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Carrollton Bancorp, (NASDAQ: CRRB) the parent company of Carrollton Bank, announced net income for the first quarter of 2011 of $171,000 compared to a net loss of $131,000 for the first quarter of 2010. Net income available to common stockholders for the first quarter of 2011 was $34,000 ($0.01 per diluted share) compared to a net loss to common stockholders of $267,000 ($0.10 loss per diluted share) for the first quarter of 2010.
Carrollton Bancorp continued the temporary suspension of its quarterly dividend in recognition of the Company’s limited earnings during recent quarters.
The Company’s income before taxes was $225,000 for the quarter ended March 31, 2011 compared to a pre-tax loss of $294,000 for the quarter ended March 31, 2010. The $519,000 swing in operating results is primarily attributable to stabilization of Trust Preferred securities held in the Company’s investment portfolio. During the first quarter of 2011, the Company recorded a write-down of Trust Preferred securities in the amount of $167,000 compared $754,000 during the same period in 2010.
Robert A. Altieri, President and CEO, stated, “We have seen marginal improvement in earnings while asset quality and lack of loan demand continue to impact the Company’s performance. Our lenders have spent countless hours on asset quality issues, predominantly in the land acquisition and development sector, which were caused by the economic slump in our market. We are hopeful for economic improvement and have seen asset quality improvement, but we continue to have concern about the economy and its protracted and slow rate of recovery. Asset quality, loan growth, and additional capital will be the key to the success of the bank moving forward.”
Comparing the first quarter of 2011 to the same period in 2010, the Company improved the net interest income by $110,000, or 3.3%, by reducing reliance on certificates of deposit and borrowings as the Company remains focused on managing interest rate risk. Average borrowings were $29.1 million and $47.5 million for the first quarter of 2011 and 2010, respectively, while the related interest expense decreased to $212,000 for the first quarter of 2011 from $329,000 for the same period in 2010.