Georgetown Bancorp (GTWN) has reported 91.76 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.04 million, or $0.02 a share in the quarter, compared with $0.42 million, or $0.24 a share for the same period last year. Revenue during the quarter dropped 3.40 percent to $2.72 million from $2.82 million in the previous year period. Net interest income for the quarter dropped 0.39 percent over the prior year period to $2.55 million. Non-interest income for the quarter fell 34.76 percent over the last year period to $0.24 million.
Georgetown Bancorp has made provision of $0.07 million for loan losses during the quarter, down 39.64 percent from $0.11 million in the same period last year.
Net interest margin contracted 34 basis points to 3.43 percent in the quarter from 3.77 percent in the last year period. Efficiency ratio for the quarter deteriorated to 92.64 percent from 72.57 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 and nine months ended September 30, 2016 reflect continued 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 was $136,000 in merger related expenses that are not tax deductible for income tax purposes."
Investments stood at $23.90 million as on Sep. 30, 2016. Shareholders equity was at $32.44 million as on Sep. 30, 2016.
Return on average assets moved down 56 basis points to 0.05 percent in the quarter from 0.61 percent in the last year period. At the same time, return on average equity decreased 514 basis points to 0.45 percent in the quarter from 5.59 percent in the last year period.
Nonperforming assets stood at $0.96 million as on Sep. 30, 2016. Meanwhile, nonperforming assets to total assets was 0.31 percent in the quarter.
Book value per share was $17.62 for the quarter.
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