Profits at West Springfield’s United Financial Bancorp Inc., the holding company for United Bank, fell to $1.8 million in the first quarter from $2.1 million for the same period in 2009.

Acquisition-related costs related to its purchase of Commonwealth National Bank totaled  $979,000, otherwise its net income would have been $2.6 million for the first quarter, according to a statement.

The improved quarterly operating results (excluding acquisition related expenses) were primarily due to growth in net interest income, driven by net interest margin expansion and an increase in average interest earning assets, as well as an increase in fee income. These items were partially offset by a higher provision for loan losses, a $145,000 non-cash, non-deductible charge for other-than-temporary-impairment of an investment security and an increase in non-interest expense. The improvement in earnings per share (excluding acquisition related costs) was influenced by growth in earnings (excluding acquisition related costs) and the positive impact of stock repurchases.

"We are extremely pleased to report that the integration of United Bank and Commonwealth National Bank was completed in the first quarter with the successful conversion of all systems. Beginning in March, we were able to devote our resources to fully deploying our brand of banking in the Worcester area," said Richard B. Collins, president and chief executive officer. "Our improved quarterly operating results reflect a positive contribution from our Worcester franchise as well as our success in attracting and retaining loan and core deposit relationships, effectively managing credit and interest rate risks and maintaining a healthy balance sheet, significant liquidity and a substantial capital base."

The company also announced a quarterly cash dividend of 7-cents per share, payable on May 27 to shareholders of record as of May 6.