Georgetown Bancorp, Inc. Reports Earnings and Announces Increase in Quarterly Cash Dividend

GEORGETOWN, Mass.--()--Georgetown Bancorp, Inc. (NASDAQ: GTWN) (the “Company”), holding company for Georgetown Bank (the “Bank”), reported net income for the three months ended March 31, 2015 of $250,000, or $0.14 per basic and diluted share, compared to net income of $275,000, or $0.16 per basic and diluted share, for the three months ended March 31, 2014.

Robert E. Balletto, President and Chief Executive Officer, said, “In accordance with our strategic plan, I am pleased to report that the Company had a $6.4 million, or 5% increase in core deposits during the quarter ended March 31, 2015. Additionally, our asset quality continues to be strong, as non-performing assets as a percentage of total assets was 0.40% at March 31, 2015. We remain focused on our strategic plan, which we believe will enhance long-term stockholder value.”

The Company’s Board of Directors also increased its regular quarterly cash dividend 12%, from $0.0425 per share of common stock to $0.0475 per share. The dividend will be paid on or about May 26, 2015, to stockholders of record as of the close of business on May 11, 2015.

             
Georgetown Bancorp, Inc.
Selected Financial Data
 
 
 
At or for the At or for the
Three Months Ended Year Ended
March 31, 2015 December 31, 2014
(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets $ 273,022 $ 271,020
Cash and cash equivalents 7,223 4,918
Loans receivable, net 231,362 231,293
Allowance for loan losses 2,256 2,229
Investment securities (1) 22,320 20,363
Deposits 189,866 182,354
Borrowings 45,850 54,600
 
Total stockholders' equity 30,974 30,712
Stockholders' equity to total assets at end of period 11.34 % 11.33 %
Total shares outstanding 1,844,040 1,827,131
Book value per share $ 16.80 $ 16.81
 
Asset Quality Data:
Total non-performing loans $ 1,096 $ 953
Other real estate owned - -
Total non-performing assets 1,096 953
Non-performing loans to total loans 0.47 % 0.41 %
Non-performing assets to total assets 0.40 % 0.35 %
Allowance for loan losses to non-performing loans 205.84 % 233.89 %
Allowance for loan losses to total loans 0.97 % 0.96 %
Loans charged off $ 1 $ 269
Recoveries on loans previously charged off 1 4
 
Three Months Ended
March 31,
  2015     2014  
(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend income $ 2,856 $ 2,768
Interest expense   398     339  
Net interest and dividend income 2,458 2,429
Provision for loan losses   27     -  
Net interest and dividend income after
provision for loan losses 2,431 2,429
Non-interest income 222 243
Non-interest expense   2,254     2,237  
Income before income taxes 399 435
Income tax provision   149     160  
Net income $ 250   $ 275  
 
Net income per share: basic $ 0.14 $ 0.16
Net income per share: diluted $ 0.14 $ 0.16
 
Performance Ratios:
Return on average assets 0.37 % 0.42 %
Return on average equity 3.32 % 3.81 %
Interest rate spread (2) 3.62 % 3.72 %
Net interest margin (2) 3.77 % 3.84 %
Efficiency ratio (3) 84.08 % 83.71 %
Non-interest expense to average total assets 3.34 % 3.40 %
 

 

 

(1) Does not include Federal Home Loan Bank Stock of $2.9 million at March 31, 2015 and December 31, 2014.
(2) Presented on a tax-equivalent basis using a tax rate of 34% resulting in an adjustment of $8,000 to investment security income for the three months ended March 31, 2015 and 2014.
(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 markets we serve. Our highest priority is to provide exceptional personal service, act with high ethical standards and in the best interest of our customers, employees, shareholders and business partners. We strive to help each of our customers achieve their unique financial goals through a competitive array of financial products and 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.

Contacts

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

Georgetown Bancorp, Inc.