Executive Summary

Q1 2025 delivered a return to profitability: net income of $0.153M and $0.05 EPS versus $0.003M and $0.00 EPS in Q1 2024; sequentially improved from Q4 2024’s loss of -$0.039M and -$0.01 EPS .
Net interest income was essentially flat year over year ($2.563M vs. $2.572M) while net interest margin expanded 6 bps to 2.92% on higher loan yields; loan interest income rose $0.494M YoY .
Capital and liquidity strengthened: equity rose to $19.2M (book value $6.61) and deposits grew $8.1M QoQ; short-term borrowings reduced by $10.0M to $20.0M .
Cost actions underway (branch closures, early retirement program) and leadership additions (chief lending officer, chief credit officer) support loan-led revenue growth while seeking to contain noninterest expense .
No Wall Street consensus estimates available for EPS or revenue; comparisons to estimates are therefore unavailable (S&P Global).

What Went Well and What Went Wrong

What Went Well

Profitability inflected: $0.153M net income and $0.05 EPS, driven by releases to credit allowances on loans ($0.146M) and unfunded commitments ($0.474M), plus higher loan interest income .
Balance sheet mix improved: deposits +$8.1M QoQ to $317.3M, noninterest-bearing deposits +$3.7M QoQ, and borrowings cut by $10.0M to $20.0M, bolstering liquidity and margin trajectory .
Management tone confident on asset quality and liquidity: “Our non-performing assets remained at minimal levels… [and] access to multiple liquidity sources” — Mark C. Hanna, CEO .

What Went Wrong

Funding costs still pressured earnings: interest expense on deposits up $0.439M YoY; total interest expense up $0.233M despite loan yield gains and lower borrowings .
Noninterest expense mix includes rising compensation and professional fees: salary/benefits +$0.209M YoY and legal/accounting/professional +$0.129M, prompting branch closures and an early retirement program to curb costs going forward .
Asset quality ratio ticked up: nonperforming assets rose to 0.32% of assets from 0.10% at year-end, though allowance coverage remains robust at 1.30% of loans .

Financial Results

Income Statement and Margin Comparison

Metric	Q1 2024	Q4 2024	Q1 2025
Total Interest Income ($USD Millions)	$3.405	$3.956	$3.629
Net Interest Income ($USD Millions)	$2.572	$2.763	$2.563
Net Income ($USD Millions)	$0.003	-$0.039	$0.153
Diluted EPS ($USD)	$0.00	-$0.01	$0.05
Net Interest Margin (%)	2.86%	2.98%	2.92%

Balance Sheet and Funding Mix

Metric	Q1 2024	Q4 2024	Q1 2025
Total Assets ($USD Billions)	$0.370	$0.359	$0.358
Loans (net of deferred fees & costs) ($USD Millions)	$177.950	$205.219	$207.393
Total Deposits ($USD Millions)	$309.231	$309.189	$317.257
Noninterest-Bearing Deposits ($USD Millions)	$115.167	$100.747	$104.487
Interest-Bearing Deposits ($USD Millions)	$194.064	$208.442	$212.770
Short-Term Borrowings ($USD Millions)	$40.000	$30.000	$20.000
Stockholders’ Equity ($USD Millions)	$18.129	$17.817	$19.181

KPIs and Asset Quality

KPI	Q1 2024	Q4 2024	Q1 2025
ROAA (annualized) (%)	0.00%	-0.04%	0.17%
ROAE (annualized) (%)	0.06%	-0.75%	3.22%
Book Value per Share ($)	$6.28	$6.14	$6.61
Allowance for Loan Losses / Loans (%)	1.14%	1.38%	1.30%
Nonperforming Assets / Total Assets (%)	N/A	0.10%	0.32%
Cash Dividends Declared per Share ($)	$0.10	$0.00	$0.00

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividends per share	Ongoing	Historically quarterly dividends; management changed longstanding practice in late 2024	$0.00 declared in Q1 2025	Maintained suspension
Noninterest expense actions	2025	N/A	Branch closures (Linthicum closed Jan 2025; Severna Park planned May 2025) and early retirement program to reduce future expenses	Initiated cost reductions
Formal revenue/margin guidance	2025	None	None provided; focus on disciplined loan growth and deposit funding	N/A

No explicit numeric guidance was provided on revenue, margins, OpEx, OI&E, or tax rate beyond qualitative actions and dividend policy .

Earnings Call Themes & Trends

No earnings call transcript found for Q1 2025. Thematic evolution below relies on press releases and 8-Ks.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Loan growth & pricing	Emphasis on disciplined loan growth; loan yields up; net interest margin pressured by funding mix	Loan growth +$28.9M YoY; loan yields up; NIM at 2.98%	Loan interest income +$0.494M YoY; loan yield from 5.06% to 5.34%; loans $207.4M	Improving
Deposit mix & funding costs	Cost of funds up; shift from noninterest-bearing to interest-bearing; borrowings +$5M YoY	Cost of funds 1.38%; deposit growth QoQ; borrowings steady at $30M	Deposits +$8.1M QoQ; borrowings down to $20M; funding cost still higher YoY	Improving mix; cost elevated
Capital & liquidity	CET1 ~15.47%; liquidity lines robust	CET1 ~15.15%; liquidity strong	Equity $19.2M; liquidity strong with multiple facilities	Stable/strong
Asset quality	NPA 0.08% of assets; allowance 1.33%	NPA 0.10%; allowance 1.38%	NPA 0.32%; allowance 1.30%	Slight deterioration from very low base
Expense management	Rising legal/data processing; early signs of pressure	Higher noninterest expenses; dividend suspension to reinvest	Cost actions: branch closures, early retirement; noninterest expense down YoY net of allowance changes	Active control
Leadership & lending capability	N/A	N/A	New CLO and CCO to drive commercial lending growth and manage credit risk	Strengthening organization

Management Commentary

“Our non-performing assets remained at minimal levels consistent with previous quarters… [and] we continue to focus on growing funding sources, growing earning assets and building the infrastructure needed to grow customer relationships.” — Mark C. Hanna, President & CEO .
“The Company is taking steps to reduce non-interest expenses… closure of our Linthicum branch… planned closing of our Severna Park branch… early retirement program.” .
Leadership build-out to drive loan-led growth: promotions of a Chief Lending Officer and appointment of a Chief Credit Officer to expand commercial banking while managing risk .

Q&A Highlights

No earnings call transcript available for Q1 2025; therefore, no Q&A themes or clarifications can be cited.

Estimates Context

S&P Global Wall Street consensus estimates were unavailable for Q1 2025 EPS and revenue for GLBZ; as such, no beat/miss analysis versus consensus can be provided (Values retrieved from S&P Global).
Actual reported totals: Total Interest Income $3.629M and EPS $0.05 per share for Q1 2025, used for performance comparisons .

Key Takeaways for Investors

Profitability inflection with EPS at $0.05 and ROAA/ROAE improved to 0.17%/3.22%; sustainability hinges on maintaining loan yield momentum and controlling funding costs .
Funding mix is turning favorable: deposits up $8.1M QoQ and borrowings down $10.0M; if sustained, this should support NIM and lower interest expense over coming quarters .
Credit cost tailwinds helped Q1 (release to loan and unfunded commitments allowances); monitor whether allowance releases persist or normalize as loan growth continues .
Active cost management (branch rationalization, early retirement) should mitigate rising compensation/professional fees and improve operating leverage over time .
Organizational upgrades (CLO/CCO) indicate a push into commercial lending; watch for accelerated loan growth with disciplined credit oversight and its impact on net interest income .
With no consensus estimates, price reaction will likely hinge on narrative shifts: deposit growth, borrowing reduction, asset quality stability, and demonstrated expense control in subsequent quarters (S&P Global).
Dividend suspension remains in place; reinvestment in people/technology/products/facilities suggests a medium-term focus on franchise strength over near-term payouts .

GLEN BURNIE BANCORP (GLBZ)·Q1 2025 Earnings Summary