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Mayflower Bancorp Inc (MFLR) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, April 30, 2008

Mayflower Bancorp Inc

CIK: 1381639 Ticker: MFLR

EX-99.1
2
mayflowerexb99june09-08.txt

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                                                                   EXHIBIT 99.1
================================================================================

                                  NEWS RELEASE

================================================================================
FOR RELEASE:  IMMEDIATE                                 CONTACT:  MARIA VAFIADES
                                                                  (508) 947-4343

            MAYFLOWER BANCORP REPORTS IMPROVED FOURTH QUARTER RESULTS
            ---------------------------------------------------------
                             AND PAYMENT OF DIVIDEND
                             -----------------------

         (Middleboro, MA), June 9, 2008 --- Mayflower Bancorp, Inc. (NASDAQ
Global Market: MFLR) (the "Company") the bank holding company for Mayflower
Cooperative Bank (the "Bank") today reported net income of $269,000 or $.12 per
share for its fourth quarter ended April 30, 2008 as compared to earnings of
$248,000 or $.12 per share for the same quarter last year. Diluted earnings per
share for the fourth quarter were $.12 per share for both periods.

         For the year ended April 30, 2008, net income was $1,056,000,
equivalent to $.50 per share. Earnings for the same period one year ago were
$1,047,000 or $.50 per share. On a diluted earnings per share basis, earnings
for the year 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 $1.7
million for the quarter ended April 30, 2008 as the Company continued to be
negatively impacted by compression of its net interest margin and by a slow real
estate market. The net interest margin has continued to decrease, from 3.05% for
the quarter ended April 30, 2007 to 2.95% for the quarter ended April 30, 2008.
Average interest earning assets for the quarter decreased from $227.6 million
for the quarter ended April 30, 2007 to $225.2 million for the quarter ended
April 30, 2008. Average interest bearing liabilities decreased from $220.7
million for the quarter ended April 30, 2007 to $220.4 million 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. The
Company typically provides for loan losses as needed in order to maintain its
allowance at a level estimated to be adequate to absorb probable losses based on
evaluation of inherent risks in the loan portfolio. 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 and reported to be adequate for both periods.

         Non-interest income for the quarter increased by $76,000 as compared to
the same quarter in the prior year. This increase was partially due to an
increase 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 fees
received from the Company's check printer in a revenue sharing arrangement.
Customer service fees increased by $7,000 due to increases in return check and
ATM surcharge fees. These factors were offset by a decrease of $33,000 in loan
origination fees.

                                       (1)
 2

         The Company's operating expenses increased by $35,000 or 2.1% for the
quarter 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 and
benefit 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 insurance
assessments. Finally, other expenses decreased by $21,000 due to the elimination
of prior year holding company formation expenses.

         For the year ended April 30, 2008, net interest income was $6.8
million, a decrease of $325,000 or 4.6% compared to the prior year period.
Because of higher funding costs, the Company's net interest margin decreased
from 3.09% for the year ended April 30, 2007 to 2.99% for the year ended April
30, 2008. Average interest earning assets for the year ended April 30, 2008 were
$226.9 million as compared to $230.0 million for the year ended April 30, 2007,
while average interest bearing liabilities were $221.2 million compared to
$222.0 million for the same period one year ago.

         The provision for loan losses was zero for the year ended April 30,
2008, compared to $120,000 for the year ended April 30, 2007.

         For the year ended April 30, 2008, other income totaled $1,431,000
compared to $1,261,000 for the year ended April 30, 2007, an increase of
$170,000 or 13.5%. The increase is due in part to increases in gains on sales of
loans and investments of $70,000 and $93,000, respectively. Additionally,
customer service fees increased by $10,000, while other income increased by
$58,000 as a result of the receipt of a special dividend from the Bank's excess
insurer and a revenue sharing arrangement with the Company's check printer.
These increases were offset by a decrease of $61,000 in loan origination fees.

         Total operating expenses increased by $67,000 or 1.0% for the year
ended April 30, 2008, as compared to the same period last year. This increase
was primarily attributable to an increase of $88,000 in salary and benefit
expense, an increase of $9,000 in FDIC assessment expense, and an increase of
$96,000 in occupancy and equipment expense due to additional branch operating
expenses. These increases were offset by a decrease of $126,000 in other
expenses due to the elimination of consulting and legal expenses incurred with
the prior year reorganization into a holding company structure.

         Since April 30, 2007, total assets of the Company have increased by
$1.4 million to $243.8 million as of April 30, 2008. This increase is comprised
of an increase of $14.0 million in the Company's total investment portfolio,
offset by a decrease of $11.7 million in the Company's loan portfolio. The
decrease in net loans outstanding is principally attributable to a reduction in
construction mortgages outstanding. Finally, premises and equipment increased by
$1.4 million as the Company finalized the purchase of land in Plymouth,
Massachusetts on which it intends to construct a full service retail facility.
Since April 30, 2007, total deposits increased by $3.3 million, while borrowed
funds outstanding decreased by $1.9 million.

         As of April 30, 2008, nonperforming assets totaled $1.2 million,
compared to zero at April 30, 2007. The increase is due to the recent
classification of a $617,000 residential first mortgage to non-accrual status
and an increase of $605,000 in real estate acquired by foreclosure.

         Total stockholders' equity was $19.9 million at April 30, 2008 or 8.16%
of total assets. This compares to stockholders' equity of $19.6 million or 8.10%
of total assets at April 30, 2007, an increase of $272,000 or 1.4%. Stockholder
equity was impacted by net income of $1,056,000 for the year as offset by
$838,000 due to the payment of dividends totaling $0.40 per share. Additionally,
stockholders' equity increased by $86,000 due to the exercise of employee stock
options and decreased by $146,000 due to the repurchase of shares by the
Company. Finally, stockholders equity increased by $114,000 due to a decrease in
the unrealized loss on securities classified as available-for-sale, from a net
unrealized loss of $218,000 at April 30, 2007 to a net unrealized loss of
$104,000 at April 30, 2008.

                                       (2)
 3

         In conjunction with these announcements, Edward M. Pratt, President and
Chief Executive Officer of the Company also reported that the Company's Board of
Directors has declared a quarterly cash dividend of $.10 per share to be payable
on June 24, 2008, to shareholders of record as of June 17, 2008.

         Mr. Pratt remarked further "We continue to see positive developments
bank-wide, notwithstanding the difficult economic environment in which we are
operating. Improved profitability, manageable delinquency levels, and signs of a
stabilizing net interest margin serve to demonstrate that our strategies have
been effective. The Bank remains fundamentally sound, and we look forward to
still further improvement in coming periods".

         Mayflower Bancorp, Inc. is the holding company for Mayflower
Co-operative Bank which specializes in residential and commercial lending and
traditional banking and deposit services. The Company currently serves
southeastern Massachusetts from its Main Office in Middleboro and maintains
additional full-service offices in Bridgewater, Lakeville, Plymouth, Rochester,
Wareham, and West Wareham, Massachusetts. All of the Company's deposits are
insured by the Federal Deposit Insurance Corporation (FDIC) to applicable
limits. All amounts above those limits are insured in full by the Share
Insurance Fund (SIF) of Massachusetts. For further information on Mayflower
Bancorp, Inc. please visit www.mayflowerbank.com.
                           ---------------------

         (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 COMPANY'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 COMPANY'S OPERATIONS,
PRICING, PRODUCTS AND SERVICES.

                                       (3)
 4

MAYFLOWER BANCORP, INC. AND SUBSIDIARY SELECTED CONSOLIDATED FINANCIAL INFORMATION (DOLLARS IN THOUSANDS, EXCEPT PER SHARE INFORMATION) APRIL 30, APRIL 30, 2008 2007 ---------- ---------- Total assets $243,751 $242,307 Loans receivable, net 125,336 137,003 Federal funds sold 2,975 3,919 Investment securities: Held for investment 43,377 37,002 Available for sale, net 51,466 43,885 Deposits 204,176 200,859 Borrowed funds 18,659 20,558 Stockholders' equity 19,889 19,617 Equity to assets ratio 8.16% 8.10% Book value per share $ 9.51 $ 9.36 THREE MONTHS ENDED YEAR ENDED APRIL 30, APRIL 30, 2008 2007 2008 2007 ----------------------- ---------------------- STATEMENT OF OPERATIONS Interest and dividend income $ 3,203 $ 3,372 $ 13,459 $ 13,439 Interest expense 1,544 1,635 6,671 6,326 ---------- ---------- ---------- ---------- Net interest income 1,659 1,737 6,788 7,113 Provision for loan losses - (30) - (120) Gain on sales of loans 90 65 251 181 Gain on sales of investments 77 15 108 15 Other non interest income 240 251 1,072 1,065 Operating expenses (1,710) (1,675) (6,742) (6,675) ---------- ---------- ---------- ---------- Income before income taxes 356 363 1,477 1,579 Income taxes 87 115 421 532 ---------- ---------- ---------- ---------- Net income $ 269 $ 248 $ 1,056 $ 1,047 ========== ========== ========== ========== Earnings per share - basic $ 0.12 $ 0.12 $ 0.50 $ 0.50 Earnings per share - diluted $ 0.12 $ 0.12 $ 0.49 $ 0.49 Dividends per share $ 0.10 $ 0.10 $ 0.40 $ 0.40 Weighted average shares outstanding 2,094,479 2,093,176 2,096,109 2,089,537 Annualized return on average assets 0.45% 0.41% 0.44% 0.43% Annualized return on average equity 5.38% 5.12% 5.39% 5.50% Net interest spread 2.89% 2.97% 2.91% 2.99% Net interest margin 2.95% 3.05% 2.99% 3.09%
(4) 5
MAYFLOWER BANCORP, INC. AND SUBSIDIARY ANALYSIS OF LOANS PAST DUE (DOLLARS IN THOUSANDS) April 30, April 30, April 30, LOANS PAST DUE OVER 90 DAYS: 2008 2007 2006 ------------ ------------ ------------- Residential mortgages $ 617 $ - $ - Commercial and construction mortgages - - - Commercial time and demand loans - - - Consumer and other loans - - - $ 617 $ - $ - ============ ============ ============= LOANS PAST DUE OVER 90 DAYS AS A PERCENTAGE OF: Net loans receivable 0.49% - - Total assets 0.25% - - NON-PERFORMING ASSETS **Non-accrual loans $ 617 $ - $ - Real estate acquired by foreclosure 605 - - $ 1,222 $ - $ - ============ ============ ============= NON-PERFORMING ASSETS AS A PERCENTAGE OF: Net loans receivable 0.97% - - Total assets 0.50% - - ALLOWANCE FOR LOAN LOSSES $ 1,375 $ 1,673 $ 1,704 ALLOWANCE FOR LOAN LOSSES ON OFF-BALANCE SHEET EXPOSURES 110 130 - ------------ ------------ ------------- $ 1,485 $ 1,803 $ 1,704 ============ ============ ============= ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF NON-PERFORMING ASSETS 112.52% n/a n/a ALLOWANCE FOR LOAN LOSSES AS A PERCENTAGE OF NET LOANS 1.10% 1.22% 1.22%
** includes loans which are contractually past due 90 days or more and/or loans less than 90 days past due on which the Bank has ceased accruing interest (5)

The following information was filed by Mayflower Bancorp Inc (MFLR) on Tuesday, June 10, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Ticker: MFLR
CIK: 1381639
Form Type: 10-K Annual Report
Accession Number: 0001193125-08-153475
Submitted to the SEC: Fri Jul 18 2008 1:58:33 PM EST
Accepted by the SEC: Fri Jul 18 2008
Period: Wednesday, April 30, 2008
Industry: State Commercial Banks

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