Lincoln Park Bancorp Announces September 30, 2020 Financial Results
Lincoln Park Bancorp (LPBC) reported a net income of $97,000 for Q3 2020, a significant improvement from a net loss of $376,000 in Q3 2019. For the first nine months, the company posted a net loss of $484,000, improving from a loss of $1.2 million in the same period last year. Key highlights include a decrease in net loans to $192.2 million and a 14% increase in transaction account average balances year-over-year. The company also consolidated back-office locations, realizing a 27% savings in operating expenses. The Bank's non-interest income rose to $1 million year-to-date, driven by gains from securities sales.
- Net income for Q3 2020 was $97,000, a $473,000 improvement from Q3 2019.
- Non-interest income increased by $581,000 to $1 million year-to-date.
- Consolidation of back-office locations saved 27% in operating expenses.
- Transaction account average balances increased by 14% from December 31, 2019.
- Net loans receivable decreased to $192.2 million, primarily due to payoffs.
- Year-to-date net loss was $484,000, although improved from a loss of $1.2 million last year.
- Provision for loan losses increased by $877,000 year-to-date, indicating higher risk.
PINE BROOK, NJ / ACCESSWIRE / November 25, 2020 / Lincoln Park Bancorp (OTC PINK:LPBC) (the "Company"), the holding company of Lincoln 1st Bank (the "Bank" or "Lincoln"), reported net income of
For the nine months ended September 30, 2020, the Company reported a net loss of
Company Highlights:
- Net Loans Receivable decreased to
$192.2 million , driven primarily by payoffs in the participation portfolio. - Transaction account average balances continued to trend upward, increasing
14% from December 31, 2019 and21% year-over-year. - The Company consolidated four back-office locations into one corporate headquarters reducing the weighted average $/sq ft of leased space from
$19.60 t o$14.34 for a27% savings. This not only reduced operating expenses but brought efficiencies and added synergies to the personnel of the organization. - A provision for loan losses of
$1.0 million was recorded for the nine-months ended September 30, 2020, net of recoveries of$288 thousand . - The year-to-date 2020 mark-to-market adjustment on the interest rate cap required a valuation adjustment resulting in a loss of
$47 thousand .
Commenting on the nine-months of activity, Acting Co-President and CFO Erik Terpstra said, "The Company continues to make progress towards its overall strategic plan of shifting wholesale legacy assets and liabilities into organic products. While COVID-19 has impacted the Bank's operations and changed how we interact with our customers, we were able to respond with an increased emphasis on our electronic delivery channels. Despite these challenges the Company has been able to achieve continued growth by targeting and working with the residential homeowners and underserved small businesses in the local area."
With regard to the balance sheet in 2020, Mr. Terpstra further commented "the Company has experienced significant paydowns in the loan participation portfolio, while continuing to grow the organic loan portfolio. Regarding the funding side, the Company has seen a
COVID-19 Impact and Response
As part of Lincoln's response to COVID-19, the Company initiated remote working plans and encouraged the use of mobile and online banking alternatives while adjusting safety protocols in the branches. To assist with borrowers impacted by the virus, Lincoln offered temporary payment deferrals for all customers who were current before the state-wide shutdown in March 2020. Within the Commercial Loan Portfolio (consisting of CRE and C&I), Lincoln granted 48 deferments on a total of
Acting Co-President and COO Philip Vaz commented, "In these unprecedented times the Company created a support program for all the Company's borrowers, while expanding safety measures within the retail locations to ensure the health and safety of our customers and staff. As a nearly 100-year-old community bank Lincoln 1st will continue to prioritize the safety of employees, customers and the local community."
Financial Performance Overview:
Third QTD 2020 v. Third QTD 2019
For the three months ended September 30, 2020, net income totaled
Net interest income for the three months ended September 30, 2020 improved
The provision for loan and lease losses for the three months ended September 30, 2020 resulted in a benefit of
Non-interest income increased
The mark-to-market valuation of the interest rate cap for the three months ended September 30, 2020 resulted in an expense of
The Company's non-interest expense decreased
YTD September 2020 v. YTD September 2019
For the nine months ended September 30, 2020, the Company recorded a net loss of
Net interest income for the nine months ended September 30, 2020 decreased
The provision for loan and lease losses for the nine months ended September 30, 2020 increased
Non-interest income increased
The mark-to-market valuation of the interest rate cap resulted in an expense of
The Company's non-interest expense decreased by
Financial Condition:
As of September 30, 2020, the Company's total assets were
Loans receivable decreased
The allowance for loan and lease losses increased by
The Company's total deposits increased
At September 30, 2020, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were
About Lincoln Park Bancorp
Established in 1923 and headquartered in Pine Brook, N.J., Lincoln Park Bancorp (OTC Bulletin Board: LPBC) through its wholly owned subsidiary Lincoln 1st Bank operates 2 branch locations in Lincoln Park and Montville, New Jersey. The Bank provides businesses and individuals a wide range of loans and deposit products, along with retail and commercial banking services. For more information, please visit www.mylincoln1st.com.
Forward-Looking Statements
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: Erik Terpstra, Acting Co-President and CFO
862 777 8540
| LINCOLN PARK BANCORP | |||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
| (in thousands) | |||||||||||
| (unaudited) | |||||||||||
| (audited) | |||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
CASH AND CASH EQUIVALENTS | $ | 29,206 | $ | 2,751 | |||||||
INVESTMENTS | 71,360 | 86,837 | |||||||||
INTEREST RATE CAP | - | 48 | |||||||||
ORGANIC LOANS RECEIVABLE | 137,296 | 133,740 | |||||||||
PARTICIPATION LOANS RECEIVABLE | 57,896 | 69,633 | |||||||||
ALLOWANCE FOR LOAN LOSSES | (2,944 | ) | (2,246 | ) | |||||||
NET LOANS RECEIVABLE | 192,249 | 201,127 | |||||||||
PREMISES AND EQUIPMENT | 2,911 | 2,672 | |||||||||
RIGHT OF USE ASSETS | 1,140 | 315 | |||||||||
FHLB/ACBB STOCK | 3,276 | 3,645 | |||||||||
INTEREST RECEIVABLE | 1,162 | 1,160 | |||||||||
BOLI | 6,285 | 6,150 | |||||||||
OTHER ASSETS | 3,464 | 2,962 | |||||||||
TOTAL ASSETS | $ | 311,052 | $ | 307,667 | |||||||
LIABILITIES | |||||||||||
NON-INTEREST-BEARING DEPOSITS | $ | 22,600 | $ | 16,969 | |||||||
INTEREST BEARING DEPOSITS | 138,192 | 153,243 | |||||||||
BROKERED AND LISTING DEPOSITS | 61,352 | 40,986 | |||||||||
BOND ISSUE | 4,876 | 4,860 | |||||||||
BORROWED MONEY | 63,025 | 71,724 | |||||||||
LEASE LIABILITIES | 1,182 | 340 | |||||||||
OTHER LIABILITIES | 3,003 | 2,979 | |||||||||
TOTAL LIABILITIES | 294,230 | 291,101 | |||||||||
TOTAL STOCKHOLDERS' EQUITY | 16,822 | 16,566 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 311,052 | $ | 307,667 | |||||||
| LINCOLN PARK BANCORP | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| for the nine months ended | for the three months ended | ||||||||||||||||||
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
INTEREST INCOME | |||||||||||||||||||
LOANS RECEIVABLE | $ | 6,111 | $ | 6,329 | $ | 1,919 | $ | 2,081 | |||||||||||
SECURITIES | 1,374 | 2,247 | 401 | 654 | |||||||||||||||
OTHER | 136 | 283 | 39 | 92 | |||||||||||||||
TOTAL INTEREST INCOME | 7,620 | 8,859 | 2,358 | 2,827 | |||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
DEPOSITS | 2,054 | 3,058 | 574 | 1,044 | |||||||||||||||
BOND ISSUANCE | 314 | 313 | 105 | 105 | |||||||||||||||
BORROWINGS | 1,244 | 1,332 | 408 | 444 | |||||||||||||||
TOTAL INTEREST EXPENSE | 3,612 | 4,703 | 1,087 | 1,593 | |||||||||||||||
NET INTEREST INCOME | 4,008 | 4,156 |
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FAQ
What was Lincoln Park Bancorp's net income for Q3 2020?
Lincoln Park Bancorp reported a net income of $97,000 for Q3 2020.
How did Lincoln Park Bancorp perform year-to-date as of September 30, 2020?
For the nine months ended September 30, 2020, Lincoln Park Bancorp reported a net loss of $484,000.
What were the key financial highlights for Lincoln Park Bancorp?
Key highlights include a $581,000 increase in non-interest income and a 14% rise in transaction account average balances.
How has Lincoln Park Bancorp responded to COVID-19?
Lincoln Park Bancorp initiated remote working plans and offered temporary payment deferrals to borrowers impacted by COVID-19.
What is the status of Lincoln Park Bancorp's loan portfolio?
Net loans receivable decreased to $192.2 million, primarily due to payoffs in the participation portfolio.
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