EX-99.1 2 tv478291_ex99-1.htm EXHIBIT 99.1

 

 Exhibit 99.1

 

  

Press Release For Immediate Release
  Date: November 1, 2017
   

  

GLEN BURNIE BANCORP ANNOUNCES

 

THIRD QUARTER 2017 RESULTS

 

GLEN BURNIE, MD (November 1, 2017) – Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income increased to $0.41 million, or $0.15 per basic and diluted common share for the third quarter of 2017, compared to $0.12 million or $0.04 per basic and diluted common share for the third quarter of 2016, a 257% increase. Quarter-over-quarter, Bancorp’s third quarter net income increased 21% over the $0.34 million net income, or $0.12 per basic and diluted common share recorded for the second quarter of 2017.

 

Bancorp reported net income of $1.06 million, or $0.38 per basic and diluted common share for the nine months ending September 30, 2017, compared to $0.71 million, or $0.25 per basic and diluted common share for the same period in 2016, a 51% increase. Net loans increased by $11.1 million, or 4% when compared to September 30, 2016. At September 30, 2017, the Bank had total assets of $389.9 million and 8 branch locations in Anne Arundel County Maryland. Bancorp, the oldest independent commercial bank in Anne Arundel County, will pay its 101st consecutive quarterly dividend on November 3, 2017.

 

"We have made significant progress and believe we remain on track to achieve growth and earnings expectations as our outlook continues to improve across our business," said John D. Long, President and Chief Executive Officer. “The Bank’s strong financial performance in the third quarter of 2017 was driven by organic growth, attractive low-cost core deposit funding, improved operating efficiencies and improved credit performance resulting in net income before taxes of $0.51 million, a $0.45 million increase over the $0.06 million recorded for the same period of 2016. The 2016 results included a one-time restructuring charge of $0.18 million taken in the third quarter 2016. 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 also 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 Nine Months of 2017

 

The Bank continued its organic growth strategy in the third quarter of 2017 with total assets of $390 million driven by favorable net loan growth and supported by an attractive 0.55% cost of funds. Bancorp has strong liquidity and capital positions providing ample capacity for future growth, along with total regulatory capital to risk weighted assets of 14.68% at September 30, 2017.

 

 

 

  

Specific highlights include the following:

 

·Return on average assets for the three- and nine-month periods ended September 30, 2017 was 0.41% and 0.36%, respectively, compared to 0.12% and 0.24% for the three-and nine-month periods ended September 30, 2016, respectively. Return on average equity for the three- and nine-month periods ended September 30, 2017 was 4.74% and 4.19%, respectively, compared to 1.32% and 2.73% for the three- and nine-month periods ended September 30, 2016, respectively.

 

·Total assets were $389.9 million at September 30, 2017, an increase of 0.4% from $388.4 million at December 31, 2016 and a decrease of 0.6% from $392.2 million at September 30, 2016.

 

·Total loans were $271.5 million at September 30, 2017, an increase of 2.4% from $265.1 million at December 31, 2016 and an increase of 4.4% from $260.1 million at September 30, 2016.

 

·Total deposits were $334.1 million at September 30, 2017, an increase of 0.2% from $333.2 million at December 31, 2016 and a decrease of 0.5% from $335.7 million at September 30, 2016. Non-interest bearing deposits were $104.6 million at September 30, 2017, an increase of 4.5% from $100.1 million at December 31, 2016.

 

·Total borrowings were $20.0 million at September 30, 2017, unchanged from December 31, 2016 and September 30, 2016.

 

·Stockholders’ equity was $34.6 million at September 30, 2017, an increase of 2.4% from $33.8 million at December 31, 2016. The increase is related primarily to corporate earnings and the gain 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 $12.38 per share at September 30, 2017, compared to $12.10 per share at December 31, 2016.

 

·At September 30, 2017, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was 13.63% at September 30, 2017, unchanged from December 31, 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- and nine-month periods ended September 30, 2017 totaled $2.9 million and $8.7 million, respectively, compared to $2.8 million and $8.3 million, respectively, for the same periods of 2016. Earning asset leverage was the primary driver in year-over-year results, as average earning assets increased to $375.1 million for the three-month period ended September 30, 2017, compared to $373.8 million for the same period of 2016.

 

·Net interest margin for the three- and nine-month periods ended September 30, 2017 was 3.10% and 3.09%, compared to 2.97% and 2.97%, respectively, for the same periods of 2016. The net interest margin is primarily driven by increasing yields on earning assets, as the increasing yields on investment securities is offsetting the declining yields on the loan portfolio, particularly indirect loans that 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, increased to $4.3 million at September 30, 2017 from $4.1 million at December 31, 2016.

 

 

 

  

·The provision for loan losses for the three- and nine-month periods ended September 30, 2017 was $78,000 and $243,000, respectively, compared to $116,000 and $233,000, respectively, for the same periods of 2016. The decrease for the third 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 September 30, 2017, representing 0.97% of total loans, compared to $2.3 million, or 0.89% of total loans, at September 30, 2016.

 

Review of Financial Results

 

For the three-month periods ended September 30, 2017 and 2016

 

Net income for the three-month period ended September 30, 2017 was $0.41 million, compared to net income of $0.12 million for the three-month period ended September 30, 2016.

 

Net interest income for the three-month period ended September 30, 2017 totaled $2.9 million, compared to $2.8 million for the same period of 2016. The increase in interest income resulted from interest-earning asset growth primarily from expansion of the loan portfolio and selective bond investment purchases.

 

The provision for loan losses for the three-month period ended September 30, 2017 totaled $0.08 million, compared to $0.12 million for the same period of 2016 resulting from the improving credit quality of the overall loan portfolio combined with the resolution of nonperforming loans.

 

Noninterest income for the three-month period ended September 30, 2017 was $0.37 million, compared to $0.34 million for the same period of 2016 driven primarily by higher ATM interchange fees associated with seasonal activity.

 

Noninterest expense reduction continues to be a key focus for 2017 net income improvement. For the three-month period ended September 30, 2017, noninterest expense was $2.7 million, compared to $3.0 million for the same period of 2016. The primary contributors to the change, when compared to the same period of 2016 were decreases in salary and employee benefits driven in part by one-time severance payments and data processing costs, offset by increases in occupancy and equipment expenses and telephone costs associated with the installation of a new telephone system.

 

For the nine-month periods ended September 30, 2017 and 2016

 

Net income for the nine-month period ended September 30, 2017 was $1.06 million, compared to net income of $0.71 million for the nine-month period ended September 30, 2016.

 

Net interest income for the nine-month period ended September 30, 2017 totaled $8.7 million, compared to $8.3 million for the same period of 2016. The increase in interest income resulted from interest-earning asset growth primarily from expansion of the loan portfolio and selective bond investment purchases.

 

Noninterest income for the nine-month period ended September 30, 2017 was $0.94 million, compared to the $0.94 million for the nine-month period ended September 30, 2016 as a result of higher ATM interchange fees associated with seasonal activity, offset by lower service charges on deposit accounts.

 

Noninterest expense was $8.1 million, compared to $8.3 million for the same period of 2016. The primary contributors to the change, when compared to the same period of 2016 were decreases in salary and employee benefits driven in part by one-time severance payments, data processing costs, FDIC insurance costs and loan collection costs, offset by increases in occupancy and equipment expenses, professional fees, advertising expenses and telephone costs associated with the installation of a new telephone system.

 

 

 

  

# # #

 

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)

 

   September 30,   June 30,   December 31,   September  30, 
   2017   2017   2016   2016 
   (unaudited)   (unaudited)   (audited)   (unaudited) 
ASSETS                    
Cash and due from banks  $4,371   $3,055   $3,195   $4,310 
Interest bearing deposits with banks and federal funds sold   7,126    14,282    7,427    12,366 
Total Cash and Cash Equivalents   11,497    17,337    10,622    16,676 
                     
Investment securities available for sale, at fair value   89,903    90,629    94,607    98,532 
Restricted equity securities, at cost   1,228    1,440    1,230    1,230 
                     
Loans, net of deferred fees and costs   271,463    271,020    265,058    260,094 
Less:  Allowance for loan losses   (2,623)   (2,599)   (2,484)   (2,315)
Loans, net   268,840    268,421    262,574    257,779 
                     
Real estate acquired through foreclosure   114    114    114    0 
Premises and equipment, net   3,451    3,547    3,638    3,582 
Bank owned life insurance   9,479    9,428    9,328    9,519 
Deferred tax assets, net   2,847    2,803    3,160    2,166 
Accrued interest receivable   1,140    1,092    1,134    1,100 
Accrued taxes receivable   638    631    674    715 
Prepaid expenses   512    493    546    668 
Other assets   235    210    815    197 
Total Assets  $389,884   $396,145   $388,442   $392,164 
                     
LIABILITIES                    
Noninterest-bearing deposits  $104,571   $105,597   $100,099   $100,646 
Interest-bearing deposits   229,534    229,899    233,147    235,035 
Total Deposits   334,105    335,496    333,246    335,681 
                     
Short-term borrowings   20,000    15,000    10,000    0 
Long-term borrowings   0    10,000    10,000    20,000 
Defined pension liability   374    374    369    370 
Accrued expenses and other liabilities   769    741    1,011    1,152 
Total Liabilities   355,248    361,611    354,626    357,203 
                     
STOCKHOLDERS' EQUITY                    
Common stock, par value $1, authorized 15,000,000 shares,  issued and outstanding 2,797,477, 2,793,748, 2,786,855 and 2,783,111 shares as of September 30, 2017, June 30, 2017, December 31, 2016 and September 30, 2016, respectively.   2,797    2,794    2,787    2,783 
Additional paid-in capital   10,233    10,199    10,130    10,097 
Retained earnings   21,935    21,803    21,708    21,591 
Accumulated other comprehensive (loss) income   (329)   (262)   (810)   490 
Total Stockholders' Equity   34,636    34,534    33,815    34,961 
Total Liabilities and Stockholders' Equity  $389,884   $396,145   $388,441   $392,164 

 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts)

(unaudited)

 

   Three Months Ended September 30,   Nine Months Ended September 30, 
   2017   2016   2017   2016 
Interest income:                    
Loans, including fees  $2,883   $2,795   $8,503   $8,380 
Interest and dividends on securities   498    492    1,523    1,467 
Deposits with banks and federal funds sold   53    31    115    91 
Total Interest Income   3,434    3,318    10,141    9,938 
                     
Interest expense:                    
Deposits   324    364    984    1,133 
Short-term borrowings   (31)   -    136    - 
Long term borrowings   206    162    358    481 
Total Interest Expense   499    526    1,478    1,614 
                     
Net Interest Income   2,935    2,792    8,663    8,324 
                     
Provision for loan losses   78    116    243    233 
                     
Net interest income after provision for loan losses   2,857    2,676    8,420    8,091 
                     
Noninterest income:                    
Service charges on deposit accounts   72    83    208    247 
Other fees and commissions   245    191    573    521 
Gain on securities sold   -    -    1    1 
Income on life insurance   51    54    151    161 
Other income   -    12    2    12 
Total Noninterest Income   368    340    935    942 
                     
Noninterest expenses:                    
Salary and employee benefits   1,579    1,743    4,615    4,782 
Occupancy and equipment expenses   381    273    865    801 
Legal, accounting and other professional fees   180    173    648    595 
Data processing and item processing services   130    184    442    518 
FDIC insurance costs   64    78    188    232 
Advertising and marketing related expenses   38    12    110    49 
Loan collection costs   25    37    73    158 
Telephone costs   98    50    212    145 
Other expenses   219    407    944    1,024 
Total Noninterest Expenses   2,714    2,957    8,097    8,304 
                     
Income before income taxes   511    60    1,258    729 
Income tax expense   101    (55)   194    23 
                     
Net income  $410   $115   $1,064   $706 
                     
Basic and diluted net income per common share  $0.15   $0.04   $0.38   $0.25 

 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the Nine Months ended September 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  $2,773   $9,986   $21,718   $(301)  $34,176 
                          
Net income   -    -    706    -    706 
Cash dividends, $0.20 per share   -    -    (833)   -    (833)
Dividends reinvested under dividend reinvestment plan   10    111    -    -    121 
Other comprehensive income   -    -    -    791    791 
Balance September 30, 2016  $2,783   $10,097   $21,591   $490   $34,961 

 

               Accumulated     
               Other     
       Additional       Comprehensive   Total 
   Common   Paid-in   Retained   (Loss)   Stockholders' 
   Stock   Capital   Earnings   Income   Equity 
Balance December 31, 2016  $2,787   $10,130   $21,708   $(810)  $33,815 
                          
Net income   -    -    1,064    -    1,064 
Cash dividends, $0.20 per share   -    -    (837)   -    (837)
Dividends reinvested under dividend reinvestment plan   10    103    -    -    113 
Other comprehensive income   -    -    -    481    481 
Balance September 30, 2017  $2,797   $10,233   $21,935   $(329)  $34,636 

 

 

 

 

THE BANK OF GLEN BURNIE

CAPITAL RATIOS

(dollars in thousands)

 

                To Be Well 
                Capitalized Under 
            To Be Considered    Prompt Corrective 
            Adequately Capitalized    Action Provisions 
   Amount   Ratio   Amount   Ratio   Amount   Ratio 
As of September 30, 2017:                              
(unaudited)                              
Common Equity Tier 1 Capital  $34,064    13.63%  $11,250    4.50%  $16,251    6.50%
Total Risk-Based Capital  $36,699    14.68%  $20,001    8.00%  $25,001    10.00%
Tier 1 Risk-Based Capital  $34,064    13.63%  $15,001    6.00%  $20,001    8.00%
Tier 1 Leverage  $34,064    8.56%  $15,919    4.00%  $19,898    5.00%
                               
As of June 30, 2017:                              
(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 September 30, 2016:                              
(unaudited)                              
Common Equity Tier 1 Capital  $33,805    13.74%  $11,070    4.50%  $15,989    6.50%
Total Risk-Based Capital  $36,145    14.69%  $19,679    8.00%  $24,599    10.00%
Tier 1 Risk-Based Capital  $33,805    13.74%  $14,760    6.00%  $19,679    8.00%
Tier 1 Leverage  $33,805    8.58%  $15,754    4.00%  $19,693    5.00%

 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARIES

SELECTED FINANCIAL DATA

 

   Three Months Ended   Nine Months Ended   Year Ended 
   September 30,   June 30,   September 30,   September 30,   September 30,   December 31, 
   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (audited) 
   2017   2017   2016   2017   2016   2016 
   (Dollars In Thousand Except Per Share Data) 
                         
Financial Data:                              
Assets  $389,884   $396,141   $392,164   $389,884   $392,164   $388,442 
Investment securities   89,903    90,629    98,532    89,903    98,532    94,607 
Loans, (net of deferred fees and costs)   271,463    271,020    260,094    271,463    260,094    265,058 
Allowance for loan losses   2,623    2,599    2,315    2,623    2,315    2,484 
Deposits   334,105    335,496    335,681    334,105    335,681    333,246 
Borrowings   20,000    25,000    20,000    20,000    20,000    20,000 
Stockholders' equity   34,636    34,534    34,961    34,636    34,961    33,815 
Net income   410    338    115    1,064    706    1,101 
                               
Average Balances:                              
Assets  $393,936   $392,982   $393,760   $392,740   $393,027   $392,923 
Investment securities   90,028    92,364    100,565    92,151    99,710    99,628 
Loans, (net of deferred fees and costs)   270,973    269,533    256,583    269,333    257,784    258,481 
Deposits   334,740    336,724    337,731    335,970    337,998    337,320 
Borrowings   23,667    21,278    20,000    21,777    20,000    20,000 
Stockholders' equity   34,643    34,225    35,137    34,191    34,839    34,710 
                               
Performance Ratios:                              
Annualized return on average assets   0.41%   0.35%   0.12%   0.36%   0.24%   0.28%
Annualized return on average equity   4.74%   3.99%   1.32%   4.19%   2.73%   3.17%
Net Interest Margin   3.10%   3.10%   2.97%   3.09%   2.97%   2.98%
Dividend payout ratio   68%   83%   242%   79%   118%   101%
Book value per share  $12.38   $12.37   $12.56   $12.39   $12.57   $12.16 
Basic and diluted net income per share   0.15    0.12    0.04    0.38    0.25    0.40 
Cash dividends declared per share   0.10    0.10    0.10    0.10    0.20    0.10 
Basic and diluted weighted average shares outstanding   2,797,396    2,792,445    2,782,923    2,796,336    2,781,371    2,780,477 
                               
Asset Quality Ratios:                              
Allowance for loan losses to loans   0.97%   0.96%   0.89%   0.97%   0.89%   0.94%
Nonperforming loans to avg. loans   1.57%   1.44%   1.11%   1.58%   1.10%   1.59%
Allowance for Credit Losses to Non-Accrual and 90+ Past Due Loans   66.1%   72.5%   91.5%   66.1%   91.5%   65.6%
Net charge-offs annualize to Avg. loans   0.08%   0.04%   0.14%   0.08%   1.24%   0.41%
                               
Capital Ratios:                              
Common Equity Tier 1 Capital   13.63%   13.60%   13.74%   13.63%   13.74%   13.63%
Tier 1 Risk-based Capital Ratio   13.63%   13.60%   13.74%   13.63%   13.74%   13.63%
Leverage Ratio   8.56%   8.61%   8.58%   8.56%   8.58%   8.68%
Total Risk-Based Capital Ratio   14.68%   14.65%   14.69%   14.68%   14.69%   14.64%