GLEN BURNIE BANCORP SEC 10-Q Report

Glen Burnie Bancorp, a community bank holding company, has released its Form 10-Q report for the third quarter of 2025. The report provides a detailed overview of the company's financial performance and key business activities, reflecting its ongoing efforts to enhance its service offerings and manage credit risk effectively. Financial Highlights Total Interest Income: $3,937 thousand for the three months ended September 30, 2025, reflecting a slight decrease from $3,959 thousand in the same period in 2024.Net Interest Income: $2,831 thousand for the three months ended September 30, 2025, showing a marginal increase from $2,821 thousand in the same period in 2024.Net Income: $125 thousand for the three months ended September 30, 2025, compared to $129 thousand in the same period in 2024, indicating a slight decrease.Basic and diluted net income per share of common stock: $0.04 for the three months ended September 30, 2025, consistent with the same period in 2024.Total Noninterest Income: $571 thousand for the three months ended September 30, 2025, up from $354 thousand in the same period in 2024, driven by increased mortgage commissions and other fees.Total Noninterest Expenses: $3,271 thousand for the three months ended September 30, 2025, compared to $2,991 thousand in the same period in 2024, reflecting higher salary and benefits costs. Business Highlights Acquisition of VA Wholesale Mortgage Incorporated: The Bank of Glen Burnie completed the acquisition of VA Wholesale Mortgage Incorporated (VAWM) on August 15, 2025. VAWM is a Virginia corporation engaged in residential mortgage banking, lending, and brokerage services, and is licensed to operate in four states, including Maryland. This acquisition is expected to enhance the Company's overall mortgage lending products and services through its existing footprint.Loan Portfolio Segmentation: The Company's loan portfolio is divided into three segments: loans secured by real estate, commercial and industrial loans, and consumer loans. Each segment is further divided into classes for estimating the allowance for credit losses, reflecting the unique risk characteristics of each segment.Allowance for Credit Losses: The Company applies the CECL methodology for estimating credit losses, which requires the immediate recognition of expected credit losses over the contractual term for financial instruments. This methodology affects the Company's estimates of the allowance for credit losses for its loan portfolio and the reserve for off-balance sheet credit exposures related to loan commitments.Credit Risk Management: The Company manages credit risk through portfolio diversification, limiting exposure to any single customer, industry, or collateral type. The risk of loss is mitigated by maintaining a diversified loan portfolio and applying a systematic methodology to determine the allowance for credit losses.Impaired Loans and Asset Quality: As of September 30, 2025, impaired loans totaled $2.5 million with no specific reserves. The Company conducts quarterly asset quality reviews, considering factors such as forecasted charge-offs, nonperforming assets, and risk rating migration to assess the adequacy of the allowance for credit losses.Future Outlook: The Company anticipates that the acquisition of VAWM will enhance its mortgage lending capabilities and expects to leverage this acquisition to expand its market presence in the residential mortgage sector. Additionally, the Company continues to focus on managing credit risk and maintaining a diversified loan portfolio to mitigate potential losses.SEC Filing: GLEN BURNIE BANCORP [ GLBZ ] - 10-Q - Nov. 14, 2025