Mechanics and Farmers Bank posted a second-quarter profit, reversing its loss of a year ago.
The Durham-based bank’s corporate parent, M&F Bancorp, reported net income of $448,000, or 22 cents per share. A year ago it posted a loss of $66,000, or 3 cents per share.
Net income before dividends paid to the U.S. Treasury stemming from federal stimulus money the bank received in 2009 totaled $507,000 in the latest quarter, compared to a $7,000 loss a year ago.
“During the second quarter, the company continued to focus on improving its operating efficiency,” Kim Saunders, CEO of the parent company, said in a statement. That included reducing noninterest expense to $2.7 million, from $2.9 million a year ago.
Net interest income totaled $2.6 million, versus $2.5 million a year ago. Noninterest income more than doubled to $918,000, driven by gaining $515,000 from disposing of repossessed, non-real-estate assets.
The bank announced earlier this week that veteran banker James H. Sills III, the chief information officer and secretary of the Department of Technology for the state of Delaware, will become president and CEO of the bank and its corporate parent as of Sept. 1. Saunders stepped down as CEO of the bank in March, but remained CEO of the corporate parent while the company sought a successor.
Mechanics and Farmers has seven branches statewide, including two each in Durham and Raleigh.