United Financial Bancorp 8-K United Financial Bancorp Reports Second Quarter 2011

Exhibit 99.1

FOR IMMEDIATE RELEASE	For More Information Contact:
	Mark A. Roberts
	Executive Vice President & CFO
	(413) 787-1700

UNITED FINANCIAL BANCORP REPORTS SECOND QUARTER 2011

EARNINGS OF $2.7 MILLION, OR $0.18 PER DILUTED SHARE

ANNOUNCES 13% INCREASE IN QUARTERLY DIVIDEND PAYMENT TO $0.09 PER SHARE

WEST SPRINGFIELD, MA— July 22, 2011—United Financial Bancorp, Inc. (the “Company”) (NASDAQ Global Select Market: UBNK), the holding company for United Bank (the “Bank”), reported net income of $2.7 million, or $0.18 per diluted share, for the second quarter of 2011 compared to net income of $2.9 million, or $0.19 per diluted share, for the corresponding period in 2010. For the six months ended June 30, 2011, net income was $5.1 million, or $0.33 per diluted share, compared to net income of $4.7 million or $0.30 per diluted share, for the same period in 2010. The Company also announced a 13% increase in its quarterly cash dividend to $0.09 per share, payable on September 2, 2011 to shareholders of record as of August 12, 2011.

“We are pleased with our ability to profitably grow our franchise while maintaining excellent asset quality and a strong capital position,” commented Richard B. Collins, President and Chief Executive Officer. “While our performance continues to be affected by a challenging economic environment and a very competitive local market, we remain committed to improving our financial performance and enhancing shareholder value. As a result of our consistent, stable financial results we are pleased to reward our shareholders with a 13% increase in our quarterly dividend payment.”

Earnings Summary

• Net interest income increased $95,000, or 1%, to $13.4 million for the second quarter of 2011 driven by higher average interest-earning assets partially reduced by net interest margin compression. Total average interest-earning assets increased $69.5 million, or 5%, to $1.509 billion as compared to the second quarter of 2010 driven by growth in investment securities and loan balances. Net interest margin declined 14 basis points to 3.55% for the three months ended June 30, 2011 due to lower amortization of acquisition accounting adjustments ($528,000 in the second quarter of 2011 compared to $706,000 in the second quarter of 2010), the downward re-pricing of certain fixed rate loans and investments as a result of the lower interest rate environment and an increase in funds held in lower-yielding cash equivalents. These items were partially offset by lower funding costs.

• Provision for loan losses increased by $223,000, or 50%, to $673,000 for the three months ended June 30, 2011 primarily as a result of an increase in reserves for classified and impaired loans and growth in net loan originations.

• Non-interest income remained flat at $2.2 million for the three months ended June 30, 2011. Excluding a security impairment charge of $59,000, non-interest income increased $51,000, or 2%, from the same period one year ago mainly driven by an increase of $53,000, or 16%, in bank owned life insurance income and an increase of $47,000, or 28%, in wealth management income as a result of growth in assets under management and annuity sales. The results were also impacted by lower gains from sales of loans.

• Non-interest expense increased $772,000, or 7%, to $11.4 million for the three months ended June 30, 2011 from $10.6 million in the same period last year. Excluding acquisition related expenses totaling $169,000 incurred in the second quarter of 2010 in connection with the company’s acquisition of CNB Financial Corp. (“CNB”), non-interest expense would have increased $941,000 or 9%. Salaries and benefits increased $446,000, or 7%, mainly driven by annual wage increases, staffing costs for the new loan production office opened in 2011 and a larger incentive plan accrual due to improved operating performance. Other expenses increased $484,000, or 34%, primarily as a result of a $198,000 operating loss from an investment in a low income housing tax credit fund, an increase in other real estate owned costs as the 2010 results included a gain from the sale of a property and increases in furniture and equipment depreciation and the writedown of mortgage servicing rights. These increases were partially offset by an $81,000, or 25%, decrease in FDIC premium expense, which reflects the positive impact of the new assessment calculation that became effective on April 1, 2011.

• Income taxes decreased $665,000, or 45%, to $827,000 for the three months ended June 30, 2011 from $1.5 million in the same period last year primarily due to a lower effective tax rate. The effective tax rate decreased from 34% in the second quarter of 2010 to 24% for the second quarter of 2011 largely as a result of tax credits from an investment in a low income housing fund and an increase in tax exempt municipal investment income in 2011.

Balance Sheet Activity

• Total assets increased $24.8 million, or 2%, to $1.610 billion at June 30, 2011 from year-end reflecting growth in investment securities and loan balances, offset in part by declining cash balances.

• Investment securities grew $23.4 million, or 7%, to $361.8 million at June 30, 2011 from year-end reflecting the use of excess cash to fund additional purchases of agency mortgage-backed securities.

• Total loansincreased by $29.2 million, or 3%, to $1.103 billion at June 30, 2011 from year-end reflecting an increase in net origination activity in the residential real estate, commercial real estate, commercial and construction portfolios as a result of business development efforts and competitive products and pricing.

• Cash and cash equivalents decreased $43.6 million, or 53%, to $39.5 million at June 30, 2011 from year-end as excess cash was used to fund investment security purchases and paydown maturing FHLB advances.

• Total deposits increased $46.0 million, or 4%, to $1.189 billion at June 30, 2011 from year-end reflecting growth of $69.1 million, or 10%, in core account balances, partially offset by a decrease of $23.1 million, or 5%, in certificates of deposit. The growth in core account balances was driven by strong demand in all categories, particularly demand and savings accounts. Core deposit balances were $749.8 million, or 63% of total deposits, at June 30, 2011 compared to $680.7 million, or 60% of total deposits, at December 31, 2010.

• Short-term borrowings and long-term debtdecreased $4.3 million and $18.5 million, respectively, during the six months ended June 30, 2011 mainly due to the use of excess cash balances to pay down FHLB advances.

Credit Quality & Reserve Coverage

• Non-performing assets totaled $12.4 million, or 0.77% of total assets, at June 30, 2011 compared to $11.0 million, or 0.69% of total assets, at December 31, 2010. The growth of $1.4 million in non-performing assets during the first six months of 2011 was primarily due to an increase in other real estate owned.

• At June 30, 2011, the ratio of the allowance for loan losses to total loans was 0.96% compared to 0.93% at December 31, 2010. Excluding the impact of loans acquired from CNB and other financial institutions totaling $189.3 million at June 30, 2011 and $231.2 million at December 31, 2010, the ratio of the allowance for loan losses to total loans would have been 1.16% at June 30, 2011 and 1.18% at December 31, 2010. Net charge-offs totaled $828,000, or 0.15% of average loans outstanding (annualized), for the six months ended June 30, 2011 as compared to net charge-offs of $641,000, or 0.12% of average loans outstanding (annualized), for the same period in 2010.

Capital and Liquidity

The Company remains well capitalized with a tangible equity-to-tangible assets ratio of 13.66% at June 30, 2011. At June 30, 2011 the Company continued to have considerable liquidity including significant unused borrowing capacity at the Federal Home Loan Bank and the Federal Reserve Bank as well as access to funding through the repurchase agreement and brokered deposit markets.

United Financial Bancorp, Inc. is a publicly owned corporation and the holding company for United Bank, a federally chartered bank headquartered at 95 Elm Street, West Springfield, MA 01090. The Company’s common stock is traded on the NASDAQ Global Select Market under the symbol UBNK. As of June 30, 2011, the Company had total consolidated assets of $1.6 billion. United Bank provides an array of financial products and services through its 16 branch offices and two express drive-up branches in the Springfield region of Western Massachusetts and six branches in the Worcester region of Central Massachusetts. The bank also operates a loan production office located in Beverly, Massachusetts. Through its Wealth Management Group, the Bank offers access to a wide range of investment and insurance products and services, as well as financial, estate and retirement strategies and products. For more information regarding the Bank’s products and services and for United Financial Bancorp, Inc. investor relations information please visitwww.bankatunited.com or on Facebook atfacebook.com/bankatunited.

Except for the historical information contained in this press release, the matters discussed may be deemed to be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in

the Company’s market area, competition, and other risks detailed from time to time in the Company’s SEC reports. Actual strategies and results in future periods may differ materially from those currently expected. These forward-looking statements represent the Company’s judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.

UNITED FINANCIAL BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands, except par value amounts)

	June 30, 2011			December 31, 2010			June 30, 2010
	(unaudited)			(audited)			(unaudited)
Assets
Cash and cash equivalents	$	39,452		$	83,069		$	57,878
Investment securities		361,750			338,327			300,347
Loans held for sale		342			—			725
Loans:
Residential mortgages		314,255			295,721			317,346
Commercial mortgages		437,378			427,994			425,091
Construction loans		28,903			27,553			38,978
Commercial loans		167,884			165,335			152,972
Home equity loans		138,023			138,290			138,268
Consumer loans		16,864			19,218			21,586
Total loans		1,103,307			1,074,111			1,094,241
Net deferred loan costs and fees		2,051			2,073			2,333
Allowance for loan losses		(10,640	)		(9,987	)		(9,722	)
Loans, net		1,094,718			1,066,197			1,086,852
Federal Home Loan Bank of Boston stock, at cost		15,365			15,365			15,365
Other real estate owned		2,858			1,536			2,007
Deferred tax asset, net		11,675			11,029			12,181
Premises and equipment, net		16,257			15,565			15,647
Bank-owned life insurance		39,832			29,180			28,526
Goodwill		8,192			8,192			7,731
Other intangible assets		987			975			1,059
Other assets		18,225			15,442			16,597
Total assets	$	1,609,653		$	1,584,877		$	1,544,915
Liabilities and Stockholders’ Equity
Deposits:
Demand	$	195,925		$	175,996		$	166,999
NOW		42,390			40,922			41,149
Savings		238,335			203,165			191,386
Money market		273,115			260,573			249,289
Certificates of deposit		439,505			462,645			458,873
Total deposits		1,189,270			1,143,301			1,107,696
Short-term borrowings		16,702			21,029			15,644
Long-term debt		154,773			173,307			177,397
Subordinated debentures		5,494			5,448			5,402
Escrow funds held for borrowers		1,893			1,899			1,687
Due to broker		—			3,002			—
Capitalized lease obligations		4,943			5,011			5,077
Accrued expenses and other liabilities		8,813			9,304			8,910
Total liabilities		1,381,888			1,362,301			1,321,813
Stockholders’ Equity:
Preferred stock, par value $0.01 per share, authorized 50,000,000 shares; none issued		—			—			—
Common stock, par value $0.01 per share; authorized 100,000,000 shares; shares issued: 18,706,933 at June 30, 2011, December 31, 2010 and June 30, 2010		187			187			187
Additional paid-in capital		181,654			180,322			179,065
Retained earnings		85,618			82,899			79,962
Unearned compensation		(10,405	)		(10,750	)		(11,096	)
Accumulated other comprehensive income, net of taxes		5,839			4,858			6,496
Treasury stock, at cost (2,607,458 shares at June 30, 2011, 2,597,827 shares at December 31, 2010 and 2,348,307 shares at June 30, 2010)		(35,128	)		(34,940	)		(31,512	)
Total stockholders’ equity		227,765			222,576			223,102
Total liabilities and stockholders’ equity	$	1,609,653		$	1,584,877		$	1,544,915

UNITED FINANCIAL BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands, except per share amounts)

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
	(unaudited)					(unaudited)
Interest and dividend income:
Loans	$	14,703		$	15,404	$	29,190		$	30,861
Investments		3,387			3,122		6,578			6,414
Other interest-earning assets		38			10		78			18
Total interest and dividend income		18,128			18,536		35,846			37,293
Interest expense:
Deposits		3,194			3,507		6,491			6,882
Borrowings		1,552			1,742		3,182			3,628
Total interest expense		4,746			5,249		9,673			10,510
Net interest income before provision for loan losses		13,382			13,287		26,173			26,783
Provision for loan losses		673			450		1,481			1,183
Net interest income after provision for loan losses		12,709			12,837		24,692			25,600
Non-interest income:
Net gain on sales of loans		50			109		73			197
Net gains on sales of securities		—			—		1			—
Impairment charges on securities		(59	)		—		(59	)		(145	)
Fee income on depositors’ accounts		1,373			1,340		2,665			2,711
Wealth management income		214			167		454			305
Income from bank-owned life insurance		393			340		724			686
Other income		240			263		502			502
Total non-interest income		2,211			2,219		4,360			4,256
Non-interest expense:
Salaries and benefits		6,414			5,968		12,683			12,046
Occupancy expenses		805			800		1,649			1,727
Marketing expenses		635			622		1,082			1,182
Data processing expenses		984			959		1,972			2,026
Professional fees		407			358		1,068			899
Acquisition related expenses		—			169		—			1,148
FDIC insurance assessments		244			325		574			740
Other expenses		1,914			1,430		3,315			2,881
Total non-interest expense		11,403			10,631		22,343			22,649
Income before income taxes		3,517			4,425		6,709			7,207
Income tax expense		827			1,492		1,590			2,523
Net income	$	2,690		$	2,933	$	5,119		$	4,684
Earnings per share:
Basic	$	0.18		$	0.19	$	0.34		$	0.30
Diluted	$	0.18		$	0.19	$	0.33		$	0.30
Weighted average shares outstanding:
Basic		15,028			15,440		15,022			15,529
Diluted		15,309			15,518		15,285			15,590

UNITED FINANCIAL BANCORP, INC. AND SUBSIDIARY

SELECTED DATA AND RATIOS (unaudited)

(Dollars in thousands, except per share amounts)

	At or For The Quarters Ended
	Jun. 30 2011			Mar. 31 2011			Dec. 31 2010			Sep. 30 2010			Jun. 30 2010
Operating Results:
Net interest income	$	13,382		$	12,791		$	12,961		$	13,167		$	13,287
Loan loss provision		673			808			352			750			450
Non-interest income		2,211			2,149			2,357			2,103			2,219
Non-interest expense		11,403			10,940			10,736			10,456			10,631
Net income		2,690			2,429			2,671			2,677			2,933
Performance Ratios (annualized):
Return on average assets		0.67	%		0.62	%		0.69	%		0.70	%		0.77	%
Return on average equity		4.76	%		4.36	%		4.80	%		4.80	%		5.24	%
Net interest margin		3.55	%		3.42	%		3.53	%		3.64	%		3.69	%
Non-interest income to average total assets		0.55	%		0.54	%		0.61	%		0.55	%		0.58	%
Non-interest expense to average total assets		2.85	%		2.77	%		2.76	%		2.73	%		2.79	%
Efficiency ratio (1)		73.09	%		73.34	%		70.86	%		68.58	%		69.05	%
Per Share Data:
Diluted earnings per share	$	0.18		$	0.16		$	0.18		$	0.18		$	0.19
Book Value Per Share	$	14.15		$	13.92		$	13.82		$	13.73		$	13.64
Tangible book value per share	$	13.58	(2)	$	13.35	(2)	$	13.25	(2)	$	13.18	(2)	$	13.10	(2)
Market price at period end	$	15.43		$	16.51		$	15.27		$	13.51		$	13.65
Risk Profile
Equity as a percentage of assets		14.15	%		14.01	%		14.04	%		14.37	%		14.44	%
Tangible equity as a percentage of tangible assets		13.66	%(2)		13.51	%(2)		13.54	%(2)		13.87	%(2)		13.95	%(2)
Net charge-offs to average loans outstanding (annualized)		0.18	%		0.12	%		0.11	%		0.19	%		0.12	%
Non-performing assets as a percent of total assets		0.77	%		0.62	%		0.69	%		0.83	%		1.20	%
Non-performing loans as a percent of total loans, gross		0.86	%		0.76	%		0.88	%		1.06	%		1.19	%
Allowance for loan losses as a percent of total loans, gross		0.96	%(3)		0.95	%(3)		0.93	%(3)		0.90	%(3)		0.89	%(3)
Allowance for loan losses as a percent of non-performing loans		112.01	%		125.20	%		105.86	%		85.30	%		74.58	%
Average Balances
Loans	$	1,103,305		$	1,090,796		$	1,091,756		$	1,091,859		$	1,100,409
Securities		356,479			341,804			310,024			298,335			294,849
Total interest-earning assets		1,509,438			1,493,946			1,470,127			1,447,147			1,439,953
Total assets		1,602,767			1,579,048			1,555,266			1,533,489			1,526,154
Deposits		1,179,166			1,145,296			1,115,775			1,095,764			1,084,885
FHLBB advances		138,215			147,880			153,965			155,987			158,333
Stockholders’ Equity		226,279			223,067			222,749			222,995			223,928
Average Yields/Rates (annualized)
Loans		5.33	%		5.31	%		5.60	%		5.64	%		5.60	%
Securities		3.80	%		3.73	%		3.68	%		3.98	%		4.24	%
Total interest-earning assets		4.80	%		4.74	%		4.94	%		5.08	%		5.15	%
Savings accounts		0.76	%		0.77	%		0.87	%		0.86	%		0.96	%
Money market/NOW accounts		0.70	%		0.71	%		0.84	%		0.86	%		0.87	%
Certificates of deposit		1.99	%		2.06	%		2.16	%		2.21	%		2.14	%
FHLBB advances		3.60	%		3.52	%		3.62	%		3.61	%		3.57	%
Total interest-bearing liabilities		1.61	%		1.68	%		1.83	%		1.85	%		1.86	%

(1) Excludes gains/losses on sales of securities and loans and impairment charges on securities.

(2) Excludes the impact of goodwill and other intangible assets of $9.2 million at June 30, 2011, March 31, 2011 and December 31, 2010, $9.0 million at September 30, 2010 and $8.8 million at June 30, 2010.

(3) Excluding acquired loans of $168.6 million, $178.7 million, $209.8 million, $219.9 million and $228.8 million and loans purchased from other financial institutions of $20.8 million, $21.1 million, $21.4 million, $21.8 million and $22.1 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively, allowance for loan losses as a percent of total loans, gross would have been 1.16%, 1.17%, 1.18%, 1.16% and 1.15% for the quarters ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010 and June 30, 2010, respectively.