Glen Burnie Bancorp (GLBZ) 10-Q 2005 Q2 Quarterly report

EXHIBIT 99.1

  N E W S R E L E A S E

FOR IMMEDIATE RELEASE

Contact: Alison Tavik

410-768-8857 (office)

410-608-5581 (cell)

adtavik@bogb.net

GLEN BURNIE BANCORP RELEASES 2Q EARNINGS

New Linthicum office has strong start with $1.7 million in deposits

and $1.4 million in loans

Highlights

·   3.70% increase in second quarter net interest income

·   5.17% increase in year to date net interest income

·   3.40% increase in year to date total assets

·   3.73% increase in year to date deposits

·   3.92% increase in year to date net loans

GLEN BURNIE, MD (July 28, 2005) - Glen Burnie Bancorp (NASDAQ: GLBZ), parent company of The Bank of Glen Burnie, today announced results for the second quarter.

For the three month period ending June 30, 2005, net interest income after provisions for credit losses increased 3.70% to $2,968,000. The company reported net interest income after provisions for credit losses of $2,862,000 for the same period in 2004. Year to date net interest income rose 5.17% to $5,958,000 as compared to $5,665,000 in 2004. Total assets year to date increased 3.40% to $312,586,000 as of June 30, 2005. Deposits year to date increased 3.73% to $271,444,000 and net loans increased 3.92% to $189,431,000 since December 31, 2004.

“We expanded our franchise by opening our eighth full-service branch office in January 2005. In less than six months, it has generated $1.7 million in deposits and $1.4 million in loans outstanding, so I am very pleased with this initial performance,” said Executive Vice President & Chief Operating Officer Michael G. Livingston. “As expected, the expenses associated with this expansion affected net income.”

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Glen Burnie Bancorp - Page 2

July 28, 2005

Glen Burnie Bancorp realized net income of $674,000 or $.33 basic earnings per share in the quarter ended June 30, 2005. The company reported net income of $706,000 or $.35 basic earnings per share for the same three-month period in 2004. Year to date net income for the six months ended June 30, 2005 was $1,362,000 or $.67 basic earnings per share as compared to $1,447,000 or $.71 basic earnings per share for the same period in 2004.

On July 7, 2005 Glen Burnie Bancorp paid its 51st consecutive dividend to shareholders of record at the close of business on June 24, 2005. The company had 2,043,621 common shares outstanding with approximately 500 shareholders of record on June 13, 2005.

The Bank of Glen Burnie has been awarded a 5-Star Superior Rating from BAUER FINANCIAL Reports, Inc., the nation’s leading independent bank research firm, for the past nine consecutive semi-annual periods. This distinction denotes the highest level of strength, safety and performance measured by Bauer and 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, (www.thebankofglenburnie.com) maintains assets totaling approximately $312 million. The Bank of Glen Burnie is a locally-owned community bank with eight branches serving Anne Arundel County.

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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 Sheet
(dollars in thousands, except per share amounts)
	(unaudited)
	June		December
	30, 2005		31, 2004
Assets
Cash and due from banks	$	11,295	$	9,767
Interest bearing deposits		171		66
Federal funds sold		4,560		1,541
Investment securities		93,432		94,906
Common Stock in the Glen Burnie Statutory Trust I		155		155
Loans, net of allowance		189,431		182,291
Premises and equipment at cost, net of accumulated depreciation		4,054		4,031
Other real estate owned		50		50
Other assets		9,438		9,505
Total assets	$	312,586	$	302,312
Liabilities and Stockholders' Equity
Liabilities:
Deposits	$	271,444	$	261,674
Short-term borrowings		317		542
Long-term borrowings		7,186		7,200
Guaranteed preferred beneficial interests in Glen Burnie
Bancorp junior subordinated debentures		5,155		5,155
Other liabilities		1,719		1,997
Total liabilities	$	285,821	$	276,568
Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares;
issued and outstanding March 31, 2005 2,046,551;
December 31, 2004 2,041,033 shares	$	2,047	$	2,041
Surplus		11,288		11,169
Retained earnings		12,645		11,774
Accumulated other comprehensive income, net of tax		785		760
Total stockholders' equity	$	26,765	$	25,744
Total liabilities and stockholders' equity	$	312,586	$	302,312

Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
Interest income on
Loans, including fees	$	2,802	$	2,709	$	5,611	$	5,450
U.S. Treasury and U.S. Government agency securities		627		535		1,197		1,090
State and municipal securities		397		451		794		916
Other		131		112		275		232
Total interest income		3,957		3,807		7,877		7,688
Interest expense on
Deposits		740		639		1,414		1,308
Junior subordinated debentures		136		137		273		273
Long-term borrowings		108		107		214		215
Short-term borrowings		5		2		18		27
Total interest expense		989		885		1,919		1,823
Net interest income		2,968		2,922		5,958		5,865
Provision for credit losses		--		60		--		200
Net interest income after provision for credit losses		2,968		2,862		5,958		5,665
Other income
Service charges on deposit accounts		213		258		418		516
Other fees and commissions		224		181		438		332
Other non-interest income		5		1		24		4
Income on life insurance		51		51		102		102
Gains on investment securities		45		39		48		269
Total other income		538		530		1,030		1,223
Other expenses
Salaries and employee benefits		1,591		1,517		3,153		3,031
Occupancy		200		165		379		339
Other expenses		896		827		1,795		1,723
Total other expenses		2,687		2,509		5,327		5,093
Income before income taxes		819		883		1,661		1,795
Income tax expense (benefit)		145		177		299		348
Net income	$	674	$	706	$	1,362	$	1,447
Net income per share of common stock	$	0.33	$	0.35	$	0.67	$	0.71
Weighted-average shares of common stock outstanding		2,043,879		2,030,640		2,042,469		2,029,043