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Glen Burnie Bancorp Reports Operating Results (10-Q)

November 05, 2010 | About:
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10qk

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Glen Burnie Bancorp (GLBZ) filed Quarterly Report for the period ended 2010-09-30.

Glen Burnie Bancorp has a market cap of $23.7 million; its shares were traded at around $8.79 with a P/E ratio of 22.5 and P/S ratio of 1.1. The dividend yield of Glen Burnie Bancorp stocks is 4.5%.
This is the annual revenues and earnings per share of GLBZ over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GLBZ.


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 $689,000 ($0.25 basic and diluted earnings per share) for the third quarter of 2010, compared to the third quarter 2009 consolidated net income of $527,000 ($0.20 basic and diluted income per share), a 30.74% increase. Year-to-date net income was $1,410,000 ($0.52 basic and diluted earnings per share) for 2010, compared to the 2009 consolidated net income of $1,472,000 ($0.53 basic and diluted income per share), a 4.21% decrease. The increase in earnings for the third quarter was primarily due to a decrease in interest expense on deposits, a decrease in the provision for credit losses and an increase in total other income from other non-interest income and gains on investment securities. The decrease in earnings year-to-date are primarily due to an increase in the provision for credit losses and an increase in salaries and employee benefits, partially offset by an increase in other non-interest income.

Net Interest Income. The Company s consolidated net interest income prior to provision for credit losses for the three and nine months ended September 30, 2010 was $3,211,000 and $9,486,000, respectively, compared to $3,100,000 and $8,999,000 for the same periods in 2009, an increase of $111,000 (3.58%) for the three months and an increase of $487,000 (5.41%) for the nine month period.

Provision for Credit Losses. The Company made a provision for credit losses of $300,000 and $1,050,000 during the three and nine month periods ended September 30, 2010 and $337,000 and $696,000 for credit losses during the three and nine month periods ended September 30, 2009. As of September 30, 2010, the allowance for credit losses equaled 70.53% of non-accrual and past due loans compared to 117.61% at December 31, 2009 and 55.33% at September 30, 2009. During the three and nine month periods ended September 30, 2010, the Company recorded net charge-offs of $132,000 and $560,000, compared to net charge-offs of $173,000 and $756,000 during the corresponding period of the prior year. On an annualized basis, net charge-offs for the 2010 period represent 0.32% of the average loan portfolio.

Other Expenses. Other expenses increased from $2,712,000 for the three month period ended September 30, 2009, to $2,729,000 for the corresponding 2010 period, a $17,000 (0.63%) increase. Other expenses increased from $8,079,000 for the nine month period ended September 30, 2009, to $8,332,000 for the corresponding 2010 period, a $253,000 (3.13%) increase. The increases for the three and nine 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 nine month periods primarily due to the relocation of a branch office from leased to owned space.

The Company s total investment securities portfolio (investment securities available for sale) totaled $92,489,000 at September 30, 2010, an $8,026,000 (9.50%) increase from $84,463,000 at December 31, 2009. This increase was funded by the increase in deposits and payments on loans received during the nine month period. The Bank s cash and due from banks (cash due from banks, interest-bearing deposits in other financial institutions, and federal funds sold), as of September 30, 2010, totaled $10,032,000, a decrease of $1,402,000 (12.26%) from the December 31, 2009 total of $11,434,000. This decrease comes from the payoff of a $7 million advance and the payoff of over $5 million in junior subordinated debentures in the month of September 2010.

Deposits as of September 30, 2010, totaled $298,484,000, which is an increase of $4,126,000 (1.40%) from $294,358,000 at December 31, 2009. Demand deposits as of September 30, 2010, totaled $70,133,000, which is an increase of $2,325,000 (3.43%) from $67,808,000 at December 31, 2009. NOW accounts as of September 30, 2010, totaled $22,569,000, which is an increase of $216,000 (0.97%) from $22,353,000 at December 31, 2009. Money market accounts as of September 30, 2010, totaled $16,667,000, which is an increase of $1,383,000 (9.05%), from $15,284,000 at December 31, 2009. Savings deposits as of September 30, 2010, totaled $51,614,000, which is an increase of $3,236,000 (6.69%) from $48,378,000 at December 31, 2009. Certificates of deposit over $100,000 totaled $31,768,000 on September 30, 2010, which is an increase of $191,000 (0.60%) 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 $105,733,000 on September 30, 2010, which is a $3,225,000 (2.96%) 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.

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