Federal
|
83-0395247
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
Number)
|
Large
accelerated filer o
|
Accelerated
filer ý
|
Non-accelerated
filer o
|
United
Financial Bancorp, Inc.
|
||
INDEX
|
||
Page
|
||
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
11
|
||
21
|
||
26
|
||
26
|
||
26
|
||
27
|
||
27
|
||
27
|
||
27
|
||
28
|
||
29
|
Exhibit
31.1
|
Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
30
|
Exhibit
31.2
|
Certification
of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
31
|
Exhibit
32.1
|
Statement
of Chief Executive Officer Furnished Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
32
|
Exhibit
32.2
|
Statement
of Chief Financial Officer Furnished Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
33
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ |
16,543
|
$ |
15,459
|
||||
Interest-bearing
deposits
|
11,948
|
9,960
|
||||||
Total
cash and cash equivalents
|
28,491
|
25,419
|
||||||
Short-term
investments
|
1,017
|
-
|
||||||
Securities
available for sale, at fair value
|
183,862
|
190,237
|
||||||
Securities
to be held to maturity, at amortized cost (fair value $3,663
at
|
||||||||
September
30, 2007 and $3,227 at December 31, 2006)
|
3,684
|
3,241
|
||||||
Loans,
net of allowance for loan losses of $7,612 at September 30,
2007
|
||||||||
and
$7,218 at December 31, 2006
|
808,112
|
756,180
|
||||||
Other
real estate owned
|
880
|
562
|
||||||
Accrued
interest receivable
|
4,652
|
4,320
|
||||||
Stock
in the Federal Home Loan Bank of Boston
|
9,885
|
9,274
|
||||||
Banking
premises and equipment, net
|
10,564
|
8,821
|
||||||
Bank-owned
life insurance
|
6,595
|
6,304
|
||||||
Other
assets
|
6,204
|
5,075
|
||||||
TOTAL
ASSETS
|
$ |
1,063,946
|
$ |
1,009,433
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Interest-bearing
|
$ |
618,707
|
$ |
588,496
|
||||
Non-interest-bearing
|
104,411
|
97,190
|
||||||
Total
deposits
|
723,118
|
685,686
|
||||||
Federal
Home Loan Bank of Boston advances
|
183,852
|
169,806
|
||||||
Repurchase
agreements
|
7,519
|
10,425
|
||||||
Escrow
funds held for borrowers
|
1,410
|
1,121
|
||||||
Capitalized
lease obligation
|
1,900
|
-
|
||||||
Accrued
expenses and other liabilities
|
4,899
|
4,684
|
||||||
Total
liabilities
|
922,698
|
871,722
|
||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, par value $0.01 per share, authorized 5,000,000
shares;
|
||||||||
none
issued
|
-
|
-
|
||||||
Common
stock, par value $0.01 per share, authorized 60,000,000
shares;
|
||||||||
17,205,995
shares issued at September 30, 2007 and at December 31,
2006
|
172
|
172
|
||||||
Paid-in
capital
|
77,127
|
75,520
|
||||||
Retained
earnings
|
72,190
|
70,406
|
||||||
Unearned
compensation
|
(5,439 | ) | (5,772 | ) | ||||
Treasury
stock, at cost (137,835 shares at September 30, 2007 and
51,445
|
||||||||
shares
at December 31, 2006)
|
(1,914 | ) | (664 | ) | ||||
Accumulated
other comprehensive loss, net of taxes
|
(888 | ) | (1,951 | ) | ||||
Total
stockholders’ equity
|
141,248
|
137,711
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ |
1,063,946
|
$ |
1,009,433
|
||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Interest
and dividend income:
|
||||||||||||||||
Loans
|
$ |
12,712
|
$ |
11,043
|
$ |
37,017
|
$ |
30,719
|
||||||||
Investments
|
2,017
|
2,195
|
5,849
|
6,761
|
||||||||||||
Other
interest-earning assets
|
247
|
256
|
935
|
786
|
||||||||||||
Total
interest and dividend income
|
14,976
|
13,494
|
43,801
|
38,266
|
||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
5,672
|
4,885
|
16,330
|
13,590
|
||||||||||||
Borrowings
|
2,051
|
1,665
|
6,127
|
4,059
|
||||||||||||
Total
interest expense
|
7,723
|
6,550
|
22,457
|
17,649
|
||||||||||||
Net
interest income before provision for loan losses
|
7,253
|
6,944
|
21,344
|
20,617
|
||||||||||||
Provision
for loan losses
|
436
|
165
|
1,040
|
627
|
||||||||||||
Net
interest income after provision for loan losses
|
6,817
|
6,779
|
20,304
|
19,990
|
||||||||||||
Non-interest
income:
|
||||||||||||||||
Fee
income on depositors’ accounts
|
1,105
|
1,146
|
3,240
|
3,128
|
||||||||||||
Loss
on sale and write-down of securities
|
(141 | ) | (218 | ) | (170 | ) | (218 | ) | ||||||||
Wealth
management income
|
200
|
126
|
491
|
319
|
||||||||||||
Other
income
|
248
|
240
|
684
|
764
|
||||||||||||
Total
non-interest income
|
1,412
|
1,294
|
4,245
|
3,993
|
||||||||||||
Non-interest
expense:
|
||||||||||||||||
Salaries
and benefits
|
3,546
|
3,014
|
11,119
|
9,173
|
||||||||||||
Occupancy
expenses
|
469
|
455
|
1,441
|
1,268
|
||||||||||||
Marketing
expenses
|
277
|
329
|
1,048
|
1,093
|
||||||||||||
Data
processing expenses
|
711
|
622
|
2,006
|
1,813
|
||||||||||||
Professional
fees
|
220
|
223
|
872
|
702
|
||||||||||||
Other
expenses
|
908
|
936
|
2,867
|
3,143
|
||||||||||||
Total
non-interest expense
|
6,131
|
5,579
|
19,353
|
17,192
|
||||||||||||
Income
before income taxes
|
2,098
|
2,494
|
5,196
|
6,791
|
||||||||||||
Income
tax expense
|
807
|
981
|
2,093
|
2,633
|
||||||||||||
Net
income
|
$ |
1,291
|
$ |
1,513
|
$ |
3,103
|
$ |
4,158
|
||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ |
0.08
|
$ |
0.09
|
$ |
0.19
|
$ |
0.25
|
||||||||
Diluted
|
$ |
0.08
|
$ |
0.09
|
$ |
0.19
|
$ |
0.25
|
||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
16,266,869
|
16,382,133
|
16,259,601
|
16,528,981
|
||||||||||||
Diluted
|
16,323,516
|
16,395,955
|
16,320,535
|
16,533,639
|
Accumulated
|
||||||||||||||||||||||||||||||||
Common
|
Other
|
|||||||||||||||||||||||||||||||
Shares
|
Common
|
Paid-In
|
Retained
|
Unearned
|
Treasury
|
Comprehensive
|
||||||||||||||||||||||||||
Outstanding
|
Stock
|
Capital
|
Earnings
|
Compensation
|
Stock
|
Income
(Loss)
|
Total
|
|||||||||||||||||||||||||
Balances
at December 31, 2005
|
17,205,995
|
$ |
172
|
$ |
78,446
|
$ |
66,944
|
$ | (6,092 | ) | $ |
-
|
$ | (2,465 | ) | $ |
137,005
|
|||||||||||||||
Net
income
|
-
|
-
|
-
|
4,158
|
-
|
-
|
-
|
4,158
|
||||||||||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
181
|
181
|
||||||||||||||||||||||||
Total
comprehensive income
|
4,339
|
|||||||||||||||||||||||||||||||
Cash
dividends declared ($0.15 per share)
|
-
|
-
|
-
|
(1,095 | ) |
-
|
-
|
-
|
(1,095 | ) | ||||||||||||||||||||||
Treasury
stock purchases
|
(340,000 | ) |
-
|
-
|
-
|
-
|
(4,378 | ) |
-
|
(4,378 | ) | |||||||||||||||||||||
Reissuance
of treasury shares in connection
|
||||||||||||||||||||||||||||||||
with
restricted stock grants
|
288,000
|
-
|
(3,709 | ) |
-
|
-
|
3,709
|
-
|
-
|
|||||||||||||||||||||||
Stock-based
compensation
|
-
|
159
|
-
|
-
|
-
|
-
|
159
|
|||||||||||||||||||||||||
ESOP
shares committed to be released
|
-
|
-
|
53
|
-
|
241
|
-
|
-
|
294
|
||||||||||||||||||||||||
Balances
at September 30, 2006
|
17,153,995
|
$ |
172
|
$ |
74,949
|
$ |
70,007
|
$ | (5,851 | ) | $ | (669 | ) | $ | (2,284 | ) | $ |
136,324
|
||||||||||||||
Balances
at December 31, 2006
|
17,154,550
|
$ |
172
|
$ |
75,520
|
$ |
70,406
|
$ | (5,772 | ) | $ | (664 | ) | $ | (1,951 | ) | $ |
137,711
|
||||||||||||||
Net
income
|
-
|
-
|
-
|
3,103
|
-
|
-
|
-
|
3,103
|
||||||||||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
1,063
|
1,063
|
||||||||||||||||||||||||
Total
comprehensive income
|
4,166
|
|||||||||||||||||||||||||||||||
Cash
dividends declared ($0.18 per share)
|
-
|
-
|
-
|
(1,319 | ) |
-
|
-
|
-
|
(1,319 | ) | ||||||||||||||||||||||
Treasury
stock purchases
|
(86,390 | ) |
-
|
-
|
-
|
-
|
(1,250 | ) |
-
|
(1,250 | ) | |||||||||||||||||||||
Stock-based
compensation
|
-
|
-
|
1,476
|
-
|
-
|
-
|
-
|
1,476
|
||||||||||||||||||||||||
ESOP
shares committed to be released
|
-
|
-
|
131
|
-
|
333
|
-
|
-
|
464
|
||||||||||||||||||||||||
Balances
at September 30, 2007
|
17,068,160
|
$ |
172
|
$ |
77,127
|
$ |
72,190
|
$ | (5,439 | ) | $ | (1,914 | ) | $ | (888 | ) | $ |
141,248
|
The
components of other comprehensive income and related tax effects
are as
follows:
|
||||||||
Nine
Months ended September 30,
|
||||||||
2007
|
2006
|
|||||||
Change
in unrealized holding gains on available-for-sale
securities
|
$ |
1,591
|
$ |
90
|
||||
Reclassification
adjustment for losses realized in income
|
170
|
218
|
||||||
Net
change in unrealized gains
|
1,761
|
308
|
||||||
Tax
effect
|
698
|
127
|
||||||
Other
comprehensive income
|
$ |
1,063
|
$ |
181
|
||||
2007
|
2006
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ |
3,103
|
$ |
4,158
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision
for loan losses
|
1,040
|
627
|
||||||
ESOP
expense
|
464
|
294
|
||||||
Stock-based
compensation
|
1,476
|
159
|
||||||
Amortization
of premiums and discounts
|
83
|
272
|
||||||
Depreciation
and amortization
|
638
|
537
|
||||||
Amortization
of intangible assets
|
23
|
-
|
||||||
Net
(gain) loss on sale of other real estate owned
|
(14 | ) |
21
|
|||||
Net
loss on sale of securities
|
170
|
218
|
||||||
Net
loss on sale of loans
|
5
|
-
|
||||||
Increase
in cash surrender value of bank-owned life insurance
|
(291 | ) | (227 | ) | ||||
Increase
in accrued interest receivable
|
(332 | ) | (482 | ) | ||||
Increase
in other assets
|
(1,023 | ) | (2,024 | ) | ||||
(Decrease)
increase in accrued expenses and other liabilities
|
(475 | ) |
2,437
|
|||||
Net
cash provided by operating activities
|
4,867
|
5,990
|
||||||
Cash
flows from investing activities:
|
||||||||
Purchases
of securities available for sale
|
(65,230 | ) | (30,318 | ) | ||||
Proceeds
from sales of securities available for sale
|
14,449
|
25,436
|
||||||
Proceeds
from maturities, calls and principal repayments of securities available
for sale
|
58,671
|
35,127
|
||||||
Purchases
of securities held to maturity
|
(675 | ) |
-
|
|||||
Proceeds
from maturities, calls and principal repayments of securities held
to
maturity
|
225
|
25
|
||||||
Investment
in short term time deposits
|
(1,017 | ) |
-
|
|||||
Purchases
of Federal Home Loan Bank of Boston stock
|
(611 | ) | (2,152 | ) | ||||
Proceeds
from sales of other real estate owned
|
576
|
1,852
|
||||||
Net
loan originations and principal repayments
|
(55,755 | ) | (97,443 | ) | ||||
Proceeds
from sales of loans
|
1,898
|
-
|
||||||
Purchases
of property and equipment
|
(441 | ) | (877 | ) | ||||
Cash
paid to acquire Levine Financial Group
|
(55 | ) | (100 | ) | ||||
Net
cash used in investing activities
|
(47,965 | ) | (68,450 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
increase in deposits
|
37,432
|
39,011
|
||||||
Increase
in short term borrowings
|
32,000
|
30,000
|
||||||
Proceeds
of Federal Home Loan Bank of Boston long term advances
|
20,000
|
56,201
|
||||||
Repayments
of Federal Home Loan Bank of Boston long term advances
|
(37,954 | ) | (50,669 | ) | ||||
Net
decrease in repurchase agreements
|
(2,906 | ) | (2,514 | ) | ||||
Net
increase in escrow funds held for borrowers
|
289
|
195
|
||||||
Treasury
stock purchases
|
(1,250 | ) | (4,378 | ) | ||||
Cash
dividends paid
|
(1,319 | ) | (1,095 | ) | ||||
Payments
on capitalized lease obligation
|
(122 | ) |
-
|
|||||
Net
cash provided by financing activities
|
46,170
|
66,751
|
||||||
Increase
in cash and cash equivalents
|
3,072
|
4,291
|
||||||
Cash
and cash equivalents at beginning of period
|
25,419
|
15,843
|
||||||
Cash
and cash equivalents at end of period
|
$ |
28,491
|
$ |
20,134
|
||||
Supplemental
Disclosure of Cash Flow Information:
|
||||||||
Cash
paid during the period:
|
||||||||
Interest
on deposits, borrowings and other interest bearing
liabilities
|
$ |
22,418
|
$ |
18,416
|
||||
Income
taxes – net
|
2,463
|
2,062
|
||||||
Non-cash
item:
|
||||||||
Capitalized
lease asset and obligation
|
$ |
1,932
|
$ |
-
|
||||
Transfer
of loans to other real estate owned
|
880
|
-
|
||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
income
|
$ |
1,291
|
$ |
1,513
|
$ |
3,103
|
$ |
4,158
|
||||||||
Weighted
average common shares applicable to
|
||||||||||||||||
basic
EPS
|
16,266,869
|
16,382,133
|
16,259,601
|
16,528,981
|
||||||||||||
Effect
of dilutive potential
common shares (1, 2)
|
56,647
|
13,822
|
60,934
|
4,658
|
||||||||||||
Weighted
average common shares applicable to
|
||||||||||||||||
diluted
EPS
|
16,323,516
|
16,395,955
|
16,320,535
|
16,533,639
|
||||||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ |
0.08
|
$ |
0.09
|
$ |
0.19
|
$ |
0.25
|
||||||||
Diluted
|
$ |
0.08
|
$ |
0.09
|
$ |
0.19
|
$ |
0.25
|
(1) For
the three and nine months ended September 30, 2007 and September
30, 2006,
options to purchase 748,000 and 727,000 shares, respectively were
outstanding but not included in the computation of earnings per
share
because they were antidilutive.
|
||||||||
(2)
Includes incremental shares related to stock options and restricted
stock.
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
One-to-four
family residential real estate
|
$ |
336,064
|
$ |
319,108
|
||||
Commercial
real estate
|
204,325
|
175,564
|
||||||
Construction
|
43,614
|
54,759
|
||||||
Home
equity loans
|
118,712
|
112,739
|
||||||
Commercial
and industrial
|
80,140
|
69,762
|
||||||
Consumer
|
31,451
|
30,181
|
||||||
Total
loans
|
814,306
|
762,113
|
||||||
Net
deferred loan costs and fees
|
1,418
|
1,285
|
||||||
Allowance
for loan losses
|
(7,612 | ) | (7,218 | ) | ||||
Loans,
net
|
$ |
808,112
|
$ |
756,180
|
At
September 30,
|
At
December 31,
|
|||||||
2007
|
2006
|
|||||||
Non-accrual
loans:
|
||||||||
Residential
mortgages
|
$ |
119
|
$ |
-
|
||||
Commercial
mortgages
|
535
|
1,144
|
||||||
Home
equity
|
52
|
20
|
||||||
Commercial
and industrial
|
302
|
123
|
||||||
Other
consumer
|
-
|
1
|
||||||
Total
non-accrual loans
|
1,008
|
1,288
|
||||||
Accruing
loans 90 days or more past due
|
-
|
-
|
||||||
Total
non-performing loans
|
1,008
|
1,288
|
||||||
Other
real estate owned
|
880
|
562
|
||||||
Total
non-performing assets
|
$ |
1,888
|
$ |
1,850
|
||||
Ratios:
|
||||||||
Total
non-performing loans to total loans
|
0.12 | % | 0.17 | % | ||||
Total
non-performing assets to total assets
|
0.18 | % | 0.18 | % | ||||
Allowance
for loan losses to non-performing loans
|
755.16 | % | 560.40 | % | ||||
For
the Nine Months Ended September 30,
|
||||||||
2007
|
2006
|
|||||||
Balance
at beginning of period
|
$ |
7,218
|
$ |
6,382
|
||||
Provision
for loan losses
|
1,040
|
627
|
||||||
Charge-offs
|
(654 | ) | (179 | ) | ||||
Recoveries
|
8
|
50
|
||||||
Balance
at end of period
|
$ |
7,612
|
$ |
6,880
|
||||
Ratios:
|
||||||||
Net
charge-offs to average loans
|
||||||||
outstanding
(annualized)
|
0.11 | % | 0.03 | % | ||||
Allowance
for loan losses to non-performing
|
||||||||
loans
at end of period
|
755.16 | % | 341.78 | % | ||||
Allowance
for loan losses to total
|
||||||||
loans
at end of period
|
0.93 | % | 0.94 | % | ||||
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
Unused
lines of credit
|
$ |
143,268
|
$ |
135,374
|
||||
Amounts
due mortgagors
|
32,779
|
34,742
|
||||||
Standby
letters of credit
|
1,406
|
879
|
||||||
Commitments
to originate loans
|
20,917
|
42,551
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
Demand
|
$ |
104,411
|
$ |
97,190
|
||||
NOW
|
36,884
|
37,523
|
||||||
Regular
savings
|
63,361
|
65,475
|
||||||
Money
market
|
169,788
|
165,984
|
||||||
Certificates
of deposit
|
348,674
|
319,514
|
||||||
$ |
723,118
|
$ |
685,686
|
Loans
Delinquent For
|
||||||||||||||||||||||||
60
- 89 Days
|
90
Days and Over
|
Total
|
||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Number
|
Amount
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
At
September 30, 2007
|
||||||||||||||||||||||||
Residential
mortgages
|
4
|
$ |
510
|
2
|
$ |
119
|
6
|
$ |
629
|
|||||||||||||||
Commercial
mortgage
|
9
|
1,400
|
4
|
435
|
13
|
1,835
|
||||||||||||||||||
Construction
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home
equity
|
4
|
346
|
2
|
52
|
6
|
398
|
||||||||||||||||||
Commercial
and industrial
|
13
|
561
|
4
|
401
|
17
|
962
|
||||||||||||||||||
Automobile
|
|
8
|
55
|
-
|
-
|
8
|
55
|
|||||||||||||||||
Other
consumer
|
2
|
1
|
-
|
-
|
2
|
1
|
||||||||||||||||||
Total
|
40
|
$ |
2,873
|
12
|
$ |
1,007
|
52
|
$ |
3,880
|
|||||||||||||||
At
December 31, 2006
|
||||||||||||||||||||||||
Residential
mortgages
|
12
|
$ |
1,197
|
-
|
$ |
-
|
12
|
$ |
1,197
|
|||||||||||||||
Commercial
mortgage
|
6
|
524
|
7
|
1,144
|
13
|
1,668
|
||||||||||||||||||
Construction
|
1
|
108
|
-
|
-
|
1
|
108
|
||||||||||||||||||
Home
equity
|
7
|
157
|
1
|
20
|
8
|
177
|
||||||||||||||||||
Commercial
and industrial
|
6
|
93
|
4
|
123
|
10
|
216
|
||||||||||||||||||
Automobile
|
13
|
85
|
-
|
-
|
13
|
85
|
||||||||||||||||||
Other
consumer
|
-
|
-
|
1
|
1
|
1
|
1
|
||||||||||||||||||
Total
|
45
|
$ |
2,164
|
13
|
$ |
1,288
|
58
|
$ |
3,452
|
|||||||||||||||
At
September 30,
|
At
December 31,
|
|||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Residential
Real Estate (1):
|
||||||||
Substandard
assets
|
$ | 1,081 | (2,3) | $ |
1,252
|
|||
All
Other Loans:
|
||||||||
Special
mention assets
|
16,380
|
8,990
|
||||||
Substandard
assets
|
12,490
|
10,449
|
||||||
Doubtful
assets
|
299
|
1,290
|
||||||
Loss
assets
|
-
|
-
|
||||||
Foreclosed
Assets:
|
||||||||
Other
real estate owned
|
880
|
562
|
||||||
Total
classified assets
|
$ |
31,130
|
$ |
22,543
|
_______________________________________ |
(1) Includes
one-to-four family loans and home equity loans and lines of
credit.
|
(2) Includes
eight residential loans, four of which are in foreclosure or liquidation
proceedings.
|
(3) Includes
three commercial lending relationships.
|
Three
Months Ended September 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
and
|
Yield/
|
Average
|
and
|
Yield/
|
|||||||||||||||||||
Balance
|
Dividends
|
Cost
|
Balance
|
Dividends
|
Cost
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Residential
real estate
|
$ |
346,357
|
$ |
4,910
|
5.67 | % | $ |
316,118
|
$ |
4,436
|
5.61 | % | ||||||||||||
Commercial
real estate
|
238,013
|
3,963
|
6.66 | % |
197,146
|
3,312
|
6.72 | % | ||||||||||||||||
Home
equity loans
|
118,604
|
1,966
|
6.63 | % |
105,329
|
1,740
|
6.61 | % | ||||||||||||||||
Commercial
and industrial
|
78,659
|
1,460
|
7.42 | % |
66,115
|
1,190
|
7.20 | % | ||||||||||||||||
Consumer
and other
|
31,123
|
413
|
5.31 | % |
30,209
|
365
|
4.83 | % | ||||||||||||||||
Total
loans
|
812,756
|
12,712
|
6.26 | % |
714,917
|
11,043
|
6.18 | % | ||||||||||||||||
Investment
securities
|
168,498
|
2,017
|
4.79 | % |
211,101
|
2,195
|
4.16 | % | ||||||||||||||||
Other
interest-earning assets
|
17,082
|
247
|
5.78 | % |
13,572
|
256
|
7.54 | % | ||||||||||||||||
Total
interest-earning assets
|
998,336
|
14,976
|
6.00 | % |
939,590
|
13,494
|
5.74 | % | ||||||||||||||||
Noninterest-earning
assets
|
33,889
|
30,372
|
||||||||||||||||||||||
Total
assets
|
$ |
1,032,225
|
$ |
969,962
|
||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
accounts
|
$ |
62,005
|
139
|
0.90 | % | $ |
73,645
|
154
|
0.84 | % | ||||||||||||||
Money
market accounts
|
180,563
|
1,462
|
3.24 | % |
167,031
|
1,322
|
3.17 | % | ||||||||||||||||
NOW
accounts
|
34,070
|
46
|
0.54 | % |
36,682
|
24
|
0.26 | % | ||||||||||||||||
Certificates
of deposit
|
342,573
|
4,025
|
4.70 | % |
316,793
|
3,385
|
4.27 | % | ||||||||||||||||
Total
interest-bearing deposits
|
619,211
|
5,672
|
3.66 | % |
594,151
|
4,885
|
3.29 | % | ||||||||||||||||
FHLB
advances
|
156,150
|
1,914
|
4.90 | % |
134,833
|
1,582
|
4.69 | % | ||||||||||||||||
Other
interest-bearing liabilities
|
12,434
|
137
|
4.41 | % |
7,367
|
83
|
4.51 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
787,795
|
7,723
|
3.92 | % |
736,351
|
6,550
|
3.56 | % | ||||||||||||||||
Demand
deposits
|
101,119
|
93,247
|
||||||||||||||||||||||
Other
noninterest-bearing liabilities
|
3,491
|
4,085
|
||||||||||||||||||||||
Total
liabilities
|
892,405
|
833,683
|
||||||||||||||||||||||
Stockholders'
equity
|
139,820
|
136,279
|
||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ |
1,032,225
|
$ |
969,962
|
||||||||||||||||||||
Net
interest income
|
$ |
7,253
|
$ |
6,944
|
||||||||||||||||||||
Interest
rate spread(1)
|
2.08 | % | 2.19 | % | ||||||||||||||||||||
Net
interest-earning assets(2)
|
$ |
210,541
|
$ |
203,239
|
||||||||||||||||||||
Net
interest margin(3)
|
2.91 | % | 2.96 | % | ||||||||||||||||||||
Average
interest-earning assets to
|
||||||||||||||||||||||||
average
interest-bearing liabilities
|
126.73 | % | 127.60 | % |
|
(1)
|
Net
interest rate spread represents the difference between the yield
on
average interest-earning assets and the cost of average
interest-bearing liabilities.
|
|
(2)
|
Net
interest-earning assets represents total interest-earning assets
less
total interest-bearing liabilities.
|
|
(3)
|
Net
interest margin represents net interest income divided by average
total
interest-earning assets.
|
Three
months ended September 30
|
||||||||||||
2007
vs. 2006
|
||||||||||||
Increase
(Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
(In
thousands)
|
||||||||||||
Interest-earning
assets:
|
||||||||||||
Loans:
|
||||||||||||
Residential
real estate
|
$ |
428
|
$ |
46
|
$ |
474
|
||||||
Commercial
real estate
|
681
|
(30 | ) |
651
|
||||||||
Home
equity loans
|
220
|
6
|
226
|
|||||||||
Commercial
and industrial
|
232
|
38
|
270
|
|||||||||
Consumer
and other
|
11
|
37
|
48
|
|||||||||
Total
loans
|
1,572
|
97
|
1,669
|
|||||||||
Investment
securities
|
(481 | ) |
303
|
(178 | ) | |||||||
Other
interest-earning assets
|
58
|
(67 | ) | (9 | ) | |||||||
Total
interest-earning assets
|
1,149
|
333
|
1,482
|
|||||||||
Interest-bearing
liabilities:
|
||||||||||||
Savings
accounts
|
(25 | ) |
10
|
(15 | ) | |||||||
Money
market accounts
|
109
|
31
|
140
|
|||||||||
NOW
accounts
|
(2 | ) |
24
|
22
|
||||||||
Certificates
of deposit
|
287
|
353
|
640
|
|||||||||
Total
interest-bearing deposits
|
369
|
418
|
787
|
|||||||||
FHLB
advances
|
259
|
73
|
332
|
|||||||||
Other
interest-bearing liabilities
|
56
|
(2 | ) |
54
|
||||||||
Total
interest-bearing liabilities
|
684
|
489
|
1,173
|
|||||||||
Change
in net interest income
|
$ |
465
|
$ | (156 | ) | $ |
309
|
|||||
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Interest
|
Interest
|
|||||||||||||||||||||||
Average
|
and
|
Yield/
|
Average
|
and
|
Yield/
|
|||||||||||||||||||
Balance
|
Dividends
|
Cost
|
Balance
|
Dividends
|
Cost
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Residential
real estate
|
$ |
341,355
|
$ |
14,465
|
5.65 | % | $ |
304,227
|
$ |
12,709
|
5.57 | % | ||||||||||||
Commercial
real estate
|
233,394
|
11,564
|
6.61 | % |
182,813
|
8,974
|
6.55 | % | ||||||||||||||||
Home
equity loans
|
117,498
|
5,777
|
6.56 | % |
97,117
|
4,678
|
6.42 | % | ||||||||||||||||
Commercial
and industrial
|
73,157
|
4,041
|
7.36 | % |
62,649
|
3,335
|
7.10 | % | ||||||||||||||||
Consumer
and other
|
30,332
|
1,170
|
5.14 | % |
28,518
|
1,023
|
4.78 | % | ||||||||||||||||
Total
loans
|
795,736
|
37,017
|
6.20 | % |
675,324
|
30,719
|
6.07 | % | ||||||||||||||||
Investment
securities
|
171,575
|
5,849
|
4.55 | % |
219,713
|
6,761
|
4.10 | % | ||||||||||||||||
Other
interest-earning assets
|
22,393
|
935
|
5.57 | % |
19,989
|
786
|
5.24 | % | ||||||||||||||||
Total
interest-earning assets
|
989,704
|
43,801
|
5.90 | % |
915,026
|
38,266
|
5.58 | % | ||||||||||||||||
Noninterest-earning
assets
|
32,722
|
30,613
|
||||||||||||||||||||||
Total
assets
|
$ |
1,022,426
|
$ |
945,639
|
||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
accounts
|
$ |
64,066
|
427
|
0.89 | % | $ |
80,000
|
498
|
0.83 | % | ||||||||||||||
Money
market accounts
|
178,590
|
4,262
|
3.18 | % |
163,015
|
3,761
|
3.08 | % | ||||||||||||||||
NOW
accounts
|
34,386
|
137
|
0.53 | % |
35,969
|
69
|
0.26 | % | ||||||||||||||||
Certificates
of deposit
|
334,129
|
11,504
|
4.59 | % |
306,763
|
9,262
|
4.03 | % | ||||||||||||||||
Total
interest-bearing deposits
|
611,171
|
16,330
|
3.56 | % |
585,747
|
13,590
|
3.09 | % | ||||||||||||||||
FHLB
advances
|
158,857
|
5,716
|
4.80 | % |
119,678
|
3,822
|
4.26 | % | ||||||||||||||||
Other
interest-bearing liabilities
|
12,020
|
411
|
4.56 | % |
7,708
|
237
|
4.10 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
782,048
|
22,457
|
3.83 | % |
713,133
|
17,649
|
3.30 | % | ||||||||||||||||
Demand
deposits
|
97,946
|
91,878
|
||||||||||||||||||||||
Other
noninterest-bearing liabilities
|
3,422
|
3,404
|
||||||||||||||||||||||
Total
liabilities
|
883,416
|
808,415
|
||||||||||||||||||||||
Stockholders'
equity
|
139,010
|
137,224
|
||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ |
1,022,426
|
$ |
945,639
|
||||||||||||||||||||
Net
interest income
|
$ |
21,344
|
$ |
20,617
|
||||||||||||||||||||
Interest
rate spread(1)
|
2.07 | % | 2.28 | % | ||||||||||||||||||||
Net
interest-earning assets(2)
|
$ |
207,656
|
$ |
201,893
|
||||||||||||||||||||
Net
interest margin(3)
|
2.88 | % | 3.00 | % | ||||||||||||||||||||
Average
interest-bearing assets to
|
||||||||||||||||||||||||
average
interest-bearing liabilities
|
126.55 | % | 128.31 | % |
(1)
|
Net
interest rate spread represents the difference between the yield
on
average interest-earning assets and the cost of average interest-bearing
liabilities.
|
(2)
|
Net
interest-earning assets represents total interest-earning assets
less
total interest-bearing liabilities.
|
(3)
|
Net
interest margin represents net interest income divided by average
total
interest-earning assets.
|
Nine
months ended September 30
|
||||||||||||
2007
vs. 2006
|
||||||||||||
Increase
(Decrease) Due to
|
||||||||||||
Volume
|
Rate
|
Net
|
||||||||||
(In
thousands)
|
||||||||||||
Interest-earning
assets:
|
||||||||||||
Loans:
|
||||||||||||
Residential
real estate
|
$ |
1,571
|
$ |
185
|
$ |
1,756
|
||||||
Commercial
real estate
|
2,505
|
85
|
2,590
|
|||||||||
Home
equity loans
|
1,000
|
99
|
1,099
|
|||||||||
Commercial
and industrial
|
576
|
130
|
706
|
|||||||||
Consumer
and other
|
67
|
80
|
147
|
|||||||||
Total
loans
|
5,719
|
579
|
6,298
|
|||||||||
Investment
securities
|
(1,588 | ) |
676
|
(912 | ) | |||||||
Other
interest-earning assets
|
99
|
50
|
149
|
|||||||||
Total
interest-earning assets
|
4,230
|
1,305
|
5,535
|
|||||||||
Interest-bearing
liabilities:
|
||||||||||||
Savings
accounts
|
(104 | ) |
33
|
(71 | ) | |||||||
Money
market accounts
|
368
|
133
|
501
|
|||||||||
NOW
accounts
|
(3 | ) |
71
|
68
|
||||||||
Certificates
of deposit
|
871
|
1,371
|
2,242
|
|||||||||
Total
interest-bearing deposits
|
1,132
|
1,608
|
2,740
|
|||||||||
FHLB
advances
|
1,366
|
528
|
1,894
|
|||||||||
Other
interest-bearing liabilities
|
146
|
28
|
174
|
|||||||||
Total
interest-bearing liabilities
|
2,644
|
2,164
|
4,808
|
|||||||||
Change
in net interest income
|
$ |
1,586
|
$ | (859 | ) | $ |
727
|
|||||
Net
Interest Income At-Risk
|
||||
Estimated
Increase
|
Estimated
Increase
|
|||
Change
in Interest Rates
|
(Decrease)
in NII
|
(Decrease)
in NII
|
||
(Basis
Points)
|
(September
30, 2007)
|
(December
31, 2006)
|
||
-200
|
7.4%
|
12.1%
|
||
Stable
|
0.0%
|
0.0%
|
||
+200
|
(9.7)%
|
(10.9)%
|
September
30, 2007
|
||||||||||||||||||||||
NPV
as a Percentage of Present
Value
of Assets (3)
|
||||||||||||||||||||||
Estimated
Increase (Decrease) in
NPV
|
||||||||||||||||||||||
Change
in
Interest
Rates
(basis
points) (1)
|
Estimated
NPV
(2)
|
Amount
|
Percent
|
NPV
Ratio (4)
|
Increase
(Decrease)
(basis
points)
|
|||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||
+300
|
$ |
69,017
|
$ | (65,234 | ) | (49 | )% | 7.35 | % | (563 | ) | |||||||||||
+200
|
91,267
|
(42,984 | ) | (32 | ) |
9.42
|
(357 | ) | ||||||||||||||
+100
|
113,352
|
(20,899 | ) | (16 | ) |
11.32
|
(167 | ) | ||||||||||||||
0
|
134,251
|
—
|
—
|
12.99
|
—
|
|||||||||||||||||
-100
|
149,946
|
15,695
|
12
|
14.12
|
113
|
|||||||||||||||||
-200
|
159,694
|
25,443
|
19
|
14.72
|
174
|
|||||||||||||||||
|
(1)
|
Assumes
an instantaneous uniform change in interest rates at all
maturities.
|
|
(2)
|
NPV
is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet
contracts.
|
|
(3)
|
Present
value of assets represents the discounted present value of incoming
cash
flows on interest-earning assets.
|
|
(4)
|
NPV
Ratio represents NPV divided by the present value of
assets.
|
December
31, 2006
|
||||||||||||||||||||||
NPV
as a Percentage of Present
Value
of Assets (3)
|
||||||||||||||||||||||
Estimated
Increase (Decrease) in
NPV
|
||||||||||||||||||||||
Change
in
Interest
Rates
(basis
points) (1)
|
Estimated
NPV
(2)
|
Amount
|
Percent
|
NPV
Ratio (4)
|
Increase
(Decrease)
(basis
points)
|
|||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||
+300
|
$ |
71,274
|
$ | (48,844 | ) | (41 | )% | 7.61 | % | (444 | ) | |||||||||||
+200
|
88,681
|
(31,438 | ) | (26 | ) |
9.26
|
(279 | ) | ||||||||||||||
+100
|
104,940
|
(15,178 | ) | (13 | ) |
10.74
|
(132 | ) | ||||||||||||||
0
|
120,118
|
—
|
—
|
12.05
|
—
|
|||||||||||||||||
-100
|
131,068
|
10,950
|
9
|
12.95
|
89
|
|||||||||||||||||
-200
|
135,979
|
15,861
|
13
|
13.29
|
124
|
|
________________________________ |
|
(1)
|
Assumes
an instantaneous uniform change in interest rates at all
maturities.
|
|
(2)
|
NPV
is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet
contracts.
|
|
(3)
|
Present
value of assets represents the discounted present value of incoming
cash
flows on interest-earning assets.
|
|
(4)
|
NPV
Ratio represents NPV divided by the present value of
assets.
|
Payments
Due by Period
|
||||||||||||||||||||
Less
Than
|
One
to Three
|
Three
to Five
|
More
than
|
|||||||||||||||||
One
Year
|
Years
|
Years
|
Five
Years
|
Total
|
||||||||||||||||
Contractual
Obligations:
|
||||||||||||||||||||
Certificates
of deposit
|
$ |
310,260
|
$ |
33,417
|
$ |
4,997
|
$ |
-
|
$ |
348,674
|
||||||||||
Federal
Home Loan Bank advances
|
97,000
|
44,957
|
26,386
|
15,509
|
183,852
|
|||||||||||||||
Repurchase
agreements
|
7,519
|
-
|
-
|
-
|
7,519
|
|||||||||||||||
Standby
letters of credit
|
1,406
|
-
|
-
|
-
|
1,406
|
|||||||||||||||
Operating
leases
|
534
|
1,150
|
836
|
4,591
|
7,111
|
|||||||||||||||
Capitalized
lease
|
146
|
292
|
292
|
2,688
|
3,418
|
|||||||||||||||
Total
|
$ |
416,865
|
$ |
79,816
|
$ |
32,511
|
$ |
22,788
|
$ |
551,980
|
||||||||||
Commitments
to extend credit
|
$ |
198,370
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
198,370
|
||||||||||
As
of September 30, 2007:
|
||||
Total
risk-based capital
|
15.37 | % | ||
Tier
1 risk-based capital
|
14.37 | % | ||
Tier
1 leverage capital
|
10.48 | % | ||
As
of December 31, 2006:
|
||||
Total
risk-based capital
|
15.86 | % | ||
Tier
1 risk-based capital
|
14.83 | % | ||
Tier
1 leverage capital .
|
10.57 | % | ||
(c)
|
(d)
|
|||||||||||||||
Total
Number of
|
Maximum
Number
|
|||||||||||||||
Shares
|
(or
Approximate
|
|||||||||||||||
(a)
|
(b)
|
(or
Units)
|
Dollar
Value) of
|
|||||||||||||
Total
Number
|
Average
Price
|
Purchased
as Part
|
Shares
(or Units) that
|
|||||||||||||
of
Shares
|
Paid
Per
|
of
Publicly
|
May
Yet Be
|
|||||||||||||
(or
Units)
|
Share
|
Announced
Plans
|
Purchased
Under the
|
|||||||||||||
Period
|
Purchased
|
(or
Unit)
|
or
Programs
|
Plans
or Programs
|
||||||||||||
July
1 - 31, 2007
|
-
|
$ |
-
|
-
|
773,358
|
|||||||||||
August
1 - 31, 2007
|
3,693
|
11.05
|
-
|
773,358
|
||||||||||||
September
1 - 30, 2007
|
-
|
-
|
-
|
773,358
|
||||||||||||
Total
|
3,693
|
$ |
11.05
|
-
|
N/A
|
3.1
|
Charter
of United Financial Bancorp, Inc., as amended (1)
|
3.2
|
Resolution
and Consent of Sole Stockholder Amending the Charter of United Financial
Bancorp, Inc. (1)
|
3.3
|
Bylaws
of United Financial Bancorp, Inc. (3)
|
4
|
Form
of Common Stock Certificate of United Financial Bancorp, Inc.
(1)
|
10.1
|
Form
of Employee Stock Ownership Plan (1)
|
10.2
|
Executive
Supplemental Compensation Agreement by and between United Bank and
Richard
B. Collins (1)
|
10.3
|
Executive
Supplemental Compensation Agreement by and between United Bank and
Keith
E. Harvey (1)
|
10.4
|
Executive
Supplemental Compensation Agreement by and between United Bank and
John J.
Patterson (1)
|
10.5
|
United
Bank 2004 and 2005 Incentive Plans (1)
|
10.9
|
Directors
Fee Continuation Plan (1)
|
10.10
|
Form
of Employment Agreement by and between United Bank and Richard B.
Collins
(1)
|
10.11
|
Form
of Change in Control Agreement by and between United Bank and certain
executive officers (1)
|
10.12
|
United
Bank 2006 Stock-Based Incentive Plan (2)
|
11
|
Statement
Regarding Computation of Per Share Earnings (refer to Note D of Part
I,
|
Item
1- Consolidated Financial Statements)
|
|
21
|
Subsidiaries
of Registrant (1)
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
Certification
of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
|
Certification
of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
|
(1)
|
Incorporated
by reference to the Registration Statement on Form S-1 of United
Financial
Bancorp, Inc. (file no. 333-123371), originally filed with the Securities
and Exchange Commission on March 16, 2005.
|
(2)
|
Incorporated
by reference to Appendix B of the Registrant’s definitive Proxy Statement
for the Company’s 2006 Annual Meeting filed with the Securities and
Exchange Commission on June 12, 2006.
|
(3)
|
Incorporated
by reference to the Registrant’s Form 10-Q filed with the Securities and
Exchange Commission on May 9,
2007.
|
United
Financial Bancorp, Inc.
|
||
Date:
November 8,
2007
|
By:
|
/s/
Richard B. Collins
|
Richard
B. Collins
|
||
Chairman,
President and Chief Executive Officer
|
||
Date:
November 8,
2007
|
By:
|
/s/
Mark A. Roberts
|
Mark
A. Roberts
|
||
Executive
Vice President and Chief Financial
Officer
|