Sign in

You're signed outSign in or to get full access.

GB

GLEN BURNIE BANCORP (GLBZ)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 printed a small loss: net loss of $0.04M (-$0.01 EPS) versus net income of $0.17M ($0.06 EPS) in Q4 2023, with sequential deceleration from Q3’s $0.13M ($0.04) as higher funding costs and elevated noninterest expense outweighed growth in interest income .
  • Net interest margin compressed to 2.98% (from 3.17% YoY and 3.06% QoQ) as cost of funds rose to 1.38% (0.64% YoY, 1.32% QoQ), reflecting mix shifts toward higher-cost money market deposits and continued reliance on borrowings .
  • Management suspended the longstanding quarterly cash dividend to reinvest in people, technology, products, and facilities; Q4 dividend declared per share was $0.00 (vs $0.10 in Q3) .
  • Asset quality and capital remain solid: NPAs at 0.10% of assets, ACL/loans at 1.38%, CET1 at ~15.15% and Total RBC at 16.40% at 12/31/24; loan balances rose $28.9M YoY (16.4%) while equity declined on AOCL and lower earnings .

What Went Well and What Went Wrong

  • What Went Well

    • Robust loan growth and higher loan yields partly offset funding cost pressure; average Q4 loan balances increased $29.2M YoY to $204.7M and average loan yield rose to 5.54% (from 4.96%) .
    • Asset quality stayed strong with NPAs at 0.10% of assets (down from 0.15% YoY); ACL/loans increased to 1.38%, supporting conservative credit posture .
    • Management highlights stable liquidity and well-capitalized status; CET1 ~15.15% and Total RBC 16.40% at year-end provide capacity for growth .

  • What Went Wrong

    • Margin compression persisted: NIM fell to 2.98% (3.17% YoY; 3.06% QoQ) as cost of funds rose to 1.38% (0.64% YoY; 1.32% QoQ) and noninterest-bearing deposits declined YoY .
    • Q4 noninterest expense increased 5.8% YoY (to $3.12M) on higher compensation, professional fees, and processing costs, contributing to the quarterly loss .
    • Credit provisioning remained a headwind in 2024: full-year ACL provision increased to $0.84M (vs $0.10M in 2023) on portfolio growth, slightly higher net charge-offs, and a higher CECL percentage .

Financial Results

Metric (USD or %)Q4 2023Q2 2024Q3 2024Q4 2024
Total Interest Income ($USD Thousands)3,436 3,893 3,959 3,956
Total Interest Expense ($USD Thousands)545 1,107 1,138 1,193
Net Interest Income ($USD Thousands)2,891 2,786 2,821 2,763
Provision for Credit Losses ($USD Thousands)103 526 78 71
Noninterest Income ($USD Thousands)299 241 354 332
Noninterest Expense ($USD Thousands)2,947 2,894 3,018 3,118
Net Income ($USD Thousands)167 (204) 129 (39)
Diluted EPS ($)0.06 (0.07) 0.04 (0.01)
Net Interest Margin %3.17% 3.02% 3.06% 2.98%
Cost of Funds %0.64% 1.14% 1.32% 1.38%
ROAA % (annualized)0.19% -0.22% 0.14% -0.04%
ROAE % (annualized)4.65% -4.72% 2.63% -0.75%

KPIs and Balance Sheet (quarter-end)

Metric6/30/20249/30/202412/31/2024
Total Assets ($USD Thousands)355,716 368,359 358,956
Loans (net of deferred fees & costs) ($USD Thousands)201,500 206,975 205,219
Allowance for Credit Losses ($USD Thousands)2,625 2,748 2,839
Total Deposits ($USD Thousands)305,866 314,273 309,189
Noninterest-Bearing Deposits ($USD Thousands)109,631 115,938 100,747
Interest-Bearing Deposits ($USD Thousands)196,235 198,335 208,442
Borrowings ($USD Thousands)30,000 30,000 30,000
Stockholders’ Equity ($USD Thousands)17,471 21,160 17,817
Book Value per Share ($)6.04 7.29 6.14
CET1 Capital Ratio % (Bank)15.59% 15.47% 15.15%
Total Risk-Based Capital Ratio % (Bank)16.84% 16.72% 16.40%
Nonperforming Assets / Assets %0.09% 0.08% 0.10%
ACL / Total Loans %1.30% 1.33% 1.38%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend policyOngoingLongstanding practice of approving quarterly cash dividends; $0.10/share declared in Q3 2024 Dividend suspended; no Q4 2024 dividend declared ($0.00/share) to reinvest in growth Lowered
Revenue/Margins/OpEx/Tax2025Not providedNot providedMaintained (no formal guidance)

Management commentary explicitly prioritized reinvestment over cash dividends to support long-term performance and client service capabilities .

Earnings Call Themes & Trends

No earnings call transcript was found for Q4 2024; themes below reflect management commentary across Q2–Q4 press releases.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Deposit strategy & cost of fundsCompetition for deposits; cost of funds 1.14%; mix shift to higher-cost funds; planned actions to drive deposit growth Cost of funds 1.32%; strategic funding mix changes to defend/grow deposits Cost of funds 1.38%; money market product driving interest expense; liquidity stable Deteriorating (rising costs)
Net interest income/marginNIM 3.02% (up 16 bps QoQ); higher asset yields but funded by costlier liabilities NIM 3.06%; asset yields up YoY; deposit mix and higher funding costs constrain NIM NIM 2.98%; asset yields up, but margin compression persists Slightly deteriorating
Credit quality/ProvisioningProvision higher on loan growth and CECL; NPAs 0.09%; ACL/loans 1.30% Provision elevated; ACL/loans 1.33%; NPAs 0.08% Full-year provision $0.84M; ACL/loans 1.38%; NPAs 0.10% Stable/Conservative
Capital & liquidityWell-capitalized; CET1 15.59%, TRBC 16.84% CET1 15.47%, TRBC 16.72% CET1 15.15%, TRBC 16.40%; strong liquidity access Slightly lower but solid
Strategic investments (tech/people)Intent to invest in products, infrastructure, people; dividend decisions evaluated vs reinvestment Hires in commercial banking & cash management to drive growth Dividend suspension to reinvest in people, technology, products, facilities Increasing investment
Dividend policyPaid $0.10 in Q2; reassessing future dividends Paid $0.10 in Q3; reiterated reinvestment focus Suspended; no Q4 dividend Lowered

Management Commentary

  • “Our financial performance in 2024 is disappointing… [focus on] generating additional interest-earning assets at higher current market interest rates and rebuilding our base of core, low-cost deposits… loan growth of $28.9 million and higher yields… partially offset higher interest expense and helped mitigate margin compression.” — Mark C. Hanna, President & CEO .
  • “The difficult decision was made to change the longstanding practice of approving quarterly cash dividends… to reinvest in our people, technology, products, and facilities… management expects to navigate the uncertainties and remain well-capitalized.” .
  • Liquidity and capital remain strong; CET1 ~15.15% and TRBC 16.40% at 12/31/24 support capacity for future growth .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available; no Q&A items to report [ListDocuments returned none].

Estimates Context

  • We attempted to retrieve Wall Street consensus (EPS and revenue) for Q4 2024 and FY 2024 from S&P Global; data was unavailable at the time due to system limits. As a result, we cannot assess beat/miss vs consensus. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Margin headwinds likely persist near term: cost of funds rose to 1.38% in Q4 and NIM slipped to 2.98% despite higher asset yields; further mix improvement in deposits will be key to stabilizing NIM .
  • Balance-sheet growth is a positive offset: loans up $28.9M YoY (16.4%) with higher yields (Q4 average loan yield 5.54%), positioning interest income for improvement if funding costs normalize .
  • Credit remains benign and well-reserved: NPAs at 0.10% and ACL/loans at 1.38% reflect prudent underwriting amid portfolio growth .
  • Dividend suspension is a notable shift: income-oriented holders may rotate, but reinvestment could improve earnings power medium term via deposit growth, treasury/cash management capabilities, and operating capacity .
  • Capital/liquidity provide flexibility: CET1 ~15.15% and Total RBC 16.40% at 12/31/24 should support organic growth initiatives without near-term dilution risk .
  • Near-term catalysts: evidence of deposit mix improvement (growth in low-cost/core deposits), stabilization of NIM, and expense discipline; any easing in rates would ease funding pressures and support margin recovery .
  • Risk watchlist: sustained deposit pricing pressure, competition for quality loans, and AOCL sensitivity if long-end rates remain elevated (affecting AFS marks and equity) .