Georgetown Bancorp, Inc. Reports Earnings and Announces 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 December 31, 2015 of $480,000, or $0.27 per basic and diluted share, compared to net income of $440,000, or $0.25 per basic and diluted share, for the three months ended December 31, 2014. Net income for the year ended December 31, 2015 was $1,518,000, or $0.87 per basic share and $0.86 per diluted share, compared to net income of $1,479,000, or $0.85 per basic and diluted share, for the year ended December 31, 2014.

Robert E. Balletto, President and Chief Executive Officer, said, “I am pleased to report that our loan portfolio has grown 10% since December 31, 2014, with the majority of the growth occurring in commercial loans. Asset quality continues to be strong, as non-performing assets as a percentage of total assets decreased to 0.26% at December 31, 2015. However, we expect that our operating costs will increase substantially in 2016, as we enhance our regulatory compliance staff and compliance programs and our commercial lending support staff, in line with continued commercial loan growth. In addition, we plan to convert our Stratham, New Hampshire loan production office to a full service office.”

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.0475 per share of common stock. The dividend will be paid on or about February 22, 2016, to stockholders of record as of the close of business on February 8, 2016.

 
Georgetown Bancorp, Inc.
Selected Financial Data
                     
 
 
At or for the At or for the
Year Ended Year Ended

December 31, 2015

December 31, 2014
(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets $ 296,124 $ 271,020
Cash and cash equivalents 7,758 4,918
Loans receivable, net 253,983 231,293
Allowance for loan losses 2,408 2,229
Investment securities (1) 22,140 20,363
Deposits 207,726 182,354
FHLB Advances 50,600 54,600
 
Total stockholders' equity 31,898 30,712
Stockholders' equity to total assets at end of period 10.77 % 11.33 %
Total shares outstanding 1,828,238 1,827,131
Book value per share $ 17.45 $ 16.81
 
Asset Quality Data:
Total non-performing loans $ 776 $ 953
Other real estate owned - -
Total non-performing assets 776 953
Non-performing loans to total loans 0.30 % 0.41 %
Non-performing assets to total assets 0.26 % 0.35 %
Allowance for loan losses to non-performing loans 310.31 % 233.89 %
Allowance for loan losses to total loans 0.94 % 0.96 %
Loans charged off $ 26 $ 269
Recoveries on loans previously charged off 5 4
 
Three Months Ended Twelve Months Ended
December 31, December 31,
2015 2014 2015 2014

(Dollars in thousands, except per share data)

Selected Operating Data:
Interest and dividend income $ 3,150 $ 2,828 $ 11,876 $ 11,174
Interest expense   489     374     1,726     1,448  
Net interest and dividend income 2,661 2,454 10,150 9,726
Provision for loan losses   62     97     200     98  

Net interest and dividend income after provision for loan losses

2,599 2,357 9,950 9,628
Non-interest income 350 299 1,189 1,074
Non-interest expense   2,165     1,984     8,688     8,373  
Income before income taxes 784 672 2,451 2,329
Income tax provision   304     232     933     850  
Net income $ 480   $ 440   $ 1,518   $ 1,479  
 
Net income per share: basic $ 0.27 $ 0.25 $ 0.87 $ 0.85
Net income per share: diluted $ 0.27 $ 0.25 $ 0.86 $ 0.85
 
Performance Ratios:
Return on average assets 0.66 % 0.66 % 0.55 % 0.56 %
Return on average equity 6.23 % 5.91 % 5.00 % 5.06 %
Interest rate spread (2) 3.59 % 3.65 % 3.61 % 3.67 %
Net interest margin (2) 3.75 % 3.79 % 3.77 % 3.79 %
Efficiency ratio (3) 71.89 % 72.07 % 76.62 % 77.53 %
Non-interest expense to average total assets 2.96 % 2.96 % 3.12 % 3.14 %
 

(1) Does not include Federal Home Loan Bank stock of $2.9 million at December 31, 2015 and 2014 and Bankers Bank Northeast stock of $60,000 at December 31, 2015.
(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 December 31, 2015 and 2014, respectively and $30,000 for the years ended December 31, 2015 and 2014, respectively.
(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 and a Loan Production Office in Stratham, New Hampshire, 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.