Exhibit 99.1 Press Release
NOVEMBER 17, 2000
PRESS RELEASE
From: Massachusetts Fincorp, Inc.
Contact: Paul C. Green, President & CEO
Corporate Office: 70 Quincy Avenue
Quincy, Massachusetts 02169
Telephone: (617) 825-5555
FOR IMMEDIATE RELEASE:
MASSACHUSETTS FINCORP, INC. ANNOUNCES STOCK REPURCHASE PROGRAM
AND STRATEGIC PLAN ENHANCEMENTS
Quincy, MA - November 17, 2000 -- Massachusetts Fincorp, Inc. (OTC
BB: MAFN), the holding company for Massachusetts Co-operative Bank
announced its intention today to repurchase up to 5% of its outstanding
shares, or up to 25,910 shares, in the open market over the next six
months, commencing on or after November 21, 2000. The Company has
previously purchased 4.7% of its stock, under a 5% repurchase plan
announced on August 17. The shares will be purchased at prevailing market
prices from time to time over a six-month period, depending upon market
conditions. The shares being repurchased pursuant to this stock repurchase
plan are in addition to the shares being purchased to fund the Company's
Stock Based Incentive Plan, which was previously announced publicly on July
26, 2000. The Company will repurchase shares from time to time at
management's discretion.
Paul C. Green, President, indicated that the Board of Directors
approved the repurchase program in view of the current price level of the
Company's common stock and the strong capital position of the Company and its
subsidiary, Massachusetts Co-operative Bank. Green stated, "The Company
continues to demonstrate its commitment to enhance shareholder value. We
are successfully implementing a growth strategy, which is leveraging the
proceeds from our public offering, and have now implemented repurchase
programs to repurchase 10% of the Company's stock. A program to acquire 4%
of the Company's shares for the stock-based incentive plan is also in place."
The Company completed its conversion to a publicly owned stock company
on December 21, 1998. On November 15, 2000 the Company's stock price closed
at $14.25 per share. At September 30, 2000, the Company had $111.7 million
in assets and stockholders' equity of $9.7 million.
In a separate action, the Board of Directors approved an enhanced
strategic plan, which increases the Bank's focus in attracting business
customers. The plan includes the Bank's increasing its focus on commercial
and multi-family real estate lending. President Paul C. Green stated, "The
Bank's increased focus on business accounts and on originating commercial and
multi-family loans presents an opportunity to expand the Bank's franchise and
diversify its customer mix." In conjunction with this announcement, the Bank
will increase its allowance for loan loss to a level that is approximately
0.90% of portfolio loans. The increase will be recorded during the fourth
quarter of 2000. The decision to increase the allowance was driven by the
anticipated change in the composition of the loan portfolio. Management is
comfortable with the risk profile of the current loan portfolio and believes
that without this change in focus, no increase would be required.
Although no positive assurance can be given as to the level of
provision for loan loss the Bank will recognize, management expects that the
additional provision for loan losses will be approximately $85,000. At
September 30, 2000, the Bank's loan portfolio before the loan loss provision
totaled $87.5 million.
This release contains certain forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act) which involve risks
and uncertainties. The Company cautions readers that a number of important
factors could cause results to differ materially from the forward-looking
statements. These factors include unforeseen fluctuations in interest rates,
market conditions, inflation, adverse changes in government regulations, and
economic conditions.
Massachusetts Fincorp, Inc. is a publicly traded savings and loan
holding company and the parent corporation of Massachusetts Co-operative
Bank, a Massachusetts stock co-operative bank offering traditional financial
products and services. Massachusetts Co-operative Bank conducts business
through its headquarters located at 70 Quincy Avenue, Quincy, MA, 02169, and
through its branch offices located in Boston and East Milton.
