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 103rd 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%

 

 

 

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