Union First Market Bankshares (UBSH) in Richmond, Va., reported in a dip in quarterly profit because of costs tied to its purchase of StellarOne in Charlottesville, Va.
The $7.3 billion-asset company's earnings fell 13% from a year earlier, to $7.8 million. Earnings per share of 17 cents were 12 cents higher than the average estimate of analysts polled by Bloomberg.
Net interest income rose 69%, to $63.8 million, largely because of the StellarOne deal, which added $2.3 billion in loans and $2.5 billion in deposits. Union First paid $445 million for StellarOne.
Noninterest income jumped 44%, to $14.2 million. StellarOne provided a significant boost to income from customer transactions. Noninterest expenses nearly doubled, to $67.8 million, largely because of $13.2 million in acquisition-related costs.
Credit quality continued to improve. Union First recorded no loan-loss provision, compared to a $2 million provision a year earlier. It recovered $772,000 from previously charged-off loans, compared to $2.6 million in recoveries a year earlier.