Carrollton Bancorp Reports Fourth Quarter and Year End Results

Carrollton Bancorp Reports Fourth Quarter and Year End Results

COLUMBIA, Md., Feb. 1, 2013 (GLOBE NEWSWIRE) -- Carrollton Bancorp,
(Nasdaq:CRRB) the parent company of Carrollton Bank, announced a net loss of
$109,318 and $104,666 for the three and twelve month periods ended December
31, 2012, compared to net income of $568,551 and $546,728 for the comparable
quarter and twelve month period in 2011. Net loss attributable to common
stockholders for the three month period ended December 31, 2012 was $246,397
($0.10 per diluted share) compared to net income available to common
stockholders of $431,471 ($0.17 per diluted share) during the comparable
period in 2011. Net loss attributable to common stockholders was $652,982
($0.25 loss per diluted share) and $1,587 ($0.00 loss per diluted share) for
the twelve month periods ended December 31, 2012 and 2011, respectively.

The $677,869 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
$352,968 decrease in net interest income resulting from lower margins and
lower average asset levels and a $884,836 increase in noninterest expenses
resulting primarily from legal, investment banking and consulting fees
associated with the planned merger with Jefferson Bancorp, Inc. In addition,
the Company's OREO expense was $2.2 million, partially reducing OREO balances
at year end to $2.030 million from $4.822 million as of December 31, 2011.
These negative factors were partially offset by a $540,528 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 higher OREO expenses and merger related expenses.

Nonperforming assets (nonaccrual loans and foreclosed real estate) decreased
by 31.39% from $8.8 million at December 31, 2011 to $6.0 million at December
31, 2012. The allowance for loan losses represented 1.95% of outstanding loans
at December 31, 2012 compared to 1.81% at December 31, 2011. The Company
experienced net charge-offs of $157,126 for the quarter ended December 31,
2012 as compared to $5,979 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 "Merger related
expenses as well as OREO write downs adversely affected our profitability in
2012. That being said, the trends are positive. We do see improvement in asset
quality and expect OREO related expenses to reflect that in 2013. On the
merger side, the regulatory approval process has been much slower than
anticipated, but, we expect to finalize the merger within the first quarter of

Total assets at December 31, 2012 compared to December 31, 2011 reflects a $55
thousand increase to $365.4 million. Gross loans, including loans held for
sale, increased 3.2%, or $9.6 million, from $298.4 million at December 31,
2011 to $307.9 million at December 31, 2012. Investment securities decreased
32.1%, or $9.8 million, to $20.7 million at December 31, 2012 from $30.5
million as of December 31, 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 at December 31, 2012 increased 3.22%, or $10.2 million, to
$325.1 million while borrowings decreased $9.3 million from balances at
December 31, 2011. The increase in deposits was comprised of a $20 million
increase in non-interest bearing deposits, a $10.8 million increase in
interest bearing transaction accounts and a $20.8 million decrease in
certificates of deposit. The 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 continue to do an excellent
job in executing our strategic initiative to increase non-interest bearing
accounts. As of December 31, 2012, the company's non-interest bearing accounts
total approximately $95 million, which is a 26% increase over December 31,
2011 and is a historic high for the Bank."

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., the expected timing thereof 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, expected OREO expenses in 2013 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.

             Three Months Ended December 31,    Twelve Months Ended December 31,
             2012         2011         % Change 2012         2011         % Change
Results of                                                            
Net interest  3,150,493   3,503,461   (10.07%) 13,148,270  14,073,224  (6.57%)
Provision for 72,180      119,798     (39.75%) 1,165,012   2,156,626   (45.98%)
loan losses
Noninterest   2,692,849   2,152,321   25.11%   9,489,268   7,932,093   19.63%
Noninterest   5,534,022   4,649,186   19.03%   21,295,476  19,147,630  11.22%
Income tax
expense       346,459     318,247     8.86%    281,716     154,333     82.54%
Net income    (109,318)   568,551             (104,666)   546,728     
Net income
(loss) to     (246,397)   431,471             (652,982)   (1,587)     (41045.66%)
Per Share                                                             
Diluted net
income (loss) (0.10)       0.17                 (0.25)       (0.00)       (40997.81%)
per common
declared per  0.00         0.00         0.00%    0.00         0.00         0.00%
common share
Book value
per common    9.10         9.17         (0.79%)  9.10         9.17         (0.79%)
Common stock  5.46         2.80         95.00%   5.46         2.80         95.00%
closing price
At December                                                           
Short term    14,507,080  13,185,809  10.02%   14,507,080  13,185,809  10.02%
securities    23,244,955  32,208,127  (27.83%) 23,244,955  32,208,127  (27.83%)
Loans held    59,713,146  28,420,897  110.10%  59,713,146  28,420,897  110.10%
for sale
Loans (net of
unearned      247,081,917 269,048,847 (8.16%)  247,081,917 269,048,847 (8.16%)
income) (a)
Earning       345,186,698 344,974,979 0.06%    345,186,698 344,974,979 0.06%
Total assets  365,415,019 365,360,217 0.01%    365,415,019 365,360,217 0.01%
Total         325,147,274 314,992,836 3.22%    325,147,274 314,992,836 3.22%
Shareholders' 32,572,091  32,643,573  (0.22%)  32,572,091  32,643,573  (0.22%)
Common shares 2,579,388   2,576,388           2,579,388   2,576,388   
Short term    29,890,919  11,937,305  150.40%  26,500,459  8,753,007   202.76%
securities    24,581,500  32,599,279  (24.59%) 28,089,624  34,673,955  (18.99%)
Loans held    47,678,928  27,702,068  72.11%   36,009,153  23,375,894  54.04%
for sale
Loans (net of
unearned      247,016,689 271,040,525 (8.86%)  253,705,855 278,716,467 (8.97%)
income) (a)
Earning       349,807,637 345,700,830 1.19%    345,547,608 351,320,302 (1.64%)
Total assets  369,319,203 365,745,812 0.98%    366,078,814 371,389,022 (1.43%)
Total         328,559,229 316,617,995 3.77%    323,903,645 310,726,423 4.24%
Shareholders' 32,971,185  34,065,108  (3.21%)  32,619,774  33,632,880  (3.01%)
Return on
average total (0.12%)      0.62%                (0.03%)      0.15%        
Return on
average       (1.32%)      6.62%                (0.32%)      1.63%        
Net interest  3.58%        4.02%                3.81%        4.01%        
Credit Ratios                                                         
assets as
percent of
period end    2.42%        3.21%                2.42%        3.21%        
loans and
real estate
Allowance to
total         1.95%        1.81%                1.95%        1.81%        
Net loan
losses to     0.06%        0.00%                0.47%        0.64%        
average loans
(period end)
equity to     8.91%        8.93%                8.91%        8.93%        
total assets
Leverage      9.39%        9.75%                9.39%        9.75%        
Tier 1
risk-based    10.36%       10.59%               10.36%       10.59%       
risk-based    11.64%       11.87%               11.64%       11.87%       
(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
(d) Ratio is not annualized

CONTACT: Beatrice McQuarrie
         Controller and Vice President
         (410) 737-7404
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