Frederick County Bancorp, Inc. Reports Results for the Second Quarter 2014

FREDERICK, Md., July 15, 2014

The decrease in quarterly earnings was due primarily to an increase in total noninterest expense to $2.4 million in the second quarter of 2014 as compared to $2.2 million in the second quarter of 2013, along with a loss of $37 thousand on the sale of foreclosed property that occurred in 2014, whereas no losses on the sale of foreclosed property were recorded in 2013.  The increase in noninterest expenses was due primarily to increases in FDIC insurance costs and consulting expenses of $78 thousand and $33 thousand, respectively. 

The decrease in year-to-date earnings was due primarily to an increase in total noninterest expense to $4.7 million in the first half of 2014 as compared to $4.4 million in the first half of 2013, which offset the increase in net interest income to $5.6 million in the first six months of 2014 from $5.3 million for the same period in 2013.  The loss of $37 thousand on the sale of foreclosed property that occurred in 2014, as compared to a $28 thousand gain on the sale of foreclosed property recorded in 2013, also contributed to the decline in earnings year-to-date.  The increase in noninterest expenses was due primarily to increases in FDIC insurance costs and consulting expenses of $75 thousand and $52 thousand, respectively. 

The ratio of the allowance for loan losses to total loans stood at 1.32% and 1.57% as of June 30, 2014 and 2013, respectively.  Nonperforming assets stood at $5.8 million and $8.4 million at June 30, 2014 and 2013, respectively, and at $5.3 million at December 31, 2013.  The corresponding nonperforming assets to total assets ratios were 1.74% and 2.59% as of June 30, 2013 and 2012, respectively, and 1.67% at December 31, 2013. 

The Company also reported that, as of June 30, 2014, assets stood at $331.5 million, with total deposits of $274.4 million and gross loans of $256.7 million, representing increases of 4.2%, 2.8%, and 1.1%, respectively, compared to December 31, 2013. 

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