BRIDGEVIEW, Ill., April 27 /PRNewswire-FirstCall/ -- Midland
Capital Holdings Corporation (OTC:MCPH) (BULLETIN BOARD: MCPH) (the
"Company") the holding company for Midland Federal Savings and Loan
Association ("Midland Federal") today announced that net income for
the quarter ended March 31, 2007 totaled $164,000, or $0.44 per
diluted share, compared to net income of $223,000, or $0.60 per
diluted share, for the quarter ended March 31, 2006. Net income for
the nine months ended March 31, 2007 totaled $557,000, or $1.50 per
diluted share, compared to net income totaling $751,000, or $2.01
per diluted share, for the nine months ended March 31, 2006.
Midland Capital Holdings Corporation also announced that it will
pay a regular cash dividend of $0.24 per share for the quarter
ended March 31, 2007. The dividend will be payable May 17, 2007 to
shareholders of record as of May 7, 2007. Annualized return on
average assets and annualized return on average equity during the
quarter ended March 31, 2007 were .53% and 4.83%, respectively
compared to .68% and 6.84%, respectively, for the comparable prior
year quarter. For the nine months ended March 31, 2007, annualized
return on average assets and annualized return on average equity
were .59% and 5.50%, respectively, compared to .75% and 7.74%,
respectively, for the nine months ended March 31, 2006. Net
interest income decreased $130,000 to $1.16 million in the quarter
ended March 31, 2007 as compared to the prior year quarter. The
decrease in net interest income is primarily attributed to a
decrease in interest rate spread to 3.54% for the quarter ended
March 31, 2007 from 3.81% for the prior year period. The average
balance of interest earning assets also decreased by $7.0 million
to $119.3 million compared with the prior year period. For the nine
months ended March 31, 2007 net interest income decreased $299,000
to $3.59 million. The decrease in net interest income in the
current nine month period was also primarily the result of a
decrease in interest rate spread to 3.63% compared to 3.81% in the
prior year period. Non-interest income increased $4,000 to $203,000
in the quarter ended March 31, 2007 as compared to the prior year
quarter. The primary factors for the increase in non-interest
income were an $18,000 increase in gain on the sale of loans, a
$10,000 increase in loan fees and service charges, a $6,000
increase in commission income and a $3,000 increase in land trust
fees offset by a $34,000 decrease in deposit related fees. The
increase in loan fees and service charges resulted primarily from
an increase in brokered loan fees. For the nine months ended March
31, 2007 non-interest income decreased $74,000 to $593,000 from
$667,000 in the prior year period. The primary factors for the
decrease in non-interest income were an $84,000 decrease in deposit
related fees and a $59,000 decrease in loan fees and service
charges offset by a $50,000 increase in profit on the sale of
loans, a $24,000 recovery of data communication charges billed in
error and a $7,000 increase in commission income. Non-interest
income was increased in the prior year period as a result of a
$16,000 gain from additional proceeds received in the prior year
period on the sale of Midland Federal's investment in Intrieve,
Incorporated. Non-interest expense decreased $37,000 to $1.1
million in the quarter ended March 31, 2007 as compared to the
prior year quarter. The decrease in non-interest expense is
primarily the result of a $10,000 decrease in staffing costs and a
$10,000 decrease in computer software and support expense. For the
nine months ended March 31, 2007 non-interest expense decreased
$79,000 to $3.34 million compared with the prior year period. The
primary factors for the decrease in non-interest expense in the
current nine month period were a $31,000 decrease in staffing
expense, a $21,000 decrease in computer software and support
expense and a $9,000 decrease in data processing fees, offset by a
$21,000 increase in office occupancy expense. The decrease in
staffing expense is primarily attributed to a $28,000 decrease in
payroll expenses and a $15,000 decrease in loan origination
commissions due to a decrease in lending volume, offset by an
$18,000 increase in the cost of employee benefits. Non-performing
assets were .67% of total assets at March 31, 2007 and consisted of
$834,000 in non-performing loans compared to $327,000 in
non-performing loans, or .25% of total assets, at June 30, 2006.
Non-accruing loans at March 31, 2007 consisted of $808,000 in
one-to-four family residential mortgage loans and $26,000 in
non-mortgage loans. The allowance for loan losses increased $6,000
during the nine months ended March 31, 2007 due to net recoveries
and amounted to $422,000, or 0.49% of total loans, at March 31,
2007. The Company made no loan loss provisions during the nine
months ended March 31, 2007. At March 31, 2007 the Company's ratio
of allowance for loan losses to non-performing loans was 50.61%
compared to 127.27% at June 30, 2006. At March 31, 2007 the
Company's assets totaled $125.1 million, compared to total assets
of $130.8 million at June 30, 2006. Net loans receivable declined
$6.3 million to $85.4 million at March 31, 2007. Total deposits
declined $5.7 million to $110.3 million at March 31, 2007 from
$116.0 million at June 30, 2006. The net decrease in deposits is
primarily attributed to increased competition for deposit accounts
in the current interest rate environment. Stockholders' equity in
the Company totaled $13.7 million at March 31, 2007 resulting in a
book value per common share of $36.70 based upon 372,600 shares
outstanding. At March 31, 2007 Midland Federal's capital ratios
exceeded all of its regulatory capital requirements with both
tangible and core capital ratios of 8.91% and a risk-based capital
ratio of 21.25%. Midland Federal's deposits are insured up to
applicable limits by the Federal Deposit Insurance Corporation.
Midland Federal operates four banking offices located in Chicago,
Homer Glen and Bridgeview, Illinois. (Selected Consolidated
Financial Information follows) FINANCIAL HIGHLIGHTS SELECTED
FINANCIAL CONDITION DATA: March 31, 2007 June 30, 2006 (Unaudited)
Total assets $125,074,778 130,817,349 Loans receivable, net
85,369,049 92,544,573 Mortgage-backed securities 1,517,660
1,684,228 Cash and cash equivalents 12,962,352 11,259,904
Investment securities 20,922,775 21,021,975 Deposits 110,279,517
115,971,229 Stockholders' equity 13,673,461 13,296,084 PER SHARE
DATA: Book value per common share at period end $36.70 $35.68
SELECTED ASSET QUALITY RATIOS: Non-performing loans to loans
receivable, net .98% .35% Non-performing assets to total assets
.67% .25% Allowance for loan losses to non-performing loans 50.61%
127.27% Allowance for loan losses to total loans .49% .45% SELECTED
OPERATIONS DATA (Unaudited): Three Months Ended Nine Months Ended
March 31, March 31, 2007 2006 2007 2006 Total interest income
$1,685,029 1,714,078 5,125,891 5,082,248 Total interest expense
526,848 425,659 1,534,700 1,192,765 Net interest income 1,158,181
1,288,419 3,591,191 3,889,483 Provision for loan losses 0 0 0 0 Net
interest income after provision for loan losses 1,158,181 1,288,419
3,591,191 3,889,483 Non-interest income 203,007 199,283 592,456
666,622 Non-interest expense 1,112,436 1,149,338 3,340,013
3,418,892 Income before income taxes 248,752 338,364 843,634
1,137,213 Income tax expense 84,424 115,044 286,579 386,652 Net
income 164,328 223,320 557,055 750,561 PER SHARE DATA: Earnings per
basic share $.44 .60 1.50 2.01 Earnings per diluted share $.44 .60
1.50 2.01 Dividends declared per common share $.24 .22 .72 .66
SELECTED OPERATING RATIOS: Annualized return on average assets .53%
.68% .59% .75% Annualized return on average equity 4.83% 6.84%
5.50% 7.74% Annualized operating expenses to average total assets
3.56% 3.49% 3.54% 3.40% Interest rate spread during the period
3.54% 3.81% 3.63% 3.81% Net interest margin 3.88% 4.08% 3.96% 4.04%
Average interest-earning assets to average interest-bearing
liabilities 119.26% 119.79% 119.87% 119.56% DATASOURCE: Midland
Capital Holdings Corporation CONTACT: Paul Zogas, President of
Midland Capital Holdings Corporation, +1-708-598-9400 Web site:
http://www.midlandfederal.com/
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