Glen Burnie Bancorp Pronounces First Quarter 2020 Outcomes

GLEN BURNIE, Md., Might 01, 2020 (GLOBE NEWSWIRE) — Glen Burnie Bancorp (“Bancorp”) (NASDAQ:GLBZ), the financial institution holding firm for The Financial institution of Glen Burnie (“Financial institution”), immediately reported outcomes for the primary quarter ended March 31, 2020.  Web earnings for the primary quarter was $0.27 million, or $0.09 per fundamental and diluted widespread share, as in comparison with $0.14 million, or $0.05 per fundamental and diluted widespread share for the three-month interval ended March 31, 2019.

Web loan balances decreased by $7.6 million, or 2.70% through the three-month interval ended March 31, 2020, pushed by a $7.2 million decline within the oblique car loan portfolio, as in comparison with a rise of $0.2 million, or 0.08% throughout the identical interval of 2019.  At March 31, 2020, Bancorp had complete belongings of $380.5 million.  Bancorp, the oldest impartial business financial institution in Anne Arundel County, paid its 111^th consecutive quarterly dividend on Might 1, 2020.

“The Firm is extremely targeted on navigating the present challenges introduced on by the COVID-19 pandemic.  Whereas we anticipate to see an adversarial influence to our earnings within the close to time period, we’re assured that we now have the fitting management, a strong steadiness sheet and powerful threat administration to handle effectively by way of the state of affairs,” mentioned John D. Lengthy, President and Chief Govt Officer.  “The lower in web curiosity earnings and enhance in web curiosity margin from the year-ago quarter had been primarily as a consequence of declines in balances and alter within the mixture of the loan and funding safety portfolios, mixed with decrease charges paid on interest-bearing liabilities.  The decline in charges paid on interest-bearing liabilities is primarily attributable to the 5 charge cuts by the Federal Reserve from August 2019 by way of March 2020 with the March 15^th motion reducing the federal funds charge to a spread of 0% – 0.25%.”

Commenting on the primary quarter outcomes, Mr. Lengthy continued, “The COVID-19 pandemic has brought on extreme disruptions to the worldwide financial system and the markets wherein we function.  Our high issues have shifted to servicing the fast liquidity wants of our shoppers, making certain the well being and well-being of our staff and supporting the communities wherein we reside and serve.  Our groups have been working tirelessly to help shoppers by executing the Small Enterprise Administration (SBA) Paycheck Safety Program (PPP) enacted as a part of the Coronavirus Assist, Aid, and Financial Safety (CARES) Act stimulus laws, aiding with cost forbearance as acceptable and different reduction packages.  We’ve got executed our strategic pandemic plan, which included implementing distant work preparations to the fullest extent attainable, separating particular person departments, working department lobbies by appointment solely, and totally staffing all department drive-thru lanes.  We’re speaking with and inspiring our clients to make use of our Automated Teller Machines, on-line banking, cellular banking and invoice pay and are actively selling social distancing in all elements of our on a regular basis enterprise.”

In closing, Mr. Lengthy added, “In these very uncommon occasions, our energy and resolve allow us to take distinctive care of our clients, staff and communities.  Primarily based on our capital ranges, conservative underwriting insurance policies, on- and off-balance sheet liquidity, robust loan diversification, and present financial circumstances inside the markets we serve, administration expects to navigate the uncertainties related to the pandemic and stay well-capitalized.  We’re carefully monitoring the speedy developments relating to the pandemic and stay assured in our long-term strategic imaginative and prescient.”

COVID-19 Operational Response

The Firm has enterprise continuity plans in place that cowl a wide range of potential impacts to enterprise operations.  These plans are periodically reviewed and examined and have been designed to guard the continuing viability of financial institution operations within the occasion of a disruption akin to a pandemic.  Starting in early March 2020, the Firm activated its pandemic preparedness plan.  Following suggestions from the Facilities for Illness Management and Prevention and the Maryland Governor, the Firm applied enhanced cleansing practices for financial institution services and offered steering to staff and clients on greatest practices to reduce the unfold of the virus.  The Firm modified supply channels with a shift to drive via solely service on the banking places of work supplemented by appointments for service within the workplace lobbies.  The Firm additionally inspired using on-line and cellular channels.

To assist guarantee the supply of employees throughout all Firm areas and departments, the Firm took a number of steps together with transitioning many help positions to distant solely to reduce the potential for the an infection of a complete division or space.  On any given day, roughly 30% of the Firm’s worker base are working remotely.  The Firm has enhanced its distant work capabilities by offering extra laptops and varied audio and video assembly applied sciences.

We’re actively taking part within the SBA PPP program and anticipate to fund it with minimal capital influence.  Below this program, the Financial institution accepted 75 loan requests as of April 30, 2020 that had been licensed by the SBA for about $13.6 million.

The State of Maryland issued stay-at-home order has disrupted non-essential companies, brought on giant disruptions in spending and brought on widespread furloughs and layoffs inside the workforce.  In response to requests from debtors who’ve skilled pandemic-related enterprise or private cash move interruptions, and in accordance with just lately issued regulatory steering, we now have made short-term loan modifications involving cost deferrals.  As of April 30, 2020, roughly 205 loans with balances of $37.5 million have been accepted.

Highlights for the First Three Months of 2020

Whole curiosity earnings declined $0.2 million or 5.7% to $3.5 million, pushed by decreases in curiosity earnings on loans and funding securities in step with declines within the balances of those portfolios, and decrease curiosity earned on in a single day funds, primarily attributable to decrease market charges.  Past pricing stress/competitors and absolutely the low stage of charges, the present financial outlook and prospects of a sustained historic low rate of interest surroundings will doubtless proceed to position stress on web curiosity margin.  Exacerbating the above, the Firm has maintained considerably greater ranges of extra steadiness sheet liquidity through the first quarter of 2020.

Because of minimal charge-offs, discount in our loan portfolio and powerful credit score self-discipline, we had been capable of recapture a portion of loan loss reserves within the first quarter of 2020.  Bancorp has robust liquidity and capital positions that present ample capability for future development, together with the Financial institution’s complete regulatory capital to threat weighted belongings of 13.33% at March 31, 2020, as in comparison with 13.46% for a similar interval of 2019.

Return on common belongings for the three-month interval ended March 31, 2020 was 0.28%, as in comparison with 0.14% for the three-month interval ended March 31, 2019.  Return on common fairness for the three-month interval ended March 31, 2020 was 2.98%, as in comparison with 1.59% for the three-month interval ended March 31, 2019.  Larger web earnings and decrease common asset balances primarily drove the upper return on common belongings; whereas greater web earnings primarily drove the upper return on common fairness.

The guide value per share of Bancorp’s widespread stock was $12.67 at March 31, 2020, as in comparison with $12.23 per share at March 31, 2019.

At March 31, 2020, the Financial institution remained above all “well-capitalized” regulatory requirement ranges.  The Financial institution’s tier 1 risk-based capital ratio was roughly 12.63% at March 31, 2020, as in comparison with 12.51% at March 31, 2019.  Liquidity remained robust as a consequence of managed cash and cash equivalents, borrowing traces with the FHLB of Atlanta, the Federal Reserve and correspondent banks, and the scale and composition of the bond portfolio.

Stability Sheet Overview

Whole belongings had been $380.5 million at March 31, 2020, a lower of $4.Four million or 1.15%, from $384.9 million at December 31, 2019.  Funding securities had been $70.2 million at March 31, 2020, a lower of $1.Three million or 1.84%, from $71.5 million at December 31, 2019.  Loans, web of deferred charges and prices, had been $277.Zero million at March 31, 2020, a lower of $7.7 million or 2.73%, from $284.7 million at December 31, 2019.  Money and cash equivalents elevated $4.Eight million or 35.97%, from December 31, 2019 to March 31, 2020. 

Whole deposits had been $321.Eight million at March 31, 2020, a rise of $0.Four million or 0.11%, from $321.Four million at December 31, 2019.  Noninterest-bearing deposits had been $113.Three million at March 31, 2020, a rise of $6.1 million or 5.70%, from $107.2 million at December 31, 2019.  Noninterest-bearing demand deposit balances elevated, as clients maintained greater ranges of liquidity as a consequence of financial uncertainty.  Curiosity-bearing deposits had been $208.5 million at March 31, 2020, a lower of $5.Eight million or 2.69%, from $214.Three million at December 31, 2019.  Whole borrowings had been $20.Zero million at March 31, 2020, a lower of $5.Zero million or 20.00%, from $25.Zero million at December 31, 2019.

Stockholders’ fairness was $35.9 million at March 31, 2020, a rise of $0.2 million or 0.50%, from $35.7 million at December 31, 2019.  The $0.2 million lower in amassed different complete loss drove the rise in stockholders’ fairness.

Asset high quality, which has trended inside a slender vary over the previous a number of years, has remained sound and mirrored no influence associated to the pandemic at March 31, 2020.  Nonperforming belongings, which include nonaccrual loans, troubled debt restructurings, accruing loans overdue 90 days or extra, and different actual property owned, represented 1.26% of complete belongings at March 31, 2020, as in comparison with 0.86% for a similar interval of 2019.

Overview of Monetary Outcomes

For the three-month durations ended March 31, 2020 and 2019

Web earnings for the three-month interval ended March 31, 2020 was $0.27 million, as in comparison with $0.14 million for the three-month interval ended March 31, 2019.

Web curiosity earnings for the three-month interval ended March 31, 2020 totaled $3.05 million, as in comparison with $3.14 million for the three-month interval ended March 31, 2019.  Common earning-asset balances decreased $20 million to $366 million for the three-month interval ended March 31, 2020, as in comparison with $386 million for a similar interval of 2019.  Aggressive loan origination pressures in addition to a declining rate of interest surroundings drove the lower in common interest-earning asset balances and yields.

Web curiosity margin for the three-month interval ended March 31, 2020 was 3.34%, as in comparison with 3.30% for a similar interval of 2019, a rise of 0.04%.  Decrease common balances and yields on interest-earning belongings and decrease price of funds on interest-bearing liabilities had been the first drivers of the outcomes.  The typical steadiness on interest-earning belongings decreased $20 million whereas the yield decreased 0.07%.  The price of funds decreased 0.10% from 0.63% to 0.53% primarily as a result of $17 million discount in borrowed funds year-over-year.

The damaging provision for loan losses for the three-month interval ended March 31, 2020 was $80,000, as in comparison with a constructive provision of $173,000 for a similar interval of 2019.  The lower for the three-month interval ended March 31, 2020, when in comparison with the three-month interval ended March 31, 2019, primarily displays a lower within the steadiness of the loan portfolio and web cost offs.  Because of this, the allowance for loan losses was $1.92 million at March 31, 2020, representing 0.69% of complete loans, as in comparison with $2.61 million, or 0.87% of complete loans at March 31, 2019.

Noninterest earnings for the three-month interval ended March 31, 2020 was $255,000, as in comparison with $282,000 for the three-month interval ended March 31, 2019.  

For the three-month interval ended March 31, 2020, noninterest expense was $3.04 million, as in comparison with $3.08 million for the three-month interval ended March 31, 2019.  The first contributors to the $0.04 million lower, when in comparison with the three-month interval ended March 31, 2019 had been decreases in wage and worker advantages, phone prices and different bills, offset by will increase in occupancy and gear bills, authorized, accounting and different skilled charges, knowledge processing and merchandise processing providers and loan assortment prices.

For the three-month interval ended March 31, 2020, earnings tax expense was $75,000 in contrast with $36,000 for a similar interval a 12 months earlier.  The efficient tax charge was 21.94%, in contrast with 21.12% for a similar interval a 12 months in the past. 

Glen Burnie Bancorp Data

Glen Burnie Bancorp is a financial institution holding firm headquartered in Glen Burnie, Maryland.  Based in 1949, The Financial institution of Glen Burnie® is a regionally owned neighborhood financial institution with Eight department places of work serving Anne Arundel County.  The Financial institution is engaged within the business and retail banking enterprise together with the acceptance of demand and time deposits, and the origination of loans to people, associations, partnerships and companies.  The Financial institution’s actual property financing consists of residential first and second mortgage loans, dwelling fairness traces of credit score and business mortgage loans.  The Financial institution additionally originates car loans by way of preparations with native car sellers.  Extra info is offered at www.thebankofglenburnie.com.

Ahead-Wanting Statements

The statements contained herein that aren’t historic monetary info, could also be deemed to represent forward-looking statements inside the that means of the Non-public Securities Litigation Reform Act of 1995.  Such statements are topic to sure dangers and uncertainties, which may trigger the Firm’s precise outcomes sooner or later to vary materially from its historic outcomes and people presently anticipated or projected.  These statements are evidenced by phrases akin to “anticipate,” “estimate,” “ought to,” “anticipate,” “consider,” “intend,” and comparable expressions.  Though these statements mirror administration’s good religion beliefs and projections, they aren’t ensures of future efficiency and so they could not show true.  For a extra full dialogue of those and different threat components, please see the Firm’s stories filed with the Securities and Exchange Fee.

For additional info contact:

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