Mechanics and Farmers Bank managed to continue its more than a century of posting annual profits in 2013 with the help of a government grant.
Durham-based M&F Bancorp, the bank’s corporate parent, reported 2013 net income of $126,000, or 6 cents per share, compared with $104,000, or 5 cents per share, a year ago. Net income for the year before dividends paid to the U.S. Treasury stemming from federal stimulus money the bank received in 2009 totaled $363,000, up from $341,000 in 2012.
In financial results filed with the Securities and Exchange Commission, the bank attributed the improvement in net income to a $323,000 Bank Enterprise Award received from the U.S. Treasury in the fourth quarter. The award, according to the company, “reflects the bank’s dedication to financing and supporting community and economic development activities in economically distressed areas.”
The boost from the grant was partially offset by an increase in the bank’s provision for loan losses, which rose from $166,000 in 2012 to $329,000 last year.
Mechanics and Farmers Bank has been profitable every year since it opened its first branch in 1908. The bank has seven branches statewide, including two each in Durham and Raleigh.