Georgetown Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2011

Thu Oct 27, 2011 2:48pm EDT

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Georgetown Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2011

Georgetown Bancorp, Inc. (OTCBB: GTWN) (the “Company”), holding company for Georgetown Savings Bank (the “Bank”), reported net income for the three months ended September 30, 2011 of $284,000, or $.11 per basic and diluted share, compared to net income of $365,000, or $.14 per basic and diluted share, for the three months ended September 30, 2010. Net income for the nine months ended September 30, 2011 was $596,000, or $.23 per basic and diluted share, compared to net income of $986,000, or $.38 per basic and diluted share, for the nine months ended September 30, 2010.

Robert E. Balletto, President and Chief Executive Officer, said, “Operating results for the three months ended September 30, 2011 reflected a return to more normalized earnings as there were no major charge-offs and non-performing assets to total assets totaled 1.76% and remained below local and national averages. Operating results for the nine months ended September 30, 2011 were negatively affected primarily by the charge-off of one, large, out-of-market, residential home equity loan. We believe this charge-off is not a reflection of a negative trend in our loan portfolio overall. The Company continues to focus on generating commercial loan and core deposit growth, which we believe will build long-term shareholder value.”

 
Georgetown Bancorp, Inc.
Selected Financial Data
       
 
 
At or for the At or for the
Nine Months Ended Year Ended
September 30, 2011 December 31, 2010
(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets $ 195,590 $ 205,015
Cash and cash equivalents 6,685 3,298
Loans receivable, net 167,662 178,524
Allowance for loan losses 1,742 1,651
Investment securities (1) 8,691 10,421
Deposits 147,999 151,463
Borrowings 25,683 32,173
 
Total stockholders' equity 19,887 19,169
Stockholders' equity to total assets at end of period 10.17% 9.35%
Total shares outstanding 2,680,455 2,662,387
 
Asset Quality Data:
Total non-performing loans $ 3,392 $ 253
Other real estate owned 53 53
Total non-performing assets 3,445 306
Non-performing loans to total loans 2.00% 0.14%
Non-performing assets to total assets 1.76% 0.15%
Allowance for loan losses to non-performing loans 51.36% 652.57%
Allowance for loan losses to total loans 1.03% 0.92%
Loans charged off $ 744 $ 143
Recoveries on loans previously charged off 10 12
 
Three Months Ended Nine Months Ended
September 30, September 30,
  2011   2010   2011   2010
(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend income $ 2,573 $ 2,830 $ 8,147 $ 8,330
Interest expense   581   857   1,897   2,593
Net interest income 1,992 1,973 6,250 5,737
Provision for loan losses   80   23   825   188

Net interest income after provision for loan losses

1,912 1,950 5,425 5,549
Non-interest income 203 308 627 869
Non-interest expense   1,664   1,676   5,130   4,871
Income before income taxes 451 582 922 1,547
Income tax provision   167   217   326   561
Net income $ 284 $ 365 $ 596 $ 986
 
Net income per share: basic $ 0.11 $ 0.14 $ 0.23 $ 0.38
Net income per share: diluted $ 0.11 $ 0.14 $ 0.23 $ 0.38
 
 
Performance Ratios:
Return on average assets 0.58% 0.69% 0.40% 0.63%
Return on average equity 5.75% 7.87% 4.06% 7.25%
Interest rate spread 4.09% 3.70% 4.15% 3.62%
Net interest margin 4.32% 3.95% 4.37% 3.88%
Efficiency ratio (2) 75.83% 73.50% 74.60% 73.73%
Non-interest expense to average total assets 3.41% 3.18% 3.40% 3.13%
 
(1) Does not include Federal Home Loan Bank Stock of $3.1 million.
(2) 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 Savings Bank. Georgetown Savings 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 Savings Bank, visit www.georgetownsb.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@georgetownsb.com