 GLEN BURNIE, Md., Aug. 05, 2020 GLOBE NEWSWIRE -- Glen Burnie Bancorp Bancorp NASDAQ: GLBZ, the bank holding company for The Bank of Glen Burnie Bank, announced today a net loss of 96,000, or 0.03 per basic and diluted common share for the three-month period ended June 30, 2020, as compared to net income of 319,000, or 0.11 per basic and diluted common share for the three-month period ended June 30, 2019. Bancorp reported net income of 174,000, or 0.06 per basic and diluted common share for the six-month period ended June 30, 2020, compared to 454,000, or 0.16 per basic and diluted common share for the same period in 2019. At June 30, 2020, Bancorp had total assets of 418.2 million. Bancorp, the oldest independent commercial bank in Anne Arundel County, paid its 112th consecutive quarterly dividend on July 31, 2020.As one would expect, the second quarter of 2020 was significantly impacted by the COVID-19 pandemic. Much of our activity was focused on addressing the issues caused by the pandemic. Our priority was keeping our staff and clients safe and helping our clients navigate this crisis through loan deferrals and U.S. Small Business Associations Payroll Protection Program SBA PPP loans. We are proud of the effort put forth by our employees, Board of Directors and our leadership team to serve the needs of our customers and the local community during these difficult times. While massive federal stimulus aided the economic recovery, future economic outcomes are likely dependent on the path of the virus, said John D. Long, President and Chief Executive Officer.An interest rate environment rivaling that of the Great Recession continued to impact our margins and therefore our profits for the second quarter. The decrease in yields and cost of funds for the second quarter of 2020 reflected the full quarter impact of the 150-basis point reduction in the target federal funds rate at the end of March 2020. However, we are encouraged by the robust deposit growth already experienced this year. Our year-over-year earnings per share for the first half of 2020 was lower reflecting the impact of the lower interest rate environment and higher allowance for credit losses resulting from the rapid growth in the unemployment rate. We remain well capitalized and continue to reward our shareholders, having paid quarterly cash dividends for 112 consecutive quarters.In closing, Mr. Long added, As we look ahead to the remainder of 2020, downside risks remain from the economic uncertainty and the significant pressure from the low interest rates. Despite this, our underlying business remains strong, benefiting from our capital levels, conservative underwriting policies, on- and off-balance sheet liquidity and loan diversification. We are closely monitoring the rapid developments regarding the pandemic and remain confident in our long-term strategic vision. I remain proud of our employees and their ability to continue to adapt and deliver outstanding customer service during this challenging time.Highlights for the First Six Months of 2020Total interest income declined 0.4 million to 6.8 million for the six-month period ending June 30, 2020, compared to the same period in 2019. This was driven by decreases in interest income on loans and investment securities consistent with declines in the average balances of these portfolios, and lower interest earned on overnight funds, mainly attributable to lower market rates. Beyond pricing pressurecompetition and the absolute low level of rates, the current economic outlook and prospects of a sustained historic low interest rate environment will likely continue to place pressure on net interest margin. Exacerbating the above, the Company maintained significantly higher levels of excess balance sheet liquidity during the first half of 2020 year as compared to the same period in 2019. Bancorp has strong liquidity and capital positions that provide ample capacity for future growth, along with the Banks total regulatory capital to risk weighted assets of 12.95 at June 30, 2020, as compared to 12.91 for the same period of 2019.Return on average assets for the three-month period ended June 30, 2020 was -0.10, as compared to 0.33 for the three-month period ended June 30, 2019. Return on average equity for the three-month period ended June 30, 2020 was -1.05, as compared to 3.66 for the three-month period ended June 30, 2019. The impact of the lower interest rate environment and higher allowance for credit losses primarily drove the lower returns.The book value per share of Bancorps common stock was 12.65 at June 30, 2020, as compared to 12.37 per share at June 30, 2019.At June 30, 2020, the Bank remained above all well-capitalized regulatory requirement levels. The Banks tier 1 risk-based capital ratio was approximately 12.10 at June 30, 2020, as compared to 12.05 at June 30, 2019. 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 ReviewTotal assets were 418.2 million at June 30, 2020, an increase of 41.8 million or 11.11, from 376.4 million at June 30, 2019. The COVID-19 pandemic has created a significant amount of excess liquidity in the market. As a result of this excess liquidity, we had an increase of 15.0 million of average interest-bearing cash balances in the second quarter of 2020 compared to the same period in 2019. Investment securities were 84.5 million at June 30, 2020, an increase of 23.3 million or 38.07, from 61.2 million at June 30, 2019. Loans, net of deferred fees and costs, were 285.0 million at June 30, 2020, a decrease of 6.2 million or 2.13, from 291.2 million at June 30, 2019. Net loans during the first half of 2020 include loans funded under the SBA PPP. These PPP loans directly benefited the businesses and employees in our local communities. The Company funded 133 PPP loans totaling approximately 17.4 million in the second quarter of 2020. PPP loans, net of unearned fees of 518,000, totaled 16.8 million at June 30, 2020. The unearned fees are being accreted based on the estimated life of the loans. The Company anticipates that the SBA may forgive a significant number of PPP loans in the fourth quarter of 2020 and first quarter 2021, at which point the recognition of fee income will be accelerated.Total deposits were 341.9 million at June 30, 2020, an increase of 21.7 million or 6.78, from 320.2 million at June 30, 2019. Noninterest-bearing deposits were 127.6 million at June 30, 2020, an increase of 20.5 million or 19.14, from 107.1 million at June 30, 2019. The increase was due to new deposit accounts for PPP loans and core deposit growth. Interest-bearing deposits were 214.3 million at June 30, 2020, an increase of 1.3 million or 0.61, from 213.0 million at June 30, 2019. Total borrowings were 37.4 million at June 30, 2020, an increase of 17.4 million or 86.83, from 20.0 million at June 30, 2019. The Company participated in the Paycheck Protection Program Liquidity Facility PPPLF established by the Federal Reserve. At June 30, 2020, the Company borrowed 17.4 million under the PPPLF with a fixed rate of 0.35 and pledged PPP loans as collateral to secure the borrowings.Stockholders equity was 35.9 million at June 30, 2020, an increase of 1.0 million or 2.87, from 34.9 million at June 30, 2019. The increase in accumulated other comprehensive gain associated with net unrealized losses on the available for sale bond portfolio and increase in retained earnings and stock issuances under the dividend reinvestment program, offset by an increase in unrealized losses on interest rate swap contracts drove the overall increase in stockholders equity.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 1.12 of total assets at June 30, 2020, as compared to 1.44 for the same period of 2019. The decreases in nonaccrual loans and troubled debt restructurings, offset by a higher total asset balance drove the 0.32 decrease in nonperforming assets as percentage of total assets from June 30, 2019 to June 30, 2020.Review of Financial ResultsFor the three-month periods ended June 30, 2020 and 2019Net loss for the three-month period ended June 30, 2020 was 96,000, as compared to net income of 319,000 for the three-month period ended June 30, 2019.Net interest income for the three-month period ended June 30, 2020 totaled 2.94 million, a decrease of 188,000 from the three-month period ended June 30, 2019 due to lower interest income of 238,000, coupled with lower interest expense of 51,000. The decrease in yields and cost of funds for the second quarter of 2020 reflected the full quarter impact of the 150-basis point reduction in the target federal funds rate at the end of March 2020. The decrease in net interest income was due primarily to declining loan balances and a large increase in cash held in interest-bearing deposits in banks during this low rate environment, offset by interest income and fees recognized for PPP loans and reductions in the costs of interest-bearing deposits and borrowings. Loans, net of deferred fees and costs, including 17.4 million of PPP loans funded in the second quarter of 2020, decreased by 6.3 million or 2.15 to 285.0 million as of June 30, 2020, as compared to 291.2 million for the same period of 2019. PPP loans carry a fixed interest rate of 1.0 with a two-year contractual maturity.Net interest margin for the three-month period ended June 30, 2020 was 3.12, as compared to 3.41 for the same period of 2019. 