BELMONT, Mass., April 20, 2017 /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 a 44% increase in net income
to $3.67 million or $0.40 per diluted share for the quarter ended
March 31, 2017 compared to net income of $2.54 million or $0.28 per diluted share for the quarter ended
March 31, 2016. This is the Bank's
15th consecutive quarter of earnings growth.
Robert M. Mahoney, President and
Chief Executive Officer, said, "We are off to a very good start in
2017. First quarter loan growth was strong and deposit growth
kept pace. Our local economy continues to exhibit growth in
population, real estate values and employment."
NET INTEREST AND DIVIDEND INCOME
Net interest and dividend income before provision for loan
losses for the quarter ended March 31,
2017 was $13.26 million as
compared to $11.28 million for the
quarter ended March 31, 2016 or a
17.6% increase. The provision for loan losses for the quarter ended
March 31, 2017 was $829,000 as compared to $599,000 for the quarter ended March 31, 2016 or a 38.4% increase. This resulted
in an increase of $1.75 million or
16.4% in net interest and dividend income after provision for loan
losses for the quarter ended March 31,
2017 as compared to the quarter ended March 31, 2016.
NONINTEREST INCOME
Noninterest income for the quarter ended March 31, 2017 was $630,000 as compared to $660,000 for the quarter ended March 31, 2016 or a decrease of 4.5%.
- Customer service fees decreased $43,000 or 19.1% primarily due to declines in NSF
and other fees.
- Net gains on sales of loans decreased $52,000 or 86.7% due to a lower number of units
sold.
- Other income increased by $42,000
or 140.0% primarily due to increases in the values of investments
held in a Rabbi Trust. Investments held in the Rabbi Trust are used
to fund the executive and director non-qualified deferred
compensation plan. Corresponding deferred compensation expense is
recorded within director compensation and salaries and employee
benefits.
NONINTEREST EXPENSE
Noninterest expense for the quarter ended March 31, 2017 was $7.48
million as compared to $7.25
million for the quarter ended March
31, 2016 or an increase of 3.1%.
- Director compensation increased $69,000 or 29.5% primarily due to increases in
the value of the securities held in a Rabbi Trust as discussed
above in other income.
- Deposit insurance expense increased by $122,000 or 43.6% primarily driven by asset
growth and the FDIC's new assessment methodology that was effective
for the quarter ended September 30,
2016.
- Data processing fees decreased by $188,000 or 21.3% as we renegotiated certain
contracts with service providers in late 2016.
- Professional fees increased by $54,000 or 23.1% primarily due to increased
attorneys fees.
- Marketing costs increased by $57,000, or 25.8% primarily due to increased
newspaper advertising as well as merchandising and promotions.
Our efficiency ratio improved to 53.8% for the quarter ended
March 31, 2017 from 60.7% for the
quarter ended March 31, 2016 as we
continue to grow the balance sheet and manage costs. Effectively
managing headcount has contributed to improvement in our efficiency
ratio. Since going public in the fourth quarter of 2011, we've
grown total assets from $669 million to
$2.29 billion, or an increase of 242%, while only increasing
full time equivalent employee headcount by 25 from 96 to 121 or
26.0%.
INCOME TAXES
We recorded a provision for income taxes of $1.92 million for the quarter ended
March 31, 2017, compared to a provision for income taxes of
$1.55 million for the quarter
ended March 31, 2016, reflecting effective tax rates of 34.4%
and 37.9%, respectively. The decrease in our effective tax rate was
driven by tax benefits received from stock based compensation
activity.
BALANCE SHEET
At March 31, 2017, total assets
were $2.29 billion, an increase of
$128.16 million or 5.9% from
$2.16 billion at December 31, 2016. The Company experienced net
loan growth of $117.61 million or
6.3% from December 31, 2016 to March
31, 2017. Residential 1-4 family real estate loans including
loans held for sale, commercial real estate loans and construction
loans increased by $94.55 million,
$31.25 million and $5.00 million, respectively. Partially offsetting
these increases was a decrease in indirect auto loans of
$9.46 million, driven by the
suspension of new originations due to current market conditions.
The asset growth was primarily funded by growth in deposits and
federal home loan bank advances.
At March 31, 2017, deposits totaled $1.57 billion, an increase of $96.45 million or 6.6% from $1.47 billion at December 31, 2016. Core
deposits, which we consider to include all deposits other than CD's
and brokered CD's, increased by $66.30
million from $1.13 billion at
December 31, 2016 to $1.20 billion at March 31,
2017. Hal R. Tovin, Executive
Vice President and Chief Operating Officer, said, "Our strong
deposit performance continued in Q1. We saw good growth in our
retail channel and continued success with our business banking
segment strategy, particularly our efforts with colleges and
universities."
Total stockholders' equity increased by $4.03 million from $160.92
million as of December 31,
2016 to $164.95 million as of
March 31, 2017. This increase is
primarily the result of earnings of $3.67
million and a $255,000
increase in additional paid-in capital related to stock-based
compensation.
ASSET QUALITY
The allowance for loan losses in total and as a percentage of
total loans as of March 31, 2017 was
$14.38 million and 0.73%,
respectively, as compared to $13.59 million and 0.73%, respectively, as
of December 31, 2016. For the quarter ended March 31, 2017, the Company recorded net charge
offs of $32,000, as compared to net
charge offs of $8,000 for the quarter
ended March 31, 2016. Total
non-performing assets were $2.29
million or 0.10% of total assets as of March 31, 2017 as compared to $1.82 million or 0.08% of total assets as of
December 31, 2016.
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, municipalities and businesses
through its six 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,
our ability to continue to increase loans and deposit growth,
legislative and regulatory changes that adversely affect the
businesses in which the Company is engaged, changes in the
securities market, and other factors that are 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, except share and per share data)
|
|
|
|
|
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|
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|
|
|
|
|
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March 31,
2017
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December 31,
2016
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|
|
|
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(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
|
$
2,265
|
|
$
2,211
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Interest-bearing
deposits in other banks
|
|
58,186
|
|
56,665
|
|
|
|
Cash and cash
equivalents
|
|
60,451
|
|
58,876
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Interest-bearing time
deposits with other banks
|
|
235
|
|
234
|
Investments in
available-for-sale securities
|
|
22,142
|
|
22,048
|
Investments in
held-to-maturity securities (fair value of
$133,447
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|
|
|
|
|
as of March 31,
2017 and $129,465 as of December 31, 2016)
|
|
134,007
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|
130,197
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Federal Home Loan
Bank stock, at cost
|
|
29,605
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|
25,071
|
Loans held for
sale
|
|
25,631
|
|
-
|
Loans, net of
allowance for loan losses of $14,382 as of
|
|
|
|
|
|
March 31, 2017 and
$13,585 as of December 31, 2016
|
|
1,958,011
|
|
1,866,035
|
Premises and
equipment, net
|
|
2,340
|
|
2,355
|
Accrued interest
receivable
|
|
4,857
|
|
4,635
|
Deferred tax asset,
net
|
|
8,022
|
|
8,321
|
Income taxes
receivable
|
|
1,071
|
|
423
|
Bank-owned life
insurance
|
|
36,099
|
|
35,842
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Other
assets
|
|
4,397
|
|
4,667
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|
|
|
Total
assets
|
|
$
2,286,868
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|
$
2,158,704
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Deposits:
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Noninterest-bearing
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$
204,364
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$
208,082
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Interest-bearing
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1,361,505
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|
1,261,340
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|
|
|
Total
deposits
|
|
1,565,869
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|
1,469,422
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Federal Home Loan
Bank advances
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|
532,250
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|
508,850
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Securities sold under
agreements to repurchase
|
|
2,225
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|
1,985
|
Accrued interest
payable
|
|
1,113
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|
1,023
|
Deferred compensation
liability
|
|
7,241
|
|
7,043
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Other
liabilities
|
|
13,217
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|
9,460
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|
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Total
liabilities
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2,121,915
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1,997,783
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Stockholders'
Equity:
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Common stock; $0.01
par value per share, 100,000,000 shares
authorized; 9,688,451 and 9,110,077 shares issued and outstanding
at March 31, 2017 and December 31, 2016,
respectively
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97
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|
91
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Additional paid-in
capital
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92,268
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92,013
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Retained
earnings
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76,164
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72,498
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Accumulated other
comprehensive income
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|
170
|
|
103
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|
Unearned compensation
- ESOP
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|
(3,746)
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|
(3,784)
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Total stockholders'
equity
|
|
164,953
|
|
160,921
|
|
|
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Total liabilities and
stockholders' equity
|
|
$
2,286,868
|
|
$
2,158,704
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|
|
|
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|
|
|
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Asset Quality
Data:
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Total non-performing
assets
|
|
$
2,287
|
|
$
1,822
|
Total non-performing
loans
|
|
$
2,287
|
|
$
1,819
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Non-performing loans
to total loans
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|
0.12%
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|
0.10%
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Non-performing assets
to total assets
|
|
0.10%
|
|
0.08%
|
Allowance for loan
losses to non-performing loans
|
|
628.86%
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|
746.84%
|
Allowance for loan
losses to total loans
|
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0.73%
|
|
0.73%
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|
|
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Share
Data:
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Outstanding common
shares
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9,688,451
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|
9,110,077
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Book value per
share
|
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$
17.03
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|
$
17.66
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Consolidated Capital
Ratios:
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Common Equity Tier 1
Risk-Based Capital Ratio
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10.62%
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10.80%
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Tier 1 Risk-Based
Capital Ratio
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10.62%
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10.80%
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Total Risk-Based
Capital Ratio
|
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11.55%
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|
11.71%
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Leverage
Ratio
|
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7.42%
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7.64%
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BSB BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Dollars in
thousands, except per share data)
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Three months
ended
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March 31,
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2017
|
|
2016
|
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(unaudited)
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Interest and dividend
income:
|
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|
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Interest and fees on
loans
|
$
16,387
|
|
$
13,412
|
|
Interest on taxable
debt securities
|
778
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|
828
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|
Dividends
|
256
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|
155
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|
Other interest
income
|
85
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|
44
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|
|
Total interest and
dividend income
|
17,506
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|
14,439
|
Interest
expense:
|
|
|
|
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Interest on
deposits
|
2,613
|
|
2,125
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Interest on Federal
Home Loan Bank advances
|
1,631
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|
1,027
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Interest on
securities sold under agreements to repurchase
|
1
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|
1
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|
Interest on other
borrowed funds
|
-
|
|
5
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|
|
Total interest
expense
|
4,245
|
|
3,158
|
|
|
Net interest and
dividend income
|
13,261
|
|
11,281
|
Provision for loan
losses
|
829
|
|
599
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|
|
Net interest and
dividend income after provision
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|
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for loan
losses
|
12,432
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|
10,682
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Noninterest
income:
|
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Customer service
fees
|
182
|
|
225
|
|
Income from
bank-owned life insurance
|
252
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|
233
|
|
Net gain on sales of
loans
|
8
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|
60
|
|
Loan servicing fee
income
|
116
|
|
112
|
|
Other
income
|
72
|
|
30
|
|
|
Total noninterest
income
|
630
|
|
660
|
Noninterest
expense:
|
|
|
|
|
Salaries and employee
benefits
|
4,672
|
|
4,600
|
|
Director
compensation
|
303
|
|
234
|
|
Occupancy
expense
|
266
|
|
251
|
|
Equipment
expense
|
123
|
|
104
|
|
Deposit
insurance
|
402
|
|
280
|
|
Data
processing
|
694
|
|
882
|
|
Professional
fees
|
288
|
|
234
|
|
Marketing
|
278
|
|
221
|
|
Other
expense
|
450
|
|
446
|
|
|
Total noninterest
expense
|
7,476
|
|
7,252
|
|
|
Income before income
tax expense
|
5,586
|
|
4,090
|
Income tax
expense
|
1,920
|
|
1,551
|
|
|
Net
income
|
$
3,666
|
|
$
2,539
|
|
Earnings per
share
|
|
|
|
|
|
Basic
|
$
0.42
|
|
$
0.29
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|
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Diluted
|
$
0.40
|
|
$
0.28
|
|
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Return on average
assets
|
0.67%
|
|
0.56%
|
Return on average
equity
|
9.08%
|
|
6.88%
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Interest rate
spread
|
2.32%
|
|
2.39%
|
Net interest
margin
|
2.45%
|
|
2.53%
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Efficiency
ratio
|
53.82%
|
|
60.73%
|
|
|
|
|
|
|
|
Contact:
|
|
Robert M.
Mahoney
|
|
|
President and
Chief Executive Officer
|
|
|
|
Phone:
|
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617-484-6700
|
Email:
|
|
robert.mahoney@belmontsavings.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bsb-bancorp-inc-reports-first-quarter-results--year-over-year-earnings-growth-of-44-300443102.html
SOURCE BSB Bancorp, Inc.