By FREDERICK, Md., Jan. 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 December 31, 2013, the Company recorded net income of $304 thousand and diluted earnings per share of $0.20, as compared to net income of $276 thousand and diluted earnings per share of $0.18 recorded for the same quarter of 2012. The Company earned $1.7 million with diluted earnings per share of $1.10 for the year ended on December 31, 2013, as compared to $1.4 million in earnings and diluted earnings per share of $0.92 for the same period in 2012.
The increase in quarterly earnings was due primarily to the lower level of the provision for loan losses of $200 thousand in 2013, which was down from the $850 thousand recorded in 2012 and this total was partially offset by the gain on sale of securities in the amount of $594 thousand realized in 2012, whereas $17 thousand of securities losses were recognized in 2013.
The increase in year-to-date earnings was due primarily to a reduction in total noninterest expense from $9.6 million for the year 2012 as compared to $9.2 million in the same period of 2013. The primary cause of the decrease in noninterest expense was due to the lower level of foreclosed property expenses of $196 thousand in 2013, which was substantially lower than the $716 thousand incurred in 2012. In addition, the provision for loan losses of $275 thousand in 2013 was down from the $1.3 million recorded in 2012, along with a loss of $82 thousand on the sale of foreclosed property that occurred in 2012, whereas there was a $20 thousand gain on the sale of foreclosed property recorded in 2013, and this total was partially offset by the gain on sale of securities in the amount of $1.1 million realized in 2012, whereas $17 thousand of securities losses were recognized in 2013.
Net loan charge-offs for the quarters ended December 31, 2013 and 2012 totaled $412 thousand and $436 thousand, respectively. For the entire years of 2013 and 2012, the net loan charge-offs totaled $422 thousand and $920 thousand, respectively.
The ratio of the allowance for loan losses to total loans stood at 1.35% and 1.56% as of December 31, 2013 and 2012, respectively. Nonperforming assets stood at $5.3 million and $8.0 million at December 31, 2013 and 2012, respectively. The corresponding nonperforming assets to total assets ratios were 1.67% and 2.53% as of December 31, 2013 and 2012, respectively.
The Company also reported that, as of December 31, 2013, assets stood at $318.1 million, with total deposits of $267.0 million and gross loans of $253.9 million, representing an increase of 1.2%, a decrease of 0.4%, and an increase of 10.7%, respectively, compared to December 31, 2012. Total shareholders' equity at December 31, 2013 was $26.2 million, a decline of $69 thousand from December 31, 2012. The decline primarily results from the expenditures to repurchase 24,900 shares of common stock, dividends declared, and the decline in the unrealized gain on available for sale securities to an unrealized loss of $586 thousand at December 31, 2013, offsetting retained earnings and proceeds from the exercise of options. On a per share basis, book value per share increased by twenty-four cents for 2013 to $17.64 per share at December 31, 2013.
Frederick County Bank is headquartered in Frederick, Maryland, and conducts full service commercial banking services through five bank centers, four of which are located in the City of Frederick and one in Walkersville, Maryland.
December 31, December 31,
2013 2012
---- ----
(dollars in
thousands) (unaudited) (unaudited)
Total assets $318,131 $314,459
Loans 253,913 229,288
Deposits 266,988 268,113
Shareholders'
equity 26,187 26,256
Three Months Ended Years Ended
December 31, December 31,
2013 2012 2013 2012
---- ---- ---- ----
(dollars in
thousands,
except for per
share data) (unaudited) (unaudited) (unaudited) (unaudited)
SUMMARY OF
OPERATING
RESULTS:
Net income $304 $276 $1,691 $1,395
Total
comprehensive
income (loss) 233 (60) 637 1,060
PER COMMON SHARE
DATA:
Basic earnings
per share $0.20 $0.18 $1.12 $0.92
Diluted earnings
per share $0.20 $0.18 $1.10 $0.92
Basic weighted
average number
of shares
outstanding 1,493,173 1,509,944 1,503,888 1,513,941
Diluted weighted
average number
of shares
outstanding 1,536,375 1,514,378 1,543,503 1,515,663
Common shares
outstanding 1,484,174 1,508,574 1,484,174 1,508,574
Dividends
declared $0.06 $0.05 $0.23 $0.20
Book value per
share $17.64 $17.40 $17.64 $17.40
SELECTED
UNAUDITED
FINANCIAL
RATIOS:
Return on average
assets 0.37% 0.35% 0.53% 0.46%
Return on average
equity 4.57% 4.15% 6.33% 5.29%
Allowance for
loan losses to
total loans 1.35% 1.56% 1.35% 1.56%
Nonperforming
assets to total
assets 1.67% 2.53% 1.67% 2.53%
Ratio of net
charge-offs to
average loans 0.16% 0.19% 0.18% 0.42%
Tier 1 capital to
risk-weighted
assets 11.83% 12.25% 11.83% 12.25%
Total capital to
risk-weighted
assets 13.07% 13.50% 13.07% 13.50%
Tier 1 capital to
average assets 10.29% 10.09% 10.29% 10.09%
Average equity to
average assets 8.36% 8.44% 8.40% 8.61%
Net interest
margin 3.82% 3.74% 3.71% 3.89%
SELECTED LOAN
DATA:
Charge-offs $412 $460 $606 $957
(Recoveries) - (24) (184) (37)
Net charge-offs $412 $436 $422 $920
Nonperforming
assets:
Nonaccrual loans $3,379 $3,825
Accruing troubled
debt
restructurings 976 2,096
Loans 90 days or
more past due
and still
accruing - --
Foreclosed
properties 972 2,048
--- -----
Total
nonperforming
assets $5,327 $7,969
====== ======
Frederick County Bancorp, Inc.
and Subsidiaries
Consolidated Balance Sheets
December 31, December
31,
2013 2012
---- ----
(unaudited) (unaudited)
---------- -----------
(dollars in thousands)
---------------------
ASSETS
------
Cash and due from banks $1,922 $2,202
Federal funds sold 22 --
Interest-bearing deposits in
other banks 18,166 30,349
Cash and cash equivalents 20,110 32,551
------------------------- ------ ------
Investment securities available-
for-sale at fair value 27,016 34,788
Restricted stock 1,669 1,504
Loans 253,913 229,288
Less: Allowance for loan losses (3,423) (3,571)
------------------------------- ------ ------
Net loans 250,490 225,717
--------- ------- -------
Bank premises and equipment 6,570 6,734
Bank owned life insurance 8,040 7,788
Foreclosed properties 972 2,048
Other assets 3,264 3,329
----- -----
Total assets $318,131 $314,459
============ ======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
-----------------------------
Liabilities
Deposits:
Noninterest-bearing deposits $50,286 $51,256
Interest-bearing deposits 216,702 216,857
------------------------- ------- -------
Total deposits 266,988 268,113
Short-term borrowings 3,050 2,700
FHLB advances 15,000 10,000
Junior subordinated debentures 6,186 6,186
Accrued interest and other
liabilities 720 1,204
Total liabilities 291,944 288,203
----------------- ------- -------
Shareholders' Equity
Common stock, per share par value
$0.01; 15 15
10,000,000 shares authorized;
1,484,174; and 1,508,574
shares issued and outstanding
Additional paid-in capital 15,302 15,663
Retained earnings 11,456 10,110
Accumulated other comprehensive
(loss) income (586) 468
Total shareholders' equity 26,187 26,256
-------------------------- ------ ------
Total liabilities and
shareholders' equity $318,131 $314,459
===================== ======== ========
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
For the Three For the Years
Months Ended Ended
-------------- --------------
(dollars
in
thousands,
except
per
share
amounts) Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2013 2012 2013 2012
--- ---- ---- ---- ----
Interest
income:
Interest
and
fees
on
loans $3,077 $2,987 $11,840 $11,918
Interest
and
dividends
on
investment
securities:
Interest
-
taxable 100 120 419 597
Interest
-
tax
exempt 51 78 239 385
Dividends 16 16 60 54
Interest
on
Federal
Funds
Sold
Other
interest
income 10 18 63 59
Total
interest
income 3,254 3,219 12,621 13,013
-------- ----- ----- ------ ------
Interest
expense:
Interest
on
deposits 291 364 1,227 1,514
Interest
on
short-
term
borrowings 15 17 65 76
Interest
on
FHLB
advances 84 81 324 322
Interest
on
junior
subordinated
debentures 30 32 119 132
------------ --- --- --- ---
Total
interest
expense 420 494 1,735 2,044
-------- --- --- ----- -----
Net
interest
income 2,834 2,725 10,886 10,969
Provision
for
loan
losses 200 850 275 1,275
Net
interest
income
after
provision
for
loan
losses 2,634 1,875 10,611 9,694
--------- ----- ----- ------ -----
Noninterest
income:
Securities
(losses)
gains (17) 594 (17) 1,050
(Loss)
gain
on
sale
of
foreclosed
properties (8) - 20 (82)
Bank
owned
life
insurance
income 62 69 252 187
Service
fees 88 92 353 355
Other
operating
income 82 84 315 318
Total
noninterest
income 207 839 923 1,828
----------- --- --- --- -----
Noninterest
expense:
Salaries
and
employee
benefits 1,206 1,164 5,112 5,071
Occupancy
and
equipment
expenses 386 348 1,480 1,412
Other
operating
expenses 845 850 2,590 3,120
Total
noninterest
expense 2,437 2,362 9,182 9,603
----------- ----- ----- ----- -----
Income
before
provision
for
income
taxes 404 352 2,352 1,919
Provision
for
income
taxes 100 76 661 524
--------- --- --- --- ---
Net
income $304 $276 $1,691 $1,395
====== ==== ==== ====== ======
Basic
earnings
per
share $0.20 $0.18 $1.12 $0.92
======== ===== ===== ===== =====
Diluted
earnings
per
share $0.20 $0.18 $1.10 $0.92
======== ===== ===== ===== =====
Basic
weighted
average
number
of
shares
outstanding 1,493,173 1,509,944 1,503,888 1,513,941
=========== ========= ========= ========= =========
Diluted
weighted
average
number
of
shares
outstanding 1,536,375 1,514,378 1,543,503 1,515,663
=========== ========= ========= ========= =========
Dividends
declared
per
share $0.06 $0.05 $0.23 $0.20
========= ===== ===== ===== =====
Frederick County
Bancorp, Inc. and
Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three Months
Ended
-------------
(dollars in
thousands) December 31, December 31,
2013 2012
--- ---- ----
Net income $304 $276
Changes in net
unrealized
(losses) gains on
securities
available for (81) 24
sale, net of income tax
benefits of $53 in 2013
and income
taxes of $15 in 2012
Reclassification adjustment for gains
(losses) realized, net of income
tax benefits of $7 in 2013 and $234 in
2012
10 (360)
--- --- ----
Total
comprehensive
income (loss) $233 $(60)
============== ==== ====
Frederick County
Bancorp, Inc.
and
Subsidiaries
Consolidated Statements of
Comprehensive Income (Unaudited)
For the Years
Ended
--------------
(dollars in
thousands) December 31, December 31,
2013 2012
--- ---- ----
Net income $1,691 $1,395
Changes in net
unrealized
(losses) gains
on securities
available for
sale, net of
income tax
benefits of
$693 in 2013
and income
taxes of $196 in
2012
(1,064) 301
Reclassification
adjustment for
gains realized,
net of income
taxes benefits
of $7 in 2013
and $414 in
2012
10 (636)
--- --- ----
Total
comprehensive
income $637 $1,060
============== ==== ======
Frederick County Bancorp, Inc. and Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
(dollars in thousands) Shares Common Additional Paid-in Accumulated Total
Outstanding Stock Capital Retained Other Shareholders'
Earnings Comprehensive Equity
Income
(Loss)
--- -----
Balance, January 1, 2012 1,514,314 $15 $15,621 $9,018 $803 $25,457
Comprehensive income 1,395 (335) 1,060
Dividends declared on common stock, (303) (303)
$0.20 per share
Shares repurchased (8,650) (104) (104)
Shares issued under stock option transactions 2,910 33 33
Compensation expense from stock option 107 107
transactions
Excess tax benefit from equity-based awards 6 6
------------------------------------------- --- ---
Balance, December 31, 2012 1,508,574 $15 $15,663 $10,110 $468 $26,256
Comprehensive income 1,691 (1,054) 637
Dividends paid on common stock (0.23) (345) (345)
Shares repurchased (24,900) (405) (405)
Shares issued under stock option transactions 500 6 6
Compensation expense from stock option 38 38
transactions
Balance, December 31, 2013 1,484,174 $15 $15,302 $11,456 $(586) $26,187
========================== ========= === ======= ======= ===== =======
Frederick County Bancorp, Inc.
and Subsidiaries
Consolidated Statements of
Cash Flows (Unaudited)
December 31,
------------
(dollars in thousands) 2013 2012
--------------------- ---- ----
Cash flows from operating
activities:
Net income $1,691 $1,395
Adjustments to reconcile net
income to net cash provided
by
operating activities:
Depreciation and amortization 366 373
Deferred income taxes
(benefits) 257 (239)
Provision for loan losses 275 1,275
Securities losses (gains) 17 (1,050)
Net premium amortization on
investment securities 321 439
Loss on disposal of bank
premises and equipment - 7
Bank owned life insurance
income (252) (187)
(Gain) loss on sale of
foreclosed properties (20) 82
Stock-based compensation
expense 38 107
Provision for foreclosed
properties 196 716
Excess tax benefit from stock-
based awards - (6)
Decrease in accrued interest
and other assets 189 497
(Decrease) increase in accrued
interest and other
liabilities (179) 241
------------------------------ ---- ---
Net cash provided by operating
activities 2,899 3,650
------------------------------ ----- -----
Cash flows from investing
activities:
Purchases of investment
securities available for sale (6,058) (23,313)
Proceeds from sales of
investment securities
available for sale 5,581 17,623
Proceeds from maturities,
prepayments and calls 6,170 7,382
investment securities
available for sale
(Purchase) redemption of
restricted stock (165) 6
Net increase in loans (25,047) (17,528)
Purchase of bank owned life
insurance -- (3,000)
Purchases of bank premises and
equipment (202) (654)
Proceeds from sale of
foreclosed properties 900 279
Net cash used in investing
activities (18,821) (19,205)
------------------------------ ------- -------
Cash flows from financing
activities:
Net increase in NOW, money
market accounts, savings 10,976 21,353
accounts and noninterest-
bearing deposits
Net (decrease) increase in
time deposits (12,101) 273
Net increase in short-term
borrowings 350 --
Proceeds from FHLB advances 5,000 --
Proceeds from issuance of
common stock 6 33
Repurchase of common stock (405) (104)
Dividends paid on common stock (345) (303)
Excess tax benefit from stock-
based awards - 6
------------------------------ --- ---
Net cash provided by financing
activities 3,481 21,258
------------------------------ ----- ------
Net (decrease) increase in
cash and cash equivalents (12,441) 5,703
Cash and cash equivalents -
beginning of year 32,551 26,848
--------------------------- ------ ------
Cash and cash equivalents -
end of year $20,110 32,551
=========================== ======= ======
Supplemental cash flow
disclosures:
Interest paid $1,746 $2,047
============= ====== ======
Income taxes paid $700 $764
================= ==== ====
Transfer of foreclosed
properties to loans $-- $366
====================== === ====
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
December
31, 2013 2012
--------- ---- ----
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 $23 $ -- -- % $ -- $ -- --%
Interest
bearing
deposits
in other
banks 20,030 10 0.22 29,974 18 0.24
Investment
securities
(1):
Taxable 23,377 116 1.97 28,724 136 1.88
Tax-
exempt
(2) 6,637 77 4.62 10,471 118 4.47
Loans
(3) 250,693 3,112 4.93 227,728 3,018 5.26
----- ------- ----- ---- ------- ----- ----
Total
interest-
earning
assets 300,760 3,316 4.37 296,897 3,290 4.40
---------- ------- ----- ---- ------- ----- ----
Noninterest-
earning
assets 17,826 18,261
------------ ------ ------
Total
assets $318,586 $315,158
======= ======== ========
Liabilities
and
Shareholders'
Equity
Interest-
bearing
liabilities:
NOW
accounts $20,494 8 0.15% $17,433 9 0.20%
Savings
accounts 7,840 -- -- 6,558 1 0.06
Money
market
accounts 89,492 64 0.28 81,578 96 0.47
Certificates
of
deposit
$100,000 or more 41,204 111 1.07 49,312 130 1.05
Certificates
of
deposit
less
than
$100,000 64,559 108 0.66 61,833 128 0.82
Short-
term
borrowings 2,734 15 2.18 2,700 17 2.50
FHLB
advances 15,000 84 2.22 10,000 81 3.21
Junior
subordinated
debentures 6,186 30 1.92 6,186 32 2.05
Total
interest-
bearing
liabilities 247,509 420 0.67 235,600 494 0.83
------------ ------- --- ---- ------- --- ----
Noninterest-
bearing
deposits 53,661 51,726
Noninterest-
bearing
liabilities 777 1,226
------------ --- -----
Total
liabilities 301,947 288,552
------------ ------- -------
Total
shareholders'
equity 26,625 26,606
-------------- ------ ------
Total
liabilities
and
shareholders' $318,586 $315,158
equity
======
Net
interest
income $2,896 $2,796
========= ====== ======
Net
interest
spread 3.70% 3.56%
========= ==== ====
Net
interest
margin 3.82% 3.74%
========= ==== ====
((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 2013 and $40 thousand in 2012 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 $35 thousand in 2013 and $31 thousand in 2012 are included in the calculation of the loan interest income. Net loan origination income in interest income totaled $3 thousand in 2013 and $43 thousand in 2012.
Year
Ended
December
31, 2013 2012
--------- ---- ----
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 $18 $ -- --% $142 $ -- --%
Interest
bearing
deposits
in other
banks 27,622 63 0.23 25,845 59 0.23
Investment
securities
(1):
Taxable 25,903 479 1.85 30,758 651 2.11
Tax-
exempt
(2) 8,094 362 4.47 11,962 583 4.86
Loans (3) 238,241 11,967 5.02 220,574 12,042 5.44
-------- ------- ------ ---- ------- ------ ----
Total
interest-
earning
assets 299,878 12,871 4.29 289,281 13,335 4.60
---------- ------- ------ ---- ------- ------ ----
Noninterest-
earning
assets 18,140 17,118
------------ ------ ------
Total
assets $318,018 $306,399
======= ======== ========
Liabilities
and
Shareholders'
Equity
Interest-
bearing
liabilities:
NOW
accounts $20,042 32 0.16% $17,108 38 0.22%
Savings
accounts 7,361 2 0.03 6,263 4 0.06
Money
market
accounts 88,643 261 0.29 78,479 364 0.46
Certificates
of
deposit
$100,000 or more 45,343 468 1.03 43,978 501 1.14
Certificates
of
deposit
less than
$100,000 56,542 464 0.82 65,151 607 0.93
Short-
term
borrowings 2,709 65 2.40 2,700 76 2.81
FHLB
advances 11,260 324 2.88 10,000 322 3.21
Junior
subordinated
debentures 6,186 119 1.92 6,186 132 2.13
Total
interest-
bearing
liabilities 238,086 1,735 0.73 229,865 2,044 0.89
------------ ------- ----- ---- ------- ----- ----
Noninterest-
bearing
deposits 52,345 48,993
Noninterest-
bearing
liabilities 790 1,167
------------ --- -----
Total
liabilities 291,221 280,025
------------ ------- -------
Total
shareholders'
equity 26,697 26,374
-------------- ------ ------
Total
liabilities
and
shareholders' $318,018 $306,399
equity
======
Net
interest
income $11,136 $11,291
========= ======= =======
Net
interest
spread 3.56% 3.71%
========= ==== ====
Net
interest
margin 3.71% 3.89%
========= ==== ====
((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 $123 thousand in 2013 and $198 thousand in 2012 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 $127 thousand in 2013 and $124 thousand in 2012 are included in the calculation of the loan interest income. Net loan origination income in interest income totaled $30 thousand in 2013 and $105 thousand in 2012.
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.
