Name: GLEN BURNIE BANCORP Q2 2025 Earnings Call
Start: 2025-07-29T00:00:00.000Z

Executive Summary

Q2 2025 reported net loss of $0.212M and diluted EPS of $(0.07), driven by $287k non-recurring restructuring costs; net interest margin (FTE) expanded to 3.13% (+13 bps QoQ) on loan yield improvements .
Loans grew $6.0M in the quarter (11.5% annualized), shifting earning-asset mix toward loans (58% of earning assets vs. 50% a year ago), while deposits were stable at $317.3M; cost of deposits rose to 1.78% QoQ reflecting mix shifts into higher-rate products .
Credit quality remained strong: NPL ratio 0.51% (down 4 bps QoQ); net charge-offs annualized at 0.09%; allowance-to-loans at 1.21% .
No formal EPS/Revenue consensus from S&P Global; revenue actual of $2.877M*, down slightly QoQ and up YoY, consistent with net interest income growth and provision normalization; near-term catalysts include VAWM acquisition (closed Aug 18) and new credit card program to expand fee income and customer engagement .
Bank remains well-capitalized (Leverage 9.59%, Tier 1 RBC 14.91%, Total RBC 16.06%); liquidity ample with FHLB/FRB capacities; dividend remains suspended (no cash dividend declared) .

What Went Well and What Went Wrong

Net interest margin expanded to 3.13% (+13 bps QoQ) on improved asset yields; CEO: “We are beginning to see our mix of earning assets move from cash and securities to loans…loans represented 58% of total earning assets” .
Loan growth of $6.0M (11.5% annualized), led by CRE (+$3.4M), C&I (+$0.9M), and consumer auto (+$1.9M), with credit metrics “very good,” NPL ratio at 0.51% and allowance at 1.21% of loans .
Stable deposit base at $317.3M and strong liquidity posture: FHLB borrowing capacity $31.4M, securities pledging capacity $57.5M, FRB capacity $33.9M, and other wholesale funding $17.0M .

GAAP loss of $0.212M and $(0.07) EPS as non-recurring early retirement and severance costs ($287k) offset margin progress; headcount reduced from 89 to 73 by June 30 as cost program ramps .
Cost of deposits increased to 1.78% from 1.63% QoQ due to migration into higher-rate money market and CDs; total cost of funds rose 6 bps QoQ to 1.36% .
Provision expense swung to $79k vs. a $146k release in Q1, tempering net revenue; noninterest income remains modest at $220k pending fee-growth initiatives .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$2.427*	$2.914*	$2.877*
Diluted EPS ($USD)	$(0.07)	$0.05	$(0.07)
Net Interest Margin - FTE (%)	3.10%	3.00%	3.13%
Net Interest Income ($USD Millions)	$2.786	$2.563	$2.736
Noninterest Income ($USD Millions)	$0.241	$0.205	$0.220
Provision for Credit Loss ($USD Millions)	$0.600	$(0.146) release	$0.079

Values retrieved from S&P Global for revenue.*

Segment breakdown: Not provided; GLBZ reports consolidated results .

KPI	Q2 2024	Q1 2025	Q2 2025
Loans ($USD Millions)	$201.5	$207.4	$213.4
Deposits ($USD Millions)	$305.9	$317.3	$317.3
Cost of Deposits (%)	N/A	1.63% (prior)	1.78%
Total Cost of Funds (%)	N/A	N/A	1.36%
Loan Yields (%)	N/A	5.34%	5.58%
NPL Ratio (%)	0.17%	0.55%	0.51%
Net Charge-offs Annualized (% of Avg Loans)	-0.14%	0.01%	0.09%
Allowance to Loans (%)	1.30%	1.30%	1.21%
CET1 Ratio (%)	15.59%	15.42%	14.91%
Leverage Ratio (%)	10.10%	9.71%	9.59%

Metric	Period	Previous Guidance	Current Guidance	Change
Noninterest Income	FY 2025	None provided	Anticipates increases due to VAWM acquisition	Raised (qualitative)
Operating Expenses	FY 2025	None provided	Expect reductions post restructuring/early retirement; $287k non-recurring in Q2	Lower (future periods)
Dividend Policy	Q2 2025	Dividend suspended (no cash dividend declared in Q1 2025)	Maintained suspension; cash dividends declared per share $0.00	Maintained
Formal Revenue/EPS Guidance	FY/Q2 2025	None provided	None provided	N/A

Note: No Q2 2025 earnings call transcript available in our document catalog or via public search; themes below based on company releases .

Topic	Previous Mentions (Q-2: Q4 2024; Q-1: Q1 2025)	Current Period (Q2 2025)	Trend
Macro/Interest Rates	Margin compression in 2024; cost of funds up to 1.38% in Q4; focus on rebuilding low-cost deposits	NIM up to 3.13%; cost of deposits up to 1.78% QoQ	Improving margin; funding costs rising
Balance Sheet Mix Shift	Runoff of low-yield indirect auto; new loans at higher yields	Loans now 58% of earning assets vs. 50% a year ago	Shift to loans accelerating
Credit Quality	Sound; NPA 0.10% of assets at YE 2024	NPL 0.51%; allowance 1.21% of loans; strong indicators	Stable/strong
Fee/Noninterest Income	Modest in Q1 ($205k)	Anticipates increases post VAWM; new credit card program launched	Building
Capital/Regulatory	Well-capitalized throughout 2024	Leverage 9.59%, Tier 1 RBC 14.91%, Total RBC 16.06%	Stable
Cost Actions	Branch closures, early retirement announced	$287k non-recurring costs; headcount reduced to 73	Near-term costs; long-term savings

“We are beginning to see our mix of earning assets move from cash and securities to loans…at the end of Q2 2025, loans represented 58% of our total earning assets” — Mark C. Hanna, President & CEO .
“We were very pleased to see that our deposit base and cost of funding continues to remain competitive and stable while seeing good growth in our loan revenues…additional liquidity capacity can provide the funding we need to create balance sheet growth and increased earnings” .
“We continue to see and experience very good credit results…allowance…1.21% of loans, illustrating our emphasis on disciplined lending practices” .
“During the quarter, we had over $280,000 of non-recurring expenses…early retirement and employee severance…headcount…reduced from 89…to 73” .

No Q2 2025 earnings call transcript available; no Q&A disclosures found in filings or press releases .

Wall Street consensus EPS and revenue estimates unavailable for Q2 2025 (no Coverage/# of Estimates in S&P Global) [functions.GetEstimates: Primary EPS - # of Estimates empty; Revenue - # of Estimates empty].
Actual revenue per S&P Global: Q2 2025 $2.877M*, Q1 2025 $2.914M*, Q2 2024 $2.427M*; with provision movements a key driver of quarterly variance (Q1 had a $146k release vs. Q2 $79k provision) .
Values retrieved from S&P Global.*

Margin expansion and earning-asset mix shift toward higher-yield loans are progressing, offering a path to profitability if deposit costs stabilize and loan yields sustain .
Near-term GAAP losses reflect restructuring; the $287k non-recurring expense and ~18% workforce reduction should reduce the run-rate expense base in H2/FY 2026 .
Fee income growth runway via VAWM (closed Aug 18) and credit card program; expect incremental noninterest income contribution starting H2 2025/H1 2026 .
Liquidity and capital remain strong, allowing balance sheet growth without undue risk; CET1/Tier 1/Total RBC comfortably above “well-capitalized” thresholds .
Deposit competition persists; continued migration to higher-rate products lifted cost of deposits to 1.78%; watch funding cost trajectory as a key determinant of NIM and earnings power .
AOCL remains sizable ($17.8M), but improved vs. Q2 2024; rates path will influence OCI and capital optics; management intends to prioritize loan growth over new securities .
With no formal guidance or Street coverage, catalysts include visible cost takeout, fee-income ramp, and sustained loan growth; lack of coverage may create inefficiencies for informed traders monitoring NIM/funding trends .

Note: Revenue values marked with * are from S&P Global; consensus estimates were unavailable for GLBZ for Q2 2025.