FRATERNITY COMMUNITY BANCORP INC Fraternity Community Bancorp, Inc. (OTCBB:FRTR), the holding company for Fraternity Federal Savings and Loan Association, today announced that it realized a net loss of $453,800 for the six months ended June 30, 2015, compared to net income of $62,100 for the six months ended June 30, 2014. The net loss is primarily attributable to an increase in our provision for loan losses. We had a provision for loan losses of $932,500 for the six months ended June 30, 2015 as compared to a recovery of loan losses of $94,400 for the six months ended June 30, 2014. The reason for the large provision this period is due primarily to the write-down of one loan relationship, covering seven loans, secured by 39 non-owner occupied one- to- four family residential properties in Baltimore City. Net interest income decreased $137,700, from $2,244,700 for the six months ended June 30, 2014, to $2,107,000 for the six months ended June 30, 2015. Non-interest expense decreased $363,000, from $2,464,400 for the six months ended June 30, 2014, to $2,101,400 for the six months ended June 30, 2015.
At June 30, 2015, total assets decreased by $1.0 million to $162.4 million at June 30, 2015 from $163.4 million at December 31, 2014. Loans receivable, net decreased $1.2 million, from $117.7 million at December 31, 2014 to $116.5 million at June 30, 2015. Cash and cash equivalents increased $1.5 million, from $12.6 million as of December 31, 2014, to $14.1 million as of June 30, 2015. Investment securities decreased $1.7 million, from $23.2 million as of December 31, 2014 to $21.5 million as of June 30, 2015.
Non-accrual loans totaled $1.5 million at June 30, 2015 compared to $2.1 million at December 31, 2014. As of June 30, 2015, non-accrual loans included twelve loans secured by owner occupied one- to- four family residential properties totaling $128,400, thirteen loans secured by non-owner occupied one- to- four family residential properties totaling $1.2 million and three home equity lines of credit totaling $111,400. As of December 31, 2014, non-accrual loans included fourteen loans secured by owner occupied one- to- four family residential properties totaling $187,200, twelve loans secured by non-owner occupied one- to- four family residential properties totaling $1.8 million and two home equity lines of credit totaling $95,300.
Other real estate owned totaled $57,200 as of June 30, 2015 as compared to $0 as of December 31, 2014.
The Company’s consolidated equity, all of which is tangible, was $27.2 million at June 30, 2015 compared to $27.6 million at December 31, 2014. The decrease was primarily due to a net loss of $453,800 and an increase of $76,900 in accumulated other comprehensive loss, which was attributable to an increase in long term rates that affect our available for sale investment portfolio. As of December 31, 2014, we had an accumulated loss of $64,400, compared to $141,300 as of June 30, 2015. The Bank remains well capitalized with a Tier 1 Leverage ratio, Tier 1 Risk-Based Capital ratio and Total Risk-Based Capital ratio of 14.31%, 25.66% and 26.92%, respectively, as compared to 14.57%, 26.35% and 27.61%, respectively for the same measures as of December 31, 2014.
Fraternity Community Bancorp, Inc. is the holding company for Fraternity Federal Savings and Loan Association, founded in 1913. The Bank is a community-oriented financial institution, dedicated to serving the financial service needs of customers and businesses within its market area, which consists of Baltimore City and Baltimore and Howard Counties in Maryland.
Fraternity Community Bancorp, Inc. Consolidated Statements of Financial Condition (unaudited) | ||||||||||
| June 30, 2015 | December 31, 2014 | |||||||||
| (in thousands) | (in thousands) | |||||||||
| ASSETS | ||||||||||
| Cash and due from banks | $ | 1,066 | $ | 981 | ||||||
| Interest-bearing deposits in other banks | 13,032 | 11,665 | ||||||||
| Investment securities | 21,511 | 23,220 | ||||||||
| Loans, net | 116,477 | 117,707 | ||||||||
| Other real estate owned | 57 | 0 | ||||||||
| Other assets | 10,248 | 9,836 | ||||||||
| Total Assets | $ | 162,391 | $ | 163,409 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Deposits | $ | 112,630 | $ | 114,182 | ||||||
| Advances from the Federal Home Loan Bank | 20,000 | 20,000 | ||||||||
| Advances by borrowers for taxes and insurance | 1,522 | 643 | ||||||||
| Other liabilities | 991 | 952 | ||||||||
| Total Liabilities | 135,143 | 135,777 | ||||||||
| Stockholders' Equity | 27,248 | 27,632 | ||||||||
| Total Liabilities & Stockholders' Equity | $ | 162,391 | $ | 163,409 | ||||||
| Fraternity Community Bancorp, Inc. | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| (unaudited) | ||||||||||||
| For the Six | For the Six | |||||||||||
| Months Ended | Months Ended | |||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||
| (in thousands) | (in thousands) | |||||||||||
| Interest Income | ||||||||||||
| Loans | $ | 2,652 | $ | 2,743 | ||||||||
| Investment Securities | 305 | 364 | ||||||||||
| Other | 25 | 20 | ||||||||||
| Total Interest Income | 2,982 | 3,127 | ||||||||||
| Interest Expense | ||||||||||||
| Deposits | 569 | 576 | ||||||||||
| Borrowings | 306 | 306 | ||||||||||
| Total Interest Expense | 875 | 882 | ||||||||||
| Net Interest Income | 2,107 | 2,245 | ||||||||||
| Provision (Recovery) for Loan Losses | 933 | (94 | ) | |||||||||
| Net Interest Income after Benefit for Loan Losses | 1,174 | 2,339 | ||||||||||
| Noninterest Income | 109 | 164 | ||||||||||
| Noninterest Expense | 2,101 | 2,464 | ||||||||||
| Net Income (Loss) Before Income Tax Provision (Benefit) | (818 | ) | 39 | |||||||||
| Income Tax Provision (Benefit) | (364 | ) | (23 | ) | ||||||||
| Net (Loss) Income | $ | (454 | ) | $ | 62 | |||||||
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