635 | ||||||||||||
Total non-interest income | 9,555 | 8,426 | 27,204 | 26,984 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 22,643 | 20,005 | 65,954 | 59,309 | ||||||||||||
Service bureau fees | 2,209 | 2,336 | 6,592 | 6,959 | ||||||||||||
Occupancy and equipment | 4,487 | 3,740 | 14,104 | 11,866 | ||||||||||||
Professional fees | 1,013 | 1,048 | 3,282 | 3,309 | ||||||||||||
Marketing and promotions | 1,119 | 1,087 | 2,993 | 3,036 | ||||||||||||
FDIC insurance assessments | 655 | 780 | 2,129 | 2,255 | ||||||||||||
Core deposit intangible amortization | 288 | 337 | 930 | 1,075 | ||||||||||||
Other | 6,529 | 5,929 | 18,065 | 17,704 | ||||||||||||
Total non-interest expense | 38,943 | 35,262 | 114,049 | 105,513 | ||||||||||||
Income before income taxes | 17,034 | 17,366 | 50,012 | 51,718 | ||||||||||||
Provision for income taxes | 726 | 2,175 | 2,271 | 6,601 | ||||||||||||
Net income | $ | 16,308 | $ | 15,191 | $ | 47,741 | $ | 45,117 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.32 | $ | 0.30 | $ | 0.94 | $ | 0.90 | ||||||||
Diluted | $ | 0.32 | $ | 0.30 | $ | 0.94 | $ | 0.89 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 50,624,832 | 50,263,602 | 50,535,569 | 50,246,234 | ||||||||||||
Diluted | 51,104,776 | 50,889,987 | 51,026,105 | 50,888,175 | ||||||||||||
F - 1 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
For the Three Months Ended | ||||||||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
Interest and dividend income: | (In thousands, except share data) | |||||||||||||||||||
Loans | $ | 61,061 | $ | 57,958 | $ | 54,780 | $ | 52,758 | $ | 51,809 | ||||||||||
Securities-taxable interest | 5,822 | 5,969 | 5,498 | 5,643 | 5,604 | |||||||||||||||
Securities-non-taxable interest | 2,347 | 2,354 | 2,429 | 2,571 | 2,499 | |||||||||||||||
Securities-dividends | 748 | 736 | 637 | 669 | 736 | |||||||||||||||
Interest-bearing deposits | 213 | 113 | 150 | 86 | 151 | |||||||||||||||
Total interest and dividend income | 70,191 | 67,130 | 63,494 | 61,727 | 60,799 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 15,767 | 12,864 | 11,027 | 9,958 | 9,185 | |||||||||||||||
Borrowed funds | 5,995 | 6,085 | 5,924 | 4,920 | 4,846 | |||||||||||||||
Total interest expense | 21,762 | 18,949 | 16,951 | 14,878 | 14,031 | |||||||||||||||
Net interest income | 48,429 | 48,181 | 46,543 | 46,849 | 46,768 | |||||||||||||||
Provision for loan losses | 2,007 | 2,350 | 1,939 | 2,250 | 2,566 | |||||||||||||||
Net interest income after provision for loan losses | 46,422 | 45,831 | 44,604 | 44,599 | 44,202 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Service charges and fees | 6,623 | 6,542 | 6,159 | 6,031 | 6,514 | |||||||||||||||
Net (loss) gain from sales of securities | (58 | ) | 62 | 116 | 72 | 158 | ||||||||||||||
Income from mortgage banking activities | 1,486 | 846 | 1,729 | 1,184 | 1,204 | |||||||||||||||
Bank-owned life insurance income | 1,460 | 1,671 | 1,646 | 1,939 | 1,167 | |||||||||||||||
Net loss on limited partnership investments | (221 | ) | (960 | ) | (590 | ) | (1,441 | ) | (864 | ) | ||||||||||
Other income (loss) | 265 | 199 | 229 | (204 | ) | 247 | ||||||||||||||
Total non-interest income | 9,555 | 8,360 | 9,289 | 7,581 | 8,426 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | 22,643 | 22,113 | 21,198 | 20,752 | 20,005 | |||||||||||||||
Service bureau fees | 2,209 | 2,165 | 2,218 | 2,304 | 2,336 | |||||||||||||||
Occupancy and equipment | 4,487 | 4,668 | 4,949 | 5,036 | 3,740 | |||||||||||||||
Professional fees | 1,013 | 1,105 | 1,164 | 996 | 1,048 | |||||||||||||||
Marketing and promotions | 1,119 | 1,189 | 685 | 1,011 | 1,087 | |||||||||||||||
FDIC insurance assessments | 655 | 735 | 739 | 821 | 780 | |||||||||||||||
Core deposit intangible amortization | 288 | 305 | 337 | 336 | 337 | |||||||||||||||
Other | 6,529 | 6,090 | 5,446 | 5,981 | 5,929 | |||||||||||||||
Total non-interest expense | 38,943 | 38,370 | 36,736 | 37,237 | 35,262 | |||||||||||||||
Income before income taxes | 17,034 | 15,821 | 17,157 | 14,943 | 17,366 | |||||||||||||||
Provision for income taxes | 726 | 175 | 1,370 | 5,442 | 2,175 | |||||||||||||||
Net income | $ | 16,308 | $ | 15,646 | $ | 15,787 | $ | 9,501 | $ | 15,191 | ||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.19 | $ | 0.30 | ||||||||||
Diluted | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.19 | $ | 0.30 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 50,624,832 | 50,504,273 | 50,474,942 | 50,392,382 | 50,263,602 | |||||||||||||||
Diluted | 51,104,776 | 50,974,283 | 50,996,596 | 51,024,881 | 50,889,987 | |||||||||||||||
F - 2 | ||
United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
ASSETS | (In thousands) | |||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash and due from banks | $ | 48,786 | $ | 62,188 | $ | 45,332 | $ | 56,661 | $ | 59,456 | ||||||||||
Short-term investments | 29,809 | 46,987 | 23,910 | 32,007 | 39,061 | |||||||||||||||
Total cash and cash equivalents | 78,595 | 109,175 | 69,242 | 88,668 | 98,517 | |||||||||||||||
Available for sale securities – At fair value | 972,035 | 1,006,135 | 1,031,277 | 1,050,787 | 1,068,055 | |||||||||||||||
Held to maturity securities – At amortized cost | — | — | — | 13,598 | 13,693 | |||||||||||||||
Loans held for sale | 86,948 | 85,458 | 63,394 | 114,073 | 89,419 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial real estate loans: | ||||||||||||||||||||
Owner-occupied | 434,906 | 418,338 | 442,938 | 445,820 | 442,989 | |||||||||||||||
Investor non-owner occupied | 1,888,848 | 1,927,960 | 1,842,898 | 1,854,459 | 1,777,716 | |||||||||||||||
Construction | 78,235 | 82,883 | 84,717 | 78,083 | 82,688 | |||||||||||||||
Total commercial real estate loans | 2,401,989 | 2,429,181 | 2,370,553 | 2,378,362 | 2,303,393 | |||||||||||||||
Commercial business loans | 861,030 | 841,142 | 846,182 | 840,312 | 821,372 | |||||||||||||||
Consumer loans: | ||||||||||||||||||||
Residential real estate | 1,283,126 | 1,252,001 | 1,235,197 | 1,204,401 | 1,211,783 | |||||||||||||||
Home equity | 579,907 | 588,638 | 582,285 | 583,180 | 561,814 | |||||||||||||||
Residential construction | 32,750 | 32,063 | 37,579 | 40,947 | 39,460 | |||||||||||||||
Other consumer | 369,781 | 332,402 | 310,439 | 292,781 | 267,921 | |||||||||||||||
Total consumer loans | 2,265,564 | 2,205,104 | 2,165,500 | 2,121,309 | 2,080,978 | |||||||||||||||
Total loans | 5,528,583 | 5,475,427 | 5,382,235 | 5,339,983 | 5,205,743 | |||||||||||||||
Net deferred loan costs and premiums | 16,603 | 15,502 | 14,724 | 14,794 | 15,297 | |||||||||||||||
Allowance for loan losses | (49,909 | ) | (49,163 | ) | (47,915 | ) | (47,099 | ) | (46,368 | ) | ||||||||||
Loans receivable - net | 5,495,277 | 5,441,766 | 5,349,044 | 5,307,678 | 5,174,672 | |||||||||||||||
Federal Home Loan Bank of Boston stock, at cost | 42,032 | 46,734 | 49,895 | 50,194 | 46,758 | |||||||||||||||
Accrued interest receivable | 25,485 | 23,209 | 22,333 | 22,332 | 20,893 | |||||||||||||||
Deferred tax asset, net | 31,473 | 30,190 | 28,710 | 25,656 | 30,999 | |||||||||||||||
Premises and equipment, net | 67,612 | 67,614 | 67,619 | 67,508 | 61,063 | |||||||||||||||
Goodwill | 115,281 | 115,281 | 115,281 | 115,281 | 115,281 | |||||||||||||||
Core deposit intangible asset | 3,560 | 3,849 | 4,154 | 4,491 | 4,827 | |||||||||||||||
Cash surrender value of bank-owned life insurance | 181,928 | 180,490 | 179,556 | 148,300 | 171,300 | |||||||||||||||
Other assets | 107,272 | 98,695 | 88,169 | 105,593 | 81,019 | |||||||||||||||
Total assets | $ | 7,207,498 | $ | 7,208,596 | $ | 7,068,674 | $ | 7,114,159 | $ | 6,976,496 | ||||||||||
F - 3 | ||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest-bearing | $ | 759,210 | $ | 770,982 | $ | 753,575 | $ | 778,576 | $ | 725,130 | ||||||||||
Interest-bearing | 4,741,153 | 4,622,394 | 4,528,935 | 4,419,645 | 4,427,892 | |||||||||||||||
Total deposits | 5,500,363 | 5,393,376 | 5,282,510 | 5,198,221 | 5,153,022 | |||||||||||||||
Mortgagors’ and investor escrow accounts | 9,597 | 14,526 | 11,096 | 7,545 | 9,641 | |||||||||||||||
Federal Home Loan Bank advances and other borrowings | 926,592 | 1,041,896 | 1,030,735 | 1,165,054 | 1,068,814 | |||||||||||||||
Accrued expenses and other liabilities | 61,128 | 56,921 | 51,333 | 50,011 | 54,366 | |||||||||||||||
Total liabilities | 6,497,680 | 6,506,719 | 6,375,674 | 6,420,831 | 6,285,843 | |||||||||||||||
Total stockholders’ equity | 709,818 | 701,877 | 693,000 | 693,328 | 690,653 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,207,498 | $ | 7,208,596 | $ | 7,068,674 | $ | 7,114,159 | $ | 6,976,496 | ||||||||||
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 | |||||||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||||||
Share Data: | |||||||||||||||||||
Basic net income per share | $ | 0.32 | $ | 0.31 | $ | 0.31 | $ | 0.19 | $ | 0.30 | |||||||||
Diluted net income per share | 0.32 | 0.31 | 0.31 | 0.19 | 0.30 | ||||||||||||||
Dividends declared per share | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | ||||||||||||||
Tangible book value per share | $ | 11.55 | $ | 11.40 | $ | 11.25 | $ | 11.24 | $ | 11.23 | |||||||||
Key Statistics: | |||||||||||||||||||
Total revenue | $ | 57,984 | $ | 56,541 | $ | 55,832 | $ | 54,430 | $ | 55,194 | |||||||||
Total non-interest expense | 38,943 | 38,370 | 36,736 | 37,327 | 35,262 | ||||||||||||||
Average earning assets | 6,671,424 | 6,584,938 | 6,568,168 | 6,480,966 | 6,423,741 | ||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets (annualized) | 0.91 | % | 0.88 | % | 0.89 | % | 0.54 | % | 0.88 | % | |||||||||
Return on average equity (annualized) | 9.26 | % | 9.00 | % | 9.15 | % | 5.50 | % | 8.92 | % | |||||||||
Tax-equivalent net interest margin (annualized) | 2.92 | % | 2.97 | % | 2.90 | % | 2.98 | % | 3.00 | % | |||||||||
Residential Mortgage Production: | |||||||||||||||||||
Dollar volume (total) | $ | 143,673 | $ | 140,409 | $ | 94,433 | $ | 135,522 | $ | 133,462 | |||||||||
Mortgages originated for purchases | 111,555 | 110,351 | 63,193 | 83,181 | 97,132 | ||||||||||||||
Loans sold | 99,372 | 99,637 | 99,899 | 94,738 | 152,551 | ||||||||||||||
Income from mortgage banking activities | 1,486 | 846 | 1,729 | 1,184 | 1,204 | ||||||||||||||
Non-performing Assets: | |||||||||||||||||||
Residential real estate | $ | 11,949 | $ | 11,221 | $ | 11,663 | $ | 11,824 | $ | 11,330 | |||||||||
Home equity | 4,005 | 4,607 | 4,698 | 4,968 | 4,206 | ||||||||||||||
Investor-owned commercial real estate | 1,525 | 2,400 | 2,863 | 1,821 | 2,957 | ||||||||||||||
Owner-occupied commercial real estate | 1,202 | 2,176 | 2,326 | 1,664 | 2,084 | ||||||||||||||
Construction | 243 | 250 | 273 | 1,398 | 1,748 | ||||||||||||||
Commercial business | 985 | 1,196 | 1,579 | 1,477 | 2,427 | ||||||||||||||
Other consumer | 597 | 237 | 34 | 35 | 37 | ||||||||||||||
Non-accrual loans | 20,506 | 22,087 | 23,436 | 23,187 | 24,789 | ||||||||||||||
Troubled debt restructured – non-accruing | 6,706 | 7,330 | 8,308 | 8,475 | 6,628 | ||||||||||||||
Total non-performing loans | 27,212 | 29,417 | 31,744 | 31,662 | 31,417 | ||||||||||||||
Other real estate owned | 1,808 | 1,855 | 1,935 | 2,154 | 2,444 | ||||||||||||||
Total non-performing assets | $ | 29,020 | $ | 31,272 | $ | 33,679 | $ | 33,816 | $ | 33,861 | |||||||||
Non-performing loans to total loans | 0.49 | % | 0.54 | % | 0.59 | % | 0.59 | % | 0.60 | % | |||||||||
Non-performing assets to total assets | 0.40 | % | 0.43 | % | 0.48 | % | 0.48 | % | 0.49 | % | |||||||||
Allowance for loan losses to non-performing loans | 183.41 | % | 167.12 | % | 150.94 | % | 148.76 | % | 147.59 | % | |||||||||
Allowance for loan losses to total loans | 0.90 | % | 0.90 | % | 0.89 | % | 0.88 | % | 0.89 | % | |||||||||
Non-GAAP Ratios: (1) | |||||||||||||||||||
Non-interest expense to average assets (annualized) | 2.17 | % | 2.16 | % | 2.08 | % | 2.13 | % | 2.04 | % | |||||||||
Efficiency ratio (2) | 65.73 | % | 65.18 | % | 63.97 | % | 63.53 | % | 60.47 | % | |||||||||
Cost of funds (annualized) (3) | 1.36 | % | 1.20 | % | 1.07 | % | 0.96 | % | 0.91 | % | |||||||||
Total revenue growth rate | 2.55 | % | 1.27 | % | 2.58 | % | (1.38 | )% | (1.71 | )% | |||||||||
Total revenue growth rate (annualized) | 10.21 | % | 5.08 | % | 10.30 | % | (5.54 | )% | (6.84 | )% | |||||||||
Average earning asset growth rate | 1.31 | % | 0.26 | % | 1.35 | % | 0.89 | % | 1.89 | % | |||||||||
Average earning asset growth rate (annualized) | 5.25 | % | 1.02 | % | 5.38 | % | 3.56 | % | 7.54 | % | |||||||||
Return on average tangible common equity (annualized) (2) | 11.30 | % | 11.03 | % | 11.25 | % | 6.81 | % | 10.99 | % | |||||||||
Pre-provision net revenue to average assets (2) | 1.11 | % | 1.14 | % | 1.15 | % | 1.19 | % | 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-12. |
(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 | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,375,948 | $ | 12,451 | 3.65 | % | $ | 1,323,262 | $ | 11,017 | 3.33 | % | |||||||||
Commercial real estate | 2,320,375 | 26,105 | 4.40 | 2,211,601 | 23,063 | 4.08 | |||||||||||||||
Construction | 114,068 | 1,379 | 4.73 | 122,511 | 1,301 | 4.16 | |||||||||||||||
Commercial business | 841,936 | 9,428 | 4.38 | 791,547 | 8,163 | 4.04 | |||||||||||||||
Home equity | 584,706 | 7,471 | 5.07 | 536,509 | 5,917 | 4.38 | |||||||||||||||
Other consumer | 351,892 | 4,532 | 5.11 | 252,532 | 3,063 | 4.81 | |||||||||||||||
Investment securities | 995,405 | 8,686 | 3.48 | 1,090,559 | 9,621 | 3.52 | |||||||||||||||
Federal Home Loan Bank stock | 45,016 | 715 | 6.35 | 51,722 | 572 | 4.43 | |||||||||||||||
Other earning assets | 42,078 | 216 | 2.04 | 43,498 | 151 | 1.38 | |||||||||||||||
Total interest-earning assets | 6,671,424 | 70,983 | 4.21 | 6,423,741 | 62,868 | 3.86 | |||||||||||||||
Allowance for loan losses | (49,823 | ) | (46,479 | ) | |||||||||||||||||
Non-interest-earning assets | 569,471 | 529,937 | |||||||||||||||||||
Total assets | $ | 7,191,072 | $ | 6,907,199 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,515,660 | $ | 8,461 | 1.33 | % | $ | 2,105,796 | $ | 3,992 | 0.75 | % | |||||||||
Savings | 501,700 | 75 | 0.06 | 527,641 | 77 | 0.06 | |||||||||||||||
Certificates of deposit | 1,691,382 | 7,231 | 1.70 | 1,731,658 | 5,116 | 1.17 | |||||||||||||||
Total interest-bearing deposits | 4,708,742 | 15,767 | 1.33 | 4,365,095 | 9,185 | 0.83 | |||||||||||||||
Federal Home Loan Bank advances | 844,207 | 4,591 | 2.13 | 951,760 | 3,404 | 1.40 | |||||||||||||||
Other borrowings | 111,760 | 1,404 | 4.92 | 135,173 | 1,442 | 4.18 | |||||||||||||||
Total interest-bearing liabilities | 5,664,709 | 21,762 | 1.52 | 5,452,028 | 14,031 | 1.02 | |||||||||||||||
Non-interest-bearing deposits | 750,503 | 702,916 | |||||||||||||||||||
Other liabilities | 71,554 | 70,853 | |||||||||||||||||||
Total liabilities | 6,486,766 | 6,225,797 | |||||||||||||||||||
Stockholders’ equity | 704,306 | 681,402 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,191,072 | $ | 6,907,199 | |||||||||||||||||
Net interest-earning assets | $ | 1,006,715 | $ | 971,713 | |||||||||||||||||
Tax-equivalent net interest income | 49,221 | 48,837 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.69 | % | 2.84 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.92 | % | 3.00 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.77 | % | 117.82 | % | |||||||||||||||||
Less tax-equivalent adjustment | 792 | 2,069 | |||||||||||||||||||
Net interest income | $ | 48,429 | $ | 46,768 | |||||||||||||||||
(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.
F - 6 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Three Months Ended | |||||||||||||||||||||
September 30, 2018 | June 30, 2018 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,375,948 | $ | 12,451 | 3.65 | % | $ | 1,338,021 | $ | 12,020 | 3.60 | % | |||||||||
Commercial real estate | 2,320,375 | 26,105 | 4.40 | 2,306,896 | 24,762 | 4.25 | |||||||||||||||
Construction | 114,068 | 1,379 | 4.73 | 114,987 | 1,331 | 4.58 | |||||||||||||||
Commercial business | 841,936 | 9,428 | 4.38 | 816,102 | 9,139 | 4.43 | |||||||||||||||
Home equity | 584,706 | 7,471 | 5.07 | 588,080 | 7,058 | 4.81 | |||||||||||||||
Other consumer | 351,892 | 4,532 | 5.11 | 322,103 | 4,062 | 5.06 | |||||||||||||||
Investment securities | 995,405 | 8,686 | 3.48 | 1,019,491 | 8,998 | 3.53 | |||||||||||||||
Federal Home Loan Bank stock | 45,016 | 715 | 6.35 | 49,136 | 703 | 5.72 | |||||||||||||||
Other earning assets | 42,078 | 216 | 2.04 | 30,122 | 116 | 1.55 | |||||||||||||||
Total interest-earning assets | 6,671,424 | 70,983 | 4.21 | 6,584,938 | 68,189 | 4.12 | |||||||||||||||
Allowance for loan losses | (49,823 | ) | (48,624 | ) | |||||||||||||||||
Non-interest-earning assets | 569,471 | 555,407 | |||||||||||||||||||
Total assets | $ | 7,191,072 | $ | 7,091,721 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,515,660 | $ | 8,461 | 1.33 | % | $ | 2,256,323 | $ | 6,163 | 1.10 | % | |||||||||
Savings | 501,700 | 75 | 0.06 | 517,910 | 77 | 0.06 | |||||||||||||||
Certificates of deposit | 1,691,382 | 7,231 | 1.70 | 1,749,097 | 6,624 | 1.52 | |||||||||||||||
Total interest-bearing deposits | 4,708,742 | 15,767 | 1.33 | 4,523,330 | 12,864 | 1.14 | |||||||||||||||
Federal Home Loan Bank advances | 844,207 | 4,591 | 2.13 | 959,248 | 4,692 | 1.94 | |||||||||||||||
Other borrowings | 111,760 | 1,404 | 4.92 | 112,112 | 1,393 | 4.91 | |||||||||||||||
Total interest-bearing liabilities | 5,664,709 | 21,762 | 1.52 | 5,594,690 | 18,949 | 1.35 | |||||||||||||||
Non-interest-bearing deposits | 750,503 | 738,484 | |||||||||||||||||||
Other liabilities | 71,554 | 63,246 | |||||||||||||||||||
Total liabilities | 6,486,766 | 6,396,420 | |||||||||||||||||||
Stockholders’ equity | 704,306 | 695,301 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,191,072 | $ | 7,091,721 | |||||||||||||||||
Net interest-earning assets | $ | 1,006,715 | $ | 990,248 | |||||||||||||||||
Tax-equivalent net interest income | 49,221 | 49,240 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.69 | % | 2.77 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.92 | % | 2.97 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.77 | % | 117.70 | % | |||||||||||||||||
Less tax-equivalent adjustment | 792 | 1,059 | |||||||||||||||||||
Net interest income | $ | 48,429 | $ | 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.
F - 7 | ||
United Financial Bancorp, Inc. and Subsidiaries
Average Balance Sheets, Interest and Yields/Costs
(Dollars In Thousands)
(Unaudited)
For the Nine Months Ended | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost | Average Balance | Interest and Dividends | Yield/Cost | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Residential real estate | $ | 1,342,955 | $ | 35,977 | 3.59 | % | $ | 1,285,618 | $ | 32,079 | 3.33 | % | |||||||||
Commercial real estate | 2,303,188 | 74,522 | 4.27 | 2,155,085 | 65,626 | 4.02 | |||||||||||||||
Construction | 116,144 | 4,035 | 4.58 | 132,158 | 4,261 | 4.25 | |||||||||||||||
Commercial business | 833,612 | 26,949 | 4.26 | 767,738 | 22,510 | 3.87 | |||||||||||||||
Home equity | 583,876 | 21,056 | 4.82 | 533,669 | 16,876 | 4.23 | |||||||||||||||
Other consumer | 324,802 | 12,394 | 5.10 | 231,892 | 8,581 | 4.95 | |||||||||||||||
Investment securities | 1,018,609 | 26,305 | 3.44 | 1,086,574 | 28,366 | 3.48 | |||||||||||||||
Federal Home Loan Bank stock | 48,513 | 2,024 | 5.56 | 53,005 | 1,630 | 4.10 | |||||||||||||||
Other earning assets | 36,856 | 487 | 1.77 | 36,049 | 303 | 1.12 | |||||||||||||||
Total interest-earning assets | 6,608,555 | 203,749 | 4.09 | 6,281,788 | 180,232 | 3.80 | |||||||||||||||
Allowance for loan losses | (48,750 | ) | (45,008 | ) | |||||||||||||||||
Non-interest-earning assets | 559,792 | 521,629 | |||||||||||||||||||
Total assets | $ | 7,119,597 | $ | 6,758,409 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
NOW and money market | $ | 2,307,660 | $ | 19,517 | 1.13 | % | $ | 1,960,685 | $ | 8,996 | 0.61 | % | |||||||||
Savings | 510,137 | 225 | 0.06 | 532,718 | 235 | 0.06 | |||||||||||||||
Certificates of deposit | 1,745,332 | 19,916 | 1.53 | 1,720,120 | 14,376 | 1.12 | |||||||||||||||
Total interest-bearing deposits | 4,563,129 | 39,658 | 1.16 | 4,213,523 | 23,607 | 0.75 | |||||||||||||||
Federal Home Loan Bank advances | 945,085 | 13,829 | 1.93 | 986,935 | 9,225 | 1.23 | |||||||||||||||
Other borrowings | 113,937 | 4,175 | 4.83 | 138,685 | 4,302 | 4.09 | |||||||||||||||
Total interest-bearing liabilities | 5,622,151 | 57,662 | 1.37 | 5,339,143 | 37,134 | 0.93 | |||||||||||||||
Non-interest-bearing deposits | 734,253 | 680,786 | |||||||||||||||||||
Other liabilities | 66,491 | 68,499 | |||||||||||||||||||
Total liabilities | 6,422,895 | 6,088,428 | |||||||||||||||||||
Stockholders’ equity | 696,702 | 669,981 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,119,597 | $ | 6,758,409 | |||||||||||||||||
Net interest-earning assets | $ | 986,404 | $ | 942,645 | |||||||||||||||||
Tax-equivalent net interest income | 146,087 | 143,098 | |||||||||||||||||||
Tax-equivalent net interest rate spread (1) | 2.72 | % | 2.87 | % | |||||||||||||||||
Tax-equivalent net interest margin (2) | 2.93 | % | 3.02 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 117.54 | % | 117.66 | % | |||||||||||||||||
Less tax-equivalent adjustment | 2,934 | 5,705 | |||||||||||||||||||
Net interest income | $ | 143,153 | $ | 137,393 | |||||||||||||||||
(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.
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-12 in the following press release tables:
F - 9 | ||
Three Months Ended | |||||||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Net Income (GAAP) | $ | 16,308 | $ | 15,646 | $ | 15,787 | $ | 9,501 | $ | 15,191 | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Non-interest income | 58 | (271 | ) | (342 | ) | 745 | (158 | ) | |||||||||||
Non-interest expense | (129 | ) | 215 | — | 536 | — | |||||||||||||
Income tax expense related to tax reform | — | — | — | 1,609 | — | ||||||||||||||
Related income tax (benefit) expense | 15 | (93 | ) | 72 | 2,074 | 55 | |||||||||||||
Net adjustment | (56 | ) | (149 | ) | (270 | ) | 4,964 | (103 | ) | ||||||||||
Total net income (non-GAAP) | $ | 16,252 | $ | 15,497 | $ | 15,517 | $ | 14,465 | $ | 15,088 | |||||||||
Non-interest income (GAAP) | $ | 9,555 | $ | 8,360 | $ | 9,289 | $ | 7,581 | $ | 8,426 | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Net loss (gain) on sales of securities | 58 | (62 | ) | (116 | ) | (72 | ) | (158 | ) | ||||||||||
Limited partnership writedown (1) | — | — | — | 1,214 | — | ||||||||||||||
Loss on sale of premises and equipment | — | — | — | 401 | — | ||||||||||||||
BOLI claim benefit | — | (209 | ) | (226 | ) | (798 | ) | — | |||||||||||
Net adjustment | 58 | (271 | ) | (342 | ) | 745 | (158 | ) | |||||||||||
Total non-interest income (non-GAAP) | 9,613 | 8,089 | 8,947 | 8,326 | 8,268 | ||||||||||||||
Total net interest income | 48,429 | 48,181 | 46,543 | 46,849 | 46,768 | ||||||||||||||
Total revenue (non-GAAP) | $ | 58,042 | $ | 56,270 | $ | 55,490 | $ | 55,175 | $ | 55,036 | |||||||||
Non-interest expense (GAAP) | $ | 38,943 | $ | 38,370 | $ | 36,736 | $ | 37,237 | $ | 35,262 | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Lease exit/disposal cost obligation | 129 | (215 | ) | — | (536 | ) | — | ||||||||||||
Net adjustment | 129 | (215 | ) | — | (536 | ) | — | ||||||||||||
Total non-interest expense (non-GAAP) | $ | 39,072 | $ | 38,155 | $ | 36,736 | $ | 36,701 | $ | 35,262 | |||||||||
Total loans | $ | 5,528,583 | $ | 5,475,427 | $ | 5,382,235 | $ | 5,339,983 | $ | 5,205,743 | |||||||||
Non-covered loans (2) | (708,621 | ) | (729,947 | ) | (771,802 | ) | (780,776 | ) | (739,376 | ) | |||||||||
Total covered loans | $ | 4,819,962 | $ | 4,745,480 | $ | 4,610,433 | $ | 4,559,207 | $ | 4,466,367 | |||||||||
Allowance for loan losses | $ | 49,909 | $ | 49,163 | $ | 47,915 | $ | 47,099 | $ | 46,368 | |||||||||
Allowance for loan losses to total loans | 0.90 | % | 0.90 | % | 0.89 | % | 0.88 | % | 0.89 | % | |||||||||
Allowance for loan losses to total covered loans | 1.04 | % | 1.04 | % | 1.04 | % | 1.03 | % | 1.04 | % | |||||||||
(2) Represents acquired loans that were recorded at fair value. These loans carry no allowance for loan losses for the periods reflected above.
F - 10 | ||
Three Months Ended | ||||||||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
Efficiency Ratio: | ||||||||||||||||||||
Non-Interest Expense (GAAP) | $ | 38,943 | $ | 38,370 | $ | 36,736 | $ | 37,237 | $ | 35,262 | ||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Other real estate owned expense | (256 | ) | (163 | ) | (167 | ) | (157 | ) | (211 | ) | ||||||||||
Lease exit/disposal cost obligation | 129 | (215 | ) | — | (536 | ) | — | |||||||||||||
Non-Interest Expense for Efficiency Ratio (non-GAAP) | $ | 38,816 | $ | 37,992 | $ | 36,569 | $ | 36,544 | $ | 35,051 | ||||||||||
Net Interest Income (GAAP) | $ | 48,429 | $ | 48,181 | $ | 46,543 | $ | 46,849 | $ | 46,768 | ||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Tax-equivalent adjustment for tax-exempt loans and investment securities | 792 | 1,059 | 1,083 | 2,117 | 2,069 | |||||||||||||||
Non-Interest Income (GAAP) | 9,555 | 8,360 | 9,289 | 7,581 | 8,426 | |||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Net loss (gain) on sales of securities | 58 | (62 | ) | (116 | ) | (72 | ) | (158 | ) | |||||||||||
Net loss on limited partnership investments | 221 | 960 | 590 | 1,441 | 864 | |||||||||||||||
Loss on sale of premises and equipment | — | — | — | 401 | — | |||||||||||||||
BOLI claim benefit | — | (209 | ) | (226 | ) | (798 | ) | — | ||||||||||||
Total Revenue for Efficiency Ratio (non-GAAP) | $ | 59,055 | $ | 58,289 | $ | 57,163 | $ | 57,519 | $ | 57,969 | ||||||||||
Efficiency Ratio (Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP)) | 65.73 | % | 65.18 | % | 63.97 | % | 63.53 | % | 60.47 | % | ||||||||||
F - 11 | ||
Three Months Ended | ||||||||||||||||||||
September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
Pre-Provision Net Revenue ("PPNR") to Average Assets (Annualized): | ||||||||||||||||||||
Net Interest income (GAAP) | $ | 48,429 | $ | 48,181 | $ | 46,543 | $ | 46,849 | $ | 46,768 | ||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Tax-equivalent adjustment for tax-exempt loans and investment securities | 792 | 1,059 | 1,083 | 2,117 | 2,069 | |||||||||||||||
Total tax-equivalent net interest income (A) | $ | 49,221 | $ | 49,240 | $ | 47,626 | $ | 48,966 | $ | 48,837 | ||||||||||
Non Interest Income (GAAP) | 9,555 | 8,360 | 9,289 | 7,581 | 8,426 | |||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Net loss (gain) on sales of securities | 58 | (62 | ) | (116 | ) | (72 | ) | (158 | ) | |||||||||||
Net loss on limited partnership investments | 221 | 960 | 590 | 1,441 | 864 | |||||||||||||||
Loss on sale of premises and equipment | — | — | — | 401 | — | |||||||||||||||
BOLI claim benefit | — | (209 | ) | (226 | ) | (798 | ) | — | ||||||||||||
Non-Interest Income for PPNR (non-GAAP) (B) | $ | 9,834 | $ | 9,049 | $ | 9,537 | $ | 8,553 | $ | 9,132 | ||||||||||
Non-Interest Expense (GAAP) | $ | 38,943 | $ | 38,370 | $ | 36,736 | $ | 37,237 | $ | 35,262 | ||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Lease exit/disposal cost obligation | 129 | (215 | ) | — | (536 | ) | — | |||||||||||||
Non-Interest Expense for PPNR (non-GAAP) (C) | $ | 39,072 | $ | 38,155 | $ | 36,736 | $ | 36,701 | $ | 35,262 | ||||||||||
Total PPNR (non-GAAP) (A + B - C) : | $ | 19,983 | $ | 20,134 | $ | 20,427 | $ | 20,818 | $ | 22,707 | ||||||||||
Average Assets | 7,191,072 | 7,091,721 | 7,074,721 | 6,976,682 | 6,907,199 | |||||||||||||||
PPNR to Average Assets (Annualized) | 1.11 | % | 1.14 | % | 1.15 | % | 1.19 | % | 1.31 | % | ||||||||||
Return on Average Tangible Common Equity (Annualized): | ||||||||||||||||||||
Net Income (GAAP) | $ | 16,308 | $ | 15,646 | $ | 15,787 | $ | 9,501 | $ | 15,191 | ||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Intangible assets amortization, tax effected (1) | 228 | 241 | 266 | 219 | 219 | |||||||||||||||
Net Income excluding intangible assets amortization, tax effected (1) | $ | 16,536 | $ | 15,887 | $ | 16,053 | $ | 9,720 | $ | 15,410 | ||||||||||
Average stockholders' equity (non-GAAP) | $ | 704,306 | $ | 695,301 | $ | 690,345 | $ | 691,004 | $ | 681,402 | ||||||||||
Average goodwill & other intangible assets (non-GAAP) | 119,009 | 119,288 | 119,611 | 119,962 | 120,275 | |||||||||||||||
Average tangible common stockholders' equity (non-GAAP) | $ | 585,297 | $ | 576,013 | $ | 570,734 | $ | 571,042 | $ | 561,127 | ||||||||||
Return on Average Tangible Common Equity (non-GAAP) | 11.30 | % | 11.03 | % | 11.25 | % | 6.81 | % | 10.99 | % | ||||||||||
(1) Intangible assets amortization is tax effected at 21% for the three months ended September 30, 2018, June 30, 2018 and March 31, 2018, and at 35% for all prior periods due to the Tax Cuts and Jobs Act of 2017 that was signed into law in December 2017, lowering the corporate federal tax rate from 35% to 21%.
F - 12 | ||