Danvers Bancorp Inc., the holding company for Danversbank, has reported net income of $4.9 million for the quarter ended June 30, compared to net income of $135,000 for the same period last year.

Net income for the comparable six-month periods in 2010 and 2009 was $9.2 million and $1.5 million, respectively. The combination of the acquisition of Beverly National Corp., organic growth, particularly within the loan portfolio, and the overall improvement of the company’s net interest margin resulted in a significant increase in net interest income and a lesser increase in non-interest income, according to a statement. These increases were partially offset by higher provision for loan losses, increased salaries and benefits expense and other operating expenses.

Compared to the quarter ended March 31, net income increased by $692,000, or 16.3 percent. Increases in non-interest income, primarily securities gains and deposit account service charges, and net interest income were offset by increases in the provision for loan losses and income taxes, according to a statement.

"Our core operations remained stable during the second quarter which was also marked by continued robust growth in deposits," said Kevin T. Bottomley, president and CEO.

The company expects to continue with the expansion of its retail branch network and in addition to its previously announced plans to open branch locations in Needham and Lexington, it plans to open a second Boston location in the Financial District.

"We are pleased that the expansion of our branch network will now include a second Boston location at 50 Milk St., which we hope to open during the fourth quarter of 2010," said Bottomley.