Georgetown Bancorp, Inc. Reports Continued Profitability Trends for the Three and Six Months Ended J

Georgetown Bancorp, Inc. Reports Continued Profitability Trends for the Three and Six Months Ended June 30, 2013

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 June 30, 2013 of $149,000, or $0.08 per basic and diluted share, compared to net income of $135,000, or $0.07 per basic and diluted share, for the three months ended June 30, 2012. Net income for the six months ended June 30, 2013 was $358,000, or $0.19 per basic and diluted share, compared to net income of $288,000, or $0.15 per basic and diluted share, for the six months ended June 30, 2012. Book value per share declined $0.10 to $15.65 at June 30, 2013 from $15.75 at December 31, 2012 and was driven primarily by a decrease in the market value of our available for sale investment securities of $421,000, or $0.22 per share.

Robert E. Balletto, President and Chief Executive Officer, said, "I am pleased to report the continued improvement in our asset quality, as non-performing assets declined from 1.45% of total assets at March 31, 2013 to 0.31% at June 30, 2013. The results for the three and six months ended June 30, 2013 included expenses of $144,000 related to a staff reorganization that is expected to reduce our staffing by four full-time employees, including one senior-level position. We continue to remain focused on our strategic plan, which we believe will enhance long-term stockholder value."

 
Georgetown Bancorp, Inc.
Selected Financial Data
       
 
 
At or for theAt or for the
Period EndedYear Ended
June 30, 2013December 31, 2012
(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets$230,225$211,602
Cash and cash equivalents6,4296,789
Loans receivable, net190,636180,599
Allowance for loan losses1,8271,780
Investment securities (1)20,5169,778
Deposits150,747154,439
Borrowings41,35023,600
 
Total stockholders' equity29,51830,563
Stockholders' equity to total assets at end of period12.82%14.44%
Total shares outstanding1,886,6451,940,259
Book value per share$15.65$15.75
 
Asset Quality Data:
Total non-performing loans$690$3,175
Other real estate owned20203
Total non-performing assets7103,378
Non-performing loans to total loans0.36%1.74%
Non-performing assets to total assets0.31%1.60%
Allowance for loan losses to non-performing loans264.78%56.06%
Allowance for loan losses to total loans0.95%0.98%
Loans charged off$132$386
Recoveries on loans previously charged off16142
 
Three Months EndedSix Months Ended
June 30,June 30,
2013201220132012
(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend income$2,274$2,256$4,486$4,577
Interest expense 282  447  577  949 
Net interest income1,9921,8093,9093,628
Provision for loan losses 73  31  163  95 
Net interest income after
provision for loan losses1,9191,7783,7463,533
Non-interest income4453291,066612
Non-interest expense 2,127  1,905  4,238  3,710 
Income before income taxes237202574435
Income tax provision 88  67  216  147 
Net income$149 $135 $358 $288 
 
Net income per share: basic (2)$0.08$0.07$0.19$0.15
Net income per share: diluted (2)$0.08$0.07$0.19$0.15
 
Performance Ratios:
Return on average assets0.28%0.27%0.34%0.29%
Return on average equity1.99%2.66%2.37%2.83%
Interest rate spread3.71%3.57%3.69%3.59%
Net interest margin3.85%3.74%3.84%3.76%
Efficiency ratio (3)87.28%89.04%85.18%87.49%
Non-interest expense to average total assets3.95%3.75%4.00%3.68%

(1)

 

Does not include Federal Home Loan Bank Stock of $2.6 million and $2.9 million at June 30, 2013 and December 31, 2012, respectively.

(2)

2012 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 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:

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