Profile: Glen Burnie Bancorp (GLBZ.OQ)
7 Mar 2014
Glen Burnie Bancorp is a bank holding company. The Bank of Glen Burnie (the Bank) is the Company’s subsidiary. The Bank serves northern Anne Arundel County and surrounding areas from its main office and branch in Glen Burnie, Maryland and branch offices in Odenton, Riviera Beach, Crownsville, Severn (two locations), Linthicum and Severna Park, Maryland. The Bank is engaged in the commercial and retail banking business as authorized by the banking statutes of the State of Maryland, including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships and corporations.
The Bank offers a range of consumer and commercial loans. The Bank’s lending activities include residential and commercial real estate loans, construction loans, land acquisition and development loans, commercial loans and consumer installment lending including indirect automobile lending. The Bank’s loan customers are residents of Anne Arundel County and surrounding areas of Central Maryland. The Bank solicits loan applications for commercial loans from small to medium sized businesses located in its market area. As of December 31, 2011, the Bank’s consumer lending consisted primarily of indirect automobile loans originated through arrangements with local dealers. The Bank offers long-term mortgage financing for residential and commercial real estate, as well as shorter term construction and land development loans. Residential mortgage and residential construction loans are originated with fixed rates, while commercial mortgages may be originated on either a fixed or variable rate basis.
Commercial construction loans may be originated on either a fixed or a variable rate basis. The Bank’s real estate loans are secured by properties in Anne Arundel County, Maryland. The Bank’s commercial loan portfolio consists of demand, installment and time loans for commercial purposes. The Bank makes consumer and commercial installment loans for the purchase of automobiles, boats, other consumer durable goods, capital goods and equipment. Such loans provide for repayment in regular installments and are secured by the goods financed. Also included in installment loans are overdraft loans and other credit repayable in installments. As of December 31, 2011, approximately 57.50% of the installment loans in the Bank’s portfolio (other than indirect automobile lending) had been originated for commercial purposes and 42.50% had been originated for consumer purposes.
The Bank finances new automobiles for terms of up to 72 months and used automobiles for terms of up to 66 months. The Bank does not lend more than the manufacturer's suggested retail price (MSRP) on new vehicles. On used vehicles, the Bank will not lend more than 110% of the average wholesale published in a nationally recognized used vehicle pricing guide. The Bank offers overdraft protection lines of credit, tied to checking accounts, as a convenience to qualified customers.
The Bank maintains a portfolio of investment securities to provide liquidity, as well as a source of earnings. The Bank’s investment securities portfolio consists primarily of securities issued by the United Sates government agencies, including mortgage-backed securities, securities issued by certain states and their political subdivisions, and corporate trust preferred securities. The tax treatment of the Bank’s portfolio of securities issued by certain states and their political subdivisions allows the Company to use the tax advantage of this portfolio. As of December 31, 2011, the Bank had no investments in securities of a single issuer (other than the United Sates government securities and securities of federal agencies and government-sponsored enterprises), which aggregated more than 10% of stockholders’ equity.
Sources of Funds
The funds needed by the Bank to make loans are primarily generated by deposit accounts solicited from the communities surrounding its branches in northern Anne Arundel County. Consolidated total deposits were $311,944,661 as of December 31, 2011. The Bank uses borrowings from the Federal Home Loan Bank (FHLB) of Atlanta to supplement funding from deposits. The Bank was permitted to borrow up to $52.45 million under a line of credit from the FHLB of Atlanta as of December 31, 2011.The Bank’s deposit products include regular savings accounts (statements), money market deposit accounts, demand deposit accounts, negotiable order of withdrawal (NOW) checking accounts, individual retirement account (IRA) and simplified employee pension (SEP) accounts, Christmas Club accounts and certificates of deposit.
Ancillary products and services for deposit customers include safe deposit boxes, money orders and travelers checks, night depositories, automated clearinghouse transactions, wire transfers, ATMs, telephone banking, and a customer call center. As of December 31, 2011, the Bank had approximately $48 million in certificates of deposit and other time deposits of $100,000 or more, including IRA accounts. In addition to deposits, the Bank from time to time obtains advances from the FHLB of Atlanta of which it is a member. There was $10 million in a convertible advance under this credit arrangement as of December 31, 2011.
GBB Properties, Inc. (GBB) is the Company’s subsidiary. GBB is engaged in the business of acquiring, holding and disposing of real property, typically acquired in connection with foreclosure proceedings (or deeds in lieu of foreclosure) instituted by the Bank or acquired in connection with branch expansions by the Bank.
Glen Burnie Bancorp
101 Crain Highway, S.E.
GLEN BURNIE MD 21061