Glen Burnie Bancorp Reports $0.1 Million Net Loss for 2024, Down from $1.4 Million Profit in 2023

Glen Burnie Bancorp reported a consolidated net loss of $0.1 million for the year ended December 31, 2024, a significant decline from the net income of $1.4 million recorded in 2023. This downturn was primarily attributed to a $1.2 million decrease in net interest income, which fell to $10.9 million from $12.1 million in the previous year. Total interest income increased by 14.1% to $15.2 million, driven by higher interest and fees on loans, but this was offset by a substantial rise in interest expenses, which surged 255.3% to $4.3 million. The annualized return on average assets dropped to (0.03)% from 0.40%, while the return on average equity fell to (0.58)% from 8.35%.

In terms of operational changes, Glen Burnie Bancorp has been actively managing its branch network, closing the Linthicum branch in January 2025 and planning to close the Severna Park branch by May 2025. The Bank's total assets increased by 2.0% to $359.0 million, with total deposits rising by 3.0% to $309.2 million. However, the composition of deposits shifted, with noninterest-bearing deposits decreasing by 13.8% and interest-bearing savings accounts declining by 19.0%. Notably, money market account balances surged by 203.7%, indicating a strategic pivot in customer preferences.

The Bank's loan portfolio saw a net increase of $28.2 million, reaching $202.4 million, primarily due to new originations outpacing paydowns. The composition of loans shifted, with significant increases in construction and land loans, single-family residential loans, and commercial real estate loans. However, automobile loans decreased by $3.2 million. The allowance for credit losses rose to $2.8 million, representing 1.4% of total loans, up from 1.2% in the previous year, reflecting a proactive approach to managing credit risk amid changing economic conditions.

Looking ahead, Glen Burnie Bancorp's management has acknowledged the challenges posed by rising interest rates and the need to adapt its strategies accordingly. The Bank's interest rate risk management policy aims to balance the impact of rate fluctuations on net interest income and the economic value of equity. The Company is committed to enhancing its internal controls, particularly in light of identified material weaknesses related to journal entry permissions and the validation of credit loss estimates. Management plans to implement system-based controls and enhance policies to address these weaknesses, ensuring a more robust financial reporting framework moving forward.