Glen Burnie Bancorp(US:GLBZ)2025-11-14 19:41Financial Performance - For the three-month period ended September 30, 2025, the company reported net income of $125,000, a slight decrease from $129,000 in the same period of 2024[120]. - Comprehensive income for Q3 2025 was $1.8 million, down from $3.8 million in Q3 2024, due to a decrease in unrealized losses on securities[129]. - The Company reported a net income of $66,000 for the nine-month period ended September 30, 2025[178]. Income and Expenses - Net interest income increased by $10,000, or 0.4%, to $2.8 million for the three months ended September 30, 2025, compared to the same period in 2024[124]. - Non-interest income rose by $217,000, primarily due to mortgage fees of $192,000 from the recently acquired VAWM[120]. - Total non-interest expenses increased by $280,000, with $139,000 attributed to increased salary and employee benefits from VAWM[120]. - Non-interest income increased to $571,000 in Q3 2025, up $217,000 from $354,000 in Q3 2024, primarily due to mortgage commissions and increased fees[128]. - Non-interest expenses rose by $280,000 to $3.3 million in Q3 2025 compared to $3.0 million in Q3 2024, driven by higher salaries and professional fees[129]. - Non-interest income rose by $171,000 to $996,000 for the nine months ended September 30, 2025, compared to $825,000 in the same period of 2024[139]. - Non-interest expense increased by $1.1 million to $9.8 million for the nine months ended September 30, 2025, compared to $8.6 million in the prior year[140]. Loans and Interest - Total average loans increased by $12.9 million, resulting in $218,000 more in interest income[124]. - The net interest margin improved to 3.24% for the three months ended September 30, 2025, up from 3.14% in the same period of 2024[124]. - Net interest income for the nine months ended September 30, 2025, was $8.1 million, a decrease of $48,000 from $8.2 million in the same period of 2024[133]. - The net interest margin improved to 3.12% for the nine months ended September 30, 2025, compared to 3.06% for the same period in 2024[133]. - Total average loans increased by $21.7 million, contributing $1.1 million more in interest income[135]. - Loans represented 59% of average earning assets in the nine months ended September 30, 2025, up from 51% in the same period of 2024[136]. Assets and Deposits - Total assets decreased by $7.2 million to $351.8 million as of September 30, 2025, compared to December 31, 2024[141]. - Total deposits increased by $19.9 million or 6.4% during the first nine months of 2025[144]. - Total deposits reached $329,069,000 on September 30, 2025, a 6.43% increase from $309,189,000 on December 31, 2024[153]. - Noninterest-bearing deposits grew by 6.57% to $107,368,000, while interest-bearing deposits increased by 6.36% to $221,701,000[153]. - Cash and cash equivalents decreased by 50.0% to $12.2 million as of September 30, 2025, down from $24.5 million at December 31, 2024[175]. Credit Losses and Allowances - For Q3 2025, the provision for credit loss allowance was $44,000, a decrease from $105,000 in Q3 2024, reflecting a $74,000 provision for loans and a $30,000 release for unfunded commitments[127]. - The allowance for credit losses was $2.57 million as of September 30, 2025, with a release of $498,000 during the nine months ended September 30, 2025[138]. - The allowance for credit losses methodology changed significantly with the adoption of ASC 326, moving from an "incurred loss" approach to an "expected loss" approach[187]. Capital and Ratios - Stockholder's equity rose by $2.91 million or 16.3% to $20.7 million as of September 30, 2025[144]. - The Bank's total regulatory capital to risk-weighted assets was 15.96% on September 30, 2025, compared to 16.40% on December 31, 2024[147]. - The Bank's Tier 1 leverage ratio was 9.67% and the total risk-based capital ratio was 15.96% as of September 30, 2025, indicating full compliance with capital adequacy guidelines[184]. - The common equity Tier 1 capital ratio was 14.82% at September 30, 2025, exceeding the minimum requirement of 4.5%[182]. - The total capital ratio was 15.96% as of September 30, 2025, compared to 16.40% as of December 31, 2024[185]. Internal Controls and Governance - The Company has implemented numerous controls to remediate a material weakness surrounding the CECL control gap, including hiring an experienced Chief Credit Officer[198]. - The Company did not design and maintain effective disclosure controls and procedures due to identified material weaknesses[196]. - The Company has not identified any material misstatements in its financial statements despite the noted weaknesses in internal controls[197]. Market and Economic Conditions - The simulation analysis indicated a modest asset-sensitive position in falling rate scenarios but a liability-sensitive position in rising rate shock scenarios as of September 30, 2025[164]. - Estimated changes in net interest income at risk were within policy limits, showing a decrease of 1% in a -200 bp scenario as of September 30, 2025[168]. - The economic value of equity increased by 10% in a -200 bp scenario as of September 30, 2025, compared to 6% on September 30, 2024[171]. Miscellaneous - No financial performance summary or user data was provided in the documents[212]. - No future outlook or performance guidance was mentioned in the documents[212]. - No information regarding new products or technology development was found in the documents[212]. - No details on market expansion or acquisitions were included in the documents[212]. - No new strategies were outlined in the documents[212].