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Frederick County Bancorp, Inc. Reports Results for the Fourth Quarter 2018

January 18, 2019

FREDERICK, Md.--(BUSINESS WIRE)--Jan 18, 2019--Frederick County Bancorp, Inc. (the “Company”) (OTC Pink Marketplace: FCBI), the parent company for Frederick County Bank (“FCB”), announced today that, for the quarter ended December 31, 2018, the Company recorded net income of $712 thousand and diluted earnings per share of $0.45, as compared to net income of $341 thousand and diluted earnings per share of $0.22 recorded for the fourth quarter of 2017. The Company earned $3.0 million with diluted earnings per share of $1.88 for the year ended on December 31, 2018, as compared to $2.1 million in earnings and diluted earnings per share of $1.32 for the same period in 2017.

The increase in quarterly earnings was due primarily to an increase in net interest income of $269 thousand in the fourth quarter of 2018 as compared to the fourth quarter of 2017. A provision for loan losses in the amount of $70 thousand was recorded in the fourth quarter of 2018, while a provision for loan losses of $281 thousand was recognized in the same quarter of 2017. The provision for income taxes for the fourth quarter of 2018 decreased by $284 thousand as compared to the same period of 2017, as a result of the reduction of the Company’s federal income tax rate in 2018 from 34% to 21%, and the absence in 2018 of the one-time adjustment of deferred tax assets required in the fourth quarter of 2017, offset by a higher level of pre-tax income.

The increase in full-year earnings was due primarily to an increase in net interest income of $932 thousand in 2018 as compared to the same period in 2017. A negative provision for loan losses in the amount of $442 thousand was recorded in the full year of 2018, while a provision for loan losses of $645 thousand was recognized in same period in 2017, for a year on year decrease of $1.1 million in the provision for loan losses. The provision for income taxes decreased by $401 thousand in the full year of 2018 as compared to the full year of 2017 as a result of the reduction of the Company’s federal income tax rate in 2018 and the absence in 2018 of the one-time adjustment of deferred tax assets, offset by a higher level of pre-tax income.

The ratio of the allowance for loan losses to total loans stood at 1.01% and 1.01% as of December 31, 2018 and 2017, respectively. Total nonperforming assets stood at $2.1 million and $5.4 million at December 31, 2018 and 2017, respectively. The corresponding nonperforming assets to total assets ratios were 0.50% and 1.32% as of December 31, 2018 and 2017, respectively.

The Company also reported that, as of December 31, 2018, assets stood at $418.6 million, with total deposits of $352.4 million and gross loans of $339.5 million, representing increases of 3.2%, 6.1%, and 5.4%, respectively, compared to December 31, 2017. Total shareholders’ equity at December 31, 2018 was $35.5 million, an increase of $2.9 million from December 31, 2017, primarily the result of retained earnings. On a per share basis, book value increased by $1.21 for 2018 to $23.06 per share at December 31, 2018 from $21.85 per share at December 31, 2017. The dividends declared per share were $0.34 for the twelve month period ended December 31, 2018 as compared to $0.30 per share for the same period in 2017. On September 24, 2018 and June 25, 2018, the Board declared quarterly dividends of $0.10 per share, an increase of $0.02 per share relative to prior quarters.

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

(1) Includes dividends of $0.08 per share declared on both October 2, 2017 and December 18, 2017.

(1) Includes dividends of $0.08 per share declared on both October 2, 2017 and December 18, 2017.

Distribution of Assets, Liabilities and Shareholders’ Equity; Interest Rates and Interest Differential

The following tables show average balances of asset and liability categories, interest income and interest expense, and average yields and rates for the periods indicated.

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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190118005279/en/

CONTACT: Cathy S. Alexander, SVP, Retail Banking Group

(240) 529-1529

KEYWORD: UNITED STATES NORTH AMERICA DISTRICT OF COLUMBIA MARYLAND

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Frederick County Bancorp, Inc.

Copyright Business Wire 2019.

PUB: 01/18/2019 09:55 AM/DISC: 01/18/2019 09:55 AM

http://www.businesswire.com/news/home/20190118005279/en

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