Frederick County Bancorp, the parent company for Frederick County Bank in Maryland, commenced operations in 2001 and conducts full service commercial banking services through four offices. The company has posted positive quarterly earnings continuously since 2002, and the latest earnings statement was no exception.

The company announced today that, for the quarter ended December 31, 2009, it recorded net income of $505,000 and diluted earnings per share of $0.34. This compares to net income of $154,000 and diluted earnings per share of $0.10 recorded for the fourth quarter of 2008. Earnings for the fourth quarter of 2009 were impacted by a provision for loan losses of $300,000 and securities gains in the amount of $118,000.

Frederick County Bancorp earned $1.05 million, with diluted earnings per share of $0.71, for the full year of 2009 as compared to $1.04 million in earnings, with diluted earnings per share of $0.69, for the same period in 2008. Full year 2009 earnings included a provision for loan losses of $1.18 million and securities gains in the amount of $235,000. The company has seen a slight decrease in its ratio of nonperforming assets to total assets, 0.56% at December 31, 2009, as compared to 0.61% at December 31, 2008. There was also a modest increase in its ratio of net charge-offs to average loans.

In 2009, the company maintained relatively flat asset, deposit and loan growth which reflected management’s determination to limit balance sheet growth. This strengthened its capital and liquidity positions during this period of continued economic weakness. Frederick County Bank is currently well capitalized with capital ratios of 13.06% and 11.81% for ‘total risk-based capital’ and Tier 1 Capital. Their liquidity position remains strong with $10.7 million federal funds sold and other overnight investments, which equates to 4.1% of assets.