GLBZ

Glen Burnie Bancorp($GLBZ) CEO Continues Buying Spree Despite Net Loss, Acquires Over $50,000 in Shares Within Past Year

05/21/2025 14:58

Glen Burnie Bancorp's ($GLBZ) President and CEO Mark Hanna has been aggressively buying shares of the small Maryland-based bank, catching the attention of value investors. According to SEC Form 4 filings this week, Hanna purchased an additional 2,729 shares between May 14-20 at an average price of $5.04, representing approximately $13,777 in personal investment. This recent buying spree continues a consistent pattern of insider purchasing by Hanna over the past year. The CEO bought about 1,000 shares when the stock was trading between $3.75-4.05 in June 2023, followed by larger acquisitions of 3,700 shares ($21,830) in November 2024 and 3,000 shares ($14,985) in March 2025. Director Stanford Hess also joined the buying activity, purchasing 900 shares ($4,545) recently and 1,000 shares last June. The small regional bank, with a market capitalization of approximately $15 million, has seen its share price fluctuate considerably over the past six months, rising to around $6 in December 2024 before falling to $4.60 in late January 2025 and now trading around the $5 mark. Notably, the stock experienced a sharp dip to $4.10 on May 7 before quickly recovering. What makes these insider purchases particularly intriguing is the bank's current financial challenges. Glen Burnie Bancorp reported a net loss of $112,000 (-$0.04 per share) for fiscal year 2024, a significant decline from its $1.43 million profit in 2023. In March 2025, the company also disclosed a non-timely filing of its 10-K report with the SEC. Profitability remains extremely thin, with trailing twelve-month net income of just $38,000 (a profit margin of 0.33%). Return on equity (ROE) stands at a meager 0.20%, while return on assets (ROA) is just 0.01%—both well below industry averages for banks. Management has suspended dividend payments to preserve capital amid these earnings challenges. Despite these headwinds, some fundamental business metrics show improvement. The loan portfolio grew 16.4% year-over-year to $205.2 million, while deposits increased 3.04% to $309.2 million. However, net interest margin compressed from 3.31% in 2023 to 2.98% in 2024, reflecting the challenging interest rate environment. The stock currently trades at approximately $5.08, representing about 83% of its book value of $6.14 per share (P/B ratio of 0.77). While GLBZ has underperformed over a five-year period with returns of -45.82%, it has shown modest improvement over the past year with a 4.52% gain. "Small regional banks have been facing headwinds from changing interest rate environments and increased regulatory scrutiny," explained David Feaster, small-cap regional bank analyst at Raymond James. "In this context, consistent insider buying often signals management's belief that the stock is trading below intrinsic value. When a CEO invests his own money multiple times over a year, it typically indicates strong confidence in the company's long-term prospects." Despite the loan portfolio growth and insider confidence signaled through stock purchases, investors should monitor Glen Burnie Bancorp's path to profitability recovery and potential dividend reinstatement. Additional information regarding the delayed 10-K filing will also be an important factor to watch. Banking industry experts anticipate an improved interest rate environment and increased M&A activity in 2025, which could present opportunities for small regional banks like GLBZ. The consistent insider buying may suggest management's confidence in positioning the company to capitalize on these trends. At current price levels, Glen Burnie Bancorp may represent an interesting consideration for long-term value investors, though near-term profitability improvement remains uncertain.

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