Frederick County Bancorp, Inc. Reports Results for the Second Quarter 2009

FREDERICK, Md., July 13 /PRNewswire-FirstCall/ -- Frederick County Bancorp,
Inc. (the "Company") (OTC Bulletin Board: FCBI), the parent company for
Frederick County Bank, announced today that, for the quarter ended June 30,
2009, the Company recorded net income of $239,000 and diluted earnings per
share of $0.16, as compared to net income of $270,000 and diluted earnings per
share of $0.18 recorded for the second quarter of 2008. During the second
quarter of 2009, the Company realized securities gains of $117,000. The
Company's decision to sell securities and realize gains during the quarter was
influenced, in part, by the FDIC's special assessment in the amount of
$115,000. The Company earned $284,000 with diluted earnings per share of
$0.19 for the first half of 2009 as compared to $569,000 in earnings and
diluted earnings per share of $0.38 for the same period in 2008. The decline
in earnings was due primarily to an increase in the provision for loan losses
in 2009 to $600,000 from the $240,000 recorded in the second quarter of 2008.
The increase in the provision followed an increase in net loan charge-offs
during the first quarter of 2009, primarily due to two loan relationships,
whereas, there were no charge-offs in the second quarter of 2009. Management
recognizes that the potential for continued economic weakness during 2009
necessitates a higher level of reserves. While the Company does not engage in
high risk lending and has no concentrations of credit to any one industry, its
loan portfolio quality reflects prevailing local economic conditions. The
ratio of the allowance for loan losses to total loans stood at 1.47% and 1.23%
as of June 30, 2009 and 2008, respectively. Nonperforming assets stood at
$1.05 million and $1.84 million at June 30, 2009 and 2008, respectively, and
at $1.56 million at December 31, 2008. The corresponding nonperforming assets
to total assets ratios were 0.41% and 0.70% as of June 30, 2009 and 2008,
respectively, and 0.61% as of December 31, 2008.

The Company also reported that, as of June 30, 2009, assets stood at $258.2
million, with total deposits of $220.2 million and gross loans of $206.9
million, representing decreases of 1.6%, 1.7% and 1.4% respectively, compared
to the first half of 2008. The Company's slight contraction in asset, deposit
and loan totals reflects management's ongoing decision to limit balance sheet
growth, thereby strengthening its capital position in anticipation of
continued economic uncertainty.

Management believes that the Company's performance for the quarter ended June
30, 2009 reflects the results of deliberate action taken to control expenses,
despite the FDIC special assessment, improve net interest margin and mitigate
potential loan losses. "This has been a challenging period for financial
institutions. Our response was to strengthen the Bank's balance sheet by
conserving capital, increasing liquidity, and maintaining a conservative
lending philosophy," said Martin S. Lapera, President and Chief Executive
Officer of Frederick County Bank. "Our capital and liquidity positions are
stronger than ever and compare very favorably to our peer group of banks. We
are now positioned to seek opportunities that will put us back on a path of
growth and increased profitability," continued Mr. Lapera. The Company's Tier
1 capital to risk-weighted assets and Total capital to risk-weighted assets
ratios as of June 30, 2009 were 12.10% and 13.35%, respectively, with
regulatory minimum ratios for capital adequacy purposes of 4.00% and 8.00%,
respectively.

Frederick County Bank commenced operations in 2001 and has posted positive
quarterly earnings continuously since 2002, its second year in operation. 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. Frederick
County Bank maintains a solid Four Star Rating from Bankrate.com as of
December 31, 2008 and the top Five Star Rating from Bauer Financial, Inc., as
of March 31, 2009.

June 30, June 30, December 31,
2009 2008 2008
(dollars in thousands) (unaudited) (unaudited) (audited)

Total assets $258,248 $262,493 $254,562
Cash and due from banks 815 4,781 808
Federal funds sold and other
overnight investments 30,131 14,482 15,247
Investment securities -
available for sale 14,458 26,460 20,040
Restricted stock 1,566 1,509 1,599
Loans, net 203,891 207,385 208,720
Deposits 220,190 223,987 216,883
Long-term borrowings 10,000 10,000 10,000
Junior subordinated
debentures 6,186 6,186 6,186
Shareholders' equity 20,947 20,064 20,612

SELECTED FINANCIAL DATA
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
(dollars in thousands, (unaudited) (unaudited) (unaudited) (unaudited)
except per share data)
SUMMARY OF OPERATING
RESULTS:
Interest income $3,468 $3,839 $6,932 $7,855
Interest expense 1,381 1,812 2,845 3,802
Net interest income 2,087 2,027 4,087 4,053
Provision for
loan losses 200 120 600 240
Net interest income
after provision for
loan losses 1,887 1,907 3,487 3,813
Securities gains 117 - 117 -
Gain (loss) on sale of
foreclosed properties - - (32) 15
Noninterest income
(excluding gains
(losses)) 134 129 274 265
Noninterest expense 1,782 1,650 3,465 3,296
Income before provision
for income taxes 356 386 381 797
Provision for
income taxes 117 116 97 228
Net income 239 270 284 569

PER COMMON SHARE DATA:
Basic earnings per share $0.16 $0.18 $0.19 $0.39
Diluted earnings per
share $0.16 $0.18 $0.19 $0.38
Basic weighted average
number of shares
outstanding 1,460,802 1,460,602 1,460,802 1,460,602
Diluted weighted
average
number of shares
outstanding 1,481,786 1,507,087 1,478,696 1,508,066
Common shares
outstanding 1,460,802 1,460,602 1,460,802 1,460,602
Book value per share $14.34 $13.74 $14.34 $13.74

SELECTED UNAUDITED
FINANCIAL RATIOS:
Return on average
assets 0.37% 0.41% 0.22% 0.44%
Return on average
equity 4.67% 5.33% 2.58% 5.66%
Allowance for loan
losses to
total loans 1.47% 1.23% 1.47% 1.23%
Nonperforming
assets to
total assets 0.41% 0.70% 0.41% 0.70%
Ratio of net
charge-offs to
average loans 0.00% 0.00% 0.33% 0.14%
Average equity to
average assets 8.01% 7.76% 8.55% 7.74%
Tier 1 capital to
risk-weighted
assets 12.10% 11.19% 12.10% 11.19%
Total capital to
risk-weighted
assets 13.35% 12.30% 13.35% 12.30%

Weighted average
yield/rate on:
Loans 6.27% 6.60% 6.23% 6.75%
Interest-earning
assets 5.63% 6.20% 5.62% 6.39%
Interest-bearing
liabilities 2.77% 3.55% 2.86% 3.74%
Net interest spread 2.86% 2.65% 2.76% 2.65%
Net interest margin 3.42% 3.32% 3.34% 3.35%

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. For further information, please refer to the Company's
reports filed with the U.S. Securities and Exchange Commission.

SOURCE Frederick County Bancorp, Inc.

William R. Talley, Jr., Executive Vice President and Chief Financial Officer
of Frederick County Bancorp, Inc., +1-240-529-1507