BELMONT, Mass., April 19, 2018 /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 $6.0 million or $0.64 per diluted share for the quarter ended
March 31, 2018 compared to net income of $3.7 million or $0.40 per diluted share for the quarter ended
March 31, 2017 or an increase of 63.9% in net income.
Excluding the impact of the Tax Cuts and Jobs Act ("Tax Reform
Act") in the fourth quarter of 2017, the Bank has had 19
consecutive quarters of earnings growth.
Robert M. Mahoney, President and
Chief Executive Officer, said, "We are very pleased with the
results this quarter. Our strategy of consistent balance sheet
growth, coupled with good expense and credit cost management,
resulted in a record quarter and strong earnings momentum. We are
particularly proud to see our annualized ROAA and ROAE approach 1%
and 14%, respectively. Year over year earnings grew dramatically
driven by double digit organic growth, good credit experience and a
lower tax rate."
NET INTEREST AND DIVIDEND INCOME
Net interest and dividend income before provision for loan
losses for the quarter ended March 31,
2018 was $15.1 million as
compared to $13.3 million for the
quarter ended March 31, 2017 or a
14.2% increase. The provision for loan losses for the quarter ended
March 31, 2018 was $274,000 as compared to $829,000 for the quarter ended March 31, 2017 or a 66.9% decrease. The decrease
in provision was driven by lower loan growth and a reduction in the
specific reserve of an impaired loan. The combination of these
items resulted in an increase of $2.4
million or 19.6% in net interest and dividend income after
provision for loan losses for the quarter ended March 31, 2018 as compared to the quarter ended
March 31, 2017.
NONINTEREST INCOME
Noninterest income for the quarter ended March 31, 2018 was $895,000 as compared to $630,000 for the quarter ended March 31, 2017 or an increase of 42.1%. This was
driven by an increase in net gains on sales of loans of
$304,000 due to a greater number of
loans sold.
NONINTEREST EXPENSE
Noninterest expense for the quarter ended March 31, 2018 was $7.7
million as compared to $7.5
million for the quarter ended March
31, 2017 or an increase of 2.8%.
- Salaries and employee benefits increased $202,000 or 4.3% driven by merit increases.
- Director compensation decreased $108,000 or 35.6% driven by reduced stock-based
compensation expense as the majority of stock awards granted under
the 2012 Equity Incentive Plan have been fully expensed as well as
reduced compensation costs related to the decrease in value of the
investments held in the Rabbi Trust.
- Equipment expense decreased $40,000 or 32.5%. Driving this decrease was a
$9,000 gain on the disposition of
certain assets during the quarter ended March 31, 2018 compared to an $18,000 loss on the disposition of certain assets
during the quarter ended March 31,
2017.
- Deposit insurance expense increased by $87,000 or 21.6% driven by asset growth.
Our efficiency ratio improved to 47.9% for the quarter ended
March 31, 2018 from 53.8% for the
quarter ended March 31, 2017 as we
continue to grow the balance sheet and manage costs. A talented and
committed colleague team along with continued operational
enhancements have contributed to the improvement in our efficiency
ratio.
INCOME TAXES
We recorded a provision for income taxes of $2.1 million for the quarter ended
March 31, 2018, compared to a provision for income taxes of
$1.9 million for the quarter
ended March 31, 2017, reflecting effective tax rates of 25.6%
and 34.4%, respectively. The decrease in the effective tax rate was
driven by a reduction in the federal income tax rate from 35% to
21%.
BALANCE SHEET
At March 31, 2018, total assets
were $2.75 billion, an increase of
$71.0 million or 2.7% from
$2.68 billion at December 31, 2017. The Company experienced net
loan growth of $82.1 million or 3.6%
from December 31, 2017 to March 31,
2018. One-to-four family residential real estate loans and
commercial real estate loans increased by $68.7 million and $37.4
million, respectively. Partially offsetting these increases
were a decrease in construction loans of $21.3 million and a decrease in indirect auto
loans of $5.6 million. The decrease
in construction loans was driven by the completion of and payoff of
two construction projects. The decrease in indirect auto loans was
driven by the suspension of new originations due to current market
conditions. The asset growth was primarily funded by growth in
deposits.
At March 31, 2018, deposits totaled $1.87 billion, an increase of $122.0 million or 7.0% from $1.75 billion at December 31, 2017. Core
deposits, which we consider to include all deposits other than CDs,
increased by $67.3 million or 5.4%
from $1.25 billion at December 31, 2017 to $1.31
billion at March 31, 2018.
Hal R. Tovin, Executive Vice
President and Chief Operating Officer, said "Deposit growth in the
first quarter was particularly strong due to our retail savings and
CD products, the addition of new Commercial and Business Banking
customers and the continued expansion of our Municipal Banking
relationships."
Total stockholders' equity increased by $6.5 million or 3.7% from $178.0 million as of December 31, 2017 to $184.6 million as of March
31, 2018. This increase is primarily the result of earnings
of $6.0 million and a $674,000 increase in additional paid-in capital
related to stock-based compensation.
ASSET QUALITY
Asset quality remains strong. The allowance for loan losses in
total and as a percentage of total loans as of March 31, 2018 was $16.6 million and 0.70%, respectively, as
compared to $16.3 million and
0.71%, respectively, as of December 31, 2017. For the
quarter ended March 31, 2018, the
Company recorded net charge offs of $2,000, as compared to net charge offs of
$32,000 for the quarter ended
March 31, 2017. Total non-performing
assets were $1.4 million or 0.05% of
total assets as of March 31, 2018 and
December 31, 2017.
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,
the Company's 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
|
$
1,941
|
|
$
1,771
|
Interest-bearing
deposits in other banks
|
|
105,137
|
|
109,117
|
Cash
and cash equivalents
|
|
107,078
|
|
110,888
|
Interest-bearing time
deposits with other banks
|
|
2,460
|
|
2,440
|
Investments in
available-for-sale securities
|
|
12,025
|
|
16,921
|
Investments in
held-to-maturity securities (fair value of $152,267 as
of
|
|
|
|
|
March 31, 2018 and
$158,385 as of December 31, 2017)
|
|
155,559
|
|
160,090
|
Federal Home Loan
Bank stock, at cost
|
|
31,988
|
|
32,382
|
Loans, net of
allowance for loan losses of $16,584 as of
|
|
|
|
|
March 31, 2018 and
$16,312 as of December 31, 2017
|
2,379,019
|
|
2,296,958
|
Premises and
equipment, net
|
|
2,312
|
|
2,254
|
Accrued interest
receivable
|
|
6,086
|
|
6,344
|
Deferred tax asset,
net
|
|
5,648
|
|
5,794
|
Income taxes
receivable
|
|
-
|
|
53
|
Bank-owned life
insurance
|
|
37,235
|
|
36,967
|
Other
assets
|
|
8,192
|
|
5,474
|
Total
assets
|
|
$
2,747,602
|
|
$
2,676,565
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Deposits:
|
|
|
|
|
Noninterest-bearing
|
|
$
218,577
|
|
$
221,462
|
Interest-bearing
|
|
1,654,442
|
|
1,529,789
|
Total
deposits
|
|
1,873,019
|
|
1,751,251
|
Federal Home Loan
Bank advances
|
|
662,250
|
|
723,150
|
Securities sold under
agreements to repurchase
|
|
3,738
|
|
3,268
|
Accrued interest
payable
|
|
1,546
|
|
1,594
|
Deferred compensation
liability
|
|
8,035
|
|
7,919
|
Income taxes
payable
|
|
980
|
|
-
|
Other
liabilities
|
|
13,469
|
|
11,354
|
Total
liabilities
|
|
2,563,037
|
|
2,498,536
|
Stockholders'
Equity:
|
|
|
|
|
Common stock; $0.01 par value per
share, 100,000,000 shares authorized; 9,741,471 and
9,707,665
|
|
|
|
|
shares issued and
outstanding at March 31, 2018 and December 31, 2017,
respectively
|
|
97
|
|
97
|
Additional paid-in
capital
|
|
95,264
|
|
94,590
|
Retained earnings
|
|
92,875
|
|
86,884
|
Accumulated other comprehensive
(loss) income
|
|
(77)
|
|
89
|
Unearned compensation -
ESOP
|
|
(3,594)
|
|
(3,631)
|
Total
stockholders' equity
|
|
184,565
|
|
178,029
|
Total
liabilities and stockholders' equity
|
|
$
2,747,602
|
|
$
2,676,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Data:
|
|
|
|
|
Total non-performing
assets
|
|
$
1,389
|
|
$
1,376
|
Total non-performing
loans
|
|
$
1,352
|
|
$
1,376
|
Non-performing loans
to total loans
|
|
0.06%
|
|
0.06%
|
Non-performing assets
to total assets
|
|
0.05%
|
|
0.05%
|
Allowance for loan
losses to non-performing loans
|
|
1226.63%
|
|
1185.47%
|
Allowance for loan
losses to total loans
|
|
0.70%
|
|
0.71%
|
|
|
|
|
|
|
|
|
Share
Data:
|
|
|
|
|
Outstanding common
shares
|
|
9,741,471
|
|
9,707,665
|
Book value per
share
|
|
$
18.95
|
|
$
18.34
|
|
|
|
|
|
|
|
|
Consolidated Capital
Ratios:
|
|
|
|
|
Common Equity Tier 1 Risk-Based
Capital Ratio
|
|
10.60%
|
|
10.35%
|
Tier 1 Risk-Based Capital
Ratio
|
|
10.60%
|
|
10.35%
|
Total Risk-Based Capital
Ratio
|
|
11.55%
|
|
11.30%
|
Leverage Ratio
|
|
6.85%
|
|
6.97%
|
|
|
|
|
|
|
|
|
BSB BANCORP, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Dollars in
thousands, except per share data)
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
(unaudited)
|
Interest and dividend
income:
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
20,698
|
|
$
16,387
|
|
Interest on taxable
debt securities
|
|
948
|
|
775
|
|
Dividends
|
|
384
|
|
256
|
|
Other interest
income
|
|
389
|
|
88
|
|
Total interest and
dividend income
|
|
22,419
|
|
17,506
|
Interest
expense:
|
|
|
|
|
|
Interest on
deposits
|
|
4,421
|
|
2,613
|
|
Interest on Federal
Home Loan Bank advances
|
|
2,859
|
|
1,631
|
|
Interest on
securities sold under agreements to repurchase
|
|
1
|
|
1
|
|
Total interest
expense
|
7,281
|
|
4,245
|
|
Net interest and
dividend income
|
|
15,138
|
|
13,261
|
Provision for loan
losses
|
|
274
|
|
829
|
|
Net interest and
dividend income after provision
|
|
|
|
|
|
for
loan losses
|
|
14,864
|
|
12,432
|
Noninterest
income:
|
|
|
|
|
|
Customer service
fees
|
|
201
|
|
182
|
|
Income from
bank-owned life insurance
|
|
268
|
|
252
|
|
Net gain on sales of
loans
|
|
312
|
|
8
|
|
Loan servicing fee
income
|
|
117
|
|
116
|
|
Net (loss) gain on
investments held in Rabbi Trust
|
|
(24)
|
|
45
|
|
Other
income
|
|
21
|
|
27
|
|
Total noninterest
income
|
895
|
|
630
|
Noninterest
expense:
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,861
|
|
4,659
|
|
Director
compensation
|
|
195
|
|
303
|
|
Occupancy
expense
|
|
264
|
|
266
|
|
Equipment
expense
|
|
83
|
|
123
|
|
Deposit
insurance
|
|
489
|
|
402
|
|
Data
processing
|
|
735
|
|
694
|
|
Professional
fees
|
|
261
|
|
288
|
|
Marketing
|
|
266
|
|
278
|
|
Other
expense
|
|
531
|
|
463
|
|
Total noninterest
expense
|
|
7,685
|
|
7,476
|
|
Income before income
tax expense
|
|
8,074
|
|
5,586
|
Income tax
expense
|
|
2,064
|
|
1,920
|
|
Net
income
|
|
$
6,010
|
|
$
3,666
|
|
Earnings per
share
|
|
|
|
|
|
Basic
|
|
$
0.68
|
|
$
0.42
|
|
Diluted
|
|
$
0.64
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.90%
|
|
0.67%
|
Return on average
equity
|
|
13.37%
|
|
9.08%
|
Interest rate
spread
|
|
2.11%
|
|
2.32%
|
Net interest
margin
|
|
2.28%
|
|
2.45%
|
Efficiency
ratio
|
|
47.93%
|
|
53.82%
|
Net
charge-offs
|
|
$
2
|
|
$
32
|
|
|
|
|
|
|
|
|
|
BSB BANCORP, INC.
AND SUBSIDIARIES
|
APPENDIX A -
NON-GAAP FINANCIAL INFORMATION
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
Table - Non-GAAP Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net income as
reported
|
|
|
|
|
$
2,108
|
|
|
Add: Income tax
expense related to write-down of deferred tax asset
|
|
|
|
2,626
|
|
Adjusted net
income
|
|
|
|
|
$
4,734
|
|
|
|
|
|
|
|
|
|
|
|
|
Management believes these non-GAAP financial measures are
important to assess the results of the core operations of the
Bank.
|
|
|
|
|
|
|
|
|
|
Contact:
|
|
Robert M.
Mahoney
|
|
|
|
|
President and
Chief Executive Officer
|
|
|
|
|
|
|
|
Phone:
|
|
617-484-6700
|
|
|
Email:
|
|
robert.mahoney@belmontsavings.com
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/bsb-bancorp-inc-reports-first-quarter-results----year-over-year-earnings-growth-of-63-9-300633331.html
SOURCE BSB Bancorp, Inc.