8-K
Glen Burnie Bancorp (GLBZ)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 5, 2021
GLEN BURNIE BANCORP
(Exact name of registrant as specified in its charter)
| Maryland | 0-24047 | 52-1782444 |
|---|---|---|
| (State or Other Jurisdiction | (Commission File Number) | (IRS Employer |
| of Incorporation) | Identification No.) |
101 Crain Highway, S.E., Glen Burnie, Maryland21061
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code: (410) 766-3300
Inapplicable
(Former Name or Former Address if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written<br>communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br>material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock | GLBZ | Nasdaq Capital Market |
INFORMATION TO BE INCLUDED IN THE REPORT
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On August 5, 2021, Glen Burnie Bancorp (the “Company”) announced its results of operations for its fiscal quarter ended June 30, 2021. A copy of the Company’s press release announcing such results dated August 5, 2021 is attached hereto as Exhibit 99.1. This Form 8-K and the attached exhibit are furnished to, but not filed with, the Securities and Exchange Commission (“SEC”) and shall not be deemed to be incorporated by reference into any of the Company’s filings with the SEC under the Securities Act of 1933.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(c) Exhibits
The following exhibits are filed herewith:
Exhibit No.
| 99.1 | Press Release dated August 5, 2021 |
|---|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| GLEN BURNIE BANCORP | ||
|---|---|---|
| (Registrant) | ||
| Date: August 5, 2021 | By: | /s/ John D. Long |
| John D. Long | ||
| Chief Executive Officer |
Exhibit 99.1
| Press Release | For Immediate Release |
|---|
Date:August 5, 2021
GLENBURNIE BANCORP ANNOUNCES
SECONDQUARTER 2021 RESULTS
GLENBURNIE, MD (August 5, 2021) – 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.
For further information contact:
Jeffrey D. Harris, Chief Financial Officer
410-768-8883
106 Padfield Blvd
Glen Burnie, MD 21061
GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
| March 31, | December 31, | June 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2020 | |||||||||
| (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 |
All values are in US Dollars.
| (1) | Effective<br>January 1, 2021, the Company applied ASU 2016-13, Financial Instruments – Credit Losses (“ASC 326”), such that the<br>allowance calculation is based on current expected credit loss methodology (“CECL”). Prior to January 1, 2021,<br>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 <br> June 30, | Six Months Ended <br> June 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021<br><br><br> (unaudited) | 2020<br><br><br> (unaudited) | 2021<br> <br><br>(unaudited) | 2020<br><br><br> (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
(dollarsin thousands)
| Accumulated | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Additional | Other | Total | ||||||||||
| Paid-in | Retained | Comprehensive | Stockholders' | |||||||||
| 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 | - | - | (1,472 | ) | - | (1,472 | ) | |||||
| Other comprehensive loss | - | - | - | (797 | ) | (797 | ) | |||||
| Balance, June 30, 2021 | 2,848 | $ | 10,700 | $ | 22,104 | $ | (257 | ) | $ | 35,395 |
All values are in US Dollars.
THE BANK OF GLEN BURNIE
CAPITAL RATIOS
(dollarsin 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 | % |
GLENBURNIE 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<br> 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 | % |