Company Quick10K Filing
Glen Burnie Bancorp
Price10.80 EPS0
Shares3 P/E22
MCap31 P/FCF14
Net Debt-20 EBIT4
TEV11 TEV/EBIT3
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-15
10-K 2019-12-31 Filed 2020-03-27
10-Q 2019-09-30 Filed 2019-11-14
10-Q 2019-06-30 Filed 2019-08-12
10-Q 2019-03-31 Filed 2019-05-13
10-K 2018-12-31 Filed 2019-03-29
10-Q 2018-09-30 Filed 2018-11-13
10-Q 2018-06-30 Filed 2018-08-14
10-Q 2018-03-31 Filed 2018-05-15
10-K 2017-12-31 Filed 2018-04-02
10-Q 2017-09-30 Filed 2017-11-14
10-Q 2017-06-30 Filed 2017-08-11
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-03-29
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-10
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-10
10-Q 2015-09-30 Filed 2015-11-12
10-Q 2015-06-30 Filed 2015-08-14
10-Q 2015-03-31 Filed 2015-05-14
10-K 2014-12-31 Filed 2015-03-18
10-Q 2014-09-30 Filed 2014-11-14
10-Q 2014-06-30 Filed 2014-08-14
10-Q 2014-03-31 Filed 2014-05-15
10-K 2013-12-31 Filed 2014-03-18
10-Q 2013-09-30 Filed 2013-11-14
10-Q 2013-06-30 Filed 2013-08-14
10-Q 2013-03-31 Filed 2013-05-14
10-K 2012-12-31 Filed 2013-03-29
10-Q 2012-09-30 Filed 2012-11-14
10-Q 2012-06-30 Filed 2012-08-10
10-Q 2012-03-31 Filed 2012-05-15
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-11
10-K 2010-12-31 Filed 2011-03-11
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-13
10-K 2009-12-31 Filed 2010-03-12
8-K 2020-05-14
8-K 2020-05-01
8-K 2020-02-12
8-K 2019-10-31
8-K 2019-07-30
8-K 2019-05-14
8-K 2019-05-09
8-K 2019-04-24
8-K 2019-03-06
8-K 2019-02-15
8-K 2018-10-23
8-K 2018-08-09
8-K 2018-07-30
8-K 2018-05-10
8-K 2018-04-26
8-K 2018-02-15
8-K 2018-02-10

GLBZ 10Q Quarterly Report

Part I – Financial Information
Item 1. Consolidated Financial Statements
Note 1 – Organizational
Note 2 – Basis of Presentation
Note 3 – Earnings per Share
Note 4 – Investment Securities
Note 5 – Loans Receivable and Allowance for Loan Losses
Note 6 – Fair Value
Note 7 – Recent Accounting Pronouncements
Note 8 – Revenue Recognition
Item 2.Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6.Exhibits
EX-31.1 glbz-20200331ex311eee5fe.htm
EX-31.2 glbz-20200331ex312876e47.htm
EX-32 glbz-20200331xex32.htm

Glen Burnie Bancorp Earnings 2020-03-31

Balance SheetIncome StatementCash Flow

10-Q 1 glbz-20200331x10q.htm 10-Q glbz_Current Folio_10Q

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly period ended March 31, 2020

 

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number 0-24047

 

GLEN BURNIE BANCORP

(Exact name of registrant as specified in its charter)

 

 

 

 

Maryland

    

52-1782444

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

101 Crain Highway, S.E.

 

 

Glen Burnie, Maryland

 

21061

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (410) 766-3300

 

Inapplicable

(Former name, former address and former fiscal year if changed from last report.)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes   No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes   No

 

Indicate by check mark if the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

Large accelerated filer

Accelerated filer

Non-Accelerated Filer

Smaller Reporting Company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

GLBZ

The Nasdaq Stock Market LLC

 

The number of shares of the registrant’s common stock outstanding as of May 3, 2020 was 2,834,325.

 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARY

TABLE OF CONTENTS

 

 

 

 

Page

Part I. 

FINANCIAL INFORMATION

 

 

 

 

Item 1. 

Financial Statements

 

 

 

 

 

Consolidated Balance SheetsAs of March 31, 2020 (unaudited) and December 31, 2019 (audited)

3

 

 

 

 

Consolidated Statements of IncomeThree Months Ended March 31, 2020 and 2019 (unaudited)

4

 

 

 

 

Consolidated Statements of Comprehensive Income(Loss)Three Months Ended March 31, 2020 and 2019 (unaudited)

5

 

 

 

 

Consolidated Statements of Changes in Stockholders’ EquityThree Months Ended March 31, 2020 and 2019 (unaudited)

6

 

 

 

 

Consolidated Statements of Cash FlowsThree Months Ended March 31, 2020 and 2019 (unaudited)

7

 

 

 

 

Notes to Consolidated Financial Statements

8

 

 

 

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

25

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures about Market Risk

36

 

 

 

Item 4. 

Controls and Procedures

37

 

 

 

Part II. 

OTHER INFORMATION

 

 

 

 

Item 1. 

Legal Proceedings

37

 

 

 

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

37

 

 

 

Item 3. 

Defaults Upon Senior Securities

37

 

 

 

Item 4. 

Mine Safety Disclosures

37

 

 

 

Item 5. 

Other Information

37

 

 

 

Item 6. 

Exhibits

39

 

 

 

 

SIGNATURES

40

 

 

 

 

 

 

-  2 -

PART I – FINANCIAL INFORMATION

ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

 

 

2020

 

 

2019

 

 

 

 

(unaudited)

 

 

(audited)

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

 

$

2,658

 

$

2,420

 

Interest-bearing deposits in other financial institutions

 

 

15,413

 

 

10,870

 

     Cash and Cash Equivalents

 

 

18,071

 

 

13,290

 

 

 

 

 

 

 

 

 

Investment securities available for sale, at fair value

 

 

70,172

 

 

71,486

 

Restricted equity securities, at cost

 

 

1,199

 

 

1,437

 

 

 

 

 

 

 

 

 

Loans, net of deferred fees and costs

 

 

276,960

 

 

284,738

 

  Less:  Allowance for loan losses

 

 

(1,918)

 

 

(2,066)

 

     Loans, net

 

 

275,042

 

 

282,672

 

 

 

 

 

 

 

 

 

Real estate acquired through foreclosure

 

 

705

 

 

705

 

Premises and equipment, net

 

 

3,900

 

 

3,761

 

Bank owned life insurance

 

 

8,062

 

 

8,023

 

Deferred tax assets, net

 

 

611

 

 

672

 

Accrued interest receivable

 

 

970

 

 

961

 

Accrued taxes receivable

 

 

1,174

 

 

1,221

 

Prepaid expenses

 

 

374

 

 

406

 

Other assets

 

 

220

 

 

308

 

Total Assets

 

$

380,500

 

$

384,942

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

113,264

 

$

107,158

 

Interest-bearing deposits

 

 

208,516

 

 

214,282

 

     Total Deposits

 

 

321,780

 

 

321,440

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

20,000

 

 

25,000

 

Defined pension liability

 

 

323

 

 

317

 

Accrued expenses and other liabilities

 

 

2,540

 

 

2,505

 

Total Liabilities

 

 

344,643

 

 

349,262

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,830,358 and 2,827,473 shares as of March 31, 2020 and December 31, 2019, respectively.

 

 

2,830

 

 

2,827

 

Additional paid-in capital

 

 

10,554

 

 

10,525

 

Retained earnings

 

 

22,522

 

 

22,537

 

Accumulated other comprehensive loss

 

 

(49)

 

 

(209)

 

Total Stockholders' Equity

 

 

35,857

 

 

35,680

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

380,500

 

$

384,942

 

 

See accompanying notes to unaudited consolidated financial statements.

-  3 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

    

2020

    

2019

    

INTEREST INCOME

 

 

  

 

 

  

 

Interest and fees on loans

 

$

3,071

 

$

3,189

 

Interest and dividends on securities

 

 

381

 

 

400

 

Interest on deposits with banks and
federal funds sold

 

 

47

 

 

120

 

Total Interest Income

 

 

3,499

 

 

3,709

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

  

 

 

  

 

Interest on deposits

 

 

325

 

 

332

 

Interest on short-term borrowings

 

 

126

 

 

238

 

Total Interest Expense

 

 

451

 

 

570

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

3,048

 

 

3,139

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

(80)

 

 

173

 

Net interest income after provision
for loan losses

 

 

3,128

 

 

2,966

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

  

 

 

  

 

Service charges on deposit accounts

 

 

56

 

 

61

 

Other fees and commissions

 

 

159

 

 

178

 

Gain on securities sold

 

 

 1

 

 

 3

 

Income on life insurance

 

 

39

 

 

40

 

Total Noninterest Income

 

 

255

 

 

282

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

  

 

 

  

 

Salary and benefits

 

 

1,705

 

 

1,770

 

Occupancy and equipment expenses

 

 

331

 

 

314

 

Legal, accounting and other professional fees

 

 

252

 

 

232

 

Data processing and item processing services

 

 

234

 

 

176

 

FDIC insurance costs

 

 

51

 

 

56

 

Advertising and marketing related expenses

 

 

25

 

 

27

 

Loan collection costs

 

 

67

 

 

13

 

Telephone costs

 

 

47

 

 

66

 

Other expenses

 

 

328

 

 

423

 

Total Noninterest Expenses

 

 

3,040

 

 

3,077

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

343

 

 

171

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

75

 

 

36

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

268

 

$

135

 

 

 

 

 

 

 

 

 

Basic and diluted net income per share of common stock

 

$

0.09

 

$

0.05

 

 

See accompanying notes to unaudited consolidated financial statements.

-  4 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2020

    

2019

    

 

 

 

 

 

 

 

 

Net income

 

$

268

 

$

135

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

  

 

 

  

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on securities available for sale:

 

 

 

 

 

 

 

Net unrealized gain (loss) on securities during the period

 

 

918

 

 

932

 

Income tax (expense) benefit relating to item above

 

 

(252)

 

 

(254)

 

Reclassification adjustment for gain on sales of securities included in net income

 

 

(1)

 

 

(3)

 

Net effect on other comprehensive income

 

 

665

 

 

675

 

 

 

 

 

 

 

 

 

Net unrealized (loss) gain on interest rate swap:

 

 

 

 

 

 

 

Net unrealized (loss) gain on interest rate swap during the period

 

 

(696)

 

 

(221)

 

Income tax benefit (expense) relating to item above

 

 

191

 

 

61

 

Net effect on other comprehensive loss

 

 

(505)

 

 

(160)

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

160

 

 

515

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

428

 

$

650

 

 

See accompanying notes to unaudited consolidated financial statements.

-  5 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

 

Common

 

Paid-in

 

Retained

 

Comprehensive

 

 

 

 

 

Stock

 

Capital

 

Earnings

 

(Loss)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

$

2,814

 

$

10,401

 

$

22,066

 

$

(1,230)

 

$

34,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

135

 

 

 —

 

 

135

Cash dividends, $0.10 per share

 

 

 —

 

 

 —

 

 

(282)

 

 

 —

 

 

(282)

Dividends reinvested under

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  dividend reinvestment plan

 

 

 4

 

 

32

 

 

 —

 

 

 —

 

 

36

Other comprehensive loss

 

 

 —

 

 

 —

 

 

 —

 

 

515

 

 

515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2019

 

$

2,818

 

$

10,433

 

$

21,919

 

$

(715)

 

$

34,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

 

Common

 

Paid-in

 

Retained

 

Comprehensive

 

 

 

 

 

Stock

 

Capital

 

Earnings

 

(Loss) Gain

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

$

2,827

 

$

10,525

 

$

22,537

 

$

(209)

 

$

35,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

268

 

 

 —

 

 

268

Cash dividends, $0.10 per share

 

 

 —

 

 

 —

 

 

(283)

 

 

 —

 

 

(283)

Dividends reinvested under

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  dividend reinvestment plan

 

 

 3

 

 

29

 

 

 —

 

 

 —

 

 

32

Other comprehensive income

 

 

 —

 

 

 —

 

 

 —

 

 

160

 

 

160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2020

 

$

2,830

 

$

10,554

 

$

22,522

 

$

(49)

 

$

35,857

 

 

See accompanying notes to unaudited consolidated financial statements.

-  6 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

    

 

 

Three Months Ended March 31, 

 

 

    

2020

    

2019

 

Cash flows from operating activities:

 

 

  

 

 

  

 

Net income

 

$

268

 

$

135

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

  

 

 

 

 

Depreciation, amortization, and accretion of premises and equipment

 

 

162

 

 

318

 

Provision for loan losses

 

 

(80)

 

 

173

 

Decrease in cash surrender value of bank owned life insurance

 

 

(39)

 

 

(40)

 

Decrease in ground rents

 

 

 —

 

 

(3)

 

(Increase) decrease in accrued interest receivable

 

 

(8)

 

 

89

 

Net decrease (increase) in other assets

 

 

166

 

 

(61)

 

Net decrease in accrued expenses and other liabilities

 

 

(613)

 

 

(416)

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by operating activities

 

 

(144)

 

 

195

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

  

 

 

  

 

Redemptions and maturities of investment securities available for sale

 

 

3,878

 

 

22,815

 

Purchases of investment securities available for sale

 

 

(1,709)

 

 

(1,932)

 

Net sales (purchase) of Federal Home Loan Bank stock

 

 

238

 

 

1,041

 

Net decrease (increase) in loans

 

 

7,711

 

 

(408)

 

Purchases of premises and equipment

 

 

(282)

 

 

(47)

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

 

9,836

 

 

21,469

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

  

 

 

  

 

Net increase in deposits

 

 

341

 

 

9,163

 

Decrease in short term borrowings

 

 

(5,000)

 

 

(30,000)

 

Cash dividends paid

 

 

(283)

 

 

(282)

 

Common stock dividends reinvested

 

 

31

 

 

36

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

(4,911)

 

 

(21,083)

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

4,781

 

 

581

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

 

13,290

 

 

15,954

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

$

18,071

 

$

16,535

 

 

 

 

 

 

 

 

 

Supplemental Disclosures of Cash Flow Information:

 

 

  

 

 

  

 

Interest paid on deposits and borrowings

 

$

456

 

$  

551

 

Net income taxes paid (refunded)

 

 

(31)

 

 

36

 

Net decrease in unrealized depreciation on available for sale securities

 

 

918

 

 

932

 

Net increase in unrealized appreciation on swaps

 

 

(696)

 

 

(221)

 

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited consolidated financial statements.

-  7 -

GLEN BURNIE BANCORP AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATIONAL

Nature of Business

Glen Burnie Bancorp (the “Company”) is a bank holding company organized in 1990 under the laws of the State of Maryland.  The Company owns all the outstanding shares of capital stock of The Bank of Glen Burnie (the “Bank”), a commercial bank organized in 1949 under the laws of the State of Maryland (the “State”).  The Bank provides financial services to individuals and corporate customers located in Anne Arundel County and surrounding areas of Central Maryland, and is subject to competition from other financial institutions.  The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. 

 

NOTE 2 – BASIS OF PRESENTATION

In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2020 and December 31, 2019, the results of operations for the three-month period ended March 31, 2020 and 2019, and the statements of cash flows for the three-month period ended March 31, 2020 and 2019.  The operating results for the three-month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 or any future interim period.  The consolidated balance sheet at December 31, 2019 has been derived from the audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 27, 2020.  The unaudited consolidated financial statements for March 31, 2020 and 2019, the consolidated balance sheet at December 31, 2019, and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, The Bank of Glen Burnie.  Consolidation resulted in the elimination of all intercompany accounts and transactions.

 

On January 10, 2019, the Board of Directors (the “Board”) of the Company and the Bank approved the contribution from the Company to the Bank of all of the common stock of GBB Properties, Inc. (“GBB”).  The contribution and assignment of 3,600 shares of common stock occurred on January 22, 2019 and was treated as a capital contribution.  Prior to the contribution, the Company owned all of the outstanding shares of common stock of GBB, a Maryland corporation which was organized in 1994 and which 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.

 

Cash Flow Presentation

 

In the statements of cash flows, cash and cash equivalents include cash on hand, amounts due from banks, Federal Home Loan Bank of Atlanta (“FHLB Atlanta”) overnight deposits, and federal funds sold.  Generally, federal funds are sold for one-day periods.

 

Reclassifications

Certain items in the 2019 consolidated financial statements have been reclassified to conform to the 2020 classifications.  The reclassifications had no effect on previously reported results of operations or retained earnings.

 

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Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ materially from those estimates.  Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses (the “allowance”); the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and liabilities.

 

NOTE 3 – EARNINGS PER SHARE

Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average common shares outstanding during the period.  Diluted EPS is computed by dividing net income available to common shareholders by the weighted average common shares outstanding, plus the effect of common stock equivalents (for example, stock options computed using the treasury stock method).

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 

 

 

    

2020

    

2019

    

Basic and diluted earnings per share:

 

 

 

 

 

 

 

Net income

 

$

268,384

 

$

135,025

 

Weighted average common shares outstanding

 

 

2,829,375

 

 

2,816,518

 

Basic and dilutive net income per share