Central Bancorp Inc., parent company of Central Bank, has reported net income for the second quarter of $145,000, compared to net income of $401,000, for the corresponding period in 2008 – a 63.8 percent decline.

The decline was primarily a result of an increase in non-interest expenses of $314,000 and a decrease in net interest and dividend income of $77,000, partially offset by an increase in non-interest income of $106,000 and a $150,000 reduction in the provision for loan losses, the bank said in a statement. 

Additionally, for the quarter ended June 30, net income was reduced by $153,000 allocated to preferred shareholders related to the company’s December 2008 sale of $10 million of preferred stock and warrants to purchase common stock to the U.S. Treasury Department as a participant in the federal government’s TARP Capital Purchase Program.

The increase in non-interest expenses was primarily due to an increase in FDIC deposit insurance premiums which totaled $341,000 during the quarter ended June 30, compared to deposit insurance premiums of $10,000 during the quarter ended June 30, 2008.