Wellesley Bancorp, Inc. (Nasdaq Capital Market: WEBK) (the “Company”), the holding company for Wellesley Bank (the “Bank”) reported net income of $537,000 for the quarter ended September 30, 2012, compared to net income of $528,000 for the same period in 2011. Earnings per share for the quarter ended September 30, 2012 were $0.24, basic and fully diluted. The Bank completed its mutual-to-stock conversion (the “Conversion”) and the Company’s public offering on January 25, 2012. Accordingly, the 2011 results reflect the Bank on a consolidated basis and do not include the Company which was not an operating company during 2011. In addition, earnings per share information is not presented for periods where the shares were not outstanding for the entire period. For the nine months ended September 30, 2012, the Company reported net income of $418,000, compared to net income of $1.5 million for the same period in 2011. The 2012 results reflect a one-time $1.8 million pre-tax contribution ($1.1 million after-tax) to the Wellesley Bank Charitable Foundation formed in connection with the conversion.
With respect to the quarter ended September 30, 2012, net income increased $9,000 to $537,000, compared to the quarter ended September 30, 2011. Net interest income increased 11.3% to $2.9 million for the quarter ended September 30, 2012 from $2.6 million in the comparable 2011 period. The increase was largely due to higher levels of interest income from growth in our loan portfolio, partially offset by higher interest expense as we increased our balances of Federal Home Loan Bank (FHLB) advances, which funded much of our loan growth. Deposit costs declined slightly due to the generally lower interest rate environment. The net interest margin was 3.56% for the 2012 quarter, compared to 4.01% for the 2011 quarter as funding costs declined more slowly than earning asset yields in the period.
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