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Glen Burnie Bancorp Announces Second Quarter 2024 Results

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Glen Burnie Bancorp (NASDAQ: GLBZ) reported a net loss of $204,000, or $0.07 per share, for Q2 2024, compared to net income of $276,000, or $0.10 per share, in Q2 2023. The company faced challenges due to the current interest rate environment, with increased deposit and borrowing costs impacting earnings. Despite this, the bank achieved net loan growth of $23.0 million during the quarter and $20.5 million year-over-year. Deposits increased 1.9% in the first six months of 2024. The bank's net interest margin expanded by 16 basis points to 3.02% on a linked-quarter basis. Total assets were $355.7 million on June 30, 2024, with a strong liquidity position and a tier 1 risk-based capital ratio of 15.59%.

Glen Burnie Bancorp (NASDAQ: GLBZ) ha riportato una perdita netta di 204.000 dollari, ovvero 0,07 dollari per azione, per il secondo trimestre del 2024, rispetto a un reddito netto di 276.000 dollari, o 0,10 dollari per azione, nel secondo trimestre del 2023. L'azienda ha affrontato sfide a causa dell'attuale contesto dei tassi di interesse, con aumenti dei costi di deposito e prestito che hanno avuto un impatto sui guadagni. Nonostante ciò, la banca ha raggiunto una crescita netta dei prestiti di 23,0 milioni di dollari durante il trimestre e di 20,5 milioni di dollari su base annuale. I depositi sono aumentati dell'1,9% nei primi sei mesi del 2024. Il margine d'interesse netto della banca è aumentato di 16 punti base al 3,02% rispetto al trimestre precedente. Gli attivi totali ammontavano a 355,7 milioni di dollari al 30 giugno 2024, con una posizione di liquidità solida e un rapporto di capitale di base di classe 1 su base di rischio del 15,59%.

Glen Burnie Bancorp (NASDAQ: GLBZ) reportó una pérdida neta de 204,000 dólares, o 0.07 dólares por acción, para el segundo trimestre de 2024, en comparación con una ganancia neta de 276,000 dólares, o 0.10 dólares por acción, en el segundo trimestre de 2023. La compañía enfrentó desafíos debido al actual entorno de tasas de interés, con aumentos en los costos de depósitos y préstamos que afectaron a las ganancias. A pesar de esto, el banco logró un crecimiento neto de préstamos de 23.0 millones de dólares durante el trimestre y de 20.5 millones de dólares a nivel interanual. Los depósitos aumentaron un 1.9% en los primeros seis meses de 2024. El margen de interés neto del banco se expandió en 16 puntos básicos al 3.02% en comparación con el trimestre anterior. Los activos totales fueron de 355.7 millones de dólares al 30 de junio de 2024, con una fuerte posición de liquidez y un ratio de capital básico de nivel 1 basado en riesgos del 15.59%.

글렌 버니 뱅코프 (NASDAQ: GLBZ)는 2024년 2분기에 204,000달러의 순손실, 즉 주당 0.07달러를 보고했으며, 이는 2023년 2분기에 276,000달러의 순이익(주당 0.10달러)과 비교됩니다. 이 회사는 현재의 금리 환경으로 인한 어려움에 직면했으며, 예금 및 대출 비용의 증가가 수익에 영향을 미쳤습니다. 그럼에도 불구하고, 이 은행은 분기 동안 순대출 성장 2300만 달러를 달성했으며, 연간으로는 2050만 달러입니다. 2024년 첫 6개월 동안 예금이 1.9% 증가했습니다. 은행의 순이자 마진은 직전 분기 대비 16bp 확대되어 3.02%에 도달했습니다. 2024년 6월 30일 현재 총 자산은 3억 5570만 달러였으며, 강력한 유동성 위치와 15.59%의 위험기반 1급 자본 비율을 보유하고 있습니다.

Glen Burnie Bancorp (NASDAQ: GLBZ) a déclaré une perte nette de 204 000 $, soit 0,07 $ par action, pour le 2e trimestre 2024, contre un bénéfice net de 276 000 $, soit 0,10 $ par action, au 2e trimestre 2023. L'entreprise a rencontré des défis en raison de l'environnement actuel des taux d'intérêt, avec une augmentation des coûts de dépôt et d'emprunt affectant les bénéfices. Malgré cela, la banque a réalisé une croissance nette des prêts de 23,0 millions $ durant le trimestre et de 20,5 millions $ d'une année sur l'autre. Les dépôts ont augmenté de 1,9 % au cours des six premiers mois de 2024. La marge d'intérêt nette de la banque a augmenté de 16 points de base pour atteindre 3,02 % par rapport au trimestre précédent. Les actifs totaux s'élevaient à 355,7 millions $ au 30 juin 2024, avec une position de liquidité solide et un ratio de capital de base de niveau 1 de 15,59 %.

Glen Burnie Bancorp (NASDAQ: GLBZ) berichtete für das 2. Quartal 2024 von einem Nettoverlust von 204.000 USD, beziehungsweise 0,07 USD pro Aktie, im Vergleich zu einem Nettogewinn von 276.000 USD, oder 0,10 USD pro Aktie, im 2. Quartal 2023. Das Unternehmen hatte mit den Herausforderungen des aktuellen Zinsumfelds zu kämpfen, wobei höhere Einlagen- und Kreditkosten die Erträge belasteten. Dennoch erreichte die Bank ein netto Kreditwachstum von 23,0 Millionen USD im Quartal und 20,5 Millionen USD im Jahresvergleich. Die Einlagen stiegen in den ersten sechs Monaten 2024 um 1,9%. Die Nettozinsmarge der Bank erweiterte sich um 16 Basispunkte auf 3,02% im Vergleich zum vorherigen Quartal. Die Gesamtaktiva betrugen am 30. Juni 2024 355,7 Millionen USD, mit einer starken Liquiditätsposition und einem Tier-1-Kapitalquote von 15,59%.

Positive
  • Net loan growth of $23.0 million in Q2 and $20.5 million year-over-year
  • Deposits increased 1.9% in the first six months of 2024
  • Net interest margin expanded by 16 basis points to 3.02% on a linked-quarter basis
  • Strong liquidity position maintained
  • Tier 1 risk-based capital ratio of 15.59%, well above regulatory requirements
Negative
  • Net loss of $204,000 in Q2 2024, compared to net income of $276,000 in Q2 2023
  • Increased deposit and borrowing costs due to higher interest rates
  • Net interest income decreased $935,000 or 14.86% to $5.4 million in first half of 2024
  • Return on average assets decreased to -0.22% from 0.31% year-over-year
  • Cost of funds increased 0.99% year-over-year to 1.14%

Insights

Glen Burnie Bancorp's Q2 2024 results reveal significant challenges in the current high-interest rate environment. The bank reported a net loss of $204,000, or $0.07 per share, compared to a net income of $276,000 in Q2 2023. This stark reversal is primarily due to increased interest expenses and a substantial rise in the allowance for credit losses.

Key financial metrics paint a concerning picture:

  • Net interest margin contracted to 3.02%, down from 3.44% in Q2 2023
  • Return on average assets fell to -0.22% from 0.31%
  • Return on average equity plummeted to -4.72% from 5.88%

However, there are some positive signs. The bank achieved net loan growth of $23 million during the quarter and $20.5 million year-over-year. Deposits also increased by 1.9% in the first half of 2024, reversing previous declines. The bank's strong capital position, with a total regulatory capital to risk-weighted assets ratio of 16.84%, provides a buffer for future growth.

The increased provision for credit losses ($526,000 in Q2 2024 vs $127,000 in Q2 2023) is a double-edged sword. While it negatively impacts current earnings, it strengthens the bank's position against potential future loan losses in an uncertain economic environment.

Investors should closely monitor the bank's ability to manage its interest expenses and grow its loan portfolio profitably in the coming quarters. The management's focus on expanding treasury management capabilities and enhancing small business lending could be key drivers for future performance.

Glen Burnie Bancorp's Q2 2024 results reflect broader trends in the banking sector, particularly for smaller community banks. The challenging interest rate environment is putting pressure on net interest margins and profitability across the industry.

Several market dynamics are at play:

  • The inverted yield curve is squeezing profitability, as banks pay higher rates on short-term deposits while earning lower yields on longer-term loans and investments.
  • Competition for deposits remains fierce, driving up funding costs.
  • Economic uncertainty is leading to increased provisions for potential loan losses.

Despite these headwinds, Glen Burnie Bancorp's loan growth of 11.60% year-over-year is noteworthy. This outpaces the industry average and suggests the bank is successfully capturing market share in its local area.

The bank's focus on treasury management and small business lending aligns with broader industry trends. Many community banks are leveraging their local relationships and personalized service to compete in these areas against larger institutions.

The slight increase in deposits (1.9% in the first half of 2024) is a positive sign, especially given the challenges many banks face in retaining deposits in the current high-rate environment. However, the 15.95% year-over-year decrease in noninterest-bearing deposits is concerning and could impact profitability if this trend continues.

Looking ahead, the bank's performance will largely depend on the trajectory of interest rates and the overall economic environment. If rates stabilize or begin to decrease, it could alleviate some of the pressure on the bank's net interest margin and profitability.

GLEN BURNIE, Md., July 26, 2024 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today a net loss of $204,000, or $0.07 per basic and diluted common share for the three-month period ended June 30, 2024, compared to net income of $276,000, or $0.10 per basic and diluted common share for the three-month period ended June 30, 2023.   Bancorp reported a net loss of $201,000, or $0.07 per basic and diluted common share for the six-month period ended June 30, 2024, compared to net income of $710,000, or $0.25 per basic and diluted common share for the same period in 2023. On June 30, 2024, Bancorp had total assets of $355.7 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, will pay its 128th consecutive quarterly dividend on August 5, 2024.

“The current interest rate environment remains challenging for community banks with respect to profitability,” said Mark C. Hanna, President, and Chief Executive Officer. “The continued surprising strength in the economy has caused the current interest rate environment to remain ‘higher for longer’ which puts continued pressure on banks in the competition for deposits and the cost of funds.   Our second quarter, 2024, earnings were impacted by a $599,000 increase in our allowance for credit losses related to growth in the loan portfolio and continued to be negatively impacted by our increased deposit and borrowing costs due to an inverted yield curve and rigorous competition for core deposits. Notwithstanding, our net interest margin expanded by sixteen basis points on a linked-quarter basis to 3.02%, signifying a possible turning point in the current cycle while achieving net loan growth of $23.0 million during the quarter and $20.5 million year-over-year. Additionally, after declines in 2022 and 2023, deposits increased 1.9% in the first six months of 2024. As we face this difficult revenue environment, we continue to hold the line on noninterest expenses, which were down by 1.1% on a linked quarter basis, and down 2.0% for the first six months of this year versus the same period last year. We also continue to post strong credit quality metrics, with a non-performing asset to total assets ratio of 0.09% as of June 30, 2024.”

In closing, Mr. Hanna added, “The Bank of Glen Burnie’s strategic goals focus on growing deposits, loans and client relationships. To achieve these objectives and provide the level of service our clients have come to expect from our organization over the past 75 years, we need to make investments in our products, infrastructure and people. The declaration of dividends in future periods will be evaluated against the need to reinvest in our future success. We are focused on executing against our long-term strategic plan and realizing the value from expanded treasury management capabilities and providing premier relationship banking services. We plan to add resources to drive deposit growth, enhance our small business lending capabilities, and make strategic adjustments to our operating structure to provide more value to both business and retail customers. These actions will significantly enhance our infrastructure and allow us to better serve our communities. Based on our capital levels, conservative underwriting policies, and on- and off-balance sheet liquidity, management expects to navigate the uncertainties and remain well-capitalized.”

Highlights for the First Six Months of 2024

Despite growth in loans and deposits in the first six months of the year, net interest income decreased $935,000, or 14.86% to $5.4 million through June 30, 2024, as compared to $6.3 million during the same period of 2023. The decrease resulted primarily from a $1.7 million increase in interest expense. The increase in interest on deposits was driven by the higher cost of money market deposit balances. The increase in interest on borrowings was driven by a $33.4 million increase in the average balance of borrowed funds due to the elevated level of deposit runoff that occurred in 2023.

Due to growth of $24.7million in the loan portfolio and a 0.07% increase in the current expected credit loss (“CECL”) percentage, the Company added $468,000 to its allowance for credit losses on loans in the first half of 2024, as compared to $60,000 in the first half of 2023. While this provision negatively impacted earnings in the first half of the year, the growth in loan balances should generate additional interest revenue in future periods. The Company expects that its strong liquidity and capital positions, along with the Bank’s total regulatory capital to risk weighted assets of 16.84% on June 30, 2024, as compared to 17.88% for the same period of 2023, will provide ample capacity for future growth.

Return on average assets for the three-month period ended June 30, 2024, was -0.22%, as compared to 0.31% for the three-month period ended June 30, 2023. Return on average equity for the three-month period ended June 30, 2024, was -4.72%, as compared to 5.88% for the three-month period ended June 30, 2023. Lower net income and a higher average asset balance primarily drove the lower return on average assets, while lower net income and a lower average equity balance primarily drove the lower return on average equity.

The cost of funds increased 0.99% when comparing June 30, 2024, to the same period in 2023 from 0.15% to 1.14%. This 0.99% increase was primarily due to the change in the funding mix between lower cost interest-bearing and noninterest-bearing deposit balances and higher cost borrowed funds.

On June 30, 2024, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 15.59% on June 30, 2024, as compared to 17.37% on December 31, 2023. 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 $355.7 million on June 30, 2024, a decrease of $7.9 million or 2.17%, from $363.6 million on June 30, 2023.   Investment securities decreased by $33.6 million or 22.30% to $117.2 million as of June 30, 2024, compared to $150.8 million for the same period of 2023.   Loans, net of deferred fees and costs, were $201.5 million on June 30, 2024, an increase of $20.9 million or 11.60%, from $180.6 million on June 30, 2023. Cash and cash equivalents increased $5.0 million or 42.89%, from June 30, 2023, to June 30, 2024.

Total deposits were $305.9 million on June 30, 2024, a decrease of $23.4 million or 7.09%, from $329.2 million on June 30, 2023. Despite the year-over-year decline, deposit balances have increased $5.8 million or 1.9% from December 31, 2023. Noninterest-bearing deposits were $109.6 million on June 30, 2024, a decrease of $20.8 million or 15.95%, from $130.4 million on June 30, 2023.   Interest-bearing deposits were $196.2 million on June 30, 2024, a decrease of $2.6 million or 1.29%, from $198.8 million on June 30, 2023. Total borrowings were $30.0 million on June 30, 2024, an increase of $15.0 million or 100.00%, from $15.0 million on June 30, 2023.  

As of June 30, 2024, total stockholders’ equity was $17.5 million (4.91% of total assets), equivalent to a book value of $6.04 per common share. Total stockholders’ equity on June 30, 2023, was $17.3 million (4.75% of total assets), equivalent to a book value of $6.01 per common share.  

Asset quality, which has trended within a narrow range over the past several years, has remained sound as of June 30, 2024. 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 0.09% of total assets on June 30, 2024, compared to 0.15% on December 31, 2023, demonstrating positive asset quality trends across the portfolio. The allowance for credit losses on loans was $2.63 million, or 1.30% of total loans, as of June 30, 2024, compared to $2.16 million, or 1.22% of total loans, as of December 31, 2023. The allowance for credit losses for unfunded commitments was $571,000 as of June 30, 2024, compared to $473,000 as of December 31, 2023.  

Review of Financial Results

For the three-month periods ended June 30, 2024, and 2023

Net loss for the three-month period ended June 30, 2024, was $204,000, as compared to net income of $276,000 for the three-month period ended June 30, 2023. The decrease is primarily the result of a $485,000 increase in interest expense on short-term borrowings, a $469,000 increase in interest expense on deposits and a $399,000 increase in the provision for credit losses on loans, partially offset by an increase of $389,000 in loan interest income and fees, a $381,000 increase in interest on deposits with banks and a $215,000 decrease in the provision for income taxes. The Company’s need to defend its deposit base as well as grow interest-earning asset balances necessitated a strategic change in direction.

Net interest income for the three-month period ended June 30, 2024, totaled $2.8 million, a decrease of $328,000 from the three-month period ended June 30, 2023. The decrease in net interest income was due to a $955,000 increase in the cost of interest-bearing deposits and borrowings driven by a $26.6 million increase in the average balance of interest-bearing funds and a $19.1 million decrease in the average balance of noninterest-bearing deposits. The higher expenses were partially offset by a $626,000 increase in total interest income due to a $7.4 million increase in the average balance of interest earning assets.

Net interest margin for the three-month period ended June 30, 2024, was 3.02%, compared to 3.44% for the same period of 2023.   Higher average interest-bearing funds, lower average noninterest-bearing funds, and higher cost of funds partially offset by higher average yields and balances on interest-earning assets were the primary drivers of year-over-year results. The average balance of interest-bearing funds and noninterest-bearing funds increased $26.6 million and decreased $19.1 million, respectively, and the cost of funds increased 1.11%, when comparing the three-month periods ending June 30, 2023, and 2024. The average balance of interest-earning assets increased $7.4 million while the yield increased 0.62% from 3.60% to 4.22%, when comparing the three-month periods ending June 30, 2023, and 2024, respectively.

The average balance of interest-bearing deposits in banks and investment securities increased $2.4 million from $181.9 million to $184.3 million for the second quarter of 2024, compared to the same period of 2023 while the yield increased from 2.49% to 2.97% during that same period. The increase in yields is attributed to the higher interest rate environment and its positive impact on cash balances and investment yields.

Average loan balances increased $5.0 million to $186.7 million for the three-month period ended June 30, 2024, compared to $181.7 million for the same period of 2023, while the yield increased from 4.71% to 5.44% during that same period. The increase in loan yields for the second quarter of 2024 reflected the runoff of the lower yielding loans and origination of higher yielding loans in the current higher rate environment.

The provision of allowance for credit loss on loans for the three-month period ended June 30, 2024, was $526,000, compared to $127,000 for the same period of 2023. The increase in the provision for the three-month period ended June 30, 2024, when compared to the three-month period ended June 30, 2023, primarily reflects a $20.9 million increase in the reservable balance of the loan portfolio and a 0.07% increase in the current expected credit loss percentage.

For the three-month period ended June 30, 2024, noninterest expense was $2.89 million, compared to $2.92 million for the three-month period ended June 30, 2023, a decrease of $31,000. The primary contributors to the $31,000 decrease, when compared to the three-month period ended June 30, 2023, were decreases in salary and employee benefits, and data processing and item processing services, offset by increases in occupancy and equipment expenses, legal, accounting, and other professional fees, and other expenses.

For the six-month periods ended June 30, 2024, and 2023

Net loss for the six-month period ended June 30, 2024, was $201,000, as compared to net income of $710,000 for the six-month period ended June 30, 2023. The decrease is primarily the result of a $917,000 increase in interest expense on short-term borrowings, a $764,000 increase in interest expense on deposits and a $609,000 increase in the provision for credit losses on loans, partially offset by an increase of $517,000 in loan interest income and fees, a $402,000 increase in interest on deposits with banks and a $532,000 decrease in the provision for income taxes.

Net interest income for the six-month period ended June 30, 2024, totaled $5.4 million, a decrease of $935,000 from the six-month period ended June 30, 2023. The decrease in net interest income was due to a $1.7 million increase in the cost of interest-bearing deposits and borrowings driven by a $17.3 million increase in the average balance of interest-bearing funds and a $21.7 million decrease in the average balance of noninterest-bearing deposits. The higher expenses were partially offset by a $746,000 increase in total interest income due to a 0.44% increase in the yield of interest earning assets.

Net interest margin for the six-month period ended June 30, 2024, was 2.94%, compared to 3.42% for the same period of 2023. Higher average interest-bearing funds, lower average noninterest-bearing funds, and higher cost of funds partially offset by higher average yields on interest-earning assets were the primary drivers of year-over-year results. The average balance of interest-bearing funds and noninterest-bearing funds increased $17.3 million and decreased $21.7 million, respectively, and the cost of funds increased 0.99%, when comparing the six-month periods ending June 30, 2023, and 2024. The average balance of interest-earning assets decreased $4.5 million while the yield increased 0.44% from 3.56% to 4.00%, when comparing the six-month periods ending June 30, 2023, and 2024, respectively.

The average balance of interest-bearing deposits in banks and investment securities decreased $2.5 million from $187.7 million to $185.2 million for the first half of 2024, compared to the same period of 2023 while the yield increased from 2.48% to 2.76% during that same period. The increase in yields is attributed to the higher interest rate environment and its positive impact on cash balances and investment yields.

Average loan balances decreased $1.9 million to $181.3 million for the six-month period ended June 30, 2024, compared to $183.2 million for the same period of 2023, while the yield increased from 4.65% to 5.26% during that same period. The increase in loan yields for the first half of 2024 reflected the runoff of the lower yielding loans and origination of higher yielding loans in the current higher rate environment.

The Company recorded a provision of allowance for credit loss on loans of $694,000 for the six-month period ending June 30, 2024, compared to $85,000 for the same period in 2023. The $609,000 increase in the provision in 2024, compared to 2023, primarily reflects a $20.9 million increase in the reservable balance of the loan portfolio and a 0.07% increase in the current expected credit loss percentage.   As a result, the allowance for credit loss on loans was $2.63 million on June 30, 2024, representing 1.30% of total loans, compared to $2.22 million, or 1.23% of total loans on June 30, 2023.  

For the six-month period ended June 30, 2024, noninterest expense was $5.8 million, compared to $5.9 million for the six-month period ended June 30, 2023. The primary contributors when comparing to the six-month period ended June 30, 2023, were decreases in salary and employee benefits costs, and data processing and item processing services, partially offset by increases in occupancy and equipment expenses, and other expenses.

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,
 2024 2024 2023 2023
 (unaudited) (unaudited) (audited) (unaudited)
ASSETS       
Cash and due from banks$1,804  $9,091  $1,940  $1,965 
Interest-bearing deposits in other financial institutions 14,982   33,537   13,301   9,783 
   Total Cash and Cash Equivalents 16,786   42,628   15,241   11,748 
        
Investment securities available for sale, at fair value 117,180   128,727   139,427   150,820 
Restricted equity securities, at cost 246   246   1,217   403 
        
Loans, net of deferred fees and costs 201,500   177,950   176,307   180,551 
Less: Allowance for credit losses(1) (2,625)  (2,035)  (2,157)  (2,222)
   Loans, net 198,875   175,915   174,150   178,329 
        
Premises and equipment, net 2,833   2,928   3,046   3,276 
Bank owned life insurance 8,744   8,700   8,657   8,572 
Deferred tax assets, net 8,329   8,255   7,897   8,520 
Accrued interest receivable 1,358   1,281   1,192   1,139 
Accrued taxes receivable 552   363   121   70 
Prepaid expenses 355   460   475   382 
Other assets 458   367   390   348 
   Total Assets$ 355,716  $ 369,870  $ 351,813  $ 363,607 
        
LIABILITIES       
Noninterest-bearing deposits$109,631  $115,167  $116,922  $130,430 
Interest-bearing deposits 196,235   194,064   183,145   198,794 
Total Deposits 305,866   309,231   300,067   329,224 
        
Short-term borrowings 30,000   40,000   30,000   15,000 
Defined pension liability 328   327   324   320 
Accrued expenses and other liabilities 2,051   2,183   2,097   1,804 
   Total Liabilities 338,245   351,741   332,488   346,348 
        
STOCKHOLDERS' EQUITY       
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,893,648; 2,887,467; 2,882,627; 2,872,834 shares as of June 30, 2024, March 31, 2024, December 31, 2023, and June 30,2023 respectively. 2,894   2,887   2,883   2,873 
Additional paid-in capital 11,014   10,989   10,964   10,914 
Retained earnings 23,081   23,575   23,859   23,716 
Accumulated other comprehensive loss (19,518)  (19,322)  (18,381)  (20,244)
   Total Stockholders' Equity 17,471   18,129   19,325   17,259 
   Total Liabilities and Stockholders' Equity$ 355,716  $ 369,870  $ 351,813  $ 363,607 



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,
 2024 2023 2024 2023
Interest income       
Interest and fees on loans$2,525  $2,135 $4,740  $4,223
Interest and dividends on securities 854   999  1,791   1,964
Interest on deposits with banks and federal funds sold 514   133  767   365
Total Interest Income 3,893   3,267  7,298   6,552
        
Interest expense       
Interest on deposits 584   115  986   222
Interest on short-term borrowings 523   38  955   38
Total Interest Expense 1,107   153  1,941   260
        
Net Interest Income 2,786   3,114  5,357   6,292
Provision of credit loss allowance 526   127  694   85
Net interest income after provision of credit loss provision 2,260   2,987  4,663   6,207
        
Noninterest income       
Service charges on deposit accounts 35   38  73   80
Other fees and commissions 162   161  311   326
Income on life insurance 44   40  87   79
Total Noninterest Income 241   239  471   485
        
Noninterest expenses       
Salary and employee benefits 1,601   1,701  3,219   3,398
Occupancy and equipment expenses 338   299  669   627
Legal, accounting and other professional fees 248   235  502   498
Data processing and item processing services 243   281  492   549
FDIC insurance costs 40   37  78   82
Advertising and marketing related expenses 25   23  48   45
Loan collection costs -   2  6   3
Telephone costs 29   34  69   75
Other expenses 370   313  672   593
Total Noninterest Expenses 2,894   2,925  5,755   5,870
        
(Loss) income before income taxes (393)  301  (621)  822
Income tax (benefit) expense (189)  25  (420)  112
        
Net (loss) income$ (204) $ 276 $ (201) $ 710
        
Basic and diluted net (loss) income per common share $ (0.07) $ 0.10 $ (0.07) $ 0.25
        



GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the six months ended June 30, 2024 and 2023
(dollars in thousands)
(unaudited)
          
       Accumulated  
   Additional   Other Total
 Common  Paid-in Retained Comprehensive Stockholders'
 Stock Capital Earnings Income (Loss) Equity
Balance, December 31, 2022$2,865 $10,862 $23,579  $(21,252) $16,054 
          
Net income -  -  710   -   710 
Cash dividends, $0.20 per share -  -  (573)  -   (573)
Dividends reinvested under         
dividend reinvestment plan 8  52  -   -   60 
Other comprehensive income -  -  -   1,008   1,008 
Balance, June 30, 2023$2,873 $10,914 $23,716  $(20,244) $17,259 
          
          
       Accumulated  
   Additional   Other Total
 Common  Paid-in Retained Comprehensive Stockholders'
 Stock Capital Earnings Loss Equity
Balance, December 31, 2023$2,883 $10,964 $23,859  $(18,381) $19,325 
          
Net income -  -  (201)  -   (201)
Cash dividends, $0.20 per share -  -  (577)  -   (577)
Dividends reinvested under         
dividend reinvestment plan 11  50  -   -   61 
Other comprehensive loss -  -  -   (1,137)  (1,137)
Balance, June 30, 2024$2,894 $11,014 $23,081  $(19,518) $17,471 



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
 AmountRatio AmountRatio AmountRatio
As of June 30, 2024:        
Common Equity Tier 1 Capital$36,89615.59% $9,8104.50% $14,1706.50%
Total Risk-Based Capital$39,85716.84% $17,4408.00% $21,79910.00%
Tier 1 Risk-Based Capital$36,89615.59% $13,0806.00% $17,4408.00%
Tier 1 Leverage$36,89610.10% $14,3294.00% $17,9115.00%
         
As of March 31, 2024        
Common Equity Tier 1 Capital$37,35917.14% $10,0934.50% $14,5796.50%
Total Risk-Based Capital$39,89118.30% $17,9448.00% $22,43010.00%
Tier 1 Risk-Based Capital$37,35917.14% $13,4586.00% $17,9448.00%
Tier 1 Leverage$37,35910.43% $14,3694.00% $17,9615.00%
         
As of December 31, 2023:        
Common Equity Tier 1 Capital$37,97517.37% $9,8404.50% $14,2136.50%
Total Risk-Based Capital$40,23718.40% $17,4938.00% $21,86710.00%
Tier 1 Risk-Based Capital$37,97517.37% $13,1206.00% $17,4938.00%
Tier 1 Leverage$37,97510.76% $14,1134.00% $17,6415.00%
         
As of June 30, 2023:        
Common Equity Tier 1 Capital$37,75516.83% $10,0934.50% $14,5796.50%
Total Risk-Based Capital$40,10517.88% $17,9448.00% $22,43010.00%
Tier 1 Risk-Based Capital$37,75516.83% $13,4586.00% $17,9448.00%
Tier 1 Leverage$37,75510.51% $14,3694.00% $17,9615.00%



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,
 2024 2024 2023 2024 2023 2023
 (unaudited) (unaudited) (unaudited) (unaudited) (audited) (unaudited)
            
Financial Data           
Assets$355,716  $369,870  $363,607  $355,716  $363,607  $351,813 
Investment securities 117,180   128,727   150,820   117,180   150,820   139,427 
Loans, (net of deferred fees & costs) 201,500   177,950   180,551   201,500   180,551   176,307 
Allowance for loan losses 2,625   2,035   2,222   2,625   2,222   2,157 
Deposits 305,866   309,231   329,224   305,866   329,224   300,067 
Borrowings 30,000   40,000   15,000   30,000   15,000   30,000 
Stockholders' equity 17,471   18,129   17,259   17,471   17,259   19,325 
Net (loss) income (204)  3   276   (201)  710   1,429 
            
Average Balances           
Assets$366,071  $358,877  $359,482  $362,474  $366,536  $361,731 
Investment securities 148,690   163,618   170,653   156,154   171,586   173,902 
Loans, (net of deferred fees & costs) 186,650   175,914   181,693   181,282   183,240   179,790 
Deposits 307,427   305,858   335,031   306,642   344,446   330,095 
Borrowings 38,891   31,667   3,793   35,279   1,898   12,580 
Stockholders' equity 17,369   19,124   18,797   18,247   18,309   17,105 
            
Performance Ratios           
Annualized return on average assets -0.22%  0.00%  0.31%  -0.11%  0.39%  0.40%
Annualized return on average equity -4.72%  0.06%  5.88%  -2.22%  7.82%  8.35%
Net interest margin 3.02%  2.86%  3.44%  2.94%  3.42%  3.31%
Dividend payout ratio -142%  9426%  104%  -287%  81%  80%
Book value per share$6.04  $6.28  $6.01  $6.04  $6.01  $6.70 
Basic and diluted net income per share (0.07)  -   0.10   (0.07)  0.25   0.50 
Cash dividends declared per share 0.10   0.10   0.10   0.20   0.20   0.40 
Basic and diluted weighted average shares outstanding 2,891,203   2,885,552   2,871,026   2,888,378   2,873,129   2,873,500 
            
Asset Quality Ratios           
Allowance for loan losses to loans 1.30%  1.14%  1.23%  1.30%  1.23%  1.22%
Nonperforming loans to avg. loans 0.17%  0.21%  0.32%  0.18%  0.31%  0.29%
Allowance for loan losses to nonaccrual & 90+ past due loans 827.1%  549.1%  385.8%  827.1%  385.8%  409.3%
Net charge-offs annualize to avg. loans -0.14%  0.66%  0.15%  0.25%  0.03%  0.06%
            
Capital Ratios           
Common Equity Tier 1 Capital 15.59%  17.14%  16.83%  15.59%  16.83%  17.37%
Tier 1 Risk-based Capital Ratio 15.59%  17.14%  16.83%  15.59%  16.83%  17.37%
Leverage Ratio 10.10%  10.43%  10.51%  10.10%  10.51%  10.76%
Total Risk-Based Capital Ratio 16.84%  18.30%  17.88%  16.84%  17.88%  18.40%
            

FAQ

What was Glen Burnie Bancorp's (GLBZ) net income for Q2 2024?

Glen Burnie Bancorp reported a net loss of $204,000, or $0.07 per share, for Q2 2024.

How did GLBZ's loan portfolio perform in Q2 2024?

GLBZ achieved net loan growth of $23.0 million during Q2 2024 and $20.5 million year-over-year.

What was Glen Burnie Bancorp's (GLBZ) net interest margin in Q2 2024?

GLBZ's net interest margin expanded by 16 basis points to 3.02% on a linked-quarter basis in Q2 2024.

How did GLBZ's deposits change in the first half of 2024?

Deposits for Glen Burnie Bancorp increased 1.9% in the first six months of 2024.

What was Glen Burnie Bancorp's (GLBZ) tier 1 risk-based capital ratio as of June 30, 2024?

GLBZ's tier 1 risk-based capital ratio was approximately 15.59% on June 30, 2024.

Glen Burnie Bancorp

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Banks - Regional
State Commercial Banks
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GLEN BURNIE