UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 26, 2004
GLEN BURNIE BANCORP
(Exact name of registrant as specified in its charter)
Maryland 0-24047 52-1782444
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
101 Crain Highway, S.E., Glen Burnie, Maryland 21061
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (410) 766-3300
Inapplicable
(Former Name or Former Address if Changed Since Last Report)
INFORMATION TO BE INCLUDED IN THE REPORT
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
The following exhibits are filed herewith:
Exhibit No.
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99.1 Press Release dated January 26, 2004
Item 12. Results of Operation and Financial Condition.
Reference is made to the press release issued by the Registrant on
January 26, 2004, the text of which is attached hereto as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GLEN BURNIE BANCORP
(Registrant)
Date: January 27, 2004 By: /s/ F. William Kuethe, Jr.
--------------------------------------
F. William Kuethe, Jr.
President and Chief Executive Officer
Exhibit 99.1
N E W S R E L E A S E
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January 26, 2004
FOR IMMEDIATE RELEASE
Contact: Alison Tavik
410-768-8857 (office)
410-608-5581 (cell)
adtavik@bogb.net
GLEN BURNIE BANCORP ANNOUNCES FOURTH QUARTER
AND YEAR END EARNINGS
Highlights:
o 4Q net income up 55.78%
o 2003 net income up 9.47%
o 4Q earnings per share up 51%
o 2003 earnings per share up 8.9%
o 2003 ROA 1.05%
GLEN BURNIE, MD (January 26, 2004) - Glen Burnie Bancorp (NASDAQ: GLBZ), parent
company of The Bank of Glen Burnie, today reported fourth quarter and year end
earnings for 2003.
The company realized net income of $849,000 (+55.78%) for the quarter
ended December 31, 2003 compared to $545,000 for the same three-month period in
2002. Net interest income for the quarter after provisions for credit losses was
$2,955,000 (+6.56%) as compared to $2,773,000 for the same time period in 2002.
For the year ended December 31, 2003, net income increased to
$3,077,074 (+9.47%) as compared to $2,811,083 in 2002 which reflected an
after-tax gain of approximately $470,000 resulting from an amendment to the
bank's post-retirement benefit program.
The company's net interest income after provisions for credit losses
was $11,223,294 in 2003 (-1.27%) as compared to $11,368,150 in 2002. Assets at
year-end grew to $302,252,466 (+8.18%) as compared to $279,406,206 in 2002.
"Given the economy's sluggish recovery, I am really pleased with our
performance in 2003," said President and CEO F. William Kuethe, Jr. "Of course
the really good news is the performance of our stock. Since being listed on
NASDAQ, we are seeing much more trading activity and an increase in price. That
represents real value to our stockholders," Kuethe stated.
For the quarter, basic and diluted earnings per share were up over 51%
to $0.50 in 2003 as compared to $0.33 in 2002. For the year, basic and diluted
earnings per share rose 8.9% to $1.83 in 2003 as compared to $1.68 in 2002. In
2003 stockholders' equity increased 9.9% to $23,947,628 from $21,789,386 in
2002.
"Our performance illustrates that Glen Burnie Bancorp is a solid
investment," said Kuethe. To date, the company has issued 45 consecutive
quarterly dividends. Declared dividends in 2003 included four quarterly regular
dividends and one bonus dividend totaling 54 cents per common share outstanding.
In December 2003, the company also declared a stock dividend of one share for
every five. The stock dividend was issued in January 2004.
Kuethe also noted that Glen Burnie Bancorp demonstrated efficient use
of capital in 2003. The company's return on equity (ROE) was 13.56% and return
on assets (ROA) was 1.05%.
Performance Highlights:
Kuethe cites the following key factors as contributing to the
company's overall performance in 2003:
o 2003 net interest margin was 4.56%.
o Loans, less allowance for credit losses, grew 9.18% in 2003 to
$172,819,049 from $158,286,749 in 2002.
o Core deposits grew to $256,908,236 (+6.42%) in 2003 from
$241,419,607 in 2002.
o 2003 total other income increased by 33.03% to $2,289,413 in 2003
from $1,721,081 in 2002 (excluding the pre-tax gain resulting
from an amendment to the bank's post-retirement benefit program).
The Bank of Glen Burnie has been awarded the 5-Star Superior Rating
from BAUER FINANCIAL Reports, Inc., the nation's leading independent bank
research firm, for six consecutive semi-annual periods. 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 Burnie,
www.thebankofglenburnie.com, currently maintains assets totaling more than $300
million. The Bank of Glen Burnie is a locally-owned community bank with seven
branch offices serving Maryland's Northern Anne Arundel County as its oldest,
independent commercial bank.
# # # #
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)
December December
31, 2003 31, 2002
----------- -----------
Assets
Cash and due from banks $11,120 $11,297
Interest bearing deposits 57 41
Federal funds sold 1,718 4,404
Investment securities 103,181 91,860
Common Stock in the Glen Burnie Statutory Trust I 155 155
Loans, net of allowance 172,819 158,287
Premises and equipment at cost, net of accumulated depreciation 4,220 4,143
Other real estate owned 172 413
Other assets 8,810 8,852
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Total assets $302,252 $279,452
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Liabilities and Stockholders' Equity
Liabilities:
Deposits $256,908 $241,420
Short-term borrowings 6,602 837
Long-term borrowings 7,227 7,251
Guaranteed preferred beneficial interests in Glen Burnie
Bancorp junior subordinated debentures 5,155 5,155
Other liabilities 2,413 3,000
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Total liabilities $278,305 $257,663
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Stockholders' equity:
Common stock, par value $1, authorized 15,000,000 shares;
issued and outstanding December 31, 2003 1,689,281 shares;
December 31, 2002 1,677,173 shares $1,689 $1,677
Surplus 10,862 10,637
Retained earnings 10,115 7,947
Accumulated other comprehensive income 1,281 1,528
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Total stockholders' equity $23,947 $21,789
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Total liabilities and stockholders' equity $302,252 $279,452
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Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)
Quarter Ended
December 31,
---------------------------
2003 2002
---------------------------
Interest income on
Loans, including fees $2,843 $3,039
U.S. Treasury and U.S. Government agency securities 533 518
State and municipal securities 470 352
Other 109 112
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Total interest income 3,955 4,021
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Interest expense on
Deposits 709 995
Junior subordinated debentures 136 136
Long-term borrowings 124 115
Short-term borrowings 1 2
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Total interest expense 970 1,248
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Net interest income 2,985 2,773
Provision for credit losses 30 0
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Net interest income after provision for credit losses 2,955 2,773
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Other income
Service charges on deposit accounts 268 157
Other fees and commissions 225 299
Other non-interest income 4 0
Gain on sale of real estate 0 0
Gains on investment securities 49 5
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Total other income 546 461
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Other expenses
Salaries and employee benefits 1,386 1,398
Occupancy 174 155
Other expenses 817 903
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Total other expenses 2,377 2,456
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Income before income taxes 1,124 775
Income tax expense (benefit) 275 230
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Net income $849 $545
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Net income per share of common stock $0.50 $0.33
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Weighted-average shares of common stock outstanding 1,687,016 1,673,259
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Glen Burnie Bancorp and Subsidiaries
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)
Year Ended
December 31,
--------------------------
2003 2002
--------------------------
Interest income on
Loans, including fees $11,344 $12,337
U.S. Treasury and U.S. Government agency securities 1,973 2,517
State and municipal securities 1,750 1,207
Other 473 509
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Total interest income 15,540 16,570
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Interest expense on
Deposits 3,276 4,213
Junior subordinated debentures 546 546
Long-term borrowings 451 436
Short-term borrowings 4 7
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Total interest expense 4,277 5,202
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Net interest income 11,263 11,368
Provision for credit losses 40 0
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Net interest income after provision for credit losses 11,223 11,368
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Other income
Service charges on deposit accounts 1,030 918
Other fees and commissions 1,028 750
Other non-interest income 12 764
Gain on sale of real estate 0 0
Gains on investment securities 219 53
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Total other income 2,289 2,485
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Other expenses
Salaries and employee benefits 5,821 5,780
Occupancy 709 589
Other expenses 3,217 3,588
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Total other expenses 9,747 9,957
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Income before income taxes 3,765 3,896
Income tax expense (benefit) 688 1,085
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Net income $3,077 $2,811
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Net income per share of common stock $1.83 $1.68
=======================================================================================================================
Weighted-average shares of common stock outstanding 1,682,286 1,668,335
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