2014

BSB Bancorp, Inc. Reports Second Quarter Results

BELMONT, Mass., July 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 $361,000, or $0.04 per basic and diluted share, for the quarter ended June 30, 2013, compared to net income of $286,000, or $0.03 per basic and diluted share in the second quarter of 2012.  For the six months ended June 30, 2013, the Company reported net income of $777,000, or $0.09 per basic and diluted share, as compared to net income of $733,000 and $0.08 per basic and diluted share for the same period in 2012.

Robert M. Mahoney, President and Chief Executive Officer, said, "The second quarter results demonstrate that our strong growth strategy can be achieved while also carefully managing risk. Our local market continues to afford us significant deposit and loan opportunities. We hope to continue to be able to take advantage of this favorable community banking environment in Eastern Massachusetts."

NET INTEREST AND DIVIDEND INCOME

Net interest and dividend income before provision for loan losses for the quarter ended June 30, 2013 was $5.9 million as compared to $4.9 million for the quarter ended June 30, 2012, a 19.9% increase. The provision for loan losses for the quarter ended June 30, 2013 was $100,000 as compared to a provision for loan losses of $825,000 for the quarter ended June 30, 2012, a 87.9% decrease. This resulted in a $1.7 million or 41.6% increase in net interest and dividend income after provision for loan losses for the quarter ended June 30, 2013 as compared to the quarter ended June 30, 2012.  Net interest and dividend income before provision for loan losses for the six months ended June 30, 2013 was $11.7 million as compared to $10.2 million for the six months ended June 30, 2012, a 14.7% increase. The provision for loan losses for the six months ended June 30, 2013 was $427,000, as compared to $1.3 million for the six months ended June 30, 2012, a 67.3% decrease. This resulted in a $2.4 million or 26.8% increase in net interest and dividend income after provision for loan losses period over period.

NONINTEREST INCOME

Noninterest income for the quarter ended June 30, 2013 was $908,000 as compared to $1.5 million for the quarter ended June 30, 2012, a decrease of $579,000, or 39.0% This decrease was primarily driven by a reduction of $288,000 in gains on sales of loans and a $208,000 gain on the sale of easement rights in the second quarter of 2012 that did not occur in the second quarter of 2013. For the six months ended June 30, 2013, non-interest income was $1.9 million as compared to $2.5 million for the six months ended June 30, 2012. This decrease of $537,000, or 21.9%, was driven by a decrease in gains on sales of loans of $515,000 and the gain on sale of easement rights in the second quarter of 2012.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended June 30, 2013 was $6.2 million as compared to $5.2 million for the quarter ended June 30, 2012.  This increase of $987,000, or 19.1%, was largely driven by an increase in salaries and employee benefits of $532,000, which increased $281,000 as a result of the 2012 Equity Incentive Plan that was adopted in the  fourth quarter of 2012. Data processing expenses increased by $151,000 quarter over quarter, driven largely by increases in core and online banking costs as our customer base and transaction volume continue to see growth. Our recruitment fees increased by $90,000, primarily driven by our branch network expansion and hiring of new personnel. Noninterest expense for the six months ended June 30, 2013 was $12.0 million as compared to $10.3 million for the six months ended June 30, 2012. This increase of $1.7 million, or 16.6% was primarily driven by increases in salaries and employee benefits and director compensation, both of which had increased primarily as a result of the 2012 Equity Incentive Plan that was adopted in the fourth quarter of 2012. Data processing expenses increased by $364,000, driven largely by increases in core and online banking costs.

BALANCE SHEET

At June 30, 2013, total assets were $909.1 million, an increase of $71.0 million or 8.5% from December 31, 2012. The Company experienced net loan growth, excluding loans held for sale, of $69.0 million, or 10.6%, from December 31, 2012. Commercial real estate, residential mortgage, home equity, and indirect auto loans increased by $27.0 million, $20.2 million, $10.2 million and $10.9 million, respectively.

At June 30, 2013, deposits totaled $695.4 million, an increase of $87.6 million or 14.4% from December 31, 2012. Core deposits, which we consider to include all deposits other than CD's and brokered CD's, increased by $89.4 million from December 31, 2012. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "This very strong deposit growth was a result of the implementation of our municipal banking strategy, the continued focus on building core deposit relationships with our business customers and the ongoing expansion of our InStore branching program."

Total stockholders' equity decreased from $133.3 million as of December 31, 2012 to $128.1 million as of June 30, 2013. This decrease is primarily the result of the Stock Repurchase Program that was adopted on December 12, 2012. During the six months ended June, 30, 2013, the Company purchased 476,622 shares of its common stock for $6.5 million and completed the Stock Repurchase Program.

ASSET QUALITY

The allowance for loan losses in total and as a percentage of total loans as of June 30, 2013 equaled $6.9 million and 0.94%, respectively, as compared to $6.4 million and 0.98%, respectively, as of December 31, 2012.  Total non-performing assets were $3.0 million, or 0.32% of total assets, as of June 30, 2013, as compared to $4.3 million, or 0.52% of total assets, as of December 31, 2012.

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 six full-service branch offices located in Belmont, Watertown, Cambridge 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)



June 30, 2013


December 31, 2012


(unaudited)



ASSETS




Cash and due from banks

$                1,611


$                1,433

Interest-bearing deposits in other banks

53,521


51,279

            Cash and cash equivalents

55,132


52,712

Interest-bearing time deposits with other banks

119


119

Investments in available-for-sale securities

16,940


22,621

Investments in held-to-maturity securities, at cost

72,709


63,984

Federal Home Loan Bank stock, at cost

7,131


7,627

Loans held-for-sale

6,341


11,205

Loans, net of allowance for loan losses of $6,856 as of 




        6/30/2013 (unaudited) and $6,440 as of 12/31/2012

723,327


654,295

Premises and equipment, net

3,111


2,902

Accrued interest receivable

2,233


2,217

Deferred tax asset, net

4,341


4,025

Income taxes receivable

643


806

Bank-owned life insurance

13,088


12,884

Other real estate owned

-


661

Other assets

3,971


2,024

            Total assets

$            909,086


$            838,082





LIABILITIES AND STOCKHOLDERS' EQUITY




Deposits:




        Noninterest-bearing

$            133,480


$            126,760

        Interest-bearing

561,941


481,105

            Total deposits

695,421


607,865

Federal Home Loan Bank advances

68,100


83,100

Securities sold under agreements to repurchase

3,175


3,404

Other borrowed funds

1,135


1,156

Accrued interest payable

578


455

Deferred compensation liability

4,925


4,685

Other liabilities

7,649


4,109

            Total liabilities

780,983


704,774





Stockholders' Equity:




    Common stock

91


95

    Additional paid-in capital

84,540


90,188

    Retained earnings

48,129


47,352

    Accumulated other comprehensive (loss) income

(337)


68

    Unearned compensation - ESOP

(4,320)


(4,395)

            Total stockholders' equity

128,103


133,308

            Total liabilities and stockholders' equity

$            909,086


$            838,082





Asset Quality Data:




Total non-performing assets

2,954


4,325

Total non-performing loans

2,954


3,621

Non-performing loans to total loans

0.41%


0.55%

Non-performing assets to total assets

0.32%


0.52%

Allowance for loan losses to non-performing loans

232.09%


177.86%

Allowance for loan losses to total loans

0.94%


0.98%

 

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)







Three months ended


Six months ended






June 30,


June 30,






2013


2012


2013


2012






(unaudited)


(unaudited)

Interest and dividend income:








    Interest and fees on loans

$        6,682


$       5,791


$      13,181


$      11,668

    Interest on taxable debt securities

424


371


906


981

    Dividends

7


18


14


28

    Other interest income

23


40


40


53

            Total interest and dividend income

7,136


6,220


14,141


12,730

Interest expense:








    Interest on deposits

1,040


1,031


2,072


1,969

    Interest on Federal Home Loan Bank advances

173


244


357


542

    Interest on securities sold under agreements to repurchase

1


3


2


6

    Interest on other borrowed funds

8


10


17


21

            Total interest expense

1,222


1,288


2,448


2,538

            Net interest and dividend income

5,914


4,932


11,693


10,192

Provision for loan losses

100


825


427


1,306

            Net interest and dividend income after provision








              for loan losses

5,814


4,107


11,266


8,886

Noninterest income:








    Customer service fees

231


200


458


397

    Income from bank-owned life insurance

95


109


199


211

    Net gain on sales of loans

449


737


800


1,315

    Net gain on sales and calls of securities

4


-


34


-

    Loan servicing fee income

128


121


298


193

    Vendor loss experience refund

-


100


100


100

    Gain on sale of easement rights

-


208


-


208

    Other income

1


12


25


27

            Total noninterest income 

908


1,487


1,914


2,451

Noninterest expense:








    Salaries and employee benefits

3,720


3,188


7,250


6,316

    Director compensation

196


116


437


243

    Occupancy expense

218


196


447


379

    Equipment expense

150


105


298


209

    Deposit insurance

147


128


274


253

    Data processing

662


511


1,322


958

    Professional fees

195


213


406


531

    Marketing

239


239


448


478

    Recruitment fees

103


13


103


50

    Other expense

531


465


976


841

            Total noninterest expense

6,161


5,174


11,961


10,258

            Income before income tax expense

561


420


1,219


1,079

Income tax expense

200


134


442


346

                Net income

$           361


$          286


$           777


$           733

    Earnings per share








                Basic

$          0.04


$         0.03


$          0.09


$          0.08

                Diluted

$          0.04


$         0.03


$          0.09


$          0.08

Return on average assets

0.17%


0.16%


0.18%


0.21%

Return on average equity

1.12%


0.87%


1.20%


1.12%

Interest rate spread

2.57%


2.49%


2.61%


2.68%

Net interest margin

2.80%


2.79%


2.86%


2.97%

Efficiency ratio

90.30%


80.61%


87.90%


81.14%

 

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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