Springfield’s Hampden Bancorp Inc., the holding company for Hampden Bank, has reported $536,000 in net income for the three months ended Sept. 30, compared to $543,000 for the same period in 2010.

The company had an increase in net interest income of $155,000 for the three months ended Sept. 30, compared to the same time last year. There was a decrease in interest and dividend income, including fees, of $430,000, or 6.4 percent, for the three months ended Sept. 30.

The company’s total assets decreased $6.9 million, or 1.2 percent, from $573.3 million at June 30, 2011 to $566.4 million at Sept. 30, 2011. Net loans, including loans held for sale, decreased $2 million, or 0.5 percent, to $396.0 million at Sept. 30, 2011, and securities decreased $2.8 million, or 2.5 percent, to $109.1 million as of Sept. 30, 2011 compared to June 30, 2011.

Deposits increased $1.1 million, or 0.3 percent, to $418.4 million at Sept. 30, 2011 from $417.3 million at June 30, 2011.

"As we closed out the first quarter of our fiscal year, we are somewhat encouraged by increased business banking activity, a slightly better local economy and stable performance of the loan portfolio," said Thomas R. Burton, president and CEO. "We continue to work down our cost of funds as certificates of deposit mature and we move more toward traditional core deposit accounts. Non-performing loans have stabilized and we appear to be well reserved at this time. During the quarter, we purchased 103,539 shares of our stock as part of our fourth stock buy-back program at a significant discount to book value. As of Sept. 30, we have 235,631 shares remaining to purchase as part of this program."