Springfield’s Hampden Bancorp, Inc., the holding company for Hampden Bank, reported a net loss of $143,000 for the three months ended March 31, compared to a net loss of $57,000 for the same period in 2009.

The decrease in net income was primarily due to a $1.1 increase in the provision for loan losses for the three months ended March 31 compared to the same period last year. The increase in the provision for loan losses is due to increases in loan delinquencies, increases in non-accrual loans, increases in impaired loans, growth in the loan portfolio, and general economic conditions.

For the three-month period ended March 31, net interest income increased by $521,000 compared to the same period last year.

The company had a net loss of $975,000 for the nine months ended March 31, compared to net income of $180,000 for the same period in 2009. The decrease in net income was primarily due to an increase in the provision for loan losses of $2.9 million for the nine months ended March 31, compared to the same period last year.

"The company continuously evaluates and reviews all of its watch list credits during the quarter to ensure that it has adequately anticipated losses and restructured or resolved its troubled credits. As a result of this review and due to the continued impact of the recession, we added $1.4 million to the allowance for loan losses in addition to the $2.6 million provided in previous quarters of fiscal 2010," said Thomas R. Burton, president and CEO. "The current quarterly provision will give us an allowance for loan losses to total loans of 1.46 percent and an allowance for loan losses to non-performing loans of 91 percent. Although it appears the national recession is coming to an end, we continue to be concerned about the economic value of commercial real estate in New England as well as the overall economy in general."