Georgetown Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2011

GEORGETOWN, Mass.--([ BUSINESS WIRE ])--Georgetown Bancorp, Inc. (OTCBB: GTWN) (the aCompanya), holding company for Georgetown Savings Bank (the aBanka), reported net income for the three months ended September 30, 2011 of $284,000, or $.11 per basic and diluted share, compared to net income of $365,000, or $.14 per basic and diluted share, for the three months ended September 30, 2010. Net income for the nine months ended September 30, 2011 was $596,000, or $.23 per basic and diluted share, compared to net income of $986,000, or $.38 per basic and diluted share, for the nine months ended September 30, 2010.

Robert E. Balletto, President and Chief Executive Officer, said, aOperating results for the three months ended September 30, 2011 reflected a return to more normalized earnings as there were no major charge-offs and non-performing assets to total assets totaled 1.76% and remained below local and national averages. Operating results for the nine months ended September 30, 2011 were negatively affected primarily by the charge-off of one, large, out-of-market, residential home equity loan. We believe this charge-off is not a reflection of a negative trend in our loan portfolio overall. The Company continues to focus on generating commercial loan and core deposit growth, which we believe will build long-term shareholder value.a


Georgetown Bancorp, Inc.
Selected Financial Data



	At or for the		At or for the
	Nine Months Ended		Year Ended
	September 30, 2011		December 31, 2010
	(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets	$	195,590	$	205,015
Cash and cash equivalents		6,685		3,298
Loans receivable, net		167,662		178,524
Allowance for loan losses		1,742		1,651
Investment securities (1)		8,691		10,421
Deposits		147,999		151,463
Borrowings		25,683		32,173

Total stockholders' equity		19,887		19,169
Stockholders' equity to total assets at end of period		10.17%		9.35%
Total shares outstanding		2,680,455		2,662,387

Asset Quality Data:
Total non-performing loans	$	3,392	$	253
Other real estate owned		53		53
Total non-performing assets		3,445		306
Non-performing loans to total loans		2.00%		0.14%
Non-performing assets to total assets		1.76%		0.15%
Allowance for loan losses to non-performing loans		51.36%		652.57%
Allowance for loan losses to total loans		1.03%		0.92%
Loans charged off	$	744	$	143
Recoveries on loans previously charged off		10		12

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
		2011		2010		2011		2010
	(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend income	$	2,573	$	2,830	$	8,147	$	8,330
Interest expense		581		857		1,897		2,593
Net interest income		1,992		1,973		6,250		5,737
Provision for loan losses		80		23		825		188
Net interest income after provision for loan losses		1,912		1,950		5,425		5,549
Non-interest income		203		308		627		869
Non-interest expense		1,664		1,676		5,130		4,871
Income before income taxes		451		582		922		1,547
Income tax provision		167		217		326		561
Net income	$	284	$	365	$	596	$	986

Net income per share: basic	$	0.11	$	0.14	$	0.23	$	0.38
Net income per share: diluted	$	0.11	$	0.14	$	0.23	$	0.38


Performance Ratios:
Return on average assets		0.58%		0.69%		0.40%		0.63%
Return on average equity		5.75%		7.87%		4.06%		7.25%
Interest rate spread		4.09%		3.70%		4.15%		3.62%
Net interest margin		4.32%		3.95%		4.37%		3.88%
Efficiency ratio (2)		75.83%		73.50%		74.60%		73.73%
Non-interest expense to average total assets		3.41%		3.18%		3.40%		3.13%

(1) Does not include Federal Home Loan Bank Stock of $3.1 million.
(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.

About Georgetown Bancorp, Inc.

Georgetown Bancorp, Inc. is the holding company for Georgetown Savings Bank. Georgetown Savings Bank, with branch offices in Georgetown, North Andover and Rowley, Massachusetts, is committed to making a positive difference in the communities we serve. We strive to deliver exceptional personal service at all times and to help each of our customers achieve their unique financial goals through a competitive array of commercial and consumer banking services. To learn more about Georgetown Savings Bank, visit [ www.georgetownsb.com ] or call 978-352-8600.

Forward-looking statements

This news release may contain certain forward-looking statements, such as statements of the Companyas or the Bankas plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as aexpects,a asubject,a abelieve,a awill,a aintends,a awill bea or awould.a These statements are subject to change based on various important factors (some of which are beyond the Companyas or the Bankas control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect managementas 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 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.

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Georgetown Bancorp, Inc. Reports Results for the Three and Nine Months Ended September 30, 2011