Costs related to its Sept. 6 acquisition of Newport Bancorp. drove Savings Institute Bank and Trust Co. parent SI Financial’s third-quarter loss higher, it reported.
SI reported a net loss of $1.7 million, compared to a loss of $700,000 in the third quarter of 2012. Excluding $1.3 million in acquisition costs, the lender would have reported a net loss of $787,000.
The loss comes despite a 9 percent increase in net interest income, due to an increase in the bank’s outstanding loan balance and a lower cost of funds. Noninterest income was flat.
SI’s provision for loan losses was also cut nearly in half to $891,000 because of a decline in nonperforming loans.
