Financial Performance - The Company reported net income of $153,000 for the three-month period ended March 31, 2025, compared to $3,000 for the same period in 2024, primarily due to a $315,000 decrease in the provision for credit loss allowance [104]. - Comprehensive income for the first quarter of 2025 totaled $1.4 million, compared to a comprehensive loss of $0.9 million for the same period in 2024, reflecting a $2.3 million increase [124]. - The income tax benefit for the three-month period ended March 31, 2025, was $29,000, a decrease of $203,000 or 87.5% compared to $232,000 in 2024, primarily due to a $353,000 increase in pre-tax income [123]. Assets and Liabilities - Total assets decreased to $358.0 million on March 31, 2025, a decrease of $1.0 million from December 31, 2024, while total deposits increased by $8.1 million, or 2.6% [105]. - Total assets decreased to $358.0 million at March 31, 2025, from $359.0 million at December 31, 2024, a decrease of $1.0 million or 0.3% [125]. - Loans, net increased to $204.7 million at March 31, 2025, an increase of $2.3 million or 1.1% from $202.4 million at December 31, 2024 [125]. - Total deposits increased to $317.3 million as of March 31, 2025, an increase of $8.1 million or 2.6% from $309.2 million at December 31, 2024 [130]. - As of March 31, 2025, the Bank's cash and cash equivalents totaled $23.7 million, an increase of $0.8 million, or 3.2% from $24.5 million at December 31, 2024 [154]. Credit Losses and Allowance - The Company's allowance for credit losses was $2.69 million as of March 31, 2025, compared to $2.84 million at December 31, 2024, a decrease of $150,000 or 5.3% [105]. - The provision for credit loss allowance on loans decreased to $146,000 for the three-month period ended March 31, 2025, from $169,000 for the same period in 2024, reflecting a decrease of 13.6% [120]. - The Bank's allowance for credit losses is based on estimates and assumptions about future events, which may differ from actual results [165]. - The adoption of ASC 326 has significantly changed the methodology for estimating the Allowance for Credit Losses (ACL) from an "incurred loss" approach to an "expected loss" approach known as current expected credit loss (CECL) [166]. - The CECL methodology requires an estimate of credit losses expected over the life of an exposure, which is influenced by historical loss experience, current conditions, and reasonable forecasts [167]. - Management's determination of the ACL is a critical accounting estimate that relies on credit risk assessments, historical loss rates, and forecasts affecting collectability [169]. - The impact of CECL on the ACL will be influenced by the loan portfolio's composition and prevailing economic conditions, potentially leading to greater volatility in reported earnings [170]. Interest Income and Expenses - Net interest income for the three-month period ended March 31, 2025, was $2.56 million, a decrease of $8,000 or 0.3% from the same period in 2024 [112]. - Total interest income for the first quarter of 2025 increased by $224,000, or 6.6%, compared to the same period in 2024, driven by a $494,000 increase in interest and fees on loans [113]. - Interest expense for the first quarter of 2025 increased by $233,000, or 28.0%, from $833,000 for the same period in 2024 to $1.1 million [114]. - Net interest margin for the three-month period ended March 31, 2025, was 2.92%, an increase of 0.06% from 2.86% for the same period in 2024 [115]. - Average total loan balances increased by $30.0 million to $205.9 million for the three-month period ended March 31, 2025, compared to $175.9 million for the same period in 2024 [117]. Noninterest Income and Expenses - Noninterest income decreased to $205,000 for the three-month period ended March 31, 2025, down $24,000 or 10.5% from $229,000 in 2024, primarily due to decreases in other fees and commissions [121]. - Noninterest expenses decreased to $2.79 million for the three-month period ended March 31, 2025, a decrease of $71,000 or 2.5% from $2.86 million in 2024, mainly due to a $498,000 decrease in the provision for losses on unfunded commitments [122]. Capital and Ratios - The Company's stockholders' equity increased by $1.4 million, or 7.7% during the three-month period ended March 31, 2025 [156]. - The Bank's Tier 1 leverage ratio was 9.71%, and the total risk-based capital ratio was 16.60% as of March 31, 2025, indicating full compliance with capital adequacy guidelines [162]. Internal Controls and Compliance - The Company identified material weaknesses in internal controls over financial reporting, particularly regarding the validation of CECL model inputs and reliance on third-party data [175]. - Despite the identified weaknesses, the Company's consolidated financial statements are fairly stated in accordance with generally accepted accounting principles [176]. - Management has initiated a remediation plan to enhance internal controls and validate third-party data [177]. - The Company has implemented system-based controls requiring secondary review and approval of journal entries to address previously reported material weaknesses [180]. - There have been no changes to the Company's internal control over financial reporting that materially affect its effectiveness since the beginning of the first quarter of 2025 [182]. Litigation and Risk - Management does not anticipate that ongoing litigation will have a material effect on the Company's financial condition or operating results [183].

[Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) Glen Burnie Bancorp reported significantly increased Q1 2025 net income and total assets, with the CEO emphasizing disciplined lending and strong asset quality [Announcement and Key Figures](index=1&type=section&id=1.1%20Announcement%20and%20Key%20Figures) Glen Burnie Bancorp reported a significant increase in net income for Q1 2025, reaching $153,000 or $0.05 per share, compared to $3,000 or $0 per share in Q1 2024. Total assets stood at $358.0 million as of March 31, 2025 | Metric | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | | Net Income | $153,000 | $3,000 | | Basic and Diluted Common Share EPS | $0.05 | $0 | | Total Assets (as of March 31, 2025) | $358.0 million | - | [CEO's Strategic Commentary](index=1&type=section&id=1.2%20CEO's%20Strategic%20Commentary) CEO Mark C. Hanna emphasized the company's focus on growing loans and deposits to improve revenues, margins, and profitability, while maintaining disciplined lending practices. He highlighted strong asset quality with minimal non-performing assets and a robust allowance for credit losses - The Company continues to pursue **growing loans and deposits** to improve **revenues, margins and, ultimately, profitability**, while emphasizing **disciplined lending practices** and focusing on **new client relationships**, **safety, and margin**[3](index=3&type=chunk) | Metric | March 31, 2025 | | :-------------------------- | :------------- | | Allowance for Credit Losses | $2.7 million | | % of Total Loans | 1.30% | | Non-performing Assets | Minimal levels | | Financial Strength | **Strong, sound, and secure** (**capital levels**, **asset quality**, **diversified deposit base**, **liquidity sources**) | [Highlights for the First Three Months of 2025](index=1&type=section&id=Highlights%20for%20the%20First%20Three%20Months%20of%202025) The company experienced a slight decrease in net interest income but improved returns on assets and equity, maintaining strong liquidity and capital for future growth [Financial Performance Highlights](index=1&type=section&id=2.1%20Financial%20Performance%20Highlights) Net interest income slightly decreased by $8,000 (0.31%) to $2.56 million, driven by increased interest expense on deposits offset by higher interest income from loans. Return on average assets and equity significantly improved, primarily due to a release of provision for credit allowance | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net Interest Income | $2.56 million | $2.57 million | -$8,000 (-0.31%) | | Interest Expense | Increased $233,000 | - | +$233,000 | | Interest Income | Increased $224,000 | - | +$224,000 | | Return on Average Assets | 0.17% | 0% | +0.17 pp | | Return on Average Equity | 3.22% | 0.06% | +3.16 pp | - The increase in interest on deposits was driven by **increased deposit balances** in **money market products**. The increase in interest and fees on loans was driven by a **$30.0 million** **higher average balance** and **0.27%** **higher yield on loan balances**[4](index=4&type=chunk) - Higher **return on average assets** and **average equity** was primarily driven by the **release of provision for credit allowance** on loans and **unfunded commitments**[6](index=6&type=chunk) [Liquidity and Capital Outlook](index=1&type=section&id=2.2%20Liquidity%20and%20Capital%20Outlook) The Company maintains strong liquidity through managed cash, borrowing lines with FHLB of Atlanta, the Federal Reserve, correspondent banks, and a diversified bond portfolio. This robust liquidity and capital position is expected to support future growth - The Company expects its **strong liquidity** and **capital positions** to provide **ample capacity for future growth**[5](index=5&type=chunk) - **Liquidity** remained **strong** due to **managed cash and cash equivalents**, **borrowing lines** with the **FHLB of Atlanta**, the **Federal Reserve** and **correspondent banks**, and the size and composition of the **bond portfolio**[7](index=7&type=chunk) [Balance Sheet Review](index=2&type=section&id=Balance%20Sheet%20Review) Total assets slightly decreased while loans and deposits grew, stockholders' equity increased due to reduced unrealized losses, and asset quality remained sound despite a rise in nonperforming assets [Assets](index=2&type=section&id=3.1%20Assets) Total assets slightly decreased to $358.0 million from $359.0 million QoQ. Loans, net of deferred fees and costs, increased by $2.2 million (1.06%) QoQ and 16.52% YoY, reaching $207.4 million. Investment securities saw a minor decrease | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | | Total Assets | $358.0 million | $359.0 million | -$1.0 million (-0.27%) | | Cash and Cash Equivalents | Decreased $788,000 | - | -3.22% | | Investment Securities | $106.6 million | $107.9 million | -$1.3 million (-1.23%) | | Loans, Net of Deferred Fees & Costs | $207.4 million | $205.2 million | +$2.2 million (+1.06%) | | Loans (YoY) | $207.4 million | $178.0 million (March 31, 2024) | +16.52% | | Average Earning-Asset Balances | $356.2 million | $362.0 million (prior-year Q1) | Slightly declined | [Liabilities and Deposits](index=2&type=section&id=3.2%20Liabilities%20and%20Deposits) Total deposits increased by $8.1 million (2.61%) QoQ to $317.3 million, with both noninterest-bearing and interest-bearing deposits contributing to the growth. Total borrowings decreased significantly by $10.0 million (33.33%) QoQ to $20.0 million | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------- | :------------- | :---------------- | :----------- | | Total Deposits | $317.3 million | $309.2 million | +$8.1 million (+2.61%) | | Noninterest-Bearing Deposits | $104.5 million | $100.7 million | +$3.7 million (+3.71%) | | Interest-Bearing Deposits | $212.8 million | $208.4 million | +$4.4 million (+2.08%) | | Total Borrowings | $20.0 million | $30.0 million | -$10.0 million (-33.33%) | [Stockholders' Equity](index=2&type=section&id=3.3%20Stockholders'%20Equity) Total stockholders' equity increased to $19.2 million (5.36% of total assets) from $17.8 million (4.96%) QoQ, resulting in a book value of $6.61 per common share. This increase was primarily driven by a decline in unrealized losses on available-for-sale securities due to decreasing market interest rates | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | | Total Stockholders' Equity | $19.2 million | $17.8 million | +$1.4 million | | % of Total Assets | 5.36% | 4.96% | +0.40 pp | | Book Value Per Common Share | $6.61 | $6.14 | +$0.47 | | Unrealized Losses (net of taxes) on AFS Securities | $17.8 million | $19.0 million | -$1.2 million | - The decrease in **unrealized losses** on **available-for-sale investment securities** primarily resulted from **decreasing market interest rates** during Q1 2025, which increased the fair value of these securities[10](index=10&type=chunk) [Asset Quality](index=2&type=section&id=3.4%20Asset%20Quality) Asset quality remained sound, with nonperforming assets representing 0.32% of total assets, an increase from 0.10% QoQ. The allowance for credit losses on loans decreased to $2.7 million (1.30% of total loans), while the allowance for unfunded commitments significantly decreased due to lower loss rates | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :------------- | :---------------- | :----------- | | Nonperforming Assets (% of Total Assets) | 0.32% | 0.10% | +0.22 pp | | Allowance for Credit Losses on Loans | $2.7 million | $2.8 million | -$0.1 million | | % of Total Loans | 1.30% | 1.38% | -0.08 pp | | Allowance for Credit Losses for Unfunded Commitments | $110,000 | $584,000 | -$474,000 | - The **$474,000** decrease in **allowance for credit losses for unfunded commitments** was primarily driven by the utilization of **1.33%** **lower loss rates** during Q1 2025 compared to Q4 2024[11](index=11&type=chunk) [Review of Financial Results](index=3&type=section&id=Review%20of%20Financial%20Results) Net income significantly improved due to credit loss allowance decreases, despite a slight dip in net interest income, with ongoing efforts to reduce noninterest expenses [Net Income Drivers](index=3&type=section&id=4.1%20Net%20Income%20Drivers) Net income for Q1 2025 increased to $153,000 from $3,000 in Q1 2024. This improvement was primarily due to a $315,000 decrease in the allowance for credit loss and a $474,000 decrease in the allowance for unfunded commitments, partially offset by increased salary and employee benefits, legal fees, and a decreased income tax benefit | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Net Income | $153,000 | $3,000 | +$150,000 | | Decrease in Allowance for Credit Loss | $315,000 | - | +$315,000 | | Decrease in Allowance for Unfunded Commitments | $474,000 | - | +$474,000 | | Increase in Salary and Employee Benefits | $209,000 | - | -$209,000 | | Increase in Legal, Accounting, and Other Professional Fees | $129,000 | - | -$129,000 | | Decrease in Income Tax Benefit | $203,000 | - | -$203,000 | [Net Interest Income and Margin](index=3&type=section&id=4.2%20Net%20Interest%20Income%20and%20Margin) Net interest income slightly decreased by $8,000 to $2.56 million. However, net interest margin increased by 0.06% to 2.92%, driven by higher loan yields (up 0.28% to 5.34%) despite an increase in the cost of interest-bearing liabilities (up 0.38% to 1.89%) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Net Interest Income | $2.56 million | $2.57 million | -$8,000 | | Net Interest Margin | 2.92% | 2.86% | +0.06 pp | | Loan Yields | 5.34% | 5.06% | +0.28 pp | | Cost of Interest-Bearing Liabilities | 1.89% | 1.51% | +0.38 pp | | Average Balance of Interest-Earning Assets | Decreased $5.8 million | - | - | | Yield on Interest-Earning Assets | 4.13% | 3.78% | +0.35 pp | | Average Balance of Interest-Bearing Funds | Increased $7.6 million | - | - | | Average Balance of Noninterest-Bearing Funds | Decreased $12.9 million | - | - | | Cost of Funds | Increased 0.31% | - | - | [Noninterest Income and Expenses](index=3&type=section&id=4.3%20Noninterest%20Income%20and%20Expenses) Noninterest income decreased to $205,000 from $229,000 YoY. Total noninterest expenses decreased by $69,000 to $2.8 million, primarily due to a significant decrease in the credit allowance for unfunded commitments, partially offset by higher salary and employee benefits and legal fees. The company is implementing measures like branch closures and an early retirement program to reduce future non-interest expenses | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Noninterest Income | $205,000 | $229,000 | -$24,000 | | Total Noninterest Expenses | $2.8 million | $2.9 million | -$69,000 | | Decrease in Credit Allowance for Unfunded Commitments | $474,000 | - | +$474,000 | | Increase in Salary and Employee Benefits | $209,000 | - | -$209,000 | | Increase in Legal, Accounting, and Other Professional Fees | $129,000 | - | -$129,000 | - The Company is taking steps to reduce **non-interest expenses** in future periods, including the January 2025 closure of its Linthicum **branch office**, the planned closing of its Severna Park **branch office** in May 2025, and the recent announcement of an **early retirement program**[13](index=13&type=chunk) [Income Tax Benefit](index=3&type=section&id=4.4%20Income%20Tax%20Benefit) The income tax benefit for Q1 2025 was $29,000, a decrease from $232,000 in the prior-year period. The prior year's benefit included $87,000 associated with amended Maryland tax returns | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Income Tax Benefit | $29,000 | $232,000 | -$203,000 | | Q1 2024 Benefit included | - | $87,000 (amended MD tax returns) | - | [Company Information](index=4&type=section&id=Company%20Information) Glen Burnie Bancorp is a Maryland-based community bank offering commercial and retail services, with the report containing forward-looking statements and contact information [About Glen Burnie Bancorp](index=4&type=section&id=5.1%20About%20Glen%20Burnie%20Bancorp) Glen Burnie Bancorp is a bank holding company headquartered in Glen Burnie, Maryland, established in 1949. Its subsidiary, The Bank of Glen Burnie, operates seven branch offices in Anne Arundel County, providing commercial and retail banking services, including demand and time deposits, and various loan types - **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 seven **branch offices** serving Anne Arundel County[21](index=21&type=chunk) - The Bank is engaged in **commercial and retail banking**, including **acceptance of demand and time deposits**, and **origination of loans** to individuals, associations, partnerships, and corporations. **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**[21](index=21&type=chunk) [Forward-Looking Statements](index=4&type=section&id=5.2%20Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections. These statements are not guarantees of future performance, and readers are advised to consult SEC filings for a complete discussion of risk factors - Statements not historical financial information may be **forward-looking statements**, subject to **risks and uncertainties** that could cause **actual results to differ materially** from anticipated or projected results[22](index=22&type=chunk) - These statements are **not guarantees of future performance** and may not prove true. For a more complete discussion of **risk factors**, refer to the Company's **reports filed with the Securities and Exchange Commission**[22](index=22&type=chunk) [Contact Information](index=4&type=section&id=5.3%20Contact%20Information) For further information, inquiries can be directed to Jeffrey D. Harris, Chief Financial Officer, via phone or email - Contact: Jeffrey D. Harris, **Chief Financial Officer**, 410-768-8883, jdharris@bogb.net, 106 Padfield Blvd, Glen Burnie, MD 21061[23](index=23&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated balance sheets, statements of income, changes in stockholders' equity, and selected financial data for various periods [Consolidated Balance Sheets](index=5&type=section&id=6.1%20Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheets for Glen Burnie Bancorp and its subsidiary as of March 31, 2025, March 31, 2024, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :------------------------------------------ | :------------- | :------------- | :---------------- | | **ASSETS** | | | | | Cash and due from banks | $1,792 | $9,091 | $2,012 | | Interest-bearing deposits in other financial institutions | 21,884 | 33,537 | 22,452 | | Total Cash and Cash Equivalents | 23,676 | 42,628 | 24,464 | | Investment securities available for sale, at fair value | 106,623 | 128,727 | 107,949 | | Restricted equity securities, at cost | 1,201 | 246 | 1,671 | | Loans, net of deferred fees and costs | 207,393 | 177,950 | 205,219 | | Less:Allowance for credit losses(1) | (2,689) | (2,035) | (2,839) | | Loans, net | 204,704 | 175,915 | 202,380 | | Premises and equipment, net | 2,609 | 2,928 | 2,678 | | Bank owned life insurance | 8,877 | 8,700 | 8,834 | | Deferred tax assets, net | 8,088 | 8,255 | 8,548 | | Accrued interest receivable | 1,243 | 1,281 | 1,345 | | Accrued taxes receivable | 159 | 363 | 148 | | Prepaid expenses | 474 | 460 | 471 | | Other assets | 319 | 367 | 468 | | **Total Assets** | **$357,973** | **$369,870** | **$358,956** | | **LIABILITIES** | | | | | Noninterest-bearing deposits | $104,487 | $115,167 | $100,747 | | Interest-bearing deposits | 212,770 | 194,064 | 208,442 | | Total Deposits | 317,257 | 309,231 | 309,189 | | Short-term borrowings | 20,000 | 40,000 | 30,000 | | Defined pension liability | 338 | 327 | 330 | | Accrued expenses and other liabilities | 1,197 | 2,183 | 1,620 | | **Total Liabilities** | **338,792** | **351,741** | **341,139** | | **STOCKHOLDERS' EQUITY** | | | | | Common stock | 2,901 | 2,887 | 2,901 | | Additional paid-in capital | 11,037 | 10,989 | 11,037 | | Retained earnings | 23,035 | 23,575 | 22,882 | | Accumulated other comprehensive loss | (17,792) | (19,322) | (19,003) | | **Total Stockholders' Equity** | **19,181** | **18,129** | **17,817** | | **Total Liabilities and Stockholders' Equity** | **$357,973** | **$369,870** | **$358,956** | [Consolidated Statements of (Loss) Income](index=6&type=section&id=6.2%20Consolidated%20Statements%20of%20(Loss)%20Income) This section provides the consolidated statements of (loss) income for the three-month periods ended March 31, 2025, and 2024, detailing interest income, interest expense, net interest income, credit loss allowance, noninterest income, noninterest expenses, and net income | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | **Interest income** | | | | Interest and fees on loans | $2,709 | $2,215 | | Interest and dividends on securities | 745 | 938 | | Interest on deposits with banks and federal funds sold | 175 | 252 | | **Total Interest Income** | **3,629** | **3,405** | | **Interest expense** | | | | Interest on deposits | 841 | 402 | | Interest on short-term borrowings | 225 | 431 | | **Total Interest Expense** | **1,066** | **833** | | **Net Interest Income** | **2,563** | **2,572** | | (Release) provision of credit loss allowance | (146) | 169 | | **Net interest income after credit loss provision** | **2,709** | **2,403** | | **Noninterest income** | | | | Service charges on deposit accounts | 31 | 38 | | Other fees and commissions | 131 | 148 | | Income on life insurance | 43 | 43 | | **Total Noninterest Income** | **205** | **229** | | **Noninterest expenses** | | | | Salary and employee benefits | 1,827 | 1,618 | | Occupancy and equipment expenses | 309 | 331 | | Legal, accounting and other professional fees | 383 | 254 | | Data processing and item processing services | 256 | 250 | | FDIC insurance costs | 41 | 38 | | Advertising and marketing related expenses | 37 | 23 | | Loan collection costs | 45 | 5 | | Telephone costs | 38 | 40 | | Other expenses | (146) | 302 | | **Total Noninterest Expenses** | **2,790** | **2,861** | | **Loss before income taxes** | **124** | **(229)** | | **Income tax beneift** | **(29)** | **(232)** | | **Net income** | **$153** | **$3** | | **Basic and diluted net income per common share** | **$0.05** | **$-** | [Consolidated Statement of Changes in Stockholders' Equity](index=7&type=section&id=6.3%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) This section details the changes in stockholders' equity for Glen Burnie Bancorp and its subsidiary for the three months ended March 31, 2025, and 2024, including common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive loss | (dollars in thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | | :------------------------------------------ | :------------- | :------------------------- | :---------------- | :--------------------------------- | :------------------------- | | **Balance, December 31, 2023** | **$2,883** | **$10,964** | **$23,859** | **$(18,381)** | **$19,325** | | Net income | - | - | 3 | - | 3 | | Cash dividends, $0.10 per share | - | - | (287) | - | (287) | | Dividends reinvested under dividend reinvestment plan | 4 | 25 | - | - | 29 | | Other comprehensive loss | - | - | - | (941) | (941) | | **Balance, March 31, 2024** | **$2,887** | **$10,989** | **$23,575** | **$(19,322)** | **$18,129** | | **Balance, December 31, 2024** | **$2,901** | **$11,037** | **$22,882** | **$(19,003)** | **$17,817** | | Net income | - | - | 153 | - | 153 | | Other comprehensive income | - | - | - | 1,211 | 1,211 | | **Balance, March 31, 2025** | **$2,901** | **$11,037** | **$23,035** | **$(17,792)** | **$19,181** | [Selected Financial Data](index=8&type=section&id=6.4%20Selected%20Financial%20Data) This section provides a comprehensive overview of selected financial data, including key balance sheet items, average balances, performance ratios (ROAA, ROAE, NIM), asset quality ratios, and capital ratios for various periods | | March 31, 2025 | December 31, 2024 | March 31, 2024 | Year Ended December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | :------------- | :--------------------------- | | **Financial Data** | | | | | | Assets | $357,973 | $358,956 | $369,870 | $358,956 | | Investment securities | 106,623 | 107,949 | 128,727 | 107,949 | | Loans, (net of deferred fees & costs) | 207,393 | 205,219 | 177,950 | 205,219 | | Allowance for loan losses | 2,689 | 2,839 | 2,035 | 2,839 | | Deposits | 317,257 | 309,189 | 309,231 | 309,189 | | Borrowings | 20,000 | 30,000 | 40,000 | 30,000 | | Stockholders' equity | 19,181 | 17,817 | 18,129 | 17,817 | | Net income (loss) | 153 | (39) | 3 | (112) | | **Average Balances** | | | | | | Assets | $353,308 | $366,888 | $358,877 | $363,994 | | Investment securities | 132,805 | 136,868 | 163,618 | 148,037 | | Loans, (net of deferred fees & costs) | 205,868 | 204,703 | 175,914 | 192,646 | | Deposits | 312,030 | 314,046 | 305,858 | 309,838 | | Borrowings | 20,215 | 30,323 | 31,667 | 32,721 | | Stockholders' equity | 19,258 | 20,664 | 19,124 | 19,169 | | **Performance Ratios** | | | | | | Annualized return on average assets | 0.17% | -0.04% | 0.00% | -0.03% | | Annualized return on average equity | 3.22% | -0.75% | 0.06% | -0.58% | | Net interest margin | 2.92% | 2.98% | 2.86% | 2.98% | | Dividend payout ratio | 0% | 0% | 9426% | -773% | | Book value per share | $6.61 | $6.14 | $6.28 | $6.14 | | Basic and diluted net income (loss) per share | 0.05 | (0.01) | - | (0.04) | | Cash dividends declared per share | 0.00 | 0.00 | 0.10 | 0.30 | | Basic and diluted weighted average shares outstanding | 2,900,681 | 2,900,681 | 2,885,552 | 2,893,871 | | **Asset Quality Ratios** | | | | | | Allowance for loan losses to loans | 1.30% | 1.38% | 1.14% | 1.38% | | Nonperforming loans to avg. loans | 0.55% | 0.18% | 0.21% | 0.19% | | Allowance for loan losses to nonaccrual & 90+ past due loans | 236.9% | 789.1% | 549.1% | 789.1% | | Net charge-offs (recoveries) annualize to avg. loans | 0.01% | -0.04% | 0.66% | 0.08% | | **Capital Ratios** | | | | | | Common Equity Tier 1 Capital | N/A | 15.15% | 17.14% | 15.15% | | Tier 1 Risk-based Capital Ratio | N/A | 15.15% | 17.14% | 15.15% | | Leverage Ratio | N/A | 9.97% | 10.43% | 9.97% | | Total Risk-Based Capital Ratio | N/A | 16.40% | 18.30% | 16.40% |

Core Insights - Glen Burnie Bancorp reported a net income of $153,000 for Q1 2025, a significant increase from $3,000 in Q1 2024, indicating improved profitability [1][11] - The bank's total assets as of March 31, 2025, were $358.0 million, reflecting a slight decrease of 0.27% from the previous quarter [7][28] - The company is focused on growing loans and deposits while maintaining disciplined lending practices to enhance revenues and profitability [2][4] Financial Performance - Net interest income for Q1 2025 was $2.56 million, a decrease of $8,000 or 0.31% compared to $2.57 million in Q1 2024, primarily due to increased interest expenses [3][13] - The return on average assets for Q1 2025 was 0.17%, up from 0% in Q1 2024, while the return on average equity increased to 3.22% from 0.06% [5][28] - Noninterest income decreased to $205,000 in Q1 2025 from $229,000 in Q1 2024 [17][25] Balance Sheet Highlights - Total deposits increased to $317.3 million as of March 31, 2025, a rise of 2.61% from $309.2 million at the end of 2024 [8][28] - Loans, net of deferred fees and costs, rose to $207.4 million, an increase of 1.06% from $205.2 million at the end of 2024, and a 16.52% increase year-over-year [7][28] - Total stockholders' equity increased to $19.2 million, representing 5.36% of total assets, up from $17.8 million (4.96% of total assets) at the end of 2024 [9][28] Asset Quality - Nonperforming assets represented 0.32% of total assets as of March 31, 2025, compared to 0.10% at the end of 2024, indicating a slight deterioration in asset quality [10][28] - The allowance for credit losses stood at $2.7 million, or 1.30% of total loans, down from 1.38% at the end of 2024 [10][28] Strategic Initiatives - The company is implementing measures to reduce non-interest expenses, including branch closures and an early retirement program [12][18] - Glen Burnie Bancorp aims to enhance its funding sources and earning assets while building infrastructure to support customer relationships [2][4]

Core Viewpoint - The Bank of Glen Burnie is expanding its lending team to enhance its commercial banking and lending portfolios, with key promotions and new appointments aimed at driving growth and profitability [1][2][5]. Group 1: Leadership Changes - Jonathan Shearin has been promoted to chief lending officer, effective March 13, 2025, after demonstrating significant impact on the loan portfolio since joining the bank in 2024 [1][2]. - Jeff Welch has been appointed as executive vice president and chief credit officer, effective March 31, 2025, bringing over 40 years of experience in risk management and lending [1][3][5]. Group 2: Strategic Focus - Shearin's role will focus on driving sales and revenue, developing the bank's lending strategy, and overseeing loan production and growth objectives [2][5]. - Welch will manage credit risk, evaluate loan applications, and ensure regulatory compliance related to credit risk [2][3]. Group 3: Company Background - Glen Burnie Bancorp is a bank holding company founded in 1949, operating The Bank of Glen Burnie, which has seven branches in Anne Arundel County, Maryland [6][7]. - The bank engages in commercial and retail banking, including various loan origination services and deposit acceptance [6][7].

Financial Performance - Net interest income decreased to $10.9 million in 2024 from $12.1 million in 2023, a decline of 9.9%[132] - The consolidated net loss for 2024 was $0.1 million, compared to a net income of $1.4 million in 2023, marking a decrease of $1.5 million[133] - Annualized return on average assets was (0.03)% in 2024, down from 0.40% in 2023[134] - The equity to asset ratio decreased to 5.0% in 2024 from 5.5% in 2023[134] - Net interest margin fell to 2.98% in 2024 from 3.31% in 2023[138] - The dividend payout ratio was -750% in 2024, a significant change from 80% in 2023[134] Interest Income and Expense - Total interest income increased by 14.1% from $13.3 million in 2023 to $15.2 million in 2024, primarily due to a $1.9 million increase in interest and fees on loans[137] - Interest expense surged by 255.3% from $1.2 million in 2023 to $4.3 million in 2024, driven by a $1.1 million increase in interest on short-term borrowings and a $2.0 million increase in interest on deposits[138] Credit Losses and Allowances - The provision for credit loss allowance increased by $748,000 in 2024 compared to 2023[133] - The allowance for credit losses - loans was $2.8 million, or 1.4% of total loans at December 31, 2024, compared to $2.2 million, or 1.2% of total loans at December 31, 2023[150] - The Company recognized a credit loss provision - loans of $0.8 million for the year ended December 31, 2024, compared to $0.1 million for the year ended December 31, 2023[150] - The allowance for credit losses was $2.8 million at December 31, 2024, compared to $2.2 million in 2023[166] - The allowance for credit losses increased by $682,000 during 2024, reflecting a provision for credit loss of $844,000[182] Loan and Deposit Growth - Total gross loans increased by $1.9 million, with a notable rise in loans secured by real estate contributing to this growth[140] - Total deposits increased by $9.1 million, or 3.0%, to $309.2 million at the end of 2024 compared to $300.1 million at the end of 2023[155] - Loans, net at December 31, 2024, were $202.4 million compared to $174.2 million at December 31, 2023, a decrease of $28.2 million or 16.2%[155] - Nonperforming loans to gross loans ratio improved to 0.2% in 2024 from 0.3% in 2023[174] - Nonperforming assets decreased to $360,000 at December 31, 2024, from $527,000 at December 31, 2023, representing 0.10% of total assets compared to 0.15% in the prior year[174] Asset Management - Total assets increased by $7.1 million, or 2.0%, to $359.0 million at December 31, 2024, compared to $351.8 million at December 31, 2023[154] - Cash and cash equivalents increased by $9.2 million primarily due to a $9.1 million increase in deposit balances[156] - Investment securities decreased by $31.5 million, or 22.6%, to $107.9 million compared to year-end 2023[155] - The Company's investment securities portfolio decreased by $31.5 million, or 22.58%, to $107.9 million at December 31, 2024, from $139.4 million at December 31, 2023[159] Capital and Regulatory Ratios - Stockholders' equity decreased to $17.8 million at December 31, 2024, a decline of $1.5 million or 7.8% compared to $19.3 million in 2023[193] - Common Equity Tier 1 Capital ratio was 15.15% as of December 31, 2024, significantly above the minimum requirement of 4.50%[202] - Total Risk-Based Capital ratio was 16.40% at December 31, 2024, exceeding the required minimum of 8.00%[202] - The Bank's leverage ratio was 9.97% at December 31, 2024, well above the minimum requirement of 4.00%[202] Interest Rate Risk Management - The net interest income simulation analysis indicates that the Bank is in an asset sensitive position in all falling rate scenarios and in a liability sensitive position in all rising rate scenarios[227] - The economic value of equity (EVE) at December 31, 2024 showed a decrease of 11% under +100 bp shock, slightly outside the policy limit of -10%[234] - The Bank's interest rate risk management policy establishes limits on risk, measured as the percentage change in net interest income and the fair value of equity capital due to hypothetical changes in U.S. Treasury interest rates[222] Credit Availability and Commitments - The Bank's total credit availability from the Federal Home Loan Bank was $92.1 million, with $62.1 million available to be drawn as of December 31, 2024[209] - The Bank's total commitments to extend credit and unused lines of credit totaled $31.6 million at December 31, 2024[207] - As of December 31, 2024, the Bank has accrued $584,000 as a reserve for credit losses on unfunded commitments, an increase of $111,000 from $473,000 as of December 31, 2023[218]

Core Insights - Glen Burnie Bancorp reported a net loss of $39,000 for Q4 2024, compared to a net income of $167,000 in Q4 2023, indicating a significant decline in profitability [1][14] - For the full year 2024, the company experienced a net loss of $112,000, a stark contrast to the net income of $1.4 million in 2023, reflecting ongoing challenges in the interest rate environment [1][23] - The bank's total assets increased to $358.9 million as of December 31, 2024, up from $351.8 million a year earlier, showing modest growth despite financial difficulties [1][10] Financial Performance - Net interest income decreased by $1.2 million, or 9.84%, to $10.9 million for the year ended December 31, 2024, primarily due to a $3.1 million rise in interest expenses [3][24] - Total interest income rose by $1.9 million to $15.2 million for the same period, driven by higher interest and fees on loans [4][30] - The net interest margin for the year was 2.98%, down from 3.31% in 2023, reflecting increased costs and competitive pressures [25][42] Asset and Liability Management - Loans increased by $28.9 million, or 16.40%, to $205.2 million as of December 31, 2024, indicating growth in the lending portfolio [10][28] - Total deposits rose by $9.1 million, or 3.04%, to $309.2 million, with interest-bearing deposits increasing significantly [11][42] - The cost of funds increased to 1.38% for Q4 2024, compared to 0.64% in Q4 2023, primarily due to higher costs associated with money market deposits [7][18] Capital and Equity - The book value per share decreased to $6.14 as of December 31, 2024, down from $6.70 a year earlier, attributed to unrealized losses on available-for-sale securities [8][12] - Total stockholders' equity was $17.8 million, representing 4.96% of total assets, a decline from 5.49% in 2023 [12][41] - The bank maintained a strong capital position with a total risk-based capital ratio of 16.40% as of December 31, 2024, down from 18.40% in 2023 [5][43] Management Commentary - The CEO acknowledged the disappointing financial performance in 2024, citing challenges in the interest rate environment and the need to focus on strategic opportunities for long-term growth [2][6] - The decision to suspend quarterly cash dividends was made to reinvest in the bank's infrastructure and better serve client needs [2][6] - Management remains committed to navigating uncertainties while focusing on organic loan and deposit growth [2][5]

Financial Performance - For the three-month period ended December 31, 2024, Glen Burnie Bancorp reported a net loss of $39,000, compared to a net income of $167,000 for the same period in 2023[2]. - The net loss for the twelve-month period ended December 31, 2024, was $112,000, compared to a net income of $1.429 million for the same period in 2023[36]. - Return on average assets for the three-month period ended December 31, 2024, was -0.04%, compared to 0.19% for the same period in 2023[7]. - The annualized return on average assets for the three months ended December 31, 2024, is -0.04%[39]. Income and Expenses - Net interest income for the twelve-month period ended December 31, 2024, decreased by $1.2 million, or 9.84%, to $10.9 million, compared to $12.1 million in 2023[4]. - Noninterest income for the twelve-month period ended December 31, 2024, was $1.2 million, an increase of $57,000 or 5.20% compared to $1.1 million for the same period in 2023[30]. - Noninterest expense for the twelve-month period ended December 31, 2024, was $11.9 million, reflecting an increase of $253,000 from $11.6 million in 2023, primarily due to higher legal, accounting, and professional fees[31]. - The net interest margin for the twelve-month period ended December 31, 2024, was 2.98%, down from 3.31% for the same period in 2023[25]. - The net interest margin for the three months ended December 31, 2024, is 2.98%[39]. Assets and Liabilities - Total assets increased by $7.1 million, or 2.03%, to $358.9 million as of December 31, 2024, from $351.8 million a year earlier[11]. - Total assets as of December 31, 2024, were $358.956 million, a decrease from $368.359 million as of September 30, 2024, and an increase from $351.813 million as of December 31, 2023[35]. - Cash and cash equivalents totaled $24.464 million as of December 31, 2024, compared to $15.241 million as of December 31, 2023[35]. - Total deposits rose by $9.1 million, or 3.04%, to $309.2 million as of December 31, 2024, from $300.1 million a year earlier[12]. - Total deposits as of December 31, 2024, were $309.189 million, down from $314.273 million as of September 30, 2024, and up from $300.067 million as of December 31, 2023[35]. Loans and Credit Losses - Loans increased by $28.9 million, or 16.40%, to $205.2 million as of December 31, 2024, compared to $176.3 million on December 31, 2023[11]. - The provision for allowance for credit loss on loans for the twelve-month period ended December 31, 2024, was $844,000, compared to $96,000 for the same period in 2023[29]. - The allowance for credit losses as of December 31, 2024, was $2.839 million, an increase from $2.157 million as of December 31, 2023[35]. - The allowance for loan losses to loans ratio is 1.38% as of December 31, 2024[39]. - Nonperforming loans to average loans ratio is 0.18% for the three months ended December 31, 2024[39]. Equity and Capital - The book value per share decreased to $6.14 on December 31, 2024, from $6.70 on December 31, 2023, primarily due to unrealized losses on available-for-sale securities[9]. - The total stockholders' equity as of December 31, 2024, was $17.817 million, a decrease from $19.325 million as of December 31, 2023[35]. - Stockholders' equity as of December 31, 2024, is $17,817,000, down from $21,160,000 in the previous quarter[39]. - As of December 31, 2024, Common Equity Tier 1 Capital stands at $36,481,000, representing a ratio of 15.15%[38]. - Total Risk-Based Capital as of December 31, 2024, is $39,496,000, with a ratio of 16.40%[38]. Dividends - The company declared cash dividends of $0.30 per share for the twelve months ended December 31, 2024, totaling $865,000[37]. Cost of Funds - The cost of funds increased to 1.38% for the quarter ended December 31, 2024, compared to 0.64% for the same quarter in 2023, reflecting higher interest expenses[8].

Financial Performance - Net income for Q3 2024 was $129,000, a decrease of 76.7% from $551,000 in Q3 2023, resulting in earnings per share of $0.04 compared to $0.19[1][11] - For the first nine months of 2024, the company reported a net loss of $72,000, down from a net income of $1.3 million in the same period of 2023[1][18] - The net income (loss) for the nine-month period ended September 30, 2024, was $(72,000), compared to a net income of $1.26 million for the same period in 2023[28] - Basic and diluted net income (loss) per common share was $(0.02) for the nine-month period ended September 30, 2024, compared to $0.44 for the same period in 2023[28] Asset and Liability Management - Total assets increased by $13.0 million, or 3.66%, to $368.4 million as of September 30, 2024, compared to $355.4 million a year earlier[7] - Loans increased by $32.2 million, or 18.41%, to $207.0 million as of September 30, 2024, while total deposits decreased by $600,000, or 0.18%, to $314.2 million[7][8] - Total assets as of September 30, 2024, increased to $368,359 thousand from $355,364 thousand a year earlier, representing a growth of 0.28%[31] - Total deposits rose to $314.27 million as of September 30, 2024, compared to $314.84 million as of September 30, 2023[27] Credit Quality and Provisions - The provision for credit losses on loans for the first nine months of 2024 was $591,000, compared to a release of $68,000 in the same period of 2023[4] - The Company recorded a provision for credit loss on loans of $773,000 for the nine-month period ending September 30, 2024, compared to a release of $7,000 for the same period in 2023, reflecting a $780,000 increase[23] - The allowance for credit loss on loans was $2.75 million on September 30, 2024, representing 1.33% of total loans, compared to $2.09 million, or 1.20% of total loans on September 30, 2023[23] - The increase in the reservable balance of the loan portfolio was $32.0 million, contributing to the rise in the provision for credit loss[23] Income and Expense Analysis - Net interest income for the first nine months of 2024 decreased by $1.1 million, or 11.54%, to $8.2 million, primarily due to a $2.4 million increase in interest expense[3][19] - Noninterest expense was $8.8 million for the nine-month period ended September 30, 2024, compared to $8.7 million for the same period in 2023, with increases in various expense categories[24] - Net interest income after provision for credit loss was $7.41 million for the nine-month period ended September 30, 2024, down from $9.25 million for the same period in 2023[28] Capital Ratios and Equity - The bank's tier 1 risk-based capital ratio was approximately 15.47% on September 30, 2024, compared to 17.37% on December 31, 2023[6] - Stockholders' equity rose to $21,160 thousand as of September 30, 2024, compared to $13,161 thousand a year prior, reflecting a 60.5% increase[31] - Common Equity Tier 1 Capital ratio stood at 15.47% as of September 30, 2024, slightly down from 17.12% a year earlier[30] - Total Risk-Based Capital ratio was 16.72% as of September 30, 2024, compared to 18.10% in the same quarter of the previous year[31] Performance Ratios - Return on average assets for Q3 2024 was 0.14%, down from 0.61% in Q3 2023, while return on average equity fell to 2.63% from 12.47%[4] - The annualized return on average assets was 0.14% for the three months ended September 30, 2024, compared to 0.61% in the same period last year[31] - The net interest margin for the three months ended September 30, 2024, was 3.06%, up from 3.21% in the same period last year[31] Future Outlook - The Company anticipates continued challenges in the market, which may impact future performance[26] - Cash dividends declared per share remained at $0.10 for the three months ended September 30, 2024, consistent with the previous year[31] - The book value per share increased to $7.29 as of September 30, 2024, compared to $4.57 a year earlier, marking a significant improvement[31]

Financial Performance - For the three-month period ended June 30, 2024, the company reported a net loss of $204,000, compared to a net income of $276,000 for the same period in 2023[17]. - The net loss for the six-month period ended June 30, 2024, was $201,000, compared to a net income of $710,000 for the same period in 2023[37]. - Noninterest expense for the three-month period ended June 30, 2024, was $2.89 million, a decrease of $31,000 from $2.92 million in the same period of 2023[25]. - Noninterest expense for the six-month period ended June 30, 2024, was $5.8 million, a slight decrease from $5.9 million for the same period in 2023, primarily due to reductions in salary and employee benefits costs[39]. Interest Income and Expenses - Net interest income decreased by $935,000, or 14.86%, to $5.4 million for the six-month period ended June 30, 2024, primarily due to a $1.7 million increase in interest expense[3]. - Net interest income for the six-month period ended June 30, 2024, totaled $5.4 million, down $935,000 from $6.335 million in the same period of 2023[26]. - Total interest income for the three months ended June 30, 2024, was $3.893 million, compared to $3.267 million in the same period of 2023, reflecting an increase of 19.1%[32]. - The cost of funds increased by 0.99% from 0.15% to 1.14% when comparing June 30, 2024, to the same period in 2023[20]. Asset and Liability Management - Total assets decreased by $7.9 million, or 2.17%, to $355.7 million as of June 30, 2024, compared to $363.6 million a year earlier[6]. - Total liabilities decreased from $351.7 million in March 2024 to $338.2 million in June 2024[43]. - Total stockholders' equity as of June 30, 2024, was $17.471 million, down from $19.325 million as of December 31, 2023[33]. - Total deposits were $305.9 million on June 30, 2024, a decrease of $23.4 million, or 7.09%, from $329.2 million on June 30, 2023[21]. Credit Quality - The allowance for credit losses on loans increased to $2.63 million, or 1.30% of total loans, as of June 30, 2024, compared to $2.22 million, or 1.23% of total loans, a year prior[13]. - The provision for credit loss allowance for the three months ended June 30, 2024, was $526,000, compared to $127,000 in the same period of 2023[32]. - The allowance for loan losses was $2,625 million as of June 30, 2024, compared to $2,222 million as of June 30, 2023[35]. - The allowance for credit losses increased to $2.625 million as of June 30, 2024, compared to $2.035 million in March 2024[42]. Capital Ratios - The company’s tier 1 risk-based capital ratio was approximately 15.59% on June 30, 2024, down from 17.37% on December 31, 2023[5]. - As of June 30, 2024, the Common Equity Tier 1 Capital was $36,896 million, with a ratio of 15.59%[34]. - Total Risk-Based Capital as of June 30, 2024, was $39,857 million, representing a ratio of 16.84%[34]. - The Tier 1 Leverage Ratio as of June 30, 2024, was 10.10%[34]. Loan Performance - Average loan balances increased by $5.0 million to $186.7 million for the three-month period ended June 30, 2024, with the yield rising from 4.71% to 5.44%[10]. - Average loan balances decreased by $1.9 million to $181.3 million for the six-month period ended June 30, 2024, while the yield increased from 4.65% to 5.26%[27]. - Loans (net of deferred fees & costs) as of June 30, 2024, amounted to $201,500 million, up from $180,551 million in June 30, 2023[35]. - Average balances for loans (net of deferred fees & costs) for the three months ended June 30, 2024, were $186,650 million[35]. Strategic Initiatives - The company plans to enhance its small business lending capabilities and make strategic adjustments to its operating structure to better serve its communities[18]. - The Bank of Glen Burnie operates 8 branch offices serving Anne Arundel County, focusing on commercial and retail banking[40]. - The company is engaged in real estate financing, including residential and commercial mortgage loans[40]. - Further information about the company can be found on their official website[40].

Core Viewpoint Glen Burnie Bancorp reported a net loss for the second quarter and first half of 2024, primarily due to increased interest expenses and provisions for credit losses, despite growth in loans and deposits. The bank's strategic focus remains on enhancing client relationships and growing its deposit and loan portfolios while managing costs. Financial Performance - The net loss for the three-month period ended June 30, 2024, was $204,000, compared to a net income of $276,000 for the same period in 2023 [1][12] - For the six-month period ended June 30, 2024, the net loss was $201,000, down from a net income of $710,000 in the same period in 2023 [1][20] - Net interest income decreased by $935,000, or 14.86%, to $5.4 million for the first half of 2024 compared to $6.3 million in 2023 [3][21] Asset and Liability Management - Total assets as of June 30, 2024, were $355.7 million, a decrease of $7.9 million or 2.17% from $363.6 million a year earlier [8] - Total deposits were $305.9 million, down $23.4 million or 7.09% from $329.2 million on June 30, 2023, although deposits increased by 1.9% from December 31, 2023 [9] - Loans increased by $20.9 million or 11.60% year-over-year, totaling $201.5 million as of June 30, 2024 [8] Interest Rate Environment - The cost of funds increased from 0.15% to 1.14% year-over-year, reflecting a shift in the funding mix towards higher-cost borrowed funds [6] - The net interest margin for the three-month period ended June 30, 2024, was 3.02%, down from 3.44% in the same period of 2023 [14] Credit Quality and Provisions - The allowance for credit losses on loans was $2.63 million, or 1.30% of total loans, as of June 30, 2024, compared to $2.22 million or 1.23% a year earlier [11][26] - The provision for credit losses for the first half of 2024 was $694,000, significantly higher than $85,000 in the same period of 2023 [26] Strategic Focus - The bank aims to grow deposits, loans, and client relationships while managing noninterest expenses, which decreased by 1.1% on a linked-quarter basis [2] - Future dividend declarations will be evaluated against the need for reinvestment in growth initiatives [2]