Glen Burnie Bancorp Profile
Glen Burnie Bancorp operates as the bank holding company for The Bank of Glen Burnie that provides various banking products and services.
The company 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 company also maintains a remote Automated Teller Machine (ATM) located in Pasadena, Maryland. The company maintains a website at www.thebankofglenburnie.com.
The company engages 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 company's real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. Commercial lending consists of both secured and unsecured loans. The company also originates automobile loans through arrangements with local automobile dealers. The company's deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (FDIC). The company attracts deposit customers from the general public and use such funds, together with other borrowed funds, to make loans.
Market Area
The company considers its principal market area for lending and deposit products to consist of Anne Arundel County, Maryland.
Strategy
The company operates on the premise that the consolidation activities in the banking industry have created an opportunity for a well-capitalized community bank to satisfy banking needs that are no longer being adequately met in the local market.
Products and Services
The company's primary market focus is on making loans to and gathering deposits from small and medium-sized businesses and their owners, professionals and executives, real estate investors and individual consumers in its primary market area. The company lends to customers throughout Maryland, with its core market being Northern Anne Arundel County and surrounding areas of Central Maryland. To a limited extent, the company lends to customers in neighboring states. The company offers a full range of consumer and commercial loans. The company'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. Substantially all of the company's loan customers are residents of Anne Arundel County and surrounding areas of Central Maryland. The company solicits loan applications for commercial loans from small to medium sized businesses located in its market area. The company's consumer lending consists primarily of indirect automobile loans originated through arrangements with local dealers.
Lending Activities
Credit Policies and Administration
The company's loan approval policy provides for various levels of individual lending authority. The maximum aggregate lending authority granted by the company to any one Lending Officer is $750,000. The company has adopted a comprehensive lending policy, which includes stringent underwriting standards for all types of loans.
Real Estate Lending
The company 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. Substantially all of the bank's real estate loans are secured by properties in Anne Arundel County, Maryland. Under the bank's loan policies, the maximum permissible loan-to-value ratio for owner-occupied residential mortgages is 80% of the lesser of the purchase price or appraised value. For residential investment properties, the maximum loan-to-value ratio is 80%. The maximum permissible loan-to-value ratio for residential and residential construction loans is 80%. The maximum loan-to-value ratio for permanent commercial mortgages is 75%. The maximum loan-to-value ratio for land development loans is 70% and for unimproved land is 65%. The company also offers home equity loans secured by the borrower's primary residence.
Commercial Lending
The company's commercial loan portfolio consists of demand, installment and time loans for commercial purposes. The company's business demand, installment and time lending includes various working capital loans, equipment, vehicles, lines of credit and letters of credit for commercial customers. Demand loans require the payment of interest until called, while installment loans require a monthly payment of principal and interest, and time loans require at maturity a single payment of principal and interest due monthly.
Installment Lending
The company 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 other types of credit repayable in installments.
Indirect Automobile Lending
The company finances new and used automobiles for terms of no more than 84 months. The company will lend a maximum of 90% of invoice on new vehicles. On used vehicles, the company will lend no more than 90% of the average retail value as defined by a major national publication approved by it. The company requires all borrowers to obtain vendors single interest coverage protecting it against loss in the case a borrower's automobile insurance lapses. The company originates indirect loans through a network of approximately 60 dealers which are primarily new car dealers located in Anne Arundel County and the surrounding counties. Participating dealers take loan applications from their customers and transmit them to the company for approval.
Consumer Lending
The company offers various types of secured and unsecured consumer loans. Generally, the company's consumer loans are made for personal, family or household purposes as a convenience to its customer base.
Personal Unsecured Lines
The company offers overdraft protection lines of credit, tied to checking accounts, as a convenience to qualified customers.
Loan Originations, Purchases, Sales, Participations and Servicing
All loans that the company originates are underwritten pursuant to its policies and procedures, which incorporate standard underwriting guidelines. The company originates both fixed and variable rate loans. The company's loan origination activity may be adversely affected by a rising interest rate environment that typically results in decreased loan demand. The company occasionally sells participations in commercial loans to correspondent banks if the amount of the loan exceeds its internal limits. More rarely, the company purchases loan participations from correspondent banks in the local market as well. Those loans are underwritten in-house with the same standards as loans directly originated.
Deposit Activities
Deposits are the major source of the company's funding. The company offers a broad array of consumer and business deposit products that include demand, money market, and savings accounts, as well as time deposits and individual retirement accounts.
Other Banking Products
The company offers its customers treasury services products that include wire transfer and ACH services, debit card and automated teller machines and safe deposit boxes at all branches. In addition to traditional deposit services, the company offers telephone banking services, mobile banking, internet banking services and internet bill paying services to its customers.
Supervision and Regulation
The company is a bank holding company within the meaning of the Bank Holding Company Act of 1956. As such, the company is registered with the Board of Governors of the Federal Reserve System (the Federal Reserve Board) and subject to Federal Reserve Board regulation, examination, supervision, and reporting requirements.
The company is also subject to regular inspection by Federal Reserve Board examiners. As a publicly traded company whose common stock is registered under Section 12(g) of the Exchange Act, the company is under the jurisdiction of the Securities and Exchange Commission (SEC) and subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, as administered by the SEC. The company is listed on the NASDAQ Global Select Market and it is subject to the rules of NASDAQ for listed companies.
The bank is subject to the supervision of the Maryland Commissioner of Financial Regulation (Commissioner) and the FDIC. The Commissioner and FDIC regularly examine the operations of the bank, including capital adequacy, assets, earnings, liquidity, sensitivity to market interest rates, reserves, loans, investments, and management practices. In addition, the bank is required to furnish quarterly Call Reports to the Commissioner and FDIC.
Some of the aspects of the lending and deposit business of the bank that are subject to regulation by the Federal Reserve Board and the FDIC.
The bank is a member of the Federal Home Loan Bank (FHLB), which is one of 11 regional banks in the FHLB System. The bank is required to acquire and hold shares of capital stock of the FHLB as a condition of membership.
The bank is subject to a number of federal and state consumer financial protection laws and regulations that govern its transactions with consumers. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, and the Service Members Civil Relief Act.
The bank has a rating of 'satisfactory' for the Community Reinvestment Act of 1977 compliance.
History
Glen Burnie Bancorp was founded in 1949. The company was incorporated in 1990 under the laws of the state of Maryland.
