Mayflower Bancorp Reports First Quarter Earnings And Payment Of Dividend

   Mayflower Bancorp Reports First Quarter Earnings And Payment Of Dividend

PR Newswire

MIDDLEBORO, Mass., July 24, 2013

MIDDLEBORO, Mass., July 24, 2013 /PRNewswire/ --Mayflower Bancorp, Inc.
(NASDAQ Global Market: MFLR), the holding company for Mayflower Bank, today
reported net income of $94,000 or $0.05 per share for the first quarter ended
June 30, 2013, compared to earnings of $389,000 or $0.19 per share for the
quarter ended June 30, 2012. Diluted earnings per share for the two periods
were $0.05 and $0.19 respectively.

On May 14, 2013, the Company announced the signing of a definitive agreement
under which Independent Bank Corp. will acquire Mayflower Bancorp, Inc.; and
Rockland Trust Company, the subsidiary of Independent Bank Corp., will acquire
Mayflower Bank (collectively, the "Merger"). The Merger is intended to qualify
as a tax-free reorganization for Mayflower Bancorp, Inc. shareholders for
federal income tax purposes. Shareholders will be able to elect to receive
either $17.50 in cash or 0.565 shares of Independent Bank Corp. common stock
in exchange for their shares, subject to proration and allocation so that 70%
of shares are exchanged for Independent Bank Corp. stock and the remaining 30%
exchanged for cash.

Net interest income was $1,921,000 for the quarter ended June 30, 2013,
compared to $2,080,000 for the quarter ended June 30, 2012. The net interest
margin decreased from 3.53% for the quarter ended June 30, 2012 to 3.21% for
the quarter ended June 30, 2013. Average interest-earning assets increased
from $235.5 million for the quarter ended June 30, 2012 to $239.5 million for
the quarter ended June 30, 2013. Average interest-bearing liabilities grew
from $230.6 million for the quarter ended June 30, 2012 to $232.2 million for
the quarter ended June 30, 2013.

Non-interest income was $400,000 for the quarter ended June 30, 2013, compared
to $471,000 for the quarter ended June 30, 2012, a decrease of $71,000. This
decrease was partially due to a decrease of $34,000 in gain on sales of
mortgage loans to the secondary market and a decrease of $48,000 in gain on
sales of investment securities. Additionally, customer service fees decreased
by $18,000 due to reduced returned check fees collected. These decreases were
offset by an increase of $20,000 in loan origination and other loan fees, due
to reduced amortization on the mortgage servicing asset. Additionally,
interchange income increased by $8,000 and other income increased by

Non-interest expense was $2,149,000 for the quarter ended June 30, 2013,
compared to $1,966,000 for the quarter ended June 30, 2012, an increase of
$183,000 or 9.3%. This increase was primarily the result of merger related
expenses totaling $154,000. Additionally, other expenses increased by $16,000
as a result of increased legal expense, compensation and fringe benefits
increased by $19,000 due to increased benefit costs, and the FDIC assessment
expense increased by $2,000. A decrease of $8,000 in occupancy and equipment
expense partially offset these increases.

There was no provision made to the reserve for loan losses for the current
year quarter, compared to a provision of $10,000 for the quarter ended June
30, 2012. 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 to be adequate at this time.

Since March 31, 2013, total assets of the Company have decreased by $12.5
million, ending at $248.9 million as of June 30, 2013. During the quarter,
total investment securities decreased by $10.6 million and net loans
receivable decreased by $4.9 million. The decline in loan balances is
comprised of a decrease of $1.8 million in residential mortgages outstanding,
a decrease of $3.1 million in commercial loans and mortgages, a decrease of
$565,000 in home equity loans and lines of credit, and a decrease of $87,000
in consumer loans. Offsetting these decreases was a $602,000 increase in net
construction loans outstanding.

During the quarter ended June 30, 2013, total deposits decreased by $11.5
million. This decrease was comprised of a reduction of $3.3 million in
aggregate certificate of deposit balances, coupled with a decrease of $8.2
million in checking and savings account balances. Advances and borrowings
outstanding remained constant at $1.0 million.

As of June 30, 2013, non-performing assets totaled $709,000, compared to
$584,000 at March 31, 2013 and to $561,000 at June 30, 2012. The increase
from March 31, 2013 is the result of an increase of $130,000 in real estate
acquired by foreclosure, offset by a reduction of $5,000 in non-performing
loans. Non-performing assets to total assets were 0.28% at June 30, 2013,
compared to 0.22% at March 31, 2013. The allowance for loan losses as a
percentage of non-performing loans was 275.2% at June 30, 2013, compared to
271.5% at March 31, 2013.

Total stockholders' equity stood at $22.0 million at June 30, 2013, compared
to $22.6 million at March 31, 2013. This decline is partially due to a
decrease of $618,000 in the net unrealized gain or loss on securities
available for sale and dividends paid of $0.06 per share, totaling $124,000.
Offsetting these decreases was net income for the period of $94,000 and stock
based compensation credits totaling $13,000. Tier 1 capital to average assets
stood at 8.6% at June 30, 2013 and March 31, 2013.

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 August 21, 2013, to shareholders of record as of August 7,

Mayflower Bancorp, Inc. is the holding company for Mayflower 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, and 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

(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. Additional factors that may affect our
results are discussed under "Item 1A Risk Factors" in the Company's Quarterly
Reports on Form 10-Q and in its Annual Report on Form 10-K, each filed with
the Securities and Exchange Commission (the "SEC"), which are available at the
SEC's website ( and to which reference is hereby made.

Additional Information:

In connection with the Merger, Independent has filed with the SEC a
Registration Statement on Form S-4 that includes a Proxy Statement of
Mayflower Bancorp, Inc. and a Prospectus of Independent, as well as other
relevant documents concerning the proposed transaction. Shareholders are urged
to read the Registration Statement and the Proxy Statement/Prospectus
regarding the Merger and any other relevant documents filed with the SEC, as
well as any amendments or supplements to those documents, because they will
contain important information. You will be able to obtain a free copy of the
Proxy Statement/Prospectus, as well as other filings containing information
about Independent and Mayflower, at the SEC's Internet site
( You will also be able to obtain these documents for
Independent, free of charge, at under the tab "Investor
Relations" and then under the heading "SEC Filings." Copies of the Proxy
Statement/Prospectus and the SEC filings that will be incorporated by
reference in the Proxy Statement/Prospectus can also be obtained, free of
charge, by directing a request to Investor Relations, Independent Bank Corp.,
288 Union Street, Rockland, Massachusetts 02370, (781) 982-6858.

Mayflower and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from Mayflower shareholders in
connection with the Merger and the transactions contemplated thereby.
Information about Mayflower's directors and executive officers is set forth in
the proxy statement for its 2012 annual meeting of shareholders, as filed with
the SEC on a Schedule 14A on June 20, 2012. Additional information regarding
the interests of those participants and other persons who may be deemed
participants in the transaction may be obtained by reading the Proxy
Statement/Prospectus regarding the Merger. You may obtain free copies of this
document as described in the preceding paragraph.

CONSOLIDATED BALANCE SHEETS                     June 30,        March 31,
                                                2013            2013
Cash and cash equivalents:                       (In Thousands)
Cash and due from banks                        $    3,470  $    3,492
Interest-bearing deposits in banks             12,173          8,931
 Total cash and cash equivalents               15,643          12,423
Investment securities:
Securities available-for-sale, at fair value   41,910          48,248
Securities held-to-maturity (fair value of
$41,814 and $47,052,
respectively)                                  41,739          45,952
 Total investment securities                   83,649          94,200
Loans receivable, net                           134,397         139,321
Accrued interest receivable                     756             781
Real estate held for investment                 601             606
Real estate acquired by foreclosure             269             139
Premises and equipment, net                     10,378          10,489
Deposits with The Co-operative Central Bank     449             449
Stock in Federal Home Loan Bank of Boston, at   1,252           1,252
Refundable income taxes                         380             447
Deferred income taxes                           290             -
Other assets                                    810             1,237
 Total assets                                 $  248,874    $  261,344
Deposits                                        $  224,153    $  235,683
Advances and borrowings                         1,000           1,000
Advances from borrowers for taxes and insurance 586             772
Deferred income taxes                           -               92
Accrued expenses and other liabilities          1,144           1,171
 Total liabilities                        226,883         238,718
Preferred stock $1.00 par value; authorized
issued - none                                  -               -
Common stock $1.00 par value; authorized
issued 2,059,290 at June 30, 2013 and          2,059           2,058
2,058,422 at March 31, 2013
Additional paid-in capital                      4,395           4,383
Retained earnings                               15,605          15,635
Accumulated other comprehensive (loss) income   (68)            550
 Total stockholders' equity                    21,991          22,626
 Total liabilities and stockholders' equity   $  248,874    $  261,344

Unaudited                                  Three months ended June 30,
                                           2013                2012
                                            (In Thousands, Except Per Share
Interest income:
 Loans receivable                        $      1,687  $     
 Securities held-to-maturity             236                 293
 Securities available-for-sale           204                 288
 Interest-bearing deposits in banks      5                   6
 Total interest income                   2,132               2,367
Interest expense:
 Deposits                                200                 276
 Borrowed funds                          11                  11
 Total interest expense                  211                 287
Net interest income                        1,921               2,080
Provision for loan losses                  -                   10
Net interest income after provision for    1,921               2,070
loan losses
Noninterest income:
 Loan origination and other loan fees    39                  19
 Customer service fees                  136                 154
 Gain on sales of mortgage loans         127                 161
 Gain on sales of investment securities  1                   49
 Interchange income                      69                  61
 Other                                   28                  27
 Total noninterest income              400                 471
Noninterest expense:
 Compensation and fringe benefits        1,120               1,101
 Occupancy and equipment                 267                 275
 FDIC assessment                         36                  34
 Merger expenses                         154                 -
 Other                                   572                 556
Total noninterest expense                  2,149               1,966
Income before income taxes                 172                 575
Provision for income taxes                 78                  186
Net income                                 $           $       
                                           94                  389
Earnings per share (basic)                 $             $      
                                           0.05               0.19
Earnings per share (diluted)               $             $      
                                           0.05               0.19
Weighted average basic shares outstanding  2,059               2,062
Diluted effect of outstanding stock        12                  7
Weighted average diluted shares            2,071               2,069

Mayflower Bancorp, Inc. and Subsidiary
Selected Financial Ratios
(Dollars in thousands, except per share information)
                                Three months ended
                                June 30,
                                2013        2012
Key Performance Ratios
Dividends paid per share        $       $    
                                0.06       0.06
Annualized return on average    0.15%       0.61%
Annualized return on average    1.67%       7.07%
Net interest spread             3.20%       3.52%
Net interest margin             3.21%       3.53%
Asset Quality
                                June 30,            March 31,  June 30,
Loans past due over 90 days     2013                  2013         2012
Residential mortgages           $                $       $     
                                  -                   -          -
Home equity loans and lines of  115                   147          30
Commercial and construction     -                     -            -
Commercial and consumer loans   -                     -            -
                                $                $       $     
                                115                   147           30
Non-performing assets
Non-accrual loans               $                $       $     
                                440                   445          367
Real estate acquired by         269                   139          194
                                $                $       $     
                                709                   584          561
Allowance for loan losses       $                  $         $   
                                1,211                1,208       1,229
Asset Quality Ratios
Allowance for loan losses/net   0.90%                 0.87%        0.92%
Allowance for loan              275.23%               271.46%      334.88%
losses/non-performing loans
Non-performing loans/net loans  0.33%                 0.32%        0.27%
Non-performing loans/total      0.18%                 0.17%        0.15%
Non-performing assets/net loans 0.53%                 0.42%        0.42%
Non-performing assets/total     0.28%                 0.22%        0.22%
Tier 1 Capital to average       8.62%                 8.60%        8.53%
Tier 1 Capital to risk weighted 17.32%                16.66%       16.20%
Book Value per Share            $                  $         $   
                                10.68                10.99       10.76

SOURCE Mayflower Bancorp, Inc.

Contact: Maria Vafiades, (508) 947-4343
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