GLBZ Swings to Profit, Boosted by Mortgage Acquisition

TL;DR

**GLBZ is back in the black and making smart plays with the VAWM acquisition; this regional bank is one to watch for continued growth.**

AI Summary

GLEN BURNIE BANCORP reported a net income of $125 thousand for the three months ended September 30, 2025, a slight decrease from $129 thousand in the same period of 2024. For the nine months ended September 30, 2025, the company achieved a net income of $66 thousand, a significant turnaround from a net loss of $72 thousand in the prior year. Total assets decreased to $351.79 million as of September 30, 2025, from $358.96 million at December 31, 2024. The company's total deposits increased by $19.88 million to $329.07 million, driven by a $6.62 million increase in noninterest-bearing deposits and a $13.26 million increase in interest-bearing deposits. Loans, net, grew by $10.37 million to $212.75 million. A key business change was the acquisition of VA Wholesale Mortgage Incorporated (VAWM) on August 15, 2025, which contributed to a new 'Mortgage commissions' noninterest income line item of $192 thousand for the quarter and nine-month period. Strategic outlook includes enhancing mortgage lending products and services through the VAWM acquisition. Risks include a decrease in cash and cash equivalents by $12.24 million for the nine months ended September 30, 2025, primarily due to a $30 million decrease in short-term borrowings.

Why It Matters

GLEN BURNIE BANCORP's return to profitability for the nine-month period, coupled with its strategic acquisition of VA Wholesale Mortgage, signals a potential growth trajectory for investors. The increase in deposits and loan portfolio expansion suggests a healthy core banking operation, which is crucial in a competitive regional banking landscape. For customers, the VAWM acquisition could mean enhanced mortgage product offerings. Employees of VAWM are now integrated into a larger banking structure. The broader market will watch if GLBZ can leverage this acquisition to gain market share against larger financial institutions in Central Maryland.

Risk Assessment

Risk Level: medium — The company experienced a significant net decrease in cash and cash equivalents of $12.24 million for the nine months ended September 30, 2025, primarily due to a $30 million decrease in short-term borrowings. While total assets decreased from $358.96 million to $351.79 million, the increase in total deposits by $19.88 million and loans, net, by $10.37 million indicates a shift in funding structure and asset allocation, which carries inherent interest rate and credit risks.

Analyst Insight

Investors should monitor GLEN BURNIE BANCORP's integration of VA Wholesale Mortgage and its impact on future mortgage commission income and overall profitability. The increase in deposits and loan growth is positive, but the reduction in cash and short-term borrowings warrants attention regarding liquidity management. Consider GLBZ for long-term growth potential if the VAWM acquisition proves accretive and deposit growth continues.

Financial Highlights

debt To Equity

N/A

revenue

$11,443K

operating Margin

N/A

total Assets

$351.79M

total Debt

$331.07M

net Income

$66K

eps

$0.02

gross Margin

N/A

cash Position

$12.23M

revenue Growth

+1.7%

Revenue Breakdown

Key Numbers

• $125K — Net Income (Q3 2025) (Slight decrease from $129K in Q3 2024)
• $66K — Net Income (YTD Sep 2025) (Turnaround from a $72K net loss in YTD Sep 2024)
• $351.79M — Total Assets (Decreased from $358.96M at Dec 31, 2024)
• $329.07M — Total Deposits (Increased by $19.88M from Dec 31, 2024)
• $212.75M — Loans, Net (Increased by $10.37M from Dec 31, 2024)
• $192K — Mortgage Commissions (New income stream from VAWM acquisition for Q3 and YTD Sep 2025)
• $12.24M — Decrease in Cash & Equivalents (Primarily due to $30M decrease in short-term borrowings)
• $30M — Decrease in Short-term Borrowings (Impacted cash flows from financing activities)
• 2,919,695 — Common Shares Outstanding (As of November 4, 2025)
• $0.02 — Basic and Diluted EPS (YTD Sep 2025) (Improved from $(0.02) in YTD Sep 2024)

Key Players & Entities

• GLEN BURNIE BANCORP (company) — registrant
• The Bank of Glen Burnie (company) — subsidiary
• VA Wholesale Mortgage Incorporated (company) — acquired company
• NASDAQ Stock Market LLC (regulator) — exchange where GLBZ is registered
• SEC (regulator) — Securities and Exchange Commission
• $125 thousand (dollar_amount) — net income for Q3 2025
• $66 thousand (dollar_amount) — net income for nine months ended Sep 30, 2025
• $351.79 million (dollar_amount) — total assets as of Sep 30, 2025
• $19.88 million (dollar_amount) — increase in total deposits
• $10.37 million (dollar_amount) — increase in loans, net

FAQ

Risk Factors

• Decrease in Cash and Cash Equivalents [medium — financial]: Cash and cash equivalents decreased by $12.24 million for the nine months ended September 30, 2025. This was primarily driven by a $30 million decrease in short-term borrowings, indicating a significant shift in financing strategy.
• Integration of VA Wholesale Mortgage Incorporated [medium — operational]: The acquisition of VAWM introduces operational complexities related to integrating a new business line. Success depends on effectively leveraging VAWM's expertise to enhance mortgage lending products and services.
• Interest Rate Sensitivity [medium — market]: Fluctuations in interest rates can impact net interest income. The increase in interest expense on deposits by 64.6% for the nine months ended September 30, 2025, suggests sensitivity to rising rate environments.
• Regulatory Compliance [high — regulatory]: As a bank holding company and commercial bank, Glen Burnie Bancorp is subject to extensive regulation by federal and state agencies. Periodic examinations and adherence to evolving regulatory requirements pose ongoing compliance risks.

Industry Context

Glen Burnie Bancorp operates within the highly competitive community banking sector in Central Maryland. The industry is characterized by increasing consolidation, evolving customer expectations for digital services, and a dynamic interest rate environment. Banks are increasingly looking to diversify non-interest income streams and expand through strategic acquisitions to remain competitive.

Regulatory Implications

As a regulated financial institution, Glen Burnie Bancorp must navigate a complex and evolving regulatory landscape. Compliance with banking laws, capital requirements, and consumer protection regulations is paramount. The acquisition of VAWM may also bring new regulatory considerations related to mortgage lending activities.

What Investors Should Do

1. Monitor the integration and performance of VA Wholesale Mortgage Incorporated.
2. Analyze the impact of interest rate changes on net interest income.
3. Evaluate the company's capital management and liquidity position.

Key Dates

• 2025-08-15: Acquisition of VA Wholesale Mortgage Incorporated (VAWM) — Introduces a new revenue stream (mortgage commissions) and strategic expansion into mortgage banking, enhancing the company's product and service offerings.
• 2025-09-30: End of Q3 and Nine-Month Period — Reporting period for the 10-Q, showing a net income of $125K for the quarter and a turnaround to $66K net income for the nine months, compared to a loss in the prior year.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison of asset and deposit levels. Total assets were $358.96M and total deposits were $309.19M.
• 2024-09-30: End of Q3 and Nine-Month Period 2024 — Prior year comparison period, showing a net income of $129K for the quarter and a net loss of $72K for the nine months.

Glossary

VA Wholesale Mortgage Incorporated (VAWM)

A company acquired by Glen Burnie Bancorp engaged in residential mortgage banking, lending, and brokerage services. (Represents a strategic acquisition aimed at expanding the company's mortgage business and generating new fee income.)

Noninterest-bearing deposits

Customer deposits that do not earn interest, typically checking accounts. (An increase in these deposits ($107.37M as of Sep 30, 2025) indicates growth in core customer relationships and provides a stable, low-cost funding source.)

Interest-bearing deposits

Customer deposits that earn interest, such as savings accounts, money market accounts, and certificates of deposit. (An increase in these deposits ($221.70M as of Sep 30, 2025) reflects growth in customer balances and contributes to the bank's funding base, though at a higher cost than noninterest-bearing deposits.)

Allowance for credit losses

An estimate of the amount of loans that may not be repaid by borrowers. (A decrease in this allowance from $2.84M to $2.57M suggests improved credit quality or a more optimistic outlook on loan portfolio performance.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (The appearance of $317K in goodwill on the balance sheet signifies the accounting impact of the VAWM acquisition.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Glen Burnie Bancorp has shown a significant improvement in profitability, turning a net loss of $72K into a net income of $66K. Total assets have slightly decreased from $358.96M to $351.79M, while total deposits have grown by $19.88M to $329.07M, indicating a stronger core funding base. The company has also introduced a new revenue stream through mortgage commissions following the VAWM acquisition, though this is offset by a decrease in interest income from securities and a substantial reduction in short-term borrowings which impacted cash flows.

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share GLBZ The NASDAQ Stock Mar

Filing Documents

• glbz-20250930x10q.htm (10-Q) — 4494KB
• glbz-20250930xex31d1.htm (EX-31.1) — 17KB
• glbz-20250930xex31d2.htm (EX-31.2) — 17KB
• glbz-20250930xex32.htm (EX-32) — 12KB
• 0001104659-25-112301.txt ( ) — 17391KB
• glbz-20250930.xsd (EX-101.SCH) — 46KB
• glbz-20250930_cal.xml (EX-101.CAL) — 57KB
• glbz-20250930_def.xml (EX-101.DEF) — 195KB
• glbz-20250930_lab.xml (EX-101.LAB) — 362KB
• glbz-20250930_pre.xml (EX-101.PRE) — 346KB
• glbz-20250930x10q_htm.xml (XML) — 5142KB

Financial Statements

Financial Statements : Consolidated Balance Sheets : As of September 30, 2025 (unaudited) and December 31, 2024 (audited) 4 Consolidated Statements of Income (Loss): Three- and Nine-months Ended September 30, 2025 and 2024 (unaudited) 5 Consolidated Statements of Comprehensive Income (Loss): Three- and Nine-months Ended September 30, 2025 and 2024 (unaudited) 6 Consolidated Statements of Changes in Stockholders' Equity : Nine-months Ended September 30, 2025 and 2024 (unaudited) 7 Consolidated Statements of Cash Flows: Nine-months Ended September 30, 2025 and 2024 (unaudited) 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 46 Part II. OTHER INFORMATION 47 Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1 A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3. Defaults Upon Senior Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48

SIGNATURES

SIGNATURES 49 - 3 - Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS GLEN BURNIE BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (dollars in thousands) September 30, December 31, 2025 2024 (unaudited) (audited) ASSETS Cash and due from banks $ 2,359 $ 2,012 Interest-bearing deposits in other financial institutions and federal funds sold 9,868 22,452 Cash and Cash Equivalents 12,227 24,464 Investment securities available for sale, at fair value 104,141 107,949 Restricted equity securities, at cost 251 1,671 Loans, net of deferred fees and costs 215,320 205,219 Less: Allowance for credit losses ( 2,568 ) ( 2,839 ) Loans, net 212,752 202,380 Premises and equipment, net 2,463 2,678 Bank owned life insurance 8,966 8,834 Deferred tax assets, net 7,475 8,548 Accrued interest receivable 1,340 1,345 Accrued taxes receivable 310 148 Prepaid expenses 434 471 Goodwill 317 — Other assets 1,118 468 Total Assets $ 351,794 $ 358,956 LIABILITIES Noninterest-bearing deposits $ 107,368 $ 100,747 Interest-bearing deposits 221,701 208,442 Total Deposits 329,069 309,189 Short-term borrowings — 30,000 Defined pension liability 341 330 Accrued expenses and other liabilities 1,655 1,620 Total Liabilities 331,065 341,139 STOCKHOLDERS' EQUITY Common stock, par value $ 1 , authorized 15,000,000 shares, issued and outstanding 2,919,695 and 2,900,681 shares as of September 30, 2025 and December 31, 2024 respectively 2,920 2,901 Additional paid-in capital 11,119 11,037 Deferred compensation, restricted stock ( 84 ) — Retained earnings 22,948 22,882 Accumulated other comprehensive loss ( 16,174 ) ( 19,003 ) Total Stockholders' Equity 20,729 17,817 Total Liabilities and Stockholders' Equity $ 351,794 $ 358,956 See accompanying notes to unaudited consolidated financial statements. - 4 - Table of Contents GLEN BURNIE BANCORP AND S

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATIONAL Nature of Business Glen Burnie Bancorp (the "Company") is a bank holding company organized in 1990 under the laws of the State of Maryland. The Company owns all the outstanding shares of capital stock of The Bank of Glen Burnie (the "Bank"), a commercial bank organized in 1949 under the laws of the State of Maryland (the "State"). The Bank provides financial services to individuals and corporate customers located in Anne Arundel County and surrounding areas of Central Maryland and is subject to competition from other financial institutions. The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. As of the close of business on August 15, 2025, The Bank of Glen Burnie completed the acquisition of VA Wholesale Mortgage Incorporated ("VAWM"), a Virginia corporation engaged in residential mortgage banking, lending, and brokerage services. VAWM currently is licensed to operate in four states, including Maryland, and is expected to enhance overall mortgage lending products and services through the Company's footprint. NOTE 2 – BASIS OF PRESENTATION In management's opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at September 30, 2025 and December 31, 2024, the results of operations for the three- and nine-month periods ended September 30, 2025 and 2024, and the statements of cash flows for the nine-month periods ended September 30, 2025 and 2024. The operating results for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative of the results that may be expecte

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