MIDDLEBORO, Mass., June 9 /PRNewswire-FirstCall/ -- Mayflower Bancorp,Inc. (Nasdaq: MFLR) (the 'Company') the bank holding company for MayflowerCooperative Bank (the 'Bank') today reported net income of $269,000 or $.12per share for its fourth quarter ended April 30, 2008 as compared to earningsof $248,000 or $.12 per share for the same quarter last year. Dilutedearnings per share for the fourth quarter were $.12 per share for bothperiods.
For the year ended April 30, 2008, net income was $1,056,000, equivalentto $.50 per share. Earnings for the same period one year ago were $1,047,000or $.50 per share. On a diluted earnings per share basis, earnings for theyear were $.49 per share for both periods.
Net interest income for the quarter ended April 30, 2008 decreased by$78,000, or 4.5%, as compared to the quarter ended April 30, 2007, to $1.7million for the quarter ended April 30, 2008 as the Company continued to benegatively impacted by compression of its net interest margin and by a slowreal estate market. The net interest margin has continued to decrease, from3.05% for the quarter ended April 30, 2007 to 2.95% for the quarter endedApril 30, 2008. Average interest earning assets for the quarter decreasedfrom $227.6 million for the quarter ended April 30, 2007 to $225.2 million forthe quarter ended April 30, 2008. Average interest bearing liabilitiesdecreased from $220.7 million for the quarter ended April 30, 2007 to $220.4million for the quarter ended April 30, 2008.
The provision for loan losses was zero during the quarter ended April 30,2008, compared to $30,000 for the same quarter of the previous year. TheCompany typically provides for loan losses as needed in order to maintain itsallowance at a level estimated to be adequate to absorb probable losses basedon evaluation of inherent risks in the loan portfolio. In determining theappropriate level for the allowance for loan loss, the Company considers pastloss experience, evaluations of underlying collateral, prevailing economicconditions, the nature of the loan portfolio and levels of non-performing andother classified loans. Management and the Company's Board of Directorsevaluate the loan loss reserve on a regular basis, and consider the allowanceas constituted and reported to be adequate for both periods.
Non-interest income for the quarter increased by $76,000 as compared tothe same quarter in the prior year. This increase was partially due to anincrease of $62,000 in gains on the sales of investments and an increase of$25,000 in gains on sales of loans. Additionally, other income increased by$15,000 as a result of increases in debit card interchange income and feesreceived from the Company's check printer in a revenue sharing arrangement.Customer service fees increased by $7,000 due to increases in return check andATM surcharge fees. These factors were offset by a decrease of $33,000 inloan origination fees.
The Company's operating expenses increased by $35,000 or 2.1% for thequarter ended April 30, 2008 as compared to the quarter ended April 30, 2007.This increase was partially the result of an increase of $35,000 in salary andbenefit expense. Additionally, occupancy and equipment expense increased by$11,000 due to increased energy costs and FDIC assessment expense increased by$10,000 as a function of the scheduled resumption of deposit insuranceassessments. Finally, other expenses decreased by $21,000 due to theelimination of prior year holding company formation expenses.
For the year ended April 30, 2008, net interest income was $6.8 million, adecrease of $325,000 or 4.6% compared to the prior year period.
