Exhibit 99.1

 

 

 

Press Release

For Immediate Release   Date: August 3, 2017

 

  

 

GLEN BURNIE BANCORP ANNOUNCES

SECOND QUARTER 2017 RESULTS

 

GLEN BURNIE, MD (August 3, 2017) – 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 100^th 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.

 

 

For further information contact:

 

Jeffrey D. Harris, Chief Financial Officer

410-768-8883

jdharris@bogb.net

106 Padfield Blvd

Glen Burnie, MD 21061

 

 

 

 

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:		Amount				Ratio				Amount				Ratio				Amount				Ratio
(unaudited)
Common Equity Tier 1 Capital			33,837				13.60	%			11,198				4.50	%			16,175				6.50	%
Total Risk-Based Capital			36,458				14.65	%			19,907				8.00	%			24,884				10.00	%
Tier 1 Risk-Based Capital			33,837				13.60	%			14,931				6.00	%			19,907				8.00	%
Tier 1 Leverage			33,837				8.61	%			15,717				4.00	%			19,647				5.00	%
As of March 31, 2017:
(unaudited)
Common Equity Tier 1 Capital			33,751				13.14	%			11,554				4.50	%			16,690				6.50	%
Total Risk-Based Capital			36,394				14.17	%			20,541				8.00	%			25,677				10.00	%
Tier 1 Risk-Based Capital			33,751				13.14	%			15,406				6.00	%			20,541				8.00	%
Tier 1 Leverage			33,751				8.62	%			15,664				4.00	%			19,580				5.00	%
As of December 31, 2016:
(audited)
Common Equity Tier 1 Capital			33,962				13.63	%			11,213				4.50	%			16,197				6.50	%
Total Risk-Based Capital			36,471				14.64	%			19,935				8.00	%			24,918				10.00	%
Tier 1 Risk-Based Capital			33,962				13.63	%			14,951				6.00	%			19,935				8.00	%
Tier 1 Leverage			33,962				8.68	%			15,659				4.00	%			19,574				5.00	%
As of June 30, 2016:
(unaudited)
Common Equity Tier 1 Capital			33,921				14.05	%			10,863				4.50	%			16,197				6.50	%
Total Risk-Based Capital			36,218				15.00	%			19,312				8.00	%			24,918				10.00	%
Tier 1 Risk-Based Capital			33,921				14.05	%			14,484				6.00	%			19,935				8.00	%
Tier 1 Leverage			33,921				8.57	%			15,833				4.00	%			19,574				5.00	%

 

 

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	%