Frederick County Bancorp, Inc. Reports Results for the Second Quarter 2012

FREDERICK, Md., July 6, 2012 /PRNewswire/ -- Frederick County Bancorp, Inc. (the "Company") (OTC Bulletin Board: FCBI), the parent company for Frederick County Bank ("FCB"), announced today that, for the quarter ended June 30, 2012, the Company recorded net income of $448 thousand and diluted earnings per share of $0.30, as compared to net income of $188 thousand and diluted earnings per share of $0.12 recorded for the second quarter of 2011.  The Company earned $818 thousand with diluted earnings per share of $0.54 for the six months ended on June 30, 2012, as compared to $524 thousand in earnings and diluted earnings per share of $0.35 for the same period in 2011. 

The increase in earnings was due primarily to a reduction in the provision for loan losses from $500 thousand in the second quarter of 2011 as compared to no provision for loan losses in the second quarter 2012.  Gains on sale of securities of $220 thousand were realized during this period in 2012, along with $82 thousand in losses on the sale of foreclosed properties and $125 thousand of provisions for foreclosed properties. The increase in earnings was due primarily to a reduction in the provision for loan losses in the first half of 2012 of only $65 thousand compared to the $615 thousand recorded in the first half of 2011.  Gains on sale of securities of $220 thousand were realized in the first six months of 2012, along with $82 thousand in losses on the sale of foreclosed properties and $225 thousand of provisions for foreclosed properties.

Net loan charge-offs for the first half of 2012 totaled $79 thousand, consisting primarily of four loans charged-off in the second quarter.  Net loan charge-offs for the same period last year totaled $718 thousand, consisting predominantly of two loans charged-off in the second quarter.  

The ratio of the allowance for loan losses to total loans stood at 1.44% and 1.69% as of June 30, 2012 and 2011, respectively.  Nonperforming assets stood at $6.1 million and $6.1 million at June 30, 2012 and 2011, respectively, and at $5.5 million at December 31, 2011.  The corresponding nonperforming assets to total assets ratios were 1.95% and 1.99% as of June 30, 2012 and 2011, respectively. 

The Company also reported that, as of June 30, 2012, assets stood at $312.2 million, with total deposits of $265.8 million and gross loans of $221.7 million, representing increases of 6.9%, 7.8%, and 4.4%, respectively, compared to December 31, 2011. 

Frederick County Bank celebrated its ten year anniversary on October 18, 2011 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 offices, four of which are in the City of Frederick and one office located in Walkersville, Maryland.  Frederick County Bank maintains a solid Four Star Rating from Bankrate.com as of December 31, 2011 and the top Five Star Rating from Bauer Financial, Inc., as of March 31, 2012.

 






June 30,

June 30,


December 31,







2012

2011


2011


(dollars in thousands)



(unaudited)

(unaudited)


(audited)


Total assets




$        312,243

$         307,420


$       292,012


Cash and due from banks



2,158

1,748


1,680


Federal funds sold and other overnight investments

28,748

32,229


25,168


Investment securities - available for sale


43,870

45,079


36,423


Restricted stock




1,505

1,513


1,510


Loans, net




218,527

209,843


209,099


Allowance for loan losses



3,202

3,615


3,216


Bank premises and equipment



6,797

5,903


6,459


Bank owned life Insurance



4,680

4,520


4,601


Foreclosed properties



2,539

2,676


3,491


Other assets




3,419

3,909


3,581


Deposits





265,777

263,275


246,487


Short-term borrowings



2,700

2,650


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


1,402

1,048


1,182


Shareholders' equity




26,178

24,261


25,457












Nonperforming assets



6,096

6,125


5,515












SELECTED FINANCIAL DATA













 Three Months Ended


Six Months Ended






 June 30,


June 30,






2012

2011


2012

2011

(dollars in thousands, except per share data)


(unaudited)

(unaudited)


(unaudited)

(unaudited)

SUMMARY OF OPERATING RESULTS:







Interest income




$            3,242

$             3,428


$           6,498

$        6,836

Interest expense




517

807


1,052

1,614

Net interest income




2,725

2,621


5,446

5,222

Provision for loan losses



-

500


65

615

Net interest income after provision for loan losses

2,725

2,121


5,381

4,607

Gain on sale of securities



220

-


220

3

Loss on sale of foreclosed properties


(82)

-


(82)

-

Other noninterest income

215

149


417

276

Noninterest expense




2,402

2,070


4,752

4,175

Income before provision for income taxes


676

200


1,184

711

Provision for income taxes



228

12


366

187

Net income




448

188


818

524











Total Comprehensive Income



484

681


760

1,050











Net charge-offs



84

727


79

718











PER COMMON SHARE DATA:








Basic earnings per share



$              0.30

$               0.13


$             0.54

$          0.36

Diluted earnings per share



$              0.30

$               0.12


$             0.54

$          0.35

Basic weighted average number of shares outstanding

1,517,127

1,477,477


1,516,786

1,475,504

Diluted weighted average number of shares outstanding

1,517,261

1,523,328


1,516,912

1,511,656

Common shares outstanding



1,517,224

1,478,354


1,517,224

1,478,354

Dividends declared per share



$              0.05

$               0.10


$             0.10

$          0.10

Book value per share




$            17.25

$             16.41


$           17.25

$        16.41











SELECTED UNAUDITED FINANCIAL RATIOS:






Return on average assets



0.59%

0.26%


0.54%

0.36%

Return on average equity



6.81%

3.12%


6.26%

4.40%

Allowance for loan losses to total loans


1.44%

1.69%


1.44%

1.69%

Nonperforming assets to total assets


1.95%

1.99%


1.95%

1.99%

Ratio of net charge-offs to average loans


0.04%

0.35%


0.04%

0.35%

Tier 1 capital to risk-weighted assets


12.33%

12.29%


12.33%

12.29%

Total capital to risk-weighted assets


13.58%

13.54%


13.58%

13.54%

Tier 1 capital to average assets



10.11%

10.14%


10.11%

10.14%

Average equity to average assets


8.60%

8.20%


8.68%

8.22%











Weighted average yield/rate on:








Loans





5.50%

5.92%


5.59%

6.05%

Interest-earning assets



4.61%

5.03%


4.70%

5.05%

Interest-bearing liabilities



0.90%

1.43%


0.93%

1.45%

Net interest spread




3.70%

3.60%


3.78%

3.60%

Net interest margin




3.89%

3.89%


3.96%

3.89%

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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