The corporate parent of Mechanics and Farmers Bank posted a first-quarter loss of $228,000, or 11 cents per share, down from a profit of $218,000 a year ago.
The Durham-based bank, which is changing its name to M&F Bank next month, reported Wednesday that “the disposition of problem assets” contributed significantly to the loss.
“By selling and writing down various properties, we reduced future losses and carrying costs, which negatively impacted earnings for the first quarter of 2015,” CEO James H. Sills III said in a prepared statement. “This was a pivotal quarter, which required making some tough decisions on how we managed non-performing assets at the bank on a go forward basis.”
The bank’s loss amounted to $169,000 after excluding dividends paid to the U.S. Treasury stemming from federal stimulus money the bank received in 2009, down from a profit of $277,000 a year earlier. The bank is hoping to raise capital from investors at the end of this year or in early 2016 so it can pay back that money.
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Net interest income totaled $2.4 million, down from $2.7 million. Interest income totaled $2.6 million, down 9.2 percent.
The Durham-based bank has seven branches across the states and $297.8 million in assets.