(MENAFN- GlobeNewsWire - Nasdaq) GLEN BURNIE, Md., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp ("Company") (OTCQX: GLBZ), the bank holding company for The Bank of Glen Burnie ("Bank"), today reported net income of $205 thousand, or approximately $0.07 per diluted common share, for the third quarter of 2026, compared to a net loss of $272 thousand, or $(0.09) per diluted common share, for the second quarter of 2026, and net income of $125 thousand, or $0.04 per diluted common share, for the third quarter of 2025. For the nine months ended September 30, 2026, the Company reported net income of $17 thousand, or approximately $0.01 per diluted common share, compared to net income of $66 thousand, or approximately $0.02 per diluted common share, for the first nine months of 2025.
Pre-tax pre-provision income was $299 thousand for the third quarter of 2026, compared to $117 thousand for the second quarter and $131 thousand for the third quarter of 2025. For the nine months ended September 30, 2026, pre-tax pre-provision income was $538 thousand, an improvement of approximately $1.2 million from a pre-tax pre-provision loss of $662 thousand for the first nine months of 2025.
Third-quarter results reflected meaningful improvement in the Company's underlying operating performance as earlier balance-sheet growth began to translate into higher net interest income and improved operating leverage. Net interest income and net interest margin increased, loan yields improved, retail deposit growth exceeded period-end loan growth, and asset quality remained stable. These improvements were partially offset by higher funding and operating costs. Higher market interest rates also increased unrealized losses in the investment securities portfolio, reducing GAAP stockholders' equity and tangible book capital.
Third Quarter 2026 Highlights
Return to quarterly profitability and improved underlying earnings. Net income was $205 thousand for the third quarter of 2026, compared to a net loss of $272 thousand for the second quarter and net income of $125 thousand for the third quarter of 2025. Pre-tax pre-provision income increased to $299 thousand from $117 thousand linked quarter and $131 thousand for the third quarter of 2025. The linked-quarter improvement reflected higher net interest income, lower provision expense and higher noninterest income, partially offset by higher noninterest expense.
Net interest income and margin improved. Net interest income increased $217 thousand, or 7.3%, to $3.2 million for the third quarter from $3.0 million for the second quarter. Compared to the third quarter of 2025, net interest income increased $365 thousand, or 12.9%. The Bank's net interest margin increased to 3.19% from 3.11% linked quarter as the yield on earning assets increased faster than the cost of funds. Loan yield increased to 5.82% from 5.63%, while the overall cost of funds increased to 1.61% from 1.52%.
Continued loan growth with stronger retail deposit growth. Total loans increased $7.5 million, or 2.8%, during the third quarter to $275.1 million at September 30, 2026, compared to $267.6 million at June 30, 2026. For the first nine months of 2026, total loans increased $43.9 million, or 19.0%, from $231.2 million at December 31, 2025. Retail deposits increased $11.9 million, or 3.5%, during the third quarter to $355.1 million. Because retail deposit growth exceeded period-end loan growth, wholesale funding declined $3.9 million to $24.4 million, or approximately 6.1% of total assets, from $28.2 million, or 7.1% of total assets, at June 30, 2026.
Lower provision expense with stable asset quality. The provision for credit losses decreased to $94 thousand for the third quarter of 2026 from $569 thousand for the second quarter. The decrease primarily reflected slower loan growth and changes in reserves associated with purchased consumer loans and unfunded commitments. Asset quality remained stable. Nonperforming loans declined to $625 thousand, or 0.23% of total loans, at September 30, 2026, from $669 thousand, or 0.25%, at June 30, 2026. The allowance for credit losses was $3.2 million, or 1.15% of total loans, at September 30, 2026.
Improved operating leverage. Total noninterest expense increased $88 thousand, or 2.6%, to $3.5 million for the third quarter from $3.4 million for the second quarter. Over the same period, the combined increase in net interest income and noninterest income was approximately $270 thousand. As a result, the Company's efficiency ratio improved to approximately 92.2% from 96.7% linked quarter. The Company's net operating expense ratio improved modestly to 2.89% from 3.00%. While these measures remain above management's longer-term objectives, the quarter reflected progress in generating revenue growth faster than operating expense growth.
Noninterest income increased. Noninterest income increased $53 thousand to $637 thousand for the third quarter from $584 thousand for the second quarter. The increase was primarily attributable to higher interchange income associated with the Maryland Renaissance Festival, partially offset by lower mortgage commission income from VA Wholesale Mortgage. Mortgage commission income totaled $307 thousand for the third quarter, compared to $353 thousand for the second quarter, while related mortgage commission expense declined to $193 thousand from $255 thousand.
Sufficient liquidity. At September 30, 2026, the Bank maintained approximately $53.0 million of cash and unencumbered investment securities and approximately $75.6 million of available secured and unsecured borrowing capacity. Total on- and off-balance-sheet liquidity was approximately $128.6 million, or 32.3% of total assets.
Tangible book value. Stockholders' equity declined to $16.8 million at September 30, 2026 from $21.3 million at June 30, 2026, primarily due to a $4.7 million increase in accumulated other comprehensive loss associated with the market value of available-for-sale investment securities. The unrealized loss on the securities portfolio increased to approximately $27.7 million from $21.1 million, and tangible book value per share declined to approximately $5.62 from $7.16. Although accumulated other comprehensive loss does not affect regulatory capital under the Bank's AOCI opt-out election, it reduces GAAP and tangible book capital and can limit balance-sheet flexibility.
Capital Flexibility and Special Meeting of Stockholders.
The Company has called a Special Meeting of Stockholders (the“Special Meeting”) for December 9, 2026 to consider amendments to its Articles of Incorporation. See the following sections below:“Capital Position and Special Meeting,”“Additional Information and Where to Find It” and,“Participants in the Solicitation.” Stockholders are urged to read the proxy statement and any other relevant materials carefully to understand the potential benefits and risks of the proposals submitted for consideration.
"We saw meaningful progress in the third quarter as the balance-sheet growth generated earlier this year began to translate into improved earnings," said Mark C. Hanna, President and Chief Executive Officer. "Net interest income, margin and pre-tax pre-provision income all improved, while retail deposit growth exceeded loan growth and asset quality remained stable. We remain focused on building sustainable earnings, improving operating leverage and maintaining sufficient liquidity and capital to support our strategy.”
Hanna added,“Higher market rates increased unrealized losses in the securities portfolio and reduced tangible book value, underscoring the importance of maintaining financial flexibility. If approved, the proposals at our December Special Meeting would provide the Company greater flexibility to access the capital markets if and when appropriate and expand the range of capital options available as market conditions and opportunities evolve.”
Operating Results
Net interest income increased $217 thousand to $3.2 million for the third quarter of 2026 from $3.0 million for the second quarter. Compared to the third quarter of 2025, net interest income increased $365 thousand, or 12.9%.
Total interest income increased $382 thousand linked quarter to $4.7 million. Interest and fees on loans increased $433 thousand to approximately $4.0 million from $3.5 million for the second quarter. The increase reflected a $19.0 million, or 7.6%, increase in average loan balances and improved loan yields. Loan yield increased to 5.82% from 5.63%.
Total interest expense increased $165 thousand to $1.5 million for the third quarter from $1.4 million for the second quarter. The increase reflected higher average funding balances and higher funding costs. The overall cost of funds increased to 1.61% from 1.52%. Despite the higher funding cost, the yield on earning assets increased to 4.71% from 4.54%, resulting in an improvement in net interest margin to 3.19% from 3.11%.
Noninterest income increased to $637 thousand for the third quarter from $584 thousand for the second quarter. The linked-quarter increase was primarily attributable to higher interchange income associated with the Maryland Renaissance Festival, partially offset by lower mortgage commission income from VA Wholesale Mortgage. Mortgage commission income, net of related mortgage commission expense, increased modestly to approximately $114 thousand from $98 thousand linked quarter.
Noninterest expense increased to $3.5 million for the third quarter from $3.4 million for the second quarter. Compensation, employee benefits and mortgage commission expense increased approximately $19 thousand on a combined basis, while all other operating expenses increased approximately $69 thousand. The increase in operating expenses was more than offset by growth in net interest income and noninterest income, producing improved operating leverage during the quarter.
The Company's efficiency ratio improved to approximately 92.2% for the third quarter from 96.7% for the second quarter. For the first nine months of 2026, the efficiency ratio improved to approximately 95.0% from approximately 107.3% for the first nine months of 2025. The Company's net operating expense ratio improved to 2.89% for the third quarter from 3.00% for the second quarter. Although these trends are favorable, management believes additional revenue growth and efficiency initiatives remain necessary to create better operating leverage that leads to sustainable profitability and acceptable returns.
Pre-tax pre-provision income increased to $299 thousand for the third quarter from $117 thousand for the second quarter and $131 thousand for the third quarter of 2025. For the first nine months of 2026, pre-tax pre-provision income was $538 thousand compared to a loss of $662 thousand for the same period of 2025.
Nine-month net income remained below the prior-year period despite the substantial improvement in pre-tax pre-provision performance. The first nine months of 2025 benefited from a $498 thousand release of the allowance for credit losses, compared with provision expense of $749 thousand during the first nine months of 2026.
Balance Sheet and Funding
Total assets increased to $398.8 million at September 30, 2026 from $395.0 million at June 30, 2026 and $359.9 million at December 31, 2025.
Total loans increased to $275.1 million at September 30, 2026 from $267.6 million at June 30, 2026 and $231.2 million at December 31, 2025. Average loans increased approximately 7.6% linked quarter to $269.9 million from $250.9 million. Period-end loans exceeded third-quarter average loans by approximately $5.2 million. To the extent these balances are maintained, the higher ending balance provides a modest favorable starting point for fourth-quarter loan-interest income.
Total deposits were approximately $360.5 million at September 30, 2026, compared with approximately $357.0 million at June 30, 2026 and $332.4 million at December 31, 2025. At the Bank level, retail deposits increased $11.9 million during the third quarter to $355.1 million, while wholesale funding declined $3.9 million to $24.4 million.
The mix of customer deposits shifted toward interest-bearing products during the quarter, including approximately $6.0 million that migrated from noninterest-bearing deposits to the Bank's Community Advantage Plus Interest Checking Account. The Bank also experienced growth in money market, local certificate-of-deposit and reciprocal deposit balances.
Loans-to-retail deposits decreased modestly to 77.5% at September 30, 2026 from 78.0% at June 30, 2026, while loans-to-total funding increased modestly to 72.5% from 72.0%. Management believes the Bank continues to maintain sufficient liquidity and funding flexibility while using wholesale funding prudently as a supplemental source to support balance-sheet management and attractive lending opportunities.
Asset Quality
Asset quality remained stable during the third quarter. Nonperforming loans declined to $625 thousand, or 0.23% of total loans, at September 30, 2026 from $669 thousand, or 0.25%, at June 30, 2026.
The allowance for credit losses was $3.2 million, or 1.15% of total loans, at September 30, 2026 compared to $3.2 million, or 1.18%, at June 30, 2026. Management believes the reduction in third-quarter provision expense primarily reflected slower loan growth and changes in reserve requirements associated with purchased consumer loans and unfunded commitments rather than deterioration in credit quality.
Net charge-offs were approximately $148 thousand during the third quarter, compared to $108 thousand during the second quarter and $94 thousand during the third quarter of 2025. Annualized net charge-offs represented approximately 0.22% of average loans in the third quarter, compared with 0.17% in both the second quarter of 2026 and the third quarter of 2025. For the first nine months of 2026, net charge-offs were approximately $310 thousand, or 0.16% of average loans on an annualized basis, compared with $143 thousand, or 0.09%, for the first nine months of 2025.
Capital Position and Special Meeting
Stockholders' equity totaled $16.8 million at September 30, 2026, compared to $21.3 million at June 30, 2026 and $21.4 million at December 31, 2025. The linked-quarter decline was primarily attributable to a $4.7 million increase in accumulated other comprehensive loss associated with higher market interest rates and the resulting decline in the fair value of available-for-sale investment securities.
Accumulated other comprehensive loss increased to $20.0 million at September 30, 2026 from $15.3 million at June 30, 2026. Tangible book value per share declined to approximately $5.62 from $7.16 over the same period. Although the Bank's AOCI opt-out election excludes changes in accumulated other comprehensive income or loss from regulatory capital, the change reduces GAAP and tangible book capital and can limit balance-sheet flexibility. The Bank remains well capitalized with regulatory capital ratios above regulatory minimum requirements at September 30, 2026 with tier 1 leverage and risk-based capital ratios of 8.54% and 11.68%, respectively, and a total risk-based capital ratio of 12.78%.
Continued balance-sheet growth and the decline in tangible book capital reinforce the importance of maintaining financial flexibility. Management remains focused on preserving sufficient liquidity and capital while maintaining the ability to respond to changing market conditions, attractive growth opportunities and other strategic alternatives.
On October 23, 2026, the Company began mailing proxy materials for the Special Meeting, to be held virtually on December 9, 2026. Stockholders of record at the close of business on October 15, 2026 are entitled to vote. At the Special Meeting, stockholders will be asked to approve amendments to the Company's Articles of Incorporation to (1) increase the number of authorized shares of common stock from 5,000,000 to 15,000,000, (2) authorize the Board of Directors to classify or reclassify unissued shares of stock, and (3) reduce the stockholder vote required to approve future charter amendments from two-thirds to a majority of all votes entitled to be cast. Stockholders will also be asked to approve an adjournment of the Special Meeting, if necessary, to solicit additional proxies. The proposals do not themselves issue any shares, and the Company currently has no plans, understandings or arrangements to issue any of the additional authorized shares. Stockholders are urged to read the proxy statement carefully. See“Additional Information and Where to Find It” below.
Results for the third quarter of 2026 reflected meaningful progress in converting the Company's recent balance sheet growth into improved operating performance. The Company returned to quarterly profitability, increased net interest income and margin, improved pre-tax pre-provision earnings and operating efficiency, maintained stable asset quality and strengthened the mix of period-end funding. Management remains focused on building sustainable earnings and operating leverage while maintaining sufficient liquidity and capital to support the Company's long-term strategy.
Glen Burnie Bancorp Information
Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland. Founded in 1949, The Bank of Glen Burnie is a locally owned community bank with six branch offices serving Anne Arundel County and a loan production office in Annapolis, Maryland. The Bank is engaged in commercial and retail banking, including the acceptance of demand and time deposits and the origination of loans to individuals, associations, partnerships, non-profits and corporations. The Bank's real estate financing includes residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. The Bank also originates automobile loans through arrangements with local automobile dealers. Additional information is available at .
Non-GAAP Financial Measures
This press release and the accompanying financial tables include certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), including pre-tax pre-provision income, tangible book value per share, the tangible capital ratio, the efficiency ratio, core loan yield and core net interest margin. "Core loan yield" and "core net interest margin" are calculated in the same manner as loan yield and net interest margin, respectively, except that they exclude nonrecurring loan interest recognized, which management does not consider representative of the Company's ongoing loan portfolio performance. Pre-tax pre-provision income is income (loss) before income taxes plus the provision (or less the release) of the allowance for credit losses. Tangible book value per share and the tangible capital ratio excludes goodwill. Management believes these measures provide useful supplemental information for evaluating the Company's underlying operating performance and capital position. These measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
Forward-Looking Statements
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future loan and deposit growth, net interest income and margin, operating leverage, asset quality, liquidity, capital, the Special Meeting and the Company's ability to access capital. These statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements are often identified by words such as "anticipate," "believe," "expect," "intend," "plan," "may," "should," or similar expressions. Factors that could cause actual results to differ materially include, among others: changes in market interest rates, including their effect on net interest margin, funding costs and the fair value of the Company's investment securities portfolio and accumulated other comprehensive loss; deposit competition, changes in deposit mix and the availability and cost of wholesale funding and other sources of liquidity; credit quality deterioration, including in purchased consumer loans, and the adequacy of the allowance for credit losses; concentration of the Company's business in Anne Arundel County and the surrounding Maryland market and changes in local economic and real estate conditions; the Company's ability to maintain capital levels sufficient to support growth and satisfy regulatory requirements, and the availability and terms of any future capital; whether stockholders approve the proposals at the Special Meeting and the potential dilutive effect of any future issuance of stock; changes in mortgage origination and interchange volumes and other sources of noninterest income; the Company's ability to control operating expenses and achieve improved operating leverage; changes in laws, regulations, accounting standards and the policies and examination priorities of bank regulatory agencies; cybersecurity incidents, fraud and other operational risks; and the Company's ability to attract and retain key personnel. These statements are not guarantees of future performance and involve known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Additional Information and Where to Find It
This press release may be deemed to be solicitation material in respect of the Special Meeting. On or about October 23, 2026, the Company began mailing a definitive proxy statement and proxy card to its stockholders of record as of October 15, 2026. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSALS. Stockholders may obtain free copies of the Notice of Special Meeting, proxy statement and form of proxy at , or by contacting Glen Burnie Bancorp, 101 Crain Highway, S.E., Glen Burnie, Maryland 21061, Attention: Corporate Secretary, (410) 766-3300. Stockholders who have questions or need help voting may contact the Company's proxy solicitor, Laurel Hill Advisory Group, at (888) 742-1305.
Participants in the Solicitation
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the Special Meeting. As of October 15, 2026, the Company's directors and executive officers as a group (14 individuals) beneficially owned 441,787 shares of the Company's common stock, or approximately 15.06% of the outstanding shares. Information about the names of the Company's directors and executive officers and their beneficial ownership of the Company's common stock is set forth under“Security Ownership of Certain Beneficial Owners and Management” in the proxy statement. Stockholders may obtain additional information about the direct and indirect interests of the participants by reading the proxy statement.
CONTACT: For further information contact:
Todd L. Capitani, Chief Financial Officer and Treasurer
410-768-8883...
106 Padfield Blvd
Glen Burnie, MD 21061
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