Glen Burnie Bancorp Announces Third Quarter 2020 Results

Rhea-AI Summary

Glen Burnie Bancorp (NASDAQ: GLBZ) reported a net income of $949,000 for Q3 2020, up from $606,000 in Q3 2019, reflecting a 56.6% increase. For the nine-month period ending September 30, 2020, net income was $1,123,000 compared to $1,060,000 in 2019. Total assets grew to $430.9 million, a 12.39% rise year-over-year. The bank faced challenges from the low-interest-rate environment, impacting net interest income, which decreased to $3.0 million in Q3 2020. Bancorp maintains strong liquidity with a tier 1 risk-based capital ratio of approximately 12.10%. It also paid its 113th consecutive quarterly dividend.

Positive

• Net income for Q3 2020 increased by 56.6% to $949,000 compared to Q3 2019.
• Total assets rose by 12.39% to $430.9 million year-over-year.
• Return on average assets improved to 0.92% in Q3 2020 from 0.63% in Q3 2019.
• Strong liquidity with a tier 1 risk-based capital ratio of approximately 12.10%.

Negative

• Net interest income decreased to $3.0 million in Q3 2020, down by $148,000 from Q3 2019.
• Loans decreased by $9.8 million or 3.45% year-over-year to $274.1 million.
• Continued pressure from the low-interest-rate environment is expected to impact profits.

GLEN BURNIE, Md., Nov. 04, 2020 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today a net income of $949,000, or $0.33 per basic and diluted common share for the three-month period ended September 30, 2020, as compared to net income of $606,000, or $0.21 per basic and diluted common share for the three-month period ended September 30, 2019.

Bancorp reported net income of $1,123,000, or $0.40 per basic and diluted common share for the nine-month period ended September 30, 2020, compared to $1,060,000, or $0.38 per basic and diluted common share for the same period in 2019. At September 30, 2020, Bancorp had total assets of $430.9 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, paid its 113th consecutive quarterly dividend on November 2, 2020.

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

"Our year-over-year earnings per share for the first nine-months of 2020 was $0.02 higher than during the same period in 2019, reflecting our focus on expense reduction as we work to drive efficiencies throughout the Bank and improve our profitability. Looking forward, we continue to seek opportunities to further reduce our cost structure as we work to achieve an efficiency ratio more in-line with our peers. An interest rate environment rivaling that of the Great Recession continued to negatively impact our margins, and therefore our profits for the third quarter. The decrease in yields and cost of funds reflect the impact of a target federal funds rate near zero and a flat yield curve. However, we are encouraged by the robust deposit growth experienced this year. The negative impact of a low interest rate environment on loan originations combined with our outstanding credit quality, disciplined loan pricing and a beneficial balance sheet structure, allowed us to reduce the provision for loan losses by $530,000 for the three-month period ended September 30, 2020 as compared to the same period last year. We remain well capitalized and continue to reward our shareholders, having paid quarterly cash dividends for 113 consecutive quarters.”

In closing, Mr. Long added, “As we look ahead to the remainder of 2020, downside risks remain from the economic uncertainty and the significant pressure from the low interest rates. Despite this, our underlying business remains strong, benefiting from our capital levels, conservative underwriting policies, on- and off-balance sheet liquidity and loan diversification. We are closely monitoring the rapid developments regarding the pandemic and remain confident in our long-term strategic vision. I remain proud of our employees and their ability to continue to adapt and deliver outstanding customer service during this challenging time. Headquartered in the dynamic Northern Anne Arundel County market, we believe our Bank is well positioned with excellent asset quality and capital levels, and an experienced and seasoned executive team. We remain deeply committed to serving the financial needs of the community through the development of new loan and deposit products.”

Highlights for the First Nine Months of 2020

Total interest income declined $0.7 million to $10.2 million for the nine-month period ending September 30, 2020, compared to the same period in 2019. This was driven by a decrease in interest income on loans consistent with declines in the average balance and yields of this portfolio, and lower interest earned on overnight funds, mainly attributable to lower market rates. Beyond pricing pressure/competition and the absolute low level of rates, the current economic outlook and prospects of a sustained historic low interest rate environment will likely continue to place pressure on net interest margin. Exacerbating the above, the Company maintained significantly higher levels of excess balance sheet liquidity during the first nine-months of 2020 as compared to the same period in 2019. Bancorp has strong liquidity and capital positions that provide ample capacity for future growth, along with the Bank’s total regulatory capital to risk weighted assets of 12.66% at September 30, 2020, as compared to 13.18% for the same period of 2019.

Return on average assets for the three-month period ended September 30, 2020 was 0.92%, as compared to 0.63% for the three-month period ended September 30, 2019. Return on average equity for the three-month period ended September 30, 2020 was 10.18%, as compared to 6.77% for the three-month period ended September 30, 2019. The lower provision for credit losses and noninterest expenses, offset by lower revenue, primarily drove the higher returns.

The book value per share of Bancorp’s common stock was $12.86 at September 30, 2020, as compared to $12.52 per share at September 30, 2019.

At September 30, 2020, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 12.10% at September 30, 2020, as compared to 12.36% at September 30, 2019. Liquidity remained strong due to managed cash and cash equivalents, borrowing lines with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the size and composition of the bond portfolio.

Balance Sheet Review

Total assets were $430.9 million at September 30, 2020, an increase of $47.5 million or 12.39%, from $383.4 million at September 30, 2019. Investment securities were $114.5 million at September 30, 2020, an increase of $49.7 million or 76.70%, from $64.8 million at September 30, 2019. Loans, net of deferred fees and costs, were $274.1 million at September 30, 2020, a decrease of $9.8 million or 3.45%, from $283.9 million at September 30, 2019. Net loans during the first nine-months of 2020 include loans funded under the SBA PPP. These PPP loans directly benefitted the businesses and employees in our local communities. The Company funded 133 PPP loans totaling approximately $17.4 million in the second quarter of 2020. Unearned fees net of origination costs totaled $600,000 and are being accreted based on the estimated life of the loans. The SBA began forgiving PPP loans in October 2020 at which point recognition of fee income was accelerated.

Total deposits were $343.9 million at September 30, 2020, an increase of $18.6 million or 5.72%, from $325.3 million at September 30, 2019. Noninterest-bearing deposits were $129.7 million at September 30, 2020, an increase of $18.2 million or 16.32%, from $111.5 million at September 30, 2019. The increase was due to new deposit accounts for PPP loans and core deposit growth. Interest-bearing deposits were $214.2 million at September 30, 2020, an increase of $0.4 million or 0.19%, from $213.8 million at September 30, 2019. Total borrowings were $47.4 million at September 30, 2020, an increase of $27.4 million or 137.00%, from $20.0 million at September 30, 2019. The Company participated in the Paycheck Protection Program Liquidity Facility (“PPPLF”) established by the Federal Reserve. At September 30, 2020, the Company borrowed $17.4 million under the PPPLF with a fixed rate of 0.35% and pledged PPP loans as collateral to secure the borrowings.

Stockholders’ equity was $36.5 million at September 30, 2020, an increase of $1.1 million or 3.11%, from $35.4 million at September 30, 2019. The increase in accumulated other comprehensive gain associated with net unrealized losses on the available for sale bond portfolio and increase in retained earnings and stock issuances under the dividend reinvestment program, offset by an increase in unrealized losses on interest rate swap contracts drove the overall increase in stockholders’ equity.

Nonperforming assets, which consist of nonaccrual loans, troubled debt restructurings, accruing loans past due 90 days or more, and other real estate owned (“OREO”), represented 1.32% of total assets at September 30, 2020, as compared to 1.34% for the same period of 2019. The increase in total asset balance and nonaccrual loans, offset by lower troubled debt restructurings drove the 0.02% decrease in nonperforming assets as percentage of total assets from September 30, 2019 to September 30, 2020.

Review of Financial Results

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

Net income for the three-month period ended September 30, 2020 was $949,000, as compared to net income of $606,000 for the three-month period ended September 30, 2019, an increase of $343,000 or 56.60%.

Net interest income for the three-month period ended September 30, 2020 totaled $3.0 million, a decrease of $148,000 from the three-month period ended September 30, 2019 due to lower interest income of $241,000, coupled with lower interest expense of $93,000. The decrease in net interest income was due primarily to declining loan balances and the impact of the low rate environment on cash held in interest-bearing deposits in other financial institutions, offset by reductions in the costs of interest-bearing deposits and higher average security balances. Loans, net of deferred fees and costs, including $17.4 million of PPP loans, decreased by $9.8 million or 3.45% to $274.1 million as of September 30, 2020, as compared to $283.9 million for the same period of 2019. PPP loans carry a fixed interest rate of 1.0% with a two-year contractual maturity.

Net interest margin for the three-month period ended September 30, 2020 was 3.05%, as compared to 3.43% for the same period of 2019. Lower average yields and higher average balances on interest-earning assets combined with higher average interest-bearing funds and lower cost of funds were the primary drivers of year-over-year results. The average balance on interest-earning assets increased $27.1 million while the yield decreased 0.51% from 3.92% to 3.41%, when comparing the three-month periods ending September 30, 2019 and 2020. The average balance on interest-bearing funds increased $4.8 million and the cost of funds decreased 0.14%, when comparing the three-month periods ending September 30, 2019 and 2020. The decrease in interest expense is related to a reduction in higher rate time deposits. As these time deposits matured, they renewed at lower market rates or they exited the Company and were replaced by lower cost checking, savings and money market accounts.

The average balance of interest-bearing deposits in other financial institutions and investment securities increased $34.2 million from $76.6 million to $110.9 million for the third quarter of 2020, as compared to the same period of 2019 while the yield decreased from 2.14% to 1.53% during that same time period. Much of the decrease in yields for the three-month period can be attributed to an overall lower interest rate environment and a significant increase in investment securities available for sale during this low interest rate period. Average loan balances decreased $7.1 million to $279.8 million for the three-month period ended September 30, 2020, as compared to $286.9 million for the same period of 2019 while the yield decreased from 4.39% to 4.16% during that same time period.

The provision for loan losses for the three-month period ended September 30, 2020 was negative $669,000, as compared to a negative $139,000 for the same period of 2019. Our loan loss provisioning methodology is significantly tied to projected unemployment rates which were lowered during the third quarter of 2020. The decrease for the three-month period ended September 30, 2020 as compared to the same period in 2019 was driven by decreases in qualitative factors driven by macro-economic conditions, a decrease in the size of the loan portfolio, and the overall credit-quality of the loan portfolio. No provision for loan losses on PPP loans was recognized as the SBA guarantees 100% of loans funded under the program. The Company continues to gather the latest information available to perform and update its loan loss reserve analysis. As more information becomes available, including the economic impact of the COVID-19 pandemic, the Company will update the loan loss reserve analysis. The Company maintains the allowance for loan losses at a level believed to be adequate for known and inherent risks in the portfolio. The methodology incorporates a variety of risk considerations, both quantitative and qualitative, in establishing an allowance for loan losses that management believes is appropriate at each reporting date. As a result, the allowance for loan losses was $1.66 million at September 30, 2020, representing 0.61% of total loans, as compared to $2.31 million, or 0.81% of total loans at September 30, 2019.

Noninterest income for the three-month period ended September 30, 2020 was $260,000, as compared to $391,000 for the three-month period ended September 30, 2019, a decrease of $131,000 or 33.50%. The decrease primarily resulted from lower ATM interchange fees associated with the cancellation of the Renaissance Festival due to COVID-19.

For the three-month period ended September 30, 2020, noninterest expense was $2.69 million, as compared to $2.86 million for the three-month period ended September 30, 2019, a decrease of $170,000 or 5.94%. The primary contributors to the $170,000 decrease, when compared to the three-month period ended September 30, 2019 were decreases in salary and employee benefits costs, legal, accounting and other professional fees, occupancy and equipment expenses including investments in technology and infrastructure improvements and other expenses, offset by increases in data processing and item processing services.

For the nine-month periods ended September 30, 2020 and 2019

Net income for the nine-month period ended September 30, 2020 was $1,123,000, as compared to net income of $1,060,000 for the nine-month period ended September 30, 2019, an increase of $63,000 or 5.94%.

Net interest income for the nine-month period ended September 30, 2020 totaled $9.0 million, a decrease of $400,000 from $9.4 million for nine-month period ended September 30, 2019 due to lower interest income of $700,000, coupled with lower interest expense of $300,000. The decrease in yields and cost of funds for the nine-month period ended September 30, 2020 compared to the same period in 2019 is primarily attributable to the five rate cuts by the Federal Reserve from August 2019 through March 2020 with the March 15^th movement lowering the federal funds rate 150-basis points and the targeted range to 0% - 0.25%. The decrease in net interest income was due primarily to declining loan balances and the impact of the low rate environment on cash held in interest-bearing deposits in other financial institutions, offset by reductions in the costs of interest-bearing deposits and higher average security balances. Loans, net of deferred fees and costs, including $17.4 million of PPP loans funded in the second quarter of 2020, decreased by $9.8 million or 3.45% to $274.1 million as of September 30, 2020, as compared to $283.9 million for the same period of 2019. PPP loans carry a fixed interest rate of 1.0% with a two-year contractual maturity.

Net interest margin for the nine-month period ended September 30, 2020 was 3.17%, as compared to 3.38% for the same period of 2019. Lower average yields and higher average balances on interest-earning assets combined with lower average interest-bearing funds and cost of funds were the primary drivers of year-over-year results. The average balance on interest-earning assets decreased $6.4 million while the yield decreased 0.32% from 3.91% to 3.59%, when comparing the nine-month periods ending September 30, 2019 and 2020. The average balance on interest-bearing funds decreased $9.9 million and the cost of funds decreased 0.11%, when comparing the nine-month periods ending September 30, 2019 and 2020. The decrease in interest expense is related to a reduction in higher rate time deposit balances and FHLB advances. As time deposits matured, they renewed at lower market rates or they exited the Company and were replaced by lower cost checking, savings and money market accounts.

The average balance of interest-bearing deposits in financial institutions and investment securities increased $18.6 million from $78.1 million to $96.7 million for the nine-month period ending September 30, 2020, as compared to the same period of 2019 while the yield decreased from 2.28% to 1.67% during that same time period. Much of the decrease in yields for the nine-month period can be attributed to an overall lower interest rate environment and a significant increase in investment securities available for sale during this low interest rate period.

Average loan balances decreased $12.2 million to $281.8 million for the nine-month period ended September 30, 2020, as compared to $294.0 million for the same period of 2019 while the yield decreased from 4.34% to 4.25% during that same time period. The decrease in loan yields is primarily attributable to the runoff of higher yielding loans and origination of lower yielding loans in the current low interest rate environment, rate cuts by the Federal Reserve from August 2019 through March 2020 and the origination of $17.4 million of SBA PPP loans with rates of 1.00%.

The provision for loan losses for the nine-month period ended September 30, 2020 was negative $263,000, as compared to $65,000 for the same period of 2019. The decrease for the nine-month period ended September 30, 2020 as compared to the same period in 2019 was driven by decreases in qualitative factors driven macro-economic conditions, a decrease in the size of the loan portfolio, and the overall credit-quality of the loan portfolio. 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 nine-month period ended September 30, 2020 was $743,000, as compared to $955,000 for the nine-month period ended September 30, 2019, a decrease of $212,000 or 22.20% driven by lower ATM interchange fees related to the COVID-19 related cancellation of the Renaissance Festival.

For the nine-month period ended September 30, 2020, noninterest expense was $8.54 million, as compared to $8.92 million for the nine-month period ended September 30, 2019, a decrease of $386,000 or 4.33%. The primary contributors to the $386,000 decrease, when compared to the nine-month period ended September 30, 2019 were decreases in salary and employee benefits costs, occupancy and equipment expenses including investments in technology and infrastructure improvements, legal, accounting and other professional fees and other expenses primarily litigation settlement costs, offset by increases in data processing and item processing services.

Glen Burnie Bancorp Information

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

Forward-Looking Statements

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

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
	September 30,				June 30,				December 31,				September 30,
		2020				2020				2019				2019
	(unaudited)				(unaudited)				(audited)				(unaudited)
ASSETS
Cash and due from banks	$	2,196			$	2,387			$	2,420			$	3,678
Interest bearing deposits in other financial institutions		24,857				32,592				10,870				15,893
Total Cash and Cash Equivalents		27,053				34,979				13,290				19,571
Investment securities available for sale, at fair value		114,461				84,534				71,486				64,817
Restricted equity securities, at cost		1,624				1,199				1,437				1,225
Loans, net of deferred fees and costs		274,082				284,963				284,738				283,889
Less: Allowance for loan losses		(1,663	)			(2,392	)			(2,066	)			(2,307	)
Loans, net		272,419				282,571				282,672				281,582
Real estate acquired through foreclosure		705				705				705				705
Premises and equipment, net		3,878				3,904				3,761				3,820
Bank owned life insurance		8,141				8,101				8,023				7,982
Deferred tax assets, net		499				476				672				1,013
Accrued interest receivable		1,367				1,226				961				976
Accrued taxes receivable		-				-				1,221				982
Prepaid expenses		393				329				406				557
Other assets		382				176				308				208
Total Assets	$	430,922			$	418,200			$	384,942			$	383,438
LIABILITIES
Noninterest-bearing deposits	$	129,745			$	127,621			$	107,158			$	111,453
Interest-bearing deposits		214,195				214,316				214,282				213,813
Total Deposits		343,940				341,937				321,440				325,266
Short-term borrowings		37,367				37,367				25,000				20,000
Long-term borrowings		10,000				-				-				-
Defined pension liability		282				294				317				311
Accrued expenses and other liabilities		2,828				2,735				2,505				2,493
Total Liabilities		394,417				382,333				349,262				348,070
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,838,357, 2,834,325, 2,827,473, and 2,824,412 shares as of September 30, 2020, June 30, 2020, December 31, 2019, and September 30, 2019, respectively.		2,839				2,834				2,827				2,824
Additional paid-in capital		10,610				10,582				10,525				10,495
Retained earnings		22,810				22,145				22,537				22,280
Accumulated other comprehensive gain (loss)		246				306				(209	)			(231	)
Total Stockholders' Equity		36,505				35,867				35,680				35,368
Total Liabilities and Stockholders' Equity	$	430,922			$	418,200			$	384,942			$	383,438

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
(unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Interest income
Interest and fees on loans	$	2,924			$	3,176			$	8,974			$	9,543
Interest and dividends on securities		404				326				1,103				1,061
Interest on deposits with banks and federal funds sold		21				88				107				270
Total Interest Income		3,349				3,590				10,184				10,874
Interest expense
Interest on deposits		237				336				851				1,001
Interest on short-term borrowings		110				110				345				465
Interest on long-term borrowings		6				-				6				-
Total Interest Expense		353				446				1,202				1,466
Net Interest Income		2,996				3,144				8,982				9,408
Provision for loan losses		(669	)			(139	)			(263	)			65
Net interest income after provision for loan losses		3,665				3,283				9,245				9,343
Noninterest income
Service charges on deposit accounts		37				62				132				187
Other fees and commissions		179				287				489				643
Gain on securities sold		4				-				4				3
Income on life insurance		40				42				118				122
Total Noninterest Income		260				391				743				955
Noninterest expenses
Salary and employee benefits		1,595				1,685				4,897				5,140
Occupancy and equipment expenses		283				340				909				1,040
Legal, accounting and other professional fees		233				259				737				794
Data processing and item processing services		234				109				651				328
FDIC insurance costs		41				-				141				116
Advertising and marketing related expenses		22				27				65				79
Loan collection costs		5				22				92				62
Telephone costs		56				62				146				183
Other expenses		224				352				901				1,181
Total Noninterest Expenses		2,693				2,856				8,539				8,923
Income before income taxes		1,232				818				1,449				1,375
Income tax (benefit) expense		283				212				326				315
Net income	$	949			$	606			$	1,123			$	1,060
Basic and diluted net income per common share	$	0.33			$	0.21			$	0.40			$	0.38

 

GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the nine months ended September 30, 2020 and 2019 (unaudited)
(dollars in thousands)
												Accumulated
					Additional							Other				Total
		Common			Paid-in			Retained				Comprehensive				Stockholders'
		Stock			Capital			Earnings				(Loss)				Equity
Balance, December 31, 2018		$	2,814		$	10,401		$	22,066			$	(1,230	)		$	34,051
Net income			-			-			1,060				-				1,060
Cash dividends, $0.30 per share			-			-			(846	)			-				(846	)
Dividends reinvested under
dividend reinvestment plan			10			94			-				-				104
Other comprehensive income			-			-			-				999				999
Balance, September 30, 2019		$	2,824		$	10,495		$	22,280			$	(231	)		$	35,368
												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			-			-			1,123				-				1,123
Cash dividends, $0.30 per share			-			-			(850	)			-				(850	)
Dividends reinvested under
dividend reinvestment plan			12			85			-				-				97
Other comprehensive income			-			-			-				455				455
Balance, September 30, 2020		$	2,839		$	10,610		$	22,810			$	246			$	36,505

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 September 30, 2020:
(unaudited)
Common Equity Tier 1 Capital	$	35,993	12.10	%		$	13,391	4.50	%		$	19,343	6.50	%
Total Risk-Based Capital	$	37,685	12.66	%		$	23,807	8.00	%		$	29,758	10.00	%
Tier 1 Risk-Based Capital	$	35,993	12.10	%		$	17,855	6.00	%		$	23,807	8.00	%
Tier 1 Leverage	$	35,993	9.23	%		$	15,600	4.00	%		$	19,500	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	%
As of December 31, 2019:
(unaudited)
Common Equity Tier 1 Capital	$	35,693	12.47	%		$	12,878	4.50	%		$	18,602	6.50	%
Total Risk-Based Capital	$	37,797	13.21	%		$	22,895	8.00	%		$	28,619	10.00	%
Tier 1 Risk-Based Capital	$	35,693	12.47	%		$	17,171	6.00	%		$	22,895	8.00	%
Tier 1 Leverage	$	35,693	9.26	%		$	15,414	4.00	%		$	19,268	5.00	%
As of September 30, 2019:
(unaudited)
Common Equity Tier 1 Capital	$	35,216	12.36	%		$	12,822	4.50	%		$	18,520	6.50	%
Total Risk-Based Capital	$	37,561	13.18	%		$	22,794	8.00	%		$	28,493	10.00	%
Tier 1 Risk-Based Capital	$	35,216	12.36	%		$	17,096	6.00	%		$	22,794	8.00	%
Tier 1 Leverage	$	35,216	9.26	%		$	15,215	4.00	%		$	19,019	5.00	%

GLEN BURNIE BANCORP AND SUBSIDIARY
SELECTED FINANCIAL DATA
(dollars in thousands, except per share amounts)
		Three Months Ended												Nine Months Ended								Year Ended
		September 30,				June 30,				September 30,				September 30,				September 30,				December 31,
			2020				2020				2019				2020				2019				2019
			(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Financial Data
Assets		$	430,922			$	418,200			$	383,438			$	430,922			$	383,438			$	383,721
Investment securities			114,461				84,534				64,817				114,461				64,817				71,486
Loans, (net of deferred fees & costs)			274,082				284,963				283,889				274,082				283,889				284,738
Allowance for loan losses			1,663				2,392				2,307				1,663				2,307				2,066
Deposits			343,940				341,937				325,266				343,940				325,266				321,440
Borrowings			47,367				37,367				20,000				47,367				20,000				25,000
Stockholders' equity			36,505				35,867				35,368				36,505				35,368				35,680
Net income (loss)			949				(96	)			606				1,123				1,060				1,599
Average Balances
Assets		$	408,450			$	396,633			$	380,853			$	396,258			$	387,885			$	387,315
Investment securities			96,635				69,729				61,456				79,048				64,338				65,315
Loans, (net of deferred fees & costs)			279,817				284,169				286,944				281,773				293,958				292,075
Deposits			344,132				336,329				322,893				333,689				323,737				324,565
Borrowings			24,487				20,949				20,000				23,043				27,323				25,573
Stockholders' equity			37,089				36,763				35,489				36,919				34,938				35,104
Performance Ratios
Annualized return on average assets			0.92	%			-0.10	%			0.63	%			0.38	%			0.37	%			0.41	%
Annualized return on average equity			10.18	%			-1.05	%			6.77	%			4.06	%			4.06	%			4.55	%
Net interest margin			3.05	%			3.12	%			3.43	%			3.17	%			3.38	%			3.39	%
Dividend payout ratio			30	%			-296	%			47	%			76	%			80	%			71	%
Book value per share		$	12.86			$	12.65			$	12.52			$	12.86			$	12.52			$	12.62
Basic and diluted net income per share			0.33				(0.03	)			0.21				0.40				0.38				0.57
Cash dividends declared per share			0.10				0.10				0.10				0.30				0.30				0.40
Basic and diluted weighted average shares outstanding			2,836,998				2,832,974				2,823,271				2,833,130				2,819,952				2,821,608
Asset Quality Ratios
Allowance for loan losses to loans			0.61	%			0.84	%			0.81	%			0.61	%			0.81	%			0.73	%
Nonperforming loans to avg. loans			1.78	%			1.39	%			1.55	%			1.77	%			1.51	%			1.42	%
Allowance for loan losses to nonaccrual & 90+ past due loans			33.4	%			60.4	%			54.3	%			33.4	%			54.3	%			49.8	%
Net charge-offs annualize to avg. loans			0.09	%			0.02	%			0.02	%			0.07	%			0.39	%			0.12	%
Capital Ratios
Common Equity Tier 1 Capital			12.10	%			12.10	%			12.36	%			12.10	%			12.36	%			12.47	%
Tier 1 Risk-based Capital Ratio			12.10	%			12.10	%			12.36	%			12.10	%			12.36	%			12.47	%
Leverage Ratio			9.23	%			9.32	%			9.26	%			9.23	%			9.26	%			9.26	%
Total Risk-Based Capital Ratio			12.66	%			12.95	%			13.18	%			12.66	%			13.18	%			13.21	%

FAQ

What was Glen Burnie Bancorp's net income for Q3 2020?

Glen Burnie Bancorp reported a net income of $949,000 for Q3 2020.

How did Glen Burnie Bancorp's total assets change by September 30, 2020?

Total assets increased by 12.39% to $430.9 million year-over-year by September 30, 2020.

What is the significance of the 113th quarterly dividend paid by GLBZ?

The 113th quarterly dividend reflects Glen Burnie Bancorp's commitment to returning value to shareholders.

What challenges did Glen Burnie Bancorp face in Q3 2020?

The bank faced challenges from a low-interest-rate environment affecting net interest income.

What was the return on average assets for GLBZ in Q3 2020?

The return on average assets improved to 0.92% for Q3 2020.