Danvers Bancorp Inc., the holding company for Danversbank and Beverly National Bank, has reported net income of $2.6 million for the quarter ended Dec. 31, 2009 compared to a net loss of $37,000 for the same quarter in 2008.

A significant increase in net-interest income and a lesser increase in non-interest income offset a higher provision for loan losses, increased salaries and benefits expense and expenses associated with the Beverly National Corp. merger. Net interest income improved by $6.5 million or 51.5 percent, between the comparable periods, according to a statement.

In 2009, the company recorded net income of $5.3 million compared to a net loss of $2.7 million for the same period in 2008.

An $11.7 million increase in net interest income offset increases in provision for loan loss and non-interest expense between the two periods. The loss in 2008 was largely impacted by two non-recurring items: a $6.9 million pretax charge related to the establishment of the Danversbank charitable foundation and a $3.7 million pretax charge related to the acceleration of the company’s phantom stock plan. Both charges directly relate to the company’s conversion in January 2008 from a mutual form of organization to a public stock holding company.

"2009 marked the continued expansion of our retail franchise, evidenced by the opening of two new branches in Cambridge and Waltham and the acquisition of Beverly National Corp., which added eight branches to our network," said Kevin T. Bottomley, president and CEO. "We were also pleased by robust non-merger related growth in both loans and deposits and the significant improvement in our net interest margin over the last two quarters. This performance, however, should be viewed in the context of an increasingly competitive banking marketplace in Eastern Massachusetts. In recent months, we have witnessed both renewed activity by the national banks with a historic presence in the area and greater competition from regional banks headquartered in neighboring states."