Hampden Bancorp, Inc. Reports Second Quarter Earnings And Declares Cash Dividend

SPRINGFIELD, Mass., Feb. 3, 2015 (GLOBE NEWSWIRE) -- Hampden Bancorp, Inc. (the "Company") (Nasdaq:HBNK), the holding company for Hampden Bank (the "Bank"), announced earnings for the three and six months ended December 31, 2014.

Six Months Ended December 31, 2014

Net income was $1.3 million, or $0.25 per fully diluted share, for the six months ended December 31, 2014 compared to net income of $2.2 million, or $0.41 per fully diluted share, for the same period in 2013. The primary reason for the decrease in net income for the six months ended December 31, 2014 compared to 2013 was due to merger related expenses. On November 3, 2014, the Company and Berkshire Hills Bancorp, Inc. ("Berkshire Hills"), the parent company of Berkshire Bank, entered into an Agreement and Plan of Merger (the "Merger Agreement") pursuant to which the Company will merge with and into Berkshire Hills. Concurrent with the merger, it is expected that Hampden Bank will merge with and into Berkshire Bank. The expenses associated with this merger totaled $695,000 for the six months ended December 31, 2014. In addition to the merger activities, the Company had a contested shareholder meeting in November 2014 as well as November 2013. The expenses associated with the contested shareholder meeting in 2014 were $371,000 compared to $410,000 in 2013. Net income would have been $2.2 million, or $0.40 per fully diluted share, for the six months ended December 31, 2014 without merger and contested shareholder meeting expenses. Net income would have been $2.5 million, or $0.46 per fully diluted share, for the six months ended December 31, 2013 without the contested shareholder meeting expenses.

Net interest income increased by $551,000, or 5.5%, for the six months ended December 31, 2014 compared to the six months ended December 31, 2013. Interest and dividend income increased $524,000, or 4.2%, for the six months ended December 31, 2014 compared to the same period last year mainly due to a $498,000 increase in loan interest and fee income. For the six months ended December 31, 2014, interest expense decreased by $28,000, or 1.1%, compared to the six months ended December 31, 2013. A decrease in deposit interest expense of $89,000 was partially offset by an increase in borrowing interest expense of $61,000 for the six months ended December 31, 2014 compared to the same period in 2013. The net interest margin increased to 3.13% for the six months ended December 31, 2014 compared to 3.11% for the six months ended December 31, 2013.

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