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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.