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|Press Release||For Immediate Release|
|Date: March 6, 2019|
GLEN BURNIE BANCORP ANNOUNCES
FOURTH QUARTER and FULL YEAR 2018 RESULTS
GLEN BURNIE, MD (March 6, 2019) – Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income of $0.31 million, or $0.11 per basic and diluted common share for the three-month period ended December 31, 2018, as compared to a net loss of $153,000, or $0.05 per basic and diluted common share for the three-month period ended December 31, 2017.
Bancorp reported net income of $1.58 million, or $0.56 per basic and diluted common share for the year ended December 31, 2018, compared to $0.91 million, or $0.33 per basic and diluted common share for the same period in 2017. Net loans grew by $27.6 million, or 10.24% during the twelve-month period ended December 31, 2018, compared to $6.4 million, or 2.46% growth during the same period of 2017. At December 31, 2018, Bancorp had total assets of $413.0 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, paid its 106th consecutive quarterly dividend on February 1, 2019.
During 2018, the Company conducted a periodic review of the estimated direct cost to originate loans resulting in a change to the estimated materiality of these costs. Prior to January 1, 2018, the Company expensed direct costs to originate loans in the period incurred based on management’s judgement that the costs were immaterial. This yearlong project resulted in a change in the estimated materiality of these costs. Effective January 1, 2018, the Company increased its estimates for these costs and changed its accounting method from expense as incurred to defer and amortize in accordance with accounting standard 310-20 Receivables – Nonrefundable Fees and Other Costs. This preferred method recognizes loan interest income and costs incurred to generate the revenue in the same period. The effect of this change in accounting method was inseparable from the effect of the change in accounting estimate, and therefore, accounted for as a change in estimate. As a result, the Company began recognizing certain direct loan origination costs over the life of the related loan as a reduction of the loan’s yield by the interest method based on the contractual term of the loan. In the fourth quarter of 2018, the Company recorded a reduction of noninterest expense and an increase in loan balances of $375,000, and reduced loan balances and loan interest income by $51,000 due to the amortization of deferred costs. The effect of these adjustments increased income before taxes for the three- and twelve-months periods ended December 31, 2018 by $324,000 and increased net income by $300,000 or $0.11 per basic and diluted common share for the twelve-month period ended December 31, 2018.
The following information was filed by Glen Burnie Bancorp (GLBZ) on Thursday, March 7, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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