Glen Burnie reports Q2 EPS (7c) vs. 10c last year

On June 30, 2024, the Bank remained above all “well-capitalized” regulatory requirement levels. The Bank’s tier 1 risk-based capital ratio was approximately 15.59% on June 30, 2024, as compared to 17.37% on December 31, 2023. Total assets were $355.7M on June 30, 2024, a decrease of $7.9M or 2.17%, from $363.6M on June 30, 2023. As of June 30, 2024, total stockholders’ equity was $17.5M, equivalent to a book value of $6.04 per common share. Total stockholders’ equity on June 30, 2023, was $17.3M, equivalent to a book value of $6.01 per common share. “The current interest rate environment remains challenging for community banks with respect to profitability,” said Mark Hanna, CEO. “The continued surprising strength in the economy has caused the current interest rate environment to remain ‘higher for longer’ which puts continued pressure on banks in the competition for deposits and the cost of funds. Our second quarter, 2024, earnings were impacted by a $599,000 increase in our allowance for credit losses related to growth in the loan portfolio and continued to be negatively impacted by our increased deposit and borrowing costs due to an inverted yield curve and rigorous competition for core deposits. Notwithstanding, our net interest margin expanded by sixteen basis points on a linked-quarter basis to 3.02%, signifying a possible turning point in the current cycle while achieving net loan growth of $23.0 million during the quarter and $20.5 million year-over-year. Additionally, after declines in 2022 and 2023, deposits increased 1.9% in the first six months of 2024. As we face this difficult revenue environment, we continue to hold the line on noninterest expenses, which were down by 1.1% on a linked quarter basis, and down 2.0% for the first six months of this year versus the same period last year. We also continue to post strong credit quality metrics, with a non-performing asset to total assets ratio of 0.09% as of June 30, 2024.”