Glen Burnie Bancorp (GLBZ) 8-K Results of Operations and Financial Condition

Exhibit 99.1

GLEN BURNIE BANCORP

RELEASES 2Q 2016 EARNINGS

GLEN BURNIE, MD (July 25, 2016)–Glen Burnie Bancorp (NASDAQ: GLBZ), parent company of The Bank of Glen Burnie, today announced results for the second quarter.

The company realized net income of $308,000 or $0.11 basic earnings per share in the quarter ended June 30, 2016 as compared to net income of $518,000 or $0.19 basic earnings per share for the same period in 2015.

Net interest income after provision for credit losses was $2,733,000 as compared to $2,617,000 in 2015. Total assets were $395,794,000 as of June 30, 2016 compared to $390,580,000 at December 31, 2015. Loans, net of allowance, were $253,490,000 as of June 30, 2016 compared to $259,637,000 at December 31, 2015. Deposits were $339,295,000 as of June 30, 2016 compared to $335,191,000 at December 31, 2015.

“Despite net interest income after provision for credit losses being better in the current year and lowering total operating expenses, net income declined in the current year because non-interest income, mostly non-recurring (includinggains on investment securities and non-recurring gains on the redemption of insurance policies), was much greater in the 2015 comparable period,” said John D. Long, President and Chief Executive Officer. “The Company had a solid second quarter as we look to future measures to improve our efficiency and competitive position in our lucrative and growing Northern Anne Arundel County marketplace.”

Glen Burnie Bancorp is the parent company of The Bank of Glen Burnie®. Founded in 1949, The Bank of Glen Burnie® is a locally-owned community bank with eight branch offices serving Anne Arundel County. (thebankofglenburnie.com)

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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.

Contact: John Wright, Executive Vice President & CFO Email:jwright@bogb.net Phone: 410-768-8883

 

Glen Burnie Bancorp and Subsidiaries

Condensed Consolidated Balance Sheets

(dollars in thousands)

	(unaudited)		(audited)
	June		December
	30, 2016		31, 2015
Assets
Cash and due from banks	$	6,481	$	7,493
Interest bearing deposits		2,671		2,308
Federal funds sold		11,352		2,570
Investment securities		102,681		98,790
Loans, net of allowance		253,490		259,637
Premises and equipment at cost, net of accumulated depreciation		3,292		3,369
Other real estate owned		201		74
Other assets		15,626		16,339
Total assets	$	395,794	$	390,580
Liabilities and Stockholders' Equity
Liabilities:
Deposits	$	339,295	$	335,191
Long-term borrowings		20,000		20,000
Other liabilities		1,103		1,213
Total liabilities		360,398		356,404
Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding June 30, 2016 2,780,025; December 31, 2015  2,773,361 shares		2,780		2,773
Surplus		10,069		9,986
Retained earnings		21,754		21,718
Accumulated other comprehensive loss, net of tax benefits		793		(301	)
Total stockholders' equity		35,396		34,176
Total liabilities and stockholders' equity	$	395,794	$	390,580

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,
	(unaudited)				(unaudited)
	2016		2015		2016		2015
Interest income on
Loans, including fees	$	2,750	$	2,864	$	5,585	$	5,807
U.S. Treasury securities		12		24		18		51
U.S. Government agency securities		249		191		518		374
State and municipal securities		226		274		439		576
Other		32		21		60		46
Total interest income		3,269		3,374		6,620		6,854
Interest expense on
Deposits		377		447		769		909
Long-term borrowings		159		160		319		318
Total interest expense		536		607		1,088		1,227
Net interest income		2,733		2,767		5,532		5,627
Provision for credit losses		-		150		117		300
Net interest income after provision for credit losses		2,733		2,617		5,415		5,327
Other income
Service charges on deposit accounts		81		102		164		207
Other fees and commissions		171		181		330		351
Other non-interest income		12		430		23		440
Income on life insurance		53		55		107		109
Gains on investment securities		-		270		1		469
Total other income		317		1,038		625		1,576
Other expenses
Salaries and employee benefits		1,534		1,675		3,039		3,343
Occupancy		180		191		378		405
Other expenses		984		1,003		1,954		1,940
Total other expenses		2,698		2,869		5,371		5,688
Income before income taxes		352		786		669		1,215
Income tax expense		44		268		78		317
Net income	$	308	$	518	$	591	$	898
Net income per share of common stock	$	0.11	$	0.19	$	0.21	$	0.32
Weighted-average shares of common stock outstanding		2,776,546		2,767,521		2,776,053		2,767,331