United Financial Bancorp, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015; Provides Earnings Guidance for 2016
January 26, 2016 at 04:25 pm EST
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United Financial Bancorp, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2015. The company had net income of $9.9 million, or $0.20 per diluted share, for the quarter ended December 31, 2015, compared to net income for the linked quarter of $13.4 million, or $0.27 per diluted share. Operating net income for the fourth quarter of 2015 was $11.3 million (Non-GAAP), or $0.23 per diluted share, compared to $10.9 million, or $0.22 per diluted share for the linked quarter. The Company reported net income of $1.4 million, or $0.03 per diluted share, for the quarter ended December 31, 2014. Return on average assets (annualized) was 0.66% against 0.11% a year ago. Return on average equity (annualized) was 6.35% against 0.90% a year ago. Net interest income was $40.693 million against $41.892 million a year ago. Income before income taxes was $10.071 million against loss of $4.516 million a year ago. Total operating revenue was $47.021 million against $42.201 million a year ago. Headline GAAP earnings per share for the fourth quarter of 2015 was only $0.20 per share.
Net income for the year ended December 31, 2015 was $49.6 million, or $1.00 per diluted share, and increased from $6.8 million or $0.16 per diluted share for the year ended December 31, 2014. Operating net income of $44.2 million (Non-GAAP), or $0.90 per diluted share for the year ended December 31, 2015 increased from $26.7 million, or $0.62 per diluted share for the year ended December 31, 2014. For 2015, the company's return on average assets (ROA) was 0.87%, and return on average equity (ROE) was 8.08%, resulting from strong commercial loan growth, and consistent mortgage banking activity. Tangible book value per share increased to $10.07 at December 31, 2015 from $10.06 at September 30, 2015, primarily due to the impact of the Company's net income of $9.9 million and awards granted under the 2015 Omnibus Stock Incentive Plan in the fourth quarter. These increases were partially offset by the cash dividend payment to shareholders of $0.12 per share. Book value per share at December 31, 2015 was $12.53. Net interest income was $164.582 million against $137.872 million a year ago. Income before income taxes was $55.869 million against $0.549 million a year ago. Total operating revenue was $183.259 million against $141.722 million a year ago.
The company provided earnings guidance for 2016. The company expects continued revenue growth from commercial banking, retail banking and financial advisory in 2016, including high single-digit fee income growth from the new teams it listed out in late 2014, early 2015. Overall in 2016, the company expects double-digit operating revenue growth, with mid-single-digit expense growth, which should yield attractive operating leverage. The company expects to focus in 2016 is to grow its operating pretax, pre-provision, return on assets, so it moves from around the third quartile into the $10 billion banks nationally, to near the first quartile over next few years. Currently, its effective tax rate is anticipated to change from 11% to 25% in 2016. By moving from third quartile, PTPP ROA to near first quartile, the company will drive stronger core earnings. The company is expecting to have a stable operating net interest margin for the year 2016 as compared to 2015. The company's operating net interest margin is expected to be stable for 2016.
United Financial Bancorp, Inc. is a bank holding company. The Company, through its subsidiary United Bank (the Bank) and various subsidiaries, delivers financial services to individuals, families and businesses in Connecticut and Massachusetts, including retail, commercial and consumer banking, as well as financial advisory services. The Company's operations include the delivery of loan and deposit products to customers. Personal and business banking customers also bank with the Company online through its Website at www.bankatunited.com, as well as its mobile and telephone banking channels. The Company originates commercial loans, commercial real estate loans, residential and commercial construction loans, residential real estate loans collateralized by one- to four-family residences, home equity lines of credit and fixed rate loans and other consumer loans. The principal lending activity of the Bank is to originate loans secured by first mortgages on one- to four-family residences.
United Financial Bancorp, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015; Provides Earnings Guidance for 2016