| BSB Bancorp posted a 54 percent year-over-year increase in net income during the second quarter.
The parent company for Belmont Savings Bank booked net income totaling $1.6 million for the quarter ended June 30, compared with $1 million in the same period last year. For the six months ended June 30, the company posted $3 million in net income, representing a 73 percent increase over $1.7 million a year ago.
“We are pleased to announce a continuation of our organic growth and improving profitability,” President and CEO Robert M. Mahoney said in a statement.
Net interest and dividend income before provision for loan losses in the second quarter totaled $9 million, an 18.6 percent increase over $7.6 million last year. The company set aside $365,000 as provision for loan losses, an 18.9 percent increase over the $307,000 it recorded in this category last year.
Noninterest income increased 10.4 percent year over year to $948,000, driven mainly by an increase in net gains on sales of loans and income from bank-owned life insurance, which rose by $130,000 and $101,000, respectively. That was partially offset by a $60,000 decline in loan servicing fee income.
Noninterest expenses inched up 7.4 percent to $7 million, mainly due to increases in salaries and employee benefits costs. The bank’s efficiency ratio improved to 70.1 percent, from 76.8 percent in the year-ago quarter.
Total assets increased by $126.5 million, or 8.9 percent, from year-end 2014 to $1.55 billion at June 30. Over that time period, net loans grew $112.9 million, or 9.6 percent. Residential one-to-four family loans, commercial real estate loans, construction loans and home equity lines of credit increased by $71.6 million, $28.8 million, $12.3 million and $11.2 million, respectively. That was partially offset by decreases in commercial loans and indirect auto loans of $8 million and $2.4 million, respectively. In a statement, the company said it expected the balance of its indirect auto loan portfolio to further decline as it temporarily suspends new originations, citing current market conditions as the reason for doing so.
At June 30, the company’s deposits totaled $1.15 billion, representing an increase of $165.2 million, or 16.8 percent, from year-end 2014. The bank attributed deposit growth to an expansion of its municipal banking program, as well as its strategy targeting the legal profession.
Allowance for loan losses totaled $9.5 million and represented 0.74 percent of total loans at June 30, compared with $8.9 million and 0.75 percent of total loans at year-end 2014. For the six month period ended on June 30, the company recorded $48,000 in net charge-offs, compared with $40,000 in the year-ago period. Nonperforming assets totaled $2.8 million, representing 1.8 percent of total assets, compared with $2.8 million, or 0.20 percent of total assets at year-end 2014.
