FREDERICK COUNTY BANCORP, INC. ANNOUNCES DIVIDEND Q3 2019

October 24, 2019
FREDERICK COUNTY BANCORP, INC. ANNOUNCES DIVIDEND Q3 2019

FREDERICK COUNTY BANCORP, INC.

NEWS RELEASE

Frederick County Bancorp, Inc. Reports Results for the Third Quarter 2019

October 22, 2019, Frederick, MD --- Frederick County Bancorp, Inc. (the “Company”) (OTCPink Marketplace: FCBI), the parent company for Frederick County Bank (“FCB”), announced today that, for the quarter ended September 30, 2019, the Company recorded net income of $511 thousand and diluted earnings per share of $0.32, as compared to net income of $536 thousand and diluted earnings per share of $0.34 recorded for the third quarter of 2018.  The Company earned $1.5 million and diluted earnings per share of $0.97 for the nine months ended September 30, 2019, as compared to $2.2 million in earnings and diluted earnings per share of $1.43 for the same period in 2018. 

The decrease in quarterly earnings was due primarily to total interest expense increasing by $390 thousand from $718 thousand in 2018 to $1.1 million in the third quarter of 2019, along with $354 thousand in nondeductible merger-related expenses incurred during the third quarter of 2019.  These additional expenses were off set by an increase in noninterest income of $341 thousand in the third quarter compared to the same period in 2018.  This increase was due to a $187 thousand increase in gains on the sale of loans held for sale and an $88 thousand increase in the change in the fair value of equity securities.  Adjusted net income was $865 thousand for the third quarter of 2019.  This excludes $354 thousand of merger-related expenses incurred related to the proposed merger with ACNB Corporation.

The decrease in year-to-date earnings was due primarily to a negative provision for loan losses of $512 thousand which was recognized in 2018 compared to no provision in 2019.  In addition, total interest expense increased from $2.0 million in 2018 to $3.1 million in the first nine months of 2019.  This exceeded the $763 thousand increase in interest income recognized in the first nine months of 2019, which was $13.4 million compared to $12.6 million in 2018.  Noninterest income increased $367 to $1.5 million as of September 30, 2019 compared to $1.1 million as of September 30, 2018.  Adjusted net income was $1.9 million for the nine months ended September 30, 2019.  This excludes $354 thousand of merger-related expenses incurred related to the proposed merger with ACNB Corporation.

The ratio of the allowance for loan losses to total loans stood at 0.98% and 1.01% as of September 30, 2019 and 2018, respectively, and at 1.01% as of December 31, 2018.  Total nonperforming assets stood at $3.4 million and $3.7 million at September 30, 2019 and 2018, respectively, and at $2.1 million at December 31, 2018.  The increase in the nonperforming assets as of September 30, 2019 from year end 2018 primarily relates to one commercial loan relationship.  The corresponding nonperforming assets to total assets ratios were 0.75% and 0.87% as of September 30, 2019 and 2018, respectively, and 0.50% at December 31, 2018. 

The Company also reported that, as of September 30, 2019, assets stood at $452.7 million, with total deposits of $381.2 million and gross loans of $345.0 million, representing increases of 6.9%, 6.6%, and 4.7%, respectively, compared to September 30, 2018.  Total shareholders’ equity at September 30, 2019 was $37.8 million, an increase of $2.3 million from December 31, 2018.  The increase primarily resulted from earnings of $1.5 million, offset by dividends of $380 thousand, an increase in additional paid-in capital of $727 thousand, which was from the exercise of stock options, and an increase in the fair value of available-for-sale securities of $394 thousand from December 31, 2018.  On a per share basis, book value increased by $0.51 for 2019 to $23.57 per share at September 30, 2019 from $23.06 per share at December 31, 2018.  The dividends declared per share decreased to $0.24 per share for the nine month period ended September 30, 2019 as compared to $0.26 for the same period in 2018, due to a special $0.02 dividend paid in addition to the regular $0.08 dividend on August 15, 2018.   

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

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Download the full 2019 Q3 Press Release