Fraternity Community Bancorp, Inc. Reports Results for the Nine Months Ended September 30, 2015

BALTIMORE--()--Fraternity Community Bancorp, Inc. (OTCBB:FRTR), the holding company for Fraternity Federal Savings and Loan Association, today announced that it realized a net loss of $428,700 for the nine months ended September 30, 2015, compared to a net loss of $82,700 for the nine months ended September 30, 2014. The net loss is primarily attributable to an increase in our provision for loan losses. We had a provision for loan losses of $907,400 for the nine months ended September 30, 2015 as compared to a provision for loan losses of $225,100 for the nine months ended September 30, 2014. The reason for the large provision this period is due primarily to the write-down of one loan relationship, covering seven loans, secured by 39 non-owner occupied one- to- four family residential properties in Baltimore City. Net interest income decreased $199,800, from $3.3 million for the nine months ended September 30, 2014, to $3.1 million for the nine months ended September 30, 2015. Non-interest expense decreased $383,000, from $3.6 million for the nine months ended September 30, 2014, to $3.2 million for the nine months ended September 30, 2015.

At September 30, 2015, total assets decreased by $2.0 million to $161.4 million at September 30, 2015 from $163.4 million at December 31, 2014. Loans receivable, net decreased $3.7 million, from $117.7 million at December 31, 2014 to $114.0 million at September 30, 2015. Cash and cash equivalents increased $3.3 million, from $12.6 million as of December 31, 2014, to $15.9 million as of September 30, 2015. Investment securities decreased $2.1 million, from $23.2 million as of December 31, 2014 to $21.1 million as of September 30, 2015.

Non-accrual loans totaled $1.3 million at September 30, 2015 compared to $2.1 million at December 31, 2014. As of September 30, 2015, non-accrual loans included twelve loans secured by owner occupied one- to- four family residential properties totaling $128,800, thirteen loans secured by non-owner occupied one- to- four family residential properties totaling $1.2 million and one home equity line of credit totaling $14,000. As of December 31, 2014, non-accrual loans included fourteen loans secured by owner occupied one- to- four family residential properties totaling $187,200, twelve loans secured by non-owner occupied one- to- four family residential properties totaling $1.8 million and two home equity lines of credit totaling $95,300.

Other real estate owned totaled $57,200 as of September 30, 2015 as compared to $0 as of December 31, 2014.

The Company’s consolidated equity, all of which is tangible, was $27.4 million at September 30, 2015 compared to $27.6 million at December 31, 2014. The decrease was primarily due to a net loss of $428,700. The Bank remains well capitalized with a Tier 1 Leverage ratio, Tier 1 Risk-Based Capital ratio and Total Risk-Based Capital ratio of 14.49%, 25.94% 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)
 

September 30, 2015

December 31, 2014

(in thousands) (in thousands)
 
ASSETS
 
Cash and due from banks $ 688 $ 981
Interest-bearing deposits in other banks 15,283 11,665
Investment securities 21,089 23,220
Loans, net 114,027 117,707
Other real estate owned 57 0
Other assets   10,259   9,836
Total Assets $ 161,403 $ 163,409
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Deposits $ 112,148 $ 114,182
Advances from the Federal Home Loan Bank 20,000 20,000
Advances by borrowers for taxes and insurance 772 643
Other liabilities   1,038   952
Total Liabilities 133,958 135,777
Stockholders' Equity   27,445   27,632
Total Liabilities & Stockholders' Equity $ 161,403 $ 163,409
 
       
Fraternity Community Bancorp, Inc.
Consolidated Statements of Operations
(unaudited)
 
 
For the Nine For the Nine
Months Ended Months Ended

September 30, 2015

September 30, 2014

(in thousands) (in thousands)
 
Interest Income
Loans $ 3,926 $ 4,046
Investment Securities 453 534
Other   34   37
Total Interest Income 4,413 4,617
 
Interest Expense
Deposits 861 865
Borrowings   461   461
Total Interest Expense 1,322 1,326
 
Net Interest Income 3,091 3,291
 
Provision for Loan Losses   907   225
 
Net Interest Income after Provision for Loan Losses 2,184 3,066
 
Noninterest Income 154 206
Noninterest Expense   3,167   3,550
 
Net Loss Before Income Tax Benefit (829) (278)
 
Income Tax Benefit   (400)   (195)
 
Net Loss $ (429) $ (83)
 

Contacts

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

Fraternity Community Bancorp, Inc.