EX-99.1 4 ex99-2.htm EX-99.1

Exhibit 99.2

 

CECIL BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

 

 

INDEX

 

 

    PAGE
     
CONSOLIDATED FINANCIAL STATEMENTS  
     
Balance Sheets   1
Statements of Income 2
Statements of Comprehensive Income 3
Statement of Changes in Stockholders' Equity 4
Statements of Cash Flows 5
     
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6

 

 

 

CECIL BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2025 AND DECEMBER 31, 2024

(in thousands, except per share data)

 

   September 30,   December 31, 
   2025   2024 
ASSETS          
           
Cash and due from banks  $548   $579 
Interest bearing deposits with banks   24,347    16,657 
Federal funds sold   689    846 
Total cash and cash equivalents   25,584    18,082 
Securities available-for-sale at fair value   20,982    21,944 
Restricted investment securities - at cost   1,070    1,192 
Loans receivable   159,342    168,492 
Less: Allowance for loan credit losses   (1,726)   (1,766)
Net loans receivable   157,616    166,726 
Premises and equipment   2,561    2,655 
Accrued interest receivable   1,008    1,091 
Deferred tax assets, net   9,313    9,734 
Other assets   1,898    2,094 
TOTAL ASSETS  $220,032   $223,518 
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
LIABILITIES          
Deposits  $189,168   $190,928 
Advances from Federal Home Loan Bank of Atlanta   —    2,750 
Other liabilities   1,198    1,273 
Total liabilities   190,366    194,951 
           
STOCKHOLDERS' EQUITY          
Common stock, $0.01 par value; authorized 1,000,000          
shares in 2025 and 2024, issued and outstanding          
11,741,571 voting shares and 3,885,427 nonvoting shares          
in 2025 and 2024   156    156 
Additional paid in capital   53,051    53,051 
Retained deficit   (22,235)   (22,792)
Accumulated other comprehensive income (loss)   (1,306)   (1,848)
Total stockholders' equity   29,666    28,567 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $220,032   $223,518 

 

See accompany notes to the consolidated financial statements.

 

Page 2 

 

CECIL BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTH ENDED SEPTEMBER 30, 2025 AND 2024

(in thousands, except per share data)

 

   September 30,   September 30, 
   2025   2024 
INTEREST INCOME:          
Interest and fees on loans  $7,230   $7,604 
Interest on investment securities   615    453 
Dividends on FHLB and FRB stock   55    47 
Other interest income   766    799 
Total interest income   8,666    8,903 
           
INTEREST EXPENSE          
Interest expense on deposits   3,036    3,090 
Interest expense on advances for FRB of Richmond   —    233 
Interest expense on advances from FHLB of Atlanta   56    15 
Total interest expense   3,092    3,338 
           
NET INTEREST INCOME   5,574    5,565 
PROVISION FOR CREDIT LOSSES   50    605 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   5,524    4,960 
           
NONINTEREST INCOME:          
Deposit account fees   87    94 
ATM fees   246    255 
Gain (loss) on sale of repossessed assets   (61)   89 
Other   38    36 
Total noninterest income   310    474 
           
NONINTEREST EXPENSE          
Salaries and employee benefits   2,277    2,236 
Occupancy expense   342    337 
Equipment and data processing expense   832    810 
FDIC deposit insurance premium   142    175 
Professional services   725    388 
Insurance expense   83    78 
Other   660    1,576 
Total noninterest expense   5,061    5,600 
INCOME (LOSS) BEFORE INCOME TAXES   773    (166)
INCOME TAX EXPENSE (BENEFIT)   216    (44)
NET INCOME (LOSS)  $557   $(122)
           
Earnings (loss) per common share - basic  $0.03   $(0.01)
Earnings (loss) per common share - diluted  $0.03   $(0.01)

 

See accompany notes to the consolidated financial statements.  

Page 3 

 

CECIL BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(in thousands)

 

   September 30,   September 30, 
   2025   2024 
         
Net income (loss)  $557   $(122)
Other comprehensive income:          
Net unrealized gain on securities available for sale, net of deferred taxes of          
$206 in 2025 and $174 in 2024   542    458 
Other comprehensive income   542    458 
Total comprehensive income  $1,099   $336 

 

See accompany notes to the consolidated financial statements.  

Page 4 

 

CECIL BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(in thousands)

 

               Accumulated     
       Additional       Other   Total 
   Common   Paid-In   Retained   Comprehensive   Stockholders' 
   Stock   Capital   Deficit   Income (Loss)   Equity 
                     
BALANCES AT JANUARY 1, 2024  $154   $52,891   $(22,982)  $(1,770)  $28,293 
                          
Net income (loss)   —    —    (122)   —    (122)
Other comprehensive income (loss)   —    —         458    458 
Stock-based compensation   1    79    —    —    80 
                          
BALANCES AT SEPTEMBER 30, 2024  $155   $52,970   $(23,104)  $(1,312)  $28,709 
                          
                          
BALANCES AT JANUARY 1, 2025  $156   $53,051   $(22,792)  $(1,848)  $28,567 
                          
Net income   —    —    557    —    557 
Other comprehensive income (loss)   —    —         542    542 
                          
BALANCES AT SEPTEMBER 30, 2025  $156   $53,051   $(22,235)  $(1,306)  $29,666 

 

See accompany notes to the consolidated financial statements.  

Page 5 

 

CECIL BANCORP, INC. AND SUBSIDIARY

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(in thousands, except per share data)

 

   September 30,   September 30, 
   2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income (loss)  $557   $(122)
Adjustments to reconcile net income to cash provided by          
(used in operating activities):          
Depreciation of premises and equipment   120    124 
Amortization of right of use assets   89    84 
Amortization (accretion) of investment securities   (66)   (86)
Provision for credit losses   50    605 
(Gain) loss on sale of repossessed assets   61    (89)
Stock-based compensation   —    80 
Deferred tax expense (benefit)   216    (43)
Net change in:          
Accrued interest receivables and other assets   319    4,432 
Other liabilities   (75)   1,053 
Net cash provided by operating activities   1,271    6,038 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Proceeds from sales, maturities calls and principal payments          
of investment securities available for sale   2,543    1,364 
Purchase of investment securities available for sale   (768)   (2,715)
Net (purchase) redemption of restricted investment securities   122    (250)
Purchases of loans   (26,763)   (25,886)
Net decrease in loans   35,633    33,994 
Purchases of premises and equipment   (26)   (55)
Net cash provided by investing activities   10,741    6,452 
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Net increase (decrease) in deposits   (1,760)   (2,938)
Net increase (decrease) in advances from FRB of Richmond   —    (7,000)
Net increase (decrease) in advances from FHLB of Atlanta   (2,750)   5,500 
Net cash (used in) financing activities   (4,510)   (4,438)
           
Increase in cash and cash equivalents   7,502    8,052 
Cash and cash equivalents at beginning of period   18,082    15,151 
Cash and cash equivalents at end of period  $25,584   $23,203 
           
Supplemental disclosure of cash flows information:          
Cash paid for interest  $3,022   $3,361 
Cash paid for income taxes  $—   $— 
           
Supplemental disclosure of cash flowinformation:          
Unrealized gain (loss) on investments securities available -for-sale  $747   $633 
Transfer of loans to repossessed assets  $190   $1,721 

 

See accompany notes to the consolidated financial statements.  

 

Page 6 

 

CECIL BANCORP, INC. AND SUBSIDIAIRY

NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024  

 

1. SIGNIFICANT ACCOUNTING POLICIES

 

The accounting and reporting policies of Cecil Bancorp, Inc. (the "Company") and its wholly owned subsidiary, Cecil Bank (the "Bank"), together with its subsidiaries, Cecil Financial Services Corporation, Novo Realty, LLC, Route 9 Old New Castle LLC, and Chesapeake Club Subdivision, LLC conform to accounting principles generally accepted in the United States of America.

 

Basis of Presentation

 

The accompany unaudited financial consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and to general practices within the banking industry.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In the opinion of management, all significant adjustments considered necessary for the fair presentation have been included.

 

Cecil Bancorp, Inc. (the "Company") is the bank holding company for its wholly owned subsidiary, Cecil Bank (the "Bank"), together with its subsidiaries, Cecil Financial Services Corporation, Novo Realty, LLC, Route 9 Old New Castle LLC, and Chesapeake Club Subdivision, LLC.  The unaudited consolidated interim financial statements include the Company and its subsidiary.  Consolidation has resulted in the elimination of all significant intercompany balances and transactions.

 

Operating results for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.  For further information, and detailed discussion on all significant accounting polices, refer to the consolidated financial statements and footnotes thereto included in the Cecil Bancorp, Inc. and Subsidiary audited consolidated financial statements for the years ended December 31, 2024 and 2023. 

 

Page 7