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) November 12, 2013
MADISON BANCORP, INC.
(Exact name of registrant as specified in its charter)
Maryland 0-54081 27-2585073 (State or other jurisdiction of (Commission (IRS Employer Incorporation) File Number) Identification No.)
8615 Ridgely’s Choice Dr., Suite 111, Baltimore, Maryland 21236
(Address of principal executive offices, including zip code)
(410) 529-7400
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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:
[ ] 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 November 12, 2013, Madison Bancorp, Inc. (the “Company”) announced its unaudited financial results for the three and six months ended September 30, 2013. For more information, reference is made to the Company’s press release dated November 12, 2013, a copy of which is attached to this Report as Exhibit 99.1 and is furnished herewith.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
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The following exhibit is furnished herewith: | |
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Number |
Description |
| 99.1 | Press Release dated November 12, 2013 |
SIGNATURE
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 thereunto duly authorized.
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MADISON BANCORP, INC. |
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| Date: November 12, 2013 | By: | /s/ Michael P. Gavin | |
| Michael P. Gavin | |||
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President and Chief Executive Officer |
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3
Exhibit 99.1
Madison Bancorp, Inc. Reports Results
for the Quarter Ended September 30, 2013
For More Information Contact
Michael P. Gavin
(410) 529-7400
Madison Bancorp, Inc.
Madison Bancorp, Inc. (the Company) (OTCBB: MDSN), the holding company for Madison Square Federal Savings Bank, reported a profit of $9,000 or $0.02 per basic and diluted common share for the three months ended September 30, 2013 as compared to a profit of $64,000 or $0.11 per basic and diluted common share for the three months ended September 30, 2012.
Net income for the six months ended September 30, 2013 was $24,000 or $0.04 per basic and diluted common share, as compared to net income of $134,000 or $0.23 per basic and diluted common share for the six months ended September 30, 2012.
Balance Sheet
Total assets decreased $2,678,000, or 1.8%, from $149,902,000 at March 31, 2013, to $147,224,000 at September 30, 2013 due to a $2,080,000, or 3.7%, decrease in investment securities available-for-sale and a $782,000, or 16.2%, decrease in cash and cash equivalents.
Total deposits decreased by $1,999,000, or 1.5%, to $132,657,000 at September 30, 2013 from $134,656,000 at March 31, 2013. This was primarily due to decreases in our higher cost certificates of deposit and our savings accounts, partially offset by increases in noninterest-bearing deposits and NOW and money market deposit accounts
Income Statement
Net income was $9,000 for the three months ended September 30, 2013, compared to $64,000 for the three months ended September 30, 2012. The decrease in net income for the current quarter was primarily the result of a decrease in noninterest revenue resulting from reductions in gains on the sale of land and gains on the sale of investment securities. This decrease in net income was partially offset by an increase in net interest income and decreases in noninterest expenses.
Net income was $24,000 for the six months ended September 30, 2013, compared to $134,000 for the six months ended September 30, 2012. The decrease in net income for the current period was primarily the result of a decrease in noninterest revenue resulting from reductions in gains on the sale of investment securities and gains on the sale of land and a decrease in net interest income. These decreases to income were only partially offset by decreases to noninterest expenses and a decrease in the provision for loan losses.
Net interest income after provision for loan losses, which excludes noninterest revenue and expense items, was $878,000 for the three months ended September 30, 2013, compared to $817,000 for the three months ended September 30, 2012, resulting in an increase of $61,000, or 7.5%, and $1,737,000 for the six months ended September 30, 2013, compared to $1,656,000 for the six months ended September 30, 2012, resulting in an increase of $81,000, or 4.9%. For both the three and six month periods, the increase was primarily the result of decreases in interest expense and provision for loan losses, partially offset by decreases in interest revenue on loans, including fees, and investment securities available-for-sale.
President and Chief Executive Officer Michael P. Gavin commented, “We are pleased with our continued profitability and our improvements to our net interest income. We have benefited from a decrease in our provision for loan losses due to the asset quality of our loan portfolio and lower interest expense as we have managed the rates on our deposits. Continuing challenges to the banking industry as a whole include a struggling economy, recent increases and potential further increases to the historically low interest rates of the past few years, a sluggish housing market and the added challenges of navigating regulatory headwinds. Madison will, however, continue to make efforts to enhance performance by relying on our established areas of expertise: focusing on asset quality, managing our expenses and providing quality banking services to our customers.”
Madison Square Federal Savings Bank operates four full service branch offices located in Perry Hall, Fallston, Bel Air and Baltimore City, Maryland.
This press release contains statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors, including but not limited to real estate values, market conditions, the impact of interest rates on financing, local and national economic factors and the matters described in the Company’s Annual Report on Form 10-K for the year ended March 31, 2013. Accordingly, actual results may differ from those expressed in the forward-looking statements.
Madison Bancorp, Inc.
Consolidated Statements of Financial Condition
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September 30, |
March 31, |
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2013 |
2013 |
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(Unaudited) |
(Audited) |
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Assets |
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Cash equivalents and time deposits |
$ | 4,535,441 | $ | 5,312,998 | ||||
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Investment securities, available for sale |
54,202,259 | 56,282,175 | ||||||
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Loans receivable, net |
83,550,919 | 83,540,352 | ||||||
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Premises and equipment, net |
3,503,348 | 3,538,379 | ||||||
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Other assets |
1,431,775 | 1,227,942 | ||||||
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Total assets |
$ | 147,223,742 | $ | 149,901,846 | ||||
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Liabilities and Shareholders' Equity |
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Deposits |
$ | 132,656,750 | $ | 134,655,798 | ||||
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Other liabilities |
1,064,998 | 985,960 | ||||||
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Total liabilities |
133,721,748 | 135,641,758 | ||||||
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Total shareholders' equity |
13,501,994 | 14,260,088 | ||||||
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Total liabilities & shareholders' equity |
$ | 147,223,742 | $ | 149,901,846 | ||||
Consolidated Statements of Operations
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For The Three Months Ended |
For The Six Months Ended |
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September 30, |
September 30, |
September 30, |
September 30, |
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2013 |
2012 |
2013 |
2012 |
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(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
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Interest revenue |
$ | 1,184,343 | $ | 1,297,210 | $ | 2,376,478 | $ | 2,679,124 | ||||||||
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Interest expense |
292,954 | 415,438 | 606,024 | 854,400 | ||||||||||||
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Net interest income |
891,389 | 881,772 | 1,770,454 | 1,824,724 | ||||||||||||
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Provision for loan losses |
13,000 | 65,000 | 33,000 | 169,000 | ||||||||||||
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Net interest income after provision for loan losses |
878,389 | 816,772 | 1,737,454 | 1,655,724 | ||||||||||||
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Noninterest revenue |
41,768 | 176,733 | 83,180 | 324,420 | ||||||||||||
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Noninterest expense |
910,913 | 929,625 | 1,796,804 | 1,845,920 | ||||||||||||
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Income before tax expense |
9,244 | 63,880 | 23,830 | 134,224 | ||||||||||||
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Income tax expense |
- | - | - | - | ||||||||||||
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Net income available to common shareholders |
$ | 9,244 | $ | 63,880 | $ | 23,830 | $ | 134,224 | ||||||||
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Earnings per common share |
$ | 0.02 | $ | 0.11 | $ | 0.04 | $ | 0.23 | ||||||||
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Earnings per common share - assuming dilution |
$ | 0.02 | $ | 0.11 | $ | 0.04 | $ | 0.23 | ||||||||