EX-99.1 2 v130440_ex99-1.htm
 
 
 NEWS RELEASE
 
FOR IMMEDIATE RELEASE

Yvonne “Rie” Atkinson
 
 
ratkinson@bogb.net

GLEN BURNIE BANCORP RELEASES 3Q EARNINGS

GLEN BURNIE, MD (October 31, 2008) – Glen Burnie Bancorp (NASDAQ: GLBZ), parent company of The Bank of Glen Burnie, today announced results for the third quarter.

The company realized a net loss of $2,118,000 or $0.71 basic loss per share in the quarter ended September 30, 2008 compared to net income of $785,000 or $0.26 basic earnings per share for the same three-month period in 2007. This loss is a direct result of the government intervention into Fannie Mae and Freddie Mac. For the nine months ending September 30, 2008, net losses were $978,000 or $0.33 basic loss per share as compared to net income of $2,082,000 or $0.70 basic earnings per share for the same period in 2007.

Despite the loss the bank achieved the following highlights:
 
·
16.16% increase in year to date loans
 
·
6.32% increase in year to date deposits
 
·
10.27% Tier 1 leveraged ratio, FDIC required level of 4.0%

“As we previously reported in a Press Release dated September 10, 2008, the losses incurred were a result of actions taken by the government in relation to Fannie Mae and Freddie Mac which affected our securities portfolio. In the fourth quarter we will recognize a tax credit of $1,110,000. Had the Emergency Economic Stabilization Act of 2008 been enacted during the third quarter of 2008 the company would have recognized $132,000 in net income in the nine month period ending September 30, 2008.” commented Michael G. Livingston, President and Chief Executive Officer. “The company continues to have strong core earnings and remains extremely well capitalized.”

Total interest income for the quarter ending September 30, 2008 was $4,667,000 as compared to $4,476,000 for the same period in 2007. Total interest income was $13,572,000 for the nine months ending September 30, 2008 as compared to $13,350,000 for the same period in 2007. For the three month period ending September 30, 2008, net interest income after provision for credit losses was $2,882,000 as compared to $3,035,000 for the same period in 2007. For the nine months ending September 30, 2008 net interest income after provision for credit losses was $8,533,000 as compared to $8,835,000 for the same period in 2007.

On October 6, 2008, Glen Burnie Bancorp paid its 64th consecutive dividend to shareholders of record at the close of business on September 26, 2008.

The Bank of Glen Burnie has been awarded a 5-Star Superior Rating from BAUER FINANCIAL Reports, Inc., the nation’s leading independent bank research firm, for the past 26 consecutive quarters. This distinction denotes the highest level of strength, safety and performance measured by Bauer and is based on factors such as capitalization, liquidity, loan delinquency rate and historical performance.


Glen Burnie Bancorp, parent company to The Bank of Glen Burnie, currently maintains consolidated assets totaling more than $329 million. Founded in 1949, The Bank of Glen Burnie ® is a locally-owned community bank with eight branch offices serving Anne Arundel County. (www.thebankofglenburnie.com)
 
#  #  #  #
 
Certain information contained in this news release, which does not relate to historical financial information, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, which could cause the company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. For a more complete discussion of these and other risk factors, please see the company’s reports filed with the Securities and Exchange Commission.

 
Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands)

   
(unaudited)
      
   
September
  
December
  
   
30, 2008
  
31, 2007
  
Assets
          
           
Cash and due from banks
  
$
9,228
  
$
8,221
  
Interest bearing deposits
    
8,938
   
5,847
 
Federal funds sold
    
52
   
727
 
Investment securities
    
61,924
   
77,866
 
Common Stock in the Glen Burnie Statutory Trust I
    
155
   
155
 
Loans, net of allowance
    
232,034
   
199,753
 
Premises and equipment at cost, net of accumulated depreciation
    
3,129
   
3,088
 
Other real estate owned
    
600
   
50
 
Other assets
    
13,198
   
11,567
 
Total assets
  
$
329,258
  
$
307,274
  
               
               
Liabilities and Stockholders' Equity
              
               
Liabilities:
              
Deposits
  
$
268,895
  
$
252,917
  
Short-term borrowings
    
350
   
503
 
Long-term borrowings
    
27,081
   
17,107
 
Junior subordinated debentures owed to unconsolidated subsidiary trust
    
5,155
   
5,155
 
Other liabilities
    
1,722
   
1,856
 
Total liabilities
    
303,203
   
277,538
 
               
               
Stockholders' equity:
              
Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding September 30, 2008 2,968,462 shares; December 31, 2007 2,498,465 shares
    
2,968
   
2,499
 
Surplus
    
11,577
   
11,921
 
Retained earnings
    
13,194
   
15,750
 
Accumulated other comprehensive loss, net of tax benefits
    
(1,684
)
  
(434
)
Total stockholders' equity
    
26,055
   
29,736
 
               
Total liabilities and stockholders' equity
  
$
329,258
  
$
307,274
  
 
 
Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)

   
Three Months Ended
  
Nine Months Ended
  
   
September 30,
  
September 30,
  
   
(unaudited)
  
(unaudited)
  
   
2008
  
2007
  
2008
  
2007
  
                   
Interest income on
                  
Loans, including fees
  
$
3,780
  
$
3,411
  
$
10,642
  
$
9,833
  
U.S. Treasury and U.S. Government agency securities
    
455
   
604
   
1,572
   
1,997
  
State and municipal se1curities
    
353
   
338
   
1,073
   
1,114
  
Other
    
79
   
123
   
285
   
406
  
Total interest income
    
4,667
   
4,476
   
13,572
   
13,350
  
                           
Interest expense on
                          
Deposits
    
1,141
   
1,146
   
3,522
   
3,651
 
Junior subordinated debentures
    
137
   
137
   
410
   
410
 
Long-term borrowings
    
235
   
106
   
611
   
317
 
Short-term borrowings
    
33
   
52
   
50
   
87
 
Total interest expense
    
1,546
   
1,441
   
4,593
   
4,465
 
                           
Net interest income
    
3,121
   
3,035
   
8,979
   
8,885
 
                           
Provision for credit losses
    
239
   
0
   
446
   
50
 
                       
  
  
Net interest income after provision for credit losses
    
2,882
   
3,035
   
8,533
   
8,835
 
                           
Other income
                          
Service charges on deposit accounts
    
181
   
205
   
554
   
604
 
Other fees and commissions
    
237
   
249
   
652
   
690
 
Other non-interest income
    
(14
)
  
4
   
(11
)
  
13
 
Income on life insurance
    
67
   
66
   
203
   
198
 
Gains on investment securities
    
86
   
115
   
141
   
120
 
Total other income
    
557
   
639
   
1,539
   
1,625
 
                           
Other expenses
                          
Salaries and employee benefits
    
1,608
   
1,575
   
4,784
   
4,743
 
Occupancy
    
220
   
221
   
676
   
670
 
Impairment of securities
    
2,816
   
0
   
2,816
   
0
 
Other expenses
    
710
   
829
   
2,343
   
2,410
 
Total other expenses
    
5,354
   
2,625
   
10,619
   
7,823
 
                           
(Loss) income before income taxes
    
(1,915
)
  
1,049
   
(547
)
  
2,637
 
                           
Income tax expense
    
203
   
264
   
431
   
555
 
                           
Net (loss) income
  
$
(2,118
)
$
785
  
$
(978
)
$
2,082
  
                           
Net (loss) income per share of common stock
  
$
(0.71
)
$
0.26
  
$
(0.33
)
$
0.70
  
                           
Weighted-average shares of common stock outstanding
    
2,972,016
   
2,990,105
   
2,985,757
   
2,987,349