BSB Bancorp, Inc. Reports Third Quarter Results - Crosses $1 Billion in Assets

24 Oct, 2013, 17:00 ET from BSB Bancorp, Inc.

BELMONT, Mass., Oct. 24, 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 $538,000, or $0.06 per basic and diluted share, for the quarter ended September 30, 2013, compared to net income of $183,000, or $0.02 per basic and diluted share in the third quarter of 2012.  For the nine months ended September 30, 2013, the Company reported net income of $1.3 million, or $0.15 per basic and diluted share, as compared to net income of $916,000, or $0.11 per basic and diluted share for the same period in 2012.

Robert M. Mahoney, President and Chief Executive Officer, said, "During the third quarter we experienced continued growth in loans, core deposits and earnings. The market is quite receptive to knowledgeable, customer centric community bankers.  Credit quality is good, as our local economy continues to improve and we are very proud to have crossed the $1 billion asset mark."

NET INTEREST AND DIVIDEND INCOME

Net interest and dividend income before provision for loan losses for the quarter ended September 30, 2013 was $6.8 million as compared to $5.6 million for the quarter ended September 30, 2012, a 19.9% increase. The provision for loan losses for the quarter ended September 30, 2013 was $438,000 as compared to a provision for loan losses of $734,000 for the quarter ended September 30, 2012, a 40.3% decrease. This resulted in a $1.4 million or 28.9% increase in net interest and dividend income after provision for loan losses for the quarter ended September 30, 2013 as compared to the quarter ended September 30, 2012.  Net interest and dividend income before provision for loan losses for the nine months ended September 30, 2013 was $18.5 million as compared to $15.8 million for the nine months ended September 30, 2012, a 16.6% increase. The provision for loan losses for the nine months ended September 30, 2013 was $865,000, as compared to $2.0 million for the nine months ended September 30, 2012, a 57.6% decrease. This resulted in a $3.8 million or 27.5% increase in net interest and dividend income after provision for loan losses period over period.

NONINTEREST INCOME

Noninterest income for the quarter ended September 30, 2013 was $890,000 as compared to $679,000 for the quarter ended September 30, 2012, an increase of $211,000, or 31.1%. This increase was primarily driven by an increase in loan servicing fee income of $55,000 and an increase in other income of $134,000. The increase in other income was primarily driven by an increase in vendor loss experience refunds of $75,000. For the nine months ended September 30, 2013, non-interest income was $2.8 million as compared to $3.1 million for the nine months ended September 30, 2012. This decrease of $327,000, or 10.4%, was primarily driven by a decrease in gains on sales of loans of $538,000, partially offset by an increase in loan servicing fee income of $159,000 and an increase in customer service fees of $97,000.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended September 30, 2013 was $6.4 million as compared to $5.3 million for the quarter ended September 30, 2012.  This increase of $1.0 million, or 19.2%, was largely driven by an increase in salaries and employee benefits of $592,000, which increased $309,000 as a result of the 2012 Equity Incentive Plan that was adopted in the fourth quarter of 2012. Data processing expenses increased by $186,000 quarter over quarter, driven largely by increases in core and online banking costs as our customer base and transaction volume continue to see growth. Director compensation increased $144,000 primarily driven by an increase of $123,000 related to the 2012 Equity Incentive Plan. Noninterest expense for the nine months ended September 30, 2013 was $18.3 million as compared to $15.6 million for the nine months ended September 30, 2012. This increase of $2.7 million, or 17.5% was primarily driven by increases in salaries and employee benefits and director compensation of $1.5 million and $337,000, respectively, 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 also increased by $550,000, driven largely by increases in core and online banking costs.

BALANCE SHEET

At September 30, 2013, total assets were $1.0 billion, an increase of $185.0 million or 22.1% from December 31, 2012. Investments in held-to-maturity securities have increased by $57.4 million or 89.8% from December 31, 2012. The Company also experienced net loan growth, excluding loans held for sale, of $141.2 million, or 21.6%, from December 31, 2012. Commercial real estate, residential mortgage, home equity, and indirect auto loans increased by $44.2 million, $70.5 million, $13.3 million and $12.0 million, respectively. The asset growth was funded by deposits and borrowings from the Federal Home Loan Bank.

 At September 30, 2013, deposits totaled $727.0 million, an increase of $119.1 million or 19.6% from December 31, 2012. Core deposits, which we consider to include all deposits other than CD's and brokered CD's, increased by $113.3 million from December 31, 2012. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "Deposit growth continued this quarter as our two new InStore branches in Cambridge and Newton were opened in June and August. In addition, the growing deposit relationships of new and existing commercial and small business customers, along with the momentum of our municipal banking program, contributed to this consistent, strong performance."

Total stockholders' equity decreased by $4.2 million from $133.3 million as of December 31, 2012 to $129.1 million as of September 30, 2013. This decrease is primarily the result of the Stock Repurchase Program that was adopted on December 12, 2012. During the nine months ended September 30, 2013, the Company purchased 476,622 shares of its common stock for $6.5 million and completed the Stock Repurchase Program. This was partially offset by earnings of $1.3 million.

ASSET QUALITY

The allowance for loan losses in total and as a percentage of total loans as of September 30, 2013 equaled $7.3 million and 0.92%, respectively, as compared to $6.4 million and 0.98%, respectively, as of December 31, 2012.  Total non-performing assets were $2.6 million, or 0.25% of total assets, as of September 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 seven full-service branch offices located in Belmont, Watertown, Cambridge, Newton 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.

Contact:

Robert M. Mahoney

President and Chief Executive Officer

Phone:

617-484-6700

Email:

robert.mahoney@belmontsavings.com

 

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

September 30, 2013

December 31, 2012

(unaudited)

ASSETS

Cash and due from banks

$                1,946

$                1,433

Interest-bearing deposits in other banks

46,870

51,279

Cash and cash equivalents

48,816

52,712

Interest-bearing time deposits with other banks

119

119

Investments in available-for-sale securities

21,804

22,621

Investments in held-to-maturity securities, at cost

121,426

63,984

Federal Home Loan Bank stock, at cost

7,650

7,627

Loans held-for-sale

-

11,205

Loans, net of allowance for loan losses of $7,325 as of 

9/30/2013 (unaudited) and $6,440 as of 12/31/2012

795,467

654,295

Premises and equipment, net

3,301

2,902

Accrued interest receivable

2,176

2,217

Deferred tax asset, net

4,951

4,025

Income taxes receivable

-

806

Bank-owned life insurance

13,203

12,884

Other real estate owned

-

661

Other assets

4,118

2,024

Total assets

$         1,023,031

$            838,082

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Noninterest-bearing

$            134,145

$            126,760

Interest-bearing

592,857

481,105

Total deposits

727,002

607,865

Federal Home Loan Bank advances

150,600

83,100

Securities sold under agreements to repurchase

2,552

3,404

Other borrowed funds

1,124

1,156

Accrued interest payable

625

455

Deferred compensation liability

5,096

4,685

Income taxes payable

261

-

Other liabilities

6,622

4,109

Total liabilities

893,882

704,774

Stockholders' Equity:

Common stock

91

95

Additional paid-in capital

84,987

90,188

Retained earnings

48,667

47,352

Accumulated other comprehensive (loss) income

(314)

68

Unearned compensation - ESOP

(4,282)

(4,395)

Total stockholders' equity

129,149

133,308

Total liabilities and stockholders' equity

$         1,023,031

$            838,082

Asset Quality Data:

Total non-performing assets

2,590

4,325

Total non-performing loans

2,590

3,621

Non-performing loans to total loans

0.32%

0.55%

Non-performing assets to total assets

0.25%

0.52%

Allowance for loan losses to non-performing loans

282.81%

177.86%

Allowance for loan losses to total loans

0.92%

0.98%

 

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

Three months ended

Nine months ended

September 30,

September 30,

2013

2012

2013

2012

(unaudited)

(unaudited)

Interest and dividend income:

Interest and fees on loans

$        7,283

$       6,364

$      20,465

$      18,032

Interest on taxable debt securities

684

559

1,589

1,540

Dividends

7

10

21

38

Other interest income

21

18

61

72

Total interest and dividend income

7,995

6,951

22,136

19,682

Interest expense:

Interest on deposits

1,041

1,080

3,112

3,049

Interest on Federal Home Loan Bank advances

173

211

531

753

Interest on securities sold under agreements to repurchase

1

1

4

7

Interest on other borrowed funds

8

11

25

32

Total interest expense

1,223

1,303

3,672

3,841

Net interest and dividend income

6,772

5,648

18,464

15,841

Provision for loan losses

438

734

865

2,040

Net interest and dividend income after provision

 for loan losses

6,334

4,914

17,599

13,801

Noninterest income:

Customer service fees

252

216

710

613

Income from bank-owned life insurance

114

105

313

316

Net gain on sales of loans

168

191

968

1,506

Net gain on sales and calls of securities

-

-

34

-

Loan servicing fee income

192

137

489

330

Other income

164

30

290

366

Total noninterest income 

890

679

2,804

3,131

Noninterest expense:

Salaries and employee benefits

3,871

3,279

11,122

9,595

Director compensation

257

113

693

356

Occupancy expense

238

207

685

586

Equipment expense

156

110

454

319

Deposit insurance

156

114

430

367

Data processing

717

531

2,039

1,489

Professional fees

216

200

622

731

Marketing

214

265

662

743

Other expense

548

528

1,626

1,421

Total noninterest expense

6,373

5,347

18,333

15,607

Income before income tax expense

851

246

2,070

1,325

Income tax expense

313

63

755

409

Net income

$           538

$          183

$        1,315

$           916

Earnings per share

Basic

$          0.06

$         0.02

$          0.15

$          0.11

Diluted

$          0.06

$         0.02

$          0.15

$          0.11

Return on average assets

0.22%

0.09%

0.20%

0.17%

Return on average equity

1.67%

0.55%

1.35%

0.93%

Interest rate spread

2.70%

2.72%

2.64%

2.70%

Net interest margin

2.89%

3.00%

2.87%

2.98%

Efficiency ratio

83.18%

84.51%

86.20%

82.26%

SOURCE BSB Bancorp, Inc.



RELATED LINKS

http://www.belmontsavings.com