Carrollton Bancorp Reports a 14% Increase in First Quarter Net Income and Also Announces an $0.08 Quarterly Dividend

BALTIMORE--(Business Wire)--
Carrollton Bancorp, (NASDAQ:CRRB) the parent company of Carrollton Bank,
announced today net income for the first quarter of 2009 of $488,000 compared to
$429,000 for the first quarter of 2008, a 14% increase. Net income available to
common shareholders for the first quarter of 2009 was $428,000 ($0.17 per
diluted share) compared to $429,000 ($0.16 per diluted share) for the first
quarter of 2008.

Carrollton Bancorp also announced a quarterly dividend of $0.08 per share,
payable June 1, 2009 to shareholders of record on May 15, 2009.

Total assets for the period ended March 31, 2009 compared to March 31, 2008
reflect a 14% increase to $415.2 million. The increase was the result of loans
increasing $46.8 million or 17.36%. Almost all categories of loans increased;
however, the largest increase was a result of loans held for sale increasing
$18.4 million or 145%. Total deposits increased $34.1 million or 12% and Federal
Home Loan Bank advances increased $15.9 million or 45%. The increases were used
to fund loan growth including loans held for sale. During the same period,
stockholders` equity increased 7% or $2.4 million to $35.6 million or 8.57% of
total assets. The increase was due primarily to the $9.2 million raised through
the sale of Series A Preferred Stock, effective February 13, 2009, net income of
$488,000, all of which was partially offset by dividends paid of $1.1 million,
repurchase of approximately 76,539 shares of stock of the Company for $965,000,
and a decrease in accumulated other comprehensive income of $5.6 million. The
decrease in accumulated other comprehensive income was due to the decrease in
the fair market value of the available for sale securities and the decrease in
the fair market value of the effective cash flow hedge.

Mr. Robert A. Altieri, President and Chief Executive Officer, stated that "2009
will be a year to protect the Company`s balance sheet and continue to take an
aggressive approach to non-performing assets. The economic turmoil which
questions the strength and stability of financial institutions is well
documented; however, our Company is well capitalized with adequate liquidity to
continue the methodical growth. We are not without loan issues; but, we have
identified them and are continuously working to protect our balance sheet."

The Company recorded a provision for loan losses of $165,000 in the first
quarter of 2009 and $99,000 in the first quarter of 2008. The allowance for loan
losses represented 1.17% of outstanding loans as of March 31, 2009.
Non-performing assets totaled $11.0 million at March 31, 2009 compared to $9.8
million at December 31, 2008 and $6.2 million at March 31, 2008. The increase
over the fourth quarter of 2008 was due to commercial real estate as well as
consumer loans increasing while being partially offset by payments on impaired
loans.

For the quarter ended March 31, 2009 and 2008, net interest income was $3.4
million. The $26,000 increase in net interest income from the $58.1 million
increase in average interest earning assets was substantially offset by the 55
basis point decrease in the Company`s net interest margin (NIM) to 3.63% for the
quarter ended March 31, 2009 from 4.18% in the comparable quarter in 2008. The
reduction in NIM was during a time when the Federal Open Market Committee (FOMC)
reduced rates by 3.50%.

Non-interest income continues to be a large contributor to the Company's
profitability. The majority of the Company`s non interest income is derived from
three sources: the Bank`s Electronic Banking Division, Carrollton Mortgage
Services, Inc. (CMSI), and Carrollton Financial Services, Inc. Non-interest
income was $1.8 million for the three months ended March 31, 2009, an increase
of $156,000 or 9.4%, compared to the corresponding period in 2008. This increase
was due to the $381,000 increase in mortgage banking fees and gains and was
partially offset by the $10,000 decrease in service charges, $87,000 decrease in
brokerage commissions, $43,000 decrease in Electronic Banking and the $80,000
gain related to the Visa, Inc. initial public offering that occurred in March
2008.

Mr. Altieri added, "The low mortgage interest rates which are causing a
refinance boom have significantly increased the Company`s non-interest income in
the first quarter. We expect refinances to slow down in the latter part of the
second quarter."

Non-interest expenses were $4.4 million in the first quarter of 2009 and 2008.
Salaries increased $113,000 due to normal salary increases and increased
commissions paid primarily to the loan originators in the mortgage subsidiary
(CMSI). Because of the low interest rates, loan originations due to refinancing
of residential loans increased significantly in 2009, compared to the same
period in 2008. Professional fees increased $45,000 due to an increase in
consulting fees and legal fees related to delinquencies and foreclosures. Other
operating expenses increased $160,000 due to the $116,000 increase in the FDIC
insurance premiums due to the FDIC raising premiums, deposits increasing $34.1
million and the one time assessment credit fully utilized as of December 31,
2008. Also, OREO expenses increased $28,000 and various loan expenses, i.e.
appraisals, credit reports, and fees related to collection of loans increased
$35,000. These increases were partially offset by lease buyout - branch
decreased $368,000 due to the charge recorded in 2008 for closing the Wilkens
drive-thru.

Carrollton Bancorp is the parent company of Carrollton Bank, a commercial bank
serving the deposit and financing needs of both consumers and businesses through
a system of 10 branch offices in central Maryland. The Company provides
brokerage services through Carrollton Financial Services, Inc., and mortgage
services through Carrollton Mortgage Services, Inc., both wholly owned
subsidiaries of the Bank.

This release contains forward-looking statements within the meaning of and
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. A forward-looking statement encompasses any estimate,
prediction, opinion or statement of belief contained in this release and the
underlying management assumptions. Forward-looking statements are based on
current expectations and assessments of potential developments affecting market
conditions, interest rates and other economic conditions, and results may
ultimately vary from the statements made in this release.

A summary of financial information follows. For additional information, contact
James M. Uveges, Chief Financial Officer, (410) 536-7308, or visit the Company`s
Internet site at www.carrolltonbank.com.

FINANCIAL HIGHLIGHTS
Carrollton Bancorp
Three Months Ended March 31,
2009 2008 %Change
(unaudited) (unaudited)
Results of Operations
Net interest income $3,428,966 $3,402,775 1 %
Provision for loan losses 165,000 99,000 67 %
Noninterest income 1,815,825 1,660,186 9 %
Noninterest expenses 4,370,472 4,417,019 -1 %
Income taxes 220,994 117,993 87 %
Net income 488,325 428,949 14 %
Net income available to common shareholders 428,263 428,949 0 %

Per Share
Diluted net income per common share 0.17 0.16 6 %
Dividends declared per common share 0.08 0.12 -33 %
Book value per common share 10.45 12.57 -17 %
Common stock closing price 5.12 13.00 -61 %

At March 31
Short term investments $6,076,881 $1,667,264 264 %
Investment securities 67,059,778 67,289,016 0 %
Gross loans (net of unearned income) (a) 316,616,962 269,789,415 17 %
Earning assets 393,476,721 340,980,395 15 %
Total assets 415,152,849 363,824,797 14 %
Total deposits 311,841,358 277,771,644 12 %
Shareholders' equity 35,574,822 33,128,693 7 %

Common shares outstanding 2,564,988 2,635,377

Average Balances
Short term investments $5,443,577 $3,520,595 55 %
Investment securities (b) 73,050,901 58,484,820 25 %
Gross loans (net of unearned income) (a) 308,714,272 268,915,342 15 %
Earning assets 390,807,529 332,694,325 17 %
Total assets 405,355,629 354,349,685 14 %
Total deposits 297,335,154 278,987,944 7 %
Shareholders' equity 31,714,309 34,689,020 -9 %

Earnings Ratios
Return on average total assets 0.49 % 0.49 %
Return on average common equity 5.48 % 4.97 %
Net interest margin 3.63 % 4.18 %

Credit Ratios
Nonperforming assets as a percent of period-end loans and foreclosed 3.83 % 2.42 %
real estate
Allowance to total loans 1.17 % 1.27 %
Net loan losses to average loans 0.00 % 0.04 %

Capital Ratios (period end)
Shareholders' equity to total assets 8.57 % 9.11 %
Leverage capital 9.71 % 9.09 %
Tier 1 risk-based capital 12.28 % 11.39 %
Total risk-based capital 13.32 % 12.64 %

(a) Includes loans held for sale
(b) Excludes market value adjustment on securities available for sale

Carrollton Bancorp
James M. Uveges
Chief Financial Officer
410-536-7308

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