Lincoln Park Bancorp Announces Earnings for the September 30, 2011 Quarter
LINCOLN PARK, N.J., Nov. 8, 2011 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $221,000, or $.13 per share, for the quarter ended September 30, 2011, an increase of $37,000, or 20.1%, compared to $184,000 or $.11 per share, for the quarter ended September 30, 2010. Net income increased during the period primarily as a result of an increase in net interest income, offset by a decrease in non-interest income, a decrease in the provision for loan losses, an increase in non-interest expenses, and an increase in income tax expense.
Net interest income increased $91,000, or 8.2% during the September 30, 2011 quarter to $1.2 million, as compared to $1.1 million for the three months ended September 30, 2010, reflecting an increase of $5.2 million in average net interest earning assets, offset by a 40 basis points decrease in the net interest margin. Average interest earning assets increased $24.8 million, or 16.6% during the three months ended September 30, 2011, which consisted of $25.8 million increase in investment securities, offset by decreases of $ $912,000 in loans and $46,000 in other interest- earning assets. Interest income on securities increased by $165,000, or 18.4% to $1.1 million for the quarter ended September 30, 2011, compared to $897,000 for the quarter ended September 30, 2010. Interest income on loans decreased by $71,000, or 7.7% to $851,000 for the quarter ended September 30, 2011, compared to $922,000 for the quarter ended September 30, 2010. Average interest bearing liabilities increased by $19.6 million or 14.1%, during the three months ended September 30, 2011, which consisted of increases of $8.4 million in interest bearing deposits and $11.2 million in borrowings. Interest expense on interest-bearing liabilities increased slightly by $2,000, or 0.28% to $708,000, for the quarter ended September 30, 2011, compared to $706,000 for the quarter ended September 30, 2010. The improved results in this area were due to a decrease of 25 basis points in the cost of total interest bearing liabilities to 1.78% for the quarter ended September 30, 2011, from 2.03% for the quarter ended September 30, 2010. The interest rate spread decreased by 42 basis points to 2.61% for the quarter ended September 30, 2011, compared to 3.03% for the quarter ended September 30, 2010.
During the quarter ended September 30, 2011, provision for loan losses was $44,000, compared to $80,000 during the quarter ended September 30, 2010. The provision recognized in the current quarter was attributable to general loan loss reserves. Non-interest income decreased by $21,000 or 42.0% to $29,000 for the quarter ended September 30, 2011 from $50,000 for the quarter ended September 30, 2010, primarily due to impairment losses of $16,000 on equity securities.
Non-interest expenses increased by $39,000, or 5.0% to $820,000 for the quarter ended September 30, 2011 from $781,000, for the quarter ended September 30, 2010, primarily due to increases in equipment expense, real estate owned expense, and other miscellaneous expenses, offset by decreases in the FDIC premium, and advertising expense. Income tax expense increased by $30,000 to $149,000 for the three months ending September 30, 2011, compared to $119,000 for the three months ended September 30, 2010, due to an increase of $67,000 in pre-tax income.
At September 30, 2011, the Company had total assets of $181.2 million and stockholders' equity of $14.9 million. In addition, the Company had net loans of $71.3 million, total deposits of $97.5 million, and total borrowings of $67.4 million as of September 30, 2011.
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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