FOR
      IMMEDIATE RELEASE
            For
      More Information Contact:Mark
      A. RobertsExecutive
      Vice President & CFO(413)
      787-1700








UNITED
FINANCIAL BANCORP REPORTS FINANCIAL RESULTS FOR 2008,


DECLARES
DIVIDEND OF $0.07 PER SHARE AND ANNOUNCES HEALTHY BALANCE


SHEET
AND STRONG CAPITAL AND LIQUIDITY POSITIONS










WEST SPRINGFIELD, MA—January 26,
2009—United Financial Bancorp, Inc. (the “Company”) (NASDAQ:UBNK), the
holding company for United Bank (the “Bank”), reported net income of $959,000,
or $0.06 per diluted share, for the fourth quarter of 2008 compared to net
income of $1.3 million, or $0.08 per diluted share, for the corresponding period
in 2007.  The decline in net income and earnings per share was
primarily due to the recognition of a pre-tax, non-cash charge of $1.4 million
for other-than-temporary impairment (“OTTI”) of all of the Company’s trust
preferred securities and one municipal security.  Excluding this
charge and the related tax effect of $550,000, net income would have been $1.8
million or $512,000 more than the corresponding quarter in the prior
year.  Such improvement was largely due to a significant increase in
net interest income, driven by net interest margin expansion and growth in
average earning assets.  The quarterly operating performance was also
affected by an increase in non-interest expenses.  For the year ended
December 31, 2008, the Company’s net income was $7.3 million, or $0.45 per
diluted share, compared to net income of $4.4 million, or $0.26 per diluted
share, for the year ended December 31, 2007.  The Company also
announced a quarterly cash dividend of $0.07 per share, payable on March 10,
2009 to shareholders of record as of February 17, 2009.





Total
assets increased $183.9 million, or 17.0%, to $1.3 billion at December 31, 2008
from $1.1 billion at year end 2007 reflecting growth of $112.2 million, or
55.8%, in securities available for sale, $45.8 million, or 5.6%, in total loans
and $20.5 million in bank-owned life insurance.  Balance sheet
expansion was funded by increases of $100.6 million, or 93.1%, in Federal Home
Loan Bank advances, $64.0 million, or 8.9%, in total deposits and $14.2 million,
or 102.3% in repurchase agreements.  At year end, the Company
continued to have considerable liquidity including significant unused borrowing
capacity at the Federal Home Loan Bank and access to funding through the
repurchase agreement and brokered deposit markets.  The Company’s
balance sheet is also supported by a strong capital position, with total
stockholders’ equity of $227.7 million, or 18.0% of total assets, at December
31, 2008.





"During
the fourth quarter, the turmoil in the financial markets resulted in a further
decline in the value of certain securities in our investment portfolio and the
recognition of an impairment charge," commented Richard B. Collins, President
and Chief Executive Officer.  “While we are disappointed with the
decline in fourth quarter earnings due to securities write-downs, we are pleased
with our overall performance which reflects improvement in net interest margin
and growth in loans and deposits.  Our operating results also reflect
the impact of higher levels of non-performing assets and net charge-offs as a
result of the difficult economic environment.”  Mr. Collins further
remarked that “we expect 2009 to be another difficult year for the overall
economy, which may lead to further increases in non-performing assets and
charge-offs.  We will continue to diligently manage our asset quality
while also focusing on executing our business plan and maintaining a healthy
balance sheet, a substantial capital base and a strong liquidity
level.”




Financial
Highlights:




·
            Total
      securities available for sale increased $112.2 million, or 55.8%, to
      $313.5 million at December 31, 2008 from $201.3 million at December
      31, 2007 due to the implementation of a strategy to deploy excess capital
      and liquidity resulting from the Company’s 2007 second-step stock
      offering.  At December 31, 2008, approximately 96% of the
      available-for-sale investment portfolio consisted of mortgage-backed and
      debt securities issued by government-sponsored
  enterprises.





·
            Total
      loans increased $45.8 million, or 5.6%, to $870.5 million at December 31,
      2008 from $824.7 million at December 31, 2007 reflecting growth in the
      commercial real estate (15.8%), residential real estate (5.0%), commercial
      (4.1%) and home equity (3.9%) portfolios as a result of business
      development efforts and competitive products and
      pricing.  Construction loan balances declined $10.0 million, or
      23.7%, to $32.1 million at December 31, 2008 as a result of pay-downs and
      a slow-down in the underlying
market.





·
            Non-performing
      assets totaled $5.8 million, or 0.46% of total assets, at December 31,
      2008 compared to $2.7 million, or 0.25% of total assets, at December 31,
      2007.  The increase of $3.1 million in non-performing assets was
      mainly attributable to several residential and commercial real estate
      loans that became more than 90 days delinquent. While total
      non-performing loans have increased during the period, the portfolio has
      not been affected by loans to sub-prime borrowers since the Company has
      not underwritten loans targeted to this segment of the
    market.








·
            At
      December 31, 2008, the ratio of the allowance for loan losses to total
      loans was 0.95% and the ratio of the allowance for loan losses to
      non-performing loans was 172%.  Net charge-offs totaled $1.3
      million, or 0.15% of average loans outstanding, for the year ended
      December 31, 2008 compared to net charge-offs of $929,000, or 0.12% of
      average loans , in
2007.





·
            Total
      deposits increased $64.0 million, or 8.9%, to $782.7 million at December
      31, 2008 compared to $718.7 million at December 31, 2007 mainly due to
      competitive products and pricing, excellent customer service, targeted
      promotional activities and two new branches opened in 2008, which are both
      performing above plan.  Core deposit balances grew $35.8
      million, or 9.6%, to $406.8 million at December 31, 2008 from $371.0
      million at December 31, 2007.





·
            Net
      interest income increased $2.5 million, or 32.1%, to $10.3 million for the
      fourth quarter of 2008 from the same period in 2007 as a result of net
      interest margin expansion and growth in average earning
      assets.  Net interest margin increased 44 basis points to 3.46%
      reflecting the use of net proceeds from the Company’s second-step stock
      offering to fund asset growth and a significant decrease in the cost of
      deposits as a result of the 400 basis point reduction in the federal funds
      rate from 4.25% at December 11, 2007 to 0.25% at December 31,
      2008.  Average earning assets expanded $157.2 million, or 15.2%,
      to $1.2 billion, mainly due to loan growth and purchases of
      mortgage-backed securities.





·
            Non-interest
      income decreased $1.1 million to $394,000 for the three months ended
      December 31, 2008 due to the impairment charge of $1.4 million, partially
      offset by an increase of $169,000 in income from bank-owned life
      insurance.  In November 2008, the Bank purchased an additional
      $20 million of bank-owned life
insurance.





·
            Non-interest
      expense grew $1.5 million, or 22.0%, to $8.2 million for the fourth
      quarter of 2008 from $6.7 million in the same period last
      year.  Salaries and benefits increase $880,000, or 23.7%,
      reflecting staffing costs for two new branches opened in 2008, an increase
      in stock-based compensation as a result of stock options and restricted
      stock granted in 2008, a higher incentive accrual associated with improved
      financial performance and annual wage adjustments.  Professional
      services grew $139,000, or 34.4%, principally due to higher legal and
      consulting costs.  Data processing expenses were $123,000, or
      16.9%, higher as a result of growth in the total number of loan and
      deposit accounts serviced, new branches opened in 2008 and costs
      for





the new
branch imaging process introduced in all branches beginning in 2008.
 Occupancy costs increased $120,000, or 24.8%, primarily due to the two
branches opened in 2008.  Other expenses increase $197,000, or 19.2%,
mainly in connection with a higher quarterly Federal Deposit Insurance
Corporation insurance premium and increased foreclosed properties
expenses.





United
Financial Bancorp, Inc. is a publicly owned corporation and the holding company
for United Bank, a federally chartered savings bank headquartered at 95 Elm
Street, West Springfield, MA 01090.  The Company’s common stock is
traded on the NASDAQ Global Select Market under the symbol
UBNK.  United Bank provides an array of financial products and
services through its 15 full service branch offices and one express drive up
branch located throughout Western Massachusetts.  Through its Wealth
Management Group and its partnership with NFP Securities, Inc., the Bank is able
to offer access to a wide range of investment and insurance products and
services, as well as financial, estate and retirement strategies and
products.  For more information regarding the Bank’s products and
services and for United Financial Bancorp, Inc. investor relations information,
please visit www.bankatunited.com.





Except
for the historical information contained in this press release, the matters
discussed may be deemed to be forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, that involve risks and
uncertainties, including changes in economic conditions in the Company’s market
area, changes in policies by regulatory agencies, fluctuations in interest
rates, demand for loans in the Company’s market area, competition, and other
risks detailed from time to time in the Company’s SEC reports.  Actual
strategies and results in future periods may differ materially from those
currently expected.  These forward-looking statements represent the
Company’s judgment as of the date of this release.  The Company
disclaims, however, any intent or obligation to update these forward-looking
statements.





UNITED
      FINANCIAL BANCORP, INC. AND SUBSIDIARYCONSOLIDATED
      STATEMENTS OF CONDITION(Dollars
      in thousands, except par value amounts)December
      31,
                                                                            
                                                                            
                                                                            December
      31,Assets
                                                                            
                                                                            2008
                                                                            
                                                                            
                                                                            2007(unaudited)
                                                                            
                                                                            
                                                                            (audited)Cash
      and cash equivalents
                                                                            
                                                                            $
                                                                            13,572
                                                                            
                                                                            
                                                                            $
                                                                            14,254Short-term
      investments
                                                                            
                                                                            
                                                                            1,071
                                                                            
                                                                            
                                                                            
                                                                            1,030Securities
      available for sale, at fair value
                                                                            
                                                                            
                                                                            313,506
                                                                            
                                                                            
                                                                            
                                                                            201,257Securities
      held to maturity, at amortized cost
                                                                            
                                                                            
                                                                            3,191
                                                                            
                                                                            
                                                                            
                                                                            3,632Loans:Residential
      mortgages
                                                                            
                                                                            
                                                                            356,428
                                                                            
                                                                            
                                                                            
                                                                            339,470Commercial
      mortgages
                                                                            
                                                                            
                                                                            248,457
                                                                            
                                                                            
                                                                            
                                                                            214,776Construction
      loans
                                                                            
                                                                            
                                                                            32,082
                                                                            
                                                                            
                                                                            
                                                                            42,059Commercial
      loans
                                                                            
                                                                            
                                                                            84,919
                                                                            
                                                                            
                                                                            
                                                                            81,562Home
      equity loans
                                                                            
                                                                            
                                                                            120,724
                                                                            
                                                                            
                                                                            
                                                                            116,241Consumer
      loans
                                                                            
                                                                            
                                                                            27,666
                                                                            
                                                                            
                                                                            
                                                                            30,587Total
      loans
                                                                            
                                                                            
                                                                            870,276
                                                                            
                                                                            
                                                                            
                                                                            824,695Net
      deferred loan costs and fees
                                                                            
                                                                            
                                                                            2,395
                                                                            
                                                                            
                                                                            
                                                                            2,136Allowance
      for loan losses
                                                                            
                                                                            
                                                                            (8,250
                                                                            )
                                                                            
                                                                            
                                                                            (7,714
                                                                            )Loans,
      net
                                                                            
                                                                            
                                                                            864,421
                                                                            
                                                                            
                                                                            
                                                                            819,117Federal
      Home Loan Bank of Boston stock, at cost
                                                                            
                                                                            
                                                                            12,223
                                                                            
                                                                            
                                                                            
                                                                            10,257Other
      real estate owned
                                                                            
                                                                            
                                                                            998
                                                                            
                                                                            
                                                                            
                                                                            880Deferred
      tax asset, net
                                                                            
                                                                            
                                                                            7,969
                                                                            
                                                                            
                                                                            
                                                                            4,953Premises
      and equipment, net
                                                                            
                                                                            
                                                                            12,125
                                                                            
                                                                            
                                                                            
                                                                            10,600Bank-owned
      life insurance
                                                                            
                                                                            
                                                                            27,173
                                                                            
                                                                            
                                                                            
                                                                            6,652Other
      assets
                                                                            
                                                                            
                                                                            6,884
                                                                            
                                                                            
                                                                            
                                                                            6,649Total
      assets
                                                                            
                                                                            $
                                                                            1,263,133
                                                                            
                                                                            
                                                                            $
                                                                            1,079,281Liabilities
      and Stockholders' EquityDeposits:Demand
                                                                            
                                                                            $
                                                                            114,178
                                                                            
                                                                            
                                                                            $
                                                                            102,010NOW
                                                                            
                                                                            
                                                                            32,390
                                                                            
                                                                            
                                                                            
                                                                            35,207Savings
                                                                            
                                                                            
                                                                            99,492
                                                                            
                                                                            
                                                                            
                                                                            65,711Money
      market
                                                                            
                                                                            
                                                                            160,736
                                                                            
                                                                            
                                                                            
                                                                            168,107Certificates
      of deposit
                                                                            
                                                                            
                                                                            375,867
                                                                            
                                                                            
                                                                            
                                                                            347,647Total
      deposits
                                                                            
                                                                            
                                                                            782,663
                                                                            
                                                                            
                                                                            
                                                                            718,682Federal
      Home Loan Bank of Boston advances
                                                                            
                                                                            
                                                                            208,564
                                                                            
                                                                            
                                                                            
                                                                            107,997Repurchase
      agreements
                                                                            
                                                                            
                                                                            28,042
                                                                            
                                                                            
                                                                            
                                                                            13,864Escrow
      funds held for borrowers
                                                                            
                                                                            
                                                                            1,667
                                                                            
                                                                            
                                                                            
                                                                            1,356Capitalized
      lease obligations
                                                                            
                                                                            
                                                                            3,129
                                                                            
                                                                            
                                                                            
                                                                            1,890Accrued
      expenses and other liabilities
                                                                            
                                                                            
                                                                            11,354
                                                                            
                                                                            
                                                                            
                                                                            9,372Total
      liabilities
                                                                            
                                                                            
                                                                            1,035,419
                                                                            
                                                                            
                                                                            
                                                                            853,161Stockholders'
      Equity:Preferred
      stock, par value $0.01 per share, authorized 50,000,000
      shares;none
      issued
                                                                            
                                                                            
                                                                            -
                                                                            
                                                                            
                                                                            
                                                                            -Common
      stock, par value $0.01 per share; authorized 100,000,000
      shares;shares
      issued: 17,763,747 at December 31, 2008 and December 31,
    2007
                                                                            
                                                                            
                                                                            178
                                                                            
                                                                            
                                                                            
                                                                            178Additional
      paid-in capital
                                                                            
                                                                            
                                                                            164,358
                                                                            
                                                                            
                                                                            
                                                                            165,920Retained
      earnings
                                                                            
                                                                            
                                                                            75,888
                                                                            
                                                                            
                                                                            
                                                                            73,026Unearned
      compensation
                                                                            
                                                                            
                                                                            (12,144
                                                                            )
                                                                            
                                                                            
                                                                            (12,835
                                                                            )Accumulated
      other comprehensive income (loss), net of taxes
                                                                            
                                                                            
                                                                            2,931
                                                                            
                                                                            
                                                                            
                                                                            (169
                                                                            )Treasury
      stock, at cost (261,798 shares at December 31, 2008)
                                                                            
                                                                            
                                                                            (3,497
                                                                            )
                                                                            
                                                                            
                                                                            -Total
      stockholders' equity
                                                                            
                                                                            
                                                                            227,714
                                                                            
                                                                            
                                                                            
                                                                            226,120Total
      liabilities and stockholders' equity
                                                                            
                                                                            $
                                                                            1,263,133
                                                                            
                                                                            
                                                                            $
                                                                            1,079,281











UNITED
      FINANCIAL BANCORP, INC. AND SUBSIDIARYCONSOLIDATED
      INCOME STATEMENTS(Amounts
      in thousands, except per share amounts)Three
      Months Ended
                                                                                                                
                                                                                                                
                                                                                                                Years
      EndedDecember
      31,
                                                                                                                
                                                                                                                
                                                                                                                December
      31,2008
                                                                                                                
                                                                                                                
                                                                                                                2007
                                                                                                                
                                                                                                                
                                                                                                                2008
                                                                                                                
                                                                                                                
                                                                                                                2007(unaudited)
                                                                                                                
                                                                                                                
                                                                                                                (unaudited)
                                                                                                                
                                                                                                                
                                                                                                                (audited)Interest
      and dividend income:Loans
                                                                                                                
                                                                                                                $
                                                                                                                12,498
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                12,795
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                50,175
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                49,812Investments
                                                                                                                
                                                                                                                
                                                                                                                4,045
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                2,351
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                14,109
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                8,200Other
      interest-earning assets
                                                                                                                
                                                                                                                
                                                                                                                81
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                303
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                530
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,238Total
      interest and dividend income
                                                                                                                
                                                                                                                
                                                                                                                16,624
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                15,449
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                64,814
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                59,250Interest
      expense:Deposits
                                                                                                                
                                                                                                                
                                                                                                                4,282
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                5,612
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                17,831
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                21,942Borrowings
                                                                                                                
                                                                                                                
                                                                                                                2,006
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                2,014
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                7,172
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                8,141Total
      interest expense
                                                                                                                
                                                                                                                
                                                                                                                6,288
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                7,626
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                25,003
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                30,083Net
      interest income before provision for loan losses
                                                                                                                
                                                                                                                
                                                                                                                10,336
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                7,823
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                39,811
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                29,167Provision
      for loan losses
                                                                                                                
                                                                                                                
                                                                                                                367
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                385
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,846
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,425Net
      interest income after provision for loan losses
                                                                                                                
                                                                                                                
                                                                                                                9,969
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                7,438
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                37,965
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                27,742Non-interest
      income:Net
      gain (loss) on sales of securities
                                                                                                                
                                                                                                                
                                                                                                                15
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                (52
                                                                                                                )
                                                                                                                
                                                                                                                
                                                                                                                23
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                (95
                                                                                                                )Impairment
      charge on securities
                                                                                                                
                                                                                                                
                                                                                                                (1,377
                                                                                                                )
                                                                                                                
                                                                                                                
                                                                                                                (53
                                                                                                                )
                                                                                                                
                                                                                                                
                                                                                                                (1,377
                                                                                                                )
                                                                                                                
                                                                                                                
                                                                                                                (180
                                                                                                                )Fee
      income on depositors’ accounts
                                                                                                                
                                                                                                                
                                                                                                                1,186
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,192
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                4,638
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                4,432Wealth
      management income
                                                                                                                
                                                                                                                
                                                                                                                200
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                201
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                799
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                692Other
      income
                                                                                                                
                                                                                                                
                                                                                                                370
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                202
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,137
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                886Total
      non-interest income
                                                                                                                
                                                                                                                
                                                                                                                394
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,490
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                5,220
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                5,735Non-interest
      expense:Salaries
      and benefits
                                                                                                                
                                                                                                                
                                                                                                                4,596
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                3,716
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                17,359
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                14,835Occupancy
      expenses
                                                                                                                
                                                                                                                
                                                                                                                604
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                484
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                2,327
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,925Marketing
      expenses
                                                                                                                
                                                                                                                
                                                                                                                339
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                326
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,440
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,374Data
      processing expenses
                                                                                                                
                                                                                                                
                                                                                                                852
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                729
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                3,190
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                2,735Professional
      fees
                                                                                                                
                                                                                                                
                                                                                                                543
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                404
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,679
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,276Other
      expenses
                                                                                                                
                                                                                                                
                                                                                                                1,224
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                1,027
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                4,695
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                3,894Total
      non-interest expense
                                                                                                                
                                                                                                                
                                                                                                                8,158
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                6,686
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                30,690
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                26,039Income
      before income taxes
                                                                                                                
                                                                                                                
                                                                                                                2,205
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                2,242
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                12,495
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                7,438Income
      tax expense
                                                                                                                
                                                                                                                
                                                                                                                1,246
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                968
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                5,197
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                3,061Net
      income
                                                                                                                
                                                                                                                $
                                                                                                                959
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                1,274
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                7,298
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                4,377Earnings
      per share:Basic
                                                                                                                
                                                                                                                $
                                                                                                                0.06
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                0.08
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                0.46
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                0.26Diluted
                                                                                                                
                                                                                                                $
                                                                                                                0.06
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                0.08
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                0.45
                                                                                                                
                                                                                                                
                                                                                                                $
                                                                                                                0.26Weighted
      average shares outstanding:Basic
                                                                                                                
                                                                                                                
                                                                                                                15,921
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                16,732
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                16,044
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                16,853Diluted
                                                                                                                
                                                                                                                
                                                                                                                16,032
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                16,762
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                16,127
                                                                                                                
                                                                                                                
                                                                                                                
                                                                                                                16,906











UNITED
      FINANCIAL BANCORP, INC. AND SUBSIDIARYSELECTED
      DATA AND RATIOS (unaudited)(Dollars
      in thousands, except per share amounts)At
      or For The Quarters EndedDec.
      31
                                                                                                                              
                                                                                                                              
                                                                                                                              Sep.
      30
                                                                                                                              
                                                                                                                              
                                                                                                                              Jun.
      30
                                                                                                                              
                                                                                                                              
                                                                                                                              Mar.
      31
                                                                                                                              
                                                                                                                              
                                                                                                                              Dec.
      312008
                                                                                                                              
                                                                                                                              
                                                                                                                              2008
                                                                                                                              
                                                                                                                              
                                                                                                                              2008
                                                                                                                              
                                                                                                                              
                                                                                                                              2008
                                                                                                                              
                                                                                                                              
                                                                                                                              2007Operating
      Results:Net
      interest income
                                                                                                                              
                                                                                                                              $
                                                                                                                              10,336
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              10,536
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              9,908
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              9,031
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              7,823Loan
      loss provision
                                                                                                                              
                                                                                                                              
                                                                                                                              367
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              644
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              651
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              184
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              385Non-interest
      income
                                                                                                                              
                                                                                                                              
                                                                                                                              394
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,733
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,574
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,519
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,490Non-interest
      expenses
                                                                                                                              
                                                                                                                              
                                                                                                                              8,158
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              7,806
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              7,550
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              7,176
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              6,686Net
      income
                                                                                                                              
                                                                                                                              
                                                                                                                              959
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              2,364
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              2,009
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,966
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,274Performance
      Ratios (annualized):Return
      on average assets
                                                                                                                              
                                                                                                                              
                                                                                                                              0.31
                                                                                                                              %
      (1)
                                                                                                                              
                                                                                                                              
                                                                                                                              0.77
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.68
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.72
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.48
                                                                                                                              %Return
      on average equity
                                                                                                                              
                                                                                                                              
                                                                                                                              1.71
                                                                                                                              %
      (1)
                                                                                                                              
                                                                                                                              
                                                                                                                              4.22
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.52
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.46
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.02
                                                                                                                              %Net
      interest margin
                                                                                                                              
                                                                                                                              
                                                                                                                              3.46
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.56
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.46
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.40
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.02
                                                                                                                              %Non-interest
      income to average total assets
                                                                                                                              
                                                                                                                              
                                                                                                                              0.13
                                                                                                                              %
      (2)
                                                                                                                              
                                                                                                                              
                                                                                                                              0.57
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.53
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.55
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.56
                                                                                                                              %Non-interest
      expense to average total assets
                                                                                                                              
                                                                                                                              
                                                                                                                              2.63
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.55
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.55
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.62
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.50
                                                                                                                              %Efficiency
      ratio (3)
                                                                                                                              
                                                                                                                              
                                                                                                                              67.47
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              63.62
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              65.76
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              68.07
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              70.99
                                                                                                                              %Per
      Share Data:Diluted
      earnings per share
                                                                                                                              
                                                                                                                              $
                                                                                                                              0.06
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              0.15
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              0.12
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              0.12
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              0.08Book
      value per share
                                                                                                                              
                                                                                                                              $
                                                                                                                              13.01
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              12.69
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              12.76
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              12.86
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              12.73Market
      price at period end
                                                                                                                              
                                                                                                                              $
                                                                                                                              15.14
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              14.85
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              11.17
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              11.08
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              11.10Risk
      ProfileEquity
      as a percentage of assets
                                                                                                                              
                                                                                                                              
                                                                                                                              18.03
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              18.19
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              18.66
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              19.81
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              20.95
                                                                                                                              %Net
      charge-offs to average loans outstanding
                                                                                                                              
                                                                                                                              
                                                                                                                              0.23
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.19
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.06
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.12
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.13
                                                                                                                              %Non-performing
      assets as a percent of total assets
                                                                                                                              
                                                                                                                              
                                                                                                                              0.46
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.29
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.39
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.32
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.25
                                                                                                                              %Non-performing
      loans as a percent of total loans, gross
                                                                                                                              
                                                                                                                              
                                                                                                                              0.55
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.38
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.48
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.32
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.22
                                                                                                                              %Allowance
      for loan losses as a percent of total loans, gross
                                                                                                                              
                                                                                                                              
                                                                                                                              0.95
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.97
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.95
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.93
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.94
                                                                                                                              %Allowance
      for loan losses as a percent of non-performing loans
                                                                                                                              
                                                                                                                              
                                                                                                                              171.98
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              254.48
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              197.39
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              285.41
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              432.16
                                                                                                                              %Average
      BalancesLoans
                                                                                                                              
                                                                                                                              $
                                                                                                                              862,814
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              865,053
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              845,304
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              828,302
                                                                                                                              
                                                                                                                              
                                                                                                                              $
                                                                                                                              820,164Securities
                                                                                                                              
                                                                                                                              
                                                                                                                              314,251
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              306,499
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              288,502
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              211,880
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              193,099Total
      interest-earning assets
                                                                                                                              
                                                                                                                              
                                                                                                                              1,193,421
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,185,244
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,146,397
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,061,978
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,036,253Total
      assets
                                                                                                                              
                                                                                                                              
                                                                                                                              1,240,215
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,225,250
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,183,627
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,095,866
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              1,069,060Deposits
                                                                                                                              
                                                                                                                              
                                                                                                                              775,853
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              765,797
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              761,990
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              730,094
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              721,634FHLBB
      advances
                                                                                                                              
                                                                                                                              
                                                                                                                              213,451
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              214,005
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              170,052
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              116,519
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              157,819Capital
                                                                                                                              
                                                                                                                              
                                                                                                                              224,785
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              224,015
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              228,241
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              227,413
                                                                                                                              
                                                                                                                              
                                                                                                                              
                                                                                                                              168,910Average
      Yields/Rates (annualized)Loans
                                                                                                                              
                                                                                                                              
                                                                                                                              5.79
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.93
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.82
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              6.06
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              6.24
                                                                                                                              %Securities
                                                                                                                              
                                                                                                                              
                                                                                                                              5.15
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.07
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.94
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.94
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.87
                                                                                                                              %Total
      interest-earning assets
                                                                                                                              
                                                                                                                              
                                                                                                                              5.57
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.67
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.57
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.80
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              5.96
                                                                                                                              %Savings
      accounts
                                                                                                                              
                                                                                                                              
                                                                                                                              1.30
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              1.29
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              1.14
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              0.98
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              1.05
                                                                                                                              %Money
      market/NOW accounts
                                                                                                                              
                                                                                                                              
                                                                                                                              1.65
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              1.63
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              1.60
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.03
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.71
                                                                                                                              %Certificates
      of deposit
                                                                                                                              
                                                                                                                              
                                                                                                                              3.38
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.41
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.62
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.24
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.66
                                                                                                                              %FHLBB
      advances
                                                                                                                              
                                                                                                                              
                                                                                                                              3.52
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.66
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.77
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.47
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              4.82
                                                                                                                              %Total
      interest-bearing liabilities
                                                                                                                              
                                                                                                                              
                                                                                                                              2.80
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.84
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              2.90
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.37
                                                                                                                              %
                                                                                                                              
                                                                                                                              
                                                                                                                              3.87
                                                                                                                              %




(1)     Exclusive
      of the $1.4 million OTTI charge and related tax effect of $550,000 the
      return on average assets and average equity would havebeen
      0.58% and 3.18%, respectively.(2)     Exclusive
      of the $1.4 million OTTI charge, non-interest income to average total
      assets would have been 0.57%.(3)     Excludes
      gains/losses on sales of securities and loans and impairment charges on
      securities.