Frederick County Bancorp, Inc. Reports Results for the Second Quarter 2015

Jul 15, 2015, 11:05 ET from Frederick County Bancorp, Inc.

FREDERICK, Md., July 15, 2015 /PRNewswire/ -- Frederick County Bancorp, Inc. (the "Company") (OTCPink Marketplace: FCBI), the parent company for Frederick County Bank ("FCB"), announced today that, for the quarter ended June 30, 2015, the Company recorded net income of $355 thousand and diluted earnings per share of $0.23, as compared to net income of $377 thousand and diluted earnings per share of $0.25 recorded for the second quarter of 2014.  The Company earned $835 thousand with diluted earnings per share of $0.54 for the six months ended on June 30, 2015, as compared to $902 thousand in earnings and diluted earnings per share of $0.59 for the same period in 2014. 

The slight decrease in quarterly earnings was due primarily to an increase in total noninterest expense to $2.67 million in the second quarter of 2015 as compared to $2.4 million in the second quarter of 2014, which offset increases in both net interest income to $2.9 million in the second quarter of 2015 from $2.8 million in the second quarter of 2014 and in total noninterest income to $248 thousand in the second quarter of 2015 from $189 thousand in the second quarter of 2014. The increase in total noninterest expense was due primarily to increases in salaries and employee benefits of $94 thousand, occupancy and equipment expenses of $70 thousand, and other operating expenses of $83 thousand

The decrease in year-to-date earnings was due primarily to an increase in total noninterest expense to $5.3 million in the first half of 2015 as compared to $4.7 million in the first half of 2014, which offset increases in both net interest income to $5.7 million in the second quarter of 2015 from $5.6 million in the second quarter of 2014 and in total noninterest income to $776 thousand in the second quarter of 2015 from $411 thousand in the second quarter of 2014. The increase in total noninterest expense was due primarily to increases in salaries and employee benefits of $340 thousand, occupancy and equipment expenses of $118 thousand, and other operating expenses of $159 thousand.  The increase in total noninterest income was due primarily to securities gains of $69 thousand and gains on sale of loans of $243 thousand, both recorded in the first quarter of 2015.

The ratio of the allowance for loan losses to total loans stood at 1.16% and 1.32% as of June 30, 2015 and 2014, respectively.  Total nonperforming assets stood at $4.4 million and $5.8 million at June 30, 2015 and 2014, respectively, and at $5.6 million at December 31, 2014.  The corresponding nonperforming assets to total assets ratios were 1.24% and 1.74% as of June 30, 2015 and 2014, respectively, and 1.63% at December 31, 2014. 

The Company also reported that, as of June 30, 2015, assets stood at $356.5 million, with total deposits of $302.9 million and gross loans of $267.8 million, representing increases of 3.9%, 6.3%, and 2.0%, respectively, compared to December 31, 2014. 

Frederick County Bank is headquartered in Frederick, Maryland, and conducts full service commercial banking services through five bank centers located in Frederick County, Maryland.

 



June 30,

June 30,




December 31,


2015

2014




2014

(dollars in thousands)

(unaudited)

(unaudited)




(audited)

Total assets

$356,542

$331,509




$ 343,116

Loans

267,767

256,677




262,525

Deposits

302,923

274,416




284,985

Shareholders' equity

28,426

26,999




27,914








Nonperforming assets:







Nonaccrual loans

$1,863

$3,041




3,684

Accruing troubled debt restructurings

1,113

1,198




1,179

Loans 90 days or more past due and still accruing

-

770




--

Foreclosed properties

1,435

743




729

Total nonperforming assets

$4,411

$5,752




$5,592









For the Three Months Ended


For the Six Months Ended 



March 31,

March 31,


June 30,

June 30,



2015

2014


2015

2014


(dollars in thousands, except for per share data)

(unaudited)

(unaudited)


(unaudited)

(unaudited)


SUMMARY OF OPERATING RESULTS:







Net income

$355

$377


$835

$902


Total comprehensive income

181

526


705

1,268









Charge-offs

$111

$5


$283

$47


(Recoveries)

(25)

(3)


(27)

(5)


Net charge-offs

$  86

$2


$256

$42









PER COMMON SHARE DATA:







Basic earnings per share

$0.24

$0.26


$0.57

$0.61


Diluted earnings per share

$0.23

$0.25


$0.54

$0.59


Basic weighted average number of shares outstanding

1,475,356

1,473,335


1,475,257

1,474,271


Diluted weighted average number of shares outstanding

1,537,678

1,528,023


1,536,198

1,525,551

1,475,154

Common shares outstanding

1,475,379

1,469,754


1,475,379

1,469,754


Dividends declared

$0.07

$0.07


$0.14

$0.14


Book value per share

$19.27

$18.37


$19.27

$18.37

18.92








SELECTED UNAUDITED FINANCIAL RATIOS:







Return on average assets

0.41%

0.46%


0.48%

0.55%


Return on average equity

4.96%

5.56%


5.86%

6.71%


Allowance for loan losses to total loans

1.16%

1.32%


1.16%

1.32%

1.28%

Nonperforming assets to total assets

1.24%

1.74%


1.24%

1.74%

1.63%

Ratio of net charge-offs to average loans

0.03%

--%


0.10%

0.02%


Common Equity Tier 1 to risk-weighted assets

9.77%

9.71%


9.77%

9.71%

9.76%

Tier 1 capital to risk-weighted assets

11.82%

11.85%


11.82%

11.85%

11.85%

Total capital to risk-weighted assets

12.88%

13.06%


12.88%

13.06%

13.02%

Tier 1 capital to average assets

9.97%

10.03%


9.97%

10.03%

10.05%

Average equity to average assets

8.25%

8.19%


8.27%

8.17%


Net interest margin

3.63%

3.61%


3.60%

3.68%


 

 

Frederick County Bancorp, Inc. and Subsidiaries




Consolidated Balance Sheets





June 30,

June 30,

December 31,


2015

2014

2014


(unaudited)

(unaudited)

(unaudited)

(dollars in thousands)




ASSETS 




Cash and due from banks

$    2,394

$    2,234

$    2,402

Federal funds sold

26

21

21

Interest-bearing deposits in other banks

44,335

30,342

37,365

       Cash and cash equivalents

46,755

32,597

39,788

Investment securities available-for-sale at fair value

24,471

25,592

24,190

Restricted stock 

1,629

1,805

1,805

Loans

267,767

256,677

262,525

Less: Allowance for loan losses

(3,106)

(3,381)

(3,362)

       Net loans

264,661

253,296

259,163

Bank premises and equipment

6,303

6,501

6,373

Bank owned life insurance

8,396

8,160

8,280

Foreclosed properties

1,435

743

729

Other assets

2,892

2,815

2,788

       Total assets

$356,542

$331,509

$343,116





LIABILITIES AND SHAREHOLDERS' EQUITY








Liabilities




Deposits




  Noninterest-bearing deposits

$  68,049

$  55,460

$  63,705

  Interest-bearing deposits

234,874

218,956

221,280

       Total deposits

302,923

274,416

284,985

Short-term borrowings

3,300

3,050

3,300

FHLB advances

15,000

20,000

20,000

Junior subordinated debentures

6,186

6,186

6,186

Accrued interest and other liabilities

707

858

731

       Total liabilities

328,116

304,510

315,202





Shareholders' Equity




Common stock, per share par value $0.01; 
   10,000,000 shares authorized; 1,475,379; 1,469,754 and 
   1,475,154 shares issued and  outstanding

15

15

15

Additional paid-in capital

15,172

15,051

15,158

Retained earnings

13,386

12,153

12,758

Accumulated other comprehensive loss

(147)

(220)

(17)

       Total shareholders' equity

28,426

26,999

27,914

       Total liabilities and shareholders' equity

$356,542

$331,509

$343,116

 

 

Frederick County Bancorp, Inc. and Subsidiaries





Consolidated Statements of Income (Unaudited)






For the Three Months Ended

For the Six Months Ended

(dollars in thousands, except per share amounts)

June 30,

2015

June 30,

2014

June 30,

2015

June 30,

 2014

Interest income





  Interest and fees on loans

$3,133

$3,027

$6,155

$6,076

  Interest and dividends on investment securities:





    Interest – taxable

79

90

167

181

    Interest – tax exempt

51

52

101

102

    Dividends

33

18

56

38

  Other interest income

20

19

41

34

    Total interest income

3,316

3,206

6,520

6,431

Interest expense





  Interest on deposits

261

291

520

580

  Interest on short-term borrowings

26

20

50

39

  Interest on FHLB advances

84

83

170

165

  Interest on junior subordinated debentures

30

29

59

58

    Total interest expense

401

423

799

842

Net interest income

2,915

2,783

5,721

5,589

Provision for loan losses

--

--

--

--

Net interest income after provision for loan losses 

2,915

2,783

5,721

5,589

Noninterest income





  Securities gains

--

--

69

--

  Gain on sale of loans

5

--

243

--

  Loss on sale of foreclosed properties

--

(37)

--

(37)

  Bank owned life insurance income

58

60

116

120

  Service fees

89

82

169

163

  Other operating income

96

84

179

165

    Total noninterest income

248

189

776

411

Noninterest expense





  Salaries and employee benefits

1,494

1,400

3,032

2,692

  Occupancy and equipment expenses

446

376

866

748

  Other operating expenses

726

643

1,401

1,242

    Total noninterest expense

2,666

2,419

5,299

4,682

Income before provision for income taxes

497

553

1,198

1,318

Provision for income taxes

142

176

363

416

Net income

$  355

$  377

$  835

$  902

Basic earnings per share

$0.24

$0.26

$0.57

$0.61

Diluted earnings per share

$0.23

$0.25

$0.54

$0.59

Basic weighted average number of shares outstanding

1,475,356

1,473,335

1,475,257

1,474,271

Diluted weighted average number of shares outstanding

1,537,678

1,528,023

1,536,198

1,525,551

Dividends declared per share

$0.07

$0.07

$0.14

$0.14

 

 

Frederick County Bancorp, Inc. and Subsidiaries



Consolidated Statements of Comprehensive Income (Unaudited)




For the Three Months Ended

(dollars in thousands)

June 30,
2015

June 30,
2014

Net income

$355

$377

Changes in net unrealized (losses) gains on securities available for sale, net of 
  income tax benefits of $113 in 2015 and net income taxes of $97 in 2014

(174)

149

    Total comprehensive income

$181

$526

 

Frederick County Bancorp, Inc. and Subsidiaries



Consolidated Statements of Comprehensive Income (Unaudited)




For the Six Months Ended

(dollars in thousands)

June 30,
2015

June 30,
2014

Net income

$835

$   902

Changes in net unrealized (losses) gains on securities available for sale, net of 
  income tax benefits of $57 in 2015 and net income taxes of $238 in 2014

(88)

366

Reclassification adjustment for gains realized, net of income taxes of $27 in 2015
  and $0 in 2014

(42)

--

    Total comprehensive income

$705

$1,268

 

 


Frederick County Bancorp, Inc. and Subsidiaries

Consolidated Statement of Changes in Shareholders' Equity (Unaudited)


(dollars in thousands)

Shares
Outstanding

Common
Stock

Additional
Paid-in
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income
 (Loss)

Total
Shareholders'
Equity








Balance, January 1, 2014

1,484,174

$15

$15,302

$11,456

$(586)

$26,187

Comprehensive income




902

366

1,268

Dividends declared on common stock, $0.14 per share




(205)


(205)

Shares repurchased

(15,000)


(267)



(267)

Shares issued under stock options transactions

580


7



7

Compensation expense from stock option transactions



9



9

Balance, June 30, 2014

1,469,754

$15

$15,051

$12,153

$(220)

$26,999

Balance, January 1, 2015

1,475,154

$15

$15,158

$12,758

$(17)

$27,914

Comprehensive income




835

(130)

705

Dividends declared on common stock, $0.14 per share




(207)


(207)

Shares issued under stock option transactions

225


2



2

Compensation expense from stock option transactions



12



12

Balance, June 30, 2015

1,475,379

$15

$15,172

$13,386

$(147)

$28,426

 

 


Frederick County Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)




For the Six Months Ended


June 30,

2015

June 30,

2014

(dollars in thousands)



Cash flows from operating activities:



   Net income

$      835

$      902

      Adjustments to reconcile net income to net cash provided by

         operating activities:



           Depreciation and amortization

205

169

           Deferred income (benefits) taxes

20

(4)

           Securities gains

(69)

--

           Gain on sale of loans

(243)

--

           Loans originated for sale

(2,574)

--

           Proceeds from loans sold

2,817

--

           Net premium amortization on investment securities

80

90

           Bank owned life insurance income

(116)

(120)

           Loss on sale of foreclosed property

--

37

           Stock-based compensation expense

12

9

           (Increase) decrease in accrued interest and other assets

(39)

215

           (Decrease) increase in accrued interest and other liabilities

(24)

138

             Net cash provided by operating activities

904

1,436

Cash flows from investing activities:



   Purchases of investment securities available for sale

(3,284)

--

   Proceeds from sales of investment securities available for sale

575

--

   Proceeds from maturities, prepayments and calls

      investment securities available for sale

 

2,202

 

1,938

   Redemption (purchase) of restricted stock

176

(136)

   Net increase in loans

(6,204)

(2,806)

   Purchases of bank premises and equipment

(135)

(100)

   Proceeds from sale of foreclosed properties

--

192

            Net cash used in investing activities

(6,670)

(912)

Cash flows from financing activities:



   Net increase in NOW, money market accounts, savings  

     accounts and  noninterest-bearing deposits

 

24,710

9,279

   Net decrease in time deposits

(6,772)

(1,851)

   (Repayment of) proceeds from FHLB advances

(5,000)

5,000

   Proceeds from issuance of common stock

2

7

   Repurchase of common stock

--

(267)

   Dividends paid on common stock

(207)

(205)

            Net cash provided by financing activities

12,733

11,963

Net increase in cash and cash equivalents

6,967

12,487

Cash and cash equivalents – beginning of period

39,788

20,110

Cash and cash equivalents – end of period

$46,755

$      32,597

Supplemental cash flow disclosures:



   Interest paid

$807

$842

   Income taxes paid

$407

$410

   Transfer of loans to foreclosed properties

$706

$--

 

Distribution of Assets, Liabilities and Shareholders' Equity; Interest Rates and Interest Differential

The following tables show average balances of asset and liability categories, interest income and interest expense, and average yields and rates for the periods indicated.   

For the Three Months Ended June 30,

2015

2014

 

 

(dollars in thousands)

Average

daily

balance

Interest

Income/

Expense

Average

Yield/

Rate(%)

Average

daily

balance

Interest

Income/

Expense

Average

Yield/

Rate(%)

Assets







Interest-earning assets:







  Federal funds sold

$         21

$      --

---

$          21

$        --

--

  Interest bearing deposits in other banks

35,758

26

0.29

32,838

19

0.20

  Investment securities (1):







    Taxable

20,791

112

2.16

21,071

108

1.97

    Tax-exempt (2)

6,373

76

4.78

6,552

79

4.62

  Loans (3)

265,627

3,163

4.78

253,285

3,042

4.93

    Total interest-earning assets

328,570

3,377

4.12

313,767

3,248

4.15

Noninterest-earning assets

18,125



17,361



    Total assets

$346,695



$331,128










Liabilities and Shareholders' Equity







Interest-bearing liabilities:







   NOW accounts

$  25,511

10

0.16

$  21,645

8

0.15

   Savings accounts

9,522

1

0.04

8,265

1

0.05

   Money market accounts

105,487

81

0.31

96,282

69

0.29

   Certificates of deposit







      $100,000 or more

40,113

69

0.69

43,753

124

1.14

   Certificates of deposit







      less than $100,000

47,242

100

0.85

51,985

89

0.69

    Federal Funds Purchased




-

-


   Short-term borrowings

3,300

26

3.16

3,050

20

2.63

   FHLB advances

15,000

84

2.25

15,220

83

2.19

   Junior subordinated debentures

6,186

30

1.95

6,186

29

1.88

  Total interest-bearing liabilities

252,361

401

0.64

246,386

423

0.69

Noninterest-bearing deposits

65,018



56,986



Noninterest-bearing liabilities

703



651



   Total liabilities

318,082



304,023



   Total shareholders' equity

28,613



27,105



   Total liabilities and shareholders'    

     equity

$346,695



$331,128



Net interest income


$2,976



$2,825


Net interest spread



3.48%



3.46%

Net interest margin



3.63%



3.61%

(1)

Yields on securities available-for-sale have been calculated on the basis of historical cost and do not give effect to changes in the fair value of those securities, which is reflected as a component of shareholders' equity.

(2)

Presented on a taxable-equivalent basis using the statutory federal income tax rate of 34%.  Taxable-equivalent adjustments of $25 thousand in 2015 and $27 thousand in 2014 are included in the calculation of the tax-exempt investment interest income.

(3)

Presented on a taxable-equivalent basis using the statutory federal income tax rate of 34%.  Taxable-equivalent adjustments of $30 thousand in 2015 and $15 thousand in 2014 are included in the calculation of the loan interest income.  Net loan origination income in interest income totaled $17 in 2015 and $21 thousand in 2014.

 

 

For the Six Months Ended June 30,

2015

2014

 

 

(dollars in thousands)

Average

daily

balance

Interest

Income/

Expense

Average

Yield/

Rate(%)

Average

daily

balance

Interest

Income/

Expense

Average

Yield/

Rate(%)

Assets







Interest-earning assets:







  Federal funds sold

$          20

$       --

--

$         22

$        --

--

  Interest bearing deposits in other banks

35,973

41

0.23

30,330

34

0.23

  Investment securities (1):







    Taxable

20,650

223

2.18

21,458

219

2.06

    Tax-exempt (2)

6,454

153

4.78

6,554

155

4.77

  Loans (3)

263,776

6,216

4.75

253,163

6,126

4.88

    Total interest-earning assets

326,873

6,633

4.09

311,527

6,534

4.23

Noninterest-earning assets

17,735



17,303



    Total assets

$344,608



$328,830










Liabilities and Shareholders' Equity







Interest-bearing liabilities:







   NOW accounts

$  25,120

19

0.15

$  20,862

15

0.14%

   Savings accounts

9,355

1

0.02

8,108

1

0.02

   Money market accounts

102,730

153

0.30

97,291

138

0.29

   Certificates of deposit







      $100,000 or more

40,092

162

0.81

43,663

235

1.09

   Certificates of deposit







      less than $100,000

47,770

185

0.78

52,557

191

0.73

   Short-term borrowings

3,300

50

3.06

3,050

39

2.58

   FHLB advances

17,486

170

1.96

15,110

165

2.20

   Junior subordinated debentures

6,186

59

1.92

6,186

58

1.89

  Total interest-bearing liabilities

252,039

799

0.64

246,827

842

0.69

Noninterest-bearing deposits

63,379



54,500



Noninterest-bearing liabilities

695



622



   Total liabilities

316,113



301,949



   Total shareholders' equity

28,495



26,881



   Total liabilities and shareholders'    

     equity

$344,608



$328,830



Net interest income


$5,834



$5,692


Net interest spread



3.45%



3.54%

Net interest margin



3.60%



3.68%

(1)

Yields on securities available-for-sale have been calculated on the basis of historical cost and do not give effect to changes in the fair value of those securities, which is reflected as a component of shareholders' equity.

(2)

Presented on a taxable-equivalent basis using the statutory federal income tax rate of 34%.  Taxable-equivalent adjustments of $52 thousand in 2015 and $53 thousand in 2014 are included in the calculation of the tax-exempt investment interest income.

(3)

Presented on a taxable-equivalent basis using the statutory federal income tax rate of 34%.  Taxable-equivalent adjustments of $61 thousand in 2015 and $50 thousand in 2014 are included in the calculation of the loan interest income.  Net loan origination income in interest income totaled $17 in 2015 and $38 thousand in 2014.

 

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.

SOURCE Frederick County Bancorp, Inc.



RELATED LINKS

http://www.frederickcountybank.com