Springfield’s Hampden Bancorp Inc., the holding company for Hampden Bank, has reported net income for the second quarter of $106,000, down 44.5 percent compared to $191,000 for the same period in 2008.
The company’s total assets increased to $567.7 million in the quarter, up from $543.8 million a year ago. Net loans, including loans held for sale, increased $26.8 million, or 7.4 percent, to $387.6 million at June 30, while securities decreased 6.3 percent, or $7.8 million, from $123.9 million to $116.1 million as of the end of the second quarter, according to the company.
The decrease in net income was primarily the result of a Federal Deposit Insurance Corp. (FDIC) special assessment fee of $235,000, and an increase in FDIC insurance premiums of $185,000 for the three months ended June 30.
Net income was $286,000 for the 12-month period ended June 30, compared to net income of $1.2 million for the same period a year ago.
Deposits increased $50 million, or 15.1 percent, to $381.5 million at June 30, from $331.4 million a year prior.
The company repurchased 503,127 shares of company stock in several stock repurchase programs throughout the fiscal year. These repurchases contributed to an overall decrease in stockholders’ equity of $3.8 million, to $96.7 million at June 30, compared to $100.4 million at June 30, 2008.
The company’s ratio of capital to total assets decreased to 17 percent in the second quarter, from 18.5 percent in the same quarter a year ago.
"The past fiscal year has presented many challenges, but also many opportunities," said to Thomas R. Burton, president and CEO. "Net income has been negatively impacted by three major items, all related to the economy. These include significantly higher FDIC premiums and assessments, a larger than normal provision for loan losses and the write-off of securities deemed to be other-than-temporarily impaired. Those issues aside, the past fiscal year has seen a significant increase in new customers as evidenced by a large increase in deposit balances and loan activity reflecting the trend of consumers toward community banks and a general aversion to risk."
The company’s board of directors also declared a quarterly cash dividend of $0.03 per common share, payable Aug. 27, to shareholders of record at the close of business Aug. 13.
