UBMT United Financial

HIGHLIGHTS: Total assets of $411 million; Q1 Net income up 7% in 2006 over Q1 2005; Q1 Net interest income up 9% in 2006 over Q1 2005; Loans and Assets up 17% in Q1 2006 over Q1 2005. GREAT FALLS, Mont., April 27 /PRNewswire-FirstCall/ -- United Financial Corp. ("United") (NASDAQ:UBMT) today reported net income for the quarter ended March 31, 2006 of $931,000 or basic earnings per share of $.30, compared to $868,000 or basic earnings per share of $.28 for the same period in 2005. Fully diluted earnings per share were $.29 and $.28 for 2006 and 2005, respectively. Net income increased 7.3% for the quarter ended March 31, 2006, over the same quarter in 2005. All per share amounts have been restated for the 5 for 4 stock split effective in December 2005. United's assets at March 31, 2006 were $411 million compared to $352 million at March 31, 2005, an increase of 16.8%. Net loans increased to $319 million at March 31, 2006 from $273 million a year ago, a 16.6% increase and deposits increased to $321 million at March 31, 2006 compared to $254 million a year ago, a 26.1% increase. Net interest income rose to $3.5 million for the quarter ended March 31, 2006 compared to $3.2 million for the same period one year ago. United's shareholders' equity was $32.1 million at March 31, 2006, and book value per share was $10.45. The weighted average number of shares outstanding for the first quarter of 2006 was 3,071,763 compared to 3,051,778 for the same period in 2005. CEO Kevin Clark said, "We are very pleased with this quarter's results. The various financial measurements for the Company continue to indicate improvement in virtually all of the key components of the business. As always, we attribute this success to the extensive effort put forth by our employees." United's net interest margin was 3.84% for the first quarter of 2006 compared to 3.99% for the first quarter of 2005. United had no non-performing loans at March 31, 2006 compared to $.5 million at March 31, 2005. United declared a regular quarterly cash dividend of $.23 per share, to shareholders of record on May 17, 2006, payable June 1, 2006. Forward-Looking Statements When used in this press release, the words or phrases 'will likely result in, 'are expected to', 'will continue', 'is anticipated', 'estimate', 'could', or 'project' or similar expressions are intended to identify 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected including general economic conditions, business conditions in the banking industry, general economic conditions in the state of Montana, the regulatory environment, new legislation, vendor quality and efficiency, employee retention factors, rapidly changing technology and evolving banking industry standards, competitive standards, competitive factors including increased competition among financial institutions and fluctuating interest rate environments. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Readers should also carefully review the risk factors described in the company's most recent Annual Report on Form 10-K for the period ending December 31, 2005. United Financial Corp. is a bank holding company based in Great Falls, Montana, and is the parent of Heritage Bank, with fifteen locations in Montana. United Financial Corp. Financial Highlights (Unaudited) (Dollars in thousands, except per share data) Three Months Ended March 31, 2006 2005 Income statement amounts Net interest income $3,473 $3,192 Provision for losses on loans 75 - Noninterest income Investment securities gains - - Gain on the sale of loans 673 626 Other 348 292 Noninterest expense 2,921 2,717 Earnings before income taxes 1,498 1,393 Income taxes 567 525 Net earnings 931 868 Per common share data Net earnings - basic 0.30 0.28 - diluted 0.29 0.28 Cash dividends 0.23 0.22 Book value 10.45 10.04 Balances at end of period Loans receivable and held for sale, gross 330,048 282,504 Allowance for losses on loans 3,824 3,625 Nonperforming assets Nonperforming loans - 466 Foreclosed properties - - Available for sale investment securities 39,513 37,609 Total assets 410,754 351,722 Goodwill 1,422 1,422 Total deposits 320,536 254,214 Total stockholders' equity 32,105 30,692 Other supplemental information Net earnings Return on average assets 0.93% 1.00% Return on average common equity 11.66% 11.39% Allowance for loan losses to total loans 1.16% 1.28% Common shares outstanding (end of period, in thousands) 3,072 3,056 Net interest margin 3.84% 3.99% Shareholders' equity to total assets 7.82% 8.73% Dividend payout ratio 76.67% 78.57% DATASOURCE: United Financial Corp. CONTACT: Kevin P. Clark, CEO of United Financial Corp., +1-406-727-6106

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