8-K

United States

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 12, 2014

M&F BANCORP, INC.

(Exact Name of Registrant as specified in its charter)

North Carolina	000-27307	56-1980549
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

2634 Durham-Chapel Hill Boulevard, Durham, North Carolina 27707

(Address of principal executive offices)

Registrant’s telephone number, including area code (919) 683-1521

Not Applicable

(Former address of principal executive offices)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02– RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On August 12, 2014, M&F Bancorp, Inc. issued a press release announcing its financial results for the three and six months ended June 30, 2014. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

Pursuant to General Instruction B.2 of the Current Report on Form 8-K, the information in this Current Report on Form 8-K, including the press release appearing in Exhibit 99.1, is furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Furthermore, the information in this Current Report on Form 8-K, including the press release appearing in Exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933, as amended.

ITEM 9.01 – FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

The following exhibits are filed herewith:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press Release dated August 12, 2014.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

M&F BANCORP, INC.
By:	/s/ Kim D. Saunders
	Kim D. Saunders
	President and Chief Executive Officer

Dated: August 12, 2014 

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
99.1	Press Release dated August 12, 2014.

EX-99.1

 

FOR IMMEDIATE RELEASE – August 12, 2014	Exhibit 99.1
	Contact:
	Randall C. Hall, SVP/CFO
	919.313.3600
	randall.hall@mfbonline.com

M&F Bancorp, Inc. Announces Second Quarter 2014 Results

DURHAM, N.C.--

M&F Bancorp, Inc. (“Company”) (OTCBB: MFBP), the parent company of M&F Bank (“Bank”), announced unaudited financial results for the second quarter of 2014 today.

The Company recorded quarterly net income for the second quarter of 2014 of $507,000 compared to net loss of $7,000 for the second quarter of 2013, an increase of $514,000. Net income available to common shareholders for the second quarter of 2014 was $448,000 compared to net loss available to common shareholders of $66,000 for the second quarter of 2013, an increase of $514,000. Diluted income per common share increased $0.25 to $0.22 for the second quarter of 2014 compared to diluted loss per common share of $0.03 in the second quarter of 2013.

The Company recorded quarterly net income for the six months ended June 30, 2014 of $784,000 compared to net income of $3,000 for the same period of 2013, an increase of $781,000. Net income available to common shareholders for the six months ended June 30, 2014 was $667,000 compared to loss income available to common shareholders of $115,000 for the same period of 2013, an increase of $782,000. Diluted income per common share increased $0.39 to $0.33 for the six months ended June 30, 2014 compared to diluted loss per common share of $0.06 in the same period of 2013.

Kim Saunders, President and CEO of the Company, commented, "During the second quarter, the Company continued to focus on improving its operating efficiency. From our various initiatives to become more efficient, we reduced our noninterest expense from $2.9 million during the second quarter of 2013 to $2.7 million or 6.92% during the second quarter of 2014, and from $5.8 million during the first six months of 2013 to $5.4 million or 6.27% during the first six months of 2014. In addition, the Bank successfully disposed of repossessed assets other than real estate, which produced gains of $515 thousand during the three and six month period of 2014. We are thankful for the support of our customers, shareholders, employees and Board of Directors as we continue to improve the earnings of our Bank."

The Company produced net interest income of $2.6 million during the second three months of 2014, which was higher than the $2.5 million generated for the same period of 2013. The increase was caused by higher interest income, which increased $73,000 or approximately 2.71% to $2.8 million for the second three months of 2014 as compared to the same period of the prior year. Interest expense decreased slightly to $164,000 for the three months ended June 30, 2014 compared to $176,000 for the same period in 2013.

The Company produced net interest income of $5.3 million during the six months ended June 30, 2014, which was $286,000 higher than the $5.0 million generated for the same time of 2013. The increase was primarily caused by higher interest income, which increased $259,000 or approximately 4.85% to $5.6 million for the six months ended June 30, 2014 as compared to the same period of the prior year. Interest expense decreased slightly to $339,000 for the six months ended June 30, 2014 compared to $366,000 for the same period in 2013.

Noninterest income increased $510,000 or approximately 125.00% to $918,000 during the second three months of 2014 as compared to the same period of 2013. The majority of the net increase was associated with the gains on sales of repossessed assets, which generated gains of $515,000 compared to none during the same period of 2013.

Noninterest income increased $549,000 or approximately 66.95% to $1.4 million during the six months ended June 30, 2014 as compared to the same period of 2013. The majority of the increase was associated with the gains on sales of repossessed assets, which generated gains of $515,000 compared to none during the same period of 2013.

Noninterest expense decreased $203,000 or approximately 6.92% to $2.7 million for the second three months of 2014 compared to $2.9 million for the same period of 2013, primarily driven by decreases in net OREO expenses, salaries and benefits, directors fees, information technology and professional fees.

Noninterest expense decreased $363,000 or approximately 6.27% to $5.4 million for the six months ended June 30, 2014 compared to $5.8 million for the same period of 2013 primarily driven by reductions in salaries and benefits, net OREO expenses, directors fees, information technology and professional fees.

Total assets as of June 30, 2014 were $298.7 million, down approximately 0.94% or $2.8 million from $301.5 million as of December 31, 2013. During the first six months of 2014, loans decreased to $184.9 million, down approximately 2.41% or $4.6 million from $189.5 million as of December 31, 2013. Cash and cash equivalents remained level at $28.9 million as of June 30, 2014, and available-for-sale investment securities increased 5.42% or $3.6 from $65.9 million at December 31, 2013.

The allowance for loan losses was $3.5 million as of June 30, 2014 and December 31, 2013, which represented 1.87% and 1.84%, respectively, of total loans outstanding. Other real estate owned and other repossessed assets totaled $2.7 million and $3.6 million at June 30, 2014 and December 31, 2013, respectively. This 25.70% decrease has been driven by significant efforts by the Bank to dispose of nonperforming assets.

Total liabilities as of June 30, 2014 were $261.5 million, down 1.44% or $3.8 million from $265.4 million as of December 31, 2013. Decreases in deposits, primarily large balance Certificates of Deposit Account Registry Services, drove the decrease as interest-bearing deposits decreased $6.3 million or 2.96% from December 31, 2013 to June 30, 2014. Other liabilities, which decreased $128 thousand from December 31, 2013 to $4.5 million at June 30, 2014, also contributed to the overall decrease in total liabilities.

Total stockholders' equity as of June 30, 2014 was $37.1 million as compared to total stockholders' equity as of December 31, 2013 of $36.1 million. Accumulated other comprehensive loss income decreased from $1.4 million at December 31, 2013 to $1.1 million as of June 30, 2014, driven by an increase in the market value of the Company's available-for-sale investment securities and pension plans during the period. Net income of $784,000 offset by $117,000 preferred dividends and accretion also contributed to the overall increase in stockholders' equity.

This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of M&F Bancorp, Inc. (the “Company”) and M&F Bank. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and M&F Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Neither the Company nor M&F Bank undertakes an obligation to update any forward-looking statements. Additional information is detailed in the Company's filings with the Securities and Exchange Commission, and is available at www.sec.gov.

Source: M&F Bancorp, Inc.