Expenses associated with a new branch in Boston, as well as an extensive rebranding campaign, put a dent in Wellesley Bancorp’s fourth quarter earnings last year.

Net income for the quarter ended Dec. 31 totaled $434,000, a $247,000 or 36 percent decline from the $681,000 it recorded during the same period in 2012. For the year ended Dec. 31, net income totaled $2.2 million, compared with $1.1 million in 2012. The company’s 2012 results reflected a one-time $1.8 million pre-tax contribution to the bank’s charitable foundation, which was formed in conjunction with its mutual-to-stock conversion that took place on Jan. 25, 2012.

Net interest income increased 20.7 percent to $3.7 million during the fourth quarter, largely due to higher interest income from growth in the bank’s loan portfolio, partially offset by higher interest expenses as the company grew its deposits and increased its balances of Federal Home Loan bank advances to fund loan growth and manage liquidity and interest rate risk. Deposit and borrowing expense increased slightly as lower interest rates paid were offset by higher funding levels. The net interest margin was 3.47 percent for the 2013 quarter, compared with 3.5 percent for the 2012 quarter, as funding costs declined more slowly than earning asset yields in the period.

Noninterest income decreased to $252,000, largely due to declines in mortgage banking income and gains on sales of securities. Conversely, wealth management fees increased $31,000 over the 2012 period.

Total assets were $458.5 million at year end 2013, up $82.5 million from the previous year. That increase was primarily related to loan growth throughout the year, supported partly by an increase in FHLB advances, as well as deposit growth.

Net loans totaled $383.7 million at Dec. 31, an increase of $89.6 million over the year. Residential mortgage loans increased $51.2 million to $181.7 million, primarily due to growth in our adjustable-rate mortgage portfolio. Construction loans increased $31.9 million, $14.4 million of which consisted of loans to individual homeowners for construction of principal residences and $17.5 million of which consisted of loans to builders. Construction loans totaled $80.1 million at year end, compared with $48.2 million at Dec. 31, 2012, with loans to individual homeowners representing $22.8 million of the total at year end 2013.