Mayflower Bancorp Reports 19% Increase Third Quarter Earnings And
Payment Of Dividend
MIDDLEBORO, Mass., Jan. 22, 2013 /PRNewswire/ -- Mayflower Bancorp,
Inc. (NASDAQ Global Market: MFLR), the holding company for
Mayflower Bank, today reported net income of $407,000 or $0.20
per share for the quarter ended December 31,
2012, compared to earnings of $341,000 or $0.17
per share for the quarter ended January
31, 2012. Diluted earnings per share were $0.20 and $0.17,
respectively.
For the nine months ended December 31,
2012, net income was $1,171,000 or $0.57
per share, compared to earnings of $993,000 or $0.48
per share for the nine months ended January
31, 2012. On a diluted per share basis, earnings for
the nine months were $0.57 and
$0.48, respectively.
In February 2012, Mayflower
Bancorp, Inc. changed its fiscal year-end from April 30 to March 31. As such, financial
information provided herein is for the three and nine month periods
ended December 31, 2012, and is
compared to the three and nine month periods ended January 31, 2012.
Net interest income was $2,003,000
for the quarter ended December 31,
2012, compared to $2,078,000
for the quarter ended January 31,
2012. The net interest margin decreased, from 3.62% for the
quarter ended January 31, 2012 to
3.42% for the quarter ended December
31, 2012. Average interest-earning assets increased
from $229.5 million for the quarter
ended January 31, 2012 to
$234.3 million for the quarter ended
December 31, 2012 and average
interest-bearing liabilities grew from $225.6 million at January
31, 2012 to $228.4 million at
December 31, 2012.
Non-interest income increased by $46,000 for the quarter ended December 31, 2012 as compared to the quarter
ended January 31, 2012. This
increase was primarily due to an increase of $86,000 in gain on sales of mortgage loans and an
increase of $29,000 in gain on sales
of investment securities. Additionally, interchange income
increased by $7,000. These
increases were offset by a decrease of $3,000 in loan origination and other loan fees
and a decrease of $27,000 in customer
service fees. Finally, other non-interest income decreased by
$46,000 due to the elimination of the
special dividend from The Co-operative Central Bank received in the
prior year period.
Total non-interest expense decreased by $72,000 or 3.6% for the quarter ended
December 31, 2012. This
decrease was partially a result of a decrease of $70,000 in losses and expenses of other real
estate owned, due to reduced levels of other real estate owned, a
decrease of $6,000 in occupancy and
equipment expense, and a decrease of $9,000 in FDIC assessment expense. These
decreases were partially offset by an increase of $13,000 in other expenses.
The provision for loan losses was $10,000 for the quarter ended December 31, 2012, as compared to $90,000 for the quarter ended January 31, 2012, a decrease of $80,000. In determining the appropriate
level for the allowance for loan losses, the Company considers past
loss experience, evaluations of underlying collateral, prevailing
economic conditions, the nature of the loan portfolio and levels of
non-performing and other classified loans. Management and the
Company's Board of Directors evaluate the loan loss reserve on a
regular basis, and consider the allowance as constituted to be
adequate at this time.
For the nine months ended December 31,
2012, net interest income was $6.1
million, a decrease of $205,000 compared to the nine months ended
January 31, 2012. This can be
attributed to a decrease in the Company's net interest margin,
which declined from 3.62% for the nine months ended January 31, 2012 to 3.47% for nine months ended
December 31, 2012. Average
interest earning assets for the nine months ended December 31, 2012 were $234.1 million as compared to $231.7 million for the nine months ended
January 31, 2012 and average interest
bearing liabilities were $228.5
million at December 31, 2012,
compared to $228.7 million at
January 31, 2012.
For the nine months ended December 31,
2012, non-interest income increased by $277,000, as compared to the nine months ended
January 31, 2012. This improvement
was due to an increase of $329,000 in
gain on sales of mortgage loans, coupled with an increase of
$14,000 in gain on sales of
investments. Additionally, loan origination and other loan
fees increased by $6,000 and
interchange income on debit card transactions increased by
$18,000. Finally, customer
service fees decreased by $59,000,
while other income decreased by $31,000.
Total non-interest expenses decreased by $78,000, or 1.3%, to $5.9
million for the nine months ended December 31, 2012. This decrease was
attributable to a decrease of $18,000
in occupancy and equipment expense, a decrease of $23,000 in FDIC assessment expense, and a
decrease of $82,000 in losses and
expenses of other real estate owned. These decreases were
partially offset by an increase of $25,000 in compensation and fringe benefit
expense and an increase of $20,000 in
other expenses.
The provision for loan losses for the nine-month period ended
December 31, 2012 was $40,000, compared to $197,000 for the nine months ended January 31, 2012. The allowance for loan
loss as a percentage for net loans was 0.85% at December 31, 2012, compared to 0.91% at
March 31, 2012.
Since March 31, 2012, total assets
of the Company have increased by $3.5
million, ending at $255.1
million as of December 31,
2012. During the period, loans receivable increased by
$7.8 million and total investment
securities decreased by $4.6
million. The increase in loans receivable is primarily
due to growth of $9.7 million in
residential mortgages. Offsetting this increase in
residential mortgages was a decrease of $1.6
million in home equity loans and lines of credit, a decrease
of $786,000 in commercial loans and
mortgages, and a decrease of $168,000
in consumer loans. Finally, net construction loans
outstanding increased by $598,000.
During the nine months ended December 31,
2012, total deposits increased by $2.9 million. This increase is comprised of
growth of $9.2 million in aggregate
checking and savings account balances, as offset by a reduction of
$6.3 million in certificate of
deposit balances. Advances and borrowings outstanding
remained constant at $1.0
million.
As of December 31, 2012,
non-performing assets totaled $622,000, compared to $506,000 at March
31, 2012. The increase from March 31, 2012 is the result of an increase of
$186,000 in real estate acquired by
foreclosure, offset by a decrease of $70,000 in non-performing loans. The
allowance for loan losses as a percentage of non-performing loans
was 498.4% at December 31, 2012,
compared to 390.1% at March 31,
2012.
Total stockholders' equity stood at $22.6
million at December 31, 2012,
compared to $21.9 million at
March 31, 2012. Tier 1 capital
to average assets stood at 8.7% at December
31, 2012, compared to 8.4% at March
31, 2012. The increase in total equity is the result
of net income for the nine months of $1,171,000 and stock-based compensation credits
of $74,000. These increases
were partially offset by dividends paid of $0.18 per share totaling $371,000 and Company stock repurchases totaling
$65,000. Finally, total equity
decreased by $93,000 due to a
reduction in the net unrealized gain on securities classified as
available for sale.
In conjunction with these announcements, the Company also
reported that its Board of Directors has declared a cash dividend
of $0.06 per share to be payable on
February 19, 2013, to shareholders of
record as of February 5, 2013.
Mayflower Bancorp, Inc. is the holding company for Mayflower
Bank which specializes in residential and commercial lending and
traditional banking and deposit services. The Company currently
serves southeastern Massachusetts
from its main office in Middleboro
and maintains additional full-service offices in Bridgewater, Lakeville, Plymouth, Rochester, and Wareham, Massachusetts. All of the
Company's deposits are insured by the Federal Deposit Insurance
Corporation (FDIC) to applicable limits. All amounts above
those limits are insured in full by the Share Insurance Fund (SIF)
of Massachusetts. For further information on Mayflower
Bancorp, Inc. please visit www.mayflowerbank.com.
(See accompanying Selected
Consolidated Financial Information)
This earnings report may contain certain forward-looking
statements, which are based on management's current expectations
regarding economic, legislative and regulatory issues that may
impact the Company's earnings in future periods. Factors that
could cause future results to vary materially from current
management expectations include, but are not limited to, general
economic conditions, changes in interest rates, deposit flows, real
estate values and competition; changes in accounting principles,
policies or guidelines; changes in legislation or regulation; and
other economic, competitive, governmental, regulatory and
technological factors affecting the Company's operations, pricing,
products and services. Additional factors that may affect our
results are discussed under "Item 1A Risk Factors" in the Company's
Quarterly Reports on Form 10-Q and in its Annual Report on Form
10-K, each filed with the Securities and Exchange Commission (the
"SEC"), which are available at the SEC's website
(www.sec.gov) and to which reference is hereby
made.
MAYFLOWER BANCORP, INC. AND
SUBSIDIARY
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
December
31,
|
|
March
31,
|
|
2012
|
|
2012
|
ASSETS
|
|
|
|
Cash and
cash equivalents:
|
(In Thousands)
|
Cash
and due from banks
|
$
3,882
|
|
$
3,764
|
Interest-bearing deposits in banks
|
9,372
|
|
8,602
|
Total cash and cash equivalents
|
13,254
|
|
12,366
|
Investment
securities:
|
|
|
|
Securities available-for-sale, at fair
value
|
41,577
|
|
44,295
|
Securities held-to-maturity (fair value of
$43,395 and $45,379,
|
|
|
|
respectively)
|
42,064
|
|
43,969
|
Total investment securities
|
83,641
|
|
88,264
|
Loans
receivable, net
|
142,108
|
|
134,331
|
Accrued
interest receivable
|
779
|
|
867
|
Real
estate held for investment
|
611
|
|
628
|
Real
estate acquired by foreclosure
|
380
|
|
194
|
Premises
and equipment, net
|
10,601
|
|
10,717
|
Deposits
with The Co-operative Central Bank
|
449
|
|
449
|
Stock in
Federal Home Loan Bank of Boston, at cost
|
1,449
|
|
1,449
|
Refundable
income taxes
|
604
|
|
596
|
Deferred
income taxes
|
-
|
|
377
|
Other
assets
|
1,218
|
|
1,317
|
Total assets
|
$ 255,094
|
|
$ 251,555
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Deposits
|
$
229,464
|
|
$
226,562
|
Advances
and borrowings
|
1,000
|
|
1,000
|
Advances
from borrowers for taxes and insurance
|
684
|
|
655
|
Deferred
income taxes
|
184
|
|
-
|
Accrued
expenses and other liabilities
|
1,162
|
|
1,454
|
Total
liabilities
|
232,494
|
|
229,671
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
Preferred
stock $1.00 par value; authorized 5,000,000 shares;
|
|
|
|
issued - none
|
-
|
|
-
|
Common
stock $1.00 par value; authorized 15,000,000 shares;
|
|
|
|
issued 2,058,422 at December 31, 2012 and
2,063,067 at March 31, 2012
|
2,058
|
|
2,063
|
Additional
paid-in capital
|
4,383
|
|
4,321
|
Retained
earnings
|
15,462
|
|
14,710
|
Accumulated other comprehensive income
|
697
|
|
790
|
Total stockholders' equity
|
22,600
|
|
21,884
|
Total liabilities and stockholders'
equity
|
$ 255,094
|
|
$ 251,555
|
|
|
|
|
|
|
|
|
MAYFLOWER BANCORP, INC. AND
SUBSIDIARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
Unaudited
|
Three
months ended
|
|
Nine
months ended
|
|
December
31, 2012
|
|
January
31, 2012
|
|
December
31, 2012
|
|
January
31, 2012
|
|
(In Thousands, Except Per Share Data)
|
|
(In Thousands, Except Per Share Data)
|
Interest
income:
|
|
|
|
|
|
|
|
Loans receivable
|
$
1,772
|
|
$
1,730
|
|
$
5,290
|
|
$
5,198
|
Securities held-to-maturity
|
246
|
|
332
|
|
814
|
|
1,058
|
Securities available-for-sale
|
226
|
|
344
|
|
773
|
|
1,125
|
Interest-bearing deposits in
banks
|
5
|
|
6
|
|
16
|
|
24
|
Total interest income
|
2,249
|
|
2,412
|
|
6,893
|
|
7,405
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
235
|
|
304
|
|
768
|
|
1,018
|
Borrowed funds
|
11
|
|
30
|
|
34
|
|
91
|
Total interest expense
|
246
|
|
334
|
|
802
|
|
1,109
|
|
|
|
|
|
|
|
|
Net
interest income
|
2,003
|
|
2,078
|
|
6,091
|
|
6,296
|
|
|
|
|
|
|
|
|
Provision
for loan losses
|
10
|
|
90
|
|
40
|
|
197
|
Net
interest income after provision for loan losses
|
1,993
|
|
1,988
|
|
6,051
|
|
6,099
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
Loan origination and other loan
fees
|
21
|
|
24
|
|
81
|
|
75
|
Customer service fees
|
134
|
|
161
|
|
433
|
|
492
|
Gain on sales of mortgage
loans
|
219
|
|
133
|
|
596
|
|
267
|
Gain on sales of investment
securities
|
136
|
|
107
|
|
255
|
|
241
|
Interchange income
|
64
|
|
57
|
|
188
|
|
170
|
Other
|
30
|
|
76
|
|
89
|
|
120
|
Total noninterest
income
|
604
|
|
558
|
|
1,642
|
|
1,365
|
|
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
|
Compensation and fringe
benefits
|
1,093
|
|
1,093
|
|
3,276
|
|
3,251
|
Occupancy and equipment
|
256
|
|
262
|
|
778
|
|
796
|
FDIC assessment
|
33
|
|
42
|
|
102
|
|
125
|
Losses and expenses of other real estate
owned
|
5
|
|
75
|
|
14
|
|
96
|
Other
|
564
|
|
551
|
|
1,722
|
|
1,702
|
Total
noninterest expense
|
1,951
|
|
2,023
|
|
5,892
|
|
5,970
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
646
|
|
523
|
|
1,801
|
|
1,494
|
Provision
for income taxes
|
239
|
|
182
|
|
630
|
|
501
|
|
|
|
|
|
|
|
|
Net
income
|
$
407
|
|
$
341
|
|
$
1,171
|
|
$
993
|
|
|
|
|
|
|
|
|
Earnings
per share (basic)
|
$
0.20
|
|
$
0.17
|
|
$
0.57
|
|
$
0.48
|
Earnings
per share (diluted)
|
$
0.20
|
|
$
0.17
|
|
$
0.57
|
|
$
0.48
|
|
|
|
|
|
|
|
|
Weighted
average basic shares outstanding
|
2,058
|
|
2,067
|
|
2,060
|
|
2,071
|
Diluted
effect of outstanding stock options
|
5
|
|
3
|
|
5
|
|
3
|
Weighted
average diluted shares outstanding
|
2,063
|
|
2,070
|
|
2,065
|
|
2,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mayflower Bancorp, Inc. and
Subsidiary
|
|
|
|
|
|
Selected Financial Ratios
|
|
|
|
|
|
(Dollars in thousands, except per share
information)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended
|
|
Nine
months ended
|
|
December 31,
|
January
31,
|
|
December 31,
|
January
31,
|
|
2012
|
2012
|
|
2012
|
2012
|
Key
Performance Ratios
|
|
|
|
|
|
Dividends
paid per share
|
$
0.06
|
$
0.06
|
|
$
0.18
|
$
0.18
|
Annualized
return on average assets
|
0.65%
|
0.55%
|
|
0.62%
|
0.53%
|
Annualized
return on average equity
|
7.22%
|
6.29%
|
|
7.00%
|
6.15%
|
Net
interest spread
|
3.41%
|
3.61%
|
|
3.46%
|
3.61%
|
Net
interest margin
|
3.42%
|
3.62%
|
|
3.47%
|
3.62%
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
January 31,
|
Loans
past due over 90 days
|
2012
|
|
2012
|
|
2012
|
Residential mortgages
|
$
-
|
|
$
-
|
|
$
314
|
Home
equity loans and lines of credit
|
30
|
|
30
|
|
-
|
Commercial
and construction mortgages
|
-
|
|
250
|
|
-
|
Commercial
and consumer loans
|
93
|
|
-
|
|
-
|
|
$
123
|
|
$
280
|
|
$
314
|
|
|
|
|
|
|
Non-performing assets
|
|
|
|
|
|
Non-accrual loans
|
$
242
|
|
$
312
|
|
$
656
|
Real
estate acquired by foreclosure
|
380
|
|
194
|
|
266
|
|
$
622
|
|
$
506
|
|
$
922
|
|
|
|
|
|
|
Allowance for loan losses
|
$
1,206
|
|
$
1,217
|
|
$
1,215
|
|
|
|
|
|
|
Asset
Quality Ratios
|
|
|
|
|
|
Allowance
for loan losses/net loans
|
0.85%
|
|
0.91%
|
|
0.95%
|
Allowance
for loan losses/non-performing loans
|
498.35%
|
|
390.06%
|
|
185.21%
|
|
|
|
|
|
|
Non-performing loans/net loans
|
0.17%
|
|
0.23%
|
|
0.51%
|
Non-performing loans/total assets
|
0.09%
|
|
0.12%
|
|
0.26%
|
|
|
|
|
|
|
Non-performing assets/net loans
|
0.44%
|
|
0.38%
|
|
0.72%
|
Non-performing assets/total assets
|
0.24%
|
|
0.20%
|
|
0.37%
|
|
|
|
|
|
|
Tier 1
Capital to average assets
|
8.71%
|
|
8.43%
|
|
8.42%
|
Tier 1
Capital to risk weighted assets
|
16.42%
|
|
15.89%
|
|
15.66%
|
Book Value
per Share
|
$
10.98
|
|
$
10.61
|
|
$
10.61
|
|
|
|
|
|
|
SOURCE Mayflower Bancorp, Inc.