Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding
company for The Bank of Glen Burnie (“Bank”), announced today a net
income of $949,000, or $0.33 per basic and diluted common share for
the three-month period ended September 30, 2020, as compared to net
income of $606,000, or $0.21 per basic and diluted common share for
the three-month period ended September 30, 2019.
Bancorp reported net income of $1,123,000, or $0.40 per basic
and diluted common share for the nine-month period ended September
30, 2020, compared to $1,060,000, or $0.38 per basic and diluted
common share for the same period in 2019. At September 30, 2020,
Bancorp had total assets of $430.9 million. Bancorp, the oldest
independent commercial bank in Anne Arundel County, paid its 113th
consecutive quarterly dividend on November 2, 2020.
“The third quarter of 2020 continued to be significantly
impacted by the COVID-19 pandemic. Much of our activity continued
to focus on addressing the issues caused by the pandemic. Our
priority was keeping our staff and clients safe and helping our
clients navigate this crisis through loan deferrals and U.S. Small
Business Association’s Payroll Protection Program (“SBA PPP”)
loans. We are proud of the effort put forth by our employees, Board
of Directors and our leadership team to serve the needs of our
customers and the local community during these difficult times.
While massive federal stimulus aided the economic recovery, future
economic outcomes are likely dependent on the path of the virus,”
said John D. Long, President and Chief Executive Officer.
"Our year-over-year earnings per share for the first nine-months
of 2020 was $0.02 higher than during the same period in 2019,
reflecting our focus on expense reduction as we work to drive
efficiencies throughout the Bank and improve our profitability.
Looking forward, we continue to seek opportunities to further
reduce our cost structure as we work to achieve an efficiency ratio
more in-line with our peers. An interest rate environment rivaling
that of the Great Recession continued to negatively impact our
margins, and therefore our profits for the third quarter. The
decrease in yields and cost of funds reflect the impact of a target
federal funds rate near zero and a flat yield curve. However, we
are encouraged by the robust deposit growth experienced this year.
The negative impact of a low interest rate environment on loan
originations combined with our outstanding credit quality,
disciplined loan pricing and a beneficial balance sheet structure,
allowed us to reduce the provision for loan losses by $530,000 for
the three-month period ended September 30, 2020 as compared to the
same period last year. We remain well capitalized and continue to
reward our shareholders, having paid quarterly cash dividends for
113 consecutive quarters.”
In closing, Mr. Long added, “As we look ahead to the remainder
of 2020, downside risks remain from the economic uncertainty and
the significant pressure from the low interest rates. Despite this,
our underlying business remains strong, benefiting from our capital
levels, conservative underwriting policies, on- and off-balance
sheet liquidity and loan diversification. We are closely monitoring
the rapid developments regarding the pandemic and remain confident
in our long-term strategic vision. I remain proud of our employees
and their ability to continue to adapt and deliver outstanding
customer service during this challenging time. Headquartered in the
dynamic Northern Anne Arundel County market, we believe our Bank is
well positioned with excellent asset quality and capital levels,
and an experienced and seasoned executive team. We remain deeply
committed to serving the financial needs of the community through
the development of new loan and deposit products.”
Highlights for the First Nine
Months of 2020
Total interest income declined $0.7 million to $10.2 million for
the nine-month period ending September 30, 2020, compared to the
same period in 2019. This was driven by a decrease in interest
income on loans consistent with declines in the average balance and
yields of this portfolio, and lower interest earned on overnight
funds, mainly attributable to lower market rates. 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 maintained
significantly higher levels of excess balance sheet liquidity
during the first nine-months of 2020 as compared to the same period
in 2019. 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 12.66% at
September 30, 2020, as compared to 13.18% for the same period of
2019.
Return on average assets for the three-month period ended
September 30, 2020 was 0.92%, as compared to 0.63% for the
three-month period ended September 30, 2019. Return on average
equity for the three-month period ended September 30, 2020 was
10.18%, as compared to 6.77% for the three-month period ended
September 30, 2019. The lower provision for credit losses and
noninterest expenses, offset by lower revenue, primarily drove the
higher returns.
The book value per share of Bancorp’s common stock was $12.86 at
September 30, 2020, as compared to $12.52 per share at September
30, 2019.
At September 30, 2020, the Bank remained above all
“well-capitalized” regulatory requirement levels. The Bank’s tier 1
risk-based capital ratio was approximately 12.10% at September 30,
2020, as compared to 12.36% at September 30, 2019. 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 $430.9 million at September 30, 2020, an
increase of $47.5 million or 12.39%, from $383.4 million at
September 30, 2019. Investment securities were $114.5 million at
September 30, 2020, an increase of $49.7 million or 76.70%, from
$64.8 million at September 30, 2019. Loans, net of deferred fees
and costs, were $274.1 million at September 30, 2020, a decrease of
$9.8 million or 3.45%, from $283.9 million at September 30, 2019.
Net loans during the first nine-months of 2020 include loans funded
under the SBA PPP. These PPP loans directly benefitted the
businesses and employees in our local communities. The Company
funded 133 PPP loans totaling approximately $17.4 million in the
second quarter of 2020. Unearned fees net of origination costs
totaled $600,000 and are being accreted based on the estimated life
of the loans. The SBA began forgiving PPP loans in October 2020 at
which point recognition of fee income was accelerated.
Total deposits were $343.9 million at September 30, 2020, an
increase of $18.6 million or 5.72%, from $325.3 million at
September 30, 2019. Noninterest-bearing deposits were $129.7
million at September 30, 2020, an increase of $18.2 million or
16.32%, from $111.5 million at September 30, 2019. The increase was
due to new deposit accounts for PPP loans and core deposit growth.
Interest-bearing deposits were $214.2 million at September 30,
2020, an increase of $0.4 million or 0.19%, from $213.8 million at
September 30, 2019. Total borrowings were $47.4 million at
September 30, 2020, an increase of $27.4 million or 137.00%, from
$20.0 million at September 30, 2019. The Company participated in
the Paycheck Protection Program Liquidity Facility (“PPPLF”)
established by the Federal Reserve. At September 30, 2020, the
Company borrowed $17.4 million under the PPPLF with a fixed rate of
0.35% and pledged PPP loans as collateral to secure the
borrowings.
Stockholders’ equity was $36.5 million at September 30, 2020, an
increase of $1.1 million or 3.11%, from $35.4 million at September
30, 2019. The increase in accumulated other comprehensive gain
associated with net unrealized losses on the available for sale
bond portfolio and increase in retained earnings and stock
issuances under the dividend reinvestment program, offset by an
increase in unrealized losses on interest rate swap contracts drove
the overall increase in stockholders’ equity.
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 1.32% of
total assets at September 30, 2020, as compared to 1.34% for the
same period of 2019. The increase in total asset balance and
nonaccrual loans, offset by lower troubled debt restructurings
drove the 0.02% decrease in nonperforming assets as percentage of
total assets from September 30, 2019 to September 30, 2020.
Review of Financial Results
For the three-month periods ended
September
30,
2020 and
2019
Net income for the three-month period ended September 30, 2020
was $949,000, as compared to net income of $606,000 for the
three-month period ended September 30, 2019, an increase of
$343,000 or 56.60%.
Net interest income for the three-month period ended September
30, 2020 totaled $3.0 million, a decrease of $148,000 from the
three-month period ended September 30, 2019 due to lower interest
income of $241,000, coupled with lower interest expense of $93,000.
The decrease in net interest income was due primarily to declining
loan balances and the impact of the low rate environment on cash
held in interest-bearing deposits in other financial institutions,
offset by reductions in the costs of interest-bearing deposits and
higher average security balances. Loans, net of deferred fees and
costs, including $17.4 million of PPP loans, decreased by $9.8
million or 3.45% to $274.1 million as of September 30, 2020, as
compared to $283.9 million for the same period of 2019. PPP loans
carry a fixed interest rate of 1.0% with a two-year contractual
maturity.
Net interest margin for the three-month period ended September
30, 2020 was 3.05%, as compared to 3.43% for the same period of
2019. Lower average yields and higher average balances on
interest-earning assets combined with higher average
interest-bearing funds and lower cost of funds were the primary
drivers of year-over-year results. The average balance on
interest-earning assets increased $27.1 million while the yield
decreased 0.51% from 3.92% to 3.41%, when comparing the three-month
periods ending September 30, 2019 and 2020. The average balance on
interest-bearing funds increased $4.8 million and the cost of funds
decreased 0.14%, when comparing the three-month periods ending
September 30, 2019 and 2020. The decrease in interest expense is
related to a reduction in higher rate time deposits. As these time
deposits matured, they renewed at lower market rates or they exited
the Company and were replaced by lower cost checking, savings and
money market accounts.
The average balance of interest-bearing deposits in other
financial institutions and investment securities increased $34.2
million from $76.6 million to $110.9 million for the third quarter
of 2020, as compared to the same period of 2019 while the yield
decreased from 2.14% to 1.53% during that same time period. Much of
the decrease in yields for the three-month period can be attributed
to an overall lower interest rate environment and a significant
increase in investment securities available for sale during this
low interest rate period. Average loan balances decreased $7.1
million to $279.8 million for the three-month period ended
September 30, 2020, as compared to $286.9 million for the same
period of 2019 while the yield decreased from 4.39% to 4.16% during
that same time period.
The provision for loan losses for the three-month period ended
September 30, 2020 was negative $669,000, as compared to a negative
$139,000 for the same period of 2019. Our loan loss provisioning
methodology is significantly tied to projected unemployment rates
which were lowered during the third quarter of 2020. The decrease
for the three-month period ended September 30, 2020 as compared to
the same period in 2019 was driven by decreases in qualitative
factors driven by macro-economic conditions, a decrease in the size
of the loan portfolio, and the overall credit-quality of the loan
portfolio. No provision for loan losses on PPP loans was recognized
as the SBA guarantees 100% of loans funded under the program. The
Company continues to gather the latest information available to
perform and update its loan loss reserve analysis. As more
information becomes available, including the economic impact of the
COVID-19 pandemic, the Company will update the loan loss reserve
analysis. The Company maintains the allowance for loan losses at a
level believed to be adequate for known and inherent risks in the
portfolio. The methodology incorporates a variety of risk
considerations, both quantitative and qualitative, in establishing
an allowance for loan losses that management believes is
appropriate at each reporting date. As a result, the allowance for
loan losses was $1.66 million at September 30, 2020, representing
0.61% of total loans, as compared to $2.31 million, or 0.81% of
total loans at September 30, 2019.
Noninterest income for the three-month period ended September
30, 2020 was $260,000, as compared to $391,000 for the three-month
period ended September 30, 2019, a decrease of $131,000 or 33.50%.
The decrease primarily resulted from lower ATM interchange fees
associated with the cancellation of the Renaissance Festival due to
COVID-19.
For the three-month period ended September 30, 2020, noninterest
expense was $2.69 million, as compared to $2.86 million for the
three-month period ended September 30, 2019, a decrease of $170,000
or 5.94%. The primary contributors to the $170,000 decrease, when
compared to the three-month period ended September 30, 2019 were
decreases in salary and employee benefits costs, legal, accounting
and other professional fees, occupancy and equipment expenses
including investments in technology and infrastructure improvements
and other expenses, offset by increases in data processing and item
processing services.
For the nine-month
periods ended September 30,
2020 and
2019
Net income for the nine-month period ended September 30, 2020
was $1,123,000, as compared to net income of $1,060,000 for the
nine-month period ended September 30, 2019, an increase of $63,000
or 5.94%.
Net interest income for the nine-month period ended September
30, 2020 totaled $9.0 million, a decrease of $400,000 from $9.4
million for nine-month period ended September 30, 2019 due to lower
interest income of $700,000, coupled with lower interest expense of
$300,000. The decrease in yields and cost of funds for the
nine-month period ended September 30, 2020 compared to the same
period in 2019 is primarily attributable to the five rate cuts by
the Federal Reserve from August 2019 through March 2020 with the
March 15th movement lowering the federal funds rate 150-basis
points and the targeted range to 0% - 0.25%. The decrease in net
interest income was due primarily to declining loan balances and
the impact of the low rate environment on cash held in
interest-bearing deposits in other financial institutions, offset
by reductions in the costs of interest-bearing deposits and higher
average security balances. Loans, net of deferred fees and costs,
including $17.4 million of PPP loans funded in the second quarter
of 2020, decreased by $9.8 million or 3.45% to $274.1 million as of
September 30, 2020, as compared to $283.9 million for the same
period of 2019. PPP loans carry a fixed interest rate of 1.0% with
a two-year contractual maturity.
Net interest margin for the nine-month period ended September
30, 2020 was 3.17%, as compared to 3.38% for the same period of
2019. Lower average yields and higher average balances on
interest-earning assets combined with lower average
interest-bearing funds and cost of funds were the primary drivers
of year-over-year results. The average balance on interest-earning
assets decreased $6.4 million while the yield decreased 0.32% from
3.91% to 3.59%, when comparing the nine-month periods ending
September 30, 2019 and 2020. The average balance on
interest-bearing funds decreased $9.9 million and the cost of funds
decreased 0.11%, when comparing the nine-month periods ending
September 30, 2019 and 2020. The decrease in interest expense is
related to a reduction in higher rate time deposit balances and
FHLB advances. As time deposits matured, they renewed at lower
market rates or they exited the Company and were replaced by lower
cost checking, savings and money market accounts.
The average balance of interest-bearing deposits in financial
institutions and investment securities increased $18.6 million from
$78.1 million to $96.7 million for the nine-month period ending
September 30, 2020, as compared to the same period of 2019 while
the yield decreased from 2.28% to 1.67% during that same time
period. Much of the decrease in yields for the nine-month period
can be attributed to an overall lower interest rate environment and
a significant increase in investment securities available for sale
during this low interest rate period.
Average loan balances decreased $12.2 million to $281.8 million
for the nine-month period ended September 30, 2020, as compared to
$294.0 million for the same period of 2019 while the yield
decreased from 4.34% to 4.25% during that same time period. The
decrease in loan yields is primarily attributable to the runoff of
higher yielding loans and origination of lower yielding loans in
the current low interest rate environment, rate cuts by the Federal
Reserve from August 2019 through March 2020 and the origination of
$17.4 million of SBA PPP loans with rates of 1.00%.
The provision for loan losses for the nine-month period ended
September 30, 2020 was negative $263,000, as compared to $65,000
for the same period of 2019. The decrease for the nine-month period
ended September 30, 2020 as compared to the same period in 2019 was
driven by decreases in qualitative factors driven macro-economic
conditions, a decrease in the size of the loan portfolio, and the
overall credit-quality of the loan portfolio. 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 nine-month period ended September 30,
2020 was $743,000, as compared to $955,000 for the nine-month
period ended September 30, 2019, a decrease of $212,000 or 22.20%
driven by lower ATM interchange fees related to the COVID-19
related cancellation of the Renaissance Festival.
For the nine-month period ended September 30, 2020, noninterest
expense was $8.54 million, as compared to $8.92 million for the
nine-month period ended September 30, 2019, a decrease of $386,000
or 4.33%. The primary contributors to the $386,000 decrease, when
compared to the nine-month period ended September 30, 2019 were
decreases in salary and employee benefits costs, occupancy and
equipment expenses including investments in technology and
infrastructure improvements, legal, accounting and other
professional fees and other expenses primarily litigation
settlement costs, offset by increases in data processing and item
processing services.
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 |
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CONSOLIDATED BALANCE SHEETS |
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|
(dollars in thousands) |
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|
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|
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|
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September 30, |
|
June 30, |
|
December 31, |
|
September 30, |
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(audited) |
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
2,196 |
|
|
$ |
2,387 |
|
|
$ |
2,420 |
|
|
$ |
3,678 |
|
|
Interest bearing deposits in other financial institutions |
|
24,857 |
|
|
|
32,592 |
|
|
|
10,870 |
|
|
|
15,893 |
|
|
Total Cash and Cash Equivalents |
|
27,053 |
|
|
|
34,979 |
|
|
|
13,290 |
|
|
|
19,571 |
|
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale, at fair value |
|
114,461 |
|
|
|
84,534 |
|
|
|
71,486 |
|
|
|
64,817 |
|
|
Restricted equity securities, at cost |
|
1,624 |
|
|
|
1,199 |
|
|
|
1,437 |
|
|
|
1,225 |
|
|
|
|
|
|
|
|
|
|
|
Loans, net of deferred fees and costs |
|
274,082 |
|
|
|
284,963 |
|
|
|
284,738 |
|
|
|
283,889 |
|
|
Less: Allowance for loan losses |
|
(1,663 |
) |
|
|
(2,392 |
) |
|
|
(2,066 |
) |
|
|
(2,307 |
) |
|
Loans, net |
|
272,419 |
|
|
|
282,571 |
|
|
|
282,672 |
|
|
|
281,582 |
|
|
|
|
|
|
|
|
|
|
|
Real estate acquired through foreclosure |
|
705 |
|
|
|
705 |
|
|
|
705 |
|
|
|
705 |
|
|
Premises and equipment, net |
|
3,878 |
|
|
|
3,904 |
|
|
|
3,761 |
|
|
|
3,820 |
|
|
Bank owned life insurance |
|
8,141 |
|
|
|
8,101 |
|
|
|
8,023 |
|
|
|
7,982 |
|
|
Deferred tax assets, net |
|
499 |
|
|
|
476 |
|
|
|
672 |
|
|
|
1,013 |
|
|
Accrued interest receivable |
|
1,367 |
|
|
|
1,226 |
|
|
|
961 |
|
|
|
976 |
|
|
Accrued taxes receivable |
|
- |
|
|
|
- |
|
|
|
1,221 |
|
|
|
982 |
|
|
Prepaid expenses |
|
393 |
|
|
|
329 |
|
|
|
406 |
|
|
|
557 |
|
|
Other assets |
|
382 |
|
|
|
176 |
|
|
|
308 |
|
|
|
208 |
|
|
Total Assets |
$ |
430,922 |
|
|
$ |
418,200 |
|
|
$ |
384,942 |
|
|
$ |
383,438 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
129,745 |
|
|
$ |
127,621 |
|
|
$ |
107,158 |
|
|
$ |
111,453 |
|
|
Interest-bearing deposits |
|
214,195 |
|
|
|
214,316 |
|
|
|
214,282 |
|
|
|
213,813 |
|
|
Total Deposits |
|
343,940 |
|
|
|
341,937 |
|
|
|
321,440 |
|
|
|
325,266 |
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
37,367 |
|
|
|
37,367 |
|
|
|
25,000 |
|
|
|
20,000 |
|
|
Long-term borrowings |
|
10,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Defined pension liability |
|
282 |
|
|
|
294 |
|
|
|
317 |
|
|
|
311 |
|
|
Accrued expenses and other liabilities |
|
2,828 |
|
|
|
2,735 |
|
|
|
2,505 |
|
|
|
2,493 |
|
|
Total Liabilities |
|
394,417 |
|
|
|
382,333 |
|
|
|
349,262 |
|
|
|
348,070 |
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|
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|
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STOCKHOLDERS' EQUITY |
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Common stock, par value $1, authorized 15,000,000 shares, issued
and outstanding 2,838,357, 2,834,325, 2,827,473, and 2,824,412
shares as of September 30, 2020, June 30, 2020, December 31, 2019,
and September 30, 2019, respectively. |
|
2,839 |
|
|
|
2,834 |
|
|
|
2,827 |
|
|
|
2,824 |
|
|
Additional paid-in capital |
|
10,610 |
|
|
|
10,582 |
|
|
|
10,525 |
|
|
|
10,495 |
|
|
Retained earnings |
|
22,810 |
|
|
|
22,145 |
|
|
|
22,537 |
|
|
|
22,280 |
|
|
Accumulated other comprehensive gain (loss) |
|
246 |
|
|
|
306 |
|
|
|
(209 |
) |
|
|
(231 |
) |
|
Total Stockholders' Equity |
|
36,505 |
|
|
|
35,867 |
|
|
|
35,680 |
|
|
|
35,368 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
430,922 |
|
|
$ |
418,200 |
|
|
$ |
384,942 |
|
|
$ |
383,438 |
|
|
GLEN BURNIE BANCORP AND SUBSIDIARY |
|
|
CONSOLIDATED STATEMENTS OF INCOME |
|
|
(dollars in thousands, except per share amounts) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
2,924 |
|
|
$ |
3,176 |
|
|
$ |
8,974 |
|
|
$ |
9,543 |
|
|
Interest and dividends on securities |
|
404 |
|
|
|
326 |
|
|
|
1,103 |
|
|
|
1,061 |
|
|
Interest on deposits with banks and federal funds sold |
|
21 |
|
|
|
88 |
|
|
|
107 |
|
|
|
270 |
|
|
Total Interest Income |
|
3,349 |
|
|
|
3,590 |
|
|
|
10,184 |
|
|
|
10,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
Interest on deposits |
|
237 |
|
|
|
336 |
|
|
|
851 |
|
|
|
1,001 |
|
|
Interest on short-term borrowings |
|
110 |
|
|
|
110 |
|
|
|
345 |
|
|
|
465 |
|
|
Interest on long-term borrowings |
|
6 |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
Total Interest Expense |
|
353 |
|
|
|
446 |
|
|
|
1,202 |
|
|
|
1,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
2,996 |
|
|
|
3,144 |
|
|
|
8,982 |
|
|
|
9,408 |
|
|
Provision for loan losses |
|
(669 |
) |
|
|
(139 |
) |
|
|
(263 |
) |
|
|
65 |
|
|
Net interest income after provision for loan losses |
|
3,665 |
|
|
|
3,283 |
|
|
|
9,245 |
|
|
|
9,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
37 |
|
|
|
62 |
|
|
|
132 |
|
|
|
187 |
|
|
Other fees and commissions |
|
179 |
|
|
|
287 |
|
|
|
489 |
|
|
|
643 |
|
|
Gain on securities sold |
|
4 |
|
|
|
- |
|
|
|
4 |
|
|
|
3 |
|
|
Income on life insurance |
|
40 |
|
|
|
42 |
|
|
|
118 |
|
|
|
122 |
|
|
Total Noninterest Income |
|
260 |
|
|
|
391 |
|
|
|
743 |
|
|
|
955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses |
|
|
|
|
|
|
|
Salary and employee benefits |
|
1,595 |
|
|
|
1,685 |
|
|
|
4,897 |
|
|
|
5,140 |
|
|
Occupancy and equipment expenses |
|
283 |
|
|
|
340 |
|
|
|
909 |
|
|
|
1,040 |
|
|
Legal, accounting and other professional fees |
|
233 |
|
|
|
259 |
|
|
|
737 |
|
|
|
794 |
|
|
Data processing and item processing services |
|
234 |
|
|
|
109 |
|
|
|
651 |
|
|
|
328 |
|
|
FDIC insurance costs |
|
41 |
|
|
|
- |
|
|
|
141 |
|
|
|
116 |
|
|
Advertising and marketing related expenses |
|
22 |
|
|
|
27 |
|
|
|
65 |
|
|
|
79 |
|
|
Loan collection costs |
|
5 |
|
|
|
22 |
|
|
|
92 |
|
|
|
62 |
|
|
Telephone costs |
|
56 |
|
|
|
62 |
|
|
|
146 |
|
|
|
183 |
|
|
Other expenses |
|
224 |
|
|
|
352 |
|
|
|
901 |
|
|
|
1,181 |
|
|
Total Noninterest Expenses |
|
2,693 |
|
|
|
2,856 |
|
|
|
8,539 |
|
|
|
8,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
1,232 |
|
|
|
818 |
|
|
|
1,449 |
|
|
|
1,375 |
|
|
Income tax (benefit) expense |
|
283 |
|
|
|
212 |
|
|
|
326 |
|
|
|
315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
949 |
|
|
$ |
606 |
|
|
$ |
1,123 |
|
|
$ |
1,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per common share |
$ |
0.33 |
|
|
$ |
0.21 |
|
|
$ |
0.40 |
|
|
$ |
0.38 |
|
|
GLEN BURNIE BANCORP AND SUBSIDIARY |
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY |
|
For the nine months ended September 30, 2020 and 2019
(unaudited) |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
Additional |
|
|
|
Other |
|
Total |
|
|
|
Common |
|
Paid-in |
|
Retained |
|
Comprehensive |
|
Stockholders' |
|
|
|
Stock |
|
Capital |
|
Earnings |
|
(Loss) |
|
Equity |
|
Balance, December 31, 2018 |
$ |
2,814 |
|
$ |
10,401 |
|
$ |
22,066 |
|
|
$ |
(1,230 |
) |
|
$ |
34,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
- |
|
|
- |
|
|
1,060 |
|
|
|
- |
|
|
|
1,060 |
|
|
Cash dividends, $0.30 per share |
|
- |
|
|
- |
|
|
(846 |
) |
|
|
- |
|
|
|
(846 |
) |
|
Dividends reinvested under |
|
|
|
|
|
|
|
|
|
|
dividend reinvestment plan |
|
10 |
|
|
94 |
|
|
- |
|
|
|
- |
|
|
|
104 |
|
|
Other comprehensive income |
|
- |
|
|
- |
|
|
- |
|
|
|
999 |
|
|
|
999 |
|
|
Balance, September 30, 2019 |
$ |
2,824 |
|
$ |
10,495 |
|
$ |
22,280 |
|
|
$ |
(231 |
) |
|
$ |
35,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
- |
|
|
- |
|
|
1,123 |
|
|
|
- |
|
|
|
1,123 |
|
|
Cash dividends, $0.30 per share |
|
- |
|
|
- |
|
|
(850 |
) |
|
|
- |
|
|
|
(850 |
) |
|
Dividends reinvested under |
|
|
|
|
|
|
|
|
|
|
dividend reinvestment plan |
|
12 |
|
|
85 |
|
|
- |
|
|
|
- |
|
|
|
97 |
|
|
Other comprehensive income |
|
- |
|
|
- |
|
|
- |
|
|
|
455 |
|
|
|
455 |
|
|
Balance, September 30, 2020 |
$ |
2,839 |
|
$ |
10,610 |
|
$ |
22,810 |
|
|
$ |
246 |
|
|
$ |
36,505 |
|
|
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 September 30, 2020: |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital |
$ |
35,993 |
12.10 |
% |
|
$ |
13,391 |
4.50 |
% |
|
$ |
19,343 |
6.50 |
% |
|
Total Risk-Based Capital |
$ |
37,685 |
12.66 |
% |
|
$ |
23,807 |
8.00 |
% |
|
$ |
29,758 |
10.00 |
% |
|
Tier 1 Risk-Based Capital |
$ |
35,993 |
12.10 |
% |
|
$ |
17,855 |
6.00 |
% |
|
$ |
23,807 |
8.00 |
% |
|
Tier 1 Leverage |
$ |
35,993 |
9.23 |
% |
|
$ |
15,600 |
4.00 |
% |
|
$ |
19,500 |
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019: |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital |
$ |
35,693 |
12.47 |
% |
|
$ |
12,878 |
4.50 |
% |
|
$ |
18,602 |
6.50 |
% |
|
Total Risk-Based Capital |
$ |
37,797 |
13.21 |
% |
|
$ |
22,895 |
8.00 |
% |
|
$ |
28,619 |
10.00 |
% |
|
Tier 1 Risk-Based Capital |
$ |
35,693 |
12.47 |
% |
|
$ |
17,171 |
6.00 |
% |
|
$ |
22,895 |
8.00 |
% |
|
Tier 1 Leverage |
$ |
35,693 |
9.26 |
% |
|
$ |
15,414 |
4.00 |
% |
|
$ |
19,268 |
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2019: |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital |
$ |
35,216 |
12.36 |
% |
|
$ |
12,822 |
4.50 |
% |
|
$ |
18,520 |
6.50 |
% |
|
Total Risk-Based Capital |
$ |
37,561 |
13.18 |
% |
|
$ |
22,794 |
8.00 |
% |
|
$ |
28,493 |
10.00 |
% |
|
Tier 1 Risk-Based Capital |
$ |
35,216 |
12.36 |
% |
|
$ |
17,096 |
6.00 |
% |
|
$ |
22,794 |
8.00 |
% |
|
Tier 1 Leverage |
$ |
35,216 |
9.26 |
% |
|
$ |
15,215 |
4.00 |
% |
|
$ |
19,019 |
5.00 |
% |
|
GLEN BURNIE BANCORP AND SUBSIDIARY |
|
|
|
|
|
|
|
SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Year Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
December 31, |
|
|
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
430,922 |
|
|
$ |
418,200 |
|
|
$ |
383,438 |
|
|
$ |
430,922 |
|
|
$ |
383,438 |
|
|
$ |
383,721 |
|
|
Investment securities |
|
|
114,461 |
|
|
|
84,534 |
|
|
|
64,817 |
|
|
|
114,461 |
|
|
|
64,817 |
|
|
|
71,486 |
|
|
Loans, (net of deferred fees & costs) |
|
274,082 |
|
|
|
284,963 |
|
|
|
283,889 |
|
|
|
274,082 |
|
|
|
283,889 |
|
|
|
284,738 |
|
|
Allowance for loan losses |
|
|
1,663 |
|
|
|
2,392 |
|
|
|
2,307 |
|
|
|
1,663 |
|
|
|
2,307 |
|
|
|
2,066 |
|
|
Deposits |
|
|
343,940 |
|
|
|
341,937 |
|
|
|
325,266 |
|
|
|
343,940 |
|
|
|
325,266 |
|
|
|
321,440 |
|
|
Borrowings |
|
|
47,367 |
|
|
|
37,367 |
|
|
|
20,000 |
|
|
|
47,367 |
|
|
|
20,000 |
|
|
|
25,000 |
|
|
Stockholders' equity |
|
|
36,505 |
|
|
|
35,867 |
|
|
|
35,368 |
|
|
|
36,505 |
|
|
|
35,368 |
|
|
|
35,680 |
|
|
Net income (loss) |
|
|
949 |
|
|
|
(96 |
) |
|
|
606 |
|
|
|
1,123 |
|
|
|
1,060 |
|
|
|
1,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
408,450 |
|
|
$ |
396,633 |
|
|
$ |
380,853 |
|
|
$ |
396,258 |
|
|
$ |
387,885 |
|
|
$ |
387,315 |
|
|
Investment securities |
|
|
96,635 |
|
|
|
69,729 |
|
|
|
61,456 |
|
|
|
79,048 |
|
|
|
64,338 |
|
|
|
65,315 |
|
|
Loans, (net of deferred fees & costs) |
|
279,817 |
|
|
|
284,169 |
|
|
|
286,944 |
|
|
|
281,773 |
|
|
|
293,958 |
|
|
|
292,075 |
|
|
Deposits |
|
|
344,132 |
|
|
|
336,329 |
|
|
|
322,893 |
|
|
|
333,689 |
|
|
|
323,737 |
|
|
|
324,565 |
|
|
Borrowings |
|
|
24,487 |
|
|
|
20,949 |
|
|
|
20,000 |
|
|
|
23,043 |
|
|
|
27,323 |
|
|
|
25,573 |
|
|
Stockholders' equity |
|
|
37,089 |
|
|
|
36,763 |
|
|
|
35,489 |
|
|
|
36,919 |
|
|
|
34,938 |
|
|
|
35,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
0.92 |
% |
|
|
-0.10 |
% |
|
|
0.63 |
% |
|
|
0.38 |
% |
|
|
0.37 |
% |
|
|
0.41 |
% |
|
Annualized return on average equity |
|
10.18 |
% |
|
|
-1.05 |
% |
|
|
6.77 |
% |
|
|
4.06 |
% |
|
|
4.06 |
% |
|
|
4.55 |
% |
|
Net interest margin |
|
|
3.05 |
% |
|
|
3.12 |
% |
|
|
3.43 |
% |
|
|
3.17 |
% |
|
|
3.38 |
% |
|
|
3.39 |
% |
|
Dividend payout ratio |
|
|
30 |
% |
|
|
-296 |
% |
|
|
47 |
% |
|
|
76 |
% |
|
|
80 |
% |
|
|
71 |
% |
|
Book value per share |
|
$ |
12.86 |
|
|
$ |
12.65 |
|
|
$ |
12.52 |
|
|
$ |
12.86 |
|
|
$ |
12.52 |
|
|
$ |
12.62 |
|
|
Basic and diluted net income per share |
|
|
0.33 |
|
|
|
(0.03 |
) |
|
|
0.21 |
|
|
|
0.40 |
|
|
|
0.38 |
|
|
|
0.57 |
|
|
Cash dividends declared per share |
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
|
0.30 |
|
|
|
0.30 |
|
|
|
0.40 |
|
|
Basic and diluted weighted average shares outstanding |
|
|
2,836,998 |
|
|
|
2,832,974 |
|
|
|
2,823,271 |
|
|
|
2,833,130 |
|
|
|
2,819,952 |
|
|
|
2,821,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to loans |
|
|
0.61 |
% |
|
|
0.84 |
% |
|
|
0.81 |
% |
|
|
0.61 |
% |
|
|
0.81 |
% |
|
|
0.73 |
% |
|
Nonperforming loans to avg. loans |
|
|
1.78 |
% |
|
|
1.39 |
% |
|
|
1.55 |
% |
|
|
1.77 |
% |
|
|
1.51 |
% |
|
|
1.42 |
% |
|
Allowance for loan losses to nonaccrual & 90+ past due
loans |
|
|
33.4 |
% |
|
|
60.4 |
% |
|
|
54.3 |
% |
|
|
33.4 |
% |
|
|
54.3 |
% |
|
|
49.8 |
% |
|
Net charge-offs annualize to avg. loans |
|
|
0.09 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.07 |
% |
|
|
0.39 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital |
|
|
12.10 |
% |
|
|
12.10 |
% |
|
|
12.36 |
% |
|
|
12.10 |
% |
|
|
12.36 |
% |
|
|
12.47 |
% |
|
Tier 1 Risk-based Capital Ratio |
|
|
12.10 |
% |
|
|
12.10 |
% |
|
|
12.36 |
% |
|
|
12.10 |
% |
|
|
12.36 |
% |
|
|
12.47 |
% |
|
Leverage Ratio |
|
|
9.23 |
% |
|
|
9.32 |
% |
|
|
9.26 |
% |
|
|
9.23 |
% |
|
|
9.26 |
% |
|
|
9.26 |
% |
|
Total Risk-Based Capital Ratio |
|
|
12.66 |
% |
|
|
12.95 |
% |
|
|
13.18 |
% |
|
|
12.66 |
% |
|
|
13.18 |
% |
|
|
13.21 |
% |
|
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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