Hartford community lender United Financial Bancorp Inc., preparing to merge with Bridgeport lender People’s United Financial, posted a second-quarter loss tied to its stake in a solar company.
For three months ended June 30, the parent of United Bank said it lost $3.2 million, or 6 cents a diluted share, vs. $15.6 million, or 31 cents a share, netted the same quarter in 2018.
United blamed the loss on a $6.3 million after-tax impairment charge to boost its tax reserve related to its investments in bankrupt D.C. Solar LLC. The Washington D.C. company that leveraged federal and local incentives to convert East Coast dwellings to solar power in the spring filed for Chapter 11 reorganization, later converted to a Chapter 7 liquidation.
United and People’s United announced Monday their tentative $759 million merger, expected to close in the fourth quarter, with People’s the survivor institution.
United Financial ended the quarter with assets of $7.3 billion vs. $7.2 billion a year earlier.
