MAYFLOWER BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
| July 31, 2007 |
April 30, 2007 |
|||||||
| (unaudited) | (audited) | |||||||
| (in Thousands) | ||||||||
| ASSETS |
||||||||
| Cash and cash equivalents: |
||||||||
| Cash and due from banks |
$ | 5,082 | $ | 6,803 | ||||
| Federal funds sold |
976 | 3,919 | ||||||
| Total cash and cash equivalents |
6,058 | 10,722 | ||||||
| Investment securities: |
||||||||
| Securities available-for-sale, at fair value |
45,061 | 43,885 | ||||||
| Securities held-to-maturity (fair value of $35,805 and $36,583, respectively) |
36,445 | 37,002 | ||||||
| Total investment securities |
81,506 | 80,887 | ||||||
| Loans receivable, net |
141,498 | 137,003 | ||||||
| Accrued interest receivable |
1,211 | 1,125 | ||||||
| Real estate held for investment |
324 | 327 | ||||||
| Premises and equipment |
9,024 | 9,113 | ||||||
| Deposits with The Cooperative Central Bank |
449 | 449 | ||||||
| Stock in Federal Home Loan Bank of Boston, at cost |
1,650 | 1,650 | ||||||
| Refundable income taxes |
— | 244 | ||||||
| Deferred income taxes |
250 | — | ||||||
| Other assets |
800 | 787 | ||||||
| Total assets |
$ | 242,770 | $ | 242,307 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Deposits |
$ | 198,759 | $ | 200,859 | ||||
| Advances and borrowings |
23,344 | 20,558 | ||||||
| Advances from borrowers for taxes and insurance |
340 | 334 | ||||||
| Accrued income taxes |
55 | — | ||||||
| Deferred income taxes |
— | 92 | ||||||
| Allowance for loan losses on off-balance sheet credit exposures |
130 | 130 | ||||||
| Accrued expenses and other liabilities |
772 | 717 | ||||||
| Total Liabilities |
223,400 | 222,690 | ||||||
| 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 2,095,856 at July 31, 2007 and April 30, 2007 |
2,096 | 2,096 | ||||||
| Additional paid-in capital |
4,254 | 4,254 | ||||||
| Retained earnings |
13,517 | 13,485 | ||||||
| Accumulated other comprehensive income (loss) |
(497 | ) | (218 | ) | ||||
| Total stockholders’ equity |
19,370 | 19,617 | ||||||
| Total liabilities and stockholders’ equity |
$ | 242,770 | $ | 242,307 | ||||
See accompanying notes to consolidated financial statements
2
MAYFLOWER BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Unaudited
| Three months ended July 31, | ||||||
| 2007 | 2006 | |||||
| (In Thousands, Except Per Share Data) | ||||||
| Interest income: |
||||||
| Loans receivable |
$ | 2,465 | $ | 2,419 | ||
| Securities held-to-maturity |
399 | 368 | ||||
| Securities available-for-sale |
559 | 556 | ||||
| Federal funds sold and interest bearing deposits in banks |
33 | 1 | ||||
| Total interest income |
3,456 | 3,344 | ||||
| Interest expense: |
||||||
| Deposits |
1,438 | 1,185 | ||||
| Borrowed funds |
253 | 302 | ||||
| Total interest expense |
1,691 | 1,487 | ||||
| Net interest income |
1,765 | 1,857 | ||||
| Provision for loan losses |
— | 30 | ||||
| Net interest income after provision for loan losses |
1,765 | 1,827 | ||||
| Noninterest income: |
||||||
| Loan origination and other loan fees |
34 | 46 | ||||
| Customer service fees |
202 | 192 | ||||
| Gain on sales of mortgage loans |
9 | 24 | ||||
| Other |
55 | 41 | ||||
| Total noninterest income |
300 | 303 | ||||
| Noninterest expense: |
||||||
| Compensation and fringe benefits |
936 | 882 | ||||
| Occupancy and equipment |
267 | 246 | ||||
| FDIC assessment |
6 | 6 | ||||
| Data processing |
70 | 72 | ||||
| Other |
439 | 459 | ||||
| Total noninterest expense |
1,718 | 1,665 | ||||
| Income before income taxes |
347 | 465 | ||||
| Provision for income taxes |
105 | 165 | ||||
| Net income |
$ | 242 | $ | 300 | ||
| Earnings per share (basic) |
$ | 0.12 | $ | 0.14 | ||
| Earnings per share (diluted) |
$ | 0.11 | $ | 0.14 | ||
See accompanying notes to consolidated financial statements
3
MAYFLOWER BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
| Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (loss) |
Total | ||||||||||||||
| BALANCE, April 30, 2006 |
$ | 2,074 | $ | 4,131 | $ | 13,274 | $ | (887 | ) | $ | 18,592 | |||||||
| Net income for the 3 months ended July 31, 2006 |
— | — | 300 | — | 300 | |||||||||||||
| Other comprehensive income, net of tax: |
||||||||||||||||||
| Change in unrealized loss of securities available-for-sale, net of deferred income taxes of $33,000 |
— | — | — | 57 | 57 | |||||||||||||
| Total comprehensive income |
— | — | — | — | 357 | |||||||||||||
| Issuance of 18,160 shares $1 par value common stock |
18 | 92 | — | — | 110 | |||||||||||||
| Cash dividends paid ($.10 per share) |
— | — | (208 | ) | — | (208 | ) | |||||||||||
| BALANCE, July 31, 2006 |
$ | 2,092 | $ | 4,223 | $ | 13,366 | $ | (830 | ) | $ | 18,851 | |||||||
| BALANCE, April 30, 2007 |
$ | 2,096 | $ | 4,254 | $ | 13,485 | $ | (218 | ) | $ | 19,617 | |||||||
| Net income for the 3 months ended July 31, 2007 |
— | — | 242 | — | 242 | |||||||||||||
| Other comprehensive income, net of tax: |
||||||||||||||||||
| Change in unrealized loss on securities available-for-sale, net of deferred income taxes of $121,000 |
— | — | — | (279 | ) | (279 | ) | |||||||||||
| Total comprehensive income |
— | — | — | — | (37 | ) | ||||||||||||
| Cash dividends paid ($.10 per share) |
— | — | (210 | ) | — | (210 | ) | |||||||||||
| BALANCE, July 31, 2007 |
$ | 2,096 | $ | 4,254 | $ | 13,517 | $ | (497 | ) | $ | 19,370 | |||||||
See accompanying notes to consolidated financial statements.
4
MAYFLOWER BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three months ended July 31, |
||||||||
| 2007 | 2006 | |||||||
| (In Thousands) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Interest received |
$ | 3,389 | $ | 3,354 | ||||
| Fees and other income received |
303 | 273 | ||||||
| Interest paid |
(1,674 | ) | (1,499 | ) | ||||
| Cash paid to suppliers and employees |
(1,587 | ) | (1,439 | ) | ||||
| Income tax paid |
(27 | ) | (244 | ) | ||||
| Net cash provided by operating activities |
404 | 445 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Net increase in loans receivable |
(4,498 | ) | (931 | ) | ||||
| Purchases of available-for-sale securities |
(5,678 | ) | (963 | ) | ||||
| Proceeds from sales, calls and maturities of available-for-sale securities |
4,094 | 1,139 | ||||||
| Purchase of held-to-maturity securities |
(3,181 | ) | — | |||||
| Proceeds from maturities and calls of held-to-maturity securities |
3,728 | 1,028 | ||||||
| Purchase of Federal Home Loan Bank stock |
— | (81 | ) | |||||
| Purchases of premises and equipment |
(33 | ) | (1,313 | ) | ||||
| Other - net |
18 | 27 | ||||||
| Net cash used in investing activities |
(5,550 | ) | (1,094 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Net decrease in deposits |
(2,100 | ) | (1,587 | ) | ||||
| Proceeds from long-term debt |
5,000 | 2,500 | ||||||
| Repayment of borrowings |
(2,214 | ) | (3,206 | ) | ||||
| Net increase in overnight Federal Home Loan Bank advances |
— | 2,108 | ||||||
| Net increase in advances from borrowers for taxes and insurance |
6 | 88 | ||||||
| Issuance of common stock |
— | 110 | ||||||
| Dividends paid on common stock |
(210 | ) | (208 | ) | ||||
| Net cash provided by (used in) financing activities |
482 | (195 | ) | |||||
| Net decrease in cash and cash equivalents |
(4,664 | ) | (844 | ) | ||||
| Cash and cash equivalents - beginning of period |
10,722 | 6,795 | ||||||
| Cash and cash equivalents - end of period |
$ | 6,058 | $ | 5,951 | ||||
See accompanying notes to consolidated financial statements
5
MAYFLOWER BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
Reconciliation of Net Income to Net Cash
Provided by Operating Activities
(Unaudited)
| Three months ended July 31, |
||||||||
| 2007 | 2006 | |||||||
| (In Thousands) | ||||||||
| Net income |
$ | 242 | $ | 300 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation |
126 | 115 | ||||||
| Provision for loan losses |
— | 30 | ||||||
| Premium amortization |
18 | 58 | ||||||
| Amortization of intangible assets |
3 | 3 | ||||||
| Deferred income taxes |
(221 | ) | — | |||||
| Decrease (increase) in accrued interest receivable |
(86 | ) | (48 | ) | ||||
| Decrease (increase) in prepaid expenses |
(31 | ) | 13 | |||||
| Decrease (increase) in mortgage servicing rights |
23 | 24 | ||||||
| Decrease (increase) in refundable income taxes |
244 | (31</ | ||||||