LINCOLN PARK, N.J., Feb. 8, 2013 /PRNewswire/ --Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $656,000, or $.38 per share, for the year ended December 31, 2012, as compared to net income of $768,000, or $.44 per share, for the year ended December 31, 2011. The decrease in net income of $112,000, or 14.6%, was primarily due to a decrease in net interest income, a decrease in non-interest income, an increase in the provision for loan losses, an increase in income tax expense, off set by a decrease in non-interest expenses.
Net interest income decreased by $54,000, or 1.2% for the year ended December 31, 2012. Net interest income remained at $4.6 million for the years ended December 31, 2012 and December 31, 2011. The decrease in net interest income was primarily due toa decrease in total interest income of $420,000 or 5.7%, partially offset by a decrease in interest expense of $366,000. Net average interest earning assets increased by $2.7 million to $17.1 million for the year ended December 31, 2012, compared to $14.3 million for the year ended December 31, 2011, coupled with a decrease of 24 basis points in our net interest margin.
Non-interest income decreased by $77,000, or 41.6% for the year ended December 31, 2012 to $108,000, compared to $185,000, for the year ended December 31, 2011. The primary reason for this decrease was a decrease in income from fees and service charges of $25,000 or 22.1%. Impairment losses on securities available for sale amounted to $2,000, for the year ended December 31, 2012, compared to impairment losses of $19,000 on securities on available for sale for the year ended December 31, 2011. Realized gain on sale of available for sale securities was $7,000, for the year ended December 31, 2012, compared to $58,000 for the year ended December 31, 2011. In addition, the Company incurred a loss of $22,000 on the sale of a security held to maturity for the year ended December 31, 2012, compared to no losses in the held to maturity category for the year ended December 31, 2011.
During the year ended December 31, 2012, provision for loan losses was $270,000 as compared to $120,000 during the yearended December 31, 2011. The provision in the current year was primarily due to losses expected on three impaired loans, and reserves set up for general loan losses. Non-interest expenses decreased by $237,000 or 6.9%, to $3.2 million for the year ended December 31, 2012, compared to $3.4 million for the year ended December 31, 2011, primarily due to decreases in salaries and employee benefits expense, equipment expense, losses on real estate owned and advertising expense, offset by increases in expenses related to occupancy, legal fees, audit related expenses, and other miscellaneous expenses. Salaries and employee benefits decreased by $49,000 or 3.8% to $1.2 million for the year ended December 31, 2012, compared to $1.3 million for the year ended December 31, 2011. Equipment expense decreased by $159,000 or 27.8% to $413,000 for the year ended December 31, 2012, compared to $572,000 for the year ended December 31, 2011. The decrease in the year 2012 was primarily due to the Bank incurring additional costs in the year 2011, by moving to a new service provider. Loss on real estate owned decreased by $91,000 or 83.5% to $18,000 for the year ended December 31, 2012, compared to $109,000 for the year ended December 31, 2011. As of December 31, 2012, the Bank added one property to its real estate owned property account. Legal fees increased by $31,000, or 47.7% to $96,000 for the year ended December 31, 2012, compared to $65,000 for the year ended December 31, 2011, primarily due to the addition of a legal advisor to the Board of Directors.
Income taxes increased by $68,000 to $573,000 for the year ended December 31, 2012, compared to $505,000, for the year ended December 31, 2011. The increase in income taxes was primarily due to a prior period adjustment of $63,000, for the year ended December 31, 2012.
At December 31, 2012, the Company had total assets of $189.7 million and stockholders' equity of $15.6 million. In addition, the Company had net loans of $72.2 million, total deposits of$96.9 million, and total borrowings of $75.6 million as of December 31, 2012.
David Baker, President of Lincoln Park Bancorp stated, "The weak housing market in New Jersey offered the Bank continuing challenges in 2012. The Board of Directors and I feel that with early growth in that portion of the economy in 2013, the Bank will continue to be a profitable and competitive fixture in our market. We look forward to 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
