Exhibit 99.1
united financial bancorp, inc.
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united financial
bancorp, inc.
NASDAQ Global Select Market: UBNK FourthQuarter 2014
Forward Looking Statements
This Presentation contains forward-looking statements that are within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. These risks and uncertainties could cause our results to differ materially from those set forth in such forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “estimates,” “targeted” and similar expressions, and future or conditional verbs, such as “will,” “would,” “should,” “could” or “may” are intended to identify forward-looking statements but are not the only means to identify these statements. Forward-looking statements involve risks and uncertainties. Actual conditions, events or results may differ materially from those contemplated by a forward-looking statement. Factors that could cause this difference — many of which are beyond our control — include without limitation the following: Any forward-looking statements made by or on behalf of us in this Presentation speak only as of the date of this Presentation. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. The reader should; however, consult any further disclosures of a forward-looking nature we may make in future filings.
With regard to presentations compared to peer institutions, the peer companies include: BHLB, BRKL, CBU, CUBI, DCOM, FCF, FFIC, IBCP, NPBC, NBTB, NWBI, PFS, STBA, STL, TMP, and TRST. The data presented in this presentation relating to the peer companies is based on the calendar year. Data for peers is sourced from SNL Financial LLC.
NON-GAAP FINANCIAL MEASURES
This presentation references non-GAAP financial measures incorporating tangible equity and related measures, and operating earnings excluding non-recurring costs. These measures are commonly used by investors in evaluating financial condition. GAAP earnings are lower than core earnings primarily due to non-recurring conversion, balance sheet restructuring and cost cutting initiative related expenses. Reconciliations are in earnings releases at www.unitedfinancialinc.com.
united financial
bancorp, inc.
NASDAQ: UBNK 2
Corporate Contacts
William H. W. Crawford, IV
Chief Executive Officer
Eric R. Newell, CFA
Executive Vice President, Chief Financial Officer
David C. Paulson
Executive Vice President, Head of Wholesale Banking
Brandon C. Lorey
Executive Vice President, Head of Consumer Lending
Investor Information:
Marliese L. Shaw
Executive Vice President, Corporate Secretary/Investor Relations Officer
860-291-3622 or mshaw@bankatunited.com
united financial
bancorp, inc.
NASDAQ: UBNK 3
Table of Contents
Page | ||
Management Team | 5 | |
Branch Franchise | 6 | |
Balance Sheet Trends | 7 | |
Balance Sheet Summary | 8 | |
Deposit Market Share | 10 | |
How United Creates Value | 11 | |
2015 Priorities | 12 | |
Appendix | 14 |
united financial
bancorp, inc.
NASDAQ: UBNK 4
Management Team
Name | Title/Function | Years in Industry / Years at United | Prior Experience | |||
William H.W. Crawford | Chief Executive Officer | 26/3 | Wells Fargo Bank, Wachovia Bank | |||
Marino J. Santarelli | Chief Operating Officer | 41/3 | Wells Fargo Bank, Wachovia Bank | |||
Dena M. Hall | Western MA Regional President | 17/9 | Woronoco Savings Bank | |||
Craig W. Hurty | Chief Human Resource Officer | 30/0 | Aetna, PacifiCare Health Systems | |||
Mark A. Kucia | Chief Credit Officer | 27/9 | Liberty Bank, Mechanics Bank, BayBank | |||
Brandon C. Lorey | Head of Consumer Lending | 24/2 | H&R Block Bank, Chevy Chase Federal Savings Bank | |||
Eric R. Newell | Chief Financial Officer | 11/3 | FDIC, Fitch Ratings, Alliance Bernstein | |||
David C. Paulson | Head of Wholesale Banking | 29/1 | Santander, Wells Fargo, Wachovia | |||
Betsy Wynnick | Chief Risk Officer | 22/2 | NewAlliance Bank, Webster Bank |
united financial
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NASDAQ: UBNK 5
Branch Franchise
Leading New England community bank with $5.4 billion in assets and over 50 branches in two states with the size, scale and product breadth to compete effectively.
#1 community bank in combined Hartford and Springfield market
Massachusetts
Connecticut
United Bank Branches
United Bank Loan Production Offices
united financial
bancorp, inc.
NASDAQ: UBNK 6
Balance Sheet Trends
Second Quarter balances reflect 4/30/2014 merger of United Financial Bancorp, Inc. with and into Rockville Financial, Inc.
Total Net Loans ($ millions)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1,410 1,457 1,587 1,697 1,740 3,675 3,773 3,877
2010Y 2011Y 2012Y 2013Y 2014Q1 2014Q2 2014Q3 2014Q4
Total Deposits ($ millions)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1,219 1,327 1,505 1,735 1,808 3,940 4,029 4,035
2010Y 2011Y 2012Y 2013Y 2014Q1 2014Q2 2014Q3 2014Q4
Total Assets ($ millions)
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
1,678 1,750 1,999 2,302 2,373 5,159 5,314 5,477
2010Y 2011Y 2012Y 2013Y 2014Q1 2014Q2 2014Q3 2014Q4
united financial
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Balance Sheet Summary: Loans
($ in millions) 4Q14 3Q14 QOQ
Commercial Real Estate 1,678.9 1,659.7 4.6%
Commercial Construction 172.6 121.2 169.6%
Commercial Business 613.6 618.9 -3.4%
Total Commercial Loans 2,465.1 2,399.8 10.9%
Residential Real Estate 1,413.7 1,365.1 14.2%
Residential Construction 13.3 10.2 121.6%
Installment & Collateral Loans 5.8 16.4 -258.5%
Total Consumer Loans 1,432.8 1,391.7 11.8%
Total Gross Loans 3,897.9 3,791.5 11.2%
16% CAGR for commercial loans in last 6 years, continue excellent asset quality
Goal of high single digit growth on $3.9 billion base (11% annualized in 2014Q4
Record residential production in 2014Q4 and for the year 2014
Overall Composition
Residential Real Estate, 36.3%
Residential Construction, 0.3%
Installment & Collateral Loans, 0.1%
Commercial Real Estate, 43.1%
Commercial Business, 15.7%
Commercial Construction, 4.5%
12/31/2014
CRE Loans - Regions
New England (less CT/MA), 5.0%
NJ, 3.0%
NY, 12.0%
PA, 2.0%
CT, 47.0%
MA, 30.0%
FL/SC, 0.0%
MD/VA, 1.0%
12/31/2014
C&I Loans
Owner Occupied Mortgage, 30.4%
SBA-Guaranteed Loans, 0.2%
USDA, 2.2%
Lines of Credit, 29.7%
Term Loans, 37.6%
12/31/2014
united financial
bancorp, inc.
NASDAQ: UBNK
Note: QOQ growth rate is annualized
8
Balance Sheet Summary: Deposits
($ in millions) 4Q14 3Q14 QOQ
Demand & NOW 902.5 933.1 -13.1%
Regular Savings & Club 528.6 547.9 -14.1%
Money Market Savings 1,047.3 996.9 20.2%
Time Deposits 1,556.9 1,551.1 1.5%
Total Deposits Loans 4,035.3 4,029.0 0.6%
Improved market share in about 80% of our deposit markets in 2014
Ranked in the top 3 market share in many of our seasoned markets
Overall Composition
Time Deposits, 38.6%
Demand and NOW, 22.3%
Money Market Savings, 26.0%
Regular Savings & Club, 13.1%
12/31/2014
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
32.6% 32.9% 33.6% 38.3% 38.5% 38.6%
29.6% 30.2% 30.2% 24.0% 24.7% 26.0%
13.0% 12.7% 12.5% 14.2% 13.6% 13.1%
24.7% 24.2% 23.7% 23.5% 23.2% 22.3%
2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4
Legacy RCKB
Combined UBNK
Demand and NOW
Regular Savings & Club
Money Market Savings
Time Deposits
united financial
bancorp, inc.
NASDAQ: UBNK
Note: QOQ growth rate is annualized
9
Deposit Market Share
Hartford—Springfield MSA Deposit Market Share
2014 Rank
Institution (ST)
Branches
Deposits ($mm)
Market Share
1 Bank of America Corp. 69 22,453 40.3%
2 Toronto-Dominion Bank 52 4,419 7.9%
3 Webster Financial Corp. 58 4,202 7.5%
4 United Financial Bancorp, Inc. 47 3,616 6.5%
5 People’s United Financial Inc. 51 2,722 4.9%
6 First Niagara Financial Group 48 2,162 3.9%
7 Liberty Bank 30 1,940 3.5%
8 Torrington SB 24 1,671 3.0%
9 First Connecticut Bancorp, Inc 25 1,667 3.0%
10 PeoplesBancorp MHC 19 1,501 2.7%
Total For All Institutions In Market 604 55,732
New England MSA—Population (2014) (thousands)
4,694
1,601
1,214
927 862
627 521
Boston Providence Hartford Worcester New Haven Springfield Portland
Hartford MSA
Springfield MSA
New Haven MSA
Worcester MSA
Population (2014) 1,213,855 627,016 862,425 926,813
Median Income $67,457 $51,430 $61,762 $63,581
Avg. Home Price
Appreciation (12 mo) 0.39% -0.47% 2.44% 3.77%
Deposits (bn) $40 $13 $22 $15
Major Industry 1 Education & Health Services Education & Health Services Education & Health Services Education & Health Services
Major Industry 2 Trade, Transportation, & Utilities Trade, Transportation, & Utilities Trade, Transportation, & Utilities Trade, Transportation, & Utilities
Major Industry 3 Government Government Government Government
Major Industry 4 Professional & Business Services Manufacturing Professional & Business Services Professional & Business Services
Major Industry 5 Financial Activities Leisure & Hospitality Leisure & Hospitality Leisure & Hospitality
united financial
bancorp, inc.
NASDAQ: UBNK 10
Source: SNL Financial
How United Creates Value
Commercial Banking
Attract/Retain top local talent in each market we serve
RAROC
Strong credit culture & quick decision turnaround
Grow low cost core deposits
Recruit Bankers and clients from mega-bank competitors
Team Expansion in Central & Western Mass 4Q2014
Drive greater productivity and efficiency in 2015/2016
Consumer Lending
New technology, new products, new leadership
35 Commission based Mortgage Loan Officers (MLOs) from large banks with deep roots in the community
Taking market share from large banks
Solid gain on sale income
Expanding direct sales channels:
Recruiting MLOs
Home equity lines new process
Private label credit card
Secondary market sales
Correspondent lending
Retail Banking
Highly efficient model, FTE/Deposits, 50+ branches
Strong customer service measured by Greenwich Associates
Grow via cross-sell of customer base
Customers to become transactors, borrowers & investors
Debit card, credit card, mobile banking, mortgage, home equity & investment services
Reduce cost structure – less branches and increase mobile & on-line direct channels
12 Financial Advisors currently serving 50+ retail branch network
Finance & Risk
Detailed cost center reporting
Business unit review process
Asset Liability Management modeling in-house
RAROC model & transfer pricing
Actively manage investment portfolio
Strong capital planning & budgeting process
Strong liquidity management and monitoring
Strong risk management focus & governance
united financial
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2015 Priorities
Achieve Announced Cost Saves
Continue Efficiency Improvements & refining organizational cost structure
Grow fee income businesses – debit card, financial advisory, loan level hedge & mortgage banking
Continue to drive revenue synergies and increase market share
Mortgage Banking
Wealth Management
Talent Recruitment
Continue to acquire commercial banking teams
Recruit high performing commission based mortgage loan officers
Grow financial advisory business
Capital Deployment Opportunities
Strategic plans developed for organic growth priority
Selectively evaluate other capital deployment opportunities
united financial bancorp, inc.
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2015 Priorities (cont.)
2015: Operating Run Rate Goals
Financial Performance Metric
Targets
NIE / Average Assets
<2.00%
Return on Tangible Common Equity
~10.0%
Efficiency
~57%
2015 Operating Budget: Continue to evaluate cost saving opportunities throughout entire enterprise as we develop 2015 & 2016 operating budgets. Opportunities will be enhanced by critical analysis of cost center expense reporting
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APPENDIX
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Institutional Ownership
9/30/2014
Retail, 27.8%
Institutional 66.7%
Stakeholder/Insider, 5.5%
Top Institutional Holders As of September 30, 2014
Holder Name Position % O/S
BlackRock Institutional Trust Company, N.A. 3,108,474 5.9%
Keeley Asset Management Corp 2,541,342 4.8%
Dimensional Fund Advisors L.P. 2,070,536 3.9%
Cardinal Capital Management, L.L.C. 1,909,128 3.6%
Investment Counselors of Maryland, LLC 1,671,810 3.2%
Rockville Bank ESOP 1,586,638 3.0%
The Vanguard Group, Inc. 1,500,887 2.9%
Northern Trust Investments, Inc. 1,262,229 2.4%
Systematic Financial Management, L.P. 1,208,411 2.3%
EJF Capital LLC 1,203,944 2.3%
united financial
bancorp, inc.
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15
4Q2014 Financial Results
Income Statement ($ in thousands, except per share data) 4Q14 3Q14
Operating Interest Income $38,471 38,365
Operating Non-Interest income 3,730 3,646
Total Operating Revenue 42,201 42,011
Non-Interest Expense 45,076 34,922
Branch Lease Termination Adjustment (1,888)
Merger Adjustments (10,625) (4,497)
Total Operating Expense 32,563 30,425
Pre-tax, Pre-provision Operating Income 9,638 11,586
Net Operating Income 8,316 10,450
GAAP Earnings per Diluted Share $0.03 $0.19
Operating Earnings per Diluted Share $0.16 $0.20
Key Ratios
Tax-Equivalent Net Interest Margin 3.44% 3.56%
Operating Return on Average Assets 0.62% 0.80%
Operating Return on Average Tangible Common Equity 6.96% 7.93%
Efficiency Ratio 96.03% 72.09%
Operating NIE / Average Assets 2.42% 2.32%
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16
Non-GAAP Reconciliation
United Financial Bancorp, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(Dollars In Thousands)
(Unaudited)
Three Months Ended
Years Ended
Net income (loss)
Adjustments:
Net interest income
Non-interest income
Non-interest expense
Income tax expense (benefit)
Net adjustment
Total operating net income
Total net interest income
Adjustments:
Impact from purchase accounting fair value marks:
(Accretion) / Amortization of loan mark
Accretion / (Amortization) of deposit mark
Accretion / (Amortization) of borrowings mark
Net adjustment
Total operating net interest income
Total non-interest income
Adjustments:
Net (gain) loss on sales of securities
Loss on fixed assets - branch optimization
Net adjustment
Total operating non-interest income
Total operating net interest income
Total operating revenue
Total non-interest expense
Adjustments:
Merger and acquisition expense
Core deposit intangible amortization expense
Effect of position eliminations
Effect of branch lease termination agreements
Amortization of fixed asset fair value mark
Net adjustment
Total operating expense
Total loans
Non-covered loans (1)
Total covered loans
Allowance for loan losses
Allowance for loan losses to total loans
Allowance for loan losses to total covered loans
December 31, 2014
$1,421
(3,421)
729
12,513
(2,926)
6,895
$8,316
$41,892
(1,543)
1,276
602
(3,421)
$38,471
$3,001
59
670
729
3,730
38,471
$42,201
$45,076
(10,136)
(481)
-
(1,888)
(8)
(12,513)
$32,563
$3,897,866
(1,658,594)
$2,239,272
24,809
0.64%
1.11%
September 30, 2014
$9,985
(3,828)
(430)
4,497
226
465
$10,450
$42,193
(1,734)
1,482
612
(3,828)
$38,365
$4,076
(430)
-
(430)
3,646
38,365
$42,011
$34,922
(4,008)
(481)
-
-
(8)
(4,497)
$30,425
$3,791,491
(1,693,669)
$2,097,822
22,304
0.59%
1.06%
June 30, 2014
$(5,571)
(4,948)
(589)
21,266
(4,346)
11,383
$5,812
$36,879
(3,388)
1,150
410
(4,948)
$31,931
$6,319
(589)
-
(589)
5,730
31,931
$37,661
$46,177
(20,945)
(321)
-
-
-
(21,266)
$24,911
$3,693,115
(1,820,526)
$1,872,589
$21,343
0.58%
1.14%
March 31, 2014
$947
-
(268)
1,829
(357)
1,204
$2,151
$16,908
-
-
-
-
$16,908
$3,209
(268)
-
(268)
2,941
16,908
$19,849
$18,257
(1,829)
-
-
-
-
(1,829)
$16,428
$1,756,611
-
$1,756,611
$19,500
1.11%
1.11%
December 31, 2013
$1,757
-
-
2,141
(602)
1,539
$3,296
$16,976
-
-
-
-
$16,976
$2,959
-
-
-
2,959
16,976
$19,935
$17,175
(2,141)
-
-
-
-
(2,141)
$15,034
$1,713,792
-
$1,713,792
$19,183
1.12%
1.12%
December 31, 2014
$6,782
(12,197)
(558)
40,105
(7,403)
19,947
$26,729
$137,872
(6,665)
3,908
1,624
(12,197)
$125,675
$16,605
(1,228)
670
(558)
16,047
125,675
$141,722
$144,432
(36,918)
(1,283)
-
(1,888)
(16)
(40,105)
$104,327
$3,897,866
(1,655,102)
$2,242,764
24,809
0.64%
1.11%
December 31, 2013
$14,227
-
(585)
3,511
(853)
2,073
$16,300
$67,057
-
-
-
-
$67,057
$17,051
(585)
-
(585)
16,466
67,057
$83,523
$62,466
(2,141)
-
(561)
(809)
-
(3,511)
$58,955
$1,713,792
-
$1,713,792
$19,183
1.12%
1.12%
(1) As required by GAAP, the Company recorded at fair value the loans acquired in the legacy United transactions. These loans carry no allowance for loan losses for the periods reflected above.
united financial
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Credit Quality - Covered Portfolio
($ in millions)
Provision for loan losses
Net Charge-offs
Total covered loans
Allowance
Allowance / loans
Nonperforming loans
NPLs / Loans - covered
Special mention loans
Special mention loans as a % of total covered loans
Substandard loans
Substandard loans as a % of total covered loans
4Q14
4.333
0.246
2,239.272
24.809
1.11%
14.700
0.66%
26.152
1.17%
39.124
1.75%
3Q14
2.633
0.866
2,097.822
22.304
1.06%
15.575
0.74%
19.02
0.91%
32.832
1.57%
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Credit Quality – Non-Covered Portfolio
($ in millions) 4Q14 3Q14
Provision for loan losses 0 0
Net Charge-offs 1.583 0.806
Total non-covered loans 1,658.594 1,693.669
Allowance 0 0
Allowance / non-covered loans 0.00% 0.00%
Nonperforming loans 17.658 13.714
Credit discount on non-covered loans 27.196 29.989
credit discount / non-covered loans 1.64% 1.77%
Special mention loans 30.687 25.007
Special mention as a % of total covered loans 1.85% 1.48%
Substandard loans 46.657 58.297
Substandard as a % of total covered loans 2.81% 3.44%
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Investment Securities (as of December 31, 2014)
Portfolio Stats ($ in millions) 4Q14 3Q14
Market Value 1,069 1,029
Yield 2.9% 2.9%
Average Rating AA AA
MBS Portfolio 602 602
Total Portfolio Duration (years) 3.2 3.4
Summary of Quarterly Securities Purchases 4Q14 3Q14
Average Yield 2.9% 3.0%
Average Rating AA AA
Investment Portfolio Summary (Total)
December 31, 2014
Agency MBS 27%
Preferred 2%
Equity & MF 0%
Gov’t Agency 1%
Corp Debt 4%
CMBS/CCMO 16%
Muni 19%
FFELP 3%
SBA 1%
CLO 13%
Securities / Assets (%)
25.00
20.00
15.00
10.00
5.00
0.00
13.2 16.2 17.0 18.0 18.9 19.9 19.4 19.9 19.9
2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4
Source: SNL Financial
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Accretion Table
Loan Accretion Certificates of Deposit Borrowings Total
$ in Thousands
For the quarter ended June 30, 2014 $3,388 $1,150 $410 $4,948
For the quarter ended September 30, 2014 1,734 1,482 612 3,828
For the quarter ended December 31, 2014 1,543 1,276 602 3,421
For the years ending December 31,
2015 3,596 3,209 1,874 8,679
2016 3,409 1,335 1,692 6,436
2017 3,005 728 1,152 4,885
2018 2,966 213 233 3,412
Thereafter (646) - (1,352) (1,998)
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