Glen Burnie Bancorp Announces First Quarter 2025 Results
GLEN BURNIE, Md., May 07, 2025 (GLOBE NEWSWIRE) — Glen Burnie Bancorp (“Bancorp”) (NASDAQ: GLBZ), the bank holding company for The Bank of Glen Burnie (“Bank”), today reported results for the first quarter ended March 31, 2025. Net income for the first quarter was $153,000, or $0.05 per basic and diluted common share, as compared to net income of $3,000, or $0 per basic and diluted common share for the three-month period ended March 31, 2024. On March 31, 2025, Bancorp had total assets of $358.0 million. Bancorp is the oldest independent commercial bank in Anne Arundel County.
“The Company continues to pursue growing loans and deposits to improve revenues, margins and, ultimately, profitability. That said, we are aware of headwinds that could result in a slowing economy. We continue to emphasize disciplined lending practices, focusing on growing new client relationships, safety, and margin. Our allowance for credit losses stood at $2.7 million at March 31, 2025, representing 1.30% of total loans. Our non-performing assets remained at minimal levels consistent with previous quarters, underscoring the strength of our underwriting standards and ongoing credit monitoring,” said Mark C. Hanna, President and Chief Executive Officer. “Our team is committed to our customers and communities, and we continue to focus on growing funding sources, growing earning assets and building the infrastructure needed to grow customer relationships. These strategic priorities drive all areas of revenue and expense control, with the goal of expanding both return on assets and return on capital for the long term. While markets have been volatile recently, our Company remains financially strong, sound, and secure as reflected in our capital levels, asset quality, diversified deposit base and access to multiple liquidity sources.”
Highlights for the First Three Months of 2025
Net interest income decreased $8,000, or 0.31% to $2.56 million through March 31, 2025, as compared to $2.57 million during the prior-year first quarter. The decrease resulted from a $233,000 increase in interest expense, offset by a $224,000 increase in interest income. The increase in interest on deposits was driven by increased deposit balances in the money market products. The increase in interest and fees on loans was driven by the $30.0 million higher average balance and 0.27% higher yield on loan balances.
The Company expects that its strong liquidity and capital positions will provide ample capacity for future growth.
Return on average assets for the three-month period ended March 31, 2025, was 0.17%, as compared to 0% for the three-month period ended March 31, 2024. Return on average equity for the three-month period ended March 31, 2025, was 3.22%, as compared to 0.06% for the three-month period ended March 31, 2024. Release of provision for credit allowance on loans and unfunded commitments primarily drove the higher return on average assets and average equity.
On March 31, 2025, 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 $358.0 million on March 31, 2025, a decrease of $1.0 million or 0.27%, from $359.0 million on December 31, 2024. Cash and cash equivalents decreased $788,000 or 3.22%, from December 31, 2024, to March 31, 2025. Investment securities were $106.6 million on March 31, 2025, a decrease of $1.3 million or 1.23%, from $107.9 million on December 31, 2024. Loans, net of deferred fees and costs, were $207.4 million on March 31, 2025, an increase of $2.2 million or 1.06%, from $205.2 million on December 31, 2024. Loan balances increased 16.52% over the last four quarters, growing from $178.0 million on March 31, 2024 to $207.4 million on March 31, 2025. With the $20 million reduction in short term borrowings over the past twelve months, average earning-asset balances declined slightly to $356.2 million on March 31, 2025, as compared to $362.0 million during the prior-year first quarter.
Total deposits were $317.3 million on March 31, 2025, an increase of $8.1 million or 2.61%, from $309.2 million on December 31, 2024. Noninterest-bearing deposits were $104.5 million on March 31, 2025, an increase of $3.7 million or 3.71%, from $100.7 million on December 31, 2024. Interest-bearing deposits were $212.8 million on March 31, 2025, an increase of $4.4 million or 2.08%, from $208.4 million on December 31, 2024. Total borrowings were $20.0 million on March 31, 2025, a decrease of $10.0 million, or 33.33% from $30.0 million on December 31, 2024.
As of March 31, 2025, total stockholders’ equity was $19.2 million (5.36% of total assets), equivalent to a book value of $6.61 per common share. Total stockholders’ equity on December 31, 2024, was $17.8 million (4.96% of total assets), equivalent to a book value of $6.14 per common share. The increase in the ratio of stockholders’ equity to total assets was due to an increase in equity from the decline in the market value loss of the Company’s available-for-sale securities portfolio. Included in stockholders’ equity on March 31, 2025, and December 31, 2024, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling $17.8 million and $19.0 million, respectively. This decrease in unrealized losses primarily resulted from decreasing market interest rates during the first quarter of 2025, which increased the fair value of the investment securities. Changes in unrealized losses on the investment portfolio are attributed to changes in interest rates, not credit quality. The Company does not intend to sell, and it is more likely than not that it will not be required to sell any securities held at an unrealized loss.
Asset quality, which has trended within a narrow range over the past several years, remains sound on March 31, 2025. Nonperforming assets, which consist of nonaccrual loans, restructured loans to borrowers with financial difficulty, accruing loans past due 90 days or more, and other real estate owned, represented 0.32% of total assets on March 31, 2025, as compared to 0.10% on December 31, 2024, demonstrating positive asset quality trends across the portfolio. The allowance for credit losses on loans was $2.7 million, or 1.30% of total loans, as of March 31, 2025, as compared to $2.8 million, or 1.38% of total loans, as of December 31, 2024. The allowance for credit losses for unfunded commitments was $110,000 as of March 31, 2025, as compared to $584,000 as of December 31, 2024. The $474,000 decrease was primarily driven by the utilization of 1.33% lower loss rates during the first quarter of 2025 as compared to the fourth quarter of 2024.
Review of Financial Results
For the three-month periods ended March 31, 2025, and 2024
Net income for the three-month period ended March 31, 2025, was $153,000, as compared to net income of $3,000 for the three-month period ended March 31, 2024. The increase is primarily the result of a $315,000 decrease in the allowance for credit loss and $474,000 decrease in the allowance for unfunded commitments included in other noninterest expenses, partially offset by a $209,000 increase in salary and employee benefits costs, a $129,000 increase in legal, accounting and other professional fees, and a $203,000 decrease in income tax benefit.
The Company is taking steps to reduce non-interest expenses in future periods which include the January 2025 closure of our Linthicum branch office, the planned closing of our Severna Park branch office in May of 2025, and the recent announcement of an early retirement program.
Net interest income for the three-month period ended March 31, 2025, totaled $2.56 million, as compared to $2.57 million for the three-month period ended March 31, 2024. The $8,000 decrease in net interest income was primarily due to the $439,000 increase in interest expense related to higher balances on money market deposits, $193,000 lower interest and dividends on securities due to principal paydowns, and $77,000 lower interest on deposits with banks due to lower cash balances, offset by $494,000 higher interest income on loans due to higher yields and balances, and $206,000 lower interest on short term borrowings due to lower borrowing balances.
Net interest margin for the three-month period ended March 31, 2025, was 2.92%, as compared to 2.86% for the same period of 2024, an increase of 0.06%. The increase in the net interest margin is primarily due to increases in the yield on loans, offset by increases in yields on interest-bearing deposits and borrowed funds. Loan yields increased from 5.06% to 5.34% between the two periods while the cost of interest-bearing liabilities increased from 1.51% to 1.89% between the two periods.
The average balance of interest-earning assets decreased $5.8 million while the yield increased 0.35% from 3.78% to 4.13%, when comparing the three-month periods ended March 31, 2025, and 2024, respectively. The average balance of interest-bearing funds increased $7.6 million during these same periods. The average balance of noninterest-bearing funds decreased $12.9 million, and the cost of funds increased 0.31%, when comparing the three-month periods ended March 31, 2025, and 2024.
The release of credit loss allowance on loans for the three-month period ended March 31, 2025, was $146,000, as compared to a provision of credit loss allowance of $169,000 for the same period of 2024. The decrease for the three-month period ended March 31, 2025, when compared to the three-month period ended March 31, 2024, primarily reflects the use of a lower loss rate. Noninterest income for the three-month period ended March 31, 2025, was $205,000, as compared to $229,000 for the three-month period ended March 31, 2024.
For the quarter ended March 31, 2025, noninterest expense totaled $2.8 million, a decrease of $69,000 compared to $2.9 million for the quarter ended March 31, 2024. On a year-over-year comparative basis, noninterest expenses decreased due to a $474,000 decrease in the credit allowance for unfunded commitments, partially offset by a $209,000 increase in salary and employee benefits and $129,000 increase in legal, accounting, and other professional fees. Salary and employee benefits expenses increased primarily due to increased employee wages and the cost of incentive programs.
For the three-month period ended March 31, 2025, income tax benefit was $29,000, as compared with $232,000 for the same period a year earlier. The $232,000 income tax benefit included $87,000 associated with amended Maryland tax returns for tax years 2022 and 2021.
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 seven 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) | |||||||||||
| March 31, | March 31, | December 31, | |||||||||
| 2025 | 2024 | 2024 | |||||||||
| (unaudited) | (unaudited) | (audited) | |||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 1,792 | $ | 9,091 | $ | 2,012 | |||||
| Interest-bearing deposits in other financial institutions | 21,884 | 33,537 | 22,452 | ||||||||
| Total Cash and Cash Equivalents | 23,676 | 42,628 | 24,464 | ||||||||
| Investment securities available for sale, at fair value | 106,623 | 128,727 | 107,949 | ||||||||
| Restricted equity securities, at cost | 1,201 | 246 | 1,671 | ||||||||
| Loans, net of deferred fees and costs | 207,393 | 177,950 | 205,219 | ||||||||
| Less: Allowance for credit losses(1) | (2,689 | ) | (2,035 | ) | (2,839 | ) | |||||
| Loans, net | 204,704 | 175,915 | 202,380 | ||||||||
| Premises and equipment, net | 2,609 | 2,928 | 2,678 | ||||||||
| Bank owned life insurance | 8,877 | 8,700 | 8,834 | ||||||||
| Deferred tax assets, net | 8,088 | 8,255 | 8,548 | ||||||||
| Accrued interest receivable | 1,243 | 1,281 | 1,345 | ||||||||
| Accrued taxes receivable | 159 | 363 | 148 | ||||||||
| Prepaid expenses | 474 | 460 | 471 | ||||||||
| Other assets | 319 | 367 | 468 | ||||||||
| Total Assets | $ | 357,973 | $ | 369,870 | $ | 358,956 | |||||
| LIABILITIES | |||||||||||
| Noninterest-bearing deposits | $ | 104,487 | $ | 115,167 | $ | 100,747 | |||||
| Interest-bearing deposits | 212,770 | 194,064 | 208,442 | ||||||||
| Total Deposits | 317,257 | 309,231 | 309,189 | ||||||||
| Short-term borrowings | 20,000 | 40,000 | 30,000 | ||||||||
| Defined pension liability | 338 | 327 | 330 | ||||||||
| Accrued expenses and other liabilities | 1,197 | 2,183 | 1,620 | ||||||||
| Total Liabilities | 338,792 | 351,741 | 341,139 | ||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||
| Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,900,681, 2,887,467, and 2,900,481 shares as of March 31, 2025, March 31, 2024, and December 31, 2024, respectively. | 2,901 | 2,887 | 2,901 | ||||||||
| Additional paid-in capital | 11,037 | 10,989 | 11,037 | ||||||||
| Retained earnings | 23,035 | 23,575 | 22,882 | ||||||||
| Accumulated other comprehensive loss | (17,792 | ) | (19,322 | ) | (19,003 | ) | |||||
| Total Stockholders’ Equity | 19,181 | 18,129 | 17,817 | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | 357,973 | $ | 369,870 | $ | 358,956 | |||||
| GLEN BURNIE BANCORP AND SUBSIDIARY | ||||||||
| CONSOLIDATED STATEMENTS OF (LOSS) INCOME | ||||||||
| (dollars in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Interest income | ||||||||
| Interest and fees on loans | $ | 2,709 | $ | 2,215 | ||||
| Interest and dividends on securities | 745 | 938 | ||||||
| Interest on deposits with banks and federal funds sold | 175 | 252 | ||||||
| Total Interest Income | 3,629 | 3,405 | ||||||
| Interest expense | ||||||||
| Interest on deposits | 841 | 402 | ||||||
| Interest on short-term borrowings | 225 | 431 | ||||||
| Total Interest Expense | 1,066 | 833 | ||||||
| Net Interest Income | 2,563 | 2,572 | ||||||
| (Release) provision of credit loss allowance | (146 | ) | 169 | |||||
| Net interest income after credit loss provision | 2,709 | 2,403 | ||||||
| Noninterest income | ||||||||
| Service charges on deposit accounts | 31 | 38 | ||||||
| Other fees and commissions | 131 | 148 | ||||||
| Income on life insurance | 43 | 43 | ||||||
| Total Noninterest Income | 205 | 229 | ||||||
| Noninterest expenses | ||||||||
| Salary and employee benefits | 1,827 | 1,618 | ||||||
| Occupancy and equipment expenses | 309 | 331 | ||||||
| Legal, accounting and other professional fees | 383 | 254 | ||||||
| Data processing and item processing services | 256 | 250 | ||||||
| FDIC insurance costs | 41 | 38 | ||||||
| Advertising and marketing related expenses | 37 | 23 | ||||||
| Loan collection costs | 45 | 5 | ||||||
| Telephone costs | 38 | 40 | ||||||
| Other expenses | (146 | ) | 302 | |||||
| Total Noninterest Expenses | 2,790 | 2,861 | ||||||
| Loss before income taxes | 124 | (229 | ) | |||||
| Income tax beneift | (29 | ) | (232 | ) | ||||
| Net income | $ | 153 | $ | 3 | ||||
| Basic and diluted net income per common share | $ | 0.05 | $ | – | ||||
| GLEN BURNIE BANCORP AND SUBSIDIARY | ||||||||||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | ||||||||||||||||||
| For the three months ended March 31, 2025 and 2024 | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| Accumulated | ||||||||||||||||||
| Additional | Other | Total | ||||||||||||||||
| Common | Paid-in | Retained | Comprehensive | Stockholders’ | ||||||||||||||
| (unaudited) | Stock | Capital | Earnings | Loss | Equity | |||||||||||||
| Balance, December 31, 2023 | $ | 2,883 | $ | 10,964 | $ | 23,859 | $ | (18,381 | ) | $ | 19,325 | |||||||
| Net income | – | – | 3 | – | 3 | |||||||||||||
| Cash dividends, $0.10 per share | – | – | (287 | ) | – | (287 | ) | |||||||||||
| Dividends reinvested under dividend reinvestment plan | 4 | 25 | – | – | 29 | |||||||||||||
| Other comprehensive loss | – | – | – | (941 | ) | (941 | ) | |||||||||||
| Balance, March 31, 2024 | $ | 2,887 | $ | 10,989 | $ | 23,575 | $ | (19,322 | ) | $ | 18,129 | |||||||
| Accumulated | ||||||||||||||||||
| Additional | Other | Total | ||||||||||||||||
| Common | Paid-in | Retained | Comprehensive | Stockholders’ | ||||||||||||||
| (unaudited) | Stock | Capital | Earnings | (Loss) Income | Equity | |||||||||||||
| Balance, December 31, 2024 | $ | 2,901 | $ | 11,037 | $ | 22,882 | $ | (19,003 | ) | $ | 17,817 | |||||||
| Net income | – | – | 153 | – | 153 | |||||||||||||
| Other comprehensive income | – | – | – | 1,211 | 1,211 | |||||||||||||
| Balance, March 31, 2025 | $ | 2,901 | $ | 11,037 | $ | 23,035 | $ | (17,792 | ) | $ | 19,181 | |||||||
| GLEN BURNIE BANCORP AND SUBSIDIARY | ||||||||||||||||
| SELECTED FINANCIAL DATA | ||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| March 31, | December 31, | March 31, | December 31, | |||||||||||||
| 2025 | 2024 | 2024 | 2024 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Financial Data | ||||||||||||||||
| Assets | $ | 357,973 | $ | 358,956 | $ | 369,870 | $ | 358,956 | ||||||||
| Investment securities | 106,623 | 107,949 | 128,727 | 107,949 | ||||||||||||
| Loans, (net of deferred fees & costs) | 207,393 | 205,219 | 177,950 | 205,219 | ||||||||||||
| Allowance for loan losses | 2,689 | 2,839 | 2,035 | 2,839 | ||||||||||||
| Deposits | 317,257 | 309,189 | 309,231 | 309,189 | ||||||||||||
| Borrowings | 20,000 | 30,000 | 40,000 | 30,000 | ||||||||||||
| Stockholders’ equity | 19,181 | 17,817 | 18,129 | 17,817 | ||||||||||||
| Net income (loss) | 153 | (39 | ) | 3 | (112 | ) | ||||||||||
| Average Balances | ||||||||||||||||
| Assets | $ | 353,308 | $ | 366,888 | $ | 358,877 | $ | 363,994 | ||||||||
| Investment securities | 132,805 | 136,868 | 163,618 | 148,037 | ||||||||||||
| Loans, (net of deferred fees & costs) | 205,868 | 204,703 | 175,914 | 192,646 | ||||||||||||
| Deposits | 312,030 | 314,046 | 305,858 | 309,838 | ||||||||||||
| Borrowings | 20,215 | 30,323 | 31,667 | 32,721 | ||||||||||||
| Stockholders’ equity | 19,258 | 20,664 | 19,124 | 19,169 | ||||||||||||
| Performance Ratios | ||||||||||||||||
| Annualized return on average assets | 0.17% | -0.04% | 0.00% | -0.03% | ||||||||||||
| Annualized return on average equity | 3.22% | -0.75% | 0.06% | -0.58% | ||||||||||||
| Net interest margin | 2.92% | 2.98% | 2.86% | 2.98% | ||||||||||||
| Dividend payout ratio | 0% | 0% | 9426% | -773% | ||||||||||||
| Book value per share | $ | 6.61 | $ | 6.14 | $ | 6.28 | $ | 6.14 | ||||||||
| Basic and diluted net income (loss) per share | 0.05 | (0.01 | ) | – | (0.04 | ) | ||||||||||
| Cash dividends declared per share | 0.00 | 0.00 | 0.10 | 0.30 | ||||||||||||
| Basic and diluted weighted average shares outstanding | 2,900,681 | 2,900,681 | 2,885,552 | 2,893,871 | ||||||||||||
| Asset Quality Ratios | ||||||||||||||||
| Allowance for loan losses to loans | 1.30% | 1.38% | 1.14% | 1.38% | ||||||||||||
| Nonperforming loans to avg. loans | 0.55% | 0.18% | 0.21% | 0.19% | ||||||||||||
| Allowance for loan losses to nonaccrual & 90+ past due loans | 236.9% | 789.1% | 549.1% | 789.1% | ||||||||||||
| Net charge-offs (recoveries) annualize to avg. loans | 0.01% | -0.04 | % | 0.66% | 0.08% | |||||||||||
| Capital Ratios | ||||||||||||||||
| Common Equity Tier 1 Capital | N/A | 15.15% | 17.14% | 15.15% | ||||||||||||
| Tier 1 Risk-based Capital Ratio | N/A | 15.15% | 17.14% | 15.15% | ||||||||||||
| Leverage Ratio | N/A | 9.97% | 10.43% | 9.97% | ||||||||||||
| Total Risk-Based Capital Ratio | N/A | 16.40% | 18.30% | 16.40% | ||||||||||||
CONTACT: For further information contact: Jeffrey D. Harris, Chief Financial Officer 410-768-8883 jdharris@bogb.net 106 Padfield Blvd Glen Burnie, MD 21061
