MAYFLOWER BANCORP INC. 
By MIDDLEBORO, Mass., Feb. 16, 2012 /PRNewswire/ -- Mayflower Bancorp, Inc. (NASDAQ Global Market: MFLR), the holding company for Mayflower Bank, today reported net income of $341,000 or $0.17 per share for its third quarter ended January 31, 2012, compared to earnings of $325,000 or $0.15 per share for the same quarter last year. The diluted earnings per share for the third quarter were $0.17 compared to $0.15 per share for the third quarter of last year.
For the nine months ended January 31, 2012, net income was $993,000 or $0.48 per share, compared to earnings of $1,046,000 or $0.50 per share for the same period last year. On a diluted per share basis, earnings for the nine months were $0.48 per share compared to $0.50 per share for the same period last year.
Net interest income for the quarter ending January 31, 2012 decreased by $15,000 to $2.1 million. This reduction was due to a decrease in the Company's net interest margin, from 3.73% in the January, 2011 quarter to 3.62% in the January, 2012 quarter. Average interest-earning assets for the period increased from $224.2 million for the quarter ended January 31, 2011 to $229.5 million for the quarter ended January 31, 2012 and average interest-bearing liabilities grew from $222.9 million for the quarter ended January 31, 2011 to $225.6 million for the quarter ended January 31, 2012.
Non-interest income for the quarter decreased by $32,000, primarily due to a decrease of $76,000 in gains on sales of investments, offset by an increase of $20,000 in gains on sales of residential mortgage loans. Additionally, loan origination and other loan fees decreased by $2,000. These decreases were offset by an increase of $4,000 in customer service fees and an increase of $4,000 in interchange income. Finally, other income increased by $18,000, due primarily to an increase in the special dividend received from The Co-operative Central Bank, the excess deposit insurer of Mayflower Bank's customers.
As compared to the same period last year, total operating expenses decreased by $143,000 for the quarter ended January 31, 2012. This decrease was partially a result of a decrease of $120,000 in losses and expenses of other real estate owned, a decrease of $39,000 in FDIC assessments, and a decrease of $28,000 in occupancy and equipment expense. These were offset by an increase of $34,000 in salary and benefit expense, and an increase of $10,000 in data processing and other operating expenses.
The provision for loan losses for the quarter ended January 31, 2012 was $90,000, compared to $20,000 for the quarter ended January 31, 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 loan loss reserve on a regular basis, and consider the allowance as constituted to be adequate at this time.
For the nine months ended January 31, 2012, net interest income was $6.3 million, a decrease of $98,000 compared to the prior year nine-month period. This can be attributed to a decrease in the Company's net interest margin, which declined from 3.77% for the nine months ended January 31, 2011 to 3.62% for nine months ended January 31, 2012. Average interest-earning assets for the nine months ended January 31, 2012 were $231.7 million as compared to $226.2 million for the nine months ended January 31, 2011 and average interest-bearing liabilities were $228.7 million compared to $225.5 million for the same nine-month period one year ago.
For the nine months ended January 31, 2012, non interest income decreased by $156,000, primarily due to a decrease of $160,000 in gains on sales of residential mortgage loans, coupled with a decrease of $10,000 in loan origination and other loan fees. Finally, customer service fees decreased by $31,000 due to reduced ATM surcharge income. These decreases were partially offset by an increase of $10,000 in gains on sales of investment securities, an increase of $18,000 in interchange income, and an increase of $17,000 in other income.
Total operating expenses decreased by $162,000 to $6.0 million for the nine months ended January 31, 2012. This decrease was attributable to a decrease of $54,000 in occupancy and equipment expense, a decrease of $125,000 in FDIC assessment expense, a decrease of $13,000 in data processing expense, and a decrease of $138,000 in losses and expenses of other real estate owned. These decreases were partially offset by an increase of $93,000 in compensation and fringe benefit expense and an increase of $75,000 in other expenses, partially due to legal fees for delinquent loans.
The provision for loan losses for the nine-month period ended January 31, 2012 was $197,000, compared to $156,000 for the nine months ended January 31, 2011. The allowance for loan losses as a percentage of net loans was 0.95% at January 31, 2012, compared to 0.98% at April 30, 2011.
Since the end of the April 30, 2011 fiscal year, total assets of the Company have increased by $829,000, ending at $247.7 million as of January 31, 2012. During the nine-month period, cash and cash equivalents increased by $1.1 million while total investment securities decreased by $2.6 million. During the nine months ended January 31, 2012, net loans receivable increased by $3.8 million. This growth in loan balances is comprised of an increase of $6.4 million in residential mortgages outstanding as the Bank has elected to retain a larger percentage of new mortgage originations, and an increase of $209,000 in consumer loans. Offsetting these increases were decreases of $1.5 million in net construction loan balances outstanding, $1.0 million in home equity loans and lines of credit, and $316,000 in commercial loans and mortgages.
During the nine months ended January 31, 2012, total deposits increased by $589,000. This growth was comprised of an increase of $3.9 million in money market deposit accounts and an increase of $1.8 million in checking and savings accounts which was offset by a decrease of $5.2 million in certificates of deposit. Advances and borrowings outstanding decreased by $1.0 million during the period.
As of January 31, 2012, non-performing assets totaled $922,000, compared to $2.9 million at April 30, 2011 and to $2.8 million at January 31, 2011. The decrease from April 30, 2011 is the result of a reduction of $1.0 million in non-performing loans and a reduction of $945,000 in real estate acquired by foreclosure. The allowance for loan losses as a percentage of non-performing loans was 185.2% at January, 2012, compared to 71.3% at April, 2011.
Total stockholders' equity was $21.9 million at January 31, 2012, compared to $21.2 million at April 30, 2011. Tier 1 capital to average assets stood at 8.42% at January 31, 2012, compared to 8.35% at April 30, 2011. The increase in total equity is the result of net income for the nine months of $993,000, stock-based compensation credits of $17,000, and an increase of $190,000 in the net unrealized gain on securities available-for-sale. An $0.18 dividend per share totaling $373,000 and Company stock repurchases totaling $102,000 partially offset these increases in total equity.
In conjunction with these announcements, the Company also reported that its Board of Directors has declared a quarterly cash dividend of $0.06 per share to be payable on March 9, 2012, to shareholders of record as of March 2, 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
January
CONSOLIDATED BALANCE SHEETS 31, April 30,
2012 2011
---- ----
ASSETS (unaudited) (audited)
Cash and cash equivalents: (In Thousands)
Cash and due from banks $3,635 $5,534
Interest-bearing deposits in
banks 9,237 6,256
----- -----
Total cash and cash equivalents 12,872 11,790
Investment securities:
Securities available-for-sale,
at fair value 45,747 46,350
Securities held-to-maturity
(fair value of $45,141 and
$46,400,
respectively 43,523 45,554
------ ------
Total investment securities 89,270 91,904
Loans receivable, net 128,259 124,497
Accrued interest receivable 855 891
Real estate held for investment 931 1,008
Real estate acquired by
foreclosure 266 1,211
Premises and equipment, net 10,784 11,073
Deposits with The Co-operative
Central Bank 449 449
Stock in Federal Home Loan Bank
of Boston, at cost 1,650 1,650
Refundable income taxes 248 134
Deferred income taxes 773 855
Other assets 1,355 1,421
----- -----
Total assets $247,712 $246,883
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits $221,612 $221,023
Advances and borrowings 2,500 3,500
Advances from borrowers for taxes
and insurance 340 154
Allowance for loan losses on off-
balance sheet credit exposures 110 110
Accrued expenses and other
liabilities 1,248 919
----- ---
Total liabilities 225,810 225,706
------- -------
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 2,063,443 at January 31,
2012 and 2,075,035 at April 30,
2011 2,063 2,075
Additional paid-in capital 4,322 4,326
Retained earnings 14,613 14,062
Accumulated other comprehensive
income 904 714
--- ---
Total stockholders' equity 21,902 21,177
------ ------
Total liabilities and
stockholders' equity $247,712 $246,883
======== ========
MAYFLOWER BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
Three months ended Nine months ended
January 31, January 31,
----------- -----------
2012 2011 2012 2011
---- ---- ---- ----
(In Thousands, Except Per Share Data)
Interest
income:
Loans
receivable $1,730 $1,801 $5,198 $5,422
Securities
held-to-
maturity 332 349 1,058 1,151
Securities
available-
for-sale 344 396 1,125 1,306
Interest-
bearing
deposits in
banks 6 5 24 17
--- --- --- ---
Total interest
income 2,412 2,551 7,405 7,896
----- ----- ----- -----
Interest
expense:
Deposits 304 412 1,018 1,334
Borrowed funds 30 46 91 168
--- --- --- ---
Total interest
expense 334 458 1,109 1,502
--- --- ----- -----
Net interest
income 2,078 2,093 6,296 6,394
Provision for
loan losses 90 20 197 156
--- --- --- ---
Net interest
income after
provision for
loan losses 1,988 2,073 6,099 6,238
----- ----- ----- -----
Noninterest
income:
Loan
origination
and other
loan fees 24 26 75 85
Customer
service fees 161 157 492 523
Gain on sales
of mortgage
loans 133 113 267 427
Gain on sales
of investment
securities 107 183 241 231
Interchange
income 57 53 170 152
Other 76 58 120 103
--- --- --- ---
Total
noninterest
income 558 590 1,365 1,521
--- --- ----- -----
Noninterest
expense:
Compensation
and fringe
benefits 1,093 1,059 3,251 3,158
Occupancy and
equipment 262 290 796 850
FDIC
assessment 42 81 125 250
Data
processing 97 98 276 289
Losses and
expenses of
other real
estate owned 75 195 96 234
Other 454 443 1,426 1,351
--- --- ----- -----
Total
noninterest
expense 2,023 2,166 5,970 6,132
----- ----- ----- -----
Income before
income taxes 523 497 1,494 1,627
Provision for
income taxes 182 172 501 581
--- --- --- ---
Net income $341 $325 $993 $1,046
==== ==== ==== ======
Earnings per
share (basic) $0.17 $0.15 $0.48 $0.50
===== ===== ===== =====
Earnings per
share
(diluted) $0.17 $0.15 $0.48 $0.50
===== ===== ===== =====
Weighted
average basic
shares
outstanding 2,067 2,082 2,071 2,083
Diluted effect
of
outstanding
stock options 3 - 3 -
--- --- --- ---
Weighted
average
diluted
shares
outstanding 2,070 2,082 2,074 2,083
===== ===== ===== =====
Mayflower Bancorp, Inc. and Subsidiary
Selected Financial Ratios
(Dollars in thousands, except per share information)
Three months ended Nine months ended
January 31, January 31,
2012 2011 2012 2011
---- ---- ---- ----
Key
Performance
Ratios
Dividends
paid per
share $0.06 $0.06 $0.18 $0.18
Annualized
return on
average
assets 0.55% 0.53% 0.53% 0.56%
Annualized
return on
average
equity 6.29% 6.19% 6.15% 6.68%
Net interest
spread 3.61% 3.73% 3.61% 3.76%
Net interest
margin 3.62% 3.73% 3.62% 3.77%
Asset Quality
January January
31, April 30, 31,
Non-
performing
assets 2012 2011 2011
---- ---- ----
Non-accrual
loans $656 $1,703 $1,542
Real estate
acquired by
foreclosure 266 1,211 1,211
--- ----- -----
$922 $2,914 $2,753
==== ====== ======
Allowance for
loan losses $1,215 $1,214 $1,292
Asset Quality
Ratios
Allowance for
loan losses/
net loans 0.95% 0.98% 1.01%
Allowance for
loan losses/
non-
performing
loans 185.21% 71.29% 83.79%
Non-
performing
loans/net
loans 0.51% 1.37% 1.21%
Non-
performing
loans/total
assets 0.26% 0.69% 0.63%
Non-
performing
assets/net
loans 0.72% 2.34% 2.15%
Non-
performing
assets/
total assets 0.37% 1.18% 1.12%
Tier 1
Capital to
average
assets 8.42% 8.35% 8.28%
Tier 1
Capital to
risk
weighted
assets 15.66% 15.07% 14.74%
Book Value
per Share $10.61 $10.21 $10.04
SOURCE Mayflower Bancorp, Inc.
