United Bank Posts Quarterly Earnings Report

United Financial Bancorp, Inc., the holding company for United Bank, on Tuesday announced results for the quarter ended June 30.

United Bank reported net income of $15.6 million, or $0.31 per diluted share, for the quarter ended June 30, 2018, compared to net income for the linked quarter of $15.8 million, or $0.31 per diluted share. The bank reported net income of $16.2 million, or $0.32 per diluted share, for the quarter ended June 30, 2017.

"In the second quarter of 2018, United Financial Bancorp, Inc.'s earnings results reflected solid linked quarter net interest margin expansion and net interest income growth. Our Company continues to grow loans, deposits, particularly checking accounts, and tangible book value while maintaining strong asset quality, capital and liquidity," stated William H.W. Crawford, IV, chief executive officer and president of the parent company and the bank. "I want to thank our United Bank employees for their steadfast support of our customers and communities."

Here are the highlights:

• The board of directors declared a cash dividend on the bank’s common stock of 12 cents per share to shareholders of record at the close of business on July 27 and payable on August 8. The dividend equates to a 2.80 percent annualized yield based on the $17.17 average closing price of the bank’s common stock in the second quarter of 2018. The Company has paid dividends for 49 consecutive quarters.
• Assets totaled $7.21 billion as of June 30 and increased by $139.9 million, or 2 percent, from $7.07 billion at on March 31.
• As of June 30, total loans were $5.48 billion, representing an increase of $93.2 million, or 1.7 percent, from the linked quarter.
• Deposits totaled $5.39 billion as of June 30 an increased of $110.9 million, or 2.1 percent, from $5.28 billion as of March 31, 2018.
• Total federal home loan advances increased by $11.5 million, or 1.3 percent, over the linked quarter as the bank continued to "utilize advances as an asset liability management tool through cash flow hedging strategies.
• Net interest income increased by $1.6 million, or 3.5 percent, on a linked quarter basis, to $48.2 million, primarily attributable to an increase in loan interest income of $3.2 million, or 5.8 percent, to $58.0 million. The increase was offset by an increase in interest expense of $2.0 million, or 11.8 percent, to $18.9 million.
• The provision for loan losses totaled $2.4 million for the quarter ended June 30, as compared to $1.9 million for the linked quarter.

• Total non-interest income decreased by $929,000, or 10 percent, to $8.4 million for the quarter ended June 30, from $9.3 million in the linked quarter.
• Non-interest expense for the quarter ended June 30, 2018 totaled $38.4 million and increased by $1.6 million, or 4.4 percent, from the linked quarter.

• The Company reported tangible common equity of $582.7 million, or 8.2 percent of average assets, for the quarter ended June 30.

Photo Credit: Chris Dehnel