BRIDGEVIEW, Ill., July 28 /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 June 30, 2006 totaled $261,000, or $0.70 per
diluted share, compared to net income of $479,000, or $1.28 per
diluted share, for the quarter ended June 30, 2005. Net income for
the fiscal year ended June 30, 2006 totaled $1.0 million, or $2.71
per diluted share, compared to net income totaling $1.2 million, or
$3.23 per diluted share for the fiscal year ended June 30, 2005.
The Company also announced a 9% increase in its quarterly cash
dividend to $0.24 per share for the quarter ended June 30, 2006,
from $0.22 per share. The dividend will be paid on August 17, 2006
to shareholders of record as of August 7, 2006. Net income in both
periods was increased by gains on the sale of Midland Federal's
investment in Intrieve, Incorporated ("Intrieve"), Midland
Federal's data processing provider. Net income in the current
quarter included a $12,000 gain, net of income taxes, from the
Intrieve sale compared with a $217,000 gain, net of income taxes,
realized in the prior year quarter from the Intrieve sale. Net
income in the current fiscal year included a $23,000 gain, net of
income taxes, on the Intrieve sale, compared with the $217,000
gain, net of income taxes, realized in the prior fiscal year.
Annualized return on average assets and annualized return on
average equity during the quarter ended June 30, 2006 were .79% and
7.89%, respectively compared to 1.36% and 15.19%, respectively, for
the comparable prior year quarter. For the fiscal year ended June
30, 2006, annualized return on average assets was .76% and
annualized return on average equity was 7.78%, compared to .83% and
9.89%, respectively, for the fiscal year ended June 30, 2005. Net
interest income decreased $37,000 to $1.28 million in the quarter
ended June 30, 2006 compared to the prior year quarter. The
decrease in net interest income was the result of a decrease in the
average balance of interest earning assets offset by an increase in
interest rate spread. The average balance of interest earning
assets decreased to $124.4 million for the quarter ended June 30,
2006 compared to $134.7 million for the prior year quarter while
interest rate spread increased to 3.79% for the quarter ended June
30, 2006 compared to 3.71% in the prior year quarter. For the
fiscal year ended June 30, 2006 net interest income increased
$35,000 to $5.17 million. The increase in net interest income in
the current fiscal year was primarily the result of an increase in
interest rate spread to 3.80% compared to 3.55% in the prior fiscal
year. Non-interest income decreased $301,000 to $233,000 in the
quarter ended June 30, 2006 from $534,000 in the quarter ended June
30, 2005. Non-interest income in both periods included gains
realized on the sale of Midland Federal's investment in Intrieve,
discussed above. Non-interest income in the current quarter
included an $18,000 gain from the Intrieve sale compared with a
$329,000 gain realized from the Intrieve sale in the prior year
quarter. Non-interest income in the current quarter was increased
by a $22,000 increase in profit on the sale of loans which offset a
$10,000 decrease in loan fees and service charges and a $4,000
decrease in commission income. For the fiscal year ended June 30,
2006 non-interest income decreased $245,000 to $899,000 compared to
the prior year. Non-interest income in both periods included gains
realized on the sale of Midland Federal's investment in Intrieve,
discussed above. Non-interest income in the current year included a
$35,000 gain from the Intrieve sale compared with a $329,000 gain
realized from the Intrieve sale in the prior year. Non-interest
income in the current fiscal year was increased by a $39,000
increase in profit on the sale of loans, an $11,000 increase in
loan fees and service charges and a $14,000 increase in deposit
related fees offset by a $5,000 decrease in commission income.
Non-interest expense increased $3,000 to $1.12 million in the
quarter ended June 30, 2006 compared to the prior year quarter. The
increase in non- interest expense is primarily the result of a
$14,000 increase in staffing costs and a $10,000 increase in office
occupancy expense offset by an $18,000 decrease in computer
software and support expense. The increase in staffing costs was
primarily attributed to a $13,000 increase in employee medical and
pension benefits. For the fiscal year ended June 30, 2006
non-interest expense increased $90,000 to $4.54 million compared to
the prior year. The primary factors for the increase in
non-interest expense in the current fiscal year were a $35,000
increase in staffing costs, a $33,000 increase in computer software
and support expense, a $19,000 increase in office occupancy expense
and a $5,000 increase in professional fees offset by a $6,000
decrease in data processing fees. The increase in staffing costs is
primarily attributed to a $21,000 increase in costs for employee
medical and pension benefits. The increase in computer software and
support expense was primarily attributed to the installation of new
computer servers. Non-performing assets were .25% of total assets
at June 30, 2006 and consisted of $327,000 in non-performing loans.
The allowance for loan losses decreased by $41,000 to $416,000, or
.45% of total loans, at June 30, 2006 as a result of net loan
charge offs. The Company made no loan loss provisions during the
fiscal year ended June 30, 2006. At June 30, 2006 the Company's
ratio of allowance for loan losses to non-performing loans was
127.27% compared to 120.06% at June 30, 2005. At June 30, 2006 the
Company's assets totaled $130.8 million, compared to total assets
of $139.0 million at June 30, 2005. Net loans receivable decreased
$2.3 million to $92.5 million at June 30, 2006. Total deposits
decreased $8.8 million to $116.0 million at June 30, 2006 from
$124.8 million at June 30, 2005. The decrease in savings deposits
is primarily attributed to increased competition for deposit
liabilities in a rising interest rate environment. Stockholders'
equity in the Company totaled $13.3 million at June 30, 2006
resulting in a book value per common share of $35.68 based upon
372,600 shares outstanding. At June 30, 2006 Midland Federal's
capital ratios exceeded all of its regulatory capital requirements
with both tangible and core capital ratios of 8.52% and a
risk-based capital ratio of 19.58%. 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
Unaudited SELECTED FINANCIAL CONDITION DATA: June 30, 2006 June 30,
2005 Total assets $130,817,349 138,978,770 Loans receivable, net
92,544,573 94,829,310 Mortgage-backed securities 1,684,228
1,920,221 Cash and cash equivalents 11,259,904 36,709,593
Investment securities 21,021,975 1,310,937 Deposits 115,971,229
124,836,132 Stockholders' equity 13,296,084 12,696,682 PER SHARE
DATA: Book value per common share at period end $35.68 34.08
SELECTED ASSET QUALITY RATIOS: Non-performing loans to loans
receivable, net .35% .40% Non-performing assets to total assets
.25% .27% Allowance for loan losses to non-performing loans 127.27%
120.06% Allowance for loan losses to total loans .45% .48% SELECTED
OPERATIONS DATA: Three Months Ended Twelve Months Ended June 30,
June 30, 2006 2005 2006 2005 Total interest income $1,738,509
1,672,650 6,820,757 6,505,721 Total interest expense 457,844
355,340 1,650,610 1,370,963 Net interest income 1,280,665 1,317,310
5,170,147 5,134,758 Provision for loan losses 0 0 0 0 Net interest
income after provision for loan losses 1,280,665 1,317,310
5,170,147 5,134,758 Non-interest income 232,686 533,573 899,309
1,144,097 Non-interest expense 1,123,546 1,120,910 4,542,438
4,452,192 Income before income taxes 389,805 729,973 1,527,018
1,826,663 Income tax expense 129,070 251,213 515,722 624,114 Net
income 260,735 478,760 1,011,296 1,202,549 PER SHARE DATA: Earnings
per basic share $.70 1.28 2.71 3.23 Earnings per diluted share $.70
1.28 2.71 3.23 Dividends declared per common share $.22 .20 .88 .80
SELECTED OPERATING RATIOS: Annualized return on average assets .79%
1.36% .76% .83% Annualized return on average equity 7.89% 15.19%
7.78% 9.89% Annualized operating expenses to average total assets
3.42% 3.19% 3.41% 3.07% Interest rate spread during the period
3.79% 3.71% 3.80% 3.55% Net interest margin 4.09% 3.91% 4.06% 3.71%
Average interest-earning assets to average interest-bearing
liabilities 120.03% 119.17% 119.67% 116.91% 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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