Wellesley Bancorp recorded a 33 percent drop in net income in the first quarter this year, which fell to $394,000 from $595,000 in the year-ago period.

The holding company for Wellesley Bank attributed the $201,000 decline in net income to additional personnel, occupancy and data processing costs associated with its newest location in Boston. A 14.4 percent increase in net income, which totaled $3.8 million in the first quarter, partially offset that decline.

The company increased its provision for loan losses $80,000 to $180,000 to compensate for increasing loan balances and certain problem lending relationships that have been slow to resolve.

Year-over-year, noninterest income increased 21 percent, or $44,000, to $253,000, boosted by a $24,000 gain in wealth management fees and a $16,000 increase in net securities gains.

Noninterest expenses also increased 33 percent, or $767,000, to $3.2 million, largely because of increases in staff to support the company’s new Boston office, wealth management activities, retail operations and other support areas. Occupancy and equipment expenses increased $160,000 to $500,000, compared with $340,000 in the year-ago period.

Total assets increased $17.7 million from Dec. 31, 2013. During that period, net loans increased $13.9 million, or about 3.6 percent, to $397.6 million. Residential mortgage loans increased $11.6 million to $193.3 million, while construction loans fell $309,000 to $79.8 million. Deposits increased 6.8 percent, or $24.3 million, to $381.8 million at the end of March.