Lincoln Park Bancorp Announces Earnings For The Quarter Ended June 30, 2013
LINCOLN PARK, N.J., Aug. 7, 2013 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $216,000, or $.12 per share, for the quarter ended June 30, 2013, compared to net income of $171,000 or $.10 per share, for the quarter ended June 30, 2012. The increase in net income of $45,000 was primarily due to an increase in net interest income after provision for loan losses, an increase in non-interest income, partially offset by an increase in non-interest expenses and an increase in income tax expense.
Net interest income after provision for loan losses increased by $63,000, or 6.0% during the quarter ended June 30, 2013 to $1.2 million, compared to $1.1 million, for the three months ended June 30, 2012. This increase was primarily due to decreases in total interest expense of $120,000, and a decrease in the provision for loan losses of $105,000, offset by a decrease in total interest income of $162,000. The results in this area were due to an increase in the average balances of interest earning assets, coupled with a decrease of 37 basis points in the cost of interest bearing liabilities. Our interest rate spread decreased to 2.28% for the quarter ended June 30, 2013, from 2.50% for the quarter ended June 30, 2012.
Non-interest income increased by $30,000, or 120.0% to $55,000, for the three months ended June 30, 2013, compared to $25,000, for the three months ended June 30, 2012. The primary reason for this increase was an increase of $8,000 in fees and service charges and $24,000 gain on sale of available for sale securities for the quarter ended June 30, 2013, compared to no gains on sales for the quarter ended June 30, 2012.
During the quarter ended June 30, 2013, provision for loan losses was $44,000 compared to $149,000, during the quarter ended June 30, 2012. The decrease in the provision in the current quarter was primarily due to lower amounts of losses expected on three impaired loans and a slight increase in general loan loss allowances, compared to additional losses expected on four impaired loans and a substantial increase in the general loan loss category. Non-interest expenses increased by $16,000 to $815,000 for the three months ended June 30, 2013, compared to $799,000 for the three months ended June 30, 2012, primarily due to increases in expenses related to other real estate owned properties, and legal fees, offset by a decrease in salaries and employee benefits. The increase in other real estate owned (OREO) expense was the major component of the increase in non-interest expenses. OREO expense increased by $29,000 for the three months ended June 30, 2013, to $43,000, compared to $14,000 for the three months ended June 30, 2012. Salaries and employee benefits decreased by $35,000 to $274,000 for the quarter ended June 30, 2013, compared to $309,000, for the quarter ended June 30, 2012.
Income taxes increased by $32,000 to $141,000 for the three months ended June 30, 2013, compared to $109,000 for the three months ended June 30, 2012. The increase in income taxes was due to $77,000 increase in pre-tax income.
At June 30, 2013, the Company had total assets of $199.5 million and stockholders' equity of $16.0 million. In addition, the Company had net loans of $70.4 million, total deposits of $97.4 million, and total borrowings of $84.4 million as of June 30, 2013.
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 unaudited 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
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