United Financial Bancorp in Glastonbury, Conn., reported a second-quarter loss largely tied to the costs of merging with Rockville Financial.
The $5.2 billion-asset company said in a regulatory filing Wednesday that it lost $5.6 million, or 13 cents a share, compared with a profit of $3.3 million a year earlier.
Merger expenses totaled $20.9 million and included payments to former executives, expenses associated with accelerated vesting of stock awards to executives, employees and directors. The company also incurred expenses tied to hiring consultants and advisors to help execute the transaction and complete a fourth-quarter conversion to a single core data processor.
The merger-related costs overshadowed any near-term benefits from the merger. Rockville was the legal acquirer in the deal, which closed April 30, though the company decided to operate as United.
The company more than doubled its net interest income, to $36.9 million. Noninterest income rose roughly 54%, to $6.3 million. The company's total loans more than doubled, and the net interest margin expanded by 40 basis points, to 3.88%.
Noninterest expenses more than doubled, to $46.2 million. The company's loan-loss provision of $2.1 million was much higher than the $403,000 provision it recorded a year earlier.