West Springfield-based United Financial Bancorp, the holding company for United Bank, reported net income of $959,000 for the fourth quarter of 2008 compared to net income $1.3 million for the corresponding period in 2007, a 15.5 percent drop.
For the year, however, the bank reported net income of $7.3 million, compared to $4.4 million in 2007, a 66 percent increase.
The decline in net income in the fourth quarter was due to the recognition of a pre-tax, non-cash charge of $1.4 million for other-than-temporary impairment of all of the company’s trust preferred securities and one municipal security, the bank said. Excluding this charge and the related tax effect of $550,000, net income would have been $1.8 million or $512,000 more than the corresponding quarter in the prior year.
"During the fourth quarter, the turmoil in the financial markets resulted in a further decline in the value of certain securities in our investment portfolio and the recognition of an impairment charge," said Richard B. Collins, president and chief executive officer. "While we are disappointed with the decline in fourth quarter earnings due to securities write-downs, we are pleased with our overall performance which reflects improvement in net interest margin and growth in loans and deposits."
