Glen Burnie Bancorp Announces Fourth Quarter and Full Year 2022 Results
GLEN BURNIE, Md., Feb. 14, 2023 (GLOBE NEWSWIRE) — Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), announced today net income of $830,000, or $0.29 per basic and diluted common share for the three-month period ended December 31, 2022, compared to net income of $554,000, or $0.19 per basic and diluted common share for the three-month period ended December 31, 2021. Bancorp reported net income of $1.75 million, or $0.61 per basic and diluted common share for the twelve-month period ended December 31, 2022, compared to $2.52 million, or $0.88 per basic and diluted common share for the same period in 2021. On December 31, 2022, Bancorp had total assets of $381.4 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, paid its 122nd consecutive quarterly dividend on February 6, 2023.
“The increase in earnings during the fourth quarter of 2022, as compared to the same period of 2021, was primarily due to gains from nonrecurring items recognized in noninterest income, although we began to see the positive impact of rising interest rates and lower interest expense from the repayment of borrowed funds,” said John D. Long, President and Chief Executive Officer. “We partially mitigated our declining net interest margin through the repricing of new and existing loans at higher yields and the deployment of excess liquidity into higher yielding federal funds. Despite declining loan balances in a volatile market environment, we’ve built a stable earnings stream that should continue to deliver solid financial outcomes for the Company and our shareholders, even as interest rates continue to rise, and fear of an economic downturn continues to develop. Anne Arundel County, our primary operating area, remains a vibrant market and should withstand this period of economic uncertainty. Non-performing assets remain low, and we maintain our conservative approach to credit underwriting. 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, “Our financial performance during the fourth quarter demonstrates our ability to navigate the current economic environment. We enter 2023 with positive momentum and recognize the backdrop of economic uncertainty that persists. Inflation levels remain elevated and market expectations suggest interest rates will continue to rise, likely impacting future economic growth and activity. As such, we are intently focused on targeted balance sheet growth that optimizes capital, prudently managing spreads, and maintaining disciplined loan and deposit pricing strategies. We believe our conservative credit culture and emphasis on effective risk management will continue to serve us well during periods of economic unrest.”
Highlights for the Quarter and Year ended December 31, 2022
Total interest income declined $0.8 million to $12.7 million for the twelve-month period ending December 31, 2022, compared to the same period in 2021. This resulted primarily from a $2.3 million decrease in interest income on loans consistent with the $35.0 million decline in the average balance of the loan portfolio, offset by a $1.5 million increase in income on interest-bearing deposits with banks and investment securities. Loan pricing pressure/competition will likely continue to place pressure on the Company’s net interest margin.
Due to minimal charge-offs, recoveries on previously charged off loans, a decline in the loan portfolio balances, and strong credit discipline, the Company continued to release portions of its allowance for credit losses on loans for the year ended December 31, 2022. The Company expects that its strong liquidity and capital positions, along with the Bank’s total regulatory capital to risk weighted assets of 17.28% on December 31, 2022, compared to 16.03% for the same period of 2021, will provide ample capacity for future growth.
Return on average assets for the three-month period ended December 31, 2022, was 0.83%, compared to 0.49% for the three-month period ended December 31, 2021. Return on average equity for the three-month period ended December 31, 2022, was 21.7%, compared to 6.07% for the three-month period ended December 31, 2021. Higher net income and lower average asset balances primarily drove the higher return on average assets. Higher net income and a lower average equity balance, primarily drove the higher return on average equity.
The cost of funds was 0.13% for the quarter ended December 31, 2022, compared to 0.24% for the quarter ended December 31, 2021. The 0.11% decrease was primarily driven by the decline in the cost of borrowed funds.
The book value per share of Bancorp’s common stock was $5.60 on December 31, 2022, compared to $12.51 per share on December 31, 2021. The decline was primarily due to the unrealized losses on available for sale securities caused by the rapid increase in market interest rates.
On December 31, 2022, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 16.45% on December 31, 2022, compared to 15.32% on December 31, 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 $381.4 million on December 31, 2022, a decrease of $60.7 million or 13.71%, from $442.1 million on December 31, 2021. Investment securities decreased by $11.8 million or 7.56%, to $144.1 million as of December 31, 2022, compared to $155.9 million for the same period of 2021. Loans, net of deferred fees and costs, were $186.4 million on December 31, 2022, a decrease of $24.0 million or 11.38%, from $210.4 million on December 31, 2021. Cash and cash equivalents decreased $32.1 million or 51.61%, from $62.2 million on December 31, 2021, to $30.1 million on December 31, 2022. Deferred tax assets increased $7.9 million or 831.24%, from $956,000 on December 31, 2021, to $8.9 million on December 31, 2022, due to the tax effects of unrealized losses on available for sale securities.
Total deposits were $362.9 million on December 31, 2022, a decrease of $20.3 million or 5.30%, from $383.2 million on December 31, 2021. Noninterest-bearing deposits were $143.3 million on December 31, 2022, a decrease of $12.4 million or 7.94%, from $155.6 million on December 31, 2021. Interest-bearing deposits were $219.7 million on December 31, 2022, a decrease of $7.9 million or 3.49%, from $227.6 million on December 31, 2021. Total borrowings were $0 on December 31, 2022, a decrease of $20.0 million from December 31, 2021.
As of December 31, 2022, total stockholders’ equity was $16.1 million (4.21% of total assets), equivalent to a book value of $5.60 per common share. Total stockholders’ equity on December 31, 2021, was $35.7 million (8.08% of total assets), equivalent to a book value of $12.51 per common share. The reduction in the ratio of stockholders’ equity to total assets was primarily due to the $20.7 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, remains sound and reflected no pandemic-related impact on December 31, 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 0.13% of total assets on December 31, 2022, compared to 0.08% on December 31, 2021. The decrease in total assets from December 31, 2021, to December 31, 2022, and the increase in nonperforming assets primarily drove the change. The allowance for credit losses on loans was $2.2 million, or 1.16% of total loans, as of December 31, 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 $477,000 as of December 31, 2022, compared to $371,000 as of December 31, 2021.
Review of Financial Results
For the three-month periods ended December 31, 2022, and 2021
Net income for the three-month period ended December 31, 2022, was $830,000, compared to $554,000 for the three-month period ended December 31, 2021.
Net interest income for the three-month period ended December 31, 2022, totaled $3.3 million, an increase of $127,000 from the three-month period ended December 31, 2021. The increase in net interest income was primarily due to a $131,000 reduction in interest expense.
Net interest margin for the three-month period ended December 31, 2022, was 3.27%, compared to 2.95% for the same period of 2021. Higher average yields and lower average balances on interest-earning assets combined with lower average interest-bearing funds, lower 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 decreased $26.9 million while the yield increased 0.21% from 3.17% to 3.38%, when comparing the three-month periods ending December 31, 2021, and 2022. The average balance on interest-bearing funds and noninterest-bearing funds decreased $15.7 million and $11.3 million, respectively, and the cost of funds declined 0.12%, when comparing the three-month periods ending December 31, 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 $0.9 million from $215.0 million to $215.9 million for the fourth quarter of 2022, compared to the same period of 2021 while the yield increased from 1.36% to 2.54% during that same period. The increase 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 and increases in the overnight federal funds rate.
Average loan balances decreased $27.7 million to $189.6 million for the three-month period ended December 31, 2022, compared to $217.3 million for the same period of 2021, while the yield decreased from 4.99% to 4.37% during that same period. The decrease in loan yields for the fourth quarter of 2022 reflected continued runoff of the indirect automobile loan portfolio.
The provision of allowance for credit loss on loans for the three-month period ended December 31, 2022, was $65,000, compared to a release of $382,000 for the same period of 2021. The increase in the provision for the three-month period ended December 31, 2022, when compared to the three-month period ended December 31, 2021, primarily reflects a $241,000 increase in net charge offs, offset by a $22.5 million decrease in the reservable balance of the loan portfolio (excluding PPP loans) and a 0.01% decrease in the current expected credit loss percentage.
Noninterest income for the three-month period ended December 31, 2022, was $522,000, compared to a loss of $259,000 for the three-month period ended December 31, 2021, an increase of $781,000 or 301.79%. The increase was driven primarily a by $590,000 loss on the sale of securities in 2021 and a $206,000 gain on the unwinding of derivative contracts in 2022.
For the three-month period ended December 31, 2022, noninterest expense was $2.80 million, compared to $2.64 million for the three-month period ended December 31, 2021, an increase of $159,000 or 6.02%. The primary contributors to the $159,000 increase, when compared to the three-month period ended December 31, 2021, were increases in salary and employee benefits, occupancy and equipment expenses, data processing and item processing services and other expenses, offset by decreases in legal, accounting, and other professional fees.
For the twelve-month periods ended December 31, 2022, and 2021
Net income for the twelve-month period ended December 31, 2022, was $1.75 million, compared to $2.52 million for the twelve-month period ended December 31, 2021.
Net interest income for the twelve-month period ended December 31, 2022, totaled $11.9 million, a decrease of $585,000 from $12.4 million for the twelve-month period ended December 31, 2021. The decrease in net interest income was primarily due to $805,000 lower interest income, offset by a $220,000 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. Our cash balances and securities holdings, excluding unrealized market value losses, generally yield less than loans and increased as a percentage of our total assets reflecting increased deployment of excess liquidity.
Net interest margin for the twelve-month period ended December 31, 2022, was 2.81%, compared to 3.00% 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 $7.3 million, while the yield decreased 0.24% from 3.25% to 3.01%, when comparing the twelve-month periods ending December 31, 2021, and 2022. The average balance on interest-bearing funds and noninterest-bearing funds increased $2.1 million and $4.4 million, respectively, and the cost of funds decreased 0.06%, when comparing the twelve-month periods ending December 31, 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 $42.3 million from $181.5 million to $223.8 million for the twelve-month period ending December 31, 2022, compared to the same period of 2021. The yield increased from 1.53% to 1.91% during that same period. The increase in yields for the twelve-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 and increases in the overnight federal funds rate.
Average loan balances decreased $35.0 million to $198.9 million for the twelve-month period ended December 31, 2022, compared to $233.9 million for the same period of 2021. The yield decreased from 4.59% to 4.24% during that same period.
The Company recorded a release of allowance for credit loss on loans of $112,000 for the twelve-month period ending December 31, 2022, compared to a release of $975,000 for the same period in 2021. The $863,000 decline in the release in 2022 compared to 2021, primarily reflects a $591,000 increase in net charge offs, offset by a $22.5 million decrease in the reservable balance of the loan portfolio (excluding PPP loans) and a 0.01% decrease in the current expected credit loss percentage. As a result, the allowance for credit loss on loans was $2.2 million on December 31, 2022, representing 1.16% of total loans, compared to $2.5 million, or 1.17% of total loans on December 31, 2021.
Noninterest income for the twelve-month period ended December 31, 2022, was $1.35 million, compared to $627,000 for the twelve-month period ended December 31, 2021, an increase of $727,000 or 116.01%. The increase was driven primarily a by $590,000 loss on the sale of securities in 2021 and a $206,000 gain on the unwind of derivative contracts in 2022.
For the twelve-month period ended December 31, 2022, noninterest expense was $11.34 million, compared to $10.95 million for the twelve-month period ended December 31, 2021. The primary contributors to the $388,000 increase when comparing to the twelve-month period ended December 31, 2021, were increases in legal, accounting, and other professional fees, other expenses, occupancy and equipment expenses and data processing and item processing services, offset by decreases in salary and employee benefits costs, FDIC insurance costs, loan collection costs and telephone costs.
Glen Burnie Bancorp Information
Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie® is a locally owned community bank with 8 branch offices serving Anne Arundel County. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships, and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at www.thebankofglenburnie.com.
Forward-Looking Statements
The statements contained herein that are not historical financial information, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, which could cause the company’s actual results in the future to differ materially from its historical results and those presently anticipated or projected. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. For a more complete discussion of these and other risk factors, please see the company’s reports filed with the Securities and Exchange Commission.
| GLEN BURNIE BANCORP AND SUBSIDIARY | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (dollars in thousands) | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| (unaudited) | (unaudited) | (audited) | |||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 2,035 | $ | 2,572 | $ | 2,111 | |||||
| Interest-bearing deposits in other financial institutions | 28,057 | 51,597 | 60,070 | ||||||||
| Total Cash and Cash Equivalents | 30,092 | 54,169 | 62,181 | ||||||||
| Investment securities available for sale, at fair value | 144,133 | 144,980 | 155,927 | ||||||||
| Restricted equity securities, at cost | 221 | 1,071 | 1,062 | ||||||||
| Loans, net of deferred fees and costs | 186,440 | 194,080 | 210,392 | ||||||||
| Less: Allowance for credit losses(1) | (2,162 | ) | (2,275 | ) | (2,470 | ) | |||||
| Loans, net | 184,278 | 191,805 | 207,922 | ||||||||
| Premises and equipment, net | 3,277 | 3,366 | 3,564 | ||||||||
| Bank owned life insurance | 8,493 | 8,454 | 8,338 | ||||||||
| Deferred tax assets, net | 8,902 | 9,126 | 956 | ||||||||
| Accrued interest receivable | 1,159 | 1,253 | 1,085 | ||||||||
| Accrued taxes receivable | – | 225 | 301 | ||||||||
| Prepaid expenses | 493 | 517 | 347 | ||||||||
| Other assets | 388 | 660 | 383 | ||||||||
| Total Assets | $ | 381,436 | $ | 415,626 | $ | 442,066 | |||||
| LIABILITIES | |||||||||||
| Noninterest-bearing deposits | $ | 143,262 | $ | 149,171 | $ | 155,624 | |||||
| Interest-bearing deposits | 219,685 | 229,715 | 227,623 | ||||||||
| Total Deposits | 362,947 | 378,886 | 383,247 | ||||||||
| Short-term borrowings | – | 20,000 | 10,000 | ||||||||
| Long-term borrowings | – | – | 10,000 | ||||||||
| Defined pension liability | 317 | 315 | 304 | ||||||||
| Accrued expenses and other liabilities | 2,118 | 2,085 | 2,799 | ||||||||
| Total Liabilities | 365,382 | 401,286 | 406,350 | ||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||
| Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,865,046, 2,861,615 and 2,853,880 shares as of December 31, 2022, September 30, 2022, and December 31, 2021, respectively. | 2,865 | 2,862 | 2,854 | ||||||||
| Additional paid-in capital | 10,862 | 10,836 | 10,759 | ||||||||
| Retained earnings | 23,579 | 23,035 | 22,977 | ||||||||
| Accumulated other comprehensive loss | (21,252 | ) | (22,393 | ) | (874 | ) | |||||
| Total Stockholders’ Equity | 16,054 | 14,340 | 35,716 | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | 381,436 | $ | 415,626 | $ | 442,066 | |||||
| (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 December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Interest income | |||||||||||||||
| Interest and fees on loans | $ | 2,087 | $ | 2,733 | $ | 8,437 | $ | 10,738 | |||||||
| Interest and dividends on securities | 967 | 681 | 3,403 | 2,657 | |||||||||||
| Interest on deposits with banks and federal funds sold | 404 | 47 | 872 | 122 | |||||||||||
| Total Interest Income | 3,458 | 3,461 | 12,712 | 13,517 | |||||||||||
| Interest expense | |||||||||||||||
| Interest on deposits | 109 | 135 | 471 | 609 | |||||||||||
| Interest on short-term borrowings | 11 | 116 | 348 | 465 | |||||||||||
| Interest on long-term borrowings | – | – | 34 | – | |||||||||||
| Total Interest Expense | 120 | 251 | 853 | 1,074 | |||||||||||
| Net Interest Income | 3,337 | 3,210 | 11,859 | 12,443 | |||||||||||
| Provision/release of credit loss allowance | 65 | (382 | ) | (112 | ) | (975 | ) | ||||||||
| Net interest income after release of credit loss provision | 3,272 | 3,592 | 11,971 | 13,418 | |||||||||||
| Noninterest income | |||||||||||||||
| Service charges on deposit accounts | 40 | 42 | 159 | 160 | |||||||||||
| Other fees and commissions | 236 | 249 | 831 | 884 | |||||||||||
| Loss/gain on securities sold/redeemed | – | (590 | ) | 2 | (588 | ) | |||||||||
| Gain on sale of other real estate | 206 | – | 206 | 14 | |||||||||||
| Income on life insurance | 40 | 40 | 156 | 157 | |||||||||||
| Total Noninterest Income | 522 | (259 | ) | 1,354 | 627 | ||||||||||
| Noninterest expenses | |||||||||||||||
| Salary and employee benefits | 1,622 | 1,600 | 6,406 | 6,504 | |||||||||||
| Occupancy and equipment expenses | 334 | 315 | 1,272 | 1,227 | |||||||||||
| Legal, accounting and other professional fees | 160 | 184 | 1,044 | 701 | |||||||||||
| Data processing and item processing services | 294 | 223 | 997 | 933 | |||||||||||
| FDIC insurance costs | 29 | 39 | 112 | 169 | |||||||||||
| Advertising and marketing related expenses | 23 | 23 | 86 | 88 | |||||||||||
| Loan collection costs | 11 | 14 | (39 | ) | 12 | ||||||||||
| Telephone costs | 40 | 36 | 159 | 209 | |||||||||||
| Other expenses | 287 | 207 | 1,303 | 1,109 | |||||||||||
| Total Noninterest Expenses | 2,800 | 2,641 | 11,340 | 10,952 | |||||||||||
| Income before income taxes | 994 | 692 | 1,985 | 3,093 | |||||||||||
| Income tax expense | 164 | 138 | 240 | 577 | |||||||||||
| Net income | $ | 830 | $ | 554 | $ | 1,745 | $ | 2,516 | |||||||
| Basic and diluted net income per common share | $ | 0.29 | $ | 0.19 | $ | 0.61 | $ | 0.88 | |||||||
| GLEN BURNIE BANCORP AND SUBSIDIARY | |||||||||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | |||||||||||||||||
| For the twelve months ended December 31, 2022 and 2021 | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Accumulated | |||||||||||||||||
| Additional | Other | Total | |||||||||||||||
| Common | Paid-in | Retained | Comprehensive | Stockholders’ | |||||||||||||
| (audited) | Stock | Capital | Earnings | Income (Loss) | Equity | ||||||||||||
| Balance, December 31, 2020 | $ | 2,842 | $ | 10,640 | $ | 23,071 | $ | 540 | $ | 37,093 | |||||||
| Net income | – | – | 2,516 | – | 2,516 | ||||||||||||
| Cash dividends, $0.40 per share | – | – | (1,138 | ) | – | (1,138 | ) | ||||||||||
| Dividends reinvested under dividend reinvestment plan | 12 | 119 | – | – | 131 | ||||||||||||
| Transition adjustment pursuant to adoption of ASU 2016-3 to adoption of ASU 2016-3 | 0 | – | (1,472 | ) | – | (1,472 | ) | ||||||||||
| Other comprehensive loss | – | – | – | (1,414 | ) | (1,414 | ) | ||||||||||
| Balance, December 31, 2021 | $ | 2,854 | $ | 10,759 | $ | 22,977 | $ | (874 | ) | $ | 35,716 | ||||||
| Accumulated | |||||||||||||||||
| Additional | Other | Total | |||||||||||||||
| Common | Paid-in | Retained | Comprehensive | Stockholders’ | |||||||||||||
| (unaudited) | Stock | Capital | Earnings | Loss | Equity | ||||||||||||
| Balance, December 31, 2021 | $ | 2,854 | $ | 10,759 | $ | 22,977 | $ | (874 | ) | $ | 35,716 | ||||||
| Net income | – | – | 1,745 | – | 1,745 | ||||||||||||
| Cash dividends, $0.40 per share | – | – | (1,143 | ) | – | (1,143 | ) | ||||||||||
| Dividends reinvested under dividend reinvestment plan | 11 | 103 | – | – | 114 | ||||||||||||
| Other comprehensive loss | – | – | – | (20,378 | ) | (20,378 | ) | ||||||||||
| Balance, December 31, 2022 | $ | 2,865 | $ | 10,862 | $ | 23,579 | $ | (21,252 | ) | $ | 16,054 | ||||||
| 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 December 31, 2022: | |||||||||||||||
| Common Equity Tier 1 Capital | $ | 37,963 | 16.45 | % | $ | 10,383 | 4.50 | % | $ | 14,998 | 6.50 | % | |||
| Total Risk-Based Capital | $ | 39,866 | 17.28 | % | $ | 18,459 | 8.00 | % | $ | 23,074 | 10.00 | % | |||
| Tier 1 Risk-Based Capital | $ | 37,963 | 16.45 | % | $ | 13,845 | 6.00 | % | $ | 18,459 | 8.00 | % | |||
| Tier 1 Leverage | $ | 37,963 | 9.53 | % | $ | 15,938 | 4.00 | % | $ | 19,922 | 5.00 | % | |||
| As of September 30, 2022: | |||||||||||||||
| Common Equity Tier 1 Capital | $ | 37,391 | 15.34 | % | $ | 10,972 | 4.50 | % | $ | 15,848 | 6.50 | % | |||
| Total Risk-Based Capital | $ | 39,400 | 16.16 | % | $ | 19,506 | 8.00 | % | $ | 24,382 | 10.00 | % | |||
| Tier 1 Risk-Based Capital | $ | 37,391 | 15.34 | % | $ | 14,629 | 6.00 | % | $ | 19,506 | 8.00 | % | |||
| Tier 1 Leverage | $ | 37,391 | 8.78 | % | $ | 17,039 | 4.00 | % | $ | 21,299 | 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 | % | |||
| GLEN BURNIE BANCORP AND SUBSIDIARY | ||||||||||||||||||||
| SELECTED FINANCIAL DATA | ||||||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31 | September 30 | December 31 | December 31 | December 31 | ||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||||||||
| Financial Data | ||||||||||||||||||||
| Assets | $ | 381,436 | $ | 415,626 | $ | 442,066 | $ | 381,436 | $ | 442,066 | ||||||||||
| Investment securities | 144,133 | 144,980 | 155,927 | 144,133 | 155,927 | |||||||||||||||
| Loans, (net of deferred fees & costs) | 186,440 | 194,080 | 210,392 | 186,440 | 210,392 | |||||||||||||||
| Allowance for loan losses | 2,162 | 2,275 | 2,470 | 2,162 | 2,470 | |||||||||||||||
| Deposits | 362,947 | 378,886 | 383,247 | 362,947 | 383,247 | |||||||||||||||
| Borrowings | – | 20,000 | 20,000 | – | 20,000 | |||||||||||||||
| Stockholders’ equity | 16,054 | 14,340 | 35,716 | 16,054 | 35,716 | |||||||||||||||
| Net income | 830 | 375 | 554 | 1,745 | 2,516 | |||||||||||||||
| Average Balances | ||||||||||||||||||||
| Assets | $ | 397,712 | $ | 425,871 | $ | 447,261 | $ | 424,358 | $ | 431,169 | ||||||||||
| Investment securities | 174,886 | 177,824 | 151,919 | 168,990 | 145,496 | |||||||||||||||
| Loans, (net of deferred fees & costs) | 189,585 | 197,199 | 217,347 | 198,934 | 233,956 | |||||||||||||||
| Deposits | 374,687 | 381,834 | 388,168 | 382,164 | 371,958 | |||||||||||||||
| Borrowings | 6,452 | 20,000 | 20,000 | 16,613 | 20,309 | |||||||||||||||
| Stockholders’ equity | 15,144 | 22,001 | 36,254 | 24,042 | 36,010 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Annualized return on average assets | 0.83 | % | 0.35 | % | 0.49 | % | 0.41 | % | 0.58 | % | ||||||||||
| Annualized return on average equity | 21.74 | % | 6.76 | % | 6.07 | % | 7.26 | % | 6.99 | % | ||||||||||
| Net interest margin | 3.27 | % | 2.83 | % | 2.95 | % | 2.81 | % | 3.00 | % | ||||||||||
| Dividend payout ratio | 34 | % | 76 | % | 51 | % | 65 | % | 45 | % | ||||||||||
| Book value per share | $ | 5.60 | $ | 5.01 | $ | 12.51 | $ | 5.60 | $ | 12.51 | ||||||||||
| Basic and diluted net income per share | 0.29 | 0.13 | 0.19 | 0.61 | 0.88 | |||||||||||||||
| Cash dividends declared per share | 0.10 | 0.10 | 0.10 | 0.40 | 0.40 | |||||||||||||||
| Basic and diluted weighted average shares outstanding | 2,863,629 | 2,860,352 | 2,852,689 | 2,859,239 | 2,848,465 | |||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||
| Allowance for loan losses to loans | 1.16 | % | 1.17 | % | 1.17 | % | 1.16 | % | 1.17 | % | ||||||||||
| Nonperforming loans to avg. loans | 0.26 | % | 0.10 | % | 0.16 | % | 0.25 | % | 0.16 | % | ||||||||||
| Allowance for loan losses to nonaccrual & 90+ past due loans | 433.9 | % | 1171.4 | % | 703.7 | % | 433.9 | % | 703.7 | % | ||||||||||
| Net charge-offs annualize to avg. loans | 0.38 | % | 0.00 | % | -0.11 | % | 0.10 | % | -0.17 | % | ||||||||||
| Capital Ratios | ||||||||||||||||||||
| Common Equity Tier 1 Capital | 16.45 | % | 15.34 | % | 15.32 | % | 16.45 | % | 15.32 | % | ||||||||||
| Tier 1 Risk-based Capital Ratio | 16.45 | % | 15.34 | % | 15.32 | % | 16.45 | % | 15.32 | % | ||||||||||
| Leverage Ratio | 9.53 | % | 8.78 | % | 8.40 | % | 9.53 | % | 8.40 | % | ||||||||||
| Total Risk-Based Capital Ratio | 17.28 | % | 16.16 | % | 16.03 | % | 17.28 | % | 16.03 | % | ||||||||||
CONTACT: For further information contact: Jeffrey D. Harris, Chief Financial Officer 410-768-8883 jdharris@bogb.net 106 Padfield Blvd Glen Burnie, MD 21061
