Middleboro-based Mayflower Bancorp Inc., the holding company for Mayflower Bank, reported net income of $407,000 for the quarter ended Dec. 31, 2012, up 19 percent from $341,000 for the quarter ended Jan, 31, 2012.
The company, which changed its fiscal year-end from April 30 to March 31 last year, reported net income of $1.17 million for the nine-month period ended Dec. 31, 2012 – an 18 percent increase from $993,000 for the nine months ended Jan. 31, 2012.
Quarterly non-interest income increased by $46,000 to $604,000, mainly due to an increase of $86,000 in gain on sales of mortgage loans and an increase of $29,000 in gain on sales of investment securities. Interchange income increased by $7,000. The increases were offset by a decrease of $3,000 in loan origination and other loan fees and a decrease of $27,000 in customer service fees. Other non-interest income decreased by $46,000 due to the elimination of the special dividend from The Co-operative Central Bank received in the prior year period.
For the nine months ended Dec. 31, 2012, net interest income was $6.1 million, a decrease of $205,000 compared with the nine months ended Jan. 31, 2012, due to a decrease in the company’s net interest margin.
For the nine months ended Dec. 31, 2012, non-interest income increased by $277,000, compared with the nine months ended Jan. 31, 2012. The improvement was due to an increase of $329,000 in gains on sales of mortgage loans, coupled with an increase of $14,000 in gains on sales of investments. Additionally, loan origination and other loan fees increased by $6,000 and interchange income on debit card transactions increased by $18,000. Mayflower also said customer service fees decreased by $59,000, while other income decreased by $31,000.
Since March 31, 2012, total assets of the company have increased by $3.5 million, ending at $255.1 million as of Dec. 31, 2012. During the period, loans receivable increased by $7.8 million and total investment securities decreased by $4.6 million. The increase in loans receivable is primarily due to growth of $9.7 million in residential mortgages. Offsetting the increase in residential mortgages was a decrease of $1.6 million in home equity loans and lines of credit, a decrease of $786,000 in commercial loans and mortgages and a decrease of $168,000 in consumer loans.
As of Dec. 31, 2012, non-performing assets totaled $622,000, compared with $506,000 at March 31, 2012. The increase from March 31, 2012 is the result of an increase of $186,000 in real estate acquired by foreclosure, offset by a decrease of $70,000 in non-performing loans.
Mayflower’s board of directors declared a cash dividend of 6 cents per share to be payable on Feb. 19, 2013, to shareholders of record as of Feb. 5, 2013.
Mayflower Bank has branches in Middleboro, Bridgewater, Lakeville, Plymouth, Rochester and Wareham.
