GLBZ Glen Burnie Bancorp

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 EndedDecember 31,							Twelve Months EndedDecember 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	%

For further information contact:

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