HARTFORD, Conn., Oct. 16, 2018 (GLOBE NEWSWIRE) -- United Financial Bancorp, Inc. ("United Financial" or the "Company") (NASDAQ Global Select Stock Market: “UBNK”), the holding company for United Bank (the "Bank"), announced results for the quarter ended 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.

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 basis point increase in the cost of Federal Home Loan Bank of Boston advances.

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.

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 in the accompanying financial tables. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector.

Forward Looking Statements

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

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

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

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
		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

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 pages below.
(3) The cost of funds ratio represents interest incurred on liabilities as a percentage of average non-interest bearing deposits and interest-bearing liabilities.

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.

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.

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.

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

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

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

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

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

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

	Three Months Ended
	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		%

(1) Represents limited partnership writedowns related to the reduction of the Company's tax rate in December 2017.
(2) Represents acquired loans that were recorded at fair value. These loans carry no allowance for loan losses for the periods reflected above.

		Three Months Ended
		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		%
		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%.

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