Glen Burnie Bancorp (GLBZ) 8-K Glen Burnie Bancorp Announces 2008 4Q and Year End Earnings

N E W S   R E L E A S E

FOR IMMEDIATE RELEASE

Contact:	Yvonne “Rie” Atkinson
	410-768-8857 (office)
	ratkinson@bogb.net

Glen Burnie Bancorp Announces 2008 4Q and Year End Earnings

GLEN BURNIE, MD (February 5, 2009) – Glen Burnie Bancorp (NASDAQ: GLBZ), parent company of The Bank of Glen BurnieÒ, 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

-more-

Glen Burnie Bancorp – page 2

2008 4Q and Year End Earnings

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 3rd 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 BurnieÒ has been awarded the 5-Star Superior Rating from BAUER FINANCIAL Reports, Inc., the nation’s leading independent bank research firm, for 32 consecutive 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 BurnieÒ, currently maintains consolidated assets totaling more than $330 million.  Founded in 1949, The Bank of Glen BurnieÒ 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 Sheet

(dollars in thousands)

	December 31,			December 31,
		2008			2007
Assets
Cash and due from banks	$	6,960		$	8,221
Interest bearing deposits		7,884			5,847
Federal funds sold		6,394			727
Investment securities		57,949			77,866
Common Stock in the Glen Burnie Statutory Trust I		155			155
Loans, net of allowance		235,133			199,753
Premises and equipment at cost, net of accumulated depreciation		3,099			3,088
Other real estate owned		550			50
Other assets		14,378			11,567
Total assets	$	332,502		$	307,274
Liabilities and Stockholders' Equity
Liabilities:
Deposits	$	269,768		$	252,917
Short-term borrowings		630			503
Long-term borrowings		27,072			17,107
Junior subordinated debentures owed to unconsolidated
subsidiary trust		5,155			5,155
Other liabilities		1,969			1,856
Total liabilities		304,594			277,538
Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares;
issued and outstanding December 31, 2008  2,967,727;
December 31, 2007  2,498,465		2,968			2,499
Surplus		11,568			11,921
Retained earnings		14,129			15,750
Accumulated other comprehensive (loss) income, net of tax		(757	)		(434	)
Total stockholders' equity		27,908			29,736
��     Total liabilities and stockholders' equity	$	332,502		$	307,274

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,
	2008			2007		2008			2007
Interest income on
Loans, including fees	$	3,814		$	3,494	$	14,456		$	13,327
U.S. Treasury and U.S. Government agency securities	$	390			556		1,962			2,553
State and municipal securities	$	338			338		1,411			1,452
Other	$	62			99		347			505
Total interest income		4,604			4,487		18,176			17,837
Interest expense on
Deposits	$	1,258			1,174		4,780			4,825
Junior subordinated debentures	$	136			136		546			546
Long-term borrowings	$	266			164		877			481
Short-term borrowings	$	1			32		51			119
Total interest expense		1,661			1,506		6,254			5,971
Net interest income		2,943			2,981		11,922			11,866
Provision for credit losses		700			0		1,146			50
Net interest income after provision for credit losses		2,243			2,981		10,776			11,816
Other income
Service charges on deposit accounts		183			210		737			814
Other fees and commissions		208			246		860			936
Other non-interest income		1			5		(10	)		18
Income on life insurance		70			71		273			269
Impairment of securities		0			0		(2,816	)		0
Gains on investment securities		50			0		191			120
Total other income		512			532		(765	)		2,157
Other expenses
Salaries and employee benefits		1,435			1,583		6,219			6,326
Occupancy		228			216		904			886
Other expenses		820			811		3,163			3,221
Total other expenses		2,483			2,610		10,286			10,433
Income (loss) before income taxes		272			903		(275	)		3,540
Income tax (benefit) expense		(1,110	)		203		(679	)		758
Net income	$	1,382		$	700	$	404		$	2,782
Net income per share of common stock	$	0.47		$	0.23	$	0.14		$	0.93
Weighted-average shares of common stock outstanding		2,967,580			2,993,435		2,981,124			2,988,931