GLEN BURNIE, Md., July 29, 2026 (GLOBE NEWSWIRE) -- Glen Burnie Bancorp ("Company") (OTCQX: GLBZ), the bank holding company for The Bank of Glen Burnie ("Bank"), today reported a net loss of $272 thousand, or $(0.09) per diluted common share, for the second quarter of 2026, compared to net income of $84 thousand, or $0.03 per diluted common share, for the first quarter of 2026, and a net loss of $212 thousand, or $(0.07) per diluted common share, for the second quarter of 2025.

For the six months ended June 30, 2026, the Company reported a net loss of $188 thousand, or $(0.06) per diluted common share, compared to a net loss of $59 thousand, or $(0.02) per diluted common share, for the six months ended June 30, 2025.

Pre-tax pre-provision income was $117 thousand for the second quarter of 2026, compared to $122 thousand for the first quarter of 2026 and a pre-tax pre-provision loss of $296 thousand for the second quarter of 2025. For the six months ended June 30, 2026, pre-tax pre-provision income was $239 thousand, an improvement of $1.0 million from a pre-tax pre-provision loss of $792 thousand for the first six months of 2025.

Second-quarter results reflected continued strong loan growth, stable underlying net interest margin performance and increased mortgage banking revenue. These positive developments were offset primarily by provision expense associated with loan growth, premium acceleration within the purchased automobile loan portfolio and increased compensation-related expenses, including investments in additional commercial lending personnel to support the Bank's Annapolis expansion.

"We continued to generate meaningful loan growth during the second quarter while maintaining stable asset quality and liquidity," said Mark C. Hanna, President and Chief Executive Officer. "Although reported earnings were affected by provision expense required to support that growth and by premium acceleration within our purchased automobile loan portfolio, yields across the remainder of the loan portfolio remained stable and core net interest margin improved modestly. We also made a significant investment in a Loan Production Office in the Annapolis market, adding two commercial lenders, and saw increased activity from VA Wholesale Mortgage. Our focus remains on converting recent balance-sheet growth into sustainable earnings while maintaining disciplined funding, expense and capital management."

Second Quarter 2026 Highlights

Continued strong loan growth. Total loans increased $25.1 million, or 10.3%, during the second quarter to $267.6 million at June 30, 2026, compared to $242.6 million at March 31, 2026. For the first six months of 2026, total loans increased $36.4 million, or 15.7%, from $231.2 million at December 31, 2025. Compared to June 30, 2025, total loans increased $54.3 million, or 25.4%. Loan growth during 2026 was primarily attributable to purchased consumer loans and commercial real estate loans for both owner-occupied and investment properties.

Stable underlying net interest margin. Net interest income was approximately $3.0 million for both the second and first quarters of 2026, compared to $2.7 million for the second quarter of 2025. Reported net interest margin was 3.11% for the second quarter of 2026, compared to 3.26% for the first quarter of 2026 and 3.05% for the second quarter of 2025. The first quarter included $167 thousand of loan interest income that did not recur in the second quarter, consisting of an $88 thousand positive adjustment related to a purchased loan pool and $79 thousand of interest collected on a previously nonaccrual loan that repaid in full. Excluding these items, core net interest margin increased modestly to 3.11% for the second quarter from approximately 3.08% for the first quarter.

Underlying loan yields remained stable outside the automobile portfolio. Core loan yield declined to 5.63% for the second quarter from 5.77% for the first quarter. The decline was concentrated in the automobile loan portfolio. Loans excluding automobile loans yielded 5.80% during the second quarter, compared to 5.79% during the first quarter. The reported yield on automobile loans declined to 4.89% from 5.69%, primarily reflecting increased loan prepayments and the resulting acceleration of unamortized purchase premiums. Despite the decline in reported loan yield, core loan interest income increased approximately $164 thousand linked quarter as higher average loan balances and the additional day in the second quarter more than offset the effect of lower reported yields.

Provision expense reflected loan growth rather than credit deterioration. The provision for credit losses increased to $569 thousand for the second quarter of 2026, compared to $86 thousand for the first quarter of 2026 and $79 thousand for the second quarter of 2025. The increase primarily reflected significant loan growth and changes in unfunded commitments. Asset quality remained stable. Nonperforming loans totaled approximately $669 thousand, or 0.25% of total loans, at June 30, 2026, compared to $662 thousand, or 0.27% of total loans, at March 31, 2026. The allowance for credit losses was $3.2 million, or 1.18% of total loans, at June 30, 2026 compared to $2.8 million, or 1.15% of total loans at March 31, 2026.

Mortgage banking activity increased. Mortgage commission income from VA Wholesale Mortgage increased to $353 thousand for the second quarter of 2026 from $197 thousand for the first quarter. The corresponding mortgage commission expense increased to $255 thousand from $145 thousand. Because a substantial portion of mortgage commission expense varies directly with mortgage production and commission revenue, the increase in commission expense should be considered together with the related increase in mortgage commission income. Mortgage commission income, net of directly related commission expense, increased to approximately $98 thousand for the second quarter from approximately $52 thousand for the first quarter.

Linked-quarter expense increase was concentrated in compensation and variable mortgage commissions, while the monthly expense trend improved during the quarter. Total noninterest expense increased $187 thousand to $3.4 million for the second quarter of 2026 from $3.3 million for the first quarter. The increase primarily reflected the addition of two commercial lenders to support the Bank’s Annapolis Loan Production Office, higher variable mortgage commissions associated with increased mortgage banking revenue, and the timing of payroll taxes and employee benefit expenses. Excluding compensation, benefits and mortgage commission expense, all other noninterest expenses declined approximately $104 thousand linked quarter. Monthly noninterest expense also declined as the quarter progressed, with June returning to approximately the preceding 12-month monthly average.

Deposit growth and funding flexibility. Retail deposits increased $4.8 million, or 1.4%, during the second quarter to $343.2 million at June 30, 2026. Total deposits were $357.0 million at June 30, 2026, compared to $357.5 million at March 31, 2026 and $332.4 million at December 31, 2025. Because loan growth exceeded retail deposit growth, wholesale funding increased to $28.2 million at June 30, 2026 from $19.1 million at March 31, 2026. Wholesale funding represented approximately 7.1% of total assets at June 30, 2026.

Sufficient liquidity. At June 30, 2026, the Bank maintained approximately $58.5 million of cash and unencumbered investment securities. The Bank also had access to approximately $83.4 million of available secured and unsecured borrowing capacity. Total on- and off-balance-sheet liquidity was approximately $141.9 million, or 35.9% of total assets.

Regulatory capital. The Bank’s regulatory capital ratios remained above regulatory minimums at June 30, 2026. The Bank’s Common Equity Tier 1 Capital and Tier 1 Risk-Based Capital Ratios were 11.95%, and its Total Risk-Based Capital Ratio was 13.10%. The Bank’s Tier 1 leverage ratio was 8.79% at June 30, 2026.

Operating Results

Net interest income modestly increased $13 thousand to $3.0 million for the second quarter of 2026 compared to the first quarter. Compared to the second quarter of 2025, net interest income increased $243 thousand, or 8.9%.

Total interest income increased $74 thousand compared to linked quarter and $462 thousand, or 11.9%, from the second quarter of 2025. Interest and fees on loans were unchanged linked quarter at $3.5 million despite a $14.8 million increase in average loan balances. The benefit of higher average loan balances and the additional day in the second quarter was offset by $167 thousand of loan-interest income recognized in the first quarter that did not recur in the second quarter, together with increased premium acceleration associated with prepayments in the purchased automobile loan portfolio.

Interest and dividends on securities increased $43 thousand linked quarter, while interest on deposits with banks and federal funds sold increased $33 thousand. These increases reflected the timing of income recognition on certain investment securities, Federal Reserve Bank balances and FHLB stock.

Total interest expense increased $61 thousand to $1.4 million for the second quarter from $1.3 million for the first quarter. The increase primarily reflected the additional day in the quarter and higher average certificate-of-deposit balances and rates. These factors were partially offset by a lower cost on money market accounts. The Company's overall cost of funds remained unchanged linked quarter at 1.52%.

Noninterest income increased $169 thousand to $584 thousand for the second quarter of 2026 from $415 thousand for the first quarter and increased $364 thousand from the second quarter of 2025. The linked-quarter increase was principally attributable to a $156 thousand increase in mortgage commission income from VA Wholesale Mortgage.

Noninterest expense increased $187 thousand to $3.4 million for the second quarter from $3.3 million for the first quarter. Compensation, employee benefits and mortgage commission expense increased $291 thousand, while all other noninterest expenses declined approximately $104 thousand. The compensation-related increase reflected the addition of two commercial lenders supporting the Annapolis LPO, variable mortgage commissions associated with higher mortgage revenue and the timing of payroll taxes and benefits.

The efficiency ratio was 96.7% for the second quarter of 2026, compared to 96.4% for the first quarter of 2026 and 110.0% for the second quarter of 2025. The net operating expense ratio improved to 3.00% from 3.12% linked quarter and 3.41% for the second quarter of 2025. While the year-over-year improvement is encouraging, both measures remain above management’s longer-term objectives and indicate that the Company has not yet achieved the operating leverage necessary to produce acceptable returns. Management remains focused on scalable operating solutions, disciplined expense management and generating sufficient revenue growth to spread the Company’s operating costs across a larger earning-asset base. Management will also continue to evaluate additional opportunities to improve efficiency without limiting the Bank’s ability to support customers, manage risk and execute its growth strategy.

Pre-tax pre-provision income was $117 thousand for the second quarter of 2026, compared to $122 thousand for the first quarter and a pre-tax pre-provision loss of $296 thousand for the second quarter of 2025. The essentially unchanged linked-quarter result reflected the offsetting effects of balance-sheet and revenue growth, lower reported automobile loan yields and compensation-related investments. Although pre-tax pre-provision performance has improved significantly from the prior year, management recognizes that additional revenue growth and operating leverage are needed to produce sustainable profitability and acceptable returns.

Balance Sheet and Funding

Total assets increased to $395.0 million at June 30, 2026 from $380.5 million at March 31, 2026 and $359.9 million at December 31, 2025. The linked-quarter increase was primarily attributable to loan growth, partially offset by lower cash and cash-equivalent balances.

Total loans increased to $267.6 million at June 30, 2026 from $242.6 million at March 31, 2026 and $231.2 million at December 31, 2025. Average loans increased 6.3% linked quarter to $250.9 million from $236.1 million. Period-end loans exceeded second-quarter average loans by approximately $16.7 million. To the extent these balances are maintained, the higher ending loan balance should provide a favorable starting point for third-quarter loan-interest income because the second quarter did not include a full quarter of income on loans originated or purchased throughout the period.

Retail deposits increased to $343.2 million from $338.4 million during the second quarter, while brokered deposits declined to $13.7 million from $19.1 million. Short-term borrowings totaled $14.5 million at June 30, 2026.Total deposits were $357.0 million at June 30, 2026, compared to $357.5 million at March 31, 2026 and $332.4 million at December 31, 2025.

Because loan growth exceeded retail deposit growth, total wholesale funding, consisting of brokered deposits and borrowings, increased to $28.2 million at June 30, 2026 from $19.1 million at March 31, 2026. Wholesale funding increased to 7.1% of total assets from 5.0% at March 31, 2026. The loan-to-deposit ratio increased to approximately 75.0% from 67.8% over the same period. Although the Company used additional wholesale funding and existing liquidity to support loan growth, management believes the Bank continues to maintain substantial liquidity and funding flexibility.

Asset Quality

Asset quality remained stable during the second quarter. Nonperforming loans totaled approximately $669 thousand, or 0.25% of total loans, at June 30, 2026, compared to $662 thousand, or 0.27% of total loans, at March 31, 2026.

Net charge-offs were $108 thousand during the second quarter of 2026, compared to $54 thousand during the first quarter and $45 thousand during the second quarter of 2025. For the six months ended June 30, 2026, net charge-offs were $162 thousand, compared to $49 thousand for the first six months of 2025. Annualized net charge-offs represented approximately 0.13% and 0.05% of average loans for the six months ended June 30, 2026 and 2025, respectively.

The allowance for credit losses increased to $3.2 million, or 1.18% of total loans, at June 30, 2026 from $2.8 million at March 31, 2026. Management believes the increase in the allowance and provision expense primarily reflected loan growth and changes in unfunded commitments, rather than deterioration in credit quality.

Capital Position

Stockholders' equity increased to $21.3 million at June 30, 2026 from $21.0 million at March 31, 2026 and $18.9 million at June 30, 2025. The linked-quarter increase primarily reflected an improvement in accumulated other comprehensive loss associated with the market value of available-for-sale securities, partially offset by the second-quarter net loss.

The Bank's regulatory capital ratios remained above regulatory minimum requirements at June 30, 2026. Continued balance-sheet growth, together with limited current earnings retention, has increased the importance of disciplined capital planning. Management continues to evaluate capital alternatives intended to support prudent growth, maintain appropriate capital cushions and improve long-term shareholder returns.

Results for the second quarter of 2026 reflected continued execution of the Company’s balance-sheet optimization and growth strategy. During the quarter, the Company generated strong loan growth, maintained stable asset quality and underlying net interest margin performance, increased mortgage banking revenue and continued investing in commercial relationship development. Management remains focused on converting this growth into sustainable earnings, improving operating leverage and maintaining appropriate liquidity and capital levels.

Glen Burnie Bancorp Information

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 six branch offices serving Anne Arundel County and a loan production office in Annapolis, Maryland. The Bank is engaged in the commercial and retail banking business including the acceptance of demand and time deposits, and the origination of loans to individuals, associations, partnerships, non-profits and corporations. The Bank’s real estate financing consists of residential first and second mortgage loans, home equity lines of credit and commercial mortgage loans. Additional information is available at www.thebankofglenburnie.com.

Forward-Looking Statements

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements are often identified by words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” “may,” “should,” or similar expressions.

These statements are not guarantees of future performance and involve known and unknown risks and uncertainties. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

For further information contact:Todd L. Capitani, Chief Financial Officer and Treasurer410-768-8883tcapitani@bogb.net106 Padfield BlvdGlen Burnie, MD 21061