Financial Performance - Net interest income decreased to $10.9 million in 2024 from $12.1 million in 2023, a decline of 9.9%[132] - The consolidated net loss for 2024 was $0.1 million, compared to a net income of $1.4 million in 2023, marking a decrease of $1.5 million[133] - Annualized return on average assets was (0.03)% in 2024, down from 0.40% in 2023[134] - The equity to asset ratio decreased to 5.0% in 2024 from 5.5% in 2023[134] - Net interest margin fell to 2.98% in 2024 from 3.31% in 2023[138] - The dividend payout ratio was -750% in 2024, a significant change from 80% in 2023[134] Interest Income and Expense - Total interest income increased by 14.1% from $13.3 million in 2023 to $15.2 million in 2024, primarily due to a $1.9 million increase in interest and fees on loans[137] - Interest expense surged by 255.3% from $1.2 million in 2023 to $4.3 million in 2024, driven by a $1.1 million increase in interest on short-term borrowings and a $2.0 million increase in interest on deposits[138] Credit Losses and Allowances - The provision for credit loss allowance increased by $748,000 in 2024 compared to 2023[133] - The allowance for credit losses - loans was $2.8 million, or 1.4% of total loans at December 31, 2024, compared to $2.2 million, or 1.2% of total loans at December 31, 2023[150] - The Company recognized a credit loss provision - loans of $0.8 million for the year ended December 31, 2024, compared to $0.1 million for the year ended December 31, 2023[150] - The allowance for credit losses was $2.8 million at December 31, 2024, compared to $2.2 million in 2023[166] - The allowance for credit losses increased by $682,000 during 2024, reflecting a provision for credit loss of $844,000[182] Loan and Deposit Growth - Total gross loans increased by $1.9 million, with a notable rise in loans secured by real estate contributing to this growth[140] - Total deposits increased by $9.1 million, or 3.0%, to $309.2 million at the end of 2024 compared to $300.1 million at the end of 2023[155] - Loans, net at December 31, 2024, were $202.4 million compared to $174.2 million at December 31, 2023, a decrease of $28.2 million or 16.2%[155] - Nonperforming loans to gross loans ratio improved to 0.2% in 2024 from 0.3% in 2023[174] - Nonperforming assets decreased to $360,000 at December 31, 2024, from $527,000 at December 31, 2023, representing 0.10% of total assets compared to 0.15% in the prior year[174] Asset Management - Total assets increased by $7.1 million, or 2.0%, to $359.0 million at December 31, 2024, compared to $351.8 million at December 31, 2023[154] - Cash and cash equivalents increased by $9.2 million primarily due to a $9.1 million increase in deposit balances[156] - Investment securities decreased by $31.5 million, or 22.6%, to $107.9 million compared to year-end 2023[155] - The Company's investment securities portfolio decreased by $31.5 million, or 22.58%, to $107.9 million at December 31, 2024, from $139.4 million at December 31, 2023[159] Capital and Regulatory Ratios - Stockholders' equity decreased to $17.8 million at December 31, 2024, a decline of $1.5 million or 7.8% compared to $19.3 million in 2023[193] - Common Equity Tier 1 Capital ratio was 15.15% as of December 31, 2024, significantly above the minimum requirement of 4.50%[202] - Total Risk-Based Capital ratio was 16.40% at December 31, 2024, exceeding the required minimum of 8.00%[202] - The Bank's leverage ratio was 9.97% at December 31, 2024, well above the minimum requirement of 4.00%[202] Interest Rate Risk Management - The net interest income simulation analysis indicates that the Bank is in an asset sensitive position in all falling rate scenarios and in a liability sensitive position in all rising rate scenarios[227] - The economic value of equity (EVE) at December 31, 2024 showed a decrease of 11% under +100 bp shock, slightly outside the policy limit of -10%[234] - The Bank's interest rate risk management policy establishes limits on risk, measured as the percentage change in net interest income and the fair value of equity capital due to hypothetical changes in U.S. Treasury interest rates[222] Credit Availability and Commitments - The Bank's total credit availability from the Federal Home Loan Bank was $92.1 million, with $62.1 million available to be drawn as of December 31, 2024[209] - The Bank's total commitments to extend credit and unused lines of credit totaled $31.6 million at December 31, 2024[207] - As of December 31, 2024, the Bank has accrued $584,000 as a reserve for credit losses on unfunded commitments, an increase of $111,000 from $473,000 as of December 31, 2023[218]
Glen Burnie Bancorp(GLBZ) - 2024 Q4 - Annual Report