Net income for BSB Bancorp Inc., the holding company for Belmont Savings Bank, tumbled $1.05 million to $447,000 in the first quarter of 2012, compared to a net income of $1.5 million in the same period last year.
Net interest and dividend income before provision for loan losses for the first quarter increased to $5.3 million from $3.6 million compared to last year. As the provision for loan losses for the first quarter of 2012 increase nominally from the same period in 2011, BSB’s net interest and dividend income after provision for loan losses increased by $1.7 million.
"The first quarter of 2012 saw a continuation of our strong loan and deposit growth. Commercial real estate loan demand was particularly good and we were very pleased to achieve solid checking account growth," said Robert Mahoney, president and CEO. "We also had successful loan sales during the quarter which augmented non-interest income. Finally, we are opening a new office in Waltham in May. This is our first supermarket branch."
Non-interest income for the quarter ended March 31 totaled $964,000 as compared to $3.1 million for the first quarter of 2011. The significant decrease in the first quarter of 2012 was the result of a $2.8 million net realized gain on investment securities in the first quarter of 2011, which resulted from the sale of BSB’s entire portfolio of marketable equity securities. This decrease was partially offset by a $508,000 increase in gains on loan sales in the first quarter of 2012 from the first quarter of 2011. The loan sales for both periods were made up of residential mortgages and indirect auto loans.
Since December 31, the company’s assets have increased by $49.7 million, or 7.4 percent, to $718.7 million. The company experienced net loan growth, including loans held for sale, of $29.5 million, from December 31, which was primarily the result of significant increases to the commercial real estate, home equity and commercial loan portfolios, which have increased by $28 million, $4.2 million and $2.3 million, respectively.
Non-interest expense for the quarter ended March 31, 2012 amounted to $5.1 million as compared to $3.7 million for the first quarter of 2011. This increase was primarily the result of new staff added to execute the company’s commercial and consumer business strategies, increased infrastructure costs related to increased business volume and increased costs related to becoming a public company, according to a press release.
