FREDERICK COUNTY BANCORP, INC. FREDERICK, Md., Oct. 24, 2014 /PRNewswire/ -- Frederick County Bancorp, Inc. (the "Company") (OTCQB: FCBI), the parent company for Frederick County Bank ("FCB"), announced today that, for the quarter ended September 30, 2014, the Company recorded net income of $460 thousand and diluted earnings per share of $0.30, as compared to net income of $417 thousand and diluted earnings per share of $0.27 recorded for the third quarter of 2013. The Company earned $1.36 million with diluted earnings per share of $0.89 for the nine months ended on September 30, 2014, as compared to $1.39 million in earnings and diluted earnings per share of $0.90 for the same period in 2013.
The increase in quarterly earnings was due primarily to the gain on sale of loans in the amount of $202 thousand, the $10 thousand increase in net interest income, and the absence of a provision for loan losses in 2014, as compared to $75 thousand recognized in 2013, which was offset by an increase in total noninterest expense to $2.6 million in the third quarter of 2014 as compared to $2.3 million in the third quarter of 2013. The increase in noninterest expenses was due primarily to increases in salaries expense and consulting expenses of $98 thousand and $93 thousand, respectively.
The slight decrease in year-to-date earnings was due primarily to an increase in total noninterest expense to $7.3 million in the first nine months of 2014 as compared to $6.7 million in the first nine months of 2013, which offset the increase in net interest income to $8.5 million in the first nine months of 2014 from $8.1 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, which was offset by the gain on sale of loans in the amount of $202 thousand in 2014. The increase in noninterest expenses was due primarily to increases in salaries expense and consulting expenses of $173 thousand and $146 thousand, respectively.
The ratio of the allowance for loan losses to total loans stood at 1.27% and 1.48% as of September 30, 2014 and 2013, respectively. Nonperforming assets stood at $5.3 million and $8.1 million at September 30, 2014 and 2013, respectively, and at $5.3 million at December 31, 2013. The corresponding nonperforming assets to total assets ratios were 1.59% and 2.54% as of September 30, 2014 and 2013, respectively, and 1.67% at December 31, 2013.
The Company also reported that, as of September 30, 2014, assets stood at $334.9 million, with total deposits of $277.2 million and gross loans of $259.9 million, representing increases of 5.3%, 3.8%, and 2.4%, 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.
September 30, September 30, December 31,
2014 2013 2013
---- ---- ----
(dollars in
thousands) (unaudited) (unaudited) (audited)
Total assets $334,867 $317,383 $318,131
Loans 259,908 246,369 253,913
Deposits 277,198 271,407 266,988
Shareholders' equity 27,518 26,199 26,187
Nonperforming
assets:
Nonaccrual loans $3,396 $4,139 $3,379
Accruing troubled
debt restructurings 1,187 1,880 976
Loans 90 days or
more past due and
still accruing -- -- --
Foreclosed
properties 729 2,047 972
--- ----- ---
Total nonperforming
assets $5,312 $8,066 $5,327
====== ====== ======
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
September 30, September 30, September 30, September 30,
2014 2013 2014 2013
---- ---- ---- ----
(dollars in
thousands, except
for per share data) (unaudited) (unaudited) (unaudited) (unaudited)
SUMMARY OF OPERATING
RESULTS:
Net income $460 $417 $1,362 $1,387
Total comprehensive
income 526 99 1,794 404
Charge-offs $139 $141 $186 $194
(Recoveries) (51) (4) (56) (184)
--- --- --- ----
Net charge-offs $88 $137 $130 $10
=== ==== ==== ===
PER COMMON SHARE
DATA:
Basic earnings per
share $0.31 $0.28 $0.92 $0.92
Diluted earnings per
share $0.30 $0.27 $0.89 $0.90
Basic weighted
average number of
shares outstanding 1,472,537 1,505,383 1,473,687 1,507,499
Diluted weighted
average number of
shares outstanding 1,529,070 1,549,148 1,527,000 1,545,950
Common shares
outstanding 1,474,954 1,493,874 1,474,954 1,493,874 1,484,174
Dividends declared $0.07 $0.06 $0.21 $0.17
Book value per share $18.66 $17.54 $18.66 $17.54 $17.64
SELECTED UNAUDITED
FINANCIAL RATIOS:
Return on average
assets 0.55% 0.52% 0.55% 0.58%
Return on average
equity 6.69% 6.28% 6.70% 6.92%
Allowance for loan
losses to total
loans 1.27% 1.48% 1.27% 1.48% 1.35%
Nonperforming assets
to total assets 1.59% 2.54% 1.59% 2.54% 1.67%
Ratio of net charge-
offs to average
loans 0.03% 0.06% 0.05% 0.00%
Tier 1 capital to
risk-weighted
assets 11.80% 11.94% 11.80% 11.94% 11.83%
Total capital to
risk-weighted
assets 12.95% 13.19% 12.95% 13.19% 13.07%
Tier 1 capital to
average assets 10.08% 10.25% 10.08% 10.25% 10.29%
Average equity to
average assets 8.23% 8.32% 8.19% 8.41%
Net interest margin 3.66% 3.71% 3.68% 3.68%
Frederick County Bancorp,
Inc. and Subsidiaries
Consolidated Balance
Sheets
September 30, September 30, December 31
2014 2013 2013
---- ---- ----
(unaudited) (unaudited) (audited)
---------- ---------- --------
(dollars in thousands)
---------------------
ASSETS
Cash and due from banks $2,155 $2,173 $1,922
Federal funds sold 21 23 22
Interest-bearing
deposits in other banks 31,222 17,640 18,166
Cash and cash equivalents 33,398 19,836 20,110
------------------------- ------ ------ ------
Investment securities
available-for-sale at
fair value 24,784 33,713 27,016
Restricted stock 1,805 1,444 1,669
Loans 259,908 246,369 253,913
Less: Allowance for loan
losses (3,293) (3,635) (3,423)
------------------------ ------ ------ ------
Net loans 256,615 242,734 250,490
--------- ------- ------- -------
Bank premises and
equipment 6,404 6,555 6,570
Bank owned life insurance 8,220 7,978 8,040
Foreclosed properties 729 2,047 972
Other assets 2,912 3,076 3,264
----- ----- -----
Total assets $334,867 $317,383 $318,131
============ ======== ======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
---------------------
Liabilities
Deposits
Noninterest-bearing
deposits $58,607 $55,882 $50,286
Interest-bearing deposits 218,591 215,525 216,702
------------------------- ------- ------- -------
Total deposits 277,198 271,407 266,988
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 915 891 720
Total liabilities 307,349 291,184 291,944
----------------- ------- ------- -------
Shareholders' Equity
Common stock, per share
par value $0.01; 15 15
10,000,000 shares
authorized; 1,474,954;
1,493,874 and 1,484,174
shares issued and
outstanding
15
Additional paid-in
capital 15,148 15,457 15,302
Retained earnings 12,509 11,242 11,456
Accumulated other
comprehensive loss (154) (515) (586)
Total shareholders'
equity 27,518 26,199 26,187
------------------- ------ ------ ------
Total liabilities and
shareholders' equity $334,867 $317,383 $318,131
===================== ======== ======== ========
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
For the Nine Months Ended
For the Three Months Ended
--------------------------
(dollars in
thousands, except
per share amounts) September 30, September 30, September 30, September 30,
2014 2013 2014 2013
--- ---- ---- ---- ----
Interest income
Interest and fees
on loans $3,122 $2,987 $9,198 $8,763
Interest and dividends on investment securities:
Interest - taxable 84 116 265 319
Interest - tax
exempt 51 61 153 188
Dividends 19 15 57 44
Other interest
income 19 14 53 53
--- ---
Total interest
income 3,295 3,193 9,726 9,367
-------------- ----- ----- ----- -----
Interest expense
Interest on
deposits 292 302 872 936
Interest on short-
term borrowings 20 16 59 50
Interest on FHLB
advances 87 80 252 240
Interest on junior
subordinated
debentures 29 30 87 89
------------------ --- --- --- ---
Total interest
expense 428 428 1,270 1,315
-------------- --- --- ----- -----
Net interest income 2,867 2,765 8,456 8,052
Provision for loan
losses -- 75 -- 75
--- ---
Net interest income
after provision
for loan losses 2,867 2,690 8,456 7,977
------------------- ----- ----- ----- -----
Noninterest income
Gain on sale of
loans 202 -- 202 --
(Loss) gain on sale
of foreclosed
properties -- -- (37) 28
Bank owned life
insurance income 60 64 180 190
Service fees 89 90 252 265
Other operating
income 85 83 250 233
--- ---
Total noninterest
income 436 237 847 716
----------------- --- --- --- ---
Noninterest expense
Salaries and
employee benefits 1,466 1,310 4,158 3,906
Occupancy and
equipment expenses 396 377 1,144 1,094
Other operating
expenses 758 651 2,000 1,745
--- -----
Total noninterest
expense 2,620 2,338 7,302 6,745
----------------- ----- ----- ----- -----
Income before
provision for
income taxes 683 589 2,001 1,948
Provision for
income taxes 223 172 639 561
------------- --- --- --- ---
Net income $460 $417 $1,362 $1,387
========== ==== ==== ====== ======
Basic earnings per
share $0.31 $0.28 $0.92 $0.92
================== ===== ===== ===== =====
Diluted earnings
per share $0.30 $0.27 $0.89 $0.90
================ ===== ===== ===== =====
Basic weighted
average number of
shares outstanding 1,472,537 1,505,383 1,473,867 1,507,499
=================== ========= ========= ========= =========
Diluted weighted
average number of
shares outstanding 1,529,070 1,549,148 1,527,000 1,545,950
=================== ========= ========= ========= =========
Dividends declared
per share $0.07 $0.06 $0.21 $0.17
================== ===== ===== ===== =====
Frederick County
Bancorp, Inc. and
Subsidiaries
Consolidated Statements
of Comprehensive Income
(Unaudited)
Three Months Ended
------------------
(dollars in thousands) September 30, September 30,
2014 2013
--- ---- ----
Net income $460 $417
Changes in net
unrealized gains
(losses) on securities
available for
sale, net of income
taxes of $43 in 2014
and net of income tax
benefits of $207 in
2013
66 (318)
Total comprehensive
income $526 $99
=================== ==== ===
Frederick County Bancorp,
Inc. and Subsidiaries
Consolidated Statements
of Comprehensive Income
(Unaudited)
Nine Months Ended
-----------------
(dollars in thousands) September 30, September 30,
2014 2013
--- ---- ----
Net income $1,362 $1,387
Changes in net unrealized
gains (losses) on
securities available for 432 (983)
sale, net of income taxes
of $281 in 2014 and net
of income tax benefits
of $640 in 2013
Total comprehensive
income $1,794 $404
=================== ====== ====
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 1,387 (983) 404
Dividends declared on common stock,
$0.17 per share (255) (255)
Shares Repurchased (14,900) (240) (240)
Shares issued under stock options
transactions 200 2 2
Compensation expense from stock
option transactions 32 32
Balance, September 30, 2013 1,493,874 $15 $15,457 $11,242 $(515) $26,199
=========================== ========= === ======= ======= ===== =======
Balance, January 1, 2014 1,484,174 $15 $15,302 $11,456 $(586) $26,187
Comprehensive income 1,362 432 1,794
Dividends declared on common stock,
$0.21 per share (309) (309)
Shares repurchased (15,000) (267) (267)
Shares issued under stock option
transactions 5,780 65 65
Compensation expense from stock
option transactions 29 29
Excess tax benefit from equity-
based awards 19 19
Balance, September 30, 2014 1,474,954 $15 $15,148 $12,509 $(154) $27,518
=========================== ========= === ======= ======= ===== =======
Frederick County
Bancorp, Inc. and
Subsidiaries
Consolidated Statements
of Cash Flows
(Unaudited)
Nine Months Ended
-----------------
September 30, September 30,
2014 2013
---- ----
(dollars in thousands)
---------------------
Cash flows from
operating activities:
Net income $1,362 $1,387
Adjustments to
reconcile net income
to net cash provided
by
operating activities:
Depreciation and
amortization 257 281
Deferred income
(benefits) taxes (26) 147
Provision for loan
losses -- 75
Gain on sale of loans (202) --
Loans originated for
sale (1,991) --
Proceeds from loans
sold 2,193 --
Net premium
amortization on
investment securities 132 271
Bank owned life
insurance income (180) (190)
Loss (gain) on sale of
foreclosed properties 37 (28)
Stock-based
compensation expense 29 32
Provision for
foreclosed properties 14 --
Excess tax benefit from
stock-based awards (19) --
Decrease in accrued
interest and other
assets 114 441
Increase (decrease) in
accrued interest and
other liabilities 195 (8)
---------------------- --- ---
Net cash provided by
operating activities 1,915 2,408
--------------------- ----- -----
Cash flows from
investing activities:
Purchases of investment
securities available
for sale -- (6,058)
Proceeds from
maturities,
prepayments and calls 2,812 5,239
investment securities
available for sale
(Purchase) redemption
of restricted stock (136) 60
Net increase in loans (6,122) (17,091)
Purchases of bank
premises and equipment (91) (102)
Proceeds from sale of
foreclosed properties 192 28
Net cash used in
investing activities (3,345) (17,924)
--------------------- ------ -------
Cash flows from
financing activities:
Net increase in NOW,
money market accounts,
savings 13,208 15,510
accounts and
noninterest-bearing
deposits
Net decrease in time
deposits (2,998) (12,216)
Proceeds from FHLB
advances 5,000 --
Proceeds from issuance
of common stock 65 2
Repurchase of common
stock (267) (240)
Dividends paid on
common stock (309) (255)
Excess tax benefit from
equity-based awards 19 --
Net cash provided by
financing activities 14,718 2,801
--------------------- ------ -----
Net increase (decrease)
in cash and cash
equivalents 13,288 (12,715)
Cash and cash
equivalents -
beginning of period 20,110 32,551
-------------------- ------ ------
Cash and cash
equivalents - end of
period $33,398 19,836
===================== ======= ======
Supplemental cash flow
disclosures:
Interest paid $1,273 $1,324
============= ====== ======
Income taxes paid $515 $455
================= ==== ====
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 September 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 $ - - $23 $ - -
Interest bearing deposits in other banks 31,620 19 0.24 24,923 14 0.22
Investment securities (1):
Taxable 20,482 103 2 27,418 131 1.9
Tax-exempt (2) 6,546 77 4.67 8,562 91 4.22
Loans (3) 258,312 3,150 4.84 240,070 3,008 4.97
-------- ------- ----- ---- ------- ----- ----
Total interest-earning assets 316,981 3,349 4.19 300,996 3,244 4.28
----------------------------- ------- ----- ---- ------- ----- ----
Noninterest-earning assets 17,075 18,134
-------------------------- ------ ------
Total assets $334,056 $319,130
============ ======== ========
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
NOW accounts $22,886 10 0.17% $21,753 8 0.15%
Savings accounts 8,051 1 0.05 7,404 1 0.05
Money market accounts 92,371 65 0.28 88,552 57 0.26
Certificates of deposit
$100,000 or more 43,884 124 1.12 45,231 121 1.06
Certificates of deposit
less than $100,000 50,819 92 0.68 55,846 115 0.82
Federal Funds Purchased - - - - - -
Short-term borrowings 3,050 20 2.6 2,700 16 2.35
FHLB advances 20,000 87 2.16 10,000 80 3.17
Junior subordinated debentures 6,186 29 1.86 6,186 30 1.92
------------------------------ ----- --- ---- ----- --- ----
Total interest-bearing liabilities 247,247 428 0.68 237,672 428 0.71
---------------------------------- ------- --- ---- ------- --- ----
Noninterest-bearing deposits 58,650 54,241
Noninterest-bearing liabilities 652 675
------------------------------- --- ---
Total liabilities 306,549 292,588
Total shareholders' equity 27,507 26,542
-------------------------- ------ ------
Total liabilities and shareholders' $334,056 $319,130
======== ========
equity
======
Net interest income $2,921 $2,816
=================== ====== ======
Net interest spread 3.51% 3.57%
==== ====
Net interest margin 3.66% 3.71%
==== ====
((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 $26 thousand in 2014 and $30 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 $28 thousand in 2014 and $21 thousand in 2013 are included in the calculation of the loan interest income. Net loan origination income in interest income totaled $31 thousand in 2014 and $13 thousand in 2013.
Nine
Months
Ended
September
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 $ - - $16 $ - -
Interest
bearing
deposits
in
other
banks 30,764 53 0.23 30,182 53 0.23
Investment
securities
(1):
Taxable 21,128 322 2.04 26,756 363 1.81
Tax-
exempt
(2) 6,552 232 4.73 8,584 285 4.44
Loans
(3) 254,899 9,277 4.87 234,045 8,855 5.06
----- ------- ----- ---- ------- ----- ----
Total
interest-
earning
assets 313,365 9,884 4.22 299,583 9,556 4.26
--------- ------- ----- ---- ------- ----- ----
Noninterest-
earning
assets 17,226 18,244
------------ ------ ------
Total
assets $330,591 $317,827
====== ======== ========
Liabilities
and
Shareholders'
Equity
Interest-
bearing
liabilities:
NOW
accounts $21,545 25 0.16% $19,890 24 0.16%
Savings
accounts 8,089 2 0.03 7,199 2 0.04
Money
market
accounts 95,633 203 0.28 88,356 197 0.30
Certificates
of
deposit
$100,000 or more 43,738 359 1.10 46,737 357 1.02
Certificates
of
deposit
less
than
$100,000 51,971 283 0.64 57,339 356 0.83
Federal
Funds
Purchased -
Short-
term
borrowings 3,050 59 2.28 2,700 50 2.48
FHLB
advances 16,758 252 1.83 10,000 240 3.21
Junior
subordinated
debentures 6,186 87 1.69 6,186 89 1.92
Total
interest-
bearing
liabilities 246,970 1,270 0.61 238,407 1,315 0.74
Noninterest-
bearing
deposits 55,899 51,901
Noninterest-
bearing
liabilities 631 798
------------ --- ---
Total
liabilities 303,500 291,106
Total
shareholders'
equity 27,091 26,721
------------- ------ ------
Total
liabilities
and
shareholders' $330,591 $317,827
equity
======
Net
interest
income $8,614 $8,241
========= ====== ======
Net
interest
spread 3.61% 3.52%
==== ====
Net
interest
margin 3.68% 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 $79 thousand in 2014 and $79 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 $97 thousand in 2014 and $92 thousand in 2013 are included in the calculation of the loan interest income. Net loan origination income in interest income totaled $69 thousand in 2014 and $28 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/frederick-county-bancorp-inc-reports-results-for-the-third-quarter-2014-114854521.html
SOURCE Frederick County Bancorp, Inc.
