Glen Burnie Bancorp (NASDAQ: GLBZ), parent company of The Bank of Glen Burnie ®, today reported fourth quarter and year end earnings for 2010.

For the quarter ended December 31, 2010, the company realized net earnings of $655,000 or $0.24 per basic and diluted earnings per share as compared to a net loss of $210,000 or $0.08 basic and diluted loss per share for the same period in 2009. Included in the 2009 results are higher provisions for loan loss reserve while the 2010 results include improved net interest income. Net interest income after provisions for credit losses for the fourth quarter of 2010 was $3,394,000 compared to $1,356,000 for the same three-month period in 2009.

Net income for the year ended December 31, 2010 was $2,064,785 or $0.76 per basic and diluted earnings per share as compared to net income of $1,262,462 or $0.46 per basic and diluted earnings per share in 2009. Net interest income after provisions for credit losses for the year ended December 31, 2010 was $11,830,012 as compared to $9,658,811 in 2009. Assets as of December 31, 2010 were $347,067,276 as compared to $353,396,697 as of December 31, 2009.

2010 Performance Highlights:
  • 63.5% increase in net income
  • 22.5% increase in net interest income after provisions for credit losses
  • 26.0% decrease in long term borrowings

Michael G. Livingston, President and Chief Executive Officer, stated “The Bank is pleased with the financial results being reported. The reduction of debt and the payoff of junior subordinated debentures had a positive effect on the 4 th quarter and year end numbers.” Mr. Livingston added “We have stayed committed to the traditional banking model and we thank the community for their support.”

Glen Burnie Bancorp declared four regular dividends in 2010, totaling forty cents ($0.40) per common share.

The Bank of Glen Burnie ® was voted Best Bank in the Maryland Gazette Readers Choice in 2010 and Business of the Year by the Northern Anne Arundel County Chamber of Commerce in January of 2011.

Glen Burnie Bancorp, parent company to The Bank of Glen Burnie ®, currently maintains consolidated assets totaling more than $340 million. Founded in 1949, The Bank of Glen Burnie ® is a 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)
December December
31, 2010     31, 2009
Assets
 
Cash and due from banks $6,492 $6,994
Interest bearing deposits 1,568 3,748
Federal funds sold 940 691
Investment securities 87,268 84,463
Common Stock in the Glen Burnie Statutory Trust I - 155
Loans, net of allowance 229,851 235,883
Premises and equipment at cost, net of accumulated depreciation 4,124 4,121
Other real estate owned 215 25
Other assets     16,609       17,317  
Total assets     $347,067       $353,397  
 
 
Liabilities and Stockholders' Equity
 
 
Liabilities:
Deposits $294,445 $294,358
Short-term borrowings 4,274 81
Long-term borrowings 20,000 27,034
Junior subordinated debentures owed to unconsolidated
subsidiary trust - 5,155
Other liabilities     2,015       1,619  
Total liabilities     320,734       328,247  
 
 
Stockholders' equity:

Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding December 31, 2010 2,702,091; December 31, 2008 2,683,015 shares
2,702 2,683
Surplus 9,335 9,191
Retained earnings 15,301 14,312
Accumulated other comprehensive loss, net of tax benefits (1,005 ) (1,036 )
                 
Total stockholders' equity     26,333       25,150  
 
Total liabilities and stockholders' equity     $347,067       $353,397  
 
 
 
Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)
 
 
Three Months Ended Twelve Months Ended
(unaudited) (audited) (unaudited) (audited)
December December December December
31, 2010     31, 2009 31, 2010     31, 2009
 
Interest income on
Loans, including fees $3,555 $3,819 $14,646 $15,249
U.S. Government agency securities 421 473 1,916 1,854
State and municipal securities 378 329 1,401 1,308
Other     33       52   216       233  
Total interest income     4,387       4,673   18,179       18,644  
 
Interest expense on
Deposits 830 1,168 3,697 4,937
Junior subordinated debentures 0 137 648 547
Long-term borrowings 162 265 953 1,058
Short-term borrowings     1       -   1       -  
Total interest expense     993       1,570   5,299       6,542  
 
Net interest income 3,394 3,103 12,880 12,102
 
Provision for credit losses 0 1,747 1,050 2,443
                             
Net interest income after provision for credit losses     3,394       1,356   11,830       9,659  
 
Other income
Service charges on deposit accounts 168 177 648 694
Other fees and commissions 251 218 869 827
Other non-interest income (135 ) 1 (45 ) (10 )
Income on life insurance 50 63 251 268
Gains on investment securities     (1 )     402   175       586  
Total other income     333       861   1,898       2,365  
 
Other expenses
Salaries and employee benefits 1,672 1,563 6,681 6,296
Impairment of securities 196 47 262 77
Occupancy 203 198 830 871
Other expenses     775       1,108   3,405       3,751  
Total other expenses     2,846       2,916   11,178       10,995  
 
(Loss) income before income taxes 881 (699 ) 2,550 1,029
 
Income tax (benefit)     226       (489 ) 485       (233 )
 
Net (loss) income     $655       ($210 ) $2,065       $1,262  
 
Net (loss) income per share of common stock     $0.24       ($0.08 ) $0.76       $0.46  
 
Weighted-average shares of common stock outstanding     2,697,619       2,678,560   2,690,218       2,734,524  
 

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