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Chicopee Bancorp, Inc. (the “Company”) (NASDAQ – CBNK), the holding company for Chicopee Savings Bank (the “Bank”), announced the unaudited results of operations for the three and nine months ended September 30, 2012.
The Company reported an increase in net income of $252,000, or 67.9%, from $371,000, or $0.07 earnings per share, for the three months ended September 30, 2011 to $623,000, or $0.12 earnings per share, for the three months ended September 30, 2012. The increase in net income for the three months ended September 30, 2012 compared to the three months ended September 30, 2011, was primarily due to a decrease in non-interest expense of $299,000, or 6.4%, an increase in net interest income of $209,000, or 4.6%, and a decrease in the provision for loan losses of $54,000, or 24.2%. These improvements were partially offset by the decrease in non-interest income of $77,000, or 11.0%, and an increase in income tax expense of $233,000, or 582.5%.
The $299,000, or 6.4%, decrease in non-interest expense was primarily due to the decrease in salaries and benefits of $272,000, or 10.0%, a decrease in FDIC insurance expense of $56,000, or 38.6%, a decrease of $34,000, or 32.7%, in stationery, supplies and postage, a decrease in advertising expense of $19,000, or 11.9%, and a decrease in data processing of $14,000, or 4.7%. These decreases were partially offset by an increase in occupancy expense of $9,000, or 2.5%, an increase in professional fees of $7,000, or 5.4%, and an increase in other non-interest expense of $87,000, or 18.3%. The decrease in salaries and benefits was directly attributed to the decrease in the expense related to the 2007 Equity Incentive Plan. The restricted stock awards and stock options granted in 2007 were fully expensed on July 27, 2012. The Company continues efforts to improve operating efficiency by managing net interest income and controlling operating expenses. The efficiency ratio was 81.6% for the three months ended September 30, 2012, which shows improvement from 89.4% for the quarter ended June 30, 2012 and 89.4% for the third quarter of 2011. Management will continue to implement strategies to improve the Company’s efficiency ratio and profitability.