EX-99.1 2 v128464_ex99-1.htm Unassociated Document
 

FREDERICK COUNTY
BANCORP, INC.

PRESS RELEASE

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

October 9, 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 September 30, 2008, the Company recorded net income of $315,000 and diluted earnings per share of $0.21, as compared to net income of $408,000 and diluted earnings per share of $0.27 recorded for the third quarter of 2007. Earnings for the third quarter of 2008 increased modestly over net income of $270,000 and diluted earnings per share of $0.18 recorded for the second quarter of 2008, as the Company experienced a slight improvement in its net interest margin.

The Company earned $884,000 with diluted earnings per share of $0.59 for the first nine months of 2008 as compared to $1,066,000 in earnings and diluted earnings per share of $0.70 for the same period in 2007. The Company’s year over year decrease in year-to-date earnings largely reflects an increase in its provision for loan losses in 2008 to $460,000 from the $241,000 recorded in the first nine months of 2007. The increased provision for loan losses reflects management's deep concern with deteriorating economic conditions, weakness in real estate markets, and the ongoing pressure on consumer households and the small business sector.

The Company also reported that, as of September 30, 2008, assets stood at $261.0 million, with deposits of $223.3 million and gross loans of $211.5 million, representing changes of -1.6%, -2.5% and 0.5%, respectively, over the third quarter of 2007. The Company’s flat asset, deposit and loan growth reflects management’s determination to limit balance sheet growth, thereby strengthening its capital and liquidity positions in anticipation of continued economic weakness. Frederick County Bank maintains a solid Four Star Rating from Bankrate.com and the top Five Star Rating from Bauer Financial, Inc., both ratings in effect as of October 6, 2008.

Frederick County Bank commenced operations in 2001 and has posted positive quarterly earnings continuously since 2002, its second year in operation. 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.

   
September 30,
  
September 30,
  
December 31,
  
   
2008
  
2007
  
2007
  
(dollars in thousands)
  
(unaudited)
  
(unaudited)
  
(audited)
  
Total assets
  
$
260,994
  
$
265,279
  
$
255,991
  
Cash and due from banks
    
3,393
   
4,550
   
3,828
 
Federal funds sold and other overnight investments
    
18,406
   
14,751
   
8,538
 
Investment securities - available for sale
    
20,470
   
28,383
   
27,512
 
Restricted stock
    
1,599
   
1,440
   
1,440
 
Loans, net
    
208,817
   
207,964
   
206,371
 
Deposits
    
223,260
   
229,037
   
219,228
 
Long-term borrowings
    
10,000
   
10,000
   
10,000
 
Junior subordinated debentures
    
6,186
   
6,186
   
6,186
 
Shareholders' equity
    
20,299
   
19,019
   
19,580
 
 
 
 
 
 
SELECTED FINANCIAL DATA
                  
   
Three Months Ended
 
Nine Months Ended
 
   
September 30,
 
September 30,
 
   
2008
  
2007
  
2008
  
2007
  
(dollars in thousands, except per share data)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
SUMMARY OF OPERATING RESULTS:
                          
Interest income
  
$
3,900
  
$
4,265
  
$
11,755
  
$
11,987
  
Interest expense
    
1,681
   
2,115
   
5,483
   
5,830
 
Net interest income
    
2,219
   
2,150
   
6,272
   
6,157
 
Provision for loan losses
    
220
   
50
   
460
   
241
 
Net interest income after provision for loan losses
    
1,999
   
2,100
   
5,812
   
5,916
 
Securities gains
    
26
   
-
   
26
   
-
 
Gain on sale of foreclosed property
    
-
   
-
   
15
   
-
 
Noninterest income (excluding gains)
    
127
   
100
   
392
   
283
 
Noninterest expense
    
1,684
   
1,598
   
4,980
   
4,651
 
Income before provision for income taxes
    
468
   
602
   
1,265
   
1,548
 
Provision for income taxes
    
153
   
194
   
381
   
482
 
Net income
    
315
   
408
   
884
   
1,066
 
                           
PER COMMON SHARE DATA:
                          
Basic earnings per share
  
$
0.22
  
$
0.28
  
$
0.61
  
$
0.73
  
Diluted earnings per share
  
$
0.21
  
$
0.27
  
$
0.59
  
$
0.70
  
Basic weighted average number of shares outstanding
    
1,460,674
   
1,460,602
   
1,460,626
   
1,459,965
 
Diluted weighted average number of shares outstanding
    
1,502,443
   
1,515,716
   
1,506,352
   
1,520,638
 
Common shares outstanding
    
1,460,802
   
1,460,602
   
1,460,802
   
1,460,602
 
Book value per share
  
$
13.90
  
$
13.02
  
$
13.90
  
$
13.02
  
 
 
                          
SELECTED UNAUDITED FINANCIAL RATIOS:
                          
Return on average assets
    
0.49
%
  
0.64
%
  
0.45
%
  
0.59
%
Return on average equity
    
6.25
%
  
8.68
%
  
5.84
%
  
7.68
%
Allowance for loan losses to total loans
    
1.28
%
  
1.14
%
  
1.28
%
  
1.14
%
Nonperforming assets to total assets
    
0.70
%
  
0.06
%
  
0.70
%
  
0.06
%
Ratio of net charge-offs to average loans
    
0.05
%
  
0.00
%
  
0.19
%
  
0.00
%
Average equity to average assets
    
7.80
%
  
7.39
%
  
7.79
%
  
7.63
%
                           
Weighted average yield/rate on:
                          
Loans
    
6.69
%
  
7.34
%
  
6.71
%
  
7.35
%
Interest-earning assets
    
6.38
%
  
7.00
%
  
6.36
%
  
6.95
%
Interest-bearing liabilities
    
3.34
%
  
4.16
%
  
3.59
%
  
4.09
%
Net interest spread
    
3.04
%
  
2.84
%
  
2.77
%
  
2.87
%
Net interest margin
    
3.67
%
  
3.58
%
  
3.44
%
  
3.62
%

 
 
 

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

###