Georgetown Bancorp, Inc. Reports June 30, 2006 Results and Announces Stock Repurchase Plan.GEORGETOWN Georgetown, city, Guyana Georgetown, city (1985 est. pop. 75,000), capital and largest city of Guyana, on the Atlantic Ocean at the mouth of the Demerara River. , Mass. -- Georgetown Bancorp, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : GTWN GTWN Global Telecommunications Women's Network ) (the "Company"), holding company for Georgetown Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. (the "Bank"), reported a net loss for the three months ended June June: see month. 30, 2006 of $291,000 or $.11 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus a net loss of $149,000 or $.06 per basic and diluted share for the three months ended June 30, 2005. The net loss for the year ended June 30, 2006 was $380,000 or $.14 per basic and diluted share versus net income of $228,000 for the year ended June 30, 2005. Earnings per share data is not presented for the year ended June 30, 2005, as shares were not issued until January January: see month. 5, 2005. The Company also announced that its Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program pursuant to which the Company intends to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 5% of its issued and outstanding shares, or up to 138,862 shares. The authorized share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. represent approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 11.1% of the Company's publicly traded shares. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. E. Balletto, President and Chief Executive Officer, said, "The current interest rate environment continued to negatively affect the Company's profitability. Improvement in the interest margin is predicated on the Bank's continued focus on commercial banking and retail core deposit account acquisition. Fee income is expected to be bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by our Overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers Privilege A permission or right. In information security, it refers to the modes of operation that a user or a process is granted. Examples include user-level privilege, operator privilege and supervisory privilege. Program, which was launched in April. The increase in non-interest expenses in fiscal 2007 is expected to be more normalized, as compared to the fiscal 2006 increase, which reflected several initiatives that positioned the Company for future success." Commenting on the stock repurchase program, Mr. Balletto said, "We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy for profitable growth, resulting in increased shareholder value. Given our outlook, we believe our common stock is a compelling value at current trading prices Trading price The price at which a security is currently selling. and we believe the deployment of some of the Company's capital into this investment is warranted." Net interest income decreased $255,000, or 21.8% to $913,000 for the three months ended June 30, 2006, from $1.2 million for the same period in 2005. This decrease in net interest income was primarily a result of the decrease in net interest margin to 2.32% during the three months ended June 30, 2006, from 3.18% for the same period in 2005. The 2006 quarterly results do not include a quarterly dividend on the Company's FHLB FHLB Federal Home Loan Bank stock, which totalled $26,000 in the same quarter of 2005, due to a timing change of when the dividend is declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. . Net interest income decreased $347,000, or 7.9% to $4.0 million for the year ended June 30, 2006, from $4.4 million for the same period in 2005. This decrease in net interest income was a result of a decrease in net interest margin to 2.63% during the year ended June 30, 2006, from 3.11% for the same period in 2005, partially offset by the $4.6 million, or 26.9%, increase in net average interest-earning assets to $21.6 million for the year ended June 30, 2006, from $17.0 million during the same period in 2005. The provision for loan losses for the three months ended June 30, 2006 was $50,000 compared to a provision of $48,000 for the three months ended June 30, 2005. The provision for loan losses for the year ended June 30, 2006 was $108,000 compared to $114,000 for the same period in 2005. Non-interest income for the three months ended June 30, 2006 was $104,000, which was unchanged from the $104,000 for the three months ended June 30, 2005. Included in the non-interest income for the three months ended June 30, 2006 was a $56,000 loss on the sale of $2.9 million of investment securities, the proceeds of which were used to payoff maturing FHLB advances in an effort to improve future profitability. Non-interest income for the year ended June 30, 2006 was $454,000, compared to $401,000 for the year ended June 30, 2005. The increase was primarily due to income from the Company's investment services program and the recently launched Overdraft Privilege Program. Non-interest expense for the three months ended June 30, 2006 decreased $84,000 or 5.7% to $1.4 million, compared to $1.5 million for the same period in 2005. The 2005 quarterly results included an expense of $143,000 resulting from partial prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of the Company's ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). loan and the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. cost of the core processing system conversion totaling $111,000. The 2006 results reflected additional operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. related to the North Andover North Andover (ăn`dōvər), town (1990 pop. 22,792), Essex co., NE Mass., on the Merrimack River, in a dairy and farm area; settled c.1644, set off from Andover and inc. 1855. office and additional marketing expense. Non-interest expense for the year ended June 30, 2006 increased $602,000 or 13.9% to $4.9 million compared to $4.3 million for the same period in 2005. The increase in non-interest expense was primarily due to additional operating expenses related to the North Andover office, an increase in marketing expenses and new expenses associated with being a public company. Total assets increased by $9.9 million, or 6.2%, to $168.9 million at June 30, 2006 from $159.0 million at June 30, 2005. Net loans receivable increased $14.0 million, to $128.8 million at June 30, 2006, from $114.8 million at June 30, 2005. Total interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased $8.1 million or 5.4% to $158.7 million at June 30, 2006, from $150.6 million at June 30, 2005. Total deposits increased $6.2 million or 6.9%, to $96.6 million at June 30, 2006 from $90.3 million at June 30, 2005. Total borrowings from the Federal Home Loan Bank increased $4.4 million or 9.4%, to $51.2 million at June 30, 2006 from $46.8 million at June 30, 2005. Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at June 30, 2006 and June 30, 2005 was $18.7 million and $19.3 million, respectively, representing 11.05% and 12.13% of total assets at those dates. The decrease in total stockholders' equity was primarily due to the net loss for the period and the impact of adjusting the market value of available for sale securities due to market interest rate changes.
GEORGETOWN BANCORP, INC.
STATEMENTS OF FINANCIAL CONDITION
-----------------------------------
(unaudited)
ASSETS
At At
June 30, June 30,
2006 2005
---------------- ---------------
(In thousands) (In thousands)
Cash and due from banks $3,257 $1,887
Short-term investments 720 3,191
---------------- --------------
Total cash and cash
equivalents 3,977 5,078
Securities available for sale, at
fair value 15,465 16,814
Securities held to maturity, at
amortized cost 9,823 12,380
Federal Home Loan Bank stock, at
cost 2,905 2,526
Loans, net of allowance for loan
losses of $1,016,000
at June 30, 2006 and $882,000
at June 30, 2005 128,778 114,781
Premises and equipment, net 5,230 4,885
Accrued interest receivable 674 680
Bank-owned life insurance 1,211 1,166
Other assets 852 717
---------------- --------------
Total assets $168,915 $159,027
================ ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $96,571 $90,336
Short-term borrowings 22,300 28,350
Long-term Federal Home Loan Bank
advances 28,921 18,468
Securities sold under agreements to
repurchase 762 989
Mortgagors' escrow accounts 289 268
Accrued expenses and other
liabilities 1,413 1,331
---------------- --------------
Total liabilities 150,256 139,742
---------------- --------------
Commitments and Contingencies - -
Stockholders' equity:
Preferred stock, $0.10 par value
per share: 1,000,000
shares authorized; none outstanding - -
Common Stock, $0.10 par value per
share: 10,000,000
shares authorized; 2,777,250 shares
issued and outstanding 278 278
Additional paid-in capital 11,452 11,452
Retained earnings 7,996 8,383
Accumulated other comprehensive
loss (330) (17)
Unearned compensation - ESOP (737) (811)
---------------- --------------
Total stockholders'
equity 18,659 19,285
---------------- --------------
Total liabilities
and stockholders'
equity $168,915 $159,027
================ ==============
GEORGETOWN BANCORP, INC.
STATEMENTS OF OPERATIONS
---------------------------
(unaudited)
Three Months Ended Year Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
---------- ---------- ---------- ---------
(Dollars in Thousands except per share data)
Interest and dividend income:
Loans, including fees $1,746 $1,567 $6,650 $5,871
Investment interest and
dividends 320 347 1,355 1,139
Short-term investments 22 17 122 119
---------- ---------- ---------- ---------
Total interest
and dividend
income 2,088 1,931 8,127 7,129
---------- ---------- ---------- ---------
Interest expense:
Deposits 576 370 1,933 1,392
Short-term borrowings 256 210 1,084 581
Long-term Federal Home Loan
Bank advances 342 181 1,054 751
Securities sold under
agreements to
repurchase 1 2 7 9
---------- ---------- ---------- ---------
Total interest
expense 1,175 763 4,078 2,733
---------- ---------- ---------- ---------
Net interest income 913 1,168 4,049 4,396
Provision for loan losses 50 48 108 114
---------- ---------- ---------- ---------
Net interest income, after
provision for loan losses 863 1,120 3,941 4,282
---------- ---------- ---------- ---------
Non-interest income:
Customer service fees 142 87 439 325
Loss on sale of
securities available
for sale (56) - (56) (2)
Income from bank-owned
life insurance 12 11 46 45
Other 6 6 25 33
---------- ---------- ---------- ---------
Total non-
interest
income 104 104 454 401
---------- ---------- ---------- ---------
Non-interest expenses:
Salaries and employee
benefits 723 830 2,742 2,342
Occupancy and equipment
expenses 231 170 808 644
Data processing
expenses 79 70 238 288
Professional fees 82 74 356 263
Advertising expense 92 33 228 121
Other general and
administrative
expenses 167 281 576 688
---------- ---------- ---------- ---------
Total non-
interest
expenses 1,374 1,458 4,948 4,346
---------- ---------- ---------- ---------
(Loss) income before income
taxes (407) (234) (553) 337
Income tax (benefit)
expense (116) (85) (173) 109
---------- ---------- ---------- ---------
Net (loss) income $(291) $(149) $(380) $228
========== ========== ========== =========
Net loss per share:
Basic and diluted ($0.11) ($0.06) ($0.14) N/A
Basic and diluted weighted
average shares outstanding 2,701,751 2,677,477 2,699,231 N/A
About Georgetown Savings Bank Founded in 1868, Georgetown Savings Bank, with branches in Georgetown, MA, North Andover, MA and Rowley Rowley may refer to geographical places:
Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release may contain certain forward-looking statements, such as statements of the Company's or the Bank's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as "expects," "subject," "believe," "will," "intends," "will be" or "would." These statements are subject to change based on various important factors (some of which are beyond the Company's or the Bank's control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date of which they are given). These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, the ability of the Company or the Bank to effectively manage its growth, and results of regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. examinations, among other factors. The foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Company files from time to time with the Securities and Exchange Commission, including Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . |
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