Georgetown Bancorp, Inc. Reports Continued Profitability for the Three Months and Year Ended Decembe

Georgetown Bancorp, Inc. Reports Continued Profitability for the Three Months and Year Ended December 31, 2012

GEORGETOWN, Mass.--(BUSINESS WIRE)-- Georgetown Bancorp, Inc. (NAS: GTWN) (the "Company"), holding company for Georgetown Bank (the "Bank"), reported net income for the three months ended December 31, 2012 of $416,000, or $.23 per basic and diluted share, compared to net income of $415,000, or $.22 per basic and diluted share, for the three months ended December 31, 2011. Net income for the year ended December 31, 2012 was $948,000, or $.51 per basic and diluted share, compared to net income of $1.0 million, or $.53 per basic and diluted share, for the year ended December 31, 2011.

Robert E. Balletto, President and Chief Executive Officer, said, "I am pleased with the progress made during the quarter ended December 31, 2012 in several areas. While we had a record level of mortgage banking income, driven by the low rate environment, we also continued to successfully expand the geographic footprint of our mortgage origination staff. We expect this expansion to mitigate the impact of the mortgage market's eventual shift from a refinancing market to a purchase market. Our asset quality improved during the quarter as non-performing assets declined from 1.94% of total assets at September 30, 2012 to 1.59% at December 31, 2012. Despite the continued sluggish economic environment, we have been successful in generating $5.7 million in net commercial loan growth for the quarter ended December 31, 2012 and have a significant commercial loan pipeline. We remain focused on our strategic plan, which we believe will enhance long-term stockholder value."

Georgetown Bancorp, Inc.

Selected Financial Data

At or for the

At or for the

Year Ended

Year Ended

December 31, 2012

December 31, 2011

(Dollars in thousands, except share data)

Selected Financial Condition Data:

Total assets

$

211,602

$

199,375

Cash and cash equivalents

6,789

19,083

Loans receivable, net

180,599

161,120

Allowance for loan losses

1,780

1,824

Investment securities (1)

9,778

6,496

Deposits

154,439

151,085

Borrowings

23,600

25,694

Total stockholders' equity

30,563

20,329

Stockholders' equity to total assets at end of period

14.44

%

10.20

%

Total shares outstanding

1,940,302

2,680,455

Asset Quality Data:

Total non-performing loans

$

3,175

$

3,133

Other real estate owned

203

30

Total non-performing assets

3,378

3,163

Non-performing loans to total loans

1.74

%

1.92

%

Non-performing assets to total assets

1.60

%

1.59

%

Allowance for loan losses to non-performing loans

56.06

%

58.22

%

Allowance for loan losses to total loans

0.98

%

1.12

%

Loans charged off

$

386

$

788

Recoveries on loans previously charged off

142

12

Three Months Ended

Year Ended

December 31,

December 31,

2012

2011

2012

2011

(Dollars in thousands, except per share data)

Selected Operating Data:

Interest and dividend income

$

2,288

$

2,558

$

9,045

$

10,705

Interest expense

360

519

1,688

2,416

Net interest income

1,928

2,039

7,357

8,289

Provision for loan losses

38

124

200

949

Net interest income after

provision for loan losses

1,890

1,915

7,157

7,340

Non-interest income

785

363

2,013

990

Non-interest expense

1,995

1,606

7,663

6,736

Income before income taxes

680

672

1,507

1,594

Income tax provision

264

257

559

583

Net income

$

416

$

415

$

948

$

1,011

Net income per share: basic (2)

$

0.23

$

0.22

$

0.51

$

0.53

Net income per share: diluted (2)

$

0.23

$

0.22

$

0.51

$

0.53

Performance Ratios:

Return on average assets

0.80

%

0.85

%

0.46

%

0.51

%

Return on average equity

5.53

%

8.33

%

3.80

%

5.14

%

Interest rate spread

3.68

%

4.24

%

3.57

%

4.18

%

Net interest margin

3.86

%

4.43

%

3.75

%

4.39

%

Efficiency ratio (3)

73.55

%

66.84

%

81.79

%

72.59

%

Non-interest expense to average total assets

3.83

%

3.27

%

3.73

%

3.37

%

(1) Does not include Federal Home Loan Bank Stock of $2.9 million.

(2) 2011 adjusted to reflect 0.72014 exchange ratio in connection with second-step conversion completed July 11, 2012.

(3) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.


About Georgetown Bancorp, Inc.

Georgetown Bancorp, Inc. is the holding company for Georgetown Bank. Georgetown Bank, with branch offices in Georgetown, North Andover and Rowley, Massachusetts, is committed to making a positive difference in the communities we serve. We strive to deliver exceptional personal service at all times and to help each of our customers achieve their unique financial goals through a competitive array of commercial and consumer banking services. To learn more about Georgetown Bank, visit www.georgetownbank.com or call 978-352-8600.

Forward-looking statements

This news release may contain certain forward-looking statements, such as statements of the Company's or the Bank's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as "expects," "subject," "believe," "will," "intends," "will be" or "would." These statements are subject to change based on various important factors (some of which are beyond the Company's or the Bank's control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date of which they are given). These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, the ability of the Company or the Bank to effectively manage its growth, and results of regulatory examinations, among other factors. The foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Company files from time to time with the Securities and Exchange Commission, including the final Prospectus filed in connection with our second-step conversion and Current Reports on Form 8-K.



Georgetown Bancorp, Inc.
Joseph W. Kennedy, 978-352-8600
Senior Vice President/CFO
joe.kennedy@georgetownbank.com

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS:

The article Georgetown Bancorp, Inc. Reports Continued Profitability for the Three Months and Year Ended December 31, 2012 originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.