Glen Burnie Bancorp Announces First Quarter 2025 Results

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Glen Burnie Bancorp shows mixed Q1 results with improved profits driven by one-time benefits amid modest operational challenges.

Glen Burnie Bancorp's Q1 2025 results present a mixed picture of progress and persistent challenges. Net income increased substantially to $153,000 ($0.05 per share) compared to just $3,000 in Q1 2024. However, this improvement largely stems from non-recurring benefits: a $146,000 release of loan loss provisions (versus a $169,000 provision in Q1 2024) and a $474,000 decrease in allowance for unfunded commitments.

Core banking metrics show both strengths and weaknesses. Loan growth has been robust at 16.52% year-over-year, reaching $207.4 million. Deposits increased by 2.61% from year-end 2024 to $317.3 million, with valuable noninterest-bearing deposits growing at 3.71%. Net interest margin improved slightly to 2.92% from 2.86% a year earlier.

Despite this growth, net interest income remained essentially flat at $2.56 million (down 0.31% year-over-year), suggesting pressure on yields or rising funding costs. Operating expenses increased significantly, with salary and employee benefits up $209,000 and professional fees up $129,000 compared to Q1 2024.

Asset quality shows concerning signals, with nonperforming assets tripling from 0.10% at year-end 2024 to 0.32% of total assets. While still at manageable levels, this trend requires monitoring. The allowance for credit losses stands at 1.30% of total loans.

Management is implementing cost-cutting measures through branch consolidation (closing Linthicum in January 2025 and Severna Park in May 2025) and an early retirement program, which should improve efficiency ratios in coming quarters.

Capital metrics improved with stockholders' equity at $19.2 million (5.36% of assets) and book value per share at $6.61, up from $6.14 at year-end. The unrealized losses on the securities portfolio decreased to $17.8 million from $19.0 million, benefiting from declining interest rates but still representing a significant drag on reported equity.

05/07/2025 - 10:25 AM

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%

For further information contact:

Jeffrey D. Harris, Chief Financial Officer
410-768-8883
jdharris@bogb.net
106 Padfield Blvd
Glen Burnie, MD 21061

FAQ

What was Glen Burnie Bancorp's (GLBZ) net income for Q1 2025?

Glen Burnie Bancorp reported net income of $153,000 ($0.05 per share) for Q1 2025, compared to $3,000 in Q1 2024.

How much did GLBZ's loan portfolio grow in the past year?

GLBZ's loan portfolio grew 16.52% year-over-year, from $178.0 million in March 2024 to $207.4 million in March 2025.

What cost-cutting measures is Glen Burnie Bancorp implementing in 2025?

The bank is closing its Linthicum branch (January 2025), plans to close the Severna Park branch (May 2025), and has announced an early retirement program.

What is GLBZ's current allowance for credit losses?

As of March 31, 2025, the allowance for credit losses was $2.7 million, representing 1.30% of total loans.

How much are Glen Burnie Bancorp's total deposits as of Q1 2025?

Total deposits were $317.3 million as of March 31, 2025, an increase of $8.1 million or 2.61% from December 31, 2024.

Glen Burnie Bancorp Announces First Quarter 2025 Results

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What was Glen Burnie Bancorp's (GLBZ) net income for Q1 2025?

How much did GLBZ's loan portfolio grow in the past year?

What cost-cutting measures is Glen Burnie Bancorp implementing in 2025?

What is GLBZ's current allowance for credit losses?

How much are Glen Burnie Bancorp's total deposits as of Q1 2025?

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Glen Burnie Bancorp Announces First Quarter 2025 Results

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What was Glen Burnie Bancorp's (GLBZ) net income for Q1 2025?

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