Earnings Slide For New Commonwealth Nat'l Parent
United Financial Bancorp Inc.'s second quarter profit took a hit as a result of the holding company's planned acquisition of Worcester's Commonwealth National Bank.
The West-Springfield holding company for United Bank reported net income of $560,000 for the quarter compared to $2 million for the same period a year ago. United said its efforts to acquire Commonwealth included non-deductible expenses of $1.2 million during the quarter. The bank also paid a special Federal Deposit Insurance Corp. assessment of $538,000 during the quarter.
Without those two expenses, net income would've been flat with the second quarter of 2008.
For the six months ended June 30, United reported net income of $2.7 million, a tumble from the $4 million it reported for the first half of 2008.
The bank's total deposits increased 4.2 percent to $815.5 million for the quarter while net interest income decreased by 3.7 percent to $9.5 million. The bank reported total assets of $1.2 billion.
Early this month, United won a brief bidding war with Berkshire Bank of Pittsfield to acquire Commonwealth. The bank will pay about $25 million for Commonwealth in an acquisition expected to close in the fourth quarter.
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