Ballston Spa Bancorp has reported a 2009 net income of $2.34 million, up 6 percent from $2.22 million in 2008.
It was the second year in a row the parent company of Ballston Spa National Bank posted record earnings, and President and CEO Christopher Dowd said the small chain of community banks weathered the recent economic downturn to achieve a strong balance sheet with the help of “seasoned staff.
“Despite significant increases in FDIC premiums, a weakening economy and reactive regulatory environment, BSNB experienced strong growth in our commercial loan and deposit portfolios, which led to our improved earnings performance,” Dowd said in the company’s 2009 annual report.
Significant increases in FDIC premiums and the costs of its retirement plan added up to more than $1.1 million over the course of the year.
The company’s total loan portfolio decreased to $253 million from $268 million in 2008 as part of a strategy to reduce its residential mortgage and auto loan portfolios, according to documents. But the company did strengthen its growth in commercial loans to further diversify its financial position, achieving an 8 percent growth in commercial and commercial real estate loans.
The allowance for loan losses, a reserve established for probable losses in the loan portfolio, increased to $4.3 million from $3.8 million in 2008.
“We anticipate the recovery from this recessionary period to be slow and painful for many businesses,” Dowd said.
BSNB has offices in Milton, Stillwater, Wilton, Malta, Greenfield Center, Galway, Clifton Park, Burnt Hills and Ballston Spa.
Another community bank, Glenville-based Trustco Bank, also recently reported its 2009 financial results, including $28 million in net income, down 17.5 percent from $34 million in 2008.
Robert J. McCormick, TrustCo Bank Corp’s chairman, president and chief executive officer, said 2009 was a year impacted by expenses, including a hike in its FDIC insurance premium from $454,000 to $6.5 million. The bank also increased its provision for loan losses to $11.3 million from $4.2 million in 2008.
Deposits at the end of 2009 were $3.3 billion, up 5.4 percent over the year. The bank’s loan portfolio grew 5.5 percent to $2.3 billion.
Trustco said its residential mortgage portfolio reached $2 billion in January 2010.
“In a time of financial crisis, we have remained very profitable, well capitalized and liquid. We approach 2010 with great optimism,” McCormick said in the company’s annual report.
TrustCo Bank Corp. is a savings and loan holding company that is the parent of Trustco Bank, which operates 132 community banking offices and 134 ATMs throughout five states.