Georgetown Bancorp (GTWN) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.07 million, or $ 0.04 a share in the quarter, against a net profit of $0.48 million, or $0.27 a share in the last year period. Revenue during the quarter dropped 4.17 percent to $2.83 million from $2.95 million in the previous year period. Net interest income for the quarter dropped 1.73 percent over the prior year period to $2.62 million. Non-interest income for the quarter fell 24.57 percent over the last year period to $0.26 million.
Georgetown Bancorp has made provision of $0.05 million for loan losses during the quarter, down 14.52 percent from $0.06 million in the same period last year.
Net interest margin contracted 31 basis points to 3.43 percent in the quarter from 3.74 percent in the last year period. Efficiency ratio for the quarter deteriorated to 94.31 percent from 71.96 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Robert E. Balletto, president and chief executive officer, said, "Our earnings for the three months and year ended December 31, 2016 continued to reflect earnings pressure primarily due to overhead costs and a compression of our net interest margin percentage. The increase in overhead was primarily due to the enhancement of our regulatory compliance staff and compliance programs and the additional commercial lending support staff we added in late 2015, in line with continued commercial loan growth. The decrease in net interest margin percentage was primarily due to an increase in our cost of funds. Also negatively impacting net income for the three months and year ended December 31, 2016 was $363,000 and $499,000, respectively, in merger related expenses, the majority of which is not tax deductible for income tax purposes."
Deposits stood at $240.51 million as on Dec. 31, 2016, up 15.78 percent compared with $207.73 million on Dec. 31, 2015.
Investments were almost stable over the past one year at $24.68 million on Dec. 31, 2016. Shareholders equity was at $32.13 million as on Dec. 31, 2016.
Return on average assets was negative at 0.09 percent in the quarter against a positive 0.66 percent in the last year period. Return on average equity was negative at 0.94 percent in the quarter against a positive 6.23 percent in the last year period.
Nonperforming assets moved up 22.81 percent or $0.18 million to $0.95 million on Dec. 31, 2016 from $0.78 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.30 percent in the quarter, up from 0.26 percent in the last year period.
Book value per share for quarter was stable at $17.45, when compared with the previous year period.
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