EX-99.1 2 ex-99120170930.htm EXHIBIT 99.1 Exhibit



Exhibit 99.1
 a8kgraphica01a01a11.jpg
 
 
 
For Immediate Release:
 
October 17, 2017
 
 
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 17, 2017 – 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, 2017.

The Company reported net income of $15.2 million, or $0.30 per diluted share, for the quarter ended September 30, 2017, compared to net income for the linked quarter of $16.2 million, or $0.32 per diluted share. The Company reported net income of $14.2 million, or $0.28 per diluted share, for the quarter ended September 30, 2016.

"Management remains focused on our Four Key Objectives outlined in April 2016. In the third quarter of 2017, we delivered 7% year-over-year diluted earnings per share ("EPS") growth, 8% annualized linked quarter tangible book value growth, and delivered 40% of net earnings to our shareholders via a cash dividend, all while maintaining strong capital, liquidity, and asset quality. Annualized loan and deposit growth was 12% and 13%, respectively, for the quarter," stated William H.W. Crawford, IV, Chief Executive Officer of the Company and the Bank. "As always, I want to thank our United Bank teammates for their relentless focus on serving our customers and communities."

Balance Sheet

Assets totaled $6.98 billion at September 30, 2017 and increased $100.3 million, or 1.5%, from $6.88 billion at June 30, 2017. At September 30, 2017, total loans were $5.21 billion, representing an increase of $151.6 million, or 3.0%, from the linked quarter. Changes to loan balances during the third quarter of 2017 were highlighted by a $28.5 million, or 3.6%, increase in commercial business loans, a $23.7 million, or 4.4%, increase in home equity loans, and a $13.1 million, or 3.1%, increase in owner-occupied commercial real estate loans. Total residential mortgages increased during the third quarter of 2017 by $39.2 million, or 3.3%. Loans held for sale decreased $68.1 million, or 43.2%, from the linked quarter, as the Company delivered a large portion of the held for sale portfolio to third party investors at the end of the quarter. Total cash and cash

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equivalents increased $23.7 million, or 31.6%, from the linked quarter, while the available-for-sale securities portfolio remained relatively flat, with a slight decrease of $5.3 million, or 0.5%.

Deposits totaled $5.15 billion at September 30, 2017 and increased by $159.5 million, or 3.2%, from $4.99 billion at June 30, 2017. In the third quarter of 2017, NOW checking deposits increased by $47.2 million, or 7.5%, from the linked quarter, while non-interest bearing checking deposits increased by $3.2 million, or 0.4%. Money market deposits increased by $160.1 million, or 11.8%, from the linked quarter. The increases in NOW and money market deposits are reflective of continued success in sourcing new commercial deposit relationships, coupled with the seasonal return of municipal deposits. These increases were slightly offset by a $34.7 million, or 2.0%, decrease in certificates of deposit.

Total Federal Home Loan Bank advances decreased by $39.7 million, or 4.0%, over the linked quarter, while other borrowings decreased by $30.4 million, or 20.4%, due to a decrease in the use of reverse repurchase borrowings.

Net Interest Income

Income growth in the third quarter of 2017, as compared to the linked quarter, was highlighted by an increase in net interest income of $440,000, or 0.9%, to $46.8 million, primarily attributable to an increase in interest income of $2.2 million, or 3.8%, to $60.8 million. Average interest-earning assets increased by $118.9 million, or 1.9%, primarily due to growth in average loan balances, which increased by $105.7 million, or 2.1%. Average loan balance growth was driven by a $57.7 million, or 2.7%, increase in average commercial real estate loans, a $25.7 million, or 2.0%, increase in average residential real estate loans, inclusive of loans held for sale, and a $11.0 million, or 1.4%, increase in average commercial business loans.

Interest expense increased by $1.8 million to $14.0 million during the third quarter of 2017, from $12.2 million in the linked quarter. Average balance shifts in the third quarter of 2017 included a $175.9 million, or 9.1%, increase in average NOW and money market deposits, and a $16.2 million, or 1.0%, increase in average certificates of deposit. The growth observed in average deposit balances was largely driven by continued success in new account acquisition strategies.

The non-GAAP tax equivalent net interest margin decreased by four basis points to 3.00% in the third quarter from the linked period. The decline was largely driven by duration extension decisions made in the period, resulting in an increase in the cost of interest-bearing liabilities. The yield on interest-earning assets increased by four basis points in the third quarter of 2017 to 3.86%, and the cost of total interest-bearing liabilities increased by 11 basis points to 1.02%. The interest-earning asset yield improvement was largely driven by a seven basis point increase in the yield on commercial real estate loans, which represents 34.4% of the Company's interest-earning assets, a 13 basis point increase in the average home equity loan yield, and a 17 basis point increase in the average commercial business loan yield. The increase in the loan portfolio yield was further driven by increases in the 1-month LIBOR and Prime rate indices. The total funding cost increased by ten basis points to 0.91% in the third quarter driven by a ten basis point increase in the cost of interest-bearing deposits, which represents 80.1% of costing liabilities, while the cost of Federal Home Loan Bank advances increased 19 basis points.


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Provision for Loan Losses

The provision for loan losses remained relatively flat, totaling $2.6 million at September 30, 2017 as compared to $2.3 million for the linked quarter. Net charge-offs for the quarter ended September 30, 2017 totaled $1.3 million, or 0.10%, as a percentage of average loans outstanding, as compared to $534,000, or 0.04% as a percentage of average loans for the quarter ended June 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 $1.4 million, or 14.8%, to $8.1 million for the quarter ended September 30, 2017 from $9.5 million in the linked quarter. The decrease in the third quarter's non-interest income was driven primarily by a decrease in service charges and fees and mortgage banking activities as compared to the linked quarter. Additionally, there were higher losses on limited partnership investments as compared to the linked quarter.

Non-Interest Expense

Non-interest expense for the quarter ended September 30, 2017 totaled $34.9 million and decreased by $70,000, or 0.2%, from the linked quarter. The decrease in non-interest expense during the quarter was primarily due to a decrease in marketing and promotions and other expenses, partially offset by an increase in salaries and employee benefits, professional fees, and occupancy and equipment expenses as compared to the linked quarter.

Asset Quality

Asset quality remained strong and stable for the period, with non-performing assets decreasing by $432,000 to $33.9 million at September 30, 2017 from $34.3 million at June 30, 2017. The ratio of non-performing assets to total assets for the quarter ended September 30, 2017 was 0.49%, as compared to 0.50% in the linked quarter.

Capital

The Company reported Tangible Common Equity ("TCE") of $570.5 million, or 8.3% of average assets, at September 30, 2017. Tangible book value per share increased to $11.23 at September 30, 2017 from $11.01 at June 30, 2017. The increase was primarily driven by the impact of the Company's net income of $15.2 million, partially offset by the cash dividend payment to shareholders of $0.12 per share, which reduced stockholders' equity by $6.1 million. Book value per share at September 30, 2017 was $13.59.

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 27, 2017 and payable on November 8, 2017. This dividend equates to a 2.76% annualized yield based on the $17.38 average closing price of the Company’s common stock in the third quarter of 2017. The Company has paid dividends for 46 consecutive quarters.


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Investor Conference Call

United Financial Bancorp, Inc. will host a conference call on Wednesday, October 18, 2017 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 November 1, 2017 by calling 1-877-344-7529 and entering conference number 10112041. 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, 2017, the Company had $6.98 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.


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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 September 30,
 
For the Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
51,809

 
$
45,331

 
$
147,976

 
$
134,359

Securities-taxable interest
 
5,604

 
4,808

 
16,907

 
14,830

Securities-non-taxable interest
 
2,499

 
2,140

 
7,108

 
6,201

Securities-dividends
 
736

 
990

 
2,233

 
2,934

Interest-bearing deposits
 
151

 
67

 
303

 
207

Total interest and dividend income
 
60,799

 
53,336

 
174,527

 
158,531

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
9,185

 
6,279

 
23,607

 
18,927

Borrowed funds
 
4,846

 
4,028

 
13,527

 
11,677

Total interest expense
 
14,031

 
10,307

 
37,134

 
30,604

Net interest income
 
46,768

 
43,029

 
137,393

 
127,927

Provision for loan losses
 
2,566

 
3,766

 
7,146

 
10,078

Net interest income after provision for loan losses
 
44,202

 
39,263

 
130,247

 
117,849

Non-interest income:
 
 
 
 
 
 
 
 
Service charges and fees
 
6,161

 
5,726

 
18,413

 
14,679

Net gain from sales of securities
 
158

 
48

 
710

 
1,867

Income from mortgage banking activities
 
1,204

 
2,198

 
4,355

 
5,389

Bank-owned life insurance income
 
1,167

 
899

 
3,523

 
2,531

Net loss on limited partnership investments
 
(864
)
 
(850
)
 
(1,582
)
 
(3,290
)
Other income (loss)
 
247

 
(132
)
 
635

 
(28
)
Total non-interest income
 
8,073

 
7,889

 
26,054

 
21,148

Non-interest expense:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
20,005

 
18,301

 
59,309

 
56,105

Service bureau fees
 
1,983

 
1,960

 
6,029

 
6,219

Occupancy and equipment
 
3,740

 
3,580

 
11,866

 
11,330

Professional fees
 
1,048

 
1,125

 
3,309

 
2,893

Marketing and promotions
 
1,087

 
656

 
3,036

 
2,271

FDIC insurance assessments
 
780

 
819

 
2,255

 
2,800

Core deposit intangible amortization
 
337

 
385

 
1,075

 
1,219

FHLBB prepayment penalties
 
—

 
—

 
—

 
1,454

Other
 
5,929

 
5,410

 
17,704

 
16,389

Total non-interest expense
 
34,909

 
32,236

 
104,583

 
100,680

Income before income taxes
 
17,366

 
14,916

 
51,718

 
38,317

Provision for income taxes
 
2,175

 
757

 
6,601

 
3,206

Net income
 
$
15,191

 
$
14,159

 
$
45,117

 
$
35,111

 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.30

 
$
0.28

 
$
0.90

 
$
0.71

Diluted
 
$
0.30

 
$
0.28

 
$
0.89

 
$
0.70

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
50,263,602

 
49,800,105

 
50,246,234

 
49,617,136

Diluted
 
50,889,987

 
50,141,175

 
50,888,175

 
49,917,049


 
F - 1
 



United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Net Income
(Unaudited)
 
 
For the Three Months Ended
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
Interest and dividend income:
 
(In thousands, except share data)
Loans
 
$
51,809

 
$
49,674

 
$
46,493

 
$
45,460

 
$
45,331

Securities-taxable interest
 
5,604

 
5,793

 
5,510

 
4,848

 
4,808

Securities-non-taxable interest
 
2,499

 
2,355

 
2,254

 
2,191

 
2,140

Securities-dividends
 
736

 
689

 
808

 
986

 
990

Interest-bearing deposits
 
151

 
51

 
101

 
136

 
67

Total interest and dividend income
 
60,799

 
58,562

 
55,166

 
53,621

 
53,336

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
9,185

 
7,603

 
6,819

 
6,649

 
6,279

Borrowed funds
 
4,846

 
4,631

 
4,050

 
3,800

 
4,028

Total interest expense
 
14,031

 
12,234

 
10,869

 
10,449

 
10,307

Net interest income
 
46,768

 
46,328

 
44,297

 
43,172

 
43,029

Provision for loan losses
 
2,566

 
2,292

 
2,288

 
3,359

 
3,766

Net interest income after provision for loan losses
 
44,202

 
44,036

 
42,009

 
39,813

 
39,263

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
6,161

 
6,834

 
5,418

 
5,580

 
5,726

Net gain from sales of securities
 
158

 
95

 
457

 
94

 
48

Income from mortgage banking activities
 
1,204

 
1,830

 
1,321

 
2,838

 
2,198

Bank-owned life insurance income
 
1,167

 
1,149

 
1,207

 
863

 
899

Net loss on limited partnership investments
 
(864
)
 
(638
)
 
(80
)
 
(705
)
 
(850
)
Other income (loss)
 
247

 
206

 
182

 
266

 
(132
)
Total non-interest income
 
8,073

 
9,476

 
8,505

 
8,936

 
7,889

Non-interest expense:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
20,005

 
19,574

 
19,730

 
19,279

 
18,301

Service bureau fees
 
1,983

 
1,943

 
2,103

 
1,767

 
1,960

Occupancy and equipment
 
3,740

 
3,657

 
4,469

 
3,656

 
3,580

Professional fees
 
1,048

 
952

 
1,309

 
1,024

 
1,125

Marketing and promotions
 
1,087

 
1,237

 
712

 
778

 
656

FDIC insurance assessments
 
780

 
796

 
679

 
773

 
819

Core deposit intangible amortization
 
337

 
353

 
385

 
385

 
385

Other
 
5,929

 
6,467

 
5,308

 
5,631

 
5,410

Total non-interest expense
 
34,909

 
34,979

 
34,695

 
33,293

 
32,236

Income before income taxes
 
17,366

 
18,533

 
15,819

 
15,456

 
14,916

Provision for income taxes
 
2,175

 
2,333

 
2,093

 
906

 
757

Net income
 
$
15,191

 
$
16,200

 
$
13,726

 
$
14,550

 
$
14,159

 
 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.30

 
$
0.32

 
$
0.27

 
$
0.29

 
$
0.28

Diluted
 
$
0.30

 
$
0.32

 
$
0.27

 
$
0.29

 
$
0.28

Weighted-average shares outstanding:
 
 
 
 
 
 
 
 
 
 
Basic
 
50,263,602

 
50,217,212

 
50,257,825

 
50,070,710

 
49,800,105

Diluted
 
50,889,987

 
50,839,091

 
50,935,382

 
50,602,494

 
50,141,175


 
F - 2
 



United Financial Bancorp, Inc. and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
 
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
ASSETS
 
(In thousands)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
59,456

 
$
57,137

 
$
45,279

 
$
47,248

 
$
51,951

Short-term investments
 
39,061

 
17,714

 
39,381

 
43,696

 
162,295

Total cash and cash equivalents
 
98,517

 
74,851

 
84,660

 
90,944

 
214,246

Available for sale securities – At fair value
 
1,068,055

 
1,073,384

 
1,075,729

 
1,043,411

 
1,052,439

Held to maturity securities – At amortized cost
 
13,693

 
13,792

 
13,937

 
14,038

 
14,162

Loans held for sale
 
89,419

 
157,487

 
87,031

 
62,517

 
83,321

Loans:
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
442,989

 
429,848

 
433,358

 
416,718

 
392,168

Investor non-owner occupied
 
1,777,716

 
1,761,940

 
1,697,414

 
1,705,319

 
1,702,701

Construction
 
82,688

 
74,980

 
85,533

 
98,794

 
90,380

Total commercial real estate loans
 
2,303,393

 
2,266,768

 
2,216,305

 
2,220,831

 
2,185,249

Commercial business loans
 
821,372

 
792,918

 
769,153

 
724,557

 
660,676

Consumer loans:
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
1,211,783

 
1,172,540

 
1,167,428

 
1,156,227

 
1,129,079

Home equity
 
561,814

 
538,130

 
516,325

 
536,772

 
479,390

Residential construction
 
39,460

 
46,117

 
49,456

 
53,934

 
52,476

Other consumer
 
267,921

 
237,708

 
225,317

 
209,393

 
213,830

Total consumer loans
 
2,080,978

 
1,994,495

 
1,958,526

 
1,956,326

 
1,874,775

Total loans
 
5,205,743

 
5,054,181

 
4,943,984

 
4,901,714

 
4,720,700

Net deferred loan costs and premiums
 
15,297

 
15,413

 
13,273

 
11,636

 
10,214

Allowance for loan losses
 
(46,368
)
 
(45,062
)
 
(43,304
)
 
(42,798
)
 
(41,080
)
Loans receivable - net
 
5,174,672

 
5,024,532

 
4,913,953

 
4,870,552

 
4,689,834

Federal Home Loan Bank of Boston stock, at cost
 
46,758

 
54,760

 
52,707

 
53,476

 
52,847

Accrued interest receivable
 
20,893

 
19,751

 
19,126

 
18,771

 
17,888

Deferred tax asset, net
 
30,999

 
27,034

 
37,040

 
39,962

 
32,529

Premises and equipment, net
 
61,063

 
54,480

 
51,299

 
51,757

 
52,520

Goodwill
 
115,281

 
115,281

 
115,281

 
115,281

 
115,281

Core deposit intangible asset
 
4,827

 
5,164

 
5,517

 
5,902

 
6,287

Cash surrender value of bank-owned life insurance
 
171,300

 
170,144

 
169,007

 
167,823

 
126,948

Other assets
 
81,019

 
85,503

 
71,333

 
65,086

 
86,553

Total assets
 
$
6,976,496

 
$
6,876,163

 
$
6,696,620

 
$
6,599,520

 
$
6,544,855

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
F - 3
 



 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing
 
$
725,130

 
$
721,917

 
$
690,516

 
$
708,050

 
$
687,865

Interest-bearing
 
4,427,892

 
4,271,562

 
4,099,843

 
4,003,122

 
4,007,606

Total deposits
 
5,153,022

 
4,993,479

 
4,790,359

 
4,711,172

 
4,695,471

Mortgagors’ and investor escrow accounts
 
9,641

 
15,045

 
10,925

 
13,354

 
9,045

Federal Home Loan Bank advances and other borrowings
 
1,068,814

 
1,138,817

 
1,180,053

 
1,169,619

 
1,102,882

Accrued expenses and other liabilities
 
54,366

 
49,358

 
49,300

 
49,509

 
81,217

Total liabilities
 
6,285,843

 
6,196,699

 
6,030,637

 
5,943,654

 
5,888,615

Total stockholders’ equity
 
690,653

 
679,464

 
665,983

 
655,866

 
656,240

Total liabilities and stockholders’ equity
 
$
6,976,496

 
$
6,876,163

 
$
6,696,620

 
$
6,599,520

 
$
6,544,855




 
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,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
Share Data:
 
 
 
 
 
 
 
 
 
Basic net income per share
$
0.30

 
$
0.32

 
$
0.27

 
$
0.29

 
$
0.28

Diluted net income per share
0.30

 
0.32

 
0.27

 
0.29

 
0.28

Dividends declared per share
0.12

 
0.12

 
0.12

 
0.12

 
0.12

Tangible book value per share
$
11.23

 
$
11.01

 
$
10.75

 
$
10.53

 
$
10.60

Key Statistics:
 
 
 
 
 
 
 
 
 
Total revenue
$
54,841

 
$
55,804

 
$
52,802

 
$
52,108

 
$
50,918

Total non-interest expense
34,909

 
34,979

 
34,695

 
33,293

 
32,236

Average earning assets
6,423,741

 
6,304,849

 
6,113,363

 
6,054,347

 
5,984,951

Key Ratios:
 
 
 
 
 
 
 
 
 
Return on average assets (annualized)
0.88
%
 
0.96
%
 
0.83
%
 
0.90
%
 
0.88
%
Return on average equity (annualized)
8.92
%
 
9.66
%
 
8.35
%
 
8.95
%
 
8.80
%
Tax-equivalent net interest margin (annualized)
3.00
%
 
3.04
%
 
3.01
%
 
2.93
%
 
2.95
%
Residential Mortgage Production:
 
 
 
 
 
 
 
 
 
Dollar volume (total)
$
133,462

 
$
186,220

 
$
134,022

 
$
160,512

 
$
173,473

Mortgages originated for purchases
97,132

 
129,165

 
77,613

 
77,549

 
113,019

Loans sold
152,551

 
61,363

 
51,826

 
87,626

 
99,051

Income from mortgage banking activities
1,204

 
1,830

 
1,321

 
2,838

 
2,198

Non-performing Assets:
 
 
 
 
 
 
 
 
 
Residential real estate
$
11,330

 
$
11,190

 
$
12,185

 
$
11,357

 
$
11,526

Home equity
4,206

 
5,211

 
4,307

 
4,043

 
3,650

Investor-owned commercial real estate
2,957

 
3,512

 
3,809

 
4,016

 
3,746

Owner-occupied commercial real estate
2,084

 
2,184

 
2,314

 
2,642

 
2,838

Construction
1,748

 
287

 
1,355

 
1,701

 
1,879

Commercial business
2,427

 
2,624

 
2,369

 
2,000

 
2,016

Other consumer
37

 
40

 
37

 
1,000

 
328

Non-accrual loans
24,789

 
25,048

 
26,376

 
26,759

 
25,983

Troubled debt restructured – non-accruing
6,628

 
7,475

 
8,252

 
7,304

 
7,345

Total non-performing loans
31,417

 
32,523

 
34,628

 
34,063

 
33,328

Other real estate owned
2,444

 
1,770

 
1,786

 
1,890

 
2,792

Total non-performing assets
$
33,861

 
$
34,293

 
$
36,414

 
$
35,953

 
$
36,120

Non-performing loans to total loans
0.60
%
 
0.64
%
 
0.70
%
 
0.69
%
 
0.71
%
Non-performing assets to total assets
0.49
%
 
0.50
%
 
0.54
%
 
0.54
%
 
0.55
%
Allowance for loan losses to non-performing loans
147.59
%
 
138.55
%
 
125.05
%
 
125.64
%
 
123.26
%
Allowance for loan losses to total loans
0.89
%
 
0.89
%
 
0.88
%
 
0.87
%
 
0.87
%
Non-GAAP Ratios: (1)
 
 
 
 
 
 
 
 
 
Non-interest expense to average assets (annualized)
2.02
%
 
2.06
%
 
2.11
%
 
2.05
%
 
2.00
%
Efficiency ratio (2)
60.22
%
 
59.49
%
 
63.95
%
 
60.79
%
 
60.31
%
Cost of funds (annualized) (3)
0.91
%
 
0.81
%
 
0.74
%
 
0.73
%
 
0.72
%
Total revenue growth rate
(1.73
)%
 
5.69
%
 
1.33
%
 
2.34
%
 
6.02
%
Total revenue growth rate (annualized)
(6.90
)%
 
22.74
%
 
5.33
%
 
9.35
%
 
24.07
%
Average earning asset growth rate
1.89
%
 
3.13
%
 
0.97
%
 
1.16
%
 
1.65
%
Average earning asset growth rate (annualized)
7.54
%
 
12.53
%
 
3.90
%
 
4.64
%
 
6.60
%
Return on average tangible common equity (annualized) (2)
10.99
%
 
11.95
%
 
10.42
%
 
11.19
%
 
11.05
%
Pre-provision net revenue to average assets (2)
1.31
%
 
1.38
%
 
1.18
%
 
1.31
%
 
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, 2017
 
September 30, 2016
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,323,262

 
$
11,017

 
3.33
%
 
$
1,229,384

 
$
10,033

 
3.26
%
Commercial real estate
2,211,601

 
23,063

 
4.08

 
2,077,585

 
19,525

 
3.68

Construction
122,511

 
1,301

 
4.16

 
156,217

 
1,565

 
3.92

Commercial business
791,547

 
8,163

 
4.04

 
669,595

 
6,103

 
3.57

Home equity
536,509

 
5,917

 
4.38

 
467,552

 
6,046

 
5.15

Other consumer
252,532

 
3,063

 
4.81

 
209,255

 
2,554

 
4.85

Investment securities
1,090,559

 
9,621

 
3.52

 
1,073,007

 
8,576

 
3.19

Federal Home Loan Bank stock
51,722

 
572

 
4.43

 
56,126

 
508

 
3.62

Other earning assets
43,498

 
151

 
1.38

 
46,230

 
67

 
0.57

Total interest-earning assets
6,423,741

 
62,868

 
3.86

 
5,984,951

 
54,977

 
3.63

Allowance for loan losses
(46,479
)
 
 
 
 
 
(38,916
)
 
 
 
 
Non-interest-earning assets
529,937

 
 
 
 
 
491,160

 
 
 
 
Total assets
$
6,907,199

 
 
 
 
 
$
6,437,195

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,105,796

 
$
3,992

 
0.75
%
 
$
1,485,177

 
$
1,501

 
0.40
%
Savings
527,641

 
77

 
0.06

 
527,225

 
77

 
0.06

Certificates of deposit
1,731,658

 
5,116

 
1.17

 
1,821,061

 
4,701

 
1.03

Total interest-bearing deposits
4,365,095

 
9,185

 
0.83

 
3,833,463

 
6,279

 
0.65

Federal Home Loan Bank advances
951,760

 
3,404

 
1.40

 
1,085,932

 
2,657

 
0.96

Other borrowings
135,173

 
1,442

 
4.18

 
119,902

 
1,371

 
4.47

Total interest-bearing liabilities
5,452,028

 
14,031

 
1.02

 
5,039,297

 
10,307

 
0.81

Non-interest-bearing deposits
702,916

 
 
 
 
 
662,437

 
 
 
 
Other liabilities
70,853

 
 
 
 
 
92,195

 
 
 
 
Total liabilities
6,225,797

 
 
 
 
 
5,793,929

 
 
 
 
Stockholders’ equity
681,402

 
 
 
 
 
643,266

 
 
 
 
Total liabilities and stockholders’ equity
$
6,907,199

 
 
 
 
 
$
6,437,195

 
 
 
 
Net interest-earning assets
$
971,713

 
 
 
 
 
$
945,654

 
 
 
 
Tax-equivalent net interest income
 
 
48,837

 
 
 
 
 
44,670

 
 
Tax-equivalent net interest rate spread
 
 
 
 
2.84
%
 
 
 
 
 
2.82
%
Tax-equivalent net interest margin
 
 
 
 
3.00
%
 
 
 
 
 
2.95
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.82
%
 
 
 
 
 
118.77
%
Less tax-equivalent adjustment
 
 
2,069

 
 
 
 
 
1,641

 
 
Net interest income
 
 
$
46,768

 
 
 
 
 
$
43,029

 
 



 
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, 2017
 
June 30, 2017
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,323,262

 
$
11,017

 
3.33
%
 
$
1,297,558

 
$
10,839

 
3.34
%
Commercial real estate
2,211,601

 
23,063

 
4.08

 
2,153,938

 
21,837

 
4.01

Construction
122,511

 
1,301

 
4.16

 
128,730

 
1,396

 
4.29

Commercial business
791,547

 
8,163

 
4.04

 
780,553

 
7,628

 
3.87

Home equity
536,509

 
5,917

 
4.38

 
541,017

 
5,737

 
4.25

Other consumer
252,532

 
3,063

 
4.81

 
230,419

 
2,907

 
5.06

Investment securities
1,090,559

 
9,621

 
3.52

 
1,099,011

 
9,577

 
3.48

Federal Home Loan Bank stock
51,722

 
572

 
4.43

 
54,151

 
534

 
3.95

Other earning assets
43,498

 
151

 
1.38

 
19,472

 
50

 
1.03

Total interest-earning assets
6,423,741

 
62,868

 
3.86

 
6,304,849

 
60,505

 
3.82

Allowance for loan losses
(46,479
)
 
 
 
 
 
(44,888
)
 
 
 
 
Non-interest-earning assets
529,937

 
 
 
 
 
520,375

 
 
 
 
Total assets
$
6,907,199

 
 
 
 
 
$
6,780,336

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
2,105,796

 
$
3,992

 
0.75
%
 
$
1,929,917

 
$
2,808

 
0.58
%
Savings
527,641

 
77

 
0.06

 
541,867

 
80

 
0.06

Certificates of deposit
1,731,658

 
5,116

 
1.17

 
1,715,436

 
4,715

 
1.10

Total interest-bearing deposits
4,365,095

 
9,185

 
0.83

 
4,187,220

 
7,603

 
0.73

Federal Home Loan Bank advances
951,760

 
3,404

 
1.40

 
1,028,835

 
3,152

 
1.21

Other borrowings
135,173

 
1,442

 
4.18

 
154,780

 
1,479

 
3.78

Total interest-bearing liabilities
5,452,028

 
14,031

 
1.02

 
5,370,835

 
12,234

 
0.91

Non-interest-bearing deposits
702,916

 
 
 
 
 
670,244

 
 
 
 
Other liabilities
70,853

 
 
 
 
 
68,731

 
 
 
 
Total liabilities
6,225,797

 
 
 
 
 
6,109,810

 
 
 
 
Stockholders’ equity
681,402

 
 
 
 
 
670,526

 
 
 
 
Total liabilities and stockholders’ equity
$
6,907,199

 
 
 
 
 
$
6,780,336

 
 
 
 
Net interest-earning assets
$
971,713

 
 
 
 
 
$
934,014

 
 
 
 
Tax-equivalent net interest income
 
 
48,837

 
 
 
 
 
48,271

 
 
Tax-equivalent net interest rate spread
 
 
 
 
2.84
%
 
 
 
 
 
2.91
%
Tax-equivalent net interest margin
 
 
 
 
3.00
%
 
 
 
 
 
3.04
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.82
%
 
 
 
 
 
117.39
%
Less tax-equivalent adjustment
 
 
2,069

 
 
 
 
 
1,943

 
 
Net interest income
 
 
$
46,768

 
 
 
 
 
$
46,328

 
 




 
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, 2017
 
September 30, 2016
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
 
Average
Balance
 
Interest
and
Dividends
 
Yield/Cost
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,285,618

 
$
32,079

 
3.33
%
 
$
1,211,995

 
$
29,814

 
3.28
%
Commercial real estate
2,155,085

 
65,626

 
4.02

 
2,039,087

 
61,477

 
3.96

Construction
132,158

 
4,261

 
4.25

 
164,039

 
5,234

 
4.19

Commercial business
767,738

 
22,510

 
3.87

 
638,086

 
17,766

 
3.66

Home equity
533,669

 
16,876

 
4.23

 
448,371

 
13,346

 
3.98

Other consumer
231,892

 
8,581

 
4.95

 
218,801

 
8,201

 
5.00

Investment securities
1,086,574

 
28,366

 
3.48

 
1,083,717

 
25,942

 
3.18

Federal Home Loan Bank stock
53,005

 
1,630

 
4.10

 
54,842

 
1,366

 
3.32

Other earning assets
36,049

 
303

 
1.12

 
48,755

 
207

 
0.57

Total interest-earning assets
6,281,788

 
180,232

 
3.80

 
5,907,693

 
163,353

 
3.66

Allowance for loan losses
(45,008
)
 
 
 
 
 
(36,775
)
 
 
 
 
Non-interest-earning assets
521,629

 
 
 
 
 
479,513

 
 
 
 
Total assets
$
6,758,409

 
 
 
 
 
$
6,350,431

 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
NOW and money market
$
1,960,685

 
$
8,996

 
0.61
%
 
$
1,533,096

 
$
4,950

 
0.43
%
Savings
532,718

 
235

 
0.06

 
527,919

 
229

 
0.06

Certificates of deposit
1,720,120

 
14,376

 
1.12

 
1,784,269

 
13,748

 
1.03

Total interest-bearing deposits
4,213,523

 
23,607

 
0.75

 
3,845,284

 
18,927

 
0.66

Federal Home Loan Bank advances
986,935

 
9,225

 
1.23

 
1,009,671

 
7,507

 
0.98

Other borrowings
138,685

 
4,302

 
4.09

 
130,586

 
4,170

 
4.20

Total interest-bearing liabilities
5,339,143

 
37,134

 
0.93

 
4,985,541

 
30,604

 
0.81

Non-interest-bearing deposits
680,786

 
 
 
 
 
646,416

 
 
 
 
Other liabilities
68,499

 
 
 
 
 
83,543

 
 
 
 
Total liabilities
6,088,428

 
 
 
 
 
5,715,500

 
 
 
 
Stockholders’ equity
669,981

 
 
 
 
 
634,931

 
 
 
 
Total liabilities and stockholders’ equity
$
6,758,409

 
 
 
 
 
$
6,350,431

 
 
 
 
Net interest-earning assets
$
942,645

 
 
 
 
 
$
922,152

 
 
 
 
Tax-equivalent net interest income
 
 
143,098

 
 
 
 
 
132,749

 
 
Tax-equivalent net interest rate spread
 
 
 
 
2.87
%
 
 
 
 
 
2.85
%
Tax-equivalent net interest margin
 
 
 
 
3.02
%
 
 
 
 
 
2.97
%
Average interest-earning assets to average interest-bearing liabilities
 
 
 
 
117.66
%
 
 
 
 
 
118.50
%
Less tax-equivalent adjustment
 
 
5,705

 
 
 
 
 
4,822

 
 
Net interest income
 
 
$
137,393

 
 
 
 
 
$
127,927

 
 


 
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,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
 
 
(Dollars in thousands)
Net Income (GAAP)
 
$
15,191

 
$
16,200

 
$
13,726

 
$
14,550

 
$
14,159

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Non-interest income
 
(158
)
 
(95
)
 
(465
)
 
(94
)
 
(118
)
Non-interest expense
 
—

 
—

 
—

 
107

 
55

Related income tax (benefit) expense
 
55

 
33

 
163

 
(5
)
 
22

Net adjustment
 
(103
)
 
(62
)
 
(302
)
 
8

 
(41
)
Total net income (non-GAAP)
 
$
15,088

 
$
16,138

 
$
13,424

 
$
14,558

 
$
14,118

 
 
 
 
 
 
 
 
 
 
 
Non-interest income (GAAP)
 
$
8,073

 
$
9,476

 
$
8,505

 
$
8,936

 
$
7,889

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Net gain on sales of securities
 
(158
)
 
(95
)
 
(457
)
 
(94
)
 
(48
)
BOLI claim benefit
 
—

 
—

 
(8
)
 
—

 
(70
)
Net adjustment
 
(158
)
 
(95
)
 
(465
)
 
(94
)
 
(118
)
Total non-interest income (non-GAAP)
 
7,915

 
9,381

 
8,040

 
8,842

 
7,771

Total net interest income
 
46,768

 
46,328

 
44,297

 
43,172

 
43,029

Total revenue (non-GAAP)
 
$
54,683

 
$
55,709

 
$
52,337

 
$
52,014

 
$
50,800

 
 
 
 
 
 
 
 
 
 
 
Non-interest expense (GAAP)
 
$
34,909

 
$
34,979

 
$
34,695

 
$
33,293

 
$
32,236

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Effect of position eliminations
 
—

 
—

 
—

 
(107
)
 
(55
)
Net adjustment
 
—

 
—

 
—

 
(107
)
 
(55
)
Total non-interest expense (non-GAAP)
 
$
34,909

 
$
34,979

 
$
34,695

 
$
33,186

 
$
32,181

 
 
 
 
 
 
 
 
 
 
 
Total loans
 
$
5,205,743

 
$
5,054,181

 
$
4,943,984

 
$
4,901,714

 
$
4,720,700

Non-covered loans (1)
 
(739,376
)
 
(699,938
)
 
(691,054
)
 
(744,763
)
 
(721,763
)
Total covered loans
 
$
4,466,367

 
$
4,354,243

 
$
4,252,930

 
$
4,156,951

 
$
3,998,937

Allowance for loan losses
 
$
46,368

 
$
45,062

 
$
43,304

 
$
42,798

 
$
41,080

Allowance for loan losses to total loans
 
0.89
%
 
0.89
%
 
0.88
%
 
0.87
%
 
0.87
%
Allowance for loan losses to total covered loans
 
1.04
%
 
1.03
%
 
1.02
%
 
1.03
%
 
1.03
%
(1) As required by GAAP, the Company recorded acquired loans at fair value. These loans carry no allowance for loan losses for the periods reflected above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
F - 10
 



 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
 
 
(Dollars in thousands)
Efficiency Ratio:
 
 
 
 
 
 
 
 
 
 
Non-Interest Expense (GAAP)
 
$
34,909

 
$
34,979

 
$
34,695

 
$
33,293

 
$
32,236

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Other real estate owned expense
 
(211
)
 
(305
)
 
(91
)
 
(100
)
 
(40
)
Effect of position eliminations
 
—

 
—

 
—

 
(107
)
 
(55
)
Non-Interest Expense for Efficiency Ratio (non-GAAP)
 
$
34,698

 
$
34,674

 
$
34,604

 
$
33,086

 
$
32,141

 
 
 
 
 
 
 
 
 
 
 
Net Interest Income (GAAP)
 
$
46,768

 
$
46,328

 
$
44,297

 
$
43,172

 
$
43,029

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Tax equivalent adjustment for tax-exempt loans and investment securities
 
2,069

 
1,943

 
1,693

 
1,712


1,641

 
 
 
 
 
 
 
 
 
 
 
Non-Interest Income (GAAP)
 
8,073

 
9,476

 
8,505

 
8,936

 
7,889

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Net gain on sales of securities
 
(158
)
 
(95
)
 
(457
)
 
(94
)
 
(48
)
Net loss on limited partnership investments
 
864

 
638

 
80

 
705

 
850

BOLI claim benefit
 
—

 
—

 
(8
)
 
—

 
(70
)
Total Revenue for Efficiency Ratio (non-GAAP)
 
$
57,616

 
$
58,290

 
$
54,110

 
$
54,431

 
$
53,291

 
 
 
 
 
 
 
 
 
 
 
Efficiency Ratio (Non-Interest Expense for Efficiency Ratio (non-GAAP)/Total Revenue for Efficiency Ratio (non-GAAP))
 
60.22
%
 
59.49
%
 
63.95
%
 
60.79
%
 
60.31
%
 
 
 
 
 
 
 
 
 
 
 
Pre-Provision Net Revenue ("PPNR") to Average Assets (Annualized):
 
 
 
 
 
 
 
 
Net Interest income (GAAP)
 
$
46,768

 
$
46,328

 
$
44,297

 
$
43,172

 
$
43,029

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Tax equivalent adjustment for tax-exempt loans and investment securities
 
2,069

 
1,943

 
1,693

 
1,712

 
1,641

Total tax equivalent net interest income (A)
 
$
48,837

 
$
48,271

 
$
45,990

 
$
44,884

 
$
44,670

 
 
 
 
 
 
 
 
 
 
 
Non Interest Income (GAAP)
 
8,073

 
9,476

 
8,505

 
8,936

 
7,889

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Net gain on sales of securities
 
(158
)
 
(95
)
 
(457
)
 
(94
)
 
(48
)
Net loss on limited partnership investments
 
864

 
638

 
80

 
705

 
850

BOLI claim benefit
 
—

 
—

 
(8
)
 
—

 
(70
)
Non-Interest Income for PPNR (non-GAAP) (B)
 
$
8,779

 
$
10,019

 
$
8,120

 
$
9,547

 
$
8,621

 
 
 
 
 
 
 
 
 
 
 
Non-Interest Expense (GAAP)
 
$
34,909

 
$
34,979

 
$
34,695

 
$
33,293

 
$
32,236

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Effect of position eliminations
 
—

 
—

 
—

 
(107
)
 
(55
)
Non-Interest Expense for PPNR (non-GAAP) (C)
 
$
34,909

 
$
34,979

 
$
34,695

 
$
33,186

 
$
32,181

 
 
 
 
 
 
 
 
 
 
 
Total PPNR (non-GAAP)  (A + B - C) :
 
$
22,707

 
$
23,311

 
$
19,415

 
$
21,245

 
$
21,110

Average Assets
 
6,907,199

 
6,780,336

 
6,584,138

 
6,490,971

 
6,437,195

PPNR to Average Assets (Annualized)
 
1.31
%
 
1.38
%
 
1.18
%
 
1.31
%
 
1.31
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
F - 11
 



 
 
Three Months Ended
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
 
 
(Dollars in thousands)
Return on Average Tangible Common Equity (Annualized):
 
 
 
 
 
 
 
Net Income (GAAP)
 
$
15,191

 
$
16,200

 
$
13,726

 
$
14,550

 
$
14,159

Non-GAAP adjustments:
 
 
 
 
 
 
 
 
 
 
Intangible Assets amortization, tax effected at 35%
 
219

 
229

 
250

 
250

 
250

Net Income excluding intangible assets amortization, tax effected at 35%
 
$
15,410

 
$
16,429

 
$
13,976

 
$
14,800

 
$
14,409

Average stockholders' equity (non-GAAP)
 
$
681,402

 
$
670,526

 
$
657,755

 
$
650,590

 
$
643,266

Average goodwill & other intangible assets (non-GAAP)
 
120,275

 
120,631

 
121,004

 
121,383

 
121,767

Average tangible common stockholders' equity (non-GAAP)
 
$
561,127

 
$
549,895

 
$
536,751

 
$
529,207

 
$
521,499

Return on Average Tangible Common Equity (non-GAAP)
 
10.99
%
 
11.95
%
 
10.42
%
 
11.19
%
 
11.05
%



 
F - 12