CORRESP 1 filename1.htm

[GLEN BURNIE BANCORP LETTERHEAD]

March 11, 2010

Via EDGAR and FEDEX
Mr. Hugh West
Accounting Branch Chief
Division of Corporation Finance
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549

RE:
Glen Burnie Bancorp (the “Company”)
Form 10-K for the Fiscal Year ended December 31, 2008
Form 10-Q for the Quarter ended September 30, 2009
File No. 000-24047

Dear Mr. West:

In response to Mr. Marc Thomas’ telephone request, attached is a copy of cash flow analysis performed by FTN Financial Securities Corporation.

The Company hereby acknowledges that the Company is responsible for the adequacy and accuracy of the disclosure in the filing, and staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing.  The Company further acknowledges that the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

Should you require any further information or have additional comments, please contact me.

Sincerely,

GLEN BURNIE BANCORP
 
/s/  John E. Porter
John E. Porter
Chief Financial Officer

cc:
Mr. Michael G. Livingston
Chief Executive Officer
Marc Thomas, Staff Accountant

 
 
 
Deal Cashflows Assumptions:
No Prepays:
Prepayments -  0% annually; 100% at maturity.
Scenario 4 (Base)
  
Defaults - 75 bps applied annually;  15% recovery with 2 yr lag.
Scenario 5 (Worse)
  
Defaults - 150 bps applied annually;  0% recovery.
Scenario 6 (Better)
  
Defaults - 37.5 bps applied annually;  50% recovery with 2 yr lag.
Scenario 7 (Burst)
  
Defaults -    Qtr 2 2009:  4% (not annualized)
   
Qtr 3 2009:  3%
   
Qtr 4 2009:  2%
   
Qtr 1 2010:  1%
   
Thereafter 50 bps applied annually; 15% recovery with 2 yr lag.

Asset Specific Assumptions:
Bank 10 -
  
Defaults with 15% recovery with a two year lag.
Bank 26 -
  
Defaults with 15% recovery with a two year lag.
Bank 6 -
  
Defaults with 0% recovery.

Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. All herein listed securities are subject to availability and change in price. Past performance is not indicative of future results while changes in any assumptions may have a material effect on projected results.

FTN Financial Group and FTN Financial Capital Markets are divisions of First Tennessee Bank National Association (FTB). FTN Financial Securities Corp (FFSC), FTN Financial Capital Assets Corporation, and FTN Equity Capital Markets Corp (FTN Equity Capital) are wholly owned subsidiaries of FTB. FFSC and FTN Equity Capital are members of the FINRA and SIPC—http://www.sipc.org/. Equity research is provided by FTN Equity Capital. FTN Financial Group, through First Tennessee Bank or its affiliates, offers investment products and services.

This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, employee or agent responsible to deliver it to the intended recipient, you are hereby notified that reading, disseminating, distributing or copying this communication is strictly prohibited.
© 2009 First Tennessee Bank.  All rights reserved.
 
 
 
 
 
EITF 99-20 Other Than Temporary Impairment Cash Flow Testing
12/31/09
  

       
9.30.09
    
12.31.09
                        
Input----->
  
Original Face:
  
1,000,000
       945,300  
current face
              
Input-->
  
Book Value
     924,823       887,735       93.91  
book price
              
Input----->
  
Scenario #
    
5
      
5
              
RESULTS
      
Input----->
  
Original Purchase Date:
  
9/1/2000
              
Current Book Value
     887,735      
Input----->
  
Original Purchase Price:
  
100.6030
              
PV for Current Qtr Projected Cash Flows
     900,043      
                                 
Change
     12,308      
Discount Rate
  
9.190
 %                           
% Change  
     1.39 %    

Previously Projected Cashflows
September 30, 2009
  
Currently Projected Cashflows
December 31, 2009

Deal
  
Class
  
Description
  
Type
  
Cusip
  
Reg Div
  
Senior
  
Senior
  
Fixed
  
75902AAA6
  

Assumptions:
  
Assumptions:
     
Prepayments -  0% annually; 100% at maturity.
  
Prepayments -  0% annually; 100% at maturity.
     
Scenario 5 (Worse) Defaults - 150 bps applied annually;  0% recovery.
  
Scenario 5 (Worse) Defaults - 150 bps applied annually;  0% recovery.
     
Specific Deferals/ Defaults:
  
Specific Deferals/ Defaults:
As per Intex
  
As per Intex

         
Implied Discount Rate
    
9.401%
                
Implied Discount Rate
    
9.401%
        
Date
  
Balance
    
Principal
    
Interest
    
Total
Cashflow
    
Discounted Cashflow
Value
    
Balance
    
Principal
    
Interest
    
Total
Cashflow
    
Discounted Cashflow
Value
  
Book Value----------------------->
         (924,823 )        
Book Value----------------------->
       (887,735 )      
Net PV----------------------------->
                 900,016    
Net PV----------------------------->
               900,043  
9/15/2009
     945,300                                   945,300                                
3/15/2010
     941,823       3,477       43,720       47,198       900,016       941,761       3,539       43,720       47,259       900,043  
9/15/2010
     938,181       3,641       43,559       47,201       894,173       938,117       3,644       43,556       47,201       894,140  
3/15/2011
     935,084       3,098       43,391       46,489       888,059       935,016       3,101       43,388       46,489       888,024  
9/15/2011
     931,843       3,241       43,248       46,489       882,376       931,772       3,244       43,244       46,489       882,339  
3/15/2012
     915,486       16,356       43,098       59,454       876,432       915,412       16,360       43,094       59,454       876,393  
9/15/2012
     912,033       3,453       42,341       45,795       857,249       911,956       3,457       42,338       45,795       857,209  
3/15/2013
     909,111       2,922       42,182       45,104       850,844       909,030       2,926       42,178       45,104       850,803  
9/15/2013
     906,052       3,058       42,046       45,105       844,836       905,968       3,062       42,043       45,105       844,792  
3/15/2014
     903,533       2,519       41,905       44,424       838,551       903,445       2,523       41,901       44,424       838,505  
9/15/2014
     900,896       2,637       41,788       44,425       832,658       900,804       2,641       41,784       44,425       832,610  
3/15/2015
     898,808       2,088       41,666       43,755       826,493       898,711       2,093       41,662       43,755       826,442  
9/15/2015
     896,622       2,186       41,570       43,756       820,714       896,521       2,190       41,565       43,756       820,662  
3/15/2016
     894,995       1,627       41,469       43,096       814,670       894,889       1,631       41,464       43,096       814,615  
9/15/2016
     893,293       1,703       41,394       43,096       809,008       893,182       1,708       41,389       43,096       808,950  
3/15/2017
     892,161       1,131       41,315       42,446       803,085       892,045       1,136       41,310       42,446       803,025  
9/15/2017
     890,977       1,184       41,262       42,447       797,540       890,855       1,190       41,257       42,447       797,477  
3/15/2018
     890,378       599       41,208       41,806       791,739       890,251       604       41,202       41,806       791,673  
9/15/2018
     889,751       627       41,180       41,807       786,312       889,618       633       41,174       41,807       786,244  
3/15/2019
     889,726       25       41,151       41,176       780,636       889,586       31       41,145       41,176       780,564  
9/15/2019
     889,698       27       41,150       41,177       775,329       889,553       34       41,143       41,177       775,254  
3/15/2020
     889,698       -       41,149       41,149       769,778       889,553       -       41,142       41,142       769,699  
9/15/2020
     889,698       -       41,149       41,149       764,000       889,553       -       41,142       41,142       763,924  
3/15/2021
     889,698       -       40,982       40,982       757,956       889,553       -       40,906       40,906       757,884  
9/15/2021
     889,698       -       39,945       39,945       751,802       889,553       -       39,945       39,945       751,802  
3/15/2022
     889,698       -       39,342       39,342       746,402       889,553       -       39,342       39,342       746,402  
9/15/2022
     889,698       -       39,343       39,343       741,356       889,553       -       39,343       39,343       741,356  
3/15/2023
     889,698       -       38,749       38,749       736,078       889,553       -       38,749       38,749       736,078  
9/15/2023
     889,698       -       38,750       38,750       731,151       889,553       -       38,750       38,750       731,151  
3/15/2024
     889,698       -       38,165       38,165       725,997       889,553       -       38,165       38,165       725,997  
9/15/2024
     889,698       -       38,166       38,166       721,192       889,553       -       38,166       38,166       721,192  
3/15/2025
     889,698       -       37,589       37,589       716,164       889,553       -       37,589       37,589       716,164  
9/15/2025
     889,698       -       37,590       37,590       711,482       889,553       -       37,590       37,590       711,482  
3/15/2026
     889,698       -       37,022       37,022       706,584       889,553       -       37,022       37,022       706,584  
9/15/2026
     889,698       -       37,023       37,023       702,028       889,553       -       37,023       37,023       702,028  
3/15/2027
     889,698       -       36,464       36,464       697,263       889,553       -       36,464       36,464       697,263  
9/15/2027
     889,698       -       36,465       36,465       692,837       889,553       -       36,465       36,465       692,837  
3/15/2028
     889,698       -       35,914       35,914       688,208       889,553       -       35,914       35,914       688,208  
9/15/2028
     889,698       -       35,915       35,915       683,916       889,553       -       35,915       35,915       683,916  
3/15/2029
     889,698       -       35,915       35,915       679,427       889,553       -       35,915       35,915       679,427  
9/15/2029
     889,698       -       35,916       35,916       674,731       889,553       -       35,916       35,916       674,731  
3/15/2030
     230,250       659,448       41,149       700,596       669,819       230,098       659,455       41,142       700,596       669,819  
                                                                                 
              715,050       1,643,343       2,358,393                       715,202       1,643,163       2,358,366          

Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed.  This is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  All herein listed securities are subject to availability and change in price.  Past performance is not indicative of future results while changes in any assumptions may have a material effect on projected results.

FTN Financial Group and FTN Financial Capital Markets are divisions of First Tennessee Bank National Association (FTB).  FTN Financial Securities Corp (FFSC), FTN Financial Capital Assets Corporation, and FTN Equity Capital Markets Corp (FTN Equity Capital) are wholly owned subsidiaries of FTB.  FFSC and FTN Equity Capital are members of the FINRA and SIPC—http://www.sipc.org/.  Equity research is provided by FTN Equity Capital.  FTN Financial Group, through First Tennessee Bank or its affiliates, offers investment products and services.

This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law.  If the reader of this message is not the intended recipient, employee or agent responsible to deliver it to the intended recipient, you are hereby notified that reading, disseminating, distributing or copying this communication is strictly prohibited.

 
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EITF 99-20 Other Than Temporary Impairment Cash Flow Testing
12/31/09
  
 
       
9.30.09
    
12.31.09
                        
Input----->
  
Original Face:
  
250,000
       236,325  
current face
              
Input-->
  
Book Value
     249,730       240,230       101.65  
book price
              
Input----->
  
Scenario #
    
5
      
5
              
RESULTS
      
Input----->
  
Original Purchase Date:
  
11/8/2002
              
Current Book Value
     240,230      
Input----->
  
Original Purchase Price:
  
109.8980
              
PV for Current Qtr Projected Cash Flows
     242,004      
                                 
Change
     1,774      
Discount Rate
  
8.325
 %                           
% Change  
     0.74 %    

Previously Projected Cashflows
September 30, 2009
  
Currently Projected Cashflows
December 31, 2009
 
Deal
  
Class
  
Description
  
Type
  
Cusip
Reg Div
  
Senior
  
Senior
  
Fixed
  
75902AAA6

Assumptions:
  
Assumptions:
     
Prepayments -  0% annually; 100% at maturity.
  
Prepayments -  0% annually; 100% at maturity.
     
Scenario 5 (Worse) Defaults - 150 bps applied annually;  0% recovery.
  
Scenario 5 (Worse) Defaults - 150 bps applied annually;  0% recovery.
     
Specific Deferals/ Defaults:
  
Specific Deferals/ Defaults:
As per Intex
  
As per Intex
 
         
Implied Discount Rate
    
8.498%
                
Implied Discount Rate
    
8.498%
        
Date
  
Balance
    
Principal
    
Interest
    
Total
Cashflow
    
Discounted Cashflow
Value
    
Balance
    
Principal
    
Interest
    
Total
Cashflow
    
Discounted Cashflow
Value
  
Book Value----------------------->
       (249,730 )        
Book Value----------------------->
       (240,230 )      
Net PV----------------------------->
               241,998    
Net PV----------------------------->
               242,004  
9/15/2009
     236,325                                   236,325                              
3/15/2010
     235,456       869       10,930       11,799       241,998       235,440       885       10,930       11,815       242,004  
9/15/2010
     234,545       910       10,890       11,800       240,272       234,529       911       10,889       11,800       240,263  
3/15/2011
     233,771       774       10,848       11,622       238,473       233,754       775       10,847       11,622       238,463  
9/15/2011
     232,961       810       10,812       11,622       236,777       232,943       811       10,811       11,622       236,767  
3/15/2012
     228,872       4,089       10,774       14,863       235,011       228,853       4,090       10,774       14,863       235,000  
9/15/2012
     228,008       863       10,585       11,449       229,930       227,989       864       10,584       11,449       229,919  
3/15/2013
     227,278       731       10,545       11,276       228,052       227,257       731       10,544       11,276       228,040  
9/15/2013
     226,513       765       10,512       11,276       226,268       226,492       766       10,511       11,276       226,257  
3/15/2014
     225,883       630       10,476       11,106       224,411       225,861       631       10,475       11,106       224,398  
9/15/2014
     225,224       659       10,447       11,106       222,646       225,201       660       10,446       11,106       222,633  
3/15/2015
     224,702       522       10,417       10,939       220,807       224,678       523       10,416       10,939       220,794  
9/15/2015
     224,156       546       10,392       10,939       219,059       224,130       548       10,391       10,939       219,045  
3/15/2016
     223,749       407       10,367       10,774       217,239       223,722       408       10,366       10,774       217,224  
9/15/2016
     223,323       426       10,348       10,774       215,507       223,295       427       10,347       10,774       215,492  
3/15/2017
     223,040       283       10,329       10,612       213,703       223,011       284       10,327       10,612       213,688  
9/15/2017
     222,744       296       10,316       10,612       211,987       222,714       297       10,314       10,612       211,971  
3/15/2018
     222,595       150       10,302       10,452       210,200       222,563       151       10,301       10,452       210,183  
9/15/2018
     222,438       157       10,295       10,452       208,497       222,404       158       10,294       10,452       208,480  
3/15/2019
     222,431       6       10,288       10,294       206,724       222,397       8       10,286       10,294       206,706  
9/15/2019
     222,425       7       10,287       10,294       205,035       222,388       8       10,286       10,294       205,016  
3/15/2020
     222,425       -       10,287       10,287       203,275       222,388       -       10,285       10,285       203,255  
9/15/2020
     222,425       -       10,287       10,287       201,449       222,388       -       10,285       10,285       201,430  
3/15/2021
     222,425       -       10,245       10,245       199,548       222,388       -       10,227       10,227       199,530  
9/15/2021
     222,425       -       9,986       9,986       197,608       222,388       -       9,986       9,986       197,608  
3/15/2022
     222,425       -       9,836       9,836       195,847       222,388       -       9,836       9,836       195,847  
9/15/2022
     222,425       -       9,836       9,836       194,164       222,388       -       9,836       9,836       194,164  
3/15/2023
     222,425       -       9,687       9,687       192,410       222,388       -       9,687       9,687       192,410  
9/15/2023
     222,425       -       9,687       9,687       190,732       222,388       -       9,687       9,687       190,732  
3/15/2024
     222,425       -       9,541       9,541       188,984       222,388       -       9,541       9,541       188,984  
9/15/2024
     222,425       -       9,541       9,541       187,309       222,388       -       9,541       9,541       187,309  
3/15/2025
     222,425       -       9,397       9,397       185,564       222,388       -       9,397       9,397       185,564  
9/15/2025
     222,425       -       9,398       9,398       183,891       222,388       -       9,398       9,398       183,891  
3/15/2026
     222,425       -       9,256       9,256       182,148       222,388       -       9,256       9,256       182,148  
9/15/2026
     222,425       -       9,256       9,256       180,474       222,388       -       9,256       9,256       180,474  
3/15/2027
     222,425       -       9,116       9,116       178,731       222,388       -       9,116       9,116       178,731  
9/15/2027
     222,425       -       9,116       9,116       177,054       222,388       -       9,116       9,116       177,054  
3/15/2028
     222,425       -       8,979       8,979       175,308       222,388       -       8,979       8,979       175,308  
9/15/2028
     222,425       -       8,979       8,979       173,627       222,388       -       8,979       8,979       173,627  
3/15/2029
     222,425       -       8,979       8,979       171,875       222,388       -       8,979       8,979       171,875  
9/15/2029
     222,425       -       8,979       8,979       170,051       222,388       -       8,979       8,979       170,051  
3/15/2030
     57,563       164,862       10,287       175,149       168,150       57,525       164,864       10,285       175,149       168,150  
                                                                                 
              178,762       410,836       589,598                       178,801       410,791       589,591          

Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed.  This is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  All herein listed securities are subject to availability and change in price.  Past performance is not indicative of future results while changes in any assumptions may have a material effect on projected results.

FTN Financial Group and FTN Financial Capital Markets are divisions of First Tennessee Bank National Association (FTB).  FTN Financial Securities Corp (FFSC), FTN Financial Capital Assets Corporation, and FTN Equity Capital Markets Corp (FTN Equity Capital) are wholly owned subsidiaries of FTB.  FFSC and FTN Equity Capital are members of the FINRA and SIPC—http://www.sipc.org/.  Equity research is provided by FTN Equity Capital.  FTN Financial Group, through First Tennessee Bank or its affiliates, offers investment products and services.

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