Costs associated with its acquisition of Bank of Georgetown contributed to a reduction in second-quarter profit at United Bankshares in Charleston, W.Va.
Net income at the $14 billion-asset company fell 8.7% to $31.8 million from a year ago.
Noninterest expense rose 12% to $65 million on higher employee benefits and compensation, occupancy costs and foreclosure costs. Expenses tied to its June acquisition of Bank of Georgetown totaled $4.5 million in the quarter. The total included $1.6 million to terminate leases for closed offices, $365,000 of severance payments and $1.9 million of other merger-related expenses that the company did not detail. United closed its purchase of the $1.3 billion-asset Washington-based Bank of Georgetown in June.
Foreclosure expenses increased because of reductions in the fair value of properties classified as other real estate owned.
The net interest income before the loan-loss provision rose 7% to $103 million. United increased its provision by 34%, to $7.7, due to the loan growth resulting from the acquisition.
Noninterest income fell 8%, to $18, million on lower deposit service fees and income from life insurance.