Chicopee Bancorp Inc., the holding company for Chicopee Savings Bank, has reported a net loss of $136,000, for the three months ended Dec. 31, 2009, compared to a net loss of $139,000 for the same period in 2008.

In 2009, the company reported a net loss of $1.6 million compared to net income of $22,000 in 2008. The net loss for the year was blamed on a $3.5 million increase in non-interest expense, which includes a $1.4 million charge for other-than-temporarily impaired ("OTTI") securities, a $492,000 increase in Federal Deposit Insurance Corp. insurance premiums, and increase in occupancy, salaries and benefits related to the two new branches established in 2009, according to a statement.

In the fourth quarter, the company reported a $338,000 increase in the provision for loan loss and a $254,000 increase in non-interest expense compared to the corresponding period in 2008. These increases were partially offset by an increase in net interest income of $341,000 and an increase of $242,000 in non-interest income, compared to the corresponding period in 2008, according to a statement.

In the fourth quarter of 2009, the company also recognized an additional tax expense of $200,000 to increase the deferred tax valuation allowance related to the charitable foundation contribution carry-forward.

The company also reported an increase of $582,000 in the provision for loan loss for the year ended Dec. 31, 2009. These increases were partially offset by increases in net interest income of $787,000 and an increase to non-interest income of $714,000, for 2009. In 2009, the company also recognized an additional tax expense of $300,000 to increase the deferred tax valuation related to the charitable foundation contribution.