LINCOLN PARK, N.J., Feb. 10, 2012 /PRNewswire/ -- Lincoln Park Bancorp (OTC Bulletin Board: LPBC) (the "Company"), the holding company of Lincoln Park Savings Bank, announced net income of $768,000, or $.44 per share, for the year ended December 31, 2011, as compared to  net income of $753,000, or $.43 per share, for the year ended December 31, 2010.  The increase in net income of $15,000 was primarily due to an increase in net interest income that exceeded increases in non-interest expenses and income tax expense, offset by a decrease in non-interest income and a decrease in the provision for loan losses.

Net interest income increased by $304,000, or 7.1% for the year ended December 31, 2011 to $4.6 million as compared to $4.3 million for the year ended December 31, 2010.  The increase in net interest income was primarily due an increase in interest income of $170,000 or 2.3%, partially offset by a decrease in interest expense of $134,000.

Non-interest income decreased by $9,000, or 4.6% for the year ended December 31, 2011 to $185,000, compared to $194,000, for the year ended December 31, 2010.  The primary reason for this decrease was a decrease in income from fees and service charges.  Impairment losses on securities available for sale amounted to $19,000, for the year ended December 31, 2011, compared to impairment losses of $3,000 on securities on available for sale for the year ended December 31, 2010.  Realized gain on sale of available for sale securities was $58,000, for the year ended December 31, 2011, compared to $43,000 for the year ended December 31, 2010.

During the year ended December 31, 2011, provision for loan losses was $120,000 as compared to $229,000 during the ended December 31, 2010.   The provision in the current year was primarily due to losses expected on two impaired loans, and reserves set up for general loan losses.  Non-interest expenses increased by $272,000 or 8.7% to $3.4 million for the year ended December 31, 2011, compared to $3.1 million for the year ended December 31, 2010, primarily due to increases in equipment expense, losses on real estate owned, legal expense and audit related expenses, and other miscellaneous expenses, offset by decreases in expenses related to FDIC insurance premium, and advertising expense.  Equipment expense increased by $189,000 or 49.4% to $572,000 for the year ended December 31, 2011, compared to $383,000 for the year ended December 31, 2010.  This increase was primarily due to the Bank moving to a new service provider.  Loss on real estate owned increased by $7,000 or 6.9% to $109,000 for the year ended December 31, 2011, compared to $102,000 for the year ended December 31, 2010.  As of December 31, 2011, the real estate owned property was sold.  Federal Insurance premiums decreased by $25,000 or 14.3% to $150,000 for the year ended December 31, 2011, compared to $175,000 for the year ended December 31, 2010.  The decrease was due to the change in methodology in calculating the assessments on Banks by the FDIC.   

Income taxes increased by $117,000 to $505,000 for the year ended December 31, 2011, compared to $388,000, for the year ended December 31, 2010.  The increase in income taxes was due to an increase of $132,000 in pre-tax income.  During the period ending December 31, 2010, income tax expense was adjusted by $59,000, to account for deferred tax valuation allowance related to capital losses.

At December 31, 2011, the Company had total assets of $183.2 million and stockholders' equity of $15.2 million.  In addition, the Company had net loans of $71.0 million, total deposits of $102.5 million, and total borrowings of $64.1 million as of December 31, 2011.

David Baker, President of Lincoln Park Bancorp stated, "The Board of Directors and I are pleased with the results of 2011.  We have worked hard to place the Bank in a position to take advantage of a recovering economy as we move forward in 2012."

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.

Contact: David G. Baker

President and Chief Executive Officer

(973) 694-0330

SOURCE Lincoln Park Bancorp

Copyright 2012 PR Newswire

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