Georgetown Bancorp, Inc. Reports Continued Profitability Trends for the Three and Six Months Ended June 30, 2012

Fri Jul 27, 2012 4:30pm EDT

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Georgetown Bancorp, Inc. Reports Continued Profitability Trends for the Three and Six Months Ended June 30, 2012

Georgetown Bancorp, Inc. (NASDAQ: GTWND) (the “Company”), holding company for Georgetown Savings Bank (the “Bank”), reported net income for the three months ended June 30, 2012 of $135,000, or $.05 per basic and diluted share, compared to a net loss of $20,000, or $.01 per basic and diluted share, for the three months ended June 30, 2011. Net income for the six months ended June 30, 2012 was $288,000, or $.11 per basic and diluted share, compared to net income of $312,000, or $.12 per basic and diluted share, for the six months ended June 30, 2011.

Robert E. Balletto, President and Chief Executive Officer, said, “The Company’s asset quality remained stable, as non-performing assets to total assets was .99% at June 30, 2012, compared to 1.00% at March 31, 2012. As we continue to execute our strategic plan, which includes the judicious development of our commercial lending business, we remain focused on maintaining high asset quality and enhancing long-term shareholder value.”

Georgetown Bancorp, Inc.
Selected Financial Data
                     
 
 
At or for the At or for the
Period Ended Year Ended
June 30, 2012 December 31, 2011
(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets $ 214,580 $ 199,375
Cash and cash equivalents 40,274 19,083
Loans receivable, net 151,328 161,120
Allowance for loan losses 1,553 1,824
Investment securities (1) 9,121 6,496
Deposits 166,594 151,085
Borrowings 25,100 25,694
 
Total stockholders' equity 20,711 20,329
Stockholders' equity to total assets at end of period 9.65 % 10.20 %
Total shares outstanding 2,694,341 2,680,455
 
Asset Quality Data:
Total non-performing loans $ 1,847 $ 3,133
Other real estate owned 283 30
Total non-performing assets 2,130 3,163
Non-performing loans to total loans 1.21 % 1.92 %
Non-performing assets to total assets 0.99 % 1.59 %
Allowance for loan losses to non-performing loans 84.08 % 58.22 %
Allowance for loan losses to total loans 1.02 % 1.12 %
Loans charged off $ 371 $ 788
Recoveries on loans previously charged off 5 12
 
Three Months Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend income $ 2,256 $ 2,777 $ 4,577 $ 5,574
Interest expense   447     646     949     1,316  
Net interest income 1,809 2,131 3,628 4,258
Provision for loan losses   31     681     95     745  
Net interest income after
provision for loan losses
1,778 1,450 3,533 3,513
Non-interest income 329 198 612 424
Non-interest expense   1,905     1,707     3,710     3,466  
Income (loss) before income taxes 202 (59 ) 435 471
Income tax provision (benefit)   67     (39 )   147     159  
Net income (loss) $ 135   $ (20 ) $ 288   $ 312  
 
Net income (loss) per share: basic $ 0.05 $ (0.01 ) $ 0.11 $ 0.12
Net income (loss) per share: diluted $ 0.05 $ (0.01 ) $ 0.11 $ 0.12
 
Net income (loss) per share: basic (2) $ 0.07 $ (0.01 ) $ 0.15 $ 0.16
Net income (loss) per share: diluted (2) $ 0.07 $ (0.01 ) $ 0.15 $ 0.16
 
Performance Ratios:
Return on average assets 0.27 % -0.04 % 0.29 % 0.31 %
Return on average equity 2.66 % -0.41 % 2.83 % 3.20 %
Interest rate spread 3.57 % 4.24 % 3.59 % 4.18 %
Net interest margin 3.74 % 4.46 % 3.76 % 4.40 %
Efficiency ratio (3) 89.04 % 73.31 % 87.49 % 74.03 %
Non-interest expense to average total assets 3.75 % 3.38 % 3.68 % 3.40 %
 
(1) Does not include Federal Home Loan Bank Stock of $2.9 million.
(2) 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 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.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

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