FREDERICK COUNTY BANCORP, INC. FREDERICK, Md., July 15, 2014 /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, 2014, the Company recorded net income of $377 thousand and diluted earnings per share of $0.25, as compared to net income of $490 thousand and diluted earnings per share of $0.32 recorded for the second quarter of 2013. The Company earned $902 thousand with diluted earnings per share of $0.59 for the six months ended on June 30, 2014, as compared to $970 thousand in earnings and diluted earnings per share of $0.63 for the same period in 2013.
The decrease in quarterly earnings was due primarily to an increase in total noninterest expense to $2.4 million in the second quarter of 2014 as compared to $2.2 million in the second quarter of 2013, along with a loss of $37 thousand on the sale of foreclosed property that occurred in 2014, whereas no losses on the sale of foreclosed property were recorded in 2013. The increase in noninterest expenses was due primarily to increases in FDIC insurance costs and consulting expenses of $78 thousand and $33 thousand, respectively.
The decrease in year-to-date earnings was due primarily to an increase in total noninterest expense to $4.7 million in the first half of 2014 as compared to $4.4 million in the first half of 2013, which offset the increase in net interest income to $5.6 million in the first six months of 2014 from $5.3 million for the same period in 2013. The loss of $37 thousand on the sale of foreclosed property that occurred in 2014, as compared to a $28 thousand gain on the sale of foreclosed property recorded in 2013, also contributed to the decline in earnings year-to-date. The increase in noninterest expenses was due primarily to increases in FDIC insurance costs and consulting expenses of $75 thousand and $52 thousand, respectively.
The ratio of the allowance for loan losses to total loans stood at 1.32% and 1.57% as of June 30, 2014 and 2013, respectively. Nonperforming assets stood at $5.8 million and $8.4 million at June 30, 2014 and 2013, respectively, and at $5.3 million at December 31, 2013. The corresponding nonperforming assets to total assets ratios were 1.74% and 2.59% as of June 30, 2013 and 2012, respectively, and 1.67% at December 31, 2013.
The Company also reported that, as of June 30, 2014, assets stood at $331.5 million, with total deposits of $274.4 million and gross loans of $256.7 million, representing increases of 4.2%, 2.8%, and 1.1%, respectively, compared to December 31, 2013.
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,
2014 2013 2013
---- ---- ----
(dollars in thousands) (unaudited) (unaudited) (audited)
Total assets $331,509 $324,635 $318,131
Loans 256,677 235,739 253,913
Deposits 274,416 278,448 266,988
Shareholders' equity 26,999 26,420 26,187
Nonperforming assets:
Nonaccrual loans $3,041 $3,912 $3,379
Accruing troubled debt restructurings 1,198 2,437 976
Loans 90 days or more past due and still accruing 770 -- --
Foreclosed properties 743 2,048 972
--- ----- ---
Total nonperforming assets $5,752 $8,397 $5,327
====== ====== ======
For the Three Months Ended For the Six Months Ended
-------------------------- ------------------------
June 30, June 30, June 30, June 30,
2014 2013 2014 2013
---- ---- ---- ----
(dollars in thousands, except for per share data) (unaudited) (unaudited) (unaudited) (unaudited)
SUMMARY OF OPERATING
RESULTS:
Net income $377 $490 $902 $970
Total comprehensive income (loss) $526 $(64) $1,268 $305
Charge-offs $5 $5 $47 $53
(Recoveries) (3) (137) (5) (180)
--- ---- --- ----
Net charge-offs $2 $(132) $42 $(127)
=== ===== === =====
PER COMMON SHARE DATA:
Basic earnings per share $0.26 $0.32 $0.61 $0.64
Diluted earnings per share $0.25 $0.32 $0.59 $0.63
Basic weighted average number of shares 1,473,335 1,508,574 1,474,271 1,508,574
outstanding
Diluted weighted average number of shares outstanding 1,528,023 1,546,150 1,525,551 1,544,292
Common shares outstanding 1,469,754 1,508,574 1,469,754 1,508,574 1,484,174
Dividends declared $0.07 $0.06 $0.14 $0.11
Book value per share $18.37 $17.51 $18.37 $17.51 $17.64
SELECTED UNAUDITED FINANCIAL
RATIOS:
Return on average assets 0.46% 0.62% 0.55% 0.61%
Return on average equity 5.56% 7.27% 6.71% 7.24%
Allowance for loan losses to total loans 1.32% 1.57% 1.32% 1.57% 1.35%
Nonperforming assets to total assets 1.74% 2.59% 1.74% 2.59% 1.67%
Ratio of net charge-offs to average loans 0.00% (0.06)% 0.02% (0.05)%
Tier 1 capital to risk-weighted assets 11.85% 12.28% 11.85% 12.28% 11.83%
Total capital to risk-weighted assets 13.06% 13.53% 13.06% 13.53% 13.07%
Tier 1 capital to average assets 10.03% 10.24% 10.03% 10.24% 10.29%
Average equity to average assets 8.19% 8.46% 8.17% 8.45%
Net interest margin 3.61% 3.64% 3.68% 3.65%
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, June 30, December 31
2014 2013 2013
---- ---- ----
(unaudited) (unaudited) (audited)
---------- ---------- --------
(dollars in thousands)
---------------------
ASSETS
Cash and due from banks $2,234 $2,222 $1,922
Federal funds sold 21 24 22
Interest-bearing deposits in other banks 30,342 33,886 18,166
Cash and cash equivalents 32,597 36,132 20,110
------------------------- ------ ------ ------
Investment securities available-for-sale at fair value 25,592 35,673 27,016
Restricted stock 1,805 1,444 1,669
Loans 256,677 235,739 253,913
Less: Allowance for loan losses (3,381) (3,697) (3,423)
------------------------------- ------ ------ ------
Net loans 253,296 232,042 250,490
--------- ------- ------- -------
Bank premises and equipment 6,501 6,610 6,570
Bank owned life insurance 8,160 7,914 8,040
Foreclosed properties 743 2,048 972
Other assets 2,815 2,772 3,264
----- ----- -----
Total assets $331,509 $324,635 $318,131
============ ======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits
Noninterest-bearing deposits $55,460 $53,556 $50,286
Interest-bearing deposits 218,956 224,892 216,702
------------------------- ------- ------- -------
Total deposits 274,416 278,448 266,988
Short-term borrowings 3,050 2,700 3,050
FHLB advances 20,000 10,000 15,000
Junior subordinated debentures 6,186 6,186 6,186
Accrued interest and other liabilities 858 881 720
Total liabilities 304,510 298,215 291,944
----------------- ------- ------- -------
Shareholders' Equity
Common stock, per share par value $0.01; 15 15
10,000,000 shares authorized; 1,469,754; 1,508,574 and 1,484,174 shares
issued and outstanding
15
Additional paid-in capital 15,051 15,688 15,302
Retained earnings 12,153 10,914 11,456
Accumulated other comprehensive loss (220) (197) (586)
Total shareholders' equity 26,999 26,420 26,187
-------------------------- ------ ------ ------
Total liabilities and shareholders' equity $331,509 $324,635 $318,131
========================================== ======== ======== ========
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
For the Six Months Ended
For the Three Months Ended
--------------------------
(dollars in thousands, except per share amounts) June 30, June 30, June 30, June 30,
2014 2013 2014 2013
--- ---- ---- ---- ----
Interest income
Interest and fees on loans $3,027 $2,897 $6,076 $5,776
Interest and dividends on investment securities:
Interest - taxable 90 108 181 203
Interest - tax exempt 52 60 102 127
Dividends 18 14 38 29
Other interest income 19 21 34 39
--- ---
Total interest income 3,206 3,100 6,431 6,174
--------------------- ----- ----- ----- -----
Interest expense
Interest on deposits 291 307 580 634
Interest on short-term borrowings 20 17 39 34
Interest on FHLB advances 83 81 165 160
Interest on junior subordinated debentures 29 30 58 59
------------------------------------------ --- --- --- ---
Total interest expense 423 435 842 887
---------------------- --- --- --- ---
Net interest income 2,783 2,665 5,589 5,287
Provision for loan losses - - - -
--- ---
Net interest income after provision for loan losses 2,783 2,665 5,589 5,287
--------------------------------------------------- ----- ----- ----- -----
Noninterest income
(Loss) gain on sale of foreclosed properties (37) - (37) 28
Bank owned life insurance income 60 63 120 126
Service fees 82 89 163 175
Other operating income 84 78 165 150
--- ---
Total noninterest income 189 230 411 479
------------------------ --- --- --- ---
Noninterest expense
Salaries and employee benefits 1,400 1,326 2,692 2,596
Occupancy and equipment expenses 376 362 748 717
Other operating expenses 643 492 1,242 1,094
----- -----
Total noninterest expense 2,419 2,180 4,682 4,407
------------------------- ----- ----- ----- -----
Income before provision for income taxes 553 715 1,318 1,359
Provision for income taxes 176 225 416 389
-------------------------- --- --- --- ---
Net income $377 $490 $902 $970
========== ==== ==== ==== ====
Basic earnings per share $0.26 $0.32 $0.61 $0.64
======================== ===== ===== ===== =====
Diluted earnings per share $0.25 $0.32 $0.59 $0.63
========================== ===== ===== ===== =====
Basic weighted average number of shares outstanding 1,473,335 1,508,574 1,474,271 1,508,574
=================================================== ========= ========= ========= =========
Diluted weighted average number of shares outstanding 1,528,023 1,546,150 1,525,551 1,544,292
===================================================== ========= ========= ========= =========
Dividends declared per share $0.07 $0.06 $0.14 $0.11
============================ ===== ===== ===== =====
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended
------------------
(dollars in thousands)
June 30, June 30,
---
2014 2013
---- ----
Net income $377 $490
Changes in net unrealized gains (losses) on securities available for
sale, net of income taxes of $97 in 2014 and net of income tax
benefits of $361 in 2013
149 (554)
Total comprehensive income $526 $(64)
========================== ==== ====
Frederick County Bancorp, Inc.
and Subsidiaries
Consolidated Statements of
Comprehensive Income
(Unaudited)
Six Months Ended
----------------
(dollars in thousands)
June 30, June 30,
---
2014 2013
---- ----
Net income $902 $970
Changes in net unrealized gains
(losses) on securities
available for
sale, net of income taxes of
$238 in 2014 and net of income
tax
benefits of $433 in 2013
366 (665)
Total comprehensive income $1,268 305
========================== ====== ===
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
(dollars in thousands) Shares Common Additional Accumulated Total
Outstanding Stock Paid-in Other Shareholders'
Capital Retained Comprehensive Equity
Earnings Income
(Loss)
--- -----
Balance, January 1, 2013 1,508,574 $15 $15,663 $10,110 $468 $26,256
Comprehensive income 970 (665) 305
Dividends declared on common stock, (166) (166)
$0.11 per share
Compensation expense from stock option 25 25
transactions
Balance, June 30, 2013 1,508,574 $15 $15,688 $10,914 $(197) $26,420
====================== ========= === ======= ======= ===== =======
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, (205) (205)
$0.14 per share
Shares repurchased (15,000) (267) (267)
Shares issued under stock option 580 7 7
transactions
Compensation expense from stock option 9 9
transactions
Balance, June 30, 2014 1,469,754 $15 $15,051 $12,153 $(220) $26,999
====================== ========= === ======= ======= ===== =======
Frederick County
Bancorp, Inc. and
Subsidiaries
Consolidated
Statements of Cash
Flows (Unaudited)
Six Months Ended
----------------
June 30, June 30,
2014 2013
---- ----
(dollars in thousands)
---------------------
Cash flows from
operating activities:
Net income $902 $970
Adjustments to
reconcile net income
to net cash provided
by
operating activities:
Depreciation and
amortization 169 188
Deferred income
(benefits) taxes (4) 190
Net premium
amortization on
investment securities 90 186
Bank owned life
insurance income (120) (126)
Loss (Gain) on sale of
foreclosed properties 37 (28)
Stock-based
compensation expense 9 25
Decrease in accrued
interest and other
assets 215 495
Increase (decrease)
in accrued interest
and other liabilities 138 (18)
---------------------- --- ---
Net cash provided by
operating activities 1,436 1,882
--------------------- ----- -----
Cash flows from
investing activities:
Purchases of
investment securities
available for sale -- (6,058)
Proceeds from
maturities,
prepayments and calls 1,938 3,888
investment securities
available for sale
(Purchase) redemption
of restricted stock (136) 60
Net increase in loans (2,806) (6,324)
Purchases of bank
premises and
equipment (100) (64)
Proceeds from sale of
foreclosed properties 192 28
Net cash used in
investing activities (912) (8,470)
--------------------- ---- ------
Cash flows from
financing activities:
Net increase in NOW,
money market
accounts, savings 9,279 16,643
accounts and
noninterest-bearing
deposits
Net decrease in time
deposits (1,851) (6,308)
Proceeds from FHLB
advances 5,000 --
Proceeds from issuance
of common stock 7 --
Repurchase of common
stock (267) --
Dividends paid on
common stock (205) (166)
Net cash provided by
financing activities 11,963 10,169
--------------------- ------ ------
Net increase in cash
and cash equivalents 12,487 3,581
Cash and cash
equivalents -
beginning of year 20,110 32,551
------------------ ------ ------
Cash and cash
equivalents - end of
period $32,597 $36,132
===================== ======= =======
Supplemental cash flow
disclosures:
Interest paid $842 $900
============= ==== ====
Income taxes paid $410 $255
================= ==== ====
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.
Three Months Ended June
30, 2014 2013
----------------------- ---- ----
Average Interest Average Average Interest Average
daily Income/ Yield/ daily Income/ Yield/
(dollars in thousands) balance Expense rate balance Expense rate
--------------------- ------- ------- ---- ------- ------- ----
Assets
Interest-earning
assets:
Federal funds sold $21 $ -- --% $24 $ -- --%
Interest bearing
deposits in other
banks 32,838 19 0.23 33,246 21 0.25
Investment securities
(1):
Taxable 21,071 108 2.06 26,660 122 1.84
Tax-exempt (2) 6,552 79 4.84 8,579 91 4.25
Loans (3) 253,285 3,042 4.82 231,864 2,927 5.06
-------- ------- ----- ---- ------- ----- ----
Total interest-earning
assets 313,767 3,248 4.15 300,373 3,161 4.22
Noninterest-earning
assets 17,361 18,243
------------------- ------ ------
Total assets $331,128 $318,616
============ ======== ========
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
NOW accounts $21,645 8 0.15% $20,274 8 0.16%
Savings accounts 8,265 1 0.05 7,341 -- --
Money market accounts 96,282 69 0.29 88,333 63 0.29
Certificates of deposit
$100,000 or more 43,753 124 1.14 46,960 119 1.02
Certificates of deposit
less than $100,000 51,985 89 0.69 57,315 117 0.82
Short-term borrowings 3,050 20 2.63 2,700 17 2.53
FHLB advances 15,220 83 2.19 10,000 81 3.25
Junior subordinated
debentures 6,186 29 1.88 6,186 30 1.95
Total interest-bearing
liabilities 246,386 423 0.69 239,109 435 0.73
Noninterest-bearing
deposits 56,986 51,748
Noninterest-bearing
liabilities 651 792
------------------- --- ---
Total liabilities 304,023 291,649
Total shareholders'
equity 27,105 26,967
------------------- ------ ------
Total liabilities and
shareholders' $331,128 $318,616
equity
======
Net interest income $2,825 $2,726
=================== ====== ======
Net interest spread 3.46% 3.49%
==== ====
Net interest margin 3.61% 3.64%
==== ====
((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 $27 thousand in 2014 and $31 thousand in 2013 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 $15 thousand in 2014 and $30 thousand in 2013 are included in the calculation of the loan interest income. Net loan origination income in interest income totaled $21 thousand in 2014 and $4 thousand in 2013.
Six Months Ended June
30, 2014 2013
--------------------- ---- ----
Average Interest Average Average Interest Average
daily Income/ Yield/ daily Income/ Yield/
(dollars in thousands) balance Expense rate balance Expense rate
--------------------- ------- ------- ---- ------- ------- ----
Assets
Interest-earning
assets:
Federal funds sold $22 $ -- --% $13 $ -- --%
Interest bearing
deposits in other
banks 30,330 34 0.23 32,854 39 0.24
Investment securities
(1):
Taxable 21,458 219 2.06 26,418 232 1.77
Tax-exempt (2) 6,554 155 4.76 8,596 192 4.50
Loans (3) 253,163 6,126 4.88 230,983 5,835 5.09
-------- ------- ----- ---- ------- ----- ----
Total interest-earning
assets 311,527 6,534 4.23 298,864 6,298 4.25
Noninterest-earning
assets 17,303 18,301
------------------- ------ ------
Total assets $328,830 $317,165
============ ======== ========
Liabilities and
Shareholders' Equity
Interest-bearing
liabilities:
NOW accounts $20,862 15 0.14% $18,943 16 0.17%
Savings accounts 8,108 1 0.02 7,095 1 0.03
Money market accounts 97,291 138 0.29 88,257 140 0.32
Certificates of deposit
$100,000 or more 43,663 235 1.09 47,501 236 1.00
Certificates of deposit
less than $100,000 52,557 191 0.73 58,100 241 0.84
Short-term borrowings 3,050 39 2.58 2,700 34 2.54
FHLB advances 15,110 165 2.20 10,000 160 3.23
Junior subordinated
debentures 6,186 58 1.89 6,186 59 1.92
Total interest-bearing
liabilities 246,827 842 0.69 238,782 887 0.75
Noninterest-bearing
deposits 54,500 50,712
Noninterest-bearing
liabilities 622 858
------------------- --- ---
Total liabilities 301,949 290,352
Total shareholders'
equity 26,881 26,813
------------------- ------ ------
Total liabilities and
shareholders' $328,830 $317,165
equity
======
Net interest income $5,692 $5,411
=================== ====== ======
Net interest spread 3.54% 3.50%
==== ====
Net interest margin 3.68% 3.65%
==== ====
((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 $53 thousand in 2014 and $65 thousand in 2013 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 $50 thousand in 2014 and $59 thousand in 2013 are included in the calculation of the loan interest income. Net loan origination income in interest income totaled $38 thousand in 2014 and $15 thousand in 2013.
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.
