Fraternity Community Bancorp, Inc. (OTCBB:FRTR), the holding
company for Fraternity Federal Savings and Loan Association, today
announced that it realized net income of $64,700 for the year ended
December 31, 2014, compared to a net loss of $110,600 for the year
ended December 31, 2013. This represented earnings per common share
of $0.05 for the year ended December 31, 2014 as compared to a
$0.08 loss per common share for the year ended December 31, 2013.
The increase in net income is primarily due to a decrease in our
provision for loan losses. For the year ended December 31, 2014 we
had a provision for loan losses of $26,900, compared to a provision
for loan losses of $223,000 for the year ended December 31,
2013.
For the three months ended December 31, 2014, we had net income
of $147,400, compared to a net loss of $187,400 for the three
months ended December 31, 2013. The increase in net income is
primarily due to a decrease in our provision for loan losses. For
the three months ended December 31, 2014 we had a negative
provision for loan losses of $198,200, compared to a provision for
loan losses of $91,600 for the same period ended December 31,
2013.
At December 31, 2014, total assets decreased by $3.0 million to
$163.4 million at December 31, 2014 from $166.4 million at December
31, 2013. $1.9 million of this decrease was due to our successfully
selling all of our other real estate owned during the year ended
December 31, 2014. Additionally, there was a decrease in cash and
cash equivalents of $2.7 million, from $15.3 million at December
31, 2013, to $12.6 million as of December 31, 2014, and a decrease
in available-for-sale investment securities of $2.2 million, from
$16.3 million at December 31, 2013, to $14.1 million as of December
31, 2014. We were also successful in growing our loan portfolio
during 2014, as we experienced an increase of $3.1 million in loans
receivable, net, from $114.6 million at December 31, 2013 to $117.7
million at December 31, 2014.
Non-accrual loans totaled $2.1 million at December 31, 2014
compared to $1.1 million at December 31, 2013. As of December 31,
2014, non-accrual loans included fourteen owner occupied one- to-
four family residential loans totaling $189,000, twelve non-owner
occupied one- to- four family residential loans totaling $1.8
million and two home equity lines of credit totaling $95,300. As of
December 31, 2013, non-accrual loans included one troubled debt
restructured loan totaling $386,400, eighteen one- to- four family
residential loans totaling $404,000 and two home equity lines of
credit totaling $289,900. The total increase of $1.0 million in
non-accrual loans is primarily due to one loan relationship
covering seven non-owner occupied one- to- four family residential
loans.
As mentioned earlier, other real estate owned totaled $0 at
December 31, 2014 compared to $1.9 million at December 31, 2013.
The decrease in other real estate owned was due to the sale of a
luxury residential property that had secured a speculative
construction loan, the sale of an owner occupied property, and the
sale of a non-owner occupied property during 2014. Other real
estate owned at December 31, 2013 consisted of one luxury
residential property that was a speculative construction loan
(totaling $1.7 million), one owner occupied property and one
non-owner occupied property.
The Company’s consolidated equity, all of which is tangible, was
$27.6 million at December 31, 2014 compared to $26.8 million at
December 31, 2013. The increase was primarily due to a reduction of
$605,300 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, 2013,
we had an accumulated loss of $669,700, compared to $64,400 as of
December 31, 2014. 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%, 26.35% and 27.61%,
respectively, as compared to 14.19%, 25.71% and 26.96%,
respectively for the same measures as of December 31, 2013.
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
December 31, 2014 December 31,
2013 (in thousands) (in thousands)
ASSETS
Cash and due from banks $ 981 $ 973 Interest-bearing
deposits in other banks 11,665 14,378 Investment securities 23,220
24,424 Loans, net 117,707 114,578 Other real estate owned 0 1,922
Other assets
9,836 10,095
Total Assets $
163,409 $
166,370 LIABILITIES AND
STOCKHOLDERS' EQUITY Deposits $ 114,182 $ 118,101
Advances from the Federal Home Loan Bank 20,000 20,000 Advances by
borrowers for taxes and insurance 643 658 Other liabilities
952 807 Total Liabilities 135,777
139,566 Stockholders' Equity
27,632
26,804 Total Liabilities & Stockholders'
Equity $ 163,409
$ 166,370
Fraternity Community Bancorp, Inc. Consolidated
Statements of Operations
For the Three For the Three For the Twelve
For the Twelve Months Ended Months Ended
Months Ended Months Ended December 31,
2014 December 31, 2013
December 31, 2014 December 31,
2013 (in thousands) (in thousands) (in thousands) (in
thousands)
Interest Income Loans $ 1,339 $ 1,386 $
5,384 $ 5,618 Investment Securities 171 172 705 689 Other
15 10
52 43 Total
Interest Income 1,525 1,568 6,141 6,350
Interest
Expense Deposits 288 324 1,153 1,375 Borrowings
156 155
616 611 Total
Interest Expense 444 479 1,769 1,986
Net Interest
Income 1,081 1,089 4,372 4,364
(Benefit) Provision
for Loan Losses (198 )
92 27
223 Net Interest Income after (Benefit)
Provision for Loan Losses 1,279 997 4,345 4,141 Noninterest
Income 33 57 240 290 Noninterest Expense
1,155
1,284 4,705
4,636 Net Income (Loss)
Before Income Tax Provision (Benefit) 157 (230 ) (120 ) (205 )
Income Tax Provision (Benefit)
10
(43 ) (185
) (94 ) Net
Income (Loss) $ 147
$ (187 ) $
65 $ (111
)
Fraternity Community Bancorp, Inc.Thomas K. Sterner,
410-539-1313