Glen Burnie Bancorp (GLBZ)

Management Discussion

• Net income attributable to common stockholders for the three-month period ended March 31, 2022 was $231,000, or $0.08 per basic and diluted common share compared to $594,000, or $0.21 per basic and diluted common share for the same period of 2021. The results for the three-month period ending March 31, 2022, were lower than the same period of 2021 resulting primarily from a 2021 period decrease of $304,000 in the release of credit loss allowance for loans and a $195,000 decrease in net interest income.
• Net Interest Income. The Company’s net interest income for the three-month period ended March 31, 2022 was $2.68 million, as compared to $2.88 million for the same period in 2021, a decrease of $195,000, or 6.79%. The decrease in net interest income was due to lower interest income in the amount of $245,000, and lower interest expense in the amount of $50,000. The decrease in interest income was primarily due to a $6.1 million decrease in loan portfolio balances, offset by higher interest and dividends on securities. Although deposit driven excess liquidity fueled average interest-earning asset growth, competitive loan origination pressures as well as a low interest rate environment drove the overall decrease in average interest-earning asset yields.
• Total interest income for the first quarter of 2022 decreased $245,000, or 7.74% when compared to the same period in 2021, from $3.16 million in 2021 to $2.92 million in 2022. The primary driver of the decrease was a $469,000 decrease in interest and fees on loans due to lower average loan balances, offset by a $193,000 increase in interest and dividends on investment securities and a $31,000 increase in interest on deposits with banks and federal funds sold due to higher average balances.