DURHAM, N.C.– M&F Bancorp, Inc. (“Company”) (OTC Pink: MFBP), the parent company of M&F Bank (“Bank”), announced unaudited financial results for the second quarter of 2020 today.
James H. Sills III, President, and CEO of the Company commented, “During the second quarter of 2020, we experienced significant changes in the national and regional economies, including government and business responses to the COVID-19 pandemic. The Health and safety of our associates and customers have been a top priority. Most of the administrative associates have been working remotely since the last week of March 2020. We have not identified any issues in operating efficiencies due to these emergency arrangements. Since the beginning of the pandemic, we have taken a conservative approach related to our loan portfolio in terms of increasing our allowance for loan losses (“ALLL”) percentage from 1.08% to 1.45%. The Company added $605,000 to the ALLL for the quarter as a precautionary measure against potential deterioration of asset quality in certain loan segments. Overall, 43% of our loan portfolio were provided payment modifications for 90 to 120 days, which was consistent with the guidelines of the CARES Act. As of July 31, 2020, the overwhelming majority of these loans have returned to normal payment structures. Additionally, we participated in the Paycheck Protection Plan, which enabled us to provide funding to 141 businesses totaling $13.1 million impacting 1,300 jobs. Finally, we are monitoring the COVID-19 situation and impacts on our associates and customers very closely.”