Annapolis Bancorp Inc., the parent company of BankAnnapolis, announced a net income of $603,000 for the first quarter of 2007. This figure is a 12.6 percent drop compared with the first quarter of 2006, when net income was reported around $690,000. Annapolis Bancorp attributed the reduced earnings to a rise in the cost of funds, a drop in noninterest income and increased operating expenses, according to its filing. For the quarter, the bank reported a 3.2 percent increase in gross loans but a dip in total assets of $5 million.
