Fraternity Community Bancorp, Inc. Reports Results for the Quarter Ended June ... MarketWatch (press release)

04.08.11

, The holding company for Fraternity Federal Savings and Loan Association, today announced that it earned net income of $23,500 for the quarter ended June 30, 2011, as compared to a net loss of $546,600 for the same quarter in 2010. The increase in net income between the periods was primarily due to a decline in provision for loan losses of $864,200. For the six month period ended June 2011, a net loss of $57,100 was reported, as compared to a net loss of $411,200 for the same period in 2010. The decrease in net loss between the periods was primarily due to a decline in provision for loan losses of $804,200.

At June 30, 2011 assets increased by $9.9 million to $179.6 million from $169.7 million at December 31, 2010. This increase was funded by the proceeds from the Company's stock conversion and offering which was completed on March 31, 2011. Also, at June 30, 2011 loans receivable, net decreased $1.0 million to $109.5 million from $110.5 million at December 31, 2010 as the Company continued to reduce its reliance on long-term, fixed rate loans. At June 30, 2011 non-performing assets were $4.4 million or 2.45% of assets compared to $2.7 million or 1.58% of assets at December 31, 2010. Included in the $4.4 million of non-performing assets at June 30, 2011 are four one- to- four family loans totaling $1.3 million, one speculative construction loan totaling $1.6 million where the builder has declared bankruptcy, two lot loans totaling $311,000, two home equity lines of credit totaling $94,000, and other real estate owned comprised of two residential properties totaling $1.1 million. The Company's allowance for loan and lease losses totaled $1,250,000 or 1.13% of total loans at June 30, 2011 as compared to $804,500 or .67% of total loans at June 30, 2010.

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