"The first quarter reflected continued execution of the strategy we outlined in early 2024," said Mark C. Hanna, President and Chief Executive Officer. "We grew loans and deposits, improved net interest income, strengthened liquidity, and lowered expenses from the prior quarter. While reported margin benefited from certain one-time loan interest items, we are encouraged by the early progress we are seeing in 2026 and remain focused on disciplined growth, prudent liquidity management, and improved operating leverage."
First Quarter 2026 Highlights
Return to profitability. Net income was $84 thousand for the first quarter of 2026, compared to a net loss of $95 thousand for the fourth quarter of 2025. Diluted earnings per common share were $0.03 for the first quarter of 2026, compared to $(0.03) for the prior quarter.
Improved net interest income and margin. Net interest income increased to $3.0 million for the first quarter of 2026, compared to $2.8 million for the fourth quarter of 2025 and $2.6 million for the first quarter of 2025. Net interest margin increased to 3.26% for the first quarter of 2026, compared to 3.14% for the fourth quarter of 2025 and 2.92% for the first quarter of 2025.
Reported net interest income and margin benefited from $167 thousand of one-time loan interest income, consisting of an $88 thousand positive adjustment on a purchased loan pool and $79 thousand of interest collected on a nonaccrual loan that repaid in full. Excluding these one-time items, net interest margin would have been approximately 3.08% for the quarter.
Continued loan growth. Total loans increased $11.3 million, or 4.9% (19.6% annualized), to $242.6 million at March 31, 2026, compared to $231.2 million at December 31, 2025. Loan growth was primarily attributable to purchased consumer loans and commercial and industrial loans, partially offset by a decline in residential mortgage balances. Compared to March 31, 2025, total loans increased $35.2 million, or 17.0%.
Annapolis market expansion. During the first quarter, the Bank announced the April opening of a new Loan Production Office ("LPO") in Annapolis, Maryland, located at 2525 Riva Road, Suite 141. The Annapolis LPO is expected to expand the Bank's footprint into southern Anne Arundel County and support commercial lending and deposit growth among small and medium-sized businesses in the market. In connection with the expansion, the Bank added John Camden as Vice President and Annapolis Market Executive to lead business development and relationship-building efforts in the Annapolis market.
Deposit growth and funding flexibility. Total deposits increased $25.2 million, or 7.6% (30.3% annualized), to $357.5 million at March 31, 2026, compared to $332.4 million at December 31, 2025. Deposit growth included increases in noninterest-bearing deposits, money market deposits, retail time deposits, and brokered deposits.
Customer deposits increased $16.3 million, or 5.1%, to $338.4 million at March 31, 2026, compared to $322.2 million at December 31, 2025. Brokered deposits increased $8.9 million to $19.1 million at March 31, 2026. The Bank repaid its remaining $4.0 million of FHLB advances during the quarter. Total wholesale funding, consisting of brokered deposits and borrowings, was $19.1 million, or approximately 5.0% of total assets, at March 31, 2026, compared to $14.2 million, or approximately 4.0% of total assets, at December 31, 2025. Management views wholesale funding as a supplemental funding source that may be used prudently to support balance sheet optimization and attractive loan growth opportunities.
Noninterest-bearing deposits totaled $109.6 million at March 31, 2026, representing approximately 31% of total deposits and continuing to provide a meaningful low-cost funding base.
Strong liquidity position. At March 31, 2026, liquid assets totaled approximately $118.1 million, or 31% of total assets. In addition, the Bank maintained approximately $100.4 million of available borrowing capacity through secured and unsecured lines of credit, including capacity supported by collateral from the investment securities portfolio. These resources provide significant funding flexibility, although certain borrowing capacity is collateral-dependent and should be evaluated together with the Bank's available securities and other liquid assets.
Lower noninterest expense. Noninterest expense decreased to $3.3 million for the first quarter of 2026, compared to $3.5 million for the fourth quarter of 2025. The decrease primarily reflected lower professional fees, including reduced use of outsourced finance and accounting consultants and lower consulting costs related to the Fiserv contract renewal. Management believes the first quarter reflects early benefits from the operating efficiency initiatives implemented during 2025.
Noninterest income normalized from the prior quarter. Noninterest income was $415 thousand for the first quarter of 2026, compared to $666 thousand for the fourth quarter of 2025 and $206 thousand for the first quarter of 2025. The linked quarter decrease was primarily due to lower mortgage commission income from VA Wholesale Mortgage and lower interchange fees. The Bank's interchange fees have historically increased in the third and fourth quarters related to key customer event activity. The year-over-year increase reflected the addition of mortgage banking income following the Bank's 2025 acquisition of VA Wholesale Mortgage.
Solid asset quality. Nonperforming loans totaled $662 thousand, or 0.27% of total loans, at March 31, 2026, compared to $1.3 million, or 0.54% of total loans, at December 31, 2025. The allowance for credit losses was $2.8 million, or 1.15% of total loans, at March 31, 2026, and represented approximately 422% of nonperforming loans.
Strong regulatory capital. The Bank's regulatory capital ratios remained well above regulatory minimums at March 31, 2026. The Bank's Common Equity Tier 1 Capital Ratio and Tier 1 Risk-Based Capital Ratio were 13.16%, and its Total Risk-Based Capital Ratio was 14.25%.
Operating Results
Net income improved during the first quarter of 2026 as higher net interest income and lower noninterest expense more than offset lower noninterest income and higher income tax expense. Net income was $84 thousand for the first quarter of 2026, compared to a net loss of $95 thousand for the fourth quarter of 2025.
Net interest income increased during the first quarter of 2026 as loan growth and higher earning asset yields more than offset higher deposit costs. Interest and fees on loans increased compared to the fourth quarter of 2025 due to higher average loan balances and the one-time loan interest items discussed above.
The yield on earning assets increased to 4.69% for the first quarter of 2026, compared to 4.44% for the fourth quarter of 2025. The cost of funds increased to 1.52% for the first quarter of 2026, compared to 1.39% for the fourth quarter of 2025, reflecting growth in interest-bearing deposits and higher costs on certain funding categories. The Company continues to focus on improving earning asset mix while maintaining prudent liquidity and funding flexibility.
Noninterest income declined from the prior quarter, primarily due to lower mortgage commission income from VA Wholesale Mortgage and seasonally lower card services interchange revenue. Noninterest expense declined from the prior quarter, reflecting early progress from cost structure and operating efficiency initiatives completed during 2025. Management continues to focus on expense discipline while investing in revenue-generating activities, product capabilities, technology, and customer-facing services.
Balance Sheet and Funding
Total assets increased to $380.5 million at March 31, 2026, compared to $359.9 million at December 31, 2025. The increase was primarily due to higher cash balances and loan growth, supported by deposit growth during the quarter.
Total loans increased to $242.6 million at March 31, 2026, compared to $231.2 million at December 31, 2025. The loan-to-deposit ratio was 67.8% at March 31, 2026, compared to 69.6% at December 31, 2025, reflecting continued liquidity and balance sheet flexibility.
Total deposits were $357.5 million at March 31, 2026, compared to $332.4 million at December 31, 2025. Customer deposits represented approximately 94.7% of total deposits at quarter-end. Wholesale funding, consisting of brokered deposits and borrowings, represented approximately 5.3% of total deposits and borrowings and 5.0% of total assets.
The Bank repaid its remaining FHLB advances during the quarter, reducing borrowings to zero at March 31, 2026, compared to $4.0 million at December 31, 2025 and $20.0 million at March 31, 2025. Management believes the Bank's funding position remains flexible, with a strong base of customer deposits, a meaningful level of noninterest-bearing deposits, modest wholesale funding, and significant available liquidity. While customer deposits remain the Bank's primary funding source, management may opportunistically use wholesale funding, including brokered deposits and secured borrowings, to support prudent loan growth, manage liquidity, and improve earning asset mix when pricing and market conditions are favorable.
Capital Position
Stockholders' equity totaled $21.0 million at March 31, 2026, compared to $21.4 million at December 31, 2025. The change was primarily affected by changes in accumulated other comprehensive loss associated with the market value of available-for-sale securities.
The Bank's capital levels remain well above regulatory minimums and continue to provide capacity to support prudent balance sheet growth. Management intends to continue executing its balance sheet optimization strategy with a focus on disciplined loan growth, funding stability, liquidity management, expense control, and improved long-term profitability.
Results for the first quarter of 2026 reflected early progress from the Company's 2025 strategic repositioning efforts. During the quarter, the Company increased loans and deposits, improved net interest income, repaid its remaining FHLB advances, reduced noninterest expense, and maintained solid asset quality and liquidity.
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)
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
(unaudited)
(audited)
(unaudited)
(unaudited)
(unaudited)
ASSETS
Cash and due from banks
$
1,714
$
1,777
$
2,359
$
1,677
$
1,792
Interest-bearing deposits in other financial institutions
13,340
3,728
9,868
10,991
21,884
Total Cash and Cash Equivalents
15,054
5,505
12,227
12,668
23,676
Investment securities available for sale, at fair value
103,040
103,469
104,141
104,566
106,623
Restricted equity securities, at cost
252
441
251
869
1,201
Loans
242,568
231,221
215,320
213,362
207,393
Less: Allowance for credit losses
(2,792
)
(2,716
)
(2,568
)
(2,587
)
(2,689
)
Loans, net
239,776
228,505
212,752
210,775
204,704
Premises and equipment, net
2,315
2,393
2,463
2,575
2,609
Bank owned life insurance
9,055
9,012
8,966
8,921
8,877
Deferred tax assets, net
7,737
7,524
7,475
8,102
8,088
Accrued interest receivable
1,458
1,288
1,340
1,206
1,243
Accrued taxes receivable
19
-
310
271
159
Prepaid expenses
523
400
434
386
474
Goodwill
317
317
317
-
-
Other assets
995
1,062
1,118
382
319
Total Assets
$
380,541
$
359,916
$
351,794
$
350,721
$
357,973
LIABILITIES
Noninterest-bearing deposits
$
109,596
$
104,158
$
107,368
$
107,027
$
104,487
Interest-bearing deposits
247,938
228,224
221,701
210,289
212,770
Total Deposits
357,534
332,382
329,069
317,316
317,257
Short-term borrowings
-
4,000
-
13,000
20,000
Defined pension liability
340
342
341
340
338
Accrued expenses and other liabilities
1,716
1,767
1,655
1,132
1,197
Total Liabilities
359,590
338,491
331,065
331,788
338,792
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares
2,920
2,920
2,920
2,901
2,901
Shares issued and outstanding
2,919,695
2,919,695
2,919,695
2,900,681
2,900,681
Additional paid-in capital
11,119
11,119
11,119
11,037
11,037
Deferred Compensation, Restricted Stock
(72
)
(81
)
(84
)
-
-
Retained earnings
22,930
22,852
22,948
22,823
23,035
Accumulated other comprehensive loss ("AOCL")
(15,946
)
(15,385
)
(16,174
)
(17,828
)
(17,792
)
Total Stockholders' Equity
20,951
21,425
20,729
18,933
19,181
Total Liabilities and Stockholders' Equity
$
380,541
$
359,916
$
351,794
$
350,721
$
357,973
GLEN BURNIE BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF (LOSS) INCOME - 5 QUARTERS
(dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Interest income
Interest and fees on loans
$
3,527
$
3,181
$
3,126
$
2,909
$
2,709
Interest and dividends on securities
686
702
719
732
745
Interest on deposits with banks and federal funds sold
52
