Quarterly net income increased 34 percent to $583,000 at Wellesley Bancorp, the holding company for Wellesley Bank. That compares with net income of $434,000 for the same period last year.
The company also posted a net income of $1.2 million for the six months ended June 30, compared with a net loss of $119,000 for the comparable period last year. According to the company, those results in 2012 reflected a one-time $1.8 million pre-tax contribution to the bank’s charitable foundation in connection with its mutual-to-stock conversion, which was completed Jan. 25 of last year.
"We are very pleased to report growth in net income and earnings per share compared to our prior year’s results. This earnings growth is a direct result of our efforts to expand our service area and product offerings, and to add quality assets in support of our strategic growth objectives," Thomas J. Fontaine, the bank’s president and chief executive officer said in a statement.
In that statement, the company primarily attributed the increase in its quarterly net income to stronger net interest income and increased noninterest income. Net interest income increased 17.3 percent to $3.3 million over $2.8 million in the second quarter of 2012, largely due to increased residential mortgage loan origination, as well as growth in other loan portfolios.
Total assets were $396.7 million at June 30, representing an increase of $20.7 million compared with $376 million at Dec. 31, 2012. The increase was reflected as an increase in loans held in portfolio, while loans held for sale declined during the period.
Net loans increased 12 percent, or $36 million, to $330.1 million, compared with $294.1 million at Dec. 31. The company said that residential mortgage loans made up $25.4 million of that increase due to growth in its adjustable-rate mortgage portfolio, and that construction loans increased $11.6 million.
Deposits increased slightly, by $3.2 million, to $301.3 million this quarter, from $298.1 million at the end of 2012. Federal Home Loan Bank advances, including short-term borrowings, increased $17 million during this time and were used to fund the portfolio loan growth. Stockholders’ equity increased to $45.7 million, or 1.6 percent as of June 30, 2013 compared with $45 million at Dec. 31.
The company’s deposit and borrowing costs have increased as its funding needs also expanded. Wellesley Bancorp reported that its earning asset yield decreased 38 basis points to 4.24 percent this quarter from 4.59 percent in the same quarter last year and that its net interest margin was 3.50 percent for the 2013 three month period, compared to 3.74 percent for the 2012 period.
