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Glen Burnie Bancorp Announces 2008 4Q and Year End Earnings

^{Published on 2009-02-05 11:51:31, Last Modified on 2009-02-05 11:53:32 - Market Wire}
 

GLEN BURNIE, Md.--([ BUSINESS WIRE ])--Glen Burnie Bancorp (NASDAQ:GLBZ), parent company of The Bank of Glen Burnie®, today reported fourth quarter and year end earnings for 2008.

In the quarter ended December 31, 2008, the company realized net income of $1,382,000 or $0.47 per basic and diluted earnings per share as compared to $700,000 or $0.23 basic and diluted earnings per share for the same period in 2007. Included in the 2008 figure are a $1,110,000 tax benefit arising from the $2,816,000 charge taken in the third quarter of 2008 on the company's investments in three series of preferred stock issued by Fannie Mae and Freddie Mac, as required by accounting rules, and a $700,000 provision for loan loss reserve in the fourth quarter. Net interest income after provisions for credit losses for the fourth quarter of 2008 was $2,243,000 compared to $2,981,000 for the same three-month period in 2007.

Net income for the year ended December 31, 2008 was $403,962 or $.14 per basic and diluted earnings per share as compared to net income of $2,782,141 or $.93 per basic and diluted earnings per share in 2007. Included in the 2008 figure are the $2,816,000 charge taken on the Fannie Mae and Freddie Mac preferred stock loss, the $1,110,000 tax benefit arising from that loss, and a $1,146,000 provision for loan loss reserve.

Glen Burnie Bancorp's net interest income after provisions for credit losses for the year ended December 31, 2008 was $10,776,354 as compared to $11,816,208 in 2007. Assets for the same period were $332,502,215 in 2008 as compared to $307,273,868 in 2007.

2008 Performance Highlights:

• 8.21% growth in total assets without TARP money
• 17.71% growth in loans, less allowance for credit losses
• 6.15% increase in stockholders' equity
• 1.11 % average delinquency rate

Michael G. Livingston, President and Chief Executive Officer, stated, "The bank stayed the course of traditional banking in a year that was a difficult environment for financial institutions. After taking the 3^rd quarter charge on Fannie Mae and Freddie Mac investments, the bank rebounded with a profitable fourth quarter. The year end revealed loan growth, deposit growth, asset growth and a profit." Mr. Livingston added, "The bank is actively lending and because we are well capitalized we did not have a need to apply for TARP funds."

Glen Burnie Bancorp declared four regular dividends and one bonus dividend in 2008, totaling forty five cents (0.45) per common share.

The Bank of Glen Burnie® has been awarded the 5-Star Superior Rating from BAUER FINANCIAL Reports, Inc., the nation's leading independent bank research firm, for 32consecutive quarters. This distinction denotes the highest level of strength, safety and performance attainable. The 5-Star Superior Rating is based on factors such as capitalization, liquidity, loan delinquency rate and historical performance.

Glen Burnie Bancorp, parent company to The Bank of Glen Burnie®, currently maintains consolidated assets totaling more than $330 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.