Georgetown Bancorp, Inc. Reports 37% Increase in Profitability for the Three Months Ended March 31, 2013 and Announces Quarterly

  Georgetown Bancorp, Inc. Reports 37% Increase in Profitability for the Three
  Months Ended March 31, 2013 and Announces Quarterly Dividend

Business Wire

GEORGETOWN, Mass. -- April 26, 2013

Georgetown Bancorp, Inc. (NASDAQ: GTWN) (the “Company”), holding company for
Georgetown Bank (the “Bank”), reported net income for the three months ended
March 31, 2013 of $209,000, or $.11 per basic and diluted share, compared to
net income of $153,000, or $.08 per basic and diluted share, for the three
months ended March 31, 2012.

Robert E. Balletto, President and Chief Executive Officer, said, “I am pleased
to report a 37% increase in net income on a quarter over quarter basis, driven
by an expansion of our net interest margin and mortgage banking income.
Additionally, our asset quality continues to be strong, as non-performing
assets declined from 1.60% of total assets at December 31, 2012 to 1.45% at
March 31, 2013. We remain focused on our strategic plan, which we believe will
enhance long-term stockholder value.”

The Company’s Board of Directors also declared a regular quarterly cash
dividend of $0.04 per share of common stock. The dividend will be paid on or
about May 21, 2013, to stockholders of record as of the close of business on
May 7, 2013.

Georgetown Bancorp, Inc.
Selected Financial Data
                                                      
                                                             
                                                             
                                 At or for the               At or for the
                                 Period Ended                Year Ended
                                 March 31, 2013              December 31, 2012
                                 (Dollars in thousands, except share data)
Selected Financial
Condition Data:
Total assets                     $     211,329               $   211,602
Cash and cash equivalents              4,765                     6,789
Loans receivable, net                  182,826                   180,599
Allowance for loan losses              1,741                     1,780
Investment securities (1)              10,658                    9,778
Deposits                               146,623                   154,439
Borrowings                             31,100                    23,600
                                                             
Total stockholders' equity             30,467                    30,563
Stockholders' equity to
total assets at end of                 14.42       %             14.44      %
period
Total shares outstanding               1,942,514                 1,940,259
                                                             
Asset Quality Data:
Total non-performing loans       $     2,797                 $   3,175
Other real estate owned                269                       203
Total non-performing                   3,066                     3,378
assets
Non-performing loans to                1.52        %             1.74       %
total loans
Non-performing assets to               1.45        %             1.60       %
total assets
Allowance for loan losses              62.25       %             56.06      %
to non-performing loans
Allowance for loan losses              0.94        %             0.98       %
to total loans
Loans charged off                $     132                   $   386
Recoveries on loans                    3                         142
previously charged off
                                                             
                                 Three Months Ended
                                 March 31,
                                      2013                    2012       
                                 (Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend            $     2,212                 $   2,321
income
Interest expense                      295                     502        
Net interest and dividend              1,917                     1,819
income
Provision for loan losses             90                      64         

Net interest and dividend
income after provision for             1,827                     1,755
loan losses
Non-interest income                    621                       283
Non-interest expense                  2,111                   1,805      
Income before income taxes             337                       233
Income tax provision                  128                     80         
Net income                       $     209                  $   153        
                                                             
Net income per share:            $     0.11                  $   0.08
basic (2)
Net income per share:            $     0.11                  $   0.08
diluted (2)
                                                             
Performance Ratios:
Return on average assets               0.40        %             0.30       %
Return on average equity               2.75        %             2.99       %
Interest rate spread                   3.67        %             3.60       %
Net interest margin                    3.83        %             3.79       %
Efficiency ratio (3)                   83.17       %             85.92      %
Non-interest expense to                4.05        %             3.60       %
average total assets
                                                             

(1) Does not include Federal Home Loan Bank Stock of $2.6 million and $2.9
million at March 31, 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 and dividend 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.

Contact:

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