BSB Bancorp grew its balance sheet in the first quarter this year, boosting net income approximately 63.5 percent year-over-year to $680,000 for the three-month period ended March 31.
"The quarter was marked by significant loan and deposit growth, which fueled the bottom line improvement. Core expense growth has slowed and credit quality remains good," President and CEO Robert M. Mahoney said in a statement.
Net interest and dividend income increased 26.9 percent, or $1.5 million, to $7.3 million at March 31. The holding company for Belmont Savings Bank increased its provision for loan losses 18.6 percent to $388,000, compared with $327,000 in the year-ago period.
A $289,000 decrease in gains on sales of loans pushed noninterest income down to $722,000 for the quarter, compared with $1 million a year ago.
Noninterest expenses increased 15.2 percent, or $880,000, to $6.7 million during the first quarter, largely driven by a $593,000 increase in salaries and employee benefits to staff two additional branches. BSB Bancorp also recorded a $92,000 quarter-over-quarter increase in its data processing expenses, driven by increases in core, online banking and loan servicing costs related to increased loan and deposit volume.
Total assets increased 10.8 percent, or $114.4 million, to $1.2 billion from the end of 2013. Net loans grew $88.6 million, or 10.6 percent, over that time period. Commercial real estate, residential mortgages, home equity loans and indirect auto loans increased $43.9 million, $23.4 million, $3.3 million and $16.0 million, respectively. The asset growth was funded by deposits and borrowings from the Federal Home Loan Bank.
Deposits increased $63 million, or 8.2 percent, to $827.7 million from the end of last year.
"Deposit growth was very robust to start the year. On the business side, the ongoing momentum of our municipal banking program was a key driver. In addition, the continued marketing of our Platinum Blue family of deposit products and the impact of our InStore branches led to strong performance in consumer deposit growth," Executive Vice President and COO Hal R. Tovin said of the increase.
The allowance for loan losses totaled $8.3 million, representing 0.9 percent of total loans, compared with $8 million, representing 0.95 percent of total loans at Dec. 31. For the quarter ended March 31, the company recorded $4,000 in net charge offs compared with $11,000 in net recoveries in the year-ago quarter. Nonperforming assets totaled $2.2 million, or 0.19 percent of total assets on March 31, compared with $4.1 million, or 0.39 percent of total assets at the year’s end.
