Glen Burnie Bancorp(US:GLBZ)2024-08-12 18:43Financial Performance - The Company reported a net loss of $201,000 for the six-month period ended June 30, 2024, compared to net income of $710,000 for the same period in 2023, primarily due to a $917,000 increase in interest expense on short-term borrowings[97]. - The net loss attributable to common stockholders for the three-month period ended June 30, 2024, was $204,000, or $0.07 per share, compared to net income of $276,000, or $0.10 per share for the same period in 2023[102]. - Comprehensive loss for the second quarter of 2024 totaled $0.4 million, a decrease from a comprehensive loss of $0.7 million in the same period of 2023, due to a $0.8 million decrease in unrealized losses on securities[119]. Assets and Liabilities - Total assets increased to $355.7 million on June 30, 2024, an increase of $3.9 million from December 31, 2023, with cash and cash equivalents rising by $1.5 million or 10.14%[98]. - The Bank's loan portfolio increased by $24.7 million or 14.20%, while investment securities available for sale declined by $22.2 million or 15.96% over the same period[98]. - Loans, net totaled $198.9 million at June 30, 2024, an increase of $24.7 million or 14.20% from $174.2 million at December 31, 2023[120]. - Total deposits as of June 30, 2024, reached $305.9 million, reflecting an increase of $5.8 million or 1.93% from $300.1 million on December 31, 2023[125]. Interest Income and Expense - Total interest income increased by $746,000 to $7.3 million for the six-month period ended June 30, 2024, primarily due to a 0.61% increase in the yield on loans[97]. - Net interest income for the three-month period ended June 30, 2024, was $2.8 million, a decrease of $328,000 or 10.53% compared to the same period in 2023[104]. - Interest expense for the second quarter of 2024 increased $954,000, or 623.53%, from $153,000 for the same period in 2023 to $1,107,000[107]. Credit Losses and Provisions - The Company's allowance for credit losses was $2.63 million as of June 30, 2024, an increase of $468,000 or 21.70% from December 31, 2023[98]. - The company recognized a provision for credit losses on loans of $526,000 for the three-month period ended June 30, 2024, compared to $127,000 for the same period in 2023, reflecting a significant increase due to a $20.9 million rise in the reservable balance of the loan portfolio[115]. Equity and Capital Ratios - Shareholder's equity decreased by $1.9 million or 9.59% to $17.5 million on June 30, 2024, primarily due to unrealized losses on securities available for sale[98]. - The Bank's total regulatory capital to risk-weighted assets was 16.84% on June 30, 2024, compared to 18.40% on December 31, 2023[98]. - The Bank's Tier 1 leverage ratio was 10.10% as of June 30, 2024, compared to 10.76% at December 31, 2023, indicating a decrease in capital adequacy[150]. Deposits and Funding - Demand deposits decreased by $7.3 million or 6.24% to $109.6 million from $116.9 million at December 31, 2023[125]. - Total interest-bearing deposits increased by $13.1 million or 7.15% to $196.2 million from $183.1 million at December 31, 2023[125]. - The Bank had $30.0 million in outstanding short-term borrowings from the Federal Reserve Bank under the Bank Term Funding Program as of June 30, 2024, up from $10.0 million at December 31, 2023[143]. Economic Value and Risk Management - The estimated changes in Economic Value of Equity (EVE) showed a 10% increase in a static -200 bp interest rate scenario as of June 30, 2024[140]. - The determination of the Allowance for Credit Losses (ACL) is a critical accounting estimate that relies on significant judgment regarding credit risk and expected future cash flows[154]. - The CECL methodology's impact on ACL will be influenced by the loan portfolio's composition, characteristics, and quality, as well as prevailing economic conditions[155].