MARYLAND
|
52-1782444
|
|
(State or other jurisdiction
|
(I.R.S. Employer
|
|
of incorporation or organization)
|
Identification No.)
|
|
101 Crain Highway, S.E., Glen Burnie, Maryland
|
21061
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of Class
|
Name of Each Exchange on Which Registered
|
|
None
|
None
|
PART
I
|
||
Item
1.
|
Business
|
3
|
Item
2.
|
Properties
|
16
|
Item
3.
|
Legal
Proceedings
|
17
|
Executive
Officers of the Registrant
|
17
|
|
PART
II
|
||
Item
4.
|
Market
for Registrant’s Common Equity, Related
|
|
Stockholder
Matters and Issuer Purchases of Equity Securities
|
18
|
|
Item
5.
|
Selected
Financial Data
|
20
|
Item
6.
|
Management’s
Discussion and Analysis of Financial
|
|
Condition
and Results of Operations
|
21
|
|
Item
7.
|
Financial
Statements and Supplementary Data
|
30
|
Item
8.
|
Changes
in and Disagreements with Accountants
|
|
on
Accounting and Financial Disclosure
|
30
|
|
Item
8A(T).
|
Controls
and Procedures
|
30
|
Item
8B.
|
Other
Information
|
31
|
PART
III
|
||
Item
9.
|
Directors,
Executive Officers and Corporate Governance
|
32
|
Item
10.
|
Executive
Compensation
|
32
|
Item
11.
|
Security
Ownership of Certain Beneficial Owners
|
|
and
Management and Related Stockholder Matters
|
32
|
|
Item
12.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
32
|
Item
13.
|
Principal
Accountant Fees and Services
|
32
|
PART
IV
|
||
Item
14.
|
Exhibits
and Financial Statement Schedules
|
33
|
Signatures
|
34
|
At December 31,
|
||||||||||||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
$
|
%
|
$
|
%
|
$
|
%
|
$
|
%
|
$
|
%
|
||||||||||||||||||||||||||||||
Mortgage:
|
||||||||||||||||||||||||||||||||||||||||
Residential
|
$ | 95,683 | 39.81 | % | $ | 87,708 | 36.85 | % | $ | 76,781 | 37.98 | % | $ | 68,341 | 34.88 | % | $ | 71,841 | 37.17 | % | ||||||||||||||||||||
Commercial
|
79,845 | 33.23 | 76,153 | 31.99 | 47,843 | 23.66 | 53,164 | 27.13 | 37,666 | 19.50 | ||||||||||||||||||||||||||||||
Construction
and land development
|
1,743 | 0.73 | 6,590 | 2.77 | 5,876 | 2.91 | 1,609 | 0.83 | 1,402 | 0.73 | ||||||||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||||||||||
Installment
|
15,965 | 6.64 | 16,451 | 6.91 | 17,087 | 8.45 | 15,044 | 7.67 | 15,748 | 8.15 | ||||||||||||||||||||||||||||||
Credit
card
|
166 | 0.07 | 173 | 0.07 | 143 | 0.07 | 144 | 0.08 | 128 | 0.07 | ||||||||||||||||||||||||||||||
Indirect
automobile
|
37,092 | 15.44 | 43,970 | 18.47 | 49,260 | 24.37 | 52,539 | 26.81 | 60,510 | 31.31 | ||||||||||||||||||||||||||||||
Commercial
|
9,801 | 4.08 | 6,974 | 2.94 | 5,184 | 2.56 | 5,077 | 2.60 | 5,932 | 3.07 | ||||||||||||||||||||||||||||||
Gross
loans
|
240,295 | 100.00 | % | 238,019 | 100.00 | % | 202,174 | 100.00 | % | 195,918 | 100.00 | % | 193,227 | 100.00 | % | |||||||||||||||||||||||||
Unearned
income on loans
|
(839 | ) | (864 | ) | (816 | ) | (743 | ) | (821 | ) | ||||||||||||||||||||||||||||||
Gross
loans net of unearned income
|
239,456 | 237,155 | 201,357 | 195,175 | 192,406 | |||||||||||||||||||||||||||||||||||
Allowance
for credit losses
|
(3,573 | ) | (2,022 | ) | (1,604 | ) | (1,839 | ) | (2,201 | ) | ||||||||||||||||||||||||||||||
Loans,
net
|
$ | 235,883 | $ | 235,133 | $ | 199,753 | $ | 193,336 | $ | 190,205 |
Due Within
One Year
|
Due Over One To
Five Years
|
Due Over
Five Years
|
Total
|
|||||||||||||
(In
Thousands)
|
||||||||||||||||
Real
Estate - mortgage:
|
||||||||||||||||
Residential
|
$ | 7,447 | $ | 2,580 | $ | 85,656 | $ | 95,683 | ||||||||
Commercial
|
11,113 | 43,639 | 25,093 | 79,845 | ||||||||||||
Construction
and land development
|
738 | 281 | 724 | 1,743 | ||||||||||||
Installment
|
492 | 9,792 | 5,681 | 15,965 | ||||||||||||
Credit
Card
|
51 | 27 | 88 | 166 | ||||||||||||
Indirect
automobile
|
1,082 | 29,512 | 6,498 | 37,092 | ||||||||||||
Commercial
|
6,169 | 500 | 3,132 | 9,801 | ||||||||||||
$ | 27,092 | $ | 86,331 | $ | 126,872 | $ | 240,295 |
At December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||
Restructured
Loans
|
$ | 87 | $ | - | $ | 578 | $ | - | $ | - | ||||||||||
Non-accrual
loans:
|
||||||||||||||||||||
Real
estate – mortgage:
|
||||||||||||||||||||
Residential
|
$ | 215 | $ | - | $ | - | $ | 3 | $ | 14 | ||||||||||
Commercial
|
2,626 | 659 | - | - | - | |||||||||||||||
Real
estate - construction
|
- | - | - | - | - | |||||||||||||||
Installment
|
176 | 208 | 212 | 46 | 159 | |||||||||||||||
Commercial
|
- | - | - | 8 | 12 | |||||||||||||||
Total
non-accrual loans
|
3,017 | 867 | 212 | 57 | 185 | |||||||||||||||
Accruing
loans past due 90 days or more
|
||||||||||||||||||||
Real
estate – mortgage:
|
||||||||||||||||||||
Residential
|
8 | 3 | 512 | 2 | 1 | |||||||||||||||
Commercial
|
- | - | - | - | - | |||||||||||||||
Real
estate - construction
|
- | 5 | - | - | 3 | |||||||||||||||
Installment
|
1 | 26 | - | - | - | |||||||||||||||
Commercial
|
12 | - | 128 | - | - | |||||||||||||||
Total
accruing loans past due 90 days or more
|
21 | 34 | 640 | 2 | 4 | |||||||||||||||
Total
non-accrual and past due loans
|
$ | 3,038 | $ | 901 | $ | 852 | $ | 59 | $ | 189 | ||||||||||
Non-accrual
and past due loans to gross loans
|
1.26 | % | 0.38 | % | 0.43 | % | 0.03 | % | 0.10 | % | ||||||||||
Allowance
for credit losses to non-accrual and past due loans
|
117.61 | % | 224.42 | % | 188.27 | % | 3,116.95 | % | 1,164.55 | % |
Year Ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||
Beginning
Balance
|
$ | 2,022 | $ | 1,604 | $ | 1,839 | $ | 2,201 | $ | 2,412 | ||||||||||
Loans
charged off
|
||||||||||||||||||||
Real
estate - mortgage:
|
||||||||||||||||||||
Residential
|
85 | - | - | 1 | - | |||||||||||||||
Commercial
|
- | - | - | - | - | |||||||||||||||
Real
estate - construction
|
- | - | - | - | - | |||||||||||||||
Installment
|
1,070 | 1,079 | 591 | 528 | 495 | |||||||||||||||
Credit
card & related
|
- | - | - | - | - | |||||||||||||||
Commercial
|
133 | 2 | - | 253 | 127 | |||||||||||||||
Total
|
1,288 | 1,081 | 591 | 782 | 622 | |||||||||||||||
Recoveries
|
||||||||||||||||||||
Real
estate - mortgage:
|
||||||||||||||||||||
Residential
|
- | - | - | 1 | - | |||||||||||||||
Commercial
|
- | - | - | - | - | |||||||||||||||
Real
estate - construction
|
- | - | - | - | - | |||||||||||||||
Installment
|
359 | 333 | 258 | 335 | 276 | |||||||||||||||
Credit
card & related
|
- | - | - | - | - | |||||||||||||||
Commercial
|
37 | 20 | 48 | 22 | 185 | |||||||||||||||
Total
|
396 | 353 | 306 | 358 | 461 | |||||||||||||||
Net
charge offs/(recoveries)
|
892 | 728 | 285 | 424 | 161 | |||||||||||||||
Provisions
(credited) charged to operations
|
2,443 | 1,146 | 50 | 62 | (50 | ) | ||||||||||||||
Ending
balance
|
$ | 3,573 | $ | 2,022 | $ | 1,604 | $ | 1,839 | $ | 2,201 | ||||||||||
Average
loans
|
$ | 239,788 | $ | 219,485 | $ | 199,632 | $ | 186,706 | $ | 191,706 | ||||||||||
Net
charge-offs to average loans
|
0.37 | % | 0.33 | % | 0.14 | % | 0.23 | % | 0.09 | % |
At December 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Portfolio
|
Allowance For
Each Category
|
Percentage Of Loans In
Each Category To
Total Loans
|
Allowance For
Each Category
|
Percentage Of Loans In
Each Category To
Total Loans
|
||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||
Real
Estate - mortgage:
|
||||||||||||||||
Residential
|
$ | 162 | 39.81 | % | $ | 123 | 36.85 | % | ||||||||
Commercial
|
2,377 | 33.23 | 460 | 31.99 | ||||||||||||
Real
Estate — construction
|
4 | 0.73 | 63 | 2.77 | ||||||||||||
Installment
|
146 | 6.64 | 161 | 6.91 | ||||||||||||
Credit
Card
|
- | 0.07 | - | 0.07 | ||||||||||||
Indirect
automobile
|
697 | 15.44 | 942 | 18.47 | ||||||||||||
Commercial
|
237 | 4.08 | 240 | 2.94 | ||||||||||||
Unallocated
|
(50 | ) | - | 33 | - | |||||||||||
Total
|
$ | 3,573 | 100.00 | % | $ | 2,022 | 100.00 | % |
At December 31,
|
||||||||||||||||||||||||
2007
|
2006
|
2005
|
||||||||||||||||||||||
Portfolio
|
Allowance For
Each Category
|
Percentage Of
Loans In Each
Category To
Total Loans
|
Allowance For
Each Category
|
Percentage Of
Loans In Each
Category To
Total Loans
|
Allowance For
Each Category
|
Percentage Of
Loans In Each
Category To
Total Loans
|
||||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||||||
Real
Estate – mortgage:
|
||||||||||||||||||||||||
Residential
|
$ | 117 | 37.98 | % | $ | 149 | 34.88 | % | $ | 153 | 37.17 | % | ||||||||||||
Commercial
|
163 | 23.66 | 314 | 27.13 | 277 | 19.50 | ||||||||||||||||||
Real
Estate – construction
|
102 | 2.91 | 14 | 0.83 | 8 | 0.73 | ||||||||||||||||||
Installment
|
55 | 8.45 | 103 | 7.67 | 103 | 8.15 | ||||||||||||||||||
Credit
Card
|
- | 0.07 | - | 0.08 | - | 0.07 | ||||||||||||||||||
Indirect
automobile
|
892 | 24.37 | 1,119 | 26.81 | 1,260 | 1.31 | ||||||||||||||||||
Commercial
|
257 | 2.56 | 260 | 2.60 | 264 | 3.07 | ||||||||||||||||||
Unallocated
|
18 | - | 120 | - | 136 | - | ||||||||||||||||||
Total
|
$ | 1,604 | 100.00 | % | $ | 1,839 | 100.00 | % | $ | 2,201 | 100.00 | % |
At December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(In
Thousands)
|
||||||||||||
U.S.
Treasury securities
|
$ | - | $ | - | $ | - | ||||||
U.S.
Government agencies and mortgage backed securities
|
54,030 | 25,571 | 44,094 | |||||||||
Obligations
of states and political subdivisions
|
30,073 | 31,466 | 32,311 | |||||||||
Corporate
trust preferred
|
2,080 | 2,169 | 2,167 | |||||||||
Total
investment securities
|
$ | 86,183 | $ | 59,206 | $ | 78,572 |
One Year Or Less
|
One To Five Years
|
Five to Ten Years
|
More Than Ten Years
|
Total
|
||||||||||||||||||||||||||||||||||||
Amort.
Cost
|
Weighted
Average
Yield
|
Amort.
Cost
|
Weighted
Average
Yield
|
Amort.
Cost
|
Weighted
Average
Yield
|
Amort.
Cost
|
Weighted
Average
Yield
|
Amort.
Cost
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||||||||
U.S.
Treasury securities
|
$ | - | - | % | $ | - | - | % | $ | - | - | % | $ | - | - | % | $ | - | - | % | ||||||||||||||||||||
U.S.
Government agencies and mortgage backed securities
|
- | - | - | - | 1,261 | 5.00 | 52,769 | 4.67 | 54,030 | 4.67 | ||||||||||||||||||||||||||||||
Obligations
of states and political subdivisions
|
650 | 3.19 | 1,825 | 3.49 | 566 | 4.36 | 27,032 | 4.40 | 30,073 | 4.32 | ||||||||||||||||||||||||||||||
Corporate
trust preferred
|
- | - | - | - | - | - | 2,080 | 8.68 | 2,080 | 8.68 | ||||||||||||||||||||||||||||||
Total
investment securities
|
$ | 650 | 3.19 | % | $ | 1,825 | 3.49 | % | $ | 1,827 | 4.80 | % | $ | 81,881 | 4.70 | % | $ | 86,183 | 4.67 | % |
Amount
(In Thousands)
|
||||
Three
months or less
|
$ | 10,286 | ||
Over
three through six months
|
4,829 | |||
Over
six through 12 months
|
10,948 | |||
Over
12 months
|
19,183 | |||
Total
|
$ | 45,246 |
Year
Opened
|
Owned/
Leased
|
Book Value
|
Approximate
Square Footage
|
Deposits
|
||||||||||||
Main Office:
|
||||||||||||||||
101
Crain Highway, S.E.
Glen
Burnie, MD 21061
|
1953
|
Owned
|
$ | 671,060 | 10,000 | $ | 87,115,646 | |||||||||
Branches:
|
||||||||||||||||
Odenton
1405
Annapolis Road
Odenton,
MD 21113
|
1969
|
Owned
|
150,062 | 6,000 | 40,465,617 | |||||||||||
Riviera
Beach
8707
Ft. Smallwood Road
Pasadena,
MD 21122
|
1973
|
Owned
|
130,706 | 2,500 | 31,372,810 | |||||||||||
Crownsville
1221
Generals Highway
Crownsville,
MD 21032
|
1979
|
Owned
|
296,199 | 3,000 | 51,088,811 | |||||||||||
Severn
811
Reece Road
Severn,
MD 21144
|
1984
|
Owned
|
144,954 | 2,500 | 28,640,749 | |||||||||||
New
Cut Road
740
Stevenson Road
Severn,
MD 21144
|
1995
|
Owned
|
1,371,380 | 2,600 | 23,941,839 | |||||||||||
Linthicum
Burwood
Village Shopping Center
Glen
Burnie, MD 21060
|
2005
|
Leased
|
133,556 | 2,500 | 15,043,178 | |||||||||||
Severna
Park
534
Ritchie Highway
Severna
Park, MD 21146
|
2002
|
Leased
|
87,353 | 2,184 | 17,219,471 | |||||||||||
Operations Centers:
|
||||||||||||||||
106
Padfield Blvd.
Glen
Burnie, MD 21061
|
1991
|
Owned
|
863,065 | 16,200 | N/A | |||||||||||
103
Crain Highway, S.E.
Glen
Burnie, MD 21061
|
2000
|
Owned
|
272,262 | 3,727 | N/A |
NAME
|
AGE
|
POSITIONS
|
|||
F.
William Kuethe, Jr.
|
77
|
President
Emeritus
|
|||
Michael
G. Livingston
|
56
|
President
and Chief Executive Officer
|
|||
John
E. Porter
|
56
|
Senior
Vice President and Chief Financial Officer
|
2009
|
2008
|
|||||||||||||||||||||||
Quarter Ended
|
High
|
Low
|
Dividends
|
High
|
Low
|
Dividends
|
||||||||||||||||||
March
31,
|
$ | 10.96 | $ | 8.41 | $ | 0.10 | $ | 14.12 | $ | 10.25 | $ | 0.10 | ||||||||||||
June
30,
|
9.40 | 7.80 | 0.10 | 12.95 | 11.00 | 0.10 | ||||||||||||||||||
September
30
|
9.25 | 7.70 | 0.10 | 12.00 | 8.90 | 0.10 | ||||||||||||||||||
December
31
|
9.76 | 8.09 | 0.10 | 10.94 | 8.54 | 0.15 |
Total Return Analysis
|
||||||||||||||||||||||||
12/31/2004
|
12/31/2005
|
12/31/2005
|
12/31/2007
|
12/31/2008
|
12/31/2009
|
|||||||||||||||||||
Glen
Burnie Bancorp
|
$ | 100.00 | $ | 91.06 | $ | 89.12 | $ | 83.66 | $ | 73.68 | $ | 64.92 | ||||||||||||
Peer
Group
|
$ | 100.00 | $ | 99.12 | $ | 103.87 | $ | 85.27 | $ | 56.78 | $ | 51.09 | ||||||||||||
Nasdaq
Composite
|
$ | 100.00 | $ | 102.12 | $ | 112.73 | $ | 124.73 | $ | 74.87 | $ | 108.83 |
Year
Ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
In Thousand Except Per Share Data)
|
||||||||||||||||||||
Operations
Data:
|
||||||||||||||||||||
Net
Interest Income
|
$ | 12,102 | $ | 11,922 | $ | 11,866 | $ | 11,821 | $ | 11,966 | ||||||||||
Provision
for Credit Losses
|
2,443 | 1,146 | 50 | 62 | (50 | ) | ||||||||||||||
Other
Income
|
2,365 | 2,051 | 2,157 | 2,244 | 2,114 | |||||||||||||||
Other
Expense
|
10,995 | 13,102 | 10,433 | 10,682 | 10,625 | |||||||||||||||
Net
Income
|
1,262 | 404 | 2,782 | 2,720 | 2,775 | |||||||||||||||
Share
Data:
|
||||||||||||||||||||
Basic
Net Income Per Share
|
$ | 0.46 | $ | 0.14 | $ | 0.93 | $ | 0.92 | $ | 0.94 | ||||||||||
Diluted
Net Income Per Share
|
0.46 | 0.14 | 0.93 | 0.92 | 0.94 | |||||||||||||||
Cash
Dividends Declared Per Common Share
|
0.40 | 0.45 | 0.45 | 0.45 | 0.41 | |||||||||||||||
Weighted
Average Common Shares Outstanding:
|
||||||||||||||||||||
Basic
|
2,734,524 | 2,981,124 | 2,988,796 | 2,972,362 | 2,956,417 | |||||||||||||||
Diluted
|
2,734,524 | 2,981,124 | 2,988,796 | 2,972,362 | 2,956,417 | |||||||||||||||
Financial
Condition Data:
|
||||||||||||||||||||
Total
Assets
|
$ | 353,397 | $ | 332,502 | $ | 307,274 | $ | 317,746 | $ | 306,561 | ||||||||||
Loans
Receivable, Net
|
235,883 | 235,133 | 199,753 | 193,337 | 190,205 | |||||||||||||||
Total
Deposits
|
294,358 | 269,768 | 252,917 | 274,833 | 265,248 | |||||||||||||||
Long
Term Borrowings
|
27,034 | 27,072 | 17,107 | 7,140 | 7,171 | |||||||||||||||
Junior
Subordinated Debentures
|
5,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||||||
Total
Stockholders’ Equity
|
25,149 | 27,908 | 29,736 | 28,201 | 26,625 | |||||||||||||||
Performance
Ratios:
|
||||||||||||||||||||
Return
on Average Assets
|
0.36 | % | 0.13 | % | 0.89 | % | 0.84 | % | 0.89 | % | ||||||||||
Return
on Average Equity
|
4.87 | 1.49 | 9.60 | 10.00 | 10.50 | |||||||||||||||
Net
Interest Margin (1)
|
4.29 | 4.31 | 4.39 | 4.31 | 4.46 | |||||||||||||||
Dividend
Payout Ratio
|
85.59 | 332.98 | 48.33 | 49.18 | 43.52 | |||||||||||||||
Capital
Ratios:
|
||||||||||||||||||||
Average
Equity to Average Assets
|
7.37 | % | 8.99 | % | 9.28 | % | 8.36 | % | 8.47 | % | ||||||||||
Leverage
Ratio
|
8.86 | 10.50 | 11.34 | 10.30 | 10.17 | |||||||||||||||
Total
Risk-Based Capital Ratio
|
14.40 | 14.93 | 17.50 | 17.07 | 16.98 | |||||||||||||||
Asset
Quality Ratios:
|
||||||||||||||||||||
Allowance
for Credit Losses to Gross Loans
|
1.18 | % | 0.85 | % | 0.80 | % | 0.94 | % | 1.14 | % | ||||||||||
Non-accrual
and Past Due Loans to Gross Loans
|
1.26 | % | 0.38 | % | 0.43 | % | 0.03 | % | 0.10 | % | ||||||||||
Allowance
for Credit Losses to Non- Accrual and Past Due Loans
|
117.61 | % | 224.42 | % | 188.27 | % | 3,116.95 | % | 1,164.55 | % | ||||||||||
Net
Loan Charge-offs (Recoveries) to Average Loans
|
0.37 | % | 0.33 | % | 0.14 | % | 0.23 | % | 0.09 | % |
ITEM
6.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Year Ended December 31,
|
||||||||||||||||||||||||
2009
|
VS.
|
2008
|
2008
|
VS.
|
2007
|
|||||||||||||||||||
Change Due To:
|
Change Due To:
|
|||||||||||||||||||||||
Increase/
Decrease
|
Rate
|
Volume
|
Increase/
Decrease
|
Rate
|
Volume
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Federal
funds sold
|
$ | 7 | $ | (44 | ) | $ | 51 | $ | (134 | ) | $ | (18 | ) | $ | (116 | ) | ||||||||
Interest-bearing
deposits
|
(115 | ) | (229 | ) | 114 | 31 | (207 | ) | 238 | |||||||||||||||
Investment
securities:
|
||||||||||||||||||||||||
U.S.
Treasury securities, obligations of U.S. government agencies and
mortgage-backed securities
|
(109 | ) | (404 | ) | 295 | (591 | ) | 7 | (598 | ) | ||||||||||||||
Obligations
of states and political subdivisions(1)
|
(121 | ) | 68 | (189 | ) | (75 | ) | 43 | (118 | ) | ||||||||||||||
All
other investment securities
|
(4 | ) | (1 | ) | (3 | ) | (58 | ) | 1 | (59 | ) | |||||||||||||
Total
investment securities
|
(234 | ) | (337 | ) | 103 | (724 | ) | 51 | (775 | ) | ||||||||||||||
Loans,
net of unearned income:
|
||||||||||||||||||||||||
Demand,
time and lease
|
9 | (122 | ) | 131 | (58 | ) | (179 | ) | 121 | |||||||||||||||
Mortgage
and construction
|
995 | (436 | ) | 1,431 | 1,749 | 152 | 1,597 | |||||||||||||||||
Installment
and credit card
|
(212 | ) | 54 | (266 | ) | (183 | ) | 253 | (436 | ) | ||||||||||||||
Total
gross loans(2)
|
792 | (504 | ) | 1,296 | 1,508 | 226 | 1,282 | |||||||||||||||||
Allowance
for credit losses
|
- | - | - | - | - | - | ||||||||||||||||||
Total
net loans
|
792 | (504 | ) | 1,296 | 1,508 | 226 | 1,282 | |||||||||||||||||
Total
interest-earning assets
|
$ | 450 | $ | (1,114 | ) | $ | 1,564 | $ | 681 | $ | 52 | $ | 629 | |||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Savings
and NOW
|
$ | (22 | ) | $ | (23 | ) | $ | 1 | $ | (79 | ) | $ | (69 | ) | $ | (10 | ) | |||||||
Money
market
|
(5 | ) | (8 | ) | 3 | (41 | ) | (27 | ) | (14 | ) | |||||||||||||
Other
time deposits
|
184 | (958 | ) | 1,142 | 76 | (209 | ) | 285 | ||||||||||||||||
Total
interest-bearing deposits
|
157 | (989 | ) | 1,146 | (44 | ) | (305 | ) | 261 | |||||||||||||||
Non-interest-bearing
deposits
|
- | - | - | - | - | - | ||||||||||||||||||
Borrowed
funds
|
130 | (147 | ) | 277 | 328 | (577 | ) | 905 | ||||||||||||||||
Total
interest-bearing liabilities
|
$ | 287 | $ | (1,136 | ) | $ | 1,423 | $ | 284 | $ | (882 | ) | $ | 1,166 |
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Cost
|
Average
Balance
|
Interest
|
Yield/
Cost
|
Average
Balance
|
Interest
|
Yield/
Cost
|
||||||||||||||||||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||||||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
Federal
funds sold
|
$ | 4,843 | $ | 12 | 0.26 | % | $ | 433 | $ | 5 | 1.15 | % | $ | 2,665 | $ | 139 | 5.22 | % | ||||||||||||||||||
Interest-bearing
deposits
|
12,337 | 15 | 0.12 | 6,560 | 130 | 1.98 | 1,929 | 99 | 5.13 | |||||||||||||||||||||||||||
Investment
securities:
|
||||||||||||||||||||||||||||||||||||
U.S.
Treasury securities, obligations of U.S. government agencies and
mortgage-backed securities
|
44,367 | 1,854 | 4.18 | 38,532 | 1,963 | 5.09 | 50,392 | 2,554 | 5.07 | |||||||||||||||||||||||||||
Obligations
of states and political subdivisions(1)
|
29,557 | 2,013 | 6.81 | 32,421 | 2,134 | 6.58 | 34,288 | 2,209 | 6.45 | |||||||||||||||||||||||||||
All
other investment securities
|
2,138 | 189 | 8.84 | 2,168 | 193 | 8.90 | 2,839 | 251 | 8.84 | |||||||||||||||||||||||||||
Total
investment securities
|
76,062 | 4,056 | 5.33 | 73,121 | 4,290 | 5.87 | 87,519 | 5,014 | 5.73 | |||||||||||||||||||||||||||
Loans,
net of unearned income:
|
||||||||||||||||||||||||||||||||||||
Demand,
time and lease
|
8,132 | 399 | 4.91 | 6,082 | 390 | 6.41 | 4,788 | 448 | 9.36 | |||||||||||||||||||||||||||
Mortgage
and construction
|
173,741 | 10,770 | 6.20 | 151,656 | 9,775 | 6.45 | 126,391 | 8,026 | 6.35 | |||||||||||||||||||||||||||
Installment
and credit card
|
57,915 | 4,079 | 7.04 | 61,747 | 4,291 | 6.95 | 68,453 | 4,474 | 6.54 | |||||||||||||||||||||||||||
Total
gross loans(2)
|
239,788 | 15,248 | 6.36 | 219,485 | 14,456 | 6.59 | 199,632 | 12,948 | 6.49 | |||||||||||||||||||||||||||
Allowance
for credit losses
|
(2,037 | ) | (1,479 | ) | (1,766 | ) | ||||||||||||||||||||||||||||||
Total
net loans
|
237,751 | 15,248 | 6.41 | 218,006 | 14,456 | 6.63 | 197,866 | 12,948 | 6.54 | |||||||||||||||||||||||||||
Total
interest-earning assets
|
330,993 | 19,331 | 5.84 | 298,120 | 18,881 | 6.33 | 289,979 | 18,200 | 6.28 | |||||||||||||||||||||||||||
Cash
and due from banks
|
4,488 | 7,891 | 8,862 | |||||||||||||||||||||||||||||||||
Other
assets
|
16,709 | 14,740 | 13,661 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 352,192 | $ | 320,751 | $ | 312,502 | ||||||||||||||||||||||||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||||||||||||||
Savings
and NOW
|
$ | 71,124 | 162 | 0.23 | % | $ | 69,468 | 184 | 0.26 | % | $ | 72,831 | 263 | 0.36 | % | |||||||||||||||||||||
Money
market
|
14,363 | 57 | 0.40 | 13,751 | 62 | 0.45 | 15,918 | 103 | 0.65 | |||||||||||||||||||||||||||
Other
time deposits
|
137,764 | 4,718 | 3.42 | 110,049 | 4,534 | 4.12 | 103,491 | 4,458 | 4.31 | |||||||||||||||||||||||||||
Total
interest-bearing deposits
|
223,251 | 4,937 | 2.21 | 193,268 | 4,780 | 2.47 | 192,240 | 4,824 | 2.51 | |||||||||||||||||||||||||||
Short-term
borrowed funds
|
262 | 0 | 0.02 | 2,209 | 51 | 2.31 | 2,294 | 119 | 5.19 | |||||||||||||||||||||||||||
Long-term
borrowed funds
|
32,206 | 1,605 | 4.98 | 26,287 | 1,424 | 5.42 | 13,949 | 1,028 | 7.37 | |||||||||||||||||||||||||||
Total
interest-bearing liabilities
|
255,719 | 6,542 | 2.56 | 221,764 | 6,255 | 2.82 | 208,483 | 5,971 | 2.86 | |||||||||||||||||||||||||||
Non-interest-bearing
deposits
|
67,572 | 68,340 | 73,415 | |||||||||||||||||||||||||||||||||
Other
liabilitiesS
|
2,957 | 1,806 | 1,609 | |||||||||||||||||||||||||||||||||
Stockholders’
equity
|
25,944 | 28,841 | 28,995 | |||||||||||||||||||||||||||||||||
Total
liabilities and equity
|
$ | 352,192 | $ | 320,751 | $ | 312,502 | ||||||||||||||||||||||||||||||
Net
interest income
|
$ | 12,789 | $ | 12,626 | $ | 12,229 | ||||||||||||||||||||||||||||||
Net
interest spread
|
3.28 | % | 3.51 | % | 3.42 | % | ||||||||||||||||||||||||||||||
Net
interest margin
|
4.29 | % | 4.31 | % | 4.39 | % |
0-3 Months
|
Over 3 To
12 Months
|
Over 1
Through 5 Years
|
Over 5
Years
|
Total
|
||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash
and due from banks
|
$ | - | $ | - | $ | - | $ | - | $ | 10,742 | ||||||||||
Federal
funds and overnight deposits
|
692 | - | - | - | 692 | |||||||||||||||
Securities
|
- | 651 | 1,851 | 81,961 | 84,463 | |||||||||||||||
Loans
|
11,508 | 11,172 | 86,331 | 126,872 | 235,883 | |||||||||||||||
Fixed
Assets
|
- | - | - | - | 4,121 | |||||||||||||||
Other
Assets
|
- | - | - | - | 17,496 | |||||||||||||||
Total
assets
|
$ | 12,200 | $ | 11,823 | $ | 88,182 | $ | 208,833 | $ | 353,397 | ||||||||||
Liabilities:
|
||||||||||||||||||||
Demand
deposit accounts
|
$ | - | $ | - | $ | - | $ | - | $ | 67,808 | ||||||||||
NOW
accounts
|
22,353 | - | - | - | 22,353 | |||||||||||||||
Money
market deposit accounts
|
15,284 | - | - | - | 15,284 | |||||||||||||||
Savings
accounts
|
48,378 | 212 | - | - | 48,500 | |||||||||||||||
IRA
accounts
|
5,988 | 10,969 | 21,674 | 819 | 39,450 | |||||||||||||||
Certificates
of deposit
|
25,591 | 41,374 | 33,484 | 422 | 100,871 | |||||||||||||||
Other
liabilities
|
- | - | - | - | 28,737 | |||||||||||||||
Junior
Subordinated Debenture
|
- | - | - | - | 5,155 | |||||||||||||||
Stockholders’
equity
|
- | - | - | - | 25,149 | |||||||||||||||
Total
liabilities and Stockholders’ equity
|
$ | 117,594 | $ | 52,555 | $ | 55,158 | $ | 1,241 | $ | 353,397 | ||||||||||
GAP
|
$ | (105,396 | ) | $ | (40,732 | ) | $ | 33,024 | $ | 207,592 | ||||||||||
Cumulative
GAP
|
(105,396 | ) | (146,128 | ) | (113,014 | ) | 94,578 | |||||||||||||
Cumulative
GAP as a % of total assets
|
(29.82 | %) | (41.35 | %) | (31.98 | %) | 26.76 | % |
Immediate Change in Rates
|
||||||||||||||||
-200 |
-100
|
+100
|
+200
|
|||||||||||||
Basis Points
|
Basis Points
|
Basis Points
|
Basis Points
|
|||||||||||||
%
Change in Net Interest Income
|
-4.9 | % | -3.1 | % | 0.6 | % | -1.6 | % | ||||||||
%
Change in Economic Value of Equity
|
-16.1 | % | -8.2 | % | 0.4 | % | -11.4 | % |
ITEM
7.
|
FINANCIAL STATEMENTS
AND SUPPLEMENTARY DATA
|
CHANGES IN AND
DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM
8A(T).
|
CONTROLS AND
PROCEDURES
|
ITEM
8B.
|
OTHER
INFORMATION
|
ITEM
10.
|
EXECUTIVE
COMPENSATION
|
ITEM
11.
|
SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
|
ITEM
12.
|
CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE
|
ITEM
13.
|
PRINCIPAL ACCOUNTANT
FEES AND SERVICES
|
Page
|
||
Report
of Independent registered Public Accounting Firm
|
F-1
|
|
Consolidated
Balance Sheets as of December 31, 2009, 2008 and 2007
|
F-2
|
|
Consolidated
Statements of Income for the Years Ended December 31, 2009, 2008 and
2007
|
F-3
|
|
Consolidated
Statements of Comprehensive Income for the Years Ended December 31, 2009,
2008 and 2007
|
F-4
|
|
Consolidated
Statements of Changes in Stockholders’ Equity for the Years Ended December
31, 2009, 2008 and 2007
|
F-5
|
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and
2007
|
F-6
|
|
Notes
to Consolidated Financial Statements
|
F-8
|
Exhibit No.
|
||
3.1
|
Articles
of Incorporation (incorporated by reference to Exhibit 3.1 to Amendment
No. 1 to the Registrant’s Form 8-A filed December 27, 1999, File No.
0-24047)
|
|
3.2
|
Articles of Amendment, dated
October 8, 2003 (incorporated by reference to Exhibit 3.2 to the
Registrant’s Quarterly Report on Form 10-Q for the Quarter ended September
30, 2003, File No. 0-24047)
|
|
3.3
|
Articles
Supplementary, dated November 16, 1999 (incorporated by reference to
Exhibit 3.3 to the Registrant’s Current Report on Form 8-K filed December
8, 1999, File No. 0-24047)
|
|
3.4
|
By-Laws
(incorporated by reference to Exhibit 3.4 to the Registrant’s Quarterly
Report on Form 10-Q for the Quarter ended September 30, 2003, File No.
0-24047)
|
|
4.1
|
Rights
Agreement, dated as of February 13, 1998, between Glen Burnie Bancorp and
The Bank of Glen Burnie, as Rights Agent, as amended and restated as of
December 27, 1999 (incorporated by reference to Exhibit 4.1 to Amendment
No. 1 to the Registrant’s Form 8-A filed December 27, 1999, File No.
0-24047)
|
|
10.1
|
Glen
Burnie Bancorp Director Stock Purchase Plan (incorporated by reference to
Exhibit 99.1 to Post-Effective Amendment No. 1 to the Registrant’s
Registration Statement on Form S-8, File No.33-62280)
|
|
10.2
|
The
Bank of Glen Burnie Employee Stock Purchase Plan (incorporated by
reference to Exhibit 99.1 to Post-Effective Amendment No. 1 to the
Registrant’s Registration Statement on Form S-8, File No.
333-46943)
|
|
10.3
|
Amended
and Restated Change-in-Control Severance Plan (incorporated by reference
to Exhibit 3.2 to the Registrant’s Annual Report on Form 10-K for the
Fiscal Year Ended December 31, 2001, File No. 0-24047)
|
|
10.4
|
The
Bank of Glen Burnie Executive and Director Deferred Compensation Plan
(incorporated by reference to Exhibit 10.4 to the Registrant’s Annual
Report on Form 10-K for the Fiscal Year Ended December 31, 1999, File No.
0-24047)
|
|
21
|
Subsidiaries
of the Registrant (incorporated by reference to Exhibit 3.2 to the
Registrant’s Annual Report on Form 10-K for the Fiscal Year Ended December
31, 2001, File No. 0-24047)
|
|
23
|
Consent
of TGM Group LLC
|
|
31.1
|
Rule
15d-14(a) Certification of Chief Executive Officer
|
|
31.2
|
Rule
15d-14(a) Certification of Chief Financial Officer
|
|
32.1
|
Section
1350 Certifications
|
GLEN
BURNIE BANCORP
|
||
March
12, 2010
|
By:
|
/s/ Michael G.
Livingston
|
Michael
G. Livingston
|
||
President
and Chief Executive
Officer
|
Signature
|
Title
|
Date
|
||
/s/ Michael G. Livingston
|
President,
Chief Executive Officer
|
March
12, 2010
|
||
Michael
G. Livingston
|
and
Director
|
|||
/s/ F. William Kuethe, Jr.
|
President
Emeritus and Director
|
March
12, 2010
|
||
F.
William Kuethe, Jr.
|
||||
/s/ John E. Porter
|
Senior
Vice President and Chief
|
March
12, 2010
|
||
John
E. Porter
|
Financial
Officer
|
|||
/s/ John E. Demyan
|
Chairman
of the Board and Director
|
March
12, 2010
|
||
John
E. Demyan
|
||||
/s/ Shirley E. Boyer
|
Director
|
March
12, 2010
|
||
Shirley
E. Boyer
|
||||
/s/ Thomas Clocker
|
Director
|
March
12, 2010
|
||
Thomas
Clocker
|
||||
/s/ Norman E. Harrison, Jr.
|
Director
|
March
12, 2010
|
||
Norman
E. Harrison, Jr.
|
||||
/s/ F. W. Kuethe, III
|
Director
|
March
12, 2010
|
||
F.
W. Kuethe, III
|
||||
/s/ Charles Lynch
|
Director
|
March
12, 2010
|
||
Charles
Lynch
|
||||
/s/ Edward L. Maddox
|
Director
|
March
12, 2010
|
||
Edward
L. Maddox
|
||||
/s/ William N. Scherer,
Sr.
|
Director
|
March
12, 2010
|
||
William N. Scherer, Sr.
|
||||
/s/ Karen B. Thorwarth
|
Director
|
March
12, 2010
|
||
Karen
B. Thorwarth
|
||||
/s/ Mary Lou Wilcox
|
Director
|
March
12, 2010
|
||
Mary
Lou Wilcox
|
Glen
Burnie Bancorp and Subsidiaries
|
||||||||||||
Consolidated
Balance Sheets
|
||||||||||||
December
31,
|
2009
|
2008
|
2007
|
|||||||||
Assets
|
||||||||||||
Cash
and due from banks
|
$ | 6,993,811 | $ | 6,960,377 | $ | 8,220,582 | ||||||
Interest-bearing
deposits in other financial institutions
|
3,748,387 | 7,883,816 | 5,847,562 | |||||||||
Federal
funds sold
|
691,624 | 6,393,710 | 726,916 | |||||||||
Cash
and cash equivalents
|
11,433,822 | 21,237,903 | 14,795,060 | |||||||||
Investment
securities available for sale, at fair value
|
84,462,605 | 57,948,645 | 77,182,181 | |||||||||
Investment
securities held to maturity (fair value
|
||||||||||||
2007
$726,193)
|
- | - | 683,832 | |||||||||
Federal
Home Loan Bank stock, at cost
|
1,858,300 | 1,767,600 | 1,381,900 | |||||||||
Maryland
Financial Bank stock, at cost
|
100,000 | 100,000 | 100,000 | |||||||||
Common
stock in the Glen Burnie Statutory Trust I
|
155,000 | 155,000 | 155,000 | |||||||||
Ground
rents, at cost
|
184,900 | 184,900 | 202,900 | |||||||||
Loans,
less allowance for credit losses
|
||||||||||||
2009 $3,572,528; 2008
$2,021,690; 2007 $1,604,491;
|
235,882,862 | 235,132,621 | 199,753,132 | |||||||||
Premises
and equipment, at cost, less accumulated depreciation
|
4,120,597 | 3,099,448 | 3,087,908 | |||||||||
Accrued
interest receivable on loans and investment securities
|
1,626,792 | 1,680,392 | 1,508,640 | |||||||||
Deferred
income tax benefits
|
3,129,435 | 2,286,483 | 453,512 | |||||||||
Other
real estate owned
|
25,000 | 550,000 | 50,000 | |||||||||
Cash
value of life insurance
|
7,702,656 | 7,434,573 | 7,161,403 | |||||||||
Other assets | 2,714,728 | 924,650 | 758,400 | |||||||||
Total
assets
|
$ | 353,396,697 | $ | 332,502,215 | $ | 307,273,868 | ||||||
Liabilities
and Stockholders' Equity
|
||||||||||||
Liabilites: | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing
|
$ | 67,807,699 | $ | 63,538,759 | $ | 68,760,373 | ||||||
Interest-bearing
|
226,550,138 | 206,228,839 | 184,156,393 | |||||||||
Total
deposits
|
294,357,837 | 269,767,598 | 252,916,766 | |||||||||
Short-term
borrowings
|
81,290 | 629,855 | 502,529 | |||||||||
Long-term
borrowings
|
27,033,711 | 27,071,712 | 17,107,135 | |||||||||
Junior
subordinated debentures owed to unconsolidated
|
||||||||||||
subsidiary
trust
|
5,155,000 | 5,155,000 | 5,155,000 | |||||||||
Dividends
payable
|
230,285 | 385,794 | 385,010 | |||||||||
Accrued
interest payable on deposits
|
112,599 | 139,579 | 134,274 | |||||||||
Accrued
interest payable on junior subordinated debentures
|
171,518 | 171,518 | 171,518 | |||||||||
Other
liabilities
|
1,105,335 | 1,272,907 | 1,165,482 | |||||||||
Total
liabilities
|
328,247,575 | 304,593,963 | 277,537,714 | |||||||||
Commitments
and contingencies
|
||||||||||||
Stockholders'
equity:
|
||||||||||||
Common
stock, par value $1, authorized 15,000,000 shares;
|
||||||||||||
issued
and outstanding 2009
2,683,015 shares;
|
||||||||||||
2008
2,967,727 shares; 2007 2,484,465 shares;
|
2,683,015 | 2,967,727 | 2,498,465 | |||||||||
Surplus | 9,190,911 | 11,568,241 | 11,921,129 | |||||||||
Retained
earnings
|
14,311,508 | 14,129,637 | 15,750,156 | |||||||||
Accumulated
other comprehensive loss, net of tax
|
(1,036,312 | ) | (757,353 | ) | (433,596 | ) | ||||||
Total
stockholders' equity
|
25,149,122 | 27,908,252 | 29,736,154 | |||||||||
Total
liabilities and stockholders' equity
|
$ | 353,396,697 | $ | 332,502,215 | $ | 307,273,868 |
Glen
Burnie Bancorp and Subsidiaries
|
||||||||||||
Consolidated
Statements of Income
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
Interest
income on:
|
||||||||||||
Loans,
including fees
|
$ | 15,248,717 | $ | 14,456,017 | $ | 13,326,693 | ||||||
U.S.
Government agency securities
|
1,854,201 | 1,962,553 | 2,553,527 | |||||||||
State
and municipal securities
|
1,308,116 | 1,410,676 | 1,451,540 | |||||||||
Corporate
trust preferred securities
|
189,012 | 192,749 | 250,526 | |||||||||
Federal
funds sold
|
12,428 | 5,034 | 139,075 | |||||||||
Other
|
31,823 | 149,007 | 115,895 | |||||||||
Total
interest income
|
18,644,297 | 18,176,036 | 17,837,256 | |||||||||
Interest
expense on:
|
||||||||||||
Deposits
|
4,937,282 | 4,780,185 | 4,824,425 | |||||||||
Short-term
borrowings
|
49 | 50,567 | 119,101 | |||||||||
Long-term
borrowings
|
1,058,749 | 877,101 | 481,092 | |||||||||
Junior
subordinated debentures
|
546,430 | 546,180 | 546,430 | |||||||||
Total
interest expense
|
6,542,510 | 6,254,033 | 5,971,048 | |||||||||
Net
interest income
|
12,101,787 | 11,922,003 | 11,866,208 | |||||||||
Provision
for credit losses
|
2,442,976 | 1,145,649 | 50,000 | |||||||||
Net
interest income after provision for credit losses
|
9,658,811 | 10,776,354 | 11,816,208 | |||||||||
Other
income:
|
||||||||||||
Service
charges on deposit accounts
|
693,725 | 737,070 | 814,392 | |||||||||
Other
fees and commissions
|
817,559 | 849,417 | 953,873 | |||||||||
Gains
on investment securities, net
|
585,882 | 190,930 | 120,079 | |||||||||
Income
on life insurance
|
268,083 | 273,170 | 268,948 | |||||||||
Total
other income
|
2,365,249 | 2,050,587 | 2,157,292 | |||||||||
Other
expenses:
|
||||||||||||
Salaries
and wages
|
4,792,480 | 4,694,461 | 4,623,067 | |||||||||
Employee
benefits
|
1,503,848 | 1,525,023 | 1,702,535 | |||||||||
Occupancy
|
871,081 | 903,976 | 886,345 | |||||||||
Furniture
and equipment
|
761,462 | 754,191 | 844,147 | |||||||||
Impairment
loss on investment securities
|
76,779 | 2,816,000 | - | |||||||||
Other
expenses
|
2,989,201 | 2,408,690 | 2,376,925 | |||||||||
Total
other expenses
|
10,994,851 | 13,102,341 | 10,433,019 | |||||||||
Income
(loss) before income taxes (benefits)
|
1,029,209 | (275,400 | ) | 3,540,481 | ||||||||
Federal
and state income taxes (benefits)
|
(233,253 | ) | (679,362 | ) | 758,340 | |||||||
Net
income
|
$ | 1,262,462 | $ | 403,962 | $ | 2,782,141 | ||||||
Basic
and diluted earnings per share of common stock
|
$ | 0.46 | $ | 0.14 | $ | 0.93 |
Glen
Burnie Bancorp and Subsidiaries
|
||||||||||||
Consolidated
Statements of Comprehensive Income
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
Net
income
|
$ | 1,262,462 | $ | 403,962 | $ | 2,782,141 | ||||||
Other
comprehensive loss, net of tax
|
||||||||||||
Unrealized
holding gains (losses) arising during the
|
||||||||||||
period
(net of deferred taxes (benefits) 2009
$18,260;
|
||||||||||||
2008
($1,264,081); 2007 ($23,422))
|
27,648 | (1,913,998 | ) | (37,231 | ) | |||||||
Reclassification
adjustment for impairment loss included
|
||||||||||||
in
net income (net of deferred tax benefits 2009 $30,539;
|
||||||||||||
2008 $1,110,771)
|
46,240 | 1,705,229 | - | |||||||||
Reclassification
adjustment for gains included in net
|
||||||||||||
income
(net of deferred taxes 2009
$233,034;
|
||||||||||||
2008
$75,942; 2007 $50,237)
|
(352,847 | ) | (114,988 | ) | (79,842 | ) | ||||||
Total
other comprehensive loss
|
(278,959 | ) | (323,757 | ) | (117,073 | ) | ||||||
Comprehensive
income
|
$ | 983,503 | $ | 80,205 | $ | 2,665,068 |
Glen
Burnie Bancorp and Subsidiaries
|
||||||||||||||||||||||||
Consolidated
Statements of Changes in Stockholders' Equity
|
||||||||||||||||||||||||
Years
Ended December 31, 2009, 2008, and 2007
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||||||
Common
Stock
|
Retained
|
Comprehensive
|
Stockholders'
|
|||||||||||||||||||||
Shares
|
Par
Value
|
Surplus
|
Earnings
|
Loss
|
Equity
|
|||||||||||||||||||
Balances,
December 31, 2006
|
2,484,633 | $ | 2,484,633 | $ | 11,719,907 | $ | 14,312,496 | $ | (316,523 | ) | $ | 28,200,513 | ||||||||||||
Net
income
|
- | - | - | 2,782,141 | - | 2,782,141 | ||||||||||||||||||
Cash
dividends, $.45 per share
|
- | - | - | (1,344,481 | ) | - | (1,344,481 | ) | ||||||||||||||||
Dividends
reinvested under dividend
|
||||||||||||||||||||||||
reinvestment
plan
|
12,791 | 12,791 | 187,668 | - | - | 200,459 | ||||||||||||||||||
Shares
issued under employee stock
|
||||||||||||||||||||||||
purchase
plan
|
1,041 | 1,041 | 13,554 | - | - | 14,595 | ||||||||||||||||||
Other
comprehensive loss, net of tax
|
- | - | - | - | (117,073 | ) | (117,073 | ) | ||||||||||||||||
Balances,
December 31, 2007
|
2,498,465 | 2,498,465 | 11,921,129 | 15,750,156 | (433,596 | ) | 29,736,154 | |||||||||||||||||
Net
income
|
- | - | - | 403,962 | - | 403,962 | ||||||||||||||||||
Cummulative
effect of adoption
|
||||||||||||||||||||||||
of
EITF 06-04
|
- | - | - | (179,794 | ) | - | (179,794 | ) | ||||||||||||||||
Shares
repurchased and retired
|
(50,300 | ) | (50,300 | ) | (526,939 | ) | - | - | (577,239 | ) | ||||||||||||||
Cash
dividends, $.45 per share
|
- | - | - | (1,345,128 | ) | - | (1,345,128 | ) | ||||||||||||||||
Dividends
reinvested under dividend
|
||||||||||||||||||||||||
reinvestment
plan
|
20,003 | 20,003 | 174,051 | - | - | 194,054 | ||||||||||||||||||
Stock
split effected in form of 20%
|
||||||||||||||||||||||||
stock
dividend
|
499,559 | 499,559 | - | (499,559 | ) | - | - | |||||||||||||||||
Other
comprehensive loss, net of tax
|
- | - | - | - | (323,757 | ) | (323,757 | ) | ||||||||||||||||
Balances,
December 31, 2008
|
2,967,727 | 2,967,727 | 11,568,241 | 14,129,637 | (757,353 | ) | 27,908,252 | |||||||||||||||||
Net
income
|
- | - | - | 1,262,462 | - | 1,262,462 | ||||||||||||||||||
Shares
repurchased and retired
|
(305,083 | ) | (305,083 | ) | (2,530,626 | ) | - | - | (2,835,709 | ) | ||||||||||||||
Cash
dividends, $.45 per share
|
- | - | - | (1,080,591 | ) | - | (1,080,591 | ) | ||||||||||||||||
Dividends
reinvested under dividend
|
||||||||||||||||||||||||
reinvestment
plan
|
20,371 | 20,371 | 153,296 | - | - | 173,667 | ||||||||||||||||||
Other
comprehensive loss, net of tax
|
- | - | - | - | (278,959 | ) | (278,959 | ) | ||||||||||||||||
Balances,
December 31, 2009
|
2,683,015 | $ | 2,683,015 | $ | 9,190,911 | $ | 14,311,508 | $ | (1,036,312 | ) | $ | 25,149,122 |
Glen
Burnie Bancorp and Subsidiaries
|
||||||||||||
Consolidated
Statements of Cash Flows
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income
|
$ | 1,262,462 | $ | 403,962 | $ | 2,782,141 | ||||||
Adjustments
to reconcile net income to net
|
||||||||||||
cash
provided by operating activities
|
||||||||||||
Depreciation,
amortization, and accretion
|
652,780 | 421,229 | 496,172 | |||||||||
Provision
for credit losses
|
2,442,976 | 1,145,649 | 50,000 | |||||||||
Deferred
income (benefits) taxes, net
|
(658,719 | ) | (1,605,603 | ) | (87,720 | ) | ||||||
Gains
on disposals of assets, net
|
(569,428 | ) | (173,393 | ) | (119,652 | ) | ||||||
Impairment
losses on investment securities
|
76,779 | 2,816,000 | - | |||||||||
Income
on investment in life insurance
|
(268,083 | ) | (273,170 | ) | (268,948 | ) | ||||||
Changes
in assets and liabilities:
|
||||||||||||
Decrease (increase) in accrued interest receivable
|
53,600 | (171,752 | ) | 118,793 | ||||||||
(Increase)
decrease in other assets
|
(1,838,514 | ) | (118,962 | ) | 106,163 | |||||||
(Decrease)
increase in accrued interest payable
|
(26,980 | ) | 5,305 | (11,368 | ) | |||||||
Decrease
in other liabilities
|
(167,572 | ) | (72,369 | ) | (21,890 | ) | ||||||
Net
cash provided by operating activities
|
959,301 | 2,376,896 | 3,043,691 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Maturities
of available for sale mortgage-backed securities
|
7,612,135 | 4,402,208 | 7,301,634 | |||||||||
Maturities
of other available for sale investment securities
|
- | - | 300,000 | |||||||||
Sales
of held to maturity debt securities
|
- | 684,100 | - | |||||||||
Sales
of available for sale debt securities
|
24,920,635 | 25,977,280 | 17,889,342 | |||||||||
Purchases
of available for sale mortgage-backed securities
|
(54,787,147 | ) | (981,811 | ) | - | |||||||
Purchases
of other available for sale investment securities
|
(4,456,293 | ) | (13,318,481 | ) | (6,907,162 | ) | ||||||
Purchase
of FHLB stock
|
(90,700 | ) | (385,700 | ) | (453,900 | ) | ||||||
Increase
in loans, net
|
(3,193,217 | ) | (36,525,138 | ) | (6,466,528 | ) | ||||||
Proceeds
from sales of other real estate
|
548,994 | 50,000 | - | |||||||||
Purchases
of other real estate
|
(25,000 | ) | (550,000 | ) | - | |||||||
Purchases
of premises and equipment
|
(1,398,320 | ) | (501,717 | ) | (128,452 | ) | ||||||
Net
cash (used) provided by investing activities
|
(30,868,913 | ) | (21,149,259 | ) | 11,534,934 | |||||||
Cash
flows from financing activities:
|
||||||||||||
Increase
(decrease) in noninterest-bearing deposits, NOW
|
||||||||||||
accounts,
money market accounts, and savings accounts, net
|
4,268,940 | (5,221,614 | ) | (5,968,925 | ) | |||||||
Increase
(decrease) in time deposits, net
|
20,321,299 | 22,072,446 | (15,947,766 | ) | ||||||||
(Decrease)
increase in short-term borrowings
|
(548,565 | ) | 127,326 | (42,820 | ) | |||||||
Proceeds
from long-term borrowings
|
- | 10,000,000 | 10,000,000 | |||||||||
Repayments
of long-term borrowings
|
(38,001 | ) | (35,423 | ) | (33,035 | ) | ||||||
Cash
dividends paid
|
(1,236,100 | ) | (1,344,344 | ) | (1,326,051 | ) | ||||||
Common
stock dividends reinvested
|
173,667 | 194,054 | 200,459 | |||||||||
Repurchase
and retirement of common stock
|
(2,835,709 | ) | (577,239 | ) | - | |||||||
Issuance
of common stock
|
- | - | 14,595 | |||||||||
Net
cash provided (used) by financing activities
|
20,105,531 | 25,215,206 | (13,103,543 | ) | ||||||||
(Decrease)
increase in cash and cash equivalents
|
(9,804,081 | ) | 6,442,843 | 1,475,082 | ||||||||
Cash
and cash equivalents, beginning of year
|
21,237,903 | 14,795,060 | 13,319,978 | |||||||||
Cash
and cash equivalents, end of year
|
$ | 11,433,822 | $ | 21,237,903 | $ | 14,795,060 |
Glen
Burnie Bancorp and Subsidiaries
|
||||||||||||
Consolidated
Statements of Cash Flows
|
||||||||||||
(Continued)
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
Supplementary
Cash Flow Information:
|
||||||||||||
Interest
paid
|
$ | 6,569,490 | $ | 6,248,728 | $ | 5,982,416 | ||||||
Income
taxes paid
|
1,125,000 | 600,000 | 886,156 | |||||||||
Total
increase in unrealized depreciation
|
||||||||||||
on
available for sale securities
|
(463,192 | ) | (551,125 | ) | (190,732 | ) |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
December 31, 2009
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available
for sale:
|
||||||||||||||||
U.S.
Government agencies
|
$ | 3,180,360 | $ | 14,060 | $ | 135,330 | $ | 3,059,090 | ||||||||
State
and municipal
|
30,073,170 | 335,146 | 664,647 | 29,743,669 | ||||||||||||
Corporate
trust preferred
|
2,080,282 | 33,521 | 1,102,874 | 1,010,929 | ||||||||||||
Mortgage-backed
|
50,849,527 | 368,642 | 569,252 | 50,648,917 | ||||||||||||
$ | 86,183,339 | $ | 751,369 | $ | 2,472,103 | $ | 84,462,605 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
December 31, 2008
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Available
for sale:
|
||||||||||||||||
U.S.
Government agencies
|
$ | 8,686,877 | $ | 191,455 | $ | 140,280 | $ | 8,738,052 | ||||||||
State
and municipal
|
31,466,012 | 235,128 | 979,935 | 30,721,205 | ||||||||||||
Corporate
trust preferred
|
2,168,928 | - | 971,426 | 1,197,502 | ||||||||||||
Mortgage-backed
|
16,884,368 | 413,682 | 6,164 | 17,291,886 | ||||||||||||
$ | 59,206,185 | $ | 840,265 | $ | 2,097,805 | $ | 57,948,645 |
December 31, 2007
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Available
for sale:
|
||||||||||||||||
U.S.
Government agencies
|
$ | 8,489,126 | $ | 44,593 | $ | 761,906 | $ | 7,771,813 | ||||||||
State
and municipal
|
31,627,159 | 272,449 | 164,764 | 31,734,844 | ||||||||||||
Corporate
trust preferred
|
2,167,271 | 253,283 | - | 2,420,554 | ||||||||||||
Mortgage-backed
|
35,605,038 | 110,145 | 460,213 | 35,254,970 | ||||||||||||
$ | 77,888,594 | $ | 680,470 | $ | 1,386,883 | $ | 77,182,181 | |||||||||
Held
to maturity:
|
||||||||||||||||
State
and municipal
|
$ | 683,832 | $ | 42,361 | $ | - | $ | 726,193 | ||||||||
$ | 683,832 | $ | 42,361 | $ | - | $ | 726,193 |
Less
than 12 months
|
12
months or more
|
Total
|
|||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||
Obligations
of U.S. Government agencies
|
$ | 1,076,590 | $ | 103,770 | $ | 968,440 | $ | 31,560 | $ | 2,045,030 | $ | 135,330 | |||||||
State
and Municipal
|
6,126,763 | 205,869 | 3,328,682 | 458,778 | 9,455,445 | 664,647 | |||||||||||||
Corporate
trust preferred
|
- | - | 25,091 | 1,102,874 | 25,091 | 1,102,874 | |||||||||||||
Mortgaged-backed
|
31,403,867 | 569,252 | - | - | 31,403,867 | 569,252 | |||||||||||||
$ | 38,607,220 | $ | 878,891 | $ | 4,322,213 | $ | 1,593,212 | $ | 42,929,433 | $ | 2,472,103 |
Available
for Sale
|
Held
to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
December 31, 2009
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||
Due
within one year
|
$ | 649,998 | $ | 650,982 | ||||||||||||
Due
over one to five years
|
1,825,146 | 1,850,726 | ||||||||||||||
Due
over five to ten years
|
565,946 | 571,123 | ||||||||||||||
Due
over ten years
|
32,292,722 | 30,740,857 | ||||||||||||||
Mortgage-backed,
due in monthly installments
|
50,849,527 | 50,648,917 | ||||||||||||||
$ | 86,183,339 | $ | 84,462,605 | |||||||||||||
December 31, 2008
|
||||||||||||||||
Due
within one year
|
$ | - | $ | - | ||||||||||||
Due
over one to five years
|
4,577,077 | 4,560,487 | ||||||||||||||
Due
over five to ten years
|
5,563,224 | 5,685,637 | ||||||||||||||
Due
over ten years
|
32,181,516 | 30,410,635 | ||||||||||||||
Mortgage-backed,
due in monthly installments
|
16,884,368 | 17,291,886 | ||||||||||||||
$ | 59,206,185 | $ | 57,948,645 | |||||||||||||
December 31, 2007
|
||||||||||||||||
Due
within one year
|
$ | 1,000,000 | $ | 996,094 | $ | - | $ | - | ||||||||
Due
over one to five years
|
9,638,992 | 9,635,177 | - | - | ||||||||||||
Due
over five to ten years
|
4,089,402 | 4,068,131 | - | - | ||||||||||||
Due
over ten years
|
27,555,162 | 27,227,809 | 683,832 | 726,193 | ||||||||||||
Mortgage-backed,
due in monthly installments
|
35,605,038 | 35,254,970 | - | - | ||||||||||||
$ | 77,888,594 | $ | 77,182,181 | $ | 683,832 | $ | 726,193 |
2009
|
2008
|
2007
|
||||||||||
Mortgage:
|
||||||||||||
Residential
|
$ | 95,683,441 | $ | 87,707,878 | $ | 76,780,857 | ||||||
Commercial
|
79,845,030 | 76,152,837 | 47,842,942 | |||||||||
Construction
and land development
|
1,742,515 | 6,589,673 | 5,876,285 | |||||||||
Demand
and time
|
9,800,625 | 6,974,607 | 5,184,349 | |||||||||
Installment
|
53,222,692 | 60,593,752 | 66,490,020 | |||||||||
240,294,303 | 238,018,747 | 202,174,453 | ||||||||||
Unearned
income on loans
|
(838,913 | ) | (864,436 | ) | (816,830 | ) | ||||||
239,455,390 | 237,154,311 | 201,357,623 | ||||||||||
Allowance
for credit losses
|
(3,572,528 | ) | (2,021,690 | ) | (1,604,491 | ) | ||||||
$ | 235,882,862 | $ | 235,132,621 | $ | 199,753,132 |
2009
|
2008
|
2007
|
||||||||||
Balance,
beginning of year
|
$ | 2,021,690 | $ | 1,604,491 | $ | 1,839,094 | ||||||
Provision
for credit losses
|
2,442,976 | 1,145,649 | 50,000 | |||||||||
Recoveries
|
395,584 | 352,933 | 305,841 | |||||||||
Loans
charged off
|
(1,287,722 | ) | (1,081,383 | ) | (590,444 | ) | ||||||
Balance,
end of year
|
$ | 3,572,528 | $ | 2,021,690 | $ | 1,604,491 |
2009
|
2008
|
2007
|
||||||||||
Loans
classified as impaired with a valuation allowance
|
$ | 9,513,637 | $ | 1,387,043 | $ | 212,416 | ||||||
Allowance
for credit losses on impaired loans
|
2,187,699 | 629,036 | 159,312 | |||||||||
Average
balance of impaired loans
|
10,111,516 | 1,458,245 | 95,605 | |||||||||
Following
is a summary of cash receipts on impaired loans and how they were
applied:
|
||||||||||||
Cash
receipts applied to reduce principal balance
|
$ | 2,604,832 | $ | 131,730 | $ | - | ||||||
Cash
receipts recognized as interest income
|
380,190 | 41,062 | - | |||||||||
Total
cash receipts
|
$ | 2,985,022 | $ | 172,792 | $ | - |
Useful
|
|||||||||||||
lives
|
2009
|
2008
|
2007
|
||||||||||
Land
|
$ | 684,977 | $ | 684,977 | $ | 684,977 | |||||||
Buildings
|
5-50
years
|
5,864,145 | 4,796,309 | 4,738,733 | |||||||||
Equipment
and fixtures
|
5-30
years
|
5,093,759 | 5,056,015 | 5,450,210 | |||||||||
Construction
in progress
|
322 | 121,973 | 60,226 | ||||||||||
11,643,203 | 10,659,274 | 10,934,146 | |||||||||||
Accumulated
depreciation
|
(7,522,606 | ) | (7,559,826 | ) | (7,846,238 | ) | |||||||
$ | 4,120,597 | $ | 3,099,448 | $ | 3,087,908 |
2009
|
2008
|
2007
|
||||||||||
Notes
payable - U.S. Treasury
|
$ | 81,290 | $ | 629,855 | $ | 502,529 |
2009
|
2008
|
2007
|
||||||||||
Federal
Home Loan Bank of Atlanta, convertible advances
|
$ | 27,000,000 | $ | 27,000,000 | $ | 17,000,000 | ||||||
Mortgage
payable-individual, interest at 7%, payments of $3,483, including
principal and interest, due monthly through October 2010, secured
by real estate
|
33,711 | 71,712 | 107,135 | |||||||||
$ | 27,033,711 | $ | 27,071,712 | $ | 17,107,135 |
2009
|
||||
2010
|
$ | 7,034,000 | ||
2015
and thereafter
|
20,000,000 | |||
$ | 27,034,000 |
2009
|
2008
|
2007
|
||||||||||
NOW
and SuperNOW
|
$ | 22,353,053 | $ | 21,079,314 | $ | 23,154,540 | ||||||
Money
Market
|
15,284,223 | 12,764,167 | 12,948,342 | |||||||||
Savings
|
48,378,319 | 45,801,719 | 47,381,613 | |||||||||
Certificates
of Deposit, $100,000 or more
|
31,576,905 | 27,882,777 | 20,654,230 | |||||||||
Other
time deposits
|
108,957,638 | 98,700,862 | 80,017,668 | |||||||||
$ | 226,550,138 | $ | 206,228,839 | $ | 184,156,393 |
2009
|
2008
|
2007
|
||||||||||
NOW
and SuperNOW
|
$ | 27,702 | $ | 30,618 | $ | 47,885 | ||||||
Money
Market
|
57,280 | 62,475 | 103,472 | |||||||||
Savings
|
134,607 | 153,301 | 214,998 | |||||||||
Certificates
of Deposit, $100,000 or more
|
1,063,174 | 976,446 | 915,889 | |||||||||
Other
time deposits
|
3,654,519 | 3,557,345 | 3,542,181 | |||||||||
$ | 4,937,282 | $ | 4,780,185 | $ | 4,824,425 |
2009
|
||||
2010
|
$ | 84,136,000 | ||
2011
|
25,662,000 | |||
2012
|
7,061,000 | |||
2013
|
15,312,000 | |||
2014
|
7,123,000 | |||
2015
and thereafter
|
1,241,000 | |||
$ | 140,535,000 |
2009
|
2008
|
2007
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | 268,693 | $ | 655,129 | $ | 646,449 | ||||||
State
|
156,773 | 271,112 | 199,611 | |||||||||
Total
current
|
425,466 | 926,241 | 846,060 | |||||||||
Deferred
income taxes (benefits):
|
||||||||||||
Federal
|
(509,545 | ) | (1,275,873 | ) | (80,277 | ) | ||||||
State
|
(149,174 | ) | (329,730 | ) | (7,443 | ) | ||||||
Total
deferred
|
(658,719 | ) | (1,605,603 | ) | (87,720 | ) | ||||||
Income
tax (benefit) expense
|
$ | (233,253 | ) | $ | (679,362 | ) | $ | 758,340 |
2009
|
2008
|
2007
|
||||||||||
Income
(loss) before income tax (benefit) expense
|
$ | 1,029,209 | $ | (275,400 | ) | $ | 3,540,481 | |||||
Taxes
computed at Federal income tax rate
|
$ | 349,925 | $ | (93,636 | ) | $ | 1,203,764 | |||||
Increase
(decrease) resulting from:
|
||||||||||||
Tax-exempt
income
|
(502,488 | ) | (547,038 | ) | (581,208 | ) | ||||||
State
income taxes, net of Federal income tax benefit
|
(80,690 | ) | (38,688 | ) | 126,832 | |||||||
Other
|
- | - | 8,952 | |||||||||
Income
tax (benefit) expense
|
$ | (233,253 | ) | $ | (679,362 | ) | $ | 758,340 |
2009
|
2008
|
2007
|
||||||||||
Deferred
income tax benefits:
|
||||||||||||
Accrued
deferred compensation
|
$ | 90,594 | $ | 82,049 | $ | - | ||||||
Impairment
loss on investment securities
|
1,072,662 | 1,110,771 | - | |||||||||
Allowance
for credit losses
|
1,206,604 | 563,737 | 80,300 | |||||||||
Nonaccrual
interest
|
11,849 | - | - | |||||||||
Alternative
minimum tax credits
|
- | 66,371 | 94,642 | |||||||||
Net
unrealized depreciation on investment securities available for
sale
|
684,422 | 500,186 | 272,816 | |||||||||
Accumulated
depreciation
|
35,692 | |||||||||||
Reserve
for unfunded commitments
|
78,890 | 78,890 | 78,890 | |||||||||
Total
deferred income tax benefits
|
3,180,713 | 2,402,004 | 526,648 | |||||||||
Deferred
income tax liabilities:
|
||||||||||||
Accumulated
depreciation
|
- | 41,113 | 15,769 | |||||||||
Accumulated
securities discount accretion
|
51,278 | 74,408 | 57,367 | |||||||||
Total
deferred income tax liabilities
|
51,278 | 115,521 | 73,136 | |||||||||
Net
deferred income tax benefits
|
$ | 3,129,435 | $ | 2,286,483 | $ | 453,512 |
2009
|
2008
|
2007
|
||||||||||
Professional
services
|
$ | 489,485 | $ | 485,685 | $ | 479,877 | ||||||
Stationery,
printing and supplies
|
189,446 | 214,815 | 225,709 | |||||||||
Postage
and delivery
|
162,782 | 187,017 | 222,642 | |||||||||
FDIC
assessment
|
549,716 | 35,544 | 31,605 | |||||||||
Directors
fees and expenses
|
200,765 | 198,939 | 210,097 | |||||||||
Marketing
|
246,947 | 255,921 | 236,917 | |||||||||
Data
processing
|
82,743 | 100,562 | 109,797 | |||||||||
Correspondent
bank services
|
87,249 | 60,706 | 95,407 | |||||||||
Telephone
|
173,550 | 160,242 | 157,811 | |||||||||
Liability
insurance
|
67,264 | 71,497 | 67,959 | |||||||||
Losses
and expenses on real estate owned (OREO)
|
64,790 | 8,343 | 2,905 | |||||||||
Other
ATM expense
|
155,818 | 232,670 | 242,429 | |||||||||
Other
|
518,646 | 396,749 | 293,770 | |||||||||
$ | 2,989,201 | $ | 2,408,690 | $ | 2,376,925 |
2009
|
2008
|
2007
|
||||||||||
Loan
commitments:
|
||||||||||||
Construction
and land development
|
$ | 1,155,200 | $ | 400,000 | $ | - | ||||||
Other
mortgage loans
|
2,270,000 | 2,590,000 | 685,000 | |||||||||
$ | 3,425,200 | $ | 2,990,000 | $ | 685,000 | |||||||
Unused
lines of credit:
|
||||||||||||
Home-equity
lines
|
$ | 6,404,113 | $ | 6,395,182 | $ | 7,507,778 | ||||||
Commercial
lines
|
11,335,335 | 13,380,292 | 18,335,771 | |||||||||
Unsecured
consumer lines
|
805,479 | 785,487 | 815,960 | |||||||||
$ | 18,544,927 | $ | 20,560,961 | $ | 26,659,509 | |||||||
Letters
of credit:
|
$ | 79,250 | $ | 196,530 | $ | 197,000 |
Grant
|
||||||||
Shares
|
Price
|
|||||||
Outstanding
December 31, 2006
|
- | |||||||
Granted
on August 9, 2007, expiring December 10, 2007
|
3,126 | $ | 14.02 | |||||
Exercised
|
(1,041 | ) | ||||||
Expired
|
(2,085 | ) | $ | 14.02 | ||||
Outstanding
December 31, 2007
|
- |
To
Be Well Capitalized
|
||||||||||||||||||||||||
For
Capital
|
Under
Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As
of December 31, 2009
|
||||||||||||||||||||||||
Total
Capital
|
||||||||||||||||||||||||
(to
Risk Weighted Assets)
|
||||||||||||||||||||||||
Company
|
$ | 34,048,000 | 14.5 | % | $ | 18,798,000 | 8.0 | % | N/A | |||||||||||||||
Bank
|
33,745,000 | 14.4 | % | 18,786,000 | 8.0 | % | $ | 23,483,000 | 10.0 | % | ||||||||||||||
Tier
I Capital
|
||||||||||||||||||||||||
(to
Risk Weighted Assets)
|
||||||||||||||||||||||||
Company
|
31,100,000 | 13.2 | % | 9,403,000 | 4.0 | % | N/A | |||||||||||||||||
Bank
|
30,799,000 | 13.1 | % | 9,390,000 | 4.0 | % | 14,085,000 | 6.0 | % | |||||||||||||||
Tier
I Capital
|
||||||||||||||||||||||||
(to
Average Assets)
|
||||||||||||||||||||||||
Company
|
31,100,000 | 8.9 | % | 14,041,000 | 4.0 | % | N/A | |||||||||||||||||
Bank
|
30,799,000 | 8.7 | % | 14,193,000 | 4.0 | % | 14,741,000 | 5.0 | % | |||||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||||||
Total
Capital
|
||||||||||||||||||||||||
(to
Risk Weighted Assets)
|
||||||||||||||||||||||||
Company
|
$ | 35,687,000 | 14.9 | % | $ | 19,122,000 | 8.0 | % | N/A | |||||||||||||||
Bank
|
35,707,000 | 15.0 | % | 19,107,000 | 8.0 | % | $ | 23,884,000 | 10.0 | % | ||||||||||||||
Tier
I Capital
|
||||||||||||||||||||||||
(to
Risk Weighted Assets)
|
||||||||||||||||||||||||
Company
|
33,665,000 | 14.1 | % | 9,564,000 | 4.0 | % | N/A | |||||||||||||||||
Bank
|
33,485,000 | 14.0 | % | 9,553,000 | 4.0 | % | 14,330,000 | 6.0 | % | |||||||||||||||
Tier
I Capital
|
||||||||||||||||||||||||
(to
Average Assets)
|
||||||||||||||||||||||||
Company
|
33,665,000 | 10.5 | % | 12,825,000 | 4.0 | % | N/A | |||||||||||||||||
Bank
|
33,485,000 | 10.2 | % | 13,196,000 | 4.0 | % | 16,495,000 | 5.0 | % |
To
Be Well Capitalized
|
||||||||||||||||||||||||
For
Capital
|
Under
Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy
Purposes
|
Action
Provisions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As
of December 31, 2007
|
||||||||||||||||||||||||
Total
Capital
|
||||||||||||||||||||||||
(to
Risk Weighted Assets)
|
||||||||||||||||||||||||
Company
|
$ | 36,774,000 | 17.6 | % | $ | 16,744,000 | 8.0 | % | N/A | |||||||||||||||
Bank
|
36,592,000 | 17.5 | % | 16,728,000 | 8.0 | % | $ | 20,910,000 | 10.0 | % | ||||||||||||||
Tier
I Capital
|
||||||||||||||||||||||||
(to
Risk Weighted Assets)
|
||||||||||||||||||||||||
Company
|
35,170,000 | 16.8 | % | 8,374,000 | 4.0 | % | N/A | |||||||||||||||||
Bank
|
34,788,000 | 16.6 | % | 8,363,000 | 4.0 | % | 12,544,000 | 6.0 | % | |||||||||||||||
Tier
I Capital
|
||||||||||||||||||||||||
(to
Average Assets)
|
||||||||||||||||||||||||
Company
|
35,170,000 | 11.3 | % | 12,494,000 | 4.0 | % | N/A | |||||||||||||||||
Bank
|
34,788,000 | 11.3 | % | 12,271,000 | 4.0 | % | 15,339,000 | 5.0 | % |
2009
|
2008
|
2007
|
||||||||||
Basic:
|
||||||||||||
Net
income
|
$ | 1,262,462 | $ | 403,962 | $ | 2,782,141 | ||||||
Weighted
average common shares outstanding
|
2,734,524 | 2,981,124 | 2,988,796 | |||||||||
Basic
net income per share
|
$ | 0.46 | $ | 0.14 | $ | 0.93 |
2009
|
2008
|
2007
|
||||||||||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||||||||
Amount
|
Value
|
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||||||||
Financial
assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
$ | 6,993,811 | $ | 6,993,811 | $ | 6,960,377 | $ | 6,960,377 | $ | 8,220,582 | $ | 8,220,582 | ||||||||||||
Interest-bearing
deposits in other financial institutions
|
3,748,387 | 3,748,387 | 7,883,816 | 7,883,816 | 5,847,562 | 5,847,562 | ||||||||||||||||||
Federal
funds sold
|
691,624 | 691,624 | 6,393,710 | 6,393,710 | 726,916 | 726,916 | ||||||||||||||||||
Investment
securities available for sale
|
84,462,605 | 84,462,605 | 57,948,645 | 57,948,645 | 77,182,181 | 77,182,181 | ||||||||||||||||||
Investment
securities held to maturity
|
- | - | - | - | 683,832 | 726,193 | ||||||||||||||||||
Federal
Home Loan Bank Stock
|
1,858,300 | 1,858,300 | 1,767,600 | 1,767,600 | 1,381,900 | 1,381,900 | ||||||||||||||||||
Maryland
Financial Bank Stock
|
100,000 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||||||
Common
stock-Statutory Trust I
|
155,000 | 155,000 | 155,000 | 155,000 | 155,000 | 155,000 | ||||||||||||||||||
Ground
rents
|
184,900 | 184,900 | 184,900 | 184,900 | 202,900 | 202,900 | ||||||||||||||||||
Loans,
less allowance for credit losses
|
235,882,862 | 239,915,000 | 235,132,621 | 239,446,000 | 199,753,132 | 203,326,000 | ||||||||||||||||||
Accrued
interest receivable
|
1,626,792 | 1,626,792 | 1,680,392 | 1,680,392 | 1,508,640 | 1,508,640 | ||||||||||||||||||
Financial
liabilities:
|
||||||||||||||||||||||||
Deposits
|
294,357,837 | 267,358,000 | 269,767,598 | 272,091,000 | 252,916,766 | 251,088,000 | ||||||||||||||||||
Short-term
borrowings
|
81,290 | 81,290 | 629,855 | 629,855 | 502,529 | 502,529 | ||||||||||||||||||
Long-term
borrowings
|
27,033,711 | 25,979,000 | 27,071,712 | 27,162,000 | 17,107,135 | 16,982,135 | ||||||||||||||||||
Dividends
payable
|
230,285 | 230,285 | 385,794 | 385,794 | 385,010 | 385,010 | ||||||||||||||||||
Accrued
interest payable
|
112,599 | 112,599 | 139,579 | 139,579 | 134,274 | 134,274 | ||||||||||||||||||
Accrued
interest payable on junior subordinated debentures
|
171,518 | 171,518 | 171,518 | 171,518 | 171,518 | 171,518 | ||||||||||||||||||
Junior
subordinated debentures owed to unconsolidated subsidiary
trust
|
5,155,000 | 5,707,615 | 5,155,000 | 5,281,827 | 5,155,000 | 6,031,097 | ||||||||||||||||||
Unrecognized
financial instruments:
|
||||||||||||||||||||||||
Commitments
to extend credit
|
21,970,127 | 21,970,127 | 23,550,961 | 23,550,961 | 27,344,509 | 27,344,509 | ||||||||||||||||||
Standby
letters of credit
|
79,250 | 79,250 | 196,530 | 196,530 | 197,000 | 197,000 |
Fair
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Value
|
|||||||||||||
Securities
available for sale
|
$ | - | $ | 84,462,605 | $ | - | $ | 84,462,605 |
Fair
|
||||||||||||||||
Level
1
|
Level
2
|
Level
3
|
Value
|
|||||||||||||
Impaired
loans
|
$ | - | $ | - | $ | 7,325,938 | $ | 7,325,938 | ||||||||
OREO
|
- | 25,000 | - | 25,000 | ||||||||||||
$ | - | $ | 25,000 | $ | 7,325,938 | $ | 7,350,938 |
Balance
Sheets
|
||||||||||||
December
31,
|
2009
|
2008
|
2007
|
|||||||||
Assets
|
||||||||||||
Cash
|
$ | 348,515 | $ | 338,902 | $ | 532,222 | ||||||
Investment
in The Bank of Glen Burnie
|
29,848,797 | 32,727,244 | 34,354,422 | |||||||||
Investment
in GBB Properties, Inc.
|
260,184 | 261,999 | 263,787 | |||||||||
Investment
in the Glen Burnie Statutory Trust I
|
155,000 | 155,000 | 155,000 | |||||||||
Due
from subsidiaries
|
43,996 | 22,878 | 22,709 | |||||||||
Other
assets
|
49,433 | 114,541 | 119,542 | |||||||||
Total
assets
|
$ | 30,705,925 | $ | 33,620,564 | $ | 35,447,682 | ||||||
Liabilities
and Stockholders’ Equity
|
||||||||||||
Dividends
payable
|
$ | 230,285 | $ | 385,794 | $ | 385,010 | ||||||
Accrued
interest payable on borrowed funds
|
171,518 | 171,518 | 171,518 | |||||||||
Other
liabilities
|
- | - | - | |||||||||
Borrowed
funds from subsidiary
|
5,155,000 | 5,155,000 | 5,155,000 | |||||||||
Total
liabilities
|
5,556,803 | 5,712,312 | 5,711,528 | |||||||||
Stockholders’
equity:
|
||||||||||||
Common
stock
|
2,683,015 | 2,967,727 | 2,498,465 | |||||||||
Surplus
|
9,190,911 | 11,568,241 | 11,921,129 | |||||||||
Retained
earnings
|
14,311,508 | 14,129,637 | 15,750,156 | |||||||||
Accumulated
other comprehensive loss, net of benefits
|
(1,036,312 | ) | (757,353 | ) | (433,596 | ) | ||||||
Total
stockholders’ equity
|
25,149,122 | 27,908,252 | 29,736,154 | |||||||||
Total
liabilities and stockholders’ equity
|
$ | 30,705,925 | $ | 33,620,564 | $ | 35,447,682 |
Statements
of Income
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
Dividends
and distributions from subsidiaries
|
$ | 4,269,844 | $ | 1,902,239 | $ | 1,565,000 | ||||||
Other
income
|
16,430 | 16,430 | 16,430 | |||||||||
Interest
expense on junior subordinated debentures
|
(546,430 | ) | (546,180 | ) | (546,430 | ) | ||||||
Other
expenses
|
(122,096 | ) | (69,468 | ) | (62,271 | ) | ||||||
Income
before income tax benefit and equity in undistributed net income of
subsidiaries
|
3,617,748 | 1,303,021 | 972,729 | |||||||||
Income
tax benefit
|
246,018 | 226,356 | 224,002 | |||||||||
Change
in undistributed equity of subsidiaries
|
(2,601,304 | ) | (1,125,415 | ) | 1,585,410 | |||||||
Net
income
|
$ | 1,262,462 | $ | 403,962 | $ | 2,782,141 | ||||||
Statements
of Cash Flows
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income
|
$ | 1,262,462 | $ | 403,962 | $ | 2,782,141 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Decrease
in other assets
|
65,108 | 5,001 | 458 | |||||||||
(Increase)
decrease in due from subsidiaries
|
(21,118 | ) | (169 | ) | 4,111 | |||||||
Change
in undistributed equity of subsidiaries
|
2,601,304 | 1,125,415 | (1,585,410 | ) | ||||||||
Net
cash provided by operating activities
|
3,907,756 | 1,534,209 | 1,201,300 | |||||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from dividend reinvestment plan
|
173,667 | 194,054 | 200,459 | |||||||||
Proceeds
from issuance of common stock
|
- | - | 14,595 | |||||||||
Repurchase
and retirement of common stock
|
(2,835,709 | ) | (577,239 | ) | - | |||||||
Dividends
paid
|
(1,236,101 | ) | (1,344,344 | ) | (1,326,051 | ) | ||||||
Net
cash used in financing activities
|
(3,898,143 | ) | (1,727,529 | ) | (1,110,997 | ) | ||||||
Increase
(decrease) in cash
|
9,613 | (193,320 | ) | 90,303 | ||||||||
Cash,
beginning of year
|
338,902 | 532,222 | 441,919 | |||||||||
Cash,
end of year
|
$ | 348,515 | $ | 338,902 | $ | 532,222 |
2009
|
||||||||||||||||
(Dollars
in thousands,
|
Three
months ended,
|
|||||||||||||||
except
per share amounts)
|
December
31
|
September
30
|
June
30
|
March
31
|
||||||||||||
Interest
income
|
$ | 4,673 | $ | 4,749 | $ | 4,689 | $ | 4,533 | ||||||||
Interest
expense
|
1,570 | 1,649 | 1,655 | 1,668 | ||||||||||||
Net
interest income
|
3,103 | 3,100 | 3,034 | 2,865 | ||||||||||||
Provision
for credit losses
|
1,747 | 337 | 209 | 150 | ||||||||||||
Net
securities gains
|
402 | 135 | 51 | (2 | ) | |||||||||||
Income
before income taxes
|
(699 | ) | 648 | 570 | 510 | |||||||||||
Net
income
|
(210 | ) | 527 | 490 | 455 | |||||||||||
Net
income per share (basic and diluted)
|
$ | (0.08 | ) | $ | 0.20 | $ | 0.18 | $ | 0.16 | |||||||
2008
|
||||||||||||||||
(Dollars
in thousands,
|
Three
months ended,
|
|||||||||||||||
except
per share amounts)
|
December
31
|
September
30
|
June
30
|
March
31
|
||||||||||||
Interest
income
|
$ | 4,604 | $ | 4,667 | $ | 4,492 | $ | 4,413 | ||||||||
Interest
expense
|
1,661 | 1,546 | 1,499 | 1,548 | ||||||||||||
Net
interest income
|
2,943 | 3,121 | 2,993 | 2,865 | ||||||||||||
Provision
for credit losses
|
700 | 239 | 152 | 55 | ||||||||||||
Net
securities gains
|
50 | 86 | 48 | 7 | ||||||||||||
Income
before income taxes
|
272 | (1,915 | ) | 743 | 625 | |||||||||||
Net
income
|
1,382 | (2,118 | ) | 604 | 536 | |||||||||||
Net
income per share (basic and diluted)
|
$ | 0.47 | $ | (0.71 | ) | $ | 0.20 | $ | 0.18 | |||||||
2007
|
||||||||||||||||
(Dollars
in thousands,
|
Three
months ended,
|
|||||||||||||||
except
per share amounts)
|
December
31
|
September
30
|
June
30
|
March
31
|
||||||||||||
Interest
income
|
$ | 4,487 | $ | 4,476 | $ | 4,465 | $ | 4,409 | ||||||||
Interest
expense
|
1,506 | 1,441 | 1,507 | 1,517 | ||||||||||||
Net
interest income
|
2,981 | 3,035 | 2,958 | 2,892 | ||||||||||||
Provision
for credit losses
|
- | - | 20 | 30 | ||||||||||||
Net
securities gains
|
- | 115 | 4 | 1 | ||||||||||||
Income
before income taxes
|
903 | 1,049 | 873 | 715 | ||||||||||||
Net
income
|
700 | 785 | 691 | 606 | ||||||||||||
Net
income per share (basic and diluted)
|
$ | 0.23 | $ | 0.27 | $ | 0.23 | $ | 0.20 |