Maryland
|
52-1782444
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
101 Crain Highway, S.E.
|
|
Glen Burnie, Maryland
|
21061
|
(Address of principal executive offices)
|
(Zip Code)
|
Part I - Financial Information |
Page
|
|||
Item 1.
|
Consolidated Financial Statements:
|
|||
Condensed Consolidated Balance Sheets, September 30, 2014 (unaudited) and December 31, 2013 (audited)
|
3
|
|||
Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)
|
4
|
|||
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)
|
5
|
|||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013 (unaudited)
|
6
|
|||
Notes to Unaudited Condensed Consolidated Financial Statements
|
7
|
|||
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
13
|
||
Item 4.
|
Controls and Procedures
|
23
|
||
Part II - Other Information | ||||
Item 6.
|
Exhibits
|
24
|
||
Signatures
|
25
|
ITEM 1.
|
CONSOLIDATED FINANCIAL STATEMENTS |
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
ASSETS
|
(unaudited)
|
(audited)
|
||||||
Cash and due from banks
|
$ | 7,112 | $ | 9,214 | ||||
Interest-bearing deposits in other financial institutions
|
5,702 | 1,636 | ||||||
Federal funds sold
|
6,512 | 103 | ||||||
Cash and cash equivalents
|
19,326 | 10,953 | ||||||
Investment securities available for sale, at fair value
|
86,678 | 74,314 | ||||||
Federal Home Loan Bank stock, at cost
|
1,328 | 1,453 | ||||||
Maryland Financial Bank stock
|
30 | 30 | ||||||
Loans, less allowance for credit losses
|
||||||||
(September 30: $2,511; December 31: $2,972)
|
280,235 | 270,684 | ||||||
Premises and equipment, at cost, less accumulated depreciation
|
3,753 | 3,697 | ||||||
Other real estate owned
|
163 | 1,171 | ||||||
Cash value of life insurance
|
9,082 | 8,915 | ||||||
Other assets
|
4,649 | 5,977 | ||||||
Total assets
|
$ | 405,244 | $ | 377,194 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$ | 349,449 | $ | 323,803 | ||||
Long-term borrowings
|
20,000 | 20,000 | ||||||
Other liabilities
|
1,793 | 1,807 | ||||||
Total liabilities
|
371,242 | 345,610 | ||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock, par value $1, authorized 15,000,000 shares;
issued and outstanding: September 30: 2,757,490 shares; December 31: 2,747,370 shares |
2,757 | 2,747 | ||||||
Surplus
|
9,820 | 9,714 | ||||||
Retained earnings
|
20,908 | 20,301 | ||||||
Accumulated other comprehensive gain (loss), net of taxes
|
517 | (1,178 | ) | |||||
Total stockholders’ equity
|
34,002 | 31,584 | ||||||
Total liabilities and stockholders’ equity
|
$ | 405,244 | $ | 377,194 | ||||
See accompanying notes to condensed consolidated financial statements.
|
||||||||
- 3 - |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Interest income on:
|
||||||||||||||||
Loans, including fees
|
$ | 3,108 | $ | 3,251 | $ | 9,237 | $ | 9,302 | ||||||||
U.S. Treasury and U.S. Government agency securities
|
171 | 241 | 562 | 643 | ||||||||||||
State and municipal securities
|
357 | 429 | 1,026 | 1,273 | ||||||||||||
Other
|
22 | 19 | 68 | 60 | ||||||||||||
Total interest income
|
3,658 | 3,940 | 10,893 | 11,278 | ||||||||||||
Interest expense on:
|
||||||||||||||||
Deposits
|
505 | 511 | 1,403 | 1,609 | ||||||||||||
Short-term borrowings
|
- | 3 | - | 3 | ||||||||||||
Long-term borrowings
|
161 | 161 | 479 | 479 | ||||||||||||
Total interest expense
|
666 | 675 | 1,882 | 2,091 | ||||||||||||
Net interest income
|
2,992 | 3,265 | 9,011 | 9,187 | ||||||||||||
Provision for credit losses
|
125 | - | 275 | - | ||||||||||||
Net interest income after provision for credit losses
|
2,867 | 3,265 | 8,736 | 9,187 | ||||||||||||
Other income:
|
||||||||||||||||
Service charges on deposit accounts
|
112 | 163 | 349 | 433 | ||||||||||||
Other fees and commissions
|
241 | 251 | 602 | 612 | ||||||||||||
Other non-interest income
|
(5 | ) | (11 | ) | 9 | (1 | ) | |||||||||
Income on life insurance
|
56 | 59 | 167 | 175 | ||||||||||||
Gains on investment securities
|
361 | 150 | 581 | 274 | ||||||||||||
Total other income
|
765 | 612 | 1,708 | 1,493 | ||||||||||||
Other expenses:
|
||||||||||||||||
Salaries and employee benefits
|
1,657 | 1,720 | 5,003 | 5,048 | ||||||||||||
Occupancy
|
191 | 192 | 618 | 589 | ||||||||||||
Impairment of securities and stocks
|
- | 15 | - | 15 | ||||||||||||
Other expenses
|
1,147 | 911 | 3,121 | 2,594 | ||||||||||||
Total other expenses
|
2,995 | 2,838 | 8,742 | 8,246 | ||||||||||||
Income before income taxes
|
637 | 1,039 | 1,702 | 2,434 | ||||||||||||
Income tax expense
|
111 | 244 | 268 | 470 | ||||||||||||
Net income
|
$ | 526 | $ | 795 | $ | 1,434 | $ | 1,964 | ||||||||
Basic and diluted earnings per share of common stock
|
$ | 0.19 | $ | 0.29 | $ | 0.52 | $ | 0.72 | ||||||||
Weighted average shares of common stock outstanding
|
2,757,213 | 2,743,679 | 2,757,011 | 2,741,388 | ||||||||||||
Dividends declared per share of common stock
|
$ | 0.10 | $ | 0.10 | $ | 0.30 | $ | 0.30 |
- 4 - |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net income
|
$ | 526 | $ | 795 | $ | 1,434 | $ | 1,964 | ||||||||
Other comprehensive income, net of tax
|
||||||||||||||||
Unrealized gains (losses) on securities:
|
||||||||||||||||
Unrealized holding gains (losses) arising during the period
|
83 | (741 | ) | 2,045 | (3,275 | ) | ||||||||||
Reclassification adjustment for gains included in net income
|
(217 | ) | (90 | ) | (350 | ) | (165 | ) | ||||||||
Comprehensive income (loss)
|
$ | 392 | $ | (36 | ) | $ | 3,129 | $ | (1,476 | ) |
- 5 - |
Nine Months Ended September 30,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 1,434 | $ | 1,964 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation, amortization, and accretion
|
720 | 1,238 | ||||||
Provision for credit losses
|
275 | - | ||||||
Gains on disposals of assets, net
|
(364 | ) | (250 | ) | ||||
Provision on losses of other real estate owned
|
75 | - | ||||||
Income on investment in life insurance
|
(167 | ) | (175 | ) | ||||
Impairment losses on investment securities
|
15 | |||||||
Changes in assets and liabilities:
|
||||||||
Decrease in other assets
|
50 | 612 | ||||||
(Decrease) increase in other liabilities
|
(15 | ) | 79 | |||||
Net cash provided by operating activities
|
2,008 | 3,483 | ||||||
Cash flows from investing activities:
|
||||||||
Maturities and proceeds of available for sale mortgage-backed securities
|
13,612 | 13,375 | ||||||
Proceeds from maturities and sales of other investment securities
|
5,966 | 13,572 | ||||||
Purchases of investment securities
|
(28,954 | ) | (21,110 | ) | ||||
Sale of Federal Home Loan Bank stock
|
125 | (54 | ) | |||||
Proceeds from sales of other real estate
|
917 | 273 | ||||||
Increase in loans, net
|
(9,826 | ) | (12,680 | ) | ||||
Purchases of premises and equipment
|
(411 | ) | (179 | ) | ||||
Net cash used by investing activities
|
(18,571 | ) | (6,803 | ) | ||||
Cash flows from financing activities:
|
||||||||
Increase (decrease) in deposits, net
|
25,646 | (9,264 | ) | |||||
Increase in short-term borrowings, net
|
- | 3,100 | ||||||
Dividends paid
|
(826 | ) | (548 | ) | ||||
Common stock dividends reinvested
|
116 | 79 | ||||||
Net cash provided (used) by financing activities
|
24,936 | (6,633 | ) | |||||
Increase (decrease) in cash and cash equivalents
|
8,373 | (9,953 | ) | |||||
Cash and cash equivalents, beginning of year
|
10,953 | 18,628 | ||||||
Cash and cash equivalents, end of period
|
$ | 19,326 | $ | 8,675 |
- 6 - |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Basic and diluted:
|
||||||||||||||||
Net income
|
$ | 526,000 | $ | 795,000 | $ | 1,434,000 | $ | 1,964,000 | ||||||||
Weighted average common shares outstanding
|
2,757,213 | 2,743,679 | 2,757,011 | 2,741,388 | ||||||||||||
Basic and dilutive net income per share
|
$ | 0.19 | $ | 0.29 | $ | 0.52 | $ | 0.72 |
- 7 - |
- 8 - |
|
o Level 1 – Quoted prices in active markets for identical securities
|
|
|
|
o Level 2 – Other significant observable inputs (including quoted prices in active markets for similar securities)
|
|
|
|
o Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)
|
|
|
- 9 - |
(Dollars in Thousands)
|
||||||||||||||||
Fair
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Value
|
|||||||||||||
December 31, 2013
|
||||||||||||||||
Recurring:
|
||||||||||||||||
Investment securities available for sale (AFS)
|
$ | 574 | $ | 73,516 | $ | 224 | $ | 74,314 | ||||||||
Non-recurring:
|
||||||||||||||||
Maryland Financial Bank stock
|
- | - | 30 | 30 | ||||||||||||
Impaired loans
|
- | - | 4,745 | 4,745 | ||||||||||||
OREO
|
- | 1,171 | - | 1,171 | ||||||||||||
574 | 74,687 | 4,999 | 80,260 | |||||||||||||
Activity:
|
||||||||||||||||
Investment securities AFS
|
||||||||||||||||
Purchases of investment securities
|
- | 28,954 | - | 28,954 | ||||||||||||
Sales, calls and maturities of investment securities
|
- | (19,578 | ) | - | (19,578 | ) | ||||||||||
Amortization/accretion of premium/discount
|
- | (407 | ) | - | (407 | ) | ||||||||||
Increase (decrease) in market value
|
46 | 3,475 | (126 | ) | 3,395 | |||||||||||
Loans
|
||||||||||||||||
New impaired loans
|
- | - | 3,819 | 3,819 | ||||||||||||
Payments and other loan reductions
|
- | - | (1,444 | ) | (1,444 | ) | ||||||||||
Change in total provision
|
- | - | 447 | 447 | ||||||||||||
OREO
|
||||||||||||||||
Sales of OREO
|
- | (917 | ) | - | (917 | ) | ||||||||||
Loss on disposal of OREO
|
- | (16 | ) | - | (16 | ) | ||||||||||
Write-down of OREO
|
- | (75 | ) | - | (75 | ) | ||||||||||
September 30, 2014
|
||||||||||||||||
Recurring:
|
||||||||||||||||
Investment securities AFS
|
620 | 85,960 | 98 | 86,678 | ||||||||||||
Non-recurring:
|
||||||||||||||||
Maryland Financial Bank stock
|
- | - | 30 | 30 | ||||||||||||
Impaired loans
|
- | - | 7,567 | 7,567 | ||||||||||||
OREO
|
- | 163 | - | 163 | ||||||||||||
$ | 620 | $ | 86,123 | $ | 7,695 | $ | 94,438 |
- 10 - |
September 30, 2014
|
December 31, 2013
|
|||||||||||||||
(In Thousands)
|
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Financial assets:
|
||||||||||||||||
Cash and due from banks
|
$ | 7,112 | $ | 7,112 | $ | 9,214 | $ | 9,214 | ||||||||
Interest-bearing deposits
|
5,702 | 5,702 | 1,636 | 1,636 | ||||||||||||
Federal funds sold
|
6,512 | 6,512 | 103 | 103 | ||||||||||||
Investment securities
|
86,678 | 86,678 | 74,314 | 74,314 | ||||||||||||
Investments in restricted stock
|
1,328 | 1,328 | 1,453 | 1,453 | ||||||||||||
Ground rents
|
169 | 169 | 169 | 169 | ||||||||||||
Loans, net
|
280,235 | 274,896 | 270,684 | 270,684 | ||||||||||||
Accrued interest receivable
|
1,211 | 1,211 | 1,509 | 1,509 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
349,449 | 317,821 | 323,803 | 291,046 | ||||||||||||
Long-term borrowings
|
20,000 | 20,924 | 20,000 | 21,032 | ||||||||||||
Dividends payable
|
276 | 276 | 275 | 275 | ||||||||||||
Accrued interest payable
|
40 | 40 | 29 | 29 | ||||||||||||
Off-balance sheet commitments
|
23,551 | 23,551 | 23,901 | 23,901 |
Securities available for sale:
|
Less than 12 months
|
12 months or more
|
Total
|
|||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
|||||||||||||||||||
|
|
|||||||||||||||||||||||
Obligations of U.S. Govt Agencies
|
$ | 5,410 | $ | 37 | $ | - | $ | - | $ | 5,410 | $ | 37 | ||||||||||||
State and Municipal
|
- | - | 5,113 | 79 | 5,113 | 79 | ||||||||||||||||||
Corporate Trust Preferred
|
- | - | 98 | 149 | 98 | 149 | ||||||||||||||||||
Mortgage Backed
|
14,707 | 73 | 20,744 | 998 | 35,451 | 1,071 | ||||||||||||||||||
$ | 20,117 | $ | 110 | $ | 25,955 | $ | 1,226 | $ | 46,072 | $ | 1,336 |
- 11 - |
At
|
At
|
|||||||
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Dollars in Thousands)
|
||||||||
Estimated credit losses, beginning of year
|
$ | 3,262 | $ | 3,247 | ||||
Credit losses - no previous OTTI recognized
|
- | - | ||||||
Credit losses - previous OTTI recognized
|
- | 15 | ||||||
Estimated credit losses, end of period
|
$ | 3,262 | $ | 3,262 |
- 12 - |
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
- 13 - |
- 14 - |
At September 30, 2014
|
90 Days or
|
|||||||||||||||||||
(Dollars in Thousands)
|
30-89 Days
|
More and
|
||||||||||||||||||
Current
|
Past Due
|
Still Accruing
|
Nonaccrual
|
Total
|
||||||||||||||||
Commercial and industrial
|
$ | 3,505 | $ | - | $ | - | $ | - | $ | 3,505 | ||||||||||
Commercial real estate
|
65,254 | 153 | - | 1,131 | 66,538 | |||||||||||||||
Consumer and indirect
|
86,086 | 1,201 | 18 | 522 | 87,827 | |||||||||||||||
Residential real estate
|
124,304 | 873 | 50 | 800 | 126,027 | |||||||||||||||
$ | 279,149 | $ | 2,227 | $ | 68 | $ | 2,453 | $ | 283,897 | |||||||||||
At December 31, 2013
|
90 Days or
|
|||||||||||||||||||
(Dollars in Thousands)
|
30-89 Days
|
More and
|
||||||||||||||||||
Current
|
Past Due
|
Still Accruing
|
Nonaccrual
|
Total
|
||||||||||||||||
Commercial and industrial
|
$ | 4,159 | $ | - | $ | - | $ | 14 | $ | 4,173 | ||||||||||
Commercial real estate
|
66,191 | 173 | 1,177 | 1,238 | 68,779 | |||||||||||||||
Consumer and indirect
|
71,755 | 1,137 | - | 338 | 73,230 | |||||||||||||||
Residential real estate
|
126,934 | 157 | 431 | 1,123 | 128,645 | |||||||||||||||
$ | 269,039 | $ | 1,467 | $ | 1,608 | $ | 2,713 | $ | 274,827 |
At
|
At
|
|||||||
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Dollars in Thousands)
|
||||||||
Restructured loans
|
$ | - | $ | - | ||||
Non-accrual and 90 days or more and still accruing loans to gross loans
|
0.88 | % | 1.58 | % | ||||
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans
|
99.60 | % | 68.78 | % |
- 15 - |
(Dollars in thousands)
|
||||||||||||||||||||
September 30, 2014
|
Recorded Investment
|
Unpaid
Principal Balance
|
Interest
Income Recognized
|
Specific
Reserve
|
Average Recorded Investment
|
|||||||||||||||
Impaired loans with specific reserves:
|
||||||||||||||||||||
Real-estate - mortgage:
|
||||||||||||||||||||
Residential
|
$ | 651 | 651 | 18 | 206 | 662 | ||||||||||||||
Commercial
|
1,131 | 1,131 | 2 | 148 | 1,178 | |||||||||||||||
Consumer
|
220 | 220 | 14 | 106 | 220 | |||||||||||||||
Installment
|
- | - | - | - | - | |||||||||||||||
Home Equity
|
- | - | - | - | - | |||||||||||||||
Commercial
|
256 | 256 | 8 | 256 | 260 | |||||||||||||||
Total impaired loans with specific reserves
|
$ | 2,258 | 2,258 | 42 | 716 | 2,320 | ||||||||||||||
Impaired loans with no specific reserve:
|
||||||||||||||||||||
Real-estate - mortgage:
|
||||||||||||||||||||
Residential
|
$ | 715 | 912 | 2 | n/a | 448 | ||||||||||||||
Commercial
|
4,662 | 4,662 | 151 | n/a | 4,734 | |||||||||||||||
Consumer
|
208 | 208 | - | n/a | - | |||||||||||||||
Installment
|
353 | 353 | - | n/a | - | |||||||||||||||
Home Equity
|
- | - | - | n/a | - | |||||||||||||||
Commercial
|
87 | 87 | 3 | n/a | 89 | |||||||||||||||
Total impaired loans with no specific reserve
|
$ | 6,025 | 6,222 | 156 | - | 5,271 |
- 16 - |
(Dollars in thousands)
|
||||||||||||||||||||
December 31, 2013
|
Recorded Investment
|
Unpaid
Principal Balance
|
Interest
Income Recognized
|
Specific
Reserve
|
Average Recorded Investment
|
|||||||||||||||
Impaired loans with specific reserves:
|
||||||||||||||||||||
Real-estate - mortgage:
|
||||||||||||||||||||
Residential
|
$ | 559 | 559 | 16 | 155 | 564 | ||||||||||||||
Commercial
|
2,187 | 2,187 | 56 | 551 | 2,272 | |||||||||||||||
Consumer
|
394 | 394 | 21 | 179 | 394 | |||||||||||||||
Installment
|
- | - | - | - | - | |||||||||||||||
Home Equity
|
- | - | - | - | - | |||||||||||||||
Commercial
|
279 | 279 | 11 | 279 | 287 | |||||||||||||||
Total impaired loans with specific reserves
|
$ | 3,419 | 3,419 | 104 | 1,164 | 3,517 | ||||||||||||||
Impaired loans with no specific reserve:
|
||||||||||||||||||||
Real-estate - mortgage:
|
||||||||||||||||||||
Residential
|
$ | 1,070 | 1,070 | 39 | n/a | 1,071 | ||||||||||||||
Commercial
|
1,177 | 1,177 | 47 | n/a | 1,232 | |||||||||||||||
Consumer
|
11 | 11 | - | n/a | - | |||||||||||||||
Installment
|
180 | 180 | - | n/a | - | |||||||||||||||
Home Equity
|
52 | 52 | - | n/a | 51 | |||||||||||||||
Commercial
|
- | - | - | n/a | - | |||||||||||||||
Total impaired loans with no specific reserve
|
$ | 2,490 | 2,490 | 86 | - | 2,354 |
|
1
|
Superior – minimal risk (normally supported by pledged deposits, United States government securities, etc.)
|
|
2
|
Above Average – low risk. (all of the risks associated with this credit based on each of the bank’s creditworthiness criteria are minimal)
|
|
3
|
Average – moderately low risk. (most of the risks associated with this credit based on each of the bank’s creditworthiness criteria are minimal)
|
|
4
|
Acceptable – moderate risk. (the weighted overall risk associated with this credit based on each of the bank’s creditworthiness criteria is acceptable)
|
|
5
|
Other Assets Especially Mentioned – moderately high risk. (possesses deficiencies which corrective action by the bank would remedy; potential watch list)
|
|
6
|
Substandard – (the bank is inadequately protected and there exists the distinct possibility of sustaining some loss if not corrected)
|
|
7
|
Doubtful – (weaknesses make collection or liquidation in full, based on currently existing facts, improbable)
|
|
8
|
Loss – (of little value; not warranted as a bankable asset)
|
- 17 - |
Commercial
|
Consumer
|
|||||||||||||||||||
September 30, 2014
|
and
|
Commercial
|
and
|
Residential
|
||||||||||||||||
(Dollars in Thousands)
|
Industrial
|
Real Estate
|
Indirect
|
Real Estate
|
Total
|
|||||||||||||||
Pass
|
$ | 2,983 | $ | 65,395 | $ | 85,524 | $ | 123,067 | $ | 276,969 | ||||||||||
Special mention
|
179 | 1,089 | 1,731 | 2,350 | 5,349 | |||||||||||||||
Substandard
|
343 | 54 | 432 | 407 | 1,236 | |||||||||||||||
Doubtful
|
- | - | 140 | - | 140 | |||||||||||||||
Loss
|
- | - | - | 203 | 203 | |||||||||||||||
$ | 3,505 | $ | 66,538 | $ | 87,827 | $ | 126,027 | $ | 283,897 | |||||||||||
Non-accrual
|
- | 1,131 | 522 | 800 | 2,453 | |||||||||||||||
Troubled debt restructures
|
- | - | - | - | - | |||||||||||||||
Number of TDRs contracts
|
- | - | - | - | - | |||||||||||||||
Non-performing TDRs
|
- | - | - | - | - | |||||||||||||||
Number of TDR accounts
|
- | - | - | - | - | |||||||||||||||
Commercial
|
Consumer
|
|||||||||||||||||||
December 31, 2013
|
and
|
Commercial
|
and
|
Residential
|
||||||||||||||||
(Dollars in Thousands)
|
Industrial
|
Real Estate
|
Indirect
|
Real Estate
|
Total
|
|||||||||||||||
Pass
|
$ | 3,595 | $ | 59,915 | $ | 71,554 | $ | 126,774 | $ | 261,838 | ||||||||||
Special mention
|
299 | 5,500 | 1,102 | 1,312 | 8,213 | |||||||||||||||
Substandard
|
279 | 3,364 | 508 | 559 | 4,710 | |||||||||||||||
Doubtful
|
- | - | 66 | - | 66 | |||||||||||||||
Loss
|
- | - | - | - | - | |||||||||||||||
$ | 4,173 | $ | 68,779 | $ | 73,230 | $ | 128,645 | $ | 274,827 | |||||||||||
Non-accrual
|
14 | 1,238 | 338 | 1,123 | 2,713 | |||||||||||||||
Troubled debt restructures
|
- | - | - | - | - | |||||||||||||||
Number of TDRs contracts
|
- | - | - | - | - | |||||||||||||||
Non-performing TDRs
|
- | - | - | - | - | |||||||||||||||
Number of TDR accounts
|
- | - | - | - | - |
- 18 - |
Commercial
|
Consumer
|
|||||||||||||||||||||||
September 30, 2014
|
and
|
Commercial
|
and
|
Residential
|
||||||||||||||||||||
(Dollars in Thousands)
|
Industrial
|
Real Estate
|
Indirect
|
Real Estate
|
Unallocated
|
Total
|
||||||||||||||||||
Balance, beginning of year
|
$ | 413 | $ | 898 | $ | 1,188 | $ | 593 | $ | (120 | ) | $ | 2,972 | |||||||||||
Provision for credit losses
|
(2 | ) | (434 | ) | 416 | 368 | (73 | ) | 275 | |||||||||||||||
Recoveries
|
5 | 128 | 177 | 6 | - | 316 | ||||||||||||||||||
Loans charged off
|
(29 | ) | (243 | ) | (545 | ) | (235 | ) | - | (1,052 | ) | |||||||||||||
Balance, end of quarter
|
$ | 387 | $ | 349 | $ | 1,236 | $ | 732 | $ | (193 | ) | $ | 2,511 | |||||||||||
Individually evaluated for impairment:
|
||||||||||||||||||||||||
Balance in allowance
|
$ | 256 | $ | 148 | $ | 106 | $ | 206 | $ | - | $ | 716 | ||||||||||||
Related loan balance
|
343 | 5,793 | 781 | 1,366 | - | 8,283 | ||||||||||||||||||
Collectively evaluated for impairment:
|
||||||||||||||||||||||||
Balance in allowance
|
$ | 131 | $ | 201 | $ | 1,130 | $ | 526 | $ | (193 | ) | $ | 1,795 | |||||||||||
Related loan balance
|
3,162 | 60,745 | 87,046 | 124,661 | - | 275,614 | ||||||||||||||||||
Commercial
|
Consumer
|
|||||||||||||||||||||||
December 31, 2013
|
and
|
Commercial
|
and
|
Residential
|
||||||||||||||||||||
(Dollars in Thousands)
|
Industrial
|
Real Estate
|
Indirect
|
Real Estate
|
Unallocated
|
Total
|
||||||||||||||||||
Balance, beginning of year
|
$ | 542 | $ | 1,183 | $ | 1,057 | $ | 393 | $ | 133 | $ | 3,308 | ||||||||||||
Provision for credit losses
|
46 | (374 | ) | 469 | 372 | (253 | ) | 260 | ||||||||||||||||
Recoveries
|
27 | 89 | 314 | 7 | - | 437 | ||||||||||||||||||
Loans charged off
|
(202 | ) | - | (652 | ) | (179 | ) | - | (1,033 | ) | ||||||||||||||
Balance, end of year
|
$ | 413 | $ | 898 | $ | 1,188 | $ | 593 | $ | (120 | ) | $ | 2,972 | |||||||||||
Individually evaluated for impairment:
|
||||||||||||||||||||||||
Balance in allowance
|
$ | 279 | $ | 551 | $ | 179 | $ | 155 | $ | - | $ | 1,164 | ||||||||||||
Related loan balance
|
279 | 3,364 | 637 | 1,629 | - | 5,909 | ||||||||||||||||||
Collectively evaluated for impairment:
|
||||||||||||||||||||||||
Balance in allowance
|
$ | 134 | $ | 347 | $ | 1,009 | $ | 438 | $ | (120 | ) | $ | 1,808 | |||||||||||
Related loan balance
|
3,894 | 65,415 | 72,593 | 127,016 | - | 268,918 |
- 19 - |
At
|
At
|
|||||||
September 30,
|
September 30,
|
|||||||
2014
|
2013
|
|||||||
(Dollars in Thousands)
|
||||||||
Average loans
|
$ | 278,523 | $ | 253,350 | ||||
Net charge-offs to average loans (annualized)
|
0.35 | % | 0.17 | % |
Nine Months Ended September 30,
|
||||||||
2014
|
2013
|
|||||||
(Dollars in Thousands)
|
||||||||
Beginning balance
|
$ | 200 | $ | 200 | ||||
Provisions charged to operations
|
- | - | ||||||
Ending balance
|
$ | 200 | $ | 200 |
- 20 - |
Over 1
|
||||||||||||||||||||
Over 3 to
|
Through
|
Over
|
||||||||||||||||||
0-3 Months
|
12 Months
|
5 Years
|
5 Years
|
Total
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash and due from banks
|
$ | - | $ | - | $ | - | $ | - | $ | 7,112 | ||||||||||
Federal funds and overnight deposits
|
12,214 | - | - | - | 12,214 | |||||||||||||||
Securities
|
- | - | 5,704 | 80,974 | 86,678 | |||||||||||||||
Loans
|
13,922 | 8,706 | 61,375 | 196,232 | 280,235 | |||||||||||||||
Fixed assets
|
- | - | - | - | 3,753 | |||||||||||||||
Other assets
|
- | - | - | - | 15,252 | |||||||||||||||
Total assets
|
$ | 26,136 | $ | 8,706 | $ | 67,079 | $ | 277,206 | $ | 405,244 | ||||||||||
Liabilities:
|
||||||||||||||||||||
Demand deposit accounts
|
$ | - | $ | - | $ | - | $ | - | $ | 91,020 | ||||||||||
NOW accounts
|
30,344 | - | - | - | 30,344 | |||||||||||||||
Money market deposit accounts
|
20,167 | - | - | - | 20,167 | |||||||||||||||
Savings accounts
|
75,973 | - | - | - | 75,973 | |||||||||||||||
IRA accounts
|
3,963 | 11,997 | 22,945 | 4,954 | 43,859 | |||||||||||||||
Certificates of deposit
|
11,498 | 24,242 | 46,428 | 5,918 | 88,086 | |||||||||||||||
Long-term borrowings
|
- | - | 20,000 | - | 20,000 | |||||||||||||||
Other liabilities
|
- | - | - | - | 1,793 | |||||||||||||||
Stockholders’ equity:
|
- | - | - | - | 34,002 | |||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 141,945 | $ | 36,239 | $ | 89,373 | $ | 10,872 | $ | 405,244 | ||||||||||
GAP
|
$ | (115,809 | ) | $ | (27,533 | ) | $ | (22,294 | ) | $ | 266,334 | |||||||||
Cumulative GAP
|
$ | (115,809 | ) | $ | (143,342 | ) | $ | (165,636 | ) | $ | 100,698 | |||||||||
Cumulative GAP as a % of total assets
|
-28.58 | % | -35.37 | % | -40.87 | % | 24.85 | % |
Immediate Change in Rates
|
||||||||||||||||
-200 | -100 | +100 | +200 | |||||||||||||
Basis Points
|
Basis Points
|
Basis Points
|
Basis Points
|
|||||||||||||
% Change in Net Interest Income
|
-4.1 | % | -0.9 | % | 1.2 | % | 3.2 | % | ||||||||
% Change in Economic Value of Equity
|
-14.0 | % | -4.8 | % | -4.0 | % | -10.5 | % |
- 21 - |
- 22 - |
- 23 - |
3.1
|
Articles of Incorporation (incorporated by reference to Exhibit 3.1 to Amendment No. 1 to the Registrant’s Form 8-A filed December 27, 1999, File No. 0-24047)
|
3.2
|
Articles of Amendment, dated October 8, 2003 (incorporated by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q for the Quarter ended March 31, 2003, File No. 0-24047)
|
3.3
|
Articles Supplementary, dated November 16, 1999 (incorporated by reference to Exhibit 3.3 to the Registrant’s Current Report on Form 8-K filed December 8, 1999, File No. 0-24047)
|
3.4
|
By-Laws (incorporated by reference to Exhibit 3.4 to the Registrant’s Quarterly Report on Form 10-Q for the Quarter ended March 31, 2003, File No. 0-24047)
|
10.1
|
Glen Burnie Bancorp Director Stock Purchase Plan (incorporated by reference to Exhibit 99.1 to Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S-8, File No.33-62280)
|
10.2
|
The Bank of Glen Burnie Employee Stock Purchase Plan (incorporated by reference to Exhibit 99.1 to Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S-8, File No. 333-46943)
|
10.3
|
Amended and Restated Change-in-Control Severance Plan (incorporated by reference to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2001, File No. 0-24047)
|
31.1
|
Rule 15d-14(a) Certification of Chief Executive Officer
|
31.2
|
Rule 15d-14(a) Certification of Chief Financial Officer
|
32.1
|
Section 1350 Certifications
|
99.1
|
Press release dated November 7, 2014
|
101
|
Interactive data files providing financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Balance Sheets, September 30, 2014 and December 31, 2013, (ii) Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2014 and 2013, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2014 and 2013, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013, and (v) Notes to Unaudited Condensed Consolidated Financial Statements
|
- 24 - |
GLEN BURNIE BANCORP | |||
(Registrant) | |||
Date: November 14, 2014 | By: | /s/ Michael G. Livingston. | |
Michael G. Livingston | |||
President, Chief Executive Officer | |||
By: | /s/ John E. Porter | ||
John E. Porter | |||
Chief Financial Officer |
- 25 - |
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
|
|
(c)
|
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: November 14, 2014 | /s/ Michael G. Livingston | |
Michael G. Livingston
|
||
Chief Executive Officer
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
|
|
(c)
|
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: November 14, 2014 | /s/ John E. Porter | |
John E. Porter
|
||
Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company for the periods reflected therein.
|
Date: November 14, 2014 | /s/ Michael G. Livingston | |
Michael G. Livingston
|
||
President, Chief Executive Officer
|
/s/ John E. Porter | ||
John E. Porter
|
||
Chief Financial Officer
|
![]() |
N E W S R E L E A S E |
Contact:
|
Yvonne “Rie” Atkinson |
410-768-8857 (office) | |
ratkinson@bogb.net |
Glen Burnie Bancorp and Subsidiaries | |||||
Condensed Consolidated Balance Sheets | |||||
(dollars in thousands) | |||||
(unaudited) | (audited) | ||||
September | December | ||||
30, 2014 | 31, 2013 | ||||
Assets | |||||
Cash and due from banks | $ 7,112 | $ 9,214 | |||
Interest bearing deposits | 5,702 | 1,636 | |||
Federal funds sold | 6,512 | 103 | |||
Investment securities | 86,678 | 74,314 | |||
Loans, net of allowance | 280,235 | 270,684 | |||
Premises and equipment at cost, net of accumulated depreciation | 3,753 | 3,697 | |||
Other real estate owned | 163 | 1,171 | |||
Other assets | 15,089 | 16,375 | |||
Total assets | $ 405,244 | $ 377,194 | |||
Liabilities and Stockholders' Equity | |||||
Liabilities: | |||||
Deposits | $ 349,449 | $ 323,803 | |||
Long-term borrowings | 20,000 | 20,000 | |||
Other liabilities | 1,793 | 1,807 | |||
Total liabilities | 371,242 | 345,610 | |||
Stockholders' equity: | |||||
Common stock, par value $1, authorized 15,000,000 shares; | |||||
issued and outstanding September 30, 2014 2,754,305; | |||||
December 31, 2013 2,747,370 shares | 2,757 | 2,747 | |||
Surplus | 9,820 | 9,714 | |||
Retained earnings | 20,908 | 20,301 | |||
Accumulated other comprehensive loss, net of tax benefits | 517 | (1,178) | |||
Total stockholders' equity | 34,002 | 31,584 | |||
Total liabilities and stockholders' equity | $ 405,244 | $ 377,194 | |||
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) | ||||
2014 | 2013 | 2014 | 2013 | ||
Interest income on | |||||
Loans, including fees | $ 3,108 | $ 3,251 | $ 9,237 | $ 9,302 | |
U.S. Government agency securities | 171 | 241 | 562 | 643 | |
State and municipal securities | 357 | 429 | 1,026 | 1,273 | |
Other | 22 | 19 | 68 | 60 | |
Total interest income | 3,658 | 3,940 | 10,893 | 11,278 | |
Interest expense on | |||||
Deposits | 505 | 511 | 1,403 | 1,609 | |
Short-term borrowings | - | 3 | - | 3 | |
Long-term borrowings | 161 | 161 | 479 | 479 | |
Total interest expense | 666 | 675 | 1,882 | 2,091 | |
Net interest income | 2,992 | 3,265 | 9,011 | 9,187 | |
Provision for credit losses | 125 | - | 275 | - | |
Net interest income after provision for credit losses | 2,867 | 3,265 | 8,736 | 9,187 | |
Other income | |||||
Service charges on deposit accounts | 112 | 163 | 349 | 433 | |
Other fees and commissions | 241 | 251 | 602 | 612 | |
Other non-interest income | (5) | (11) | 9 | (1) | |
Income on life insurance | 56 | 59 | 167 | 175 | |
Gains on investment securities | 361 | 150 | 581 | 274 | |
Total other income | 765 | 612 | 1,708 | 1,493 | |
Other expenses | |||||
Salaries and employee benefits | 1,657 | 1,720 | 5,003 | 5,048 | |
Occupancy | 191 | 192 | 618 | 589 | |
Impairment of securities and stocks | - | 15 | - | 15 | |
Other expenses | 1,147 | 911 | 3,121 | 2,594 | |
Total other expenses | 2,995 | 2,838 | 8,742 | 8,246 | |
Income before income taxes | 637 | 1,039 | 1,702 | 2,434 | |
Income tax expense | 111 | 244 | 268 | 470 | |
Net income | $ 526 | $ 795 | $ 1,434 | $ 1,964 | |
Net income per share of common stock | $ 0.19 | $ 0.29 | $ 0.52 | $ 0.72 | |
Weighted-average shares of common stock outstanding | 2,757,213 | 2,743,679 | 2,757,011 | 2,741,388 | |
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