Mayflower Bancorp, Inc., the holding company for Mayflower Bank, today reported net income of $389,000 for the three months ended June 30, 2012, compared to earnings of $359,000 for the three months ended July 31, 2011, an increase of 8.4 percent.
Net interest income was down from the first quarter of 2011, dropping to $2.08 million for the quarter ended June 30, 2012, compared to $2.12 million for the quarter ended July 31, 2011. The net interest margin decreased, from 3.59 percent for the quarter ended July 31, 2011 to 3.53 percent for the quarter ended June 30, 2012. Average interest-earning assets also decreased, dropping from $236.6 million for the quarter ended July 31, 2011 to $235.5 million for the quarter ended June 30, 2012 and average interest-bearing liabilities declined from $234.7 million at July 31, 2011 to $230.6 million at June 30, 2012.
Non-interest income increased by $61,000 for the three months ended June 30, 2012 as compared to the three months ended July 31, 2011. This increase was primarily due to an increase of $84,000 in gain on sales of residential mortgage loans. Additionally, interchange income increased by $4,000 and other income increased by $5,000. These increases were offset by a decrease of $16,000 in customer service fees generated by overdraft fees and ATM surcharges. Gains realized upon the sale of investment securities decreased by $11,000, while loan origination and other loan fees decreased by $5,000, a result of additional amortization expense recorded on the mortgage servicing asset in the current quarter
Since March 31, 2012, total assets of the company have increased by $418,000, ending at $252 million as of June 30, 2012. During the period, total investment securities increased by $1.3 million while net loans receivable decreased by $443,000. This reduction in loans receivable was primarily due to a reduction of $902,000 in home equity loans and lines of credit, a decrease of $535,000 in commercial loans and mortgages, and a decrease of $98,000 in consumer loans. These decreases were offset by an increase of $680,000 in residential mortgages and an increase of $418,000 in net construction loans outstanding.
During the quarter ended June 30, 2012, total deposits increased by $652,000. This growth was comprised of an increase of $645,000 in money market deposit accounts and an increase of $989,000 in checking and savings accounts, as offset by a decrease of $982,000 in certificate of deposit balances. Advances and borrowings outstanding remained constant at $1.0 million.
As of June 30, 2012, non-performing assets totaled $561,000, compared to $506,000 at March 31, 2012. The increase from March 31, 2012 is the result of an increase of $55,000 in non-performing loans. The allowance for loan losses as a percentage of non-performing loans was 334.9 percent at June 30, 2012, compared to 390 percent at March 31, 2012.
In conjunction with these announcements, the company also reported that its board of directors has declared a quarterly cash dividend of $0.06 per share to be payable on Aug. 8, 2012, to shareholders of record as of Aug. 1, 2012.
In February 2012, Mayflower Bancorp, Inc. changed its fiscal year-end from April 30 to March 31. As such, financial information provided herein is for the period April 1, 2012 through June 30, 2012, as compared to the period May 1, 2011, through July 31, 2011.
