LINCOLN PARK, N.J., Aug. 8, 2014 /PRNewswire/ --Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $327,000, or $.19 per share, for the quarter ended June 30, 2014, compared to net income of $216,000 or $.12 per share, for the quarter ended June 30, 2013. The increase in net income of $111,000 was primarily due to an increase in net interest income after provision for loan losses, partially offset by a decrease in non-interest income, an increase in non-interest expenses, and an increase in income tax expense.
Net interest income after provision for loan losses increased by $291,000, or 26.1% during the quarter ended June 30, 2014 to $1.4 million, compared to $1.2 million for the three months ended June 30, 2013. Total interest income increased by $405,000, or 24.4% to $2.1 million, for the quarter ended June 30, 2014, compared to $1.7 million for the quarter ended June 30, 2013. Interest income on loans increased by $143,000, or 17.7% to $952,000, for the quarter ended June 30, 2014, compared to $809,000 for the quarter ended June 30, 2013. The results in this area were primarily due to an increase of $2.9 million in the average balance of loans and interest recognized on a delinquent loan that was paid off in this quarter. Interest income on securities increased by $262,000, or 30.8% to $1.1 million, for the quarter ended June 30, 2014, compared to $851,000 for the same period ended June 30, 2013. This was due to an increase of $20.3 million in the average balance of securities and an increase of 34 basis points in the yield on securities.
Interest expense on total interest-bearing liabilities increased by $38,000, or 7.6% to $537,000 for the quarter ended June 30, 2014, compared to $499,000, for the quarter ended June 30, 2013. The average balance of interest-bearing liabilities increased by $21.2 million, with a 4 basis points decrease in the total cost of funds.
Provision for loan losses increased by $76,000, or 172.7% to $120,000 for the quarter ended June 30, 2014, compared to $44,000 for the quarter ended June 30, 2013. The increase in the current quarter was primarily due an increase in the level for the provision for general loan losses.
Non-interest income decreased by $25,000, or 45.5% to $30,000 for the quarter ended June 30, 2014, compared to $55,000 for the quarter ended June 30, 2013. The primary reason for this decrease was that for the quarter ended June 30, 2013, the company recognized a gain of $24,000 on the sale of securities available for sale.
Non-interest expenses increased by $93,000 or 11.4% to $908,000 for the quarter ended June 30, 2014, compared to $815,000 for the quarter ended June 30, 2013, primarily due to increases in expenses related to salaries and employee benefits, other real estate owned (OREO) expense, and other miscellaneous expenses. Salaries and employee benefits increased by $41,000 or 15.0% to $315,000 for the quarter ended June 30, 2014, compared to $274,000 for the quarter ended June 30, 2013. This increase was due to general increases in salaries and addition of new employees. Directors' compensation increased by $34,000 for the comparable periods, due to additional meetings during the quarter.
Income taxes increased by $62,000 to $203,000 for the three months ended June 30, 2014, compared to $141,000 for the three months ended June 30, 2013, due to an increase in pre-tax income of $173,000.
At June 30, 2014, the Company had total assets of $223.0 million and stockholders' equity of $16.9 million. In addition, the Company had net loans of $74.4 million, total deposits of $109.2 million, and total borrowings of $95.2 million as of June 30, 2014.
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
