BSB Bancorp more than doubled its net income in the third quarter, posting record earnings since its IPO in 2011.
The holding company for Belmont Savings Bank posted $1.2 million in net income for the quarter ended Sept. 30, compared with $538,000 in the same period last year.
Net interest and dividend income, before provision for loan losses, totaled $8.1 million. After setting aside $292,000 for loan losses – a 33 percent decrease from the year-ago number – the company posted $1.5 million in net interest and dividend income, representing a 24.2 percent increase over the third quarter last year.
On a year-over-year basis, noninterest income declined $98,000, or 11 percent, to $792,000 in the third quarter, as the interest rate environment pushed down net gains on sales of loans by $64,000 this year. Other income also declined $66,000, but that was offset partially by a $38,000 increase in income from bank-owned life insurance.
Belmont Savings increased net loans $254.6 million, or 30.3 percent, from year-end 2013. Residential one-to-four family and commercial real estate loans showed the most growth in the company’s loan portfolio, increasing $119.9 million and $62.9 million, respectively, over that period. Home equity lines of credit and indirect auto loans also increased by $31.5 million and $22.7 million, respectively.
Allowance for loan losses totaled $8.3 million as of Sept. 30 and represented 0.76 percent of total loans, compared with $8 million and 0.95 percent, respectively, on Dec. 31, 2013. For the quarter ended Sept. 30, the company charged off $587,000 in loans, compared with $31,000 in recoveries for the year-ago period. Of the net charge-offs in this quarter, $573,000 was related to loans made to one borrower in 2005. Nonperforming assets totaled $1.7 million, or 0.12 percent of total assets, in the third quarter, compared with $4.1 million, or 0.39 percent of total assets, at year-end 2013.
Deposits increased $167.8 million, or 21.9 percent, to $932.6 million from year-end 2013.
The bank’s assets have grown to $1.3 billion at the end of this most recent quarter from $688 million when Belmont went public and has increased its number of employees from 80 to 135 also during that time.
