DURHAM — The corporate parent of Mechanics and Farmers Bank cut its quarterly dividend in half to preserve its capital in the face of the recession.
Durham-based M&F Bancorp announced Friday that it plans to pay a quarterly dividend of 2.5 cents per share to investors who own shares as of Friday. The bank's previous quarterly dividend was 5 cents per share.
M&F's chairman, James A. Stewart, said in a statement that the "unprecedented, challenging and uncertain economic environment" necessitated the action.
Mechanics and Farmers has nine branches and assets of $271.6 million as of Dec. 31. The 101-year-old bank posted an annual profit of $901,000 last year after a $1.7 million gain stemming from its acquisition of Mutual Community Savings Bank.
Staff writer David Ranii