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Glen Burnie Bancorp Announces Second Quarter 2017 Results

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GLEN BURNIE, Md., Aug. 03, 2017 (GLOBE NEWSWIRE) -- 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 100th 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.

               
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%  
                         


For further information contact:

Jeffrey D. Harris, Chief Financial Officer
410-768-8883
jdharris@bogb.net
106 Padfield Blvd
Glen Burnie, MD 21061

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