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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