Glen Burnie Bancorp(GLBZ) - 2025 Q1 - Quarterly Results

Press Release Overview Glen Burnie Bancorp reported significantly increased Q1 2025 net income and total assets, with the CEO emphasizing disciplined lending and strong asset quality Announcement and Key Figures Glen Burnie Bancorp reported a significant increase in net income for Q1 2025, reaching $153,000 or $0.05 per share, compared to $3,000 or $0 per share in Q1 2024. Total assets stood at $358.0 million as of March 31, 2025 | Metric | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | | Net Income | $153,000 | $3,000 | | Basic and Diluted Common Share EPS | $0.05 | $0 | | Total Assets (as of March 31, 2025) | $358.0 million | - | CEO's Strategic Commentary CEO Mark C. Hanna emphasized the company's focus on growing loans and deposits to improve revenues, margins, and profitability, while maintaining disciplined lending practices. He highlighted strong asset quality with minimal non-performing assets and a robust allowance for credit losses - The Company continues to pursue growing loans and deposits to improve revenues, margins and, ultimately, profitability, while emphasizing disciplined lending practices and focusing on new client relationships, safety, and margin[3] | Metric | March 31, 2025 | | :-------------------------- | :------------- | | Allowance for Credit Losses | $2.7 million | | % of Total Loans | 1.30% | | Non-performing Assets | Minimal levels | | Financial Strength | Strong, sound, and secure (capital levels, asset quality, diversified deposit base, liquidity sources) | Highlights for the First Three Months of 2025 The company experienced a slight decrease in net interest income but improved returns on assets and equity, maintaining strong liquidity and capital for future growth Financial Performance Highlights Net interest income slightly decreased by $8,000 (0.31%) to $2.56 million, driven by increased interest expense on deposits offset by higher interest income from loans. Return on average assets and equity significantly improved, primarily due to a release of provision for credit allowance | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net Interest Income | $2.56 million | $2.57 million | -$8,000 (-0.31%) | | Interest Expense | Increased $233,000 | - | +$233,000 | | Interest Income | Increased $224,000 | - | +$224,000 | | Return on Average Assets | 0.17% | 0% | +0.17 pp | | Return on Average Equity | 3.22% | 0.06% | +3.16 pp | - The increase in interest on deposits was driven by increased deposit balances in money market products. The increase in interest and fees on loans was driven by a $30.0 million higher average balance and 0.27% higher yield on loan balances[4] - Higher return on average assets and average equity was primarily driven by the release of provision for credit allowance on loans and unfunded commitments[6] Liquidity and Capital Outlook The Company maintains strong liquidity through managed cash, borrowing lines with FHLB of Atlanta, the Federal Reserve, correspondent banks, and a diversified bond portfolio. This robust liquidity and capital position is expected to support future growth - The Company expects its strong liquidity and capital positions to provide ample capacity for future growth[5] - 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[7] Balance Sheet Review Total assets slightly decreased while loans and deposits grew, stockholders' equity increased due to reduced unrealized losses, and asset quality remained sound despite a rise in nonperforming assets Assets Total assets slightly decreased to $358.0 million from $359.0 million QoQ. Loans, net of deferred fees and costs, increased by $2.2 million (1.06%) QoQ and 16.52% YoY, reaching $207.4 million. Investment securities saw a minor decrease | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | | Total Assets | $358.0 million | $359.0 million | -$1.0 million (-0.27%) | | Cash and Cash Equivalents | Decreased $788,000 | - | -3.22% | | Investment Securities | $106.6 million | $107.9 million | -$1.3 million (-1.23%) | | Loans, Net of Deferred Fees & Costs | $207.4 million | $205.2 million | +$2.2 million (+1.06%) | | Loans (YoY) | $207.4 million | $178.0 million (March 31, 2024) | +16.52% | | Average Earning-Asset Balances | $356.2 million | $362.0 million (prior-year Q1) | Slightly declined | Liabilities and Deposits Total deposits increased by $8.1 million (2.61%) QoQ to $317.3 million, with both noninterest-bearing and interest-bearing deposits contributing to the growth. Total borrowings decreased significantly by $10.0 million (33.33%) QoQ to $20.0 million | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------- | :------------- | :---------------- | :----------- | | Total Deposits | $317.3 million | $309.2 million | +$8.1 million (+2.61%) | | Noninterest-Bearing Deposits | $104.5 million | $100.7 million | +$3.7 million (+3.71%) | | Interest-Bearing Deposits | $212.8 million | $208.4 million | +$4.4 million (+2.08%) | | Total Borrowings | $20.0 million | $30.0 million | -$10.0 million (-33.33%) | Stockholders' Equity Total stockholders' equity increased to $19.2 million (5.36% of total assets) from $17.8 million (4.96%) QoQ, resulting in a book value of $6.61 per common share. This increase was primarily driven by a decline in unrealized losses on available-for-sale securities due to decreasing market interest rates | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | | Total Stockholders' Equity | $19.2 million | $17.8 million | +$1.4 million | | % of Total Assets | 5.36% | 4.96% | +0.40 pp | | Book Value Per Common Share | $6.61 | $6.14 | +$0.47 | | Unrealized Losses (net of taxes) on AFS Securities | $17.8 million | $19.0 million | -$1.2 million | - The decrease in unrealized losses on available-for-sale investment securities primarily resulted from decreasing market interest rates during Q1 2025, which increased the fair value of these securities[10] Asset Quality Asset quality remained sound, with nonperforming assets representing 0.32% of total assets, an increase from 0.10% QoQ. The allowance for credit losses on loans decreased to $2.7 million (1.30% of total loans), while the allowance for unfunded commitments significantly decreased due to lower loss rates | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | | Nonperforming Assets (% of Total Assets) | 0.32% | 0.10% | +0.22 pp | | Allowance for Credit Losses on Loans | $2.7 million | $2.8 million | -$0.1 million | | % of Total Loans | 1.30% | 1.38% | -0.08 pp | | Allowance for Credit Losses for Unfunded Commitments | $110,000 | $584,000 | -$474,000 | - The $474,000 decrease in allowance for credit losses for unfunded commitments was primarily driven by the utilization of 1.33% lower loss rates during Q1 2025 compared to Q4 2024[11] Review of Financial Results Net income significantly improved due to credit loss allowance decreases, despite a slight dip in net interest income, with ongoing efforts to reduce noninterest expenses Net Income Drivers Net income for Q1 2025 increased to $153,000 from $3,000 in Q1 2024. This improvement was primarily due to a $315,000 decrease in the allowance for credit loss and a $474,000 decrease in the allowance for unfunded commitments, partially offset by increased salary and employee benefits, legal fees, and a decreased income tax benefit | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Net Income | $153,000 | $3,000 | +$150,000 | | Decrease in Allowance for Credit Loss | $315,000 | - | +$315,000 | | Decrease in Allowance for Unfunded Commitments | $474,000 | - | +$474,000 | | Increase in Salary and Employee Benefits | $209,000 | - | -$209,000 | | Increase in Legal, Accounting, and Other Professional Fees | $129,000 | - | -$129,000 | | Decrease in Income Tax Benefit | $203,000 | - | -$203,000 | Net Interest Income and Margin Net interest income slightly decreased by $8,000 to $2.56 million. However, net interest margin increased by 0.06% to 2.92%, driven by higher loan yields (up 0.28% to 5.34%) despite an increase in the cost of interest-bearing liabilities (up 0.38% to 1.89%) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net Interest Income | $2.56 million | $2.57 million | -$8,000 | | Net Interest Margin | 2.92% | 2.86% | +0.06 pp | | Loan Yields | 5.34% | 5.06% | +0.28 pp | | Cost of Interest-Bearing Liabilities | 1.89% | 1.51% | +0.38 pp | | Average Balance of Interest-Earning Assets | Decreased $5.8 million | - | - | | Yield on Interest-Earning Assets | 4.13% | 3.78% | +0.35 pp | | Average Balance of Interest-Bearing Funds | Increased $7.6 million | - | - | | Average Balance of Noninterest-Bearing Funds | Decreased $12.9 million | - | - | | Cost of Funds | Increased 0.31% | - | - | Noninterest Income and Expenses Noninterest income decreased to $205,000 from $229,000 YoY. Total noninterest expenses decreased by $69,000 to $2.8 million, primarily due to a significant decrease in the credit allowance for unfunded commitments, partially offset by higher salary and employee benefits and legal fees. The company is implementing measures like branch closures and an early retirement program to reduce future non-interest expenses | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Noninterest Income | $205,000 | $229,000 | -$24,000 | | Total Noninterest Expenses | $2.8 million | $2.9 million | -$69,000 | | Decrease in Credit Allowance for Unfunded Commitments | $474,000 | - | +$474,000 | | Increase in Salary and Employee Benefits | $209,000 | - | -$209,000 | | Increase in Legal, Accounting, and Other Professional Fees | $129,000 | - | -$129,000 | - The Company is taking steps to reduce non-interest expenses in future periods, including the January 2025 closure of its Linthicum branch office, the planned closing of its Severna Park branch office in May 2025, and the recent announcement of an early retirement program[13] Income Tax Benefit The income tax benefit for Q1 2025 was $29,000, a decrease from $232,000 in the prior-year period. The prior year's benefit included $87,000 associated with amended Maryland tax returns | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Income Tax Benefit | $29,000 | $232,000 | -$203,000 | | Q1 2024 Benefit included | - | $87,000 (amended MD tax returns) | - | Company Information Glen Burnie Bancorp is a Maryland-based community bank offering commercial and retail services, with the report containing forward-looking statements and contact information About Glen Burnie Bancorp Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland, established in 1949. Its subsidiary, The Bank of Glen Burnie, operates seven branch offices in Anne Arundel County, providing commercial and retail banking services, including demand and time deposits, and various loan types - 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[21] - The Bank is engaged in commercial and retail banking, including acceptance of demand and time deposits, and origination of loans to individuals, associations, partnerships, and corporations. Real estate financing includes residential first and second mortgage loans, home equity lines of credit, and commercial mortgage loans. The Bank also originates automobile loans[21] Forward-Looking Statements The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections. These statements are not guarantees of future performance, and readers are advised to consult SEC filings for a complete discussion of risk factors - Statements not historical financial information may be forward-looking statements, subject to risks and uncertainties that could cause actual results to differ materially from anticipated or projected results[22] - These statements are not guarantees of future performance and may not prove true. For a more complete discussion of risk factors, refer to the Company's reports filed with the Securities and Exchange Commission[22] Contact Information For further information, inquiries can be directed to Jeffrey D. Harris, Chief Financial Officer, via phone or email - Contact: Jeffrey D. Harris, Chief Financial Officer, 410-768-8883, jdharris@bogb.net, 106 Padfield Blvd, Glen Burnie, MD 21061[23] Consolidated Financial Statements This section presents the consolidated balance sheets, statements of income, changes in stockholders' equity, and selected financial data for various periods Consolidated Balance Sheets This section presents the consolidated balance sheets for Glen Burnie Bancorp and its subsidiary as of March 31, 2025, March 31, 2024, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :------------------------------------------ | :------------- | :------------- | :---------------- | | 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 | 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 | Consolidated Statements of (Loss) Income This section provides the consolidated statements of (loss) income for the three-month periods ended March 31, 2025, and 2024, detailing interest income, interest expense, net interest income, credit loss allowance, noninterest income, noninterest expenses, and net income | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 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 | $- | Consolidated Statement of Changes in Stockholders' Equity This section details the changes in stockholders' equity for Glen Burnie Bancorp and its subsidiary for the three months ended March 31, 2025, and 2024, including common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive loss | (dollars in thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' 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 | | 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 | Selected Financial Data This section provides a comprehensive overview of selected financial data, including key balance sheet items, average balances, performance ratios (ROAA, ROAE, NIM), asset quality ratios, and capital ratios for various periods | | March 31, 2025 | December 31, 2024 | March 31, 2024 | Year Ended December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | :------------- | :--------------------------- | | 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% |