The corporate parent of Mechanics and Farmers Bank reported higher profits in the third quarter.
Durham-based M&F Bancorp reported Tuesday that it generated net income of $134,000 in the third quarter versus $77,000 a year ago. Net income before dividends paid to the U.S. Treasury stemming from $11.7 million in federal stimulus money the bank received in 2009 totaled $193,000, up from $136,000 a year ago.
Net interest income totaled $2.7 million, up from $2.4 million, after deducting the provision for loan losses. The provision for loan losses totaled $166,000, down from $437,000 a year ago.
We are working through our problem loans and have recently seen some successful turnaround," CEO Kim D. Saunders said in a prepared statement. "Our continuing profitability reflects our careful cost containment efforts, as well as our strong net interest margin mainly due to our low costs of funding and customer loyalty."
Mechanics and Farmers has seven branch offices statewide: two each in Durham and Raleigh as well as branches in Charlotte, Winston-Salem and Greensboro.