Frederick County Bancorp, Inc. Reports Results for the Third Quarter 2010

Oct 25, 2010, 10:04 ET from Frederick County Bancorp, Inc.

FREDERICK, Md., Oct. 25 /PRNewswire-FirstCall/ -- 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 September 30, 2010, the Company recorded net income of $242,000 and diluted earnings per share of $0.16, as compared to net income of $259,000 and diluted earnings per share of $0.18 recorded for the third quarter of 2009.

The Company reported net income of $888,000 with diluted earnings per share of $0.60 for the nine months ended on September 30, 2010, as compared to net income of $543,000 and diluted earnings per share of $0.37 for the same period in 2009. The increase in earnings was due primarily to net interest income of $7.8 million recorded in the first nine months of 2010 compared to $6.3 million recorded in the same period of 2009, while the provision for loan losses for this period in 2010 totaled $1.0 million compared to $875,000 in 2009.  

Net loan charge-offs for the first nine months of 2010 totaled $609,000, which consists primarily of one loan relationship that was charged-off in the first quarter. This compares to net loan charge-offs for the same period in 2009 totaling the aggregate of $785,000 that consists predominately of three loan relationships.  For the quarter end September 30, 2010 net charge-offs were $21,000 for one loan relationship compared to $103,000 for two loan relationships during the same period in 2009.

The ratio of the allowance for loan losses to total loans stood at 1.61% and 1.52% as of September 30, 2010 and 2009, respectively.  Nonperforming assets stood at $2.73 million and $1.31 million at September 30, 2010 and 2009, respectively, and at $1.44 million at December 31, 2009.  The corresponding nonperforming assets to total assets ratios were 0.92% and 0.49% as of September 30, 2010 and 2009, respectively, and 0.56% as of December 31, 2009.    

The Company also reported that, as of September 30, 2010, assets stood at $297.4 million, with total deposits of $256.4 million and gross loans of $218.6 million, representing increases of 11.5%, 12.6% and 3.5% respectively, compared to the first nine months of 2009.  The Company's asset, deposit and loan totals reflect management's decision to maintain a balance sheet growth strategy, in particular by increasing core deposits while maintaining modest loan growth.

Sept 30,

Sept 30,

December 31,

2010

2009

2009

(dollars in thousands)

(unaudited)

(unaudited)

(audited)

Total assets

$297,427

$266,807

$258,559

Cash and due from banks

1,485

888

1,447

Federal funds sold and other overnight investments

28,300

25,817

10,667

Investment securities - available for sale

42,015

22,752

24,077

Restricted stock

1,521

1,566

1,566

Loans, net

215,074

207,940

211,816

Deposits

256,382

227,786

219,312

Short-term borrowings

300

500

500

Long-term borrowings

10,000

10,000

10,000

Junior subordinated debentures

6,186

6,186

6,186

Shareholders' equity

23,366

21,403

21,750

Nonperforming assets

2,729

1,312

1,438

SELECTED FINANCIAL DATA

Three Months Ended

Nine Months Ended

September 30,

September 30,

2010

2009

2010

2009

(dollars in thousands, except per share data)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

SUMMARY OF OPERATING RESULTS:

Interest income

$3,717

$3,508

$10,866

$10,440

Interest expense

1,047

1,308

3,040

4,153

Net interest income

2,670

2,200

7,826

6,287

Provision for loan losses

410

275

1,010

875

Net interest income after provision for loan losses

2,260

1,925

6,816

5,412

Securities gains

1

-

85

117

Loss on sale of foreclosed properties

-

(5)

-

(37)

Noninterest income (excluding gains (losses))

149

148

433

422

Noninterest expense

2,039

1,688

5,948

5,153

Income before provision for income taxes

371

380

1,386

761

Provision for income taxes

129

121

498

218

Net income

242

259

888

543

Net charge-offs

21

103

609

785

PER COMMON SHARE DATA:

Basic earnings per share

$0.16

$0.18

$0.60

$0.37

Diluted earnings per share

$0.16

$0.18

$0.60

$0.37

Basic weighted average number of shares outstanding

1,473,258

1,460,900

1,469,011

1,460,835

Diluted weighted average number of shares outstanding

1,488,820

1,469,858

1,481,562

1,475,909

Common shares outstanding

1,469,364

1,461,802

1,469,364

1,461,802

Book value per share

$15.90

$14.64

$15.90

$14.64

SELECTED UNAUDITED FINANCIAL RATIOS:

Return on average assets

0.32%

0.39%

0.42%

0.28%

Return on average equity

4.14%

4.86%

5.20%

3.43%

Allowance for loan losses to total loans

1.61%

1.52%

1.61%

1.52%

Nonperforming assets to total assets

0.92%

0.49%

0.92%

0.49%

Ratio of net charge-offs to average loans

0.01%

0.05%

0.28%

0.37%

Tier 1 capital to risk-weighted assets

12.33%

11.88%

12.33%

11.88%

Total capital to risk-weighted assets

13.58%

13.13%

13.58%

13.13%

Tier 1 capital to average assets

9.69%

10.37%

9.69%

10.37%

Average equity to average assets

7.85%

8.12%

8.02%

8.17%

Weighted average yield/rate on:

Loans

6.22%

6.32%

6.27%

6.26%

Interest-earning assets

5.18%

5.51%

5.37%

5.59%

Interest-bearing liabilities

1.78%

2.55%

1.85%

2.76%

Net interest spread

3.39%

2.96%

3.52%

2.84%

Net interest margin

3.75%

3.48%

3.90%

3.40%

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