2014

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

FREDERICK, Md., July 17, 2013 /PRNewswire/ -- Frederick County Bancorp, Inc. (the "Company") (OTCQB Marketplace: FCBI), the parent company for Frederick County Bank ("FCB"), announced today that, for the quarter ended June 30, 2013, the Company recorded net income of $490 thousand and diluted earnings per share of $0.32, as compared to net income of $448 thousand and diluted earnings per share of $0.30 recorded for the second quarter of 2012.  The Company earned $970 thousand with diluted earnings per share of $0.63 for the six months ended on June 30, 2013, as compared to $818 thousand in earnings and diluted earnings per share of $0.54 for the same period in 2012. 

The increase in quarterly earnings was due primarily to a reduction in total noninterest expense from $2.4 million in the second quarter of 2012 as compared to $2.2 million the second quarter 2013, along with a loss of $82 thousand on the sale of foreclosed property that occurred in 2012, whereas no losses on the sale of foreclosed property were recorded in 2013, and this total was partially offset by the gain on sale of securities in the amount of $220 thousand realized in 2012, whereas no securities gains were recognized in 2013.

The increase in year-to-date earnings was due primarily to a reduction in total noninterest expense from $4.8 million in the first half of 2012 as compared to $4.4 million in the first half of 2013,  along with a loss of $82 thousand on the sale of foreclosed property that occurred in 2012, whereas there was a $28 thousand gain on the sale of foreclosed property recorded in 2013, and this total was partially offset by the gain on sale of securities in the amount of $220 thousand realized in 2012, whereas no securities gains were recognized in 2013.

Net loan recoveries for the first half of 2013 totaled $127 thousand, consisting of recoveries from four loans.  Net loan charge-offs for the same period in 2012 totaled $79 thousand, consisting predominantly of four loans.  

The ratio of the allowance for loan losses to total loans stood at 1.57% and 1.44% as of June 30, 2013 and 2012, respectively.  Nonperforming assets stood at $8.4 million and $8.2 million at June 30, 2013 and 2012, respectively, and at $8.0 million at December 31, 2012.  The corresponding nonperforming assets to total assets ratios were 2.59% and 2.61% as of June 30, 2013 and 2012, respectively. 

The Company also reported that, as of June 30, 2013, assets stood at $324.6 million, with total deposits of $278.4 million and gross loans of $235.7 million, representing increases of 3.2%, 3.9%, and 2.8%, respectively, compared to December 31, 2012. 

Frederick County 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.
















June 30,

June 30,


December 31,







2013

2012


2012


(dollars in thousands)



(unaudited)

(unaudited)


(audited)


Total assets




$         324,635

$          312,243


$       314,459


Cash and due from banks



2,222

2,158


2,202


Federal funds sold and other overnight investments

33,910

28,748


30,349


Investment securities - available for sale


35,673

43,870


34,788


Restricted stock




1,444

1,505


1,504


Loans, net




232,042

218,527


225,717


Allowance for loan losses



3,697

3,202


3,571


Bank premises and equipment



6,610

6,797


6,734


Bank owned life Insurance



7,914

4,680


7,788


Accrued interest and other assets


2,772

3,419


3,329


Deposits





278,448

265,777


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


861

1,402


1,204


Shareholders' equity




26,420

26,178


26,256












Nonperforming assets:








Nonaccrual loans




3,912

3,557


3,825


Accruing troubled debt restructurings


2,437

2,057


2,096


Foreclosed properties



2,048

2,539


2,048


Total nonperforming assets



8,397

8,153


7,969












SELECTED FINANCIAL DATA













 Three Months Ended


 Six Months Ended






 June 30,


 June 30,






2013

2012


2013

2012

(dollars in thousands, except per share data)


(unaudited)

(unaudited)


(unaudited)

(unaudited)

SUMMARY OF OPERATING RESULTS:







Interest income




$            3,100

$              3,242


$           6,174

$        6,498

Interest expense




435

517


887

1,052

Net interest income




2,665

2,725


5,287

5,446

Provision for loan losses



-

-


-

65

Net interest income after provision for loan losses

2,665

2,725


5,287

5,381

Gain on sale of securities



-

220


-

220

(Loss) gain on sale of foreclosed properties


-

(82)


28

(82)

Other noninterest income (1)



230

215


451

417

Noninterest expense




2,180

2,402


4,407

4,752

Income before provision for income taxes


715

676


1,359

1,184

Provision for income taxes



225

228


389

366

Net income




490

448


970

818

Total comprehensive (loss) income


(64)

484


305

760

     (1) Excluding gain on sale of securities







           and (loss) gain on sale of foreclosed properties







Net (recoveries) charge-offs



(132)

84


(127)

79











PER COMMON SHARE DATA:








Basic earnings per share



$              0.32

$                0.30


$             0.64

$          0.54

Diluted earnings per share



$              0.32

$                0.30


$             0.63

$          0.54

Basic weighted average number of shares outstanding

1,508,574

1,517,127


1,508,574

1,516,786

Diluted weighted average number of shares outstanding

1,546,150

1,517,261


1,544,292

1,516,912

Common shares outstanding



1,508,574

1,517,224


1,508,574

1,517,224

Dividends declared




$              0.06

$                0.05


$             0.11

$          0.10

Book value per share




$            17.51

$              17.25


$           17.51

$        17.25











SELECTED UNAUDITED FINANCIAL RATIOS:






Return on average assets



0.62%

0.59%


0.61%

0.54%

Return on average equity



7.27%

6.81%


7.24%

6.26%

Allowance for loan losses to total loans


1.57%

1.44%


1.57%

1.44%

Nonperforming assets to total assets


2.59%

2.61%


2.59%

2.61%

Ratio of net charge-offs to average loans


-0.06%

0.04%


-0.05%

0.04%

Tier 1 capital to risk-weighted assets


12.28%

12.33%


12.28%

12.33%

Total capital to risk-weighted assets


13.53%

13.58%


13.53%

13.58%

Tier 1 capital to average assets



10.24%

10.11%


10.24%

10.11%

Average equity to average assets


8.46%

8.60%


8.45%

8.68%











Weighted average yield/rate on:








Loans





5.06%

5.50%


5.09%

5.59%

Interest-earning assets



4.22%

4.61%


4.25%

4.70%

Interest-bearing liabilities



0.73%

0.90%


0.75%

0.93%

Net interest spread




3.49%

3.70%


3.50%

3.78%

Net interest margin




3.64%

3.89%


3.65%

3.96%










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.



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http://www.frederickcountybank.com

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