Danvers Bancorp Inc., the holding company for Danversbank, has reported net income of $4.3 million for the first quarter, compared to net income of $1.4 million for the same quarter in 2009.

The acquisition of Beverly National Corp. in February and the overall improvement of the company’s net interest margin resulted in a significant increase in net interest income and a lesser increase in non-interest income. These increases were partially offset by higher provision for loan losses, increased salaries and benefits expense, and other operating expenses, according to a statement.

The bank said net interest income improved by $8.3 million, or 66.5 percent, between the comparable periods.

Compared to the quarter ended Dec. 31, 2009, net income increased to $4.3 million, or 61.8 percent, from $2.6 million. A moderate increase in net interest income, a modest increase in non-interest income and a decline in the provision for loan losses was partially offset by a tax provision in 2010 versus a tax benefit in 2009.

"Our margin improvement since the closing of our acquisition of Beverly National Corp. in the fourth quarter of 2009 has exceeded our expectations. We will seek to maintain this current level for the remainder of 2010 but do not expect to see a continued widening as we have seen in recent quarters," said Kevin T. Bottomley, president and CEO.

The board of directors has declared a cash dividend on its common stock of 2-cents per share. The dividend will be paid on or after May 21 to shareholders of record as of May 7.