FREDERICK, Md., Oct. 10, 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 September 30, 2012, the Company recorded net income of $301 thousand and diluted earnings per share of $0.20, as compared to net income of $156 thousand and diluted earnings per share of $0.10 recorded for the third quarter of 2011. The Company earned $1.1 million with diluted earnings per share of $0.74 for the nine months ended on September 30, 2012, as compared to $680 thousand in earnings and diluted earnings per share of $0.45 for the same period in 2011.
The increase in earnings was due primarily to a reduction in the provision for loan losses from $900 thousand in the third quarter of 2011 as compared to the provision for loan losses of $360 thousand in the third quarter 2012. Gains on sale of securities of $236 thousand were realized during this period in 2012, along with no losses on the sale of foreclosed properties and $276 thousand of provisions for foreclosed properties. The increase in earnings was due primarily to a reduction in the provision for loan losses in the nine months of 2012 of $425 thousand compared to the $1.5 million recorded in the first nine months of 2011. Gains on sale of securities of $456 thousand were realized in the first nine months of 2012, along with $82 thousand in losses on the sale of foreclosed properties and $501 thousand of provisions for foreclosed properties.
Net loan charge-offs for the first nine months of 2012 totaled $484 thousand, consisting primarily of two loans charged-off in the third quarter. Net loan charge-offs for the same period in 2011 totaled $2.1 million, consisting predominantly of two loans charged-off in the third quarter.
The ratio of the allowance for loan losses to total loans stood at 1.39% and 1.49% as of September 30, 2012 and 2011, respectively. Nonperforming assets stood at $6.8 million and $4.4 million at September 30, 2012 and 2011, respectively, and at $5.5 million at December 31, 2011. The corresponding nonperforming assets to total assets ratios were 2.17% and 1.51% as of September 30, 2012 and 2011, respectively. The allowance for loan losses was $3.2 million and $3.1 million as of September 30, 2012 and 2011, respectively, and at $3.2 million at December 31, 2011. Even though there has been an increase in the nonperforming assets from $5.5 million at December 31, 2011 to $6.8 million at September 30, 2012, these assets did not require much of a reserve in order for the allowance for loan losses to be considered adequate.
The Company also reported that, as of September 30, 2012, assets stood at $311.5 million, with total deposits of $264.8 million and gross loans of $226.6 million, representing increases of 6.8%, 7.4%, and 6.7%, respectively, compared to December 31, 2011.
Frederick County Bank will observe its eleventh anniversary on October 18, 2012 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 March 31, 2012 and the top Five Star Rating from Bauer Financial, Inc., as of June 30, 2012.
| September 30, | September 30, | December 31, | |||||||
| 2012 | 2011 | 2011 | |||||||
| (dollars in thousands) | (unaudited) | (unaudited) | (audited) | ||||||
| Total assets | $ 311,479 | $ 291,190 | $ 292,012 | ||||||
| Cash and due from banks | 1,750 | 1,720 | 1,680 | ||||||
| Federal funds sold and other overnight investments | 21,736 | 25,887 | 25,168 | ||||||
| Investment securities - available for sale | 43,096 | 38,322 | 36,423 | ||||||
| Restricted stock | 1,504 | 1,508 | 1,510 | ||||||
| Loans, net | 223,434 | 206,564 | 209,099 | ||||||
| Allowance for loan losses | 3,157 | 3,129 | 3,216 | ||||||
| Bank premises and equipment | 6,746 | 5,916 | 6,459 | ||||||
| Bank owned life Insurance | 7,719 | 4,561 | 4,601 | ||||||
| Foreclosed properties | 2,263 | 2,959 | 3,491 | ||||||
| Other assets | 3,231 | 3,753 | 3,581 | ||||||
| Deposits | 264,814 | 246,189 | 246,487 | ||||||
| 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 | 1,380 | 1,108 | 1,182 | ||||||
| Shareholders' equity | 26,399 | 25,007 | 25,457 | ||||||
| Nonperforming assets | 6,771 | 4,392 | 5,515 | ||||||
| SELECTED FINANCIAL DATA | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||
| September 30, | September 30, | ||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||
| (dollars in thousands, except per share data) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||
| SUMMARY OF OPERATING RESULTS: | |||||||||
| Interest income | $ 3,296 | $ 3,463 | $ 9,794 | $ 10,299 | |||||
| Interest expense | 498 | 754 | 1,550 | 2,368 | |||||
| Net interest income | 2,798 | 2,709 | 8,244 | 7,931 | |||||
| Provision for loan losses | 360 | 900 | 425 | 1,515 | |||||
| Net interest income after provision for loan losses | 2,438 | 1,809 | 7,819 | 6,416 | |||||
| Gain on sale of securities | 236 | 383 | 456 | 386 | |||||
| Loss on sale of foreclosed properties | - | (18) | (82) | (18) | |||||
| Other noninterest income | 198 | 162 | 615 | 438 | |||||
| Noninterest expense | 2,489 | 2,183 | 7,241 | 6,358 | |||||
| Income before provision for income taxes | 383 | 153 | 1,567 | 864 | |||||
| Provision for income taxes (benefits) | 82 | (3) | 448 | 184 | |||||
| Net income | 301 | 156 | 1,119 | 680 | |||||
| Total Comprehensive Income | 360 | 461 | 1,120 | 1,511 | |||||
| Net charge-offs (recoveries) | 405 | 1,387 | 484 | 2,105 | |||||
| PER COMMON SHARE DATA: | |||||||||
| Basic earnings per share | $ 0.20 | $ 0.11 | $ 0.74 | $ 0.46 | |||||
| Diluted earnings per share | $ 0.20 | $ 0.10 | $ 0.74 | $ 0.45 | |||||
| Basic weighted average number of shares outstanding | 1,512,309 | 1,482,044 | 1,515,283 | 1,477,708 | |||||
| Diluted weighted average number of shares outstanding | 1,519,781 | 1,519,305 | 1,516,369 | 1,513,849 | |||||
| Common shares outstanding | 1,510,574 | 1,504,494 | 1,510,574 | 1,504,494 | |||||
| Dividends declared per share | $ 0.05 | $ - | $ 0.15 | $ 0.10 | |||||
| Book value per share | $ 17.48 | $ 16.62 | $ 17.48 | $ 16.62 | |||||
| Three Months Ended | Nine Months Ended | ||||||||
| September 30, | September 30, | ||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
| SELECTED UNAUDITED FINANCIAL RATIOS: | |||||||||
| Return on average assets | 0.39% | 0.21% | 0.49% | 0.31% | |||||
| Return on average equity | 4.52% | 2.54% | 5.67% | 3.76% | |||||
| Allowance for loan losses to total loans | 1.39% | 1.49% | 1.39% | 1.49% | |||||
| Nonperforming assets to total assets | 2.17% | 1.51% | 2.17% | 1.51% | |||||
| Ratio of net charge-offs to average loans | 0.18% | 0.66% | 0.22% | 0.72% | |||||
| Tier 1 capital to risk-weighted assets | 12.24% | 12.71% | 12.24% | 12.71% | |||||
| Total capital to risk-weighted assets | 13.46% | 13.96% | 13.46% | 13.96% | |||||
| Tier 1 capital to average assets | 10.24% | 10.17% | 10.24% | 10.17% | |||||
| Average equity to average assets | 8.63% | 8.28% | 8.67% | 8.24% | |||||
| Weighted average yield/rate on: | |||||||||
| Loans | 5.37% | 5.89% | 5.51% | 6.00% | |||||
| Interest-earning assets | 4.60% | 5.03% | 4.67% | 5.04% | |||||
| Interest-bearing liabilities | 0.86% | 1.30% | 0.91% | 1.40% | |||||
| Net interest spread | 3.74% | 3.73% | 3.76% | 3.64% | |||||
| Net interest margin | 3.92% | 3.97% | 3.95% | 3.92% |
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.