MIDDLEBORO, Mass., Jan. 10 /PRNewswire-FirstCall/ -- Mayflower Bank (Nasdaq: MFLR) announced today that it has incurred a loss of approximately $233,000 net of taxes, resulting from the sale of an investment in a corporate bond issued by General Motors Corporation. This loss will be recorded during the Bank's third quarter ending January 31, 2006 .

The Bank's sale of this investment was prompted by the issuer's poor financial performance and by uncertainty as to its future prospects and viability. Edward M. Pratt, President of Mayflower Bank commented 'We do note that earnings from core Bank operations remain stable and that the Bank expects to declare a dividend for the quarter ending January 31, 2006 that is consistent with those declared during prior periods. Final results for the Bank's third quarter are expected to be released at the end of February.'

Mayflower Bank is a Massachusetts-chartered co-operative bank with over $239.8 million in assets, serving Southeastern Massachusetts from its main office in Middleboro and full-service branch offices in Bridgewater, Lakeville, Plymouth, Rochester and Wareham, Massachusetts. The Bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and the Share Insurance Fund (SIF) of Massachusetts.

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.

SOURCE Mayflower Bank