BSB Bancorp, Inc. Reports Third Quarter Results

BELMONT, Mass., Oct. 25, 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 $183,000, or $0.02 per basic and diluted share, for the quarter ended September 30, 2012, compared to net income of $295,000 in the third quarter of 2011.  For the nine months ended September 30, 2012, the Company reported net income of $916,000, or $0.11 per basic and diluted share, as compared to net income of $1.6 million for the same period in 2011.

Robert M. Mahoney, President and Chief Executive Officer, said, "The third quarter of 2012 saw a continuation of our loan and deposit growth. Commercial real estate and residential loan demand were particularly good and we were pleased to continue our core deposit growth."

Net interest and dividend income before provision for loan losses for the quarter ended September 30, 2012 was $5.6 million as compared to $4.3 million for the quarter ended September 30, 2011, a 32.0% increase.  This increase in net interest and dividend income was partially offset by the provision for loan losses of $734,000 for the quarter ended September 30, 2012 as compared to a provision for loan losses of $320,000 for the quarter ended September 30, 2011, a 24.1% increase. This resulted in a $955,000 or 24.1% increase in net interest and dividend income after provision for loan losses.  Net interest and dividend income before provision for loan losses for the nine months ended September 30, 2012 was $15.8 million as compared to $11.7 million for the quarter ended September 30, 2011, a 35.9% increase. This increase in net interest and dividend income was partially offset by the provision for loan losses of $2.0 million for the nine months ended September 30, 2012, as compared to $1.5 million for the nine months ended September 30, 2011, a 32.6% increase.  This resulted in a $3.7 million or 36.4% increase in net interest and dividend income after provision for loan losses.

Non-interest income for the quarter ended September 30, 2012 totaled $680,000 as compared to $443,000 for the third quarter of 2011. The majority of this increase is attributable to an additional $140,000 in gains on auto loan sales and $120,000 related to auto loan servicing fees earned. For the nine months ended September 30, 2012, non-interest income amounted to $3.1 million as compared to $4.0 million for the nine months ended September 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 the entire portfolio of marketable equity securities, partially offset by a $1.2 million increase in net gains on sales of residential and auto loans during the nine months ended September 30, 2012.

Non-interest expense for the quarter ended September 30, 2012 amounted to $5.3 million as compared to $4.0 million for the third quarter of 2011.  Non-interest expense for the nine months ended September 30, 2012 amounted to $15.6 million as compared to $11.6 million from the same period in 2011.  These increases in expenses 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 $153.3 million or 22.9% bringing total assets to $822.3 million. The Company experienced net loan growth, excluding loans held for sale, of $147.4 million, or 28.9%, 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 $77.2 million, $6.6 million, $38.0 million $12.1 million and $14.0 million, respectively. The loan growth was funded through growth in deposits.

At September 30, 2012, deposits totaled $578.6 million, an increase of $148.0 million or 34.4% from December 31, 2011.  Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "Deposit growth continued in Q3 as our retail, small business and commercial real estate teams have had ongoing success with the Platinum Blue checking and savings relationship products. A new advertising campaign, technology offerings and the expansion of our Waltham Supermarket branch, further contributed to the results."

The allowance for loan losses in total and as a percentage of total loans as of September 30, 2012 equaled $6.0 million and 0.91%, respectively, as compared to $4.8 million and 0.93%, respectively, as of December 31, 2011.  Total non-performing assets outstanding and as a percentage of total assets as of September 30, 2012 were $2.8 million and 0.34%, respectively, as compared to $4.4 million and 0.66%, respectively, as of December 31, 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 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 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)














September 30, 2012


December 31, 2011






(unaudited)



ASSETS






Cash and due from banks


$                1,438


$              1,196

Interest-bearing deposits in other banks


31,635


21,599

     Cash and cash equivalents


33,073


22,795

Interest-bearing time deposits with other banks


119


119

Investments in available-for-sale securities


22,765


-

Investments in held-to-maturity securities, at cost


71,992


89,391

Federal Home Loan Bank stock, at cost


7,627


8,038

Loans held-for-sale


4,042


15,877

Loans, net of allowance for loan losses of $5,979 as of 





     9/30/2012 (unaudited) and $4,776 as of 12/31/2011


657,353


509,964

Premises and equipment, net


2,866


2,000

Accrued interest receivable


2,446


2,185

Deferred tax asset, net


4,243


4,315

Income taxes receivable


357


-

Bank-owned life insurance


12,761


12,420

Other real estate owned


661


-

Other assets


2,008


1,901




Total assets


$            822,313


$          669,005









LIABILITIES AND EQUITY





Deposits:







Noninterest-bearing


$            109,427


$            55,900



Interest-bearing


469,198


374,754




Total deposits


578,625


430,654

Federal Home Loan Bank advances


97,600


95,600

Securities sold under agreements to repurchase


3,193


2,985

Other borrowed funds


1,463


1,502

Accrued interest payable


370


177

Deferred compensation liability


4,523


4,173

Income taxes payable


-


121

Other liabilities


3,841


2,287




Total liabilities


689,615


537,499

Stockholders' Equity:






Common stock


92


92


Additional paid-in capital


90,039


90,016


Retained earnings


46,867


45,951


Accumulated other comprehensive income (loss)


134


(5)


Unearned compensation - ESOP


(4,434)


(4,548)




Total equity


132,698


131,506




Total liabilities and stockholders' equity


$            822,313


$          669,005

Asset Quality Data:





Total non-performing assets


2,815


4,427

Total non-performing loans


2,128


4,427

Non-performing loans to total loans


0.32%


0.86%

Non-performing assets to total assets


0.34%


0.66%

Allowance for loan losses to non-performing loans


280.97%


107.88%

Allowance for loan losses to total loans


0.91%


0.93%


 


BSB BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)
















Three months ended


Nine months ended







September 30,


September 30,







2012


2011


2012


2011







(unaudited)


(unaudited)

Interest and dividend income:










Interest and fees on loans


$        6,364


$       4,908


$      18,032


$     14,068


Interest on taxable debt securities


559


701


1,540


1,862


Dividends


10


5


38


109


Other interest income


18


6


72


16




Total interest and dividend income


6,951


5,620


19,682


16,055

Interest expense:










Interest on deposits


1,080


905


3,049


2,755


Interest on Federal Home Loan Bank advances


211


421


753


1,562


Interest on securities sold under agreements to repurchase


1


3


7


12


Interest on other borrowed funds


11


12


32


69




Total interest expense


1,303


1,341


3,841


4,398




Net interest and dividend income


5,648


4,279


15,841


11,657

Provision for loan losses


734


320


2,040


1,538




Net interest and dividend income after provision













for loan losses


4,914


3,959


13,801


10,119

Noninterest income:










Customer service fees


230


187


628


437


Income from bank-owned life insurance


105


115


316


311


Net gain on sales of loans


191


91


1,506


308


Net gain on sales and calls of securities


-


-


-


2,788


Other income


154


50


681


115




Total noninterest income 


680


443


3,131


3,959

Noninterest expense:










Salaries and employee benefits


3,312


2,555


9,697


7,388


Director fees


82


68


272


227


Occupancy expense


207


188


586


569


Equipment expense


110


87


319


248


Deposit insurance


114


106


367


331


Data processing


472


248


1,316


725


Professional fees


200


182


731


488


Marketing


265


214


743


697


Other expense


586


346


1,576


957




Total noninterest expense


5,348


3,994


15,607


11,630




Income before income tax expense


246


408


1,325


2,448

Income tax expense


63


113


409


812





Net income


$           183


$          295


$           916


$       1,636


Earnings per share













Basic and diluted


$          0.02




$          0.11







Diluted


$          0.02




$          0.11
















Performance Ratios:









Return on average assets


0.09%


0.21%


0.17%


0.41%

Return on average equity


0.55%


2.49%


0.93%


4.64%

Interest rate spread


2.69%


3.00%


2.68%


2.81%

Net interest margin


2.98%


3.16%


2.96%


3.09%

Efficiency ratio


84.51%


84.58%


82.26%


74.48%

 

 

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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