Core Insights - Glen Burnie Bancorp reported a net loss of $39,000 for Q4 2024, compared to a net income of $167,000 in Q4 2023, indicating a significant decline in profitability [1][14] - For the full year 2024, the company experienced a net loss of $112,000, a stark contrast to the net income of $1.4 million in 2023, reflecting ongoing challenges in the interest rate environment [1][23] - The bank's total assets increased to $358.9 million as of December 31, 2024, up from $351.8 million a year earlier, showing modest growth despite financial difficulties [1][10] Financial Performance - Net interest income decreased by $1.2 million, or 9.84%, to $10.9 million for the year ended December 31, 2024, primarily due to a $3.1 million rise in interest expenses [3][24] - Total interest income rose by $1.9 million to $15.2 million for the same period, driven by higher interest and fees on loans [4][30] - The net interest margin for the year was 2.98%, down from 3.31% in 2023, reflecting increased costs and competitive pressures [25][42] Asset and Liability Management - Loans increased by $28.9 million, or 16.40%, to $205.2 million as of December 31, 2024, indicating growth in the lending portfolio [10][28] - Total deposits rose by $9.1 million, or 3.04%, to $309.2 million, with interest-bearing deposits increasing significantly [11][42] - The cost of funds increased to 1.38% for Q4 2024, compared to 0.64% in Q4 2023, primarily due to higher costs associated with money market deposits [7][18] Capital and Equity - The book value per share decreased to $6.14 as of December 31, 2024, down from $6.70 a year earlier, attributed to unrealized losses on available-for-sale securities [8][12] - Total stockholders' equity was $17.8 million, representing 4.96% of total assets, a decline from 5.49% in 2023 [12][41] - The bank maintained a strong capital position with a total risk-based capital ratio of 16.40% as of December 31, 2024, down from 18.40% in 2023 [5][43] Management Commentary - The CEO acknowledged the disappointing financial performance in 2024, citing challenges in the interest rate environment and the need to focus on strategic opportunities for long-term growth [2][6] - The decision to suspend quarterly cash dividends was made to reinvest in the bank's infrastructure and better serve client needs [2][6] - Management remains committed to navigating uncertainties while focusing on organic loan and deposit growth [2][5]
Glen Burnie Bancorp Announces Fourth Quarter and Full Year 2024 Results