Carrollton Bancorp Reports Third Quarter Profit

Carrollton Bancorp Reports Third Quarter Profit

COLUMBIA, Md., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Carrollton Bancorp,
(Nasdaq:CRRB) the parent company of Carrollton Bank, announced net income of
$421,920 and $4,651 for the three and nine month periods ended September 30,
2012, compared to net income of $504,240 for the comparable quarter in 2011
and a net loss of $21,823 for the comparable nine month period in 2011. Net
income available to common stockholders for the three month periods ended
September 30, 2012 and 2011 were $284,841 ($0.11 per diluted share) and
$367,162 ($0.14 per diluted share), respectively. Net loss attributable to
common stockholders was $406,585 ($0.16 loss per diluted share) and $433,058
($0.17 loss per diluted share) for the nine month periods ended September 30,
2012 and 2011.

The $82,000 decline in operating results for the quarter, as compared to the
same period in 2011, is a result of a combination of factors including a
$162,000 decrease in net interest income resulting from lower margins and
lower average asset levels and a $627,000 increase in noninterest expenses
resulting primarily from legal, investment banking and consulting fees
associated with the planned merger with Jefferson Bancorp, Inc. These negative
factors were partially offset by a $610,000 increase in noninterest income
resulting from strong growth in mortgage banking fees and electronic banking
fees as well as a decline in securities write downs. Similar factors impacted
year to date results where improvements in noninterest income and the
provision for loan losses were offset by lower net interest income and merger
related expenses.

Nonperforming assets (nonaccrual loans and foreclosed real estate) decreased
by 54.2% from $11.1 million at September 30, 2011 to $5.1 million at September
30, 2012. The allowance for loan losses represented 1.96% of outstanding loans
as of September 30, 2012 compared to 1.73% at September 30, 2011. The Company
experienced net charge-offs of $225,000 for the quarter ended September 30,
2012 as compared to $586,000 for the same period in 2011.

The Company's strategy of aggressively managing the size and composition of
the balance sheet continued to result in improved capital ratios. We believe
that the planned merger with Jefferson Bancorp will, upon completion, create a
larger and better capitalized bank which will enhance opportunities to grow
organically and through additional acquisitions.

President and Chief Executive Officer Bob Altieri stated "We have experienced
significant merger related expenses, which have adversely affected our year to
date profitability. However, we have seen significant improvement in earnings
as a result of our residential mortgage and electronic banking fee income
businesses. As it relates to our proposed merger, the shareholders of
Carrollton Bancorp approved the merger on August 23, 2012. We are hopeful of a
closing in 2012; however, at this point regulatory approval from the OCC and
the Federal Reserve is still pending, which may result in finalizing the
merger in 2013."

Total assets as of September 30, 2012 compared to September 30, 2011 reflect a
1.9%, or $7.2 million, increase to $378.8 million. Gross loans, including
loans held for sale, decreased 1.7%, or $5.1 million, from $306.3 million at
September 30, 2011 to $301.2 million at September 30, 2012. Investment
securities decreased 22.5%, or $6.6 million, to $22.6 million at September 30,
2012 from $29.2 million as of September 30, 2011. This decrease is a result of
management's decision to use cash flow from investments to shrink the balance
sheet by reducing high cost borrowings.

Total deposits increased 7.1%, or $22.3 million, to $338.4 million while
borrowings decreased $16.3 million from balances at September 30, 2011. The
increase in deposits was comprised of a $24.7 million increase in non-interest
bearing deposits, a $16.0 million increase in interest bearing transaction
accounts and an $18.4 million decrease in certificates of deposit. The
combined $34.7 million decrease in high cost funding sources is consistent
with our strategy of reducing our cost of funds while concentrating on core
deposit growth.

Mr. Altieri continued and stated, "Our employees have done an excellent job in
executing our strategic initiative to increase non-interest bearing accounts.
As of September 30, 2012, the company's non-interest bearing accounts total
approximately $95 million, which is the highest level in the company's
history."

Carrollton Bancorp is the parent company of Carrollton Bank, a commercial bank
serving the deposit and financing needs of both consumers and businesses
through a system of 10 branch offices in central Maryland. The Company
provides brokerage services through its Carrollton Financial Services, Inc.
subsidiary, and mortgage services through its, Carrollton Mortgage Services
division of the Bank.

The statements in this press release regarding the proposed merger with
Jefferson Bancorp, Inc. and our expectation that upon the merger with
Jefferson Bancorp the merged entity will be better capitalized and in a
position to pursue opportunities to grow organically and through additional
acquisitions and statements regarding our business strategy are
forward-looking statements within the meaning of and pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. A
forward-looking statement encompasses any estimate, prediction, opinion or
statement of belief contained in this release and the underlying management
assumptions. Although the Company believes this statement is based on
reasonable estimates and assumptions, the Company is unable to provide any
assurance that its expectations will, in fact, occur or that its estimates or
assumptions will be correct. Actual results could differ materially from those
expressed or implied by such forward-looking statement and such statement is
not a guarantee of future performance. Potential risks and uncertainties that
could cause anticipated results to differ from those expressed or implied by
such forward-looking statement include, but are not limited to: (i) the risk
that necessary regulatory approvals for the merger will not be obtained; (ii)
the businesses of Carrollton Bancorp may not be integrated into Jefferson
Bancorp successfully or such integration may be more difficult, time-consuming
or costly than expected; (iii) expected revenue synergies and cost savings
from the merger may not be fully realized, or realized within the expected
timeframe; (iv) disruption in the parties' businesses as a result of the
pendency of the merger; (v) revenues following the merger may be lower than
expected; (vi) customer and employee relationships and business operations may
be disrupted by the merger; (vii) the ability to complete the merger may be
more difficult, time-consuming or costly than expected, or the merger may not
be completed at all; (viii) unexpected changes in the housing market or in
general economic conditions in our market area and Jefferson Bancorp's market
area; (ix) unexpected changes in market interest rates; (x) the impact of new
governmental regulations that might require changes in our and Jefferson
Bancorp's business model; (xi) changes in laws, regulations, policies and
guidelines impacting our ability to collect on outstanding loans or otherwise
negatively impacting Carrollton Bancorp's and Jefferson Bancorp's business;
(xii) changes in competitive, governmental, regulatory, technological and
other factors that may affect Carrollton Bancorp or Jefferson Bancorp
specifically or the banking industry generally; and (xiii) other risks and
uncertainties as described in reports Carrollton Bancorp files with the
Securities and Exchange Commission. The Company undertakes no obligation to
update or revise forward looking statements.

A summary of financial information follows.

                                                                       
                                                                       
FINANCIAL                                                               
HIGHLIGHTS
Carrollton                                                              
Bancorp
             Three Months Ended September 30,    Nine Months Ended September 30,
             2012          2011         % Change 2012          2011         % Change
             (unaudited) (unaudited)          (unaudited) (unaudited)  
Results of                                                              
Operations
Net interest  3,364,481    3,526,410   (4.59%)  9,997,777    10,569,763  (5.41%)
income
Provision for 412,158      495,010     (16.74%) 1,092,833    2,036,828   (46.35%)
loan losses
Noninterest   2,864,972    2,255,381   27.03%   6,796,419    5,779,772   17.59%
income
Noninterest   5,131,716    4,504,790   13.92%   15,761,454   14,498,444  8.71%
expenses
Income tax
expense       263,659      277,751     (5.07%)  (64,742)     (163,914)   60.50%
(benefit)
Net income    421,920      504,204     (16.32%) 4,651        (21,823)    121.31%
(loss)
Net income
(loss) to     284,841      367,162     (22.42%) (406,585)    (433,058)   6.11%
common
stockholders
                                                                       
Per Share                                                               
Diluted net
income (loss) 0.11         0.14        (22.51%) (0.16)       (0.17)      6.22%
per common
share
Dividends
declared per  --           --          0.00%    --           --          0.00%
common share
Book value
per common    9.19         9.30        (1.13%)  9.19         9.30        (1.13%)
share
Common stock  4.71         3.20        47.19%   4.71         3.20        47.19%
closing price
                                                                       
At September                                                            
30
Short term    31,166,048   9,056,132   244.14%  31,166,048   9,056,132   244.14%
investments
Investment
securities    25,728,267   33,028,522  (22.10%) 25,728,267   33,028,522  (22.10%)
(b)
Loans held    50,940,108   32,521,993  56.63%   50,940,108   32,521,993  56.63%
for sale
Loans (net of
unearned      250,255,690  273,799,466 (8.60%)  250,255,690  273,799,466 (8.60%)
income) (a)
Earning       358,729,713  351,124,913 2.17%    358,729,713  351,124,913 2.17%
assets
Total assets  378,796,634  371,574,490 1.94%    378,796,634  371,574,490 1.94%
Total         338,427,013  316,078,424 7.07%    338,427,013  316,078,424 7.07%
deposits
Shareholders' 32,785,002   33,519,532  (2.19%)  32,785,002   33,519,532  (2.19%)
equity
                                                                       
Common shares 2,579,388    2,576,388           2,579,388    2,576,388   
outstanding
                                                                       
Average                                                                 
Balances
Short term    24,276,919   12,500,540  94.21%   25,375,238   7,686,083   230.15%
investments
Investment
securities    26,420,773   33,812,475  (21.86%) 29,267,534   35,373,113  (17.26%)
(b)
Loans held    42,097,068   26,317,545  59.96%   32,090,835   25,695,105  24.89%
for sale
Loans (net of
unearned      253,008,243  276,608,663 (8.53%)  255,951,851  281,303,231 (9.01%)
income) (a)
Earning       346,605,777  352,124,381 (1.57%)  344,130,225  353,220,214 (2.57%)
assets
Total assets  367,417,190  372,283,786 (1.31%)  364,990,799  373,276,074 (2.22%)
Total         326,980,943  311,021,812 5.13%    322,340,456  308,740,984 4.40%
deposits
Shareholders' 32,744,433   33,291,014  (1.64%)  32,501,781   33,487,221  (2.94%)
equity
                                                                       
Earnings                                                                
Ratios
Return on
average total 0.46%         0.54%                0.00%         (0.01%)      
assets
Return on
average       5.13%         6.01%                0.02%         (0.09%)      
shareholders'
equity
Net interest  3.86%         3.97%                3.88%         4.00%        
margin
                                                                       
Credit Ratios                                                           
Nonperforming
assets as
percent of
period end    1.99%         3.96%                1.99%         3.96%        
loans and
foreclosed
real estate
(a)(c)
Allowance to
total loans   1.96%         1.73%                1.96%         1.73%        
(a)
Net loan
losses to     0.09%         0.21%                0.41%         0.63%        
average loans
(a)(d)
                                                                       
Capital
Ratios                                                                  
(period end)
Shareholders'
equity to     8.66%         9.02%                8.66%         9.02%        
total assets
Leverage      9.55%         9.66%                9.55%         9.66%        
capital
Tier 1
risk-based    11.08%        10.53%               11.08%        10.53%       
capital
Total
risk-based    12.35%        11.79%               12.35%        11.79%       
capital
                                                                       
(a)Excludes loans held for sale
(b)Excludes market value adjustment on securities available for sale
(c)Nonperforming assets are comprised of non-accrual loans and foreclosed real
estate
(d)Ratio is not annualized

CONTACT: Mark A. Semanie, Chief Financial Officer, (410) 536-7308