Mayflower Bancorp, Inc. Reports First Quarter Earnings and Payment of Dividend

Aug 22, 2008, 01:00 ET from Mayflower Bancorp, Inc.

    MIDDLEBORO, Mass., Aug. 22 /PRNewswire-FirstCall/ -- Mayflower Bancorp,
 Inc. (Nasdaq:   MFLR) today reported net income of $250,000 or $.12 per share
 for its first quarter ended July 31, 2008 as compared to earnings of
 $242,000 or $.12 per share for the same quarter last year. Diluted earnings
 per share for the quarter were $.12 compared to $.11 for the same quarter
 of last year.
     Net interest income for the quarter increased by $28,000 or 1.6% to
 $1.8 million due to an increase in the Company's net interest margin, from
 3.11% in the July 2007 quarter to 3.19% in the July 2008 quarter as higher
 costing certificates of deposit balances repriced into lower rates.
     Average interest earning assets for the period decreased from $227.4
 million for the quarter ended July 31, 2007 to $225.0 million for the
 quarter ended July 31, 2008 and average interest bearing liabilities
 declined from $220.8 million for the quarter ended July 31, 2007 to $220.4
 million for the quarter ended July 31, 2008.
     The provision for loan losses was zero for both the quarter ended July
 31, 2008 and 2007. In determining the appropriate level for the allowance
 for loan loss, 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.
     Non-interest income for the quarter decreased by $30,000, and was
 comprised of a decrease of $7,000 in loan origination and other loan fees,
 a decrease of $18,000 in customer service fees, a decrease of $1,000 in
 other income and an increase in losses on sales of investments of $14,000.
 These were offset by an increase of $10,000 in gains on sales of loans.
     Total operating expenses decreased by $3,000 for the quarter ended July
 31, 2008. This decrease was due to a decrease of $36,000 in salary and
 benefit expense and a decrease of $30,000 in other expenses. Offsetting
 these decreases was an increase of $30,000 in FDIC assessment expense which
 was a function of that agency's scheduled resumption of deposit insurance
 premiums, and an increase of $18,000 in expenses related to foreclosed real
 estate. Additionally, data processing expenses increased by $14,000 and
 occupancy and equipment expenses increased by $1,000.
     Since the end of the April 30, 2008 fiscal year, total assets of the
 Company have decreased by $4.2 million, ending at $239.6 million as of July
 31, 2008. This reduction is partially comprised of a decrease of $5.3
 million in the Company's total investment portfolio, as offset by an
 increase of $1.9 million in its loan portfolio. The growth in net loans
 outstanding is attributed to an increase of $3.3 million in residential
 mortgages, offset by a decrease of $895,000 in commercial and construction
 loans, a decrease of $398,000 in home equity loans and lines of credit, and
 a decrease of $182,000 in personal loans. During the quarter ended July 31,
 2008, total borrowings decreased by $1.0 million and deposits decreased by
 $2.6 million, primarily a result of reduced checking account balances.
     Total stockholders' equity was $19.1 million at July 31, 2008 or 7.98%
 of total assets. This compares to stockholders' equity of $19.9 million or
 8.16% of total assets at April 30, 2008. The decrease in total equity is
 due to the payment of a $0.10 per share dividend to shareholders totaling
 $210,000 and an increase of $821,000 in the unrealized loss on securities
 available-for-sale. Net income for the quarter totaling $250,000 partially
 offset these decreases in total stockholders' equity.
     In conjunction with these announcements, Edward M. Pratt, President and
 Chief Executive Officer of the Company also reported that the Company's
 Board of Directors has declared a quarterly cash dividend of $.10 per share
 to be payable on September 12, 2008, to shareholders of record as of
 September 5, 2008.
     In connection with these announcements, Mr. Pratt commented, "In the
 midst of an uncertain economic environment, we point to our improving net
 interest margin, growth in our loan portfolio and successful expense
 control as indicators of our progress. Notwithstanding all other factors,
 opportunities for prudent and profitable growth do exist in this market,
 and we are moving to leverage them to our advantage".
     Mayflower Bancorp, Inc. is the holding company for Mayflower
 Co-operative 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, Wareham, and West 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 .
     (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.
Mayflower Bancorp, Inc. and Subsidiary Selected Consolidated Financial Information (Dollars in thousands, except per share information) July 31, April 30, 2008 2008 Total assets $239,556 $243,751 Loans receivable, net 127,221 125,336 Federal funds sold 2,523 2,975 Investment securities: Held for investment 42,593 43,377 Available for sale, net 46,938 51,466 Deposits 201,567 204,176 Borrowed funds 17,653 18,659 Stockholders' equity 19,107 19,889 Equity to assets ratio 7.98% 8.16% Book value per share $9.13 $9.51 Three months ended July 31, 2008 2007 Statement of operations Interest and dividend income $3,184 $3,456 Interest expense 1,391 1,691 Net interest income 1,793 1,765 Provision for loan losses - - Gain on sales of loans 19 9 Loss on sales of investments (14) - Other non interest income 265 291 Operating expenses (1,715) (1,718) Income before income taxes 348 347 Income taxes 98 105 Net income $250 $242 Earnings per share - basic $0.12 $0.12 Earnings per share - diluted $0.12 $0.11 Dividends per share $0.10 $0.10 Weighted average shares outstanding 2,091,963 2,095,856 Annualized return on average assets 0.41% 0.40% Annualized return on average equity 5.12% 4.98% Net interest spread 3.13% 3.02% Net interest margin 3.19% 3.11% Mayflower Bancorp, Inc. and Subsidiary Analysis of Loans Past Due (Dollars in thousands) July 31, April 30, July 31, Loans past due over 90 days: 2008 2008 2007 Residential mortgages $617 $617 $- Commercial and construction mortgages - - - Commercial time and demand loans - - - Consumer and other loans - - - $617 $617 $- Loans past due over 90 days as a percentage of: Net loans receivable 0.48% 0.49% - Total assets 0.26% 0.25% - Non-performing assets **Non-accrual loans $617 $617 $- Real estate acquired by foreclosure 637 605 - $1,254 $1,222 $- Non-performing assets as a percentage of: Net loans receivable 0.99% 0.97% - Total assets 0.52% 0.50% - Allowance for loan losses $1,376 $1,375 $1,674 Allowance for loan losses as a percentage of non-performing loans 223.01% 222.85% - Allowance for loan losses as a percentage of net loans 1.08% 1.10% 1.18% ** includes loans which are contractually past due 90 days or more and/or loans less than 90 days past due on which the Bank has ceased accruing interest

SOURCE Mayflower Bancorp, Inc.