BSB Bancorp, Inc. Reports Fourth Quarter Results

14 Feb, 2013, 17:34 ET from BSB Bancorp, Inc.

BELMONT, Mass., Feb. 14, 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 $485,000, or $0.05 per basic and diluted share, for the quarter ended December 31, 2012, compared to a net loss of $1.3 million in the fourth quarter of 2011.  For the twelve months ended December 31, 2012, the Company reported net income of $1.4 million, or $0.16 per basic and diluted share, as compared to net income of $299,000 for the same period in 2011.

Robert M. Mahoney, President and Chief Executive Officer, said, "I was pleased with the fourth quarter results. Core deposit growth was strong and gains from loan sales continue to contribute to our improving profits."

Net interest and dividend income before provision for loan losses for the quarter ended December 31, 2012 was $5.9 million as compared to $4.9 million for the quarter ended December 31, 2011, an 18.9% increase.  Provision for loan losses for the quarter ended December 31, 2012 was $696,000 as compared to a provision for loan losses of $747,000 for the quarter ended December 31, 2011, a 6.8% decrease. This resulted in a $984,000 or 23.6% increase in net interest and dividend income after provision for loan losses.  Net interest and dividend income before provision for loan losses for the twelve months ended December 31, 2012 was $21.7 million as compared to $16.6 million for the twelve months ended December 31, 2011, a 30.9% increase. Provision for loan losses for the twelve months ended December 31, 2012 was $2.7 million, as compared to $2.3 million for the twelve months ended December 31, 2011, a 19.8% increase.  This resulted in a $4.7 million or 32.6% increase in net interest and dividend income after provision for loan losses.

Noninterest income for the quarter ended December 31, 2012 totaled $1.6 million as compared to $549,000 for the quarter ended December 31, 2011. The majority of this increase is attributable to an additional $859,000 in net gains on sales of loans. For the twelve months ended December 31, 2012, noninterest income amounted to $4.7 million as compared to $4.5 million for the twelve months ended December 31, 2011. This increase was primarily the result of an increase in net gains on sales of loans of $2.1 million, an increase of $207,000 in customer service fees, and an increase in other income of $660,000, primarily attributable to an increase in loan servicing fee income of 404,000 and $208,000 in noninterest income related to the sale of easement rights.  This was partially offset by a $2.7 million decrease in net realized gains on investment securities as a result of the sale of the entire portfolio of marketable equity securities in the first quarter of 2011.

Noninterest expense for the quarter ended December 31, 2012 amounted to $5.9 million as compared to $6.6 million for the quarter ended December 31, 2011.  This decrease was driven by a decrease in charitable contributions as the Company made a $2.0 million contribution to the Belmont Savings Bank Foundation in 2011, partially offset by an increase in salary and employee benefits of $1.0 million. Noninterest expense for the twelve months ended December 31, 2012 amounted to $21.5 million as compared to $18.2 million for the twelve months ended December 31, 2011.  This increase in expenses was primarily the result of new staff added to execute the Company's commercial and consumer business strategies, increased infrastructure costs related to increased business volume, public company costs and equity based incentive compensation. These were partially offset by a decrease in charitable contributions.

Since December 31, 2011, the Company's assets have increased by $169.1 million or 25.3% bringing total assets to $838.1 million. The Company experienced net loan growth, excluding loans held for sale, of $144.3 million, or 28.3%, from December 31, 2011, which was primarily the result of increases to the commercial real estate, commercial, residential mortgage, home equity, and indirect auto loan portfolios, which have increased by $94.8 million, $9.8 million, $9.6 million $16.9 million and $13.9 million, respectively. The loan growth was funded through growth in deposits.

At December 31, 2012, deposits totaled $607.9 million, an increase of $177.2 million or 41.1% from December 31, 2011.  Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "It was an excellent year in deposit growth due to the selling efforts of our Commercial Real Estate team, the momentum of our Small Business Bankers and the opening of our new supermarket branch in Waltham. I am particularly pleased with the growth in noninterest-bearing checking account balances (+127%) which indicates that core banking relationships are growing rapidly."

The allowance for loan losses in total and as a percentage of total loans as of December 31, 2012 equaled $6.4 million and 0.98%, respectively, as compared to $4.8 million and 0.93%, respectively, as of December 31, 2011.  Total non-performing assets were $4.3 million, or 0.52% of total assets as of December 31, 2012, as compared to $4.4 million, or 0.66% of total assets as of December 31, 2011.

Company Profile

BSB Bancorp, Inc. is headquartered in Belmont, Massachusetts and is the holding company for Belmont Savings Bank and BSB Funding Corporation. 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)

December 31, 2012

December 31, 2011

(unaudited)

ASSETS

Cash and due from banks

$                1,433

$                   773

Interest-bearing deposits in other banks

51,279

22,022

Cash and cash equivalents

52,712

22,795

Interest-bearing time deposits with other banks

119

119

Investments in available-for-sale securities

22,621

-

Investments in held-to-maturity securities, at cost

63,984

89,391

Federal Home Loan Bank stock, at cost

7,627

8,038

Loans held-for-sale

11,205

15,877

Loans, net of allowance for loan losses of $6,440 as of 

12/31/2012 (unaudited) and $4,776 as of 12/31/2011

654,295

509,964

Premises and equipment, net

2,902

2,000

Accrued interest receivable

2,217

2,185

Deferred tax asset, net

4,025

4,315

Income taxes receivable

806

-

Bank-owned life insurance

12,884

12,420

Other real estate owned

661

-

Other assets

2,024

1,901

Total assets

$            838,082

$            669,005

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing

$            126,760

$              55,900

Interest-bearing

481,105

374,754

Total deposits

607,865

430,654

Federal Home Loan Bank advances

83,100

95,600

Securities sold under agreements to repurchase

3,404

2,985

Other borrowed funds

1,156

1,502

Accrued interest payable

455

177

Deferred compensation liability

4,685

4,173

Income taxes payable

-

121

Other liabilities

4,109

2,287

Total liabilities

704,774

537,499

Stockholders' Equity:

Common stock

96

92

Additional paid-in capital

90,187

90,016

Retained earnings

47,352

45,951

Accumulated other comprehensive income (loss)

68

(5)

Unearned compensation - ESOP

(4,395)

(4,548)

Total stockholders equity

133,308

131,506

Total liabilities and stockholders' equity

$            838,082

$            669,005

Asset Quality Data:

Total non-performing assets

4,325

4,427

Total non-performing loans

3,621

4,427

Non-performing loans to total loans

0.55%

0.86%

Non-performing assets to total assets

0.52%

0.66%

Allowance for loan losses to non-performing loans

177.86%

107.88%

Allowance for loan losses to total loans

0.98%

0.93%

 

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

Three months ended

Twelve months ended

December 31,

December 31,

2012

2011

2012

2011

(unaudited)

(unaudited)

Interest and dividend income:

Interest and fees on loans

$        6,537

$       5,457

$      24,568

$     19,525

Interest on taxable debt securities

584

674

2,124

2,536

Dividends

9

6

47

115

Other interest income

13

30

85

46

Total interest and dividend income

7,143

6,167

26,824

22,222

Interest expense:

Interest on deposits

1,076

901

4,125

3,656

Interest on Federal Home Loan Bank advances

204

331

958

1,892

Interest on securities sold under agreements to repurchase

1

4

8

16

Interest on other borrowed funds

10

12

42

81

Total interest expense

1,291

1,248

5,133

5,645

Net interest and dividend income

5,852

4,919

21,691

16,577

Provision for loan losses

696

747

2,736

2,285

Net interest and dividend income after provision for loan losses

 

5,156

 

4,172

 

18,955

 

14,292

Noninterest income:

Customer service fees

217

200

844

637

Income from bank-owned life insurance

123

124

439

435

Net gain on sales of loans

1,013

154

2,520

462

Net gain on sales and calls of securities

59

3

59

2,790

Other income

162

68

843

183

Total noninterest income 

1,574

549

4,705

4,507

Noninterest expense:

Salaries and employee benefits

3,813

2,814

13,508

10,203

Director fees

73

69

345

295

Occupancy expense

215

180

801

749

Equipment expense

131

102

450

350

Deposit insurance

134

125

500

456

Data processing

565

334

1,881

1,059

Professional fees

305

330

1,036

818

Marketing

185

233

928

930

Contribution to Belmont Savings Bank Foundation

-

1,999

-

1,999

Other expense

519

388

2,097

1,346

Total noninterest expense

5,940

6,574

21,546

18,205

Income (loss) before income tax expense (benefit)

790

(1,853)

2,114

594

Income tax expense (benefit)

305

(516)

713

295

Net income (loss)

$           485

$      (1,337)

$        1,401

$          299

Earnings per share

Basic

$          0.05

$          0.16

Diluted

$          0.05

$          0.16

$          0.02

$          0.11

Performance Ratios:

Return on average assets

0.23%

-0.82%

0.19%

0.05%

Return on average equity

1.45%

-4.13%

1.06%

0.44%

Interest rate spread

2.63%

2.88%

2.69%

2.91%

Net interest margin

2.90%

3.16%

2.97%

3.11%

Efficiency ratio

79.99%

120.23%

81.62%

86.35%

 

Contact:

Robert M. Mahoney

President and Chief Executive Officer

Phone:

617-484-6700

Email:

robert.mahoney@belmontsavings.com

 

SOURCE BSB Bancorp, Inc.



RELATED LINKS

http://www.belmontsavings.com