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  
 

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