Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding
company for The Bank of Glen Burnie (“Bank”), announced today net
income of $480,000, or $0.17 per basic and diluted common share for
the three-month period ended June 30, 2021, as compared to a net
loss of $96,000, or $0.03 per basic and diluted common share for
the three-month period ended June 30, 2020. Bancorp reported net
income of $1,074,000, or $0.38 per basic and diluted common share
for the six-month period ended June 30, 2021, compared to $174,000,
or $0.06 per basic and diluted common share for the same period in
2020. On June 30, 2021, Bancorp had total assets of $432.8 million.
Bancorp, the oldest independent commercial bank in Anne Arundel
County, paid its 116th consecutive quarterly dividend on July 30,
2021. The Company recorded a net benefit of $67,000 from the
release of allowance for credit losses loans (“ACL-loans”) for the
second quarter of 2021 and $471,000 for the first half of 2021
compared to a provision for credit losses (“PCL-loans”) of $487,000
for the second quarter of 2020 and $407,000 for the first half of
2020.
“We are very pleased to report another quarter of strong
financial performance,” said John D. Long, President and Chief
Executive Officer. “The story for this quarter, and for the first
six months of 2021, is the release of ACL-loans compared to
significant provision for loan loss during the quarter and the
first half of 2020. Additionally, the Bank’s continued realization
of Paycheck Protection Program (“PPP”) loan fees due to ongoing PPP
loan forgiveness by the SBA contributed to our strong performance.
Our margin continues to be under pressure as deposit growth driven
by government stimulus has far outpaced net loan decreases. Our
challenge for the remainder of 2021, and into 2022, will be
generating loan growth in the post-pandemic economy, but we are
encouraged by the improving economic factors in our markets as the
economy reopens.”
“We remain committed to improving our noninterest income revenue
streams and are very pleased with the success of recently
introduced deposit products and services, along with the growth
seen in other key fee income categories. Our desire to meet growth
objectives in a cost-conscious manner remains a priority, and we
will continue to regularly review our branch system and other
expense categories to identify potential opportunities to conduct
business more efficiently.”
Highlights for the First Six Months of 2021
The Company recorded a PCL-loans benefit of $67,000 in the
second quarter of 2021 as compared to a PCL-loans expense of
$487,000 in the second quarter of 2020, and a year-to-date
PCL-loans benefit of $471,000 in 2021 as compared to a $407,000
PCL-loans expense for the same period in 2020. The $554,000
favorable decline in PCL-loans in the second quarter of 2021 as
compared to the second quarter of 2020, and the $878,000 favorable
decrease in the first six months of 2021 compared to the same
period in 2020 is due primarily to lower average balances on loans,
and net recoveries of previously charged-off loan balances.
Total interest income declined $0.3 million to $6.5 million for
the six-month period ending June 30, 2021, compared to the same
period in 2020. This was driven primarily by an $846,000 decrease
in interest income on loans consistent with the $38.3 million
decline in the average balance of the loan portfolio. Beyond
pricing pressure/competition and the absolute low level of rates,
the current economic outlook and prospects of a sustained historic
low interest rate environment will likely continue to place
pressure on net interest margin. Exacerbating the above, the
Company had an $8.5 million higher level of excess liquidity during
the first half of 2021 compared to the same period in 2020.
Bancorp has strong liquidity and capital positions that provide
ample capacity for future growth, along with the Bank’s total
regulatory capital to risk weighted assets of 14.29% on June 30,
2021, as compared to 12.95% for the same period of 2020.
Return on average assets for the three-month period ended June
30, 2021, was 0.45%, as compared to -0.10% for the three-month
period ended June 30, 2020. Return on average equity for the
three-month period ended June 30, 2021, was 5.51%, as compared to
-1.05% for the three-month period ended June 30, 2020. The
significant provision for loan losses in 2020, precipitated by the
unknown consequences of the COVID-19 pandemic and the subsequent
stimulus driven economic turnaround, drove the higher returns.
The cost of funds decreased from 0.45% during the second quarter
of 2020 to 0.28% during the second quarter of 2021. This decrease
was primarily due to a change in funding mix, consisting of an
increase in lower cost non-time deposits as a percentage of total
funding sources, and lower rates on time deposits, reflecting the
declining interest rate environment.
The book value per share of Bancorp’s common stock was $12.43 on
June 30, 2021, as compared to $12.65 per share on June 30,
2020.
On June 30, 2021, the Bank remained above all “well-capitalized”
regulatory requirement levels. The Bank’s tier 1 risk-based capital
ratio was approximately 13.45% on June 30, 2021, as compared to
12.10% on June 30, 2020. Liquidity remained strong due to managed
cash and cash equivalents, borrowing lines with the FHLB of
Atlanta, the Federal Reserve and correspondent banks, and the size
and composition of the bond portfolio.
Balance Sheet Review
Total assets were $432.8 million on June 30, 2021, an increase
of $14.6 million or 3.49%, from $418.2 million on June 30, 2020.
Investment securities increased by $73.1 million or 86.51% to
$157.6 million as of June 30, 2021, as compared to $84.5 million
for the same period of 2020, primarily due to changes in our asset
mix resulting from significant increases in deposits from
government stimulus programs, deposit customers’ increased savings,
and decreases in loan portfolio balances. Loans, net of deferred
fees and costs, were $234.9 million on June 30, 2021, a decrease of
$50.1 million or 17.58%, from $285.0 million on June 30, 2020. Net
loans during the first half of 2021 and 2020 include loans funded
under the SBA PPP, offset by forgiveness activity by the SBA. PPP
loans carry a fixed interest rate of 1.0% with a two- or five-year
contractual maturity depending on the origination date.
Total deposits were $368.9 million on June 30, 2021, an increase
of $27.0 million or 7.90%, from $341.9 million on June 30, 2020.
Noninterest-bearing deposits were $143.3 million on June 30, 2021,
an increase of $15.7 million or 12.30%, from $127.6 million on June
30, 2020. The increase in deposits was primarily related to PPP and
other government stimulus payments leading to historically high
savings rates. Interest-bearing deposits were $225.6 million on
June 30, 2021, an increase of $11.3 million or 5.27%, from $214.3
million on June 30, 2020. Total borrowings were $25.2 million on
June 30, 2021, a decrease of $12.2 million or 32.62%, from $37.4
million on June 30, 2020. The Company participated in the Paycheck
Protection Program Liquidity Facility (“PPPLF”) established by the
Federal Reserve. On June 30, 2021, and 2020, the Company borrowed
$5.2 million and $17.4 million, respectively, under the PPPLF with
a fixed rate of 0.35% and pledged PPP loans as collateral to secure
the borrowings.
As of June 30, 2021, total stockholders’ equity was $35.4
million (8.18% of total assets), equivalent to a book value of
$12.43 per common share. Total stockholders’ equity on June 30,
2020, was $35.9 million (8.58% of total assets), equivalent to a
book value of $12.65 per common share. The reductions in the ratio
of stockholders’ equity to total assets was due to higher asset
balances from increased levels of cash equivalents and investment
securities, along with decreases to equity from the decline in
market value of the Company’s available-for-sale securities
portfolio and the $1.5 million impact of the adoption of the CECL
accounting standard for credit losses. Included in stockholders’
equity on June 30, 2021, and June 30, 2020, were unrealized losses
(net of taxes) on the Company’s available-for-sale investment
securities and derivative contracts totaling $257,000 and
unrealized gains (net of taxes) of $306,000, respectively. This
decrease in unrealized gains primarily resulted from decreasing
market interest rates year-over-year, which decreased the fair
value of the investment securities.
Nonperforming assets, which consist of nonaccrual loans,
troubled debt restructurings, accruing loans past due 90 days or
more, and other real estate owned (“OREO”), represented 0.95% of
total assets on June 30, 2021, as compared to 1.12% for the same
period of 2020. The $705,000 decrease in OREO balance and $14.6
million higher asset balance, offset by $173,000 increase in
nonaccrual loans drove the 0.17% decrease in nonperforming assets
as percentage of total assets from June 30, 2020, to June 30,
2021.
Review of Financial Results
For the three-month periods ended June 30, 2021, and
2020
Net income for the three-month period ended June 30, 2021, was
$480,000, as compared to a net loss of $96,000 for the three-month
period ended June 30, 2020.
Net interest income for the three-month period ended June 30,
2021, totaled $3.02 million, an increase of $78,000 from the
three-month period ended June 30, 2020. The increase in net
interest income was due to a $124,000 reduction in the costs of
interest-bearing deposits and borrowings, offset by $46,000 lower
interest income. Net interest margin compression drove the lower
interest income resulting from declining loan balances, increases
in cash held in interest-bearing deposits in banks, and bond
purchases in response to COVID-19 driven excess liquidity. Our
securities holdings, which generally yield less than loans,
increased as a percentage of our total assets reflecting deployment
of increased deposits.
Net interest margin for the three-month period ended June 30,
2021, was 2.92%, as compared to 3.12% for the same period of 2020.
Lower average yields and higher average balances on
interest-earning assets combined with higher average
interest-bearing funds, higher average noninterest-bearing funds
and lower cost of funds were the primary drivers of year-over-year
results. The average balance on interest-earning assets increased
$35.9 million while the yield decreased 0.36% from 3.54% to 3.18%,
when comparing the three-month periods ending June 30, 2020, and
2021. The average balance on interest-bearing funds and
noninterest-bearing funds increased $10.8 million and $23.7
million, respectively, and the cost of funds decreased 0.17%, when
comparing the three-month periods ending June 30, 2020, and 2021.
The decrease in interest expense is related to a continuing shift
in deposit mix and the ongoing downward repricing of
interest-bearing deposits. As time deposits matured, they renewed
at lower market rates, or they exited the Company and were replaced
by lower cost checking and money market accounts.
The average balance of interest-bearing deposits in banks and
investment securities increased $80.2 million from $94.6 million to
$174.8 million for the second quarter of 2021, as compared to the
same period of 2020, while the yield increased from 1.51% to 1.65%
during that same period. Much of the increase in yields for the
three-month period can be attributed to a significant increase in
investment securities available for sale.
Average loan balances decreased $44.3 million or 15.59% to
$239.9 million for the three-month period ended June 30, 2021, as
compared to $284.2 million for the same period of 2020 while the
yield increased from 4.22% to 4.29% during that same period. The
increase in loan yields for the second quarter of 2021 reflected
the accelerated recognition of net fees due to PPP loan forgiveness
by the SBA.
The Company recorded a PCL-loans benefit of $67,000 in the
second quarter of 2021 as compared to a provision for loan loss of
$487,000 in the second quarter of 2020. The $554,000 favorable
decline in PCL-loans in the second quarter of 2021 as compared to
the second quarter of 2020, is due primarily to lower average
balances on loans, net recoveries of previously charged-off loan
balances and strong credit discipline. As a result, the ACL-loans
was $2.9 million on June 30, 2021, representing 1.23% of total
loans, as compared to the allowance for loan losses of $2.4
million, or 0.84% of total loans on June 30, 2020. The ratio of the
ACL-loans and the allowance for loan losses to total loans
increased 0.39% primarily due to the Company’s adoption of the CECL
accounting standard effective January 1, 2021. The Company’s
financial statements for periods prior to January 1, 2021, were
prepared under the previous incurred loss accounting standard. No
provision for loan losses on PPP loans was recognized as the SBA
guarantees 100% of loans funded under the program.
Noninterest income for the three-month period ended June 30,
2021, was $280,000, as compared to $228,000 for the three-month
period ended June 30, 2020, an increase of $52,000 or 22.81%,
driven primarily by $39,000 higher other fees and commissions and
$14,000 gain on sale of other real estate.
For the three-month period ended June 30, 2021, noninterest
expense was $2.79 million, as compared to $2.81 million for the
three-month period ended June 30, 2020, a decrease of $14,000. The
primary contributors to the $14,000 decrease, when compared to the
three-month period ended June 30, 2020, were decreases in legal,
accounting, and other professional fees, and other expenses, offset
by increases in data processing and item processing services and
telephone costs.
For the six-month periods ended June 30, 2021, and
2020
Net income for the six-month period ended June 30, 2021, was
$1,074,000, as compared to a $174,000 for the six-month period
ended June 30, 2020.
Net interest income for the six-month period ended June 30,
2021, totaled $5.9 million, a decrease of $92,000 from the
six-month period ended June 30, 2020. The decrease in net interest
income was due to $384,000 lower interest income, offset by a
$292,000 reduction in the costs of interest-bearing deposits and
borrowings. Net interest margin compression drove the lower
interest income resulting from declining loan balances, increases
in cash held in interest-bearing deposits in banks and bond
purchases in response to COVID-19 driven excess liquidity. Our
securities holdings, which generally yield less than loans,
increased as a percentage of our total assets reflecting deployment
of increased deposits.
Net interest margin for the six-month period ended June 30,
2021, was 2.92%, as compared to 3.23% for the same period of 2020.
Lower average yields and higher average balances on
interest-earning assets combined with higher average
interest-bearing funds, higher average noninterest-bearing funds,
and lower cost of funds were the primary drivers of year-over-year
results. The average balance on interest-earning assets increased
$34.4 million while the yield decreased 0.49% from 3.69% to 3.20%,
when comparing the six-month periods ending June 30, 2020, and
2021. The average balance on interest-bearing funds and
noninterest-bearing funds increased $7.4 million and $25.7 million,
respectively, and the cost of funds decreased 0.20%, when comparing
the six-month periods ending June 30, 2020, and 2021. The decrease
in interest expense is related to a continuing shift in deposit mix
and the ongoing downward repricing of interest-bearing deposits. As
time deposits matured, they renewed at lower market rates, or they
exited the Company and were replaced by lower cost checking and
money market accounts.
The average balance of interest-bearing deposits in banks and
investment securities increased $72.7 million from $89.6 million to
$162.3 million for the six-month period ending June 30, 2021, as
compared to the same period of 2020, while the yield decreased from
1.76% to 1.54% during that same period. Much of the decrease in
yields for the six-month period can be attributed to an overall
lower interest rate environment and a significant increase in cash
held in interest-bearing deposits in banks and investment
securities available for sale during this low interest rate
period.
Average loan balances decreased $38.4 million or 13.58% to
$244.4 million for the six-month period ended June 30, 2021, as
compared to $282.8 million for the same period of 2020 while the
yield decreased from 4.30% to 4.29% during that same period.
The Company recorded a PCL-loans benefit of $471,000 for the
six-month period ending June 30, 2021, as compared to a provision
for loan loss of $407,000 for the same period in 2020. The $878,000
favorable decline in PCL-loans in 2021 as compared to 2020, is due
primarily to lower average balances on loans, net recoveries of
previously charged-off loan balances, and strong credit discipline.
As a result, the ACL-loans was $2.9 million on June 30, 2021,
representing 1.23% of total loans, as compared to the allowance for
loan losses of $2.4 million, or 0.84% of total loans on June 30,
2020. The ratio of the ACL-loans and the allowance for loan losses
to total loans increased 0.39% primarily due to the Company’s
adoption of the CECL accounting standard effective January 1, 2021.
The Company’s financial statements for periods prior to January 1,
2021, were prepared under the previous incurred loss accounting
standard. No provision for loan losses on PPP loans was recognized
as the SBA guarantees 100% of loans funded under the program.
Noninterest income for the six-month period ended June 30, 2021,
was $527,000, as compared to $484,000 for the six-month period
ended June 30, 2020, an increase of $43,000 or 8.88% driven
primarily by a $48,000 increase in other fees and commissions and a
$14,000 gain on sale of other real estate, offset by a $17,000
decrease in service charges on deposit accounts.
For the six-month period ended June 30, 2021, noninterest
expense was $5.62 million, as compared to $5.85 million for the
six-month period ended June 30, 2020, a decrease of $230,000 or
3.93%. The primary contributors to the $230,000 decrease, when
compared to the six-month period ended June 30, 2020, were
decreases in salary and employee benefits costs, occupancy, legal,
accounting, and other professional fees, loan collection costs,
FDIC insurance costs and other expenses, offset by increases in
data processing and item processing services and telephone
costs.
Glen Burnie Bancorp Information
Glen Burnie Bancorp is a bank holding company headquartered in
Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is
a locally owned community bank with 8 branch offices serving Anne
Arundel County. The Bank is engaged in the commercial and retail
banking business including the acceptance of demand and time
deposits, and the origination of loans to individuals,
associations, partnerships, and corporations. The Bank’s real
estate financing consists of residential first and second mortgage
loans, home equity lines of credit and commercial mortgage loans.
The Bank also originates automobile loans through arrangements with
local automobile dealers. Additional information is available at
www.thebankofglenburnie.com.
Forward-Looking Statements
The statements contained herein that are not 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. These statements are
evidenced by terms such as “anticipate,” “estimate,” “should,”
“expect,” “believe,” “intend,” and similar expressions. Although
these statements reflect management’s good faith beliefs and
projections, they are not guarantees of future performance and they
may not prove true. 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 SUBSIDIARY |
|
CONSOLIDATED
BALANCE SHEETS |
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
June 30, |
|
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
2,223 |
|
|
$ |
2,130 |
|
|
$ |
2,117 |
|
|
$ |
2,387 |
|
|
Interest
bearing deposits in other financial institutions |
|
24,545 |
|
|
|
38,344 |
|
|
|
34,976 |
|
|
|
32,592 |
|
|
Total Cash and Cash
Equivalents |
|
26,768 |
|
|
|
40,474 |
|
|
|
37,093 |
|
|
|
34,979 |
|
|
|
|
|
|
|
|
|
|
|
Investment
securities available for sale, at fair value |
|
157,591 |
|
|
|
134,897 |
|
|
|
114,049 |
|
|
|
84,534 |
|
|
Restricted
equity securities, at cost |
|
1,062 |
|
|
|
1,062 |
|
|
|
1,199 |
|
|
|
1,199 |
|
|
|
|
|
|
|
|
|
|
|
Loans, net
of deferred fees and costs |
|
234,871 |
|
|
|
246,853 |
|
|
|
253,772 |
|
|
|
284,963 |
|
|
Less: Allowance for credit losses(1) |
|
(2,887 |
) |
|
|
(2,921 |
) |
|
|
(1,476 |
) |
|
|
(2,392 |
) |
|
Loans, net |
|
231,984 |
|
|
|
243,932 |
|
|
|
252,296 |
|
|
|
282,571 |
|
|
|
|
|
|
|
|
|
|
|
Real estate
acquired through foreclosure |
|
- |
|
|
|
575 |
|
|
|
575 |
|
|
|
705 |
|
|
Premises and
equipment, net |
|
3,716 |
|
|
|
3,793 |
|
|
|
3,853 |
|
|
|
3,904 |
|
|
Bank owned
life insurance |
|
8,258 |
|
|
|
8,219 |
|
|
|
8,181 |
|
|
|
8,101 |
|
|
Deferred tax
assets, net |
|
1,004 |
|
|
|
1,646 |
|
|
|
142 |
|
|
|
476 |
|
|
Accrued
interest receivable |
|
1,304 |
|
|
|
1,277 |
|
|
|
1,302 |
|
|
|
1,226 |
|
|
Accrued
taxes receivable |
|
258 |
|
|
|
75 |
|
|
|
116 |
|
|
|
- |
|
|
Prepaid
expenses |
|
407 |
|
|
|
410 |
|
|
|
318 |
|
|
|
329 |
|
|
Other
assets |
|
422 |
|
|
|
364 |
|
|
|
362 |
|
|
|
176 |
|
|
Total Assets |
$ |
432,774 |
|
|
$ |
436,724 |
|
|
$ |
419,486 |
|
|
$ |
418,200 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
143,254 |
|
|
$ |
147,822 |
|
|
$ |
132,626 |
|
|
$ |
127,621 |
|
|
Interest-bearing deposits |
|
225,630 |
|
|
|
221,101 |
|
|
|
216,994 |
|
|
|
214,316 |
|
|
Total Deposits |
|
368,884 |
|
|
|
368,923 |
|
|
|
349,620 |
|
|
|
341,937 |
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
25,237 |
|
|
|
31,244 |
|
|
|
29,912 |
|
|
|
37,367 |
|
|
Defined
pension liability |
|
296 |
|
|
|
290 |
|
|
|
285 |
|
|
|
294 |
|
|
Accrued
expenses and other liabilities |
|
2,962 |
|
|
|
2,792 |
|
|
|
2,576 |
|
|
|
2,735 |
|
|
Total Liabilities |
|
397,379 |
|
|
|
403,249 |
|
|
|
382,393 |
|
|
|
382,333 |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock, par value $1, authorized 15,000,000 shares, issued
and outstanding 2,848,170, 2,845,104, 2,842,040 and 2,834,325
shares as of June 30, 2021, March 31, 2021, December 31, 2020, and
June 30, 2020, respectively. |
|
2,848 |
|
|
|
2,845 |
|
|
|
2,842 |
|
|
|
2,834 |
|
|
Additional
paid-in capital |
|
10,700 |
|
|
|
10,670 |
|
|
|
10,640 |
|
|
|
10,582 |
|
|
Retained
earnings |
|
22,104 |
|
|
|
21,909 |
|
|
|
23,071 |
|
|
|
22,145 |
|
|
Accumulated
other comprehensive (loss) gain |
|
(257 |
) |
|
|
(1,949 |
) |
|
|
540 |
|
|
|
306 |
|
|
Total Stockholders' Equity |
|
35,395 |
|
|
|
33,475 |
|
|
|
37,093 |
|
|
|
35,867 |
|
|
Total Liabilities and Stockholders'
Equity |
$ |
432,774 |
|
|
$ |
436,724 |
|
|
$ |
419,486 |
|
|
$ |
418,200 |
|
|
|
|
|
|
|
|
|
|
|
(1) Effective January
1, 2021, the Company applied ASU 2016-13, Financial Instruments –
Credit Losses (“ASC 326”), such that the allowance calculation is
based on current expected credit loss methodology (“CECL”). Prior
to January 1, 2021, the calculation was based on incurred loss
methodology. |
|
GLEN BURNIE
BANCORP AND SUBSIDIARY |
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME |
|
|
|
(dollars in thousands,
except per share amounts) |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2021 (unaudited) |
|
2020 (unaudited) |
|
2021 (unaudited) |
|
2020 (unaudited) |
|
Interest income |
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
2,568 |
|
|
$ |
2,980 |
|
|
$ |
5,205 |
|
|
$ |
6,051 |
|
Interest and
dividends on securities |
|
698 |
|
|
|
317 |
|
|
|
1,203 |
|
|
|
698 |
|
Interest on
deposits with banks and federal funds sold |
|
24 |
|
|
|
39 |
|
|
|
43 |
|
|
|
86 |
|
Total Interest Income |
|
3,290 |
|
|
|
3,336 |
|
|
|
6,451 |
|
|
|
6,835 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
Interest on
deposits |
|
158 |
|
|
|
289 |
|
|
|
325 |
|
|
|
614 |
|
Interest on
short-term borrowings |
|
116 |
|
|
|
109 |
|
|
|
232 |
|
|
|
235 |
|
Total Interest Expense |
|
274 |
|
|
|
398 |
|
|
|
557 |
|
|
|
849 |
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
3,016 |
|
|
|
2,938 |
|
|
|
5,894 |
|
|
|
5,986 |
|
(Release)
provision for credit losses |
|
(67 |
) |
|
|
487 |
|
|
|
(471 |
) |
|
|
407 |
|
Net interest income after provision
(release) |
|
3,083 |
|
|
|
2,451 |
|
|
|
6,365 |
|
|
|
5,579 |
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
37 |
|
|
|
38 |
|
|
|
77 |
|
|
|
94 |
|
Other fees
and commissions |
|
190 |
|
|
|
151 |
|
|
|
359 |
|
|
|
311 |
|
Gain on
securities sold/redeemed |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
Gain on sale
of other real estate |
|
14 |
|
|
|
- |
|
|
|
14 |
|
|
|
- |
|
Income on
life insurance |
|
39 |
|
|
|
39 |
|
|
|
77 |
|
|
|
78 |
|
Total Noninterest Income |
|
280 |
|
|
|
228 |
|
|
|
527 |
|
|
|
484 |
|
|
|
|
|
|
|
|
|
|
Noninterest expenses |
|
|
|
|
|
|
|
|
Salary and
employee benefits |
|
1,588 |
|
|
|
1,597 |
|
|
|
3,218 |
|
|
|
3,302 |
|
Occupancy
and equipment expenses |
|
304 |
|
|
|
295 |
|
|
|
606 |
|
|
|
626 |
|
Legal,
accounting and other professional fees |
|
183 |
|
|
|
252 |
|
|
|
395 |
|
|
|
504 |
|
Data
processing and item processing services |
|
248 |
|
|
|
184 |
|
|
|
505 |
|
|
|
417 |
|
FDIC
insurance costs |
|
40 |
|
|
|
48 |
|
|
|
83 |
|
|
|
99 |
|
Advertising
and marketing related expenses |
|
24 |
|
|
|
19 |
|
|
|
45 |
|
|
|
44 |
|
Loan
collection costs |
|
22 |
|
|
|
21 |
|
|
|
28 |
|
|
|
88 |
|
Telephone
costs |
|
54 |
|
|
|
43 |
|
|
|
131 |
|
|
|
90 |
|
Other
expenses |
|
329 |
|
|
|
348 |
|
|
|
610 |
|
|
|
676 |
|
Total Noninterest Expenses |
|
2,792 |
|
|
|
2,807 |
|
|
|
5,621 |
|
|
|
5,846 |
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
571 |
|
|
|
(128 |
) |
|
|
1,271 |
|
|
|
217 |
|
Income tax
expense (benefit) |
|
91 |
|
|
|
(32 |
) |
|
|
197 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
480 |
|
|
$ |
(96 |
) |
|
$ |
1,074 |
|
|
$ |
174 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per common
share |
$ |
0.17 |
|
|
$ |
(0.03 |
) |
|
$ |
0.38 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
GLEN BURNIE
BANCORP AND SUBSIDIARY |
CONSOLIDATED
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY |
For the six
months ended June 30, 2021 and 2020 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
Additional |
|
|
|
Other |
|
Total |
|
Common |
|
Paid-in |
|
Retained |
|
Comprehensive |
|
Stockholders' |
|
Stock |
|
Capital |
|
Earnings |
|
(Loss) Income |
Equity |
Balance, December 31, 2019 |
$ |
2,827 |
|
$ |
10,525 |
|
$ |
22,537 |
|
|
$ |
(209 |
) |
|
$ |
35,680 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
- |
|
|
- |
|
|
174 |
|
|
|
- |
|
|
|
174 |
|
Cash
dividends, $0.20 per share |
|
- |
|
|
- |
|
|
(566 |
) |
|
|
- |
|
|
|
(566 |
) |
Dividends
reinvested under dividend reinvestment plan |
|
7 |
|
|
57 |
|
|
- |
|
|
|
- |
|
|
|
64 |
|
Other
comprehensive income |
|
- |
|
|
- |
|
|
- |
|
|
|
515 |
|
|
|
515 |
|
Balance, June 30, 2020 |
$ |
2,834 |
|
$ |
10,582 |
|
$ |
22,145 |
|
|
$ |
306 |
|
|
$ |
35,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
Additional |
|
|
|
Other |
|
Total |
|
Common |
|
Paid-in |
|
Retained |
|
Comprehensive |
|
Stockholders' |
|
Stock |
|
Capital |
|
Earnings |
|
Income/(Loss) |
|
Equity |
Balance, December 31, 2020 |
$ |
2,842 |
|
$ |
10,640 |
|
$ |
23,071 |
|
|
$ |
540 |
|
|
$ |
37,093 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
- |
|
|
- |
|
|
1,074 |
|
|
|
- |
|
|
|
1,074 |
|
Cash
dividends, $0.20 per share |
|
- |
|
|
- |
|
|
(569 |
) |
|
|
- |
|
|
|
(569 |
) |
Dividends
reinvested under dividend reinvestment plan |
|
6 |
|
|
60 |
|
|
|
|
- |
|
|
|
66 |
|
Transition
adjustment pursuant to adoption of ASU 2016-3 to adoption of ASU
2016-3 |
|
|
|
|
|
(1,472 |
) |
|
|
|
|
(1,472 |
) |
Other
comprehensive loss |
|
- |
|
|
- |
|
|
- |
|
|
|
(797 |
) |
|
|
(797 |
) |
Balance, June 30, 2021 |
$ |
2,848 |
|
$ |
10,700 |
|
$ |
22,104 |
|
|
$ |
(257 |
) |
|
$ |
35,395 |
|
|
|
|
|
|
|
|
|
|
|
THE BANK OF
GLEN BURNIE |
CAPITAL
RATIOS |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To Be
Well |
|
|
|
|
|
|
|
|
|
|
Capitalized
Under |
|
|
|
|
|
|
To Be
Considered |
|
|
Prompt
Corrective |
|
|
|
|
|
|
Adequately Capitalized |
|
|
Action Provisions |
|
Amount |
Ratio |
|
Amount |
Ratio |
|
Amount |
Ratio |
As
of June 30, 2021: |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital |
$ |
36,160 |
13.45 |
% |
|
$ |
12,100 |
4.50 |
% |
|
$ |
17,478 |
6.50 |
% |
Total
Risk-Based Capital |
$ |
38,419 |
14.29 |
% |
|
$ |
21,511 |
8.00 |
% |
|
$ |
26,889 |
10.00 |
% |
Tier 1
Risk-Based Capital |
$ |
36,160 |
13.45 |
% |
|
$ |
16,133 |
6.00 |
% |
|
$ |
21,511 |
8.00 |
% |
Tier 1
Leverage |
$ |
36,160 |
8.58 |
% |
|
$ |
16,865 |
4.00 |
% |
|
$ |
21,082 |
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As
of March 31, 2021: |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Common
Equity Tier 1 Capital |
$ |
36,425 |
13.68 |
% |
|
$ |
11,982 |
4.50 |
% |
|
$ |
17,307 |
6.50 |
% |
Total
Risk-Based Capital |
$ |
38,720 |
14.54 |
% |
|
$ |
21,302 |
8.00 |
% |
|
$ |
26,627 |
10.00 |
% |
Tier 1
Risk-Based Capital |
$ |
36,425 |
13.68 |
% |
|
$ |
15,976 |
6.00 |
% |
|
$ |
21,302 |
8.00 |
% |
Tier 1
Leverage |
$ |
36,425 |
8.99 |
% |
|
$ |
16,206 |
4.00 |
% |
|
$ |
20,257 |
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As
of December 31, 2020: |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Common
Equity Tier 1 Capital |
$ |
36,442 |
13.09 |
% |
|
$ |
12,532 |
4.50 |
% |
|
$ |
18,101 |
6.50 |
% |
Total
Risk-Based Capital |
$ |
37,951 |
13.63 |
% |
|
$ |
22,278 |
8.00 |
% |
|
$ |
27,848 |
10.00 |
% |
Tier 1
Risk-Based Capital |
$ |
36,442 |
13.09 |
% |
|
$ |
16,709 |
6.00 |
% |
|
$ |
22,278 |
8.00 |
% |
Tier 1
Leverage |
$ |
36,442 |
9.12 |
% |
|
$ |
15,980 |
4.00 |
% |
|
$ |
19,975 |
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
As
of June 30, 2020: |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Common
Equity Tier 1 Capital |
$ |
35,386 |
12.10 |
% |
|
$ |
13,157 |
4.50 |
% |
|
$ |
19,004 |
6.50 |
% |
Total
Risk-Based Capital |
$ |
37,875 |
12.95 |
% |
|
$ |
23,389 |
8.00 |
% |
|
$ |
29,237 |
10.00 |
% |
Tier 1
Risk-Based Capital |
$ |
35,386 |
12.10 |
% |
|
$ |
17,542 |
6.00 |
% |
|
$ |
23,389 |
8.00 |
% |
Tier 1
Leverage |
$ |
35,386 |
9.32 |
% |
|
$ |
15,180 |
4.00 |
% |
|
$ |
18,975 |
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
GLEN BURNIE
BANCORP AND SUBSIDIARY |
SELECTED
FINANCIAL DATA |
(dollars in thousands,
except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Year Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
December 31, |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2020 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
432,774 |
|
|
$ |
436,724 |
|
|
$ |
418,200 |
|
|
$ |
432,774 |
|
|
$ |
418,200 |
|
|
$ |
419,486 |
|
Investment
securities |
|
157,591 |
|
|
|
134,897 |
|
|
|
84,534 |
|
|
|
157,591 |
|
|
|
84,534 |
|
|
|
114,049 |
|
Loans, (net
of deferred fees & costs) |
|
234,871 |
|
|
|
246,853 |
|
|
|
284,963 |
|
|
|
234,871 |
|
|
|
284,963 |
|
|
|
253,772 |
|
Allowance
for loan losses |
|
2,887 |
|
|
|
2,921 |
|
|
|
2,392 |
|
|
|
2,887 |
|
|
|
2,392 |
|
|
|
1,476 |
|
Deposits |
|
368,884 |
|
|
|
368,923 |
|
|
|
341,937 |
|
|
|
368,884 |
|
|
|
341,937 |
|
|
|
349,620 |
|
Borrowings |
|
25,237 |
|
|
|
31,244 |
|
|
|
37,367 |
|
|
|
25,237 |
|
|
|
37,367 |
|
|
|
29,912 |
|
Stockholders' equity |
|
35,395 |
|
|
|
33,475 |
|
|
|
35,867 |
|
|
|
35,395 |
|
|
|
35,867 |
|
|
|
37,093 |
|
Net
income |
|
480 |
|
|
|
594 |
|
|
|
(96 |
) |
|
|
1,074 |
|
|
|
174 |
|
|
|
1,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
429,499 |
|
|
$ |
414,801 |
|
|
$ |
396,633 |
|
|
$ |
422,150 |
|
|
$ |
390,171 |
|
|
$ |
400,462 |
|
Investment
securities |
|
150,556 |
|
|
|
118,606 |
|
|
|
69,729 |
|
|
|
134,581 |
|
|
|
70,254 |
|
|
|
88,088 |
|
Loans, (net
of deferred fees & costs) |
|
239,912 |
|
|
|
248,920 |
|
|
|
284,168 |
|
|
|
244,416 |
|
|
|
282,752 |
|
|
|
277,074 |
|
Deposits |
|
371,115 |
|
|
|
355,538 |
|
|
|
336,330 |
|
|
|
363,327 |
|
|
|
328,468 |
|
|
|
336,394 |
|
Borrowings |
|
20,617 |
|
|
|
20,564 |
|
|
|
20,949 |
|
|
|
20,590 |
|
|
|
22,321 |
|
|
|
24,317 |
|
Stockholders' equity |
|
34,926 |
|
|
|
36,072 |
|
|
|
36,762 |
|
|
|
35,499 |
|
|
|
36,842 |
|
|
|
37,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
Annualized
return on average assets |
|
0.45 |
% |
|
|
0.58 |
% |
|
|
-0.10 |
% |
|
|
0.51 |
% |
|
|
0.09 |
% |
|
|
0.42 |
% |
Annualized
return on average equity |
|
5.51 |
% |
|
|
6.68 |
% |
|
|
-1.05 |
% |
|
|
6.10 |
% |
|
|
0.95 |
% |
|
|
4.50 |
% |
Net interest
margin |
|
2.92 |
% |
|
|
2.93 |
% |
|
|
3.12 |
% |
|
|
2.92 |
% |
|
|
3.23 |
% |
|
|
3.18 |
% |
Dividend
payout ratio |
|
59 |
% |
|
|
48 |
% |
|
|
-296 |
% |
|
|
53 |
% |
|
|
326 |
% |
|
|
68 |
% |
Book value
per share |
$ |
12.43 |
|
|
$ |
11.77 |
|
|
$ |
12.65 |
|
|
$ |
12.43 |
|
|
$ |
12.65 |
|
|
$ |
13.05 |
|
Basic and
diluted net income per share |
|
0.17 |
|
|
|
0.21 |
|
|
|
(0.03 |
) |
|
|
0.38 |
|
|
|
0.06 |
|
|
|
0.59 |
|
Cash
dividends declared per share |
|
0.10 |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
0.40 |
|
Basic and
diluted weighted average shares outstanding |
|
2,847,191 |
|
|
|
2,843,775 |
|
|
|
2,832,974 |
|
|
|
2,845,493 |
|
|
|
2,831,174 |
|
|
|
2,835,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to loans |
|
1.23 |
% |
|
|
1.18 |
% |
|
|
0.84 |
% |
|
|
1.23 |
% |
|
|
0.84 |
% |
|
|
0.58 |
% |
Nonperforming loans to avg. loans |
|
1.72 |
% |
|
|
1.79 |
% |
|
|
1.39 |
% |
|
|
1.69 |
% |
|
|
1.40 |
% |
|
|
1.63 |
% |
Allowance
for loan losses to nonaccrual & 90+ past due loans |
|
69.9 |
% |
|
|
65.5 |
% |
|
|
60.4 |
% |
|
|
69.9 |
% |
|
|
60.4 |
% |
|
|
32.6 |
% |
Net
charge-offs annualize to avg. loans |
|
-0.06 |
% |
|
|
-0.44 |
% |
|
|
0.02 |
% |
|
|
-0.25 |
% |
|
|
0.12 |
% |
|
|
-0.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
Common
Equity Tier 1 Capital |
|
13.45 |
% |
|
|
13.68 |
% |
|
|
12.10 |
% |
|
|
13.45 |
% |
|
|
12.10 |
% |
|
|
13.09 |
% |
Tier 1
Risk-based Capital Ratio |
|
13.45 |
% |
|
|
13.68 |
% |
|
|
12.10 |
% |
|
|
13.45 |
% |
|
|
12.10 |
% |
|
|
13.09 |
% |
Leverage
Ratio |
|
8.58 |
% |
|
|
8.99 |
% |
|
|
9.32 |
% |
|
|
8.58 |
% |
|
|
9.32 |
% |
|
|
9.12 |
% |
Total
Risk-Based Capital Ratio |
|
14.29 |
% |
|
|
14.54 |
% |
|
|
12.95 |
% |
|
|
14.29 |
% |
|
|
12.95 |
% |
|
|
13.63 |
% |
For further information contact:
Jeffrey D. Harris, Chief Financial Officer
410-768-8883
jdharris@bogb.net
106 Padfield Blvd
Glen Burnie, MD 21061
Glen Burnie Bancorp (NASDAQ:GLBZ)
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