Fraternity Community Bancorp, Inc. Reports Results for the Quarter Ended March 31, 2015

BALTIMORE--()--Fraternity Community Bancorp, Inc. (OTCBB:FRTR), the holding company for Fraternity Federal Savings and Loan Association, today announced that it realized net income of $66,800 for the quarter ended March 31, 2015, compared to a net loss of $47,700 for the quarter ended March 31, 2014. This represented earnings per common share of $0.05 for the quarter ended March 31, 2015 as compared to a $0.03 loss per common share for the quarter ended March 31, 2014. The increase in net income is primarily attributable to a decrease in our non-interest expenses of $224,700, from $1,263,500 for the three months ended March 31, 2014, to $1,038,800 for the three months ended March 31, 2015. The decrease in our non-interest expense is primarily attributable to a reduction in expenses related to other real estate owned and troubled loans. In addition, we realized a reduction in salaries and benefits.

At March 31, 2015, total assets increased by $565,700 to $164.0 million at March 31, 2015 from $163.4 million at December 31, 2014. Loan receivable, net increased $815,100, from $117.7 million at December 31, 2014 to $118.5 million at March 31, 2015. Cash and cash equivalents increased $727,400, from $12.6 million as of December 31, 2014, to $13.3 million as of March 31, 2015. Investment securities decreased $966,600, from $23.3 million as of December 31, 2014 to $22.3 million as of March 31, 2015.

Non-accrual loans totaled $2.2 million at March 31, 2015 compared to $2.1 million at December 31, 2014. As of March 31, 2015, non-accrual loans included sixteen owner occupied one- to- four family residential loans totaling $271,600, twelve non-owner occupied one- to- four family residential loans totaling $1.8 million and two home equity lines of credit totaling $98,000. As of December 31, 2014, non-accrual loans included fourteen owner occupied one- to- four family residential loans totaling $187,200, twelve non-owner occupied one- to- four family residential loans totaling $1.8 million and two home equity lines of credit totaling $95,300.

There was no other real estate owned as of March 31, 2015 and December 31, 2014.

The Company’s consolidated equity, all of which is tangible, was $27.9 million at March 31, 2015 compared to $27.6 million at December 31, 2014. The increase was primarily due to earnings of $66,800 and a reduction of $79,700 in accumulated other comprehensive loss, which was attributable to a decrease in long term rates that affect our available for sale investment portfolio. As of December 31, 2014, we had an accumulated loss of $64,400, compared to an accumulated gain of $15,300 as of March 31, 2015. The Bank remains well capitalized with a Tier 1 Leverage ratio, Tier 1 Risk-Based Capital ratio and Total Risk-Based Capital ratio of 14.57%, 25.93% and 27.19%, respectively, as compared to 14.57%, 26.35% and 27.61%, respectively for the same measures as of December 31, 2014.

Fraternity Community Bancorp, Inc. is the holding company for Fraternity Federal Savings and Loan Association, founded in 1913. The Bank is a community-oriented financial institution, dedicated to serving the financial service needs of customers and businesses within its market area, which consists of Baltimore City and Baltimore and Howard Counties in Maryland.

   
Fraternity Community Bancorp, Inc.
Consolidated Statements of Financial Condition
(unaudited)
 
March 31, 2015 December 31, 2014
(in thousands) (in thousands)
 
ASSETS
 
Cash and due from banks $ 903 $ 981
Interest-bearing deposits in other banks 12,470 11,665
Investment securities 22,254 23,220
Loans, net 118,522 117,707
Other assets   9,825   9,836
Total Assets $ 163,974 $ 163,409
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Deposits $ 113,755 $ 114,182
Advances from the Federal Home Loan Bank 20,000 20,000
Advances by borrowers for taxes and insurance 1,034 643
Other liabilities   1,319   952
Total Liabilities 136,108 135,777
Stockholders' Equity   27,866   27,632
Total Liabilities & Stockholders' Equity $ 163,974 $ 163,409
 
Fraternity Community Bancorp, Inc.
Consolidated Statements of Operations
(unaudited)
   
 
For the Three For the Three
Months Ended Months Ended
March 31, 2015 March 31, 2014
(in thousands) (in thousands)
 
Interest Income
Loans $ 1,335 $ 1,375
Investment Securities 144 183
Other   11     10  
Total Interest Income 1,490 1,568
 
Interest Expense
Deposits 283 289
Borrowings   152     152  
Total Interest Expense 435 441
 
Net Interest Income 1,055 1,127
 
Benefit for Loan Losses   (19 )   (3 )
 
Net Interest Income after Benefit for Loan Losses 1,074 1,130
 
Noninterest Income 53 39
Noninterest Expense   1,039     1,263  
 
Net Income (Loss) Before Income Tax Provision (Benefit) 88 (94 )
 
Income Tax Provision (Benefit)   21     (47 )
 
Net Income (Loss) $ 67   $ (47 )

Contacts

Fraternity Community Bancorp, Inc.
Thomas K. Sterner, 410-539-1313

Fraternity Community Bancorp, Inc.