Georgetown Bancorp, Inc. Reports Results for Quarter Ended March 31, 2008

GEORGETOWN, Mass.--(BUSINESS WIRE)--Georgetown Bancorp, Inc. (OTCBB: GTWN) (the “Company”), holding company for Georgetown Savings Bank (the “Bank”), reported a net loss for the three months ended March 31, 2008 of $65,000, or $.03 per basic and diluted share compared to a net loss of $129,000 or $.05 per basic and diluted share for the three months ended March 31, 2007. The net loss for the nine months ended March 31, 2008 was $292,000 or $.11 per basic and diluted share versus a net loss of $314,000 or $.12 per basic and diluted share for the nine months ended March 31, 2007. The current period quarterly loss was $24,000 lower than the net loss for the three months ended December 31, 2007 of $89,000, or $.03 per basic and diluted share. Linked quarterly net operating results have improved for the third consecutive quarter.

Robert E. Balletto, President and Chief Executive Officer, said, “I am pleased with the continued improvement in our financial results, particularly in light of the poor economic environment that we are operating in. Our net interest margin continued to expand, benefiting from the recent decline in short-term rates, as well as our origination of higher-yielding commercial loans. We have been successful this year in executing our strategic plan of developing our commercial business unit, as commercial loans have grown to 19 % of total assets as of March 31, 2008 from 13% at June 30, 2007. We anticipate this trend continuing.”

GEORGETOWN BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
---------------------------------
(unaudited)
ASSETS
		At				At
		March 31,				June 30,
		2008				2007
		(In thousands)
Cash and due from banks		$	3,062			$	3,950
Short-term investments			3,500				1,653
Total cash and cash equivalents			6,562				5,603
Securities available for sale, at fair value			11,907				12,690
Securities held to maturity, at amortized cost			6,699				8,182
Federal Home Loan Bank stock, at cost			2,905				2,905
Loans, net of allowance for loan losses of $1,120,000
at March 31, 2008 and $1,079,000 at June 30, 2007			135,807				127,659
Premises and equipment, net			4,545				4,816
Accrued interest receivable			619				682
Bank-owned life insurance			1,436				1,416
Other assets			1,031				1,129
Total assets		$	171,511			$	165,082
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits		$	101,821			$	97,956
Short-term Federal Home Loan Bank advances			4,500				9,850
Long-term Federal Home Loan Bank advances			46,334				37,873
Securities sold under agreements to repurchase			685				869
Mortgagors' escrow accounts			367				317
Accrued expenses and other liabilities			527				607
Total liabilities			154,234				147,472
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.10 par value per share: 1,000,000
shares authorized; none outstanding			-				-
Common Stock, $0.10 par value per share: 10,000,000
shares authorized; 2,777,250 shares issued, 2,638,387 and
2,692,050 shares outstanding at March 31, 2008 and
June 30, 2007, respectively			278				278
Additional paid-in capital			11,452				11,452
Retained earnings			7,213				7,522
Accumulated other comprehensive income (loss)			112				(179	)
Unearned compensation - ESOP (59,319 and 65,463 shares unallocated
at March 31, 2008 and June 30, 2007, respectively)			(594	)			(655	)
Treasury stock, at cost (138,863 and 85,200 shares at March 31, 2008
and June 30, 2007, respectively)			(1,184	)			(808	)
Total stockholders' equity			17,277				17,610
Total liabilities and stockholders' equity		$	171,511			$	165,082

GEORGETOWN BANCORP, INC.
STATEMENTS OF OPERATIONS
------------------------------------------------
(unaudited)
		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2008				2007				2008				2007
		(Dollars in thousands, except per share data)
Interest and dividend income:
Loans, including fees		$	2,044			$	1,879			$	6,107			$	5,684
Investment interest and dividends			263				308				828				985
Short-term investments			9				15				34				37
Total interest and dividend income			2,316				2,202				6,969				6,706
Interest expense:
Deposits			640				649				2,114				1,963
Short-term Federal Home Loan Bank advances			71				202				321				695
Long-term Federal Home Loan Bank advances			526				402				1,471				1,149
Securities sold under agreements to repurchase			2				2				6				6
Total interest expense			1,239				1,255				3,912				3,813
Net interest income			1,077				947				3,057				2,893
Provision for loan losses			4				4				8				109
Net interest income, after provision for loan losses			1,073				943				3,049				2,784
Non-interest income:
Customer service fees			145				141				466				436
Income from bank-owned life insurance			(3	)			18				20				45
Other			10				9				27				24
Total non-interest income			152				168				513				505
Non-interest expenses:
Salaries and employee benefits			736				678				2,150				1,996
Occupancy and equipment expenses			230				221				661				640
Data processing expenses			87				76				259				224
Professional fees			140				66				303				203
Advertising expense			31				92				128				151
Other general and administrative expenses			194				178				600				553
Total non-interest expenses			1,418				1,311				4,101				3,767
Loss before income taxes			(193	)			(200	)			(539	)			(478	)
Income tax benefit			(128	)			(71	)			(247	)			(164	)
Net loss		$	(65	)		$	(129	)		$	(292	)		$	(314	)
Weighted average number of common shares outstanding:
Basic and diluted			2,584,598				2,630,397				2,599,663				2,644,631
Net loss per share:
Basic and diluted			($0.03	)			($0.05	)			($0.11	)			($0.12	)

About Georgetown Savings Bank

Founded in 1868, Georgetown Savings Bank, with branches in Georgetown, MA, North Andover, MA and Rowley, MA, serves the financial needs of Essex County and southern New Hampshire residents and businesses. To learn more about Georgetown Savings Bank, visit www.georgetownsb.com or call 978-352-8600.

Forward-looking statements

This news release may contain certain forward-looking statements, such as statements of the Company’s or the Bank’s plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as “expects,” “subject,” “believe,” “will,” “intends,” “will be” or “would.” These statements are subject to change based on various important factors (some of which are beyond the Company’s or the Bank’s control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management’s analysis of factors only as of the date of which they are given). These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, the ability of the Company or the Bank to effectively manage its growth, and results of regulatory examinations, among other factors. The foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents the Company files from time to time with the Securities and Exchange Commission, including Current Reports on Form 8-K.

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