FARMINGTON HILLS, Mich., May 2 /PRNewswire-FirstCall/ -- Michigan Heritage Bancorp, Inc. (BULLETIN BOARD: MHBC) , the holding company for Michigan Heritage Bank, posted a net loss of $173,000, or $0.11 per diluted share, for the first quarter of 2008, compared to net income of $156,000, or $0.10 per diluted share for the same quarter of 2006. Total assets at the close of first quarter 2008 were $188,488,000, up $1,709,000, or 0.91%, from December 2007.
Raymond A. Biggs, Bank President and CEO said, "During the first quarter of 2008 we remained diligent and focused on improving the Bank's balance sheet. As we continue to operate in difficult economic times in Southeast Michigan, we are working with customers who have felt the economic impact the hardest to assist them in bringing their loans current and back into an accruing status. The Bank has streamlined its operations and made them more efficient to better service its customers.
"On April 21, 2008, the Bank announced that it will consolidate the accounts and business activities from its Livonia branch office with its nearby branch offices in Farmington Hills, and Novi, Michigan. As mentioned in the announcement, the Livonia branch office lacked a drive-thru window and ATM. Therefore, we felt we could not properly serve our customers at that location. However, the Bank remains committed to the community of Livonia and its residents and in making the consolidation for our Customers as smooth and seamless as possible.
"Looking forward, the Bank's focus is to be a financial partner with the communities and businesses in our market and is working daily to be the Bank of choice by developing creative solutions to business and customer financial needs."
FINANCIAL DATA Total assets as of March 31, 2008 were $188,488,000, compared to $186,779,000 at December 31, 2007, an increase of $1,709,000, or 0.91%. Total net loans as of March 31, 2008 were $144,908,000, compared to $149,919,000, at December 31, 2007 a decrease of $5,011,000, or 3.34%. Total deposits were $159,090,000 as of March 31, 2008 compared to $146,386,000 from a December 31, 2007 an increase of $12,704,000, or 8.68%.
Michigan Heritage Bank is a state chartered, full-service commercial bank and wholly owned subsidiary of Michigan Heritage Bancorp, Inc. A member of both the Federal Reserve System and the Federal Home Loan Bank, deposits are FDIC insured. Michigan Heritage operates from branch offices in Farmington Hills, Novi, Troy and Wixom. Michigan Heritage Bancorp stock trades on the over-the-counter (OTC) market and quotations are reported on the OTC Bulletin Board under the symbol "MHBC".
Safe Harbor. This press release contains "forward looking statements" within the meaning of the federal securities law regarding proposed developments and operations of the Company. These statements represent the Company's expectations of beliefs concerning future events. Statements containing expressions such as "believes", "anticipates" or "expects" are intended to identify such forward-looking statements. All forward-looking statements involve risks and uncertainties. Although the Company believes its expectations are based upon reasonable assumptions with the bounds of its knowledge of its business and operations, there can be no assurance with the bounds of its knowledge of its business and operations that actual results will not materially differ from expected results. The Company cautions that these and similar statements are further qualified by important factors that could cause actual results to differ materially from those in the forward- looking statements, including regional and national economic conditions, substantial changes in levels of market interest rates, credit and other risks of lending and investment activities and competitive and regulatory factors. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements, to reflect occurrences or unanticipated events of circumstances after the date of such statements.
(financial schedules follow) Michigan Heritage Bancorp, Inc. Consolidated Statement of Earnings '000 Three Months Ended December 31, 2008 2007 Operating income: (Unaudited) Interest income $3,306 $3,520 Interest expense 1,841 1,819 Net interest income 1,465 1,701 Provision for credit losses 120 60 Net interest income after provision for credit losses 1,345 1,641 Noninterest income: Gain / loss on sale of securities held available for sale 17 - Gain on sale of loans and other assets 16 129 Other income 86 97 Total noninterest income 119 226 Noninterest expense: Salaries and employee benefits 724 841 Occupancy expense 179 189 Other expense 723 524 Total noninterest expense 1,626 1,554 Income before income taxes and minority interest (162) 313 Minority interest 99 124 Income taxes (88) 33 Net income $(173) $156 Net income per share: Basic earnings per share $(0.11) $0.10 Diluted earnings per share $(0.11) $0.10 Michigan Heritage Bancorp, Inc. Condensed Balance Sheet '000 March 31, December 31, March 31, 2008 2007 2007 Assets (Unaudited) (Audited) (Unaudited) Cash and cash equivalents $3,248 $2,448 $4,535 Investments 33,018 28,047 29,086 Loans: less deferred fees ($115, $111, $86) 147,873 153,357 143,666 Allowance for loan / lease losses (2,965) (3,438) (1,637) Other assets 7,314 6,365 5,448 Total assets $188,488 $186,779 $181,098 Liabilities and stockholders' equity Deposits $159,090 $146,386 $155,624 Other borrowed funds 13,000 23,600 5,000 Other liabilities 1,073 1,415 3,056 Stockholders' equity 15,325 15,378 17,418 Total liabilities and stockholders' equity $188,488 $186,779 $181,098 Supplementary data Total loan loss reserve ratio 2.00% 2.24% 1.14% Total loans to asset ratio 79% 82% 79% Net charge-off to total loans ratio 0.40% 0.45% 0.06% Tier 1 leverage ratio 7.50% 8.03% 9.31% Net interest margin 3.26% 3.36% 3.95% Book value per share $10.15 $10.18 $11.24
