Frederick County Bancorp in Frederick, Md., said Friday that its second-quarter earnings rose nearly 140% from the same period last year, to $448,000, due to improved credit quality and sharply lower deposit costs.

The $312 million-asset company took no provision for loan losses in the quarter after setting aside $500,000 for loan losses in last year's second quarter. The company charged off just $79,000 of loans in the quarter, compared to chargeoffs of more than $700,000 in the same period last year.

Earnings were also aided by a steep drop in its interest expense resulting from continued low interest rates. Its interest expense fell 36% year over year, to $507,000.

Frederick County Bancorp is the holding company for the 11-year-old Frederick County Bank. The bank has five branches in the county, which sits about an hour from Baltimore and Washington, D.C.

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