Executive Summary

Q3 2025 returned to profitability with net income of $0.125M and $0.04 EPS, improving by $0.11 per share vs Q2’s $(0.07) and flat year over year; net interest margin expanded to 3.24% (+11 bps QoQ, +10 bps YoY) as loan yields rose and cost of funds fell .
Noninterest income stepped up to $0.571M, driven by $0.192M of mortgage fees from VA Wholesale Mortgage (VAWM); deposits grew $11.8M QoQ to $329.1M; all FHLB advances were repaid, strengthening liquidity .
Cost of funds decreased to 1.32% (-4 bps QoQ) while loan yields increased to 5.73% (+15 bps QoQ), supporting margin expansion; loans rose $2.0M QoQ and $8.3M YoY to $215.3M .
Capital ratios remain well above “well capitalized” thresholds (Leverage 9.67%, Tier 1 14.82%, Total 15.96%); AOCL improved QoQ to $(16.2)M as rates moved favorably, though remains elevated YoY .
Wall Street consensus estimates were unavailable for GLBZ; no EPS or revenue consensus to assess beat/miss. Values retrieved from S&P Global*.

What Went Well and What Went Wrong

What Went Well

Profitability recovery and margin expansion: “Net interest margin…was 3.24%…up 11 bps QoQ and up 10 bps YoY,” aided by higher loan yields and lower cost of funds .
Strategic acquisition executed: “Completed the acquisition of VAWM…generated pretax income of $36,000” in the short period and added $192,000 in mortgage fee income, broadening products and markets .
Deposit growth and liquidity: Deposits up $11.8M QoQ to $329.1M; all FHLB advances repaid; management highlighted “strong liquidity and ample capital” .

What Went Wrong

Expense pressure: Noninterest expense rose to $3.272M vs $2.991M YoY, with higher salaries and legal/professional fees (VAWM integration and prior restructuring) .
Asset quality mixed: Nonperforming loans ratio increased to 0.56% vs 0.51% in Q2 and 0.16% YoY; net charge-offs of $93k vs $45k in Q2 and net recoveries YoY .
Securities yield and AOCL: Securities yield remained low at 2.23% and AOCL stayed large at $(16.2)M despite QoQ improvement, reflecting duration and rate sensitivity .

Financial Results

Income Statement and EPS (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Total Interest Income ($USD)	$3.959M	$3.877M	$3.937M
Total Interest Expense ($USD)	$1.138M	$1.141M	$1.106M
Net Interest Income ($USD)	$2.821M	$2.736M	$2.832M
Provision for Credit Loss ($USD)	$0.105M	$0.079M	$0.044M
Noninterest Income ($USD)	$0.354M	$0.220M	$0.571M
Noninterest Expense ($USD)	$2.991M	$3.252M	$3.272M
Pre-tax Income ($USD)	$0.079M	$(0.375)M	$0.087M
Net Income ($USD)	$0.129M	$(0.212)M	$0.125M
Diluted EPS ($)	$0.04	$(0.07)	$0.04
Net Interest Margin - FTE (%)	3.14%	3.13%	3.24%

Asset Quality and Capital (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
NPLs to Avg Loans (%)	0.16%	0.51%	0.56%
Net Charge-offs ($USD)	$(44)k	$45k	$93k
Allowance for Loan Losses / Loans (%)	1.33%	1.21%	1.19%
Leverage Ratio (%)	10.11%	9.59%	9.67%
Tier 1 Risk-based (%)	15.47%	14.91%	14.82%
Total RBC (%)	16.72%	16.06%	15.96%
AOCL ($USD)	$(15.7)M	$(17.8)M	$(16.2)M

Balance Sheet and KPIs (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Loans ($USD)	$205.219M	$213.362M	$215.320M
Deposits ($USD)	$309.189M	$317.316M	$329.069M
Borrowings ($USD)	$30.000M	$13.000M	$0
Book Value/Share ($)	$7.29	$6.53	$7.10
Loan Yield (%)	5.69% approx? (not provided)	5.58%	5.73%
Total Cost of Funds (%)	1.32%	1.36%	1.32%

Noninterest Income Mix (Q3 2025)

Component	Q3 2025
Service charges on deposit accounts ($USD)	$37k
Mortgage commissions (VAWM) ($USD)	$192k
Other fees and commissions ($USD)	$297k
Income on life insurance ($USD)	$45k
Total noninterest income ($USD)	$571k

Loan Growth by Category (Q3 2025 vs Q2 2025)

Category	Linked-Quarter Change ($USD)
Commercial real estate	+$2.4M
Commercial & industrial	+$3.8M
Consumer (automobile)	+$1.1M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Noninterest income (mortgage fees)	Q4 2025 onward	None	“Anticipates continued increases…due to the acquisition of VAWM”	Outlook only (no formal guidance)
Securities strategy	Ongoing	None	“Does not intend to sell nor buy new securities; prioritizing loan growth”	Strategic posture
Dividends	Q3 2025	Prior quarters variable	No cash dividend declared in Q3 (0.00); Q2 showed $0.10 declared	Maintained: suspended in Q3

No formal revenue, margin, OpEx, tax-rate, or segment guidance was provided in Q3 materials .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available for GLBZ; the company appears not to have published a call transcript for the period (ListDocuments returned none).

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Margin trajectory	NIM improved to 2.92% in Q1; 3.13% in Q2; loan yields up; cost of funds rose modestly	NIM 3.24%; loan yields +15 bps QoQ; cost of funds 1.32% (-4 bps QoQ)	Improving
Deposit mix/cost	Q2: cost of deposits 1.78% as funds shifted to higher-rate accounts	Interest-bearing cost rose to 1.91%; total cost of funds down to 1.32%	Mixed; total cost easing
Loan growth/mix	Q2: +$6.0M loans QoQ; CRE/C&I/auto led	+$2.0M loans QoQ; CRE +$2.4M, C&I +$3.8M, auto +$1.1M	Sustained growth
Liquidity & borrowings	Q2: FHLB advances $13M, capacity available	FHLB advances fully repaid; ample borrowing capacity detailed	Strengthening
Cost actions	Q2: nonrecurring severance/early retirement (~$287k); headcount reduced from 89 to 73	Noninterest expense stable QoQ but elevated YoY; VAWM integration costs	Normalizing post actions
Strategic initiatives	Q2: new credit card program launched	VAWM acquisition closed; mortgage fees contributing	Expanding products

Management Commentary

“We are pleased with our results for this quarter…strategic initiatives…continue to improve our balance sheet position and earnings. We are also excited to complete the acquisition of VAWM…grow our non-interest income…add a cornerstone product” — Mark C. Hanna, President & CEO .
“Deposit base and cost of funding continues to remain competitive and stable while seeing good growth in our loan revenues…strong liquidity and ample capital” — Mark C. Hanna .
“Liquidity sources improved to the point where we paid off all FHLB advances…$50.9M FHLB capacity…$56.8M securities pledging…$34.6M FRB…$123M other wholesale” .
“Mix of earning assets move from cash and securities to…loans…loans represented 61% of total earning assets” .
“Asset quality metrics continue to be very good…allowance for credit losses at 1.19% of loans” .

Q&A Highlights

No public Q&A transcript was available for Q3 2025; the company did not publish an earnings call transcript for this period (ListDocuments returned none).

Estimates Context

Consensus EPS and revenue estimates from S&P Global were unavailable for GLBZ for Q3 2025, Q2 2025, and Q3 2024; no beat/miss assessment could be made. Values retrieved from S&P Global*.
S&P Global provided actuals only for certain periods without consensus (e.g., revenue/total income figures), which differ in definition from reported net interest income + noninterest income and are not appropriate for beat/miss comparison. Values retrieved from S&P Global*.

Key Takeaways for Investors

Margin expansion and return to profitability are supported by higher loan yields and lower total cost of funds; sustaining loan growth should continue to support NIM and earnings .
VAWM acquisition is already accretive to fee income and should structurally lift noninterest income; watch mortgage fee run-rate and integration costs in Q4/Q1 .
Liquidity strengthened materially with FHLB advances repaid and significant contingent capacity; reduces funding risk and supports balance sheet growth .
Expense normalization after prior restructuring is important; noninterest expense remains elevated YoY due to integration and professional fees—monitor operating efficiency metrics .
Asset quality is good but watch the uptick in NPLs and net charge-offs; allowance remains conservative at 1.19% of loans .
Securities portfolio remains rate-sensitive with long duration (7.3 years) and low yield; strategy to prioritize loan growth over securities should improve earnings mix over time .
With no formal guidance and limited analyst coverage, quarterly disclosures and management commentary are the primary catalysts; deposit growth and continued NIM improvement are likely to drive near-term sentiment .

* Values retrieved from S&P Global.

Additional sources read:

Q3 2025 press release and detailed financial tables .
Form 8-K Item 2.02 and Exhibit 99.1 (press release) .
Q2 2025 press release and tables .
Q1 2025 press release and tables .
VAWM acquisition press release .

GLEN BURNIE BANCORP (GLBZ)·Q3 2025 Earnings Summary