EXHIBIT 99.1
GLB BANCORP, INC. REVISES 2001 EARNINGS
MENTOR, Ohio, March 18, 2002 -- GLB Bancorp, Inc. (Nasdaq: GLBK) today announced
revised net income for the year ended December 31, 2001. Previously announced
net income of $832,410 and $0.39 per share basic and diluted are being revised
to a net loss of ($75,001) and $(0.04) per share basic and diluted. The
revisions to net income and diluted earnings per share are due solely to a
non-cash impairment of $907,411 resulting from an other than temporary decline
in the market value of securities held in the Corporation's security portfolio.
"We choose to take the charge on our securities portfolio at this time as a
conservative accounting measure. Our Corporation's revenue growth is progressing
very well, and our loan portfolio remains strong," said Richard T. Flenner, Jr.,
President and CEO. "We are pleased with the increase in interest income of $1
million or 11.5% for the full year, as well as the management of interest
expense, all of which occurred during a year in which deposits increased by
$36.9 million, or 40.9%. Significantly, even as deposits grew rapidly, Great
Lakes Bank continued maintaining its strong asset quality and sound lending
practices, and as a result, non-performing assets to total loans remain well
below 1%."
For the fourth quarter of 2001, net income of $183,952 and $0.09 per share basic
and diluted are being revised to a net loss of ($723,459) and $(0.34) per share
basic and diluted. Annualized return on assets (ROA) was (0.05%) and annualized
return on equity (ROE) was (0.28%) compared to 0.55% and 3.10%, as previously
reported for 2001.
Following the revisions, at December 31, 2001, total shareholders' equity was
$27,209,989 which is an increase of $419,553, or 1.6% from December 31, 2000,
and book value per share increased to $12.75 versus $12.55. Capital ratios
remain strong, with GLB Bancorp, Inc. and Great Lakes Bank exceeding all
applicable regulatory requirements.
At December 31, 2001 after the revisions, the Corporation reported assets of
$165.9 million compared to $130.5 million at December 31, 2000, an increase of
$35.4 million, or 27.1%. The increase in assets was due to an increase in net
loans of $5.2 million to $111.1 million at December 31, 2001 compared to $106.0
million at December 31, 2000, and an increase in Fed Funds of $27.4 million to
$34.2 million at December 31, 2001 compared to $6.8 million at December 31,
2000. The increase in assets corresponded to a rapid increase in deposits.
Deposits totaled approximately $127.2 million at December 31, 2001 compared to
$90.3 million at December 31, 2000, an increase of $36.9 million, or 40.9%.
GLB Bancorp, Inc. has the ability and positive intent to hold the securities
that caused the Corporation to revise its net income until a realized gain can
be earned. "We believe that the companies in which the Corporation holds
securities are well-managed and have demonstrated consistent earnings."
GLB Bancorp, Inc., an Ohio corporation is a one-bank holding company that owns
all of the outstanding common stock of Great Lakes Bank. With its Main Office in
the city of Mentor, Ohio, the Bank is the only commercial bank headquartered in
Lake County, Ohio, the Company's primary service area. One
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new full service branch opened in Concord, Ohio in midsummer giving GLB Bancorp,
Inc. twelve full service branches serving all of Lake County.
Except for the historical information contained herein, the matters discussed in
this press release may be deemed to be forward-looking statements that involve
risks and uncertainties. Actual strategies and results in future periods may
differ materially from those currently expected. The Company disclaims however,
any intent or obligation to update these forward-looking statements.
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Consolidated Financial Highlights:
(actual dollars)
2001 2000 %
ytd ytd of change
--------------------------------------------------------
Earnings:
Interest Income 10,167,852 9,121,122 11.5%
Interest Expense 4,373,189 3,353,148 30.4%
Net Interest Income 5,794,663 5,767,974 0.5%
Prov for Loan Losses 320,000 367,500 -12.9%
Non-Interest Income 897,126 841,888 6.6%
Non-Interest Expenses 6,012,347 4,484,769 34.1%
Net Income (loss) (75,001) 1,138,577 -106.6%
Earnings (loss) per share $ (0.04) $ 0.53
(basic and diluted)
Balance Sheet Balances:
Loans 111,150,086 105,954,789 4.9%
Savings 127,220,651 90,303,850 40.9%
Assets 165,871,324 130,515,853 27.1%
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Consolidated Financial Highlights:
(Actual unaudited quarterly financial data is as follows)
2001 2001 2001 2001 2000
(4th QTR) (3rd QTR) (2nd QTR) (1st QTR) (4th QTR)
---------------------------------------------------------------------------------------
Earnings:
Interest Income 2,477,346 2,594,202 2,565,051 2,531,253 2,398,100
Interest Expense 993,186 1,194,092 1,142,301 1,043,610 902,885
Net Interest Income 1,484,160 1,400,110 1,422,750 1,487,643 1,495,215
Provision for Loan Losses 50,000 75,000 97,500 97,500 112,500
Non-Interest Income 150,870 251,144 269,504 225,608 230,487
Non-Interest Expenses 2,214,937 1,312,123 1,271,902 1,213,385 1,163,398
Net Income (loss) (723,459) 173,595 212,451 262,412 290,115
Earnings (loss) per share $ (0.34) $ 0.08 $ 0.10 $ 0.12 $ 0.14
(basic and diluted)
Balance Sheet Balances:
Loans 111,150,086 108,762,450 107,797,316 107,038,719 105,954,789
Savings 127,220,651 121,312,482 108,201,727 101,492,637 90,303,850
Assets 165,871,324 159,850,402 151,575,098 147,911,673 130,515,853
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