Glen Burnie Bancorp Announces Second Quarter 2022 Results

GLEN BURNIE, Md., Aug. 08, 2022 (GLOBE NEWSWIRE) -- 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 120^th 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 $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.

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	%

For further information contact:

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