MIDDLEBORO, Mass., Aug. 18 /PRNewswire-FirstCall/ -- Mayflower Cooperative Bank (Nasdaq: MFLR) today reported net income of $485,000 or $.23 per share for its first quarter ended July 31, 2005 , a 4% increase as compared to earnings of $467,000 or $.23 per share for the same quarter last year. Diluted earnings per share for the first quarter were $.23 compared to $.22 for the first quarter of last year.
During the quarter, the Bank opened its newest full-service branch in Lakeville, Massachusetts.
Net interest income for the quarter increased by 7% or $127,000 as compared to the quarter ending July 31, 2004 as interest earning assets climbed from $202.6 million at July 31, 2004 to $226.2 million at July 31, 2005 . This reported increase in net income was also facilitated by an increase of $122,000 in gains realized upon the sale of residential first mortgages in the secondary market as offset by a decline of $69,000 in gains realized upon the sale of investments.
Total operating expenses increased from $1.4 million for the quarter ended July 31, 2004 to $1.5 million for the quarter ended July 31, 2005 , an increase of $104,000 or 7.4%. This increase was primarily attributable to salary and benefit expense for the staff of the Bank's new Lakeville office, as well as to other salary adjustments and compensation driven benefits bank wide. Occupancy and equipment expenses increased by $13,000 and other expenses increased by $24,000 .
Since the end of the April 30, 2005 fiscal year, total assets of the Bank have grown by $3.9 million , reaching $240.6 million as of July 31, 2005 . Total investment securities increased by $2.4 million while cash and cash equivalents grew by $2.1 million . Net loans receivable declined by $1.2 million as the Bank took advantage of favorable conditions to sell residential first mortgage loans in the secondary market. At July 31, 2005 , net loans receivable stood at $129.5 million .
Total deposits increased to $198.8 million , a gain of $2.8 million since the conclusion of the prior fiscal year on April 30, 2005 .
Total stockholders' equity was $18.7 million at July 31, 2005 or 7.75% of total assets. This compares to stockholders' equity of $18.4 million or 7.77% of total assets at April 30, 2005 . This increase in total equity is a function of net income of $485,000 for the quarter ended July 31, 2005 offset by the payment of a $.10 per share dividend of $207,000 . Additionally, stockholders' equity decreased due to changes in the unrealized gain/loss on Bank securities classified as available-for-sale, from a net unrealized loss of $455,000 at April 30, 2005 to a net unrealized loss of $479,000 at July 31, 2005 .
In conjunction with these announcements, Edward M. Pratt, President and Chief Executive Officer of the Bank also reported that the Bank's Board of Directors has declared a quarterly cash dividend of $.10 per share to be payable on September 9, 2005 , to shareholders of record as of September 2, 2005 .
While making these announcements,
Currently operating from six offices in Southeastern Massachusetts, Mayflower Co-operative Bank is a State Chartered Cooperative Bank with deposits fully insured by the Federal Deposit Insurance Corporation (FDIC) and the Share Insurance Fund (SIF) of Massachusetts.
(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 Bank'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 Bank's operations, pricing, products and services.
Mayflower Co-operative Bank and Subsidiaries
Selected Consolidated Financial Information
(Dollars in thousands, except per share information)
July 31, April 30,
2005 2005
Total assets $240,562 $236,707
Loans receivable, net 129,478 130,664
Federal funds sold 5,079 3,642
Investment securities:
Held for investment 40,192 38,175
Available for sale, net 48,793 48,400
Deposits 198,763 195,951
Borrowed funds 21,877 21,412
Stockholders' equity 18,650 18,396
Equity to assets ratio 7.75% 7.77%
Book value per share $9.00 $8.88
Three months ended
July 31,
2005 2004
Statement of operations
Interest and dividend income $3,015 $2,632
Interest expense 1,050 794
Net interest income 1,965 1,838
Provision for loan losses (30) (23)
Gain on sales of loans 122 -
Gain on sales of investments - 69
Other non interest income 230 223
Operating expenses (1,504) (1,400)
Income before income taxes 783 707
Income taxes 298 240
Net income $485 $467
Earnings per share - basic $0.23 $0.23
Earnings per share - diluted $0.23 $0.22
Dividends per share $0.10 $0.10
Weighted average shares
outstanding 2,071,932 2,051,052
Annualized return on average
assets 0.81% 0.86%
Annualized return on average
equity 10.47% 10.57%
Net interest spread 3.41% 3.58%
Net interest margin 3.48% 3.63%
Mayflower Co-operative Bank and Subsidiaries
Analysis of Loans Past Due
(Dollars in thousands)
July 31, April 30, July 31,
Loans past due over 90 days: 2005 2005 2004
Residential mortgages $- $- $-
Commercial and construction
mortgages - - 88
Commercial time and demand loans - - -
Consumer and other loans - - -
$- $- $88
Loans past due over 90 days as a
percentage of:
Net loans receivable - - 0.07%
Total assets - - 0.04%
Non-performing assets
**Non-accrual loans $- $- $-
Non-accrual investments (book
value) - - -
Real estate acquired by
foreclosure - - -
$- $- $-
Non-performing assets as a percentage
of:
Total assets - - -
Allowance for loan losses $1,638 $1,606 $1,498
Allowance as a percentage of net
loans 1.27% 1.23% 1.21%
** 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 Cooperative Bank
