BSB Bancorp, Inc. Reports Second Quarter Results

Jul 26, 2012, 17:02 ET from BSB Bancorp, Inc.

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