Despite quarterly losses, M&F finance chief says bank officials optimistic
The second-quarter loss reported earlier this month by M&F Bancorp Inc. was the third consecutive quarterly loss reported by the bank holding company, which is the parent company of Mechanics and Farmers Bank.
However, Randall Hall, the bank’s chief financial officer, said in an email that bank officials are optimistic for the remainder of the year. The bank, which launched operations in 1908, has a long record of reporting an annual profit.
“We are very optimistic about the remainder of 2013 and maintaining our record of profitability,” Hall said in an email.
For the second quarter, M&F Bancorp Inc. reported a net loss available to common stockholders of $66,000. That followed quarterly losses of $49,000 in the first quarter, and, according to Hall, a loss of $237,000 in the fourth quarter of last year.
Hall said in an email that a contributing factor in the losses is the decline in the bank’s outstanding loans from which the bank can generate interest revenue.
The bank saw a peak of about $213 million in loans outstanding in June 30 of 2009, according to Hall. That was down to $174 million on June 30 of this year.
“The decrease in loans outstanding has partially been attributable to the Great Recession and partially attributable to loan run-off due to competition,” he said.
In addition, the bank has greater expenses associated with foreclosed properties. For the quarter that ended June 30, the bank had $218,000 in net expenses related to foreclosed properties, he said compared to $48,000 in the same quarter in the prior year.
But he said the bank has begun to build a pipeline of loans from quality buyers in recent months. In addition, he said bank officials are looking to build additional sources of non-interest income and also at reducing overhead expenses where possible.