Georgetown Bancorp, Inc. Reports Earnings and Announces Quarterly Cash Dividend

Georgetown Bancorp, Inc. (NASDAQ: GTWN) (the “Company”), holding company for Georgetown Bank (the “Bank”), reported net income for the three months ended March 31, 2017 of $278,000, or $0.16 per basic share and $0.15 per diluted share, compared to net income of $80,000, or $0.05 per basic and diluted share, for the three months ended March 31, 2016.

Robert E. Balletto, President and Chief Executive Officer, said, “The improvement in our earnings for the three months ended March 31, 2017 compared to the three months ended March 31, 2016 was primarily due to the expansion of our net interest and dividend income, driven by commercial real estate loan growth and a reduction in overhead. The reduction in overhead was primarily due to a reduction in marketing and recruitment expenses. Included in non-interest expense for the three months ended March 31, 2017 was $96,000 in merger related expenses, the majority of which is not tax deductible for income tax purposes.”

As previously reported, on October 6, 2016, the Company announced that it had signed a definitive agreement with Salem Five Bancorp, parent of Salem Five Cents Savings Bank, whereby Salem Five Bancorp agreed to acquire the Company and the Bank, in an all cash transaction valued at approximately $49.2 million, or $26.00 per share. On February 13, 2017, the transaction was approved by the shareholders of the Company. The transaction is subject to receipt of state and federal regulatory approvals.

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.05 per share of common stock. The dividend will be paid on or about May 22, 2017, to stockholders of record as of the close of business on May 8, 2017.

Georgetown Bancorp, Inc.Selected Financial Data

 

        
      
      
        
        
        
           
        
        
           
        
        
        
        
        
        
           
        
        
           
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          At or for the
        
        
        
        
        
        
          At or for the
        
        
        
      
      
        
        
        
        
        
        
        
          Three Months Ended
        
        
        
        
        
        
          Year Ended
        
        
        
      
      
        
        
        
        
        
        
        
          March 31, 2017
        
        
        
        
        
        
          December 31, 2016
        
        
        
      
      
        
        
        
        
        
        
        
          (Dollars in thousands, except share data)
        
        
        
      
      
        
          

Condensed Consolidated Balance Sheet:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
        
        
          $
        
        
          8,153
        
        
        
        
        
        
        
        
          $
        
        
          6,129
        
        
        
        
        
      
      
        
          Investment securities
        
        
        
        
        
        
        
        
          24,120
        
        
        
        
        
        
        
        
        
        
          24,676
        
        
        
        
        
      
      
        
          Loans receivable
        
        
        
        
        
        
        
        
          282,209
        
        
        
        
        
        
        
        
        
        
          280,247
        
        
        
        
        
      
      
        
          Allowance for loan losses
        
        
        
        
        
        
        
        
          (2,642
        
        
          )
        
        
        
        
        
        
        
        
          (2,605
        
        
          )
        
        
        
      
      
        
          Premises and equipment
        
        
        
        
        
        
        
        
          4,035
        
        
        
        
        
        
        
        
        
        
          4,133
        
        
        
        
        
      
      
        
          Other assets
        
        
        
        
        
        
           
        
        
          5,987
        
        
           
        
        
        
        
        
        
           
        
        
          6,052
        
        
           
        
        
        
      
      
        
          Total assets
        
        
        
        
        
        
          $
        
        
          321,862
        
        
           
        
        
        
        
        
        
          $
        
        
          318,632
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Deposits
        
        
        
        
        
        
          $
        
        
          240,530
        
        
        
        
        
        
        
        
          $
        
        
          240,508
        
        
        
        
        
      
      
        
          FHLB advances
        
        
        
        
        
        
        
        
          44,600
        
        
        
        
        
        
        
        
        
        
          41,850
        
        
        
        
        
      
      
        
          Other liabilities
        
        
        
        
        
        
           
        
        
          4,329
        
        
           
        
        
        
        
        
        
           
        
        
          4,118
        
        
           
        
        
        
      
      
        
          Total liabilities
        
        
        
        
        
        
        
        
          289,459
        
        
        
        
        
        
        
        
        
        
          286,476
        
        
        
        
        
      
      
        
          Total stockholders' equity
        
        
        
        
        
        
           
        
        
          32,403
        
        
           
        
        
        
        
        
        
           
        
        
          32,156
        
        
           
        
        
        
      
      
        
          Total liabilities & stockholders' equity
        
        
        
        
        
        
          $
        
        
          321,862
        
        
           
        
        
        
        
        
        
          $
        
        
          318,632
        
        
           
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' equity to total assets at end of period
        
        
        
        
        
        
        
        
          10.07
        
        
          

%

 

        
        
        
        
          10.09
        
        
          

%

 

        
      
      
        
          Total shares outstanding
        
        
        
        
        
        
        
        
          1,836,250
        
        
        
        
        
        
        
        
        
        
          1,840,920
        
        
        
        
        
      
      
        
          Book value per share
        
        
        
        
        
        
          $
        
        
          17.65
        
        
        
        
        
        
        
        
          $
        
        
          17.47
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Asset Quality Data:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Total non-performing loans
        
        
        
        
        
        
          $
        
        
          937
        
        
        
        
        
        
        
        
          $
        
        
          953
        
        
        
        
        
      
      
        
          Other real estate owned
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
      
      
        
          Total non-performing assets
        
        
        
        
        
        
        
        
          937
        
        
        
        
        
        
        
        
        
        
          953
        
        
        
        
        
      
      
        
          Non-performing loans to total loans
        
        
        
        
        
        
        
        
          0.34
        
        
          

%

 

        
        
        
        
          0.34
        
        
          %
        
      
      
        
          Non-performing assets to total assets
        
        
        
        
        
        
        
        
          0.29
        
        
          

%

 

        
        
        
        
          0.30
        
        
          %
        
      
      
        
          Allowance for loan losses to non-performing loans
        
        
        
        
        
        
        
        
          281.96
        
        
          

%

 

        
        
        
        
          273.35
        
        
          %
        
      
      
        
          Allowance for loan losses to total loans
        
        
        
        
        
        
        
        
          0.94
        
        
          

%

 

        
        
        
        
          0.93
        
        
          %
        
      
      
        
          Loans charged off
        
        
        
        
        
        
          $
        
        
          3
        
        
        
        
        
        
        
        
          $
        
        
          3
        
        
        
        
        
      
      
        
          Recoveries on loans previously charged off
        
        
        
        
        
        
        
        
          1
        
        
        
        
        
        
        
        
        
        
          6
        
        
        
        
        
      
    
    
      
        
        
        
           
        
        
           
        
        
        
        
        
        
        
        
           
        
        
           
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Three Months Ended
        
        
        
      
      
        
        
        
        
        
        
        
          March 31,
        
        
        
      
      
        
        
        
        
        
        
        
          2017
        
        
        
        
        
        
        
        
          2016
        
        
        
      
      
        
        
        
        
        
        
        
          (Dollars in thousands, except per share data)
        
        
        
      
      
        
          

Condensed Consolidated Statement of Income:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Interest and dividend income
        
        
        
        
        
        
          $
        
        
          3,395
        
        
        
        
        
        
        
        
          $
        
        
          3,163
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
           
        
        
          662
        
        
        
        
        
        
        
        
           
        
        
          574
        
        
        
      
      
        
          Net interest and dividend income
        
        
        
        
        
        
        
        
          2,733
        
        
        
        
        
        
        
        
        
        
          2,589
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
           
        
        
          39
        
        
        
        
        
        
        
        
           
        
        
          74
        
        
        
      
      
        
          Net interest and dividend income after provision for loan losses
        
        
        
        
        
        
        
        
          2,694
        
        
        
        
        
        
        
        
        
        
          2,515
        
        
        
      
      
        
          Non-interest income
        
        
        
        
        
        
        
        
          216
        
        
        
        
        
        
        
        
        
        
          242
        
        
        
      
      
        
          Non-interest expense
        
        
        
        
        
        
           
        
        
          2,482
        
        
        
        
        
        
        
        
           
        
        
          2,637
        
        
        
      
      
        
          Income before income taxes
        
        
        
        
        
        
        
        
          428
        
        
        
        
        
        
        
        
        
        
          120
        
        
        
      
      
        
          Income tax provision
        
        
        
        
        
        
           
        
        
          150
        
        
        
        
        
        
        
        
           
        
        
          40
        
        
        
      
      
        
          Net income
        
        
        
        
        
        
          $
        
        
          278
        
        
        
        
        
        
        
        
          $
        
        
          80
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income per share: basic
        
        
        
        
        
        
          $
        
        
          0.16
        
        
        
        
        
        
        
        
          $
        
        
          0.05
        
        
        
      
      
        
          Net income per share: diluted
        
        
        
        
        
        
          $
        
        
          0.15
        
        
        
        
        
        
        
        
          $
        
        
          0.05
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Performance Ratios:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Return on average assets
        
        
        
        
        
        
        
        
          0.35
        
        
          %
        
        
        
        
        
        
        
        
          0.11
        
        
          %
        
      
      
        
          Return on average stockholders' equity
        
        
        
        
        
        
        
        
          3.59
        
        
          %
        
        
        
        
        
        
        
        
          1.03
        
        
          %
        
      
      
        
          Interest rate spread
        
        
        
        
        
        
        
        
          3.32
        
        
          %
        
        
        
        
        
        
        
        
          3.37
        
        
          %
        
      
      
        
          Interest rate spread - tax equivalent basis (1)
        
        
        
        
        
        
        
        
          3.33
        
        
          %
        
        
        
        
        
        
        
        
          3.38
        
        
          %
        
      
      
        
          Net interest margin
        
        
        
        
        
        
        
        
          3.51
        
        
          %
        
        
        
        
        
        
        
        
          3.55
        
        
          %
        
      
      
        
          Net interest margin - tax equivalent basis (1)
        
        
        
        
        
        
        
        
          3.52
        
        
          %
        
        
        
        
        
        
        
        
          3.57
        
        
          %
        
      
      
        
          Efficiency ratio (2)
        
        
        
        
        
        
        
        
          84.15
        
        
          %
        
        
        
        
        
        
        
        
          93.15
        
        
          %
        
      
      
        
          Non-interest expense to average total assets
        
        
        
        
        
        
        
        
          3.10
        
        
          %
        
        
        
        
        
        
        
        
          3.51
        
        
          %
        
      
    
    

(1) Presented on a tax-equivalent basis using a tax rate of 34% resulting in an adjustment of $10,000 and $9,000 to investment security income for the three months ended March 31, 2017 and 2016, respectively.(2) The efficiency ratio represents non-interest expense divided by the sum of net interest and dividend income and non-interest income.

About Georgetown Bancorp, Inc.

Georgetown Bancorp, Inc. is the holding company for Georgetown Bank. Georgetown Bank, with branch offices in Georgetown, North Andover and Rowley, Massachusetts, as well as Stratham, New Hampshire, is committed to making a positive difference in the markets we serve. Our highest priority is to provide exceptional personal service, act with high ethical standards and in the best interest of our customers, employees, shareholders and business partners. We strive to help each of our customers achieve their unique financial goals through a competitive array of financial products and services. To learn more about Georgetown Bank, visit www.georgetownbank.com or call 978-352-8600.

Forward-looking statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include statements regarding the anticipated closing date of the transaction and anticipated future results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Certain factors that could cause actual results to differ materially from expected results include delays in completing the merger, including delays in obtaining regulatory approval, difficulties in achieving cost savings from the merger or in achieving such cost savings within the expected time frame, difficulties in integrating Georgetown Bancorp, Inc. and Salem Five Bancorp, increased competitive pressures, changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business in which Georgetown Bancorp, Inc. and Salem Five Bancorp are engaged, changes in the securities markets and other risks and uncertainties.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170425006323/en/

Georgetown Bancorp, Inc.Joseph W. Kennedy, 978-352-8600Senior Vice President/[e-mail]