Lincoln Park Bancorp Announces Earnings for the Year Ended December 31, 2014

LINCOLN PARK, N.J., Feb. 18, 2015 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $1,035,000, or $0.60 per share, for the year ended December 31, 2014, as compared to net income of $747,000, or $0.43 per share, for the year ended December 31, 2013.  The increase in net income of $288,000, or 38.6%, was primarily due to an increase in net interest income before provision for loan losses and an increase in non-interest income, offset by an increase in non-interest expenses.

Net interest income before provision for loan losses increased by $843,000, or 18.0% for the year ended December 31, 2014, to $5.5 million compared to $4.7 million for the year ended December 31, 2013.  The increase in net interest income was primarily due to an increase of $924,000 or 13.7% in total interest income, partially offset by a increase in interest expense of $81,000.  Interest income on securities increased $740,000 to $4,345,000 for the year ended December 31, 2014 compared to $3,605,000 for the year ended December 31, 2013. 

Non-interest income increased by $68,000, or 46.3% for the year ended December 31, 2014 to $215,000, compared to $147,000, for the year ended December 31, 2013.  The primary reason for this increase was a gain on the sale of an OREO property.  Realized gain on sale of available for sale securities was $37,000, for the year ended December 31, 2014, compared to $30,000 for the year ended December 31, 2013.  In addition, the Company incurred a $5,000 loss on securities held to maturity for the period ended December 31, 2014, compared to no loss on the sale of a security held to maturity for the year ended December 31, 2013.

During the year ended December 31, 2014, provision for loan losses was $328,000 as compared to $122,000 during the ended December 31, 2013.   The provision in the current year was primarily due to reserves set up for general loan losses.

Non-interest expenses increased by $289,000 or 8.2%, to $3.8 million for the year ended December 31, 2014, compared to $3.5 million for the year ended December 31, 2013, primarily due to increases in net occupancy expense of premises, equipment, and other miscellaneous expenses.  Net occupancy expense increased by $24,000 or 10.5% to $253,000 for the year ended December 31, 2014, compared to $229,000 for the year ended December 31, 2013, primarily due to an increase in depreciation expense.  Loss on other real estate owned decreased to $103,000 for the year ended December 31, 2014, compared to $121,000 for the year ended December 31, 2013.  Legal fees decreased by $38,000, or 25.5% to $111,000 for the year ended December 31, 2014, compared to $149,000 for the period ended December 31, 2013.  Advertising expense decreased by $24,000, or 34.8% to $45,000, for the year ended December 31, 2014, compared to $69,000 for the year ended December 31, 2013. This decrease was primarily due to a conscious effort by the Bank to advertise in local events.  Miscellaneous expenses increased by $178,000 to $1.2 million for the year ended December 31, 2014, compared to $1.0 million for the year ended December 31, 2013, primarily due to an increase of $169,000 in Board of Directors fees, an increase of $11,000 in tuition reimbursement and $152,000 increase in employee salary and benefits.

Income taxes increased by $128,000 to $594,000 for the year ended December 31, 2014, compared to $466,000, for the year ended December 31, 2013.  The Company recorded $6,000 prior period tax benefit for the year ended December 31, 2014, and $7,000 prior period tax expense adjustment for the year ended December 31, 2013.  

At December 31, 2014, the Company had total assets of $224.1 million and stockholders' equity of $17.2 million.  In addition, the Company had net loans of $75.6 million, total deposits of  $109.9 million, and total borrowings of $95.2 million as of December 31, 2014.

David Baker, President of Lincoln Park Bancorp stated, "The Bank made a concerted effort to obtain higher priced real estate backed loans in 2014 and is quite pleased with the results.  The strategy coupled with a still very low cost of funds led to an overall very good 2014 and Lincoln Park Bancorp is proud to announce its very first net income of over $1 million dollars. 

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.

SOURCE Lincoln Park Bancorp

Related Links

http://www.lincolnparksavings.com