2014

Mayflower Bancorp Reports Earnings for Two Months and Eleven Months Ended March 31, 2012 and Payment of Dividend

MIDDLEBORO, Mass., April 26, 2012 /PRNewswire/ -- Mayflower Bancorp, Inc. (NASDAQ Global Market: MFLR), the holding company for Mayflower Bank, today reported net income of $224,000 or $0.11 per share for the two-month period ended March 31, 2012, compared to earnings of $292,000 or $0.14 per share for the three-month period ended April 30, 2011.  Diluted earnings per share for the periods were $0.11 and $0.14 respectively.  In February 2012, Mayflower Bancorp, Inc. changed its fiscal year-end from April 30 to March 31 in order to synchronize reporting periods for various regulatory agencies.  This change requires the shortened reporting periods for the current two-month period and year.

For the eleven months ended March 31, 2012, net income was $1,217,000 or $0.59 per share, compared to earnings of $1,338,000 or $0.64 per share for the year ended April 30, 2011.  On a diluted per share basis, earnings were $0.59 per share and $0.64 per share, respectively.

Net interest income was $1,397,000 for the two months ended March 31, 2012, compared to $2,103,000 for the quarter ended April 30, 2011.  The net interest margin decreased, from 3.76% for the quarter ended April 30, 2011 to 3.61% for the two-month period ended March 31, 2012.  Average interest-earning assets increased from $223.5 million for the quarter ended April 30, 2011 to $232.2 million for the two-month period ended March 31, 2012 and average interest-bearing liabilities grew from $222.3 million for the quarter ended April 30, 2011 to $227.5 million for the two months ended March 31, 2012.    

Non-interest income was $322,000 for the two months ended March 31, 2012, compared to $400,000 for the quarter ended April 30, 2011.  During the two months ended March 31, 2012, Mayflower Bancorp, Inc. recorded $109,000 in gains on sales of mortgage loans, as compared to $45,000 recorded for the quarter ended April 30, 2011.  Also, the gain on sales of investment securities was $53,000 for the current year two-month period, as compared to $63,000 for the prior year three-month period.  Finally, for the two months ended March 31, 2012, customer service fees were $91,000, interchange income was $40,000, loan origination and other loan fees were $9,000, and other income was $20,000, as compared to $143,000, $52,000, $60,000, and $37,000, respectively for the prior year three-month period.

Non-interest expense was $1,347,000 for the two months ended March 31, 2012, compared to $2,010,000 for the quarter ended April 30, 2011.  Compensation and fringe benefits totaled $714,000 for the two months ended March 31, 2012, compared to $1,074,000 for the three months ended April 30, 2011.  For the current year two-month period, occupancy and equipment expense was $173,000, compared to $283,000 for the quarter ended April 30, 2011, and losses and expenses of other real estate owned were $76,000 for the two months ended March 31, 2012, compared to $25,000 for the quarter ended April 30, 2011.  Finally, for the two months ended March 31, 2012, FDIC assessment expense was $23,000 and other expenses were $361,000, compared to $66,000 and $562,000, respectively, for the quarter ended April 30, 2011.      

The provision for loan losses for the two months ended March 31, 2012 was $31,000, compared to $45,000 for the quarter ended April 30, 2011.  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 allowance for loan losses on a regular basis, and consider the allowance as constituted to be adequate at this time.

For the eleven months ended March 31, 2012, net interest income was $7.7 million, compared to $8.5 million for the year ended April 30, 2011.  The net interest margin for the eleven months ended March 31, 2012 was 3.62%, compared to 3.77% for the year ended April 30, 2011.  Average interest-earning assets for the eleven months ended March 31, 2012 were $231.8 million as compared to $225.5 million for the year ended April 30, 2011.  Average interest-bearing liabilities were $228.5 million for the current eleven-month period compared to $224.7 million for the year ended April 30, 2011. 

Non-interest income was $1.7 million for the eleven months ended March 31, 2012, compared to $1.9 million for the year ended April 30, 2011.  During the eleven months ended March 31, 2012, Mayflower Bancorp, Inc. recorded $376,000 in gain on sales of mortgage loans, as compared to $472,000 recorded for the year ended April 30, 2011.  Also, the gain on sales of investment securities was $294,000 for the current year eleven-month period, as compared to $294,000 for the prior year.  Finally, for the eleven months ended March 31, 2012, customer service fees totaled $583,000, interchange income was $210,000, loan origination and other loan fees were $84,000, and other income was $140,000, as compared to $666,000, $204,000, $145,000, and $140,000, respectively for the prior year.

Non-interest expense was $7.3 million for the eleven months ended March 31, 2012, compared to $8.1 million for the year ended April 30, 2011.  Compensation and fringe benefit expense totaled $3,965,000 for the eleven months ended March 31, 2012, compared to $4,232,000 for the year ended April 30, 2011.  For the eleven months ended March 31, 2012, occupancy and equipment expense was $969,000, compared to $1,133,000 for the year ended April 30, 2011, and losses and expenses of other real estate owned were $172,000 for the eleven months ended March 31, 2012, compared to $259,000 for the year ended April 30, 2011.  Finally, for the eleven months ended March 31, 2012, FDIC assessment expense was $148,000 and other expenses were $2,063,000, compared to $316,000 and $2,202,000, respectively, for the year ended April 30, 2011.     

The provision for loan losses for the eleven months ended March 31, 2012 was $228,000, as compared to $201,000 for the year ended April 30, 2011.  The allowance for loan losses as a percentage of net loans was 0.91% at March 31, 2012, compared to 0.98% at April 30, 2011. 

Since April 30, 2011, total assets of the Company have increased by $4.7 million, ending at $251.6 million as of March 31, 2012.  During the eleven-month period, cash and cash equivalents increased by $576,000 while total investment securities decreased by $3.6 million.  During the eleven months ended March 31, 2012, net loans receivable increased by $9.8 million.  This growth in loan balances is comprised of an increase of $12.0 million in residential mortgages outstanding, and an increase of $125,000 in consumer loans.  Offsetting these increases were decreases of $646,000 in net construction loan balances outstanding, $1.1 million in home equity loans and lines of credit, and $436,000 in commercial loans and mortgages. 

During the eleven months ended March 31, 2012, total deposits increased by $5.5 million.  This growth was comprised of an increase of $2.7 million in money market deposit accounts and an increase of $8.4 million in checking and savings accounts, as offset by a decrease of $5.5 million in aggregate certificates of deposit.  Advances and borrowings outstanding decreased by $2.5 million during the period.

As of March 31, 2012, non-performing assets totaled $506,000, compared to $2.9 million at April 30, 2011 and to $2.3 million at April 30, 2010.  The decrease from April 30, 2011 is the result of a reduction of $1.4 million in non-performing loans and a reduction of $1.0 million in real estate acquired by foreclosure.  The allowance for loan losses as a percentage of non-performing loans was 390.1% at March, 2012, compared to 71.3% at April, 2011. 

Total stockholders' equity was $21.9 million at March 31, 2012, compared to $21.2 million at April 30, 2011.  Tier 1 capital to average assets stood at 8.43% at March 31, 2012, compared to 8.35% at April 30, 2011.  The increase in total equity is the result of net income for the eleven months of $1,217,000, stock-based compensation credits of $17,000, and an increase of $76,000 in the net unrealized gain on securities available-for-sale.  Dividends paid of $.24 per share and totaling $497,000, and Company stock repurchases totaling $106,000 partially offset these increases in total equity.

In conjunction with these announcements, the Company also reported that its Board of Directors has declared a cash dividend of $0.06 per share for the two-month period ending March 31, 2012, to be payable on May 17, 2012, to shareholders of record as of May 10, 2012.

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

March 31,


April 30,


2012


2011

ASSETS




Cash and cash equivalents:

  (In Thousands)

 Cash and due from banks

$        3,764


$        5,534

 Interest-bearing deposits in banks

8,602


6,256

  Total cash and cash equivalents

12,366


11,790

Investment securities:




 Securities available-for-sale, at fair value

44,295


46,350

 Securities held-to-maturity (fair value of $45,379 and $46,400,




 respectively

43,969


45,554

  Total investment securities

88,264


91,904

Loans receivable, net

134,331


124,497

Accrued interest receivable

867


891

Real estate held for investment

628


1,008

Real estate acquired by foreclosure

194


1,211

Premises and equipment, net

10,717


11,073

Deposits with The Co-operative Central Bank

449


449

Stock in Federal Home Loan Bank of Boston, at cost

1,449


1,650

Refundable income taxes

596


134

Deferred income taxes

377


855

Other assets

1,317


1,421

   Total assets

$    251,555


$    246,883





LIABILITIES AND STOCKHOLDERS' EQUITY




Deposits

$    226,562


$    221,023

Advances and borrowings

1,000


3,500

Advances from borrowers for taxes and insurance

655


154

Allowance for loan losses on off-balance sheet credit exposures

110


110

Accrued expenses and other liabilities

1,344


919

   Total liabilities    

229,671


225,706





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 2,063,067 at March 31, 2012 and 2,075,035 at April 30, 2011.

2,063


2,075

Additional paid-in capital

4,321


4,326

Retained earnings

14,710


14,062

Accumulated other comprehensive income

790


714

  Total stockholders' equity

21,884


21,177

   Total liabilities and stockholders' equity

$    251,555


$    246,883









MAYFLOWER BANCORP, INC. AND SUBSIDIARY
















   CONSOLIDATED STATEMENTS OF INCOME








   Unaudited









Two months
ended  March 31,


Three months
ended April 30,


Eleven months
ended March 31,


Year ended
 April 30,


2012


2011


2012


2011


  (In Thousands, Except Per Share Data)

Interest income:








   Loans receivable

$        1,177


$        1,771


$      6,375


$      7,193

   Securities held-to-maturity

203


354


1,261


1,505

   Securities available-for-sale

212


391


1,337


1,697

   Interest-bearing deposits in banks

3


3


27


20









   Total interest income

1,595


2,519


9,000


10,415









Interest expense:








   Deposits

189


377


1,207


1,711

   Borrowed funds

9


39


100


207









   Total interest expense

198


416


1,307


1,918









Net interest income

1,397


2,103


7,693


8,497









Provision for loan losses

31


45


228


201









Net interest income after provision for loan losses

1,366


2,058


7,465


8,296









Noninterest income:








   Loan origination and other loan fees

9


60


84


145

   Customer service fees 

91


143


583


666

   Gain on sales of mortgage loans

109


45


376


472

   Gain on sales of investment securities

53


63


294


294

   Interchange income

40


52


210


204

   Other

20


37


140


140









     Total noninterest income

322


400


1,687


1,921









Noninterest expense:








   Compensation and fringe benefits

714


1,074


3,965


4,232

   Occupancy and equipment

173


283


969


1,133

   FDIC assessment

23


66


148


316

   Data processing

69


94


345


383

   Losses and expenses of other real estate owned

76


25


172


259

   Other

292


468


1,718


1,819









Total noninterest expense

1,347


2,010


7,317


8,142









Income before income taxes

341


448


1,835


2,075









Provision for income taxes

117


156


618


737









Net income

$           224


$           292


$      1,217


$      1,338









Earnings per share (basic)

$          0.11


$          0.14


$        0.59


$        0.64









Earnings per share (diluted)

$          0.11


$          0.14


$        0.59


$        0.64









Weighted average basic shares outstanding

2,063


2,078


2,069


2,082

Diluted effect of outstanding stock options

3


-


3


-









Weighted average diluted shares outstanding

2,066


2,078


2,072


2,082









 

Mayflower Bancorp, Inc. and Subsidiary






Selected Financial Ratios






(Dollars in thousands, except per share information)












Two months
ended  March 31,

Three months
ended  April 30,


Eleven months
ended March 31,

Year ended 
April 30,


2012

2011


2012

2011

Key Performance Ratios






Dividends paid per share

$          0.06

$          0.06


$          0.24

$        0.24

Annualized return on average assets

0.54%

0.48%


0.53%

0.54%

Annualized return on average equity

6.15%

5.60%


6.15%

6.41%

Net interest spread

3.60%

3.76%


3.62%

3.77%

Net interest margin

3.61%

3.76%


3.62%

3.77%












Asset Quality 











 March 31, 




 April 30, 




 April 30, 

Non-performing assets

2012




2011




2010

Non-accrual loans

$               312




$        1,703




$             514

Real estate acquired by foreclosure

194




1,211




1,815


$               506




$        2,914




$          2,329











Allowance for loan losses

$            1,217




$        1,214




$          1,194











Asset Quality Ratios










Allowance for loan losses/net loans

0.91%




0.98%




0.99%

Allowance for loan losses/non-performing loans

390.06%




71.29%




232.30%











Non-performing loans/net loans

0.23%




1.37%




0.43%

Non-performing loans/total assets

0.12%




0.69%




0.20%











Non-performing assets/net loans

0.38%




2.34%




1.93%

Non-performing assets/total assets

0.20%




1.18%




0.91%











Tier 1 Capital to average assets

8.43%




8.35%




7.90%

Tier 1 Capital to risk weighted assets

15.89%




15.07%




14.53%

Book Value per Share

$           10.61




$        10.21




$            9.85

 

 

 

SOURCE Mayflower Bancorp, Inc.



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http://www.mayflowerbank.com

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