LINCOLN PARK, N.J., Aug. 12, 2011 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $160,000, or $.09 per share, for the quarter ended June 30, 2011, compared to net income of $131,000 or $.07 per share, for the quarter ended June 30, 2010. The increase in net income of $29,000 was primarily due to increases in net interest income and a decrease in the provision for loan losses, partially offset by an increase in non-interest expenses, an increase in income tax expense, and a decrease in non-interest income.
Net interest income increased by $74,000, or 6.9% during the quarter ended June 30, 2011 to $1.2 million, compared to $1.1 million, for the three months ended June 30, 2010. The increase in net interest income was primarily due to increases in interest income of $18,000 and a decrease in interest expense of $56,000. The improved results in this area were due to an increase in the average balances of interest earning assets, coupled with a decrease in the cost of interest bearing liabilities. Our interest rate spread increased to 2.54% for the quarter ended June 30, 2011, from 2.43% for the quarter ended June 30, 2010.
During the quarter ended June 30, 2011, provision for loan losses was $9,000 compared to $128,000 during the quarter ended June 30, 2010. The decreased provision in the current quarter was primarily due to a decrease in our loan portfolio and no additional losses expected on impaired loans. Non-interest expenses increased by $140,000 to $919,000 for the three months ended June 30, 2011, compared to $779,000 for the three months ended June 30, 2010, primarily due to increases in equipment expense, salaries and employee benefits, FDIC insurance premium, and miscellaneous expenses. The increase in equipment expense was the major component of the increase in non-interest expenses. Equipment expense increased by $116,000 for the three months ended June 30, 2011, to $210,000, compared to $94,000 for the three months ended June 30, 2010. This increase was primarily due to upgrading and converting the core processes to a new service provider.
Income taxes increased by $16,000 to $101,000 for the three months ended June 30, 2011, compared to $85,000 for the three months ended June 30, 2010. The increase in income taxes was due to $45,000 increase in pre-tax income.
At June 30, 2011, the Company had total assets of $178.4 million and stockholders' equity of $14.6 million. In addition, the Company had net loans of $69.2 million, total deposits of $96.8 million, and total borrowings of $65.6 million as of June 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