Glen Burnie Bancorp Reports $212,000 Net Loss in Q2 2025, Plans Acquisition of Virginia Wholesale Mortgage

Glen Burnie Bancorp reported a net loss of $212,000, or $0.07 per share, for the second quarter of 2025, a slight increase from a net loss of $204,000, or $0.07 per share, in the same period last year. For the first half of 2025, the company recorded a net loss of $59,000, compared to a loss of $201,000 in the first half of 2024. The decrease in net loss for the six-month period was attributed to a significant improvement in the provision for credit losses, which decreased by $1.3 million year-over-year, despite a decline in net interest income of $58,000.

Total interest income for the second quarter of 2025 was $3.9 million, down from $3.9 million in the same quarter of 2024. The net interest income decreased to $2.7 million, a 1.8% decline from the previous year, primarily due to a reduction in total interest income and an increase in the cost of funds. The company’s average loans increased by $22.3 million, contributing to a rise in interest income, while average interest-bearing deposits and investments decreased by $34 million. The net interest margin improved slightly to 3.13% from 3.10% year-over-year.

In terms of operational developments, Glen Burnie Bancorp's total assets decreased to $350.7 million as of June 30, 2025, down from $358.9 million at the end of 2024. The company’s loan portfolio increased by $8.1 million, or 4%, while investment securities available for sale declined by $3.4 million. Total deposits rose by $8.1 million, or 2.6%, during the first half of 2025, with noninterest-bearing deposits increasing by 6.2%. The company’s allowance for credit losses decreased to $2.59 million from $2.84 million at the end of 2024.

Strategically, Glen Burnie Bancorp is set to acquire Virginia Wholesale Mortgage, Inc., a move expected to enhance its mortgage banking services and expand its product offerings. This acquisition, anticipated to close in August 2025, will allow the bank to originate and sell mortgages off its balance sheet, providing cross-selling opportunities to existing clients. The company has also made organizational changes, including hiring a new Chief Credit Officer to strengthen its credit risk management.

Looking ahead, Glen Burnie Bancorp remains focused on improving its financial performance while navigating the challenges posed by market conditions and regulatory requirements. The company is committed to maintaining strong capital ratios, with a Tier 1 leverage ratio of 9.59% and a total risk-based capital ratio of 16.06% as of June 30, 2025. The management is optimistic about future growth opportunities, particularly through the upcoming acquisition and ongoing efforts to enhance operational efficiency.