For the year ended December 31, 2025, net losses totaled $29,000, compared to net losses of $112,000 for the year ended December 31, 2024. Diluted earnings (loss) per share were $(0.01) for 2025, compared to $(0.04) for 2024.
Results for the fourth quarter and full year 2025 reflect a period of strategic repositioning, operational restructuring, and targeted investments designed to improve long-term profitability and shareholder value. During 2025, the Company executed a series of initiatives to strengthen its balance sheet, enhance revenue-generating capabilities, improve operating efficiency, and reduce structural costs.
While certain strategic actions taken during the year, particularly in the fourth quarter, resulted in elevated non-recurring expenses that temporarily pressured earnings, management believes these investments should make a meaningful improvement to the Company's earnings capacity going forward. Earnings momentum improved during the second half of the year, and the Company enter 2026 with stronger liquidity, improving margin trends, disciplined credit performance, and a more scalable operating platform.
Management views 2025 as an inflection year, marking the transition from balance sheet stabilization to earnings improvement, and as the foundation for a multi-year balance sheet optimization strategy focused on disciplined growth and an improved mix of shorter-duration, higher-yielding assets. As this strategy progresses, management expects operating leverage and returns to improve beginning in 2026 and continuing over the medium term.
"2025 was a year of deliberate repositioning for our Company," said Mark C. Hanna, President and Chief Executive Officer. "We focused on strengthening our balance sheet, enhancing our funding profile, and investing in capabilities that position us for improved earnings performance as we move forward."
2025 Year and Fourth Quarter Highlights
Net interest margin expansion - Net interest margin improved during 2025 as the balance sheet continued to shift toward higher-yielding loans and away from lower-yielding cash and securities, reflecting disciplined balance sheet management in a competitive rate environment. Net interest margin increased from 2.98% for the fourth quarter of 2024 to 3.14% for the fourth quarter of 2025, representing a year-over-year improvement of 16 basis points. On a fully tax-equivalent basis, net interest margin was 3.21% for the fourth quarter of 2025 compared to 3.06% for the fourth quarter of 2024. Management believes additional margin expansion opportunities exist over time as loan growth continues to represent a greater proportion of earning assets.
Loan growth and relationship expansion - Total loans increased during 2025, driven primarily by commercial real estate and commercial and industrial lending, reflecting continued progress in attracting higher-value business relationships. Total loans increased from $205.2 million at December 31, 2024 to $231.2 million at December 31, 2025, an increase of $26.0 million or 12.7%, supported by expanded product capabilities and targeted commercial relationship development.
At December 31, 2025, the Bank's loan-to-deposit ratio was 69.6%, compared to 66.4% at December 31, 2024, and remained below industry peer averages. This reflects a balance sheet that continues to be conservatively positioned with a higher proportion of liquidity and investment securities. As the Bank continues to grow, management expects to deploy a greater share of funding into loans, reducing reliance on lower-yielding assets and creating an opportunity to improve net interest margin and overall profitability over time.
Strong deposit franchise and liquidity - Deposits remained stable and diversified throughout 2025, supporting strong on-balance-sheet liquidity. Total deposits were $332.4 million at December 31, 2025, compared to $309.2 million at December 31, 2024, an increase of 7.5% or $23.2 million.
Noninterest-bearing deposits totaled $104.2 million at December 31, 2025, representing 31% of total deposits, providing a low-cost funding base that supports margin stability and funding flexibility in a competitive rate environment. Management continues to view growth in operating and noninterest-bearing deposit relationships as a core strategic priority.
At December 31, 2025, wholesale funding remained modest, consisting of $10.2 million in brokered deposits and $4.0 million in FHLB advances, or 3.9% of total assets compared to $30.0 million in FHLB advances outstanding at December 31, 2024, or 8.4% of total assets. This reduction in wholesale funding strengthens the Bank's core funding profile and enhances the Bank's ability to support future loan growth and improve earning asset mix over time, while maintaining prudent funding diversification.
Solid asset quality - Asset quality metrics remained solid throughout 2025, reflecting continued focus on credit administration and risk management. Non-performing loans totaled 0.54% of total loans at December 31, 2025, compared to 0.18% at December 31, 2024. The allowance for credit losses was 1.17% of total loans at year-end 2025 and represented approximately 216% of non-performing loans, a level management believes remains prudent and conservative given portfolio composition, collateral coverage, and current economic conditions. In the fourth quarter of 2025, the Bank's provision for credit losses of $216,000 was primarily due to provisioning for $15.9 million of loan growth from $215.3 million at September 30, 2025 to $231.2 million at December 31, 2025.
Mortgage banking platform added - In August 2025, the Bank completed the acquisition of VA Wholesale Mortgage Incorporated("VAWM"), adding mortgage banking capabilities that expand product offerings and provide recurring fee-based income opportunities. Since the Bank's purchase, VAWM generated pre-tax income of $98,000, contributing to non-interest income growth and providing a foundation for expanded fee revenue in future periods.
Expanded products to attract higher-value customers - Over the past 18 months, the Bank introduced and enhanced several products aimed at attracting higher-dollar consumer and business relationships, including expanded ACH services, enhanced online and mobile banking capabilities, online wire services, mobile deposit capture, and reciprocal deposit solutions through IntraFi. These enhancements supported growth in operating accounts and strengthened the Bank's ability to compete for full-relationship business customers through year-end 2025.
Operating efficiency initiatives implemented - During 2025, the Company implemented an early retirement program and selective headcount reductions designed to align staffing levels with strategic priorities and improve operating leverage. Full-time equivalent employees decreased from 89 at December 31, 2024 to 69 at December 31, 2025, positioning the Bank to reallocate resources toward technology investments, revenue growth initiatives, and long-term operating efficiency. Certain severance and professional costs associated with these actions were incurred during 2025, while the full benefit of these initiatives is expected to be realized in future periods.
Leadership team strengthened - Over the past 18 months, the Company has continued to strengthen its executive management team. During 2025, Jeffrey Welch joined as Chief Credit Officer and Todd Capitani joined as Chief Financial Officer, bringing experience in growing and scaling community banks. Also, the Bank hired a new Director of Human Resources, Cathy Dombroski. In addition, the Bank recognized two strong performing executive team members with promotions, Jonathan Shearin, Chief Lending Officer was promoted to Senior Vice President, and Donna Smith, Director of Branch and Deposit Operations was promoted to Executive Vice President, further enhancing leadership continuity, institutional knowledge, and execution capabilities. With a solid foundation in place, management believes the organization is well positioned to transition from building the foundation to executing on the Bank's strategic growth initiatives.
Regulatory transition lowers future cost structure - During the fourth quarter of 2025, the Company completed its transition from the NASDAQ to the OTCQX® Best Market and deregistered from reporting obligations under the Securities Exchange Act of 1934. While this transition resulted in one-time professional and listing costs, management expects these actions to reduce ongoing annual compliance costs by approximately $200,000, improving operating leverage in future periods. Management believes the OTCQX provides a liquid and appropriate trading platform for a company of the Bank's size, aligning regulatory requirements with the Company's scale and allowing management to focus more fully on executing strategic initiatives and driving long-term performance.
Operating Results
Operating results during 2025 reflected improving core performance and the impact of strategic actions taken during the year. Net interest income benefited from continued net interest margin expansion, driven by loan growth, improved earning asset mix, and disciplined balance sheet management. Non-interest income increased during the year, supported by the acquisition of VA Wholesale Mortgage Incorporated ("VAWM"), which contributed positively to results following the acquisition.
Noninterest expense levels during 2025 included non-recurring items related to organizational restructuring, professional services, regulatory transition costs, and strategic investments in infrastructure and product capabilities. Management believes these actions position the Company for improved operating leverage, with expense levels expected to normalize as the benefits of these initiatives are realized over time.
Capital Position
Capital levels at December 31, 2025 remained well in excess of regulatory requirements, providing capacity to support near-term balance sheet growth. As the Company continues to execute its multi-year balance sheet optimization strategy, management intends growth to be funded primarily through core deposit expansion and balance sheet management, while remaining open to potential capital actions that could further support loan growth and improve returns over time.
"Throughout 2025, we focused on building the foundation necessary to grow assets, improve earnings, and create long-term value for our shareholders," said Mark C. Hanna, President and Chief Executive Officer. "While some of the actions we took resulted in short-term costs, we believe they materially improve our operating efficiency, revenue capabilities, leadership depth, and long-term earnings capacity. With a strong liquidity position, disciplined credit performance, and an expanded set of products and services, we believe the Company is well positioned as we enter 2026."
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 six 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
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements are often identified by words such as "anticipate," "believe," "expect," "intend," "plan," "may," "should," or similar expressions.
These statements are not guarantees of future performance and involve known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS - 5 QUARTERS
(dollars in thousands, except shares outstanding)
December 31,
September 30,
June 30,
March 31,
December 31,
2025
2025
2025
2025
2024
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
ASSETS
Cash and due from banks
$
1,777
$
2,359
$
1,677
$
1,792
$
2,012
Interest-bearing deposits in other financial institutions
3,728
9,868
10,991
21,884
22,452
Total Cash and Cash Equivalents
5,505
12,227
12,668
23,676
24,464
Investment securities available for sale, at fair value
103,469
104,141
104,566
106,623
107,949
Restricted equity securities, at cost
441
251
869
1,201
1,671
Loans
231,221
215,320
213,362
207,393
205,219
Less: Allowance for credit losses
(2,716
)
(2,568
)
(2,587
)
(2,689
)
(2,839
)
Loans, net
228,505
212,752
210,775
204,704
202,380
Premises and equipment, net
2,393
2,463
2,575
2,609
2,678
Bank owned life insurance
9,012
8,966
8,921
8,877
8,834
Deferred tax assets, net
7,524
7,475
8,102
8,088
8,548
Accrued interest receivable
1,288
1,340
1,206
1,243
1,345
Accrued taxes receivable
-
310
271
159
148
Prepaid expenses
400
434
386
474
471
Goodwill
317
317
-
-
-
Other assets
1,062
1,118
382
319
468
Total Assets
$
359,916
$
351,794
$
350,721
$
357,973
$
358,956
LIABILITIES
Noninterest-bearing deposits
$
104,158
$
107,368
$
107,027
$
104,487
$
100,747
Interest-bearing deposits
228,224
221,701
210,289
212,770
208,442
Total Deposits
332,382
329,069
317,316
317,257
309,189
Short-term borrowings
4,000
-
13,000
20,000
30,000
Defined pension liability
342
341
340
338
330
Accrued expenses and other liabilities
1,767
1,655
1,132
1,197
1,620
Total Liabilities
338,491
331,065
331,788
338,792
341,139
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares
2,920
2,920
2,901
2,901
2,901
Shares issued and outstanding
2,919,695
2,919,695
2,900,681
2,900,681
2,900,681
Additional paid-in capital
11,119
11,119
11,037
11,037
11,037
Deferred Compensation, Restricted Stock
(81
)
(84
)
-
-
-
Retained earnings
22,852
22,948
22,823
23,035
22,882
Accumulated other comprehensive loss ("AOCL")
(15,385
)
(16,174
)
(17,828
)
(17,792
)
(19,003
)
Total Stockholders' Equity
21,425
20,729
18,933
19,181
17,817
Total Liabilities and Stockholders' Equity
$
359,916
$
351,794
$
350,721
$
357,973
$
358,956
GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF (LOSS) INCOME - 5 QUARTERS
(dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
2025
2025
2025
2025
2024
Interest income
Interest and fees on loans
$
3,181
$
3,126
$
2,909
$
2,709
$
2,851
Interest and dividends on securities
702
719
732
745
773
Interest on deposits with banks and federal funds sold
82
92
236
175
332
Total Interest Income
3,965
3,937
3,877
3,629
3,956
Interest expense
Interest on deposits
1,132
1,044
942
840
818
Interest on short-term borrowings
25
62
199
225
375
Total Interest Expense
1,157
1,106
1,141
1,065
1,193
Net Interest Income
2,808
2,831
2,736
2,564
2,763
Provision (release) of credit loss allowance
216
44
79
(621
)
58
Net interest income after credit loss (release) provision
2,592
2,787
2,657
3,185
2,705
Noninterest income
Service charges on deposit accounts
41
37
34
31
42
Mortgage Commissions
372
191
-
-
-
Other fees and commissions
