| Increasing overhead costs and a shrinking net interest margin pushed down fourth quarter earnings at Georgetown Bancorp, which posted a net loss of $73,000 for the period ended Dec. 31.
That compares with net income totaling $480,000 for the same period in 2015. For the year-end 2016, the holding company for Georgetown Bank posted net income totaling $194,000, compared with $1.5 million in 2015.
In a statement, President and CEO Robert E. Balletto said that the increase in overhead was primarily due to beefing up the bank’s regulatory compliance staff and compliance programs and additional commercial lending support added late in 2015.
“Also negatively impacting net income for the three months and year ended Dec. 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,” he said.
In October, the company announced it would be merging into Salem Five Bancorp. Salem Five agreed to acquire Georgetown Bancorp and its subsidiary bank in an all-cash deal valued at about $49.2 million, or $26 per share.
That deal is expected to close during the first quarter this year.
Meanwhile, the company’s board of directors announced a regular quarterly dividend of 5 cents per share of common stock.
