PRESS RELEASES

2012

 Carroll Bancorp, Inc. Announces Third Quarter Results

SYKESVILLE, MD – October 16, 2012 – Carroll Bancorp, Inc. (OTCBB: CROL), the parent company of Carroll Community Bank (the “Bank”), today announced net income of $39,000 or $0.11 per common share for the three months ended and net income of $2,000 or $0.01 per common share for the nine months ended September 30, 2012.  By comparison, the Company recorded net income of $28,000 and $73,000 for the three and nine months ended September 30, 2011, respectively.

The increase in net income for the three months ending September 30, 2012 compared to September 30, 2011 was primarily due to the higher loan balances in the 2012 period as the Bank continues to leverage its balance sheet along with a reduction in the provision for loan losses and real estate owned expenses and losses.  These items were partially offset by gains on sale of securities realized during the 2011 period.

“We are pleased with our progress in the third quarter and the improvement in our core earnings.  The loan growth we experienced in the second and third quarters leveraged our balance sheet and has had a positive impact on our net interest income and net interest margin.” stated Russell J. Grimes, President and CEO of Carroll Bancorp, Inc.

Nonperforming loans at September 30, 2012 decreased by $377,000, or 45%, to $464,000 and total nonperforming assets decreased by $771,000, or 35%, to $1.4 million compared to June 30, 2012.  Compared to September 30, 2011, nonperforming loans declined slightly and nonperforming assets decreased by $678,000, or 32%.  The ratio of nonperforming loans to total loans was 0.65% and 0.79%, at September 30, 2012 and 2011, respectively and the ratio of total nonperforming assets to total assets was 1.45% and 2.21%, at September 30, 2012 and 2011, respectively.  In addition, past due loans greater than 30 days to total assets declined to 1.24% at September 30, 2012 compared to 1.36% at June 30, 2012 and to 1.98% at September 30, 2011.  Loans 90 days or more past due are considered nonperforming loans.

“We continue to make significant progress on the workout of our nonperforming loans and assets.  Our asset quality ratios reflect our diligence in resolving problem assets and we expect this will have a positive impact on our future performance.” added Mr. Grimes.

Carroll Bancorp, Inc.’s common stock trades on the OTC Bulletin Board (www.otcbb.com) under the symbol “CROL.”  For more information, visit our website at www.carrollcobank.com or contact Russell Grimes, President & CEO at 410-795-1900.

About Carroll Bancorp, Inc. and Carroll Community Bank

Carroll Bancorp, Inc. is the holding company of Carroll Community Bank.  Carroll Community Bank, originally founded in 1870, is now a state-chartered commercial bank with branch offices in the Eldersburg and Westminster of Carroll County, Maryland.  Carroll Community Bank operates as a community-oriented institution, offering a variety of loan and deposit products and serving the financial needs of its local community.

Forward-Looking Statements: The statement in this release regarding the positive impact on future performance is a forward-looking statement within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such a statement is based on our current beliefs and expectations and is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control.  In addition, such forward-looking statement is subject to assumptions with respect to future business strategies and decisions that are subject to change.  Potential risks and uncertainties include, but are not limited to, further deterioration in general economic conditions in our market areas, the impact of new governmental regulations, and unexpected changes in interest rates, deposit flows and loan demand, as well as other risks and uncertainties, as described in Carroll Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2011 as filed with the Securities and Exchange Commission (File No. 000-55542), and in other filings we may make.  We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.

2012 Third Quarter Results


Carroll Bancorp, Inc. Announces Second Quarter Results

SYKESVILLE, MD – July 17, 2012 – Carroll Bancorp, Inc. (OTCBB: CROL), the parent company of Carroll Community Bank (the “Bank”), today announced a net loss of $63,000 or $0.19 per common share for the three months ended and a net loss of $36,000 or $0.11 per common share for the six months ended June 30, 2012.

The decrease in net income was primarily the result of the additional provision for loan losses resulting from the net growth in loan balances of $6.0 million for the quarter ending June 30, 2012 and a specific reserve provision of $101,000 on a new substandard one- to four-family residential mortgage loan.  These items were partially offset by security gains taken during the quarter of $60,000.

“While our earnings for the second quarter were negatively impacted by the specific reserve and additional loan loss provision, we are very pleased with the new commercial loans originated during the quarter.  This loan growth continues our transition to a commercial bank, leverages our balance sheet to produce higher yielding assets and increases our net interest margin which we anticipate will have a positive impact on future earnings.” stated Russell J. Grimes, President and CEO of Carroll Bancorp, Inc.

Non-interest bearing and interest bearing checking balances increased by $1.6 million, or 30%, to $6.8 million at June 30, 2012 from $5.2 million at June 30, 2011.  This increase in core account balances is the result of the implementation of deposit product enhancements for our retail and commercial checking customers.

Nonperforming loans at June 30, 2012 increased by $324,000, or 63%, to $841,000 and total nonperforming assets increased by the same dollar amount, or 17%, to $2.2 million compared to March 31, 2012.  Nonperforming loans decreased by $563,000, or 40%, and total nonperforming assets remained flat at June 30, 2012 compared to June 30, 2011.  The ratio of nonperforming loans to total loans was 1.20% and 2.29%, at June 30, 2012 and 2011, respectively and the ratio of total nonperforming assets to total assets was 2.25% and 2.34%, at June 30, 2012 and 2011, respectively.  Loans 90 days or more past due are considered nonperforming loans.

Carroll Bancorp, Inc.’s common stock trades on the OTC Bulletin Board (www.otcbb.com) under the symbol “CROL.”  For more information, visit our website at www.carrollcobank.com or contact Russell Grimes, President & CEO at 410-795-1900.

About Carroll Bancorp, Inc. and Carroll Community Bank

Carroll Bancorp, Inc. is the holding company of Carroll Community Bank.  Carroll Community Bank, originally founded in 1870, is a state-chartered commercial bank with branch offices in the Eldersburg and Westminster of Carroll County, Maryland.  Carroll Community Bank operates as a community-oriented institution, offering a variety of loan and deposit products and serving the financial needs of its local community.

Forward-Looking Statements: The statement in this release regarding improving future earnings is a forward-looking statement within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statement is based on our current beliefs and expectations and is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control.  In addition, such forward-looking statement is subject to assumptions with respect to future business strategies and decisions that are subject to change.  Potential risks and uncertainties include, but are not limited to, further deterioration in general economic conditions in our market areas, the impact of new governmental regulations, and unexpected changes in interest rates, deposit flows and loan demand, as well as other risks and uncertainties, as described in Carroll Bancorp, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2011 as filed with the Securities and Exchange Commission (File No. 000-55542), and in other filings we may make.  We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.


Carroll Bancorp, Inc. Announces Two New Members of the Board of Directors

SYKESVILLE, MD – May 8, 2012 – Carroll Bancorp, Inc. (OTCBB: CROL), the parent company of Carroll Community Bank (the “Bank”), today announced the election of two new directors to its Board of Directors – Robin L. Weisse and Mark S. Zinnamosca.

“We are very pleased to report the election of two new directors to Carroll Bancorp, Inc. and Carroll Community Bank, Board of Directors.  Robin and Mark bring valuable perspective and experience to the board and their election strengthens our resolve of becoming the premier community bank in Carroll County”, stated Russell J. Grimes, President and CEO of Carroll Bancorp, Inc.

Robin L. Weisse is a lawyer and has been licensed to practice law in the State of Maryland since 1982.  Ms. Weisse is a member of the Maryland State Bar Association, National Academy of Elder Law Attorneys and past president of the Carroll County Bar Association.  She has been a partner of Weisse Miller Law Group, concentrating on estate planning, estate and trust administration and elder law, since July 2010.  She is also owner of Weisse Group, LLC, a consulting group which analyzes emerging technology trends, which she formed in August, 2008.  Prior to that, Ms. Weisse was a partner of The Law & Mediation Center, LLP from 1989 to 2008.  Ms. Weisse lives in and her companies are located in Sykesville, Maryland.  Ms. Weisse’s legal background and her long-standing business and community contacts in our market areas qualify her to serve on the Board of Directors.

Mark S. Zinnamosca is a Certified Public Accountant and has been the owner of Zinnamosca & Associates CPAs located in Westminster, Maryland since 2002.  Mr. Zinnamosca has extensive experience in accounting, auditing, tax and management consulting for various businesses and industries.  He is a member of the American Institute and Maryland Association of Certified Public Accountants.  Mr. Zinnamosca has 18 years experience coaching youth and high school programs and is a member of BNI Westminster Chapter.  Mr. Zinnamosca’s public accounting knowledge and experience, as well as his long-standing business and community contacts in our market areas, qualify him to serve as a director of the Company and Carroll Community Bank.  Mr. Zinnamosca will serve as our “audit committee financial expert,” as defined in the SEC’s rules and regulations.

Carroll Bancorp, Inc.’s common stock trades on the OTC Bulletin Board (www.otcbb.com) under the symbol “CROL.”  For more information, visit our website at www.carrollcobank.com or contact Russell Grimes, President  & CEO at 410-795-1900.

About Carroll Bancorp, Inc. and Carroll Community Bank

Carroll Bancorp, Inc. is the holding company of Carroll Community Bank.  Carroll Community Bank, originally founded in 1870, is a state-chartered commercial bank with branch offices in the Eldersburg and Westminster of Carroll County, Maryland.  Carroll Community Bank operates as a community-oriented institution, offering a variety of loan and deposit products and serving the financial needs of its local community.


Carroll Bancorp, Inc. Announces First Quarter Results

SYKESVILLE, MD – April 11, 2012 – Carroll Bancorp, Inc. (OTCBB: CROL), the parent company of Carroll Community Bank (the “Bank”), today announced quarterly net income of $27,000 for the quarter ended March 31, 2012, which represents a 23% increase over the quarter ended March 31, 2011.  Earnings per basic and diluted common share was $0.08 for the 2012 three month period.

“We are extremely pleased to report the continued improvement in the Bank’s net income, asset quality and net interest margin.  The positive trend in our performance ratios demonstrates our continuing efforts to reduce the amount of problem assets and our ongoing efforts to improve the mix of our earning assets and deposit base.” stated Russell J. Grimes, President and CEO of Carroll Bancorp, Inc.

The increase in net income was the result of the growth in net interest income of $78,000, or 12%, as the Bank’s net interest margin improved to 3.25% for the three months ended March 31, 2012 compared to 2.85% for the three months ended March 31, 2011.  This was partially offset by an increase in non-interest expenses of $63,000, or 9%, as a result of additional costs related to becoming a public company, higher salary and benefit costs and expenses associated with the workout of foreclosed real estate.

Nonperforming loans decreased by $1.3 million, or 72%, to $517,000 from $1.9 million while total nonperforming assets decreased by $793,000, or 30%, to $1.9 million from $2.7 million.  The ratio of nonperforming loans to total loans was 0.81% and 3.03%, respectively, at March 31, 2012 and 2011 and the ratio of total nonperforming assets to total assets was 1.95% and 2.80%, respectively, at March 31, 2012 and 2011.  In addition, our loans past due 30-89 days decreased by $856,000, or 72%, to $450,000 at March 31, 2012 compared to $736,000 at March 31, 2011.  Loans 90 days or more past due are considered nonperforming loans.

Carroll Bancorp, Inc.’s common stock trades on the OTC Bulletin Board (www.otcbb.com) under the symbol “CROL.”  For more information, visit our website at www.carrollcobank.com or contact Russell Grimes, President & CEO at 410-795-1900.

About Carroll Bancorp, Inc. and Carroll Community Bank

Carroll Bancorp, Inc. is the holding company of Carroll Community Bank.  Carroll Community Bank, originally founded in 1870, is a state-chartered commercial bank with branch offices in the Eldersburg and Westminster of Carroll County, Maryland.  Carroll Community Bank operates as a community-oriented institution, offering a variety of loan and deposit products and serving the financial needs of its local community.

Forward-Looking Statements: The statement in this release regarding improving asset mix is a forward-looking statement within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statement is based on our current beliefs and expectations and is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control.  In addition, such forward-looking statement is subject to assumptions with respect to future business strategies and decisions that are subject to change.  Potential risks and uncertainties include, but are not limited to, further deterioration in general economic conditions in our market areas, the impact of new governmental regulations, and unexpected changes in interest rates, deposit flows and loan demand, as well as other risks and uncertainties, as described in Carroll Bancorp, Inc.’s Registration Statement on Form S-1, as amended, as filed with the Securities and Exchange Commission (File No. 333-172770).  We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.

2012 First Quarter Results


Carroll Bancorp, Inc. Announces Fourth Quarter and Year-End Results

SYKESVILLE, MD – January 26, 2012 – Carroll Bancorp, Inc. (OTCBB: CROL), the parent company of Carroll Community Bank (the “Bank”), today announced results of operations for the fourth quarter and the year ending December 31, 2011.  The net loss for the three months ended December 31, 2011 was $53,000 compared to $143,000 for the three months ended December 31, 2010.  The decrease in the net loss was the result of provision for loan losses decreasing by $141,000, or 56%, to $111,000 compared to $252,000 for the three month period ended December 31, 2010 and net interest income increased by $88,000, or 15%, to $684,000 compared to $596,000 for the three month period ended December 31, 2010.  These items were offset by gains on the sale of securities available for sale decreasing by $20,000, or 28%, to $52,000 compared to $72,000 for the three month period ending December 31, 2010 and write-downs on other real estate owned (“OREO”) increasing by $25,000 to $38,000 compared to $13,000 during the three months ended December 31, 2011.

Net income for the twelve month period ending December 31, 2011 was $20,000 compared to a net loss of $136,000 for the twelve months ending December 31, 2010.  The increase in net income of $156,000, or 115%, was the result of lower interest expense due to the decline in cost of funds on deposits and lower loan loss provision expense, partially offset by a higher level of noninterest expenses relating to OREO properties, salary and benefits, premises and equipment and data processing.

The Bank’s cost of funds decreased to 1.25% and 1.39%, respectively, for the three and twelve months ended December 31, 2011 compared to 1.70% and 1.80%, respectively, for the three and twelve months ended December 31, 2010.  The net interest margin improved to 3.05% and 2.98%, respectively, for the three and twelve months ending December 31, 2011 compared to 2.59% and 2.55%, respectively, for the three and twelve months ending December 31, 2010.

The provision for loan loss was $153,000 for the twelve months ended December 31, 2011 compared to $378,000 for the twelve months ended December 31, 2010, a decrease of $225,000, or 60%.   Nonperforming loans decreased by $2.3 million, or 78%, to $639,000 from $2.9 million while total nonperforming assets decreased by $694,000, or 22%, to $2.4 million from $3.1 million.  The ratio of nonperforming loans to total loans was 1.00% and 4.73%, respectively, at December 31, 2011 and 2010 and the ratio of total nonperforming assets to total assets was 2.51% and 3.25%, respectively, at December 31, 2011 and 2010.  In addition, our loans past due 30-89 days decreased by $856,000, or 72%, to $327,000 at December 31, 2011compared to $1.2 million at December 31, 2010.  Loans 90 days or more past due are considered nonperforming loans.

“The positive trend in our 2011 quarterly and year to date earnings and performance ratios demonstrate our continuing efforts to reduce the amount of problem assets and our ongoing efforts to improve the mix of our loan and deposit base.  The improved deposit mix has reduced the Bank’s overall cost of funds and has resulted in an improved net interest margin on a quarterly and year to date basis.  During this period the Bank’s core profitability has improved due to our focus on commercial lending to improve the asset mix and the Bank’s ongoing efforts to implement its strategic plan” stated Russell Grimes, President and CEO.

Carroll Bancorp, Inc. closed its initial public offering to depositors and investors in a subscription and community offering on October 12, 2011, raising approximately $3.6 million in capital.  Carroll Bancorp, Inc.’s common stock trades on the OTC Bulletin Board (www.otcbb.com) under the symbol “CROL.”  For more information, visit our website at www.carrollcobank.com or contact Russell Grimes, President & CEO at 410-795-1900.

About Carroll Bancorp, Inc. and Carroll Community Bank

Carroll Bancorp, Inc. is the holding company of Carroll Community Bank.  Carroll Community Bank, originally founded in 1870, is a state-chartered commercial bank with branch offices in the Eldersburg and Westminster of Carroll County, Maryland.  Carroll Community Bank operates as a community-oriented institution, offering a variety of loan and deposit products and serving the financial needs of its local community.

Forward-Looking Statements: The statement in this release regarding improving asset mix is a forward-looking statement within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such statement is based on our current beliefs and expectations and is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control.  In addition, such forward-looking statement is subject to assumptions with respect to future business strategies and decisions that are subject to change.  Potential risks and uncertainties include, but are not limited to, further deterioration in general economic conditions in our market areas, the impact of new governmental regulations, and unexpected changes in interest rates, deposit flows and loan demand, as well as other risks and uncertainties, as described in Carroll Bancorp, Inc.’s Registration Statement on Form S-1, as amended, as filed with the Securities and Exchange Commission (File No. 333-172770).  We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.