| BSB Bancorp posted an 84 percent year-over-year increase in first-quarter earnings as it ramped up residential and commercial real estate lending, capping off 11 consecutive quarters of earnings increases.
“Strong asset growth coupled with disciplined expense management is a good formula for earnings,” President and CEO Robert M. Mahoney said in a statement. “We have had 11 consecutive quarters of earnings growth and we are working hard to continue that trend. Credit quality remains good.”
The holding company for Belmont Savings Bank posted net income for the period ended March 31 totaling $2.54 million, compared with $1.37 million a year ago. Net interest and dividend income, before provision for loan losses, increased 28.8 percent year-over-year to $11.28 million.
Noninterest income declined 12.8 percent year-over-year to $660,000, driven mainly by a decline in other income and a decline in loan servicing fee income related to the bank’s suspension of indirect auto loan originations.
BSB also increased its provision for loan losses by about 77 percent year-over-year to $599,000, largely to keep pace with its loan growth.
Total assets increased 5.7 percent, or $103.3 million, to $1.92 billion at March 31. Net loans increased 6.5 percent, or $99.42 million, from year-end 2015. Residential one- to four-family real estate loans, commercial real estate loans and home equity lines of credit increased by $85.62 million, $40.87 million and $5.34 million, respectively. Construction loans, commercial loans and indirect auto loans declined by $11.12 million, $9.4 million and $11.79 million, respectively. The bank had suspended new originations of indirect auto loans citing current market conditions. Belmont’s asset growth was funded mainly by growth in deposits.
Deposits increased 6.8 percent to $1.36 billion from year-end 2015.
The allowance for loan losses totaled $11.83 million and represented about 0.72 percent of total loans, compared with $11.24 million and 0.73 percent at year-end 2015. BSB Bancorp recorded $8,000 in net charge-offs in the first quarter, compared with $16,000 in the year-ago period. Nonperforming assets totaled $1.2 million, or 0.06 percent of total assets, compared with $3.64 million, or 0.20 percent, on Dec. 31.
