Glen Burnie Bancorp (GLBZ) 10-Q 2006 Q2 Quarterly report

EXHIBIT 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact: Alison Tavik

410-768-8857 (office)

adtavik@bogb.net

GLEN BURNIE BANCORP RELEASES 2Q EARNINGS

Quarter marked by strong deposit growth

HIGHLIGHTS:

·   5.8% increase in net income

·   7.4% increase in basic earnings per share

·   10% increase in deposits

·   8.2% increase in assets

GLEN BURNIE, MD (July 31, 2006) - 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, 2006, Glen Burnie Bancorp realized net income of $713,000 or $.29 basic earnings per share. The company reported net income of $674,000 or $.27 basic earnings per share for the same three-month period in 2005. Net interest income after provisions for credit losses was $2,967,000 for the three month period ending June 30, 2006. The company reported net interest income after provisions for credit losses of $2,968,000 for the same period in 2005.

Net income for the six months ended June 30, 2006 was $1,339,000 or $.54 basic earnings per share as compared to $1,362,000 or $.55 basic earnings per share for the same period in 2005. Net interest income after provisions for credit losses for the six months ended June 30, 2006 was $5,935,000 as compared to $5,958,000 for the same period in 2005.

Total assets stood at $331,600,000 as of June 30, 2006 compared to $306,561,000 as of June 30, 2005. Deposits were $291,845,000 on June 30, 2006 as compared to $265,240,000 on June 30, 2005.

On July 7, 2006 Glen Burnie Bancorp paid its 55th consecutive dividend to shareholders of record at the close of business on June 23, 2006. The company had 2,470,668 common shares outstanding with approximately 500 shareholders of record on June 18, 2006.

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 17 consecutive quarters. 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 $325 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, 2006			31, 2005
Assets
Cash and due from banks	$	10,426		$	9,405
Interest bearing deposits		371			3,712
Federal funds sold		2,585			2,333
Investment securities		120,074			87,280
Common Stock in the Glen Burnie Statutory Trust I		155			155
Loans, net of allowance		183,284			190,205
Premises and equipment at cost, net of accumulated depreciation		3,669			3,863
Other real estate owned		50			50
Other assets		10,986			9,558
Total assets	$	331,600		$	306,561
Liabilities and Stockholders' Equity
Liabilities:
Deposits	$	291,846		$	265,248
Short-term borrowings		216			622
Long-term borrowings		7,156			7,171
Guaranteed preferred beneficial interests in Glen Burnie
Bancorp junior subordinated debentures		5,155			5,155
Other liabilities		1,448			1,740
Total liabilities	$	305,821		$	279,936
Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares;
issued and outstanding June 30, 2006 2,474,100;
December 31, 2005 2,056,024 shares	$	2,474		$	2,056
Surplus		11,564			11,458
Retained earnings		13,675			13,341
Accumulated other comprehensive income, net of tax		(1,934	)		(230	)
Total stockholders' equity	$	25,779		$	26,625
Total liabilities and stockholders' equity	$	331,600		$	306,561

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,
	2006		2005		2006		2005
Interest income on
Loans, including fees	$	2,873	$	2,802	$	5,809	$	5,611
U.S. Treasury and U.S. Government agency securities		882		627		1,544		1,197
State and municipal securities		430		397		772		794
Other		262		131		496		275
Total interest income		4,447		3,957		8,621		7,877
Interest expense on
Deposits		1,232		740		2,194		1,414
Junior subordinated debentures		136		136		273		273
Long-term borrowings		108		108		213		214
Short-term borrowings		4		5		6		18
Total interest expense		1,480		989		2,686		1,919
Net interest income		2,967		2,968		5,935		5,958
Provision for credit losses		-		-		-		-
Net interest income after provision for credit losses		2,967		2,968		5,935		5,958
Other income
Service charges on deposit accounts		214		213		411		418
Other fees and commissions		253		224		484		438
Other non-interest income		3		5		8		24
Income on life insurance		60		51		105		102
Gains on investment securities		-		45		-		48
Total other income		530		538		1,008		1,030
Other expenses
Salaries and employee benefits		1,653		1,591		3,298		3,153
Occupancy		210		200		417		379
Other expenses		790		896		1,636		1,795
Total other expenses		2,653		2,687		5,351		5,327
Income before income taxes		844		819		1,592		1,661
Income tax expense (benefit)		131		145		253		299
Net income	$	713	$	674	$	1,339	$	1,362
Net income per share of common stock	$	0.29	$	0.27	$	0.54	$	0.55
Weighted-average shares of common stock outstanding		2,470,931		2,454,949		2,469,184		2,453,556