Glen Burnie Bancorp Reports $153,000 Net Income in Q1 2025, Up from $3,000 in Q1 2024

Glen Burnie Bancorp reported a net income of $153,000 for the first quarter of 2025, a significant increase from the $3,000 recorded in the same period of 2024. This improvement is attributed to a $315,000 reduction in the provision for credit loss allowance and a $498,000 decrease in provisions for losses on unfunded commitments. However, these gains were partially offset by increases in salary and employee benefits costs, legal and professional fees, and a decrease in income tax benefits. The company's total assets decreased slightly to $358.0 million, down from $359.0 million at the end of 2024, primarily due to a decline in cash and cash equivalents and investment securities.

The bank's loan portfolio saw a modest increase of $2.2 million, or 1.1%, reaching $204.7 million as of March 31, 2025. This growth was driven by increases in single-family residential, commercial and industrial, and automobile loans, while construction and land loans decreased significantly. Total deposits rose by $8.1 million, or 2.6%, to $317.3 million, with notable increases in demand deposits and money market accounts. The bank's allowance for credit losses was $2.69 million, a decrease from $2.84 million at the end of 2024, reflecting improved asset quality.

In terms of operational metrics, Glen Burnie Bancorp's net interest income for the first quarter was $2.56 million, slightly down from $2.57 million in the previous year. The net interest margin improved to 2.92%, up from 2.86%, driven by higher loan yields despite increased interest expenses. The bank's return on average assets was 0.17%, compared to 0% in the prior year, while return on average equity rose to 3.22% from 0.06%. The book value per share increased to $6.61, reflecting a decrease in unrealized losses on available-for-sale securities.

Strategically, the bank has implemented an early retirement incentive program, which resulted in eight employees accepting the offer. This move is expected to incur one-time salary expenses of approximately $292,675 but is projected to yield annual savings of about $380,000. The bank remains well-capitalized, with a total risk-based capital ratio of 16.60% as of March 31, 2025, indicating strong financial health and capacity for future growth. The management anticipates continued stability in the coming quarters, supported by a solid liquidity position and a diversified loan portfolio.