Frederick County Bancorp, Inc. Reports Results for the First Quarter 2013

FREDERICK, Md., April 16, 2013 /PRNewswire/ -- Frederick County Bancorp, Inc. (the "Company") (OTC Bulletin Board: FCBI), the parent company for Frederick County Bank, announced today that, for the quarter ended March 31, 2013, the Company recorded net income of $480 thousand and diluted earnings per share of $0.31, as compared to net income of $370 thousand and diluted earnings per share of $0.24 recorded for the first quarter of 2012.  The increase in earnings was due primarily to a decrease in total noninterest expense in 2013 to $2.2 million from the $2.4 million recorded in the first quarter of 2012, which was primarily related to a decrease in the provision for foreclosed properties from $100 thousand recorded in 2012, while no provision was required in 2013.  In addition, earnings were also impacted by a reduction in the provision for loan losses from $65 thousand in 2012, while no provision was required in 2013, and an increase in total noninterest income to $249 thousand for 2013 as compared to $202 thousand for 2012.  These changes were offset in part, by a decline of $99 thousand in net interest income, as interest income declined by a greater amount than interest expense, as the average rate earned on interest earning assets declined by 53 basis points, while the rates paid on interest bearing liabilities declined by 18 basis points.

The ratio of the allowance for loan losses to total loans stood at 1.55% and 1.54% as of March 31, 2013 and 2012, respectively.  Net loan charge-offs for the quarter ended March 31, 2013 totaled $5 thousand compared to net loan recoveries for the same period last year totaling $5 thousand.   The Company has seen a decrease in its ratio of nonperforming assets to total assets, 2.50% at March 31, 2013 as compared to 2.92% at March 31, 2012, and no change in its ratio of net charge-offs to average loans of 0.00% at both March 31, 2013 and 2012.

The Company also reported that, as of March 31, 2013, assets stood at $320.6 million, with total deposits of $274.2 million and gross loans of $230.7 million, representing increases of 5.2%, 5.9% and 8.1%, respectively, as compared to the first quarter of 2012. 

Frederick County Bank commenced operations in 2001 and has posted positive quarterly earnings continuously since 2002, its second year in operation.  The Bank is headquartered in Frederick, Maryland, and conducts full service commercial banking services through five bank centers, four of which are located in the City of Frederick and one in Walkersville, Maryland. 






March 31,

March 31,


December 31,







2013

2012


2012


(dollars in thousands)



(unaudited)

(unaudited)


(audited)


Total assets




$        320,612

$          304,680


$       314,459


Cash and due from banks



2,342

2,527


2,202


Federal funds sold and other overnight investments

37,958

30,744


30,349


Investment securities - available for sale


32,094

41,619


34,788


Restricted stock




1,444

1,510


1,504


Loans, net




227,095

210,009


225,717


Allowance for loan losses



3,565

3,286


3,571


Bank premises and equipment



6,688

6,915


6,734


Bank owned life insurance



7,851

4,641


7,788


Accrued Interest and other assets

3,092

3,324


3,329


Deposits





274,222

258,969


268,113


Short-term borrowings



2,700

2,700


2,700


Long-term borrowings



10,000

10,000


10,000


Junior subordinated debentures



6,186

6,186


6,186


Accrued interest and other liabilities



937

1,116


1,204


Shareholders' equity




26,567

25,709


26,256












Nonperforming assets:








Nonaccrual loans



3,951

2,027


3,825


Accruing troubled debt restructurings



2,044

3,488


2,096


Foreclosed properties



2,048

3,391


2,048


Total nonperforming assets



8,043

8,906


7,969












SELECTED FINANCIAL DATA















 Three Months Ended








 March 31,









2013

2012

(dollars in thousands, except per share data)




(unaudited)

(unaudited)

SUMMARY OF OPERATING RESULTS:






Interest income







$           3,074

$         3,256

Interest expense







452

535

Net interest income







2,622

2,721

Provision for loan losses






-

65

Net interest income after provision for loan losses




2,622

2,656

Gain on sale of foreclosed properties





28

-

Other noninterest income(1)




221

202

Noninterest expense







2,227

2,350

Income before provision for income taxes





644

508

Provision for income taxes






164

138

Net income







480

370

Total comprehensive income






369

276

(1)     Excluding gain on sale of foreclosed properties




Net charge-offs (recoveries)






5

(5)











PER COMMON SHARE DATA:








Basic earnings per share






$             0.32

$           0.24

Diluted earnings per share






$             0.31

$           0.24

Basic weighted average number of shares outstanding




1,508,574

1,516,445

Diluted weighted average number of shares outstanding




1,542,575

1,516,562

Common shares outstanding






1,508,574

1,516,949

Dividends declared





$             0.05

$          0.05

Book value per share







$           17.61

$        16.95











SELECTED UNAUDITED FINANCIAL RATIOS:






Return on average assets






0.61%

0.50%

Return on average equity






7.20%

5.71%

Allowance for loan losses to total loans





1.55%

1.54%

Nonperforming assets to total assets





2.50%

2.92%

Ratio of net charge-offs to average loans





0.00%

0.00%

Tier 1 capital to risk-weighted assets





12.47%

12.76%

Total capital to risk-weighted assets





13.72%

14.01%

Tier 1 capital to average assets






10.20%

10.48%

Average equity to average assets





8.44%

8.77%











Weighted average yield/rate on:








Loans








5.13%

5.67%

Interest-earning assets






4.28%

4.81%

Interest-bearing liabilities






0.77%

0.95%

Net interest spread







3.51%

3.85%

Net interest margin







3.66%

4.03%

 

The statements in this press release that are not historical facts constitute "forward-looking statements" as defined by Federal securities laws.  Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology.  Such statements, specifically regarding the Company's intentions regarding growth and market expansion, are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, changes in interest rates, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect the Company specifically, its existing and target market areas or the banking industry generally.  Forward-looking statements speak only as of the date they are made.  The Company will not update forward-looking statements to reflect factual assumptions, circumstances or events that have changed after a forward-looking statement was made.  For further information, please refer to the Company's reports filed with the U.S. Securities and Exchange Commission.

SOURCE Frederick County Bancorp, Inc.



RELATED LINKS
http://www.frederickcountybank.com

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