MIDDLEBORO, Mass., Aug. 22 /PRNewswire-FirstCall/ -- Mayflower Bancorp,
Inc. (Nasdaq: MFLR) today reported net income of $250,000 or $.12 per share
for its first quarter ended July 31, 2008 as compared to earnings of $242,000
or $.12 per share for the same quarter last year. Diluted earnings per share
for the quarter were $.12 compared to $.11 for the same quarter of last year.
Net interest income for the quarter increased by $28,000 or 1.6% to $1.8
million due to an increase in the Company's net interest margin, from 3.11% in
the July 2007 quarter to 3.19% in the July 2008 quarter as higher costing
certificates of deposit balances repriced into lower rates.
Average interest earning assets for the period decreased from $227.4
million for the quarter ended July 31, 2007 to $225.0 million for the quarter
ended July 31, 2008 and average interest bearing liabilities declined from
$220.8 million for the quarter ended July 31, 2007 to $220.4 million for the
quarter ended July 31, 2008.
The provision for loan losses was zero for both the quarter ended July 31,
2008 and 2007. In determining the appropriate level for the allowance for loan
loss, the Company considers past loss experience, evaluations of underlying
collateral, prevailing economic conditions, the nature of the loan portfolio
and levels of non-performing and other classified loans. Management and the
Company's Board of Directors evaluate the loan loss reserve on a regular
basis, and consider the allowance as constituted to be adequate at this time.
Non-interest income for the quarter decreased by $30,000, and was
comprised of a decrease of $7,000 in loan origination and other loan fees, a
decrease of $18,000 in customer service fees, a decrease of $1,000 in other
income and an increase in losses on sales of investments of $14,000. These
were offset by an increase of $10,000 in gains on sales of loans.
Total operating expenses decreased by $3,000 for the quarter ended July
31, 2008. This decrease was due to a decrease of $36,000 in salary and benefit
expense and a decrease of $30,000 in other expenses. Offsetting these
decreases was an increase of $30,000 in FDIC assessment expense which was a
function of that agency's scheduled resumption of deposit insurance premiums,
and an increase of $18,000 in expenses related to foreclosed real estate.
Additionally, data processing expenses increased by $14,000 and occupancy and
equipment expenses increased by $1,000.
Since the end of the April 30, 2008 fiscal year, total assets of the
Company have decreased by $4.2 million, ending at $239.6 million as of July
31, 2008. This reduction is partially comprised of a decrease of $5.3 million
in the Company's total investment portfolio, as offset by an increase of $1.9
million in its loan portfolio.
