Georgetown Bancorp, Inc. Reports 37% Increase in Profitability for the Three
Months Ended March 31, 2013 and Announces Quarterly Dividend
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)
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 %
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
Non-performing loans to 1.52 % 1.74 %
Non-performing assets to 1.45 % 1.60 %
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
(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend $ 2,212 $ 2,321
Interest expense 295 502
Net interest and dividend 1,917 1,819
Provision for loan losses 90 64
Net interest and dividend
income after provision for 1,827 1,755
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
Net income per share: $ 0.11 $ 0.08
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.
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
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