| United Financial Bancorp’s net income dipped in the fourth quarter, as the company completed its acquisition of a specialty marine financing portfolio and two additional consumer portfolios.
The Glastonbury, Connecticut-based holding company for United Bank posted net income of $9.9 million for the quarter ended Dec. 31, 2015, down from $13.4 million in the prior quarter. Net income for the entire year totaled $49.6 million, up from $6.8 million in the prior year.
Late in the fourth quarter, United completed the purchase of a $171.1 million specialty marine finance portfolio and a 13-person team supporting the origination and underwriting of floor plan loans on select premium global marine manufacturers and resulting retail end loans. In the name of diversifying its credit exposure and shifting the composition of its loan portfolio, United also purchased two additional consumer portfolios totaling $158.7 million.
Year-over-year total loans increased to $4.6 billion from $3.9 billion in the fourth quarter of 2014. Commercial loans increased $87 million, or 13 percent annualized, and commercial business loans increased $26 million, or 18 percent annualized.
Residential mortgage volume dipped from the prior quarter to $146 million, though residential mortgage originations increased 87 percent for the entire year, totaling $706 million compared with $378 million in 2014.
Deposits increased quarter-over-quarter by 4 percent, or $174 million, to $4.4 billion.
Non-performing assets increased $1.5 million to $38.6 million at Dec. 31 from $37.1 million in the prior quarter. The ratio of non-performing assets to total assets stayed flat at 0.62 percent. The allowance for loan losses as a percentage of total covered loans outstanding increased to 1.07 percent at Dec. 31, from 1.04 percent in the prior quarter.
The company’s board of directors declared a cash dividend of 12 cents per share to shareholders of record at the close of business on Feb. 5, and payable on Feb. 18. The company has paid dividends for 39 consecutive quarters.
In a conference call, United’s leadership touted the lift out of a team of a wealth management professionals from First Niagara and anticipated benefits from that move in the second half of the year.
