Springfield’s Hampden Bancorp Inc., the holding company for Hampden Bank, has reported $543,000 in net income for the three months ended Sept. 30, compared to a net loss of $162,000 for the same period in 2009.

The increase in net income was due to a decrease in the provision for loan losses of $542,000 for the three months ended Sept. 30, compared to the same period in 2009. Also, for the three month period ended Sept. 30, net interest income increased by $244,000 compared to the three month period ended Sept. 30, 2009.

"Although technically the recession has ended, we remain cautious as we see limited improvement in the local economy. Non performing loans increased in this quarter, principally due to two commercial credits," said Thomas R. Burton, president and CEO. "Although nonperforming residential loans have not been the major portion of non performing assets, we continue to work with homeowners and have modified loans wherever possible for those borrowers falling behind in their payments."

The board of directors declared a quarterly cash dividend of 3-cents per common share, payable on Nov. 29, to shareholders of record at the close of business on Nov. 12.