M&F Bancorp, Inc. Announces Third Quarter 2025 Results and Quarterly Cash Dividend
DURHAM, N.C., November 4, 2025 – M&F Bancorp, Inc. (“Company”) (OTCPK: MFBP), the parent company of M&F Bank (“Bank”), announced unaudited financial results for the third quarter of 2025 and a quarterly cash common dividend of $0.06 per share.
Third Quarter 2025 Highlights
Net income totaled $1.6 million and $1.4 million for the three months ended September 30, 2025 and 2024, respectively, up 15.40%; net income totaled $3.7 million and $3.5 million for the nine months ended September 30, 2025 and 2024, respectively, up 6.98%. Net income available to common stockholders totaled $1.1 million and $928,000 for the three months ended September 30, 2025 and 2024, respectively, up 21.66%; net income available to common stockholders totaled $2.2 million and $2.8 million for the nine months ended September 30, 2025 and 2024, respectively, down 20.22%.
Basic and diluted earnings per common share of $0.58 for the three months ended September 30, 2025, up from $0.47 and $0.46, respectively, for the same period in 2024; basic and diluted earnings per common share of $1.14 and $1.12, respectively, for the nine months ended September 30, 2025, down from $1.41 and $1.40, respectively, for the same period in 2024.
Return on average common stockholders’ equity of 13.17% for the three months ended September 30, 2025, compared with 12.14% for the same period in 2024.
Period end loans of $274.9 million, down 3.21% from December 31, 2024.
Reversal of credit losses totaled $27,000 and $16,000 for the three months ended September 30, 2025 and 2024, respectively; provision for credit losses totaled $574,000 and $274,000 for the nine months ended September 30, 2025 and 2024, respectively.
Period end deposits of $380.6 million, down 2.61% from December 31, 2024.
Period end assets of $519.4 million, down 1.07% from December 31, 2024.
James H. Sills III, President and CEO of the Company, commented, “We had a very good third quarter; our net income was up 15.40% year over year due to lower interest expenses and lower operating expenses. We are still seeing uncertainty in the economy, and overall lending is down. The Company continues to have strong liquidity and excess capital compared to peer banks. We continue to focus on reducing our asset quality metrics and improving our efficiency ratio. On a positive note, our fee income related to gains on sales of SBA loans continues to increase for the Company. Finally, we have exceeded the ECIP 60% deep impact lending requirements for 13 straight quarters.”
The Board of Directors declared a quarterly cash dividend of $0.06 per share of common stock payable on or about December 19, 2025 to stockholders of record as of the close of business on November 19, 2025. “We are pleased to continue our quarterly cash dividend as it reflects our Company’s performance and commitment to enhance stockholder value,” said James A. Stewart, Chairman of the Board of Directors. The Company’s capital ratios remain strong and exceeded all regulatory requirements. As of September 30, 2025, the Company’s stockholders’ equity was 25.64% of total assets.
As previously announced, the Board of Directors authorized a $2.6 million stock repurchase program during the fourth quarter of 2024. The timing and exact amount of common stock repurchased will depend on various factors, including market conditions, internal capital generation and capital consumption through loan growth or other uses. Repurchases may be executed through open market purchases, privately negotiated transactions, or by other means in accordance with federal securities laws, including utilizing a Rule 10b5-1 program, and may be suspended at any time without prior notice. As of October 31, 2025, 54,000 shares had been repurchased under the repurchase program, which is authorized through the end of 2025.
For the three months ended September 30, 2025, net interest income was $5.3 million, which was an 6.12% increase from $5.0 million during the same period in 2024. For the three months ended September 30, 2025, the net interest margin was 4.24% compared to 4.18% for the same period in 2024, an increase of 6 basis points. The increase was due to a higher average earning assets during the quarter ended September 30, 2025 compared to prior year and a decrease in cost of interest-bearing deposits. For the nine months ended September 30, 2025, net interest income was $15.8 million, which was an 8.33% increase from $14.6 million during the same period in 2024. For the nine months ended September 30, 2025, the net interest margin was 4.16% compared to 4.25% for the same period in 2024, a decrease of 9 basis points. The decrease was due to a slightly lower yield on interest-earning assets partially offset by a lower cost of interest-bearing deposits.
The Company recorded a reversal for credit losses of $27,000 and $16,000 for the three months ended September 30, 2025 and 2024, respectively. The Company recorded a provision for credit losses of $574,000 and $274,000 for the nine months ended September 30, 2025 and 2024, respectively. The Allowance for Credit Losses (“ACL”) as a percentage of total loans was 1.44% at September 30, 2025 compared to 1.37% at December 31, 2024. Nonperforming assets excluding performing loans modified to borrowers experiencing financial difficulties represented 0.67% and 0.40% of total assets as of September 30, 2025 and 2024, respectively.
Noninterest income totaled $818,000 in the three months ended September 30, 2025, compared with $1.1 million for the same period in 2024, a decrease of $264,000 or 24.40%. During the quarter ended September 30, 2025, the Company recognized grant revenue in the amount of $110,000 compared to $467,000 during the comparable period of the prior year. The grant revenue primarily came from U.S. Treasury Community Development Financial Institution Fund’s Equitable Recovery Program (“ERP”) during the 2025 and 2024 periods. This program is designed to 1) provide funding to Community Development Financial Institutions (“CDFI”) to expand lending, grant making and investment activities in low- or moderate-income communities and to borrowers that have significant unmet capital and financial services needs and have experienced disproportionate economic impacts from the COVID-19 pandemic and 2) enable CDFIs to build organization capacity and acquire technology, staff and other tools necessary to accomplish the activities under a CDFI ERP award. Excluding grant revenue, noninterest income increased $93,000 or 15.12%. The largest contributor to the increase was gains on sales of Small Business Administration (“SBA”) loans, which totaled $91,000 during the quarter ended September 30, 2025 compared with none during same period of the prior year. Guaranteed portions of certain SBA loans are sold into the secondary market, which generates gains for the Company. This is a relatively new service, which broadens the Company’s lending service area. Noninterest income totaled $2.5 million in the nine months ended September 30, 2025, compared with $3.2 million for the same period in 2024, a decrease of $637,000 or 20.16%. During the nine months ended September 30, 2025, the Company recognized grant revenue in the amount of $304,000 compared to $1.2 million during the comparable period of the prior year. Excluding grant revenue, noninterest income increased $248,000 or 12.58%. The largest contributor to the increase was gains on sales of SBA loans, which totaled $333,000 during the nine months ended September 30, 2025 compared with none during same period of the prior year.
Noninterest expense totaled $4.1 million in the three months ended September 30, 2025, a decrease of $213,000 or 4.91%, from the same period in 2024. The most significant decreases occurred in salaries and employee benefits, which decreased $236,000 or 10.10%, reflective of some personnel restructuring, information technology, which decreased $82,000 or 14.21%, which primarily reflects a renegotiated contract with the Company’s core systems provider and other expenses, which decreased $53,000 or 14.72%, primarily reflecting changes in certain components associated with the Company’s defined benefit pension and other post-retirement plans. Noninterest expense totaled $13.1 million in the nine months ended September 30, 2025 and 2024, a decrease of $28,000 or 0.21%, from the same period in 2024. The most significant decreases occurred in salaries and employee benefits, which decreased $396,000, primarily reflective of some personnel restructuring and other expenses, which decreased $130,000, primarily reflecting changes in certain components associated with the Company’s defined benefit pension and other post-retirement plans.
As of September 30, 2025, accumulated other comprehensive loss totaled $5.6 million compared to $9.6 million at December 31, 2024. The accumulated other comprehensive loss was primarily due to fluctuation in interest rates and its impact on the Company’s investment securities held available-for-sale, which are carried at fair value. When rates increase, the value of investment securities decrease; the opposite is true when rates move in the opposite direction. As investment securities mature, principal is paid down or if rates decrease, the accumulated other comprehensive loss will decrease and may turn positive.