Glen Burnie Bancorp Releases 3Q Earnings

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 income of $689,000 or $0.25 basic earnings per share in the quarter ended September 30, 2010 compared to net income of $527,000 or $0.20 basic earnings per share for the same three month period in 2009. For the nine months ending September 30, 2010, net income was $1,410,000 or $0.52 basic earnings per share as compared to net income of $1,472,000 or $0.53 basic earnings per share for the same period in 2009.

The bank achieved the following additional highlights:

• $7 million decrease in long-term borrowings
• $5 million payoff of Junior Subordinated Debentures
• 1.40% increase in year to date deposits
• 7.30% Tier 1 leveraged ratio, FDIC required level of 4.0%

Total interest income for the quarter ending September 30, 2010 was $4,608,000 as compared to $4,749,000 for the same period in 2009. Total interest income was $13,792,000 for the nine months ending September 30, 2010 as compared to $13,971,000 for the same period in 2009. For the three month period ending September 30, 2010, net interest income after provision for credit losses was $2,911,000 as compared to $2,763,000 for the same period in 2009. For the nine months ending September 30, 2010 net interest income after provision for credit losses was $8,436,000 as compared to $8,303,000 for the same period in 2009.

“The results for the third quarter, ending September 30, 2010, continue to reflect the benefits of our long-held approach to community banking. Our increase in income, as compared to the third quarter of last year, as well as our reduction of debt, are calming signs in this struggling economy,” commented Michael G. Livingston, President and Chief Executive Officer. “While the decrease in debt reduced the asset size of the Bancorp, it also reduced our interest expense, which has a positive effect on earnings.”

On October 5, 2010, Glen Burnie Bancorp paid its 73 ^rd consecutive dividend to shareholders of record at the close of business on September 24, 2010.

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 40 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 $348 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)		(audited)
		September		December
		30, 2010		31, 2009
Assets
Cash and due from banks		$6,705		$6,994
Interest bearing deposits		1,197		3,748
Federal funds sold		2,130		692
Investment securities		92,489		84,463
Common Stock in the Glen Burnie Statutory Trust I		-		155
Loans, net of allowance		225,908		235,883
Premises and equipment at cost, net of accumulated depreciation		4,054		4,121
Other real estate owned		215		25
Other assets		15,656		17,316
Total assets		$348,354		$353,397
Liabilities and Stockholders' Equity
Liabilities:
Deposits		$298,484		$294,358
Short-term borrowings		85		81
Long-term borrowings		20,003		27,034
Junior subordinated debentures owed to unconsolidated subsidiary trust		-		5,155
Other liabilities		2,154		1,620
Total liabilities		320,726		328,248
Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding September 30, 2010 2,697,364; December 31, 2009 2,683,015 shares		2,697		2,683
Surplus		9,301		9,191
Retained earnings		14,917		14,311
Accumulated other comprehensive income (loss), net of taxes (benefits)		713		(1,036	)
Total stockholders' equity		27,628		25,149
Total liabilities and stockholders' equity		$348,354		$353,397
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)
		2010		2009			2010		2009
Interest income on
Loans, including fees		$3,696		$3,853			$11,091		$11,430
U.S. Government agency securities		482		511			1,495		1,381
State and municipal securities		363		320			1,023		979
Other		67		65			183		181
Total interest income		4,608		4,749			13,792		13,971
Interest expense on
Deposits		923		1,246			2,867		3,769
Junior subordinated debentures		208		137			648		410
Long-term borrowings		266		266			791		793
Short-term borrowings		-		-			-		-
Total interest expense		1,397		1,649			4,306		4,972
Net interest income		3,211		3,100			9,486		8,999
Provision for credit losses		300		337			1,050		696
Net interest income after provision for credit losses		2,911		2,763			8,436		8,303
Other income
Service charges on deposit accounts		162		178			480		517
Other fees and commissions		226		227			618		609
Other non-interest income		87		(11	)		90		(11	)
Income on life insurance		67		68			201		205
Gains on investment securities		176		135			176		184
Total other income		718		597			1,565		1,504
Other expenses
Salaries and employee benefits		1,660		1,616			5,009		4,733
Impairment of securities		-		-			66		30
Occupancy		207		221			627		673
Other expenses		862		875			2,630		2,643
Total other expenses		2,729		2,712			8,332		8,079
Income before income taxes		900		648			1,669		1,728
Income tax expense		211		121			259		256
Net income		$689		$527			$1,410		$1,472
Net income per share of common stock		$0.25		$0.20			$0.52		$0.53
Weighted-average shares of common stock outstanding		2,692,329		2,673,759			2,687,724		2,753,571