LINCOLN PARK, N.J., Nov. 8, 2013 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $132,000, or $.08 per share, for the quarter ended September 30, 2013, a decrease of $47,000, or 26.3%, compared to $179,000 or $.10 per share, for the quarter ended September 30, 2012. Net income decreased during the period primarily due to an increase in non-interest expenses, a decrease in non-interest income, offset by a slight increase in net interest income, a decrease in the provision for loan losses, and a decrease in income tax expense.
Net interest income increased by $15,000, or 1.3% during the September 30, 2013 quarter remaining at $1.1 million, for the quarter ended September 30, 2013, and the quarter ended September 30, 2012. Average interest earning assets increased $9.8 million, or 5.2% during the three months ended September 30, 2013, which consisted of $9.1 million increase in investment securities, a decrease of $644,000 in loans and $1.4 million in other interest earning assets. Interest income on securities increased $3,000, or 0.33% to $923,000 for the quarter ended September 30, 2013, compared to $920,000 for the quarter ended September 30, 2012. Interest income on loans decreased by $48,000 or 6.0% to $756,000 for the quarter ended September 30, 2013, compared to $804,000 for the quarter ended September 30, 2012. The decrease in interest income is a result of lower interest rates in general. Average interest bearing liabilities increased by $8.4 million or 4.9% during the three months September 30, 2013, which consisted of increases of $2.6 million in interest bearing deposits and $5.8 million in borrowings at the Federal Home Loan Bank, NY. Interest expense on interest-bearing liabilities decreased by $60,000 or 10.1% to $535,000, for the quarter ended September 30, 2013, compared to $595,000 for the quarter ended September 30, 2012. The improved results in this area were due to a decrease of 20 basis points in the total cost of interest bearing liabilities to 1.19% for the current quarter from 1.39% for the same period in 2012. The interest rate spread decreased by 8 basis points to 2.20% for the quarter ended September 2013, compared to 2.28% for the quarter ended September 30, 2012. Net interest margin decreased to 2.31% from 2.40% for the quarters ended September 30, 2013 and September 30, 2012, respectively.
During the quarter ended September 30, 2013, provision for loan losses was $49,000, compared to $66,000 during the quarter ended September 30, 2012. The provision recognized in the current quarter was attributable to general loan loss reserves.
Non-interest expenses increased by $129,000, or 16.2% to $927,000 for the quarter ended September 30, 2013 from $798,000, for the quarter ended September 30, 2012, primarily due to increases in legal fees, advertising expense, other real estate owned expense and miscellaneous expenses, offset by decreases in expenses related to salaries and employee benefits, and equipment expense. Other real estate owned expense increased by $61,000 to $63,000, for the quarter ended September 30, 2013, compared to $2,000 for the quarter ended September 30, 2012, primarily due to writing down of $58,000, on one of the two Bank owned properties.
Income tax expense decreased by $56,000 to $61,000 for the three months ending September 30, 2013, compared to $117,000 for the three months ended September 30, 2012, primarily due to a decrease of $103,000 in pre-tax income.
At September 30, 2013, the Company had total assets of $209.6 million and stockholders' equity of $16.0 million. In addition, the Company had net loans of $73.0 million, total deposits of $109.1 million, and total borrowings of $ 82.7 million as of September 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.
Contact: David G. Baker President and Chief Executive Officer (973)-694-0330
SOURCE Lincoln Park Bancorp