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MAYFLOWER CO-OPERATIVE ANNOUNCES FOURTH QUARTER RESULTS; AGREES TO MEMORANDUM OF UNDERSTANDING

 MAYFLOWER CO-OPERATIVE ANNOUNCES FOURTH QUARTER RESULTS;
 AGREES TO MEMORANDUM OF UNDERSTANDING
 MIDDLEBORO, Mass., June 12 /PRNewswire/ -- The Mayflower Co-operative Bank


(NASDAQ: MFLR) announced a net loss of $819,000 or 96 cents per share for the fourth quarter ending April 30, 1992, compared to a loss of $83,000 or 10 cents per share for the same quarter last year.
 The net loss for the fiscal year ended April 30, 1992, was $1.6 million or $1.85 per share compared to earnings of $42,000 or 5 cents per share for the 1991 fiscal year.
 William C. MacLeod, president and chief executive officer, stated, "The regional real estate market and overall economy continues to be depressed. As a result, the bank's loan loss provision during the fourth quarter was $1.2 million, an increase of $906,000 over the prior year's quarter. As a result of the increase, the 1992 annual provision totaled $2.3 million as compared to $581,000 for the fiscal 1991 year. Specific loans charged-off against the reserve for loan loss amounted to $1.5 million in the fourth quarter of 1992."
 MacLeod also announced today that the bank has entered in a Memorandum of Understanding with the Federal Deposit Insurance Corporation (FDIC) and the Commissioner of Banks of the Commonwealth of Massachusetts. This memorandum, which is an informal regulatory understanding, is designed to improve the financial condition and operations of Mayflower.
 The memorandum requires the bank to prepare plans for approval by the FDIC and the Commissioner to reduce classified assets and credit concentrations relating to classified assets, improve the earnings of the bank and develop a funds management policy for liquidity needs, interest rate risk and coordination of loan, investment, operating and budget policies.
 The memorandum also requires that the bank charge off certain classified assets (all of which charge-offs were recorded in the quarter and year ended April 30, 1992, and are reflected in Mayflower's financial results for such periods as described above), and maintain their allowance for loan losses in accordance with applicable requirements. Pursuant to the memorandum, the bank is required to give 30-day notification to the FDIC and the Commissioner prior to the declaration of any dividend on the capital stock of the bank.
 MacLeod commented that "these regulatory actions are not unexpected in light of the impact that the continued deterioration of the New England economy has had on the operations of Mayflower. Our board of directors and management remain fully committed to working through these difficult times and we will continue to explore all strategies consistent with safe and sound banking practices to return Mayflower to profitability at the earliest possible time."
 As of April 30, 1992, the bank's loans delinquent 90 day or more totaled $3.1 million or 4.58 percent of total loans and 3.43 percent of total assets. Non-performing assets, comprised of non-accrual loans of $3.6 million and real estate acquired by foreclosure of $1.3 million, were 7.28 percent of total loans and 5.45 percent of total assets. At April 30, 1992, the bank's reserve for loan losses totaled $883,000, which was 28.57 percent of loans delinquent 90 days or more and 1.31 percent of total loans.
 At April 30, 1992, total assets were $90.2 million, net loans were $67.4 million and stockholders equity was $9.1 million or 10.12 percent of total assets. Operating from three offices in southeastern Massachusetts, the bank is a state charted co-operative bank with its deposits insured by the FDIC and the Share Insurance Fund (SIF) of Massachusetts.
 MAYFLOWER CO-OPERATIVE BANK
 Selected Consolidated Financial and Statistical Data
 (Dollars in thousands, except per share amounts)
 4/30/92 4/30/91
 Balance sheet data:
 Total assets $90,222 $91,491
 Loans receivable 67,445 72,171
 Federal funds sold 3,799 2,355

 Investment securities 10,941 9,082
 Deposits 80,245 80,065
 Borrowed funds 37 58
 Stockholders' equity 9,133 10,649
 Equity to assets ratio 10.12 pct 11.64 pct
 Book value per share $10.72 12.50
 Three months ended Year ended
 4/30/92 4/30/91 4/30/92 4/30/91
 Operating data:
 Interest income $1,844 $2,149 $7,794 $8,828
 Interest expense 1,026 1,375 4,766 5,694
 Net interest income 818 774 3,028 3,134
 Provision for possible
 loan losses (1,157) (251) (2,311) (581)
 Total (339) 523 717 2,553
 Gain on sale of
 investment securities --- 6 13 6
 Gain of sale of
 mortgage loans 19 --- 22 ---
 Loss on sale of other
 real estate (86) --- (197) (6)
 Other non-interest income 71 80 297 430
 Operating expenses (764) (716) (3,113) (2,894)
 Equity in losses of
 joint ventures (3) (27) (6) (36)
 Income (loss) before
 income taxes (1,102) (134) (2,267) 53
 Income taxes (benefit) (283) (51) (692) 11
 Net income (loss) $(819) $(83) $(1,575) $42
 Earnings (loss) per
 share (96 cents) (10 cents) $(1.85) 5 cents
 Dividends per share --- --- --- 5 cents
 Annualized return on
 verage assets (3.62 pct) (.36 pct) (1.73 pct) .05 pct
 Annualized return on
 average equity (34.35 pct) (3.13 pct) (15.92 pct) .40 pct
 Net interest spread 3.59 pct 3.25 pct 3.22 pct 3.30 pct
 Net interest margin 3.85 pct 3.61 pct 3.56 pct 3.69 pct
 MAYFLOWER CO-OPERATIVE BANK
 Analysis of Loans Past Due
 (Dollars in thousands)
 April 30, April 30,
 1992 1991
 Loans past due over 90 days:
 Residential Mortgages $446 $1,160
 Commercial and construction mortgages 1,749 2,650
 Commercial time and demand loans 890 1,239
 Consumer and other loans 6 40
 Total $3,091 $5,089
 Loans past due over 90 days as a
 percentage of:
 Total loans receivable 4.58 pct 7.05 pct
 Total assets 3.43 pct 5.56 pct
 Non-performing assets:
 Non-accrual loans-(a) $3,595 $2,684
 Real estate acquired by foreclosure 1,318 611
 Total $4,913 $3,295
 Non-performing assets as a
 percentage of:
 Total loans receivable 7.28 pct 4.57 pct
 Total assets 5.45 pct 3.60 pct
 NOTE (a)-Includes loans which are contractually past due 90 days or more and loans less than 90 days past due on which the bank has ceased accruing interest.
 -0- 6/12/92
 /CONTACT: Maria Vafiades of Mayflower Co-operative Bank, 508-947-4343/
 (MFLR) CO: Mayflower Co-operative Bank ST: Massachusetts IN: FIN SU: ERN


CN -- NE001 -- 9604 06/12/92 10:35 EDT
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