LINCOLN PARK, N.J., Aug. 6 /PRNewswire-FirstCall/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $131,000, or $.07 per share, for the quarter ended June 30, 2010, compared to net income of $65,000 or $.04 per share, for the quarter ended June 30, 2009. The increase in net income of $66,000 was primarily due to increases in net interest income and non-interest income, partially offset by increases in provision for loan losses and income taxes, and a decrease in non-interest expenses.
Net interest income increased by $125,000, or 13.2% during the June 30, 2010 quarter to $1.1 million, compared to $949,000, for the three months ended June 30, 2009. The increase in net interest income was primarily due to increases in interest income of $41,000 and a decrease in interest expense of $84,000. The improved results in this area were due to an increase in our balances in interest earning assets and an increase in our interest rate spread to 2.92% from 2.51%
During the quarter ended June 30, 2010, provision for loan losses was $128,000 compared to $26,000 during the quarter ended June 30, 2009. The increased provision in the current quarter was primarily due to losses expected on one impaired loan and weaker economic conditions in general. Non-interest expenses decreased by $81,000 to $779,000 for the three months ended June 30, 2010, as compared to $860,000 for the three months ended June 30, 2009, primarily due to decreases in FDIC insurance premium, audit and accounting, and legal fees. FDIC insurance premium decreased by $123,000, to $43,000 for the three months ended June 30, 2010, as compared to $166,000 for the three months ended June 30, 2009. This decrease was primarily due to the change in the methodology of the assessment imposed by the FDIC on all institutions.
Income taxes increased by $52,000 to $85,000 for the three months ended June 30, 2010, compared to $33,000 for the three months ended June 30, 2009. The increase in income taxes was due to $118,000 increase in pre-tax income.
At June 30, 2010, the Company had total assets of $157.8 million and stockholders' equity of $14.0 million. In addition, the Company had net loans of $72.4 million, total deposits of $88.8 million, and total borrowings of $53.7 million as of June 30, 2009.
Lincoln Park Savings Bank is a New Jersey state-chartered savings bank that conducts its business from its main office in Lincoln Park, New Jersey. The Company's common stock is traded on the OTC Bulletin Board under the symbol "LPBC".
The foregoing material may contain forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
David G. Baker
President and Chief Executive Officer
SOURCE Lincoln Park Bancorp