2014

BSB Bancorp, Inc. Reports First Quarter Results

BELMONT, Mass., April 25, 2013 /PRNewswire/ -- BSB Bancorp, Inc. (NASDAQ: BLMT) (the "Company"), the holding company for Belmont Savings Bank (the "Bank"), a state-chartered savings bank headquartered in Belmont, Massachusetts, today reported net income of $416,000, or $0.05 per basic and diluted share, for the quarter ended March 31, 2013, compared to net income of $447,000, or $0.05 per basic and diluted share in the first quarter of 2012.  

Robert M. Mahoney, President and Chief Executive Officer, said, "I was pleased with the first quarter results as net interest income continued to increase, fueled by strong loan demand and core deposit growth. In addition, asset quality remains high and we continue to compare favorably with banks in our region."

Net interest and dividend income before provision for loan losses for the quarter ended March 31, 2013 was $5.8 million as compared to $5.3 million for the quarter ended March 31, 2012, a 9.8% increase. The provision for loan losses for the quarter ended March 31, 2013 was $327,000 as compared to a provision for loan losses of $481,000 for the quarter ended March 31, 2012, a 32.0% decrease. This resulted in a $673,000 or 14.1% increase in net interest and dividend income after provision for loan losses. 

Noninterest income for the quarter ended March 31, 2013 totaled $1.0 million as compared to $964,000 for the quarter ended March 31, 2012. There was an increase in loan servicing income of $99,000, an increase in customer service fees of $32,000, an increase in gains on sales and calls of securities of $31,000 and an increase in other income of $105,000. These increases were offset by a decrease in gains on loan sales of $227,000.

Noninterest expense for the quarter ended March 31, 2013 amounted to $5.8 million as compared to $5.1 million for the quarter ended March 31, 2012.  This increase of $0.7 million was largely driven by an increase in salaries and employee benefits. This increase is primarily attributable to an increase in equity based compensation expense of $399,000. Data processing costs also increased by $191,000, which was largely due to increases in volume of auto loans serviced and core and online banking costs in connection with a larger number of customers. 

Since December 31, 2012, the Company's assets have increased by $1.6 million or 0.2% bringing total assets to $839.7 million. The Company experienced net loan growth, excluding loans held for sale, of $47.1 million, or 7.2%, from December 31, 2012. Commercial real estate, commercial, residential mortgage, home equity, and indirect auto loans increased by $27.1 million, $1.3 million, $10.8 million $1.2 million and $9.0 million, respectively. The loan growth was funded primarily through reductions in cash and cash equivalents and available-for-sale securities.

At March 31, 2013, deposits totaled $616.7 million, an increase of $8.8 million or 1.4% from December 31, 2012. Core deposits, which we consider to include all deposits other than CD's and brokered CD's, increased by $17.9 million. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "Our core deposit growth continued in the first quarter with significant contributions from our new supermarket branch in Waltham. Through its tenth month of operation, the Waltham branch has exceeded $25 million in deposits, already twice the average for in-store branches nationwide."

The allowance for loan losses in total and as a percentage of total loans as of March 31, 2013 equaled $6.8 million and 0.96%, respectively, as compared to $6.4 million and 0.98%, respectively, as of December 31, 2012.  Total non-performing assets were $4.1 million, or 0.49% of total assets, as of March 31, 2013, as compared to $4.3 million, or 0.52% of total assets, as of December 31, 2012.

Total stockholders' equity decreased from $133.3 million as of December 31, 2012 to $132.0 million as of March 31, 2013. This decrease is the result of the Stock Repurchase Program that was adopted on December 12, 2012. During the first quarter of 2013, the Company purchased 144,219 shares of its common stock for $1.94 million.

Company Profile

BSB Bancorp, Inc. is headquartered in Belmont, Massachusetts and is the holding company for Belmont Savings Bank. The Bank provides financial services to individuals, families and businesses through its five full-service branch offices located in Belmont, Watertown and Waltham in Southeast Middlesex County, Massachusetts. The Bank's primary lending market includes Essex, Middlesex, Norfolk and Suffolk Counties, Massachusetts. The Company's common stock is traded on the NASDAQ Capital Market under the symbol "BLMT". For more information, visit the Company's website at www.belmontsavings.com.

Forward-looking statements

Certain statements herein constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on the beliefs and expectations of management, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which the Company is engaged, changes in the securities market, and other factors that may be described in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise, except as may be required by law.

 


BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)









March 31, 2013


December 31, 2012







(unaudited)



ASSETS







Cash and due from banks



$                1,228


$                1,433

Interest-bearing deposits in other banks



18,019


51,279




Cash and cash equivalents



19,247


52,712

Interest-bearing time deposits with other banks



119


119

Investments in available-for-sale securities



12,013


22,621

Investments in held-to-maturity securities, at cost



64,692


63,984

Federal Home Loan Bank stock, at cost



7,131


7,627

Loans held-for-sale



9,562


11,205

Loans, net of allowance for loan losses of $6,778 as of 








3/31/2013 (unaudited) and $6,440 as of 12/31/2012



701,445


654,295

Premises and equipment, net



2,804


2,902

Accrued interest receivable



2,176


2,217

Deferred tax asset, net



4,169


4,025

Income taxes receivable



540


806

Bank-owned life insurance



12,988


12,884

Other real estate owned



661


661

Other assets



2,151


2,024




Total assets



$            839,698


$            838,082










LIABILITIES AND STOCKHOLDERS' EQUITY






Deposits:








Noninterest-bearing



$            116,229


$            126,760



Interest-bearing



500,424


481,105




Total deposits



616,653


607,865

Federal Home Loan Bank advances



76,600


83,100

Securities sold under agreements to repurchase



3,460


3,404

Other borrowed funds



1,145


1,156

Accrued interest payable



528


455

Deferred compensation liability



4,836


4,685

Other liabilities



4,447


4,109




Total liabilities



707,669


704,774










Stockholders' Equity:







Common stock



94


95


Additional paid-in capital



88,655


90,188


Retained earnings



47,768


47,352


Accumulated other comprehensive (loss) income



(130)


68


Unearned compensation - ESOP



(4,358)


(4,395)




Total stockholders' equity



132,029


133,308




Total liabilities and stockholders' equity



$            839,698


$            838,082










Asset Quality Data:






Total non-performing assets



4,134


4,325

Total non-performing loans



3,453


3,621

Non-performing loans to total loans



0.55%


0.55%

Non-performing assets to total assets



0.52%


0.52%

Allowance for loan losses to non-performing loans



196.31%


177.86%

Allowance for loan losses to total loans



0.96%


0.98%










 

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)









Three months ended









March 31,









2013


2012









(unaudited)



Interest and dividend income:








Interest and fees on loans


$        6,499


$       5,877




Interest on taxable debt securities


482


610




Dividends


7


10




Other interest income


17


13






Total interest and dividend income


7,005


6,510



Interest expense:








Interest on deposits


1,032


938




Interest on Federal Home Loan Bank advances


185


298




Interest on securities sold under agreements to repurchase


1


3




Interest on other borrowed funds


8


11






Total interest expense


1,226


1,250






Net interest and dividend income


5,779


5,260



Provision for loan losses


327


481






Net interest and dividend income after provision










     for loan losses


5,452


4,779



Noninterest income:








Customer service fees


230


198




Income from bank-owned life insurance


104


102




Net gain on sales of loans


351


578




Net gain on sales and calls of securities


31


-




Loan servicing fees


170


71




Other income


120


15






Total noninterest income 


1,006


964



Noninterest expense:








Salaries and employee benefits


3,682


3,155




Director fees


92


107




Occupancy expense


229


183




Equipment expense


148


104




Deposit insurance


127


125




Data processing


581


390




Professional fees


211


318




Marketing


209


239




Other expense


521


463






Total noninterest expense


5,800


5,084






Income before income tax expense


658


659



Income tax expense


242


212






Net income


$           416


$          447




Earnings per share










Basic


$          0.05


$         0.05






Diluted


$          0.05


$         0.05

























Performance Ratios:







Return on average assets


0.20%


0.26%



Return on average equity


1.27%


1.36%



Interest rate spread


2.68%


2.96%



Net interest margin


2.92%


3.23%



Efficiency ratio


85.49%


81.68%
























Contact:


Robert M. Mahoney





President and Chief Executive Officer








Phone:


617-484-6700



Email:


robert.mahoney@belmontsavings.com



 

SOURCE BSB Bancorp, Inc.



RELATED LINKS
https://www.belmontsavings.com

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