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Despite a one time $2.63 million write down as a result of tax reform, Belmont Savings Bank’s parent company reported strong annual earnings and growth.
The company reported net income of $2.11 million or $0.23 per diluted share for the fourth quarter of 2017 compared to net income of $3.31 million or $0.37 per diluted share for the fourth quarter of 2016. On the year, the bank reported net income of $14.39 million or $1.55 per diluted share as compared to net income of $11.98 million or $1.33 per diluted share for 2016, an increase in net income of roughly 20 percent.
During the year, the bank twice received national recognition for its performance.
Sandler O’Neill in September named Belmont Savings Bank to its Sm-All Star Award Class of 2017 for banks with a market-cap below $2.5 billion that demonstrate exceptional growth, profitability, credit quality and capital strength. The bank was the only in Massachusetts to make the list and was one of 29 banks selected nationally out of a total of 404 publicly traded banks that applied.
Then just a few weeks later, Fortune Magazine ranked the company as the 41st fastest growing company in 2017. Only five Massachusetts companies and seven savings banks nationwide made the list.
“We completed another successful quarter and year,” Robert M. Mahoney, president and CEO, said in a statement. “We continue to enjoy good loan and deposit growth while managing expenses closely. Our disciplined underwriting of loans has resulted in modest credit costs. We are well positioned to take advantage of the business opportunities that our strong local economy affords us.”
Total assets year-over-year grew almost $520 million, putting Belmont Savings Bank’s parent company at $2.68 billion in total assets. Loans grew about $410 million year-over-year to roughly $2.3 billion at the end of 2017, driven by strong growth in residential and commercial real estate.
Net interest income for the year was $56.1 million, up a little less than $9 million from 2016. The margin dropped seven basis points year-over-year, landing at 2.38 percent at the end of 2017. Noninterest income for 2017 was $3.6 million, up from $2.75 million in 2016.
The provision for loan losses increased almost $400,000 from 2016 to $2.76 million at the end of 2017. Total non-performing assets were $1.38 million or 0.05 percent of total assets at the end of 2017 compared to $1.82 million or 0.08 percent of total assets at the end of 2016.
