Exhibit 99.1

 

 

 

 

Press Release	For Immediate Release
	Date:   April 26, 2018

  

 

GLEN BURNIE BANCORP ANNOUNCES

FIRST QUARTER 2018 RESULTS

 

GLEN BURNIE, MD (April 26, 2018) – Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income of $0.26 million, or $0.09 per basic and diluted common share for the three-month period ended March 31, 2018, as compared to net income of $0.32 million, or $0.10 per basic and diluted common share for the three-month period ended March 31, 2017.

 

For the three-month period ended March 31, 2018, net loans grew by $5.7 million, or 2.1%, as compared to March 31, 2017. At March 31, 2018, Bancorp had total assets of $390.4 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, will pay its 103^rd consecutive quarterly dividend on May 4, 2018.

 

"By continuing our fiscal 2017 transformative accomplishments into the first quarter of 2018, we are confident that our momentum will drive our results for the remainder of 2018 and beyond,” said John D. Long, President and CEO. “Technology advancements that support our loan origination team contributed to a strong organic loan growth rate of 2.1% when compared to the same period in 2017. We continued to make investments in technology systems during the first quarter that allow us to remain competitive in the rapidly changing technological environment. These improvements allow the Company to remain vigilant in its risk mitigation efforts, and to continue providing a high level of service to our valued customers. Net interest income continued to rise during the first quarter, driving a consistent core earnings expansion. Net interest income grew by $160,000 or 5.7%, this quarter compared to the first quarter of last year, as the yield on our loan portfolio grew from 4.21% to 4.25%, and our funding costs declined by $39,000 or 7.9%, from $491,000 to $452,000. The overall credit environment remained favorable, although a single impaired loan led management to increase the allowance for loan losses to 1.05% of total loans from 0.96% at December 31, 2017. Headquartered in the dynamic Northern Anne Arundel County market, we believe the Bank is well-positioned with sound growth, asset quality and capital levels, a widening net interest margin, and an experienced and seasoned executive team. We remain deeply committed to serving the financial needs of the community through the development of new loan and deposit products.”

 

Highlights for the First Three Months of 2018

 

Bancorp continued to grow organically in the first quarter of 2018 driven primarily by favorable net loan growth and supported by an improving 0.51% cost of funds, as compared to 0.56% for the same period in 2017. Bancorp has strong liquidity and capital positions that provide ample capacity for future growth, along with the Bank’s total regulatory capital to risk weighted assets of 13.85% at March 31, 2018.

 

 

 

 

Return on average assets for the three-month period ended March 31, 2018 was 0.26%, as compared to 0.33% for the three-month period ended March 31, 2017. Return on average equity for the three-month period ended March 31, 2018 was 3.06%, as compared to 3.79% for the three-month period ended March 31, 2017.

 

The book value per share of Bancorp’s common stock was $11.83 at March 31, 2018, as compared to $12.16 per share at March 31, 2017.

 

At March 31, 2018, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 12.73% at March 31, 2018, as compared to 13.14% at March 31, 2017. 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.

 

 

Balance Sheet Review

 

Total assets were $390.4 million at March 31, 2018, a decrease of 1.31% from $395.5 million at March 31, 2017. Investment securities were $90.3 million at March 31, 2018, a decrease of 0.84% from $91.1 million at March 31, 2017. Total loans were $275.7 million at March 31, 2018, an increase of 2.22% from $269.7 million at March 31, 2017.

 

Total deposits were $336.2 million at March 31, 2018, a decrease of 1.29% from $340.6 million at March 31, 2017. Non-interest bearing deposits were $107.1 million at March 31, 2018, an increase of 1.80% from $105.2 million at March 31, 2017. Total borrowings were $20.0 million at March 31, 2018, unchanged from $20.0 million at March 31, 2017.

 

Stockholders’ equity was $33.2 million at March 31, 2018, a decrease of $0.7 million from $33.9 million at March 31, 2017. The decrease in the first quarter 2018 was related to lower corporate earnings and a decrease in other comprehensive income associated with the available for sale bond portfolio.

 

Nonperforming assets, which consist of nonaccrual loans, troubled debt restructurings, accruing loans past due 90 days or more, and other real estate owned, represented 1.49% of total assets at March 31, 2018, as compared to 1.05% for the same period of 2017.

 

 

Review of Financial Results

 

For the three-month periods ended March 31, 2018 and 2017

 

Net income for the three-month period ended March 31, 2018 was $0.26 million, as compared to net income of $0.32 million for the three-month period ended March 31, 2017.

 

Net interest income for the three-month period ended March 31, 2018 totaled $3.0 million, as compared to $2.8 million for the three-month period ended March 31, 2017. Average earning loans and investment securities increased to $366 million for the three month period ended March 31, 2018, as compared to $362 million for the same period of 2017.

 

Net interest margin for the three-month period ended March 31, 2018 was 3.22%, as compared to 3.07% for the same period of 2017. Lower funding costs were the primary driver of year-over-year results, as the cost of funds decreased 0.05% from 0.56% to 0.51% for the three month periods ending March 31, 2017 and 2018, respectively.

 

 

 

 

The provision for loan losses for the three-month period ended March 31, 2018 was $0.36 million, as compared to $0.20 million for the same period of 2017. The increase for the three-month period ended March 31, 2018 was primarily the result of deteriorated credit quality of a single participated loan and is not indicative of poor credit quality of the overall loan portfolio. As a result, the allowance for loan losses was $2.9 million at March 31, 2018, representing 1.05% of total loans, as compared to $2.6 million, or 0.96% of total loans for the same period of 2017.

 

Noninterest income for the three-month period ended March 31, 2018 was $0.49 million, as compared to $0.30 million for the three-month period ended March 31, 2017. The results for the first quarter of 2018 include a $0.21 million gain on redemption of BOLI policy.

 

For the three-month period ended March 31, 2018, noninterest expense was $2.83 million, as compared to $2.57 million for the three-month period ended March 31, 2017. The primary contributors to the $0.26 million increase, when compared to the three-month period ended March 31, 2017 were increases in salary and employee benefits, occupancy and equipment expenses, legal, accounting and other professional fees and loan collection costs and telephone costs, partially offset by decreases in data processing and item processing services and advertising and marketing related expenses.

 

# # #

 

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)

 

		March 31,				March 31,				December 31,
		2018				2017				2017
		(unaudited)				(unaudited)				(audited)
ASSETS
Cash and due from banks		$	2,449			$	2,959			$	2,610
Interest bearing deposits with banks and federal funds sold			6,079				14,371				9,995
Total Cash and Cash Equivalents			8,528				17,330				12,605
Investment securities available for sale, at fair value			90,329				91,097				89,349
Restricted equity securities, at cost			1,231				1,228				1,232
Loans, net of deferred fees and costs			275,716				269,707				271,612
Allowance for loan losses			(2,899	)			(2,602	)			(2,589	)
Loans, net			272,817				267,105				269,023
Real estate acquired through foreclosure			114				114				114
Premises and equipment, net			3,271				3,611				3,371
Bank owned life insurance			8,290				9,377				8,713
Deferred tax assets, net			2,759				3,133				2,429
Accrued interest receivable			1,182				1,115				1,133
Accrued taxes receivable			-				645				465
Prepaid expenses			554				537				433
Other assets			1,295				238				583
Total Assets		$	390,370			$	395,530			$	389,450
LIABILITIES
Noninterest-bearing deposits		$	107,073			$	105,190			$	104,017
Interest-bearing deposits			229,097				235,396				230,221
Total Deposits			336,170				340,586				334,238
Short-term borrowings			20,000				10,000				20,000
Long-term borrowings			-				10,000				-
Defined pension liability			341				369				335
Accrued Taxes Payable			134				-				-
Accrued expenses and other liabilities			538				644				835
Total Liabilities			357,183				361,599				355,408
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares,  issued and outstanding 2,804,456, 2,790,260, and 2,801,149 shares as of March 31, 2018, March 31, 2017, and December 31, 2017, respectively.			2,804				2,790				2,801
Additional paid-in capital			10,301				10,164				10,267
Retained earnings			21,581				21,745				21,605
Accumulated other comprehensive loss			(1,499	)			(768	)			(631	)
Total Stockholders' Equity			33,187				33,931				34,042
Total Liabilities and Stockholders' Equity		$	390,370			$	395,530			$	389,450

 

 

GLEN BURNIE BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts) 

 

		Three Months Ended    March 31,
		2018				2017
		(unaudited)				(unaudited)
Interest income
Interest and fees on loans		$	2,872			$	2,774
Interest and dividends on securities			524				518
Interest on deposits with banks and federal funds sold			48				31
Total Interest Income			3,444				3,323
Interest expense
Interest on deposits			309				333
Interest on short-term borrowings			143				82
Interest on long-term borrowings			-				76
Total Interest Expense			452				491
Net Interest Income			2,992				2,832
Provision for loan losses			360				195
Net interest income after provision for loan losses			2,632				2,637
Noninterest income
Service charges on deposit accounts			67				67
Other fees and commissions			168				161
Gains on redemption of BOLI policies			207				-
Income on life insurance			44				49
Other income			-				2
Total Noninterest Income			486				279
Noninterest expenses
Salary and employee benefits			1,721				1,421
Occupancy and equipment expenses			305				298
Legal, accounting and other professional fees			232				206
Data processing and item processing services			132				168
FDIC insurance costs			58				60
Advertising and marketing related expenses			17				31
Loan collection costs			41				18
Telephone costs			57				55
Other expenses			272				314
Total Noninterest Expenses			2,835				2,571
Income before income taxes			283				345
Income tax expense			28				29
Net income		$	255			$	316
Basic and diluted net income per common share		$	0.09			$	0.11

 

 

GLEN BURNIE BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the three months ended March, 2018 and 2017 (unaudited)

(dollars in thousands)

 

														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			-				-				316				-				316
Cash dividends, $0.10 per share			-				-				(278	)			-				(278	)
Dividends reinvested under
dividend reinvestment plan			3				34				-				-				37
Other comprehensive loss			-				-				-				42				42
Balance, March 31, 2017		$	2,790			$	10,164			$	21,745			$	(768	)		$	33,931

 

														Accumulated
														Other
						Additional								Comprehensive				Total
		Common				Paid-in				Retained				(Loss)				Stockholders'
		Stock				Capital				Earnings				Income				Equity
Balance, December 31, 2017		$	2,801			$	10,267			$	21,605			$	(631	)		$	34,042
Net income			-				-				255				-				255
Cash dividends, $0.10 per share			-				-				(279	)			-				(279	)
Dividends reinvested under
dividend reinvestment plan			3				34				-				-				37
Other comprehensive income			-				-				-				(868	)			(868	)
Balance, March 31, 2018		$	2,804			$	10,301			$	21,581			$	(1,499	)		$	33,187

 

 

THE BANK OF GLEN BURNIE

CAPITAL RATIOS 

(dollars in thousands)

 

										To Be Considered  Adequately Capitalized								To Be Well Capitalized Under Prompt Corrective  Action Provisions
		Amount				Ratio				Amount				Ratio				Amount				Ratio
As of March 31, 2018:
(unaudited)
Common Equity Tier 1 Capital		$	33,132				12.73	%		$	11,712				4.50	%		$	16,917				6.50	%
Total Risk-Based Capital		$	36,047				13.85	%		$	20,822				8.00	%		$	26,027				10.00	%
Tier 1 Risk-Based Capital		$	33,132				12.73	%		$	15,616				6.00	%		$	20,822				8.00	%
Tier 1 Leverage		$	33,126				8.40	%		$	15,774				4.00	%		$	19,718				5.00	%
As of December 31, 2017:
(audited)
Common Equity Tier 1 Capital		$	32,946				12.83	%		$	11,553				4.50	%		$	16,687				6.50	%
Total Risk-Based Capital		$	35,543				13.84	%		$	20,538				8.00	%		$	25,673				10.00	%
Tier 1 Risk-Based Capital		$	32,946				12.83	%		$	15,404				6.00	%		$	20,538				8.00	%
Tier 1 Leverage		$	32,928				8.43	%		$	15,617				4.00	%		$	19,521				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	%

 

 

GLEN BURNIE BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL DATA

(dollars in thousands, except per share amounts)

 

 

		Three Months Ended												Year Ended
		March 31,				December 31,				March 31,				December 31,
		2018				2017				2017				2017
		(unaudited)				(unaudited)				(unaudited)				(audited)
Financial Data
Assets		$	390,353			$	389,450			$	395,530			$	389,450
Investment securities			90,329				89,349				91,097				89,349
Loans, (net of deferred fees & costs)			275,699				271,612				269,707				271,612
Allowance for loan losses			2,899				2,589				2,602				2,589
Deposits			336,169				334,238				340,586				334,238
Borrowings			20,000				20,000				20,000				20,000
Stockholders' equity			33,188				34,042				33,931				34,042
Net income			255				(153	)			316				911
Average Balances
Assets		$	391,832			$	391,254			$	391,532			$	392,363
Investment securities			92,449				90,084				94,062				91,634
Loans, (net of deferred fees & costs)			273,964				270,402				267,494				269,600
Deposits			334,492				335,312				234,351				335,805
Borrowings			22,752				20,501				20,419				21,458
Stockholders' equity			33,817				34,638				33,811				34,322
Performance Ratios
Annualized return on average assets			0.26	%			-0.16	%			0.33	%			0.23	%
Annualized return on average equity			3.06	%			-1.75	%			3.79	%			2.65	%
Net interest margin			3.22	%			3.20	%			3.07	%			3.12	%
Dividend payout ratio			109	%			-183	%			88	%			123	%
Book value per share		$	11.83			$	12.15			$	12.16			$	12.15
Basic and diluted net income per share			0.09				(0.05	)			0.11				0.33
Cash dividends declared per share			0.10				0.10				0.10				0.40
Basic and diluted weighted average shares outstanding			2,802,509				2,799,832				2,789,012				2,794,381
Asset Quality Ratios
Allowance for loan losses to loans			1.05	%			0.95	%			0.96	%			0.95	%
Nonperforming loans to avg. loans			2.09	%			1.31	%			1.51	%			1.32	%
Allowance for loan losses to nonaccrual & 90+ past due loans			52.7	%			77.7	%			68.3	%			77.7	%
Net charge-offs annualize to avg. loans			0.07	%			0.19	%			0.12	%			0.09	%
Capital Ratios
Common Equity Tier 1 Capital			12.73	%			12.83	%			0.00	%			12.83	%
Tier 1 Risk-based Capital Ratio			12.73	%			12.83	%			14.17	%			12.83	%
Leverage Ratio			8.40	%			8.43	%			8.62	%			8.43	%
Total Risk-Based Capital Ratio			13.85	%			13.84	%			13.14	%			13.84	%