BSB Bancorp, the holding company for Belmont Savings Bank, posted $1 million in net income for the second quarter this year, compared with $361,000 in the year-ago period.
"The bank is benefiting from positive operating leverage as revenue growth outstrips expense growth. Credit quality remains good,” President and CEO Robert M. Mahoney said in a statement.
Net interest and dividend income before provision for loan losses in the quarter totaled $7.6 million, compared with $5.9 million for the same period last year. Year-over-year, the company increased its provision for loan losses from $100,000 in the second quarter last year to $307,000 this year. After the provision for loan losses, net interest and dividend income increased $1.5 million or 26 percent over the year-ago period.
Noninterest income for the quarter declined to $857,000 from $908,000 last year, as the net gain on sales of loans declined $286,000. That decrease was partially offset by a $164,000 increase in other income and a $75,000 increase in loan servicing fee income.
Noninterest expenses increased $361,000, or 5.9 percent, to $6.5 million, largely due to an increase in salaries and employees benefits.
At June 30, total assets stood at $1.2 billion, an increase of $167.2 million or 15.9 percent from $1.1 billion at year-end 2013. The company experienced net loan growth of $148.3 million, or 17.7 percent, from Dec. 31. Commercial real estate loans, residential mortgage loans, home equity loans, and indirect auto loans increased by $38.7 million, $61.2 million, $18.4 million and $16.4 million, respectively. The asset growth was funded by customer deposits and borrowings from the Federal Home Loan Bank.
Deposits totaled $891.9 million, an increase of $127.1 million or 16.6 percent from $764.8 million at year-end 2013.
“Q2 was another good quarter for deposit growth,” Executive Vice President and Chief Operating Officer Hal R. Tovin said in a statement. “The maturing of our three InStore branches and the ongoing growth of our municipal banking program drove both checking and savings deposits. In addition, new and expanding small business banking and commercial real estate customer relationships continue to be important contributors to this strong performance."
The company’s allowance for loan losses totaled $8.6 million at June 30, approximately 0.87 percent of total loans, compared with $8 million and 0.95 percent at year-end 2013.
For the three months ended June 30, the company recorded net charge offs of $35,000, compared with $22,000 for the comparable period in 2013. Total non-performing assets were $2.3 million, or 0.18 percent of total assets, as of June 30, compared with $4.1 million, or 0.39 percent of total assets, at year-end 2013.
