10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2016.

Commission File Number: 001-35028

United Financial Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Connecticut	27-3577029
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
45 Glastonbury Boulevard, Glastonbury, Connecticut	06033
(Address of principal executive offices)	(Zip Code)

(860) 291-3600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ý  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter prior that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12B-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12B-2 of the Act).    Yes  ¨    No  ý

As of October 31, 2016, there were 50,512,092 shares of Registrant’s no par value common stock outstanding.

Table of Contents

		Page
Part I - FINANCIAL INFORMATION
Item 1.	Interim Financial Statements
	Consolidated Statements of Condition as of September 30, 2016 and December 31, 2015	3
	Consolidated Statements of Net Income for the three and nine months ended September 30, 2016 and 2015	4
	Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015	5
	Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2016 and 2015	6
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015	7
	Notes to Unaudited Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	46
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	71
Item 4.	Controls and Procedures	72
Part II - OTHER INFORMATION
Item 1.	Legal Proceedings	72
Item 1A.	Risk Factors	72
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
Item 3.	Defaults Upon Senior Securities	73
Item 4.	Mine Safety Disclosures	73
Item 5.	Other Information	73
Item 6.	Exhibits	73
SIGNATURES		75
Exhibits

Part 1 - FINANCIAL INFORMATION

Item 1 - Interim Financial Statements

United Financial Bancorp, Inc. and Subsidiaries

Consolidated Statements of Condition

(Unaudited)

	September 30, 2016			December 31, 2015
	(In thousands, except share data)
ASSETS
Cash and due from banks	$	51,951		$	47,602
Short-term investments	162,295			47,574
Total cash and cash equivalents	214,246			95,176
Available-for-sale securities - at fair value	1,052,439			1,059,169
Held-to-maturity securities - at amortized cost	14,162			14,565
Loans held for sale	83,321			10,136
Loans receivable (net of allowance for loan losses of $41,080 at September 30, 2016 and $33,887 at December 31, 2015)	4,689,834			4,587,062
Federal Home Loan Bank of Boston stock	52,847			51,196
Accrued interest receivable	17,888			15,740
Deferred tax asset, net	32,529			33,094
Premises and equipment, net	52,520			54,779
Goodwill	115,281			115,281
Core deposit intangible	6,287			7,506
Cash surrender value of bank-owned life insurance	126,948			125,101
Other real estate owned	2,792			755
Other assets	83,761			58,981
Total assets	$	6,544,855		$	6,228,541
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest-bearing	$	687,865		$	657,718
Interest-bearing	4,007,606			3,779,353
Total deposits	4,695,471			4,437,071
Mortgagors’ and investors’ escrow accounts	9,045			13,526
Advances from the Federal Home Loan Bank	977,483			949,003
Other borrowings	125,399			150,017
Accrued expenses and other liabilities	81,217			53,403
Total liabilities	5,888,615			5,603,020
Stockholders’ equity:
Preferred stock (no par value; 2,000,000 authorized; no shares issued)	—			—
Common stock (no par value; authorized 120,000,000 and 60,000,000 shares; 50,462,946 and 49,941,428 shares issued and outstanding, at September 30, 2016 and December 31, 2015, respectively)	526,404			519,587
Additional paid-in capital	10,124			10,722
Unearned compensation - ESOP	(5,751		)	(5,922		)
Retained earnings	129,076			112,013
Accumulated other comprehensive loss, net of tax	(3,613		)	(10,879		)
Total stockholders’ equity	656,240			625,521
Total liabilities and stockholders’ equity	$	6,544,855		$	6,228,541

See accompanying notes to unaudited consolidated financial statements.

3

United Financial Bancorp, Inc. and Subsidiaries

Consolidated Statements of Net Income

(Unaudited)

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands, except share and per share data)
Interest and dividend income:
Loans	$	45,331		$	41,878		$	134,359		$	123,658
Securities - taxable interest	4,808			4,907			14,830			14,947
Securities - non-taxable interest	2,140			2,080			6,201			6,353
Securities - dividends	990			708			2,934			1,554
Interest-bearing deposits	67			52			207			119
Total interest and dividend income	53,336			49,625			158,531			146,631
Interest expense:
Deposits	6,279			5,319			18,927			15,643
Borrowed funds	4,028			2,663			11,677			7,099
Total interest expense	10,307			7,982			30,604			22,742
Net interest income	43,029			41,643			127,927			123,889
Provision for loan losses	3,766			3,252			10,078			9,225
Net interest income after provision for loan losses	39,263			38,391			117,849			114,664
Non-interest income:
Service charges and fees	5,726			5,960			14,679			15,434
Gain (loss) on sales of securities, net	48			(59		)	1,867			639
Income from mortgage banking activities	2,198			2,257			5,389			7,618
Bank-owned life insurance income	899			893			2,531			2,557
Net loss on limited partnership investments	(850		)	(991		)	(3,290		)	(2,337		)
Other income (loss)	(132		)	(242		)	(28		)	113
Total non-interest income	7,889			7,818			21,148			24,024
Non-interest expense:
Salaries and employee benefits	18,301			16,994			56,105			50,161
Service bureau fees	1,960			1,828			6,219			5,114
Occupancy and equipment	3,580			3,343			11,330			11,600
Professional fees	1,125			1,581			2,893			3,280
Marketing and promotions	656			587			2,271			1,843
FDIC insurance assessments	819			750			2,800			2,651
Core deposit intangible amortization	385			433			1,219			1,363
FHLBB prepayment penalties	—			—			1,454			—
Other	5,410			6,360			16,389			16,878
Total non-interest expense	32,236			31,876			100,680			92,890
Income before income taxes	14,916			14,333			38,317			45,798
Provision for income taxes	757			952			3,206			6,060
Net income	$	14,159		$	13,381		$	35,111		$	39,738
Net income per share:
Basic	$	0.28		$	0.27		$	0.71		$	0.81
Diluted	$	0.28		$	0.27		$	0.70		$	0.81
Weighted-average shares outstanding:
Basic	49,800,105			48,931,203			49,617,136			48,829,193
Diluted	50,141,175			49,429,809			49,917,049			49,339,271

See accompanying notes to unaudited consolidated financial statements.

4

United Financial Bancorp, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Net income	$	14,159		$	13,381		$	35,111		$	39,738
Other comprehensive income:
Securities available for sale:
Unrealized holding gains (losses)	(274		)	7,771			23,253			2,719
Reclassification adjustment for losses (gains) realized in operations (1)	(48		)	59			(1,867		)	(639		)
Net unrealized gains (losses)	(322		)	7,830			21,386			2,080
Tax effect - benefit (expense)	120			(2,820		)	(7,691		)	(756		)
Net-of-tax amount - securities available for sale	(202		)	5,010			13,695			1,324
Interest rate swaps designated as cash flow hedges:
Unrealized gains (losses)	2,854			(4,898		)	(8,582		)	(5,533		)
Reclassification adjustment for expense (benefit) realized in operations (2)	(664		)	—			(1,844		)	12
Net unrealized gains (losses)	2,190			(4,898		)	(10,426		)	(5,521		)
Tax effect - benefit (expense)	(788		)	1,764			3,757			1,989
Net-of-tax amount - interest rate swaps	1,402			(3,134		)	(6,669		)	(3,532		)
Pension and Post-retirement plans:
Reclassification adjustment for prior service costs recognized in net periodic benefit cost (3)	2			2			5			5
Reclassification adjustment for losses recognized in net periodic benefit cost (4)	123			191			371			570
Change in losses and prior service costs	125			193			376			575
Tax effect - expense	(46		)	(74		)	(136		)	(65		)
Net-of-tax amount - pension and post-retirement plans	79			119			240			510
Total other comprehensive income (loss)	1,279			1,995			7,266			(1,698		)
Comprehensive income	$	15,438		$	15,376		$	42,377		$	38,040

(1) Amounts are included in gain (loss) on sales of securities, net in the unaudited Consolidated Statements of Net Income. Income tax (expense) benefit associated with the reclassification adjustment was $(17) and $21 for the three months ended September 30, 2016 and 2015, respectively. Income tax expense associated with the reclassification adjustment was $(673) and $(230) for the nine months ended September 30, 2016 and 2015, respectively.

(2) Amounts are included in borrowed funds expense in the unaudited Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for the three months ended September 30, 2016 was $239. Income tax expense (benefit) associated with the reclassification adjustment for the nine months ended September 30, 2016 and 2015 was $664 and $(4), respectively.

(3) Amounts are included in salaries and employee benefits expense in the unaudited Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for prior service costs for the three and nine months ended September 30, 2016 and 2015 was minimal.

(4) Amounts are included in salaries and employee benefits expense in the unaudited Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment of the losses recognized in net periodic benefit cost for the three months ended September 30, 2016 and 2015 was $44 and $69, respectively. Income tax benefit associated with the reclassification adjustment for losses recognized in net periodic benefit cost for the nine months ended September 30, 2016 and 2015 was $134 and $205, respectively.

See accompanying notes to unaudited consolidated financial statements.

5

United Financial Bancorp, Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock					Additional Paid-in Capital			Unearned Compensation  - ESOP			Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
	Shares		Amount
	(In thousands, except share data)
Balance at December 31, 2015	49,941,428		$	519,587		$	10,722		$	(5,922	)	$	112,013		$	(10,879	)	$	625,521
Comprehensive income	—		—			—			—			35,111			7,266			42,377
Stock-based compensation expense	—		—			1,543			—			—			—			1,543
ESOP shares released or committed to be released	—		—			45			171			—			—			216
Shares issued for stock options exercised and SARs	489,361		6,357			(1,893		)	—			—			—			4,464
Shares issued for restricted stock grants	39,328		460			(460		)	—			—			—			—
Cancellation of shares for tax withholding	(7,171	)	—			(90		)	—			—			—			(90		)
Tax benefit from stock-based awards	—		—			257			—			—			—			257
Dividends paid ($0.36 per common share)	—		—			—			—			(18,048		)	—			(18,048		)
Balance at September 30, 2016	50,462,946		$	526,404		$	10,124		$	(5,751	)	$	129,076		$	(3,613	)	$	656,240
Balance at December 31, 2014	49,537,700		$	514,189		$	16,007		$	(6,150	)	$	84,852		$	(6,490	)	$	602,408
Comprehensive income	—		—			—			—			39,738			(1,698		)	38,040
Common stock repurchased	(377,700	)	(5,171		)	—			—			—			—			(5,171		)
Stock-based compensation expense	—		—			689			—			—			—			689
ESOP shares released or committed to be released	—		—			51			171			—			—			222
Shares issued for stock options exercised and SARs	349,387		4,657			(2,047		)	—			—			—			2,610
Shares issued for restricted stock grants	27,330		340			(340		)	—			—			—			—
Cancellation of shares for tax withholding	(18,044	)	(184		)	(67		)	—			—			—			(251		)
Tax benefit from stock-based awards	—		—			(293		)	—			—			—			(293		)
Dividends paid ($0.34 per common share)	—		—			—			—			(16,802		)	—			(16,802		)
Forfeited unvested restricted stock	(1,135	)	—			—			—			—			—			—
Balance at September 30, 2015	49,517,538		$	513,831		$	14,000		$	(5,979	)	$	107,788		$	(8,188	)	$	621,452

See accompanying notes to unaudited consolidated financial statements.

6

United Financial Bancorp, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)
	For the Nine Months   Ended September 30,
	2016			2015
	(In thousands)
Cash flows from operating activities:
Net income	$	35,111		$	39,738
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of premiums and discounts on investments, net	4,163			3,934
Accretion of intangible assets and purchase accounting marks	(1,006		)	(9,034		)
Amortization of subordinated debt issuance costs	95			95
Stock-based compensation expense	1,543			689
ESOP expense	216			222
Loss on extinguishment of debt	1,454			—
Tax benefit from stock-based awards	(257		)	293
Provision for loan losses	10,078			9,225
Gain on sales of securities, net	(1,867		)	(639		)
Loans originated for sale	(355,361		)	(290,795		)
Principal balance of loans sold	282,176			285,504
Increase in mortgage servicing asset	(22		)	(1,266		)
Gain on sales of other real estate owned	(136		)	(166		)
Net gain in mortgage banking fair value adjustments	(2,144		)	(836		)
(Gain) loss on disposal of equipment	168			193
Write-downs of other real estate owned	4			118
Depreciation and amortization	4,108			3,997
Net loss on limited partnership investments	3,290			2,337
Deferred income tax (benefit) expense	(3,502		)	3,447
Increase in cash surrender value of bank-owned life insurance	(2,531		)	(2,557		)
Net change in:
Deferred loan fees and premiums	(3,195		)	(2,240		)
Accrued interest receivable	(2,148		)	(1,265		)
Other assets	(41,393		)	(16,834		)
Accrued expenses and other liabilities	25,281			11,002
Net cash provided by (used in) operating activities	(45,875		)	35,162
Cash flows from investing activities:
Proceeds from sales of available-for-sale securities	241,452			195,335
Proceeds from calls and maturities of available-for-sale securities	12,491			16,655
Principal payments on available-for-sale securities	66,210			67,277
Principal payments on held-to-maturity securities	380			630
Purchases of available-for-sale securities	(288,390		)	(308,253		)
Redemption of FHLBB stock	3,392			—
Purchase of FHLBB stock	(5,043		)	(8,864		)
Proceeds from sale of other real estate owned	1,237			2,232
Purchases of loans	(92,162		)	(11,348		)
Loan originations, net of principal repayments	(18,656		)	(297,971		)
Proceeds from BOLI death benefit	689			—
Purchases of premises and equipment	(1,879		)	(3,186		)
Proceeds from sale of equipment	17			192
Net cash used in investing activities	(80,262		)	(347,301		)

(Continued)

See accompanying notes to unaudited consolidated financial statements.

7

United Financial Bancorp, Inc. and Subsidiaries Consolidated Statements of Cash Flows - Concluded (Unaudited)
	For the Nine Months   Ended September 30,
	2016			2015
	(In thousands)
Cash flows from financing activities:
Net increase in non-interest-bearing deposits	30,147			20,176
Net increase in interest-bearing deposits	229,329			210,249
Net increase (decrease) in mortgagors’ and investors’ escrow accounts	(4,481		)	(4,896		)
Net increase in short-term FHLBB advances	54,800			57,200
Repayments of long-term FHLBB advances	(13,955		)	(6,977		)
Prepayments of long-term FHLBB borrowings and penalty	(37,796		)	—
Proceeds from long-term FHLBB advances	25,341			116,800
Net change in other borrowings	(24,761		)	(49,148		)
Proceeds from exercise of stock options and SARs	4,464			2,610
Common stock repurchased	—			(5,171		)
Cancellation of shares for tax withholding	(90		)	(251		)
Tax benefit from stock-based awards	257			(293		)
Cash dividend paid on common stock	(18,048		)	(16,802		)
Net cash provided by financing activities	245,207			323,497
Net increase in cash and cash equivalents	119,070			11,358
Cash and cash equivalents, beginning of period	95,176			86,952
Cash and cash equivalents, end of period	$	214,246		$	98,310
Supplemental Disclosures of Cash Flow Information:
Cash paid (refunded) during the year for:
Interest	$	31,705		$	25,757
Income taxes, net	3,300			(6,719		)
Transfer of loans to other real estate owned	3,163			318
Decrease in due to broker, investment purchases	3,009			(1,105		)
Decrease in due to broker, common stock buyback	—			(523		)

See accompanying notes to unaudited consolidated financial statements.

8

United Financial Bancorp, Inc. and Subsidiaries

Notes to Unaudited Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies

Nature of Operations

United Financial Bancorp, Inc. (the “Company” or “United”) is headquartered in Glastonbury, Connecticut, and through United Bank (the “Bank”) and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and Massachusetts through 53 banking offices, its commercial loan production offices, its mortgage loan production offices, 63 ATMs, telephone banking, mobile banking and online banking (www.bankatunited.com).

Basis of Presentation

The consolidated interim financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Northeast Financial Advisors, Inc., United Bank Investment Sub, Inc., UCB Securities, Inc. II, UB Properties, LLC, United Financial Realty HC, Inc. and United Financial Business Trust I. All significant intercompany transactions have been eliminated.

The consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included in the interim unaudited consolidated financial statements. Interim results are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any future period. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s 2015 audited consolidated financial statements and notes thereto included in United Financial Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended December 31, 2015.

Common Share Repurchases

The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances.

Reclassifications

Certain reclassifications have been made in prior periods’ consolidated financial statements to conform to the 2016 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results in the future could vary from the amounts derived from management’s estimates and assumptions. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the evaluation of securities for other-than-temporary impairment, the valuation of derivative instruments and hedging activities, and goodwill impairment valuations.

Note 2. Recent Accounting Pronouncements

Statement of Cash Flows

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to address eight specific cash flow issues with the objective of reducing diversity in practice in how certain transactions are classified in the statement of cash flows. The issues identified within the ASU include: 1) debt prepayments and extinguishment costs, 2) settlement of zero-coupon debt, 3) settlement of contingent consideration, 4) insurance proceeds, 5) settlement of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) policies, 6) distributions from equity method investees, 7) beneficial interests in securitization transactions, and 8) receipts and payments with aspects of more than one class of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the disclosures in the Company’s Statements of Cash Flows, but does not expect this ASU to have a material impact on the Company’s financial statements.

9

Financial Instruments

In June 2016, FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of US GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are US Securities and Exchange Commission filers, such as the Company, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This ASU potentially could have a significant impact on the Company’s allowance for loan losses, however, no assessment of the potential impact has been determined. Efforts are in process to quantify and prepare for the ASU’s effective date.

Compensation

In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting as part of the FASB’s simplification initiative aimed at reducing complexity in accounting standards. This ASU simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including; accounting for income taxes; classification of excess tax benefits on the statement of cash flows; forfeitures; statutory tax withholding requirements; classification of awards as either equity or liabilities and; classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. This ASU is not expected to have a significant impact on the Company’s Financial Statements.

Derivatives and Hedging

In March 2016, the FASB issued ASU No. 2016-06 Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments as part of the consensus of the Emerging Issues Task Force. This ASU addresses inconsistent interpretations of whether an event that triggers an entity’s ability to exercise the embedded contingent option must be indexed to interest rates or credit risk for that option to qualify as clearly and closely related. The ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815-15-25-42 as amended by the ASU. The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. For public business entities, the amendments in the ASU are effective for annual reporting periods, and interim period therein, beginning after December 15, 2016. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU No.  2016-02 Leases (Topic 842). This ASU consists of three sections: Section A- Leases: Amendments to the FASB Accounting Standards Codification; Section B - Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification; and Section C - Background Information and Basis for Conclusions. This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts with Customers. The new leases standard represents a whole-sale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e. calendar periods beginning on January 1, 2019), and interim periods therein. For all other entities, the ASU will be effective for annual periods beginning after December 15, 2019 (i.e. calendar periods beginning on January 1, 2020), and interim periods thereafter. Early adoption will be permitted for all entities. This ASU is not expected to have a significant impact on the Company’s financial statements.

Financial Instruments

In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures and limited liability companies, at fair value through net income. This new requirement does not apply to investments that qualify for the equity method of accounting or to those that result in consolidation of these investments. The ASU supersedes current guidance and no longer requires equity securities with readily determinable fair value to be classified into categories (i.e. trading or available for sale).  The ASU clarifies

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that when identifying observable price changes, an entity should consider relevant transactions “that are known or can reasonably be known“ and that an entity is not required to spend undue cost and effort to identify such transactions. The ASU also indicates that an entity should consider a security’s rights and obligations, such as voting rights, distribution rights and preferences, and conversion features, when evaluating whether the security issued by the same issuer is similar to the equity security held by the entity. The ASU further provides for the elimination of disclosure requirements related to financial instruments measured at amortized cost. For public business entities, the new standard will require disclosure of fair value using the exit price notion for all financial instruments measured at amortized cost.  Pursuant to the ASU, recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all entities, the ASU permits early adoption of the instrument-specific credit risk provision. Additionally, for non-public entities, it permits early adoption of the exemption provisions related to disclosure of fair value information about financial instruments measured at amortized cost.

Note 3. Securities

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities at September 30, 2016 and December 31, 2015 are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
September 30, 2016
Available for sale:
Debt securities:
Government-sponsored residential mortgage-backed securities	$	161,388	$	3,280	$	—		$	164,668
Government-sponsored residential collateralized debt obligations	195,056		2,841		(67		)	197,830
Government-sponsored commercial mortgage-backed securities	27,107		713		—			27,820
Government-sponsored commercial collateralized debt obligations	176,706		3,020		—			179,726
Asset-backed securities	159,195		2,067		(905		)	160,357
Corporate debt securities	59,848		1,953		(1,591		)	60,210
Obligations of states and political subdivisions	221,367		4,522		(2,033		)	223,856
Total debt securities	1,000,667		18,396		(4,596		)	1,014,467
Marketable equity securities, by sector:
Banks	33,087		1,589		—			34,676
Industrial	109		55		—			164
Mutual funds	2,880		64		(2		)	2,942
Oil and gas	131		59		—			190
Total marketable equity securities	36,207		1,767		(2		)	37,972
Total available-for-sale securities	$	1,036,874	$	20,163	$	(4,598	)	$	1,052,439
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,331	$	1,199	$	(14	)	$	13,516
Government-sponsored residential mortgage-backed securities	1,831		222		—			2,053
Total held-to-maturity securities	$	14,162	$	1,421	$	(14	)	$	15,569

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	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2015
Available for sale:
Debt securities:
U.S. Government and government-sponsored enterprise obligations	$	10,159	$	13	$	(83	)	$	10,089
Government-sponsored residential mortgage-backed securities	146,434		731		(1,304		)	145,861
Government-sponsored residential collateralized debt obligations	287,515		855		(1,403		)	286,967
Government-sponsored commercial mortgage-backed securities	21,144		21		(200		)	20,965
Government-sponsored commercial collateralized debt obligations	128,617		626		(271		)	128,972
Asset-backed securities	162,895		43		(3,037		)	159,901
Corporate debt securities	62,356		91		(2,487		)	59,960
Obligations of states and political subdivisions	201,217		1,561		(1,663		)	201,115
Total debt securities	1,020,337		3,941		(10,448		)	1,013,830
Marketable equity securities, by sector:
Banks	41,558		1,099		(544		)	42,113
Industrial	109		34		—			143
Mutual funds	2,854		65		(4		)	2,915
Oil and gas	132		36		—			168
Total marketable equity securities	44,653		1,234		(548		)	45,339
Total available-for-sale securities	$	1,064,990	$	5,175	$	(10,996	)	$	1,059,169
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,360	$	884	$	(10	)	$	13,234
Government-sponsored residential mortgage-backed securities	2,205		244		—			2,449
Total held-to-maturity securities	$	14,565	$	1,128	$	(10	)	$	15,683

At September 30, 2016, the net unrealized gain on securities available for sale of $15.6 million, net of an income tax expense of $5.6 million, or $10.0 million, was included in accumulated other comprehensive loss in the unaudited Consolidated Statement of Condition.

The amortized cost and fair value of debt securities at September 30, 2016 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because some securities may be called or repaid without any penalties. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary.

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	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturity:
Within 1 year	$	175	$	176	$	—	$	—
After 1 year through 5 years	16,118		16,537		1,184		1,229
After 5 years through 10 years	47,906		49,018		—		—
After 10 years	217,016		218,335		11,147		12,287
	281,215		284,066		12,331		13,516
Government-sponsored residential mortgage-backed securities	161,388		164,668		1,831		2,053
Government-sponsored residential collateralized debt obligations	195,056		197,830		—		—
Government-sponsored commercial mortgage-backed securities	27,107		27,820		—		—
Government-sponsored commercial collateralized debt obligations	176,706		179,726		—		—
Asset-backed securities	159,195		160,357		—		—
Total debt securities	$	1,000,667	$	1,014,467	$	14,162	$	15,569

At September 30, 2016, the Company had 114 securities with a fair value of $549.3 million pledged as derivative collateral, collateral for reverse repurchase borrowings and collateral for Federal Home Loan Bank of Boston (“FHLBB”) borrowing capacity. At December 31, 2015, the Company had 114 securities with a fair value of $446.0 million pledged as derivative collateral, collateral for reverse repurchase borrowings, and collateral for FHLBB borrowing capacity.

For the three months ended September 30, 2016 and 2015, gross gains of $325,000 and $185,000 were realized on the sales of available-for-sale securities for both periods, respectively. There were gross losses of $277,000 and $244,000 realized on the sale of available-for-sale securities for the three months ended September 30, 2016 and 2015, respectively. For the nine months ended September 30, 2016 and 2015, gross gains of $2.6 million and $2.4 million, respectively, were realized on the sales of available-for-sale securities. There were gross losses of $743,000 and $1.8 million realized on the sale of available-for-sale securities for the nine months ended September 30, 2016 and 2015, respectively.

As of September 30, 2016, the Company did not have any exposure to private-label mortgage-backed securities. The Company also did not own any single security with an aggregate book value in excess of 10% of the Company’s stockholders’ equity.

As of September 30, 2016, the fair value of the obligations of states and political subdivisions portfolio was $237.4 million, with no significant geographic or issuer exposure concentrations. Of the total revenue and general obligations of $237.4 million, $105.2 million were representative of general obligation bonds for which $67.8 million are general obligations of political subdivisions of the respective state, rather than general obligations of the state itself. 

The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of September 30, 2016 and December 31, 2015:

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	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
September 30, 2016
Available for sale:
Debt Securities:
Government-sponsored residential collateralized debt obligations	$	6,821	$	(25	)	$	6,929	$	(42	)	$	13,750	$	(67	)
Asset-backed securities	1,207		(25		)	26,357		(880		)	27,564		(905		)
Corporate debt securities	—		—			3,165		(1,591		)	3,165		(1,591		)
Obligations of states and political subdivisions	47,552		(913		)	44,100		(1,120		)	91,652		(2,033		)
Total debt securities	55,580		(963		)	80,551		(3,633		)	136,131		(4,596		)
Marketable equity securities	—		—			95		(2		)	95		(2		)
Total available-for-sale securities	$	55,580	$	(963	)	$	80,646	$	(3,635	)	$	136,226	$	(4,598	)
Held to Maturity:
Debt Securities:
Obligations of states and political subdivisions	$	1,093	$	(14	)	$	—	$	—		$	1,093	$	(14	)
Total held to maturity securities	$	1,093	$	(14	)	$	—	$	—		$	1,093	$	(14	)
December 31, 2015
Available for sale:
Debt Securities:
U.S. Government and government-sponsored enterprise obligations	$	4,867	$	(66	)	$	4,977	$	(17	)	$	9,844	$	(83	)
Government-sponsored residential mortgage-backed securities	107,142		(1,183		)	7,195		(121		)	114,337		(1,304		)
Government-sponsored residential collateralized debt obligations	152,278		(1,357		)	3,506		(46		)	155,784		(1,403		)
Government-sponsored commercial mortgage-backed securities	16,207		(200		)	—		—			16,207		(200		)
Government-sponsored commercial collateralized debt obligations	38,151		(221		)	3,496		(50		)	41,647		(271		)
Asset-backed securities	93,723		(1,233		)	49,462		(1,804		)	143,185		(3,037		)
Corporate debt securities	42,102		(797		)	6,720		(1,690		)	48,822		(2,487		)
Obligations of states and political subdivisions	47,878		(946		)	42,685		(717		)	90,563		(1,663		)
Total debt securities	502,348		(6,003		)	118,041		(4,445		)	620,389		(10,448		)
Marketable equity securities	18,449		(287		)	6,176		(261		)	24,625		(548		)
Total available-for-sale securities	$	520,797	$	(6,290	)	$	124,217	$	(4,706	)	$	645,014	$	(10,996	)
Held to Maturity:
Debt Securities:
Obligations of states and political subdivisions	$	1,104	$	(10	)	$	—	$	—		$	1,104	$	(10	)
Total held to maturity securities	$	1,104	$	(10	)	$	—	$	—		$	1,104	$	(10	)

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Of the available-for-sale securities summarized above as of September 30, 2016, 32 issues had unrealized losses equaling 1.7% of the amortized cost basis for less than twelve months and 62 issues had an unrealized loss of 4.3% of the amortized cost basis for twelve months or more. There was one unrealized loss of $14,000 on a debt security held to maturity at September 30, 2016. As of December 31, 2015, 146 issues had unrealized losses equaling 1.2% of the cost basis for less than twelve months and 96 issues had unrealized losses equaling 3.7% of the amortized cost basis for twelve months or more.

Management believes that no individual unrealized loss as of September 30, 2016 represents an other-than-temporary impairment, based on its detailed quarterly review of the securities portfolio. Among other things, the other-than-temporary impairment review of the investment securities portfolio focuses on the combined factors of percentage and length of time by which an issue is below book value as well as consideration of issuer specific information (present value of cash flows expected to be collected, issuer rating changes and trends, credit worthiness and review of underlying collateral), broad market details and the Company’s intent to sell the security or if it is more likely than not that the Company will be required to sell the debt security before recovering its cost. The Company also considers whether the depreciation is due to interest rates, market changes, or credit risk.

The following paragraphs outline the Company’s position related to unrealized losses in its investment securities portfolio at September 30, 2016.

Government-sponsored residential collateralized debt obligations. The unrealized losses on the Company’s government-sponsored residential collateralized debt obligations were caused by the continued pickup of prepayment speeds given the overall drop in the government curve over the period, which encouraged further refinancing relative to original purchase expectations. The Company monitors this risk, and therefore, strives to minimize premiums within this security class. The Company does not expect these securities to settle at a price less than the par value of the securities.

Asset-backed securities. The unrealized losses on the Company’s asset-backed securities were largely driven by increases in the spreads of the respective sectors’ asset classes over comparable securities relative to the time of purchase. The majority of these securities have resetting coupons that adjust on a quarterly basis and the market credit and liquidity spreads on similar securities have increased. Based on the credit profiles and asset qualities of the individual securities, management does not believe that the securities have suffered from any credit related losses at this time. The Company does not expect these securities to settle at a price less than the par value of the securities. 

Corporate debt securities. The unrealized losses on corporate debt securities is primarily related to one pooled trust preferred security, Preferred Term Security XXVIII, Ltd (“PRETSL XXVIII”). The unrealized loss on this security is caused by the low interest rate environment, as the security reprices quarterly to the three month LIBOR and market spreads on similar newly issued securities have increased. No loss of principal is projected. Based on the existing credit profile, management does not believe that this security has suffered from any credit related losses. The unrealized loss on the remainder of the corporate credit portfolio has been driven primarily by overall wider credit spreads on certain securities relative to the time of purchase.

Obligations of states and political subdivisions. The unrealized loss on obligations of states and political subdivisions relates to several securities, with no geographic concentration. The unrealized loss was largely due to a shift in the spreads on the short end of the municipal spread curve relative to the spreads on the bonds at the time of purchase.

Marketable equity securities. The unrealized loss on marketable equity securities largely pertains to widening credit spreads and higher rates for certain affected securities relative to their respective purchase.

The Company will continue to review its entire portfolio for other-than-temporarily impaired securities.

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Note 4. Loans Receivable and Allowance for Loan Losses

A summary of the Company’s loan portfolio is as follows:

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
	(Dollars in thousands)
Commercial real estate loans:
Owner-occupied	$	392,168		8.3	%	$	322,084		7.0	%
Investor non-owner occupied	1,702,701			36.1		1,673,248			36.3
Construction	90,380			1.9		129,922			2.8
Total commercial real estate loans	2,185,249			46.3		2,125,254			46.1
Commercial business loans	660,676			14.0		603,332			13.1
Consumer loans:
Residential real estate	1,129,079			23.9		1,179,915			25.6
Home equity	479,390			10.2		431,282			9.3
Residential construction	52,476			1.1		41,084			0.9
Other consumer	213,830			4.5		233,064			5.0
Total consumer loans	1,874,775			39.7		1,885,345			40.8
Total loans	4,720,700			100.0	%	4,613,931			100.0	%
Net deferred loan costs and premiums	10,214					7,018
Allowance for loan losses	(41,080		)			(33,887		)
Loans - net	$	4,689,834				$	4,587,062

Purchased Credit Impaired Loans

Purchased credit impaired loans (“PCI”) are accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). At September 30, 2016, the net recorded carrying amount of loans accounted for under ASC 310-30 was $4.7 million and the aggregate outstanding principal balance was $7.5 million.

The following table summarizes the activity in the the accretable yield balance for PCI loans for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Balance at beginning of period	$	(118	)	$	(570	)	$	(413	)	$	(1,587	)
Accretion	—			1			—			178
Reclassification to nonaccretable balance	—			42			232			882
Paid off	—			114			63			114
Balance at end of period	$	(118	)	$	(413	)	$	(118	)	$	(413	)

Reclassifications of $232,000 and $882,000 from the accretable balance to the nonaccretable balance occurred during the nine months ended September 30, 2016 and 2015, respectively, due to reductions in expected cash flows for the ASC 310-30 loans.

Allowance for Loan Losses

Management has established a methodology to determine the adequacy of the allowance for loan losses (“ALL”) that assesses the risks and losses inherent in the loan portfolio. The ALL is established as embedded losses are estimated to have occurred through the provisions for losses charged against operations and is maintained at a level that management considers adequate to absorb losses in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is inherently subjective and is based on past loan loss experience, known and inherent losses and size of the loan portfolios, an assessment of current

16

economic and real estate market conditions, estimates of the current value of underlying collateral, review of regulatory authority examination reports and other relevant factors. An allowance is maintained for impaired loans to reflect the difference, if any, between the carrying value of the loan and the present value of the projected cash flows, observable fair value or collateral value. Loans are charged-off against the ALL when management believes that the uncollectibility of principal is confirmed. Any subsequent recoveries are credited to the ALL when received. In connection with the determination of the ALL, management obtains independent appraisals for significant properties, when considered necessary.

The ALL is maintained at a level estimated by management to provide for probable losses inherent within the loan portfolio. Probable losses are estimated based upon a quarterly review of the loan portfolio, which includes historic default and loss experience, specific problem loans, risk rating profile, economic conditions and other pertinent factors which, in management’s judgment, warrant current recognition in the loss estimation process.

The adequacy of the ALL is subject to considerable assumptions and judgment used in its determination. Therefore, actual losses could differ materially from management’s estimate if actual conditions differ significantly from the assumptions utilized. These conditions include economic factors in the Company’s market and nationally, industry trends and concentrations, real estate values and trends, and the financial condition and performance of individual borrowers.

The Company’s general practice is to identify problem credits early and recognize full or partial charge-offs as promptly as practicable when it is determined that the collection of loan principal is unlikely. The Company recognizes full or partial charge-offs on collateral dependent impaired loans when the collateral is deemed to be insufficient to support the carrying value of the loan. The Company does not recognize a recovery when an updated appraisal indicates a subsequent increase in value.

At September 30, 2016, the Company had a loan loss allowance of $41.1 million, or 0.87%, of total loans as compared to a loan loss allowance of $33.9 million, or 0.73%, of total loans at December 31, 2015. Management believes that the allowance for loan losses is adequate and consistent with asset quality indicators and that it represents the best estimate of probable losses inherent in the loan portfolio.

There are three components for the allowance for loan loss calculation:

General component

The general component of the ALL is based on historical loss experience adjusted for qualitative factors stratified by the loan segments. Management uses a rolling average of historical losses based on a three-year loss history to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels and trends in delinquencies; level and trend of charge-offs and recoveries; trends in volume and types of loans; effects of changes in risk selection and underwriting standards, changes in risk selection and underwriting standards; experience and depth of lending weighted average risk rating; and national and local economic trends and conditions. There were no changes in the Company’s methodology pertaining to the general component of the ALL during 2016.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate and home equity loans – The Bank establishes maximum loan-to-value and debt-to-income ratios and minimum credit scores as an integral component of the underwriting criteria. Loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the income and credit quality of the individual borrower. Within the qualitative allowance factors, national and local economic trends including unemployment rates and potential declines in property value, are key elements reviewed as a component of establishing the appropriate allocation. Overall economic conditions, unemployment rates and housing price trends will influence the underlying credit quality of these segments.

Owner-occupied and investor non-owner occupied commercial real estate (“Owner-occupied CRE” and “Investor CRE”) – Loans in these segments are primarily income-producing properties throughout Connecticut, western Massachusetts, and other select markets in the Northeast. The underlying cash flows generated by the properties could be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually, continually monitors the cash flows of these loans and performs stress testing.

Commercial and residential construction loans – Loans in this segment primarily include commercial real estate development and residential subdivision loans for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial business loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy and its effect on business profitability and cash flow could have an effect on the credit quality in this segment.

17

Other Consumer– Loans in this segment are secured or unsecured and repayment is dependent on the credit quality of the individual borrower. A significant portion of these loans are secured by boats.

For acquired loans, our ALL is estimated based upon our evaluation of the credit quality of the acquired loan portfolio or expected cash flows for the acquired PCI loans. To the extent that we experience a deterioration in credit quality resulting in a decrease in our expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loans, in excess of any existing purchase accounting discounts.

Allocated component

The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated costs to sell, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Residential and other consumer loans are evaluated for impairment if payments are 90 days or more delinquent. Updated property evaluations are obtained at time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

When a loan is determined to be impaired the Company makes a determination if the repayment of the obligation is collateral dependent. As a majority of impaired loans are collateralized by real estate, appraisals on the underlying value of the property securing the obligation are utilized in determining the specific impairment amount that is allocated to the loan as a component of the allowance calculation. If the loan is collateral dependent, an updated appraisal is obtained within a short period of time from the date the loan is determined to be impaired; typically no longer than 30 days for a residential property and 90 days for a commercial real estate property. The appraisal and the appraised value are reviewed for adequacy and then further discounted for estimated disposition costs and the period of time until resolution, in order to determine the impairment amount. The Company updates the appraised value at least annually and on a more frequent basis if current market factors indicate a potential change in valuation.

The majority of the Company’s loans are collateralized by real estate located in central and eastern Connecticut and western Massachusetts in addition to a portion of the commercial real estate loan portfolio located in the Northeast region of the United States. Accordingly, the collateral value of a substantial portion of the Company’s loan portfolio and real estate acquired through foreclosure is susceptible to changes in market conditions in these areas.

Unallocated component

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

Credit Quality Information

The Company utilizes a nine-grade internal loan rating system for residential and commercial real estate, construction, commercial and other consumer loans as follows:

Loans rated 1 – 5: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 6: Loans in this category are considered “special mention.” These loans reflect signs of potential weakness and are being closely monitored by management.

Loans rated 7: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor and there is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

18

Loans rated 8: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

At the time of loan origination, a risk rating based on this nine point grading system is assigned to each loan based on the loan officer’s assessment of risk. For residential real estate and other consumer loans, the Company considers factors such as updated FICO scores, employment status, home prices, loan to value and geography. Residential real estate and other consumer loans are pass rated unless their payment history reveals signs of deterioration, which may result in modifications to the original contractual terms. In situations which require modification to the loan terms, the internal loan grade will typically be reduced to substandard. More complex loans, such as commercial business loans and commercial real estate loans require that our internal credit area further evaluate the risk rating of the individual loan, with the credit area and Chief Credit Officer having final determination of the appropriate risk rating. These more complex loans and relationships receive an in-depth analysis and periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. The credit quality of the Company’s loan portfolio is reviewed by a third-party risk assessment firm throughout the year and by the Company’s internal credit management function. The internal and external analysis of the loan portfolio is utilized to identify and quantify loans with higher than normal risk. Loans having a higher risk profile are assigned a risk rating corresponding to the level of weakness identified in the loan. All loans risk rated Special Mention, Substandard or Doubtful are reviewed by management not less than on a quarterly basis to assess the level of risk and to ensure that appropriate actions are being taken to minimize potential loss exposure. Loans identified as being loss are normally fully charged off.

The following table presents the Company’s loans by risk rating at September 30, 2016 and December 31, 2015:

	Owner-Occupied CRE		Investor CRE		Construction		Commercial Business		Residential Real Estate		Home Equity		Other Consumer
	(In thousands)
September 30, 2016
Loans rated 1-5	$	363,114	$	1,656,821	$	140,314	$	629,212	$	1,111,502	$	473,948	$	213,507
Loans rated 6	7,219		16,552		254		6,518		1,286		—		—
Loans rated 7	21,835		29,328		2,288		24,946		16,291		5,441		323
Loans rated 8	—		—		—		—		—		—		—
Loans rated 9	—		—		—		—		—		1		—
	$	392,168	$	1,702,701	$	142,856	$	660,676	$	1,129,079	$	479,390	$	213,830
December 31, 2015
Loans rated 1-5	$	298,509	$	1,610,582	$	156,607	$	568,248	$	1,162,393	$	426,702	$	233,054
Loans rated 6	10,074		38,448		10,860		8,382		1,355		24		—
Loans rated 7	13,501		24,218		3,539		26,655		16,167		4,553		10
Loans rated 8	—		—		—		47		—		—		—
Loans rated 9	—		—		—		—		—		3		—
	$	322,084	$	1,673,248	$	171,006	$	603,332	$	1,179,915	$	431,282	$	233,064

19

Activity in the allowance for loan losses for the periods ended September 30, 2016 and 2015 were as follows:

	Owner-Occupied CRE			Investor CRE			Construction			Commercial Business			Residential Real Estate			Home Equity			Other Consumer			Unallocated		Total
	(In thousands)
Three Months Ended September 30, 2016
Balance, beginning of period	$	3,267		$	13,646		$	2,014		$	6,894		$	7,907		$	2,532		$	692		$	1,009	$	37,961
Provision (credit) for loan losses	72			1,082			(201		)	527			404			245			1,321			316		3,766
Loans charged off	—			(287		)	—			(188		)	(216		)	(81		)	(368		)	—		(1,140		)
Recoveries of loans previously charged off	—			302			3			146			—			15			27			—		493
Balance, end of period	$	3,339		$	14,743		$	1,816		$	7,379		$	8,095		$	2,711		$	1,672		$	1,325	$	41,080
Three Months Ended September 30, 2015
Balance, beginning of period	$	1,499		$	10,459		$	1,963		$	5,334		$	6,995		$	2,052		$	104		$	450	$	28,856
Provision (credit) for loan losses	169			1,222			(224		)	690			960			178			57			200		3,252
Loans charged off	—			(215		)	—			(840		)	(304		)	(67		)	(70		)	—		(1,496		)
Recoveries of loans previously charged off	—			—			—			121			75			—			24			—		220
Balance, end of period	$	1,668		$	11,466		$	1,739		$	5,305		$	7,726		$	2,163		$	115		$	650	$	30,832
Nine Months Ended September 30, 2016
Balance, beginning of period	$	2,174		$	12,859		$	1,895		$	5,827		$	7,801		$	2,391		$	146		$	794	$	33,887
Provision (credit) for loan losses	1,247			2,587			(82		)	1,814			974			692			2,315			531		10,078
Loans charged off	(138		)	(1,083		)	—			(744		)	(733		)	(438		)	(907		)	—		(4,043		)
Recoveries of loans previously charged off	56			380			3			482			53			66			118			—		1,158
Balance, end of period	$	3,339		$	14,743		$	1,816		$	7,379		$	8,095		$	2,711		$	1,672		$	1,325	$	41,080
Nine Months Ended September 30, 2015
Balance, beginning of period	$	1,281		$	8,137		$	1,470		$	5,808		$	5,998		$	1,929		$	75		$	111	$	24,809
Provision for loan losses	387			4,034			771			651			2,200			448			195			539		9,225
Loans charged off	—			(837		)	(502		)	(1,793		)	(708		)	(214		)	(239		)	—		(4,293		)
Recoveries of loans previously charged off	—			132			—			639			236			—			84			—		1,091
Balance, end of period	$	1,668		$	11,466		$	1,739		$	5,305		$	7,726		$	2,163		$	115		$	650	$	30,832

20

Further information pertaining to the allowance for loan losses and impaired loans at September 30, 2016 and December 31, 2015 follows:

	Owner-Occupied CRE		Investor CRE		Construction		Commercial Business		Residential Real Estate		Home Equity		Other Consumer		Unallocated		Total
	(In thousands)
September 30, 2016
Allowance related to loans individually evaluated and deemed impaired	$	—	$	—	$	—	$	761	$	70	$	—	$	391	$	—	$	1,222
Allowance related to loans collectively evaluated and not deemed impaired	3,339		14,743		1,816		6,402		8,025		2,711		1,281		1,325		39,642
Allowance related to loans acquired with deteriorated credit quality	—		—		—		216		—		—		—		—		216
Total allowance for loan losses	$	3,339	$	14,743	$	1,816	$	7,379	$	8,095	$	2,711	$	1,672	$	1,325	$	41,080
Loans deemed impaired	$	3,539	$	9,747	$	3,863	$	10,929	$	16,932	$	6,528	$	512	$	—	$	52,050
Loans not deemed impaired	388,629		1,691,653		138,993		648,438		1,112,147		472,862		211,208		—		4,663,930
Loans acquired with deteriorated credit quality	—		1,301		—		1,309		—		—		2,110		—		4,720
Total loans	$	392,168	$	1,702,701	$	142,856	$	660,676	$	1,129,079	$	479,390	$	213,830	$	—	$	4,720,700
December 31, 2015
Allowance related to loans individually evaluated and deemed impaired	$	—	$	—	$	147	$	121	$	74	$	—	$	—	$	—	$	342
Allowance related to loans collectively evaluated and not deemed impaired	2,174		12,859		1,748		5,531		7,727		2,391		146		794		33,370
Allowance related to loans acquired with deteriorated credit quality	—		—		—		175		—		—		—		—		175
Total allowance for loan losses	$	2,174	$	12,859	$	1,895	$	5,827	$	7,801	$	2,391	$	146	$	794	$	33,887
Loans deemed impaired	$	4,037	$	13,923	$	4,660	$	13,035	$	16,036	$	4,556	$	8	$	—	$	56,255
Loans not deemed impaired	317,628		1,657,721		166,346		588,982		1,163,879		426,726		230,061		—		4,551,343
Loans acquired with deteriorated credit quality	419		1,604		—		1,315		—		—		2,995		—		6,333
Total loans	$	322,084	$	1,673,248	$	171,006	$	603,332	$	1,179,915	$	431,282	$	233,064	$	—	$	4,613,931

Management has established the allowance for loan loss in accordance with GAAP at September 30, 2016 based on the current risk assessment and level of loss that is believed to exist within the portfolio. This level of reserve is deemed an appropriate estimate of probable loan losses inherent in the loan portfolio as of September 30, 2016 based upon the analysis conducted and given the portfolio composition, delinquencies, charge offs and risk rating changes experienced during the first nine months of 2016 and the three-year evaluation period utilized in the analysis. Based on the qualitative assessment of the portfolio and in thorough consideration of non-performing loans, management believes that the allowance for loan losses properly supports the level of associated loss and risk.

21

The following is a summary of past due and non-accrual loans at September 30, 2016 and December 31, 2015, including purchased credit impaired loans:

	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Past Due 90 Days or More and Still Accruing		Loans on Non-accrual
	(In thousands)
September 30, 2016
Owner-occupied CRE	$	1,015	$	160	$	1,909	$	3,084	$	—	$	2,933
Investor CRE	1,243		1,510		3,242		5,995		178		4,079
Construction	—		—		2,109		2,109		—		2,315
Commercial business loans	690		202		2,360		3,253		38		2,686
Residential real estate	236		2,649		6,996		9,881		—		15,563
Home equity	1,248		1,181		2,151		4,580		—		5,419
Other consumer	1,854		450		256		2,560		242		333
Total	$	6,286	$	6,152	$	19,023	$	31,462	$	458	$	33,328
December 31, 2015
Owner-occupied CRE	$	900	$	191	$	1,505	$	2,596	$	—	$	3,055
Investor CRE	3,154		2,498		4,519		10,171		—		8,565
Construction	214		449		2,135		2,798		—		2,808
Commercial business loans	526		266		2,804		3,596		66		4,244
Residential real estate	8,507		2,112		6,936		17,555		238		14,056
Home equity	2,009		646		1,549		4,204		—		5,066
Other consumer	17		3		8		28		3		8
Total	$	15,327	$	6,165	$	19,456	$	40,948	$	307	$	37,802

Loans reported as past due 90 days or more and still accruing represent loans that were evaluated by management and maintained on accrual status based on an evaluation of the borrower. At September 30, 2016 and December 31, 2015, there was one U.S. Government fully guaranteed loan reported as past due 90 days or more and still accruing in addition to accruing purchased credit impaired loans.

22

The following is a summary of impaired loans with and without a valuation allowance as of September 30, 2016 and December 31, 2015:

	September 30, 2016						December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
Impaired loans without a valuation allowance:
Owner-occupied CRE	$	3,539	$	4,459	$	—	$	4,037	$	5,370	$	—
Investor CRE	9,747		10,404		—		13,923		15,011		—
Construction	3,863		5,932		—		4,442		6,869		—
Commercial business loans	9,977		13,618		—		12,634		14,477		—
Residential real estate	15,674		18,845		—		14,056		16,876		—
Home equity	6,528		7,376		—		5,259		5,953		—
Other consumer	33		33		—		8		11		—
Total	49,361		60,667		—		54,359		64,567		—
Impaired loans with a valuation allowance:
Construction	—		—		—		218		218		147
Commercial business loans	952		952		761		401		401		121
Residential real estate	1,258		1,274		70		1,277		1,292		74
Other consumer	479		1,617		391		—		—		—
Total	2,689		3,843		1,222		1,896		1,911		342
Total impaired loans	$	52,050	$	64,510	$	1,222	$	56,255	$	66,478	$	342

The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the periods indicated:

	For the Three Months   Ended September 30, 2016				For the Three Months   Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Owner-occupied CRE	$	4,037	$	—	$	5,310	$	67
Investor CRE	10,737		218		12,537		385
Construction	4,012		30		3,867		26
Commercial business loans	12,706		—		6,479		493
Residential real estate	16,843		185		15,138		779
Home equity	5,992		71		3,957		51
Other consumer	921		—		19		8
Total	$	55,248	$	504	$	47,307	$	1,809

23

	For the Nine Months   Ended September 30, 2016				For the Nine Months   Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Owner-occupied CRE	$	4,073	$	241	$	6,253	$	171
Investor CRE	11,717		325		12,288		821
Construction	4,499		104		3,564		83
Commercial business loans	13,034		337		6,536		804
Residential real estate	16,466		556		14,303		1,161
Home equity	5,592		156		3,316		91
Other consumer	469		1		28		9
Total	$	55,850	$	1,720	$	46,288	$	3,140

Troubled Debt Restructurings

The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the restructuring constitutes a concession by the creditor and (ii) the debtor is experiencing financial difficulties. A TDR may include (i) a transfer from the debtor to the creditor of receivables from third parties, real estate, or other assets to satisfy fully or partially a debt, (ii) issuance or other granting of an equity interest to the creditor by the debtor to satisfy fully or partially a debt unless the equity interest is granted pursuant to existing terms for converting debt into an equity interest, and (iii) modifications of terms of a debt.

The following table provides detail of TDR balances for the periods presented:

	At September 30, 2016		At December 31, 2015
	(In thousands)
Recorded investment in TDRs:
Accrual status	$	18,758	$	18,453
Non-accrual status	7,345		5,611
Total recorded investment in TDRs	$	26,103	$	24,064
Accruing TDRs performing under modified terms more than one year	$	8,394	$	5,821
Specific reserves for TDRs included in the balance of allowance for loan losses	$	690	$	223
Additional funds committed to borrowers in TDR status	$	—	$	513

24

Loans restructured as TDRs during the three and nine months ended September 30, 2016 and 2015 are set forth in the following table:

	Three Months Ended					Nine Months Ended
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
September 30, 2016
Owner-occupied CRE	—	$	—	$	—	5	$	654	$	654
Construction	—	—		—		2	67		67
Commercial business	2	2,083		2,083		7	4,667		6,750
Residential real estate	4	377		385		13	1,320		1,705
Home equity	5	886		886		14	1,338		2,224
Total TDRs	11	$	3,346	$	3,354	41	$	8,046	$	11,400
September 30, 2015
Investor CRE	—	$	—	$	—	2	$	791	$	791
Construction	—	—		—		2	564		564
Commercial business	3	592		592		5	1,340		1,340
Residential real estate	2	59		59		15	2,544		2,561
Home equity	5	455		455		9	622		602
Total TDRs	10	$	1,106	$	1,106	33	$	5,861	$	5,858

25

The following table provides information on loan balances modified as TDRs during the period:

	Three Months Ended September 30,
	2016										2015
	Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other		Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other
	(In thousands)
Commercial business	$	—	$	—	$	100	$	—	$	1,983	$	585	$	—	$	7	$	—	$	—
Residential real estate	87		—		290		—		—		—		39		101		—		—
Home equity	—		261		137		488		—		—		—		20		—		354
	$	87	$	261	$	527	$	488	$	1,983	$	585	$	39	$	128	$	—	$	354

	Nine Months Ended September 30,
	2016										2015
	Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other		Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other
	(In thousands)
Owner-occupied CRE	$	510	$	—	$	86	$	—	$	58	$	—	$	—	$	—	$	—	$	—
Investor CRE	—		—		—		—		—		538		—		253		—		—
Construction	23		—		44		—		—		564		—		—		—		—
Commercial business	2,000		—		243		348		2,076		1,333		—		7		—		—
Residential real estate	87		—		672		561		—		—		940		370		786		529
Home equity	—		261		473		604		—		—		—		95		28		418
	$	2,620	$	261	$	1,518	$	1,513	$	2,134	$	2,435	$	940	$	725	$	814	$	947

The following table provides information on loans modified as TDRs within the previous 12 months and for which there was a payment default during the periods presented:

	September 30, 2016			September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(In thousands)
Owner-occupied CRE	—	$	—	4	$	359
Investor CRE	—	—		3	880
Construction	1	437		—	—
Residential real estate	—	—		3	402
Total	1	$	437	10	$	1,641

The majority of restructured loans were on accrual status as of September 30, 2016 and December 31, 2015. Typically, residential loans are restructured with a modification and extension of the loan amortization and maturity at substantially the same interest rate as contained in the original credit extension. As part of the TDR process, the current value of the property is compared to the general ledger loan balance and if not fully supported, a charge-off is processed through the allowance for loan losses. Commercial real estate loans, commercial construction loans and commercial business loans also contain payment modification agreements and a like assessment of the underlying collateral value if the borrower’s cash flow may be inadequate to service the entire obligation.

Loan Servicing

The Company services certain loans for third parties. The aggregate balance of loans serviced for others was $1.02 billion and $863.7 million as of September 30, 2016 and December 31, 2015, respectively. The balances of these loans are not included on the accompanying Consolidated Statements of Condition.

26

The risks inherent in mortgage servicing rights relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The fair value of mortgage servicing rights at September 30, 2016 and December 31, 2015 was determined using pretax internal rates of return ranging from 9.5% to 11.5% and the Public Securities Association Standard Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 298 and 183, respectively. The fair value of mortgage servicing rights is obtained from a third party provider.

During the three and nine months ended September 30, 2016, the Company received servicing income in the amount of $416,000 and $1.3 million compared to $310,000 and $799,000, for the same periods in 2015, respectively. This income is included in income from mortgage banking activities in the Consolidated Statements of Net Income.

Mortgage servicing rights are included in other assets on the Consolidated Statements of Condition. Changes in the fair value of mortgage servicing rights are included in income from mortgage banking activities in the Consolidated Statements of Net Income. The following table summarizes mortgage servicing rights activity for the three and nine months ended September 30, 2016 and 2015.

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Mortgage servicing rights:
Balance at beginning of period	$	6,589		$	5,994		$	7,074		$	4,729
Change in fair value recognized in net income	(114		)	(888		)	(1,800		)	(888		)
Issuances	621			889			1,822			2,154
Fair value of mortgage servicing rights at end of period	$	7,096		$	5,995		$	7,096		$	5,995

Note 5. Goodwill and Core Deposit Intangibles

The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:

	Goodwill		Core Deposit Intangibles
	(In thousands)
Balance at December 31, 2014	$	115,240	$	9,302
Adjustments	41		—
Amortization expense	—		(1,796		)
Balance at December 31, 2015	$	115,281	$	7,506
Amortization expense	—		(1,219		)
Balance at September 30, 2016	$	115,281	$	6,287
Estimated amortization expense for the years ending December 31,
2016 (remaining three months)			$	385
2017			1,411
2018			1,219
2019			1,026
2020			834
2021 and thereafter			1,412
Total remaining			$	6,287

27

On April 30, 2014, Rockville Financial, Inc. completed its merger with United Financial Bancorp, Inc. (“Legacy United”). Discussions throughout this report related to the merger with Legacy United are referred to as the “Merger”. The goodwill associated with the Merger is not tax deductible. In accordance with ASC 350, Intangibles – Goodwill and Other, goodwill is not amortized, but will be subject to an annual review of qualitative factors to determine if an impairment test is required. The amortizing intangible asset associated with the acquisition consists of the core deposit intangible. The core deposit intangible is being amortized using the sum of the years’ digits method over its estimated life of 10 years. Amortization expense of the core deposit intangible was $385,000 and $433,000 for the three months ended September 30, 2016 and 2015, respectively, and was $1.2 million and $1.4 million for the nine months ended September 30, 2016 and 2015, respectively.

Note 6. Borrowings

Federal Home Loan Bank of Boston (“FHLBB”) Advances

The Bank is a member of the FHLBB. Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of September 30, 2016 and December 31, 2015 are summarized below:

	September 30, 2016				December 31, 2015
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(Dollars in thousands)
2016	$	445,000	0.63	%	$	637,580	0.60	%
2017	288,000		1.09		151,000		1.76
2018	140,044		1.48		120,795		1.54
2019	20,000		1.45		20,000		1.63
2020 and thereafter	82,306		0.73		16,130		2.21
	$	975,350	0.91	%	$	945,505	0.95	%

The total carrying value of FHLBB advances at September 30, 2016 was $977.5 million, which includes a remaining fair value adjustment of $2.1 million on acquired advances. At December 31, 2015, the total carrying value of FHLBB advances was $949.0 million, with a remaining fair value adjustment of $3.5 million.

At September 30, 2016, eight advances totaling $93.0 million with interest rates ranging from 0.26% to 4.49%, which are scheduled to mature between 2017 and 2031, are callable by the FHLBB. Advances are collateralized by first mortgage loans and investment securities with an estimated eligible collateral value of $1.5 billion and $1.3 billion at September 30, 2016 and December 31, 2015, respectively.

In addition to the outstanding advances, the Bank has access to an unused line of credit with the FHLBB amounting to $10.0 million at September 30, 2016 and December 31, 2015. In accordance with an agreement with the FHLBB, the qualified collateral must be free and clear of liens, pledges and have a discounted value equal to the aggregate amount of the line of credit and outstanding advances. At September 30, 2016, the Bank could borrow immediately an additional $408.5 million from the FHLBB, inclusive of the line of credit.

Other Borrowings

The following table presents other borrowings by category as of the dates indicated:

	September 30, 2016		December 31, 2015
	(In thousands)
Subordinated debentures	$	79,658	$	79,489
Wholesale repurchase agreements	20,000		45,000
Customer repurchase agreements	21,387		19,278
Other	4,354		6,250
Total other borrowings	$	125,399	$	150,017

Subordinated Debentures

At September 30, 2016 and December 31, 2015, the carrying value of the Company’s subordinated debentures totaled $79.7 million and $79.5 million, respectively.

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On September 23, 2014, the Company closed its public offering of $75.0 million of its 5.75% Subordinated Notes due October 1, 2024 (the “Notes”). The Notes were offered to the public at par. Interest on the Notes is payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2015. Issuance costs totaled $1.3 million and are being amortized over the life of the Notes as a component of interest expense.

In connection with the Merger, the Company has assumed junior subordinated debt in the form of trust preferred securities issued through a private placement offering with a face amount of $7.7 million. The Company recorded a fair value acquisition discount of $2.3 million on May 1, 2014. The remaining unamortized discount was $2.1 million at September 30, 2016. This issue has a maturity date of March 15, 2036 and bears a floating rate of interest that reprices quarterly at the 3-month LIBOR rate plus 1.85%. A special redemption provision allows the Company to redeem this issue at par on March 15, June 15, September 15, or December 15 of any year subsequent to March 15, 2011.

Repurchase Agreements

The following table presents the Company’s outstanding borrowings under repurchase agreements as of September 30, 2016 and December 31, 2015:

	Remaining Contractual Maturity of the Agreements
	Overnight		Up to 1 Year		1 - 3 Years		Greater than 3 Years		Total
	(In thousands)
September 30, 2016
Repurchase Agreements
U.S. Agency Securities	$	21,387	$	—	$	20,000	$	—	$	41,387
December 31, 2015
Repurchase Agreements
U.S. Agency Securities	$	19,278	$	25,000	$	20,000	$	—	$	64,278

As of September 30, 2016 and December 31, 2015, advances outstanding under wholesale reverse repurchase agreements totaled $20.0 million and $45.0 million, respectively. The outstanding advances at September 30, 2016 consisted of two individual borrowings with remaining terms of three years or less and a weighted average cost of 2.59%. The outstanding advances at December 31, 2015 consisted of three individual borrowings with remaining terms of three years or less and had a weighted average cost of 1.51%. The Company pledged investment securities with a market value of $24.2 million and $51.1 million as collateral for these borrowings at September 30, 2016 and December 31, 2015, respectively.

Retail repurchase agreements primarily consist of transactions with commercial and municipal customers, are for a term of one day and are backed by the purchasers’ interest in certain U.S. Government Agency securities or government-sponsored securities. As of September 30, 2016 and December 31, 2015, retail repurchase agreements totaled $21.4 million and $19.3 million, respectively. The Company pledged investment securities with a market value of $30.3 million and $34.6 million as collateral for these borrowings at September 30, 2016 and December 31, 2015, respectively.

Given that the repurchase agreements are secured by investment securities valued at market value, the collateral position is susceptible to change based upon variation in the market value of the securities that can arise due to fluctuations in interest rates, among other things. In the event that the interest rate changes result in a decrease in the value of the pledged securities, additional securities will be required to be pledged in order to secure the borrowings. Due to the short term nature of the majority of the repurchase agreements, Management believes the risk of further encumbered securities pose a minimal impact to the Company’s liquidity position.

Other

At September 30, 2016 other borrowings consist of capital lease obligations. At December 31, 2015 other borrowings consist of a secured borrowing and capital lease obligations. The secured borrowing relates to the transfer of a financial asset that did not meet the definition of a participating interest and did not meet sale accounting criteria; therefore, it is accounted for as a secured borrowing and classified as long-term debt on the Consolidated Statements of Condition. The Company has capital lease obligations for three of its leased banking branches.

Other Sources of Wholesale Funding

The Bank has relationships with brokered sweep deposit providers by which funds are deposited by the counterparties at the Bank’s request. Amounts outstanding under these agreements are reported as interest-bearing deposits and totaled $223.6 million

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at a cost of 0.58% at September 30, 2016 and $123.1 million at a cost of 0.45% at December 31, 2015. The Bank maintains open dialogue with the brokered sweep providers and has the ability to increase the deposit balances upon request, up to certain limits based upon internal policy requirements.

Additionally, the Company has unused federal funds lines of credit with four counterparties totaling $107.5 million at September 30, 2016.

Note 7. Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers. The Company manages a matched book with respect to these derivative instruments in order to minimize its net risk exposure resulting from such transactions.

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Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of September 30, 2016 and December 31, 2015 is as follows:

	Notional Amount		Weighted-Average Remaining Maturity	Weighted-Average Rate						Estimated Fair Value, Net Asset (Liability)
				Received			Paid
	(In thousands)		(In years)							(In thousands)
September 30, 2016
Cash flow hedges:
Forward starting interest rate swaps on future borrowings	$	100,000	7.61	TBD		(1)	2.43	%		$	(5,926	)
Interest rate swaps	330,000		2.60	0.78	%		1.47	%		(8,592		)
Fair value hedges:
Interest rate swaps	35,000		0.97	1.04	%		0.60	%	(2)	97
Non-hedging derivatives:
Forward loan sale commitments	121,961		0.00							(297		)
Derivative loan commitments	47,921		0.00							868
Interest rate swap	7,500		9.79							(90		)
Loan level swaps - dealer(3)	439,749		7.84	2.23	%		3.80	%		(28,769		)
Loan level swaps - borrowers(3)	439,749		7.84	3.80	%		2.23	%		28,719
Total	$	1,521,880								$	(13,990	)
December 31, 2015
Cash flow hedges:
Forward starting interest rate swaps on future borrowings	$	150,000	7.99	TBD		(1)	2.46	%		$	(2,072	)
Interest rate swaps	280,000		2.65	0.46	%		1.28	%		(2,020		)
Fair value hedges:
Interest rate swaps	35,000		1.72	1.04	%		0.48	%	(2)	24
Non-hedging derivatives:
Forward loan sale commitments	25,060		0.00							(13		)
Derivative loan commitments	9,403		0.00							223
Loan level swaps - dealer(3)	333,971		9.05	1.94	%		3.93	%		(12,059		)
Loan level swaps - borrowers(3)	333,981		9.05	3.93	%		1.94	%		12,152
Total	$	1,167,415								$	(3,765	)

(1) The receiver leg of the cash flow hedges is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for these forward starting cash flow hedges is October 16, 2017.

(2) The paying leg is one month LIBOR plus a fixed spread; above rate in effect as of the date indicated.

(3) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted

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transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2016, the Company did not record any hedge ineffectiveness.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $1.9 million from accumulated other comprehensive loss to interest expense during the next 12 months.

The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a period of approximately 60 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments).

As of September 30, 2016, the Company had ten outstanding interest rate derivatives with a notional value of $430.0 million that were designated as cash flow hedges of interest rate risk.

Fair Value Hedges of Interest Rate Risk

The Company is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without the exchange of the underlying notional amount.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting gain or loss on the related derivatives. For the three and nine months ended September 30, 2016 and 2015, the Company recognized a negligible net reduction to interest expense.

As of September 30, 2016, the Company had three outstanding interest rate derivatives with a notional amount of $35.0 million that were designated as a fair value hedge of interest rate risk.

Non-Designated Hedges

Qualifying derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings.

As of September 30, 2016, the Company had 65 borrower-facing interest rate derivatives with an aggregate notional amount of $439.7 million and 65 broker derivatives with an aggregate notional value amount of $439.7 million related to this program.

As of September 30, 2016, the Company had five risk participation agreements with three counterparties related to a loan level interest rate swap with five of its commercial banking customers. Of these agreements, four were entered into in conjunction with credit enhancements provided to the borrowers by the counterparties; therefore, if the borrowers default, the counterparties are responsible for a percentage of the exposure. During the third quarter of 2015, one agreement was entered into in conjunction with credit enhancements provided to the borrower by the Bank, whereby the Bank is responsible for a percentage of the exposure to the counterparty. At September 30, 2016, the notional amount of this risk participation agreement was $6.1 million, reflecting the counterparty participation of 33.1%. The risk participation agreements are a guarantee of performance on a derivative and accordingly, are recorded at fair value on the Company’s Consolidated Statements of Condition. At September 30, 2016, the notional amount of the remaining four risk participation agreements was $26.6 million, reflecting the counterparty participation level of 39.2%.

As of September 30, 2016, the Company had one receive-fixed interest rate derivative with a notional amount of $7.5 million and a maturity date in July 2026. The derivative was executed to protect against a portion of the devaluation of the Company’s mortgage servicing right asset that occurs in a falling rate environment. Both instruments are marked to market through the income statement.

Derivative Loan Commitments

Additionally, the Company enters into mortgage loan commitments that are also referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market.

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Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases.

Forward Loan Sale Commitments

To protect against the price risk inherent in derivative loan commitments, the Company utilizes To Be Announced (“TBA”) as well as cash (“mandatory delivery” and “best efforts”) forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments.

With TBA and mandatory cash contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor/counterparty at a specified price on or before a specified date. If the market improves (rate decline) and the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Conversely if the market declines (rates worsen) the investor/counterparty is obligated to pay a “pair-off” fee to the Company based on then-current market prices. The Company expects that these forward loan sale commitments, TBA and mandatory, will experience changes in fair value opposite to the change in fair value of derivative loan commitments.

With best effort cash contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally best efforts cash contracts have no pair off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments, best efforts, will experience a net neutral shift in fair value of derivative loan commitments.

Fair Values of Derivative Instruments on the Statement of Condition

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of September 30, 2016 and December 31, 2015:

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	Sep 30, 2016		Dec 31, 2015		Balance Sheet Location	Sep 30, 2016		Dec 31, 2015
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate swap - cash flow hedge	Other Assets	$	21	$	478	Other Liabilities	$	14,539	$	4,570
Interest rate swap - fair value hedge	Other Assets	97		50		Other Liabilities	—		26
Total derivatives designated as hedging instruments		$	118	$	528		$	14,539	$	4,596
Derivatives not designated as hedging instruments:
Forward loan sale commitments	Other Assets	$	4	$	7	Other Liabilities	$	301	$	20
Derivative loan commitments	Other Assets	868		223			—		—
Interest rate swap	Other Assets	10		—		Other Liabilities	100		—
Interest rate swap - with customers	Other Assets	28,719		12,152			—		—
Interest rate swap - with counterparties		—		—		Other Liabilities	28,769		12,059
Total derivatives not designated as hedging		$	29,601	$	12,382		$	29,170	$	12,079

Effect of Derivative Instruments in the the Company’s Consolidated Statements of Net Income and Changes in Stockholders’ Equity

The tables below presents the effect of derivative instruments in the Company’s Statements of Changes in Stockholders’ Equity designated as hedging instruments for the three and nine months ended September 30, 2016 and 2015:

Cash Flow Hedges
	Amount of Gain (Loss) Recognized in AOCI  (Effective Portion)
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
	(In thousands)
Interest rate swaps	$	2,190	$	(4,898	)	$	(10,426	)	$	(5,521	)

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	Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(In thousands)
Interest rate swaps	$	664	$	—	$	1,844	$	(12	)

The tables below present information pertaining to the Company’s derivatives in the Consolidated Statements of Net Income designated as hedging instruments for the three and nine months ended September 30, 2016 and 2015:

Fair Value Hedges
		Amount of Gain (Loss) Recognized in Income for Derivatives
Derivatives Designated as Fair Value Hedging Instruments	Location of Gain (Loss) Recognized in Income	Three Months Ended September 30,						Nine Months Ended September 30,
		2016			2015			2016			2015
		(In thousands)
Interest Rate Swaps	Interest income	$	100		$	137		$	73		$	303
		Amount of Gain (Loss) Recognized in Income for Hedged Items
		Three Months Ended September 30,						Nine Months Ended September 30,
		2016			2015			2016			2015
		(In thousands)
Interest Rate Swaps	Interest income	$	(100	)	$	(138	)	$	(73	)	$	(306	)

The table below presents information pertaining to the Company’s derivatives not designated as hedging instruments in the Consolidated Statements of Net Income as of September 30, 2016 and 2015:

	Amount of Gain (Loss) Recognized in Income
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Derivatives not designated as hedging instruments:
Derivative loan commitments	$	(329	)	$	1,568		$	645		$	614
Forward loan sale commitments	(317		)	(37		)	(284		)	39
Interest rate swaps	(190		)	(245		)	(17		)	(3		)
	$	(836	)	$	1,286		$	344		$	650

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the counterparty defaults on any of its indebtedness or fails to maintain a well-capitalized rating, then the counterparty could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.

As of September 30, 2016, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $44.2 million. As of September 30, 2016, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $48.6 million against its obligations under these agreements. A degree of netting occurs on occasions where the Company has exposure to a counterparty and the counterparty has exposure to the Company. If the Company had breached any of these provisions at September 30, 2016, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty.

Note 8. Stock-Based Compensation Plans

The Company maintains and operates the Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”) as approved by the Company’s Board and stockholders. The 2006 Plan allows the Company to use stock options, stock awards, stock appreciation rights and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company.

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The Company maintains and operates the Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”) as approved by the Company’s Board and shareholders. The 2012 Plan allows the Company to use stock options, stock awards, and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company.

In connection with a merger, the Company assumed the following stock-based compensation plans: (a) United Financial Bancorp, Inc. 2006 Stock-Based Incentive Plan, (b) United Financial Bancorp, Inc. 2008 Equity Incentive Plan, (c) CNB Financial Corp. 2008 Equity Incentive Plan, and (d) CNB Amended and Restated Stock Option Plan collectively referred to as “the Legacy United Stock Plans.”

On October 29, 2015, a special meeting of shareholders was held and the shareholders approved the 2015 Omnibus Stock Incentive Plan (the “2015 Plan”). The 2015 Plan allows the Company to use stock options, stock awards, and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company. The 2015 Plan reserves a total of up to 4,050,000 shares (the “Cap”) of Company common stock for issuance upon the grant or exercise of awards made pursuant to the 2015 Plan. Of these shares, the Company may grant shares in the form of restricted stock, performance shares and other share-based awards and may grant stock options. However, the number of shares issuable will be adjusted by a “fungible ratio” of 2.35. This means that for each share award other than a stock option share or a stock appreciation right share, each 1 share awarded shall be deemed to be 2.35 shares awarded. The 2015 Plan became effective as of the date of approval by the Company’s shareholders, and upon shareholder approval no other awards may be granted from the previously approved or assumed plans. As of September 30, 2016, 3,356,982 shares remained available for future grants under the 2015 Plan.

For the nine-month period ended September 30, 2016, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $80,000 with a related tax benefit of $29,000 and $1.5 million with a related tax benefit of $527,000, respectively. Of the total expense amount for the nine-month period, the amount for Director stock-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $325,000, and the amount for officer stock-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $1.2 million. For the nine-month period ended September 30, 2015, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $100,000 with a related tax benefit of $36,000 and $589,000 with a related tax benefit of $212,000, respectively.

For the three-month period ended September 30, 2016, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $20,000 with a related tax benefit of $7,000 and $499,000 with a related tax benefit of $180,000, respectively. Of the total expense amount for the three-month period, the amount for Director stock-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $105,000, and the amount for officer stock-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $414,000. For the three-month period ended September 30, 2015, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $32,000 with a related tax benefit of $12,000 and $131,000 with a related tax benefit of $47,000, respectively.

The fair values of stock option and restricted stock awards, measured at grant date, are amortized to compensation expense on a straight-line basis over the vesting period.

Stock Options

The following table presents the activity related to stock options outstanding, including options that have stock appreciation rights (“SARs”), under the Plans for the nine months ended September 30, 2016:

	Number of Stock Options		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2015	2,649,735		$	10.88
Granted	—		—
Exercised	(506,854	)	9.28
Forfeited or expired	(27,696	)	13.67
Outstanding at September 30, 2016	2,115,185		$	11.22	5.3	$	5.5
Stock options vested and exercisable at September 30, 2016	1,992,585		$	11.07	5.2	$	5.5

As of September 30, 2016, the unrecognized cost related to outstanding stock options was $200,000 and will be recognized over a weighted-average period of 2.0 years.

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There were no stock options granted during the nine months ended September 30, 2016 and 2015.

Options exercised may include awards that were originally granted as tandem SARs. Therefore, if the SAR component is exercised, it will not equate to the number of shares issued due to the conversion of the SAR option value to the actual share value at exercise date. There were 20,208 options with a SAR component included in total options exercised during the nine months ended September 30, 2016.

Restricted Stock

Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. During the nine months ended September 30, 2016, the Company issued 39,328 shares of restricted stock from shares available under the Company’s 2015 Plan to certain employees. During the nine months ended September 30, 2016, the weighted-average grant date fair value was $11.70 per share and the restricted stock awards vest in either equal annual installments on the anniversary date over a 3 year period or cliff vest at the end of the 3 year period. The following table presents the activity for restricted stock for the nine months ended September 30, 2016:

	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2015	326,013		$	13.20
Granted	39,328		11.70
Vested	(21,377	)	13.19
Forfeited	—		—
Unvested as of September 30, 2016	343,964		$	13.03

As of September 30, 2016, there was $2.6 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of 2.0 years.

Employee Stock Ownership Plan

As part of the second-step conversion and stock offering completed in 2011, the Employee Stock Ownership Plan (“ESOP”)borrowed an additional $7.1 million from the Company to purchase 684,395 shares of common stock during the initial public offering and in the open market. The outstanding loan balance of $6.3 million at September 30, 2016 will be repaid principally from the Bank’s discretionary contributions to the ESOP over a remaining period of 25 years.

The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation. Under this guidance, unearned ESOP shares are not considered outstanding and are shown as a reduction of stockholders’ equity as unearned compensation. The Company will recognize compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be allocated. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, this difference will be credited or debited to equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated financial statements. Dividends on unallocated shares are used to pay the ESOP debt.

At September 30, 2016, the remaining loan had an outstanding balance of $6.3 million and the interest rate is the prime rate plus one percent. The unallocated ESOP shares are pledged as collateral on the loans. As the loans are repaid to the Company, shares will be released from collateral and will be allocated to the accounts of the participants. For the three months ended September 30, 2016 and 2015, ESOP compensation expense was $77,000 and $75,000, respectively. For the nine months ended September 30, 2016 and 2015, ESOP compensation expense was $216,000 and $222,000, respectively.

The ESOP shares as of the period indicated below were as follows:

	September 30, 2016
Allocated shares	1,175,239
Shares allocated for release	17,110
Unreleased shares	553,219
Total ESOP shares	1,745,568
Market value of unreleased shares (in thousands)	$	7,893

Note 9. Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. The regulations require the Company and the Bank to meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items, as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. At September 30, 2016, the Bank exceeded all regulatory capital requirements and is considered “well-capitalized” under regulatory guidelines.

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Basel III

In July 2013, federal banking regulators approved final rules that implement changes to the regulatory capital framework for U.S. banks. The rules set minimum requirements for both the quantity and quality of capital held by community banking institutions. The final rule includes a new minimum ratio of common equity Tier 1 capital to risk weighted assets of 4.5%, raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6%, and includes a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The phase-in period for the rules began for the Company on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule. Management believes that the Company’s capital levels will remain characterized as “well-capitalized” under the new rules.

The following is a summary of the Company’s and the Bank’s regulatory capital amounts and ratios as of September 30, 2016 and December 31, 2015 compared to the FDIC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy:

	Actual				Minimum For Capital Adequacy Purposes				Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
United Bank
September 30, 2016
Total capital to risk weighted assets	$	601,416	12.3	%	$	391,165	8.0	%	$	488,956	10.0	%
Common equity tier 1 capital to risk weighted assets	558,812		11.4		220,584		4.5		318,621		6.5
Tier 1 capital to risk weighted assets	558,812		11.4		294,112		6.0		392,149		8.0
Tier 1 capital to total average assets	558,812		8.9		251,151		4.0		313,939		5.0
December 31, 2015
Total capital to risk weighted assets	$	558,969	11.2	%	$	398,552	8.0	%	$	498,190	10.0	%
Common equity tier 1 capital to risk weighted assets	523,786		10.5		224,266		4.5		323,940		6.5
Tier 1 capital to risk weighted assets	523,786		10.5		299,022		6.0		398,695		8.0
Tier 1 capital to total average assets	523,786		8.9		234,882		4.0		293,602		5.0
United Financial Bancorp, Inc.
September 30, 2016
Total capital to risk weighted assets	$	655,285	13.3	%	$	394,156	8.0	%	N/A		N/A
Common equity tier 1 capital to risk weighted assets	537,681		10.9		221,978		4.5		N/A		N/A
Tier 1 capital to risk weighted assets	537,681		10.9		295,971		6.0		N/A		N/A
Tier 1 capital to total average assets	537,681		8.5		253,026		4.0		N/A		N/A
December 31, 2015
Total capital to risk weighted assets	$	628,915	12.5	%	$	401,542	8.0	%	N/A		N/A
Common equity tier 1 capital to risk weighted assets	518,732		10.3		225,972		4.5		N/A		N/A
Tier 1 capital to risk weighted assets	518,732		10.3		301,296		6.0		N/A		N/A
Tier 1 capital to total average assets	518,732		8.9		233,926		4.0		N/A		N/A

Connecticut law restricts the amount of dividends that the Bank can pay the Company based on retained earnings for the current year and the preceding two years.

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Note 10. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows:

	September 30, 2016			December 31, 2015
	(In thousands)
Benefit plans:
Unrecognized net actuarial loss	$	(6,704	)	$	(7,080	)
Tax effect	2,416			2,551
Net-of-tax amount	(4,288		)	(4,529		)
Securities available for sale:
Net unrealized gain (loss)	15,562			(5,821		)
Tax effect	(5,600		)	2,088
Net-of-tax amount	9,962			(3,733		)
Interest rate swaps:
Net unrealized loss	(14,518		)	(4,092		)
Tax effect	5,231			1,475
Net-of-tax amount	(9,287		)	(2,617		)
	$	(3,613	)	$	(10,879	)

Note 11. Net Income Per Share

The following table sets forth the calculation of basic and diluted net income per share for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands, except share data)
Net income available to common stockholders	$	14,159		$	13,381		$	35,111		$	39,738
Weighted-average common shares outstanding	50,357,085			49,510,996			50,179,784			49,414,633
Less: average number of unallocated ESOP award shares	(556,980		)	(579,793		)	(562,648		)	(585,440		)
Weighted-average basic shares outstanding	49,800,105			48,931,203			49,617,136			48,829,193
Dilutive effect of stock options	341,070			498,606			299,913			510,078
Weighted-average diluted shares	50,141,175			49,429,809			49,917,049			49,339,271
Net income per share:
Basic	$	0.28		$	0.27		$	0.71		$	0.81
Diluted	$	0.28		$	0.27		$	0.70		$	0.81

For the three and nine months ended September 30, 2016, the weighted-average number of anti-dilutive stock options excluded from diluted earnings per share were 270,329 and 627,768, respectively. For the three and nine months ended September 30, 2015, the weighted-average number of anti-dilutive stock options excluded from diluted earnings per share were 637,770 shares. For the periods shown, the stock options are anti-dilutive because the strike price is greater than the average fair value of the Company’s common stock for the periods presented.

Note 12. Fair Value Measurements

Fair value estimates are made as of a specific point in time based on the characteristics of the assets and liabilities and relevant market information. In accordance with FASB ASC 820, the fair value estimates are measured within the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

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Level 1: Quoted prices are available in active markets for identical assets and liabilities as of the reporting date. The quoted price is not adjusted because of the size of the position relative to trading volume.

Level 2: Pricing inputs are observable for assets and liabilities, either directly or indirectly, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3: Pricing inputs are unobservable for assets and liabilities and include situations where there is little, if any, market activity and the determination of fair value requires significant judgment or estimation.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such instances, the determination of which category within the fair value hierarchy is appropriate for any given asset and liability is based on the lowest level of input that is significant to the fair value of the asset and liability.

When available, quoted market prices are used. In other cases, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Changes in assumptions could significantly affect these estimates and could be material. Derived fair value estimates may not be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument.

Fair value estimates for financial instrument fair value disclosures are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company.

Loans Held for Sale

The Company has elected the fair value option for its portfolio of residential real estate mortgage loans held for sale to reduce certain timing differences and better match changes in fair value of the loans with changes in the fair value of the derivative loan sale contracts used to economically hedge them.

The aggregate principal amount of the residential real estate mortgage loans held for sale was $82.1 million and $9.8 million at September 30, 2016 and December 31, 2015, respectively. The aggregate fair value of these loans as of the same dates was $83.3 million and $10.1 million, respectively.

There were no residential real estate mortgage loans held for sale 90 days or more past due at September 30, 2016 and December 31, 2015.

The following table presents the gains in fair value related to mortgage loans held for sale for the periods indicated. Changes in the fair value of mortgage loans held for sale are reported as a component of income from mortgage banking activity in the Consolidated Statements of Net Income.

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2016		2015			2016		2015
	(In thousands)
Mortgage loans held for sale	$	1,490	$	(498	)	$	1,530	$	183

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables detail the assets and liabilities carried at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during the nine months ended September 30, 2016 and 2015.

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	Total Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2016
Available-for-Sale Securities:
Government-sponsored residential mortgage-backed securities	$	164,668	$	—	$	164,668	$	—
Government-sponsored residential collateralized debt obligations	197,830		—		197,830		—
Government-sponsored commercial mortgage-backed securities	27,820		—		27,820		—
Government-sponsored commercial collateralized debt obligations	179,726		—		179,726		—
Asset-backed securities	160,357		—		13,532		146,825
Corporate debt securities	60,210		—		58,698		1,512
Obligations of states and political subdivisions	223,856		—		223,856		—
Marketable equity securities	37,972		3,296		34,676		—
Total available-for-sale securities	$	1,052,439	$	3,296	$	900,806	$	148,337
Mortgage loan derivative assets	$	882	$	—	$	882	$	—
Mortgage loan derivative liabilities	401		—		401		—
Loans held for sale	83,321		—		83,321		—
Mortgage servicing rights	7,096		—		—		7,096
Interest rate swap assets	28,837		—		28,837		—
Interest rate swap liabilities	43,308		—		43,308		—
December 31, 2015
Available-for-Sale Securities:
U.S. Government and government-sponsored enterprise obligations	$	10,089	$	—	$	10,089	$	—
Government-sponsored residential mortgage-backed securities	145,861		—		145,861		—
Government-sponsored residential collateralized-debt obligations	286,967		—		286,967		—
Government-sponsored commercial mortgage-backed securities	20,965		—		20,965		—
Government-sponsored commercial collateralized-debt obligations	128,972		—		128,972		—
Asset-backed securities	159,901		—		15,388		144,513
Corporate debt securities	59,960		—		58,403		1,557
Obligations of states and political subdivisions	201,115		—		201,115		—
Marketable equity securities	45,339		3,227		42,112		—
Total available-for-sale securities	$	1,059,169	$	3,227	$	909,872	$	146,070
Mortgage loan derivative assets	$	230	$	—	$	230	$	—
Mortgage loan derivative liabilities	20		—		20		—
Loans held for sale	10,136		—		10,136		—
Mortgage servicing rights	7,074		—		—		7,074
Interest rate swap assets	12,680		—		12,680		—
Interest rate swap liabilities	16,655		—		16,655		—

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The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
Balance of available-for-sale securities, at beginning of period	$	145,134		$	146,956		$	146,070		$	137,207
Purchases (sales)	91			2,995			(909		)	12,794
Principal payments and net accretion	(244		)	(532		)	(722		)	(967		)
Total realized losses included in earnings	(14		)	—			(164		)	—
Total unrealized gains (losses) included in other comprehensive income/loss	3,370			(800		)	4,062			(415		)
Balance at end of period	$	148,337		$	148,619		$	148,337		$	148,619
Balance of mortgage servicing rights, at beginning of period	$	6,589		$	5,994		$	7,074		$	4,729
Issuances	621			889			1,822			2,154
Change in fair value recognized in net income	(114		)	(888		)	(1,800		)	(888		)
Balance at end of period	$	7,096		$	5,995		$	7,096		$	5,995

The following valuation methodologies are used for certain assets that are recorded at fair value on a recurring basis.

Available-for-Sale Securities: Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. Level 1 securities are those traded on active markets for identical securities including U.S. treasury securities, equity securities and mutual funds. Level 2 securities include U.S. Government agency obligations, U.S. Government-sponsored enterprises, mortgage-backed securities, obligations of states and political subdivisions, corporate and other debt securities. Level 3 securities include private placement securities and thinly traded equity securities. All fair value measurements are obtained from a third party pricing service and are not adjusted by management.

Matrix pricing is used for pricing most obligations of states and political subdivisions, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on securities relationships to other benchmark quoted securities. The grouping of securities is completed according to insurer, credit support, state of issuance and rating to incorporate additional spreads and municipal bond yield curves.

The valuation of the Company’s asset-backed securities is obtained from a third party pricing provider and is determined utilizing an approach that combines advanced analytics with structural and fundamental cash flow analysis based upon observed market based yields. The third party provider’s model analyzes each instrument’s underlying collateral given observable collateral characteristics and credit statistics to extrapolate future performance and project cash flows, by incorporating expectations of default probabilities, recovery rates, prepayment speeds, loss severities and a derived discount rate. The Company has determined that due to the liquidity and significance of unobservable inputs, that asset-backed securities are classified in Level 3 of the valuation hierarchy.

The Company holds one pooled trust preferred security. The security’s fair value is based on unobservable issuer-provided financial information and discounted cash flow models derived from the underlying structured pool and therefore is classified as Level 3.

Loans Held for Sale: The fair value of residential mortgage loans held for sale is estimated using quoted market prices for loans with similar characteristics provided by government-sponsored entities. Any changes in the valuation of mortgage loans held for sale is based upon the change in market interest rates between closing the loan and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. The Company has determined that loans held for sale are classified in Level 2 of the valuation hierarchy.

Mortgage Servicing Rights: A mortgage servicing right (“MSR”) asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing. The fair value of servicing rights is provided by a third party and is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan

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prepayments and discount rates. Adjustments are recorded monthly. (See Note 4, “Loans Receivable and Allowance for Loan Losses” in the Notes to Consolidated Financial Statements contained elsewhere in this report) as the cash flows derived from the valuation model change the fair value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

Derivatives: Derivative instruments related to commitments for loans to be sold are carried at fair value. Fair value is determined through quotes obtained from actively traded mortgage markets. Any change in fair value for rate lock commitments to the borrower is based upon the change in market interest rates between making the rate lock commitment and the measurement date and, for forward loan sale commitments to the investor, is based upon the change in market interest rates from entering into the forward loan sales contract and the measurement date. Both the rate lock commitments to the borrowers and the forward loan sale commitments to investors are derivatives pursuant to the requirements of FASB ASC 815-10; however, the Company has not designated them as hedging instruments. Accordingly, they are marked to fair value through earnings.

The Company’s intention is to sell the majority of its fixed rate mortgage loans with original terms of 30 years on a servicing retained basis as well as certain 10, 15 and 20 year loans. The servicing value has been included in the pricing of the rate lock commitments. The Company estimates a fallout rate of approximately 14.5% based upon historical averages in determining the fair value of rate lock commitments. Although the use of historical averages is based upon unobservable data, the Company believes that this input is insignificant to the valuation and, therefore, has concluded that the fair value measurements meet the Level 2 criteria. The Company continually reassesses the significance of the fallout rate on the fair value measurement and updates the fallout rate accordingly.

Hedging derivatives include interest rate swaps as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy.

The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at September 30, 2016:

(Dollars in thousands)
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Asset-backed securities	$	146,825	Discounted Cash Flow	Discount Rates	2.4% - 3.7% (3.7%)
				Cumulative Default %	6.0% - 8.3% (8.4%)
				Loss Given Default	1.8% - 2.7% (2.7%)
Corporate debt - pooled trust	$	1,512	Discounted Cash Flow	Discount Rate	6.3% (6.8%)
preferred security				Cumulative Default %	2.8% - 41.7% (11.3%)
				Loss Given Default	85% - 100% (94.4%)
Mortgage servicing rights	$	7,096	Discounted Cash Flow	Discount Rate	9.0% - 18.0% (10.5%)
				Cost to Service	$50 - $110 ($61.12)
				Float Earnings Rate	0.25% (0.25%)

Asset-backed securities: Given the level of market activity for the asset backed securities in the portfolio, the discount rates utilized in the fair value measurement were derived by analyzing current market yields for comparable securities and research reports issued by brokers and dealers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases.

Other significant unobservable inputs to the fair value measurement of the asset backed securities in the portfolio included prospective defaults and recoveries.  The cumulative default percentage represents the lifetime defaults assumed. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the default percentages and the fair value measurement. When default percentages increase, the fair value decreases. 

Corporate debt: Given the level of market activity for the trust preferred securities in the form of collateralized debt obligations, the discount rate utilized in the fair value measurement were derived by analyzing current market yields for trust preferred securities

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of individual name issuers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases.

Other significant unobservable inputs to the fair value measurement of the collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral.  As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current.  The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When default percentages increase, the fair value decreases. 

Mortgage servicing rights: Given the low level of market activity in the MSR market and the general difficulty in price discovery, even when activity is at historic norms, the discount rate utilized in the fair value measurement was derived by analyzing recent and historical pricing for MSRs. Adjustments were then made for various loan and investor types underlying these MSRs. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases.

Other significant unobservable inputs to the fair value measurement of MSR’s include cost to service, an input that is not as simple as taking total costs and dividing by a number of loans. It is a figure informed by marginal cost and pricing for MSRs by competing firms, taking other assumptions into consideration. It is different for different loan types. There is an inverse correlation between the cost to service and the fair value measurement. When the cost assumption increase, the fair value decreases.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following tables detail the assets carried at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015.

	Total Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2016
Impaired loans	$	4,413	$	—	$	—	$	4,413
Other real estate owned	2,792		—		—		2,792
Total	$	7,205	$	—	$	—	$	7,205
December 31, 2015
Impaired loans	$	2,096	$	—	$	—	$	2,096
Other real estate owned	755		—		—		755
Total	$	2,851	$	—	$	—	$	2,851

The following is a description of the valuation methodologies used for certain assets that are recorded at fair value on a non-recurring basis.

Other Real Estate Owned: The Company classifies property acquired through foreclosure or acceptance of deed-in-lieu of foreclosure, as other real estate owned (“OREO”) in its financial statements. Upon foreclosure, the property securing the loan is recorded at fair value as determined by real estate appraisals less the estimated selling expense. Appraisals are based upon observable market data such as comparable sales within the real estate market. Assumptions are also made based on management’s judgment of the appraisals and current real estate market conditions and therefore these assets are classified as non-recurring Level 3 assets in the fair value hierarchy.

Impaired Loans: Accounting standards require that a creditor recognize the impairment of a loan if the present value of expected future cash flows discounted at the loan’s effective interest rate (or, alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the impaired loan. Non-recurring fair value adjustments to collateral dependent loans are recorded, when necessary, to reflect partial write-downs and the specific reserve allocations based

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upon observable market price or current appraised value of the collateral less selling costs and discounts based on management’s judgment of current conditions. Based on the significance of management’s judgment, the Company records collateral dependent impaired loans as non-recurring Level 3 fair value measurements.

Losses on assets recorded at fair value on a non-recurring basis are as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
Impaired loans	$	(573	)	$	(162	)	$	(1,040	)	$	(249	)
Other real estate owned	—			—			(4		)	(118		)
Total	$	(573	)	$	(162	)	$	(1,044	)	$	(367	)

Disclosures about Fair Value of Financial Instruments:

The following methods and assumptions were used by management to estimate the fair value of each class of financial instruments not recorded at fair value for which it is practicable to estimate that value.

Cash and Cash Equivalents: Carrying value is assumed to represent fair value for cash and due from banks and short-term investments, which have original maturities of 90 days or less.

Loans Receivable – net: The fair value of the net loan portfolio is determined by discounting the estimated future cash flows using the prevailing interest rates and appropriate credit and prepayment risk adjustments as of period-end at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of non-performing loans is estimated using the Bank’s prior credit experience.

FHLBB stock: FHLBB stock is a non-marketable equity security which is assumed to have a fair value equal to its carrying value due to the fact that it can only be redeemed by the FHLBB at par value.

Accrued Interest Receivable: Carrying value is assumed to represent fair value.

Deposits and Mortgagors’ and Investors’ Escrow Accounts: The fair value of demand, non-interest- bearing checking, savings and certain money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using rates offered for deposits of similar remaining maturities as of period-end.

FHLBB Advances and Other Borrowings: The fair value of borrowed funds is estimated by discounting the future cash flows using market rates for similar borrowings.

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As of September 30, 2016 and December 31, 2015, the carrying value and estimated fair values of the Company’s financial instruments are as described below:

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(In thousands)
September 30, 2016
Financial assets:
Cash and cash equivalents	$	214,246	$	214,246	$	—	$	—	$	214,246
Available-for-sale securities	1,052,439		3,296		900,806		148,337		1,052,439
Held-to-maturity securities	14,162		—		15,569		—		15,569
Loans held for sale	83,321		—		83,321		—		83,321
Loans receivable-net	4,689,834		—		—		4,719,683		4,719,683
FHLBB stock	52,847		—		—		52,847		52,847
Accrued interest receivable	17,888		—		—		17,888		17,888
Derivative assets	29,719		—		29,719		—		29,719
Mortgage servicing rights	7,096		—		—		7,096		7,096
Financial liabilities:
Deposits	4,695,471		—		—		4,703,203		4,703,203
Mortgagors’ and investors’ escrow accounts	9,045		—		—		9,045		9,045
FHLBB advances and other borrowings	1,102,882		—		1,101,421		—		1,101,421
Derivative liabilities	43,709		—		43,709		—		43,709
December 31, 2015
Financial assets:
Cash and cash equivalents	$	95,176	$	95,176	$	—	$	—	$	95,176
Available-for-sale securities	1,059,169		3,227		909,872		146,070		1,059,169
Held-to-maturity securities	14,565		—		15,683		—		15,683
Loans held for sale	10,136		—		10,136		—		10,136
Loans receivable-net	4,587,062		—		—		4,629,243		4,629,243
FHLBB stock	51,196		—		—		51,196		51,196
Accrued interest receivable	15,740		—		—		15,740		15,740
Derivative assets	12,910		—		12,910		—		12,910
Mortgage servicing rights	7,074		—		—		7,074		7,074
Financial liabilities:
Deposits	4,437,071		—		—		4,436,456		4,436,456
Mortgagors’ and investors’ escrow accounts	13,526		—		—		13,526		13,526
FHLBB advances and other borrowings	1,099,020		—		1,096,452		—		1,096,452
Derivative liabilities	16,675		—		16,675		—		16,675

Certain financial instruments and all nonfinancial investments are exempt from disclosure requirements. Accordingly, the aggregate fair value of amounts presented above may not necessarily represent the underlying fair value of the Company.

Note 13. Commitments and Contingencies

Financial Instruments With Off-Balance Sheet Risk

In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit through issuing standby letters of credit and undisbursed portions of construction loans and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized on the Consolidated Statements of Condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

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The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral obligations is deemed worthless. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at September 30, 2016 and December 31, 2015:

	September 30, 2016		December 31, 2015
	(In thousands)
Commitments to extend credit:
Commitment to grant loans	$	256,564	$	219,407
Undisbursed construction loans	99,148		103,140
Undisbursed home equity lines of credit	349,655		320,140
Undisbursed commercial lines of credit	343,939		302,700
Standby letters of credit	13,253		9,477
Unused credit card lines	11,232		6,725
Unused checking overdraft lines of credit	1,396		1,293
Total	$	1,075,187	$	962,882

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include residential and commercial property, accounts receivable, inventory, property, plant and equipment, deposits, and securities.

Other Commitments

The Company invests in partnerships, including low income housing tax credit, new markets housing tax credit, and alternative energy tax credit partnerships. The net carrying balance of these investments totaled $31.9 million at September 30, 2016 and is included in other assets in the consolidated statement of condition. At September 30, 2016, the Company was contractually committed under these limited partnership agreements to make additional capital contributions of $5.3 million, which constitutes our maximum potential obligation to these partnerships.

Legal Matters

The Company is involved in various legal proceedings that have arisen in the normal course of business. The Company is not involved in any legal proceedings deemed to be material as of September 30, 2016.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements contained in this document that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (referred to as the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (referred to as the Securities Exchange Act), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. These forward-looking statements are subject to significant risks, assumptions and uncertainties, including among other things, changes in general economic and business conditions, increased competitive pressures, changes in the interest rate environment, legislative and regulatory change, changes in the financial markets, and other risks and uncertainties disclosed from time to time in documents that United Financial Bancorp files with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and the Risk Factors in Item 1A of this report. Because of these and other uncertainties, United’s actual results, performance or achievements, or industry results, may be materially different from the results indicated by these forward-looking statements. In addition, United’s past results of operations do not necessarily indicate United’s combined future results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Except as required by applicable law or regulation,

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management undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD & A”) is intended to help the reader understand the Company’s operations and present business environment. Management believes accuracy, transparency and clarity are the primary goals of successful financial reporting. Management remains committed to transparency in the Company’s financial reporting, providing the Company’s stockholders with informative financial disclosures and presenting an accurate view of the Company’s financial disclosures, financial position and operating results.

The MD & A is provided as a supplement to—and should be read in conjunction with—the Unaudited Consolidated Financial Statements and the accompanying notes thereto contained in Part I, Item 1, of this report as well as the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The following sections are included in the MD & A:

• Business – a general description of the Company’s business, objectives and regulatory considerations.

• Critical Accounting Estimates – a discussion of accounting estimates that require critical judgments and estimates.

• Operating Results – an analysis of the Company’s consolidated results of operations for the periods presented in the Unaudited Consolidated Financial Statements.

• Comparison of Financial Liquidity and Capital Resources – an overview of financial condition and market interest rate risk.

Business

General

By assets, United Financial Bancorp, Inc. is the third largest publicly traded banking institution headquartered in Connecticut with consolidated assets of $6.54 billion and stockholders’ equity of $656.2 million at September 30, 2016.

The Company is a commercially-focused financial institution delivering financial services primarily to small- to mid-sized businesses and individuals throughout Connecticut and Massachusetts through 53 banking offices, commercial loan production offices, mortgage loan production offices, 63 ATMs, telephone banking, mobile banking, and online banking (www.bankatunited.com).

The Company’s vision is to pursue excellence in all things with respect to its customers, employees, shareholders and communities. This pursuit of excellence has helped the Company fulfill the financial needs of its customers while delivering an exceptional banking experience in the market areas that it has served since 1858. The structure of United Bank supports the vision with community banking teams in each market that provide traditional banking products and services to business organizations and individuals, including commercial business loans, commercial and residential real estate loans, consumer loans, financial advisory services and a variety of deposit products.

Our business philosophy is to remain a community-oriented franchise and continue to focus on organic growth supplemented through acquisitions and provide superior customer service to meet the financial needs of the communities in which we operate. The Company’s three year strategic plan includes:

• Continuing to expand commercial business, owner-occupied commercial real estate and consumer lending activities while meeting the Company’s designated risk adjusted return on capital levels;

• Decreasing the exposure to residential and investor non-owner occupied commercial real estate lending;

• Growing the Company’s low cost core deposit base;

• Increasing the non-interest income component of total revenues through development of banking-related fee income and the sale of insurance and investment products; and

• Remaining focused on improving operating efficiencies.

The Company’s results of operations depend primarily on net interest income, which is the difference between the income earned on its loan and securities portfolios and its cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by the Company’s provision for loan losses, gains and losses from sales of loans and securities, and non-interest income and expenses. Non-interest income primarily consists of fee income from depositors, mortgage servicing income, mortgage origination and loan sale income, loan swap fees and increases in cash surrender value of bank-owned life insurance (“BOLI”). Non-interest expenses consist principally of salaries and employee benefits, occupancy, service bureau fees, core deposit intangible amortization, marketing, professional fees, FDIC insurance assessments, and other operating expenses.

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Results of operations are also significantly affected by general economic and competitive conditions and changes in interest rates as well as government policies and actions of regulatory authorities. Future changes in applicable laws, regulations or government policies may materially affect the Company. Uncertainty and challenges surrounding future economic growth, consumer confidence, credit availability, competition and corporate earnings remains.

The Company’s common stock is traded on the NASDAQ Global Select Market^SM under the ticker symbol “UBNK”.

Our Objectives

The Company seeks to continually deliver superior value to its customers, stockholders, employees and communities through achievement of its core operating objectives which are to:

• Align our earning asset growth rate with organic capital and low cost core deposit generation to maintain strong capital and liquidity ratios;

• Re-mix cash flows into better yielding risk adjusted earning assets and reduce funding costs relative to our peer group. Transition from a thrift deposit base to a commercial bank deposit base with more DDA and low cost core deposits;

• Build high quality, profitable loan portfolios using primarily organic growth and also purchase strategies, while also continuing to maintain and improve efficiencies in our secondary mortgage banking business;

• Build and diversify revenue streams through development of banking-related fee income, in particular, through the expansion of our financial advisory services;

• Maintain expense discipline and improve operating efficiencies;

• Invest in people and technology to enhance superior customer service and products to grow revenues while maintaining an attractive cost structure;

• Grow operating revenue, maximize operating earnings and grow tangible book value; and

• Maintain a rigorous risk identification and management process.

Significant factors management reviews to evaluate achievement of the Company’s operating objectives and its operating results and financial condition include, but are not limited to: net income and earnings per share, return on tangible common equity and assets, net interest margin, non-interest income, operating expenses related to total average assets and efficiency ratio, asset quality, loan and deposit growth, capital management, liquidity and interest rate sensitivity levels, customer service standards, market share and peer comparisons.

Regulatory Considerations

The Company and its subsidiaries are subject to numerous examinations by federal and state banking regulators, as well as the Securities and Exchange Commission. Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for additional disclosures with respect to laws and regulations affecting the Company’s businesses.

Critical Accounting Estimates

The accounting policies followed by the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America and with general practices within the banking industry. Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. The Company bases its assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time the Consolidated Financial Statements are prepared. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that the financial statements are presented fairly and in accordance with GAAP.

Management believes that the most critical accounting policies, which involve the most complex subjective decisions or assessments, relate to the allowance for loan losses, other-than-temporary impairment of investment securities, derivative instruments and hedging activities, goodwill, and income taxes. Management has reviewed these critical accounting estimates and related disclosures with the Audit Committee of the Board of Directors. Additional accounting policies are more fully described in Note 1 in the “Notes to Consolidated Financial Statements” presented in our 2015 Annual Report on Form 10-K. A brief description of the Company’s current policies involving significant judgment follows:

Allowance for Loan Losses

The allowance for loan losses is established as embedded losses are estimated to have occurred through the provisions for losses charged against operations and is maintained at a level that management considers adequate to absorb losses in the loan

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portfolio. Management’s judgment in determining the adequacy of the allowance is inherently subjective and is based on past loan loss experience, known and inherent losses and size of the loan portfolios, an assessment of current economic and real estate market conditions, estimates of the current value of underlying collateral, review of regulatory authority examination reports and other relevant factors.

Management has determined the allowance for loan losses by portfolio segment, which consists of residential real estate for loans collateralized by owner-occupied residential real estate, home equity lines of credit, owner-occupied and investor commercial real estate, construction, commercial business, and other consumer loans. Management further segregates these portfolios between loans which are accounted for under the amortized cost method (referred to as “covered” loans) and loans acquired (referred to as “acquired” loans), as acquired loans were originally recorded at fair value, which included an estimate of credit losses, resulting in no carryover of the related allowance for loan losses. An allowance for loan losses on acquired loans is only established to the extent that there is deterioration in loan quality exceeding the original estimates of credit loss established upon acquisition.

Although management believes it uses appropriate available information to establish the allowance for loan losses, future additions to the allowance may be necessary if certain future events occur that cause actual results to differ from the assumptions used in making the evaluation.

Other-than-Temporary Impairment of Securities

The Company maintains a securities portfolio that is classified into two major categories: available for sale and held to maturity. Securities available-for-sale are recorded at estimated fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Held-to-maturity securities are recorded at amortized cost. Management determines the classifications of a security at the time of purchase.

Quarterly, securities with unrealized losses are reviewed as deemed appropriate to assess whether the decline in fair value is temporary or other-than-temporary. The assessment is to determine whether the decline in value is from company-specific events, industry developments, general economic conditions, credit losses on debt or other reasons. Declines in the fair value of available-for-sale securities or held to maturity securities below their cost or amortized cost that are deemed to be other-than-temporary are reflected in earnings for equity securities and for debt securities that have an identified credit loss. Unrealized losses on debt securities with no identified credit loss component are reflected in other comprehensive income.

Derivative Instruments and Hedging Activities

The Company uses derivatives to manage a variety of risks, including risks related to interest rates. Accounting for derivatives as hedges requires that, at inception and over the term of the arrangement, the hedged item and related derivative meet the requirements for hedge accounting. The rules and interpretations related to derivatives accounting are complex. Failure to apply this complex guidance correctly will result in the changes in the fair value of the derivative being reported in earnings.

The Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. The fair values of interest rate swaps are determined using the standard methodology of netting the discounted future fixed cash receipts (or payment) and the expected variable cash payments (or receipts). The variable cash payment (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rates curves.

At September 30, 2016, derivative assets and liabilities were $29.7 million and $43.7 million, respectively. Further information about our use of derivatives is provided in Note 7, “Derivatives and Hedging Activities” in Notes to Unaudited Consolidated Financial Statements in this report.

Goodwill

The Company is required to record certain assets and liabilities it has acquired in a business combination, including identifiable intangible assets such as core deposit intangibles, at fair value, which may involve making estimates based on third-party valuations, such as appraisals or internal valuations based on discounted cash flow analyses or other valuation techniques. The resulting goodwill is evaluated for impairment annually or whenever events or changes in circumstances indicate the carrying value of the goodwill may be impaired.

When goodwill is evaluated for impairment, qualitative factors considered include, but are not limited to, industry and market conditions, overall financial performance, and events affecting the reporting unit. If there are no qualitative factors that indicate goodwill may be impaired, the quantitative analysis is not required. For a quantitative analysis, if the carrying amount exceeds the implied fair value, an impairment charge is recorded to income. The fair value is based on observable market prices, when practicable. Other valuation techniques may be used when market prices are unavailable, including estimated discounted cash flows and market multiples analyses. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgment to estimate industry economic factors and the profitability of future business strategies. In the event of future changes in fair value, the Company may be exposed to an impairment charge that could be material.

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The carrying value of goodwill at September 30, 2016 was $115.3 million. For further discussion on goodwill see Note 5, “Goodwill and Core Deposit Intangibles” in Notes to Unaudited Consolidated Financial Statements in this report.

Income Taxes

The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.

Significant management judgment is required in determining income tax expense and deferred tax assets and liabilities. Some judgments are subjective and involve estimates and assumptions about matters that are inherently uncertain. In determining the valuation allowance, we use forecasted future operating results, based upon approved business plans, including a review of the eligible carry forward periods, tax planning opportunities and other relevant considerations. Management believes that the accounting estimate related to the valuation allowance is a critical accounting estimate because the underlying assumptions can change from period to period. For example, tax law changes or variances in future projected operating performance could result in a change in the valuation allowance.

The reserve for tax contingencies contains uncertainties because management is required to make assumptions and to apply judgment to estimate the exposures associated with our various tax positions. The effective income tax rate is also affected by changes in tax law, entry into new tax jurisdictions, the level of earnings and the results of tax audits.

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Operating Results

Non-GAAP Financial Measures

In addition to evaluating the Company’s results of operations in accordance with GAAP, management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures. These non-GAAP measures are intended to provide the reader with additional perspectives on operating results, financial condition, and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.

The following is a reconciliation of Non-GAAP financial measures by major category for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended   September 30, 2016						Nine Months Ended   September 30, 2016
	2016			2015			2016			2015
	(In thousands)
Net income (GAAP)	$	14,159		$	13,381		$	35,111		$	39,738
Adjustments:
Net interest income:
(Accretion)/amortization of loan mark	403			(2,787		)	144			(6,852		)
Accretion/(amortization) of deposit mark	359			841			1,077			2,765
Accretion/(amortization) of borrowings mark	427			464			1,315			1,419
Net adjustment to net interest income	(383		)	(4,092		)	(2,248		)	(11,036		)
Non-interest income:
Gain (loss) on sales of securities, net	(48		)	59			(1,867		)	(639		)
BOLI death claim benefit	(70		)	—			(70		)	—
Net adjustment to non-interest income	(118		)	59			(1,937		)	(639		)
Non-interest expense:
Merger and acquisition expense	—			—			—			—
Core deposit intangible amortization expense	(385		)	(433		)	(1,219		)	(1,363		)
Amortization of fixed assets fair value mark	(7		)	(6		)	(23		)	(16		)
Effect of position eliminations	(55		)	—			(1,458		)	—
FHLBB prepayment penalties	—			—			(1,454		)	—
Effect of branch lease termination agreement	—			195			—			195
Net adjustment to non-interest expense	(447		)	(244		)	(4,154		)	(1,184		)
Total adjustments	(54		)	(3,789		)	(31		)	(10,491		)
Income tax expense adjustment	19			1,326			12			3,674
Operating net income (Non-GAAP)	$	14,124		$	10,918		$	35,092		$	32,921

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The following table is a reconciliation of Non-GAAP financial measures for select average balances, interest income and expense, and average yields and cost for the periods indicated:

	Three Months Ended September 30, 2016
	GAAP						Mark to Market								Operating
	Average Balance		Interest and Dividends		Yield/Cost		Average Balance			Interest and Dividends			Yield/Cost		Average Balance		Interest and Dividends		Yield/Cost
	(In thousands)
Total loans	$	4,809,588	$	45,867	3.80	%	$	3,598		$	(403	)	(0.04	)%	$	4,805,990	$	46,270	3.84	%
Total interest-earning assets	5,984,951		55,057		3.67		3,598			(403		)	(0.03	)	5,981,353		55,460		3.70
Time deposits	1,821,061		4,701		1.03		1,385			(359		)	(0.08	)	1,819,676		5,060		1.11
Federal Home Loan Bank advances	1,085,932		2,657		0.97		2,362			(445		)	(0.17	)	1,083,570		3,102		1.14
Other borrowings	119,902		1,371		4.55		(1,735		)	18			0.12		121,637		1,353		4.43
Total interest-bearing liabilities	5,039,492		10,307		0.81		2,012			(786		)	(0.07	)	5,037,480		11,093		0.88
Tax-equivalent net interest margin					2.98	%													2.96	%

	Nine Months Ended September 30, 2016
	GAAP						Mark to Market								Operating
	Average Balance		Interest and Dividends		Yield/Cost		Average Balance			Interest and Dividends			Yield/Cost		Average Balance		Interest and Dividends		Yield/Cost
	(In thousands)
Total loans	$	4,720,379	$	135,941	3.84	%	$	1,420		$	(144	)	(0.01	)%	$	4,718,959	$	136,085	3.85	%
Total interest-earning assets	5,907,693		163,540		3.69		1,420			(144		)	(0.01	)	5,906,273		163,684		3.70
Time deposits	1,784,269		13,748		1.03		1,750			(1,076		)	(0.08	)	1,782,519		14,824		1.11
Federal Home Loan Bank advances	1,009,671		7,507		0.99		2,825			(1,364		)	(0.19	)	1,006,846		8,871		1.18
Other borrowings	130,586		4,170		4.27		(1,751		)	48			0.11		132,337		4,122		4.16
Total interest-bearing liabilities	4,985,578		30,604		0.82		2,824			(2,392		)	(0.06	)	4,982,754		32,996		0.88
Tax-equivalent net interest margin					3.00	%													2.95	%

Executive Overview

Net income of $14.2 million, or $0.28 per diluted share, was recorded for the three months ended September 30, 2016, compared to net income of $13.4 million, or $0.27 per diluted share, for the same period in 2015. Adjusted operating net income for the third quarter of 2016 was $14.1 million (Non-GAAP), adjusted primarily for $383,000 net impact of the amortization and accretion of the fair value adjustments on acquired loans, deposits, and borrowings as a result of the merger and $447,000 of reorganization and merger related non-interest expenses. Adjusted operating net income for the third quarter of 2015 was $10.9 million (Non-GAAP), and was adjusted primarily for $4.1 million net impact of the amortization and accretion of the fair value adjustments on loans, deposits, and borrowings as a result of the merger and $244,000 of merger-related non-interest expenses.

Net income for the nine months ended September 30, 2016 was $35.1 million, or $0.70 per diluted share, compared to $39.7 million, or $0.81 per diluted share, for the same period in 2015. Adjusted operating net income for the nine months ended September 30, 2016 was $35.1 million (Non-GAAP), adjusted primarily for $4.2 million of FHLBB prepayment penalties, reorganization expenses and merger-related non-interest expenses, $2.2 million net impact of the amortization and accretion of the fair value adjustments on acquired loans, deposits and borrowings as a result of the Merger and $1.9 million net gains on sales of securities and BOLI death benefit gains. Adjusted operating net income for the nine months ended September 30, 2015 was $32.9 million

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(Non-GAAP), adjusted for $1.2 million of merger-related non-interest expenses, $11.0 million net impact of the amortization and accretion of the fair value adjustments on acquired loans, deposits, and borrowings as a result of the merger and $639,000 net gains on sales of securities. The Company is presenting adjusted operating net income as management believes it gives a more in-depth picture of the results for the period and will benefit investors in their understanding of the Company. For the three and nine months ended September 30, 2016 and 2015 adjustments to adjusted operating net income are on made a pre-tax basis.

Net interest income increased$1.4 million and $4.0 million for the three and nine months ended September 30, 2016, respectively, compared to the same periods in 2015 due to balance sheet growth which was mostly comprised of strong loan originations and, to a lesser extent, loan portfolio purchases. The Company intends to increase the level of owner-occupied commercial real estate while decreasing the level of investor commercial real estate to generate more favorable risk-adjusted returns and protect the net interest margin in a flat interest rate environment. Total interest and dividend income increased$3.7 million and $11.9 million for the three and nine months ended September 30, 2016, respectively, compared to the same periods in 2015. These increases were partially offset by increases in interest expense of $2.3 million and $7.9 million compared to the same periods in 2015. The Company’s tax-equivalent net interest margin for the three and nine months ended September 30, 2016 was 2.98% and 3.00%, a decrease of 22 and 28 basis points, respectively, over the same period in 2015. Excluding the $383,000 and $2.2 million negative impact of the amortization and accretion of the fair value adjustments on loans, deposits and borrowings as a result of the Merger, the operating net interest margin for the three and nine months ended September 30, 2016 was 2.96% and 2.95%, respectively. The general year-over-year trends impacting the margin include decreased yields on loans due to the low interest rate environment and the reduced benefit of purchase accounting accretion.

Non-interest income increased$71,000 to $7.9 million for the three months ended September 30, 2016 compared to $7.8 million for the same period in 2015. The increase primarily due to the Company recording lower impairment charges on its partnership investments, other income and gains on sales of securities compared to last year. Non-interest income decreased$2.9 million to $21.1 million for the nine months ended September 30, 2016 compared to $24.0 million for the same period in 2015. Income from mortgage banking activities decreased$2.2 million inclusive of gains on sale of loans for the nine months ended September 30, 2016, compared to the same period in 2015.

Non-interest expense increased$360,000 and $7.8 million for the three and nine months ended September 30, 2016 compared to the same periods in 2015. The largest increases in non-interest expense for the nine month period were in FHLBB prepayment penalties and salaries and employee benefits. FHLBB prepayment penalties increased as a result of the first quarter 2016 investment portfolio optimization strategy which allowed the Company to pay off higher costing FHLBB advances. The increase in salaries and benefits is due to severance payments of $1.4 million resulting from an organizational realignment to improve operational efficiency and additional managerial staff in areas targeted for growth. These changes will result in approximately $3.0 million of pre-tax cost savings annually from the budgeted full year 2016 run rate. The increases in FHLBB prepayment penalties and salaries and employee benefits were partially offset by a decrease in professional fees due to the engagement of consulting services to assist in realignment of the Company’s information technology infrastructure.

The asset quality of our loan portfolio has remained strong. At September 30, 2016 and December 31, 2015, the allowance for loan losses to total loans ratio was 0.87% and 0.73%, and the allowance for loan losses to non-performing loans ratio was 123.26% and 89.64%, respectively. The ratio of non-performing loans to total loans was 0.71% and 0.82% at September 30, 2016 and December 31, 2015. Acquired loans are recorded at fair value with no carryover of the allowance for loan losses. A provision for loan losses of $3.8 million and $10.1 million was recorded for the three and nine months ended September 30, 2016, compared to $3.3 million and $9.2 million for the same prior year periods, reflecting growth in our covered loan portfolio, the ongoing assessment of asset quality measures including the estimated exposure on impaired loans and organic loan growth.

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The following table presents selected financial data and ratios:

Selected Financial Data	At or For the Three Months   Ended September 30,						At or For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(Dollars in thousands, except share data)
Share Data:
Basic net income per share	$	0.28		$	0.27		$	0.71		$	0.81
Diluted net income per share	0.28			0.27			0.70			0.81
Dividends declared per share	0.12			0.12			0.36			0.34
Key Statistics:
Total revenue	$	50,918		$	49,461		$	149,075		$	147,913
Total expense	32,236			31,876			100,680			92,890
Key Ratios (annualized):
Return on average assets	0.88		%	0.93		%	0.74		%	0.95		%
Return on average equity	8.80		%	8.68		%	7.37		%	8.67		%
Tax-equivalent net interest margin	2.98		%	3.20		%	3.00		%	3.28		%
Non-interest expense to average assets	2.00		%	2.22		%	2.11		%	2.21		%
Cost of interest-bearing deposits	0.65		%	0.58		%	0.66		%	0.59		%
Non-performing Assets:
Total non-accrual loans, excluding troubled debt restructures	$	25,983		$	32,240		$	25,983		$	32,240
Troubled debt restructures - non-accruing	7,345			4,605			7,345			4,605
Total non-performing loans	33,328			36,845			33,328			36,845
Other real estate owned	2,792			258			2,792			258
Total non-performing assets	$	36,120		$	37,103		$	36,120		$	37,103
Asset Quality Ratios:
Non-performing loans to total loans	0.71		%	0.88		%	0.71		%	0.88		%
Non-performing assets to total assets	0.55		%	0.63		%	0.55		%	0.63		%
Allowance for loan losses to non-performing loans	123.26		%	83.68		%	123.26		%	83.68		%
Allowance for loan losses to total loans	0.87		%	0.73		%	0.87		%	0.73		%
Non-GAAP Ratio:
Efficiency ratio (1)	59.50		%	60.82		%	62.03		%	59.64		%

(1) The efficiency ratio represents the ratio of non-interest expense before other real estate owned expense and amortization of intangibles, as a percent of net interest income (fully taxable equivalent) and non-interest income, excluding gains from securities transactions, losses on partnerships and other nonrecurring items.

Average Balances, Interest, Average Yields\Cost and Rate\Volume Analysis

The tables below sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. A tax-equivalent yield adjustment was made for the three and nine months ended September 30, 2016 and 2015. All average balances are daily average balances. Loans held for sale and non-accrual loans are included in the computation of interest-earning average balances, with non-accrual loans carrying a zero yield. The yields set forth above include the effect of deferred costs, discounts and premiums that are amortized or accreted to interest income or expense.

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Average Balance Sheets for the Three Months Ended September 30, 2016 and 2015:

	Three Months Ended September 30,
	2016							2015
	Average Balance			Interest and Dividends		Annualized Yield/Cost		Average Balance			Interest and Dividends		Annualized Yield/Cost
	(Dollars in thousands)
Interest-earning assets:
Residential real estate loans	$	1,229,384		$	10,205	3.32	%	$	1,205,060		$	10,221	3.39	%
Commercial real estate loans	2,077,585			20,952		4.01		1,816,122			18,833		4.11
Construction loans	156,217			1,447		3.68		173,355			1,952		4.47
Commercial business loans	669,595			6,348		3.77		612,857			8,112		5.25
Home equity loans	467,552			4,388		3.75		334,302			2,710		3.24
Other consumer loans	209,255			2,527		4.83		4,265			50		4.67
Total loans (1)	4,809,588			45,867		3.80		4,145,961			41,878		4.01
Securities	1,129,133			9,123		3.23		1,123,005			8,843		3.15
Other earning assets	46,230			67		0.58		63,740			52		0.33
Total interest-earning assets	5,984,951			55,057		3.67		5,332,706			50,773		3.79
Allowance for loan losses	(38,916		)					(29,901		)
Non-interest-earning assets	491,061							449,363
Total assets	$	6,437,096						$	5,752,168
Interest-bearing liabilities:
NOW and money market accounts	$	1,485,372		1,501		0.40		$	1,500,449		1,874		0.50
Saving deposits (2)	527,225			77		0.06		527,430			82		0.06
Time deposits	1,821,061			4,701		1.03		1,591,618			3,363		0.84
Total interest-bearing deposits	3,833,658			6,279		0.65		3,619,497			5,319		0.58
Advances from the Federal Home Loan Bank	1,085,932			2,657		0.97		695,208			1,276		0.73
Other borrowings	119,902			1,371		4.55		146,936			1,387		3.75
Total interest-bearing liabilities	5,039,492			10,307		0.81	%	4,461,641			7,982		0.71	%
Non-interest-bearing deposits	662,243							610,253
Other liabilities	92,095							63,620
Total liabilities	5,793,830							5,135,514
Stockholders’ equity	643,266							616,654
Total liabilities and stockholders’ equity	$	6,437,096						$	5,752,168
Net interest-earning assets (3)	$	945,459						$	871,065
Tax-equivalent net interest income				44,750							42,791
Tax-equivalent net interest rate spread (4)						2.86	%						3.08	%
Tax-equivalent net interest margin (5)						2.98	%						3.20	%
Average interest-earning assets to average interest-bearing liabilities						118.76	%						119.52	%
Less tax-equivalent adjustment				1,721							1,148
Net interest income				$	43,029						$	41,643

(1) Total loans includes loans held for sale and nonperforming loans.

(2) Includes mortgagors’ and investors’ escrow accounts.

(3) Tax-equivalent net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest rate spread represents the difference between yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.

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Average Balance Sheets for the Nine Months Ended September 30, 2016 and 2015:

	Nine Months Ended September 30,
	2016							2015
	Average Balance			Interest and Dividends		Annualized Yield/Cost		Average Balance			Interest and Dividends		Annualized Yield/Cost
	(Dollars in thousands)
Interest-earning assets:
Residential real estate loans	$	1,211,995		$	30,482	3.35	%	$	1,158,506		$	29,978	3.45	%
Commercial real estate loans	2,039,087			62,492		4.09		1,713,690			57,437		4.48
Construction loans	164,039			4,964		4.04		169,754			6,150		4.84
Commercial business loans	638,086			18,180		3.81		616,395			21,986		4.77
Home equity loans	448,371			11,681		3.47		333,830			7,974		3.18
Other consumer loans	218,801			8,142		4.96		5,233			133		3.38
Total loans (1)	4,720,379			135,941		3.84		3,997,408			123,658		4.13
Securities	1,138,559			27,392		3.21		1,126,343			26,363		3.12
Other earning assets	48,755			207		0.57		54,234			119		0.29
Total interest-earning assets	5,907,693			163,540		3.69		5,177,985			150,140		3.87
Allowance for loan losses	(37,091		)					(27,308		)
Non-interest-earning assets	479,815							452,094
Total assets	$	6,350,417						$	5,602,771
Interest-bearing liabilities:
NOW and money market accounts	$	1,533,133		4,950		0.43		$	1,449,105		5,357		0.49
Saving deposits (2)	527,919			229		0.06		533,851			248		0.06
Time deposits	1,784,269			13,748		1.03		1,563,821			10,038		0.86
Total interest-bearing deposits	3,845,321			18,927		0.66		3,546,777			15,643		0.59
Advances from the Federal Home Loan Bank	1,009,671			7,507		0.99		619,906			2,944		0.63
Other borrowings	130,586			4,170		4.27		161,894			4,155		3.43
Total interest-bearing liabilities	4,985,578			30,604		0.82	%	4,328,577			22,742		0.70	%
Non-interest-bearing deposits	646,379							594,204
Other liabilities	83,529							68,551
Total liabilities	5,715,486							4,991,332
Stockholders’ equity	634,931							611,439
Total liabilities and stockholders’ equity	$	6,350,417						$	5,602,771
Net interest-earning assets (2)	$	922,115						$	849,408
Tax-equivalent net interest income				132,936							127,398
Tax-equivalent net interest rate spread (3)						2.87	%						3.17	%
Tax-equivalent net interest margin (4)						3.00	%						3.28	%
Average interest-earning assets to average interest-bearing liabilities						118.50	%						119.62	%
Less tax-equivalent adjustment				5,009							3,509
Net interest income				$	127,927						$	123,889

(1) Total loans includes loans held for sale and nonperforming loans.

(2) Includes mortgagors’ and investors’ escrow accounts.

(3) Tax-equivalent net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest rate spread represents the difference between yield on average interest-earning assets and the cost of average interest-bearing liabilities.

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(5) Tax-equivalent net interest rate margin represents tax-equivalent net interest income divided by average interest-earning assets.

Rate\Volume Analysis

The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionately based on the changes due to rate and the changes due to volume.

	Three Months Ended September 30, 2016 Compared to September 30, 2015									Nine Months Ended September 30, 2016 compared to September 30, 2015
	Increase (Decrease) Due to									Increase (Decrease) Due to
	Volume			Rate			Net			Volume			Rate			Net
	(In thousands)
Interest and dividend income:
Loans receivable	$	7,052		$	(3,063	)	$	3,989		$	23,016		$	(10,733	)	$	12,283
Securities (1)	48			232			280			288			741			1,029
Other earning assets	(17		)	32			15			(13		)	101			88
Total earning assets	7,083			(2,799		)	4,284			23,291			(9,891		)	13,400
Interest expense:
NOW and money market accounts	(19		)	(354		)	(373		)	298			(705		)	(407		)
Savings accounts	—			(5		)	(5		)	(3		)	(16		)	(19		)
Time deposits	527			811			1,338			1,532			2,178			3,710
Total interest-bearing deposits	508			452			960			1,827			1,457			3,284
FHLBB advances	866			515			1,381			2,402			2,161			4,563
Other borrowings	(280		)	264			(16		)	(890		)	905			15
Total interest-bearing liabilities	1,094			1,231			2,325			3,339			4,523			7,862
Change in tax-equivalent net interest income	$	5,989		$	(4,030	)	$	1,959		$	19,952		$	(14,414	)	$	5,538

(1) Includes FHLBB stock

Comparison of Operating Results for the Three and Nine Months Ended September 30, 2016 and 2015

The following discussion provides a summary and comparison of the Company’s operating results for the three and nine months ended September 30, 2016 and 2015.

Net Interest Income

Net interest income is the amount that interest and fees on earning assets (loans and investments) exceeds the cost of funds, interest paid to the Company’s depositors and interest on external borrowings. Net interest margin is the difference between the income on earning assets and the cost of interest-bearing funds as a percentage of average earning assets. Growth in net interest income has resulted from growth in interest-earning assets and liabilities, primarily reflecting organic loan growth and portfolio purchases.

For the three months ended September 30, 2016, tax-equivalent net interest income increased$2.0 million from the comparative 2015 period. This was mainly due to the significant increase in average earning assets of $652.2 million and an increase of $577.9 million in interest-bearing liabilities due to loan growth which was primarily funded by borrowings and deposits. The increase in interest and dividends of $4.3 million was partially offset by the increase in interest expense of $2.3 million. The net interest margin decreased22 basis points, the yield on average earnings assets decreased12 basis points and the cost of interest-bearing liabilities increased10 basis points from the same period in 2015.

For the nine months ended September 30, 2016, tax-equivalent net interest income increased$5.5 million from the comparative 2015 period. This was mainly due to the significant increase in average earning assets of $729.7 million and an increase of $657.0 million in interest-bearing liabilities due to loan growth which was primarily funded by borrowings and deposits. In addition, there

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was a benefit of $2.2 million recognized during the nine months ended September 30, 2016 in net interest income related to fair value adjustments as a result of purchase accounting adjustments compared to $11.0 million for the same period in 2015. The increase in interest and dividends of $13.4 million was partially offset by the increase in interest expense of $7.9 million. The net interest margin decreased28 basis points, the yield on average earnings assets decreased18 basis points and the cost of interest-bearing liabilities increased12 basis points from the same period in 2015.

Excluding the benefit of the purchase accounting adjustments, the net interest margin and the yield on average earning assets would have increased seven basis points and 12 basis points, respectively, and the cost of interest of interest-bearing liabilities would have increased five basis points compared to the three months ended September 30, 2015. Excluding the benefit of the purchase accounting adjustments, the net interest margin and the yield on average earning assets would have declined four basis points and increased one basis point, respectively, and the cost of interest of interest-bearing liabilities would have increased five basis points compared to the nine months ended September 30, 2015.

Primarily reflecting loan growth and portfolio purchases, the average balance of total loans for the three and nine months ended September 30, 2016 was $4.81 billion and $4.72 billion, and had an average yield of 3.80% and 3.84%, respectively. On an adjusted operating basis, the average yield on total loans was 3.84% and 3.85% for the three and nine months ended September 30, 2016. The largest increases in the average balances for loans were recorded in commercial real estate loans and other consumer loans. For the three and nine months ended September 30, 2016, the average balance of commercial real estate loans totaled $2.08 billion and $2.04 billion, an increase of $261.5 million and $325.4 million from the prior year periods, respectively. For the three and nine months ended September 30, 2016, the average balance of other consumer loans totaled $209.3 million and $218.8 million, an increase of $205.0 million and $213.6 million, respectively, from the prior year period primarily reflecting portfolio purchases that occurred late in the fourth quarter of 2015 and the first nine months of 2016.

The average balance of investment securities increased$6.1 million and $12.2 million, respectively, and the average yield earned on these securities increased eight and nine basis points, respectively, for the three and nine months ended September 30, 2016, compared to the same periods in 2015. The increase is largely reflective of continued maintenance of the Company’s barbell management strategy coupled with higher market values given lower rates. Bond purchases have focused on reinvesting some runoff cash flows, managing overall investment portfolio duration and maintaining diversification to the portfolio holdings of corporate, collateralized loan obligations and municipal sleeves.

For the three and nine months ended September 30, 2016 compared to the same periods in 2015, the average balance of total interest-bearing deposits increased$214.2 million and $298.5 million, respectively, while the average cost increasedseven basis for both periods, respectively. FHLBB advances increased$390.7 million and $389.8 million while the average cost increased24 basis points and 36 basis points, respectively. Average other borrowings decreased$27.0 million and $31.3 million while the average cost increased80 basis points and 84 basis points. These changes were primarily due to short-term interest rates being elevated in the quarter, growth in time deposits and the Company’s continued focus to grow low cost deposits. Additionally, the increase in FHLBB advances was to fund new loan growth and loan portfolio purchases.

Net interest income is affected by changes in interest rates, loan and deposit pricing strategies, competitive conditions, the volume and mix of interest-earning assets and interest-bearing liabilities as well as the level of non-performing assets. The Company manages the risk of changes in interest rates on its net interest income through an Asset/Liability Management Committee and through related interest rate risk monitoring and management policies.

Provision for Loan Losses

The provision for loan losses is a charge to earnings in an amount sufficient to maintain the allowance for loan losses (“ALL”) at a level deemed adequate by the Company. The level of the allowance is a critical accounting estimate, which is subject to uncertainty. Acquired loans are recorded at fair value at the time of acquisition, with no carryover of the allowance for loan losses, and included adjustments for market interest rates and expected credit losses. Included within the ALL at September 30, 2016 are reserves for acquired loans in accordance with Bank policies and confirmation of expected losses.

Management evaluates the adequacy of the allowance for loan losses on a quarterly basis. The adequacy of the loan loss allowance is based on such interrelated factors as the composition of the loan portfolio and its inherent risk characteristics, the level of non-performing loans and charge-offs, both current and historic, local economic and credit conditions, the direction of real estate values, and regulatory guidelines. The provision is charged against earnings in order to maintain an allowance for loan losses that reflects management’s best estimate of probable losses inherent in the loan portfolio at the balance sheet date.

Management recorded a provision for loan losses of $3.8 million and $10.1 million for the three and nine months ended September 30, 2016 compared to $3.3 million and $9.2 million for the same periods of 2015, respectively. The primary factors that influenced management’s decision to record these provisions were organic growth during the period, migration to covered loans, the on-going assessment of estimated exposure on impaired loans, level of delinquencies, and general economic conditions. Impaired loans totaled $52.1 million at September 30, 2016 compared to $56.3 million at December 31, 2015, a decrease of $4.2

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million, or 7.5%, reflecting a decrease in investor CRE nonaccrual loans of $4.8 million and a decrease in commercial business nonaccrual loans of $1.9 million. These decreases were partially offset by an increase in total troubled debt restructured (“TDR”) loans of $1.7 million. At September 30, 2016, the allowance for loan losses totaled $41.1 million, representing 0.87% of total loans and 123.26% of non-performing loans compared to an allowance for loan losses of $33.9 million, which represented 0.73% of total loans and 89.64% of non-performing loans as of December 31, 2015. As loans move from those covered by purchase accounting into the covered portfolio, the ALL is anticipated to increase as a percentage of total loans. There is no carryover of the allowance for loan losses on acquired loans. The repayment of impaired loans is largely dependent upon the sale and value of collateral that may be impacted by current real estate conditions.

Non-interest Income

Total non-interest income was $7.9 million and $21.1 million for the three and nine months ended September 30, 2016, with non-interest income representing 15.5% and 14.2% of total revenues, respectively. The following is a summary of non-interest income by major category for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months Ended September 30,											For the Nine Months Ended September 30,
	2016			2015			$ Change			% Change		2016			2015			$ Change			% Change
	(Dollars in thousands)
Service charges and fees	$	5,726		$	5,960		$	(234	)	(3.9	)%	$	14,679		$	15,434		$	(755	)	(4.9	)%
Gain (loss) on sale of securities, net	48			(59		)	107			(181.4	)	1,867			639			1,228			192.2
Income from mortgage banking activities	2,198			2,257			(59		)	(2.6	)	5,389			7,618			(2,229		)	(29.3	)
Bank-owned life insurance income	899			893			6			0.7		2,531			2,557			(26		)	(1.0	)
Net loss on limited partnership investments	(850		)	(991		)	141			(14.2	)	(3,290		)	(2,337		)	(953		)	40.8
Other income (loss)	(132		)	(242		)	110			(45.5	)	(28		)	113			(141		)	124.8
Total non-interest income	$	7,889		$	7,818		$	71		0.9	%	$	21,148		$	24,024		$	(2,876	)	(12.0	)%

Service Charges and Fees: Service charges and fees were $5.7 million and $14.7 million for the three and nine months ended September 30, 2016,decreases of $234,000 and $755,000 from the comparable 2015 periods. The most significant decreases were recorded in loan swap fee income, partially offset by increases in (a) revenue generated by the Company’s investment advisory subsidiary, United Northeast Financial Advisors, Inc. (“UNFA”) and (b) deposit and service charges for various accounts.

The decreasesin loan swap fee income were a direct result of lower transactional volumes. Loan swap fee income is generated as part of the Company’s loan level hedge program that is offered to certain commercial banking customers to facilitate their respective risk management strategies. However, we do not anticipate that the loan level hedge program will be as meaningful a contributor to non-interest income in 2016 as it was in 2015. The increased revenue generated by UNFA is due to several factors. The Company has successfully acquired proven talent with deep local relationships as well as installing Series 6 representatives in select branches which work alongside our retail employees to ensure a cohesive sales approach to meeting the financial needs of our customers. Additionally, the Company has shifted focus to assets under management (AUM) for ongoing revenue versus a transactional approach; the result should be more recurring fee revenue driven by increasing AUM versus one-time fees generated by transactions. The deposit fee increases are related to a project undertaken by the Company focused on increasing profitability by implementing a deposit fee structure that is more in line with our competition based on a detailed study. As a result, starting with July 2016, the Company recorded revenue increases in those areas of service charges and fees targeted by the project.

Gains on Sales of Securities, Net: For the three and nine months ended September 30, 2016, the Company recorded $48,000 and $1.9 million in net gains on security sales compared to a $59,000 net loss and $639,000 in net gains in the prior year, respectively.

The Company recorded a minimal gain of $48,000 in the three months ended September 30, 2016 primarily due to odd lot cleanup sales targeted at making the portfolio more efficient to manage from an operational perspective and the sale of certain municipal securities. The gains recorded in the nine months ended September 30, 2016 are a result of an optimization strategy of our investment portfolio in which we took advantage of the shape of the yield curve, selling shorter-term securities, reducing concentration in oil dependent securities and adding longer duration investments in the portfolio to optimize income as well as reducing higher-cost borrowings and improving portfolio efficiency. The Company incurred $1.5 million in prepayment penalty expense from the extinguishment of FHLBB debt as part of the optimization strategy which is recorded as a separate line item in non-interest expense.

Income From Mortgage Banking Activities: The Company recorded decreases of $59,000 and $2.2 million in income from mortgage banking activities for the three and nine months ended September 30, 2016, compared to the same periods in 2015.

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The decrease for the three months ended September 30, 2016 was primarily driven by losses on derivative loan commitments and mortgage pair off fees/costs due to market conditions. These decreases were partially offset by increases in the fair value recognized in net income for mortgage servicing rights due to an increase on long-term rates, and the increase in value of forward loan sales contracts due to market interest rate changes.

The decrease for the nine months ended September 30, 2016 was primarily due to mortgage pair off fees/costs, a decrease in the fair value recognized in net income for mortgage serving rights due to a decline on long-term interest rates and losses on forward loan sales contracts driven by interest rate changes. Those decreases were partially offset by an increase on loan servicing income driven by gains from greater number of serviced loans.

BOLI Income: For the three and nine months ended September 30, 2016, the Company recorded BOLI income of $899,000 and $2.5 million compared to $893,000 and $2.6 million in the same periods in 2015, an increase of $6,000 and a decrease of $26,000, respectively. The results for both the three and nine months ending September 30, 2016 are mainly due to changes in the average yield earned on the BOLI policies as a result of current market interest rates. Additionally, both periods benefited from the receipt of a death benefit settlement for $70,000 related to the passing of a former director.

Net loss on limited partnership investments: The Company has investments in low income housing tax credit, new markets housing tax credit and alternative energy tax credit partnerships. In March 2016, the Company invested an additional $12.7 million in an alternative energy tax credit partnerships.

For the three and nine months ended September 30, 2016, the Company recorded net losses of $850,000 and $3.3 million on limited partnership investments, compared to net losses of $991,000 and $2.3 million for corresponding periods. In conjunction with the losses realized on the tax credit partnerships, the Company recorded an offsetting benefit of $2.6 million and $7.9 million as reflected in the tax provision for the three and nine months ended September 30, 2016.

Other Income: The Company recorded an increase in other income of $110,000 for the three months ended September 30, 2016 compared to the prior year period.

For the three months ended September 30, 2016 the $110,000 increase in other income was primarily due to an increase in the credit value adjustments on borrower facing loan level hedges, partially offset by a loss recorded on sale of a bank owned branch property.

The Company recorded a decrease in other income of $141,000 for the nine months ended September 30, 2016 as compared to the prior year period. The decrease is mainly due to a decline in the credit value adjustment on borrower facing loan level hedges.

Non-interest Expense

Non-interest expense increased$360,000 to $32.2 million for the three months ended September 30, 2016 and $7.8 million to $100.7 million for the nine months ended September 30, 2016.

For the three months ended September 30, 2016 and 2015, annualized non-interest expense represented 2.00% and 2.22% of average assets, while annualized non-interest expense represented 2.11% and 2.21% of average assets for the nine months ended September 30, 2016 and 2015, respectively. The following table summarizes non-interest expense for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	2016		2015		$ Change			% Change		2016		2015		$ Change			% Change
	(Dollars in thousands)
Salaries and employee benefits	$	18,301	$	16,994	$	1,307		7.7	%	$	56,105	$	50,161	$	5,944		11.8	%
Service bureau fees	1,960		1,828		132			7.2		6,219		5,114		1,105			21.6
Occupancy and equipment	3,580		3,343		237			7.1		11,330		11,600		(270		)	(2.3	)
Professional fees	1,125		1,581		(456		)	(28.8	)	2,893		3,280		(387		)	(11.8	)
Marketing and promotions	656		587		69			11.8		2,271		1,843		428			23.2
FDIC insurance assessments	819		750		69			9.2		2,800		2,651		149			5.6
Core deposit intangible amortization	385		433		(48		)	(11.1	)	1,219		1,363		(144		)	(10.6	)
FHLBB prepayment penalties	—		—		—			—		1,454		—		1,454			100.0
Other	5,410		6,360		(950		)	(14.9	)	16,389		16,878		(489		)	(2.9	)
Total non-interest expense	$	32,236	$	31,876	$	360		1.1	%	$	100,680	$	92,890	$	7,790		8.4	%

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Salaries and Employee Benefits: Salaries and employee benefits was $18.3 million for the three months ended September 30, 2016, an increase of $1.3 million from the comparable 2015 period. Salaries and employee benefits was $56.1 million for the nine months ended September 30, 2016, an increase of $5.9 million from the comparable 2015 period.

For the three months ended September 30, 2016, the increase in salaries and benefits was driven by (a) an increase in salaries driven by additional managerial staff in areas targeted for growth (b) an increase in temporary help to maintain compensation flexibility while responding to growth requirements and (c) an increase in restricted stock expense related to the implementation of a new shareholder approved restricted stock plan. These increases were partially offset by increases in deferred expenses from originating loans.

For the nine months ended September 30, 2016, the increase in salaries and benefits of $5.9 million was attributable to the same items discussed above in the three month period as well as to (a) an increase in salaries due to severance payments of $1.4 million resulting from an organizational realignment to improve operational efficiency and (b) an increase in FICA related to higher salary expenses. These increases were also partially offset by increases in deferred expenses from loan originations and a decrease in bonuses.

Service Bureau Fees: Service bureau fees increased $132,000 for the three months ended September 30, 2016, and $1.1 million for the nine months ended September 30, 2016, compared to the same periods in 2015. The increases for both the three and nine months were largely driven by the expiration of a service credit from the Company’s core operating system provider, increased expenses from that service provider, and implementation of Europay, MasterCard and Visa (“EMV”) chip-enabled credit cards to mitigate potential fraud exposure to the Company’s credit and debit card users.

Occupancy and Equipment: For the three months ended September 30, 2016, the Company recorded $3.6 million in occupancy and equipment expense, an increase of $237,000 from the prior year period primarily due to fees incurred for the outsourcing of property management services, an increase in property taxes and amortization of computer software associated with various projects. These increases were partially offset by a decrease in rent expense related to a change in the estimate for deferred rent resulting from the Company’s efforts to control expenses over the branch network.

For the nine months ended September 30, 2016, the $270,000 decrease in occupancy and equipment expense was impacted by a decrease in real estate taxes and utility expenses as the Company closed five branches in the second quarter of 2015 and the same items discussed in the three month period. Finally, expenses for maintenance contracts decreased due to less snow removal costs in the first quarter of 2016 as well as the successful negotiation to reduce a contract termination fee that was recorded in the prior period.

Professional fees: Professional fees decreased $456,000 for the three months ended September 30, 2016, and $387,000 for the nine months ended September 30, 2016, compared to the same periods in 2015. The decreases for both the three and nine months were largely driven by prior year’s expenses related to engagement of consulting services assisting in realignment of the Company’s information technology infrastructure to keep our products and services competitive. These decreases were partially offset by an increase in outsourced internal audit expenses.

Marketing and Promotions: Marketing and promotion expense was $656,000 and $587,000 for the three months ended September 30, 2016 and 2015, respectively, an increase of $69,000. For the nine months ended September 30, 2016 marketing and promotions increased $428,000 to $2.3 million from the same period in the prior year. The increase was primarily attributable to expenses related to a television and radio branding campaign that was run through the second quarter of 2016, as well as increased digital advertising expenses, which were partially offset by a decrease in newspaper advertising expenses.

FDIC Insurance Assessments: The expense for FDIC insurance assessments increased$69,000 to $819,000 for the three months ended September 30, 2016 compared to the 2015 period, while the expense increased $149,000 to $2.8 million, for the nine months ended September 30, 2016 compared to the prior year period. These increases are primarily attributable to a higher assessment base used in the assessment calculation due to loan growth, which was partially offset by a decrease in the assessment rate and the FDIC’s Deposit Insurance Fund reserve ratio exceeding established benchmarks.

Core Deposit Intangible Amortization: The $48,000 and $144,000 decrease in core deposit intangible amortization for the three and nine months ended September 30, 2016, respectively, is directly attributable to the amortization method used by the Company. The Company is amortizing the original core deposit intangible of $10.6 million over 10 years using the sum-of-the-years-digits method.

FHLBB Prepayment Penalties: For the three months ended September 30, 2016, there were no FHLBB prepayment penalties recorded by the Company. For the nine months ended September 30, 2016, FHLBB prepayment penalties recorded by the Company were $1.5 million. There were no prepayment penalties in the same periods in 2015. As part of the Company’s investment portfolio optimization strategy implemented in the first quarter of 2016, the Company sold investment securities and recorded gains of $1.5 million and prepaid FHLBB advances with prepayment penalties amounting to $1.5 million.

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Other Expenses: For the three and nine months ended September 30, 2016, other expenses recorded by the Company were $5.4 million and $16.4 million, a decrease of $950,000 and $489,000 from the comparable 2015 periods, respectively. Both the three and nine month periods ended September 30, 2016 were primarily impacted by decreases in (a) loan swap fees as the Company entered into fewer swaps in 2016; (b) mortgage loan servicing fees; and (c) debit card losses as the measures put in place by the Company have helped combat debit card related fraud. Increases during the three and nine months ended September 30, 2016 as compared to the 2015 periods include (a) computer software expenses reflecting multiple efficiency projects, (b) the provision for off-balance sheet assets relating to an increase in total commitments, (c) increased expenses for sales and use taxes associated with a state tax audit and (d) human resources on boarding expenses related to new hires in areas targeted for growth.

Income Tax Provision

The provision for income taxes was $757,000 and $952,000 for the three months ended September 30, 2016 and 2015, respectively. The Company’s effective tax rate for three months ended September 30, 2016 and 2015 was 5.1% and 6.6%, respectively. The provision for income taxes was $3.2 million and $6.1 million for the nine months ended September 30, 2016 and 2015, respectively. The Company’s effective tax rate for nine months ended September 30, 2016 and 2015 was 8.4% and 13.2%, respectively. The decrease in the tax expense and the effective tax rate over the prior year periods is primarily due to an additional alternative energy tax credit investment in the first quarter of 2016 and lower pre-tax income as compared to the prior year period. The effective tax rates for September 30, 2016 and 2015 differ from combined statutory rates as a result of favorable permanent differences for tax-exempt income, BOLI, and investment tax credits, as well as reduced state tax expense due to tax planning strategies that have been implemented.

The Company continually monitors and evaluates the potential impact of current events and circumstances on the estimates used in the analysis of its income tax positions, and accordingly, the Company’s effective tax rate may fluctuate in the future. The Company evaluates its income tax positions based on tax laws and appropriate regulations and financial reporting considerations, and records adjustments as appropriate. This evaluation takes into consideration the status of current taxing authorities’ examinations of the Company’s tax returns and recent positions taken by the taxing authorities on similar transactions, if any. Accordingly, the results of these examinations may alter the timing or amount of taxable income or deductions taken by the Company.

Financial Condition, Liquidity and Capital Resources

Summary

The Company had total assets of $6.54 billion at September 30, 2016 and $6.23 billion at December 31, 2015, an increase of $316.3 million, or 5.1%, primarily due to the increase in net loans of $102.8 million, or 2.2%, an increase in loans held for sale of $73.2 million and an increase in other assets of $24.8 million, which is mainly due to increases in the loan level hedge derivative asset and a new partnership agreement that the Company entered into the first quarter of 2016. The Company utilized deposit growth to fund the growth in loans and securities.

Total net loans of $4.69 billion, with allowance for loan losses of $41.1 million at September 30, 2016, increased $102.8 million, or 2.2%, when compared to total net loans of $4.59 billion, with allowance for loan losses of $33.9 million at December 31, 2015. The increase in loans is due to both organic loan growth and the purchased loan portfolios. Net loans increased primarily due to growth in owner-occupied commercial real estate loans, commercial business loans and home equity lines of credit, partially offset by decreases in commercial construction and other consumer balances. Residential mortgages also declined, reflecting the Company's strategy to reduce on-balance sheet exposure to residential mortgage loans.

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Total deposits of $4.70 billion at September 30, 2016 increased $258.4 million, or 5.8%, when compared to total deposits of $4.44 billion at December 31, 2015. The increase in deposits is mainly due to growth in demand accounts, NOW accounts, and certificates of deposit, offset by a decrease in money market deposits, and is reflective of the Company’s strategy to manage the cost of interest bearing deposits. The Bank’s net loan-to-deposit ratio was 99.9% at September 30, 2016, compared to 103.4% at December 31, 2015.

At September 30, 2016, total equity of $656.2 million increased $30.7 million when compared to total equity of $625.5 million at December 31, 2015. The change in equity for the period ended September 30, 2016 consisted primarily of year to date net income, partially offset by dividends paid to common shareholders, as well as an increase due to the change in market value on available-for-sale securities, which was partially offset by a decrease in the fair value of the cash flow hedge. At September 30, 2016, the tangible common equity ratio was 8.32% compared to 8.23% at December 31, 2015.

See Note 9, “Regulatory Matters” in Notes to Unaudited Consolidated Financial Statements contained in this report for information on the Bank and the Company’s regulatory capital levels and ratios.

Securities

The Company maintains a securities portfolio that is primarily structured to generate interest income, manage interest-rate sensitivity, and provide a source of liquidity for operating needs. The securities portfolio is managed in accordance with regulatory guidelines and established internal corporate investment policies.

The following table sets forth information regarding the amortized cost and fair value of the Company’s investment portfolio at the dates indicated:

Securities

	September 30, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Available for sale:
Debt securities:
U.S. Government and government-sponsored enterprise obligations	$	—	$	—	$	10,159	$	10,089
Government-sponsored residential mortgage-backed securities	161,388		164,668		146,434		145,861
Government-sponsored residential collateralized debt obligations	195,056		197,830		287,515		286,967
Government-sponsored commercial mortgage-backed securities	27,107		27,820		21,144		20,965
Government-sponsored commercial collateralized debt obligations	176,706		179,726		128,617		128,972
Asset-backed securities	159,195		160,357		162,895		159,901
Corporate debt securities	59,848		60,210		62,356		59,960
Obligations of states and political subdivisions	221,367		223,856		201,217		201,115
Total debt securities	1,000,667		1,014,467		1,020,337		1,013,830
Marketable equity securities, by sector:
Banks	33,087		34,676		41,558		42,113
Industrial	109		164		109		143
Mutual funds	2,880		2,942		2,854		2,915
Oil and gas	131		190		132		168
Total marketable equity securities	36,207		37,972		44,653		45,339
Total available-for-sale securities	$	1,036,874	$	1,052,439	$	1,064,990	$	1,059,169
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,331	$	13,516	$	12,360	$	13,234
Government-sponsored residential mortgage-backed securities	1,831		2,053		2,205		2,449
Total held to maturity securities	$	14,162	$	15,569	$	14,565	$	15,683

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During the nine months ended September 30, 2016, the available-for-sale securities portfolio decreased$6.7 million to $1.05 billion, representing 16.1% of total assets at September 30, 2016, from $1.06 billion and 17.0% of total assets at December 31, 2015. The increase is largely reflective of continued maintenance of the Company’s barbell management strategy, with bond purchases focused on maintaining investment portfolio duration while also adding diversification to the portfolio holdings of corporate and municipal sleeves. Portfolio activity during the first half of the year primarily stemmed from a bond repositioning into slightly longer agency mortgage securities in order to obtain better duration adjusted returns, reducing exposure to municipalities that rely on the oil sector, and certain repositioning for better credit risk adjusted returns in the corporate and municipal sleeves.

Accounting guidance requires the Company to designate its securities as held to maturity, available for sale, or trading depending on the Company’s intent regarding its investments at the time of purchase. The Company does not currently maintain a portfolio of trading securities. As of September 30, 2016, $1.05 billion, or 98.7% of the portfolio, was classified as available for sale, and $14.2 million of the portfolio was classified as held to maturity.

The Company held $136.2 million in securities that are in an unrealized loss position at September 30, 2016; $55.6 million of this total had been in an unrealized loss position for less than twelve months with the remaining $80.6 million in an unrealized loss position for twelve months or longer. These securities were evaluated by management and were determined not to be other-than-temporarily impaired. The Company does not have the intent to sell these securities, and it is more-likely-than-not that it will not have to sell the securities before the recovery of their cost basis. To the extent that changes in interest rates, credit spread movements and other factors that influence the fair value of securities continue, the Company may be required to record additional impairment charges for other-than-temporary impairment in future periods. For additional information on the securities portfolio, see Note 3, “Securities” in the Notes to Unaudited Consolidated Financial Statements contained elsewhere in this report.

The Company monitors investment exposures continually, performs credit assessments based on market data available at the time of purchase, and performs ongoing credit due diligence for all collateralized loan obligations, corporate exposures, and municipal securities. The Company’s investment portfolio is regularly monitored for performance enhancements and interest rate risk profiles, with dynamic strategies implemented accordingly.

The Company has the ability to use the investment portfolio, as well as interest-rate financial instruments within internal policy guidelines, to hedge and manage interest-rate risk as part of its asset/liability strategy. See Note 7, “Derivatives and Hedging Activities,” in the Notes to Unaudited Consolidated Financial Statements contained elsewhere in this report for additional information concerning derivative financial instruments.

Lending Activities

The table below displays the balances of the Company’s loan portfolio as of September 30, 2016 and December 31, 2015:

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Loan Portfolio Analysis

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
	(Dollars in thousands)
Commercial real estate loans:
Owner-occupied	$	392,168		8.3	%	$	322,084		7.0	%
Investor non-owner occupied	1,702,701			36.1		1,673,248			36.3
Construction	90,380			1.9		129,922			2.8
Total commercial real estate loans	2,185,249			46.3		2,125,254			46.1
Commercial business loans	660,676			14.0		603,332			13.1
Consumer loans:
Residential real estate	1,129,079			23.9		1,179,915			25.6
Home equity	479,390			10.2		431,282			9.3
Residential construction	52,476			1.1		41,084			0.9
Other consumer	213,830			4.5		233,064			5.0
Total consumer loans	1,874,775			39.7		1,885,345			40.8
Total loans	4,720,700			100.0	%	4,613,931			100.0	%
Net deferred loan costs and premiums	10,214					7,018
Allowance for loan losses	(41,080		)			(33,887		)
Loans - net	$	4,689,834				$	4,587,062

As shown above, gross loans were $4.72 billion, an increase of $106.8 million, or 2.3%, at September 30, 2016 from December 31, 2015.

Total commercial real estate loans represent the largest segment of our loan portfolio at 46.3% of total loans and increased$60.0 million, or 2.8%, to $2.19 billion from December 31, 2015, reflecting increased production from the Company’s expanded commercial banking division. The commercial real estate loan portfolio is comprised of owner-occupied commercial real estate (“OOCRE”) and investor non-owner occupied commercial real estate (“Investor CRE”) and to a lesser extent commercial construction. Investor CRE represents the largest segment of the Company’s loan portfolio as of September 30, 2016, comprising 36.1% of total loans and OOCRE represents 8.3% of the portfolio. The Company plans to continue to increase the level of OOCRE while decreasing the level of Investor CRE to generate more favorable risk-adjusted returns and enhance net interest margin. Commercial real estate construction loans are made for developing commercial real estate properties such as office complexes, apartment buildings and residential subdivisions. Commercial real estate construction loans totaled $90.4 million at September 30, 2016, approximately $37.2 million of which is residential use and $53.2 million is commercial use, compared to total commercial real estate construction loans of $129.9 million at December 31, 2015, $44.5 million of which was residential use and $85.4 million was commercial use.

Commercial business loans increased to $660.7 million at September 30, 2016 from $603.3 million at December 31, 2015. The commercial division continues to experience momentum in origination activity and has a strong loan pipeline. Mid-sized businesses continue to look to community banks for relationship banking and personalized lending services.

Residential real estate continue to represent a major segment of the Company’s loan portfolio as of September 30, 2016, comprising 23.9% of total loans. The decrease of $50.8 million from December 31, 2015 reflects the Company’s strategy to reduce the level of residential mortgages on the balance sheet. The Company had originations of both adjustable and fixed rate mortgages of $471.0 million during the first nine months of 2016, reflecting both refinancing activity and loans for new home purchases. The Company opportunistically sells a majority of its originated fixed rate residential real estate loans with terms of 15 to 30 years.

Residential real estate construction loans are made to individuals for home construction whereby the borrower owns the parcel of land and the funds are advanced in stages until completion. Residential real estate construction loans totaled $52.5 million at September 30, 2016 compared to $41.1 million at December 31, 2015.

The Company also offers home equity loans and home equity lines of credit (“HELOCs”), both of which are secured by owner-occupied one-to-four family residences. At September 30, 2016 the home equity portfolio totaled $479.4 million compared to

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$431.3 million at December 31, 2015. Home equity loans are offered with fixed rates of interest and with terms up to 15 years. During the nine months ended September 2016 and the month of December 2015, the Company purchased HELOC portfolios totaling $75.7 million and $100.4 million, respectively. The total balance of the HELOC purchased portfolios outstanding at September 30, 2016 and December 31, 2015 was $148.1 million and $98.6 million, respectively. These loans are not serviced by the Company. The purchased HELOC portfolios are secured by second liens. The Company plans to continue purchasing HELOCs throughout 2016.

Other consumer loans totaled $213.8 million, or 4.5%, of our total loan portfolio at September 30, 2016. Other consumer loans generally consist of loans on retail boats, HUD Title I loans, new and used automobiles, including indirect automobile loans, loans collateralized by deposit accounts and unsecured personal loans. During December 2015, the Company purchased two consumer loan portfolios totaling $229.2 million and consisted of marine retail loans and Title 1 home improvement loans. At September 30, 2016 and December 31, 2015, $182.1 million and $224.8 million was outstanding, respectively. The marine retail loans are based on premium brands. The Title I home improvement loans are 90% backed by the U.S. Department of Housing and Urban Development and consist of loans to install energy efficient upgrades to the borrowers’ one-to-four family residences. The Company’s plan seeks to increase the level of consumer loans throughout 2016, given these loan types have favorable rate characteristics that will positively impact the net interest margin.

The Company has employed specific parameters taking into account: geographical considerations; exposure hold levels; qualifying financial partners; and most importantly sound credit quality with strong metrics. A thorough independent analysis of the credit quality of each borrower is made for every transaction whether it is an assignment or participation.

Asset Quality

The Company’s lending strategy focuses on direct relationship lending within its primary market area as the quality of assets underwritten is an important factor in the successful operation of a financial institution. Non-performing assets, loan delinquency and credit loss levels are considered to be key measures of asset quality. Management strives to maintain asset quality through its underwriting standards, servicing of loans and management of non-performing assets since asset quality is a key factor in the determination of the level of the allowance for loan losses (“ALL”). See Note 4, “Loans Receivable and Allowance for Loan Losses” contained elsewhere in this report for further information concerning the Allowance for Loan Losses.

The following table details asset quality ratios for the following periods:

Asset Quality Ratios

	At September 30, 2016		At December 31, 2015
Non-performing loans as a percentage of total loans	0.71	%	0.82	%
Non-performing assets as a percentage of total assets	0.55	%	0.62	%
Net charge-offs as a percentage of average loans (1)	0.08	%	0.10	%
Allowance for loan losses as a percentage of total loans	0.87	%	0.73	%
Allowance for loan losses to non-performing loans	123.26	%	89.64	%

(1) Calculated based on year to date net charge-offs annualized

Non-performing Assets

Generally loans are placed on non-accrual if collection of principal or interest in full is in doubt, if the loan has been restructured as part of a TDR, or if any payment of principal or interest is past due 90 days or more. A loan may be returned to accrual status if it has demonstrated sustained contractual performance for six continuous months or if all principal and interest amounts contractually due are reasonably assured of repayment within a reasonable period. There are, on occasion, circumstances that cause commercial loans to be placed in the 90 days delinquent and accruing category, for example, loans that are considered to be well secured and in the process of collection or renewal. As of September 30, 2016 and December 31, 2015, loans totaling $458,000 and $307,000, respectively, were greater than 90 days past due and accruing. The loans reported as past due 90 days or more and still accruing represent loans that were evaluated by management and maintained on accrual status based on an evaluation of the borrower.At September 30, 2016 and December 31, 2015, there was one U.S. Government fully guaranteed loan reported as past due 90 days or more and still accruing in addition to accruing purchased credit impaired loans.

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The following table details non-performing assets for the periods presented:

	At September 30, 2016				At December 31, 2015
	Amount		%		Amount		%
	(Dollars in thousands)
Non-accrual loans:
Owner-occupied commercial real estate	$	2,838	7.9	%	$	2,939	7.6	%
Investor commercial real estate	3,746		10.4		8,565		22.2
Construction	1,879		5.2		2,808		7.3
Commercial business	2,016		5.6		3,898		10.1
Residential real estate	11,527		31.9		11,193		29.0
Home equity	3,649		10.1		2,786		7.2
Other consumer loans	328		0.9		2		—
Total non-accrual loans, excluding troubled debt restructured loans	25,983		72.0	%	32,191		83.4	%
Troubled debt restructurings - non-accruing	7,345		20.3		5,611		14.6
Total non-performing loans	33,328		92.3		37,802		98.0
Other real estate owned	2,792		7.7		755		2.0
Total non-performing assets	$	36,120	100.0	%	$	38,557	100.0	%

As displayed in the table above, non-performing assets at September 30, 2016decreased to $36.1 million compared to $38.6 million at December 31, 2015.

Non-accruing TDR loans increased by $1.7 million since December 31, 2015, primarily due to an increase of $662,000 for residential real estate and home equity TDR loans and an increase in commercial business TDRs of $771,000. The increase in the residential real estate and home equity categories reflects, in part, an increase in the number of home equity line of credit loans that have reached maturity and converted from interest only to principal and interest payments. Difficulty making these larger payments combined with a decline in home values related to these loans, is a driver of this increase. Home equity non-accrual loans increased$863,000 to $3.6 million at September 30, 2016. This increase is also due to the increasing number of maturing home equity lines of credit converting from interest only to principal and interest payments.

Residential real estate non-accrual loans increased$334,000 to $11.5 million at September 30, 2016. The Company continues to originate loans with strong credit characteristics and routinely updates non-performing loans in terms of FICO scores and LTV ratios. Through continued heightened account monitoring, collections and workout efforts, the Bank is committed to mortgage solution programs designed to assist homeowners to remain in their homes. As has been its practice historically, the Company does not originate subprime loans.

Other consumer non-accrual loans increased to $328,000 at September 30, 2016. The increase represents one marine loan which evidenced payments due in excess of 90 days and resulted in the loan being classified as non-accrual.

At September 30, 2016, commercial real estate non-accrual loans decreased$4.9 million and commercial business non-accrual loans decreased$1.9 million. The increase in commercial TDRs was driven by several smaller commercial business and commercial real estate loans restructured during the first nine months of the year.

Non-accrual construction loans decreased$929,000, primarily reflecting 12 commercial relationships totaling $1.9 million, of which all relates to construction for residential subdivisions. At December 31, 2015 nonaccrual construction loans consisted of 14 commercial relationships and totaled $2.8 million.

Troubled Debt Restructuring

Loans are considered restructured in a troubled debt restructuring when the Company has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions include modifications of the terms of the debt such as reduction of the stated interest rate other than normal market rate adjustments, extension of maturity dates, or reduction of principal balance or accrued interest. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit the Company by increasing the ultimate probability of collection.

TDR loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the restructuring generally remain on non-accrual status for a minimum of six months before management considers such loans for return to accruing TDR status. Accruing restructured loans are placed into

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non-accrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. Once a loan is classified as a TDR it retains that classification for the life of the loan; however, some TDRs may demonstrate acceptable performance allowing the TDR loan to be placed on accruing TDR status. The increase in TDRs is primarily attributable to the addition of larger commercial loans along with increases in residential and home equity TDRs during the period ended September 30, 2016.

The following table provides detail of TDR balances for the periods presented:

	At September 30, 2016		At December 31, 2015
	(In thousands)
Recorded investment in TDRs:
Accrual status	$	18,758	$	18,453
Non-accrual status	7,345		5,611
Total recorded investment	$	26,103	$	24,064
Accruing TDRs performing under modified terms for more than one year	$	8,394	$	5,821
TDR allocated reserves included in the balance of allowance for loan losses	690		223
Additional funds committed to borrowers in TDR status	—		513

The following table provides detail of TDR activity for the periods presented:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
TDRs, beginning of period	$	26,314		$	16,330		$	24,064		$	15,807
New TDR status	3,346			768			8,046			5,523
Paydowns/draws on existing TDRs, net	(3,542		)	(1,074		)	(5,915		)	(4,822		)
Charge-offs post modification	(15		)	(12		)	(92		)	(496		)
TDRs, end of period	$	26,103		$	16,012		$	26,103		$	16,012

Allowance for Loan Losses

The allowance for loan losses and the reserve for unfunded credit commitments are maintained at a level estimated by management to provide for probable losses inherent within the loan portfolio. Probable losses are estimated based upon a quarterly review of the loan portfolio, which includes historic default and loss experience, specific problem loans, risk rating profile, economic conditions and other pertinent factors which, in management’s judgment, warrant current recognition in the loss estimation process. The Company’s Risk Management Committee meets quarterly to review and conclude on the adequacy of the reserves and to present their recommendation to executive management and the Board of Directors.

Management considers the adequacy of the ALL a critical accounting estimate. The adequacy of the ALL is subject to considerable assumptions and judgment used in its determination. Therefore, actual losses could differ materially from management’s estimate if actual conditions differ significantly from the assumptions utilized. These conditions include economic

factors in the Company’s market and nationally, industry trends and concentrations, real estate values and trends, and the financial condition and performance of individual borrowers. While management believes the ALL is adequate as of September 30, 2016, actual results may prove different and the differences could be significant.

The Company’s general practice is to identify problem credits early and recognize full or partial charge-offs as promptly as practicable when it is determined that the collection of loan principal is unlikely. The Company recognized full or partial charge-offs on collateral dependent impaired loans when the collateral is deemed to be insufficient to support the carrying value of the loan. The Company does not recognize a recovery when an updated appraisal indicates a subsequent increase in value.

The Company had a loan loss allowance of $41.1 million, or 0.87%, of total loans at September 30, 2016 as compared to a loan loss allowance of $33.9 million, or 0.73%, of total loans at December 31, 2015. Management believes that the allowance for loan losses is adequate and consistent with asset quality indicators and that it represents the best estimate of probable losses inherent in the loan portfolio.

The unallocated portion of the ALL represents general valuation allowances that are not allocated to a specific loan portfolio. The unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses and reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. The unallocated portion of the ALL at September 30, 2016 increased $531,000 to $1.3 million compared to December 31, 2015. See Note 4, “Loans Receivable and Allowance for Loan Losses” in the Notes to the Unaudited Consolidated Financial Statements contained in this report for a table providing the activity in the Company’s allowance for loan losses for the three and nine months ended September 30, 2016 and 2015.

In addition to the ALL, the Company maintains a reserve for unfunded credit commitments in other liabilities on the Consolidated Statements of Condition. The allowance for credit losses analysis includes consideration of the risks associated with unfunded loan commitments. The reserve calculation includes factors that are consistent with ALL methodology for funded loans. The combination of ALL and unfunded reserves is calculated in a manner to capture the entirety of the underlying business relationship of the customer. The amounts of unfunded commitments and the associated reserves may be subject to fluctuations due to originations, the timing and volume of loan funding, as well as changes in risk ratings. At September 30, 2016 and December 31, 2015, the reserve for unfunded credit commitments was $1.4 million and $1.2 million, respectively.

Sources of Funds

The primary source of the Company’s cash flows, for use in lending and meeting its general operational needs, is deposits. Additional sources of funds are from FHLBB advances, reverse repurchase agreements, federal funds lines, loan and mortgage-backed securities repayments, securities sales proceeds and maturities, subordinated debt, and earnings. While scheduled loan and securities repayments are a relatively stable source of funds, loan and investment security prepayments and deposit inflows are influenced by prevailing interest rates and local economic conditions and are inherently uncertain.

Deposits

The Company offers a wide variety of deposit products to consumer, business and municipal customers. Deposit customers can access their accounts in a variety of ways including branch banking, ATM’s, online banking, mobile banking and telephone banking. Effective advertising, direct mail, well-designed product offerings, customer service and competitive pricing policies have been successful in attracting and retaining deposits. A key strategic objective is to grow the base of checking customers by retaining existing relationships while attracting new customers.

Deposits provide an important source of funding for the Bank as well as an ongoing stream of fee revenue. The Company attempts to control the flow of funds in its deposit accounts according to its need for funds and the cost of alternative sources of funding. A Retail Pricing Committee meets weekly and a Management ALCO Committee meets monthly, to determine pricing and marketing initiatives. Actions of these committees influence the flow of funds primarily by the pricing of deposits, which is affected to a large extent by competitive factors in its market area and asset/liability management strategies.

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The following table presents deposits by category as of the dates indicated:

	September 30, 2016		December 31, 2015
	(In thousands)
Demand deposits	$	687,865	$	657,718
NOW accounts	433,059		361,442
Regular savings and club accounts	514,002		508,377
Money market and investment savings	1,182,452		1,182,423
Total core deposits	2,817,378		2,709,960
Time deposits	1,878,093		1,727,111
Total deposits	$	4,695,471	$	4,437,071

Deposits totaled $4.70 billion at September 30, 2016, an increase of $258.4 million compared to December 31, 2015. Core deposits increased$107.4 million, or 4.0%, from year end due to the Company’s continued strategy to focus on obtaining low cost core deposits.

Time deposits included brokered certificate of deposits of $358.6 million and $392.0 million at September 30, 2016 and December 31, 2015, respectively. The Company utilizes out-of-market brokered time deposits as part of its overall funding program along with other sources. Excluding out-of-market brokered certificates of deposits, in-market time deposits totaled $1.52 billion at September 30, 2016.

Borrowings

The Company also uses various types of short-term and long-term borrowings in meeting funding needs. While customer deposits remain the primary source for funding loan originations, management uses short-term and long-term borrowings as a supplementary funding source for loan growth and other liquidity needs when the cost of these funds are favorable compared to alternative funding, including deposits.

The following table presents borrowings by category as of the dates indicated:

	September 30, 2016		December 31, 2015
	(In thousands)
FHLBB advances (1)	$	977,483	$	949,003
Subordinated debt (2)	79,658		79,489
Wholesale repurchase agreements	20,000		45,000
Customer repurchase agreements	21,387		19,278
Other	4,354		6,250
Total borrowings	$	1,102,882	$	1,099,020

(1)FHLBB advances include $2.1 million and $3.5 million of purchase accounting discounts at September 30, 2016 and December 31, 2015, respectively.

(2)Subordinated debt includes $7.7 million of acquired junior subordinated debt, net of mark to market discounts of $2.1 million, and $75.0 million of Subordinated Notes, net of associated deferred costs of $1.0 million at September 30, 2016 and $1.1 million at December 31, 2015.

United Bank is a member of the Federal Home Loan Bank System, which consists of twelve district Federal Home Loan Banks, each subject to the supervision and regulation of the Federal Housing Finance Agency. Members are required to own capital stock in the FHLBB in order for the Bank to access advances and borrowings which are collateralized by certain home mortgages or securities of the U.S. Government and its agencies. The capital stock investment is restricted in that there is no market for it, and it can only be redeemed by the FHLBB.

Total FHLBB advances increased $29.9 million to $975.4 million at September 30, 2016, exclusive of the purchase accounting mark adjustment on the advances, compared to $945.5 million at December 31, 2015. This increase occurred in order to fund loan growth. At September 30, 2016, $875.4 million of the Company’s $975.4 million outstanding FHLBB advances were at fixed coupons ranging from 0.26% to 4.49%, with a weighted average cost of 0.93%. Additionally, the Company has two advances with the FHLBB totaling $75.0 million that are underlying hedge instruments; the interest is based on the three 3-month LIBOR and adjusts quarterly. The Company also has one Flipper advance with the FHLBB totaling $25.0 million, effective March 18, 2016,

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with an initial interest rate of 0.05% per annum.  The advance reprices to 3-month LIBOR minus 60 basis points on a quarterly basis until March 2017, at which point the advance converts to a fixed rate of 1.62% and is callable on a quarterly basis. The average cost of funds including these adjustable advances is 0.91%. FHLBB borrowings represented 14.9% and 15.2% of assets at September 30, 2016 and December 31, 2015, respectively.

Borrowings under reverse purchase agreements totaled $20.0 million at September 30, 2016, a decrease of $25.0 million from December 31, 2015. The outstanding borrowings consisted of two individual agreements with remaining terms of three years or less and a weighted-average cost of 2.59%. Retail repurchase agreements, which have a term of one day and are backed by the purchasers’ interest in certain U.S. Government or government-sponsored securities, totaled $21.4 million and $19.3 million at September 30, 2016 and December 31, 2015, respectively.

Subordinated debentures totaled $79.7 million at September 30, 2016 and $79.5 million at December 31, 2015.

Liquidity and Capital Resources

Liquidity is the ability to meet cash needs at all times with available cash or by conversion of other assets to cash at a reasonable price and in a timely manner. The Company maintains liquid assets at levels the Company considers adequate to meet its liquidity needs. The Company adjusts its liquidity levels to fund loan commitments, repay its borrowings, fund deposit outflows, pay escrow obligations on all items in the loan portfolio and to fund operations. The Company also adjusts liquidity as appropriate to meet asset and liability management objectives.

The Company’s primary sources of liquidity are deposits, amortization and prepayment of loans, the sale in the secondary market of loans held for sale, maturities and sales of investment securities and other short-term investments, periodic pay downs of mortgage-backed securities, and earnings and funds provided from operations. While scheduled principal repayments on loans are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and rates offered by our competition. The Company sets the interest rates on our deposits to maintain a desired level of total deposits. In addition, the Company invests excess funds in short-term interest-earning assets, which provide liquidity to meet lending requirements.

A portion of the Company’s liquidity consists of cash and cash equivalents, which are a product of our operating, investing and financing activities. At September 30, 2016, $214.2 million of the Company’s assets were held in cash and cash equivalents compared to $95.2 million at December 31, 2015. The Company’s primary sources of cash are principal repayments on loans, proceeds from the calls and maturities of investment securities, increases in deposit accounts, proceeds from residential loan sales and advances from the FHLBB.

Liquidity management is both a daily and longer-term function of business management. If the Company requires funds beyond its ability to generate them internally, borrowing agreements exist with the FHLBB, which provide an additional source of funds. At September 30, 2016, the Company had $975.4 million in advances from the FHLBB and an additional available borrowing limit of $408.5 million based on collateral requirements of the FHLBB inclusive of the line of credit. In addition, the Bank has relationships with brokered sweep deposit providers with outstanding balances of $223.6 million at September 30, 2016. Internal policies limit wholesale borrowings to 40% of total assets, or $2.62 billion, at September 30, 2016. In addition, the Company has uncommitted federal funds line of credit with four counterparties totaling $107.5 million at September 30, 2016. No federal funds purchased were outstanding at September 30, 2016.

The Company has established access to the Federal Reserve Bank of Boston’s discount window through a borrower in custody agreement. As of September 30, 2016, the Bank had pledged 27 commercial loans, with outstanding balances totaling $195.8 million. Based on the amount of pledged collateral, the Bank had available liquidity of $149.6 million.

At September 30, 2016, the Company had outstanding commitments to originate loans of $256.6 million and unfunded commitments under construction loans, lines of credit, stand-by letters of credit, unused checking overdraft lines of credit, and unused credit card lines of $818.6 million. At September 30, 2016, time deposits scheduled to mature in less than one year totaled $0.00 billion. Based on prior experience, management believes that a significant portion of such deposits will remain with the Company, although there can be no assurance that this will be the case. In the event a significant portion of its deposits are not retained by the Company, it will have to utilize other funding sources, such as FHLBB advances in order to maintain its level of assets. Alternatively, we would reduce our level of liquid assets, such as our cash and cash equivalents in order to meet funding needs. In addition, the cost of such deposits may be significantly higher if market interest rates are higher or there is an increased amount of competition for deposits in our market area at the time of renewal.

The main sources of liquidity at the parent company level are dividends from United Bank and proceeds received from the Company’s issuance of $75.0 million of subordinated notes in September 2014. The main uses of liquidity are payments of dividends to common stockholders, repurchase of United Financial’s common stock, payment of subordinated note interest, and corporate operating expenses. There are certain restrictions on the payment of dividends. See Note 18, “Regulatory Matters” in the Company’s

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2015 Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for further information on dividend restrictions.

The Company and the Bank are subject to various regulatory capital requirements. As of September 30, 2016, the Company and the Bank are categorized as “well-capitalized” under the regulatory framework for prompt corrective action. See Note 9, “Regulatory Matters” in the Notes to the Unaudited Consolidated Financial Statements contained elsewhere in this report for discussion of capital requirements.

The liquidity position of the Company is continuously monitored and adjustments are made to balance between sources and uses of funds as deemed appropriate. Management is not aware of any events that are reasonably likely to have a material adverse effect on the Company’s liquidity, capital resources or operations. In addition, management is not aware of any regulatory recommendations regarding liquidity, which if implemented would have a material adverse effect on the Company. The Company has a detailed liquidity contingency plan which is designed to respond to liquidity concerns in a prompt and comprehensive manner. It is designed to provide early detection of potential problems and details specific actions required to address liquidity stress scenarios.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

General: The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans, in general have longer contractual maturities than our liabilities, consisting primarily of deposits. As a result, a principal part of our business strategy is to manage interest rate risk and reduce the exposure of our net interest income to changes in market interest rates. Accordingly, our Board of Directors has established a Risk Committee which is responsible for evaluating the interest rate risk inherent in our assets and liabilities, for determining the level of risk that is appropriate given our business strategy, operating environment, capital, liquidity and performance objectives, and for managing this risk consistent with the guidelines approved by the Board of Directors. Management monitors the level of interest rate risk on a regular basis and the Risk Committee meets at least quarterly to review our asset/liability policies and interest rate risk position.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. During the low interest rate environment that has existed in recent years, we have implemented the following strategies to manage our interest rate risk: (i) emphasizing adjustable rate loans including, adjustable rate one-to-four family, commercial and consumer loans, (ii) selling longer-term 1-4 family fixed rate mortgage loans in the secondary market, (iii) reducing and shortening the expected average life of the investment portfolio and (iv) a forward starting hedge strategy for future dated wholesale funding and (v) a loan level hedging program. These measures should serve to reduce the volatility of our future net interest income in different interest rate environments.

Quantitative Analysis

Income Simulation: Simulation analysis is used to estimate our interest rate risk exposure at a particular point in time. The Company models a stable balance sheet (both size and mix) projected throughout the modeling horizon. This adoption was made in a continued effort to align with regulatory best practices and to highlight the current level of risk in the Company’s positions without the effects of growth assumptions. We utilize the income simulation method to analyze our interest rate sensitivity position to manage the risk associated with interest rate movements. At least quarterly, our Risk Committee of the Board of Directors reviews the potential effect changes in interest rates could have on the repayment or repricing of rate sensitive assets and funding requirements of rate sensitive liabilities. Our most recent simulation uses projected repricing of assets and liabilities at September 30, 2016 on the basis of contractual maturities, anticipated repayments and scheduled rate adjustments. Prepayment rate assumptions as well as deposit characterization assumptions can have a significant impact on interest income simulation results. Because of the large percentage of loans and mortgage-backed assets we hold, rising or falling interest rates may have a significant impact on the actual prepayment speeds of our mortgage related assets that may in turn effect our interest rate sensitivity position. When interest rates rise, prepayment speeds slow and the average expected life of our assets would tend to lengthen more than the expected average life of our liabilities and therefore would most likely result in a decrease to our asset sensitive position.

	Percentage Decrease in Estimated Net Interest Income
	Over 12 Months		Over 12 -24 Months
300 basis point increase in rates	1.74	%	(4.78	)%
50 basis point decrease in rates	(5.25	)%	(7.04	)%

United Bank’s Asset/Liability policy currently limits projected changes in net interest income based on a matrix of projected total risk-based capital relative to the interest rate change for each twelve month period measured compared to the flat rate scenario. As a result, the higher a level of projected risk-based capital, the higher the limit of projected net interest income volatility the

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Company will accept. As the level of projected risk-based capital is reduced, the policy requires that net interest income volatility also is reduced, making the limit dynamic relative to the capital level needed to support it. These policy limits are re-evaluated on a periodic basis (not less than annually) and may be modified, as appropriate. Because of the asset-sensitivity of our balance sheet, income is projected to increase if interest rates rise in the 12 month projected horizon. Also included in the decreasing rate scenario is the assumption that further declines are reflective of a deeper recession as well as narrower credit spreads from Federal Open Market Committee actions. At September 30, 2016, income at risk over the next twelve months (i.e., the change in net interest income) increased 1.74% and decreased 5.25% based on a 300 basis point average increase or a 50 basis point average decrease, respectively. While we believe the assumptions used are reasonable, there can be no assurance that assumed prepayment rates will approximate actual future mortgage-backed security and loan repayment activity.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures: Our disclosure controls and procedures are designed to ensure that information the Company must disclose in its reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported on a timely basis. Our management has evaluated, with the participation and under the supervision of our chief executive officer (“CEO”) and chief financial officer (“CFO”), the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, our CEO and CFO have concluded that, as of such date, the Company’s disclosure controls and procedures are effective in ensuring that information relating to the Company, including its consolidated subsidiaries, required to be disclosed in reports that it files under the Exchange Act is (1) recorded, processed, summarized and reported within time periods specified in the SEC’s rules and forms, and (2) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Controls: During the quarter under report, there was no change in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in various legal proceedings that have arisen in the normal course of business. The Company is not involved in any legal proceedings deemed to be material as of September 30, 2016.

Item 1A. Risk Factors

There have been no material changes in the Risk Factors previously disclosed in Item 1A of the Company’s annual report on Form 10-K for the period ended December 31, 2015.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company obtained approval for and initiated a third buyback plan on October 15, 2014. Under this plan, the Company was authorized to repurchase up to 2,566,283 shares, or 5% of the outstanding shares at the time the plan was approved and had a remaining authorization to purchase an additional 254,394 shares. On January 26, 2016, the Company’s Board of Directors approved a fourth share repurchase plan authorizing the Company to repurchase up to 2.5% of outstanding shares, or 1,248,536 shares. In connection with this authorization, the third share repurchase program was suspended and the remaining shares are no longer available for repurchase. There were no purchases of equity securities during the third quarter of 2016 made by or on behalf of the Company or any “affiliated purchaser”, as defined by Section 240.10b-18(a)(3) of the Securities and Exchange Act of 1934, of shares of the Company’s common stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6.

2.1	Amended and Restated Plan of Conversion and Reorganization (incorporated herein by reference to Exhibit 2.1 to the Registration Statement filed on the Form S-1 for Rockville Financial New, Inc. on September 16, 2010)
2.2	Agreement and Plan of Merger by and between Rockville Financial, Inc. and United Financial Bancorp, Inc. (incorporated herein by reference to Exhibit 99.1 to the Current Report on the Company’s Form 8-K filed on November 15, 2013)
3.1	Certificate of Incorporation of United Financial Bancorp, Inc. (incorporated herein by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on May 1, 2014)
3.1.1	Amendment to Certificate of Incorporation increasing authorized common stock from 60,000,000 shares to 120,000,000 shares (incorporated herein by reference to Exhibit B in the Definitive Proxy Statement filed on March 23, 2015)
3.2	The Bylaws, as amended and restated, (incorporated herein by reference to Exhibit 3.2 to the Current Report on the Company’s Form 8-K filed on May 1, 2014)
10.5	Supplemental Savings and Retirement Plan of United Bank as amended and restated effective December 31, 2007 (incorporated herein by reference to Exhibit 10.5 to the Current Report on Form 8-K filed for Rockville Financial, Inc. (now United Financial Bancorp, Inc.) filed on December 18, 2007)
10.6	United Bank Officer Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.2.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 filed on March 31, 2006 (File No. 000-52139))
10.9	United Bank Supplemental Executive Retirement Plan as amended and restated effective December 31, 2007 (incorporated herein by reference to Exhibit 10.9 to the Current Report on Form 8-K filed for Rockville Financial, Inc. (now United Financial Bancorp, Inc.) filed on December 18, 2007)
10.10	Rockville Financial , Inc. 2006 Stock Incentive Award Plan (incorporated herein by reference to Appendix B in the Definitive Proxy Statement on Form 14A for Rockville Financial, Inc. (now United Financial Bancorp, Inc.) filed on July 3, 2006 (File No. 000-51239))
10.11.2	Supplemental Executive Retirement Agreement of United Bank for William H.W. Crawford, IV effective December 26, 2012 (incorporated by reference to Exhibit 10.11.2 to the Current Report on the Company’s Form 8-K filed on January 2, 2013)
10.11.4	On November 14, 2013, United Financial Bancorp, Inc. and its subsidiary United Bank entered into an Employment Agreement with William H.W. Crawford, IV effective on the date of the consummation of the Merger (incorporated by reference herein to Exhibit 10.11.4 to the Company’s Form 8-K filed on November 20, 2013)
10.12	Supplemental Executive Retirement Agreement of United Bank for Mark A. Kucia effective December 6, 2010 (incorporated by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 filed on March 10, 2011)

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10.12.1	Employment Agreement as amended and restated by and among United Financial Bancorp, Inc., United Bank and Mark A. Kucia, effective January 1, 2016 (incorporated herein by reference to Exhibit 10.12.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed March 7, 2016)
10.14	Rockville Financial , Inc. 2012 Stock Incentive Award Plan (incorporated herein by reference to Appendix A in the Definitive Proxy Statement on Form 14A for Rockville Financial, Inc. (now United Financial Bancorp, Inc.) filed on April 4, 2012 (File No. 0001193125-12-149948))
10.17	Employment Agreement as amended and restated by and among United Financial Bancorp, Inc., United Bank and Eric R. Newell, effective January 1, 2016 (incorporated herein by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed March 7, 2016)
10.18	Employment Agreement as amended and restated by and among United Financial Bancorp, Inc., United Bank and David Paulson, effective January 1, 2016 (incorporated herein by reference to Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed March 7, 2016)
10.19	Form of United Financial Bancorp, Inc. Executive Change in Control Severance Plan, effective January 21, 2015 (incorporated herein by reference to Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 9, 2015)
10.20	United Financial Bancorp, Inc. 2015 Omnibus Stock Incentive Plan (incorporated herein by reference to Appendix A in the Definitive Proxy Statement on Form 14A for the Company filed September 8, 2015)
10.21	Employment Agreement as amended and restated by and among United Financial Bancorp, Inc., United Bank and Brandon C. Lorey, effective January 1, 2016 (incorporated herein by reference to Exhibit 10.21 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 filed August 5, 2016)
14.0	United Financial Bancorp, Inc., United Bank, Standards of Conduct Policy Employees (incorporated herein by reference to Exhibit 14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 9, 2015)
21.	Subsidiaries of United Financial Bancorp, Inc. and United Bank (incorporated by reference to Exhibit 21. to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed on March 7, 2016)
31.1	Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer filed herewith
32.0	Section 1350 Certification of the Chief Executive Officer and Chief Financial Officer attached hereto
101.	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Net Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Unaudited Consolidated Financial Statements filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

United Financial Bancorp, Inc.

By:	/s/ Eric R. Newell
	Eric R. Newell
	EVP, Chief Financial Officer and Treasurer

Date: November 4, 2016

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EX-31.1

Exhibit 31.1

Certification

I, William H.W. Crawford, IV, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Financial Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting

November 4, 2016	/s/ William H.W. Crawford, IV
	William H.W. Crawford, IV Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Eric R. Newell, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Financial Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 4, 2016	/s/ Eric R. Newell
	Eric R. Newell  EVP, Chief Financial Officer and Treasurer

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADDED BY

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of United Financial Bancorp, Inc. (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2016, as filed with the Securities and Exchange Commission (the “Report”), I hereby certify pursuant to 18 U.S.C. Section 1350, as added by Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in this Report fairly presents, in all material respects, the consolidated financial condition and results of the Company as of and for the period covered by this Report.

By:	/s/ William H.W. Crawford, IV
	William H.W. Crawford, IV
	Chief Executive Officer
	November 4, 2016
By:	/s/ Eric R. Newell
	Eric R. Newell
	EVP, Chief Financial Officer and Treasurer
	November 4, 2016

The forgoing certification is being furnished solely pursuant to 12 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

Note: A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to United Financial Bancorp, Inc. and will be retained by United Financial Bancorp, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	UBNK
Entity Registrant Name	UNITED FINANCIAL BANCORP, INC.
Entity Central Index Key	0001501364
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		50,512,092

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Consolidated Statements of Condition (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 51,951	$ 47,602
Short-term investments	162,295	47,574
Total cash and cash equivalents	214,246	95,176
Available-for-sale securities - at fair value	1,052,439	1,059,169
Held-to-maturity securities - at amortized cost	14,162	14,565
Loans held for sale	83,321	10,136
Loans receivable (net of allowance for loan losses of $41,080 at September 30, 2016 and $33,887 at December 31, 2015)	4,689,834	4,587,062
Federal Home Loan Bank of Boston stock	52,847	51,196
Accrued interest receivable	17,888	15,740
Deferred tax asset, net	32,529	33,094
Premises and equipment, net	52,520	54,779
Goodwill	115,281	115,281
Core deposit intangible	6,287	7,506
Cash surrender value of bank-owned life insurance	126,948	125,101
Other real estate owned	2,792	755
Other assets	83,761	58,981
Total assets	6,544,855	6,228,541
Deposits:
Non-interest-bearing	687,865	657,718
Interest-bearing	4,007,606	3,779,353
Total deposits	4,695,471	4,437,071
Mortgagors’ and investors’ escrow accounts	9,045	13,526
Advances from the Federal Home Loan Bank	977,483	949,003
Other borrowings	125,399	150,017
Accrued expenses and other liabilities	81,217	53,403
Total liabilities	5,888,615	5,603,020
Stockholders’ equity:
Preferred stock (no par value; 2,000,000 authorized; no shares issued)	0	0
Common stock (no par value; authorized 120,000,000 and 60,000,000 shares; 50,462,946 and 49,941,428 shares issued and outstanding, at September 30, 2016 and December 31, 2015, respectively)	526,404	519,587
Additional paid-in capital	10,124	10,722
Unearned compensation - ESOP	(5,751)	(5,922)
Retained earnings	129,076	112,013
Accumulated other comprehensive loss, net of tax	(3,613)	(10,879)
Total stockholders’ equity	656,240	625,521
Total liabilities and stockholders’ equity	$ 6,544,855	$ 6,228,541

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Consolidated Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for loan losses, loans receivable	$ 41,080	$ 33,887
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	120,000,000	60,000,000
Common stock, shares issued (in shares)	50,462,946	49,941,428
Common stock, shares outstanding (in shares)	50,462,946	49,941,428

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Consolidated Statements of Net Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest and dividend income:
Loans	$ 45,331	$ 41,878	$ 134,359	$ 123,658
Securities - taxable interest	4,808	4,907	14,830	14,947
Securities - non-taxable interest	2,140	2,080	6,201	6,353
Securities - dividends	990	708	2,934	1,554
Interest-bearing deposits	67	52	207	119
Total interest and dividend income	53,336	49,625	158,531	146,631
Interest expense:
Deposits	6,279	5,319	18,927	15,643
Borrowed funds	4,028	2,663	11,677	7,099
Total interest expense	10,307	7,982	30,604	22,742
Net interest income	43,029	41,643	127,927	123,889
Provision for loan losses	3,766	3,252	10,078	9,225
Net interest income after provision for loan losses	39,263	38,391	117,849	114,664
Non-interest income:
Service charges and fees	5,726	5,960	14,679	15,434
Gain (loss) on sales of securities, net	48	(59)	1,867	639
Income from mortgage banking activities	2,198	2,257	5,389	7,618
Bank-owned life insurance income	899	893	2,531	2,557
Net loss on limited partnership investments	(850)	(991)	(3,290)	(2,337)
Other income (loss)	(132)	(242)	(28)	113
Total non-interest income	7,889	7,818	21,148	24,024
Non-interest expense:
Salaries and employee benefits	18,301	16,994	56,105	50,161
Service bureau fees	1,960	1,828	6,219	5,114
Occupancy and equipment	3,580	3,343	11,330	11,600
Professional fees	1,125	1,581	2,893	3,280
Marketing and promotions	656	587	2,271	1,843
FDIC insurance assessments	819	750	2,800	2,651
Core deposit intangible amortization	385	433	1,219	1,363
FHLBB prepayment penalties	0	0	1,454	0
Other	5,410	6,360	16,389	16,878
Total non-interest expense	32,236	31,876	100,680	92,890
Income before income taxes	14,916	14,333	38,317	45,798
Provision for income taxes	757	952	3,206	6,060
Net income	$ 14,159	$ 13,381	$ 35,111	$ 39,738
Net income per share:
Basic (in usd per share)	$ 0.28	$ 0.27	$ 0.71	$ 0.81
Diluted (in usd per share)	$ 0.28	$ 0.27	$ 0.70	$ 0.81
Weighted-average shares outstanding:
Basic (in shares)	49,800,105	48,931,203	49,617,136	48,829,193
Diluted (in shares)	50,141,175	49,429,809	49,917,049	49,339,271

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income		$ 14,159	$ 13,381	$ 35,111	$ 39,738
Securities available for sale:
Unrealized holding gains (losses)		(274)	7,771	23,253	2,719
Reclassification adjustment for losses (gains) realized in operations	[1]	(48)	59	(1,867)	(639)
Net unrealized gains (losses)		(322)	7,830	21,386	2,080
Tax effect - benefit (expense)		120	(2,820)	(7,691)	(756)
Net-of-tax amount - securities available for sale		(202)	5,010	13,695	1,324
Interest rate swaps designated as cash flow hedges:
Unrealized gains (losses)		2,854	(4,898)	(8,582)	(5,533)
Reclassification adjustment for expense (benefit) realized in operations	[2]	(664)	0	(1,844)	12
Net unrealized gains (losses)		2,190	(4,898)	(10,426)	(5,521)
Tax effect - benefit (expense)		(788)	1,764	3,757	1,989
Net-of-tax amount - interest rate swaps		1,402	(3,134)	(6,669)	(3,532)
Pension and Post-retirement plans:
Reclassification adjustment for prior service costs recognized in net periodic benefit cost	[3]	2	2	5	5
Reclassification adjustment for losses recognized in net periodic benefit cost	[4]	123	191	371	570
Change in losses and prior service costs		125	193	376	575
Tax effect - expense		(46)	(74)	(136)	(65)
Net-of-tax amount - pension and post-retirement plans		79	119	240	510
Total other comprehensive income (loss)		1,279	1,995	7,266	(1,698)
Comprehensive income		$ 15,438	$ 15,376	$ 42,377	$ 38,040

[1] Amounts are included in gain (loss) on sales of securities, net in the unaudited Consolidated Statements of Net Income. Income tax (expense) benefit associated with the reclassification adjustment was $(17) and $21 for the three months ended September 30, 2016 and 2015, respectively. Income tax expense associated with the reclassification adjustment was $(673) and $(230) for the nine months ended September 30, 2016 and 2015, respectively.

[2] Amounts are included in borrowed funds expense in the unaudited Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for the three months ended September 30, 2016 was $239. Income tax expense (benefit) associated with the reclassification adjustment for the nine months ended September 30, 2016 and 2015 was $664 and $(4), respectively.

[3] Amounts are included in salaries and employee benefits expense in the unaudited Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for prior service costs for the three and nine months ended September 30, 2016 and 2015 was minimal.

[4] Amounts are included in salaries and employee benefits expense in the unaudited Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment of the losses recognized in net periodic benefit cost for the three months ended September 30, 2016 and 2015 was $44 and $69, respectively. Income tax benefit associated with the reclassification adjustment for losses recognized in net periodic benefit cost for the nine months ended September 30, 2016 and 2015 was $134 and $205, respectively.

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Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Income tax (expense) benefit associated with the reclassification adjustment realized in net income for sale of securities	$ (17)	$ 21	$ (673)	$ (230)
Income tax expense (benefit) associated with the reclassification adjustment for expense realized in net income for interest rate swaps	239		664	(4)
Income tax benefit associated with the reclassification adjustment for losses (gains) recognized in net periodic benefit cost	$ 44	$ 69	$ 134	$ 205

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Unearned Compensation - ESOP	Retained Earnings	Accumulated Other Comprehensive Loss
Balance (in shares) at Dec. 31, 2014		49,537,700
Balance at Dec. 31, 2014	$ 602,408	$ 514,189	$ 16,007	$ (6,150)	$ 84,852	$ (6,490)
Increase (Decrease) in Stockholders' Equity
Comprehensive income	38,040				39,738	(1,698)
Common stock repurchased (in shares)		(377,700)
Common stock repurchased	(5,171)	$ (5,171)
Stock-based compensation expense	689		689
ESOP shares released or committed to be released	222		51	171
Shares issued for stock options exercised and SARs (in shares)		349,387
Shares issued for stock options exercised and SARs	2,610	$ 4,657	(2,047)
Shares issued for restricted stock grants (in shares)		27,330
Shares issued for restricted stock grants	0	$ 340	(340)
Cancellation of shares for tax withholding (in shares)		(18,044)
Cancellation of shares for tax withholding	(251)	$ (184)	(67)
Tax benefit from stock-based awards	(293)		(293)
Dividends paid ($0.36 and $0.34 per common share)	(16,802)				(16,802)
Forfeited unvested restricted stock (in shares)		(1,135)
Forfeited unvested restricted stock	0
Balance (in shares) at Sep. 30, 2015		49,517,538
Balance at Sep. 30, 2015	$ 621,452	$ 513,831	14,000	(5,979)	107,788	(8,188)
Balance (in shares) at Dec. 31, 2015	49,941,428	49,941,428
Balance at Dec. 31, 2015	$ 625,521	$ 519,587	10,722	(5,922)	112,013	(10,879)
Increase (Decrease) in Stockholders' Equity
Comprehensive income	42,377			0	35,111	7,266
Stock-based compensation expense	1,543		1,543
ESOP shares released or committed to be released	$ 216		45	171
Shares issued for stock options exercised and SARs (in shares)	506,854	489,361
Shares issued for stock options exercised and SARs	$ 4,464	$ 6,357	(1,893)
Shares issued for restricted stock grants (in shares)		39,328
Shares issued for restricted stock grants	0	$ 460	(460)
Cancellation of shares for tax withholding (in shares)		(7,171)
Cancellation of shares for tax withholding	(90)	$ 0	(90)
Tax benefit from stock-based awards	257		257
Dividends paid ($0.36 and $0.34 per common share)	$ (18,048)				(18,048)
Balance (in shares) at Sep. 30, 2016	50,462,946	50,462,946
Balance at Sep. 30, 2016	$ 656,240	$ 526,404	$ 10,124	$ (5,751)	$ 129,076	$ (3,613)

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Retained Earnings
Dividends paid per common share (in usd per share)	$ 0.36	$ 0.34

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 35,111	$ 39,738
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of premiums and discounts on investments, net	4,163	3,934
Accretion of intangible assets and purchase accounting marks	(1,006)	(9,034)
Amortization of subordinated debt issuance costs	95	95
Stock-based compensation expense	1,543	689
ESOP expense	216	222
Loss on extinguishment of debt	1,454	0
Tax benefit from stock-based awards	(257)	293
Provision for loan losses	10,078	9,225
Gain on sales of securities, net	(1,867)	(639)
Loans originated for sale	(355,361)	(290,795)
Principal balance of loans sold	282,176	285,504
Increase in mortgage servicing asset	(22)	(1,266)
Gain on sales of other real estate owned	(136)	(166)
Net gain in mortgage banking fair value adjustments	(2,144)	(836)
(Gain) loss on disposal of equipment	168	193
Write-downs of other real estate owned	4	118
Depreciation and amortization	4,108	3,997
Net loss on limited partnership investments	3,290	2,337
Deferred income tax (benefit) expense	(3,502)	3,447
Increase in cash surrender value of bank-owned life insurance	(2,531)	(2,557)
Net change in:
Deferred loan fees and premiums	(3,195)	(2,240)
Accrued interest receivable	(2,148)	(1,265)
Other assets	(41,393)	(16,834)
Accrued expenses and other liabilities	25,281	11,002
Net cash provided by (used in) operating activities	(45,875)	35,162
Cash flows from investing activities:
Proceeds from sales of available-for-sale securities	241,452	195,335
Proceeds from calls and maturities of available-for-sale securities	12,491	16,655
Principal payments on available-for-sale securities	66,210	67,277
Principal payments on held-to-maturity securities	380	630
Purchases of available-for-sale securities	(288,390)	(308,253)
Redemption of FHLBB stock	3,392	0
Purchase of FHLBB stock	(5,043)	(8,864)
Proceeds from sale of other real estate owned	1,237	2,232
Purchases of loans	(92,162)	(11,348)
Loan originations, net of principal repayments	(18,656)	(297,971)
Proceeds from BOLI death benefit	689	0
Purchases of premises and equipment	(1,879)	(3,186)
Proceeds from sale of equipment	17	192
Net cash used in investing activities	(80,262)	(347,301)
Cash flows from financing activities:
Net increase in non-interest-bearing deposits	30,147	20,176
Net increase in interest-bearing deposits	229,329	210,249
Net increase (decrease) in mortgagors’ and investors’ escrow accounts	(4,481)	(4,896)
Net increase in short-term FHLBB advances	54,800	57,200
Repayments of long-term FHLBB advances	(13,955)	(6,977)
Prepayments of long-term FHLBB borrowings and penalty	(37,796)	0
Proceeds from long-term FHLBB advances	25,341	116,800
Net change in other borrowings	(24,761)	(49,148)
Proceeds from exercise of stock options and SARs	4,464	2,610
Common stock repurchased	0	(5,171)
Cancellation of shares for tax withholding	(90)	(251)
Tax benefit from stock-based awards	257	(293)
Cash dividend paid on common stock	(18,048)	(16,802)
Net cash provided by financing activities	245,207	323,497
Net increase in cash and cash equivalents	119,070	11,358
Cash and cash equivalents, beginning of period	95,176	86,952
Cash and cash equivalents, end of period	214,246	98,310
Cash paid (refunded) during the year for:
Interest	31,705	25,757
Income taxes, net	3,300	(6,719)
Transfer of loans to other real estate owned	3,163	318
Decrease in due to broker, investment purchases	3,009	(1,105)
Decrease in due to broker, common stock buyback	$ 0	$ (523)

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1. Summary of Significant Accounting Policies

Nature of Operations

United Financial Bancorp, Inc. (the “Company” or “United”) is headquartered in Glastonbury, Connecticut, and through United Bank (the “Bank”) and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and Massachusetts through 53 banking offices, its commercial loan production offices, its mortgage loan production offices, 63 ATMs, telephone banking, mobile banking and online banking (www.bankatunited.com).

Basis of Presentation

The consolidated interim financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Northeast Financial Advisors, Inc., United Bank Investment Sub, Inc., UCB Securities, Inc. II, UB Properties, LLC, United Financial Realty HC, Inc. and United Financial Business Trust I. All significant intercompany transactions have been eliminated.

The consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included in the interim unaudited consolidated financial statements. Interim results are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any future period. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s 2015 audited consolidated financial statements and notes thereto included in United Financial Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended December 31, 2015.

Common Share Repurchases

The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances.

Reclassifications

Certain reclassifications have been made in prior periods’ consolidated financial statements to conform to the 2016 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results in the future could vary from the amounts derived from management’s estimates and assumptions. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the evaluation of securities for other-than-temporary impairment, the valuation of derivative instruments and hedging activities, and goodwill impairment valuations.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Recent Accounting Pronouncements

Note 2. Recent Accounting Pronouncements

Statement of Cash Flows

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to address eight specific cash flow issues with the objective of reducing diversity in practice in how certain transactions are classified in the statement of cash flows. The issues identified within the ASU include: 1) debt prepayments and extinguishment costs, 2) settlement of zero-coupon debt, 3) settlement of contingent consideration, 4) insurance proceeds, 5) settlement of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) policies, 6) distributions from equity method investees, 7) beneficial interests in securitization transactions, and 8) receipts and payments with aspects of more than one class of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the disclosures in the Company’s Statements of Cash Flows, but does not expect this ASU to have a material impact on the Company’s financial statements.

Financial Instruments

In June 2016, FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of US GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are US Securities and Exchange Commission filers, such as the Company, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This ASU potentially could have a significant impact on the Company’s allowance for loan losses, however, no assessment of the potential impact has been determined. Efforts are in process to quantify and prepare for the ASU’s effective date.

Compensation

In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting as part of the FASB’s simplification initiative aimed at reducing complexity in accounting standards. This ASU simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including; accounting for income taxes; classification of excess tax benefits on the statement of cash flows; forfeitures; statutory tax withholding requirements; classification of awards as either equity or liabilities and; classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. This ASU is not expected to have a significant impact on the Company’s Financial Statements.

Derivatives and Hedging

In March 2016, the FASB issued ASU No. 2016-06 Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments as part of the consensus of the Emerging Issues Task Force. This ASU addresses inconsistent interpretations of whether an event that triggers an entity’s ability to exercise the embedded contingent option must be indexed to interest rates or credit risk for that option to qualify as clearly and closely related. The ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815-15-25-42 as amended by the ASU. The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. For public business entities, the amendments in the ASU are effective for annual reporting periods, and interim period therein, beginning after December 15, 2016. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU No.  2016-02 Leases (Topic 842). This ASU consists of three sections: Section A- Leases: Amendments to the FASB Accounting Standards Codification; Section B - Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification; and Section C - Background Information and Basis for Conclusions. This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts with Customers. The new leases standard represents a whole-sale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e. calendar periods beginning on January 1, 2019), and interim periods therein. For all other entities, the ASU will be effective for annual periods beginning after December 15, 2019 (i.e. calendar periods beginning on January 1, 2020), and interim periods thereafter. Early adoption will be permitted for all entities. This ASU is not expected to have a significant impact on the Company’s financial statements.

Financial Instruments

In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures and limited liability companies, at fair value through net income. This new requirement does not apply to investments that qualify for the equity method of accounting or to those that result in consolidation of these investments. The ASU supersedes current guidance and no longer requires equity securities with readily determinable fair value to be classified into categories (i.e. trading or available for sale).  The ASU clarifies that when identifying observable price changes, an entity should consider relevant transactions “that are known or can reasonably be known“ and that an entity is not required to spend undue cost and effort to identify such transactions. The ASU also indicates that an entity should consider a security’s rights and obligations, such as voting rights, distribution rights and preferences, and conversion features, when evaluating whether the security issued by the same issuer is similar to the equity security held by the entity. The ASU further provides for the elimination of disclosure requirements related to financial instruments measured at amortized cost. For public business entities, the new standard will require disclosure of fair value using the exit price notion for all financial instruments measured at amortized cost.  Pursuant to the ASU, recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all entities, the ASU permits early adoption of the instrument-specific credit risk provision. Additionally, for non-public entities, it permits early adoption of the exemption provisions related to disclosure of fair value information about financial instruments measured at amortized cost.

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Securities

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Securities

Note 3. Securities

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities at September 30, 2016 and December 31, 2015 are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
September 30, 2016
Available for sale:
Debt securities:
Government-sponsored residential mortgage-backed securities	$	161,388	$	3,280	$	—		$	164,668
Government-sponsored residential collateralized debt obligations	195,056		2,841		(67		)	197,830
Government-sponsored commercial mortgage-backed securities	27,107		713		—			27,820
Government-sponsored commercial collateralized debt obligations	176,706		3,020		—			179,726
Asset-backed securities	159,195		2,067		(905		)	160,357
Corporate debt securities	59,848		1,953		(1,591		)	60,210
Obligations of states and political subdivisions	221,367		4,522		(2,033		)	223,856
Total debt securities	1,000,667		18,396		(4,596		)	1,014,467
Marketable equity securities, by sector:
Banks	33,087		1,589		—			34,676
Industrial	109		55		—			164
Mutual funds	2,880		64		(2		)	2,942
Oil and gas	131		59		—			190
Total marketable equity securities	36,207		1,767		(2		)	37,972
Total available-for-sale securities	$	1,036,874	$	20,163	$	(4,598	)	$	1,052,439
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,331	$	1,199	$	(14	)	$	13,516
Government-sponsored residential mortgage-backed securities	1,831		222		—			2,053
Total held-to-maturity securities	$	14,162	$	1,421	$	(14	)	$	15,569

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2015
Available for sale:
Debt securities:
U.S. Government and government-sponsored enterprise obligations	$	10,159	$	13	$	(83	)	$	10,089
Government-sponsored residential mortgage-backed securities	146,434		731		(1,304		)	145,861
Government-sponsored residential collateralized debt obligations	287,515		855		(1,403		)	286,967
Government-sponsored commercial mortgage-backed securities	21,144		21		(200		)	20,965
Government-sponsored commercial collateralized debt obligations	128,617		626		(271		)	128,972
Asset-backed securities	162,895		43		(3,037		)	159,901
Corporate debt securities	62,356		91		(2,487		)	59,960
Obligations of states and political subdivisions	201,217		1,561		(1,663		)	201,115
Total debt securities	1,020,337		3,941		(10,448		)	1,013,830
Marketable equity securities, by sector:
Banks	41,558		1,099		(544		)	42,113
Industrial	109		34		—			143
Mutual funds	2,854		65		(4		)	2,915
Oil and gas	132		36		—			168
Total marketable equity securities	44,653		1,234		(548		)	45,339
Total available-for-sale securities	$	1,064,990	$	5,175	$	(10,996	)	$	1,059,169
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,360	$	884	$	(10	)	$	13,234
Government-sponsored residential mortgage-backed securities	2,205		244		—			2,449
Total held-to-maturity securities	$	14,565	$	1,128	$	(10	)	$	15,683

At September 30, 2016, the net unrealized gain on securities available for sale of $15.6 million, net of an income tax expense of $5.6 million, or $10.0 million, was included in accumulated other comprehensive loss in the unaudited Consolidated Statement of Condition.

The amortized cost and fair value of debt securities at September 30, 2016 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because some securities may be called or repaid without any penalties. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary.

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturity:
Within 1 year	$	175	$	176	$	—	$	—
After 1 year through 5 years	16,118		16,537		1,184		1,229
After 5 years through 10 years	47,906		49,018		—		—
After 10 years	217,016		218,335		11,147		12,287
	281,215		284,066		12,331		13,516
Government-sponsored residential mortgage-backed securities	161,388		164,668		1,831		2,053
Government-sponsored residential collateralized debt obligations	195,056		197,830		—		—
Government-sponsored commercial mortgage-backed securities	27,107		27,820		—		—
Government-sponsored commercial collateralized debt obligations	176,706		179,726		—		—
Asset-backed securities	159,195		160,357		—		—
Total debt securities	$	1,000,667	$	1,014,467	$	14,162	$	15,569

At September 30, 2016, the Company had 114 securities with a fair value of $549.3 million pledged as derivative collateral, collateral for reverse repurchase borrowings and collateral for Federal Home Loan Bank of Boston (“FHLBB”) borrowing capacity. At December 31, 2015, the Company had 114 securities with a fair value of $446.0 million pledged as derivative collateral, collateral for reverse repurchase borrowings, and collateral for FHLBB borrowing capacity.

For the three months ended September 30, 2016 and 2015, gross gains of $325,000 and $185,000 were realized on the sales of available-for-sale securities for both periods, respectively. There were gross losses of $277,000 and $244,000 realized on the sale of available-for-sale securities for the three months ended September 30, 2016 and 2015, respectively. For the nine months ended September 30, 2016 and 2015, gross gains of $2.6 million and $2.4 million, respectively, were realized on the sales of available-for-sale securities. There were gross losses of $743,000 and $1.8 million realized on the sale of available-for-sale securities for the nine months ended September 30, 2016 and 2015, respectively.

As of September 30, 2016, the Company did not have any exposure to private-label mortgage-backed securities. The Company also did not own any single security with an aggregate book value in excess of 10% of the Company’s stockholders’ equity.

As of September 30, 2016, the fair value of the obligations of states and political subdivisions portfolio was $237.4 million, with no significant geographic or issuer exposure concentrations. Of the total revenue and general obligations of $237.4 million, $105.2 million were representative of general obligation bonds for which $67.8 million are general obligations of political subdivisions of the respective state, rather than general obligations of the state itself. 

The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of September 30, 2016 and December 31, 2015:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
September 30, 2016
Available for sale:
Debt Securities:
Government-sponsored residential collateralized debt obligations	$	6,821	$	(25	)	$	6,929	$	(42	)	$	13,750	$	(67	)
Asset-backed securities	1,207		(25		)	26,357		(880		)	27,564		(905		)
Corporate debt securities	—		—			3,165		(1,591		)	3,165		(1,591		)
Obligations of states and political subdivisions	47,552		(913		)	44,100		(1,120		)	91,652		(2,033		)
Total debt securities	55,580		(963		)	80,551		(3,633		)	136,131		(4,596		)
Marketable equity securities	—		—			95		(2		)	95		(2		)
Total available-for-sale securities	$	55,580	$	(963	)	$	80,646	$	(3,635	)	$	136,226	$	(4,598	)
Held to Maturity:
Debt Securities:
Obligations of states and political subdivisions	$	1,093	$	(14	)	$	—	$	—		$	1,093	$	(14	)
Total held to maturity securities	$	1,093	$	(14	)	$	—	$	—		$	1,093	$	(14	)
December 31, 2015
Available for sale:
Debt Securities:
U.S. Government and government-sponsored enterprise obligations	$	4,867	$	(66	)	$	4,977	$	(17	)	$	9,844	$	(83	)
Government-sponsored residential mortgage-backed securities	107,142		(1,183		)	7,195		(121		)	114,337		(1,304		)
Government-sponsored residential collateralized debt obligations	152,278		(1,357		)	3,506		(46		)	155,784		(1,403		)
Government-sponsored commercial mortgage-backed securities	16,207		(200		)	—		—			16,207		(200		)
Government-sponsored commercial collateralized debt obligations	38,151		(221		)	3,496		(50		)	41,647		(271		)
Asset-backed securities	93,723		(1,233		)	49,462		(1,804		)	143,185		(3,037		)
Corporate debt securities	42,102		(797		)	6,720		(1,690		)	48,822		(2,487		)
Obligations of states and political subdivisions	47,878		(946		)	42,685		(717		)	90,563		(1,663		)
Total debt securities	502,348		(6,003		)	118,041		(4,445		)	620,389		(10,448		)
Marketable equity securities	18,449		(287		)	6,176		(261		)	24,625		(548		)
Total available-for-sale securities	$	520,797	$	(6,290	)	$	124,217	$	(4,706	)	$	645,014	$	(10,996	)
Held to Maturity:
Debt Securities:
Obligations of states and political subdivisions	$	1,104	$	(10	)	$	—	$	—		$	1,104	$	(10	)
Total held to maturity securities	$	1,104	$	(10	)	$	—	$	—		$	1,104	$	(10	)

Of the available-for-sale securities summarized above as of September 30, 2016, 32 issues had unrealized losses equaling 1.7% of the amortized cost basis for less than twelve months and 62 issues had an unrealized loss of 4.3% of the amortized cost basis for twelve months or more. There was one unrealized loss of $14,000 on a debt security held to maturity at September 30, 2016. As of December 31, 2015, 146 issues had unrealized losses equaling 1.2% of the cost basis for less than twelve months and 96 issues had unrealized losses equaling 3.7% of the amortized cost basis for twelve months or more.

Management believes that no individual unrealized loss as of September 30, 2016 represents an other-than-temporary impairment, based on its detailed quarterly review of the securities portfolio. Among other things, the other-than-temporary impairment review of the investment securities portfolio focuses on the combined factors of percentage and length of time by which an issue is below book value as well as consideration of issuer specific information (present value of cash flows expected to be collected, issuer rating changes and trends, credit worthiness and review of underlying collateral), broad market details and the Company’s intent to sell the security or if it is more likely than not that the Company will be required to sell the debt security before recovering its cost. The Company also considers whether the depreciation is due to interest rates, market changes, or credit risk.

The following paragraphs outline the Company’s position related to unrealized losses in its investment securities portfolio at September 30, 2016.

Government-sponsored residential collateralized debt obligations. The unrealized losses on the Company’s government-sponsored residential collateralized debt obligations were caused by the continued pickup of prepayment speeds given the overall drop in the government curve over the period, which encouraged further refinancing relative to original purchase expectations. The Company monitors this risk, and therefore, strives to minimize premiums within this security class. The Company does not expect these securities to settle at a price less than the par value of the securities.

Asset-backed securities. The unrealized losses on the Company’s asset-backed securities were largely driven by increases in the spreads of the respective sectors’ asset classes over comparable securities relative to the time of purchase. The majority of these securities have resetting coupons that adjust on a quarterly basis and the market credit and liquidity spreads on similar securities have increased. Based on the credit profiles and asset qualities of the individual securities, management does not believe that the securities have suffered from any credit related losses at this time. The Company does not expect these securities to settle at a price less than the par value of the securities. 

Corporate debt securities. The unrealized losses on corporate debt securities is primarily related to one pooled trust preferred security, Preferred Term Security XXVIII, Ltd (“PRETSL XXVIII”). The unrealized loss on this security is caused by the low interest rate environment, as the security reprices quarterly to the three month LIBOR and market spreads on similar newly issued securities have increased. No loss of principal is projected. Based on the existing credit profile, management does not believe that this security has suffered from any credit related losses. The unrealized loss on the remainder of the corporate credit portfolio has been driven primarily by overall wider credit spreads on certain securities relative to the time of purchase.

Obligations of states and political subdivisions. The unrealized loss on obligations of states and political subdivisions relates to several securities, with no geographic concentration. The unrealized loss was largely due to a shift in the spreads on the short end of the municipal spread curve relative to the spreads on the bonds at the time of purchase.

Marketable equity securities. The unrealized loss on marketable equity securities largely pertains to widening credit spreads and higher rates for certain affected securities relative to their respective purchase.

The Company will continue to review its entire portfolio for other-than-temporarily impaired securities.

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Loans Receivable and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Loans Receivable and Allowance for Loan Losses

Note 4. Loans Receivable and Allowance for Loan Losses

A summary of the Company’s loan portfolio is as follows:

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
	(Dollars in thousands)
Commercial real estate loans:
Owner-occupied	$	392,168		8.3	%	$	322,084		7.0	%
Investor non-owner occupied	1,702,701			36.1		1,673,248			36.3
Construction	90,380			1.9		129,922			2.8
Total commercial real estate loans	2,185,249			46.3		2,125,254			46.1
Commercial business loans	660,676			14.0		603,332			13.1
Consumer loans:
Residential real estate	1,129,079			23.9		1,179,915			25.6
Home equity	479,390			10.2		431,282			9.3
Residential construction	52,476			1.1		41,084			0.9
Other consumer	213,830			4.5		233,064			5.0
Total consumer loans	1,874,775			39.7		1,885,345			40.8
Total loans	4,720,700			100.0	%	4,613,931			100.0	%
Net deferred loan costs and premiums	10,214					7,018
Allowance for loan losses	(41,080		)			(33,887		)
Loans - net	$	4,689,834				$	4,587,062

Purchased Credit Impaired Loans

Purchased credit impaired loans (“PCI”) are accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). At September 30, 2016, the net recorded carrying amount of loans accounted for under ASC 310-30 was $4.7 million and the aggregate outstanding principal balance was $7.5 million.

The following table summarizes the activity in the the accretable yield balance for PCI loans for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Balance at beginning of period	$	(118	)	$	(570	)	$	(413	)	$	(1,587	)
Accretion	—			1			—			178
Reclassification to nonaccretable balance	—			42			232			882
Paid off	—			114			63			114
Balance at end of period	$	(118	)	$	(413	)	$	(118	)	$	(413	)

Reclassifications of $232,000 and $882,000 from the accretable balance to the nonaccretable balance occurred during the nine months ended September 30, 2016 and 2015, respectively, due to reductions in expected cash flows for the ASC 310-30 loans.

Allowance for Loan Losses

Management has established a methodology to determine the adequacy of the allowance for loan losses (“ALL”) that assesses the risks and losses inherent in the loan portfolio. The ALL is established as embedded losses are estimated to have occurred through the provisions for losses charged against operations and is maintained at a level that management considers adequate to absorb losses in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is inherently subjective and is based on past loan loss experience, known and inherent losses and size of the loan portfolios, an assessment of current economic and real estate market conditions, estimates of the current value of underlying collateral, review of regulatory authority examination reports and other relevant factors. An allowance is maintained for impaired loans to reflect the difference, if any, between the carrying value of the loan and the present value of the projected cash flows, observable fair value or collateral value. Loans are charged-off against the ALL when management believes that the uncollectibility of principal is confirmed. Any subsequent recoveries are credited to the ALL when received. In connection with the determination of the ALL, management obtains independent appraisals for significant properties, when considered necessary.

The ALL is maintained at a level estimated by management to provide for probable losses inherent within the loan portfolio. Probable losses are estimated based upon a quarterly review of the loan portfolio, which includes historic default and loss experience, specific problem loans, risk rating profile, economic conditions and other pertinent factors which, in management’s judgment, warrant current recognition in the loss estimation process.

The adequacy of the ALL is subject to considerable assumptions and judgment used in its determination. Therefore, actual losses could differ materially from management’s estimate if actual conditions differ significantly from the assumptions utilized. These conditions include economic factors in the Company’s market and nationally, industry trends and concentrations, real estate values and trends, and the financial condition and performance of individual borrowers.

The Company’s general practice is to identify problem credits early and recognize full or partial charge-offs as promptly as practicable when it is determined that the collection of loan principal is unlikely. The Company recognizes full or partial charge-offs on collateral dependent impaired loans when the collateral is deemed to be insufficient to support the carrying value of the loan. The Company does not recognize a recovery when an updated appraisal indicates a subsequent increase in value.

At September 30, 2016, the Company had a loan loss allowance of $41.1 million, or 0.87%, of total loans as compared to a loan loss allowance of $33.9 million, or 0.73%, of total loans at December 31, 2015. Management believes that the allowance for loan losses is adequate and consistent with asset quality indicators and that it represents the best estimate of probable losses inherent in the loan portfolio.

There are three components for the allowance for loan loss calculation:

General component

The general component of the ALL is based on historical loss experience adjusted for qualitative factors stratified by the loan segments. Management uses a rolling average of historical losses based on a three-year loss history to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels and trends in delinquencies; level and trend of charge-offs and recoveries; trends in volume and types of loans; effects of changes in risk selection and underwriting standards, changes in risk selection and underwriting standards; experience and depth of lending weighted average risk rating; and national and local economic trends and conditions. There were no changes in the Company’s methodology pertaining to the general component of the ALL during 2016.

The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows:

Residential real estate and home equity loans – The Bank establishes maximum loan-to-value and debt-to-income ratios and minimum credit scores as an integral component of the underwriting criteria. Loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the income and credit quality of the individual borrower. Within the qualitative allowance factors, national and local economic trends including unemployment rates and potential declines in property value, are key elements reviewed as a component of establishing the appropriate allocation. Overall economic conditions, unemployment rates and housing price trends will influence the underlying credit quality of these segments.

Owner-occupied and investor non-owner occupied commercial real estate (“Owner-occupied CRE” and “Investor CRE”) – Loans in these segments are primarily income-producing properties throughout Connecticut, western Massachusetts, and other select markets in the Northeast. The underlying cash flows generated by the properties could be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually, continually monitors the cash flows of these loans and performs stress testing.

Commercial and residential construction loans – Loans in this segment primarily include commercial real estate development and residential subdivision loans for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial business loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy and its effect on business profitability and cash flow could have an effect on the credit quality in this segment.

Other Consumer– Loans in this segment are secured or unsecured and repayment is dependent on the credit quality of the individual borrower. A significant portion of these loans are secured by boats.

For acquired loans, our ALL is estimated based upon our evaluation of the credit quality of the acquired loan portfolio or expected cash flows for the acquired PCI loans. To the extent that we experience a deterioration in credit quality resulting in a decrease in our expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loans, in excess of any existing purchase accounting discounts.

Allocated component

The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated costs to sell, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Residential and other consumer loans are evaluated for impairment if payments are 90 days or more delinquent. Updated property evaluations are obtained at time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

When a loan is determined to be impaired the Company makes a determination if the repayment of the obligation is collateral dependent. As a majority of impaired loans are collateralized by real estate, appraisals on the underlying value of the property securing the obligation are utilized in determining the specific impairment amount that is allocated to the loan as a component of the allowance calculation. If the loan is collateral dependent, an updated appraisal is obtained within a short period of time from the date the loan is determined to be impaired; typically no longer than 30 days for a residential property and 90 days for a commercial real estate property. The appraisal and the appraised value are reviewed for adequacy and then further discounted for estimated disposition costs and the period of time until resolution, in order to determine the impairment amount. The Company updates the appraised value at least annually and on a more frequent basis if current market factors indicate a potential change in valuation.

The majority of the Company’s loans are collateralized by real estate located in central and eastern Connecticut and western Massachusetts in addition to a portion of the commercial real estate loan portfolio located in the Northeast region of the United States. Accordingly, the collateral value of a substantial portion of the Company’s loan portfolio and real estate acquired through foreclosure is susceptible to changes in market conditions in these areas.

Unallocated component

An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.

Credit Quality Information

The Company utilizes a nine-grade internal loan rating system for residential and commercial real estate, construction, commercial and other consumer loans as follows:

Loans rated 1 – 5: Loans in these categories are considered “pass” rated loans with low to average risk.

Loans rated 6: Loans in this category are considered “special mention.” These loans reflect signs of potential weakness and are being closely monitored by management.

Loans rated 7: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor and there is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 8: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

At the time of loan origination, a risk rating based on this nine point grading system is assigned to each loan based on the loan officer’s assessment of risk. For residential real estate and other consumer loans, the Company considers factors such as updated FICO scores, employment status, home prices, loan to value and geography. Residential real estate and other consumer loans are pass rated unless their payment history reveals signs of deterioration, which may result in modifications to the original contractual terms. In situations which require modification to the loan terms, the internal loan grade will typically be reduced to substandard. More complex loans, such as commercial business loans and commercial real estate loans require that our internal credit area further evaluate the risk rating of the individual loan, with the credit area and Chief Credit Officer having final determination of the appropriate risk rating. These more complex loans and relationships receive an in-depth analysis and periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. The credit quality of the Company’s loan portfolio is reviewed by a third-party risk assessment firm throughout the year and by the Company’s internal credit management function. The internal and external analysis of the loan portfolio is utilized to identify and quantify loans with higher than normal risk. Loans having a higher risk profile are assigned a risk rating corresponding to the level of weakness identified in the loan. All loans risk rated Special Mention, Substandard or Doubtful are reviewed by management not less than on a quarterly basis to assess the level of risk and to ensure that appropriate actions are being taken to minimize potential loss exposure. Loans identified as being loss are normally fully charged off.

The following table presents the Company’s loans by risk rating at September 30, 2016 and December 31, 2015:

	Owner-Occupied CRE		Investor CRE		Construction		Commercial Business		Residential Real Estate		Home Equity		Other Consumer
	(In thousands)
September 30, 2016
Loans rated 1-5	$	363,114	$	1,656,821	$	140,314	$	629,212	$	1,111,502	$	473,948	$	213,507
Loans rated 6	7,219		16,552		254		6,518		1,286		—		—
Loans rated 7	21,835		29,328		2,288		24,946		16,291		5,441		323
Loans rated 8	—		—		—		—		—		—		—
Loans rated 9	—		—		—		—		—		1		—
	$	392,168	$	1,702,701	$	142,856	$	660,676	$	1,129,079	$	479,390	$	213,830
December 31, 2015
Loans rated 1-5	$	298,509	$	1,610,582	$	156,607	$	568,248	$	1,162,393	$	426,702	$	233,054
Loans rated 6	10,074		38,448		10,860		8,382		1,355		24		—
Loans rated 7	13,501		24,218		3,539		26,655		16,167		4,553		10
Loans rated 8	—		—		—		47		—		—		—
Loans rated 9	—		—		—		—		—		3		—
	$	322,084	$	1,673,248	$	171,006	$	603,332	$	1,179,915	$	431,282	$	233,064

Activity in the allowance for loan losses for the periods ended September 30, 2016 and 2015 were as follows:

	Owner-Occupied CRE			Investor CRE			Construction			Commercial Business			Residential Real Estate			Home Equity			Other Consumer			Unallocated		Total
	(In thousands)
Three Months Ended September 30, 2016
Balance, beginning of period	$	3,267		$	13,646		$	2,014		$	6,894		$	7,907		$	2,532		$	692		$	1,009	$	37,961
Provision (credit) for loan losses	72			1,082			(201		)	527			404			245			1,321			316		3,766
Loans charged off	—			(287		)	—			(188		)	(216		)	(81		)	(368		)	—		(1,140		)
Recoveries of loans previously charged off	—			302			3			146			—			15			27			—		493
Balance, end of period	$	3,339		$	14,743		$	1,816		$	7,379		$	8,095		$	2,711		$	1,672		$	1,325	$	41,080
Three Months Ended September 30, 2015
Balance, beginning of period	$	1,499		$	10,459		$	1,963		$	5,334		$	6,995		$	2,052		$	104		$	450	$	28,856
Provision (credit) for loan losses	169			1,222			(224		)	690			960			178			57			200		3,252
Loans charged off	—			(215		)	—			(840		)	(304		)	(67		)	(70		)	—		(1,496		)
Recoveries of loans previously charged off	—			—			—			121			75			—			24			—		220
Balance, end of period	$	1,668		$	11,466		$	1,739		$	5,305		$	7,726		$	2,163		$	115		$	650	$	30,832
Nine Months Ended September 30, 2016
Balance, beginning of period	$	2,174		$	12,859		$	1,895		$	5,827		$	7,801		$	2,391		$	146		$	794	$	33,887
Provision (credit) for loan losses	1,247			2,587			(82		)	1,814			974			692			2,315			531		10,078
Loans charged off	(138		)	(1,083		)	—			(744		)	(733		)	(438		)	(907		)	—		(4,043		)
Recoveries of loans previously charged off	56			380			3			482			53			66			118			—		1,158
Balance, end of period	$	3,339		$	14,743		$	1,816		$	7,379		$	8,095		$	2,711		$	1,672		$	1,325	$	41,080
Nine Months Ended September 30, 2015
Balance, beginning of period	$	1,281		$	8,137		$	1,470		$	5,808		$	5,998		$	1,929		$	75		$	111	$	24,809
Provision for loan losses	387			4,034			771			651			2,200			448			195			539		9,225
Loans charged off	—			(837		)	(502		)	(1,793		)	(708		)	(214		)	(239		)	—		(4,293		)
Recoveries of loans previously charged off	—			132			—			639			236			—			84			—		1,091
Balance, end of period	$	1,668		$	11,466		$	1,739		$	5,305		$	7,726		$	2,163		$	115		$	650	$	30,832

Further information pertaining to the allowance for loan losses and impaired loans at September 30, 2016 and December 31, 2015 follows:

	Owner-Occupied CRE		Investor CRE		Construction		Commercial Business		Residential Real Estate		Home Equity		Other Consumer		Unallocated		Total
	(In thousands)
September 30, 2016
Allowance related to loans individually evaluated and deemed impaired	$	—	$	—	$	—	$	761	$	70	$	—	$	391	$	—	$	1,222
Allowance related to loans collectively evaluated and not deemed impaired	3,339		14,743		1,816		6,402		8,025		2,711		1,281		1,325		39,642
Allowance related to loans acquired with deteriorated credit quality	—		—		—		216		—		—		—		—		216
Total allowance for loan losses	$	3,339	$	14,743	$	1,816	$	7,379	$	8,095	$	2,711	$	1,672	$	1,325	$	41,080
Loans deemed impaired	$	3,539	$	9,747	$	3,863	$	10,929	$	16,932	$	6,528	$	512	$	—	$	52,050
Loans not deemed impaired	388,629		1,691,653		138,993		648,438		1,112,147		472,862		211,208		—		4,663,930
Loans acquired with deteriorated credit quality	—		1,301		—		1,309		—		—		2,110		—		4,720
Total loans	$	392,168	$	1,702,701	$	142,856	$	660,676	$	1,129,079	$	479,390	$	213,830	$	—	$	4,720,700
December 31, 2015
Allowance related to loans individually evaluated and deemed impaired	$	—	$	—	$	147	$	121	$	74	$	—	$	—	$	—	$	342
Allowance related to loans collectively evaluated and not deemed impaired	2,174		12,859		1,748		5,531		7,727		2,391		146		794		33,370
Allowance related to loans acquired with deteriorated credit quality	—		—		—		175		—		—		—		—		175
Total allowance for loan losses	$	2,174	$	12,859	$	1,895	$	5,827	$	7,801	$	2,391	$	146	$	794	$	33,887
Loans deemed impaired	$	4,037	$	13,923	$	4,660	$	13,035	$	16,036	$	4,556	$	8	$	—	$	56,255
Loans not deemed impaired	317,628		1,657,721		166,346		588,982		1,163,879		426,726		230,061		—		4,551,343
Loans acquired with deteriorated credit quality	419		1,604		—		1,315		—		—		2,995		—		6,333
Total loans	$	322,084	$	1,673,248	$	171,006	$	603,332	$	1,179,915	$	431,282	$	233,064	$	—	$	4,613,931

Management has established the allowance for loan loss in accordance with GAAP at September 30, 2016 based on the current risk assessment and level of loss that is believed to exist within the portfolio. This level of reserve is deemed an appropriate estimate of probable loan losses inherent in the loan portfolio as of September 30, 2016 based upon the analysis conducted and given the portfolio composition, delinquencies, charge offs and risk rating changes experienced during the first nine months of 2016 and the three-year evaluation period utilized in the analysis. Based on the qualitative assessment of the portfolio and in thorough consideration of non-performing loans, management believes that the allowance for loan losses properly supports the level of associated loss and risk.

The following is a summary of past due and non-accrual loans at September 30, 2016 and December 31, 2015, including purchased credit impaired loans:

	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Past Due 90 Days or More and Still Accruing		Loans on Non-accrual
	(In thousands)
September 30, 2016
Owner-occupied CRE	$	1,015	$	160	$	1,909	$	3,084	$	—	$	2,933
Investor CRE	1,243		1,510		3,242		5,995		178		4,079
Construction	—		—		2,109		2,109		—		2,315
Commercial business loans	690		202		2,360		3,253		38		2,686
Residential real estate	236		2,649		6,996		9,881		—		15,563
Home equity	1,248		1,181		2,151		4,580		—		5,419
Other consumer	1,854		450		256		2,560		242		333
Total	$	6,286	$	6,152	$	19,023	$	31,462	$	458	$	33,328
December 31, 2015
Owner-occupied CRE	$	900	$	191	$	1,505	$	2,596	$	—	$	3,055
Investor CRE	3,154		2,498		4,519		10,171		—		8,565
Construction	214		449		2,135		2,798		—		2,808
Commercial business loans	526		266		2,804		3,596		66		4,244
Residential real estate	8,507		2,112		6,936		17,555		238		14,056
Home equity	2,009		646		1,549		4,204		—		5,066
Other consumer	17		3		8		28		3		8
Total	$	15,327	$	6,165	$	19,456	$	40,948	$	307	$	37,802

Loans reported as past due 90 days or more and still accruing represent loans that were evaluated by management and maintained on accrual status based on an evaluation of the borrower. At September 30, 2016 and December 31, 2015, there was one U.S. Government fully guaranteed loan reported as past due 90 days or more and still accruing in addition to accruing purchased credit impaired loans.

The following is a summary of impaired loans with and without a valuation allowance as of September 30, 2016 and December 31, 2015:

	September 30, 2016						December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
Impaired loans without a valuation allowance:
Owner-occupied CRE	$	3,539	$	4,459	$	—	$	4,037	$	5,370	$	—
Investor CRE	9,747		10,404		—		13,923		15,011		—
Construction	3,863		5,932		—		4,442		6,869		—
Commercial business loans	9,977		13,618		—		12,634		14,477		—
Residential real estate	15,674		18,845		—		14,056		16,876		—
Home equity	6,528		7,376		—		5,259		5,953		—
Other consumer	33		33		—		8		11		—
Total	49,361		60,667		—		54,359		64,567		—
Impaired loans with a valuation allowance:
Construction	—		—		—		218		218		147
Commercial business loans	952		952		761		401		401		121
Residential real estate	1,258		1,274		70		1,277		1,292		74
Other consumer	479		1,617		391		—		—		—
Total	2,689		3,843		1,222		1,896		1,911		342
Total impaired loans	$	52,050	$	64,510	$	1,222	$	56,255	$	66,478	$	342

The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the periods indicated:

	For the Three Months   Ended September 30, 2016				For the Three Months   Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Owner-occupied CRE	$	4,037	$	—	$	5,310	$	67
Investor CRE	10,737		218		12,537		385
Construction	4,012		30		3,867		26
Commercial business loans	12,706		—		6,479		493
Residential real estate	16,843		185		15,138		779
Home equity	5,992		71		3,957		51
Other consumer	921		—		19		8
Total	$	55,248	$	504	$	47,307	$	1,809

	For the Nine Months   Ended September 30, 2016				For the Nine Months   Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Owner-occupied CRE	$	4,073	$	241	$	6,253	$	171
Investor CRE	11,717		325		12,288		821
Construction	4,499		104		3,564		83
Commercial business loans	13,034		337		6,536		804
Residential real estate	16,466		556		14,303		1,161
Home equity	5,592		156		3,316		91
Other consumer	469		1		28		9
Total	$	55,850	$	1,720	$	46,288	$	3,140

Troubled Debt Restructurings

The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the restructuring constitutes a concession by the creditor and (ii) the debtor is experiencing financial difficulties. A TDR may include (i) a transfer from the debtor to the creditor of receivables from third parties, real estate, or other assets to satisfy fully or partially a debt, (ii) issuance or other granting of an equity interest to the creditor by the debtor to satisfy fully or partially a debt unless the equity interest is granted pursuant to existing terms for converting debt into an equity interest, and (iii) modifications of terms of a debt.

The following table provides detail of TDR balances for the periods presented:

	At September 30, 2016		At December 31, 2015
	(In thousands)
Recorded investment in TDRs:
Accrual status	$	18,758	$	18,453
Non-accrual status	7,345		5,611
Total recorded investment in TDRs	$	26,103	$	24,064
Accruing TDRs performing under modified terms more than one year	$	8,394	$	5,821
Specific reserves for TDRs included in the balance of allowance for loan losses	$	690	$	223
Additional funds committed to borrowers in TDR status	$	—	$	513

Loans restructured as TDRs during the three and nine months ended September 30, 2016 and 2015 are set forth in the following table:

	Three Months Ended					Nine Months Ended
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
September 30, 2016
Owner-occupied CRE	—	$	—	$	—	5	$	654	$	654
Construction	—	—		—		2	67		67
Commercial business	2	2,083		2,083		7	4,667		6,750
Residential real estate	4	377		385		13	1,320		1,705
Home equity	5	886		886		14	1,338		2,224
Total TDRs	11	$	3,346	$	3,354	41	$	8,046	$	11,400
September 30, 2015
Investor CRE	—	$	—	$	—	2	$	791	$	791
Construction	—	—		—		2	564		564
Commercial business	3	592		592		5	1,340		1,340
Residential real estate	2	59		59		15	2,544		2,561
Home equity	5	455		455		9	622		602
Total TDRs	10	$	1,106	$	1,106	33	$	5,861	$	5,858

The following table provides information on loan balances modified as TDRs during the period:

	Three Months Ended September 30,
	2016										2015
	Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other		Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other
	(In thousands)
Commercial business	$	—	$	—	$	100	$	—	$	1,983	$	585	$	—	$	7	$	—	$	—
Residential real estate	87		—		290		—		—		—		39		101		—		—
Home equity	—		261		137		488		—		—		—		20		—		354
	$	87	$	261	$	527	$	488	$	1,983	$	585	$	39	$	128	$	—	$	354

	Nine Months Ended September 30,
	2016										2015
	Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other		Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other
	(In thousands)
Owner-occupied CRE	$	510	$	—	$	86	$	—	$	58	$	—	$	—	$	—	$	—	$	—
Investor CRE	—		—		—		—		—		538		—		253		—		—
Construction	23		—		44		—		—		564		—		—		—		—
Commercial business	2,000		—		243		348		2,076		1,333		—		7		—		—
Residential real estate	87		—		672		561		—		—		940		370		786		529
Home equity	—		261		473		604		—		—		—		95		28		418
	$	2,620	$	261	$	1,518	$	1,513	$	2,134	$	2,435	$	940	$	725	$	814	$	947

The following table provides information on loans modified as TDRs within the previous 12 months and for which there was a payment default during the periods presented:

	September 30, 2016			September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(In thousands)
Owner-occupied CRE	—	$	—	4	$	359
Investor CRE	—	—		3	880
Construction	1	437		—	—
Residential real estate	—	—		3	402
Total	1	$	437	10	$	1,641

The majority of restructured loans were on accrual status as of September 30, 2016 and December 31, 2015. Typically, residential loans are restructured with a modification and extension of the loan amortization and maturity at substantially the same interest rate as contained in the original credit extension. As part of the TDR process, the current value of the property is compared to the general ledger loan balance and if not fully supported, a charge-off is processed through the allowance for loan losses. Commercial real estate loans, commercial construction loans and commercial business loans also contain payment modification agreements and a like assessment of the underlying collateral value if the borrower’s cash flow may be inadequate to service the entire obligation.

Loan Servicing

The Company services certain loans for third parties. The aggregate balance of loans serviced for others was $1.02 billion and $863.7 million as of September 30, 2016 and December 31, 2015, respectively. The balances of these loans are not included on the accompanying Consolidated Statements of Condition.

The risks inherent in mortgage servicing rights relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The fair value of mortgage servicing rights at September 30, 2016 and December 31, 2015 was determined using pretax internal rates of return ranging from 9.5% to 11.5% and the Public Securities Association Standard Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 298 and 183, respectively. The fair value of mortgage servicing rights is obtained from a third party provider.

During the three and nine months ended September 30, 2016, the Company received servicing income in the amount of $416,000 and $1.3 million compared to $310,000 and $799,000, for the same periods in 2015, respectively. This income is included in income from mortgage banking activities in the Consolidated Statements of Net Income.

Mortgage servicing rights are included in other assets on the Consolidated Statements of Condition. Changes in the fair value of mortgage servicing rights are included in income from mortgage banking activities in the Consolidated Statements of Net Income. The following table summarizes mortgage servicing rights activity for the three and nine months ended September 30, 2016 and 2015.

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Mortgage servicing rights:
Balance at beginning of period	$	6,589		$	5,994		$	7,074		$	4,729
Change in fair value recognized in net income	(114		)	(888		)	(1,800		)	(888		)
Issuances	621			889			1,822			2,154
Fair value of mortgage servicing rights at end of period	$	7,096		$	5,995		$	7,096		$	5,995

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Goodwill and Core Deposit Intangibles

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Core Deposit Intangibles

Note 5. Goodwill and Core Deposit Intangibles

The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:

	Goodwill		Core Deposit Intangibles
	(In thousands)
Balance at December 31, 2014	$	115,240	$	9,302
Adjustments	41		—
Amortization expense	—		(1,796		)
Balance at December 31, 2015	$	115,281	$	7,506
Amortization expense	—		(1,219		)
Balance at September 30, 2016	$	115,281	$	6,287
Estimated amortization expense for the years ending December 31,
2016 (remaining three months)			$	385
2017			1,411
2018			1,219
2019			1,026
2020			834
2021 and thereafter			1,412
Total remaining			$	6,287

On April 30, 2014, Rockville Financial, Inc. completed its merger with United Financial Bancorp, Inc. (“Legacy United”). Discussions throughout this report related to the merger with Legacy United are referred to as the “Merger”. The goodwill associated with the Merger is not tax deductible. In accordance with ASC 350, Intangibles – Goodwill and Other, goodwill is not amortized, but will be subject to an annual review of qualitative factors to determine if an impairment test is required. The amortizing intangible asset associated with the acquisition consists of the core deposit intangible. The core deposit intangible is being amortized using the sum of the years’ digits method over its estimated life of 10 years. Amortization expense of the core deposit intangible was $385,000 and $433,000 for the three months ended September 30, 2016 and 2015, respectively, and was $1.2 million and $1.4 million for the nine months ended September 30, 2016 and 2015, respectively.

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Borrowings

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Borrowings

Note 6. Borrowings

Federal Home Loan Bank of Boston (“FHLBB”) Advances

The Bank is a member of the FHLBB. Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of September 30, 2016 and December 31, 2015 are summarized below:

	September 30, 2016				December 31, 2015
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(Dollars in thousands)
2016	$	445,000	0.63	%	$	637,580	0.60	%
2017	288,000		1.09		151,000		1.76
2018	140,044		1.48		120,795		1.54
2019	20,000		1.45		20,000		1.63
2020 and thereafter	82,306		0.73		16,130		2.21
	$	975,350	0.91	%	$	945,505	0.95	%

The total carrying value of FHLBB advances at September 30, 2016 was $977.5 million, which includes a remaining fair value adjustment of $2.1 million on acquired advances. At December 31, 2015, the total carrying value of FHLBB advances was $949.0 million, with a remaining fair value adjustment of $3.5 million.

At September 30, 2016, eight advances totaling $93.0 million with interest rates ranging from 0.26% to 4.49%, which are scheduled to mature between 2017 and 2031, are callable by the FHLBB. Advances are collateralized by first mortgage loans and investment securities with an estimated eligible collateral value of $1.5 billion and $1.3 billion at September 30, 2016 and December 31, 2015, respectively.

In addition to the outstanding advances, the Bank has access to an unused line of credit with the FHLBB amounting to $10.0 million at September 30, 2016 and December 31, 2015. In accordance with an agreement with the FHLBB, the qualified collateral must be free and clear of liens, pledges and have a discounted value equal to the aggregate amount of the line of credit and outstanding advances. At September 30, 2016, the Bank could borrow immediately an additional $408.5 million from the FHLBB, inclusive of the line of credit.

Other Borrowings

The following table presents other borrowings by category as of the dates indicated:

	September 30, 2016		December 31, 2015
	(In thousands)
Subordinated debentures	$	79,658	$	79,489
Wholesale repurchase agreements	20,000		45,000
Customer repurchase agreements	21,387		19,278
Other	4,354		6,250
Total other borrowings	$	125,399	$	150,017

Subordinated Debentures

At September 30, 2016 and December 31, 2015, the carrying value of the Company’s subordinated debentures totaled $79.7 million and $79.5 million, respectively.

On September 23, 2014, the Company closed its public offering of $75.0 million of its 5.75% Subordinated Notes due October 1, 2024 (the “Notes”). The Notes were offered to the public at par. Interest on the Notes is payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2015. Issuance costs totaled $1.3 million and are being amortized over the life of the Notes as a component of interest expense.

In connection with the Merger, the Company has assumed junior subordinated debt in the form of trust preferred securities issued through a private placement offering with a face amount of $7.7 million. The Company recorded a fair value acquisition discount of $2.3 million on May 1, 2014. The remaining unamortized discount was $2.1 million at September 30, 2016. This issue has a maturity date of March 15, 2036 and bears a floating rate of interest that reprices quarterly at the 3-month LIBOR rate plus 1.85%. A special redemption provision allows the Company to redeem this issue at par on March 15, June 15, September 15, or December 15 of any year subsequent to March 15, 2011.

Repurchase Agreements

The following table presents the Company’s outstanding borrowings under repurchase agreements as of September 30, 2016 and December 31, 2015:

	Remaining Contractual Maturity of the Agreements
	Overnight		Up to 1 Year		1 - 3 Years		Greater than 3 Years		Total
	(In thousands)
September 30, 2016
Repurchase Agreements
U.S. Agency Securities	$	21,387	$	—	$	20,000	$	—	$	41,387
December 31, 2015
Repurchase Agreements
U.S. Agency Securities	$	19,278	$	25,000	$	20,000	$	—	$	64,278

As of September 30, 2016 and December 31, 2015, advances outstanding under wholesale reverse repurchase agreements totaled $20.0 million and $45.0 million, respectively. The outstanding advances at September 30, 2016 consisted of two individual borrowings with remaining terms of three years or less and a weighted average cost of 2.59%. The outstanding advances at December 31, 2015 consisted of three individual borrowings with remaining terms of three years or less and had a weighted average cost of 1.51%. The Company pledged investment securities with a market value of $24.2 million and $51.1 million as collateral for these borrowings at September 30, 2016 and December 31, 2015, respectively.

Retail repurchase agreements primarily consist of transactions with commercial and municipal customers, are for a term of one day and are backed by the purchasers’ interest in certain U.S. Government Agency securities or government-sponsored securities. As of September 30, 2016 and December 31, 2015, retail repurchase agreements totaled $21.4 million and $19.3 million, respectively. The Company pledged investment securities with a market value of $30.3 million and $34.6 million as collateral for these borrowings at September 30, 2016 and December 31, 2015, respectively.

Given that the repurchase agreements are secured by investment securities valued at market value, the collateral position is susceptible to change based upon variation in the market value of the securities that can arise due to fluctuations in interest rates, among other things. In the event that the interest rate changes result in a decrease in the value of the pledged securities, additional securities will be required to be pledged in order to secure the borrowings. Due to the short term nature of the majority of the repurchase agreements, Management believes the risk of further encumbered securities pose a minimal impact to the Company’s liquidity position.

Other

At September 30, 2016 other borrowings consist of capital lease obligations. At December 31, 2015 other borrowings consist of a secured borrowing and capital lease obligations. The secured borrowing relates to the transfer of a financial asset that did not meet the definition of a participating interest and did not meet sale accounting criteria; therefore, it is accounted for as a secured borrowing and classified as long-term debt on the Consolidated Statements of Condition. The Company has capital lease obligations for three of its leased banking branches.

Other Sources of Wholesale Funding

The Bank has relationships with brokered sweep deposit providers by which funds are deposited by the counterparties at the Bank’s request. Amounts outstanding under these agreements are reported as interest-bearing deposits and totaled $223.6 million at a cost of 0.58% at September 30, 2016 and $123.1 million at a cost of 0.45% at December 31, 2015. The Bank maintains open dialogue with the brokered sweep providers and has the ability to increase the deposit balances upon request, up to certain limits based upon internal policy requirements.

Additionally, the Company has unused federal funds lines of credit with four counterparties totaling $107.5 million at September 30, 2016.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Note 7. Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers. The Company manages a matched book with respect to these derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of September 30, 2016 and December 31, 2015 is as follows:

	Notional Amount		Weighted-Average Remaining Maturity	Weighted-Average Rate						Estimated Fair Value, Net Asset (Liability)
				Received			Paid
	(In thousands)		(In years)							(In thousands)
September 30, 2016
Cash flow hedges:
Forward starting interest rate swaps on future borrowings	$	100,000	7.61	TBD		(1)	2.43	%		$	(5,926	)
Interest rate swaps	330,000		2.60	0.78	%		1.47	%		(8,592		)
Fair value hedges:
Interest rate swaps	35,000		0.97	1.04	%		0.60	%	(2)	97
Non-hedging derivatives:
Forward loan sale commitments	121,961		0.00							(297		)
Derivative loan commitments	47,921		0.00							868
Interest rate swap	7,500		9.79							(90		)
Loan level swaps - dealer(3)	439,749		7.84	2.23	%		3.80	%		(28,769		)
Loan level swaps - borrowers(3)	439,749		7.84	3.80	%		2.23	%		28,719
Total	$	1,521,880								$	(13,990	)
December 31, 2015
Cash flow hedges:
Forward starting interest rate swaps on future borrowings	$	150,000	7.99	TBD		(1)	2.46	%		$	(2,072	)
Interest rate swaps	280,000		2.65	0.46	%		1.28	%		(2,020		)
Fair value hedges:
Interest rate swaps	35,000		1.72	1.04	%		0.48	%	(2)	24
Non-hedging derivatives:
Forward loan sale commitments	25,060		0.00							(13		)
Derivative loan commitments	9,403		0.00							223
Loan level swaps - dealer(3)	333,971		9.05	1.94	%		3.93	%		(12,059		)
Loan level swaps - borrowers(3)	333,981		9.05	3.93	%		1.94	%		12,152
Total	$	1,167,415								$	(3,765	)

(1) The receiver leg of the cash flow hedges is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for these forward starting cash flow hedges is October 16, 2017.

(2) The paying leg is one month LIBOR plus a fixed spread; above rate in effect as of the date indicated.

(3) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2016, the Company did not record any hedge ineffectiveness.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $1.9 million from accumulated other comprehensive loss to interest expense during the next 12 months.

The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a period of approximately 60 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments).

As of September 30, 2016, the Company had ten outstanding interest rate derivatives with a notional value of $430.0 million that were designated as cash flow hedges of interest rate risk.

Fair Value Hedges of Interest Rate Risk

The Company is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without the exchange of the underlying notional amount.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting gain or loss on the related derivatives. For the three and nine months ended September 30, 2016 and 2015, the Company recognized a negligible net reduction to interest expense.

As of September 30, 2016, the Company had three outstanding interest rate derivatives with a notional amount of $35.0 million that were designated as a fair value hedge of interest rate risk.

Non-Designated Hedges

Qualifying derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings.

As of September 30, 2016, the Company had 65 borrower-facing interest rate derivatives with an aggregate notional amount of $439.7 million and 65 broker derivatives with an aggregate notional value amount of $439.7 million related to this program.

As of September 30, 2016, the Company had five risk participation agreements with three counterparties related to a loan level interest rate swap with five of its commercial banking customers. Of these agreements, four were entered into in conjunction with credit enhancements provided to the borrowers by the counterparties; therefore, if the borrowers default, the counterparties are responsible for a percentage of the exposure. During the third quarter of 2015, one agreement was entered into in conjunction with credit enhancements provided to the borrower by the Bank, whereby the Bank is responsible for a percentage of the exposure to the counterparty. At September 30, 2016, the notional amount of this risk participation agreement was $6.1 million, reflecting the counterparty participation of 33.1%. The risk participation agreements are a guarantee of performance on a derivative and accordingly, are recorded at fair value on the Company’s Consolidated Statements of Condition. At September 30, 2016, the notional amount of the remaining four risk participation agreements was $26.6 million, reflecting the counterparty participation level of 39.2%.

As of September 30, 2016, the Company had one receive-fixed interest rate derivative with a notional amount of $7.5 million and a maturity date in July 2026. The derivative was executed to protect against a portion of the devaluation of the Company’s mortgage servicing right asset that occurs in a falling rate environment. Both instruments are marked to market through the income statement.

Derivative Loan Commitments

Additionally, the Company enters into mortgage loan commitments that are also referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market.

Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases.

Forward Loan Sale Commitments

To protect against the price risk inherent in derivative loan commitments, the Company utilizes To Be Announced (“TBA”) as well as cash (“mandatory delivery” and “best efforts”) forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments.

With TBA and mandatory cash contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor/counterparty at a specified price on or before a specified date. If the market improves (rate decline) and the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Conversely if the market declines (rates worsen) the investor/counterparty is obligated to pay a “pair-off” fee to the Company based on then-current market prices. The Company expects that these forward loan sale commitments, TBA and mandatory, will experience changes in fair value opposite to the change in fair value of derivative loan commitments.

With best effort cash contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally best efforts cash contracts have no pair off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments, best efforts, will experience a net neutral shift in fair value of derivative loan commitments.

Fair Values of Derivative Instruments on the Statement of Condition

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of September 30, 2016 and December 31, 2015:

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	Sep 30, 2016		Dec 31, 2015		Balance Sheet Location	Sep 30, 2016		Dec 31, 2015
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate swap - cash flow hedge	Other Assets	$	21	$	478	Other Liabilities	$	14,539	$	4,570
Interest rate swap - fair value hedge	Other Assets	97		50		Other Liabilities	—		26
Total derivatives designated as hedging instruments		$	118	$	528		$	14,539	$	4,596
Derivatives not designated as hedging instruments:
Forward loan sale commitments	Other Assets	$	4	$	7	Other Liabilities	$	301	$	20
Derivative loan commitments	Other Assets	868		223			—		—
Interest rate swap	Other Assets	10		—		Other Liabilities	100		—
Interest rate swap - with customers	Other Assets	28,719		12,152			—		—
Interest rate swap - with counterparties		—		—		Other Liabilities	28,769		12,059
Total derivatives not designated as hedging		$	29,601	$	12,382		$	29,170	$	12,079

Effect of Derivative Instruments in the the Company’s Consolidated Statements of Net Income and Changes in Stockholders’ Equity

The tables below presents the effect of derivative instruments in the Company’s Statements of Changes in Stockholders’ Equity designated as hedging instruments for the three and nine months ended September 30, 2016 and 2015:

Cash Flow Hedges
	Amount of Gain (Loss) Recognized in AOCI  (Effective Portion)
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
	(In thousands)
Interest rate swaps	$	2,190	$	(4,898	)	$	(10,426	)	$	(5,521	)

	Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(In thousands)
Interest rate swaps	$	664	$	—	$	1,844	$	(12	)

The tables below present information pertaining to the Company’s derivatives in the Consolidated Statements of Net Income designated as hedging instruments for the three and nine months ended September 30, 2016 and 2015:

Fair Value Hedges
		Amount of Gain (Loss) Recognized in Income for Derivatives
Derivatives Designated as Fair Value Hedging Instruments	Location of Gain (Loss) Recognized in Income	Three Months Ended September 30,						Nine Months Ended September 30,
		2016			2015			2016			2015
		(In thousands)
Interest Rate Swaps	Interest income	$	100		$	137		$	73		$	303
		Amount of Gain (Loss) Recognized in Income for Hedged Items
		Three Months Ended September 30,						Nine Months Ended September 30,
		2016			2015			2016			2015
		(In thousands)
Interest Rate Swaps	Interest income	$	(100	)	$	(138	)	$	(73	)	$	(306	)

The table below presents information pertaining to the Company’s derivatives not designated as hedging instruments in the Consolidated Statements of Net Income as of September 30, 2016 and 2015:

	Amount of Gain (Loss) Recognized in Income
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Derivatives not designated as hedging instruments:
Derivative loan commitments	$	(329	)	$	1,568		$	645		$	614
Forward loan sale commitments	(317		)	(37		)	(284		)	39
Interest rate swaps	(190		)	(245		)	(17		)	(3		)
	$	(836	)	$	1,286		$	344		$	650

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the counterparty defaults on any of its indebtedness or fails to maintain a well-capitalized rating, then the counterparty could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.

As of September 30, 2016, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $44.2 million. As of September 30, 2016, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $48.6 million against its obligations under these agreements. A degree of netting occurs on occasions where the Company has exposure to a counterparty and the counterparty has exposure to the Company. If the Company had breached any of these provisions at September 30, 2016, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty.

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Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

Note 8. Stock-Based Compensation Plans

The Company maintains and operates the Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”) as approved by the Company’s Board and stockholders. The 2006 Plan allows the Company to use stock options, stock awards, stock appreciation rights and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company.

The Company maintains and operates the Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”) as approved by the Company’s Board and shareholders. The 2012 Plan allows the Company to use stock options, stock awards, and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company.

In connection with a merger, the Company assumed the following stock-based compensation plans: (a) United Financial Bancorp, Inc. 2006 Stock-Based Incentive Plan, (b) United Financial Bancorp, Inc. 2008 Equity Incentive Plan, (c) CNB Financial Corp. 2008 Equity Incentive Plan, and (d) CNB Amended and Restated Stock Option Plan collectively referred to as “the Legacy United Stock Plans.”

On October 29, 2015, a special meeting of shareholders was held and the shareholders approved the 2015 Omnibus Stock Incentive Plan (the “2015 Plan”). The 2015 Plan allows the Company to use stock options, stock awards, and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company. The 2015 Plan reserves a total of up to 4,050,000 shares (the “Cap”) of Company common stock for issuance upon the grant or exercise of awards made pursuant to the 2015 Plan. Of these shares, the Company may grant shares in the form of restricted stock, performance shares and other share-based awards and may grant stock options. However, the number of shares issuable will be adjusted by a “fungible ratio” of 2.35. This means that for each share award other than a stock option share or a stock appreciation right share, each 1 share awarded shall be deemed to be 2.35 shares awarded. The 2015 Plan became effective as of the date of approval by the Company’s shareholders, and upon shareholder approval no other awards may be granted from the previously approved or assumed plans. As of September 30, 2016, 3,356,982 shares remained available for future grants under the 2015 Plan.

For the nine-month period ended September 30, 2016, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $80,000 with a related tax benefit of $29,000 and $1.5 million with a related tax benefit of $527,000, respectively. Of the total expense amount for the nine-month period, the amount for Director stock-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $325,000, and the amount for officer stock-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $1.2 million. For the nine-month period ended September 30, 2015, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $100,000 with a related tax benefit of $36,000 and $589,000 with a related tax benefit of $212,000, respectively.

For the three-month period ended September 30, 2016, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $20,000 with a related tax benefit of $7,000 and $499,000 with a related tax benefit of $180,000, respectively. Of the total expense amount for the three-month period, the amount for Director stock-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $105,000, and the amount for officer stock-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $414,000. For the three-month period ended September 30, 2015, total employee and Director stock-based compensation expense recognized for stock options and restricted stock was $32,000 with a related tax benefit of $12,000 and $131,000 with a related tax benefit of $47,000, respectively.

The fair values of stock option and restricted stock awards, measured at grant date, are amortized to compensation expense on a straight-line basis over the vesting period.

Stock Options

The following table presents the activity related to stock options outstanding, including options that have stock appreciation rights (“SARs”), under the Plans for the nine months ended September 30, 2016:

	Number of Stock Options		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2015	2,649,735		$	10.88
Granted	—		—
Exercised	(506,854	)	9.28
Forfeited or expired	(27,696	)	13.67
Outstanding at September 30, 2016	2,115,185		$	11.22	5.3	$	5.5
Stock options vested and exercisable at September 30, 2016	1,992,585		$	11.07	5.2	$	5.5

As of September 30, 2016, the unrecognized cost related to outstanding stock options was $200,000 and will be recognized over a weighted-average period of 2.0 years.

There were no stock options granted during the nine months ended September 30, 2016 and 2015.

Options exercised may include awards that were originally granted as tandem SARs. Therefore, if the SAR component is exercised, it will not equate to the number of shares issued due to the conversion of the SAR option value to the actual share value at exercise date. There were 20,208 options with a SAR component included in total options exercised during the nine months ended September 30, 2016.

Restricted Stock

Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. During the nine months ended September 30, 2016, the Company issued 39,328 shares of restricted stock from shares available under the Company’s 2015 Plan to certain employees. During the nine months ended September 30, 2016, the weighted-average grant date fair value was $11.70 per share and the restricted stock awards vest in either equal annual installments on the anniversary date over a 3 year period or cliff vest at the end of the 3 year period. The following table presents the activity for restricted stock for the nine months ended September 30, 2016:

	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2015	326,013		$	13.20
Granted	39,328		11.70
Vested	(21,377	)	13.19
Forfeited	—		—
Unvested as of September 30, 2016	343,964		$	13.03

As of September 30, 2016, there was $2.6 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of 2.0 years.

Employee Stock Ownership Plan

As part of the second-step conversion and stock offering completed in 2011, the Employee Stock Ownership Plan (“ESOP”)borrowed an additional $7.1 million from the Company to purchase 684,395 shares of common stock during the initial public offering and in the open market. The outstanding loan balance of $6.3 million at September 30, 2016 will be repaid principally from the Bank’s discretionary contributions to the ESOP over a remaining period of 25 years.

The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation. Under this guidance, unearned ESOP shares are not considered outstanding and are shown as a reduction of stockholders’ equity as unearned compensation. The Company will recognize compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be allocated. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, this difference will be credited or debited to equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated financial statements. Dividends on unallocated shares are used to pay the ESOP debt.

At September 30, 2016, the remaining loan had an outstanding balance of $6.3 million and the interest rate is the prime rate plus one percent. The unallocated ESOP shares are pledged as collateral on the loans. As the loans are repaid to the Company, shares will be released from collateral and will be allocated to the accounts of the participants. For the three months ended September 30, 2016 and 2015, ESOP compensation expense was $77,000 and $75,000, respectively. For the nine months ended September 30, 2016 and 2015, ESOP compensation expense was $216,000 and $222,000, respectively.

The ESOP shares as of the period indicated below were as follows:

	September 30, 2016
Allocated shares	1,175,239
Shares allocated for release	17,110
Unreleased shares	553,219
Total ESOP shares	1,745,568
Market value of unreleased shares (in thousands)	$	7,893

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Regulatory Matters

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Regulatory Matters

Note 9. Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. The regulations require the Company and the Bank to meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items, as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. At September 30, 2016, the Bank exceeded all regulatory capital requirements and is considered “well-capitalized” under regulatory guidelines.

Basel III

In July 2013, federal banking regulators approved final rules that implement changes to the regulatory capital framework for U.S. banks. The rules set minimum requirements for both the quantity and quality of capital held by community banking institutions. The final rule includes a new minimum ratio of common equity Tier 1 capital to risk weighted assets of 4.5%, raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6%, and includes a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The phase-in period for the rules began for the Company on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule. Management believes that the Company’s capital levels will remain characterized as “well-capitalized” under the new rules.

The following is a summary of the Company’s and the Bank’s regulatory capital amounts and ratios as of September 30, 2016 and December 31, 2015 compared to the FDIC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy:

	Actual				Minimum For Capital Adequacy Purposes				Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
United Bank
September 30, 2016
Total capital to risk weighted assets	$	601,416	12.3	%	$	391,165	8.0	%	$	488,956	10.0	%
Common equity tier 1 capital to risk weighted assets	558,812		11.4		220,584		4.5		318,621		6.5
Tier 1 capital to risk weighted assets	558,812		11.4		294,112		6.0		392,149		8.0
Tier 1 capital to total average assets	558,812		8.9		251,151		4.0		313,939		5.0
December 31, 2015
Total capital to risk weighted assets	$	558,969	11.2	%	$	398,552	8.0	%	$	498,190	10.0	%
Common equity tier 1 capital to risk weighted assets	523,786		10.5		224,266		4.5		323,940		6.5
Tier 1 capital to risk weighted assets	523,786		10.5		299,022		6.0		398,695		8.0
Tier 1 capital to total average assets	523,786		8.9		234,882		4.0		293,602		5.0
United Financial Bancorp, Inc.
September 30, 2016
Total capital to risk weighted assets	$	655,285	13.3	%	$	394,156	8.0	%	N/A		N/A
Common equity tier 1 capital to risk weighted assets	537,681		10.9		221,978		4.5		N/A		N/A
Tier 1 capital to risk weighted assets	537,681		10.9		295,971		6.0		N/A		N/A
Tier 1 capital to total average assets	537,681		8.5		253,026		4.0		N/A		N/A
December 31, 2015
Total capital to risk weighted assets	$	628,915	12.5	%	$	401,542	8.0	%	N/A		N/A
Common equity tier 1 capital to risk weighted assets	518,732		10.3		225,972		4.5		N/A		N/A
Tier 1 capital to risk weighted assets	518,732		10.3		301,296		6.0		N/A		N/A
Tier 1 capital to total average assets	518,732		8.9		233,926		4.0		N/A		N/A

Connecticut law restricts the amount of dividends that the Bank can pay the Company based on retained earnings for the current year and the preceding two years.

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 10. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows:

	September 30, 2016			December 31, 2015
	(In thousands)
Benefit plans:
Unrecognized net actuarial loss	$	(6,704	)	$	(7,080	)
Tax effect	2,416			2,551
Net-of-tax amount	(4,288		)	(4,529		)
Securities available for sale:
Net unrealized gain (loss)	15,562			(5,821		)
Tax effect	(5,600		)	2,088
Net-of-tax amount	9,962			(3,733		)
Interest rate swaps:
Net unrealized loss	(14,518		)	(4,092		)
Tax effect	5,231			1,475
Net-of-tax amount	(9,287		)	(2,617		)
	$	(3,613	)	$	(10,879	)

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Net Income Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Net Income Per Share

Note 11. Net Income Per Share

The following table sets forth the calculation of basic and diluted net income per share for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands, except share data)
Net income available to common stockholders	$	14,159		$	13,381		$	35,111		$	39,738
Weighted-average common shares outstanding	50,357,085			49,510,996			50,179,784			49,414,633
Less: average number of unallocated ESOP award shares	(556,980		)	(579,793		)	(562,648		)	(585,440		)
Weighted-average basic shares outstanding	49,800,105			48,931,203			49,617,136			48,829,193
Dilutive effect of stock options	341,070			498,606			299,913			510,078
Weighted-average diluted shares	50,141,175			49,429,809			49,917,049			49,339,271
Net income per share:
Basic	$	0.28		$	0.27		$	0.71		$	0.81
Diluted	$	0.28		$	0.27		$	0.70		$	0.81

For the three and nine months ended September 30, 2016, the weighted-average number of anti-dilutive stock options excluded from diluted earnings per share were 270,329 and 627,768, respectively. For the three and nine months ended September 30, 2015, the weighted-average number of anti-dilutive stock options excluded from diluted earnings per share were 637,770 shares. For the periods shown, the stock options are anti-dilutive because the strike price is greater than the average fair value of the Company’s common stock for the periods presented.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 12. Fair Value Measurements

Fair value estimates are made as of a specific point in time based on the characteristics of the assets and liabilities and relevant market information. In accordance with FASB ASC 820, the fair value estimates are measured within the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1: Quoted prices are available in active markets for identical assets and liabilities as of the reporting date. The quoted price is not adjusted because of the size of the position relative to trading volume.

Level 2: Pricing inputs are observable for assets and liabilities, either directly or indirectly, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3: Pricing inputs are unobservable for assets and liabilities and include situations where there is little, if any, market activity and the determination of fair value requires significant judgment or estimation.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such instances, the determination of which category within the fair value hierarchy is appropriate for any given asset and liability is based on the lowest level of input that is significant to the fair value of the asset and liability.

When available, quoted market prices are used. In other cases, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Changes in assumptions could significantly affect these estimates and could be material. Derived fair value estimates may not be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument.

Fair value estimates for financial instrument fair value disclosures are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company.

Loans Held for Sale

The Company has elected the fair value option for its portfolio of residential real estate mortgage loans held for sale to reduce certain timing differences and better match changes in fair value of the loans with changes in the fair value of the derivative loan sale contracts used to economically hedge them.

The aggregate principal amount of the residential real estate mortgage loans held for sale was $82.1 million and $9.8 million at September 30, 2016 and December 31, 2015, respectively. The aggregate fair value of these loans as of the same dates was $83.3 million and $10.1 million, respectively.

There were no residential real estate mortgage loans held for sale 90 days or more past due at September 30, 2016 and December 31, 2015.

The following table presents the gains in fair value related to mortgage loans held for sale for the periods indicated. Changes in the fair value of mortgage loans held for sale are reported as a component of income from mortgage banking activity in the Consolidated Statements of Net Income.

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2016		2015			2016		2015
	(In thousands)
Mortgage loans held for sale	$	1,490	$	(498	)	$	1,530	$	183

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables detail the assets and liabilities carried at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during the nine months ended September 30, 2016 and 2015.

	Total Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2016
Available-for-Sale Securities:
Government-sponsored residential mortgage-backed securities	$	164,668	$	—	$	164,668	$	—
Government-sponsored residential collateralized debt obligations	197,830		—		197,830		—
Government-sponsored commercial mortgage-backed securities	27,820		—		27,820		—
Government-sponsored commercial collateralized debt obligations	179,726		—		179,726		—
Asset-backed securities	160,357		—		13,532		146,825
Corporate debt securities	60,210		—		58,698		1,512
Obligations of states and political subdivisions	223,856		—		223,856		—
Marketable equity securities	37,972		3,296		34,676		—
Total available-for-sale securities	$	1,052,439	$	3,296	$	900,806	$	148,337
Mortgage loan derivative assets	$	882	$	—	$	882	$	—
Mortgage loan derivative liabilities	401		—		401		—
Loans held for sale	83,321		—		83,321		—
Mortgage servicing rights	7,096		—		—		7,096
Interest rate swap assets	28,837		—		28,837		—
Interest rate swap liabilities	43,308		—		43,308		—
December 31, 2015
Available-for-Sale Securities:
U.S. Government and government-sponsored enterprise obligations	$	10,089	$	—	$	10,089	$	—
Government-sponsored residential mortgage-backed securities	145,861		—		145,861		—
Government-sponsored residential collateralized-debt obligations	286,967		—		286,967		—
Government-sponsored commercial mortgage-backed securities	20,965		—		20,965		—
Government-sponsored commercial collateralized-debt obligations	128,972		—		128,972		—
Asset-backed securities	159,901		—		15,388		144,513
Corporate debt securities	59,960		—		58,403		1,557
Obligations of states and political subdivisions	201,115		—		201,115		—
Marketable equity securities	45,339		3,227		42,112		—
Total available-for-sale securities	$	1,059,169	$	3,227	$	909,872	$	146,070
Mortgage loan derivative assets	$	230	$	—	$	230	$	—
Mortgage loan derivative liabilities	20		—		20		—
Loans held for sale	10,136		—		10,136		—
Mortgage servicing rights	7,074		—		—		7,074
Interest rate swap assets	12,680		—		12,680		—
Interest rate swap liabilities	16,655		—		16,655		—

The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
Balance of available-for-sale securities, at beginning of period	$	145,134		$	146,956		$	146,070		$	137,207
Purchases (sales)	91			2,995			(909		)	12,794
Principal payments and net accretion	(244		)	(532		)	(722		)	(967		)
Total realized losses included in earnings	(14		)	—			(164		)	—
Total unrealized gains (losses) included in other comprehensive income/loss	3,370			(800		)	4,062			(415		)
Balance at end of period	$	148,337		$	148,619		$	148,337		$	148,619
Balance of mortgage servicing rights, at beginning of period	$	6,589		$	5,994		$	7,074		$	4,729
Issuances	621			889			1,822			2,154
Change in fair value recognized in net income	(114		)	(888		)	(1,800		)	(888		)
Balance at end of period	$	7,096		$	5,995		$	7,096		$	5,995

The following valuation methodologies are used for certain assets that are recorded at fair value on a recurring basis.

Available-for-Sale Securities: Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. Level 1 securities are those traded on active markets for identical securities including U.S. treasury securities, equity securities and mutual funds. Level 2 securities include U.S. Government agency obligations, U.S. Government-sponsored enterprises, mortgage-backed securities, obligations of states and political subdivisions, corporate and other debt securities. Level 3 securities include private placement securities and thinly traded equity securities. All fair value measurements are obtained from a third party pricing service and are not adjusted by management.

Matrix pricing is used for pricing most obligations of states and political subdivisions, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on securities relationships to other benchmark quoted securities. The grouping of securities is completed according to insurer, credit support, state of issuance and rating to incorporate additional spreads and municipal bond yield curves.

The valuation of the Company’s asset-backed securities is obtained from a third party pricing provider and is determined utilizing an approach that combines advanced analytics with structural and fundamental cash flow analysis based upon observed market based yields. The third party provider’s model analyzes each instrument’s underlying collateral given observable collateral characteristics and credit statistics to extrapolate future performance and project cash flows, by incorporating expectations of default probabilities, recovery rates, prepayment speeds, loss severities and a derived discount rate. The Company has determined that due to the liquidity and significance of unobservable inputs, that asset-backed securities are classified in Level 3 of the valuation hierarchy.

The Company holds one pooled trust preferred security. The security’s fair value is based on unobservable issuer-provided financial information and discounted cash flow models derived from the underlying structured pool and therefore is classified as Level 3.

Loans Held for Sale: The fair value of residential mortgage loans held for sale is estimated using quoted market prices for loans with similar characteristics provided by government-sponsored entities. Any changes in the valuation of mortgage loans held for sale is based upon the change in market interest rates between closing the loan and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. The Company has determined that loans held for sale are classified in Level 2 of the valuation hierarchy.

Mortgage Servicing Rights: A mortgage servicing right (“MSR”) asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing. The fair value of servicing rights is provided by a third party and is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are recorded monthly. (See Note 4, “Loans Receivable and Allowance for Loan Losses” in the Notes to Consolidated Financial Statements contained elsewhere in this report) as the cash flows derived from the valuation model change the fair value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

Derivatives: Derivative instruments related to commitments for loans to be sold are carried at fair value. Fair value is determined through quotes obtained from actively traded mortgage markets. Any change in fair value for rate lock commitments to the borrower is based upon the change in market interest rates between making the rate lock commitment and the measurement date and, for forward loan sale commitments to the investor, is based upon the change in market interest rates from entering into the forward loan sales contract and the measurement date. Both the rate lock commitments to the borrowers and the forward loan sale commitments to investors are derivatives pursuant to the requirements of FASB ASC 815-10; however, the Company has not designated them as hedging instruments. Accordingly, they are marked to fair value through earnings.

The Company’s intention is to sell the majority of its fixed rate mortgage loans with original terms of 30 years on a servicing retained basis as well as certain 10, 15 and 20 year loans. The servicing value has been included in the pricing of the rate lock commitments. The Company estimates a fallout rate of approximately 14.5% based upon historical averages in determining the fair value of rate lock commitments. Although the use of historical averages is based upon unobservable data, the Company believes that this input is insignificant to the valuation and, therefore, has concluded that the fair value measurements meet the Level 2 criteria. The Company continually reassesses the significance of the fallout rate on the fair value measurement and updates the fallout rate accordingly.

Hedging derivatives include interest rate swaps as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy.

The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at September 30, 2016:

(Dollars in thousands)
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Asset-backed securities	$	146,825	Discounted Cash Flow	Discount Rates	2.4% - 3.7% (3.7%)
				Cumulative Default %	6.0% - 8.3% (8.4%)
				Loss Given Default	1.8% - 2.7% (2.7%)
Corporate debt - pooled trust	$	1,512	Discounted Cash Flow	Discount Rate	6.3% (6.8%)
preferred security				Cumulative Default %	2.8% - 41.7% (11.3%)
				Loss Given Default	85% - 100% (94.4%)
Mortgage servicing rights	$	7,096	Discounted Cash Flow	Discount Rate	9.0% - 18.0% (10.5%)
				Cost to Service	$50 - $110 ($61.12)
				Float Earnings Rate	0.25% (0.25%)

Asset-backed securities: Given the level of market activity for the asset backed securities in the portfolio, the discount rates utilized in the fair value measurement were derived by analyzing current market yields for comparable securities and research reports issued by brokers and dealers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases.

Other significant unobservable inputs to the fair value measurement of the asset backed securities in the portfolio included prospective defaults and recoveries.  The cumulative default percentage represents the lifetime defaults assumed. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the default percentages and the fair value measurement. When default percentages increase, the fair value decreases. 

Corporate debt: Given the level of market activity for the trust preferred securities in the form of collateralized debt obligations, the discount rate utilized in the fair value measurement were derived by analyzing current market yields for trust preferred securities of individual name issuers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases.

Other significant unobservable inputs to the fair value measurement of the collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral.  As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current.  The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When default percentages increase, the fair value decreases. 

Mortgage servicing rights: Given the low level of market activity in the MSR market and the general difficulty in price discovery, even when activity is at historic norms, the discount rate utilized in the fair value measurement was derived by analyzing recent and historical pricing for MSRs. Adjustments were then made for various loan and investor types underlying these MSRs. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases.

Other significant unobservable inputs to the fair value measurement of MSR’s include cost to service, an input that is not as simple as taking total costs and dividing by a number of loans. It is a figure informed by marginal cost and pricing for MSRs by competing firms, taking other assumptions into consideration. It is different for different loan types. There is an inverse correlation between the cost to service and the fair value measurement. When the cost assumption increase, the fair value decreases.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following tables detail the assets carried at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015.

	Total Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2016
Impaired loans	$	4,413	$	—	$	—	$	4,413
Other real estate owned	2,792		—		—		2,792
Total	$	7,205	$	—	$	—	$	7,205
December 31, 2015
Impaired loans	$	2,096	$	—	$	—	$	2,096
Other real estate owned	755		—		—		755
Total	$	2,851	$	—	$	—	$	2,851

The following is a description of the valuation methodologies used for certain assets that are recorded at fair value on a non-recurring basis.

Other Real Estate Owned: The Company classifies property acquired through foreclosure or acceptance of deed-in-lieu of foreclosure, as other real estate owned (“OREO”) in its financial statements. Upon foreclosure, the property securing the loan is recorded at fair value as determined by real estate appraisals less the estimated selling expense. Appraisals are based upon observable market data such as comparable sales within the real estate market. Assumptions are also made based on management’s judgment of the appraisals and current real estate market conditions and therefore these assets are classified as non-recurring Level 3 assets in the fair value hierarchy.

Impaired Loans: Accounting standards require that a creditor recognize the impairment of a loan if the present value of expected future cash flows discounted at the loan’s effective interest rate (or, alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the impaired loan. Non-recurring fair value adjustments to collateral dependent loans are recorded, when necessary, to reflect partial write-downs and the specific reserve allocations based upon observable market price or current appraised value of the collateral less selling costs and discounts based on management’s judgment of current conditions. Based on the significance of management’s judgment, the Company records collateral dependent impaired loans as non-recurring Level 3 fair value measurements.

Losses on assets recorded at fair value on a non-recurring basis are as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
Impaired loans	$	(573	)	$	(162	)	$	(1,040	)	$	(249	)
Other real estate owned	—			—			(4		)	(118		)
Total	$	(573	)	$	(162	)	$	(1,044	)	$	(367	)

Disclosures about Fair Value of Financial Instruments:

The following methods and assumptions were used by management to estimate the fair value of each class of financial instruments not recorded at fair value for which it is practicable to estimate that value.

Cash and Cash Equivalents: Carrying value is assumed to represent fair value for cash and due from banks and short-term investments, which have original maturities of 90 days or less.

Loans Receivable – net: The fair value of the net loan portfolio is determined by discounting the estimated future cash flows using the prevailing interest rates and appropriate credit and prepayment risk adjustments as of period-end at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of non-performing loans is estimated using the Bank’s prior credit experience.

FHLBB stock: FHLBB stock is a non-marketable equity security which is assumed to have a fair value equal to its carrying value due to the fact that it can only be redeemed by the FHLBB at par value.

Accrued Interest Receivable: Carrying value is assumed to represent fair value.

Deposits and Mortgagors’ and Investors’ Escrow Accounts: The fair value of demand, non-interest- bearing checking, savings and certain money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using rates offered for deposits of similar remaining maturities as of period-end.

FHLBB Advances and Other Borrowings: The fair value of borrowed funds is estimated by discounting the future cash flows using market rates for similar borrowings.

As of September 30, 2016 and December 31, 2015, the carrying value and estimated fair values of the Company’s financial instruments are as described below:

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(In thousands)
September 30, 2016
Financial assets:
Cash and cash equivalents	$	214,246	$	214,246	$	—	$	—	$	214,246
Available-for-sale securities	1,052,439		3,296		900,806		148,337		1,052,439
Held-to-maturity securities	14,162		—		15,569		—		15,569
Loans held for sale	83,321		—		83,321		—		83,321
Loans receivable-net	4,689,834		—		—		4,719,683		4,719,683
FHLBB stock	52,847		—		—		52,847		52,847
Accrued interest receivable	17,888		—		—		17,888		17,888
Derivative assets	29,719		—		29,719		—		29,719
Mortgage servicing rights	7,096		—		—		7,096		7,096
Financial liabilities:
Deposits	4,695,471		—		—		4,703,203		4,703,203
Mortgagors’ and investors’ escrow accounts	9,045		—		—		9,045		9,045
FHLBB advances and other borrowings	1,102,882		—		1,101,421		—		1,101,421
Derivative liabilities	43,709		—		43,709		—		43,709
December 31, 2015
Financial assets:
Cash and cash equivalents	$	95,176	$	95,176	$	—	$	—	$	95,176
Available-for-sale securities	1,059,169		3,227		909,872		146,070		1,059,169
Held-to-maturity securities	14,565		—		15,683		—		15,683
Loans held for sale	10,136		—		10,136		—		10,136
Loans receivable-net	4,587,062		—		—		4,629,243		4,629,243
FHLBB stock	51,196		—		—		51,196		51,196
Accrued interest receivable	15,740		—		—		15,740		15,740
Derivative assets	12,910		—		12,910		—		12,910
Mortgage servicing rights	7,074		—		—		7,074		7,074
Financial liabilities:
Deposits	4,437,071		—		—		4,436,456		4,436,456
Mortgagors’ and investors’ escrow accounts	13,526		—		—		13,526		13,526
FHLBB advances and other borrowings	1,099,020		—		1,096,452		—		1,096,452
Derivative liabilities	16,675		—		16,675		—		16,675

Certain financial instruments and all nonfinancial investments are exempt from disclosure requirements. Accordingly, the aggregate fair value of amounts presented above may not necessarily represent the underlying fair value of the Company.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13. Commitments and Contingencies

Financial Instruments With Off-Balance Sheet Risk

In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit through issuing standby letters of credit and undisbursed portions of construction loans and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized on the Consolidated Statements of Condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral obligations is deemed worthless. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at September 30, 2016 and December 31, 2015:

	September 30, 2016		December 31, 2015
	(In thousands)
Commitments to extend credit:
Commitment to grant loans	$	256,564	$	219,407
Undisbursed construction loans	99,148		103,140
Undisbursed home equity lines of credit	349,655		320,140
Undisbursed commercial lines of credit	343,939		302,700
Standby letters of credit	13,253		9,477
Unused credit card lines	11,232		6,725
Unused checking overdraft lines of credit	1,396		1,293
Total	$	1,075,187	$	962,882

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include residential and commercial property, accounts receivable, inventory, property, plant and equipment, deposits, and securities.

Other Commitments

The Company invests in partnerships, including low income housing tax credit, new markets housing tax credit, and alternative energy tax credit partnerships. The net carrying balance of these investments totaled $31.9 million at September 30, 2016 and is included in other assets in the consolidated statement of condition. At September 30, 2016, the Company was contractually committed under these limited partnership agreements to make additional capital contributions of $5.3 million, which constitutes our maximum potential obligation to these partnerships.

Legal Matters

The Company is involved in various legal proceedings that have arisen in the normal course of business. The Company is not involved in any legal proceedings deemed to be material as of September 30, 2016.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

United Financial Bancorp, Inc. (the “Company” or “United”) is headquartered in Glastonbury, Connecticut, and through United Bank (the “Bank”) and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and Massachusetts through 53 banking offices, its commercial loan production offices, its mortgage loan production offices, 63 ATMs, telephone banking, mobile banking and online banking (www.bankatunited.com).

Basis of Presentation

Basis of Presentation

The consolidated interim financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Northeast Financial Advisors, Inc., United Bank Investment Sub, Inc., UCB Securities, Inc. II, UB Properties, LLC, United Financial Realty HC, Inc. and United Financial Business Trust I. All significant intercompany transactions have been eliminated.

The consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included in the interim unaudited consolidated financial statements. Interim results are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 or any future period. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s 2015 audited consolidated financial statements and notes thereto included in United Financial Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended December 31, 2015.

Common Share Repurchases

Common Share Repurchases

The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances.

Reclassifications

Reclassifications

Certain reclassifications have been made in prior periods’ consolidated financial statements to conform to the 2016 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents.

Use of Estimates

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results in the future could vary from the amounts derived from management’s estimates and assumptions. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the evaluation of securities for other-than-temporary impairment, the valuation of derivative instruments and hedging activities, and goodwill impairment valuations.

Recent Accounting Pronouncements

Statement of Cash Flows

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to address eight specific cash flow issues with the objective of reducing diversity in practice in how certain transactions are classified in the statement of cash flows. The issues identified within the ASU include: 1) debt prepayments and extinguishment costs, 2) settlement of zero-coupon debt, 3) settlement of contingent consideration, 4) insurance proceeds, 5) settlement of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) policies, 6) distributions from equity method investees, 7) beneficial interests in securitization transactions, and 8) receipts and payments with aspects of more than one class of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the ASU on the disclosures in the Company’s Statements of Cash Flows, but does not expect this ASU to have a material impact on the Company’s financial statements.

Financial Instruments

In June 2016, FASB issued ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of US GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are US Securities and Exchange Commission filers, such as the Company, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This ASU potentially could have a significant impact on the Company’s allowance for loan losses, however, no assessment of the potential impact has been determined. Efforts are in process to quantify and prepare for the ASU’s effective date.

Compensation

In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting as part of the FASB’s simplification initiative aimed at reducing complexity in accounting standards. This ASU simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including; accounting for income taxes; classification of excess tax benefits on the statement of cash flows; forfeitures; statutory tax withholding requirements; classification of awards as either equity or liabilities and; classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. This ASU is not expected to have a significant impact on the Company’s Financial Statements.

Derivatives and Hedging

In March 2016, the FASB issued ASU No. 2016-06 Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments as part of the consensus of the Emerging Issues Task Force. This ASU addresses inconsistent interpretations of whether an event that triggers an entity’s ability to exercise the embedded contingent option must be indexed to interest rates or credit risk for that option to qualify as clearly and closely related. The ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815-15-25-42 as amended by the ASU. The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. For public business entities, the amendments in the ASU are effective for annual reporting periods, and interim period therein, beginning after December 15, 2016. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU No.  2016-02 Leases (Topic 842). This ASU consists of three sections: Section A- Leases: Amendments to the FASB Accounting Standards Codification; Section B - Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification; and Section C - Background Information and Basis for Conclusions. This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts with Customers. The new leases standard represents a whole-sale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e. calendar periods beginning on January 1, 2019), and interim periods therein. For all other entities, the ASU will be effective for annual periods beginning after December 15, 2019 (i.e. calendar periods beginning on January 1, 2020), and interim periods thereafter. Early adoption will be permitted for all entities. This ASU is not expected to have a significant impact on the Company’s financial statements.

Financial Instruments

In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures and limited liability companies, at fair value through net income. This new requirement does not apply to investments that qualify for the equity method of accounting or to those that result in consolidation of these investments. The ASU supersedes current guidance and no longer requires equity securities with readily determinable fair value to be classified into categories (i.e. trading or available for sale).  The ASU clarifies that when identifying observable price changes, an entity should consider relevant transactions “that are known or can reasonably be known“ and that an entity is not required to spend undue cost and effort to identify such transactions. The ASU also indicates that an entity should consider a security’s rights and obligations, such as voting rights, distribution rights and preferences, and conversion features, when evaluating whether the security issued by the same issuer is similar to the equity security held by the entity. The ASU further provides for the elimination of disclosure requirements related to financial instruments measured at amortized cost. For public business entities, the new standard will require disclosure of fair value using the exit price notion for all financial instruments measured at amortized cost.  Pursuant to the ASU, recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all entities, the ASU permits early adoption of the instrument-specific credit risk provision. Additionally, for non-public entities, it permits early adoption of the exemption provisions related to disclosure of fair value information about financial instruments measured at amortized cost.

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Securities (Tables)

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Available for Sale Securities

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities at September 30, 2016 and December 31, 2015 are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
September 30, 2016
Available for sale:
Debt securities:
Government-sponsored residential mortgage-backed securities	$	161,388	$	3,280	$	—		$	164,668
Government-sponsored residential collateralized debt obligations	195,056		2,841		(67		)	197,830
Government-sponsored commercial mortgage-backed securities	27,107		713		—			27,820
Government-sponsored commercial collateralized debt obligations	176,706		3,020		—			179,726
Asset-backed securities	159,195		2,067		(905		)	160,357
Corporate debt securities	59,848		1,953		(1,591		)	60,210
Obligations of states and political subdivisions	221,367		4,522		(2,033		)	223,856
Total debt securities	1,000,667		18,396		(4,596		)	1,014,467
Marketable equity securities, by sector:
Banks	33,087		1,589		—			34,676
Industrial	109		55		—			164
Mutual funds	2,880		64		(2		)	2,942
Oil and gas	131		59		—			190
Total marketable equity securities	36,207		1,767		(2		)	37,972
Total available-for-sale securities	$	1,036,874	$	20,163	$	(4,598	)	$	1,052,439
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,331	$	1,199	$	(14	)	$	13,516
Government-sponsored residential mortgage-backed securities	1,831		222		—			2,053
Total held-to-maturity securities	$	14,162	$	1,421	$	(14	)	$	15,569

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2015
Available for sale:
Debt securities:
U.S. Government and government-sponsored enterprise obligations	$	10,159	$	13	$	(83	)	$	10,089
Government-sponsored residential mortgage-backed securities	146,434		731		(1,304		)	145,861
Government-sponsored residential collateralized debt obligations	287,515		855		(1,403		)	286,967
Government-sponsored commercial mortgage-backed securities	21,144		21		(200		)	20,965
Government-sponsored commercial collateralized debt obligations	128,617		626		(271		)	128,972
Asset-backed securities	162,895		43		(3,037		)	159,901
Corporate debt securities	62,356		91		(2,487		)	59,960
Obligations of states and political subdivisions	201,217		1,561		(1,663		)	201,115
Total debt securities	1,020,337		3,941		(10,448		)	1,013,830
Marketable equity securities, by sector:
Banks	41,558		1,099		(544		)	42,113
Industrial	109		34		—			143
Mutual funds	2,854		65		(4		)	2,915
Oil and gas	132		36		—			168
Total marketable equity securities	44,653		1,234		(548		)	45,339
Total available-for-sale securities	$	1,064,990	$	5,175	$	(10,996	)	$	1,059,169
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,360	$	884	$	(10	)	$	13,234
Government-sponsored residential mortgage-backed securities	2,205		244		—			2,449
Total held-to-maturity securities	$	14,565	$	1,128	$	(10	)	$	15,683

Held-to-maturity Securities

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities at September 30, 2016 and December 31, 2015 are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
September 30, 2016
Available for sale:
Debt securities:
Government-sponsored residential mortgage-backed securities	$	161,388	$	3,280	$	—		$	164,668
Government-sponsored residential collateralized debt obligations	195,056		2,841		(67		)	197,830
Government-sponsored commercial mortgage-backed securities	27,107		713		—			27,820
Government-sponsored commercial collateralized debt obligations	176,706		3,020		—			179,726
Asset-backed securities	159,195		2,067		(905		)	160,357
Corporate debt securities	59,848		1,953		(1,591		)	60,210
Obligations of states and political subdivisions	221,367		4,522		(2,033		)	223,856
Total debt securities	1,000,667		18,396		(4,596		)	1,014,467
Marketable equity securities, by sector:
Banks	33,087		1,589		—			34,676
Industrial	109		55		—			164
Mutual funds	2,880		64		(2		)	2,942
Oil and gas	131		59		—			190
Total marketable equity securities	36,207		1,767		(2		)	37,972
Total available-for-sale securities	$	1,036,874	$	20,163	$	(4,598	)	$	1,052,439
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,331	$	1,199	$	(14	)	$	13,516
Government-sponsored residential mortgage-backed securities	1,831		222		—			2,053
Total held-to-maturity securities	$	14,162	$	1,421	$	(14	)	$	15,569

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2015
Available for sale:
Debt securities:
U.S. Government and government-sponsored enterprise obligations	$	10,159	$	13	$	(83	)	$	10,089
Government-sponsored residential mortgage-backed securities	146,434		731		(1,304		)	145,861
Government-sponsored residential collateralized debt obligations	287,515		855		(1,403		)	286,967
Government-sponsored commercial mortgage-backed securities	21,144		21		(200		)	20,965
Government-sponsored commercial collateralized debt obligations	128,617		626		(271		)	128,972
Asset-backed securities	162,895		43		(3,037		)	159,901
Corporate debt securities	62,356		91		(2,487		)	59,960
Obligations of states and political subdivisions	201,217		1,561		(1,663		)	201,115
Total debt securities	1,020,337		3,941		(10,448		)	1,013,830
Marketable equity securities, by sector:
Banks	41,558		1,099		(544		)	42,113
Industrial	109		34		—			143
Mutual funds	2,854		65		(4		)	2,915
Oil and gas	132		36		—			168
Total marketable equity securities	44,653		1,234		(548		)	45,339
Total available-for-sale securities	$	1,064,990	$	5,175	$	(10,996	)	$	1,059,169
Held to maturity:
Debt securities:
Obligations of states and political subdivisions	$	12,360	$	884	$	(10	)	$	13,234
Government-sponsored residential mortgage-backed securities	2,205		244		—			2,449
Total held-to-maturity securities	$	14,565	$	1,128	$	(10	)	$	15,683

Amortized Cost and Fair Value of Debt Securities

The amortized cost and fair value of debt securities at September 30, 2016 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because some securities may be called or repaid without any penalties. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary.

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturity:
Within 1 year	$	175	$	176	$	—	$	—
After 1 year through 5 years	16,118		16,537		1,184		1,229
After 5 years through 10 years	47,906		49,018		—		—
After 10 years	217,016		218,335		11,147		12,287
	281,215		284,066		12,331		13,516
Government-sponsored residential mortgage-backed securities	161,388		164,668		1,831		2,053
Government-sponsored residential collateralized debt obligations	195,056		197,830		—		—
Government-sponsored commercial mortgage-backed securities	27,107		27,820		—		—
Government-sponsored commercial collateralized debt obligations	176,706		179,726		—		—
Asset-backed securities	159,195		160,357		—		—
Total debt securities	$	1,000,667	$	1,014,467	$	14,162	$	15,569

Summary of Gross Unrealized Losses and Fair Value

The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of September 30, 2016 and December 31, 2015:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
September 30, 2016
Available for sale:
Debt Securities:
Government-sponsored residential collateralized debt obligations	$	6,821	$	(25	)	$	6,929	$	(42	)	$	13,750	$	(67	)
Asset-backed securities	1,207		(25		)	26,357		(880		)	27,564		(905		)
Corporate debt securities	—		—			3,165		(1,591		)	3,165		(1,591		)
Obligations of states and political subdivisions	47,552		(913		)	44,100		(1,120		)	91,652		(2,033		)
Total debt securities	55,580		(963		)	80,551		(3,633		)	136,131		(4,596		)
Marketable equity securities	—		—			95		(2		)	95		(2		)
Total available-for-sale securities	$	55,580	$	(963	)	$	80,646	$	(3,635	)	$	136,226	$	(4,598	)
Held to Maturity:
Debt Securities:
Obligations of states and political subdivisions	$	1,093	$	(14	)	$	—	$	—		$	1,093	$	(14	)
Total held to maturity securities	$	1,093	$	(14	)	$	—	$	—		$	1,093	$	(14	)
December 31, 2015
Available for sale:
Debt Securities:
U.S. Government and government-sponsored enterprise obligations	$	4,867	$	(66	)	$	4,977	$	(17	)	$	9,844	$	(83	)
Government-sponsored residential mortgage-backed securities	107,142		(1,183		)	7,195		(121		)	114,337		(1,304		)
Government-sponsored residential collateralized debt obligations	152,278		(1,357		)	3,506		(46		)	155,784		(1,403		)
Government-sponsored commercial mortgage-backed securities	16,207		(200		)	—		—			16,207		(200		)
Government-sponsored commercial collateralized debt obligations	38,151		(221		)	3,496		(50		)	41,647		(271		)
Asset-backed securities	93,723		(1,233		)	49,462		(1,804		)	143,185		(3,037		)
Corporate debt securities	42,102		(797		)	6,720		(1,690		)	48,822		(2,487		)
Obligations of states and political subdivisions	47,878		(946		)	42,685		(717		)	90,563		(1,663		)
Total debt securities	502,348		(6,003		)	118,041		(4,445		)	620,389		(10,448		)
Marketable equity securities	18,449		(287		)	6,176		(261		)	24,625		(548		)
Total available-for-sale securities	$	520,797	$	(6,290	)	$	124,217	$	(4,706	)	$	645,014	$	(10,996	)
Held to Maturity:
Debt Securities:
Obligations of states and political subdivisions	$	1,104	$	(10	)	$	—	$	—		$	1,104	$	(10	)
Total held to maturity securities	$	1,104	$	(10	)	$	—	$	—		$	1,104	$	(10	)

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Loans Receivable and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Summary of Company's Loan Portfolio

A summary of the Company’s loan portfolio is as follows:

	September 30, 2016					December 31, 2015
	Amount			Percent		Amount			Percent
	(Dollars in thousands)
Commercial real estate loans:
Owner-occupied	$	392,168		8.3	%	$	322,084		7.0	%
Investor non-owner occupied	1,702,701			36.1		1,673,248			36.3
Construction	90,380			1.9		129,922			2.8
Total commercial real estate loans	2,185,249			46.3		2,125,254			46.1
Commercial business loans	660,676			14.0		603,332			13.1
Consumer loans:
Residential real estate	1,129,079			23.9		1,179,915			25.6
Home equity	479,390			10.2		431,282			9.3
Residential construction	52,476			1.1		41,084			0.9
Other consumer	213,830			4.5		233,064			5.0
Total consumer loans	1,874,775			39.7		1,885,345			40.8
Total loans	4,720,700			100.0	%	4,613,931			100.0	%
Net deferred loan costs and premiums	10,214					7,018
Allowance for loan losses	(41,080		)			(33,887		)
Loans - net	$	4,689,834				$	4,587,062

Summary of Accretable Yields for Total Acquired Loan Portfolio

The following table summarizes the activity in the the accretable yield balance for PCI loans for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Balance at beginning of period	$	(118	)	$	(570	)	$	(413	)	$	(1,587	)
Accretion	—			1			—			178
Reclassification to nonaccretable balance	—			42			232			882
Paid off	—			114			63			114
Balance at end of period	$	(118	)	$	(413	)	$	(118	)	$	(413	)

Company's Loans by Risk Rating

The following table presents the Company’s loans by risk rating at September 30, 2016 and December 31, 2015:

	Owner-Occupied CRE		Investor CRE		Construction		Commercial Business		Residential Real Estate		Home Equity		Other Consumer
	(In thousands)
September 30, 2016
Loans rated 1-5	$	363,114	$	1,656,821	$	140,314	$	629,212	$	1,111,502	$	473,948	$	213,507
Loans rated 6	7,219		16,552		254		6,518		1,286		—		—
Loans rated 7	21,835		29,328		2,288		24,946		16,291		5,441		323
Loans rated 8	—		—		—		—		—		—		—
Loans rated 9	—		—		—		—		—		1		—
	$	392,168	$	1,702,701	$	142,856	$	660,676	$	1,129,079	$	479,390	$	213,830
December 31, 2015
Loans rated 1-5	$	298,509	$	1,610,582	$	156,607	$	568,248	$	1,162,393	$	426,702	$	233,054
Loans rated 6	10,074		38,448		10,860		8,382		1,355		24		—
Loans rated 7	13,501		24,218		3,539		26,655		16,167		4,553		10
Loans rated 8	—		—		—		47		—		—		—
Loans rated 9	—		—		—		—		—		3		—
	$	322,084	$	1,673,248	$	171,006	$	603,332	$	1,179,915	$	431,282	$	233,064

Summary of Activity in Allowance for Loan Losses

Activity in the allowance for loan losses for the periods ended September 30, 2016 and 2015 were as follows:

	Owner-Occupied CRE			Investor CRE			Construction			Commercial Business			Residential Real Estate			Home Equity			Other Consumer			Unallocated		Total
	(In thousands)
Three Months Ended September 30, 2016
Balance, beginning of period	$	3,267		$	13,646		$	2,014		$	6,894		$	7,907		$	2,532		$	692		$	1,009	$	37,961
Provision (credit) for loan losses	72			1,082			(201		)	527			404			245			1,321			316		3,766
Loans charged off	—			(287		)	—			(188		)	(216		)	(81		)	(368		)	—		(1,140		)
Recoveries of loans previously charged off	—			302			3			146			—			15			27			—		493
Balance, end of period	$	3,339		$	14,743		$	1,816		$	7,379		$	8,095		$	2,711		$	1,672		$	1,325	$	41,080
Three Months Ended September 30, 2015
Balance, beginning of period	$	1,499		$	10,459		$	1,963		$	5,334		$	6,995		$	2,052		$	104		$	450	$	28,856
Provision (credit) for loan losses	169			1,222			(224		)	690			960			178			57			200		3,252
Loans charged off	—			(215		)	—			(840		)	(304		)	(67		)	(70		)	—		(1,496		)
Recoveries of loans previously charged off	—			—			—			121			75			—			24			—		220
Balance, end of period	$	1,668		$	11,466		$	1,739		$	5,305		$	7,726		$	2,163		$	115		$	650	$	30,832
Nine Months Ended September 30, 2016
Balance, beginning of period	$	2,174		$	12,859		$	1,895		$	5,827		$	7,801		$	2,391		$	146		$	794	$	33,887
Provision (credit) for loan losses	1,247			2,587			(82		)	1,814			974			692			2,315			531		10,078
Loans charged off	(138		)	(1,083		)	—			(744		)	(733		)	(438		)	(907		)	—		(4,043		)
Recoveries of loans previously charged off	56			380			3			482			53			66			118			—		1,158
Balance, end of period	$	3,339		$	14,743		$	1,816		$	7,379		$	8,095		$	2,711		$	1,672		$	1,325	$	41,080
Nine Months Ended September 30, 2015
Balance, beginning of period	$	1,281		$	8,137		$	1,470		$	5,808		$	5,998		$	1,929		$	75		$	111	$	24,809
Provision for loan losses	387			4,034			771			651			2,200			448			195			539		9,225
Loans charged off	—			(837		)	(502		)	(1,793		)	(708		)	(214		)	(239		)	—		(4,293		)
Recoveries of loans previously charged off	—			132			—			639			236			—			84			—		1,091
Balance, end of period	$	1,668		$	11,466		$	1,739		$	5,305		$	7,726		$	2,163		$	115		$	650	$	30,832

Summary of Allowance for Loan Losses and Impaired Loans

Further information pertaining to the allowance for loan losses and impaired loans at September 30, 2016 and December 31, 2015 follows:

	Owner-Occupied CRE		Investor CRE		Construction		Commercial Business		Residential Real Estate		Home Equity		Other Consumer		Unallocated		Total
	(In thousands)
September 30, 2016
Allowance related to loans individually evaluated and deemed impaired	$	—	$	—	$	—	$	761	$	70	$	—	$	391	$	—	$	1,222
Allowance related to loans collectively evaluated and not deemed impaired	3,339		14,743		1,816		6,402		8,025		2,711		1,281		1,325		39,642
Allowance related to loans acquired with deteriorated credit quality	—		—		—		216		—		—		—		—		216
Total allowance for loan losses	$	3,339	$	14,743	$	1,816	$	7,379	$	8,095	$	2,711	$	1,672	$	1,325	$	41,080
Loans deemed impaired	$	3,539	$	9,747	$	3,863	$	10,929	$	16,932	$	6,528	$	512	$	—	$	52,050
Loans not deemed impaired	388,629		1,691,653		138,993		648,438		1,112,147		472,862		211,208		—		4,663,930
Loans acquired with deteriorated credit quality	—		1,301		—		1,309		—		—		2,110		—		4,720
Total loans	$	392,168	$	1,702,701	$	142,856	$	660,676	$	1,129,079	$	479,390	$	213,830	$	—	$	4,720,700
December 31, 2015
Allowance related to loans individually evaluated and deemed impaired	$	—	$	—	$	147	$	121	$	74	$	—	$	—	$	—	$	342
Allowance related to loans collectively evaluated and not deemed impaired	2,174		12,859		1,748		5,531		7,727		2,391		146		794		33,370
Allowance related to loans acquired with deteriorated credit quality	—		—		—		175		—		—		—		—		175
Total allowance for loan losses	$	2,174	$	12,859	$	1,895	$	5,827	$	7,801	$	2,391	$	146	$	794	$	33,887
Loans deemed impaired	$	4,037	$	13,923	$	4,660	$	13,035	$	16,036	$	4,556	$	8	$	—	$	56,255
Loans not deemed impaired	317,628		1,657,721		166,346		588,982		1,163,879		426,726		230,061		—		4,551,343
Loans acquired with deteriorated credit quality	419		1,604		—		1,315		—		—		2,995		—		6,333
Total loans	$	322,084	$	1,673,248	$	171,006	$	603,332	$	1,179,915	$	431,282	$	233,064	$	—	$	4,613,931

Summary of Past Due and Non-Accrual Loans

The following is a summary of past due and non-accrual loans at September 30, 2016 and December 31, 2015, including purchased credit impaired loans:

	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Past Due 90 Days or More and Still Accruing		Loans on Non-accrual
	(In thousands)
September 30, 2016
Owner-occupied CRE	$	1,015	$	160	$	1,909	$	3,084	$	—	$	2,933
Investor CRE	1,243		1,510		3,242		5,995		178		4,079
Construction	—		—		2,109		2,109		—		2,315
Commercial business loans	690		202		2,360		3,253		38		2,686
Residential real estate	236		2,649		6,996		9,881		—		15,563
Home equity	1,248		1,181		2,151		4,580		—		5,419
Other consumer	1,854		450		256		2,560		242		333
Total	$	6,286	$	6,152	$	19,023	$	31,462	$	458	$	33,328
December 31, 2015
Owner-occupied CRE	$	900	$	191	$	1,505	$	2,596	$	—	$	3,055
Investor CRE	3,154		2,498		4,519		10,171		—		8,565
Construction	214		449		2,135		2,798		—		2,808
Commercial business loans	526		266		2,804		3,596		66		4,244
Residential real estate	8,507		2,112		6,936		17,555		238		14,056
Home equity	2,009		646		1,549		4,204		—		5,066
Other consumer	17		3		8		28		3		8
Total	$	15,327	$	6,165	$	19,456	$	40,948	$	307	$	37,802

Summary of Impaired Loans with and without Valuation Allowance

The following is a summary of impaired loans with and without a valuation allowance as of September 30, 2016 and December 31, 2015:

	September 30, 2016						December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
Impaired loans without a valuation allowance:
Owner-occupied CRE	$	3,539	$	4,459	$	—	$	4,037	$	5,370	$	—
Investor CRE	9,747		10,404		—		13,923		15,011		—
Construction	3,863		5,932		—		4,442		6,869		—
Commercial business loans	9,977		13,618		—		12,634		14,477		—
Residential real estate	15,674		18,845		—		14,056		16,876		—
Home equity	6,528		7,376		—		5,259		5,953		—
Other consumer	33		33		—		8		11		—
Total	49,361		60,667		—		54,359		64,567		—
Impaired loans with a valuation allowance:
Construction	—		—		—		218		218		147
Commercial business loans	952		952		761		401		401		121
Residential real estate	1,258		1,274		70		1,277		1,292		74
Other consumer	479		1,617		391		—		—		—
Total	2,689		3,843		1,222		1,896		1,911		342
Total impaired loans	$	52,050	$	64,510	$	1,222	$	56,255	$	66,478	$	342

Average Recorded Investment in Impaired Loans

The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the periods indicated:

	For the Three Months   Ended September 30, 2016				For the Three Months   Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Owner-occupied CRE	$	4,037	$	—	$	5,310	$	67
Investor CRE	10,737		218		12,537		385
Construction	4,012		30		3,867		26
Commercial business loans	12,706		—		6,479		493
Residential real estate	16,843		185		15,138		779
Home equity	5,992		71		3,957		51
Other consumer	921		—		19		8
Total	$	55,248	$	504	$	47,307	$	1,809

	For the Nine Months   Ended September 30, 2016				For the Nine Months   Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Owner-occupied CRE	$	4,073	$	241	$	6,253	$	171
Investor CRE	11,717		325		12,288		821
Construction	4,499		104		3,564		83
Commercial business loans	13,034		337		6,536		804
Residential real estate	16,466		556		14,303		1,161
Home equity	5,592		156		3,316		91
Other consumer	469		1		28		9
Total	$	55,850	$	1,720	$	46,288	$	3,140

Troubled Debt Restructurings

The following table provides detail of TDR balances for the periods presented:

	At September 30, 2016		At December 31, 2015
	(In thousands)
Recorded investment in TDRs:
Accrual status	$	18,758	$	18,453
Non-accrual status	7,345		5,611
Total recorded investment in TDRs	$	26,103	$	24,064
Accruing TDRs performing under modified terms more than one year	$	8,394	$	5,821
Specific reserves for TDRs included in the balance of allowance for loan losses	$	690	$	223
Additional funds committed to borrowers in TDR status	$	—	$	513

Loans Restructured as Troubled Debt Restructurings

Loans restructured as TDRs during the three and nine months ended September 30, 2016 and 2015 are set forth in the following table:

	Three Months Ended					Nine Months Ended
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
September 30, 2016
Owner-occupied CRE	—	$	—	$	—	5	$	654	$	654
Construction	—	—		—		2	67		67
Commercial business	2	2,083		2,083		7	4,667		6,750
Residential real estate	4	377		385		13	1,320		1,705
Home equity	5	886		886		14	1,338		2,224
Total TDRs	11	$	3,346	$	3,354	41	$	8,046	$	11,400
September 30, 2015
Investor CRE	—	$	—	$	—	2	$	791	$	791
Construction	—	—		—		2	564		564
Commercial business	3	592		592		5	1,340		1,340
Residential real estate	2	59		59		15	2,544		2,561
Home equity	5	455		455		9	622		602
Total TDRs	10	$	1,106	$	1,106	33	$	5,861	$	5,858

Summary of How Loans were Modified as TDRs

The following table provides information on loan balances modified as TDRs during the period:

	Three Months Ended September 30,
	2016										2015
	Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other		Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other
	(In thousands)
Commercial business	$	—	$	—	$	100	$	—	$	1,983	$	585	$	—	$	7	$	—	$	—
Residential real estate	87		—		290		—		—		—		39		101		—		—
Home equity	—		261		137		488		—		—		—		20		—		354
	$	87	$	261	$	527	$	488	$	1,983	$	585	$	39	$	128	$	—	$	354

	Nine Months Ended September 30,
	2016										2015
	Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other		Extended Maturity		Adjusted Interest Rates		Adjusted Rate and Extended Maturity		Payment Deferral		Other
	(In thousands)
Owner-occupied CRE	$	510	$	—	$	86	$	—	$	58	$	—	$	—	$	—	$	—	$	—
Investor CRE	—		—		—		—		—		538		—		253		—		—
Construction	23		—		44		—		—		564		—		—		—		—
Commercial business	2,000		—		243		348		2,076		1,333		—		7		—		—
Residential real estate	87		—		672		561		—		—		940		370		786		529
Home equity	—		261		473		604		—		—		—		95		28		418
	$	2,620	$	261	$	1,518	$	1,513	$	2,134	$	2,435	$	940	$	725	$	814	$	947

Summary of Loans Modified as TDRs within Previous 12 Months and Payment Default

The following table provides information on loans modified as TDRs within the previous 12 months and for which there was a payment default during the periods presented:

	September 30, 2016			September 30, 2015
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(In thousands)
Owner-occupied CRE	—	$	—	4	$	359
Investor CRE	—	—		3	880
Construction	1	437		—	—
Residential real estate	—	—		3	402
Total	1	$	437	10	$	1,641

Summary of Mortgage Servicing Rights Activity

The following table summarizes mortgage servicing rights activity for the three and nine months ended September 30, 2016 and 2015.

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Mortgage servicing rights:
Balance at beginning of period	$	6,589		$	5,994		$	7,074		$	4,729
Change in fair value recognized in net income	(114		)	(888		)	(1,800		)	(888		)
Issuances	621			889			1,822			2,154
Fair value of mortgage servicing rights at end of period	$	7,096		$	5,995		$	7,096		$	5,995

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Goodwill and Core Deposit Intangibles (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill and Core Deposit Intangible Assets

The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:

	Goodwill		Core Deposit Intangibles
	(In thousands)
Balance at December 31, 2014	$	115,240	$	9,302
Adjustments	41		—
Amortization expense	—		(1,796		)
Balance at December 31, 2015	$	115,281	$	7,506
Amortization expense	—		(1,219		)
Balance at September 30, 2016	$	115,281	$	6,287
Estimated amortization expense for the years ending December 31,
2016 (remaining three months)			$	385
2017			1,411
2018			1,219
2019			1,026
2020			834
2021 and thereafter			1,412
Total remaining			$	6,287

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Borrowings (Tables)

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Contractual Maturities and Weighted-Average Rates of Outstanding Advances

The Bank is a member of the FHLBB. Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of September 30, 2016 and December 31, 2015 are summarized below:

	September 30, 2016				December 31, 2015
	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
	(Dollars in thousands)
2016	$	445,000	0.63	%	$	637,580	0.60	%
2017	288,000		1.09		151,000		1.76
2018	140,044		1.48		120,795		1.54
2019	20,000		1.45		20,000		1.63
2020 and thereafter	82,306		0.73		16,130		2.21
	$	975,350	0.91	%	$	945,505	0.95	%

Schedule of Other Borrowings by Category

The following table presents other borrowings by category as of the dates indicated:

	September 30, 2016		December 31, 2015
	(In thousands)
Subordinated debentures	$	79,658	$	79,489
Wholesale repurchase agreements	20,000		45,000
Customer repurchase agreements	21,387		19,278
Other	4,354		6,250
Total other borrowings	$	125,399	$	150,017

Schedule of Outstanding Borrowings Under Repurchase Agreements

The following table presents the Company’s outstanding borrowings under repurchase agreements as of September 30, 2016 and December 31, 2015:

	Remaining Contractual Maturity of the Agreements
	Overnight		Up to 1 Year		1 - 3 Years		Greater than 3 Years		Total
	(In thousands)
September 30, 2016
Repurchase Agreements
U.S. Agency Securities	$	21,387	$	—	$	20,000	$	—	$	41,387
December 31, 2015
Repurchase Agreements
U.S. Agency Securities	$	19,278	$	25,000	$	20,000	$	—	$	64,278

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities

Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of September 30, 2016 and December 31, 2015 is as follows:

	Notional Amount		Weighted-Average Remaining Maturity	Weighted-Average Rate						Estimated Fair Value, Net Asset (Liability)
				Received			Paid
	(In thousands)		(In years)							(In thousands)
September 30, 2016
Cash flow hedges:
Forward starting interest rate swaps on future borrowings	$	100,000	7.61	TBD		(1)	2.43	%		$	(5,926	)
Interest rate swaps	330,000		2.60	0.78	%		1.47	%		(8,592		)
Fair value hedges:
Interest rate swaps	35,000		0.97	1.04	%		0.60	%	(2)	97
Non-hedging derivatives:
Forward loan sale commitments	121,961		0.00							(297		)
Derivative loan commitments	47,921		0.00							868
Interest rate swap	7,500		9.79							(90		)
Loan level swaps - dealer(3)	439,749		7.84	2.23	%		3.80	%		(28,769		)
Loan level swaps - borrowers(3)	439,749		7.84	3.80	%		2.23	%		28,719
Total	$	1,521,880								$	(13,990	)
December 31, 2015
Cash flow hedges:
Forward starting interest rate swaps on future borrowings	$	150,000	7.99	TBD		(1)	2.46	%		$	(2,072	)
Interest rate swaps	280,000		2.65	0.46	%		1.28	%		(2,020		)
Fair value hedges:
Interest rate swaps	35,000		1.72	1.04	%		0.48	%	(2)	24
Non-hedging derivatives:
Forward loan sale commitments	25,060		0.00							(13		)
Derivative loan commitments	9,403		0.00							223
Loan level swaps - dealer(3)	333,971		9.05	1.94	%		3.93	%		(12,059		)
Loan level swaps - borrowers(3)	333,981		9.05	3.93	%		1.94	%		12,152
Total	$	1,167,415								$	(3,765	)

(1) The receiver leg of the cash flow hedges is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for these forward starting cash flow hedges is October 16, 2017.

(2) The paying leg is one month LIBOR plus a fixed spread; above rate in effect as of the date indicated.

(3) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties.

Tabular Disclosure of Fair Values of Derivative Instruments

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of September 30, 2016 and December 31, 2015:

	Derivative Assets					Derivative Liabilities
		Fair Value					Fair Value
	Balance Sheet Location	Sep 30, 2016		Dec 31, 2015		Balance Sheet Location	Sep 30, 2016		Dec 31, 2015
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate swap - cash flow hedge	Other Assets	$	21	$	478	Other Liabilities	$	14,539	$	4,570
Interest rate swap - fair value hedge	Other Assets	97		50		Other Liabilities	—		26
Total derivatives designated as hedging instruments		$	118	$	528		$	14,539	$	4,596
Derivatives not designated as hedging instruments:
Forward loan sale commitments	Other Assets	$	4	$	7	Other Liabilities	$	301	$	20
Derivative loan commitments	Other Assets	868		223			—		—
Interest rate swap	Other Assets	10		—		Other Liabilities	100		—
Interest rate swap - with customers	Other Assets	28,719		12,152			—		—
Interest rate swap - with counterparties		—		—		Other Liabilities	28,769		12,059
Total derivatives not designated as hedging		$	29,601	$	12,382		$	29,170	$	12,079

Schedule of Effect of Derivative Instruments in Statements of Operations

The tables below presents the effect of derivative instruments in the Company’s Statements of Changes in Stockholders’ Equity designated as hedging instruments for the three and nine months ended September 30, 2016 and 2015:

Cash Flow Hedges
	Amount of Gain (Loss) Recognized in AOCI  (Effective Portion)
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016			2015
	(In thousands)
Interest rate swaps	$	2,190	$	(4,898	)	$	(10,426	)	$	(5,521	)

	Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
Derivatives Designated as Cash Flow Hedging Instruments	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(In thousands)
Interest rate swaps	$	664	$	—	$	1,844	$	(12	)

The tables below present information pertaining to the Company’s derivatives in the Consolidated Statements of Net Income designated as hedging instruments for the three and nine months ended September 30, 2016 and 2015:

Fair Value Hedges
		Amount of Gain (Loss) Recognized in Income for Derivatives
Derivatives Designated as Fair Value Hedging Instruments	Location of Gain (Loss) Recognized in Income	Three Months Ended September 30,						Nine Months Ended September 30,
		2016			2015			2016			2015
		(In thousands)
Interest Rate Swaps	Interest income	$	100		$	137		$	73		$	303
		Amount of Gain (Loss) Recognized in Income for Hedged Items
		Three Months Ended September 30,						Nine Months Ended September 30,
		2016			2015			2016			2015
		(In thousands)
Interest Rate Swaps	Interest income	$	(100	)	$	(138	)	$	(73	)	$	(306	)

The table below presents information pertaining to the Company’s derivatives not designated as hedging instruments in the Consolidated Statements of Net Income as of September 30, 2016 and 2015:

	Amount of Gain (Loss) Recognized in Income
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(In thousands)
Derivatives not designated as hedging instruments:
Derivative loan commitments	$	(329	)	$	1,568		$	645		$	614
Forward loan sale commitments	(317		)	(37		)	(284		)	39
Interest rate swaps	(190		)	(245		)	(17		)	(3		)
	$	(836	)	$	1,286		$	344		$	650

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Stock-Based Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Activity Related to Stock Options

The following table presents the activity related to stock options outstanding, including options that have stock appreciation rights (“SARs”), under the Plans for the nine months ended September 30, 2016:

	Number of Stock Options		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2015	2,649,735		$	10.88
Granted	—		—
Exercised	(506,854	)	9.28
Forfeited or expired	(27,696	)	13.67
Outstanding at September 30, 2016	2,115,185		$	11.22	5.3	$	5.5
Stock options vested and exercisable at September 30, 2016	1,992,585		$	11.07	5.2	$	5.5

Activity for Restricted Stock

The following table presents the activity for restricted stock for the nine months ended September 30, 2016:

	Number of Shares		Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2015	326,013		$	13.20
Granted	39,328		11.70
Vested	(21,377	)	13.19
Forfeited	—		—
Unvested as of September 30, 2016	343,964		$	13.03

ESOP Shares

The ESOP shares as of the period indicated below were as follows:

	September 30, 2016
Allocated shares	1,175,239
Shares allocated for release	17,110
Unreleased shares	553,219
Total ESOP shares	1,745,568
Market value of unreleased shares (in thousands)	$	7,893

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Regulatory Capital Amounts and Ratios

The following is a summary of the Company’s and the Bank’s regulatory capital amounts and ratios as of September 30, 2016 and December 31, 2015 compared to the FDIC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy:

	Actual				Minimum For Capital Adequacy Purposes				Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
United Bank
September 30, 2016
Total capital to risk weighted assets	$	601,416	12.3	%	$	391,165	8.0	%	$	488,956	10.0	%
Common equity tier 1 capital to risk weighted assets	558,812		11.4		220,584		4.5		318,621		6.5
Tier 1 capital to risk weighted assets	558,812		11.4		294,112		6.0		392,149		8.0
Tier 1 capital to total average assets	558,812		8.9		251,151		4.0		313,939		5.0
December 31, 2015
Total capital to risk weighted assets	$	558,969	11.2	%	$	398,552	8.0	%	$	498,190	10.0	%
Common equity tier 1 capital to risk weighted assets	523,786		10.5		224,266		4.5		323,940		6.5
Tier 1 capital to risk weighted assets	523,786		10.5		299,022		6.0		398,695		8.0
Tier 1 capital to total average assets	523,786		8.9		234,882		4.0		293,602		5.0
United Financial Bancorp, Inc.
September 30, 2016
Total capital to risk weighted assets	$	655,285	13.3	%	$	394,156	8.0	%	N/A		N/A
Common equity tier 1 capital to risk weighted assets	537,681		10.9		221,978		4.5		N/A		N/A
Tier 1 capital to risk weighted assets	537,681		10.9		295,971		6.0		N/A		N/A
Tier 1 capital to total average assets	537,681		8.5		253,026		4.0		N/A		N/A
December 31, 2015
Total capital to risk weighted assets	$	628,915	12.5	%	$	401,542	8.0	%	N/A		N/A
Common equity tier 1 capital to risk weighted assets	518,732		10.3		225,972		4.5		N/A		N/A
Tier 1 capital to risk weighted assets	518,732		10.3		301,296		6.0		N/A		N/A
Tier 1 capital to total average assets	518,732		8.9		233,926		4.0		N/A		N/A

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss, Net of Taxes

The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows:

	September 30, 2016			December 31, 2015
	(In thousands)
Benefit plans:
Unrecognized net actuarial loss	$	(6,704	)	$	(7,080	)
Tax effect	2,416			2,551
Net-of-tax amount	(4,288		)	(4,529		)
Securities available for sale:
Net unrealized gain (loss)	15,562			(5,821		)
Tax effect	(5,600		)	2,088
Net-of-tax amount	9,962			(3,733		)
Interest rate swaps:
Net unrealized loss	(14,518		)	(4,092		)
Tax effect	5,231			1,475
Net-of-tax amount	(9,287		)	(2,617		)
	$	(3,613	)	$	(10,879	)

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Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income Per Share

The following table sets forth the calculation of basic and diluted net income per share for the three and nine months ended September 30, 2016 and 2015:

	For the Three Months   Ended September 30,						For the Nine Months   Ended September 30,
	2016			2015			2016			2015
	(In thousands, except share data)
Net income available to common stockholders	$	14,159		$	13,381		$	35,111		$	39,738
Weighted-average common shares outstanding	50,357,085			49,510,996			50,179,784			49,414,633
Less: average number of unallocated ESOP award shares	(556,980		)	(579,793		)	(562,648		)	(585,440		)
Weighted-average basic shares outstanding	49,800,105			48,931,203			49,617,136			48,829,193
Dilutive effect of stock options	341,070			498,606			299,913			510,078
Weighted-average diluted shares	50,141,175			49,429,809			49,917,049			49,339,271
Net income per share:
Basic	$	0.28		$	0.27		$	0.71		$	0.81
Diluted	$	0.28		$	0.27		$	0.70		$	0.81

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Gains (Losses) in Fair Value Related to Mortgage Loans Held for Sale

The following table presents the gains in fair value related to mortgage loans held for sale for the periods indicated. Changes in the fair value of mortgage loans held for sale are reported as a component of income from mortgage banking activity in the Consolidated Statements of Net Income.

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2016		2015			2016		2015
	(In thousands)
Mortgage loans held for sale	$	1,490	$	(498	)	$	1,530	$	183

Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The following tables detail the assets and liabilities carried at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during the nine months ended September 30, 2016 and 2015.

	Total Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2016
Available-for-Sale Securities:
Government-sponsored residential mortgage-backed securities	$	164,668	$	—	$	164,668	$	—
Government-sponsored residential collateralized debt obligations	197,830		—		197,830		—
Government-sponsored commercial mortgage-backed securities	27,820		—		27,820		—
Government-sponsored commercial collateralized debt obligations	179,726		—		179,726		—
Asset-backed securities	160,357		—		13,532		146,825
Corporate debt securities	60,210		—		58,698		1,512
Obligations of states and political subdivisions	223,856		—		223,856		—
Marketable equity securities	37,972		3,296		34,676		—
Total available-for-sale securities	$	1,052,439	$	3,296	$	900,806	$	148,337
Mortgage loan derivative assets	$	882	$	—	$	882	$	—
Mortgage loan derivative liabilities	401		—		401		—
Loans held for sale	83,321		—		83,321		—
Mortgage servicing rights	7,096		—		—		7,096
Interest rate swap assets	28,837		—		28,837		—
Interest rate swap liabilities	43,308		—		43,308		—
December 31, 2015
Available-for-Sale Securities:
U.S. Government and government-sponsored enterprise obligations	$	10,089	$	—	$	10,089	$	—
Government-sponsored residential mortgage-backed securities	145,861		—		145,861		—
Government-sponsored residential collateralized-debt obligations	286,967		—		286,967		—
Government-sponsored commercial mortgage-backed securities	20,965		—		20,965		—
Government-sponsored commercial collateralized-debt obligations	128,972		—		128,972		—
Asset-backed securities	159,901		—		15,388		144,513
Corporate debt securities	59,960		—		58,403		1,557
Obligations of states and political subdivisions	201,115		—		201,115		—
Marketable equity securities	45,339		3,227		42,112		—
Total available-for-sale securities	$	1,059,169	$	3,227	$	909,872	$	146,070
Mortgage loan derivative assets	$	230	$	—	$	230	$	—
Mortgage loan derivative liabilities	20		—		20		—
Loans held for sale	10,136		—		10,136		—
Mortgage servicing rights	7,074		—		—		7,074
Interest rate swap assets	12,680		—		12,680		—
Interest rate swap liabilities	16,655		—		16,655		—

Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs

The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
Balance of available-for-sale securities, at beginning of period	$	145,134		$	146,956		$	146,070		$	137,207
Purchases (sales)	91			2,995			(909		)	12,794
Principal payments and net accretion	(244		)	(532		)	(722		)	(967		)
Total realized losses included in earnings	(14		)	—			(164		)	—
Total unrealized gains (losses) included in other comprehensive income/loss	3,370			(800		)	4,062			(415		)
Balance at end of period	$	148,337		$	148,619		$	148,337		$	148,619
Balance of mortgage servicing rights, at beginning of period	$	6,589		$	5,994		$	7,074		$	4,729
Issuances	621			889			1,822			2,154
Change in fair value recognized in net income	(114		)	(888		)	(1,800		)	(888		)
Balance at end of period	$	7,096		$	5,995		$	7,096		$	5,995

Quantitative Information of Assets Measured at Fair Value on a Recurring Basis

The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at September 30, 2016:

(Dollars in thousands)
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Asset-backed securities	$	146,825	Discounted Cash Flow	Discount Rates	2.4% - 3.7% (3.7%)
				Cumulative Default %	6.0% - 8.3% (8.4%)
				Loss Given Default	1.8% - 2.7% (2.7%)
Corporate debt - pooled trust	$	1,512	Discounted Cash Flow	Discount Rate	6.3% (6.8%)
preferred security				Cumulative Default %	2.8% - 41.7% (11.3%)
				Loss Given Default	85% - 100% (94.4%)
Mortgage servicing rights	$	7,096	Discounted Cash Flow	Discount Rate	9.0% - 18.0% (10.5%)
				Cost to Service	$50 - $110 ($61.12)
				Float Earnings Rate	0.25% (0.25%)

Summary of Assets Recorded at Fair Value on Non-Recurring Basis

The following tables detail the assets carried at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015.

	Total Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2016
Impaired loans	$	4,413	$	—	$	—	$	4,413
Other real estate owned	2,792		—		—		2,792
Total	$	7,205	$	—	$	—	$	7,205
December 31, 2015
Impaired loans	$	2,096	$	—	$	—	$	2,096
Other real estate owned	755		—		—		755
Total	$	2,851	$	—	$	—	$	2,851

Summary of Gains (Losses) on Assets Recorded at Fair Value on Non-Recurring Basis

on assets recorded at fair value on a non-recurring basis are as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In thousands)
Impaired loans	$	(573	)	$	(162	)	$	(1,040	)	$	(249	)
Other real estate owned	—			—			(4		)	(118		)
Total	$	(573	)	$	(162	)	$	(1,044	)	$	(367	)

Summary of Carrying Value and Estimated Fair Values of Financial Instruments

As of September 30, 2016 and December 31, 2015, the carrying value and estimated fair values of the Company’s financial instruments are as described below:

	Carrying Value		Fair Value
			Level 1		Level 2		Level 3		Total
	(In thousands)
September 30, 2016
Financial assets:
Cash and cash equivalents	$	214,246	$	214,246	$	—	$	—	$	214,246
Available-for-sale securities	1,052,439		3,296		900,806		148,337		1,052,439
Held-to-maturity securities	14,162		—		15,569		—		15,569
Loans held for sale	83,321		—		83,321		—		83,321
Loans receivable-net	4,689,834		—		—		4,719,683		4,719,683
FHLBB stock	52,847		—		—		52,847		52,847
Accrued interest receivable	17,888		—		—		17,888		17,888
Derivative assets	29,719		—		29,719		—		29,719
Mortgage servicing rights	7,096		—		—		7,096		7,096
Financial liabilities:
Deposits	4,695,471		—		—		4,703,203		4,703,203
Mortgagors’ and investors’ escrow accounts	9,045		—		—		9,045		9,045
FHLBB advances and other borrowings	1,102,882		—		1,101,421		—		1,101,421
Derivative liabilities	43,709		—		43,709		—		43,709
December 31, 2015
Financial assets:
Cash and cash equivalents	$	95,176	$	95,176	$	—	$	—	$	95,176
Available-for-sale securities	1,059,169		3,227		909,872		146,070		1,059,169
Held-to-maturity securities	14,565		—		15,683		—		15,683
Loans held for sale	10,136		—		10,136		—		10,136
Loans receivable-net	4,587,062		—		—		4,629,243		4,629,243
FHLBB stock	51,196		—		—		51,196		51,196
Accrued interest receivable	15,740		—		—		15,740		15,740
Derivative assets	12,910		—		12,910		—		12,910
Mortgage servicing rights	7,074		—		—		7,074		7,074
Financial liabilities:
Deposits	4,437,071		—		—		4,436,456		4,436,456
Mortgagors’ and investors’ escrow accounts	13,526		—		—		13,526		13,526
FHLBB advances and other borrowings	1,099,020		—		1,096,452		—		1,096,452
Derivative liabilities	16,675		—		16,675		—		16,675

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Financial Instruments Contract Amounts Represent Credit Risk

Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at September 30, 2016 and December 31, 2015:

	September 30, 2016		December 31, 2015
	(In thousands)
Commitments to extend credit:
Commitment to grant loans	$	256,564	$	219,407
Undisbursed construction loans	99,148		103,140
Undisbursed home equity lines of credit	349,655		320,140
Undisbursed commercial lines of credit	343,939		302,700
Standby letters of credit	13,253		9,477
Unused credit card lines	11,232		6,725
Unused checking overdraft lines of credit	1,396		1,293
Total	$	1,075,187	$	962,882

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Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016 office atm
Accounting Policies [Abstract]
Number of banking offices | office	53
Number of ATMs | atm	63

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Securities - Available for Sale and Held to Maturity Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Available-for-sale, Debt Securities
Amortized Cost	$ 1,000,667	$ 1,020,337
Gross Unrealized Gains	18,396	3,941
Gross Unrealized Losses	(4,596)	(10,448)
Fair Value	1,014,467	1,013,830
Available-for-sale Securities, Total
Amortized Cost	1,036,874	1,064,990
Gross Unrealized Gains	20,163	5,175
Gross Unrealized Losses	(4,598)	(10,996)
Available-for-sale securities - at fair value	1,052,439	1,059,169
Held-to-maturity, Debt Securities
Amortized Cost	14,162	14,565
Gross Unrealized Gains	1,421	1,128
Gross Unrealized Losses	(14)	(10)
Fair Value	15,569	15,683
U.S. Government and government-sponsored enterprise obligations
Available-for-sale, Debt Securities
Amortized Cost		10,159
Gross Unrealized Gains		13
Gross Unrealized Losses		(83)
Fair Value		10,089
Government-sponsored residential mortgage-backed securities
Available-for-sale, Debt Securities
Amortized Cost	161,388	146,434
Gross Unrealized Gains	3,280	731
Gross Unrealized Losses	0	(1,304)
Fair Value	164,668	145,861
Held-to-maturity, Debt Securities
Amortized Cost	1,831	2,205
Gross Unrealized Gains	222	244
Gross Unrealized Losses	0	0
Fair Value	2,053	2,449
Government-sponsored residential collateralized debt obligations
Available-for-sale, Debt Securities
Amortized Cost	195,056	287,515
Gross Unrealized Gains	2,841	855
Gross Unrealized Losses	(67)	(1,403)
Fair Value	197,830	286,967
Government-sponsored commercial mortgage-backed securities
Available-for-sale, Debt Securities
Amortized Cost	27,107	21,144
Gross Unrealized Gains	713	21
Gross Unrealized Losses	0	(200)
Fair Value	27,820	20,965
Government-sponsored commercial collateralized debt obligations
Available-for-sale, Debt Securities
Amortized Cost	176,706	128,617
Gross Unrealized Gains	3,020	626
Gross Unrealized Losses	0	(271)
Fair Value	179,726	128,972
Asset-backed securities
Available-for-sale, Debt Securities
Amortized Cost	159,195	162,895
Gross Unrealized Gains	2,067	43
Gross Unrealized Losses	(905)	(3,037)
Fair Value	160,357	159,901
Corporate debt securities
Available-for-sale, Debt Securities
Amortized Cost	59,848	62,356
Gross Unrealized Gains	1,953	91
Gross Unrealized Losses	(1,591)	(2,487)
Fair Value	60,210	59,960
Obligations of states and political subdivisions
Available-for-sale, Debt Securities
Amortized Cost	221,367	201,217
Gross Unrealized Gains	4,522	1,561
Gross Unrealized Losses	(2,033)	(1,663)
Fair Value	223,856	201,115
Held-to-maturity, Debt Securities
Amortized Cost	12,331	12,360
Gross Unrealized Gains	1,199	884
Gross Unrealized Losses	(14)	(10)
Fair Value	13,516	13,234
Marketable equity securities
Available-for-sale, Equity Securities
Amortized Cost	36,207	44,653
Gross Unrealized Gains	1,767	1,234
Gross Unrealized Losses	(2)	(548)
Fair Value	37,972	45,339
Marketable equity securities | Banks
Available-for-sale, Equity Securities
Amortized Cost	33,087	41,558
Gross Unrealized Gains	1,589	1,099
Gross Unrealized Losses	0	(544)
Fair Value	34,676	42,113
Marketable equity securities | Industrial
Available-for-sale, Equity Securities
Amortized Cost	109	109
Gross Unrealized Gains	55	34
Gross Unrealized Losses	0	0
Fair Value	164	143
Marketable equity securities | Mutual funds
Available-for-sale, Equity Securities
Amortized Cost	2,880	2,854
Gross Unrealized Gains	64	65
Gross Unrealized Losses	(2)	(4)
Fair Value	2,942	2,915
Marketable equity securities | Oil and gas
Available-for-sale, Equity Securities
Amortized Cost	131	132
Gross Unrealized Gains	59	36
Gross Unrealized Losses	0	0
Fair Value	$ 190	$ 168

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Securities - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) issue security	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) issue security	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) security issue
Investments, Debt and Equity Securities [Abstract]
Unrealized gain on securities available for sale	$ 15,600,000		$ 15,600,000
Tax effect	5,600,000		5,600,000
Unrealized gain on securities available for sale, net of tax	$ 10,000,000		$ 10,000,000
Number of encumbered securities | security	114		114		114
Encumbered securities pledged as derivative collateral	$ 549,300,000		$ 549,300,000		$ 446,000,000
Gross gains realized on the sale of available for sale securities	325,000	$ 185,000	2,600,000	$ 2,400,000
Gross losses realized on the sale of available for sale securities	$ 277,000	$ 244,000	$ 743,000	$ 1,800,000
Percentage of investments in single issuer to shareholders' equity	10.00%		10.00%
Estimated fair value of obligations of states and political subdivisions	$ 237,400,000		$ 237,400,000
General obligation bonds	105,200,000		105,200,000
Obligations of political subdivisions	$ 67,800,000		$ 67,800,000
Available-for-sale securities with unrealized losses, less than twelve months | issue	32		32		146
Percentage of continuous unrealized losses to amortized cost basis for less than twelve months	1.70%		1.70%		1.20%
Available-for-sale securities with unrealized losses, twelve months or more | issue	62		62		96
Percentage of continuous unrealized losses to amortized cost basis for twelve months or more	4.30%		4.30%		3.70%
Number of held to maturity securities with unrealized losses | issue	1		1
Unrealized losses on debt securities held-to-maturity	$ 14,000		$ 14,000		$ 10,000
Other-than-temporary impairment losses			$ 0
Yield on security	0.00%		0.00%

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Securities - Amortized Cost and Fair Value of Debt Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Maturity, Available-for-sale Securities, Amortized Cost:
Within 1 year	$ 175
After 1 year through 5 years	16,118
After 5 years through 10 years	47,906
After 10 years	217,016
Single maturity date	281,215
Amortized Cost	1,000,667	$ 1,020,337
Maturity, Available-for-sale Securities, Fair Value:
Within 1 year	176
After 1 year through 5 years	16,537
After 5 years through 10 years	49,018
After 10 years	218,335
Single maturity date	284,066
Available for sale securities	1,014,467	1,013,830
Maturity, Held-to-maturity Securities, Amortized Cost:
Within 1 year	0
After 1 year through 5 years	1,184
After 5 years through 10 years	0
After 10 years	11,147
Single maturity date	12,331
Amortized Cost	14,162	14,565
Maturity, Held-to-maturity Securities, Fair Value:
Within 1 year	0
After 1 year through 5 years	1,229
After 5 years through 10 years	0
After 10 years	12,287
Single maturity date	13,516
Held-to-maturity securities	15,569	15,683
Government-sponsored residential mortgage-backed securities
Maturity, Available-for-sale Securities, Amortized Cost:
Without single maturity date	161,388
Amortized Cost	161,388	146,434
Maturity, Available-for-sale Securities, Fair Value:
Without single maturity date	164,668
Available for sale securities	164,668	145,861
Maturity, Held-to-maturity Securities, Amortized Cost:
Without single maturity date	1,831
Maturity, Held-to-maturity Securities, Fair Value:
Without single maturity date	2,053
Held-to-maturity securities	2,053	2,449
Government-sponsored residential collateralized debt obligations
Maturity, Available-for-sale Securities, Amortized Cost:
Without single maturity date	195,056
Amortized Cost	195,056	287,515
Maturity, Available-for-sale Securities, Fair Value:
Without single maturity date	197,830
Available for sale securities	197,830	286,967
Maturity, Held-to-maturity Securities, Amortized Cost:
Without single maturity date	0
Maturity, Held-to-maturity Securities, Fair Value:
Without single maturity date	0
Government-sponsored commercial mortgage-backed securities
Maturity, Available-for-sale Securities, Amortized Cost:
Without single maturity date	27,107
Amortized Cost	27,107	21,144
Maturity, Available-for-sale Securities, Fair Value:
Without single maturity date	27,820
Available for sale securities	27,820	20,965
Maturity, Held-to-maturity Securities, Amortized Cost:
Without single maturity date	0
Maturity, Held-to-maturity Securities, Fair Value:
Without single maturity date	0
Government-sponsored commercial collateralized debt obligations
Maturity, Available-for-sale Securities, Amortized Cost:
Without single maturity date	176,706
Amortized Cost	176,706	128,617
Maturity, Available-for-sale Securities, Fair Value:
Without single maturity date	179,726
Available for sale securities	179,726	128,972
Maturity, Held-to-maturity Securities, Amortized Cost:
Without single maturity date	0
Maturity, Held-to-maturity Securities, Fair Value:
Without single maturity date	0
Asset-backed securities
Maturity, Available-for-sale Securities, Amortized Cost:
Without single maturity date	159,195
Amortized Cost	159,195	162,895
Maturity, Available-for-sale Securities, Fair Value:
Without single maturity date	160,357
Available for sale securities	160,357	$ 159,901
Maturity, Held-to-maturity Securities, Amortized Cost:
Without single maturity date	0
Maturity, Held-to-maturity Securities, Fair Value:
Without single maturity date	$ 0

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Securities - Summary of Gross Unrealized Losses and Fair Value (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Fair Value:
Less Than 12 Months	$ 55,580	$ 520,797
12 Months or More	80,646	124,217
Total	136,226	645,014
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	(963)	(6,290)
12 Months or More	(3,635)	(4,706)
Total	(4,598)	(10,996)
Held-to-maturity Securities, Fair Value:
Less Than 12 Months		1,104
Unrealized Loss		0
Total		1,104
Held-to-maturity Securities, Unrealized Loss:
Less Than 12 Months		(10)
12 Months or More		0
Total	(14)	(10)
Total debt securities
Available-for-sale Securities, Fair Value:
Less Than 12 Months	55,580	502,348
12 Months or More	80,551	118,041
Total	136,131	620,389
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	(963)	(6,003)
12 Months or More	(3,633)	(4,445)
Total	(4,596)	(10,448)
U.S. Government and government-sponsored enterprise obligations
Available-for-sale Securities, Fair Value:
Less Than 12 Months		4,867
12 Months or More		4,977
Total		9,844
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months		(66)
12 Months or More		(17)
Total		(83)
Government-sponsored residential mortgage-backed securities
Available-for-sale Securities, Fair Value:
Less Than 12 Months		107,142
12 Months or More		7,195
Total		114,337
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months		(1,183)
12 Months or More		(121)
Total		(1,304)
Government-sponsored residential collateralized debt obligations
Available-for-sale Securities, Fair Value:
Less Than 12 Months	6,821	152,278
12 Months or More	6,929	3,506
Total	13,750	155,784
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	(25)	(1,357)
12 Months or More	(42)	(46)
Total	(67)	(1,403)
Government-sponsored commercial mortgage-backed securities
Available-for-sale Securities, Fair Value:
Less Than 12 Months		16,207
12 Months or More		0
Total		16,207
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months		(200)
12 Months or More		0
Total		(200)
Government-sponsored commercial collateralized debt obligations
Available-for-sale Securities, Fair Value:
Less Than 12 Months		38,151
12 Months or More		3,496
Total		41,647
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months		(221)
12 Months or More		(50)
Total		(271)
Asset-backed securities
Available-for-sale Securities, Fair Value:
Less Than 12 Months	1,207	93,723
12 Months or More	26,357	49,462
Total	27,564	143,185
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	(25)	(1,233)
12 Months or More	(880)	(1,804)
Total	(905)	(3,037)
Corporate debt securities
Available-for-sale Securities, Fair Value:
Less Than 12 Months	0	42,102
12 Months or More	3,165	6,720
Total	3,165	48,822
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	0	(797)
12 Months or More	(1,591)	(1,690)
Total	(1,591)	(2,487)
Obligations of states and political subdivisions
Available-for-sale Securities, Fair Value:
Less Than 12 Months	47,552	47,878
12 Months or More	44,100	42,685
Total	91,652	90,563
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	(913)	(946)
12 Months or More	(1,120)	(717)
Total	(2,033)	(1,663)
Held-to-maturity Securities, Fair Value:
Less Than 12 Months	1,093	1,104
Unrealized Loss	0	0
Total	1,093	1,104
Held-to-maturity Securities, Unrealized Loss:
Less Than 12 Months	(14)	(10)
12 Months or More	0	0
Total	(14)	(10)
Marketable equity securities
Available-for-sale Securities, Fair Value:
Less Than 12 Months	0	18,449
12 Months or More	95	6,176
Total	95	24,625
Available-for-sale Securities, Unrealized Loss:
Less Than 12 Months	0	(287)
12 Months or More	(2)	(261)
Total	$ (2)	$ (548)

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Loans Receivable and Allowance for Loan Losses - Summary of Company's Loan Portfolio (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 4,720,700	$ 4,613,931
Net deferred loan costs and premiums	10,214	7,018
Allowance for loan losses	(41,080)	(33,887)	$ (37,961)	$ (30,832)	$ (28,856)	$ (24,809)
Loans - net	$ 4,689,834	$ 4,587,062
Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	100.00%	100.00%
Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 2,185,249	$ 2,125,254
Commercial real estate loans | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	46.30%	46.10%
Commercial real estate loans | Owner-occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 392,168	$ 322,084
Allowance for loan losses	$ (3,339)	$ (2,174)	(3,267)	(1,668)	(1,499)	(1,281)
Commercial real estate loans | Owner-occupied | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	8.30%	7.00%
Commercial real estate loans | Investor non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,702,701	$ 1,673,248
Allowance for loan losses	$ (14,743)	$ (12,859)	(13,646)	(11,466)	(10,459)	(8,137)
Commercial real estate loans | Investor non-owner occupied | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	36.10%	36.30%
Commercial real estate loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 90,380	$ 129,922
Commercial real estate loans | Construction | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	1.90%	2.80%
Commercial business loans | Commercial business loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 660,676	$ 603,332
Allowance for loan losses	$ (7,379)	$ (5,827)	(6,894)	(5,305)	(5,334)	(5,808)
Commercial business loans | Commercial business loans | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	14.00%	13.10%
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,874,775	$ 1,885,345
Consumer loans | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	39.70%	40.80%
Consumer loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,129,079	$ 1,179,915
Allowance for loan losses	$ (8,095)	$ (7,801)	(7,907)	(7,726)	(6,995)	(5,998)
Consumer loans | Residential real estate | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	23.90%	25.60%
Consumer loans | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 479,390	$ 431,282
Allowance for loan losses	$ (2,711)	$ (2,391)	(2,532)	(2,163)	(2,052)	(1,929)
Consumer loans | Home equity | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	10.20%	9.30%
Consumer loans | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 52,476	$ 41,084
Consumer loans | Residential construction | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	1.10%	0.90%
Consumer loans | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 213,830	$ 233,064
Allowance for loan losses	$ (1,672)	$ (146)	$ (692)	$ (115)	$ (104)	$ (75)
Consumer loans | Other consumer | Loans Receivable Concentration Risk | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	4.50%	5.00%

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Loans Receivable and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) grade	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) prepayment_speed	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans - net	$ 4,689,834		$ 4,689,834		$ 4,587,062
Reclassifications from accretable to nonaccretable balance			232	$ 882
Total allowance for loan losses	$ 41,080	$ 30,832	$ 41,080	30,832	$ 33,887	$ 37,961	$ 28,856	$ 24,809
Percentage allowance for loan losses in total loan	0.87%		0.87%		0.73%
Number of years of historical loss used in capturing relevant loss data for loan segments			3 years
Number of grades in internal loan rating system | grade			9
Evaluation period			3 years
Aggregate principal balance of loans serviced for third parties	$ 1,020,000		$ 1,020,000		$ 863,700
Minimum average prepayment speed			298
Maximum average prepayment speed | prepayment_speed					183
Servicing fee income	5,726	5,960	$ 14,679	15,434
Loan Servicing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Servicing fee income	416,000	$ 310	$ 1,300	$ 799
Minimum
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal rates of return used for determination of fair value			9.50%		9.50%
Maximum
Financing Receivable, Recorded Investment, Past Due [Line Items]
Period after which loans are evaluated for impairment, residential and installment and collateral loans			90 days
Internal rates of return used for determination of fair value			11.50%		11.50%
Maximum | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Period within which an updated appraisal is obtained after loan is determined to be impaired, residential property			30 days
Maximum | Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Period within which an updated appraisal is obtained after loan is determined to be impaired, commercial real estate property			90 days
Legacy United
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans - net	4,700		$ 4,700
Loans outstanding	$ 7,500		$ 7,500

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Loans Receivable and Allowance for Loan Losses - Summary of Activity in the Accretable Yield Balance for PCI Loans (Detail) - Purchased Credit Impaired Loans - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Purchased Accounting Adjustments for Purchased Credit Impaired Loans
Balance at beginning of period	$ (118)	$ (570)	$ (413)	$ (1,587)
Accretion	0	1	0	178
Reclassification to nonaccretable balance	0	42	232	882
Paid off	0	114	63	114
Balance at end of period	$ (118)	$ (413)	$ (118)	$ (413)

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Loans Receivable and Allowance for Loan Losses - Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 4,720,700	$ 4,613,931
Commercial real estate loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,185,249	2,125,254
Commercial real estate loans | Owner-occupied
Financing Receivable, Recorded Investment [Line Items]
Total loans	392,168	322,084
Commercial real estate loans | Owner-occupied | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	363,114	298,509
Commercial real estate loans | Owner-occupied | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,219	10,074
Commercial real estate loans | Owner-occupied | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	21,835	13,501
Commercial real estate loans | Owner-occupied | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial real estate loans | Owner-occupied | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,702,701	1,673,248
Commercial real estate loans | Investor non-owner occupied | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,656,821	1,610,582
Commercial real estate loans | Investor non-owner occupied | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	16,552	38,448
Commercial real estate loans | Investor non-owner occupied | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	29,328	24,218
Commercial real estate loans | Investor non-owner occupied | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial real estate loans | Investor non-owner occupied | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial real estate and consumer | Construction
Financing Receivable, Recorded Investment [Line Items]
Total loans	142,856	171,006
Commercial real estate and consumer | Construction | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	140,314	156,607
Commercial real estate and consumer | Construction | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	254	10,860
Commercial real estate and consumer | Construction | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,288	3,539
Commercial real estate and consumer | Construction | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial real estate and consumer | Construction | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Commercial business loans | Commercial business loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	660,676	603,332
Commercial business loans | Commercial business loans | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	629,212	568,248
Commercial business loans | Commercial business loans | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	6,518	8,382
Commercial business loans | Commercial business loans | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	24,946	26,655
Commercial business loans | Commercial business loans | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	47
Commercial business loans | Commercial business loans | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,874,775	1,885,345
Consumer loans | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,129,079	1,179,915
Consumer loans | Residential real estate | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,111,502	1,162,393
Consumer loans | Residential real estate | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,286	1,355
Consumer loans | Residential real estate | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	16,291	16,167
Consumer loans | Residential real estate | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer loans | Residential real estate | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer loans | Home equity
Financing Receivable, Recorded Investment [Line Items]
Total loans	479,390	431,282
Consumer loans | Home equity | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	473,948	426,702
Consumer loans | Home equity | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	24
Consumer loans | Home equity | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,441	4,553
Consumer loans | Home equity | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer loans | Home equity | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	1	3
Consumer loans | Other consumer
Financing Receivable, Recorded Investment [Line Items]
Total loans	213,830	233,064
Consumer loans | Other consumer | Loans rated 1-5
Financing Receivable, Recorded Investment [Line Items]
Total loans	213,507	233,054
Consumer loans | Other consumer | Loans rated 6
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer loans | Other consumer | Loans rated 7
Financing Receivable, Recorded Investment [Line Items]
Total loans	323	10
Consumer loans | Other consumer | Loans rated 8
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer loans | Other consumer | Loans rated 9
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 0	$ 0

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Loans Receivable and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Activity in the Allowance for Loan Losses
Balance, beginning of period	$ 37,961	$ 28,856	$ 33,887	$ 24,809
Provision for loan losses	3,766	3,252	10,078	9,225
Loans charged off	(1,140)	(1,496)	(4,043)	(4,293)
Recoveries of loans previously charged off	493	220	1,158	1,091
Balance, end of period	41,080	30,832	41,080	30,832
Commercial real estate loans | Owner-occupied
Activity in the Allowance for Loan Losses
Balance, beginning of period	3,267	1,499	2,174	1,281
Provision for loan losses	72	169	1,247	387
Loans charged off	0	0	(138)	0
Recoveries of loans previously charged off	0	0	56	0
Balance, end of period	3,339	1,668	3,339	1,668
Commercial real estate loans | Investor non-owner occupied
Activity in the Allowance for Loan Losses
Balance, beginning of period	13,646	10,459	12,859	8,137
Provision for loan losses	1,082	1,222	2,587	4,034
Loans charged off	(287)	(215)	(1,083)	(837)
Recoveries of loans previously charged off	302	0	380	132
Balance, end of period	14,743	11,466	14,743	11,466
Commercial real estate and consumer | Construction
Activity in the Allowance for Loan Losses
Balance, beginning of period	2,014	1,963	1,895	1,470
Provision for loan losses	(201)	(224)	(82)	771
Loans charged off	0	0	0	(502)
Recoveries of loans previously charged off	3	0	3	0
Balance, end of period	1,816	1,739	1,816	1,739
Commercial business loans | Commercial business loans
Activity in the Allowance for Loan Losses
Balance, beginning of period	6,894	5,334	5,827	5,808
Provision for loan losses	527	690	1,814	651
Loans charged off	(188)	(840)	(744)	(1,793)
Recoveries of loans previously charged off	146	121	482	639
Balance, end of period	7,379	5,305	7,379	5,305
Consumer loans | Residential real estate
Activity in the Allowance for Loan Losses
Balance, beginning of period	7,907	6,995	7,801	5,998
Provision for loan losses	404	960	974	2,200
Loans charged off	(216)	(304)	(733)	(708)
Recoveries of loans previously charged off	0	75	53	236
Balance, end of period	8,095	7,726	8,095	7,726
Consumer loans | Home equity
Activity in the Allowance for Loan Losses
Balance, beginning of period	2,532	2,052	2,391	1,929
Provision for loan losses	245	178	692	448
Loans charged off	(81)	(67)	(438)	(214)
Recoveries of loans previously charged off	15	0	66	0
Balance, end of period	2,711	2,163	2,711	2,163
Consumer loans | Other consumer
Activity in the Allowance for Loan Losses
Balance, beginning of period	692	104	146	75
Provision for loan losses	1,321	57	2,315	195
Loans charged off	(368)	(70)	(907)	(239)
Recoveries of loans previously charged off	27	24	118	84
Balance, end of period	1,672	115	1,672	115
Unallocated
Activity in the Allowance for Loan Losses
Balance, beginning of period	1,009	450	794	111
Provision for loan losses	316	200	531	539
Loans charged off	0	0	0	0
Recoveries of loans previously charged off	0	0	0	0
Balance, end of period	$ 1,325	$ 650	$ 1,325	$ 650

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Loans Receivable and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Impaired Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	$ 1,222		$ 342
Allowance related to loans collectively evaluated and not deemed impaired	39,642		33,370
Total allowance for loan losses	41,080	$ 37,961	33,887	$ 30,832	$ 28,856	$ 24,809
Loans deemed impaired	52,050		56,255
Loans not deemed impaired	4,663,930		4,551,343
Total loans	4,720,700		4,613,931
Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	216		175
Loans acquired with deteriorated credit quality	4,720		6,333
Commercial real estate loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	2,185,249		2,125,254
Commercial real estate loans | Owner-occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	0		0
Allowance related to loans collectively evaluated and not deemed impaired	3,339		2,174
Total allowance for loan losses	3,339	3,267	2,174	1,668	1,499	1,281
Loans deemed impaired	3,539		4,037
Loans not deemed impaired	388,629		317,628
Total loans	392,168		322,084
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	0		0
Allowance related to loans collectively evaluated and not deemed impaired	14,743		12,859
Total allowance for loan losses	14,743	13,646	12,859	11,466	10,459	8,137
Loans deemed impaired	9,747		13,923
Loans not deemed impaired	1,691,653		1,657,721
Total loans	1,702,701		1,673,248
Commercial real estate loans | Loans acquired with deteriorated credit quality | Owner-occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	0		419
Commercial real estate loans | Loans acquired with deteriorated credit quality | Investor non-owner occupied
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	1,301		1,604
Commercial real estate and consumer | Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	0		147
Allowance related to loans collectively evaluated and not deemed impaired	1,816		1,748
Total allowance for loan losses	1,816	2,014	1,895	1,739	1,963	1,470
Loans deemed impaired	3,863		4,660
Loans not deemed impaired	138,993		166,346
Total loans	142,856		171,006
Commercial real estate and consumer | Loans acquired with deteriorated credit quality | Construction
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	0		0
Commercial business loans | Commercial business loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	761		121
Allowance related to loans collectively evaluated and not deemed impaired	6,402		5,531
Total allowance for loan losses	7,379	6,894	5,827	5,305	5,334	5,808
Loans deemed impaired	10,929		13,035
Loans not deemed impaired	648,438		588,982
Total loans	660,676		603,332
Commercial business loans | Loans acquired with deteriorated credit quality | Commercial business loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	216		175
Loans acquired with deteriorated credit quality	1,309		1,315
Consumer loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,874,775		1,885,345
Consumer loans | Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	70		74
Allowance related to loans collectively evaluated and not deemed impaired	8,025		7,727
Total allowance for loan losses	8,095	7,907	7,801	7,726	6,995	5,998
Loans deemed impaired	16,932		16,036
Loans not deemed impaired	1,112,147		1,163,879
Total loans	1,129,079		1,179,915
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	0		0
Allowance related to loans collectively evaluated and not deemed impaired	2,711		2,391
Total allowance for loan losses	2,711	2,532	2,391	2,163	2,052	1,929
Loans deemed impaired	6,528		4,556
Loans not deemed impaired	472,862		426,726
Total loans	479,390		431,282
Consumer loans | Other consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	391		0
Allowance related to loans collectively evaluated and not deemed impaired	1,281		146
Total allowance for loan losses	1,672	692	146	115	104	75
Loans deemed impaired	512		8
Loans not deemed impaired	211,208		230,061
Total loans	213,830		233,064
Consumer loans | Loans acquired with deteriorated credit quality | Residential real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	0		0
Consumer loans | Loans acquired with deteriorated credit quality | Home equity
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	0		0
Consumer loans | Loans acquired with deteriorated credit quality | Other consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	2,110		2,995
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans individually evaluated and deemed impaired	0		0
Allowance related to loans collectively evaluated and not deemed impaired	1,325		794
Total allowance for loan losses	1,325	$ 1,009	794	$ 650	$ 450	$ 111
Loans deemed impaired	0		0
Loans not deemed impaired	0		0
Total loans	0		0
Unallocated | Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance related to loans acquired with deteriorated credit quality	0		0
Loans acquired with deteriorated credit quality	$ 0		$ 0

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Loans Receivable and Allowance for Loan Losses - Summary of Past Due and Non-Accrual Loans (Detail) $ in Thousands	Sep. 30, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 31,462	$ 40,948
Past Due 90 Days or More and Still Accruing	458	307
Loans on Non-accrual	$ 33,328	$ 37,802
Number of U.S. Government fully guaranteed contracts 90 days past due and still accruing | contract	1,000	1,000
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 6,286	$ 15,327
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,152	6,165
Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	19,023	19,456
Commercial real estate loans | Owner-occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,084	2,596
Past Due 90 Days or More and Still Accruing	0	0
Loans on Non-accrual	2,933	3,055
Commercial real estate loans | Owner-occupied | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,015	900
Commercial real estate loans | Owner-occupied | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	160	191
Commercial real estate loans | Owner-occupied | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,909	1,505
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,995	10,171
Past Due 90 Days or More and Still Accruing	178	0
Loans on Non-accrual	4,079	8,565
Commercial real estate loans | Investor non-owner occupied | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,243	3,154
Commercial real estate loans | Investor non-owner occupied | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,510	2,498
Commercial real estate loans | Investor non-owner occupied | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,242	4,519
Commercial real estate and consumer | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,109	2,798
Past Due 90 Days or More and Still Accruing	0	0
Loans on Non-accrual	2,315	2,808
Commercial real estate and consumer | Construction | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	214
Commercial real estate and consumer | Construction | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	449
Commercial real estate and consumer | Construction | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,109	2,135
Commercial business loans | Commercial business loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,253	3,596
Past Due 90 Days or More and Still Accruing	38	66
Loans on Non-accrual	2,686	4,244
Commercial business loans | Commercial business loans | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	690	526
Commercial business loans | Commercial business loans | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	202	266
Commercial business loans | Commercial business loans | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,360	2,804
Consumer loans | Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,881	17,555
Past Due 90 Days or More and Still Accruing	0	238
Loans on Non-accrual	15,563	14,056
Consumer loans | Residential real estate | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	236	8,507
Consumer loans | Residential real estate | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,649	2,112
Consumer loans | Residential real estate | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,996	6,936
Consumer loans | Home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,580	4,204
Past Due 90 Days or More and Still Accruing	0	0
Loans on Non-accrual	5,419	5,066
Consumer loans | Home equity | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,248	2,009
Consumer loans | Home equity | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,181	646
Consumer loans | Home equity | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,151	1,549
Consumer loans | Other consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,560	28
Past Due 90 Days or More and Still Accruing	242	3
Loans on Non-accrual	333	8
Consumer loans | Other consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,854	17
Consumer loans | Other consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	450	3
Consumer loans | Other consumer | Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 256	$ 8

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Loans Receivable and Allowance for Loan Losses - Summary of Impaired Loans with and without Valuation Allowance (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	$ 49,361	$ 54,359
Unpaid Principal Balance, Impaired loans without a valuation allowance	60,667	64,567
Recorded Investment, Impaired loans with a valuation allowance	2,689	1,896
Unpaid Principal Balance, Impaired loans with a valuation allowance	3,843	1,911
Recorded Investment, Total impaired loans	52,050	56,255
Unpaid Principal Balance, Total impaired loans	64,510	66,478
Related Allowance, Total impaired loans	1,222	342
Commercial real estate loans | Owner-occupied
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	3,539	4,037
Unpaid Principal Balance, Impaired loans without a valuation allowance	4,459	5,370
Recorded Investment, Total impaired loans	3,539	4,037
Related Allowance, Total impaired loans	0	0
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	9,747	13,923
Unpaid Principal Balance, Impaired loans without a valuation allowance	10,404	15,011
Recorded Investment, Total impaired loans	9,747	13,923
Related Allowance, Total impaired loans	0	0
Commercial real estate and consumer | Construction
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	3,863	4,442
Unpaid Principal Balance, Impaired loans without a valuation allowance	5,932	6,869
Recorded Investment, Impaired loans with a valuation allowance	0	218
Unpaid Principal Balance, Impaired loans with a valuation allowance	0	218
Recorded Investment, Total impaired loans	3,863	4,660
Related Allowance, Total impaired loans	0	147
Commercial business loans | Commercial business loans
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	9,977	12,634
Unpaid Principal Balance, Impaired loans without a valuation allowance	13,618	14,477
Recorded Investment, Impaired loans with a valuation allowance	952	401
Unpaid Principal Balance, Impaired loans with a valuation allowance	952	401
Recorded Investment, Total impaired loans	10,929	13,035
Related Allowance, Total impaired loans	761	121
Consumer loans | Residential real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	15,674	14,056
Unpaid Principal Balance, Impaired loans without a valuation allowance	18,845	16,876
Recorded Investment, Impaired loans with a valuation allowance	1,258	1,277
Unpaid Principal Balance, Impaired loans with a valuation allowance	1,274	1,292
Recorded Investment, Total impaired loans	16,932	16,036
Related Allowance, Total impaired loans	70	74
Consumer loans | Home equity
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	6,528	5,259
Unpaid Principal Balance, Impaired loans without a valuation allowance	7,376	5,953
Recorded Investment, Total impaired loans	6,528	4,556
Related Allowance, Total impaired loans	0	0
Consumer loans | Other consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment, Impaired loans without a valuation allowance	33	8
Unpaid Principal Balance, Impaired loans without a valuation allowance	33	11
Recorded Investment, Impaired loans with a valuation allowance	479	0
Unpaid Principal Balance, Impaired loans with a valuation allowance	1,617	0
Recorded Investment, Total impaired loans	512	8
Related Allowance, Total impaired loans	$ 391	$ 0

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Loans Receivable and Allowance for Loan Losses - Average Recorded Investment in Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 55,248	$ 47,307	$ 55,850	$ 46,288
Interest Income Recognized	504	1,809	1,720	3,140
Commercial real estate loans | Owner-occupied
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,037	5,310	4,073	6,253
Interest Income Recognized	0	67	241	171
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	10,737	12,537	11,717	12,288
Interest Income Recognized	218	385	325	821
Commercial real estate and consumer | Construction
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,012	3,867	4,499	3,564
Interest Income Recognized	30	26	104	83
Commercial business loans | Commercial business loans
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	12,706	6,479	13,034	6,536
Interest Income Recognized	0	493	337	804
Consumer loans | Residential real estate
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	16,843	15,138	16,466	14,303
Interest Income Recognized	185	779	556	1,161
Consumer loans | Home equity
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	5,992	3,957	5,592	3,316
Interest Income Recognized	71	51	156	91
Consumer loans | Other consumer
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	921	19	469	28
Interest Income Recognized	$ 0	$ 8	$ 1	$ 9

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Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Recorded investment in TDRs:
Non-accrual status	$ 33,328	$ 37,802
Troubled Debt Restructurings
Recorded investment in TDRs:
Accrual status	18,758	18,453
Non-accrual status	7,345	5,611
Total recorded investment in TDRs	26,103	24,064
Accruing TDRs performing under modified terms more than one year	8,394	5,821
Specific reserves for TDRs included in the balance of allowance for loan losses	690	223
Additional funds committed to borrowers in TDR status	$ 0	$ 513

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Loans Receivable and Allowance for Loan Losses - Loans Restructured as Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) contract	Sep. 30, 2015 USD ($) contract	Sep. 30, 2016 USD ($) contract	Sep. 30, 2015 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	11	10	41	33
Pre-Modification Outstanding Recorded Investment	$ 3,346	$ 1,106	$ 8,046	$ 5,861
Post-Modification Outstanding Recorded Investment	$ 3,354	$ 1,106	$ 11,400	$ 5,858
Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0		5
Pre-Modification Outstanding Recorded Investment	$ 0		$ 654
Post-Modification Outstanding Recorded Investment	$ 0		$ 654
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract		0		2
Pre-Modification Outstanding Recorded Investment		$ 0		$ 791
Post-Modification Outstanding Recorded Investment		$ 0		$ 791
Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0	2	2
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 67	$ 564
Post-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 67	$ 564
Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	3	7	5
Pre-Modification Outstanding Recorded Investment	$ 2,083	$ 592	$ 4,667	$ 1,340
Post-Modification Outstanding Recorded Investment	$ 2,083	$ 592	$ 6,750	$ 1,340
Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	4	2	13	15
Pre-Modification Outstanding Recorded Investment	$ 377	$ 59	$ 1,320	$ 2,544
Post-Modification Outstanding Recorded Investment	$ 385	$ 59	$ 1,705	$ 2,561
Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	5	5	14	9
Pre-Modification Outstanding Recorded Investment	$ 886	$ 455	$ 1,338	$ 622
Post-Modification Outstanding Recorded Investment	$ 886	$ 455	$ 2,224	$ 602

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Loans Receivable and Allowance for Loan Losses - Summary of How Loans were Modified as TDRs (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	$ 3,354	$ 1,106	$ 11,400	$ 5,858
Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0		654
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs		0		791
Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	0	67	564
Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	2,083	592	6,750	1,340
Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	385	59	1,705	2,561
Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	886	455	2,224	602
Extended Maturity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	87	585	2,620	2,435
Extended Maturity | Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			510	0
Extended Maturity | Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	538
Extended Maturity | Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			23	564
Extended Maturity | Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	585	2,000	1,333
Extended Maturity | Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	87	0	87	0
Extended Maturity | Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	0	0	0
Adjusted Interest Rates
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	261	39	261	940
Adjusted Interest Rates | Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Adjusted Interest Rates | Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Adjusted Interest Rates | Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Adjusted Interest Rates | Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	0	0	0
Adjusted Interest Rates | Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	39	0	940
Adjusted Interest Rates | Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	261	0	261	0
Adjusted Rate and Extended Maturity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	527	128	1,518	725
Adjusted Rate and Extended Maturity | Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			86	0
Adjusted Rate and Extended Maturity | Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	253
Adjusted Rate and Extended Maturity | Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			44	0
Adjusted Rate and Extended Maturity | Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	100	7	243	7
Adjusted Rate and Extended Maturity | Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	290	101	672	370
Adjusted Rate and Extended Maturity | Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	137	20	473	95
Payment Deferral
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	488	0	1,513	814
Payment Deferral | Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Payment Deferral | Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Payment Deferral | Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Payment Deferral | Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	0	348	0
Payment Deferral | Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	0	561	786
Payment Deferral | Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	488	0	604	28
Other
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	1,983	354	2,134	947
Other | Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			58	0
Other | Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Other | Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs			0	0
Other | Commercial business loans | Commercial business loans
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	1,983	0	2,076	0
Other | Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	0	0	0	529
Other | Consumer loans | Home equity
Financing Receivable, Modifications [Line Items]
Loan balances modified as TDRs	$ 0	$ 354	$ 0	$ 418

XML

Loans Receivable and Allowance for Loan Losses - Summary of Loans Modified as TDRs within Previous 12 Months and Payment Default (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($) loan	Sep. 30, 2015 USD ($) loan
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	10
Recorded Investment | $	$ 437	$ 1,641
Commercial real estate loans | Owner-occupied
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	4
Recorded Investment | $	$ 0	$ 359
Commercial real estate loans | Investor non-owner occupied
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	3
Recorded Investment | $	$ 0	$ 880
Commercial real estate and consumer | Construction
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	0
Recorded Investment | $	$ 437	$ 0
Consumer loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	3
Recorded Investment | $	$ 0	$ 402

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Loans Receivable and Allowance for Loan Losses - Summary of Mortgage Servicing Rights Activity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Mortgage servicing rights:
Balance at beginning of period	$ 6,589	$ 5,994	$ 7,074	$ 4,729
Change in fair value recognized in net income	(114)	(888)	(1,800)	(888)
Issuances	621	889	1,822	2,154
Fair value of mortgage servicing rights at end of period	$ 7,096	$ 5,995	$ 7,096	$ 5,995

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Goodwill and Core Deposit Intangibles - Schedule of Goodwill and Core Deposit Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Goodwill
Balance at Beginning of Period			$ 115,281	$ 115,240	$ 115,240
Adjustments					41
Balance at End of Period	$ 115,281		115,281		115,281
Core Deposit Intangibles
Amortization expense	(385)	$ (433)	(1,219)	(1,363)
Balance at End of Period	6,287		6,287
Core Deposits
Core Deposit Intangibles
Balance at Beginning of Period			7,506	9,302	9,302
Amortization expense	(385)	$ (433)	(1,219)	$ (1,400)	(1,796)
Balance at End of Period	$ 6,287		$ 6,287		$ 7,506

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Goodwill and Core Deposit Intangibles - Estimated Amortization Expense (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2016 (remaining three months)	$ 385
2017	1,411
2018	1,219
2019	1,026
2020	834
2021 and thereafter	1,412
Total remaining	$ 6,287

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Goodwill and Core Deposit Intangibles - Amortization of Acquired Core Deposits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Core deposit intangible amortization	$ 385	$ 433	$ 1,219	$ 1,363
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Core deposits estimated useful life			10 years
Core deposit intangible amortization	$ 385	$ 433	$ 1,219	$ 1,400	$ 1,796

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Borrowings - Contractual Maturities and Weighted-Average Rates of Outstanding Advances (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2016	$ 445,000	$ 637,580
2017	288,000	151,000
2018	140,044	120,795
2019	20,000	20,000
2020 and thereafter	82,306	16,130
FHLBB, advances, total	$ 975,350	$ 945,505
Weighted-Average Rate, 2016	0.63%	0.60%
Weighted-Average Rate, 2017	1.09%	1.76%
Weighted-Average Rate, 2018	1.48%	1.54%
Weighted-Average Rate, 2019	1.45%	1.63%
Weighted-Average Rate, 2020 and thereafter	0.73%	2.21%
Weighted Average
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
FHLBB, advances, branch of FHLB bank, interest rate	0.91%	0.95%

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Borrowings - Additional Information (Detail)		9 Months Ended	12 Months Ended
	Apr. 30, 2014 USD ($)	Sep. 30, 2016 USD ($) loan counterparty leased_bank_branch advance	Dec. 31, 2015 USD ($) loan	Sep. 23, 2014 USD ($)	May 01, 2014 USD ($)
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Advances from FHLBB		$ 977,500,000	$ 949,000,000
Fair value adjustment on FHLBB advances acquired in the Merger		2,100,000	3,500,000
Estimated eligible collateral value		1,500,000,000	1,300,000,000
Unsecured line of credit		10,000,000.0	10,000,000
Additional borrowings		408,500,000
Other borrowings		$ 125,399,000	$ 150,017,000
Number of leased banking branches with capital lease obligations | leased_bank_branch		3
Wholesale Reverse Repurchase Agreements
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Number of individual borrowings, wholesale reverse purchase agreements | loan		2	3
Weighted average interest rate		2.59%	1.51%
Investment securities pledged as collateral		$ 24,200,000	$ 51,100,000
Wholesale Reverse Repurchase Agreements | US Treasury and Government
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings		20,000,000	45,000,000
Retail Repurchase Agreements
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Investment securities pledged as collateral		30,300,000	34,600,000
Retail Repurchase Agreements | US Treasury and Government
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings		21,387,000	19,278,000
Brokered Sweep Deposit
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings		$ 223,600,000	$ 123,100,000
Percentage of other borrowings at cost		0.58%	0.45%
Number of counterparties to unused federal funds lines of credit | counterparty		4
Committed federal funds lines of credit		$ 107,500,000.0
Subordinated Debt
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings		79,658,000	$ 79,489,000
Junior subordinated debt, face amount	$ 7,700,000
Fair value acquisition discount		$ 2,100,000			$ 2,300,000
Subordinated Debt | London Interbank Offered Rate (LIBOR)
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Basis spread on LIBOR rate	1.85%
Subordinated Debt | Subordinated Notes Due October 2024
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Subordinated notes, face amount				$ 75,000,000.0
Subordinated notes, stated interest rate				5.75%
Debt issuance cost				$ 1,300,000
Maximum | Wholesale Reverse Repurchase Agreements | Borrowings One
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings remaining maturity term		3 years	3 years
Maximum | Wholesale Reverse Repurchase Agreements | Borrowings Two
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings remaining maturity term			3 years
Maximum | Wholesale Reverse Repurchase Agreements | Borrowings Three
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other borrowings remaining maturity term			3 years
Federal Home Loan Bank, Advances, Callable Option
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Advances from FHLBB		$ 93,000,000
Number of advances | advance		8
Federal Home Loan Bank, Advances, Callable Option | Minimum
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Federal home loan bank advances interest rate at period end		0.26%
Federal home loan bank advances, maturity year		2017
Federal Home Loan Bank, Advances, Callable Option | Maximum
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Federal home loan bank advances interest rate at period end		4.49%
Federal home loan bank advances, maturity year		2031

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Borrowings - Other Borrowings by Category (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Other borrowings	$ 125,399	$ 150,017
US Treasury and Government | Wholesale repurchase agreements
Debt Instrument [Line Items]
Other borrowings	20,000	45,000
US Treasury and Government | Customer repurchase agreements
Debt Instrument [Line Items]
Other borrowings	21,387	19,278
Subordinated debentures
Debt Instrument [Line Items]
Other borrowings	79,658	79,489
Other
Debt Instrument [Line Items]
Other borrowings	$ 4,354	$ 6,250

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Borrowings - Outstanding Borrowings Under Repurchase Agreements (Details) - US Treasury and Government - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Borrowings under repurchase agreements	$ 41,387	$ 64,278
Maturity Overnight
Assets Sold under Agreements to Repurchase [Line Items]
Borrowings under repurchase agreements	21,387	19,278
Maturity Up To 1 Year
Assets Sold under Agreements to Repurchase [Line Items]
Borrowings under repurchase agreements	0	25,000
Maturity 1 to 3 Years
Assets Sold under Agreements to Repurchase [Line Items]
Borrowings under repurchase agreements	20,000	20,000
Maturity Greater Than 3 Years
Assets Sold under Agreements to Repurchase [Line Items]
Borrowings under repurchase agreements	$ 0	$ 0

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Derivatives and Hedging Activities - Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Notional Amount	$ 1,521,880	$ 1,167,415
Estimated Fair Value, Net Asset (Liability)	(13,990)	(3,765)
Designated as Hedging Instruments | Cash flow hedges | Forward starting interest rate swaps on future borrowings
Derivative [Line Items]
Notional Amount	$ 100,000	$ 150,000
Weighted-Average Remaining Maturity (in years)	7 years 7 months 8 days	7 years 11 months 25 days
Weighted-Average Interest Rate Swaps, Paid	2.43%	2.46%
Estimated Fair Value, Net Asset (Liability)	$ (5,926)	$ (2,072)
Designated as Hedging Instruments | Cash flow hedges | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 330,000	$ 280,000
Weighted-Average Remaining Maturity (in years)	2 years 7 months 5 days	2 years 7 months 25 days
Weighted-Average Interest Rate Swaps, Received	0.78%	0.46%
Weighted-Average Interest Rate Swaps, Paid	1.47%	1.28%
Estimated Fair Value, Net Asset (Liability)	$ (8,592)	$ (2,020)
Designated as Hedging Instruments | Fair value hedges | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 35,000	$ 35,000
Weighted-Average Remaining Maturity (in years)	11 months 20 days	1 year 8 months 21 days
Weighted-Average Interest Rate Swaps, Received	1.04%	1.04%
Weighted-Average Interest Rate Swaps, Paid	0.60%	0.48%
Estimated Fair Value, Net Asset (Liability)	$ 97	$ 24
Not Designated as Hedging Instruments | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 7,500
Weighted-Average Remaining Maturity (in years)	9 years 9 months 14 days
Estimated Fair Value, Net Asset (Liability)	$ (90)
Not Designated as Hedging Instruments | Forward loan sale commitments
Derivative [Line Items]
Notional Amount	$ 121,961	$ 25,060
Weighted-Average Remaining Maturity (in years)	0 years	0 years
Estimated Fair Value, Net Asset (Liability)	$ (297)	$ (13)
Not Designated as Hedging Instruments | Derivative loan commitments
Derivative [Line Items]
Notional Amount	$ 47,921	$ 9,403
Weighted-Average Remaining Maturity (in years)	0 years	0 years
Estimated Fair Value, Net Asset (Liability)	$ 868	$ 223
Not Designated as Hedging Instruments | Loan level swaps - dealer
Derivative [Line Items]
Notional Amount	$ 439,749	$ 333,971
Weighted-Average Remaining Maturity (in years)	7 years 10 months 4 days	9 years 17 days
Weighted-Average Interest Rate Swaps, Received	2.23%	1.94%
Weighted-Average Interest Rate Swaps, Paid	3.80%	3.93%
Estimated Fair Value, Net Asset (Liability)	$ (28,769)	$ (12,059)
Not Designated as Hedging Instruments | Loan level swaps - borrowers
Derivative [Line Items]
Notional Amount	$ 439,749	$ 333,981
Weighted-Average Remaining Maturity (in years)	7 years 10 months 4 days	9 years 17 days
Weighted-Average Interest Rate Swaps, Received	3.80%	3.93%
Weighted-Average Interest Rate Swaps, Paid	2.23%	1.94%
Estimated Fair Value, Net Asset (Liability)	$ 28,719	$ 12,152

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Derivatives and Hedging Activities - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($) counterparty borrower derivative	Dec. 31, 2015 USD ($)	Sep. 30, 2015 derivative
Derivative [Line Items]
Derivative notional amount	$ 1,521,880	$ 1,167,415
Fair value of net derivatives, liability position	44,200
Amount of collateral	48,600
Designated as Hedging Instruments | Cash flow hedges | Interest rate contract
Derivative [Line Items]
Estimated reduction/increase to interest expense	$ 1,900
Forecasted transactions, period	60 months
Number of derivative instruments | derivative	10
Derivative notional amount	$ 430,000
Designated as Hedging Instruments | Fair value hedges | Interest rate contract
Derivative [Line Items]
Number of derivative instruments | derivative	3
Derivative notional amount	$ 35,000
Not Designated as Hedging Instruments | Interest rate contract
Derivative [Line Items]
Number of derivative instruments | derivative	1
Derivative notional amount	$ 7,500
Not Designated as Hedging Instruments | Borrower
Derivative [Line Items]
Number of derivative instruments | derivative	65
Derivative notional amount	$ 439,700
Not Designated as Hedging Instruments | Brokerage Activities
Derivative [Line Items]
Number of derivative instruments | derivative	65
Derivative notional amount	$ 439,700
Not Designated as Hedging Instruments | Interest Rate Swap, Risk Participation Agreement
Derivative [Line Items]
Number of derivative instruments | derivative	5
Number of counterparties in risk participation agreements | counterparty	3
Number of borrowers involved in the risk participation agreements | borrower	5
Not Designated as Hedging Instruments | Interest Rate Swap, Risk Participation Agreement, Credit Enhancements Provided By Counterparty
Derivative [Line Items]
Number of derivative instruments | derivative	4
Derivative notional amount	$ 26,600
Counterparty participation level, percentage	39.20%
Not Designated as Hedging Instruments | Interest Rate Swap, Risk Participation Agreement, Credit Enhancements Provided By The Bank
Derivative [Line Items]
Number of derivative instruments | derivative			1
Derivative notional amount	$ 6,100
Counterparty participation level, percentage	33.10%

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Derivatives and Hedging Activities - Tabular Disclosure of Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 118	$ 528
Derivative Liabilities	14,539	4,596
Designated as Hedging Instruments | Cash flow hedges | Interest rate swaps | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	21	478
Designated as Hedging Instruments | Cash flow hedges | Interest rate swaps | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	14,539	4,570
Designated as Hedging Instruments | Fair value hedges | Interest rate swaps | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	97	50
Designated as Hedging Instruments | Fair value hedges | Interest rate swaps | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	26
Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	29,601	12,382
Derivative Liabilities	29,170	12,079
Not Designated as Hedging Instruments | Interest rate swaps | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	10	0
Not Designated as Hedging Instruments | Interest rate swaps | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	100	0
Not Designated as Hedging Instruments | Interest rate swaps | With Customers | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	28,719	12,152
Not Designated as Hedging Instruments | Interest rate swaps | With Customers | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Not Designated as Hedging Instruments | Interest rate swaps | With Counterparties | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0
Not Designated as Hedging Instruments | Interest rate swaps | With Counterparties | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	28,769	12,059
Not Designated as Hedging Instruments | Forward loan sale commitments | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	4	7
Not Designated as Hedging Instruments | Forward loan sale commitments | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	301	20
Not Designated as Hedging Instruments | Derivative loan commitments | Other Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	868	223
Not Designated as Hedging Instruments | Derivative loan commitments | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 0	$ 0

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Derivatives and Hedging Activities - Schedule of Effect of Derivative Instruments in Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Designated as Hedging Instruments | Interest rate swaps | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in AOCI (Effective Portion)	$ 2,190	$ (4,898)	$ (10,426)	$ (5,521)
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	664	0	1,844	(12)
Designated as Hedging Instruments | Interest rate swaps | Fair value hedges | Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income for Derivatives	100	137	73	303
Amount of Gain (Loss) Recognized in Income for Hedged Items	(100)	(138)	(73)	(306)
Not Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income for Derivatives	(836)	1,286	344	650
Not Designated as Hedging Instruments | Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income for Derivatives	(190)	(245)	(17)	(3)
Not Designated as Hedging Instruments | Derivative loan commitments
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income for Derivatives	(329)	1,568	645	614
Not Designated as Hedging Instruments | Forward loan sale commitments
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income for Derivatives	$ (317)	$ (37)	$ (284)	$ 39

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Stock-Based Compensation Plans - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) shares	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) shares	Sep. 30, 2015 USD ($)	Oct. 29, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			$ 1,543	$ 689
Other non-interest expenses	$ 5,410	$ 6,360	16,389	16,878
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	20	32	80	100
Tax benefit recorded	7	12	29	36
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	499	131	1,500	589
Tax benefit recorded	180	$ 47	527	$ 212
Options and Restricted Stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	105		325
Options and Restricted Stock | Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other non-interest expenses	$ 414		$ 1,200
2015 Omnibus Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under the plan (in shares) | shares					4,050,000
Share-based awards, fungible ratio					2.35
Shares available for future grants (in shares) | shares	3,356,982		3,356,982

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Stock-Based Compensation Plans - Activity Related to Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Number of Stock Options
Outstanding at December 31, 2015 (in shares)	2,649,735
Granted (in shares)	0	0
Exercised (in shares)	(506,854)
Forfeited or expired (in shares)	(27,696)
Outstanding at September 30, 2016(in shares)	2,115,185
Stock options vested and exercisable at end of period (in shares)	1,992,585
Stock Options, Weighted- Average Exercise Price
Outstanding at December 2015 (in usd per share)	$ 10.88
Granted (in usd per share)	0.00
Exercised (in usd per share)	9.28
Forfeited or expired (in usd per share)	13.67
Outstanding at September 30, 2016 (in usd per share)	11.22
Weighted Average Exercise Price, Stock options vested and exercisable at September 30, 2016 (in usd per share)	$ 11.07
Weighted-Average Remaining Contractual Term, Outstanding at September 30, 2016	5 years 4 months
Weighted-Average Remaining Contractual Term, Stock options vested and exercisable at September 30, 2016	5 years 2 months
Aggregate Intrinsic Value, Outstanding at September 30, 2016	$ 5.5
Aggregate Intrinsic Value, Stock options vested and exercisable at September 30, 2016	$ 5.5

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Stock-Based Compensation Plans - Stock Options - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	0	0
SAR options exercised (in shares)	506,854
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to outstanding stock options	$ 200
Unrecognized cost related to outstanding stock options, period of recognition	2 years
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
SAR options exercised (in shares)	20,208

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Stock-Based Compensation Plans - Restricted Stock - Additional Information (Detail) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock issued (in shares)	39,328
Weighted average grant date fair value (in usd per share)	$ 13.03	$ 13.20
Unvested restricted stock, period of recognition	2 years
Total unrecognized compensation cost related to unvested restricted stock	$ 2.6
Employee Stock Option 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock issued (in shares)	39,328
Weighted average grant date fair value (in usd per share)	$ 11.70
Unvested restricted stock, period of recognition	3 years

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Stock-Based Compensation Plans - Activity for Restricted Stock (Detail) - Restricted Stock	9 Months Ended
	Sep. 30, 2016 $ / shares shares
Number of Shares
Unvested as of December 31, 2015 (in shares) | shares	326,013
Granted (in shares) | shares	39,328
Vested (in shares) | shares	(21,377)
Forfeited (in shares) | shares	0
Unvested as of September 30, 2016 (in shares) | shares	343,964
Weighted-Average Grant-Date Fair Value
Unvested as of December 31, 2015 (in usd per share) | $ / shares	$ 13.20
Granted (in usd per share) | $ / shares	11.70
Vested (in usd per share) | $ / shares	13.19
Forfeited (in usd per share) | $ / shares	0.00
Unvested as of September 30, 2016 (in usd per share) | $ / shares	$ 13.03

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Stock-Based Compensation Plans - Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock ownership plan loan outstanding balance	$ 6,300		$ 6,300
Interest rate for the ESOP loans			1.00%
ESOP compensation expense	77	$ 75	$ 216	$ 222
Employee Stock Ownership Plan 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Borrowings from the company			$ 7,100
Purchase of common stock (in shares)			684,395
Employee stock ownership plan loan outstanding balance	$ 6,300		$ 6,300
Bank's discretionary contributions to the ESOP over a remaining period			25 years

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Stock-Based Compensation Plans - ESOP Shares (Detail) $ in Thousands	Sep. 30, 2016 USD ($) shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Allocated shares (in shares)	1,175,239
Shares allocated for release (in shares)	17,110
Unreleased shares (in shares)	553,219
Total ESOP shares (in shares)	1,745,568
Market value of unreleased shares (in thousands) | $	$ 7,893

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Regulatory Matters - Regulatory Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
United Bank
Capital to Risk [Abstract]
Total capital to risk weighted assets, Actual, Amount	$ 601,416	$ 558,969
Total capital to risk weighted assets, Actual, Ratio	12.30%	11.20%
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount	$ 391,165	$ 398,552
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	$ 488,956	$ 498,190
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Common Equity Tier 1
Common equity tier 1 capital to risk weighted assets, Actual, Amount	$ 558,812	$ 523,786
Common equity tier 1 capital to risk weighted assets, Actual, Ratio	11.40%	10.50%
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount	$ 220,584	$ 224,266
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio	4.50%	4.50%
Common equity tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	$ 318,621	$ 323,940
Common equity tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%
Tier 1 Capital to Risk[Abstract]
Tier 1 capital to risk weighted assets, Actual, Amount	$ 558,812	$ 523,786
Tier 1 capital to risk weighted assets, Actual, Ratio	11.40%	10.50%
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount	$ 294,112	$ 299,022
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio	6.00%	6.00%
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	$ 392,149	$ 398,695
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier 1 Capital to Total Average Assets [Abstract]
Tier 1 capital to total average assets, Actual, Amount	$ 558,812	$ 523,786
Tier 1 capital to total average assets, Actual, Ratio	8.90%	8.90%
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Amount	$ 251,151	$ 234,882
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier 1 capital to total average assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount	$ 313,939	$ 293,602
Tier 1 capital to total average assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
United Financial Bancorp, Inc.
Capital to Risk [Abstract]
Total capital to risk weighted assets, Actual, Amount	$ 655,285	$ 628,915
Total capital to risk weighted assets, Actual, Ratio	13.30%	12.50%
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount	$ 394,156	$ 401,542
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Common Equity Tier 1
Common equity tier 1 capital to risk weighted assets, Actual, Amount	$ 537,681	$ 518,732
Common equity tier 1 capital to risk weighted assets, Actual, Ratio	10.90%	10.30%
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount	$ 221,978	$ 225,972
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio	4.50%	4.50%
Tier 1 Capital to Risk[Abstract]
Tier 1 capital to risk weighted assets, Actual, Amount	$ 537,681	$ 518,732
Tier 1 capital to risk weighted assets, Actual, Ratio	10.90%	10.30%
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount	$ 295,971	$ 301,296
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio	6.00%	6.00%
Tier 1 Capital to Total Average Assets [Abstract]
Tier 1 capital to total average assets, Actual, Amount	$ 537,681	$ 518,732
Tier 1 capital to total average assets, Actual, Ratio	8.50%	8.90%
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Amount	$ 253,026	$ 233,926
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Ratio	4.00%	4.00%

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Accumulated Other Comprehensive Loss - Components Included in Stockholder's Equity (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Benefit plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gain (loss)	$ (6,704)	$ (7,080)
Tax effect	2,416	2,551
Other comprehensive income (loss), net of tax	(4,288)	(4,529)
Securities available for sale
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gain (loss)	15,562	(5,821)
Tax effect	(5,600)	2,088
Other comprehensive income (loss), net of tax	9,962	(3,733)
Interest rate swaps
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gain (loss)	(14,518)	(4,092)
Tax effect	5,231	1,475
Other comprehensive income (loss), net of tax	(9,287)	(2,617)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), net of tax	$ (3,613)	$ (10,879)

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Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 14,159	$ 13,381	$ 35,111	$ 39,738
Weighted-average common shares outstanding (in shares)	50,357,085	49,510,996	50,179,784	49,414,633
Less: average number of unallocated ESOP award shares (in shares)	(556,980)	(579,793)	(562,648)	(585,440)
Weighted-average basic shares outstanding (in shares)	49,800,105	48,931,203	49,617,136	48,829,193
Dilutive effect of stock options (in shares)	341,070	498,606	299,913	510,078
Weighted-average diluted shares (in shares)	50,141,175	49,429,809	49,917,049	49,339,271
Net income per share:
Basic (in usd per share)	$ 0.28	$ 0.27	$ 0.71	$ 0.81
Diluted (in usd per share)	$ 0.28	$ 0.27	$ 0.70	$ 0.81
Anti-dilutive stock options excluded from diluted earnings per share calculation (in shares)	270,329	637,770	627,768	637,770

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Fair Value Measurements - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Aggregate principal amount of residential real estate mortgage loans held for sale	$ 82,100,000		$ 9,800,000
Aggregate fair value of mortgage loans held for sale	83,300,000		10,100,000
Residential real estate mortgage loans held for sale 90 days or more past due	0		0
Transfers in and out of Level 1, Level 2 and Level 3 measurements	$ 0	$ 0
Fixed rate mortgage loans term	30 years
Maturity period, Term 1	10 years
Maturity period, Term 2	15 years
Maturity period, Term 3	20 years
Estimated fallout rate based upon historical averages	14.50%
Liabilities measured at fair value on a non-recurring basis	$ 0		$ 0

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Fair Value Measurements - Changes in Fair Value of Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net Gain From Sales of Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loans held for sale	$ 1,490	$ (498)	$ 1,530	$ 183

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Fair Value Measurements - Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Available-for-Sale Securities:
Total available-for-sale securities	$ 1,052,439		$ 1,059,169
Mortgage servicing rights	7,096	$ 6,589	7,074	$ 5,995	$ 5,994	$ 4,729
Recurring
Available-for-Sale Securities:
Total available-for-sale securities	1,052,439		1,059,169
Recurring | Mortgage Loan Derivative Assets & Liabilities
Available-for-Sale Securities:
Mortgage loan derivative assets	882		230
Mortgage loan derivative liabilities	401		20
Loans held for sale	83,321		10,136
Recurring | Government-sponsored residential collateralized debt obligations
Available-for-Sale Securities:
Total available-for-sale securities	197,830		286,967
Recurring | Government-sponsored commercial collateralized debt obligations
Available-for-Sale Securities:
Total available-for-sale securities	179,726		128,972
Recurring | Asset-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	160,357		159,901
Recurring | Corporate debt securities
Available-for-Sale Securities:
Total available-for-sale securities	60,210		59,960
Recurring | Obligations of states and political subdivisions
Available-for-Sale Securities:
Total available-for-sale securities	223,856		201,115
Recurring | Government-sponsored residential mortgage-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	164,668		145,861
Recurring | Government-sponsored commercial mortgage-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	27,820		20,965
Recurring | Marketable equity securities
Available-for-Sale Securities:
Total available-for-sale securities	37,972		45,339
Recurring | Mortgage Servicing Rights
Available-for-Sale Securities:
Mortgage servicing rights	7,096		7,074
Recurring | Interest rate swaps
Available-for-Sale Securities:
Interest rate swap assets	28,837		12,680
Interest rate swap liabilities	43,308		16,655
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Available-for-Sale Securities:
Total available-for-sale securities	3,296		3,227
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities
Available-for-Sale Securities:
Total available-for-sale securities	3,296		3,227
Recurring | Other Observable Inputs (Level 2)
Available-for-Sale Securities:
Total available-for-sale securities	900,806		909,872
Recurring | Other Observable Inputs (Level 2) | Mortgage Loan Derivative Assets & Liabilities
Available-for-Sale Securities:
Mortgage loan derivative assets	882		230
Mortgage loan derivative liabilities	401		20
Loans held for sale	83,321		10,136
Recurring | Other Observable Inputs (Level 2) | Government-sponsored residential collateralized debt obligations
Available-for-Sale Securities:
Total available-for-sale securities	197,830		286,967
Recurring | Other Observable Inputs (Level 2) | Government-sponsored commercial collateralized debt obligations
Available-for-Sale Securities:
Total available-for-sale securities	179,726		128,972
Recurring | Other Observable Inputs (Level 2) | Asset-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	13,532		15,388
Recurring | Other Observable Inputs (Level 2) | Corporate debt securities
Available-for-Sale Securities:
Total available-for-sale securities	58,698		58,403
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions
Available-for-Sale Securities:
Total available-for-sale securities	223,856		201,115
Recurring | Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	164,668		145,861
Recurring | Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	27,820		20,965
Recurring | Other Observable Inputs (Level 2) | Marketable equity securities
Available-for-Sale Securities:
Total available-for-sale securities	34,676		42,112
Recurring | Other Observable Inputs (Level 2) | Interest rate swaps
Available-for-Sale Securities:
Interest rate swap assets	28,837		12,680
Interest rate swap liabilities	43,308		16,655
Recurring | Significant Unobservable Inputs (Level 3)
Available-for-Sale Securities:
Total available-for-sale securities	148,337		146,070
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities
Available-for-Sale Securities:
Total available-for-sale securities	146,825		144,513
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities
Available-for-Sale Securities:
Total available-for-sale securities	1,512		1,557
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights
Available-for-Sale Securities:
Mortgage servicing rights	$ 7,096		7,074
Recurring | U.S. Government and government-sponsored enterprise obligations
Available-for-Sale Securities:
Total available-for-sale securities			10,089
Recurring | U.S. Government and government-sponsored enterprise obligations | Other Observable Inputs (Level 2)
Available-for-Sale Securities:
Total available-for-sale securities			$ 10,089

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Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs (Detail) - Recurring - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Mortgage Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 6,589	$ 5,994	$ 7,074	$ 4,729
Change in fair value recognized in net income	(114)	(888)	(1,800)	(888)
Issuances	621	889	1,822	2,154
Balance at end of period	7,096	5,995	7,096	5,995
Available for Sale Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	145,134	146,956	146,070	137,207
Purchases (sales)	91	2,995	(909)	12,794
Principal payments and net accretion	(244)	(532)	(722)	(967)
Change in fair value recognized in net income	(14)	0	(164)	0
Total unrealized gains (losses) included in other comprehensive income/loss	3,370	(800)	4,062	(415)
Balance at end of period	$ 148,337	$ 148,619	$ 148,337	$ 148,619

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Fair Value Measurements - Additional Quantitative Information of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	$ 1,052,439,000	$ 1,059,169,000
Recurring
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	1,052,439,000	1,059,169,000
Recurring | Asset-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	160,357,000	159,901,000
Recurring | Corporate debt securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	60,210,000	59,960,000
Recurring | Significant Unobservable Inputs (Level 3)
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	148,337,000	146,070,000
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	$ 146,825,000	144,513,000
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | Minimum | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	2.40%
Cumulative Default %	6.00%
Loss Given Default	1.80%
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | Maximum | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	3.70%
Cumulative Default %	8.30%
Loss Given Default	2.70%
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | Weighted Average | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	3.70%
Cumulative Default %	8.40%
Loss Given Default	2.70%
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	$ 1,512,000	$ 1,557,000
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	6.30%
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Minimum | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cumulative Default %	2.80%
Loss Given Default	85.00%
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Maximum | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cumulative Default %	41.70%
Loss Given Default	100.00%
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Weighted Average | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	6.80%
Cumulative Default %	11.30%
Loss Given Default	94.40%
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Available-for-sale securities	$ 7,096,000
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Float Earnings Rate	0.25%
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | Minimum | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	9.00%
Cost to Service	$ 50
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | Maximum | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	18.00%
Cost to Service	$ 110
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | Weighted Average | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount Rate	10.50%
Cost to Service	$ 61.12
Float Earnings Rate	0.25%

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Fair Value Measurements - Summary of Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 4,413	$ 2,096
Other real estate owned	2,792	755
Total	7,205	2,851
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	4,413	2,096
Other real estate owned	2,792	755
Total	$ 7,205	$ 2,851

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Fair Value Measurements - Summary of Gains (Losses) on Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ (573)	$ (162)	$ (1,040)	$ (249)
Other real estate owned	0	0	(4)	(118)
Total	$ (573)	$ (162)	$ (1,044)	$ (367)

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Fair Value Measurements - Summary of Carrying Value and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial assets:
Available-for-sale securities	$ 1,052,439	$ 1,059,169
Held-to-maturity securities	15,569	15,683
Loans held for sale	83,300	10,100
Financial liabilities:
FHLBB advances and other borrowings	977,483	949,003
Carrying Value
Financial assets:
Cash and cash equivalents	214,246	95,176
Available-for-sale securities	1,052,439	1,059,169
Held-to-maturity securities	14,162	14,565
Loans held for sale	83,321	10,136
Loans receivable-net	4,689,834	4,587,062
FHLBB stock	52,847	51,196
Accrued interest receivable	17,888	15,740
Derivative assets	29,719	12,910
Mortgage servicing rights	7,096	7,074
Financial liabilities:
Deposits	4,695,471	4,437,071
Mortgagors’ and investors’ escrow accounts	9,045	13,526
FHLBB advances and other borrowings	1,102,882	1,099,020
Derivative liabilities	43,709	16,675
Fair Value
Financial assets:
Cash and cash equivalents	214,246	95,176
Available-for-sale securities	1,052,439	1,059,169
Held-to-maturity securities	15,569	15,683
Loans held for sale	83,321	10,136
Loans receivable-net	4,719,683	4,629,243
FHLBB stock	52,847	51,196
Accrued interest receivable	17,888	15,740
Derivative assets	29,719	12,910
Mortgage servicing rights	7,096	7,074
Financial liabilities:
Deposits	4,703,203	4,436,456
Mortgagors’ and investors’ escrow accounts	9,045	13,526
FHLBB advances and other borrowings	1,101,421	1,096,452
Derivative liabilities	43,709	16,675
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	214,246	95,176
Available-for-sale securities	3,296	3,227
Fair Value | Other Observable Inputs (Level 2)
Financial assets:
Available-for-sale securities	900,806	909,872
Held-to-maturity securities	15,569	15,683
Loans held for sale	83,321	10,136
Derivative assets	29,719	12,910
Financial liabilities:
FHLBB advances and other borrowings	1,101,421	1,096,452
Derivative liabilities	43,709	16,675
Fair Value | Significant Unobservable Inputs (Level 3)
Financial assets:
Available-for-sale securities	148,337	146,070
Loans receivable-net	4,719,683	4,629,243
FHLBB stock	52,847	51,196
Accrued interest receivable	17,888	15,740
Mortgage servicing rights	7,096	7,074
Financial liabilities:
Deposits	4,703,203	4,436,456
Mortgagors’ and investors’ escrow accounts	9,045	13,526
FHLBB advances and other borrowings	$ 0	$ 0

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Commitments and Contingencies - Financial Instruments Contract Amounts Represent Credit Risk (Detail) - Commitments to extend credit - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Commitments to extend credit:
Commitments to extend credit, amount	$ 1,075,187	$ 962,882
Commitment to grant loans
Commitments to extend credit:
Commitments to extend credit, amount	256,564	219,407
Undisbursed construction loans
Commitments to extend credit:
Commitments to extend credit, amount	99,148	103,140
Undisbursed home equity lines of credit
Commitments to extend credit:
Commitments to extend credit, amount	349,655	320,140
Undisbursed commercial lines of credit
Commitments to extend credit:
Commitments to extend credit, amount	343,939	302,700
Standby letters of credit
Commitments to extend credit:
Commitments to extend credit, amount	13,253	9,477
Unused credit card lines
Commitments to extend credit:
Commitments to extend credit, amount	11,232	6,725
Unused checking overdraft lines of credit
Commitments to extend credit:
Commitments to extend credit, amount	$ 1,396	$ 1,293

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Commitments and Contingencies - Additional Information (Details) - Tax Credit Partnership $ in Millions	Sep. 30, 2016 USD ($)
Other Commitments [Line Items]
Net carrying balance of investments	$ 31.9
Capital contribution commitments	$ 5.3