MIDDLEBORO, Mass, Dec. 4 /PRNewswire-FirstCall/ -- Mayflower Bancorp, Inc.
(Nasdaq: MFLR) today reported a net loss of $907,000 or $.44 per share for its
second quarter ended October 31, 2008 as compared to earnings of $256,000 or
$.12 per share for the same quarter last year. The diluted loss per share for
the second quarter was $.44 compared to diluted earnings per share of $.12 for
the second quarter of last year.
For the six-months ended October 31, 2008, the Company's net loss was
$657,000 or $.32 per share, compared to earnings of $498,000 or $.24 per share
for the same period last year. On a diluted per share basis, the loss for the
six-months was $.32 per share compared to diluted earnings per share of $.23
for the same period last year.
Included in the operating results for the second quarter was an other than
temporary impairment gross charge of $1.9 million related to the Company's
ownership of Federal National Mortgage Association ('Fannie Mae') and Federal
Home Loan Mortgage Corporation ('Freddie Mac') preferred and auction rate
preferred stock. The net after-tax reduction in earnings as a result of this
charge is $1.2 million.
Net interest income for the quarter increased by $171,000 or 10.1% to $1.9
million from $1.7 million for the quarter ended October 31, 2007, due in part
to the payoff of a loan previously classified as non-performing and the
subsequent receipt of unaccrued interest totaling $27,000. Additionally, the
reduction of interest rates has permitted higher costing certificates of
deposit to reprice at maturity into lower rates, thereby increasing net
interest income. During the quarter ended October 31, 2008, the Company's net
interest margin increased from 2.96% for the quarter ended October 31, 2007 to
3.32%. Average interest earning assets for the quarter decreased from $228.2
million for the quarter ended October 31, 2007 to $224.1 million for the
quarter ended October 31, 2008 and average interest bearing liabilities
declined from $222.0 million for the quarter ended October 31, 2007 to $220.4
million for the quarter ended October 31, 2008.
Non-interest income for the quarter was impacted by the $1.9 million gross
Fannie Mae and Freddie Mac write downs, and decreased in total by $1.9
million. Excluding the writedown, non interest income increased by $27,000
for the quarter ended October 2008 as a function of an increase of $17,000 in
loan origination fees, an increase of $22,000 in customer service fees, and an
increase of $2,000 in other income. These were offset by a decrease of
$11,000 in gains on sales of loans and a decrease of $3,000 in gains and
losses on sales of investments.
Total operating expenses increased by $189,000 or 11.4% for the quarter
ended October 31, 2008. This increase was primarily the result of an increase
of $115,000 in losses on and expenses for foreclosed real estate. Also
impacting operating expenses were increases of $12,000 in salary and benefit
expense, $29,000 for the scheduled resumption of FDIC deposit insurance
assessment expense, $10,000 in data processing expense, $6,000 in occupancy
and equipment expense, and $17,000 in other expenses.
For the six-months ended October 31, 2008, net interest income was $3.7
million, an increase of $199,000 or 5.8% compared to the prior year six month
period. Because of lower funding costs, the Company's net interest margin
increased from 3.03% for the six-months ended October 31, 2007 to 3.26% for
six-months ended October 31, 2008. Average interest earning assets for the
six-months ended October 31, 2008 were $224.6 million as compared to $227.8
million for the six-months ended October 31, 2007 and average interest bearing
liabilities were $220.4 million compared to $221.4 million for the same six
month period one year ago.
For the six-months ended October 31, 2008, non-interest income was
impacted by the $1.9 million Fannie Mae and Freddie Mac write-downs, and
decreased in total by $1.9 million. Excluding the write-off, non-interest
income was $623,000 for the six months ended October 31, 2008 as compared to
$626,000 for the same period last year. This decrease was due to a decrease
of $1,000 in gains on sales of loans and a decrease of $17,000 on gains and
losses on sales of investments, as offset by an increase of $10,000 in loan
origination fees, an increase of $4,000 in customer service fees, and an
increase of $1,000 in other income.
Total operating expenses increased by $186,000 to $3.6 million for the
six-months ended October 31, 2008, an increase of 5.5%.
