United Financial Bancorp 8-K Presentation Materials for Sterne Agee 2012 Financial Institutions Investor Conference

Presentation Materials for Sterne Agee 2012 Financial Institutions Investor Conference

February 12-14, 2012

Orlando, FL

Holding Company for

Exhibit 99.1

Forward Looking Statements

Certain comments made in the course of this presentation by UBNK are forward-looking in nature.  These include all statements about UBNK’s operating results or financial position for periods ending or on dates occurring after  December

31, 2011 and usually use words such as “expect”, “anticipate”, “believe”, and similar expressions.  These comments represent management’s current beliefs, based upon information available to it at the time the statements are made with

regard to the matters addressed. 

All forward looking statements are subject to risks and uncertainties that could cause UBNK’s actual results or financial condition to differ materially from those expressed in or implied by such statements.  Factors of particular importance

to UBNK include, but are not limited to: (1) changes in general economic conditions, including interest rates; (2) competition among providers of financial services; (3) changes in the interest rate environment that reduce our margins or

reduce the fair value of financial instruments; (4) adverse changes in the securities markets; and (5) our ability to enter new markets successfully and capitalize on growth opportunities.  UBNK does not undertake any obligation to update or

revise any forward-looking statements, whether as a result of new information, future events or otherwise.

2

2

Why hold shares of UBNK?

Experienced management team

focused on creating shareholder value

Superior

return

on

your

investment:

CAGR

8.3%

vs.

S&P

CAGR

0.5%)

Aug

2005

–

Dec 2011

Good track record of increasing dividends (quarterly dividends increased 80% since Feb 2006)

Increased quarterly cash dividend by 13% to $0.09 per share in July 2011

Well capitalized

(13.53% Tangible Equity/ Tangible Assets)

Effective capital management strategies

$13.69 since June 2008)

Competitive dividend yield (2.24% as of 12/31/11)

Leveraging capital through a growing franchise

Acquisition of CNB in November 2009

Extend geographic reach (new loan office opened in Beverly, MA)

De Novo branching (new branch to open in Q2 2012)

Balanced loan & deposit mix and growth

Strong

market

position

in

both

loans

&

deposits

More

bank-like

mix

in

loans

66% in core deposits

Asset quality

Largest two NPLs comprise 36% of 12/31/11 total (workout  strategies in place)

89%

of Investment portfolio is agency backed

Successful

stock

repurchase

program

(acquired

3.0

million

shares

at

an

average

price

of

3

3

Experienced and Invested Management Team

Name

Title

Years in

Industry

Prior Experience

Stock

Ownership

Richard B. Collins

Chairman of the Board,

President and Chief

Executive Officer

40+

Joined United Bank in 2001.                                   

CEO of First Massachusetts Bank, N.A.

133,211

Keith E. Harvey 

Executive Vice President

and Chief Operating

Officer, Operations and

Retail Sales

35+

Joined United Bank in 1984.                                    

Experience concentrated in Retail Bank

Management, Operations and Information

Technology

64,064

Mark A. Roberts 

Executive Vice President

and Chief Financial Officer

25+

Joined United Bank in 2006.                                    

VP and Controller at The Connecticut Bank and

Trust Company in Hartford, CT

49,252

VP Finance at Woronoco Savings Bank

J. Jeffrey Sullivan 

Executive Vice President

and Chief Lending Officer

20+

Joined United Bank in 2003.                                   

SVP Business Development and Commercial

Lending at Bank of Western Massachusetts          

53,561

Charles R. Valade 

Executive Vice President,

Commercial Lending

35+

Joined United Bank in 2009.                                    

Founder, President and Chief Executive Officer of

Commonwealth National Bank

42,826

John J. Patterson 

Senior Vice President,                              

Risk Management

40+

Experience concentrated in Risk Management and

Credit  Administration

32,183

Joined United Bank in 1993.

4

4

Effective Capital Management Strategy:

Maintain competitive dividend yield

Successful common stock repurchase program:

Completed:

four buy back programs since June of 2008

with total repurchases of 2,994,036 at average price of

$13.69 (16% of outstanding shares) as of 12/31/11

In progress:

5% program commenced on 10/26/10

to repurchase 807,803 shares. As of 12/31/11, the bank

repurchased 477,700 shares or 59%.

Deploying our Strong Capital Position

CAPITAL

Franchise Expansion:

De Novo branching (six new

branches in the past five years)

New loan offices

Organic growth

Strategic acquisitions

Commercial Lending Focus:

New loan production office opened in

Beverly, MA (March 2011)

Plan to add 3 more experienced 

Commercial Lenders

Maintain focus on experience/

conservative underwriting and credit

administration

Expand/diversify sources of non-interest income:

$150mm AUM at United Wealth Management Group

(as of 12/31/11); 50% of AUM is fee-based

Consistent growth in consumer/commercial checking

accounts

5

5

Dividend History & Share Buybacks*

* As of 12/31/11

Shares Repurchased

2008

2009

2010

2011

Total

Amount

261,798

1,537,787

798,242

396,209

2,994,036

$ Value

$ 3,496,920

$ 20,593,752

$ 10,849,879

$  6,042,446

$ 40,982,997

Dividend $ Payout

$ 4,436,000

$   4,238,000

$   4,589,000

$  5,067,000

$ 18,330,000

(1)

Please refer to page 32 in

the appendix for the

reconciliation of GAAP

and non-GAAP results.

$0.29

$0.50

$0.24

$0.70

$0.74

$0.26

$0.57

$0.20

$0.27

$0.28

$0.30

$0.34

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

2006Y

2007Y

2008Y (1)

2009Y (1)

2010Y (1)

2011Y

Core EPS

Dividends per share

6

6

Total Return Stock Performance vs. Major Indexes

Total Return CAGR  includes:

•Cumulative dividends for both first and second step

stock offerings.

•Conversion factor impact on first step of 1.04079

bringing cost basis to $9.5921 from $10.

•First and second step original offering price was $10.

Total Return CAGR

UBNK: First Step Aug 2005 –

Dec 2011

9.91%

UBNK: Second Step Dec 2007 –

Dec 2011

14.67%

S&P 500 : Aug 2005 –

Sept 2011 (excl. dividends)

0.53%

7

7

Future Growth and Expansion Opportunities

Capital from conversion still not fully deployed

Well positioned to explore future strategic options

Capital levels well above the minimum to be considered “well capitalized”

Shares are trading in line with New England community bank peer group

based on tangible book value

Growing the franchise organically

New branch to open in Q2 2012 (east of Worcester)

New loan production office opened in 2011 in Beverly, MA

Organic deposit growth to continue in de novo branches

Criteria for the future expansion

Small adjacent footprint acquisition possible if an attractive opportunity presents itself

Grow in areas with favorable demographic trends

8

8

Construction

3%

1-4 Family RE

28%

Multifamily & Commercial RE

40%

Consumer & HE

13%

Commercial

16%

Commercial

9%

Construction

5%

1-4 Family RE

44%

Consumer &

HE

18%

Multifamily &

Commercial

RE

24%

Shift toward Bank-Like Mix for Loans

Mortgage

Market

Share

–

#2

in

Hampden

County

in

2011.

Total

loans

CAGR

(2005

–

2011)

9.9%

Continued conservative Underwriting Standards.

Well

diversified

CRE

portfolio

–

no

significant

concentrations.

$314.8

$

176.1

$450.2

Total Loans $1,121.9

QTD Yield 5.18%

$285.2

$112.0

$59.6

$150.1

$29.8

Total Loans $635.8

Yield 5.92%

$28.9

$150.5

$30.3

Loan Mix as of December 31, 2005

(in millions)

Loan Mix as of December 31, 2011

(in millions)

9

9

< 70% LTV

62%

> 76%  LTV

20%

70% - 75% LTV

18%

> $1 million

46%

< $1 million

54%

Commercial Loan Portfolio

$256.1

$233.1

•5 out of market loans above 70% LTV

•LTV ratios estimated based on most recent appraised

values (i.e. time of loan or subsequent if applicable)

$29.8

Total Commercial, CRE &

Construction Loans -

$656.5 million

$29.8

$352.7

$303.8

$49.2

$152.4

$43.4

Total CRE loans > $1 million -

$245.0 million

$1 million = 131 loans = $303.8 million

$245 million CRE

$51 million C&I

$8 million Construction

Loan

grade:

$197.8

million

-

Strong

or

Good

$82.9

million

-

Acceptable

$23.1

million

-

Special

Mention

or

Classified

< $1 million = 2,000+ loans = $352.7 million

•Average size $185k; Median size $100k

Commercial Loans (in millions)

December 31, 2011

CREs over $1 million (in millions)

December 31, 2011

10

10

Retail

24%

Retail

Petroleum

3%

Industrial

24%

Hospitality

5%

Health Care

2%

Office

17%

Apartments

10%

Other

15%

Investor

67%

Owner

Occupied

33%

CRE Loans Over $1 million

$29.8

Total CRE Loans over $1mm: $245.0 million

$233.1

$29.8

$80.1

$164.9

Total CRE Loans over $1mm: $245.0 million

CRE Mix as of December 31, 2011

(in millions)

Owner Occupied % as of  December 31, 2011

(in millions)

•Average Loan size $427,000 for entire CRE portfolio;

•Median Loan size is $210,000

•Two largest CRE loans are $13.0 million office

building and $9.0 million supermarket

•Retail includes:

$20 million neighborhood retail

$16 million credit rated pharmacies

$18 million anchored Supermarkets

•80% of non-owner occupied loans originated in

primary market area

•65% of non-owner occupied portfolio originated

by Springfield;

35% originated by Worcester

•5 largest developer relationships are between

$8-$24 million

$35.8

$24.4

$58.0

$42.5

$5.1

$13.3

$57.7

$8.2

11

11

1-4 Family

18%

Condo

19%

Land

Development

22%

Commercial

41%

Construction

Trades

15%

Manufacturing

23%

Retail Other

10%

Transportation

5%

Healthcare

5%

Wholesale

14%

Other Service

28%

Reduced Construction and Diversified C&I Mix

$256.1

$29.8

$233.1

•Portfolio is approximately 30% of balance during peak in

2006 ($94 million at 12/31/06)

•Condo loans centered in 4 projects with strong local

sponsors

•1-4 family loans are highly diversified across 20+ projects

with average loan size under $350,000

$256.1

$29.8

•Diversified

•Average Loan size under $100k

•Largest C&I Loan is $6.5 million (cash secured)

•Regional Mix: $111 million Springfield and

$65 million Worcester

Total Commercial Construction Loans: $28.6 million

2.6% of Overall Loan Portfolio

Total C&I Loans: $176.1 million

$11.6

$5.2

$26.2

$40.2

$24.8

$17.3

$9.1

$8.8

$49.7

$6.4

$5.4

Commercial Construction Mix as of December 31, 2011

(in millions)

C&I Mix as of December 31, 2011

(in millions)

12

12

Asset Quality

•

Largest two NPL’s comprise 36% of 12/31/11 total and are

being actively resolved: one through upgrade and one

through liquidation.

•

Reserves to Total Loans ratio of 1.16% at 12/31/11,

excluding purchased loans totaling $165 million (CNB $146

million, all other $19 million). The ratio for all loans was

0.99%.

•

Conservative investment portfolio –

89% of portfolio is

agency backed.

Non-performing Assets/Total Assets

2005Y

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

Net Charge-offs to Avg Loans

National average

Non-performing Loans/Total Loans

National average

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

National Average

13

13

Deposits increased $576 million, or 88% since 12/31/05.

Including CNB acquisition ($195 million):

Deposit Market Share -

#2 in Hampden County (June 2011)

Total deposits CAGR (2005 –

2011) 11.1%

Core deposits 66% of total

Total core deposits CAGR (2005 –

2011) 13.7%

Money Market

24%

Savings

13%

CDs

43%

Transaction

20%

Transaction

21%

Savings

20%

Money Market

25%

CDs

34%

Deposit Mix and Growth

Total Deposits $653.6 million

QTD Cost of Total Deposits 2.21%

Total Deposits $1,230.0 million

QTD Cost of Total Deposits 0.97%

$258.8

$301.8

$421.7

$247.7

$87.3

$154.2

$133.2

$279.0

Deposit Mix as of December 31, 2005

(in millions)

Deposit Mix as of December 31, 2011

(in millions)

14

14

De Novo Branches: Success Story

Established track record of growing de novo branches

Proven ability to acquire deposits quickly: $123.8 million in 6 branches

since June 2006

Organic  deposit growth  is a key to expanding market  share

Expand

our

presence

in

new

markets

(i.e.

northern

Connecticut

,

east

of

Worcester)

Short

time

to

break-even

Gain at least $5 million in deposits per year

Any

income

in

first

3

years

from

loans

accelerates

time

to

break-even

5 years is expected full payback time

Continue

to

upgrade

our

products

and

services

(i.e.

Visa

credit

card)

Strong and effective marketing programs

Efficient and profitable branches enhance future success

Franchise Expansion in

Attractive Markets

Compelling  Profit

Economics

Increase Our Brand

Recognition

15

15

Financial Performance

(1)

Please refer to pages 32 and 33 in the appendix for the reconciliation of GAAP and non-GAAP results.

2006

2007

2008

(1)

2009

(1)

2010

(1)

2011

Earnings Data (in mm except ESP):

Core Net Income

4.9

$     

4.4

$      

8.1

$      

8.6

$      

10.9

$     

11.2

$   

Core Earnings Per Share

$0.29

$0.26

$0.50

$0.57

$0.70

$0.74

Net Interest Income

27.6

$   

29.2

$    

39.8

$    

41.0

$    

52.9

$     

52.8

$   

Provision for Loan Losses

1.0

1.4

1.8

3.0

2.3

3.2

Normalized Non-interest Income

5.4

5.7

6.6

8.7

8.7

9.4

Normalized Non-interest Expenses

24.0

26.0

30.7

33.5

42.7

44.1

Profitability Data and Ratios:

Average Earning Assets (mm)

$926

$1,001

$1,147

$1,208

$1,448

$1,504

Net Interest Margin

2.97%

2.91%

3.47%

3.39%

3.65%

3.51%

Efficiency Ratio

72.95%

74.02%

66.16%

68.49%

69.55%

71.07%

Asset Quality:

Non-performing Assets/Total Assets

0.18%

0.25%

0.46%

1.16%

0.69%

0.65%

Allowance for Loan Losses/ Total Loans   

(excluding purchased loans)

0.95%

0.94%

0.95%

1.07%

1.18%

1.16%

Net Charge-offs/Total Average Loans

0.02%

0.12%

0.15%

0.23%

0.13%

0.19%

Capital:

Tangible Equity/Tangible Assets

13.64%

20.95%

18.03%

14.20%

13.60%

13.53%

Tangible Book Value Per Share

8.01

$   

12.73

$ 

13.01

$  

12.93

$  

13.32

$   

13.90

$ 

Dividends Per Share

0.20

$   

0.24

$    

0.27

$    

0.28

$    

0.30

$     

0.34

$   

Period End Stock Price

13.80

$ 

11.10

$ 

15.14

$  

13.11

$  

15.27

$   

16.09

$ 

16

16

Why buy and hold shares of UBNK?

Good return on investment in last 6 years

Increasing quarterly dividends and attractive yield

Strong capital position (13.53% Tangible Equity / Tangible Assets)

Good credit quality

Consistent and growing earnings (exceeded $11M in 2011)

Continued share buybacks

Good growth opportunities in the future

Holding Company for

APPENDIX

18

18

Loan Trend

Total Loans

$1,122 mm

1-4 Family RE

Multifamily & Commercial RE

Consumer & HE

Commercial

Construction

$285

$319

$339

$356

$321

$343

$296

$315

$150

$176

$215

$248

$289

$410

$428

$450

$112

$143

$147

$148

$148

$161

$151

$60

$70

$82

$85

$95

$159

$165

$176

$29

$55

$42

$32

$32

$49

$28

$30

$158

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2005Y

2006Y

2007Y

2008Y

2009Y

2009Y

2010Y

2011Y

19

19

Deposit Trend

Total Deposits

$1,230mm

$154

$164

$168

$161

$174

$190

$261

$302

$87

$65

$66

$99

$142

$174

$203

$248

$133

$135

$137

$147

$159

$197

$217

$259

$279

$321

$348

$376

$379

$478

$463

$422

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

2005Y

2006Y

2007Y

2008Y

2009Y

2009Y

2010Y

2011Y

Money Market

Savings

Transaction

CD's

20

20

Annual Core Net Income  &Earnings Per Share

6 YR CAGR = EPS 14.4%, Net Income 17.0%

(1)

Please refer to page 32 in the appendix for the reconciliation of GAAP and non-GAAP results.

$0.74

$0.33

$0.70

$0.57

$0.50

$0.26

$0.29

0

2,000

4,000

6,000

8,000

10,000

12,000

2005Y

2006Y

2007Y

2008Y (1)

2009Y (1)

2010Y (1)

2011Y

$0.00

$0.20

$0.40

$0.60

$0.80

Core Net Income

Core EPS

21

21

Quarterly Core Net Income

(1)

& Earnings Per Share

(1)

$0.13

$0.14

$0.15

$0.16

$0.19

$0.18

$0.18

$0.16

$0.20

$0.20

$0.18

$0.14

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

$3,200

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

Core Net Income

Core EPS

(1)

Please refer to page 31 in the appendix for the reconciliation of GAAP and non-GAAP results.

22

22

Average Interest-Earning Assets (000’s)

$827,363

$1,504,137

$1,447,712

$1,207,705

$1,146,992

$1,001,436

$926,274

$500,000

$700,000

$900,000

$1,100,000

$1,300,000

$1,500,000

$1,700,000

2005Y

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

23

23

Net Interest Margin

3.65%

3.51%

2.97%

2.91%

3.47%

3.39%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

24

24

Non-interest Income/Average Assets

0.57%

0.56%

0.55%

0.56%

0.68%

0.58%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

25

25

Non-interest Expense/Average Assets

2.78%

2.75%

2.64%

2.59%

2.52%

2.51%

2.00%

2.25%

2.50%

2.75%

3.00%

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

26

26

Efficiency Ratio

69.55%

71.07%

68.49%

66.16%

74.02%

72.95%

50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

27

27

Total Assets (000’s)

$906,513

$1,584,877

$1,599,882

$1,541,040

$1,009,433

$1,079,281

$1,263,134

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2005Y

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

28

28

Asset Quality

0.17%

0.88%

0.75%

0.55%

0.22%

1.45%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

0.02%

0.07%

0.12%

0.17%

0.22%

0.27%

0.32%

0.37%

Non-performing Loans/Total Loans

Net Charge-Offs to Avg Loans

29

29

Tangible Equity/Tangible Assets

13.60%

13.53%

14.20%

18.03%

20.95%

13.64%

10.00%

11.00%

12.00%

13.00%

14.00%

15.00%

16.00%

17.00%

18.00%

19.00%

20.00%

21.00%

22.00%

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

30

30

Tangible BV/Share vs. Stock Price

$8.01

$12.73

$13.01

$12.93

$13.30

$13.90

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

2006Y

2007Y

2008Y

2009Y

2010Y

2011Y

Tangible BV/Share

Stock Price

31

31

Reconciliation of GAAP and Non-GAAP for the Eight Quarters Ended December 31, 2010

($ in thousands)

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Non-Interest Income (GAAP)

1,851

2,595

1,985

2,245

2,037

2,219

2,103

2,357

Other Than Temporary Impairment Charge

-

-

-

-

-

-

-

-

Adjusted Non-Interest Income (Non-GAAP)

1,851

2,595

1,985

2,245

2,037

2,219

2,103

2,357

Non-Interest Expense (GAAP)

8,155

8,331

8,093

10,580

11,039

10,462

10,456

10,736

Acquisition Costs

-

1,161

979

169

-

-

Special FDIC Insurance Assessment

-

538

-

-

-

-

Adjusted Non-Interest Expense (Non-GAAP)

8,155

10,030

8,093

10,580

12,018

10,631

10,456

10,736

Net Income (GAAP)

2,123

560

1,901

1,222

1,751

2,933

2,677

2,671

Adjustments to GAAP Net Income:

Other Than Temporary Impairment Charge

-

-

-

-

-

-

-

-

Acquisition Costs

-

1,161

270

1,432

979

169

-

-

Special FDIC Assessment

-

538

-

-

-

-

-

-

Income Tax Effect -

All Items

-

(220)

-

(336)

(280)

(49)

-

-

Adjusted Net Income (Non-GAAP)

2,123

2,039

2,171

2,318

2,450

3,053

2,677

2,671

Per Share Data:

Diluted earnings per share (GAAP)

0.14

$      

0.04

$      

0.13

$       

0.08

$       

0.11

$      

0.19

$   

0.18

$   

0.18

$   

Diluted earnings per share (Non-GAAP)

0.14

$      

0.13

$      

0.14

$       

0.15

$       

0.16

$      

0.19

$   

0.18

$   

0.18

$   

The following table presents reconciliations of the company's GAAP and Non-GAAP (Normalized) results for the eight quarters ended December 31, 2010.

32

32

($ in thousands)

2008

2009

2010

Non-Interest Income (GAAP)

5,220

8,676

8,716

Other Than Temporary Impairment Charge

1,377

-

-

Adjusted Non-Interest Income (Non-GAAP)

6,597

8,676

8,716

Non-Interest Expense (GAAP)

30,690

36,858

43,841

Acquisition Costs

-

(2,863)

(1,148)

Special FDIC Insurance Assessment

-

(537)

-

Adjusted Non-Interest Expense (Non-GAAP)

30,690

33,458

43,841

Net Income (GAAP)

7,298

5,806

10,032

Adjustments to GAAP Net Income:

Other Than Temporary Impairment Charge

1,377

-

-

Acquisition Costs

-

2,863

1,148

Special FDIC Assessment

-

538

-

Income Tax Effect -

All Items

(527)

(556)

(329)

Adjusted Net Income (Non-GAAP)

8,148

8,651

10,851

Per Share Data:

Diluted earnings per share (GAAP)

0.44

$       

0.38

$       

0.65

$       

Diluted earnings per share (Non-GAAP)

0.50

$       

0.57

$       

0.70

$       

At or For the Years Ended December 31,

The following table presents reconciliations of the company's GAAP and Non-GAAP (Normalized) results at and for

the years ended December 31, 2008, 2009 and 2010.

Reconciliation of GAAP and Non-GAAP Results for the Years 2008-2010

33

33

Reconciliation of GAAP and Non-GAAP Results for the Years 2008-2010

($ in thousands)

2008

2009

2010

Performance Ratios (annualized):

Return on average assets (GAAP)

0.62%

0.46%

0.65%

Return on average assets (Normalized)

0.68%

0.68%

0.71%

Return on average equity (GAAP)

3.23%

2.67%

4.49%

Return on average equity (Normalized)

3.59%

3.97%

4.85%

Efficiency ratio (GAAP)

66.16%

75.45%

71.42%

Efficiency ratio (Normalized)

66.16%

68.49%

69.55%

Total Loans

870,276

1,122,241

1,074,111

CNB Acquired Loans

-

(242,930)

(209,785)

Purchased Loans (GE Loans)

-

(22,655)

(21,448)

Total Loans (Non-GAAP)

870,276

856,656

842,878

Total Equity

227,714

225,246

222,576

Goodwill

-

(7,844)

(8,192)

Tangible Equity (Non-GAAP)

227,714

217,402

214,384

Total Assets

1,263,134

1,541,040

1,584,877

Goodwill

-

(7,844)

(8,192)

Tangible Assets (Non-GAAP)

1,263,134

1,533,196

1,576,685

Asset Quality:

Allowance for Loan Losses/Total Loans

0.95%

0.82%

0.93%

Allowance for Loan Losses/Total Loans excl. Purchased Loans

0.95%

1.07%

1.18%

Capital:

Total Equity/Total Assets

18.03%

14.62%

14.04%

Tangible Equity/Tangible Assets

18.03%

14.18%

13.60%

Book Value Per Share

13.01

$      

13.38

$      

13.82

$      

Tangible Book Value Per Share

13.01

$      

12.93

$      

13.30

$      

At or For the Years Ended December 31,

The following table presents reconciliations of the company's GAAP and Non-GAAP (Normalized) results at and for

the years ended December 31, 2008, 2009 and 2010.

Holding Company for

FOR QUESTIONS, PLEASE CONTACT:

Dena M. Hall, SVP, Marketing and Investor Relations 

(413) 787-

1292

dhall@bankatunited.com

Mark A. Roberts, Executive Vice President and Chief Financial Officer

(413) 787-1201

mroberts@bankatunited.com