Glen Burnie Bancorp Announces 2016 4Q Earnings and Year End Earnings

GLEN BURNIE, Md., March 06, 2017 -- Glen Burnie Bancorp (NASDAQ:GLBZ), parent company of The Bank of Glen Burnie®, today reported fourth quarter and year-end earnings for 2016.

For the quarter ended December 31, 2016, the company realized net income of $395,000 or $0.15 basic and diluted earnings per share as compared to net income of $447,000 or $0.16 basic and diluted earnings per share for the same period in 2015. Net interest income after provision for credit losses for the fourth quarter of 2016 was $2,199,000 compared to $2,370,000 for the same three-month period in 2015.

Net income for the year ended December 31, 2016 was $1,101,000 or $0.40 basic and diluted earnings per share as compared to net income of $1,353,000 or $0.49 basic and diluted earnings per share in 2015. Net interest income after provision for credit losses for the year ended December 31, 2016 was $10,290,000 as compared to $9,520,000 in 2015. Assets at December 31, 2016 were $388,432,000 as compared to $390,580,000 at December 31, 2015. Net loans were $262,574,000 at December 31, 2016, up from net loans of $ 259,637,000 at December 31, 2015.

John D. Long, President and Chief Executive Officer, stated, “As we continue to focus on increasing our net interest income after provision for credit losses and improve our efficiencies, the fourth quarter 2016 had mixed results in this area. This is mostly due to an added provision for losses totaling $236,000 on one residential loan. Despite this added provision, the Company had a solid fourth quarter as we continued to grow loans, improve our credit quality and experience increased loan origination volumes during the quarter.”

“Our December 31, 2015 net income included net gains from sales of securities of $1,038,000, as compared to only $2,000 from the sales of securities for the year ended December 31, 2016,” continued Mr. Long. “Therefore, on an operating basis, we show improved results. During the year ended December 31, 2016, we made several strategic cost savings moves that negatively affected the results for the year but we anticipate we will improve our operational efficiencies in the years going forward. We believe that we continue to be a sound, conservatively run financial institution, and we remain profitable and well-capitalized. We continue to be actively engaged with the communities we serve, providing loans and banking services to meet their financial needs.”

Glen Burnie Bancorp, parent company to The Bank of Glen Burnie®, currently maintains consolidated assets totaling more than $388 million. Founded in 1949, The Bank of Glen Burnie® is a community bank with eight branch offices serving Anne Arundel County.
www.thebankofglenburnie.com

Certain information contained in this news release, which does not relate to 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. 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
Condensed Consolidated Balance Sheets
(dollars in thousands)

	(audited)			(audited)
	December			December
		31, 2016			31, 2015
Assets

Cash and due from banks	$	6,946		$	7,493
Interest bearing deposits		479			2,308
Federal funds sold		3,197			2,570
Investment securities		94,607			98,790
Loans, net of allowance		262,574			259,637
Premises and equipment at cost, net of accumulated depreciation		3,323			3,369
Other real estate owned		114			74
Other assets		17,192			16,339
Total assets	$	388,432		$	390,580


Liabilities and Stockholders' Equity


Liabilities:
Deposits	$	333,237		$	335,191
Long-term borrowings		20,000			20,000
Other liabilities		1,381			1,213
Total liabilities		354,618			356,404


Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares;
issued and outstanding December 31, 2016 2,786,855;
December 31, 2015 2,773,361 shares		2,787			2,773
Surplus		10,130			9,986
Retained earnings		21,707			21,718
Accumulated other comprehensive loss, net of tax benefits		(810	)		(301	)
Total stockholders' equity		33,814			34,176

Total liabilities and stockholders' equity	$	388,432		$	390,580


Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	(unaudited)						(audited)
		2016			2015			2016			2015

Interest income on
Loans, including fees	$	2,810		$	2,876		$	11,190		$	11,577
U.S. Treasury securities		6			10			33			80
U.S. Government agency securities		261			179			1,026			745
State and municipal securities		238			245			913			1,081
Other		28			46			119			123
Total interest income		3,343			3,356			13,281			13,606

Interest expense on
Deposits		348			414			1,481			1,750
Long-term borrowings		161			162			642			641
Total interest expense		509			576			2,123			2,391

Net interest income		2,834			2,780			11,158			11,215

Provision for credit losses		635			410			868			1,695

Net interest income after provision for credit losses		2,199			2,370			10,290			9,520

Other income
Service charges on deposit accounts		76			123			323			443
Other fees and commissions		284			210			805			795
Other non-interest income		241			12			285			513
Income on life insurance		54			55			215			219
Gains on investment securities		1			369			2			1,038
Total other income		656			769			1,630			3,008

Other expenses
Salaries and employee benefits		1,430			1,596			6,212			6,491
Occupancy		183			183			745			778
Other expenses		953			808			3,945			3,661
Total other expenses		2,566			2,587			10,902			10,930

Income before income taxes		289			552			1,018			1,598

Income tax expense		(106	)		105			(83	)		245

Net income	$	395		$	447		$	1,101		$	1,353

Net income per share of common stock	$	0.15		$	0.16		$	0.40		$	0.49

Weighted-average shares of common stock outstanding		2,786,713			2,773,151			2,780,477			2,768,966

Contact: John D. Long, President & CEO
Phone: 410-768-8871
Email: [email protected]

Glen Burnie Bancorp Announces 2016 4Q Earnings and Year End Earnings

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