MIDDLEBORO, Mass., June 2 /PRNewswire-FirstCall/ -- Mayflower Co-operative Bank (Nasdaq: MFLR) today reported net income of $326,000 or $.16 per share for its fourth quarter ended April 30, 2006 as compared to earnings of $504,000 or $.25 per share for the same quarter last year. Diluted earnings per share for the fourth quarter were $.16 compared to $.25 for the fourth quarter of last year.
For the year ended April 30, 2006 , net income was $1.4 million or $.70 per share, compared to $1.9 million or $.91 per share for the same period last year. On a diluted earnings per share basis, earnings for the year were $.68 compared to $.89 for the same period in 2005.
Net interest income for the quarter decreased by $46,000 or 2.3% as the Bank continued to be impacted by the flat yield curve with interest rates on liabilities increasing more rapidly than interest rates on assets. Average interest earning assets for the quarter climbed from $221.7 million at April 30, 2005 to $230.3 million at April 30, 2006 and average interest bearing liabilities grew from $214.1 million at April 30, 2005 to $221.5 million at April 30, 2006 . Gains from the sale of residential mortgages were $27,000 , as compared to $76,000 for the quarter ended April 30, 2005 , and gains on the sales of investments were zero, compared to $11,000 realized one year ago.
Total operating expenses increased from $1.5 million for the quarter ended April 30, 2005 to $1.6 million for the quarter ended April 30, 2006 , an increase of $142,000 or 9.5%. This increase was primarily attributable to salary and benefit expense, which increased by $50,000 for the quarter ended April 30, 2006 as compared to the prior year quarter. This increase was a function of salary and benefit expense for the staff of the Bank's new Lakeville office, select additions to staff to support strategic initiatives, and increases in benefit costs bank wide. Other expenses increased by $92,000 due to increases in data processing expense, advertising expense, and legal and consulting expenses.
For the year ended April 30, 2006 , net interest income grew to $7.8 million from $7.6 million for the prior year, an increase of 2.4% or $182,000 . The increase in net interest income was facilitated by growth in average interest earning assets, from $213.3 million at April 30, 2005 to $228.8 million at April 30, 2006 . Gains from the sale of residential first mortgages in the secondary market were $172,000 for the year ended April 30, 2006 as compared to $260,000 realized one year ago, customer service fees increased by $89,000 , and loan origination fees decreased by $6,000 . Additionally, for the year ended April 30, 2006 , the Bank recorded a net loss on sales of investment securities of $254,000 , primarily due to the disposal of a corporate bond issued by General Motors Corporation, compared to a gain of $82,000 realized for the prior year period.
Total operating expenses increased from $5.8 million for the year ended April 30, 2005 to $6.3 million for the year ended April 30, 2006 , an increase of $448,000 or 7.7%. This increase was primarily attributable to salary and benefit expense for the staff of the Bank's new Lakeville office, as well as increases in benefit costs bank wide. Other factors which contributed to this increase included occupancy and equipment expenses which increased by $43,000 and marketing, technology, service delivery, and other costs which increased by $164,000 in aggregate.
Since the end of the April 30, 2005 fiscal year, total assets of the Bank have grown by $8.9 million , reaching $245.6 million as of April 30, 2006 . Total investment securities increased by $1.8 million while net loans receivable grew by $8.6 million to $139.2 million at April 30, 2006 . Total deposits increased to $200.5 million , an increase of $4.6 million since the conclusion of the prior fiscal year on April 30, 2005 .
Total stockholders' equity was $18.6 million at April 30, 2006 or 7.57% of total assets. This compares to stockholders' equity of $18.4 million or 7.77% of total assets at April 30, 2005 . The increase in total equity is due to net income of $1.4 million for the year ended April 30, 2006 offset by the payment of dividends totaling $.40 per share or $828,000 . 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 $887,000 at April 30, 2006 .
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 June 19, 2006 , to shareholders of record as of June 12, 2006 .
Mayflower Co-operative Bank is a Massachusetts State Chartered Cooperative Bank specializing in residential and commercial lending and traditional banking and deposit services. The Bank 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 Bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and by 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.
Contact: Maria Vafiades
(508) 947-4343
Mayflower Co-operative Bank and Subsidiaries
Selected Consolidated Financial Information
(Dollars in thousands, except per share information)
April 30, April 30,
2006 2005
Total assets $245,603 $236,707
Loans receivable, net 139,230 130,664
Federal funds sold 453 3,642
Investment securities:
Held for investment 39,996 38,175
Available for sale, net 48,335 48,400
Deposits 200,534 195,951
Borrowed funds 25,197 21,412
Stockholders' equity 18,592 18,396
Equity to assets ratio 7.57% 7.77%
Book value per share $8.96 $8.88
Three months ended Year ended
April 30, 30-Apr
2006 2005 2006 2005
Statement of operations
Interest and dividend
income $3,202 $2,902 $12,461 $11,084
Interest expense 1,276 930 4,641 3,446
Net interest income 1,926 1,972 7,820 7,638
Provision for loan
losses (30) - (90) (68)
Gain on sales of loans 27 76 172 260
(Loss)/gain on sales of
investments - 11 (254) 82
Other non interest
income 229 215 929 843
Operating expenses (1,633) (1,491) (6,276) (5,828)
Income before income
taxes 519 783 2,301 2,927
Income taxes 193 279 862 1,066
Net income $326 $504 $1,439 $1,861
Earnings per share --
basic $0.16 $0.25 $0.70 $0.91
Earnings per share --
diluted $0.16 $0.25 $0.68 $0.89
Dividends per share $0.10 $0.10 $0.40 $0.40
Weighted average
shares outstanding 2,072,812 2,060,439 2,072,156 2,053,504
Annualized return on
average assets 0.54% 0.86% 0.60% 0.82%
Annualized return on
average equity 7.00% 10.95% 7.75% 10.28%
Net interest spread 3.26% 3.49% 3.34% 3.53%
Net interest margin 3.35% 3.56% 3.42% 3.58%
Mayflower Co-operative Bank and Subsidiaries
Analysis of Loans Past Due
(Dollars in thousands)
April 30, April 30, April 30,
Loans past due over 90 days: 2006 2005 2004
Residential mortgages $ - $ - $ -
Commercial and construction
mortgages - - -
Commercial time and demand loans - - -
Consumer and other loans - - -
$ - $ - $ -
Loans past due over 90 days
as a percentage of:
Net loans receivable - - -
Total assets - - -
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 $1,704 $1,606 $1,473
Allowance as a percentage of
net loans 1.22% 1.23% 1.24%
SOURCE Mayflower Co-operative Bank
