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.

SOURCE BSB Bancorp, Inc.