EX-99.1 2 v119799_ex99-1.htm
FREDERICK COUNTY
BANCORP, INC.

PRESS RELEASE

Frederick County Bancorp, Inc. Reports Results for the Second Quarter 2008

July 11, 2008, Frederick, MD — Frederick County Bancorp, Inc. (the “Company”) (OTC Bulletin Board: FCBI), the parent company for Frederick County Bank, announced today that, for the quarter ended June 30, 2008, the Company recorded net income of $270,000 and diluted earnings per share of $0.18, as compared to net income of $335,000 and diluted earnings per share of $0.22 recorded for the second quarter of 2007. The Company earned $569,000 with diluted earnings per share of $0.38 for the first half of 2008 as compared to $658,000 in earnings and diluted earnings per share of $0.43 for the same period in 2007.  The Company increased its provision for loan losses in 2008 to $240,000 from the $191,000 recorded in the first half of 2007. “This increase reflects management's continued concern with the ongoing pressure of very challenging economic conditions on consumer and small business loans. Net income was also negatively affected by continued net interest margin compression” stated Martin S. Lapera, President and Chief Executive Officer of the Company.

The Company also reported that, as of June 30, 2008, assets increased to $262.5 million, with deposits of $223.9 million and gross loans of $209.9 million, representing increases of 3.2%, 1.0% and 5.3%, respectively, over the second quarter of 2007.

Frederick County Bank commenced operations in 2001. The Bank is headquartered in Frederick, Maryland, and conducts full service commercial banking services through four offices, three of which are in the City of Frederick and one office located in Walkersville, Maryland.

   
June 30,
  
June 30,
  
December 31,
  
   
2008
  
2007
  
2007
  
(dollars in thousands)
  
(unaudited)
  
(unaudited)
  
(audited)
  
Total assets
  
$
262,493
  
$
254,321
  
$
255,991
  
Cash and due from banks
    
4,781
   
4,773
   
3,828
 
Federal funds sold and other overnight investments
    
14,482
   
16,211
   
8,538
 
Investment securities - available for sale
    
26,460
   
28,146
   
27,512
 
Restricted stock
    
1,509
   
1,185
   
1,440
 
Loans, net
    
207,385
   
197,052
   
206,371
 
Deposits
    
223,987
   
221,676
   
219,228
 
Long-term borrowings
    
10,000
   
5,000
   
10,000
 
Junior subordinated debentures
    
6,186
   
6,186
   
6,186
 
Shareholders' equity
    
20,064
   
18,407
   
19,580
 
 
 
SELECTED FINANCIAL DATA

   
Three Months Ended 
  
Six Months Ended 
  
   
June 30, 
  
June 30, 
  
   
2008
  
2007
  
2008
  
2007
  
(dollars in thousands, except per share data)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
SUMMARY OF OPERATING RESULTS:
                          
Interest income
  
$
3,839
  
$
3,997
  
$
7,855
  
$
7,722
  
Interest expense
    
1,812
   
1,938
   
3,802
   
3,715
 
Net interest income
    
2,027
   
2,059
   
4,053
   
4,007
 
Provision for loan losses
    
120
   
125
   
240
   
191
 
Net interest income after provision for loan losses
    
1,907
   
1,934
   
3,813
   
3,816
 
Gain on sale of foreclosed property
    
-
   
-
   
15
   
-
 
Noninterest income (excluding gains)
    
129
   
97
   
265
   
183
 
Noninterest expense
    
1,650
   
1,549
   
3,296
   
3,053
 
Income before provision for income taxes
    
386
   
482
   
797
   
946
 
Provision for income taxes
    
116
   
147
   
228
   
288
 
Net income
    
270
   
335
   
569
   
658
 
                           
PER COMMON SHARE DATA:
                          
Basic earnings per share
  
$
0.18
  
$
0.23
  
$
0.39
  
$
0.45
  
Diluted earnings per share
  
$
0.18
  
$
0.22
  
$
0.38
  
$
0.43
  
Basic weighted average number of shares outstanding
    
1,460,602
   
1,460,602
   
1,460,602
   
1,459,641
 
Diluted weighted average number of shares outstanding
    
1,507,087
   
1,521,376
   
1,508,066
   
1,522,627
 
Common shares outstanding
    
1,460,602
   
1,460,602
   
1,460,602
   
1,460,602
 
Book value per share
  
$
13.74
  
$
12.60
  
$
13.74
  
$
12.60
  
                           
SELECTED UNAUDITED FINANCIAL RATIOS:
                          
Return on average assets
    
0.41
%
  
0.55
%
  
0.44
%
  
0.56
%
Return on average equity
    
5.33
%
  
7.21
%
  
5.66
%
  
7.16
%
Allowance for loan losses to total loans
    
1.23
%
  
1.18
%
  
1.23
%
  
1.18
%
Nonperforming assets to total assets
    
0.70
%
  
0.06
%
  
0.70
%
  
0.06
%
Ratio of net charge-offs to average loans
    
—
%
  
—
%
  
0.14
%
  
—
%
Average equity to average assets
    
7.76
%
  
7.64
%
  
7.74
%
  
7.76
%
                           
Weighted average yield/rate on:
                          
Loans
    
6.60
%
  
7.36
%
  
6.75
%
  
7.35
%
Interest-earning assets
    
6.20
%
  
6.92
%
  
6.39
%
  
6.93
%
Interest-bearing liabilities
    
3.55
%
  
4.07
%
  
3.74
%
  
4.04
%
Net interest spread
    
2.65
%
  
2.85
%
  
2.65
%
  
2.88
%
Net interest margin
    
3.32
%
  
3.62
%
  
3.35
%
  
3.65
%

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.

 

Contact: William R. Talley, Jr., Executive Vice President and Chief Financial Officer, (240) 529-1507

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