EX-99.1 2 v162504_ex99-1.htm
FREDERICK COUNTY
BANCORP, INC.

PRESS RELEASE

Frederick County Bancorp, Inc. Reports Results for the Third Quarter 2009

October 9, 2009, 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, 2009, the Company recorded net income of $259,000 and diluted earnings per share of $0.17, as compared to net income of $315,000 and diluted earnings per share of $0.21 recorded for the third quarter of 2008.  The Company earned $543,000 with diluted earnings per share of $0.37 for the first nine months of 2009 as compared to $884,000 in earnings and diluted earnings per share of $0.59 for the same period in 2008. The decline in earnings was due primarily to an increase in the provision for loan losses in 2009 to $875,000 from the $460,000 recorded in the nine months ended September 30, 2008.  The ratio of the allowance for loan losses to total loans stood at 1.52% and 1.28% as of September 30, 2009 and 2008, respectively.  Nonperforming assets stood at $1.31 million and $1.84 million at September 30, 2009 and 2008, respectively, and at $1.56 million at December 31, 2008.  The corresponding nonperforming assets to total assets ratios were 0.49% and 0.69% as of September 30, 2009 and 2008, respectively, and 0.61% as of December 31, 2008.

The Company also reported that, as of September 30, 2009, assets stood at $266.8 million, with total deposits of $227.8 million and gross loans of $211.2 million, representing increases of 2.2% and 2.0% and a decrease of 0.2% respectively, compared to the third quarter of 2008.  The Company’s tier 1 capital to risk-weighted assets and total capital to risk-weighted assets ratios as of September 30, 2009 were 11.88% and 13.13%, respectively, with regulatory minimum ratios for capital adequacy purposes of 4.00% and 8.00%, respectively.

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.  Frederick County Bank maintains a solid Four Star Rating from Bankrate.com as of June 30, 2009 and the top Five Star Rating from Bauer Financial, Inc., as of June 30, 2009.

   
Sept. 30,
    
Sept. 30,
    
December 31,
  
    
2009
    
2008
    
2008
  
(dollars in thousands)
  
(unaudited)
    
(unaudited)
    
(audited)
  
Total assets
   $ 266,807     $ 260,994     $ 254,562  
Cash and due from banks
     888       3,393       808  
Federal funds sold and other overnight investments
     25,817       18,406       15,247  
Investment securities - available for sale
     22,752       20,470       20,040  
Restricted stock
     1,566       1,599       1,599  
Loans, net
     207,940       208,817       208,720  
Deposits
     227,786       223,260       216,883  
Short-term borrowings
     500       -       -  
Long-term borrowings
     10,000       10,000       10,000  
Junior subordinated debentures
     6,186       6,186       6,186  
Shareholders' equity
     21,403       20,299       20,612  
 
 
 
 
 
SELECTED FINANCIAL DATA
 
   
Three Months Ended
    
Nine Months Ended
  
    
September 30,
    
September 30,
  
    
2009
    
2008
    
2009
    
2008
  
(dollars in thousands, except per share data)
  
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
SUMMARY OF OPERATING RESULTS:
                              
Interest income
   $ 3,508     $ 3,900     $ 10,440     $ 11,755  
Interest expense
     1,308       1,681       4,153       5,483  
Net interest income
     2,200       2,219       6,287       6,272  
Provision for loan losses
     275       220       875       460  
Net interest income after provision for loan losses
     1,925       1,999       5,412       5,812  
Securities gains
     -       26       117       26  
                                 
Gain (loss) on sale of foreclosed properties
     -       -       (32 )     15  
Noninterest income (excluding gains (losses)
     148       127       422       392  
Noninterest expense
     1,693       1,684       5,158       4,980  
Income before provision for income taxes
     380       468       761       1,265  
Provision for income taxes
     121       153       218       381  
Net income
     259       315       543       884  
                                 
PER COMMON SHARE DATA:
                                
Basic earnings per share
   $ 0.18     $ 0.22     $ 0.37     $ 0.61  
Diluted earnings per share
   $ 0.17     $ 0.21     $ 0.37     $ 0.59  
Basic weighted average number of shares outstanding
     1,460,802       1,460,674       1,460,835       1,460,626  
Diluted weighted average number of shares outstanding
     1,481,786       1,502,443       1,475,909       1,506,352  
Common shares outstanding
     1,461,802       1,460,802       1,461,802       1,460,802  
Book value per share
   $ 14.64     $ 13.90     $ 14.64     $ 13.90  
                                 
SELECTED UNAUDITED FINANCIAL RATIOS:
                                
Return on average assets
     0.39 %     0.49 %     0.28 %     0.45 %
Return on average equity
     4.86 %     6.25 %     3.43 %     5.84 %
Allowance for loan losses to total loans
     1.52 %     1.28 %     1.52 %     1.28 %
Nonperforming assets to total assets
     0.49 %     0.69 %     0.49 %     0.69 %
Ratio of net charge-offs to average loans
     0.05 %     0.05 %     0.37 %     0.19 %
Average equity to average assets
     8.12 %     7.80 %     8.17 %     7.79 %
Tier 1 capital to risk-weighted assets
     11.88 %     11.20 %     11.88 %     11.20 %
Total capital to risk-weighted assets
     13.13 %     12.35 %     13.13 %     12.35 %
                                 
Weighted average yield/rate on:
                                
Loans
     6.39 %     6.62 %     6.26 %     6.71 %
Interest-earning assets
     5.57 %     6.31 %     5.59 %     6.36 %
Interest-bearing liabilities
     2.58 %     3.30 %     2.76 %     3.59 %
Net interest spread
     2.99 %     3.00 %     2.84 %     2.77 %
Net interest margin
     3.52 %     3.63 %     3.40 %     3.44 %

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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