FREDERICK, Md., Jan. 16 /PRNewswire-FirstCall/ -- Frederick County Bancorp, Inc. (the "Company") (OTC Bulletin Board: FCBI), the parent company for Frederick County Bank (the "Bank"), announced today that, for the quarter ended December 31, 2007, the Company recorded net income of $494,000 and diluted earnings per share of $0.33, as compared to net income of $460,000 and diluted earnings per share of $0.30 recorded for the fourth quarter of 2006. The Company earned $1.56 million with diluted earnings per share of $1.03 for the full year of 2007 as compared to the $1.92 million in earnings and diluted earnings per share of $1.26 for the full year of 2006. The decline in year-to-date net income in 2007 as compared to 2006, and the decline in quarterly income, exclusive of insurance recoveries included in income, was expected and continues to reflect expenses related to the additional operating costs for the new Walkersville and Crestwood Branch Offices which both opened in September 2006. Continued net interest margin compression also negatively affected net income.
The Company's fourth quarter earnings were impacted by two noteworthy events. First, a gain from insurance proceeds in the amount of $230,000 ($141,000 after taxes), related to the Antietam Branch loss due to a fire in the first quarter of 2007, was recorded during the quarter. Second, the Bank recorded a higher than usual provision for loan losses in recognition of loan losses related to continued weakness in the residential real estate market and risks associated with deteriorating economic conditions in general. Although the Bank has a very small portfolio of conservatively underwritten residential mortgages and has no high-risk mortgage-backed securities in its investment portfolio, its commercial loan portfolio does include credits extended to builders, sub-contractors and individuals whose income is derived from residential real estate construction and sales. Consequently, the provision for loan losses has been increased to address weaknesses in the Bank's commercial and consumer loan portfolios.
The Company also reported that, as of December 31, 2007, assets stood at $256.0 million, with deposits of $219.2 million and loans of $209.0 million, representing increases of 9.0%, 4.7% and 20.2%, respectively, over the fourth quarter of 2006.
Frederick County Bank commenced operations in 2001. The Bank is headquartered in Frederick, Maryland, and conducts full service commercial banking services through four offices, three of which are in the City of Frederick and one office located in Walkersville, Maryland.
