UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 20, 2016
CARROLL BANCORP, INC.
(Exact name of registrant as specified in its charter)
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Maryland |
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000-54422 |
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27-5463184 |
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(State or other jurisdiction |
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(Commission File Number) |
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(IRS Employer |
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of incorporation) |
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Identification No.) |
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1321 Liberty Road Sykesville, Maryland |
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21784 | ||||
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(Address of principal executive offices) |
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(Zip Code) | ||||
Registrant’s telephone number, including area code: (410) 795-1900
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition.
On April 20, 2016, Carroll Bancorp, Inc. issued a press release relating to its results of operations for the three months ended March 31, 2016. A copy of the release is furnished herewith as Exhibit 99.1.
The information in this Item 2.02 and the related information in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in any such filing.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated April 20, 2016
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Date: April 21, 2016 |
CARROLL BANCORP, INC.
/s/ Michael J. Gallina Michael J. Gallina Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: Russell J. Grimes
President and Chief Executive Officer
(410) 795-1900
Carroll Bancorp, Inc. Announces First Quarter Results
SYKESVILLE, MD – April 20, 2016 – Carroll Bancorp, Inc. (the “Company”) (OTCQB: CROL), the parent company of Carroll Community Bank (the “Bank”), today announced quarterly net income of $70,000, or $0.07 per diluted common share, for the quarter ended March 31, 2016 compared to $55,000, or $0.07 per diluted common share, for the quarter ended March 31, 2015.
Total assets grew to $155.1 million at March 31, 2016, an increase of $3.8 million and $34.9 million, respectively compared to December 31, 2015 and March 31, 2015. Loans decreased slightly, by $281,000, as residential mortgage loans declined by $3.9 million, mostly offset by commercial loans increasing by $3.8 million. Total loan originations for the period amounted to $6.2 million during the quarter ending March 31, 2016. Deposits decreased by $1.2 million during the three months ending March 31, 2016. The decrease was attributable to a reduction in the Bank’s reliance on brokered deposits as brokered deposits decreased by $8.2 million while core deposits increased by $7.0 million. In addition, non-interest and interest bearing checking balances increased by $3.0 million to $19.8 million, or 17.9%, at March 31, 2016 compared to December 31, 2015. We continue to focus our efforts on growing our core deposit base of relationship based deposit accounts.
Net interest income was $1.2 million for the three months ended March 31, 2016, an increase of 21.5% compared to the same period last year, as a $290,000 increase in interest income was partially offset by a $70,000 increase in interest expense. Noninterest income increased by $36,000 for the three months ended March 31, 2016 compared to the same period in 2015, primarily due to implementation of a new secondary market loan program with the Federal Home Loan Bank resulting in gains of $28,000 during the quarter ending March 31, 2016. Noninterest expenses increased by $238,000 for the three months ended March 31, 2016 compared to the same period in 2015. This was a result of increased operating expenses related to the personnel and facilities infrastructure put in place to expand our market into the Washington Metropolitan market, along with supplementing our Carroll County branch locations with experienced staff made available following the acquisition of Susquehanna Bank by BB&T in 2015.
Nonperforming loans and assets were $143,000 and $342,000, respectively at March 31, 2016 compared to $0 and $199,000 at December 31, 2015. Our past due loans remained flat at $1.7 million for March 31, 2016 and December 31, 2015.
“We are pleased with our progress in developing business in the Washington Metropolitan market and our Bethesda branch continues to experience strong growth in loan originations and deposit balances and accounts. In addition, our Carroll County market has experienced strong deposit growth resulting from the addition of our new management personnel as a result of the Susquehanna-BB&T merger.” stated Russell J. Grimes, President and CEO of Carroll Bancorp, Inc.
Carroll Bancorp, Inc.’s common stock trades on the OTC Markets (www.otcmarkets.com) under the symbol “CROL.” For more information, visit our website at www.carrollcobank.com or contact Russell Grimes, President & CEO, at 410-795-1900.
About Carroll Bancorp, Inc. and Carroll Community Bank
Carroll Bancorp, Inc. is the holding company of Carroll Community Bank. Carroll Community Bank, originally founded in 1870, is a state-chartered commercial bank with branch offices in Eldersburg, Westminster and Bethesda, Maryland. Carroll Community Bank operates as a community-oriented institution, offering a variety of loan and deposit products and serving the financial needs of its local community.
Financial Highlights
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At March 31, |
At December 31, |
At March 31, |
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(Dollars in thousands) |
2016 |
2015 |
2015 |
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Selected Financial Condition Data: |
(unaudited) |
(audited) |
(unaudited) |
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Total assets |
$ | 155,139 | $ | 151,337 | $ | 120,236 | ||||||
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Total loans |
129,053 | 129,334 | 98,667 | |||||||||
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Allowance for loan losses |
938 | 901 | 761 | |||||||||
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Deposits |
120,869 | 122,101 | 94,678 | |||||||||
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Federal Home Loan Bank advances |
17,500 | 12,500 | 9,500 | |||||||||
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Total stockholders' equity |
16,407 | 16,293 | 15,802 | |||||||||
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Asset Quality Ratios: |
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Allowance for loan losses to total loans |
0.73 | % | 0.70 | % | 0.77 | % | ||||||
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Nonperforming loans to total loans |
0.11 | % | 0.00 | % | 0.15 | % | ||||||
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Nonperforming assets to total assets |
0.22 | % | 0.13 | % | 0.17 | % | ||||||
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Capital Ratios (bank level): |
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Total capital to risk-weighted assets |
15.82 | % | 15.98 | % | 19.13 | % | ||||||
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Tier 1 capital to risk weighted assets |
14.93 | % | 15.11 | % | 18.23 | % | ||||||
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Tier 1 capital to average assets |
10.28 | % | 9.95 | % | 13.00 | % | ||||||
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Tangible equity to tangible assets |
10.19 | % | 10.37 | % | 12.83 | % | ||||||
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(unaudited) |
For the Three Months Ended March 31, |
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( Dollars in thousands, except per share data) |
2016 |
2015 |
Variance |
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Selected Operating Data: |
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Interest and dividend income |
$ | 1,470 | $ | 1,180 | $ | 290 | ||||||
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Interest expense |
226 | 156 | 70 | |||||||||
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Net interest income |
1,244 | 1,024 | 220 | |||||||||
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Provision for loan losses |
30 | 29 | 1 | |||||||||
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Net interest income after provision for loan losses |
1,214 | 995 | 219 | |||||||||
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Noninterest income |
80 | 44 | 36 | |||||||||
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Noninterest expense |
1,194 | 956 | 238 | |||||||||
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Income before income tax expense |
100 | 83 | 17 | |||||||||
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Income tax expense |
30 | 28 | 2 | |||||||||
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Net income |
$ | 70 | $ | 55 | $ | 15 | ||||||
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Basic earnings per share |
$ | 0.07 | $ | 0.07 | $ | - | ||||||
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Diluted earnings per share |
$ | 0.07 | $ | 0.07 | $ | - | ||||||
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Select Financial Ratios (unaudited): |
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Return on average assets |
0.18 | % | 0.19 | % | ||||||||
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Return on average equity |
1.71 | % | 1.53 | % | ||||||||
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Interest rate spread |
3.30 | % | 3.59 | % | ||||||||
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Net interest margin |
3.40 | % | 3.69 | % | ||||||||
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Efficiency ratio |
90.21 | % | 89.54 | % | ||||||||
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Noninterest expense to average assets |
3.13 | % | 3.28 | % | ||||||||
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Average interest-earning assets to average interest-bearing liabilities |
115.33 | % | 117.51 | % | ||||||||