Frederick County Bancorp, Inc. Reports Results for the Second Quarter 2015

FREDERICK, Md., July 15, 2015

The slight decrease in quarterly earnings was due primarily to an increase in total noninterest expense to $2.67 million in the second quarter of 2015 as compared to $2.4 million in the second quarter of 2014, which offset increases in both net interest income to $2.9 million in the second quarter of 2015 from $2.8 million in the second quarter of 2014 and in total noninterest income to $248 thousand in the second quarter of 2015 from $189 thousand in the second quarter of 2014. The increase in total noninterest expense was due primarily to increases in salaries and employee benefits of $94 thousand, occupancy and equipment expenses of $70 thousand, and other operating expenses of $83 thousand. 

The decrease in year-to-date earnings was due primarily to an increase in total noninterest expense to $5.3 million in the first half of 2015 as compared to $4.7 million in the first half of 2014, which offset increases in both net interest income to $5.7 million in the second quarter of 2015 from $5.6 million in the second quarter of 2014 and in total noninterest income to $776 thousand in the second quarter of 2015 from $411 thousand in the second quarter of 2014. The increase in total noninterest expense was due primarily to increases in salaries and employee benefits of $340 thousand, occupancy and equipment expenses of $118 thousand, and other operating expenses of $159 thousand.  The increase in total noninterest income was due primarily to securities gains of $69 thousand and gains on sale of loans of $243 thousand, both recorded in the first quarter of 2015.

The ratio of the allowance for loan losses to total loans stood at 1.16% and 1.32% as of June 30, 2015 and 2014, respectively.  Total nonperforming assets stood at $4.4 million and $5.8 million at June 30, 2015 and 2014, respectively, and at $5.6 million at December 31, 2014.  The corresponding nonperforming assets to total assets ratios were 1.24% and 1.74% as of June 30, 2015 and 2014, respectively, and 1.63% at December 31, 2014. 

The Company also reported that, as of June 30, 2015, assets stood at $356.5 million, with total deposits of $302.9 million and gross loans of $267.8 million, representing increases of 3.9%, 6.3%, and 2.0%, respectively, compared to December 31, 2014. 

Frederick County Bank is headquartered in Frederick, Maryland, and conducts full service commercial banking services through five bank centers located in Frederick County, Maryland.