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Glen Burnie Bancorp Reports Operating Results (10-Q)

August 05, 2010 | About:
10qk

10qk

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Glen Burnie Bancorp (GLBZ) filed Quarterly Report for the period ended 2010-06-30.

Glen Burnie Bancorp has a market cap of $24.5 million; its shares were traded at around $9.11 with a P/E ratio of 20.2 and P/S ratio of 1.2. The dividend yield of Glen Burnie Bancorp stocks is 4.4%.

Highlight of Business Operations:

Glen Burnie Bancorp, a Maryland corporation (the “Company”), and its subsidiaries, The Bank of Glen Burnie (the “Bank”) and GBB Properties, Inc., both Maryland corporations, and Glen Burnie Statutory Trust I, a Connecticut business trust, had consolidated net income of $322,000 ($0.12 basic and diluted earnings per share) for the second quarter of 2010, compared to the second quarter 2009 consolidated net income of $490,000 ($0.18 basic and diluted income per share), a 34.29% decrease. Year-to-date net income was $721,000 ($0.27 basic and diluted earnings per share) for 2010, compared to the 2009 consolidated net income of $945,000 ($0.34 basic and diluted income per share), a 23.71% decrease. The decrease in earnings is primarily due to four areas of increased expense. First, the Bank increased its provision for credit losses for the current year. Second, the Company has started accruing for the $257,750 early repayment premium expense related to the planned September 7, 2010 repayment of the $5,155,000 in outstanding Trust Preferred Securities. Third, salaries and employee benefits increased in the 2010 period as compared to the 2009 period. Finally, the Bank recorded an impairment expense on securities of $66,184 in the second quarter of 2010.

Net Interest Income. The Company s consolidated net interest income prior to provision for credit losses for the three and six months ended June 30, 2010 was $3,181,000 and $6,275,000, respectively, compared to $3,034,000 and $5,899,000 for the same periods in 2009, an increase of $147,000 (4.85%) for the three months and an increase of $376,000 (6.37%) for the six month period.

Provision for Credit Losses. The Company made a provision for credit losses of $450,000 and $750,000 during the three and six month periods ended June 30, 2010 and $209,000 and $359,000 for credit losses during the three and six month periods ended June 30, 2009. As of June 30, 2010, the allowance for credit losses equaled 95.56% of non-accrual and past due loans compared to 117.61% at December 31, 2009 and 176.45% at June 30, 2009. During the three and six month periods ended June 30, 2010, the Company recorded net charge-offs of $50,000 and $428,000, compared to net charge-offs of $388,000 and $583,000 during the corresponding period of the prior year. On an annualized basis, net charge-offs for the 2010 period represent 0.36% of the average loan portfolio.

Other Income. Other income decreased from $493,000 for the three month period ended June 30, 2009, to $429,000 for the corresponding 2010 period, a $64,000 (12.98%) decrease. For the six month period, other income decreased from $907,000 at June 30, 2009, to $847,000 for the corresponding 2010 period, a $60,000 (6.62%) decrease. These decreases were related to less gains on sales of investments in the 2010 periods.

Other Expenses. Other expenses increased from $2,748,000 for the three month period ended June 30, 2009, to $2,842,000 for the corresponding 2010 period, a $94,000 (3.42%) increase. Other expenses increased from $5,367,000 for the six month period ended June 30, 2009, to $5,603,000 for the corresponding 2010 period, a $236,000 (4.40%) increase. The increases for the three and six month periods were primarily increases in salaries, health insurance and pension expenses. These increases were partially offset by a decrease in occupancy expenses for the three and six month periods primarily due to the relocation of a branch office from leased to owned space.

Deposits as of June 30, 2010, totaled $303,250,000, which is an increase of $8,892,000 (3.02%) from $294,358,000 at December 31, 2009. Demand deposits as of June 30, 2010, totaled $72,569,000, which is an increase of $4,761,000 (7.02%) from $67,808,000 at December 31, 2009. NOW accounts as of June 30, 2010, totaled $23,393,000, which is an increase of $1,040,000 (4.65%) from $22,353,000 at December 31, 2009. Money market accounts as of June 30, 2010, totaled $15,942,000, which is an increase of $658,000 (4.31%), from $15,284,000 at December 31, 2009. Savings deposits as of June 30, 2010, totaled $53,106,000, which is an increase of $4,728,000 (9.77%) from $48,378,000 at December 31, 2009. Certificates of deposit over $100,000 totaled $31,546,000 on June 30, 2010, which is a decrease of $31,000 (0.10%) from $31,577,000 at December 31, 2009. Other time deposits (made up of certificates of deposit less than $100,000 and individual retirement accounts) totaled $106,694,000 on June 30, 2010, which is a $2,264,000 (2.08%) decrease from the $108,958,000 total at December 31, 2009. Management continues to believe that the growth in deposits was due in part to the ongoing instability in the stock market and the resulting reallocation of investment portfolios by the Bank s customers.

Read the The complete Report

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