Danvers Bancorp Inc., the holding company for Danversbank, has reported $4.9 million in net income for the quarter ended Dec. 31, up from $2.6 million in net income during the same period in 2009.

For the year ended Dec. 31, 2010, net income was $18.2 million, a significant increase from the $5.3 million in net income in 2009. The combination of the acquisition of Beverly National Corp., organic growth, particularly within the loan portfolio, and the overall improvement of the company’s net interest margin resulted in a significant increase in net interest income and, to a lesser extent, an increase in non-interest income.

These increases were partially offset by increased salaries and benefits expense, occupancy, other operating expenses and provision for income taxes. Most notably, net interest income for the quarter and year ended Dec. 31, 2010 improved by $3.4 million, or 17.9 percent, and $26.5 million, or 44.9 percent, respectively, when compared to the same periods in 2009.

Compared to the quarter ended Sept. 30, 2010, net income increased by $703,000, or 16.9 percent. An increase in net interest income and non-interest income were somewhat offset by increases in the provision for loan losses, non-interest expense and income taxes between the comparable periods.

Last week, People’s United Financial Inc. of Bridgeport, Conn., announced it would buy Danvers for approximately $493 million.

The merger is expected to close in the second quarter of 2011, subject to customary closing conditions and receipt of regulatory approvals.

"I’m confident that this transaction will benefit Danvers Bancorp shareholders, customers and employees," said Kevin T. Bottomley, chairman, president and chief executive officer of Danvers Bancorp. "People’s United brings substantial resources for increased lending, additional products and services and opportunities for professional development for our employees. When coupled with our highly experienced lending staff and extensive eastern Massachusetts branch network, the combined organization will be well positioned to compete with the biggest players in the Greater Boston area."

The board of directors of Danvers declared a cash dividend on its common stock of 4-cents per share. The dividend will be paid on or after Feb. 25 to shareholders of record as of Feb. 11.