Glen Burnie Bancorp Announces Second Quarter 2025 Results

Core Insights - Glen Burnie Bancorp reported a net loss of $212,000 for Q2 2025, compared to a net income of $153,000 in Q1 2025 and a net loss of $204,000 in Q2 2024, with a diluted loss per share of $(0.07) [2][19] - Year-to-date, the net loss was $59,000, an improvement from a net loss of $201,000 during the same period in 2024 [3] - The company is focusing on strategic initiatives to increase revenue sources and operational efficiency, despite the current net loss [4] Financial Performance - Net interest income for Q2 2025 was $2.7 million, slightly up from $2.6 million in Q1 2025 but down from $2.8 million in Q2 2024 [11][19] - The net interest margin increased to 3.13% in Q2 2025, up 13 basis points from Q1 2025, driven by improved yields on earning assets [12][21] - Non-interest income rose to $220,000 in Q2 2025 from $205,000 in Q1 2025, but decreased from $241,000 in Q2 2024 [13][19] Loan and Deposit Metrics - Total loans increased by $6.0 million in Q2 2025, reflecting an annualized growth rate of 11.5%, primarily due to growth in commercial real estate and consumer loans [5][7] - Total deposits were $317.3 million as of June 30, 2025, showing modest growth from the previous quarter [8][21] - The non-performing loans ratio was 0.51% as of June 30, 2025, a decrease of 4 basis points from March 31, 2025 [5][22] Strategic Initiatives - The company is implementing cost control measures, including an early retirement program, which resulted in non-recurring expenses of over $280,000 [4][14] - An acquisition of VA Wholesale Mortgage, Inc. is expected to close in August 2025, which will enhance the bank's mortgage banking capabilities [5][10] - A new credit card program was launched in June 2025 to attract new customers and enhance service offerings [5][13] Capital and Liquidity - Regulatory capital ratios remain above the well-capitalized minimum levels, with a Tier I Risk-Based Capital Ratio of 14.91% as of June 30, 2025 [11][22] - The bank maintains strong liquidity with $31.4 million in borrowing capacity from the FHLB and additional access to wholesale funding [10][11] - The allowance for loan losses stood at 1.21% of loans, indicating a conservative approach to credit risk management [6][22]