FOR IMMEDIATE RELEASE	For More Information Contact:
	Dena M. Hall
	Vice President
	(413) 787-1700

 

·

For the period ended March 31, 2006, growth in net loans consisted of a $3.7 million increase in residential mortgages, a $4.5 million increase in commercial real estate loans and a $1.9 million increase in consumer loans.

·

Asset quality remained strong with delinquencies at .26% of total loans and non-performing assets at .18% of total assets at March 31, 2006 compared to .27% and .37%, respectively, at December 31, 2005. At March 31, 2006 the allowance for loan losses amounted to $6.6 million. This represented 1.02% of total loans. This is a slight increase from 1.00% which existed at December 31, 2005.

·

Deposits were $685.8 million at March 31, 2006, compared to $653.6 million at December 31, 2005. For the three-month period ended March 31, 2006, interest bearing accounts grew by 5.8%, reflecting increased marketing and promotional activity in an effort to attract new customers and retain existing funds on deposit.

·

Net interest income before provision for loan losses for the three-month period ended March 31, 2006 grew to $6.9 million from $6.3 million at December 31, 2005. Net interest margin was 3.10% for the three-month period ended March 31, 2006 compared to 3.19% for the three-month period ended December 31, 2005 and 3.34% for the three-month period ended March 31, 2005.

·

Non-interest income increased $141,000, or 11.6%, for the three months ended March 31, 2006 compared to the same period last year, reflecting growth in fee income on deposit accounts. For the three months ended March 31, 2006, non-interest income was $1.4 million, compared to $1.2 million for the same period ended March 31, 2005.

·

Non-interest expense increased 17.1% to $5.9 million for the three months ended March 31, 2006 from $5.0 million for the prior year period. The increase included $390,000 in salary and benefits, which included a $95,000 expense related to the Company’s Employee Stock Ownership Plan (ESOP); $63,000 in occupancy costs, $145,000 in professional fees and $246,000 in other operating expenses.

(Dollars in thousands) 

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		March 31,			December 31,
		2006			2005
ASSETS
Cash and due from banks		$	16,473		$	15,841
Interest bearing deposits			35,942			2
Liquidity and cash funds			385			—
Total cash and cash equivalents			52,800			15,843
Securities available for sale, at fair value			220,485			226,465
Securities to be held to maturity, at amortized cost (fair value $3,298 at March 31, 2006 and $3,298 at December 31, 2005)			3,323			3,325
Loans, net of allowance for loan losses of $6,580 at March 31, 2006 and $6,382 at December 31, 2005			641,008			630,558
Other real estate owned			—			1,602
Accrued interest receivable			4,202			3,928
Deferred tax asset, net			1,494			1,245
Stock in the Federal Home Loan Bank of Boston			6,684			6,588
Banking premises and equipment, net			8,141			8,236
Bank-owned life insurance			6,113			6,031
Other assets			3,319			2,692
TOTAL ASSETS		$	947,569		$	906,513
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Interest bearing		$	593,019		$	560,310
Non-interest bearing			92,762			93,301
Total deposits			685,781			653,611
Federal Home Loan Bank of Boston advances			112,542			101,880
Repurchase agreements			6,388			8,434
Escrow funds held for borrowers			1,259			1,129
Accrued expenses and other liabilities			4,307			4,454
Total liabilities			810,277			769,508
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 March 31, 2006 and at December 31, 2005			172			172
Paid-in capital			78,460			78,446
Retained earnings			67,928			66,944
Unearned ESOP shares			(6,012	)		(6,092	)
Accumulated other comprehensive (loss), net of taxes			(3,256	)		(2,465	)
Total stockholders’ equity			137,292			137,005
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	947,569		$	906,513

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		Three Months Ended March 31,
		2006			2005
Interest and dividend income:
Loans		$	9,600		$	8,048
Investments			2,305			1,528
Other interest-earning assets			242			140
Total interest and dividend income			12,147			9,716
Interest expense:
Deposits			4,042			2,580
Short-term borrowings			576			268
Long-term debt			621			521
Total interest expense			5,239			3,369
Net interest income before provision for loan losses			6,908			6,347
Provision for loan losses			162			275
Net interest income after provision for loan losses			6,746			6,072
Non-interest income:
Fee income on depositors’ accounts			1,044			903
Income from bank-owned life insurance			81			81
Other income			231			231
Total non-interest income			1,356			1,215
Non-interest expense:
Salaries and benefits			3,029			2,638
Occupancy expenses			403			340
Marketing expenses			415			345
Data processing expenses			730			746
Contributions and sponsorships			31			73
Professional fees			256			111
Other expenses			1,011			764
Total non-interest expense			5,874			5,017
Income before income taxes			2,228			2,270
Income tax expense			873			904
NET INCOME		$	1,355		$	1,366
Basic and diluted earnings per share		$	.08			NA

 

 

 

 

		Three months ended
		Mar-06			Dec-05			Sep-05			Jun-05			Mar-05
Performance Ratios:
Return on average assets*			0.59	%		0.70	%		-0.08	%		0.77	%		0.69	%
Return on average equity*			3.93	%		4.62	%		-0.73	%		10.04	%		8.67	%
Average equity to average interest-earning assets			15.48	%		15.61	%		10.80	%		7.94	%		8.30	%
Equity to total assets at end of period*			14.49	%		15.14	%		15.12	%		6.81	%		7.85	%
Average interest-earning assets to average
interest-bearing liabilities			128.95	%		129.49	%		127.71	%		120.33	%		119.27	%
Total non-interest expense to average total assets*			2.55	%		2.57	%		3.83	%		2.37	%		2.56	%
Efficiency ratio			71.08	%		69.56	%		101.06	%		68.02	%		66.40	%
Regulatory Capital Ratios: (United Bank only)
Core capital			11.21	%		11.60	%		11.35	%		6.90	%		8.02	%
Tangible capital			11.21	%		11.60	%		11.35	%		6.90	%		8.02	%
Risk-based capital			17.98	%		18.30	%		18.25	%		12.40	%		13.03	%
Asset Quality Ratios:
Non-performing assets as a percent of total assets			0.18	%		0.37	%		0.29	%		0.30	%		0.57	%
Non-performing loans as a percent of total loans, gross			0.26	%		0.27	%		0.43	%		0.48	%		0.78	%
Allowance for loan losses as a percent of total loans, gross			1.02	%		1.00	%		1.05	%		1.05	%		1.07	%
Allowance for loan losses as a percent of non-performing loans			390.18	%		371.91	%		246.29	%		216.14	%		137.46	%
Selected Average Yields/Rates
Loans			5.99	%		5.92	%		5.82	%		5.80	%		5.61	%
Securities			4.06	%		3.99	%		4.26	%		3.85	%		3.75	%
Total interest earning assets			5.46	%		5.37	%		5.32	%		5.18	%		5.12	%
Savings accounts			0.82	%		0.84	%		0.69	%		0.63	%		0.62	%
Money Market/NOW accounts			2.45	%		2.20	%		1.90	%		1.54	%		1.30	%
Certificates of deposit			3.71	%		3.43	%		3.12	%		2.95	%		2.76	%
Federal Home Loan Bank of Boston advances			3.97	%		4.15	%		3.81	%		3.49	%		3.48	%
Total interest-bearing liabilities			3.04	%		2.83	%		2.59	%		2.31	%		2.12	%
Average interest rate spread			2.42	%		2.54	%		2.73	%		2.87	%		3.00	%
Net interest margin			3.10	%		3.19	%		3.34	%		2.97	%		3.34	%