Attached files
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| 8-K - FORM 8-K EARNINGS RELEASE - BSB Bancorp, Inc. | form8k_072612.htm |
For Immediate Release
Date: July 26, 2012
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Contact:
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Robert M. Mahoney
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President and Chief Executive Officer
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Phone:
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617-484-6700
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Email:
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robert.mahoney@belmontsavings.com
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BSB Bancorp, Inc. Reports Second Quarter Results
BELMONT, MA, July 26, 2012 (PR Newswire) - 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 $286,000, or $0.03 per diluted share, for the quarter ended June 30, 2012, compared to a net loss of $188,000 in the second quarter of 2011. For the six months ended June 30, 2012, the Company reported net income of $733,000, or $0.08 per diluted share, as compared to net income of $1.3 million for the same period in 2011.
Robert M. Mahoney, President and Chief Executive Officer, said, “The second quarter of 2012 saw a continuation of our loan and deposit growth. Commercial real estate loan demand was particularly good and we were pleased to achieve solid checking and core deposit growth. We also had significant net gains on loan sales during the quarter, which augmented non-interest income. In May, we also opened our first supermarket branch in Waltham.”
Net interest and dividend income before provision for loan losses for the quarter ended June 30, 2012 increased $1.1 million or 28.2% as compared to the quarter ended June 30, 2011. This increase in net interest and dividend income was partially offset by an increase in the provision for loan losses of $83,000 resulting in a $1.0 million or 32.2% increase in net interest and dividend income after provision for loan losses. Net interest and dividend income before provision for loan losses for the six months ended June 30, 2012 increased $2.8 million or 38.1% as compared to the six months ended June 30, 2011. This increase in net interest and dividend income was partially offset by an increase in the provision for loan losses of $88,000 resulting in a $2.7 million or 44.3% increase in net interest and dividend income after provision for loan losses.
The Company’s net interest margin decreased to 2.79% for the quarter ended June 30, 2012, from 3.00% for the quarter ended June 30, 2011, a decrease of 21 basis points or 7.0%. The decrease in the net interest margin was primarily related to a higher than normal balance of short-term interest bearing cash equivalents with generally lower yields and competitive market pricing for loans and deposits. For the six months ended June 30, 2012, the Company’s net interest margin increased to 3.00% from 2.99%.
Non-interest income for the quarter ended June 30, 2012 totaled $1.5 million as compared to $412,000 for the second quarter of 2011. The increase was primarily the result of an additional $590,000 in gains on loan sales, made up of residential mortgages and indirect auto loans. In addition, the second quarter of 2012 included $208,000 in non-interest income related to the sale of easement rights. For the six months ended June 30, 2012, non-interest income amounted to $2.5 million as compared to $3.5 million for the six months ended June 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 our entire portfolio of marketable equity securities, partially offset by a $1.1 million increase in net gain on sales of loans during the six months ended June 30, 2012.
Non-interest expense for the quarter ended June 30, 2012 amounted to $5.2 million as compared to $3.9 million for the second quarter of 2011. Non-interest expense for the six months ended June 30, 2012 amounted to $10.3 million, an increase of $2.6 million from the same period in 2011. These increases 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 $86.4 million or 12.9% to $755.4 million. The Company experienced net loan growth, excluding loans held for sale, of $82.9 million, or 16.2%, from December 31, 2011, which was primarily the result of increases to the commercial real estate, residential mortgage, home equity, and commercial loan portfolios, which have increased by $56.7 million, $11.3 million, $9.2 million and $4.1 million, respectively. The loan growth was funded through growth in deposits.
At June 30, 2012, deposits totaled $537.7 million, an increase of $107.0 million or 24.8% from December 31, 2011. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, “This deposit growth is due to: (1) continued investment in local marketing and advertising, (2) ongoing momentum in our Small Business Banking and Commercial Real Estate businesses, (3) the opening of our new supermarket branch, and (4) an $8.5 million short-term deposit transaction crossing over quarter end.”
The allowance for loan losses in total and as a percentage of total loans as of June 30, 2012 equaled $5.4 million and 0.90%, respectively, as compared to $4.8 million and 0.93%, respectively, as of December 31, 2011. The Company recorded a provision for loan losses of $825,000 for the quarter ended June 30, 2012 as compared to $742,000 for the quarter ended June 30, 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 NASD 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)
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June 30, 2012
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December 31, 2011
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(unaudited)
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ASSETS
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Cash and due from banks
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$ 1,243
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$ 1,196
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Interest-bearing deposits in other banks
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53,434
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21,599
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Cash and cash equivalents
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54,677
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22,795
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Interest-bearing time deposits with other banks
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119
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119
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Investments in held-to-maturity securities, at cost
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75,061
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89,391
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Federal Home Loan Bank stock, at cost
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7,627
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8,038
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Loans held for sale
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616
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15,877
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Loans, net of allowance for loan losses of $5,360 as of
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June 30, 2012 (unaudited) and $4,776 as of December 31, 2011
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592,828
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509,964
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Premises and equipment, net
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2,431
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2,000
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Accrued interest receivable
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2,122
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2,185
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Deferred tax asset, net
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4,315
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4,315
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Income taxes receivable
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416
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-
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Bank-owned life insurance
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12,656
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12,420
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Other assets
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2,503
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1,901
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Total assets
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$ 755,371
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$ 669,005
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LIABILITIES AND EQUITY
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Deposits:
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Noninterest-bearing
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$ 98,561
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$ 55,900
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Interest-bearing
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439,096
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374,754
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Total deposits
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537,657
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430,654
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Federal Home Loan Bank advances
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71,100
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95,600
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Securities sold under agreements to repurchase
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3,234
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2,985
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Other borrowed funds
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1,476
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1,502
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Accrued interest payable
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288
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177
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Deferred compensation liability
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4,388
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4,173
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Income taxes payable
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-
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121
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Other liabilities
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4,901
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2,287
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Total liabilities
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623,044
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537,499
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Stockholders' Equity:
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Common stock; $0.01 par value, 100,000,000 shares authorized; 9,172,860 shares
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issued and outstanding at June 30, 2012 and December 31, 2011, respectively
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92
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92
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Additional paid-in capital
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90,028
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90,016
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Retained earnings
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46,684
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45,951
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Accumulated other comprehensive loss
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(5)
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(5)
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Unearned compensation - ESOP
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(4,472)
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(4,548)
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Total stockholders' equity
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132,327
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131,506
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Total liabilities and stockholders' equity
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$ 755,371
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$ 669,005
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Asset Quality Data:
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Total non-performing assets
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3,306
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4,427
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Total non-performing loans
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3,266
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4,427
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Non-performing loans to total loans
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0.55%
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0.86%
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Non-performing assets to total assets
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0.44%
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0.66%
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Allowance for loan losses to non-performing loans
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164.12%
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107.88%
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Allowance for loan losses to total loans
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0.90%
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0.93%
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BSB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
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Three months ended
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Six months ended
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June 30,
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June 30,
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2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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Interest and dividend income:
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Interest and fees on loans
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$ 5,791
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$ 4,774
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$ 11,668
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$ 9,160
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Interest on taxable debt securities
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371
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566
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981
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1,161
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Dividends
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18
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13
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28
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103
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Other interest income
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40
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8
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53
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10
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Total interest and dividend income
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6,220
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5,361
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12,730
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10,434
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Interest expense:
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Interest on deposits
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1,031
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962
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1,969
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1,850
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Interest on Federal Home Loan Bank advances
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244
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535
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542
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1,140
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Interest on securities sold under agreements to repurchase
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3
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4
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6
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9
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Interest on other borrowed funds
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10
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12
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21
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57
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Total interest expense
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1,288
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1,513
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2,538
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3,056
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Net interest and dividend income
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4,932
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3,848
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10,192
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7,378
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Provision for loan losses
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825
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742
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1,306
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1,218
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Net interest and dividend income after provision
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for loan losses
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4,107
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3,106
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8,886
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6,160
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Noninterest income:
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Customer service fees
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200
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141
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398
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250
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Income from bank-owned life insurance
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109
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88
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211
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196
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Net gain on sales of loans
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737
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147
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1,315
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217
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Net gain on sales and calls of securities
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-
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-
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-
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2,788
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Other income
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441
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36
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527
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65
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Total noninterest income
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1,487
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412
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2,451
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3,516
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Noninterest expense:
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Salaries and employee benefits
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3,229
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2,437
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6,384
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4,834
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Trustee fees
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83
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91
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190
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159
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Occupancy expense
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196
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172
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379
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381
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Equipment expense
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105
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83
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209
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161
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Deposit insurance
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128
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86
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253
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225
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Data processing
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454
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282
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844
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477
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Professional fees
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213
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179
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531
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306
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Marketing
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239
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260
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478
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482
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Other expense
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527
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326
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990
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612
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Total noninterest expense
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5,174
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3,916
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10,258
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7,637
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Income before income tax expense
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420
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(398)
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1,079
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2,039
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Income tax expense
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134
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(210)
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346
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698
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Net income
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$ 286
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$ (188)
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$ 733
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$ 1,341
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Basic and Diluted Earnings per Share
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$ 0.03
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N/A
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$ 0.08
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N/A
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Performance Ratios:
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Return on assets
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0.16%
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-0.14%
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0.22%
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0.52%
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Return on equity
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0.87%
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-1.60%
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1.12%
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5.73%
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Interest rate spread
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2.50%
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2.82%
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2.72%
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2.81%
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Net interest margin
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2.79%
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3.00%
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3.00%
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2.99%
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Efficiency ratio
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80.60%
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91.92%
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81.14%
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70.10%
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