LINCOLN PARK, N.J., Nov. 8, 2010 /PRNewswire-FirstCall/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $184,000, or $.11 per share, for the quarter ended September 30, 2010, an increase of $53,000, or 40.5%, as compared to $131,000 or $.07 per share, for the quarter ended September 30, 2009. Net income increased during the period primarily as a result of an increase in net interest income offset by increases in provision for loan losses and non-interest expenses.
Net interest income increased $85,000, or 8.3% during the September 30, 2010, quarter to $1.1 million as compared to $1.0 million for the three months ended September 30, 2009, reflecting a 29 basis points increase in the net interest margin, coupled with an increase of $1.0 million in average net-interest earning assets. The increase in net interest income was primarily due to a decrease in interest expense of $137,000. The improved results in this area were due to a decrease of 53 basis points in the cost of total interest bearing liabilities to 2.03% for the quarter ended September 30, 2010, from 2.56% for the quarter ended September 30, 2009, and an increase in the interest rate spread to 3.03% from 2.68%
During the quarter ended September 30, 2010, provision for loan losses was $80,000 as compared to $56,000 during the quarter ended September 30, 2009. The provision recognized in the current quarter was attributable to a specific reserve that was established on one impaired loan. Non-interest expenses increased by $20,000 to $781,000 for the three months ended September 30, 2010, compared to $761,000 for the three months ended September 30, 2009, primarily due to increases in salaries and employee benefits expense, advertising, and other miscellaneous expenses, offset by decreases in the FDIC premium, and audit and accounting expense.
At September 30, 2010, the Company had total assets of $156.7 million and stockholders' equity of $14.2 million. In addition, the Company had net loans of $69.2 million, total deposits of $85.9 million, and total borrowings of $55.2 million as of September 30, 2010.
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