8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 20, 2017

BSB BANCORP, INC.

(Exact Name of Registrant as Specified in Charter)

Maryland	001-35309	80-0752082
(State or Other Jurisdiction Identification No.)	(Commission File No.)	(I.R.S. Employer of Incorporation)

2 Leonard Street, Belmont, Massachusetts	02478
(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code:    (617) 484-6700

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

                                                                                                                   Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Item 2.02        Results of Operations and Financial Condition

On July 20, 2017, BSB Bancorp, Inc. (the "Company"), the holding company for Belmont Savings Bank, issued a press release announcing its financial results for the quarter ended June 30, 2017.  The Company's press release is included as Exhibit 99.1 to this report.  The information included in Exhibit 99.1 to this report is considered to be "furnished" under the Securities Exchange Act of 1934.

Item 9.01        Financial Statements and Exhibits

(d)    Exhibits.
Exhibit	Description
99.1	Press Release, dated July 20, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		BSB BANCORP, INC.
DATE: July 20, 2017	By:	/s/ John A. Citrano
		John A. Citrano
		Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

For Immediate Release

Date: July 20, 2017

Contact:	Robert M. Mahoney
	President and Chief Executive Officer
Phone:	617-484-6700
Email:	robert.mahoney@belmontsavings.com

BSB Bancorp, Inc. Reports Second Quarter Results – Year Over Year Earnings Growth of 40%

BELMONT, MA, July 20, 2017 (PR Newswire) - BSB Bancorp, Inc. (NASDAQ-BLMT) (the "Company"), the holding company for Belmont Savings Bank (the "Bank"), a state-chartered savings bank headquartered in Belmont, Massachusetts, today reported a 35.9% increase in net income to $4.01 million or $0.43 per diluted share for the quarter ended June 30, 2017 compared to net income of $2.95 million or $0.33 per diluted share for the quarter ended June 30, 2016. This is the Bank's 16th consecutive quarter of earnings growth. For the six months ended June 30, 2017, the Company reported net income of $7.68 million or $0.83 per diluted share as compared to net income of $5.49 million or $0.61 per diluted share for the six months ended June 30, 2016 or an increase in net income of 39.8%.

Robert M. Mahoney, President and Chief Executive Officer, said, "Strong loan demand, good fee income, expense control and credit quality combined to produce very solid quarterly results."

NET INTEREST AND DIVIDEND INCOME

Net interest and dividend income before provision for loan losses for the quarter ended June 30, 2017 was $13.95 million as compared to $11.71 million for the quarter ended June 30, 2016 or a 19.1% increase. The provision for loan losses for the quarter ended June 30, 2017 was $707,000 as compared to $741,000 for the quarter ended June 30, 2016 or a 4.6% decrease. This resulted in an increase of $2.28 million or 20.7% in net interest and dividend income after provision for loan losses for the quarter ended June 30, 2017 as compared to the quarter ended June 30, 2016. Net interest and dividend income before provision for loan losses for the six months ended June 30, 2017 was $27.21 million as compared to $22.99 million for the six months ended June 30, 2016 or an 18.4% increase. The provision for loan losses for the six months ended June 30, 2017 was $1.54 million as compared to $1.34 million for the six months ended June 30, 2016 or a 14.6% increase. This resulted in an increase of $4.02 million or 18.6% in net interest and dividend income after provision for loan losses for the six months ended June 30, 2017 as compared to the six months ended June 30, 2016.

NONINTEREST INCOME

Noninterest income for the quarter ended June 30, 2017 was $995,000 as compared to $705,000 for the quarter ended June 30, 2016 or an increase of 41.1%.

· Customer service fees decreased $25,000 or 11.2% primarily due to declines in NSF and other fees.

· Income from bank owned life insurance increased $57,000 or 24.1% primarily due to a purchase of $5.00 million in additional bank owned life insurance policies at the end of the second quarter of 2016.

· Net gains on sales of loans increased $232,000 or 218.9% due to an increase in the number of units sold.

· Other income increased by $17,000 or 37.0% primarily due to increases in the values of investments held in a Rabbi Trust. Investments held in the Rabbi Trust are used to fund the executive and director non-qualified deferred compensation plan. Corresponding deferred compensation expense is recorded within director compensation and salaries and employee benefits.

Noninterest income for the six months ended June 30, 2017 was $1.63 million as compared to $1.37 million for the six months ended June 30, 2016 or an increase of 18.9%.

· Customer service fees decreased $68,000 or 15.1% primarily due to declines in NSF and other fees.

· Income from bank owned life insurance increased $76,000 or 16.2% primarily due to a purchase of $5.00 million in additional bank owned life insurance policies at the end of the second quarter of 2016.

· Net gains on sales of loans increased $180,000 or 107.8% due to an increase in the number of units sold.

· Other income increased by $58,000 or 77.3% primarily due to increases in the values of investments held in a Rabbi Trust. Investments held in the Rabbi Trust are used to fund the executive and director non-qualified deferred compensation plan. Corresponding deferred compensation expense is recorded within director compensation and salaries and employee benefits.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended June 30, 2017 was $7.65 million as compared to $6.98 million for the quarter ended June 30, 2016 or an increase of 9.5%.

· Salaries and employee benefits increased $444,000 or 10.2% primarily driven by stock based compensation related to grants made during the first quarter of 2017 and a slight increase in the number of employees.

· Director compensation increased $109,000 or 44.1% primarily driven by stock based compensation related to grants made during the first quarter of 2017.

· Deposit insurance expense increased by $129,000 or 44.9% primarily driven by asset growth and the FDIC's new assessment methodology that was first effective for the quarter ended September 30, 2016.

· Data processing fees decreased by $185,000 or 21.0% as we renegotiated certain contracts with service providers in late 2016.

· Professional fees increased by $83,000 or 44.4% primarily due to the timing of certain annual audit engagements as well as increased attorney and consultant fees.

· Marketing costs increased by $75,000, or 36.1% primarily due to an increase in digital promotion of our market leading consumer lending products as well as additional support for our business banking segment strategy.

Noninterest expense for the six months ended June 30, 2017 was $15.12 million as compared to $14.24 million for the six months ended June 30, 2016 or an increase of 6.2%.

· Director compensation increased $178,000 or 37.0% primarily driven by stock based compensation related to grants made during the first quarter of 2017.

· Deposit insurance expense increased by $251,000 or 44.3% primarily driven by asset growth and the FDIC's new assessment methodology that was first effective for the quarter ended September 30, 2016.

· Data processing fees decreased by $373,000 or 21.2% as we renegotiated certain contracts with service providers in late 2016.

· Professional fees increased by $136,000 or 32.2% primarily due to the timing of certain annual audit engagements as well as increased attorney and consultant fees.

· Marketing costs increased by $132,000, or 30.8% primarily due to an increase in digital promotion of our market leading consumer lending products as well as additional support for our business banking segment strategy.

Our efficiency ratio improved to 51.2% for the quarter ended June 30, 2017 from 56.3% for the quarter ended June 30, 2016 and to 52.4% for the six months ended June 30, 2017 from 58.5% for the six months ended June 30, 2016 as we continue to grow the balance sheet and manage costs. A talented and committed colleague team along with continued operational enhancements have contributed to the improvement in our efficiency ratio.

INCOME TAXES

We recorded a provision for income taxes of $2.60 million for the quarter ended June 30, 2017, compared to a provision for income taxes of $1.74 million for the quarter ended June 30, 2016, reflecting effective tax rates of 39.1% and 37.0%, respectively. We recorded a provision for income taxes of $4.50 million for the six months ended June 30, 2017, compared to a provision for income taxes of $3.29 million for the six months ended June 30, 2016, reflecting effective tax rates of 37.0% and 37.4%, respectively.

BALANCE SHEET

At June 30, 2017, total assets were $2.37 billion, an increase of $212.18 million or 9.8% from $2.16 billion at December 31, 2016. The Company experienced net loan growth of $201.55 million or 10.8% from December 31, 2016 to June 30, 2017. 1-4 family residential real estate loans and commercial real estate loans increased by $162.27 million and $66.98 million, respectively. Partially offsetting these increases was a decrease in indirect auto loans of $17.29 million, driven by the suspension of new originations due to current market conditions. The asset growth was primarily funded by growth in deposits and federal home loan bank advances.

At June 30, 2017, deposits totaled $1.61 billion, an increase of $141.39 million or 9.6% from $1.47 billion at December 31, 2016. Core deposits, which we consider to include all deposits other than CDs, increased by $62.93 million from $1.13 billion at December 31, 2016 to $1.20 billion at June 30, 2017. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said "Our competitive retail product offerings, the ongoing commitment to our targeted business segment strategy and our focus on commercial relationship expansion have contributed to our strong deposit growth."

Total stockholders' equity increased by $8.90 million from $160.92 million as of December 31, 2016 to $169.83 million as of June 30, 2017. This increase is primarily the result of earnings of $7.68 million and a $1.08 million increase in additional paid-in capital related to stock-based compensation.

ASSET QUALITY

Asset quality remains strong. The allowance for loan losses in total and as a percentage of total loans as of June 30, 2017 was $15.09 million and 0.73%, respectively, as compared to $13.59 million and 0.73%, respectively, as of December 31, 2016.  For the six months ended June 30, 2017, the Company recorded net charge offs of $32,000, as compared to net charge offs of $37,000 for the six months ended June 30, 2016. Total non-performing assets were $1.70 million or 0.07% of total assets as of June 30, 2017 as compared to $1.82 million or 0.08% of total assets as of December 31, 2016.

Company Profile

BSB Bancorp, Inc. is headquartered in Belmont, Massachusetts and is the holding company for Belmont Savings Bank. The Bank provides financial services to individuals, families, municipalities and businesses through its six full-service branch offices located in Belmont, Watertown, Cambridge, Newton and Waltham in Southeast Middlesex County, Massachusetts. The Bank's primary lending market includes Essex, Middlesex, Norfolk and Suffolk Counties, Massachusetts. The Company's common stock is traded on the NASDAQ Capital Market under the symbol "BLMT." For more information, visit the Company's website at www.belmontsavings.com.

Forward-looking statements

Certain statements herein constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on the beliefs and expectations of management, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, our ability to continue to increase loans and deposit growth, legislative and regulatory changes that adversely affect the businesses in which the Company is engaged, changes in the securities market, and other factors that are described in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise, except as may be required by law.

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share and per share data)

	June 30, 2017			December 31, 2016
	(unaudited)
ASSETS
Cash and due from banks	$	2,041		$	2,211
Interest-bearing deposits in other banks		50,000			56,665
Cash and cash equivalents		52,041			58,876
Interest-bearing time deposits with other banks		235			234
Investments in available-for-sale securities		22,118			22,048
Investments in held-to-maturity securities (fair value of $139,952 as of
June 30, 2017 and $129,465 as of December 31, 2016)		140,524			130,197
Federal Home Loan Bank stock, at cost		30,428			25,071
Loans, net of allowance for loan losses of $15,089 as of
June 30, 2017 and $13,585 as of December 31, 2016		2,067,584			1,866,035
Premises and equipment, net		2,333			2,355
Accrued interest receivable		5,115			4,635
Deferred tax asset, net		7,918			8,321
Income taxes receivable		1,033			423
Bank-owned life insurance		36,393			35,842
Other assets		5,159			4,667
Total assets	$	2,370,881		$	2,158,704
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	203,711		$	208,082
Interest-bearing		1,407,104			1,261,340
Total deposits		1,610,815			1,469,422
Federal Home Loan Bank advances		567,250			508,850
Securities sold under agreements to repurchase		3,030			1,985
Accrued interest payable		1,293			1,023
Deferred compensation liability		7,464			7,043
Other liabilities		11,204			9,460
Total liabilities		2,201,056			1,997,783
Stockholders' Equity:
Common stock; $0.01 par value per share, 100,000,000 shares authorized; 9,694,260 and 9,110,077
shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively		97			91
Additional paid-in capital		93,092			92,013
Retained earnings		80,176			72,498
Accumulated other comprehensive income		167			103
Unearned compensation - ESOP		(3,707	)		(3,784	)
Total stockholders' equity		169,825			160,921
Total liabilities and stockholders' equity	$	2,370,881		$	2,158,704
Asset Quality Data:
Total non-performing assets	$	1,702		$	1,822
Total non-performing loans	$	1,656		$	1,819
Non-performing loans to total loans		0.08	%		0.10	%
Non-performing assets to total assets		0.07	%		0.08	%
Allowance for loan losses to non-performing loans		911.17	%		746.84	%
Allowance for loan losses to total loans		0.73	%		0.73	%
Share Data:
Outstanding common shares		9,694,260			9,110,077
Book value per share	$	17.52		$	17.66
Consolidated Capital Ratios:
Common Equity Tier 1 Risk-Based Capital Ratio		10.57	%		10.80	%
Tier 1 Risk-Based Capital Ratio		10.57	%		10.80	%
Total Risk-Based Capital Ratio		11.51	%		11.72	%
Leverage Ratio		7.32	%		7.63	%

BSB BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

	Three months ended June 30,						Six months ended June30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Interest and dividend income:
Interest and fees on loans	$	17,508		$	14,138		$	33,895		$	27,550
Interest on taxable debt securities		855			801			1,634			1,629
Dividends		290			186			546			341
Other interest income		111			39			195			84
Total interest and dividend income		18,764			15,164			36,270			29,604
Interest expense:
Interest on deposits		2,988			2,348			5,601			4,472
Interest on Federal Home Loan Bank advances		1,827			1,108			3,458			2,135
Interest on securities sold under agreements to repurchase		1			1			2			2
Interest on other borrowed funds		-			-			-			5
Total interest expense		4,816			3,457			9,061			6,614
Net interest and dividend income		13,948			11,707			27,209			22,990
Provision for loan losses		707			741			1,536			1,340
Net interest and dividend income after provision
for loan losses		13,241			10,966			25,673			21,650
Noninterest income:
Customer service fees		199			224			382			450
Income from bank-owned life insurance		294			237			546			470
Net gain on sales of loans		338			106			347			167
Loan servicing fee income		101			92			217			205
Other income		63			46			133			75
Total noninterest income		995			705			1,625			1,367
Noninterest expense:
Salaries and employee benefits		4,803			4,359			9,474			8,959
Director compensation		356			247			659			481
Occupancy expense		232			240			498			492
Equipment expense		103			109			227			214
Deposit insurance		416			287			818			567
Data processing		694			879			1,388			1,761
Professional fees		270			187			558			422
Marketing		283			208			561			429
Other expense		488			468			938			915
Total noninterest expense		7,645			6,984			15,121			14,240
Income before income tax expense		6,591			4,687			12,177			8,777
Income tax expense		2,579			1,735			4,499			3,286
Net income	$	4,012		$	2,952		$	7,678		$	5,491
Earnings per share
Basic	$	0.45		$	0.34		$	0.87		$	0.63
Diluted	$	0.43		$	0.33		$	0.83		$	0.61
Return on average assets		0.69	%		0.62	%		0.68	%		0.59	%
Return on average equity		9.56	%		7.81	%		9.32	%		7.35	%
Interest rate spread		2.30	%		2.34	%		2.31	%		2.37	%
Net interest margin		2.44	%		2.49	%		2.45	%		2.51	%
Efficiency ratio		51.16	%		56.27	%		52.44	%		58.46	%