2014

BSB Bancorp, Inc. Reports Fourth Quarter Results

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

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