BSB Bancorp, Inc. Reports Second Quarter Results

BELMONT, Mass., July 26, 2012 /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 $286,000, or $0.03 per diluted share, for the quarter ended June 30, 2012, compared to a net loss of $188,000 in the second quarter of 2011.  For the six months ended June 30, 2012, the Company reported net income of $733,000, or $0.08 per diluted share, as compared to net income of $1.3 million for the same period in 2011.

Robert M. Mahoney, President and Chief Executive Officer, said, "The second quarter of 2012 saw a continuation of our loan and deposit growth. Commercial real estate loan demand was particularly good and we were pleased to achieve solid checking and core deposit growth. We also had significant net gains on loan sales during the quarter, which augmented non-interest income. In May, we also opened our first supermarket branch in Waltham."

Net interest and dividend income before provision for loan losses for the quarter ended June 30, 2012 increased $1.1 million or 28.2% as compared to the quarter ended June 30, 2011.  This increase in net interest and dividend income was partially offset by an increase in the provision for loan losses of $83,000 resulting in a $1.0 million or 32.2% increase in net interest and dividend income after provision for loan losses. Net interest and dividend income before provision for loan losses for the six months ended June 30, 2012 increased $2.8 million or 38.1% as compared to the six months ended June 30, 2011.  This increase in net interest and dividend income was partially offset by an increase in the provision for loan losses of $88,000 resulting in a $2.7 million or 44.3% increase in net interest and dividend income after provision for loan losses. 

The Company's net interest margin decreased to 2.79% for the quarter ended June 30, 2012, from 3.00% for the quarter ended June 30, 2011, a decrease of 21 basis points or 7.0%. The decrease in the net interest margin was primarily related to a higher than normal balance of short-term interest bearing cash equivalents with generally lower yields and competitive market pricing for loans and deposits. For the six months ended June 30, 2012, the Company's net interest margin increased to 3.00% from 2.99%.   

Non-interest income for the quarter ended June 30, 2012 totaled $1.5 million as compared to $412,000 for the second quarter of 2011. The increase was primarily the result of an additional $590,000 in gains on loan sales, made up of residential mortgages and indirect auto loans. In addition, the second quarter of 2012 included $208,000 in non-interest income related to the sale of easement rights. For the six months ended June 30, 2012, non-interest income amounted to $2.5 million as compared to $3.5 million for the six months ended June 30, 2011. This decrease was primarily the result of a $2.8 million net realized gain on investment securities in the first quarter of 2011, which resulted from the sale of our entire portfolio of marketable equity securities, partially offset by a $1.1 million increase in net gain on sales of loans during the six months ended June 30, 2012.

Non-interest expense for the quarter ended June 30, 2012 amounted to $5.2 million as compared to $3.9 million for the second quarter of 2011.  Non-interest expense for the six months ended June 30, 2012 amounted to $10.3 million, an increase of $2.6 million from the same period in 2011.  These increases were 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, and public company costs.

Since December 31, 2011, the Company's assets have increased by $86.4 million or 12.9% to $755.4 million. The Company experienced net loan growth, excluding loans held for sale, of $82.9 million, or 16.2%, from December 31, 2011, which was primarily the result of increases to the commercial real estate, residential mortgage, home equity, and commercial loan portfolios, which have increased by $56.7 million, $11.3 million, $9.2 million and $4.1 million, respectively. The loan growth was funded through growth in deposits.

At June 30, 2012, deposits totaled $537.7 million, an increase of $107.0 million or 24.8% from December 31, 2011.  Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "This deposit growth is due to: (1) continued investment in local marketing and advertising, (2) ongoing momentum in our Small Business Banking and Commercial Real Estate businesses, (3) the opening of our new supermarket branch, and (4) an $8.5 million short-term deposit transaction crossing over quarter end."

The allowance for loan losses in total and as a percentage of total loans as of June 30, 2012 equaled $5.4 million and 0.90%, respectively, as compared to $4.8 million and 0.93%, respectively, as of December 31, 2011. The Company recorded a provision for loan losses of $825,000 for the quarter ended June 30, 2012 as compared to $742,000 for the quarter ended June 30, 2011.

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 NASD 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 and changes in the securities market. 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 SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)







June 30, 2012


December 31, 2011






(unaudited)



ASSETS





Cash and due from banks


$             1,243


$                 1,196

Interest-bearing deposits in other banks


53,434


21,599




Cash and cash equivalents


54,677


22,795

Interest-bearing time deposits with other banks


119


119

Investments in held-to-maturity securities, at cost 


75,061


89,391

Federal Home Loan Bank stock, at cost


7,627


8,038

Loans held for sale


616


15,877

Loans, net of allowance for loan losses of $5,360 as of 







June 30, 2012 (unaudited) and $4,776 as of December 31, 2011


592,828


509,964

Premises and equipment, net


2,431


2,000

Accrued interest receivable


2,122


2,185

Deferred tax asset, net


4,315


4,315

Income taxes receivable


416


-

Bank-owned life insurance


12,656


12,420

Other assets


2,503


1,901




Total assets


$          755,371


$             669,005









LIABILITIES AND EQUITY





Deposits:







Noninterest-bearing


$            98,561


$              55,900



Interest-bearing


439,096


374,754




Total deposits


537,657


430,654

Federal Home Loan Bank advances


71,100


95,600

Securities sold under agreements to repurchase


3,234


2,985

Other borrowed funds


1,476


1,502

Accrued interest payable


288


177

Deferred compensation liability


4,388


4,173

Income taxes payable


-


121

Other liabilities


4,901


2,287




Total liabilities


623,044


537,499

Stockholders' Equity:






Common stock; $0.01 par value, 100,000,000 shares authorized; 9,172,860 shares







issued and outstanding at June 30, 2012 and December 31, 2011, respectively


92


92


Additional paid-in capital


90,028


90,016


Retained earnings


46,684


45,951


Accumulated other comprehensive loss


(5)


(5)


Unearned compensation - ESOP


(4,472)


(4,548)




Total stockholders' equity


132,327


131,506




Total liabilities and stockholders' equity


$         755,371


$          669,005

Asset Quality Data:





Total non-performing assets


3,306


4,427

Total non-performing loans


3,266


4,427

Non-performing loans to total loans


0.55%


0.86%

Non-performing assets to total assets


0.44%


0.66%

Allowance for loan losses to non-performing loans


164.12%


107.88%

Allowance for loan losses to total loans


0.90%


0.93%

BSB BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands)








Three months ended


Six months ended







June 30,


June 30,







2012


2011


2012


2011







(unaudited)


(unaudited)

Interest and dividend income:










Interest and fees on loans


$      5,791


$      4,774


$    11,668


$      9,160


Interest on taxable debt securities


371


566


981


1,161


Dividends


18


13


28


103


Other interest income


40


8


53


10




Total interest and dividend income


6,220


5,361


12,730


10,434

Interest expense:










Interest on deposits


1,031


962


1,969


1,850


Interest on Federal Home Loan Bank advances


244


535


542


1,140


Interest on securities sold under agreements to repurchase


3


4


6


9


Interest on other borrowed funds


10


12


21


57




Total interest expense


1,288


1,513


2,538


3,056




Net interest and dividend income


4,932


3,848


10,192


7,378

Provision for loan losses


825


742


1,306


1,218




Net interest and dividend income after provision













for loan losses


4,107


3,106


8,886


6,160

Noninterest income:










Customer service fees


200


141


398


250


Income from bank-owned life insurance


109


88


211


196


Net gain on sales of loans


737


147


1,315


217


Net gain on sales and calls of securities


-


-


-


2,788


Other income


441


36


527


65




Total noninterest income 


1,487


412


2,451


3,516

Noninterest expense:










Salaries and employee benefits


3,229


2,437


6,384


4,834


Trustee fees


83


91


190


159


Occupancy expense


196


172


379


381


Equipment expense


105


83


209


161


Deposit insurance


128


86


253


225


Data processing


454


282


844


477


Professional fees


213


179


531


306


Marketing


239


260


478


482


Other expense


527


326


990


612




Total noninterest expense


5,174


3,916


10,258


7,637




Income before income tax expense


420


(398)


1,079


2,039

Income tax expense


134


(210)


346


698





Net income


$         286


$        (188)


$         733


$      1,341














Basic and Diluted Earnings per Share


$        0.03


 N/A 


$        0.08


 N/A 














Performance Ratios:









Return on assets


0.16%


-0.14%


0.22%


0.52%

Return on equity


0.87%


-1.60%


1.12%


5.73%

Interest rate spread


2.50%


2.82%


2.72%


2.81%

Net interest margin


2.79%


3.00%


3.00%


2.99%

Efficiency ratio


80.60%


91.92%


81.14%


70.10%











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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