Carrollton Bancorp Reports First Quarter Net
Loss Due to a Write Down of Trust Preferred
Securities and Announces a $0.04 Quarterly
April 30, 2010 04:46 PM Eastern Daylight Time
COLUMBIA, Md.--(EON: Enhanced Online News)--Carrollton Bancorp, (NASDAQ: CRRB) the parent
company of Carrollton Bank, announced a net loss for the first quarter of 2010 of $131,000, compared to net
income of $488,000 for the first quarter of 2009. Net loss attributable to common shareholders for the first quarter
of 2010 was $267,000 ($0.10 loss per diluted share) compared to net income available to common shareholders of
$428,000 ($0.17 per diluted share) for the first quarter of 2009.
Carrollton Bancorp also announced a quarterly dividend of $0.04 per share, payable June 1, 2010 to shareholders
of record on May 14, 2010.
The Company’s quarterly operating loss, before taxes, was $294,000 for the quarter ended March 31, 2010 as
compared to pre-tax operating income of $709,000 for the quarter ended March 31, 2009. The $1.0 million swing
in operating results is primarily a result of a $754,000 write-down of Trust Preferred securities held in the
Company’s investment portfolio as well as a $230,000 decline in mortgage related fee income. The mortgage fee
income decline results from reduced volume of mortgage originations in 2010 as compared to 2009.
The Company has Trust Preferred securities with a cost basis of $7.3 million and a fair value of $1.8 million as of
March 31, 2010. A total of $5.3 million of the unrealized losses of $5.5 million is currently recognized as an
adjustment to shareholders equity. These investments are measured for other than temporary impairment on a
quarterly basis and the investments are written down through the income statement as the impairment calculations
dictate. These investments, which were investment grade at the time of acquisition, are supported by underlying debt
obligations of several financial institutions. Impairments result from the deferral of dividends