Chicopee Bancorp Inc., the holding company for Chicopee Savings Bank, has reported a net loss of $50,000 for the three months ended March 31, compared to a $114,000 profit for the same period last year.

The decrease in net income was primarily due to an increase in the provision for loan losses of $179,000 and an increase in non-interest expense of $298,000, partially offset by an increase of $391,000, or 10.4 percent, in net interest income for the three months ended March 31 compared to the same period last year

"Although we reported a net loss for the quarter, we are encouraged by the stability in asset quality and the prospects for improved performance for the remainder of 2010," the company said in a statement. "The banking industry continues to feel the pressure of the economy and is faced with increased costs associated with FDIC insurance expense and increased loan loss provisions. We believe that we are on the right track with positive trends in performance and problem assets. Our core earnings remain positive driven largely by our lower cost of funds as we continue to position ourselves for a return to stronger performance as the economy improves."