Glen Burnie Bancorp has a market cap of $21 million; its shares were traded at around $7.8 with a P/E ratio of 10.3 and P/S ratio of 1.1. The dividend yield of Glen Burnie Bancorp stocks is 5.2%.
Highlight of Business Operations:The turmoil and economic downturn of 2008, which continued in 2009, has engulfed the United States and world financial services industry. The ensuing overall consequences to numerous industries and the U.S. economy is well known and discussed daily in the media. The Bank and, as a result, the Company, have not been immune to the impact of these difficult economic times. While, due to conservative lending decisions, the Bank has no exposure to the credit issues affecting the sub-prime residential mortgage market, the economic slowdown resulted in the necessity of our contributing $2,442,976 to the provision for loan losses in 2009, in addition to the $1,145,649 provision made in 2008, primarily due to valuation issues in our commercial mortgage portfolio and continuing delinquency in our indirect automobile portfolio combined with adjustments we made to the risk factors in our calculation of required loan loss reserves. In addition, the economic downturn also resulted in an FDIC insurance premium assessment for 2009 of $549,716 which increased rates continued for 2010, a more than 1,400% increase from the 2008 assessment of $35,544. In 2008, the economic downturn also resulted in the necessity of the Bank taking in our first OREO (Other Real Estate Owned) property on a defaulted mortgage since 1999. Also in 2008, the Federal Housing Finance Agency was named conservator over both the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), two government sponsored agencies in which we had invested through the purchase of $3,000,000 of AAA rated preferred stock. As a result, in 2008 we wrote down the value of those investments to $184,000 by taking a charge to earnings in third quarter of 2008 of $2,816,000. Each of these factors will be discussed as appropriate elsewhere in this report. Nevertheless, despite the continuing economic downturn and these events, which are unusual for us in any year, we realized net income of $1,262,462 for 2009, and $403,962 net income for 2008. The Bank and others believe that the economy showed signs of improvement in 2010, although economic weakness continues in the real estate and other markets. For 2010, we realized net income of $2,064,785. We remain well capitalized and did not need to apply for any funding from the U.S. Department of Treasury s Troubled Asset Relief Program (TARP). During the past three years, we continued to lend money and, we believe, meet the needs of our customers and neighbors through a difficult time. We believe we are a sound, conservatively run financial institution that has been profitable in 2008, 2009 and 2010 despite the deterioration in the economic environment and the outside forces that have affected us these past three years.
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