Glen Burnie Bancorp Announces Second Quarter 2021 Results

GLEN BURNIE, Md., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income of $480,000, or $0.17 per basic and diluted common share for the three-month period ended June 30, 2021, as compared to a net loss of $96,000, or $0.03 per basic and diluted common share for the three-month period ended June 30, 2020. Bancorp reported net income of $1,074,000, or $0.38 per basic and diluted common share for the six-month period ended June 30, 2021, compared to $174,000, or $0.06 per basic and diluted common share for the same period in 2020. On June 30, 2021, Bancorp had total assets of $432.8 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, paid its 116th consecutive quarterly dividend on July 30, 2021. The Company recorded a net benefit of $67,000 from the release of allowance for credit losses loans (“ACL-loans”) for the second quarter of 2021 and $471,000 for the first half of 2021 compared to a provision for credit losses (“PCL-loans”) of $487,000 for the second quarter of 2020 and $407,000 for the first half of 2020.

“We are very pleased to report another quarter of strong financial performance,” said John D. Long, President and Chief Executive Officer. “The story for this quarter, and for the first six months of 2021, is the release of ACL-loans compared to significant provision for loan loss during the quarter and the first half of 2020. Additionally, the Bank’s continued realization of Paycheck Protection Program (“PPP”) loan fees due to ongoing PPP loan forgiveness by the SBA contributed to our strong performance. Our margin continues to be under pressure as deposit growth driven by government stimulus has far outpaced net loan decreases. Our challenge for the remainder of 2021, and into 2022, will be generating loan growth in the post-pandemic economy, but we are encouraged by the improving economic factors in our markets as the economy reopens.”

“We remain committed to improving our noninterest income revenue streams and are very pleased with the success of recently introduced deposit products and services, along with the growth seen in other key fee income categories. Our desire to meet growth objectives in a cost-conscious manner remains a priority, and we will continue to regularly review our branch system and other expense categories to identify potential opportunities to conduct business more efficiently.”

Highlights for the First Six Months of 2021

The Company recorded a PCL-loans benefit of $67,000 in the second quarter of 2021 as compared to a PCL-loans expense of $487,000 in the second quarter of 2020, and a year-to-date PCL-loans benefit of $471,000 in 2021 as compared to a $407,000 PCL-loans expense for the same period in 2020. The $554,000 favorable decline in PCL-loans in the second quarter of 2021 as compared to the second quarter of 2020, and the $878,000 favorable decrease in the first six months of 2021 compared to the same period in 2020 is due primarily to lower average balances on loans, and net recoveries of previously charged-off loan balances.

Total interest income declined $0.3 million to $6.5 million for the six-month period ending June 30, 2021, compared to the same period in 2020. This was driven primarily by an $846,000 decrease in interest income on loans consistent with the $38.3 million decline in the average balance of the loan portfolio. Beyond pricing pressure/competition and the absolute low level of rates, the current economic outlook and prospects of a sustained historic low interest rate environment will likely continue to place pressure on net interest margin. Exacerbating the above, the Company had an $8.5 million higher level of excess liquidity during the first half of 2021 compared to the same period in 2020.

Bancorp has strong liquidity and capital positions that provide ample capacity for future growth, along with the Bank’s total regulatory capital to risk weighted assets of 14.29% on June 30, 2021, as compared to 12.95% for the same period of 2020.

Return on average assets for the three-month period ended June 30, 2021, was 0.45%, as compared to -0.10% for the three-month period ended June 30, 2020. Return on average equity for the three-month period ended June 30, 2021, was 5.51%, as compared to -1.05% for the three-month period ended June 30, 2020. The significant provision for loan losses in 2020, precipitated by the unknown consequences of the COVID-19 pandemic and the subsequent stimulus driven economic turnaround, drove the higher returns.

The cost of funds decreased from 0.45% during the second quarter of 2020 to 0.28% during the second quarter of 2021. This decrease was primarily due to a change in funding mix, consisting of an increase in lower cost non-time deposits as a percentage of total funding sources, and lower rates on time deposits, reflecting the declining interest rate environment.

The book value per share of Bancorp’s common stock was $12.43 on June 30, 2021, as compared to $12.65 per share on June 30, 2020.

On June 30, 2021, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 13.45% on June 30, 2021, as compared to 12.10% on June 30, 2020. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the bond portfolio.

Balance Sheet Review

Total assets were $432.8 million on June 30, 2021, an increase of $14.6 million or 3.49%, from $418.2 million on June 30, 2020. Investment securities increased by $73.1 million or 86.51% to $157.6 million as of June 30, 2021, as compared to $84.5 million for the same period of 2020, primarily due to changes in our asset mix resulting from significant increases in deposits from government stimulus programs, deposit customers’ increased savings, and decreases in loan portfolio balances. Loans, net of deferred fees and costs, were $234.9 million on June 30, 2021, a decrease of $50.1 million or 17.58%, from $285.0 million on June 30, 2020. Net loans during the first half of 2021 and 2020 include loans funded under the SBA PPP, offset by forgiveness activity by the SBA. PPP loans carry a fixed interest rate of 1.0% with a two- or five-year contractual maturity depending on the origination date.

Total deposits were $368.9 million on June 30, 2021, an increase of $27.0 million or 7.90%, from $341.9 million on June 30, 2020. Noninterest-bearing deposits were $143.3 million on June 30, 2021, an increase of $15.7 million or 12.30%, from $127.6 million on June 30, 2020. The increase in deposits was primarily related to PPP and other government stimulus payments leading to historically high savings rates. Interest-bearing deposits were $225.6 million on June 30, 2021, an increase of $11.3 million or 5.27%, from $214.3 million on June 30, 2020. Total borrowings were $25.2 million on June 30, 2021, a decrease of $12.2 million or 32.62%, from $37.4 million on June 30, 2020. The Company participated in the Paycheck Protection Program Liquidity Facility (“PPPLF”) established by the Federal Reserve. On June 30, 2021, and 2020, the Company borrowed $5.2 million and $17.4 million, respectively, under the PPPLF with a fixed rate of 0.35% and pledged PPP loans as collateral to secure the borrowings.

As of June 30, 2021, total stockholders’ equity was $35.4 million (8.18% of total assets), equivalent to a book value of $12.43 per common share. Total stockholders’ equity on June 30, 2020, was $35.9 million (8.58% of total assets), equivalent to a book value of $12.65 per common share. The reductions in the ratio of stockholders’ equity to total assets was due to higher asset balances from increased levels of cash equivalents and investment securities, along with decreases to equity from the decline in market value of the Company’s available-for-sale securities portfolio and the $1.5 million impact of the adoption of the CECL accounting standard for credit losses. Included in stockholders’ equity on June 30, 2021, and June 30, 2020, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities and derivative contracts totaling $257,000 and unrealized gains (net of taxes) of $306,000, respectively. This decrease in unrealized gains primarily resulted from decreasing market interest rates year-over-year, which decreased the fair value of the investment securities.

Nonperforming assets, which consist of nonaccrual loans, troubled debt restructurings, accruing loans past due 90 days or more, and other real estate owned (“OREO”), represented 0.95% of total assets on June 30, 2021, as compared to 1.12% for the same period of 2020. The $705,000 decrease in OREO balance and $14.6 million higher asset balance, offset by $173,000 increase in nonaccrual loans drove the 0.17% decrease in nonperforming assets as percentage of total assets from June 30, 2020, to June 30, 2021.

Review of Financial Results

For the three-month periods ended June 30, 2021, and 2020

Net income for the three-month period ended June 30, 2021, was $480,000, as compared to a net loss of $96,000 for the three-month period ended June 30, 2020.

Net interest income for the three-month period ended June 30, 2021, totaled $3.02 million, an increase of $78,000 from the three-month period ended June 30, 2020. The increase in net interest income was due to a $124,000 reduction in the costs of interest-bearing deposits and borrowings, offset by $46,000 lower interest income. Net interest margin compression drove the lower interest income resulting from declining loan balances, increases in cash held in interest-bearing deposits in banks, and bond purchases in response to COVID-19 driven excess liquidity. Our securities holdings, which generally yield less than loans, increased as a percentage of our total assets reflecting deployment of increased deposits.

Net interest margin for the three-month period ended June 30, 2021, was 2.92%, as compared to 3.12% for the same period of 2020. Lower average yields and higher average balances on interest-earning assets combined with higher average interest-bearing funds, higher average noninterest-bearing funds and lower cost of funds were the primary drivers of year-over-year results. The average balance on interest-earning assets increased $35.9 million while the yield decreased 0.36% from 3.54% to 3.18%, when comparing the three-month periods ending June 30, 2020, and 2021. The average balance on interest-bearing funds and noninterest-bearing funds increased $10.8 million and $23.7 million, respectively, and the cost of funds decreased 0.17%, when comparing the three-month periods ending June 30, 2020, and 2021. The decrease in interest expense is related to a continuing shift in deposit mix and the ongoing downward repricing of interest-bearing deposits. As time deposits matured, they renewed at lower market rates, or they exited the Company and were replaced by lower cost checking and money market accounts.

The average balance of interest-bearing deposits in banks and investment securities increased $80.2 million from $94.6 million to $174.8 million for the second quarter of 2021, as compared to the same period of 2020, while the yield increased from 1.51% to 1.65% during that same period. Much of the increase in yields for the three-month period can be attributed to a significant increase in investment securities available for sale.

Average loan balances decreased $44.3 million or 15.59% to $239.9 million for the three-month period ended June 30, 2021, as compared to $284.2 million for the same period of 2020 while the yield increased from 4.22% to 4.29% during that same period. The increase in loan yields for the second quarter of 2021 reflected the accelerated recognition of net fees due to PPP loan forgiveness by the SBA.

The Company recorded a PCL-loans benefit of $67,000 in the second quarter of 2021 as compared to a provision for loan loss of $487,000 in the second quarter of 2020. The $554,000 favorable decline in PCL-loans in the second quarter of 2021 as compared to the second quarter of 2020, is due primarily to lower average balances on loans, net recoveries of previously charged-off loan balances and strong credit discipline. As a result, the ACL-loans was $2.9 million on June 30, 2021, representing 1.23% of total loans, as compared to the allowance for loan losses of $2.4 million, or 0.84% of total loans on June 30, 2020. The ratio of the ACL-loans and the allowance for loan losses to total loans increased 0.39% primarily due to the Company’s adoption of the CECL accounting standard effective January 1, 2021. The Company’s financial statements for periods prior to January 1, 2021, were prepared under the previous incurred loss accounting standard. No provision for loan losses on PPP loans was recognized as the SBA guarantees 100% of loans funded under the program.

Noninterest income for the three-month period ended June 30, 2021, was $280,000, as compared to $228,000 for the three-month period ended June 30, 2020, an increase of $52,000 or 22.81%, driven primarily by $39,000 higher other fees and commissions and $14,000 gain on sale of other real estate.

For the three-month period ended June 30, 2021, noninterest expense was $2.79 million, as compared to $2.81 million for the three-month period ended June 30, 2020, a decrease of $14,000. The primary contributors to the $14,000 decrease, when compared to the three-month period ended June 30, 2020, were decreases in legal, accounting, and other professional fees, and other expenses, offset by increases in data processing and item processing services and telephone costs.

For the six-month periods ended June 30, 2021, and 2020

Net income for the six-month period ended June 30, 2021, was $1,074,000, as compared to a $174,000 for the six-month period ended June 30, 2020.

Net interest income for the six-month period ended June 30, 2021, totaled $5.9 million, a decrease of $92,000 from the six-month period ended June 30, 2020. The decrease in net interest income was due to $384,000 lower interest income, offset by a $292,000 reduction in the costs of interest-bearing deposits and borrowings. Net interest margin compression drove the lower interest income resulting from declining loan balances, increases in cash held in interest-bearing deposits in banks and bond purchases in response to COVID-19 driven excess liquidity. Our securities holdings, which generally yield less than loans, increased as a percentage of our total assets reflecting deployment of increased deposits.

Net interest margin for the six-month period ended June 30, 2021, was 2.92%, as compared to 3.23% for the same period of 2020. Lower average yields and higher average balances on interest-earning assets combined with higher average interest-bearing funds, higher average noninterest-bearing funds, and lower cost of funds were the primary drivers of year-over-year results. The average balance on interest-earning assets increased $34.4 million while the yield decreased 0.49% from 3.69% to 3.20%, when comparing the six-month periods ending June 30, 2020, and 2021. The average balance on interest-bearing funds and noninterest-bearing funds increased $7.4 million and $25.7 million, respectively, and the cost of funds decreased 0.20%, when comparing the six-month periods ending June 30, 2020, and 2021. The decrease in interest expense is related to a continuing shift in deposit mix and the ongoing downward repricing of interest-bearing deposits. As time deposits matured, they renewed at lower market rates, or they exited the Company and were replaced by lower cost checking and money market accounts.

The average balance of interest-bearing deposits in banks and investment securities increased $72.7 million from $89.6 million to $162.3 million for the six-month period ending June 30, 2021, as compared to the same period of 2020, while the yield decreased from 1.76% to 1.54% during that same period. Much of the decrease in yields for the six-month period can be attributed to an overall lower interest rate environment and a significant increase in cash held in interest-bearing deposits in banks and investment securities available for sale during this low interest rate period.

Average loan balances decreased $38.4 million or 13.58% to $244.4 million for the six-month period ended June 30, 2021, as compared to $282.8 million for the same period of 2020 while the yield decreased from 4.30% to 4.29% during that same period.

The Company recorded a PCL-loans benefit of $471,000 for the six-month period ending June 30, 2021, as compared to a provision for loan loss of $407,000 for the same period in 2020. The $878,000 favorable decline in PCL-loans in 2021 as compared to 2020, is due primarily to lower average balances on loans, net recoveries of previously charged-off loan balances, and strong credit discipline. As a result, the ACL-loans was $2.9 million on June 30, 2021, representing 1.23% of total loans, as compared to the allowance for loan losses of $2.4 million, or 0.84% of total loans on June 30, 2020. The ratio of the ACL-loans and the allowance for loan losses to total loans increased 0.39% primarily due to the Company’s adoption of the CECL accounting standard effective January 1, 2021. The Company’s financial statements for periods prior to January 1, 2021, were prepared under the previous incurred loss accounting standard. No provision for loan losses on PPP loans was recognized as the SBA guarantees 100% of loans funded under the program.

Noninterest income for the six-month period ended June 30, 2021, was $527,000, as compared to $484,000 for the six-month period ended June 30, 2020, an increase of $43,000 or 8.88% driven primarily by a $48,000 increase in other fees and commissions and a $14,000 gain on sale of other real estate, offset by a $17,000 decrease in service charges on deposit accounts.

For the six-month period ended June 30, 2021, noninterest expense was $5.62 million, as compared to $5.85 million for the six-month period ended June 30, 2020, a decrease of $230,000 or 3.93%. The primary contributors to the $230,000 decrease, when compared to the six-month period ended June 30, 2020, were decreases in salary and employee benefits costs, occupancy, legal, accounting, and other professional fees, loan collection costs, FDIC insurance costs and other expenses, offset by increases in data processing and item processing services and telephone costs.

Glen Burnie Bancorp Information

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

Forward-Looking Statements

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

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
	June 30,				March 31,				December 31,				June 30,
	2021				2021				2020				2020
	(unaudited)				(unaudited)				(audited)				(unaudited)
ASSETS
Cash and due from banks	$	2,223			$	2,130			$	2,117			$	2,387
Interest bearing deposits in other financial institutions		24,545				38,344				34,976				32,592
Total Cash and Cash Equivalents		26,768				40,474				37,093				34,979
Investment securities available for sale, at fair value		157,591				134,897				114,049				84,534
Restricted equity securities, at cost		1,062				1,062				1,199				1,199
Loans, net of deferred fees and costs		234,871				246,853				253,772				284,963
Less: Allowance for credit losses(1)		(2,887	)			(2,921	)			(1,476	)			(2,392	)
Loans, net		231,984				243,932				252,296				282,571
Real estate acquired through foreclosure		-				575				575				705
Premises and equipment, net		3,716				3,793				3,853				3,904
Bank owned life insurance		8,258				8,219				8,181				8,101
Deferred tax assets, net		1,004				1,646				142				476
Accrued interest receivable		1,304				1,277				1,302				1,226
Accrued taxes receivable		258				75				116				-
Prepaid expenses		407				410				318				329
Other assets		422				364				362				176
Total Assets	$	432,774			$	436,724			$	419,486			$	418,200
LIABILITIES
Noninterest-bearing deposits	$	143,254			$	147,822			$	132,626			$	127,621
Interest-bearing deposits		225,630				221,101				216,994				214,316
Total Deposits		368,884				368,923				349,620				341,937
Short-term borrowings		25,237				31,244				29,912				37,367
Defined pension liability		296				290				285				294
Accrued expenses and other liabilities		2,962				2,792				2,576				2,735
Total Liabilities		397,379				403,249				382,393				382,333
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,848,170, 2,845,104, 2,842,040 and 2,834,325 shares as of June 30, 2021, March 31, 2021, December 31, 2020, and June 30, 2020, respectively.		2,848				2,845				2,842				2,834
Additional paid-in capital		10,700				10,670				10,640				10,582
Retained earnings		22,104				21,909				23,071				22,145
Accumulated other comprehensive (loss) gain		(257	)			(1,949	)			540				306
Total Stockholders' Equity		35,395				33,475				37,093				35,867
Total Liabilities and Stockholders' Equity	$	432,774			$	436,724			$	419,486			$	418,200
(1) Effective January 1, 2021, the Company applied ASU 2016-13, Financial Instruments – Credit Losses (“ASC 326”), such that the allowance calculation is based on current expected credit loss methodology (“CECL”). Prior to January 1, 2021, the calculation was based on incurred loss methodology.

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
(unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2021 (unaudited)				2020 (unaudited)				2021 (unaudited)				2020 (unaudited)
Interest income
Interest and fees on loans	$	2,568			$	2,980			$	5,205			$	6,051
Interest and dividends on securities		698				317				1,203				698
Interest on deposits with banks and federal funds sold		24				39				43				86
Total Interest Income		3,290				3,336				6,451				6,835
Interest expense
Interest on deposits		158				289				325				614
Interest on short-term borrowings		116				109				232				235
Total Interest Expense		274				398				557				849
Net Interest Income		3,016				2,938				5,894				5,986
(Release) provision for credit losses		(67	)			487				(471	)			407
Net interest income after provision (release)		3,083				2,451				6,365				5,579
Noninterest income
Service charges on deposit accounts		37				38				77				94
Other fees and commissions		190				151				359				311
Gain on securities sold/redeemed		-				-				-				1
Gain on sale of other real estate		14				-				14				-
Income on life insurance		39				39				77				78
Total Noninterest Income		280				228				527				484
Noninterest expenses
Salary and employee benefits		1,588				1,597				3,218				3,302
Occupancy and equipment expenses		304				295				606				626
Legal, accounting and other professional fees		183				252				395				504
Data processing and item processing services		248				184				505				417
FDIC insurance costs		40				48				83				99
Advertising and marketing related expenses		24				19				45				44
Loan collection costs		22				21				28				88
Telephone costs		54				43				131				90
Other expenses		329				348				610				676
Total Noninterest Expenses		2,792				2,807				5,621				5,846
Income (loss) before income taxes		571				(128	)			1,271				217
Income tax expense (benefit)		91				(32	)			197				43
Net income (loss)	$	480			$	(96	)		$	1,074			$	174
Basic and diluted net income (loss) per common share	$	0.17			$	(0.03	)		$	0.38			$	0.06

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the six months ended June 30, 2021 and 2020
(dollars in thousands)
											Accumulated
				Additional							Other				Total
	Common			Paid-in			Retained				Comprehensive				Stockholders'
	Stock			Capital			Earnings				(Loss) Income				Equity
Balance, December 31, 2019	$	2,827		$	10,525		$	22,537			$	(209	)		$	35,680
Net income		-			-			174				-				174
Cash dividends, $0.20 per share		-			-			(566	)			-				(566	)
Dividends reinvested under dividend reinvestment plan		7			57			-				-				64
Other comprehensive income		-			-			-				515				515
Balance, June 30, 2020	$	2,834		$	10,582		$	22,145			$	306			$	35,867
											Accumulated
				Additional							Other				Total
	Common			Paid-in			Retained				Comprehensive				Stockholders'
	Stock			Capital			Earnings				Income/(Loss)				Equity
Balance, December 31, 2020	$	2,842		$	10,640		$	23,071			$	540			$	37,093
Net income		-			-			1,074				-				1,074
Cash dividends, $0.20 per share		-			-			(569	)			-				(569	)
Dividends reinvested under dividend reinvestment plan		6			60							-				66
Transition adjustment pursuant to adoption of ASU 2016-3 to adoption of ASU 2016-3								(1,472	)							(1,472	)
Other comprehensive loss		-			-			-				(797	)			(797	)
Balance, June 30, 2021	$	2,848		$	10,700		$	22,104			$	(257	)		$	35,395

THE BANK OF GLEN BURNIE
CAPITAL RATIOS
(dollars in thousands)
												To Be Well
												Capitalized Under
							To Be Considered					Prompt Corrective
							Adequately Capitalized					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2021:
(unaudited)
Common Equity Tier 1 Capital	$	36,160	13.45	%		$	12,100	4.50	%		$	17,478	6.50	%
Total Risk-Based Capital	$	38,419	14.29	%		$	21,511	8.00	%		$	26,889	10.00	%
Tier 1 Risk-Based Capital	$	36,160	13.45	%		$	16,133	6.00	%		$	21,511	8.00	%
Tier 1 Leverage	$	36,160	8.58	%		$	16,865	4.00	%		$	21,082	5.00	%
As of March 31, 2021:
(unaudited)
Common Equity Tier 1 Capital	$	36,425	13.68	%		$	11,982	4.50	%		$	17,307	6.50	%
Total Risk-Based Capital	$	38,720	14.54	%		$	21,302	8.00	%		$	26,627	10.00	%
Tier 1 Risk-Based Capital	$	36,425	13.68	%		$	15,976	6.00	%		$	21,302	8.00	%
Tier 1 Leverage	$	36,425	8.99	%		$	16,206	4.00	%		$	20,257	5.00	%
As of December 31, 2020:
(unaudited)
Common Equity Tier 1 Capital	$	36,442	13.09	%		$	12,532	4.50	%		$	18,101	6.50	%
Total Risk-Based Capital	$	37,951	13.63	%		$	22,278	8.00	%		$	27,848	10.00	%
Tier 1 Risk-Based Capital	$	36,442	13.09	%		$	16,709	6.00	%		$	22,278	8.00	%
Tier 1 Leverage	$	36,442	9.12	%		$	15,980	4.00	%		$	19,975	5.00	%
As of June 30, 2020:
(unaudited)
Common Equity Tier 1 Capital	$	35,386	12.10	%		$	13,157	4.50	%		$	19,004	6.50	%
Total Risk-Based Capital	$	37,875	12.95	%		$	23,389	8.00	%		$	29,237	10.00	%
Tier 1 Risk-Based Capital	$	35,386	12.10	%		$	17,542	6.00	%		$	23,389	8.00	%
Tier 1 Leverage	$	35,386	9.32	%		$	15,180	4.00	%		$	18,975	5.00	%

GLEN BURNIE BANCORP AND SUBSIDIARY
SELECTED FINANCIAL DATA
(dollars in thousands, except per share amounts)
	Three Months Ended												Six Months Ended								Year Ended
	June 30,				March 31,				June 30,				June 30,				June 30,				December 31,
	2021				2021				2020				2021				2020				2020
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Financial Data
Assets	$	432,774			$	436,724			$	418,200			$	432,774			$	418,200			$	419,486
Investment securities		157,591				134,897				84,534				157,591				84,534				114,049
Loans, (net of deferred fees & costs)		234,871				246,853				284,963				234,871				284,963				253,772
Allowance for loan losses		2,887				2,921				2,392				2,887				2,392				1,476
Deposits		368,884				368,923				341,937				368,884				341,937				349,620
Borrowings		25,237				31,244				37,367				25,237				37,367				29,912
Stockholders' equity		35,395				33,475				35,867				35,395				35,867				37,093
Net income		480				594				(96	)			1,074				174				1,668
Average Balances
Assets	$	429,499			$	414,801			$	396,633			$	422,150			$	390,171			$	400,462
Investment securities		150,556				118,606				69,729				134,581				70,254				88,088
Loans, (net of deferred fees & costs)		239,912				248,920				284,168				244,416				282,752				277,074
Deposits		371,115				355,538				336,330				363,327				328,468				336,394
Borrowings		20,617				20,564				20,949				20,590				22,321				24,317
Stockholders' equity		34,926				36,072				36,762				35,499				36,842				37,067
Performance Ratios
Annualized return on average assets		0.45	%			0.58	%			-0.10	%			0.51	%			0.09	%			0.42	%
Annualized return on average equity		5.51	%			6.68	%			-1.05	%			6.10	%			0.95	%			4.50	%
Net interest margin		2.92	%			2.93	%			3.12	%			2.92	%			3.23	%			3.18	%
Dividend payout ratio		59	%			48	%			-296	%			53	%			326	%			68	%
Book value per share	$	12.43			$	11.77			$	12.65			$	12.43			$	12.65			$	13.05
Basic and diluted net income per share		0.17				0.21				(0.03	)			0.38				0.06				0.59
Cash dividends declared per share		0.10				0.10				0.10				0.20				0.20				0.40
Basic and diluted weighted average shares outstanding		2,847,191				2,843,775				2,832,974				2,845,493				2,831,174				2,835,037
Asset Quality Ratios
Allowance for loan losses to loans		1.23	%			1.18	%			0.84	%			1.23	%			0.84	%			0.58	%
Nonperforming loans to avg. loans		1.72	%			1.79	%			1.39	%			1.69	%			1.40	%			1.63	%
Allowance for loan losses to nonaccrual & 90+ past due loans		69.9	%			65.5	%			60.4	%			69.9	%			60.4	%			32.6	%
Net charge-offs annualize to avg. loans		-0.06	%			-0.44	%			0.02	%			-0.25	%			0.12	%			-0.04	%
Capital Ratios
Common Equity Tier 1 Capital		13.45	%			13.68	%			12.10	%			13.45	%			12.10	%			13.09	%
Tier 1 Risk-based Capital Ratio		13.45	%			13.68	%			12.10	%			13.45	%			12.10	%			13.09	%
Leverage Ratio		8.58	%			8.99	%			9.32	%			8.58	%			9.32	%			9.12	%
Total Risk-Based Capital Ratio		14.29	%			14.54	%			12.95	%			14.29	%			12.95	%			13.63	%

For further information contact:

Jeffrey D. Harris, Chief Financial Officer
410-768-8883
jdharris@bogb.net
106 Padfield Blvd
Glen Burnie, MD 21061