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, 2020

 

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 5, 2020, Glen Burnie Bancorp (the “Company”) announced its results of operations for its fiscal quarter ended June 30, 2020. A copy of the Company’s press release announcing such results dated August 5, 2020 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, 2020

  

 

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 6, 2020 By:        /s/ John D. Long
    John D. Long
    Chief Executive Officer

 

 

 

 

Exhibit 99.1

 

 

Press Release For Immediate Release
  Date:   August 5, 2020

 

 

  

GLEN BURNIE BANCORP ANNOUNCES

SECOND QUARTER 2020 RESULTS

 

GLEN BURNIE, MD (August 5, 2020) Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today a net loss of $96,000, or $0.03 per basic and diluted common share for the three-month period ended June 30, 2020, as compared to net income of $319,000, or $0.11 per basic and diluted common share for the three-month period ended June 30, 2019.

 

Bancorp reported net income of $174,000, or $0.06 per basic and diluted common share for the six-month period ended June 30, 2020, compared to $454,000, or $0.16 per basic and diluted common share for the same period in 2019. At June 30, 2020, Bancorp had total assets of $418.2 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, paid its 112th consecutive quarterly dividend on July 31, 2020. 

 

“As one would expect, the second quarter of 2020 was significantly impacted by the COVID-19 pandemic. Much of our activity was focused on addressing the issues caused by the pandemic. Our priority was keeping our staff and clients safe and helping our clients navigate this crisis through loan deferrals and U.S. Small Business Association’s Payroll Protection Program (“SBA PPP”) loans. We are proud of the effort put forth by our employees, Board of Directors and our leadership team to serve the needs of our customers and the local community during these difficult times. While massive federal stimulus aided the economic recovery, future economic outcomes are likely dependent on the path of the virus” said John D. Long, President and Chief Executive Officer.

 

"An interest rate environment rivaling that of the Great Recession continued to impact our margins and therefore our profits for the second quarter. The decrease in yields and cost of funds for the second quarter of 2020 reflected the full quarter impact of the 150-basis point reduction in the target federal funds rate at the end of March 2020. However, we are encouraged by the robust deposit growth already experienced this year. Our year-over-year earnings per share for the first half of 2020 was lower reflecting the impact of the lower interest rate environment and higher allowance for credit losses resulting from the rapid growth in the unemployment rate. We remain well capitalized and continue to reward our shareholders, having paid quarterly cash dividends for 112 consecutive quarters.”

 

In closing, Mr. Long added, “As we look ahead to the remainder of 2020, downside risks remain from the economic uncertainty and the significant pressure from the low interest rates. Despite this, our underlying business remains strong, benefiting from our capital levels, conservative underwriting policies, on- and off-balance sheet liquidity and loan diversification. We are closely monitoring the rapid developments regarding the pandemic and remain confident in our long-term strategic vision. I remain proud of our employees and their ability to continue to adapt and deliver outstanding customer service during this challenging time.”

 

 

 

 

Highlights for the First Six Months of 2020

 

Total interest income declined $0.4 million to $6.8 million for the six-month period ending June 30, 2020, compared to the same period in 2019. This was driven by decreases in interest income on loans and investment securities consistent with declines in the average balances of these portfolios, and lower interest earned on overnight funds, mainly attributable to lower market rates. Beyond pricing pressure/competition and the absolute low level of rates, the current economic outlook and prospects of a sustained historic low interest rate environment will likely continue to place pressure on net interest margin. Exacerbating the above, the Company maintained significantly higher levels of excess balance sheet liquidity during the first half of 2020 year as compared to the same period in 2019. Bancorp has strong liquidity and capital positions that provide ample capacity for future growth, along with the Bank’s total regulatory capital to risk weighted assets of 12.95% at June 30, 2020, as compared to 12.91% for the same period of 2019.

 

Return on average assets for the three-month period ended June 30, 2020 was -0.10%, as compared to 0.33% for the three-month period ended June 30, 2019. Return on average equity for the three-month period ended June 30, 2020 was -1.05%, as compared to 3.66% for the three-month period ended June 30, 2019. The impact of the lower interest rate environment and higher allowance for credit losses primarily drove the lower returns.

 

The book value per share of Bancorp’s common stock was $12.65 at June 30, 2020, as compared to $12.37 per share at June 30, 2019.

 

At June 30, 2020, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 12.10% at June 30, 2020, as compared to 12.05% at June 30, 2019. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the bond portfolio.

 

Balance Sheet Review

 

Total assets were $418.2 million at June 30, 2020, an increase of $41.8 million or 11.11%, from $376.4 million at June 30, 2019. The COVID-19 pandemic has created a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of $15.0 million of average interest-bearing cash balances in the second quarter of 2020 compared to the same period in 2019. Investment securities were $84.5 million at June 30, 2020, an increase of $23.3 million or 38.07%, from $61.2 million at June 30, 2019. Loans, net of deferred fees and costs, were $285.0 million at June 30, 2020, a decrease of $6.2 million or 2.13%, from $291.2 million at June 30, 2019. Net loans during the first half of 2020 include loans funded under the SBA PPP. These PPP loans directly benefitted the businesses and employees in our local communities. The Company funded 133 PPP loans totaling approximately $17.4 million in the second quarter of 2020. PPP loans, net of unearned fees of $518,000, totaled $16.8 million at June 30, 2020. The unearned fees are being accreted based on the estimated life of the loans. The Company anticipates that the SBA may forgive a significant number of PPP loans in the fourth quarter of 2020 and first quarter 2021, at which point the recognition of fee income will be accelerated.

 

Total deposits were $341.9 million at June 30, 2020, an increase of $21.7 million or 6.78%, from $320.2 million at June 30, 2019. Noninterest-bearing deposits were $127.6 million at June 30, 2020, an increase of $20.5 million or 19.14%, from $107.1 million at June 30, 2019. The increase was due to new deposit accounts for PPP loans and core deposit growth. Interest-bearing deposits were $214.3 million at June 30, 2020, an increase of $1.3 million or 0.61%, from $213.0 million at June 30, 2019. Total borrowings were $37.4 million at June 30, 2020, an increase of $17.4 million or 86.83%, from $20.0 million at June 30, 2019. The Company participated in the Paycheck Protection Program Liquidity Facility (“PPPLF”) established by the Federal Reserve. At June 30, 2020, the Company borrowed $17.4 million under the PPPLF with a fixed rate of 0.35% and pledged PPP loans as collateral to secure the borrowings.

 

 

 

 

Stockholders’ equity was $35.9 million at June 30, 2020, an increase of $1.0 million or 2.87%, from $34.9 million at June 30, 2019. The increase in accumulated other comprehensive gain associated with net unrealized losses on the available for sale bond portfolio and increase in retained earnings and stock issuances under the dividend reinvestment program, offset by an increase in unrealized losses on interest rate swap contracts drove the overall increase in stockholders’ equity.

 

Nonperforming assets, which consist of nonaccrual loans, troubled debt restructurings, accruing loans past due 90 days or more, and other real estate owned (“OREO”), represented 1.12% of total assets at June 30, 2020, as compared to 1.44% for the same period of 2019. The decreases in nonaccrual loans and troubled debt restructurings, offset by a higher total asset balance drove the 0.32% decrease in nonperforming assets as percentage of total assets from June 30, 2019 to June 30, 2020.

 

Review of Financial Results

 

For the three-month periods ended June 30, 2020 and 2019

 

Net loss for the three-month period ended June 30, 2020 was $96,000, as compared to net income of $319,000 for the three-month period ended June 30, 2019.

 

Net interest income for the three-month period ended June 30, 2020 totaled $2.94 million, a decrease of $188,000 from the three-month period ended June 30, 2019 due to lower interest income of $238,000, coupled with lower interest expense of $51,000. The decrease in yields and cost of funds for the second quarter of 2020 reflected the full quarter impact of the 150-basis point reduction in the target federal funds rate at the end of March 2020. The decrease in net interest income was due primarily to declining loan balances and a large increase in cash held in interest-bearing deposits in banks during this low rate environment, offset by interest income and fees recognized for PPP loans and reductions in the costs of interest-bearing deposits and borrowings. Loans, net of deferred fees and costs, including $17.4 million of PPP loans funded in the second quarter of 2020, decreased by $6.3 million or 2.15% to $285.0 million as of June 30, 2020, as compared to $291.2 million for the same period of 2019. PPP loans carry a fixed interest rate of 1.0% with a two-year contractual maturity.

 

Net interest margin for the three-month period ended June 30, 2020 was 3.12%, as compared to 3.41% for the same period of 2019. Lower average yields and higher average balances on interest-earning assets combined with lower average interest-bearing funds and cost of funds were the primary drivers of year-over-year results. The average balance on interest-earning assets increased $11.8 million while the yield decreased 0.37% from 3.91% to 3.54%, when comparing the three-month periods ending June 30, 2019 and 2020. The average balance on interest-bearing funds decreased $6.5 million and the cost of funds decreased 0.07%, when comparing the three-month periods ending June 30, 2019 and 2020. The decrease in interest expense is related to a reduction in higher rate time deposits. As these time deposits matured, they renewed at lower market rates or they exited the Company and were replaced by lower cost checking and money market accounts.

 

The average balance of interest-bearing deposits in banks and investment securities increased $23.0 million from $71.6 million to $94.6 million for the second quarter of 2020, as compared to the same period of 2019 while the yield decreased from 2.23% to 1.51% during that same time period. Much of the decrease in yields for the three-month period can be attributed to an overall lower interest rate environment and a significant increase in cash held in interest-bearing deposits in banks and investment securities available for sale during this low interest rate period.

 

 

 

 

Average loan balances decreased $11.2 million or 3.79% to $284.2 million for the three-month period ended June 30, 2020, as compared to $295.4 million for the same period of 2019 while the yield decreased from 4.31% to 4.22% during that same time period. The decrease in loan yields for the second quarter of 2020 reflected the full quarter impact of the 150-basis point reduction in the target federal funds rate at the end of March 2020.

 

The provision for loan losses for the three-month period ended June 30, 2020 was $487,000, as compared to $30,000 for the same period of 2019. Our loan loss provisioning methodology is significantly tied to projected unemployment rates which have remained elevated during the second quarter of 2020. The increase in the allowance for credit losses at June 30, 2020 is primarily attributable to the ongoing effects of the COVID-19 pandemic due to uncertainty in the economic market. The Company continues to gather the latest information available to perform and update its loan loss reserve analysis. As more information becomes available, including the economic impact of the COVID-19 pandemic, the Company will update the loan loss reserve analysis. The Company maintains the allowance for loan losses at a level believed to be adequate for known and inherent risks in the portfolio. The methodology incorporates a variety of risk considerations, both quantitative and qualitative, in establishing an allowance for loan losses that management believes is appropriate at each reporting date. As a result, the allowance for loan losses was $2.39 million at June 30, 2020, representing 0.84% of total loans, as compared to $2.46 million, or 0.84% of total loans at June 30, 2019. The ratio of the allowance for loan losses to loans outstanding has remained unchanged from June 30, 2019, primarily due to approximately $17.4 million of PPP loans that are guaranteed by the SBA, which require no allowance for loan losses.

 

Noninterest income for the three-month period ended June 30, 2020 was $228,000, as compared to $282,000 for the three-month period ended June 30, 2019, a decrease of $54,000 or 19.15%.

 

For the three-month period ended June 30, 2020, noninterest expense was $2.81 million, as compared to $2.99 million for the three-month period ended June 30, 2019, a decrease of $184,000 or 6.15%. The primary contributors to the $184,000 decrease, when compared to the three-month period ended June 30, 2019 were decreases in salary and employee benefits costs, legal, accounting and other professional fees, occupancy and equipment expenses including investments in technology and infrastructure improvements and other expenses, offset by increases in data processing and item processing services.

 

For the six-month periods ended June 30, 2020 and 2019

 

Net income for the six-month period ended June 30, 2020 was $174,000, as compared to net income of $454,000 for the six-month period ended June 30, 2019.

 

Net interest income for the six-month period ended June 30, 2020 totaled $5.99 million, a decrease of $277,000 from the six-month period ended June 30, 2019 due to lower interest income of $448,000, coupled with lower interest expense of $171,000. The decrease in yields and cost of funds for the six-month period ended June 30, 2020 compared to the same period in 2019 is primarily attributable to the five rate cuts by the Federal Reserve from August 2019 through March 2020 with the March 15th movement lowering the federal funds rate 150-basis points and the targeted range to 0% - 0.25%. The decrease in net interest income was due primarily to declining loan balances and a large increase in cash held in interest-bearing deposits in banks during this low rate environment, offset by interest income and fees recognized for PPP loans and reductions in the costs of interest-bearing deposits and borrowings. Loans, net of deferred fees and costs including $17.4 million of PPP loans funded in the second quarter of 2020 decreased by $6.3 million or 2.15% to $285.0 million as of June 30, 2020, as compared to $291.2 million for the same period of 2019. PPP loans carry a fixed interest rate of 1.0% with a two-year contractual maturity.

 

 

 

 

Net interest margin for the six-month period ended June 30, 2020 was 3.23%, as compared to 3.36% for the same period of 2019. Lower average yields and average balances on interest-earning assets combined with lower average interest-bearing funds and cost of funds were the primary drivers of year-over-year results. The average balance on interest-earning assets decreased $3.9 million while the yield decreased 0.21% from 3.90% to 3.69%, when comparing the six-month periods ending June 30, 2019 and 2020. The average balance on interest-bearing funds decreased $17.2 million and the cost of funds decreased 0.09%, when comparing the six-month periods ending June 30, 2019 and 2020. The decrease in interest expense is related to a reduction in higher rate time deposit balances and FHLB advances. As time deposits matured, they renewed at lower market rates or they exited the Company and were replaced by lower cost checking and money market accounts.

 

The average balance of interest-bearing deposits in banks and investment securities increased $10.7 million from $78.9 million to $89.6 million for the six-month period ending June 30, 2020, as compared to the same period of 2019 while the yield decreased from 2.35% to 1.76% during that same time 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 $14.7 million to $282.8 million for the six-month period ended June 30, 2020, as compared to $297.5 million for the same period of 2019 while the yield decreased from 4.32% to 4.30% during that same time period. The decrease in loan yields is primarily attributable to the five rate cuts by the Federal Reserve from August 2019 through March 2020 with the March 15th movement lowering the federal funds rate 150-basis points.

 

The provision for loan losses for the six-month period ended June 30, 2020 was $407,000, as compared to $204,000 for the same period of 2019. The increase for the six-month period ended June 30, 2020 as compared to the same period in 2019 was driven by an increase in qualitative factors relating to the COVID-19 pandemic and macro-economic conditions. The assumptions underlying the COVID-19 related qualitative factors included (a) uncertain and volatile macro-economic conditions caused by the pandemic; (b) the high unemployment rate; and (c) the loan deferment program. 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, 2020 was $484,000, as compared to $564,000 for the six-month period ended June 30, 2019, a decrease of $81,000 or 14.36%.

 

For the six-month period ended June 30, 2020, noninterest expense was $5.85 million, as compared to $6.07 million for the six-month period ended June 30, 2019, a decrease of $220,000 or 3.62%. The primary contributors to the $220,000 decrease, when compared to the six-month period ended June 30, 2019 were decreases in salary and employee benefits costs, occupancy and equipment expenses including investments in technology and infrastructure improvements and other expenses primarily litigation settlement costs, offset by increases in data processing and item processing services.

 

 

 

 

 

 

# # #

 

Glen Burnie Bancorp Information

 

Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally owned community bank with 8 branch offices serving Anne Arundel County. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at www.thebankofglenburnie.com.

 

Forward-Looking Statements

 

The statements contained herein that are not historical financial information, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, which could cause the company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. For a more complete discussion of these and other risk factors, please see the company’s reports filed with the Securities and Exchange Commission.

 

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 AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 

   June 30,   March 31,   December 31,   June 30, 
   2020   2020   2019   2019 
   (unaudited)   (unaudited)   (audited)   (unaudited) 
ASSETS                    
Cash and due from banks  $2,387   $2,658   $2,420   $2,373 
Interest bearing deposits with banks and federal funds sold   32,592    15,413    10,870    7,565 
   Total Cash and Cash Equivalents   34,979    18,071    13,290    9,938 
                     
Investment securities available for sale, at fair value   84,534    70,172    71,486    61,213 
Restricted equity securities, at cost   1,199    1,199    1,437    1,227 
                     
Loans, net of deferred fees and costs   284,963    276,960    284,738    291,237 
Allowance for loan losses   (2,392)   (1,918)   (2,066)   (2,459)
   Loans, net   282,571    275,042    282,672    288,778 
                     
Real estate acquired through foreclosure   705    705    705    705 
Premises and equipment, net   3,904    3,900    3,761    3,840 
Bank owned life insurance   8,101    8,062    8,023    7,940 
Deferred tax assets, net   476    611    672    1,059 
Accrued interest receivable   1,226    970    961    992 
Prepaid expenses   329    374    406    491 
Other assets   176    220    308    236 
    Total Assets  $418,200   $379,326   $383,721   $376,419 
                     
LIABILITIES                    
Noninterest-bearing deposits  $127,621   $113,264   $107,158   $107,132 
Interest-bearing deposits   214,316    208,516    214,282    213,046 
   Total Deposits   341,937    321,780    321,440    320,178 
                     
Short-term borrowings   37,367    20,000    25,000    20,000 
Defined pension liability   294    323    317    304 
Accrued expenses and other liabilities   2,735    1,366    1,284    1,047 
   Total Liabilities   382,333    343,469    348,041    341,529 
                     
STOCKHOLDERS' EQUITY                    
Common stock, par value $1, authorized 15,000,000 shares,  issued and outstanding 2,834,325, 2,830,358, 2,827,473, and 2,821,230 shares as of June 30, 2020, March 31, 2020, December 31, 2019, and June 30, 2019, respectively.   2,834    2,830    2,827    2,821 
Additional paid-in capital   10,582    10,554    10,525    10,464 
Retained earnings   22,145    22,522    22,537    21,957 
Accumulated other comprehensive loss   306    (49)   (209)   (352)
   Total Stockholders' Equity   35,867    35,857    35,680    34,890 
   Total Liabilities and Stockholders' Equity  $418,200   $379,326   $383,721   $376,419 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2020   2019   2020   2019 
   (unaudited)   (unaudited)   (unaudited)   (audited) 
Interest income                    
Interest and fees on loans  $2,980   $3,176   $6,051   $6,366 
Interest and dividends on securities   317    336    698    736 
Interest on deposits with banks and federal funds sold   39    62    86    182 
   Total Interest Income   3,336    3,574    6,835    7,284 
                     
Interest expense                    
Interest on deposits   289    333    614    665 
Interest on short-term borrowings   109    117    235    355 
   Total Interest Expense   398    450    849    1,020 
                     
   Net Interest Income   2,938    3,124    5,986    6,264 
Provision for loan losses   487    30    407    204 
   Net interest income after provision for loan losses   2,451    3,094    5,579    6,060 
                     
Noninterest income                    
Service charges on deposit accounts   38    64    94    124 
Other fees and commissions   151    177    311    356 
Gain on securities sold   -    -    1    3 
Income on life insurance   39    41    78    81 
   Total Noninterest Income   228    282    484    564 
                     
Noninterest expenses                    
Salary and employee benefits   1,597    1,685    3,302    3,455 
Occupancy and equipment expenses   295    386    626    700 
Legal, accounting and other professional fees   252    304    504    535 
Data processing and item processing services   184    44    417    219 
FDIC insurance costs   48    60    99    116 
Advertising and marketing related expenses   19    25    44    52 
Loan collection costs   21    26    88    40 
Telephone costs   43    55    90    121 
Other expenses   348    405    676    829 
   Total Noninterest Expenses   2,807    2,990    5,846    6,067 
                     
(Loss) income before income taxes   (128)   386    217    557 
Income tax expense (benefit)   32    67    (43)   103 
                     
   Net (loss ) income  $(96)  $319   $174   $454 
                     
Basic and diluted net (loss) income per common share  $(0.03)  $0.11   $0.06   $0.16 

 

 

 

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the six months ended June 30, 2020 and 2019

(dollars in thousands)

 

               Accumulated     
       Additional       Other   Total 
   Common   Paid-in   Retained   Comprehensive   Stockholders' 
   Stock   Capital   Earnings   (Loss)   Equity 
Balance, December 31, 2018  $2,814   $10,401   $22,066   $(1,230)  $34,051 
                          
Net income   -    -    454    -    454 
Cash dividends, $0.20 per share   -    -    (563)   -    (563)
Dividends reinvested under dividend reinvestment plan   7    63    -    -    70 
Other comprehensive income   -    -    -    878    878 
Balance, June 30, 2019  $2,821   $10,464   $21,957   $(352)  $34,890 

 

               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 

  

 

 

THE BANK OF GLEN BURNIE

CAPITAL RATIOS 

(dollars in thousands)

 

           To Be Considered
Adequately Capitalized
  

To Be Well

Capitalized Under

Prompt Corrective

Action Provisions

 
   Amount   Ratio   Amount   Ratio   Amount   Ratio 
As of June 30, 2020:                              
(unaudited)                              
Common Equity Tier 1 Capital   35,386    12.10%    13,157    4.50%    19,004    6.50% 
Total Risk-Based Capital   37,875    12.95%    23,389    8.00%    29,237    10.00% 
Tier 1 Risk-Based Capital   35,386    12.10%    17,542    6.00%    23,389    8.00% 
Tier 1 Leverage   35,386    9.32%    15,180    4.00%    18,975    5.00% 
                               
As of March 31, 2020:                              
(unaudited)                              
Common Equity Tier 1 Capital   35,730    12.63%    12,726    4.50%    18,382    6.50% 
Total Risk-Based Capital   37,698    13.33%    22,624    8.00%    28,280    10.00% 
Tier 1 Risk-Based Capital   35,730    12.63%    16,968    6.00%    22,624    8.00% 
Tier 1 Leverage   35,730    9.34%    15,309    4.00%    19,137    5.00% 
                               
As of December 31, 2019:                              
(unaudited)                              
Common Equity Tier 1 Capital  $35,693    12.47%   $12,878    4.50%   $18,602    6.50% 
Total Risk-Based Capital  $37,797    13.21%   $22,895    8.00%   $28,619    10.00% 
Tier 1 Risk-Based Capital  $35,693    12.47%   $17,171    6.00%   $22,895    8.00% 
Tier 1 Leverage  $35,693    9.26%   $15,414    4.00%   $19,268    5.00% 
                               
As of June 30, 2019:                              
(unaudited)                              
Common Equity Tier 1 Capital  $34,864    12.05%   $13,015    4.50%   $18,799    6.50% 
Total Risk-Based Capital  $37,335    12.91%   $23,137    8.00%   $28,922    10.00% 
Tier 1 Risk-Based Capital  $34,864    12.05%   $17,353    6.00%   $23,137    8.00% 
Tier 1 Leverage  $34,864    9.12%   $15,287    4.00%   $19,109    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, 
   2020   2020   2019   2020   2019   2019 
   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
                         
Financial Data                              
Assets  $418,200   $379,326   $376,419   $418,200   $376,419   $383,721 
Investment securities   84,534    70,172    61,213    84,534    61,213    71,486 
Loans, (net of deferred fees & costs)   284,963    276,960    291,237    284,963    291,237    284,738 
Allowance for loan losses   2,392    1,918    2,459    2,392    2,459    2,066 
Deposits   341,937    321,780    320,178    341,937    320,178    321,440 
Borrowings   37,367    20,000    20,000    37,367    20,000    25,000 
Stockholders' equity   35,867    35,857    34,890    35,867    34,890    35,680 
Net (loss) income   (96)   268    319    174    454    1,599 
                               
Average Balances                              
Assets  $396,633   $383,043   $382,659   $390,171   $391,403   $387,315 
Investment securities   69,729    70,779    61,621    70,254    65,780    65,315 
Loans, (net of deferred fees & costs)   284,168    281,335    295,425    282,752    297,465    292,075 
Deposits   336,330    320,606    325,036    328,468    324,159    324,565 
Borrowings   20,949    23,693    20,789    22,321    30,985    25,573 
Stockholders' equity   36,762    36,162    34,965    36,842    34,662    35,104 
                               
Performance Ratios                              
Annualized return on average assets   -0.10%   0.28%   0.33%   0.09%   0.23%   0.41%
Annualized return on average equity   -1.05%   2.98%   3.66%   0.95%   2.64%   4.55%
Net interest margin   3.12%   3.34%   3.41%   3.23%   3.36%   3.39%
Dividend payout ratio   -296%   105%   88%   326%   124%   71%
Book value per share  $12.65   $12.67   $12.37   $12.65   $12.37   $12.62 
Basic and diluted net income per share   (0.03)   0.09    0.11    0.06    0.16    0.57 
Cash dividends declared per share   0.10    0.10    0.10    0.20    0.20    0.40 
Basic and diluted weighted average
   shares outstanding
   2,832,974    2,829,375    2,819,994    2,831,174    2,818,266    2,821,608 
                               
Asset Quality Ratios                              
Allowance for loan losses to loans   0.84%   0.69%   0.84%   0.84%   0.84%   0.73%
Nonperforming loans to avg. loans   1.39%   1.46%   1.61%   1.40%   1.60%   1.42%
Allowance for loan losses to
   nonaccrual & 90+ past due loans
   60.4%   46.7%   54.0%   60.4%   54.0%   49.8%
Net charge-offs annualize to avg. loans   0.02%   0.10%   0.24%   0.12%   0.38%   0.12%
                               
Capital Ratios                              
Common Equity Tier 1 Capital   12.10%   12.63%   12.05%   12.10%   12.05%   12.47%
Tier 1 Risk-based Capital Ratio   12.10%   12.63%   12.05%   12.10%   12.05%   12.47%
Leverage Ratio   9.32%   9.34%   9.12%   9.32%   9.12%   9.26%
Total Risk-Based Capital Ratio   12.95%   13.33%   12.91%   12.95%   12.91%   13.21%