Georgetown Bancorp, Inc. Reports Results for the Three Months and Year Ended December 31, 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 December 31, 2011 of $415,000, or $.16 per basic and diluted share, compared to net income of $467,000, or $.18 per basic and diluted share, for the three months ended December 31, 2010. Net income for the year ended December 31, 2011 was $1.0 million, or $.38 per basic and diluted share, compared to net income of $1.5 million, or $.56 per basic and diluted share, for the year ended December 31, 2010.

Robert E. Balletto, President and Chief Executive Officer, said, aAsset quality trends stabilized during the three months ended December 31, 2011, as we experienced improvement in delinquencies and classified assets from the September 30, 2011 totals. Additionally, non-performing assets to total assets decreased to 1.59% at December 31, 2011 from 1.76% at September 30, 2011 and continue to remain below national averages. Operating results for the year ended December 31, 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 remain focused on building long-term shareholder value.a


Georgetown Bancorp, Inc.
Selected Financial Data



	At or for the		At or for the
	Year Ended		Year Ended
	December 31, 2011		December 31, 2010
	(Dollars in thousands, except share data)
Selected Financial Condition Data:
Total assets	$	199,375	$	205,015
Cash and cash equivalents		19,083		3,298
Loans receivable, net		161,120		178,524
Allowance for loan losses		1,824		1,651
Investment securities (1)		6,496		10,421
Deposits		151,085		151,463
Borrowings		25,694		32,173

Total stockholders' equity		20,329		19,169
Stockholders' equity to total assets at end of period		10.20%		9.35%
Total shares outstanding		2,680,455		2,662,387

Asset Quality Data:
Total non-performing loans	$	3,133	$	253
Other real estate owned		30		53
Total non-performing assets		3,163		306
Non-performing loans to total loans		1.92%		0.14%
Non-performing assets to total assets		1.59%		0.15%
Allowance for loan losses to non-performing loans		58.22%		652.57%
Allowance for loan losses to total loans		1.12%		0.92%
Loans charged off	$	788	$	143
Recoveries on loans previously charged off		12		12

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2011		2010		2011		2010
	(Dollars in thousands, except per share data)
Selected Operating Data:
Interest and dividend income	$	2,558	$	2,849	$	10,705	$	11,179
Interest expense		519		737		2,416		3,330
Net interest income		2,039		2,112		8,289		7,849
Provision for loan losses		124		-		949		188
Net interest income after
provision for loan losses		1,915		2,112		7,340		7,661
Non-interest income		363		470		990		1,339
Non-interest expense		1,606		1,821		6,736		6,692
Income before income taxes		672		761		1,594		2,308
Income tax provision		257		294		583		855
Net income	$	415	$	467	$	1,011	$	1,453

Net income per share: basic	$	0.16	$	0.18	$	0.38	$	0.56
Net income per share: diluted	$	0.16	$	0.18	$	0.38	$	0.56


Performance Ratios:
Return on average assets		0.85%		0.91%		0.51%		0.70%
Return on average equity		8.33%		9.85%		5.14%		7.92%
Interest rate spread		4.24%		4.08%		4.18%		3.73%
Net interest margin		4.43%		4.32%		4.39%		3.99%
Efficiency ratio (2)		66.84%		70.53%		72.59%		72.83%
Non-interest expense to average total assets		3.27%		3.55%		3.37%		3.23%

(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 Months and Year Ended December 31, 2011