FREDERICK, Md.--(BUSINESS WIRE)--Frederick County Bancorp, Inc. (OTCPink Marketplace: FCBI), the parent company for Frederick County Bank (“FCB”), announced today that, for the quarter ended June 30, 2016, the Company recorded net income of $362 thousand and diluted earnings per share of $0.23, as compared to net income of $355 thousand and diluted earnings per share of $0.23 recorded for the second quarter of 2015. The Company earned $651 thousand with diluted earnings per share of $0.42 for the six months ended on June 30, 2016, as compared to $835 thousand in earnings and diluted earnings per share of $0.54 for the same period in 2015.

The slight increase in quarterly earnings was due primarily to an increase in total noninterest income to $297 thousand in the second quarter of 2016 as compared to $248 thousand in the second quarter of 2015, resulting from an 8 basis point increase in the net interest margin and increased loan volume, which was offset by increases in total noninterest expense to $2.68 million in the second quarter of 2016 from $2.67 million in the second quarter of 2015. The increase in total noninterest income was due primarily to increases in securities gains of $51 thousand and gain on sale of loans of $8 thousand. The increase in total noninterest expense was due primarily to increases in salaries and employee benefits of $83 thousand, an increase in occupancy and equipment expense of $51 thousand and an increase in provision expense of $200 thousand in the second quarter of 2016 as compared to the second quarter of 2015, respectively.

The decrease in year-to-date earnings was due primarily to an increase in total noninterest expense to $5.5 million in the first half of 2016 as compared to $5.3 million in the first half of 2015, which added to the overall decrease in total noninterest income of $250 thousand in the first half of 2016 as compared to the first half of 2015. The increase in total noninterest expense was due primarily to increases in salaries and employee benefits of $226 thousand and in occupancy and equipment expenses of $84 thousand, as compared to the first half of 2015. The decrease in total noninterest income was due primarily to a decrease in gain on sale of loans of $225 thousand as compared to the first half of 2015, reflecting lower SBA loan originations and subsequent sales in the first half of 2016.

The ratio of the allowance for loan losses to total loans stood at 1.04% and 1.16% as of June 30, 2016 and 2015, respectively. Total nonperforming assets stood at $7.7 million and $4.4 million at June 30, 2016 and 2015, respectively, and at $5.9 million at December 31, 2015. The $3.33 million increase in nonperforming assets from the second quarter of 2016 compared to the second quarter of June 2015 is due to two relationships totaling $5.1 million that were put on nonaccrual of which $2.3 million was a troubled debt restructuring at December 31, 2015. The corresponding nonperforming assets to total assets ratios were 2.08% and 1.24% as of June 30, 2016 and 2015, respectively, and 1.68% at December 31, 2015.

The Company also reported that, as of June 30, 2016, assets stood at $371.4 million, with total deposits of $315.5 million and gross loans of $294.9 million, representing increases of 4.2%, 4.1%, and 10.1%, respectively, compared to June 30, 2015. Total shareholders’ equity at June 30, 2016 was $30.5 million, an increase of $984 thousand from December 31, 2015. The increase primarily resulted from an increase in additional paid-in capital of $192 thousand, which was from the exercise of stock options, an increase in retained earnings of $443 thousand and an increase in accumulated other comprehensive income of $349 thousand from December 31, 2015. On a per share basis, book value increased by 47 cents for 2016 to $20.50 per share at June 30, 2016 from $20.03 per share at December 31, 2015. The dividends declared per share remained constant at $0.14 per share for the six month periods ended June 30, 2016 and 2015.