Chicopee Bancorp, Inc. (the “Company”) (NASDAQ - CBNK), the holding company for Chicopee Savings Bank (the “Bank”), announced the results of operations for the three months ended March 31, 2010.
The Company reported a net loss for the three months ended March 31, 2010 of $50,000, or ($0.01) loss per share, as compared to a net profit of $114,000, or $0.02 earnings per share, for the same period in 2009. The decrease in net income was primarily due to an increase in the provision for loan losses of $179,000 and an increase in non-interest expense of $298,000, partially offset by an increase of $391,000, or 10.4%, in net interest income for the three months ended March 31, 2010 compared to the three months ended March 31, 2009.
The increase in the loan loss provision for the quarter ended March 31, 2010 compared to the same quarter in 2009, primarily resulted from an increase in specific reserves and growth in the commercial and industrial portfolio. Non-interest income, decreased $79,000, or 11.5%, to $607,000 for the three months ended March 31, 2010 compared to $686,000 for the three months ended March 31, 2009. The decrease in non-interest income was due to an $116,000 decrease in net loan sales and servicing resulting from significantly reduced residential real estate refinancing volume in the first three months of 2010. Residential loan volume was at record levels for the Company during the quarter ended March 31, 2009. The Company also reported a $13,000 non-cash charge for an other-than-temporarily impaired security in the first quarter of 2010. These decreases in non-interest income were offset by a $95,000, or 28.4%, increase in service charges, fees and commissions during the period. For the three months ended March 31, 2010, non-interest expense increased $298,000, or 7.0%, to $4.5 million from $4.2 million at March 31, 2009. The increase in non-interest expense was mainly due to an increase in FDIC insurance expense of $198,000 and an increase of $184,000 in salaries and employee benefits.