Hampden Bancorp, Inc., the holding company for Hampden Bank, had a $624,000, or 246.6 percent, year over year increase in net income, with income rising to $877,000 for the first quarter of 2012, as compared to $253,000 for the same period in 2011.

Decreases in delinquent loans prompted the bank to lower its provision for loan losses by $575,000 for first quarter of 2012 compared to the same period in 2011. Hampden also reported its loan balances were up slightly, resulting in an increase in interest and dividend income, of $29,000, or 0.5 percent, for the first quarter 2012 compared to last year, while interest expenses were down .$406,000 or 22.9 percent, for the same period.

 The bank also said that it has decided to sell the majority of its current originations of long-term fixed rate mortgages due to interest rate risk.

Thomas R. Burton, CEO and vice chairman of Hampden, said, "Economic conditions in our local economy continue to improve as evidenced by a decline in delinquent and impaired loans as well as a nominal increase in loan growth. We have reduced the provision for loan losses while continuing to maintain strong ratios related to our reserve coverage. Overall, we are pleased with the results but recognize that asset growth is necessary for continued financial improvement."