Gateway Bank, F.S.B.

Gateway Bank reported a Q2 net loss of $171,000, a sharp improvement from $827,000 a year ago, driven by 35% loan growth and net interest margin expansion to 3.05%. Net interest income jumped 81% year-over-year to $2.15 million, though the margin benefited from a one-time nonaccrual interest recovery that won't repeat. The new construction lending team is already contributing, with a robust pipeline expected to fund through year-end. While still unprofitable, the trend toward breakeven is accelerating, and the loan book is growing rapidly. The bank remains small with a $27 million market cap, so these improvements are material.