Beverly National Corp., parent company of Beverly National Bank, has reported net income for the first quarter of $925,000, a 1.7 percent increase from net income of $910,000 in the same period last year.

The company said the "increase in earnings for the period presented is the net result of an increase in net interest and dividend income after the provision for loan losses, a reduction in noninterest income and a higher level of noninterest and income tax expense."

Net interest and dividend income before the provision for loan losses increased $535,000, or 13.5 percent, for the quarter ended March 31 from the same period last year.

The improvement is primarily a result of the reduction in cost of funds, spurred by lower interest rates, through the replacement of maturing certificates of deposit and low-interest advances from the Federal Home Loan Bank of Boston, the company said.

 "While we find ourselves in the midst of an incredibly challenging operating environment for a financial institution, we are proud to be reporting strong core operating results for the quarter ended March 31, 2009," said Don Fournier, president and chief executive officer. "During the calendar quarter, we faced the challenges brought on by increasing unemployment, a recessionary economy, rising levels of loan delinquencies, a growing number of foreclosures and additional asset write-offs by many banks across the country."