United Financial Bancorp in Glastonbury, Conn., saw its profits surge in the first full quarter after merging with Rockville Financial.
Net income for the $5.3 billion-asset company more than doubled from a year earlier, to $10 million. Earnings per share of 19 cents were 4 cents below the average estimate of analysts polled by Bloomberg.
Net interest income rose 150%, to $42.2 million, reflecting 10% annualized commercial loan growth and a record $116 million of residential mortgage loan production, United Financial Chief Executive William Crawford said in a press release late Wednesday.
The net interest margin widened by 24 basis points, to 3.56%. Net chargeoffs were $1.7 million.
Noninterest income fell 20%, to $4.1 million, driven by a $2.2 million loss tied to limited partnership investments. The decline also included a $1.1 million reduction in loan sales.
Noninterest expenses rose 137%, to $35 million, because of higher salaries and greater occupancy costs due to the merger. Overall merger and acquisition expenses totaled $4 million, including severance payments to former employees and payments to consultants and advisers who handled the transaction.