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Form 8-K GLEN BURNIE BANCORP For: Aug 08

August 8, 2022 2:47 PM EDT

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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 8, 2022

 

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, Maryland 21061

(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 communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement 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 8, 2022, Glen Burnie Bancorp (the “Company”) announced its results of operations for its fiscal quarter ended June 30, 2022. A copy of the Company’s press release announcing such results dated August 8, 2022 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.

 

99.1Press Release dated August 8, 2022
   
 104Cover Page Interactive Data File (embedded as Inline XBRL document)

 

 

 

 

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 8, 2022 By: /s/ John D. Long
    John D. Long
    Chief Executive Officer

 

 

 

Exhibit 99.1 

 

 

 

Press Release For Immediate Release
  Date: August 8, 2022

 

 

 

GLEN BURNIE BANCORP ANNOUNCES

 

SECOND QUARTER 2022 RESULTS

 

GLEN BURNIE, MD (August 8, 2022) – Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income of $309,000, or $0.11 per basic and diluted common share for the three-month period ended June 30, 2022, compared to net income of $480,000, or $0.17 per basic and diluted common share for the three-month period ended June 30, 2021. Bancorp reported net income of $540,000, or $0.19 per basic and diluted common share for the six-month period ended June 30, 2022, compared to $1,074,000, or $0.38 per basic and diluted common share for the same period in 2021. On June 30, 2022, Bancorp had total assets of $429.4 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, will pay its 120th consecutive quarterly dividend on August 8, 2022.

 

“The decrease in earnings during the second quarter of 2022, as compared to the same period of 2021, was primarily due to decreases in our net interest income, although we began to see the positive impact of rising interest rates,” said John D. Long, President and Chief Executive Officer. “We partially mitigated our declining net interest margin through repricing of new and existing loans at higher yields and through deployment of excess liquidity held in fed funds into higher yielding securities during the first half of 2022. Despite declining loan balances in a volatile market environment, we've built a solid earnings stream that should continue to deliver solid financial outcomes for the Company and our shareholders, even as interest rates continue to rise, and fears of an economic downturn continue to develop. Anne Arundel County, our primary operating area, remains a vibrant market and should weather this period of economic uncertainty. Non-performing assets remain low, and we maintain our conservative approach to credit underwriting. As with most companies, inflation pressure and wage increase from a tight labor market are likely to cause increases in our non-interest expense, which we are closely monitoring and managing. Historically, the Company has navigated both rising rate and recessionary cycles with good outcomes, and we believe that the Company and the Bank are well positioned to weather the current economic environment.”

 

In closing, Mr. Long added, “We remain very positive about the Company’s performance during the second half of 2022. We see strong pipelines for business growth across our markets. We also have a high-quality balance sheet and business mix that we believe will support strong performance regardless of future economic conditions.”

 

 

 

 

Highlights for the First Six Months of 2022

 

Total interest income declined $0.5 million to $5.9 million for the six-month period ending June 30, 2022, compared to the same period in 2021. This resulted from a $949,000 decrease in interest income on loans consistent with the $39.9 million decline in the average balance of the loan portfolio. The decline in interest income was driven by the repricing impact on earning asset yields of the change in asset mix from higher yielding loans to lower yielding investment securities, and the investment of excess liquidity derived from deposit growth in investment securities. Loan pricing pressure/competition will likely continue to place pressure on the Company’s net interest margin. Exacerbating the above, the Company had a $24.6 million higher level of lower yielding cash and cash equivalents during the first half of 2022 compared to the same period in 2021.

 

Due to minimal charge-offs, recoveries on previously charged off loans, decline in the loan portfolio, and strong credit discipline, the Company continued to release portions of its allowance for credit losses on loans in the first half of 2022. The Company expects that its strong liquidity and capital positions, along with the Bank’s total regulatory capital to risk weighted assets of 15.90% on June 30, 2022, compared to 14.29% for the same period of 2021, will provide ample capacity for future growth.

 

Return on average assets for the three-month period ended June 30, 2022, was 0.29%, compared to 0.45% for the three-month period ended June 30, 2021. Return on average equity for the three-month period ended June 30, 2022, was 4.99%, compared to 5.51% for the three-month period ended June 30, 2021. Lower net income and higher average asset balances primarily drove the lower return on average assets, while lower net income and a lower average equity balance, primarily drove the higher return on average equity.

 

The cost of funds decreased from 0.28% during the second quarter of 2021 to 0.22% during the second quarter of 2022. This 0.06% 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 $7.44 on June 30, 2022, compared to $12.43 per share on June 30, 2021. The decline was primarily due to the unrealized losses on available for sale securities, which was caused by the rapid increase in market interest rates.

 

On June 30, 2022, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 15.13% on June 30, 2022, compared to 13.45% on June 30, 2021. 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 $429.4 million on June 30, 2022, a decrease of $3.4 million or 0.77%, from $432.8 million on June 30, 2021. Investment securities increased by $200,000 or 0.15% to $157.8 million as of June 30, 2022, compared to a $157.6 million for the same period of 2021. Loans, net of deferred fees and costs, were $200.7 million on June 30, 2022, a decrease of $34.2 million or 16.24%, from $234.9 million on June 30, 2021. Cash and cash equivalents increased $24.6 million or 39.56%, from June 30, 2021, to June 30, 2022. Deferred tax assets increased $5.4 million or 569.94%, from June 30, 2021, to June 30, 2022, due to the tax effects of unrealized losses on available for sale securities.

 

Total deposits were $385.8 million on June 30, 2022, an increase of $16.9 million or 4.40%, from $368.9 million on June 30, 2021. Noninterest-bearing deposits were $151.7 million on June 30, 2022, an increase of $8.4 million or 5.41%, from $143.3 million on June 30, 2021. Interest-bearing deposits were $234.1 million on June 30, 2022, an increase of $8.5 million or 3.72%, from $225.6 million on June 30, 2021. Total borrowings were $20.0 million on June 30, 2022, a decrease of $5.2 million or 20.75%, from $25.2 million on June 30, 2021. The Company participated in the Paycheck Protection Program Liquidity Facility (“PPPLF”) established by the Federal Reserve. On June 30, 2021, the Company borrowed $5.2 million, under the PPPLF with a fixed rate of 0.35% and pledged PPP loans as collateral to secure the borrowings.

 

 

 

 

As of June 30, 2022, total stockholders’ equity was $21.3 million (4.95% of total assets), equivalent to a book value of $7.44 per common share. Total stockholders’ equity on June 30, 2021, was $35.4 million (8.18% of total assets), equivalent to a book value of $12.43 per common share. The reduction in the ratio of stockholders’ equity to total assets was primarily due to the $14.9 million after-tax decline in market value of the Company’s available-for-sale securities portfolio. These increases in unrealized losses primarily resulted from increasing market interest rates year-over-year, which decreased the fair value of the investment securities.

 

Asset quality, which has trended within a narrow range over the past several years, has remained sound and reflected no pandemic-related impact on June 30, 2022. 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 0.05% of total assets on June 30, 2022, compared to 0.02% on December 31, 2021, demonstrating positive asset quality trends across the portfolio. The decrease in total assets from December 31, 2021, to June 30, 2022, drove the change. The allowance for credit losses on loans was $2.2 million, or 1.12% of total loans, as of June 30, 2022, compared to $2.5 million, or 1.17% of total loans, as of December 31, 2021. The allowance for credit losses for unfunded commitments was $413,000 as of June 30, 2022, compared to $371,000 as of December 31, 2021.

 

Review of Financial Results

 

For the three-month periods ended June 30, 2022, and 2021

 

Net income for the three-month period ended June 30, 2022, was $309,000, compared to $480,000 for the three-month period ended June 30, 2021.

 

Net interest income for the three-month period ended June 30, 2022, totaled $2.8 million, a decrease of $213,000 from the three-month period ended June 30, 2021. The decrease in net interest income was due to a $260,000 reduction in interest income, offset by $47,000 lower 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 security purchases in response to COVID-19 surge-deposit balances. Our securities holdings, which generally yield less than loans, increased as a percentage of our total assets reflecting increased deployment of cash balances.

 

Net interest margin for the three-month period ended June 30, 2022, was 2.61%, compared to 2.92% for the same period of 2021. 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 $16.8 million while the yield decreased 0.36% from 3.18% to 2.82%, when comparing the three-month periods ending June 30, 2021, and 2022. The average balance on interest-bearing funds and noninterest-bearing funds increased $9.0 million and $6.6 million, respectively, and the cost of funds decreased 0.06%, when comparing the three-month periods ending June 30, 2021, and 2022. 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 $55.1 million from $174.8 million to $229.9 million for the second quarter of 2022, compared to the same period of 2021. While the yield decreased from 1.65% to 1.64% during that same period. The decrease in yields for the three-month period can be attributed to the change in mix of cash held in interest-bearing deposits in banks and investment securities available for sale.

 

 

 

 

Average loan balances decreased $38.3 million to $201.6 million for the three-month period ended June 30, 2022, compared to $239.9 million for the same period of 2021, while the yield decreased from 4.29% to 4.16% during that same period. The decrease in loan yields for the second quarter of 2022 reflected the accelerated runoff of the lower yielding indirect automobile loan portfolio.

 

The release of allowance for credit loss on loans for the three-month period ended June 30, 2022, was $116,000, compared to a release of $67,000 for the same period of 2021. The increase in the release for the three-month period ended June 30, 2022, when compared to the three-month period ended June 30, 2021, primarily reflects a $24.7 million decrease in the reservable balance of the loan portfolio (excluding PPP loans) and an 11% decrease in the current expected credit loss percentage, offset by a $59,000 increase in net charge offs.

 

Noninterest income for the three-month period ended June 30, 2022, was $260,000, compared to $280,000 for the three-month period ended June 30, 2021, a decrease of $20,000 or 7.09%. The decrease was driven primarily by $10,000 lower other fees and commissions and a $14,000 lower gain on sale of other real estate.

 

For the three-month period ended June 30, 2022, noninterest expense was $2.83 million, compared to $2.79 million for the three-month period ended June 30, 2021, an increase of $43,000. The primary contributors to the $43,000 increase, when compared to the three-month period ended June 30, 2021, were increases in legal, accounting, and other professional fees and other expenses, offset by decreases in salary and employee benefits,

 

For the six-month periods ended June 30, 2022, and 2021

 

Net income for the six-month period ended June 30, 2022, was $540,000, compared to $1,074,000 for the six-month period ended June 30, 2021.

 

Net interest income for the six-month period ended June 30, 2022, totaled $5.5 million, a decrease of $410,000 from the six-month period ended June 30, 2021. The decrease in net interest income was due to $506,000 lower interest income, offset by a $96,000 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 security purchases in response to COVID-19 surge-deposit balances. Our securities holdings, which generally yield less than loans, increased as a percentage of our total assets reflecting deployment of increased cash balances.

 

Net interest margin for the six-month period ended June 30, 2022, was 2.57%, compared to 2.92% for the same period of 2021. 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 $23.4 million, while the yield decreased 0.41% from 3.20% to 2.79%, when comparing the six-month periods ending June 30, 2021, and 2022. The average balance on interest-bearing funds and noninterest-bearing funds increased $9.6 million and $12.6 million, respectively, and the cost of funds decreased 0.06%, when comparing the six-month periods ending June 30, 2021, and 2022. The decrease in interest expense is related to a continuing shift in deposit mix and the 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 $63.4 million from $162.3 million to $225.7 million for the six-month period ending June 30, 2022, compared to the same period of 2021. While the yield decreased from 1.54% to 1.50% during that same period. The decrease in yields for the six-month period can be attributed to the change in mix of cash held in interest-bearing deposits in banks and investment securities available for sale.

 

Average loan balances decreased $39.9 million to $204.5 million for the six-month period ended June 30, 2022, compared to $244.4 million for the same period of 2021. While the yield decreased from 4.29% to 4.20% during that same period.

 

The Company recorded a release of allowance for credit loss on loans of $217,000 for the six-month period ending June 30, 2022, compared to a release of $471,000 for the same period in 2021. The $254,000 decline in the release in 2022, compared to 2021, primarily reflects a $323,000 increase in net charge offs, offset by a $24.7 million decrease in the reservable balance of the loan portfolio (excluding PPP loans) and an 11% decrease in the current expected credit loss percentage. As a result, the allowance for credit loss on loans was $2.2 million on June 30, 2022, representing 1.12% of total loans, compared to $2.9 million, or 1.23% of total loans on June 30, 2021.

 

Noninterest income for the six-month period ended June 30, 2022, was $514,000, compared to $527,000 for the six-month period ended June 30, 2021, a decrease of $13,000 or 38.05%. The decrease was driven primarily by a $14,000 lower gain on sale of other real estate.

 

For the six-month period ended June 30, 2022, noninterest expense was $5.6 million, compared to $5.6 million for the six-month period ended June 30, 2021. The primary contributors when comparing to the six-month period ended June 30, 2021, were decreases in salary and employee benefits costs, data processing and item processing services, FDIC insurance costs, loan collection costs and telephone costs, offset by increases in occupancy and equipment expenses, legal, accounting, and other professional fees.

 

 

 

 

# # #

 

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

[email protected]

106 Padfield Blvd

Glen Burnie, MD 21061

 

 

 

 

 

 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

   June 30,   March 31,   December 31,   June 30, 
   2022   2022   2021   2021 
   (unaudited)   (unaudited)   (audited)   (unaudited) 
ASSETS                    
Cash and due from banks  $2,140   $2,071   $2,111   $2,223 
Interest-bearing deposits in other financial institutions   49,226    66,769    60,070    24,545 
Total Cash and Cash Equivalents   51,366    68,840    62,181    26,768 
                     
Investment securities available for sale, at fair value   157,823    147,371    155,927    157,591 
Restricted equity securities, at cost   1,071    1,074    1,062    1,062 
                     
Loans, net of deferred fees and costs   200,698    204,252    210,392    234,871 
Less:  Allowance for credit losses(1)   (2,238)   (2,380)   (2,470)   (2,887)
Loans, net   198,460    201,872    207,922    231,984 
                     
Premises and equipment, net   3,446    3,492    3,564    3,716 
Bank owned life insurance   8,414    8,375    8,338    8,258 
Deferred tax assets, net   6,452    4,148    956    1,004 
Accrued interest receivable   1,145    1,124    1,085    1,304 
Accrued taxes receivable   245    280    301    258 
Prepaid expenses   448    513    347    407 
Other assets   523    356    383    422 
Total Assets  $429,393   $437,445   $442,066   $432,774 
                     
LIABILITIES                    
Noninterest-bearing deposits  $151,679   $155,027   $155,624   $143,254 
Interest-bearing deposits   234,086    232,747    227,623    225,630 
Total Deposits   385,765    387,774    383,247    368,884 
                     
Short-term borrowings   10,000    10,000    10,000    25,237 
Long-term borrowings   10,000    10,000    10,000    - 
Defined pension liability   313    311    304    296 
Accrued expenses and other liabilities   2,050    2,080    2,799    2,962 
Total Liabilities   408,128    410,165    406,350    397,379 
                     
STOCKHOLDERS' EQUITY                    
Common stock, par value $1, authorized 15,000,000 shares,  issued and outstanding 2,858,635, 2,856,257, 2,853,880 and 2,848,170 shares as of June 30, 2022,  March 31, 2022,  December 31, 2021, and June 30, 2021, respectively.   2,859    2,856    2,854    2,848 
Additional paid-in capital   10,810    10,784    10,759    10,700 
Retained earnings   22,946    22,922    22,977    22,104 
Accumulated other comprehensive loss   (15,350)   (9,282)   (874)   (257)
Total Stockholders' Equity   21,265    27,280    35,716    35,395 
Total Liabilities and Stockholders' Equity  $429,393   $437,445   $442,066   $432,774 

 

(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,
 
   2022   2021   2022   2021 
Interest income                    
Interest and fees on loans  $2,089   $2,568   $4,256   $5,205 
Interest and dividends on securities   794    698    1,492    1,203 
Interest on deposits with banks and federal funds sold   147    24    197    43 
Total Interest Income   3,030    3,290    5,945    6,451 
                     
Interest expense                    
Interest on deposits   120    158    244    325 
Interest on short-term borrowings   88    116    191    232 
Interest on long-term borrowings   19    -    26    - 
Total Interest Expense   227    274    461    557 
                     
Net Interest Income   2,803    3,016    5,484    5,894 
Release of credit loss provision   (116)   (67)   (217)   (471)
Net interest income after release of credit loss provision   2,919    3,083    5,701    6,365 
                     
Noninterest income                    
Service charges on deposit accounts   40    37    82    77 
Other fees and commissions   180    190    355    359 
Loss/gain on securities sold/redeemed   1    -    1    - 
Gain on sale of other real estate   -    14    -    14 
Income on life insurance   39    39    76    77 
Total Noninterest Income   260    280    514    527 
                     
Noninterest expenses                    
Salary and employee benefits   1,516    1,588    3,136    3,218 
Occupancy and equipment expenses   316    304    647    606 
Legal, accounting and other professional fees   260    183    585    395 
Data processing and item processing services   235    248    461    505 
FDIC insurance costs   29    40    54    83 
Advertising and marketing related expenses   21    24    43    45 
Loan collection costs   20    22    (55)   28 
Telephone costs   41    54    85    131 
Other expenses   397    329    663    610 
Total Noninterest Expenses   2,835    2,792    5,619    5,621 
                     
Income before income taxes   344    571    596    1,271 
Income tax expense   35    91    56    197 
                     
Net income  $309   $480   $540   $1,074 
                     
Basic and diluted net income per common share  $0.11   $0.17   $0.19   $0.38 

 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the six months ended June 30, 2022 and 2021

(dollars in thousands)

(unaudited)

 

               Accumulated     
       Additional       Other   Total 
   Common   Paid-in   Retained   Comprehensive   Stockholders' 
   Stock   Capital   Earnings   (Loss) Income   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 

  

               Accumulated     
       Additional       Other   Total 
   Common   Paid-in   Retained   Comprehensive   Stockholders' 
   Stock   Capital   Earnings   Income/(Loss)   Equity 
Balance, December 31, 2021  $2,854   $10,759   $22,977   $(874)  $35,716 
                          
Net income   -    -    540    -   $540 
Cash dividends, $0.20 per share   -    -    (571)   -   $(571)
Dividends reinvested under dividend reinvestment plan   5    51    -    -   $56 
Other comprehensive loss   -    -    -    (14,476)  $(14,476)
Balance, June 30, 2022  $2,859   $10,810   $22,946   $(15,350)  $21,265 

 

 

 

 

THE BANK OF GLEN BURNIE

CAPITAL RATIOS

(dollars in thousands)

(unaudited)

 

                   To Be Well 
                   Capitalized Under 
           To Be Considered   Prompt Corrective 
              Adequately Capitalized    Action Provisions 
    Amount    Ratio    Amount    Ratio    Amount    Ratio 
As of June 30, 2022:                              
Common Equity Tier 1 Capital  $37,267    15.13%  $11,087    4.50%  $16,015    6.50%
Total Risk-Based Capital  $39,183    15.90%  $19,711    8.00%  $24,639    10.00%
Tier 1 Risk-Based Capital  $37,267    15.13%  $14,783    6.00%  $19,711    8.00%
Tier 1 Leverage  $37,267    8.58%  $17,383    4.00%  $21,728    5.00%
                               
As of March 31, 2022:                              
Common Equity Tier 1 Capital  $37,201    15.33%  $10,923    4.50%  $15,778    6.50%
Total Risk-Based Capital  $39,199    16.15%  $19,419    8.00%  $24,273    10.00%
Tier 1 Risk-Based Capital  $37,201    15.33%  $14,564    6.00%  $19,419    8.00%
Tier 1 Leverage  $37,201    8.42%  $17,663    4.00%  $22,079    5.00%
                               
As of December 31, 2021:                              
Common Equity Tier 1 Capital  $37,592    15.32%  $11,044    4.50%  $15,952    6.50%
Total Risk-Based Capital  $39,329    16.03%  $19,634    8.00%  $24,542    10.00%
Tier 1 Risk-Based Capital  $37,592    15.32%  $14,725    6.00%  $19,634    8.00%
Tier 1 Leverage  $37,592    8.40%  $17,910    4.00%  $22,388    5.00%
                               
As of June 30, 2021:                              
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%

 

 

 

 

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, 
   2022   2022   2021   2022   2021   2021 
   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (audited) 
Financial Data                              
Assets  $429,393   $437,445   $432,774   $429,393   $432,774   $442,066 
Investment securities   157,823    147,371    157,591    157,823    157,591    155,927 
Loans, (net of deferred fees & costs)   200,698    204,252    234,871    200,698    234,871    210,392 
Allowance for loan losses   2,238    2,380    2,887    2,238    2,887    2,470 
Deposits   385,765    387,774    368,884    385,765    368,884    383,247 
Borrowings   20,000    20,000    25,237    20,000    25,237    20,000 
Stockholders' equity   21,265    27,280    35,395    21,265    35,395    35,716 
Net income   310    231    480    540    1,074    2,516 
                               
Average Balances                              
Assets  $434,297   $441,472   $429,499   $437,884   $422,150   $431,169 
Investment securities   167,651    155,599    150,556    161,625    134,581    145,496 
Loans, (net of deferred fees & costs)   201,633    207,321    239,912    204,477    244,416    233,956 
Deposits   387,358    384,776    371,115    386,067    363,327    371,958 
Borrowings   20,000    20,002    20,617    20,001    20,590    20,309 
Stockholders' equity   24,902    34,119    34,926    29,511    35,499    36,010 
                               
Performance Ratios                              
Annualized return on average assets   0.29%   0.21%   0.45%   0.25%   0.51%   0.58%
Annualized return on average equity   4.99%   2.74%   5.51%   3.69%   6.10%   6.99%
Net interest margin   2.61%   2.54%   2.92%   2.57%   2.92%   3.00%
Dividend payout ratio   92%   124%   59%   106%   53%   45%
Book value per share  $7.44   $9.55   $12.43   $7.44   $12.43   $12.51 
Basic and diluted net income per share   0.11    0.08    0.17    0.19    0.38    0.88 
Cash dividends declared per share   0.10    0.10    0.10    0.20    0.20    0.40 
Basic and diluted weighted average shares outstanding   2,857,616    2,855,253    2,847,191    2,856,441    2,845,493    2,848,465 
                               
Asset Quality Ratios                              
Allowance for loan losses to loans   1.12%   1.17%   1.23%   1.12%   1.23%   1.17%
Nonperforming loans to avg. loans   0.12%   0.10%   1.72%   0.11%   1.69%   0.16%
Allowance for loan losses to nonaccrual & 90+ past due loans   964.4%   1103.7%   69.9%   964.4%   69.9%   703.7%
Net charge-offs annualize to avg. loans   0.05%   -0.02%   -0.06%   0.01%   -0.25%   -0.17%
                               
Capital Ratios                              
Common Equity Tier 1 Capital   15.13%   15.33%   13.45%   15.13%   13.45%   15.32%
Tier 1 Risk-based Capital Ratio   15.13%   15.33%   13.45%   15.13%   13.45%   15.32%
Leverage Ratio   8.58%   8.42%   8.58%   8.58%   8.58%   8.40%
Total Risk-Based Capital Ratio   15.90%   16.15%   14.29%   15.90%   14.29%   16.03%

 

 

 



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