LINCOLN PARK, N.J., Feb. 14, 2011 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $694,000, or $.40 per share, for the year ended December 31, 2010, as compared to net income of $492,000, or $.28 per share, for the year ended December 31, 2009. The increase in net income of $202,000 was primarily due to an increase in net interest income and non-interest income that exceeded increases in provision for loan losses, non-interest expenses and income tax expense.
Net interest income increased by $379,000, or 10.2% for the year ended December 31, 2010 to $4.1 million as compared to $3.7 million for year ended December 31, 2009. The increase in net interest income was primarily due to a significant decrease in interest expense of $468,000, partially offset by a decrease in interest income by $81,000.
Non-interest income increased by $72,000, or 59.0% for the year ended December 31, 2010 to $194,000, compared to $122,000, for the year ended December 31, 2009. The primary reason for this increase was that impairment losses were $3,000, for the year ended December 31, 2010, compared to impairment losses of $52,000 on securities on available for sale for the year ended December 31, 2009. Gain on sale of available for sale and held to maturity securities was $43,000, for the year ended December 31, 2010, compared to $33,000 for the year ended December 31, 2009.
During the year ended December 31, 2010, provision for loan losses was $229,000 as compared to $221,000 during the ended December 31, 2009. The provision in the current year was primarily due to losses expected on one restructured loan, one impaired loan, and reserves set up for loan losses in general . Non-interest expenses increased by $126,000 to $3.1 million for the year ended December 31, 2010, compared to $3.0 million for the year ended December 31, 2009, primarily due to increases in losses on real estate owned, salaries and employee benefits, advertising expense and other miscellaneous expenses, offset by decreases in expenses related to FDIC insurance premium, audit and accounting, and legal expenses. Loss on real estate owned increased by $100,000 for the year ended December 31, 2010, compared to no losses in the period ending December 31, 2009. Miscellaneous expenses increased by $113,000 or 16.3% for the year ended December 31, 2010 to $807,000, compared to $694,000 for the year ended December 31, 2009. This increase was primarily due to increases in consulting services, correspondent bank charges, and Board related fees.
Income taxes increased by $123,000 to $447,000 for the year ended December 31, 2010, compared to $324,000, for the year ended December 31, 2009. The increase in income taxes was due to an increase of $325,000 in pre-tax income.
At December 31, 2010, the Company had total assets of $160.6 million and stockholders' equity of $14.3 million. In addition, the Company had net loans of $68.8 million, total deposits of $82.4 million and total borrowings of $62.4 million as of December 31, 2010.
David Baker, President of Lincoln Park Bancorp stated, "The Board of Directors and I feel that the Bank showed remarkable growth and profit in a very challenging year. We look forward to meeting the challenges of 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