Glen Burnie Bancorp has a market cap of $26.4 million; its shares were traded at around $9.846 with a P/E ratio of 21.4 and P/S ratio of 1.2. The dividend yield of Glen Burnie Bancorp stocks is 4.1%.
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 $399,000 ($0.15 basic and diluted earnings per share) for the first quarter of 2010, compared to the first quarter 2009 consolidated net income of $455,000 ($0.16 basic and diluted income per share), a 12.31% decrease. The decrease in earnings is primarily due to three 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 $250,000 early repayment premium expense related to the planned September 7, 2010 repayment of the $5,155,000 in outstanding Trust Preferred Securities. Finally, salaries and employee benefits increased in the 2010 period as compared to the 2009 period. The decrease in earnings for the 2010 period as compared to the 2009 period caused by these increased expenses was partially offset by a decline in the Bank s interest expense on deposits. Furthermore, the Bank recorded an impairment expense on securities in 2009 which was not repeated in the 2010 period.
Interest expense for the quarter decreased from $1,668,000 in 2009 to $1,478,000 in 2010, an 11.39% decrease. The decrease in interest expense for the three month period ended March 31, 2010 was due to a decrease in interest paid on deposit balances, and was partially offset by an increase in the expense for the junior subordinated debentures reflecting the accrual of the 5% premium which will be due upon early repayment in September 2010 of $5,155,000 in outstanding Trust Preferred Securities.
Provision for Credit Losses. The Company made a provision for credit losses of $300,000 during the three month period ended March 31, 2010 and $150,000 for credit losses during the three month period ended March 31, 2009. As of March 31, 2010, the allowance for credit losses equaled 78.21% of non-accrual and past due loans compared to 117.61% at December 31, 2009 and 180.05% at March 31, 2009. During the three month period ended March 31, 2010, the Company recorded net charge-offs of $378,000, compared to net charge-offs of $195,000 during the corresponding period of the prior year. On an annualized basis, net charge-offs for the 2010 period represent 0.64% of the average loan portfolio.
General. The Company s assets increased to $362,750,000 at March 31, 2010 from $353,397,000 at December 31, 2009, primarily due to an increase in cash and cash equivalents and securities, offset partially by a decrease in loans. The Bank s net loans totaled $234,338,000 at March 31, 2010, compared to $235,883,000 at December 31, 2009, a decrease of $1,545,000 (0.65%), primarily attributable to decreases in indirect loans (primarily auto loans), partially offset by an increase in commercial mortgage loans and secured home equity loans.
The Company s total investment securities portfolio (investment securities available for sale) totaled $85,716,000 at March 31, 2010, a $1,253,000 (1.48%) increase from $84,463,000 at December 31, 2009. This increase was funded by the increase in deposits received during the three 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 March 31, 2010, totaled $21,293,000, an increase of $9,859,000 (86.23%) from the December 31, 2009 total of $11,434,000. This increase comes from the growth in deposits.
Deposits as of March 31, 2010 totaled $303,397,000, which is an increase of $9,039,000 (3.07%) from $294,358,000 at December 31, 2009. Demand deposits as of March 31, 2010 totaled $71,600,000, which is an increase of $3,792,000 (5.59%) from $67,808,000 at December 31, 2009. NOW accounts as of March 31, 2010 totaled $25,999,000, which is an increase of $3,646,000 (16.32%) from $22,353,000 at December 31, 2009. Money market accounts as of March 31, 2010 totaled $17,648,000, which is an increase of $2,364,000 (15.47%), from $15,284,000 at December 31, 2009. Savings deposits as of March 31, 2010 totaled $51,309,000, which is an increase of $2,931,000 (6.06%) from $48,378,000 at December 31, 2009. Certificates of deposit over $100,000 totaled $29,978,000 on March 31, 2010, which is a decrease of $1,599,000 (5.07%) 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 $106,863,000 on March 31, 2010, which is a $2,095,000 (1.93%) 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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