GLEN BURNIE BANCORP
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 14, 2025
GLBZ$4.57+0.4%Stored close · as of Jul 8, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001558370-25-011525
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001104659-25-112301
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 95 previous paragraphs and 97 current paragraphs.
62 unchanged; 27 reworded; 6 added; 5 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 69 previous and 73 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Recent Tax Legislation. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA extends or makes permanent a number of provisions originally enacted in the 2017 Tax Cuts and Jobs Act and introduces new items affecting both individuals and businesses. Topic 740, Income Taxes, of the FASB Accounting Standards Codification requires the effects of newly enacted tax law to be recognized in the period of enactment. We are continuing to evaluate OBBBA’s impact on our deferred tax assets and liabilities, effective tax rate, and tax-related processes (e.g., payroll reporting for qualifying wage items). Based on preliminary analysis, we do not currently expect the OBBBA to have a material impact on our 2025 estimated annual effective tax rate or on our consolidated financial statements, but our evaluation is ongoing.
Current report
FDIC Assessment Changes. In 2025, the FDIC proposed and, in some cases, implemented changes to the assessment base and methodology for deposit insurance premiums. These changes are intended to ensure the continued strength of the Deposit Insurance Fund and to reflect evolving risk profiles in the banking industry. While our FDIC assessment expense declined modestly during the period, we are closely monitoring ongoing regulatory developments and proposals that could impact the calculation or level of future assessments. Any material changes to the FDIC assessment framework could affect our cost of funds and overall operating expenses.
Current report
Community Reinvestment Act (CRA) Developments. Federal banking regulators have proposed rescinding the 2023 CRA modernization rule and reinstating the prior 1995 framework, with certain technical updates. If finalized, this rollback could affect how we assess and report our CRA activities and obligations in our markets. We are actively monitoring the rulemaking process and will evaluate and implement any required changes to our CRA compliance program to ensure continued alignment with regulatory expectations.
Current report
Non-interest income during the three-month period ended September 30, 2025, was $571,000, a $217,000 increase from $354,000 during the same period in 2024. The increase was primarily related to mortgage commissions from VAWM in the amount of $192,000 and increased other fees and commissions of $24,000, and a slight increase in service charges of $1,000.
Current report
represented 51% of our average earning assets where in the nine-month period ended September 30, 2025, loans represented 59% of our average earning assets.
Current report
Non-interest income increased $171,000 during the nine-month period ended September 30, 2025, to $996,000 from $825,000 during the same period in 2024. The $171,000 increase was primarily related to $192,000 in mortgage commissions from VAWM, offset by lower service charges of $7,000 and lower other fees and commissions of $14,000.
Removed paragraphs (5)
Previous report
Non-interest income during the three-month period ended June 30, 2025 was $220,000, a $21,000 decrease from $241,000 during the same period in 2024. The decrease was primarily related to other fees and commissions which decreased $20,000 largely due to lower levels of ATM usage and interchange fees.
Previous report
interest expense and 94 basis points less in yield partially offsetting the increase in interest on deposits between the two periods.
Previous report
Non-interest income decreased $46,000 during the six-month period ended June 30, 2025, to $425,000 from $471,000 during the same period in 2024. The $46,000 decrease was primarily related to other fees and commissions which decreased $38,000 largely due to lower levels of ATM and usage and interchange fees plus a reduction of services charges on deposit accounts of $8,000.
Previous report
●Legal, accounting, other professional fees increased $160,000 between the two periods due to additional costs related to internal audit and to professional fees associated with the launch of our new credit card program that were partially offset by reductions in data processing and item processing services of $12,000 in the first six months of 2025 when compared to the same period in 2024.
Previous report
●All other expenses increased $180,000 in the second quarter of 2025 when compared to the same quarter of 2024 due to growth and inflationary impacts.
Reworded paragraphs (27)
Previous wording
This report, including information included or incorporated by reference in this report, contains statements which constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may relate to, among other matters, the financial condition, results of operations, plans, objectives, future performance, and business of our company. Forward-looking statements are based on many assumptions and estimates and are not guarantees of future performance. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. The words “may,” “approximately,” “is likely,” “would,” “could,” “should,” “will,” “expect,” “anticipate,” “predict,” “project,” “potential,” “continue,” “assume,” “believe,” “intend,” “plan,” “forecast,” “goal,” and “estimate,” as well as similar expressions, are meant to identify such forward-looking statements. Potential risks and uncertainties that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, without limitation, the following:
Current wording
This report, including information included or incorporated by reference in this report, contains statements which constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may relate to, among other matters, the financial condition, results of operations, plans, objectives, future performance, and business of our company. Forward-looking statements are based on many assumptions and estimates and are not guarantees of future performance. Our actual results may differ materially from those anticipated in any forward-looking statements, as they will depend on many factors about which we are unsure, including many factors which are beyond our control. The words “may,” “approximately,” “is likely,” “would,” “could,” “should,” “will,” “expect,” “anticipate,” “predict,” “project,” “potential,” “continue,” “assume,” “believe,” “intend,” “plan,” “forecast,” “goal,” and “estimate,” as well as similar expressions, are meant to identify such forward-looking statements. Potential risks and uncertainties that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, without limitation, those described under the heading “Risk Factors” in our Annual Report on in Form 10-K, for the year ended December 31, 2004 as filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 28, 2025, and the following:
Previous wording
The following discussion describes our results of operations for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024 and analyzes our financial condition as of June 30, 2025 as compared to December 31, 2024. Like most community banks, we derive most of our income from interest we receive on our loans and investments. Our primary sources of funds for making these loans and investments are our deposits and borrowings, on which we pay interest. Consequently, one of the key measures of our success is our amount of net interest income, or the difference between the income on our interest-earning assets, such as loans and investments, and the expense on our interest-bearing liabilities, such as deposits and borrowings. Another key measure is the spread between the yield we earn on our interest-earning assets and the rate we pay on our interest-bearing liabilities. There are risks inherent in all loans, so we maintain an allowance for credit losses to absorb our estimate of expected credit losses on existing loans that
Current wording
The following discussion describes our results of operations for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024 and analyzes our financial condition as of September 30, 2025 as compared to December 31, 2024. Like most community banks, we derive most of our income from interest we receive on our loans and investments. Our primary sources of funds for making these loans and investments are our deposits and borrowings, on which we pay interest. Consequently, one of the key measures of our success is our amount of net interest income, or the difference between the income on our interest-earning assets, such as loans and investments, and the expense on our interest-bearing liabilities, such as deposits and borrowings. Another key measure is the spread between the yield we earn on our interest-earning assets and the rate we pay on our interest-bearing liabilities. There are risks inherent in all loans, so we maintain an allowance for credit losses to absorb our estimate of expected credit losses on existing loans that may become uncollectible. We establish and maintain this allowance by recording a provision for or release of credit losses against our earnings. In the following section, we have included a detailed discussion of this process.
Previous wording
Effect of Governmental Monetary Policies. Our earnings are affected by domestic economic conditions and the monetary and fiscal policies of the United States government and its agencies. The Federal Reserve’s monetary policies have had, and are likely to continue to have, an important impact on the operating results of commercial banks through its power to implement national monetary policy in order, among other things, to curb inflation or combat a recession. The monetary policies of the Federal Reserve have major effects upon the levels of bank loans, investments, deposits and borrowings through its open market operations in United States government securities and through its regulation of the discount rate on borrowings of member banks and the reserve requirements against member banks’ deposits. It is not possible to predict the nature or impact of future changes in monetary and fiscal policies. The target rate range of federal funds was 5.25% - 5.50% from July 26, 2023, to September 17, 2024. On September 18, 2024, the FOMC reduced the target range of federal funds by 0.50% to 4.75% - 5.00%. There were two additional 25 basis point cuts to the target rate range of federal funds during the fourth quarter of 2024, lowering the target rate range to 4.25% - 4.50% at June 30, 2025, compared to 5.25% - 5.50% at June 30, 2024. Changes in market interest rates can have a significant impact on the level of income and expense recorded on a large portion of our interest-earning assets and interest-bearing liabilities, and on the market value of all interest-earning assets, other than those possessing a short term to maturity. Furthermore, changes in market interest rates can have a significant impact on the level of mortgage originations and related mortgage banking income.
Current wording
Effect of Governmental Monetary Policies. Our earnings are affected by domestic economic conditions and the monetary and fiscal policies of the United States government and its agencies. The Federal Reserve’s monetary policies have had, and are likely to continue to have, an important impact on the operating results of commercial banks through its power to implement national monetary policy in order, among other things, to curb inflation or combat a recession. The monetary policies of the Federal Reserve have major effects upon the levels of bank loans, investments, deposits and borrowings through its open market operations in United States government securities and through its regulation of the discount rate on borrowings of member banks and the reserve requirements against member banks’ deposits. It is not possible to predict the nature or impact of future changes in monetary and fiscal policies. In September 2024 the Federal
Previous wording
Glen Burnie Bancorp, a Maryland corporation (the “Company”), through its subsidiary, The Bank of Glen Burnie, a Maryland banking corporation (the “Bank”), operates a commercial bank with six offices in Anne Arundel County Maryland. The Company reported a net loss attributable to common stockholders for the three-month period ended June 30, 2025, of -$212,000, or $(0.07) per basic and diluted share compared to a net loss of $204,000, or $(0.07) per basic and diluted share for the three-month period June 30, 2024. When compared to the second quarter of 2024, there were a number of offsetting differences that resulted in a net loss increase of $8,000.
Current wording
Glen Burnie Bancorp, a Maryland corporation (the “Company”), through its subsidiary, The Bank of Glen Burnie, a Maryland banking corporation (the “Bank”), operates a commercial bank with six offices in Anne Arundel County Maryland. The Company reported net income attributable to common stockholders for the three-month period ended September 30, 2025, of $125,000, or $0.04 per basic and diluted share compared to net income of $129,000, or $0.04 per basic and diluted share for the three-month period September 30, 2024. When compared to the third quarter of 2024, there were a number of offsetting differences that resulted in a net decrease of $4,000.
Previous wording
Net interest income decreased $50,000, or 1.8%, to $2.7 million for the three months ended June 30, 2025, from $2.8 million for the three months ended June 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.13% for the three months ended June 30, 2025, compared to 3.10% for the three months ended June 30, 2024. Average earning assets were $359.3 million for the three months ended June 30, 2025, and $370.9 million in the same period of 2024.
Current wording
Net interest income increased $10,000, or 0.4%, to $2.8 million for the three months ended September 30, 2025, from $2.8 million for the three months ended September 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.24% for the three months ended September 30, 2025, compared to 3.14% for the three months ended September 30, 2024. Average earning assets were $354.9 million for the three months ended September 30, 2025, and $366.2 million in the same period of 2024.
Previous wording
The total allowance for credit losses (ACL) is composed of two parts: the ACL for loans and the ACL for unfunded commitments. The ACL for loans is further composed of the allowance for individually assessed loans, the allowance for collectively assessed expected losses, the allowance for collectively assessed qualitative adjustments, and the allowance for collectively assessed additional allowance. For the second quarter of 2025, the provision for credit loss allowance was $79,000 comprised of $57,000 release of ACL for loans and $136,000 provision of ACL for unfunded commitments. This compared to a provision for credit loss allowance of $600,000 for the second quarter of 2024 comprised of $526,000 provision of ACL for loans and $74,000 provision of ACL for unfunded commitments.
Current wording
The total allowance for credit losses (ACL) is composed of two parts: the ACL for loans and the ACL for unfunded commitments. The ACL for loans is further composed of the allowance for individually assessed loans, the allowance for collectively assessed expected losses, the allowance for collectively assessed qualitative adjustments, and the allowance for collectively assessed additional allowance. For the third quarter of 2025, the provision for credit loss allowance was $44,000 comprised of $74,000 provision for ACL for loans and $30,000 release of ACL for unfunded commitments. This compared to a provision for credit loss allowance of $105,000 for the third quarter of 2024 comprised of $78,000 provision of ACL for loans and $27,000 provision of ACL for unfunded commitments.
Previous wording
Non-interest expense increased $432,000 during the three months ended June 30, 2025 to $3.3 million compared to $2.8 million during the second quarter of 2024 primarily due to the following:
Current wording
Non-interest expense increased $280,000 during the three months ended September 30, 2025 to $3.3 million compared to $3.0 million during the third quarter of 2024 primarily due to the following:
Previous wording
In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income (loss), adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the second quarter of 2025, the comprehensive loss, net of tax, totaled $248,000 compared to a comprehensive loss in the amount of $400,000 for the same period in 2024. The $152,000 decrease in comprehensive loss was due to a $160,000 net of tax decrease in unrealized losses on securities for the quarter ended June 30, 2025, compared to the amount of after-tax unrealized losses on securities for the comparable prior year period, and to the increase of $8,000 in reported net loss for the second quarter of 2025 over the second quarter of 2024.
Current wording
In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income (loss), adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the third quarter of 2025, the comprehensive income, net of tax, totaled $1.8 million compared to comprehensive income in the amount of $3.8 million for the same period in 2024. The $2.2 million decrease in comprehensive income was due to a $2.2 million net of tax decrease in unrealized losses on securities for the quarter ended September 30, 2025, compared to the amount of after-tax unrealized losses on securities for the comparable prior year period, and to the decrease of $4,000 in reported net income for the third quarter of 2025 over the third quarter of 2024.
Previous wording
COMPARISON OF RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2025, TO THE SIX MONTHS ENDED JUNE 30,2024
Current wording
COMPARISON OF RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025, TO THE NINE MONTHS ENDED SEPTEMBER 30,2024
Previous wording
Our net loss attributable to common stockholders for the six-month period ended June 30, 2025, of $59,000, or $(0.02) per basic and diluted share compared to a net loss of $201,000, or $(0.07) per basic and diluted share for the six-month period ended June 30, 2024. The decrease in net loss between the two periods is primarily due to the factors noted below.
Current wording
Our net income attributable to common stockholders for the nine-month period ended September 30, 2025, of $66,000, or $0.02 per basic and diluted share, compared to a net loss of $72,000, or $(0.02) per basic and diluted share
Previous wording
Net interest income decreased $58,000, or 1.1%, to $5.3 million for the six months ended June 30, 2025, from $5.4 million for the six months ended June 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.06% for the six months ended June 30, 2025, compared to 3.02% for the six months ended June 30, 2024. Average earning assets were $357.7 million for the six months ended June 30, 2025, and $366.5 million in the same period of 2024.
Current wording
Net interest income decreased $48,000, or 0.6%, to $8.1 million for the nine months ended September 30, 2025, from $8.2 million for the nine months ended September 30, 2024. Our net interest margin, on a taxable equivalent basis, was 3.12% for the nine months ended September 30, 2025, compared to 3.06% for the nine months ended September 30, 2024. Average earning assets were $356.8 million for the nine months ended September 30, 2025, and $366.4 million in the same period of 2024.
Previous wording
The total allowance for credit losses (ACL) is composed of two parts: The ACL for loans and the ACL for unfunded commitments. The ACL for loans is further composed of the allowance for individually assessed loans, the allowance for collectively assessed expected losses, the allowance for collectively assessed qualitative adjustments, and the allowance for collectively assessed additional allowance. For the six months ended June 30, 2025, the release for credit loss allowance was $541,000 comprised of $203,000 release of ACL for loans and $338,000 release of ACL for unfunded commitments. This compared to a provision for credit loss allowance of $792,000 for the six months ended June 30,2024 comprised of $694,000 provision of ACL for loans and $97,000 provision of ACL for unfunded commitments.
Current wording
The total allowance for credit losses (ACL) is composed of two parts: The ACL for loans and the ACL for unfunded commitments. The ACL for loans is further composed of the allowance for individually assessed loans, the allowance for collectively assessed expected losses, the allowance for collectively assessed qualitative adjustments, and the allowance for collectively assessed additional allowance. For the nine months ended September 30, 2025, the release for credit loss allowance was $498,000 comprised of $128,000 release of ACL for loans and $369,000 release of ACL for unfunded commitments. This compared to a provision for credit loss allowance of $897,000 for the nine months ended September 30,2024 comprised of $773,000 provision for ACL for loans and $124,000 provision for ACL for unfunded commitments.
Previous wording
Non-interest expense increased $858,000 during the six-months ended June 30, 2025, to $6.5 million compared to $5.7 million for the six-month period ended June 30, 2024, primarily due to the following:
Current wording
Non-interest expense increased $1.1 million during the nine-months ended September 30, 2025, to $9.8 million compared to $8.6 million for the nine-month period ended September 30, 2024, primarily due to the following:
Previous wording
In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income (loss), adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the first six months of 2025, the comprehensive income, net of tax, totaled $1.1 million compared to a comprehensive loss in the amount of $1.3 million for the same period in 2024. The $2.5 million improvement between the two periods was due to a $2.3 million net of tax increase in unrealized income on securities for the first six months of 2025, compared to the amount of after-tax unrealized losses on securities for the comparable prior year period and to the decrease of $142,000 in reported net loss for the first six months of 2025 over the same period in 2024.
Current wording
In accordance with regulatory requirements, the Company reports comprehensive income (loss) in its financial statements. Comprehensive income (loss) consists of the Company’s net income (loss), adjusted for unrealized gains and losses on the Bank’s portfolio of investment securities. For the first nine months of 2025, the comprehensive income, net of tax, totaled $2.9 million compared to comprehensive income in the amount of $2.6 million for the same period in 2024. The $285,000 improvement between the two periods was due to a $147,000 net of tax increase in unrealized losses on securities for the first nine months of 2025, compared to the amount of after-tax unrealized losses on securities for the comparable prior year period, and to the increase of $138,000 in reported net income for the first nine months of 2025 over the same period in 2024.
Previous wording
Total assets were $351.0 million on June 30, 2025, a decrease of $8.2 million from December 31, 2024. Cash and cash equivalents decreased by $11.8 million or 48.2%, during the first six months of 2025. The Bank’s loan portfolio increased by $8.1 million or 4.0%, and investment securities available for sale declined by $3.4 million or 3.1% over the same period. The Company’s allowance for credit losses was $2.59 million as of June 30, 2025, compared to $2.84 million at December 31, 2024, a decrease of $252,000 or 8.9%. Total deposits increased $8.1 million, or 2.6%, during the first six months of 2025 and short-term borrowings decreased by $17.0 million to $13.0 million on June 30, 2025, from $30.0 million at year end 2024. Stockholder’s equity was $18.9 million on June 30, 2025, a $1.1 million or
Current wording
Total assets were $351.8 million on September 30, 2025, a decrease of $7.2 million from December 31, 2024. Cash and cash equivalents decreased by $12.2 million or 50%, during the first nine months of 2025. The Bank’s loan portfolio increased by $10.1 million or 4.9%, and investment securities available for sale declined by $5.2 million or 4.8% over the same period. The Company’s allowance for credit losses was $2.57 million as of September 30, 2025,
Previous wording
6.2% increase, as compared to $17.8 million on December 31, 2024. The increase was primarily due to unrealized losses, net of taxes, on securities available for sale amounting to $17.8 million on June 30, 2025, compared to $19.0 million at December 31, 2024.
Current wording
compared to $2.84 million at December 31, 2024, a decrease of $271,000, or 9.5%. Total deposits increased $19.9 million, or 6.4%, during the first nine months of 2025 and short-term borrowings decreased by $30.0 million as the Company paid off all borrowings by September 30, 2025. Stockholder’s equity was $20.7 million on September 30, 2025, a $2.91 million or 16.3% increase, as compared to $17.8 million on December 31, 2024. The increase was primarily due to unrealized losses, net of taxes, on securities available for sale amounting to $16.2 million on September 30, 2025, compared to $19.0 million at December 31, 2024.
Previous wording
Return on average assets for the three-and six-month periods ended June 30, 2025, was -0.24% and -0.03% compared to -0.22% and -0.11% for the three- and six-month periods ended June 30, 2024. Return on average equity for the three- and six-month periods ended June 30, 2025, was -4.30% and -0.61% compared to -4.72%and -2.22% for the three- and six-month periods ended June 30, 2024.
Current wording
Return on average assets for the three-and nine-month periods ended September 30, 2025, was 0.14% and 0.02% compared to 0.14% and -0.03% for the three- and nine-month periods ended September 30, 2024. Return on average equity for the three- and nine-month periods ended September 30, 2025, was 2.64% and -0.47% compared to -2.75% and -0.52% for the three- and nine-month periods ended September 30, 2024.
Previous wording
The book value per share of Bancorp’s common stock was $6.53 on June 30, 2025, as compared to $6.14 per share on December 31, 2024. The increase was the result of lower unrealized losses on the Company’s available for sale securities of $17.8 million at June 30, 2025 compared to $19.0 million at December 31, 2024.
Current wording
The book value per share of Bancorp’s common stock was $7.10 on September 30, 2025, as compared to $6.14 per share on December 31, 2024. The increase was the result of lower unrealized losses on the Company’s available for sale securities of $16.2 million at September 30, 2025, compared to $19.0 million at December 31, 2024.
Previous wording
As of June 30, 2025, the Bank remained above all “well-capitalized” regulatory requirement levels. The Company has strong liquidity and capital positions that provide ample capacity for future growth. The Bank’s total regulatory capital to risk weighted assets was 16.1% on June 30, 2025, as compared to 16.4% on December 31, 2024. The Bank’s tier 1 risk-based capital ratio was 14.9% at June 30, 2025, compared to 15.2% at December 31, 2024.
Current wording
As of September 30, 2025, the Bank remained above all “well-capitalized” regulatory requirement levels. The Company has strong liquidity and capital positions that provide ample capacity for future growth. The Bank’s total regulatory capital to risk weighted assets was 15.96% on September 30, 2025, as compared to 16.40% on December 31, 2024. The Bank’s tier 1 risk-based capital ratio was 14.82% on September 30, 2025, compared to 15.15% on December 31, 2024. The Bank’s leverage ratio was 9.67% on September 30, 2025, compared to 9.97% on December 31, 2024.
Previous wording
At June 30, 2025, impaired loans totaled $2.4 million, net of specific reserves. Included in the impaired loans total was $1.1 million in loans classified as nonaccrual loans. At June 30, 2025, impaired loans included restructured loans to borrowers with financial difficulty totaling $24,000. Borrowers under all other restructured loans are paying in accordance with the terms of the modified loan agreement and have been placed on accrual status after a period of performance with the restructured terms.
Current wording
At September 30, 2025, impaired loans totaled $2.5 million, net of specific reserves. Included in the impaired loans total was $1.2 million in loans classified as nonaccrual loans. At September 30, 2025, impaired loans included restructured loans to borrowers with financial difficulty totaling $23,000. Borrowers under all other restructured loans are paying in accordance with the terms of the modified loan agreement and have been placed on accrual status after a period of performance with the restructured terms.
Previous wording
For the six months ended June 30, 2025, the Bank accrued $257,000 for its projected 401(k) match contribution as well as other profit sharing benefits.
Current wording
For the nine months ended September 30, 2025, the Bank accrued $382,000 for its projected 401(k) match contribution as well as other profit-sharing benefits.
Previous wording
The Company currently has no business other than that of the Bank and does not currently have any material funding commitments. The Company’s principal sources of liquidity are cash on hand and dividends received from the Bank. The Bank is subject to various regulatory restrictions on the payment of dividends.
Current wording
The Company currently owns the Bank and a residential mortgage banking and brokerage company and does not currently have any material funding commitments. The Company’s principal sources of liquidity are cash on hand and dividends received from the Bank. The Bank is subject to various regulatory restrictions on the payment of dividends and currently must receive prior approval to pay dividends to the Company due to a limit on current and two prior years’ retained earnings.
Previous wording
The Bank’s principal sources of funds for investments and operations are net income, deposits from its primary market area, principal and interest payments on loans, interest received on investment securities and proceeds from maturing investment securities. Its principal funding commitments are for the origination or purchase of loans and the payment of maturing deposits. Deposits are considered a primary source of funds supporting the Bank’s lending and investment activities.
Current wording
The Bank’s principal sources of funds for investments and operations are net income, deposits from its primary market area, principal and interest payments on loans, interest received on investment securities and proceeds from maturing investment securities. Its principal funding commitments are for the origination or purchase of loans, deposit withdrawals, and the payment of maturing deposits. Deposits are considered a primary source of funds supporting the Bank’s lending and investment activities.
Previous wording
The Bank’s most liquid assets are cash and cash equivalents, which are cash on hand, amounts due from financial institutions, federal funds sold, certificates of deposit with other financial institutions that have an original maturity of three months or less and money market mutual funds. The levels of such assets are dependent on the Bank’s operating, financing, and investment activities at any given time. The variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows. The Bank’s cash and cash equivalents (cash due from banks, interest-bearing deposits in other financial institutions, and federal funds sold), as of June 30, 2025, totaled $12.7 million, a decrease of $11.8 million, or 48.2% from $24.5 million at December 31, 2024.
Current wording
The Bank’s most liquid assets are cash and cash equivalents, which are cash on hand, amounts due from financial institutions, federal funds sold, certificates of deposit with other financial institutions that have an original maturity of three months or less and money market mutual funds. The levels of such assets are dependent on the Bank’s operating, financing, and investment activities at any given time. The variations in levels of cash and cash equivalents are influenced by deposit flows and anticipated future deposit flows. The Bank’s cash and cash equivalents (cash due from banks, interest-bearing deposits in other financial institutions, and federal funds sold), as of September 30, 2025, totaled $12.2 million, a decrease of $12.2 million, or 50.0% from $24.5 million at December 31, 2024.
Previous wording
As of June 30, 2025, the Bank was permitted to draw on an $89.5 million line of credit from the FHLB of Atlanta. Short-term borrowings under the line totaled $13.0 million and $30.0 million at June 30, 2025 and December 31, 2024, respectively. Borrowings under the line are secured by a floating lien on the Bank’s residential mortgage loans and investment securities. As of June 30, 2025 and December 31, 2024, the Bank had $0 in outstanding short-term borrowings from the Federal Reserve Bank (“FRB”) discount window. Borrowings under the line are secured by qualifying collateral.
Current wording
As of September 30, 2025, the Bank was permitted to draw on an $87.7 million line of credit from the FHLB of Atlanta. There were no short-term borrowings outstanding under the line on September 30, 2025 as compared to $30 million of borrowings on the line at December 31, 2024. Borrowings under the line are secured by a floating lien on the Bank’s residential mortgage loans and investment securities. As of September 30, 2025, and December 31, 2024, the Bank had $0 in outstanding short-term borrowings from the Federal Reserve Bank (“FRB”) discount window. Borrowings under the line are secured by qualifying collateral.
Previous wording
The Company’s stockholders’ equity increased $1.1 million, or 6.3% during the six-month period ended June 30, 2025. The increase in equity was primarily due to a $1.2 million decrease in the after-tax net unrealized holding loss on securities available for sale and the $212,000 net loss in the period ended June 30, 2025.
Current wording
The Company’s stockholders’ equity increased $2.9 million, or 16.3% during the nine-month period ended September 30, 2025. The increase in equity was primarily due to a $2.8 million decrease in the after-tax net unrealized holding loss on securities available for sale, the $66,000 net income in the nine-month period, and $17,000 of stock- based compensation expense during the nine-month period ended September 30, 2025.
Previous wording
The regulations impose several sets of capital adequacy requirements: minimum leverage rules, which require bank holding companies and banks to maintain a specified minimum ratio of capital to total assets, and risk-based capital rules, which require the maintenance of specified minimum ratios of capital to “risk-weighted” assets. In addition, there are requirements to maintain a capital conservation buffer which raised the minimum required common equity Tier 1 capital ratio to 7.00%, the Tier 1 capital ratio to 8.50% and the total capital ratio to 10.50%. At June 30, 2025, the Bank was in full compliance with these guidelines with a Tier 1 leverage ratio of 9.59%, a Tier 1 risk-based capital ratio of 14.91%, a common equity Tier 1 risk-based capital ratio of 14.91%, and a total risk-based capital ratio of 16.06%.
Current wording
The regulations impose several sets of capital adequacy requirements: minimum leverage rules, which require bank holding companies and banks to maintain a specified minimum ratio of capital to total assets, and risk-based capital rules, which require the maintenance of specified minimum ratios of capital to “risk-weighted” assets. In addition, there are requirements to maintain a capital conservation buffer which raised the minimum required common equity Tier 1 capital ratio to 7.00%, the Tier 1 capital ratio to 8.50% and the total capital ratio to 10.50%. At September 30, 2025, the Bank was in full compliance with these guidelines with a Tier 1 leverage ratio of 9.67%, a Tier 1 risk-based capital ratio of 14.82%, a common equity Tier 1 risk-based capital ratio of 14.82%, and a total risk-based capital ratio of 15.96%.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Reserve Bank began lowering interest rates in response to easing inflation and slowing growth. While lower rates can support loan demand, they may also compress net interest margins. The Federal Reserve has announced ending balance sheet reduction, which may contribute to some funding and market volatility. Changes in market interest rates can have a significant impact on the level of income and expense recorded on a large portion of our interest-earning assets and interest-bearing liabilities, and on the market value of all interest-earning assets, other than those possessing a short term to maturity. Furthermore, changes in market interest rates can have a significant impact on the level of mortgage originations and related mortgage banking income.
Current report — wording carried from elsewhere
for the nine-month period ended September 30, 2024. The decrease in net loss between the two periods is primarily due to the factors noted below.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
may become uncollectible. We establish and maintain this allowance by recording a provision for or release of credit losses against our earnings. In the following section, we have included a detailed discussion of this process.