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Glen Burnie Bancorp Announces Second Quarter 2017 Results

GLEN BURNIE, Md., Aug. 03, 2017 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp (“Bancorp”) (NASDAQ:GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income increased to $0.34 million, or $0.12 per basic and diluted common share for the second quarter of 2017 as compared to $0.31 million or $0.11 per basic and diluted common share for the second quarter of 2016, a 9.7% increase. On a quarter-over-quarter comparison, Bancorp’s second quarter net income is a 6.96% increase over the $0.32 million net income, or $0.11 per basic and diluted common share recorded for the first quarter of 2017.

Bancorp reported net income of $0.65 million, or $0.23 per basic and diluted common share for the first half of 2017, compared to $0.59 million, or $0.21 per basic and diluted common share for the first half of 2016, a 10.66% increase. Net loans increased by $15.2 million, or 5.96% when compared to June 30, 2016. The Bank now has total assets that exceed $396 million and 8 branch locations in Anne Arundel County Maryland. Bancorp, the oldest independent commercial bank in Anne Arundel County, will pay its 100th consecutive quarterly dividend on August 4, 2017.

"This is a very exciting time for our bank. Our growth and earnings expectations remain strong in the second half of 2017 through 2018, and our outlook continues to improve across our business," said John D. Long, President and Chief Executive Officer. "We are particularly pleased with the strategic hires we have made to support growth, bringing new leaders to nearly all key areas. The Bank’s strong financial performance in the second quarter of 2017 was driven by organic growth, attractive low-cost core deposit funding and improved credit performance. Our nonperforming loans decreased 23% on an annualized basis to $3.6 million at June 30, 2017 from $3.8 million at March 31, 2017. Growing our lending business while increasing profitability continues to be a priority as we believe that our community bank delivery model offers an attractive option to borrowers. We continue to make progress in expanding our lending platforms. Consumer indirect lending is a unique core competency for us that is based on the foundation of a consistent and disciplined underwriting process and an experienced management team. We remain deeply committed to serving the needs of the community through the development of new loan and deposit products designed to meet the financial needs in our community.”

Highlights from the First Six Months of 2017

The Bank continued its organic growth strategy in the second quarter of 2017 with total assets exceeding $396 million with favorable net loan growth supported by a 0.54% attractive cost of funds. Bancorp has strong liquidity and capital positions along with capacity for future growth, with total regulatory capital to risk weighted assets of approximately 14.65% at June 30, 2017.

Specific highlights include the following:

  • Return on average assets for the three-month period ended June 30, 2017 was 0.35% as compared to 0.32% and 0.31% for the three-month periods ended March 31, 2017 and June 30, 2016, respectively. Return on average equity for the three-month period ended June 30, 2017 was 4.00%, as compared to 3.76% and 3.59% for the three-month periods ended March 31, 2017 and June 30, 2016, respectively.

  • With consistent organic growth, total assets were $396.1 million at June 30, 2017 compared to $395.5 million at March 31, 2017, $388.4 million at December 31, 2016 and $395.8 million at June 30, 2016.

  • Total loans were $271.0 million at June 30, 2017, an increase of 0.49% from $269.7 million at March 31, 2017, an increase of 2.25% from $265.0 million at December 31, 2016 and an increase of 5.96% from $255.8 million at June 30, 2016.

  • Total deposits were $335.5 million at June 30, 2017, a decrease of 1.5% from $340.6 million at March 31, 2017, an increase of 0.67% from $333.2 million at December 31, 2016 and a decrease of 1.12% from $339.2 million at June 30, 2016. Non-interest bearing deposits were $105.6 million at June 30, 2017, an increase of 8.40% from $97.4 million at June 30, 2016.

  • Stockholders’ equity increased to $34.5 million at June 30, 2017, from $33.9 million at March 31, 2017 and $33.8 million at December 31, 2016, and decreased from $35.4 million at June 30, 2016. The increase is related primarily to corporate earnings, with the decrease driven primarily by the loss in other comprehensive income associated with the available for sale bond portfolio. The combined activity improved the book value of Bancorp’s common stock to $12.36 per share at June 30, 2017, compared to $12.16 per share at March 31, 2017, $12.10 per share at December 31, 2016 and $12.73 per share at June 30, 2016.

  • At June 30, 2017, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 13.60% at June 30, 2017 as compared to 13.14% at March 31, 2017, 13.63% at December 31, 2016 and 14.05% at June 30, 2016. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the bond portfolio.

  • Net interest income for the three-month period ended June 30, 2017 totaled $2.9 million, compared to $2.8 million for the first quarter of 2017 and $2.7 million for the same period of 2016. Earning asset leverage was the primary driver in year-over-year results, as average earning loans and investments increased to $360.8 million for the three-month period ended June 30, 2017, compared to $357.8 million for the same period of 2016.

  • Net interest margin for the three- and six-month period ended June 30, 2017 was 3.10% and 3.08%, compared to 2.98% and 3.11%, respectively, for the same periods of 2016. The net interest margin is primarily driven by declining yields on earning assets, as the balances of lower yielding investment securities and loans have continued to increase within the portfolio.

  • Nonperforming loans, which consist of nonaccrual loans, troubled debt restructurings, and accruing loans past due 90 days or more, decreased to $3.6 million at June 30, 2017 from $3.8 million at March 31, 2017 and December 31, 2016, and was $2.8 million at June 30, 2016.

  • The provision for loan losses for the three- and six-month period ended June 30, 2017 decreased $0.30 million and increased $0.17 million, respectively, compared to $0 million and $0.12 million, respectively, for the same periods of 2016. The decrease for the second quarter 2017 was primarily driven by improvement in the overall credit quality of the loan portfolio. As a result, the allowance for loan losses was $2.6 million at June 30, 2017, representing 0.96% of total loans, compared to $2.6 million, or 0.96% of total loans, at March 31, 2017 and $2.3 million, or 0.90% of total loans, at June 30, 2016.

Review of Financial Results

For the three-month periods ended June 30, 2017 and 2016

Net income for the three-month period ended June 30, 2017 was $0.34 million, compared to net income of $0.31 million for the three-month period ended June 30, 2016.

Net interest income for the three-month period ended June 30, 2017 totaled $2.9 million compared to $2.7 million for the same period of 2016.

Noninterest income for the three-month period ended June 30, 2017 was $0.31 million, compared to $0.32 million for the three-month period ended June 30, 2016.

Noninterest expense was $2.8 million for the three-month period ended June 30, 2017, compared to $2.7 million for the same period of 2016.

For the six-month periods ended June 30, 2017 and 2016

Net income for the six-month period ended June 30, 2017 was $0.65 million, compared to net income of $0.59 million for the six-month period ended June 30, 2016.

Net interest income for the six-month period ended June 30, 2017 totaled $5.7 million, compared to $5.5 million for the same period of 2016.

Noninterest income for the six-month period ended June 30, 2017 was $0.60 million, compared to the $0.63 million for the six-month period ended June 30, 2016.

Noninterest expense was $5.4 million, compared to $5.4 million for the same period of 2016.

Glen Burnie Bancorp Information

Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally-owned community bank with 8 branch offices serving Anne Arundel County. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at www.thebankofglenburnie.com.

Forward-Looking Statements

The statements contained herein that are not 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. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. 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
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
June 30, March 31, December 31, June 30,
2017 2017 2016 2016
(unaudited) (unaudited) (audited) (unaudited)
ASSETS
Cash and due from banks$14,487 $6,601 $6,946 $6,481
Interest bearing deposits with banks and federal funds sold 2,851 10,730 3,676 14,023
Total Cash and Cash Equivalents 17,338 17,331 10,622 20,504
Investment securities available for sale, at fair value 90,629 91,097 94,444 102,656
Restricted equity securities, at cost 1,440 1,228 1,230 1,230
Loans, net of deferred fees and costs 271,020 269,707 265,058 255,781
Less: Allowance for loan losses (2,599) (2,602) (2,484) (2,291)
Loans, net 268,421 267,105 262,574 253,490
Real estate acquired through foreclosure 114 114 114 201
Premises and equipment, net 3,547 3,611 3,638 3,576
Bank owned life insurance 9,428 9,377 9,328 9,465
Deferred tax assets, net 2,803 3,133 3,160 1,968
Accrued interest receivable 1,092 1,115 1,134 1,133
Accrued taxes receivable 631 645 674 776
Prepaid expenses 493 537 546 585
Other assets 190 222 968 210
Total Assets$396,126 $395,515 $388,432 $395,794
LIABILITIES
Noninterest-bearing deposits$105,582 $105,178 $100,090 $97,197
Interest-bearing deposits 229,899 235,396 233,147 242,098
Total Deposits 335,481 340,574 333,237 339,295
Short-term borrowings 15,000 10,000 10,000 0
Long-term borrowings 10,000 10,000 10,000 20,000
Defined pension liability 374 369 369 361
Accrued expenses and other liabilities 737 641 1,011 742
Total Liabilities 361,592 361,584 354,617 360,398
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,793,748, 2,790,260, 2,786,855 and 2,780,025 shares as of June 30, 2017, March 31, 2017, December 31, 2016 and June 30, 2016, respectively. 2,794 2,790 2,787 2,780
Additional paid-in capital 10,199 10,164 10,130 10,069
Retained earnings 21,803 21,745 21,708 21,754
Accumulated other comprehensive (loss) income (262) (768) (810) 793
Total Stockholders' Equity 34,534 33,931 33,815 35,396
Total Liabilities and Stockholders' Equity$396,126 $395,515 $388,432 $395,794


GLEN BURNIE BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
Interest income:
Loans, including fees $2,845 $2,749 $5,619 $5,585
Interest and dividends on securities 507 487 1,025 975
Deposits with banks and federal funds sold 31 32 62 59
Total Interest Income 3,383 3,268 6,706 6,619
Interest expense:
Deposits 327 377 659 769
Short-term borrowings 84 - 167 -
Long term borrowings 76 159 152 319
Total Interest Expense 487 536 978 1,088
Net Interest Income 2,896 2,732 5,728 5,531
Provision for loan losses (30) - 165 117
Net interest income after provision for loan losses 2,926 2,732 5,563 5,414
Noninterest income:
Service charges on deposit accounts 69 81 136 164
Other fees and commissions 167 171 328 330
Gain on securities sold 1 - 2 1
Income on life insurance 51 53 100 107
Other income 17 13 35 24
Total Noninterest Income 305 318 601 626
Noninterest expenses:
Salary and employee benefits 1,614 1,535 3,036 3,040
Occupancy and equipment expenses 249 249 517 509
Legal, accounting and other professional fees 262 192 468 422
Data processing and item processing services 143 172 312 334
FDIC insurance costs 64 77 124 154
Advertising and marketing related expenses 42 11 73 36
Loan collection costs 29 80 47 121
Telephone costs 59 50 114 95
Other expenses 368 332 727 660
Total Noninterest Expenses 2,830 2,698 5,418 5,371
Income before income taxes 401 352 746 669
Income tax expense 63 44 92 78
Net income $338 $308 $654 $591
Basic and diluted net income per common share $0.12 $0.11 $0.23 $0.21


GLEN BURNIE BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the Six Months ended June 30, 2017 and 2016 (Unaudited)
(dollars in thousands)
Accumulated
Other
Additional Comprehensive Total
Common Paid-in Retained (Loss) Stockholders'
Stock Capital Earnings Income Equity
Balance December 31, 2015$2,774 $9,986 $21,718 $(302) 34,176
Net income - - 591 - 591
Cash dividends, $0.20 per share - - (555) - (555)
Dividends reinvested under
dividend reinvestment plan 6 83 - - 89
Other comprehensive income - - - 1,095 1,095
Balance June 30, 2016$2,780 $10,069 $21,754 $793 $35,396
Accumulated
Other
Additional Comprehensive Total
Common Paid-in Retained (Loss) Stockholders'
Stock Capital Earnings Income Equity
Balance December 31, 2016$2,787 $10,130 $21,707 $(810) $33,814
Net income - - 654 - 654
Cash dividends, $0.20 per share - - (558) - (558)
Dividends reinvested under
dividend reinvestment plan 7 69 - - 76
Other comprehensive income - - - 548 548
Balance June 30, 2017$2,794 $10,199 $21,803 $(262) $34,534


THE BANK OF GLEN BURNIE
CAPTIAL RATIOS
(dollars in thousands)
To Be Well
Capitalized Under
To Be Considered Prompt Corrective
Adequately Capitalized Action Provisions
As of June 30, 2017:AmountRatio AmountRatio AmountRatio
(unaudited)
Common Equity Tier 1 Capital$33,83713.60% $11,1984.50% $16,1756.50%
Total Risk-Based Capital$36,45814.65% $19,9078.00% $24,88410.00%
Tier 1 Risk-Based Capital$33,83713.60% $14,9316.00% $19,9078.00%
Tier 1 Leverage$33,8378.61% $15,7174.00% $19,6475.00%
As of March 31, 2017:
(unaudited)
Common Equity Tier 1 Capital$33,75113.14% $11,5544.50% $16,6906.50%
Total Risk-Based Capital$36,39414.17% $20,5418.00% $25,67710.00%
Tier 1 Risk-Based Capital$33,75113.14% $15,4066.00% $20,5418.00%
Tier 1 Leverage$33,7518.62% $15,6644.00% $19,5805.00%
As of December 31, 2016:
(audited)
Common Equity Tier 1 Capital$33,96213.63% $11,2134.50% $16,1976.50%
Total Risk-Based Capital$36,47114.64% $19,9358.00% $24,91810.00%
Tier 1 Risk-Based Capital$33,96213.63% $14,9516.00% $19,9358.00%
Tier 1 Leverage$33,9628.68% $15,6594.00% $19,5745.00%
As of June 30, 2016:
(unaudited)
Common Equity Tier 1 Capital$33,92114.05% $10,8634.50% $16,1976.50%
Total Risk-Based Capital$36,21815.00% $19,3128.00% $24,91810.00%
Tier 1 Risk-Based Capital$33,92114.05% $14,4846.00% $19,9358.00%
Tier 1 Leverage$33,9218.57% $15,8334.00% $19,5745.00%


GLEN BURNIE BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(dollars In thousand except per share data)
Three Months Ended Six Months Ended Year Ended
June 30, March 31, June 30, June 30, June 30, December 31,
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited)
2017 2017 2016 2017 2016 2016
Financial Data:
Assets $396,126 $395,515 $395,794 $396,126 $395,794 $388,432
Investment securities 90,629 91,097 102,656 90,629 102,656 94,607
Loans, (net of deferred fees and costs) 271,020 269,707 255,781 271,020 255,781 265,058
Allowance for loan losses 2,599 2,602 2,291 2,599 2,291 2,484
Deposits 335,481 340,574 339,295 335,481 339,295 333,237
Borrowings 25,000 20,000 20,000 25,000 20,000 20,000
Stockholders' equity 34,534 33,931 35,396 34,534 35,396 33,814
Net income 338 316 308 654 591 1,101
Average Balances:
Assets $392,734 $391,669 $395,817 $392,194 $393,560 $392,923
Investment securities 91,549 92,745 101,636 92,147 99,526 99,628
Loans, (net of deferred fees and costs) 269,293 267,553 256,128 268,423 258,387 258,481
Deposits 336,720 336,468 340,261 336,594 338,124 337,320
Borrowings 21,269 20,433 20,000 20,851 20,000 20,000
Stockholders' equity 34,236 33,832 34,771 34,042 34,651 34,710
Performance Ratios:
Annualized return on average assets 0.35% 0.32% 0.31% 0.34% 0.30% 0.28%
Annualized return on average equity 4.00% 3.76% 3.59% 3.89% 3.46% 3.17%
Net Interest Margin 3.10% 3.07% 2.98% 3.08% 3.11% 3.17%
Dividend payout ratio 82.54% 88.29% 90.26% 84.86% 93.91% 100.96%
Book value per share $12.36 $12.16 $12.73 $12.36 $12.73 $12.10
Basic and diluted net income per share 0.12 0.11 0.11 0.23 0.21 0.40
Cash dividends declared per share 0.10 0.10 0.10 0.10 0.10 0.10
Basic and diluted weighted average
shares outstanding 2,792,445 2,789,012 2,776,546 2,790,738 2,776,053 2,780,477
Asset Quality Ratios:
Allowance for loan losses to loans 0.96% 0.96% 0.90% 0.96% 0.90% 0.94%
Nonperforming loans to avg. loans 1.33% 1.42% 1.11% 1.34% 1.10% 1.47%
Allowance for credit losses to
nonaccrual and past due loans 72.52% 68.35% 80.61% 72.52% 80.61% 65.59%
Net charge-offs annualize to avg. loans 0.04% 0.12% 0.03% 0.04% 0.76% 0.59%
Capital Ratios:
Common Equity Tier 1 Capital 13.60% 13.14% 14.05% 13.60% 14.05% 13.63%
Tier 1 Risk-based Capital Ratio 13.60% 13.14% 14.05% 13.60% 14.05% 13.63%
Leverage Ratio 8.61% 8.62% 8.57% 8.61% 8.57% 8.68%
Total Risk-Based Capital Ratio 14.65% 14.17% 15.00% 14.65% 15.00% 14.64%


For further information contact: Jeffrey D. Harris, Chief Financial Officer 410-768-8883 jdharris@bogb.net 106 Padfield Blvd Glen Burnie, MD 21061

Source:Glen Burnie Bancorp