BELMONT, Mass., Feb. 14, 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 $485,000, or $0.05 per basic and diluted share, for the quarter ended December31, 2012, compared to a net loss of $1.3 million in the fourth quarter of 2011. For the twelve months ended December 31, 2012, the Company reported net income of $1.4 million, or $0.16 per basic and diluted share, as compared to net income of $299,000 for the same period in 2011.
Robert M. Mahoney, President and Chief Executive Officer, said, "I was pleased with the fourth quarter results. Core deposit growth was strong and gains from loan sales continue to contribute to our improving profits."
Net interest and dividend income before provision for loan losses for the quarter ended December 31, 2012 was $5.9 million as compared to $4.9 million for the quarter ended December 31, 2011, an 18.9% increase. Provision for loan losses for the quarter ended December 31, 2012 was $696,000 as compared to a provision for loan losses of $747,000 for the quarter ended December 31, 2011, a 6.8% decrease. This resulted in a $984,000 or 23.6% increase in net interest and dividend income after provision for loan losses. Net interest and dividend income before provision for loan losses for the twelve months ended December 31, 2012 was $21.7 million as compared to $16.6 million for the twelve months ended December 31, 2011, a 30.9% increase. Provision for loan losses for the twelve months ended December 31, 2012 was $2.7 million, as compared to $2.3 million for the twelve months ended December 31, 2011, a 19.8% increase. This resulted in a $4.7 million or 32.6% increase in net interest and dividend income after provision for loan losses.
Noninterest income for the quarter ended December 31, 2012 totaled $1.6 million as compared to $549,000 for the quarter ended December 31, 2011. The majority of this increase is attributable to an additional $859,000 in net gains on sales of loans. For the twelve months ended December 31, 2012, noninterest income amounted to $4.7 million as compared to $4.5 million for the twelve months ended December 31, 2011. This increase was primarily the result of an increase in net gains on sales of loans of $2.1 million, an increase of $207,000 in customer service fees, and an increase in other income of $660,000, primarily attributable to an increase in loan servicing fee income of 404,000 and $208,000in noninterest income related to the sale of easement rights. This was partially offset by a $2.7 million decrease in net realized gains on investment securities as a result of the sale of the entire portfolio of marketable equity securities in the first quarter of 2011.
Noninterest expense for the quarter ended December 31, 2012 amounted to $5.9 million as compared to $6.6 million for the quarter ended December 31, 2011. This decrease was driven by a decrease in charitable contributions as the Company made a $2.0 million contribution to the Belmont Savings Bank Foundation in 2011, partially offset by an increase in salary and employee benefits of $1.0 million. Noninterest expense for the twelve months ended December 31, 2012 amounted to $21.5 million as compared to $18.2 million for the twelve months ended December 31, 2011. This increase in expenses was 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, public company costs and equity based incentive compensation. These were partially offset by a decrease in charitable contributions.
Since December 31, 2011, the Company's assets have increased by $169.1 million or 25.3% bringing total assets to $838.1 million. The Company experienced net loan growth, excluding loans held for sale, of $144.3 million, or 28.3%, from December31, 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 $94.8 million, $9.8 million, $9.6 million $16.9 million and $13.9 million, respectively. The loan growth was funded through growth in deposits.
At December31, 2012, deposits totaled $607.9million, an increase of $177.2million or 41.1% from December31, 2011. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, "It was an excellent year in deposit growth due to the selling efforts of our Commercial Real Estate team, the momentum of our Small Business Bankers and the opening of our new supermarket branch in Waltham. I am particularly pleased with the growth in noninterest-bearing checking account balances (+127%) which indicates that core banking relationships are growing rapidly."
The allowance for loan losses in total and as a percentage of total loans as of December 31, 2012 equaled $6.4million and 0.98%, respectively, as compared to $4.8million and 0.93%, respectively, as of December31, 2011. Total non-performing assets were $4.3 million, or 0.52% of total assets as of December 31, 2012, as compared to $4.4 million, or 0.66% of total assets as of December 31, 2011.
Company Profile
BSB Bancorp, Inc. is headquartered in Belmont, Massachusetts and is the holding company for Belmont Savings Bank and BSB Funding Corporation. 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 Section27A of the Securities Act of 1933 and Section21E 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) | ||||||||
December 31, 2012 | December 31, 2011 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ 1,433 | $ 773 | ||||||
Interest-bearing deposits in other banks | 51,279 | 22,022 | ||||||
Cash and cash equivalents | 52,712 | 22,795 | ||||||
Interest-bearing time deposits with other banks | 119 | 119 | ||||||
Investments in available-for-sale securities | 22,621 | - | ||||||
Investments in held-to-maturity securities, at cost | 63,984 | 89,391 | ||||||
Federal Home Loan Bank stock, at cost | 7,627 | 8,038 | ||||||
Loans held-for-sale | 11,205 | 15,877 | ||||||
Loans, net of allowance for loan losses of $6,440 as of | ||||||||
12/31/2012 (unaudited) and $4,776 as of 12/31/2011 | 654,295 | 509,964 | ||||||
Premises and equipment, net | 2,902 | 2,000 | ||||||
Accrued interest receivable | 2,217 | 2,185 | ||||||
Deferred tax asset, net | 4,025 | 4,315 | ||||||
Income taxes receivable | 806 | - | ||||||
Bank-owned life insurance | 12,884 | 12,420 | ||||||
Other real estate owned | 661 | - | ||||||
Other assets | 2,024 | 1,901 | ||||||
Total assets | $ 838,082 | $ 669,005 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ 126,760 | $ 55,900 | ||||||
Interest-bearing | 481,105 | 374,754 | ||||||
Total deposits | 607,865 | 430,654 | ||||||
Federal Home Loan Bank advances | 83,100 | 95,600 | ||||||
Securities sold under agreements to repurchase | 3,404 | 2,985 | ||||||
Other borrowed funds | 1,156 | 1,502 | ||||||
Accrued interest payable | 455 | 177 | ||||||
Deferred compensation liability | 4,685 | 4,173 | ||||||
Income taxes payable | - | 121 | ||||||
Other liabilities | 4,109 | 2,287 | ||||||
Total liabilities | 704,774 | 537,499 | ||||||
Stockholders' Equity: | ||||||||
Common stock | 96 | 92 | ||||||
Additional paid-in capital | 90,187 | 90,016 | ||||||
Retained earnings | 47,352 | 45,951 | ||||||
Accumulated other comprehensive income (loss) | 68 | (5) | ||||||
Unearned compensation - ESOP | (4,395) | (4,548) | ||||||
Total stockholders equity | 133,308 | 131,506 | ||||||
Total liabilities and stockholders' equity | $ 838,082 | $ 669,005 | ||||||
Asset Quality Data: | ||||||||
Total non-performing assets | 4,325 | 4,427 | ||||||
Total non-performing loans | 3,621 | 4,427 | ||||||
Non-performing loans to total loans | 0.55% | 0.86% | ||||||
Non-performing assets to total assets | 0.52% | 0.66% | ||||||
Allowance for loan losses to non-performing loans | 177.86% | 107.88% | ||||||
Allowance for loan losses to total loans | 0.98% | 0.93% | ||||||
BSB BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) | ||||||||||||
Three months ended | Twelve months ended | |||||||||||
December 31, | December 31, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Interest and dividend income: | ||||||||||||
Interest and fees on loans | $ 6,537 | $ 5,457 | $ 24,568 | $ 19,525 | ||||||||
Interest on taxable debt securities | 584 | 674 | 2,124 | 2,536 | ||||||||
Dividends | 9 | 6 | 47 | 115 | ||||||||
Other interest income | 13 | 30 | 85 | 46 | ||||||||
Total interest and dividend income | 7,143 | 6,167 | 26,824 | 22,222 | ||||||||
Interest expense: | ||||||||||||
Interest on deposits | 1,076 | 901 | 4,125 | 3,656 | ||||||||
Interest on Federal Home Loan Bank advances | 204 | 331 | 958 | 1,892 | ||||||||
Interest on securities sold under agreements to repurchase | 1 | 4 | 8 | 16 | ||||||||
Interest on other borrowed funds | 10 | 12 | 42 | 81 | ||||||||
Total interest expense | 1,291 | 1,248 | 5,133 | 5,645 | ||||||||
Net interest and dividend income | 5,852 | 4,919 | 21,691 | 16,577 | ||||||||
Provision for loan losses | 696 | 747 | 2,736 | 2,285 | ||||||||
Net interest and dividend income after provision for loan losses | 5,156 | 4,172 | 18,955 | 14,292 | ||||||||
Noninterest income: | ||||||||||||
Customer service fees | 217 | 200 | 844 | 637 | ||||||||
Income from bank-owned life insurance | 123 | 124 | 439 | 435 | ||||||||
Net gain on sales of loans | 1,013 | 154 | 2,520 | 462 | ||||||||
Net gain on sales and calls of securities | 59 | 3 | 59 | 2,790 | ||||||||
Other income | 162 | 68 | 843 | 183 | ||||||||
Total noninterest income | 1,574 | 549 | 4,705 | 4,507 | ||||||||
Noninterest expense: | ||||||||||||
Salaries and employee benefits | 3,813 | 2,814 | 13,508 | 10,203 | ||||||||
Director fees | 73 | 69 | 345 | 295 | ||||||||
Occupancy expense | 215 | 180 | 801 | 749 | ||||||||
Equipment expense | 131 | 102 | 450 | 350 | ||||||||
Deposit insurance | 134 | 125 | 500 | 456 | ||||||||
Data processing | 565 | 334 | 1,881 | 1,059 | ||||||||
Professional fees | 305 | 330 | 1,036 | 818 | ||||||||
Marketing | 185 | 233 | 928 | 930 | ||||||||
Contribution to Belmont Savings Bank Foundation | - | 1,999 | - | 1,999 | ||||||||
Other expense | 519 | 388 | 2,097 | 1,346 | ||||||||
Total noninterest expense | 5,940 | 6,574 | 21,546 | 18,205 | ||||||||
Income (loss) before income tax expense (benefit) | 790 | (1,853) | 2,114 | 594 | ||||||||
Income tax expense (benefit) | 305 | (516) | 713 | 295 | ||||||||
Net income (loss) | $ 485 | $ (1,337) | $ 1,401 | $ 299 | ||||||||
Earnings per share | ||||||||||||
Basic | $ 0.05 | $ 0.16 | ||||||||||
Diluted | $ 0.05 | $ 0.16 | ||||||||||
$ 0.02 | $ 0.11 | |||||||||||
Performance Ratios: | ||||||||||||
Return on average assets | 0.23% | -0.82% | 0.19% | 0.05% | ||||||||
Return on average equity | 1.45% | -4.13% | 1.06% | 0.44% | ||||||||
Interest rate spread | 2.63% | 2.88% | 2.69% | 2.91% | ||||||||
Net interest margin | 2.90% | 3.16% | 2.97% | 3.11% | ||||||||
Efficiency ratio | 79.99% | 120.23% | 81.62% | 86.35% | ||||||||
Contact: | Robert M. Mahoney | |
President and Chief Executive Officer | ||
Phone: | 617-484-6700 | |
Email: | robert.mahoney@belmontsavings.com |
SOURCE BSB Bancorp, Inc.
