DUBLIN, Ga., April 23, 2025 (GLOBE NEWSWIRE) -- Morris State Bancshares, Inc. (OTCQX: MBLU) (the “Company”), the parent of Morris Bank, today announced net income of $4.9 million for the quarter ending March 31, 2025, representing an increase of $22 thousand, or 0.45%, compared to net income of $4.9 million for the quarter ended March 31, 2024. In the linked quarter comparison, net income decreased $1.2 million, or 20.04%, compared to net income of $6.1 million for the quarter ending December 31, 2024. Net interest income before provision for credit losses increased from the linked and prior year quarters by $980 thousand and $2.5 million, respectively. The decline in linked quarterly net earnings was primarily driven by higher income tax provisioning, increased CECL-related reserves for unfunded loan commitments, and an increase in salary and benefits costs related to the payment of first quarter bonuses for the prior year.
“We are very pleased with our first-quarter performance, highlighted by strong growth in core net interest income. This was driven by a 12 basis-point expansion in our net interest margin compared to the fourth quarter of last year. Despite significant loan payoffs during the quarter, we achieved loan growth of over $23 million, or 2.12%, representing an annualized growth rate of 8.48%. Our asset quality remains strong, and we’ve seen a slight reduction in our adversely classified ratio from the same time last year,” said Spence Mullis, Chairman and CEO.
The net interest margin was 4.29% for the first quarter of 2025 compared to 4.17% for the fourth quarter of 2024 and 3.99% for the first quarter of 2024. The average yield on earning assets grew 6 basis points from 6.01%, as of December 31, 2024, to 6.07%, while the Bank’s cost of funds decreased 9 basis points from 2.06% to 1.97% during the same period.
Provision for credit losses increased $549 thousand and provisioning for unfunded loan commitments increased $521 thousand during the quarter as a result of loan growth. The Company’s asset quality improved during the quarter, as reflected by a decline in the Bank’s adversely classified asset index from 4.96% as of December 31, 2024, to 4.66% as of March 31, 2025. The Bank’s reserve as a percentage of total loans was 1.30% for March 31, 2025, as compared to 1.30% for December 31, 2024, and 1.34% for March 31, 2024. Noninterest expense increased $621 thousand, or 6.95%, compared to the prior quarter ended December 31, 2024, due mainly to higher salary and benefits expenses. With the expiration of solar project tax credits used by the Company each of the last three years, income tax provision increased by $1.0 million, or 217.28%, during the quarter.
After paying a regular quarterly dividend of $0.12 per share and a one-time special dividend of $0.15 per share, the Company’s total shareholders’ equity increased 1.18% during the quarter to $198 million as of March 31, 2025, and up 8.75%, or $15.9 million, from March 31, 2024. The tangible book value of the company grew to $17.66 on March 31, 2025, from $17.45 on December 31, 2024, and was up 9.21% from $16.171 as of March 31, 2024. On April 16, 2025, the board of directors approved a second quarter dividend of $0.12 per share payable on or about June 15, 2025, to all shareholders of record as of May 15, 2025.
Forward-looking Statements
Certain statements contained in this release may not be based on historical facts and are forward-looking statements. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including, among others, the business and economic conditions; risks related to the integration of acquired businesses and any future acquisitions; changes in management personnel; interest rate risk; ability to execute on planned expansion and organic growth; credit risk and concentrations associated with the Company’s loan portfolio; asset quality and loan charge-offs; inaccuracy of the assumptions and estimates management of the Company makes in establishing reserves for probable loan losses and other estimates; lack of liquidity; impairment of investment securities, goodwill or other intangible assets; the Company’s risk management strategies; increased competition; system failures or failures to prevent breaches of our network security; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes; and increases in capital requirements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
1 Common stock, tangible book value and per share amounts for March 31, 2024 and previous quarters have been adjusted to reflect the April 22, 2024 4-for-1 stock dividend.
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet
March 31,
December 31,
March 31,
2025
2024
Change
% Change
2024
Change
% Change
(Unaudited)
(Unaudited)
ASSETS
Cash and due from banks
$
92,342,678
$
53,898,138
$
38,444,540
71.33
%
$
67,354,916
$
24,987,762
37.10
%
Federal funds sold
15,606,716
42,064,131
(26,457,415
)
-62.90
%
3,746,408
11,860,308
316.58
%
Total cash and cash equivalents
107,949,394
95,962,269
11,987,125
12.49
%
71,101,324
36,848,070
51.82
%
Interest-bearing time deposits in other banks
100,000
100,000
--
0.00
%
100,000
--
0.00
%
Securities available for sale, at fair value
9,414,147
9,726,716
(312,569
)
-3.21
%
7,845,095
1,569,052
0.00
%
Securities held to maturity, at cost (net of CECL Reserve)
208,561,077
215,836,502
(7,275,425
)
-3.37
%
231,758,455
(23,197,378
)
-10.01
%
Federal Home Loan Bank stock, restricted, at cost
1,084,200
1,032,800
51,400
4.98
%
1,029,600
54,600
5.30
%
Loans, net of unearned income
1,139,719,828
1,116,074,659
23,645,169
2.12
%
1,060,755,992
78,963,836
7.44
%
Less-allowance for credit losses
(14,829,709
)
(14,488,525
)
(341,184
)
2.35
%
(14,236,149
)
(593,560
)
4.17
%
Loans, net
1,124,890,119
1,101,586,134
23,303,985
2.12
%
1,046,519,843
78,370,276
7.49
%
Bank premises and equipment, net
14,844,597
12,780,014
2,064,583
16.15
%
13,112,437
1,732,160
13.21
%
ROU assets for operating lease, net
692,339
776,979
(84,640
)
-10.89
%
1,035,712
(343,373
)
-33.15
%
Goodwill
9,361,704
9,361,704
--
0.00
%
9,361,704
--
0.00
%
Intangible assets, net
1,253,288
1,338,964
(85,676
)
-6.40
%
1,594,101
(340,813
)
-21.38
%
Other real estate and foreclosed assets
15,503
21,898
(6,395
)
-29.20
%
38,558
(23,055
)
-59.79
%
Accrued interest receivable
6,369,932
7,278,258
(908,326
)
-12.48
%
5,964,911
405,021
6.79
%
Cash surrender value of life insurance
15,233,512
15,128,762
104,750
0.69
%
14,813,139
420,373
2.84
%
Other assets
21,726,495
22,674,658
(948,163
)
-4.18
%
25,151,653
(3,425,158
)
-13.62
%
Total Assets
$
1,521,496,307
$
1,493,605,658
$
27,890,649
1.87
%
$
1,429,426,532
92,069,775
6.44
%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing
$
330,414,834
$
325,534,335
$
4,880,499
1.50
%
$
302,810,356
27,604,478
9.12
%
Interest bearing
963,948,287
939,354,005
24,594,282
2.62
%
904,181,606
59,766,681
6.61
%
1,294,363,121
1,264,888,340
29,474,781
2.33
%
1,206,991,962
87,371,159
7.24
%
Other borrowed funds
19,029,606
19,019,372
10,234
0.05
%
27,169,934
(8,140,328
)
-29.96
%
Lease liability for operating lease
692,339
776,979
(84,640
)
-10.89
%
1,035,712
(343,373
)
-33.15
%
Accrued interest payable
2,778,669
2,111,093
667,576
31.62
%
1,419,439
1,359,230
95.76
%
Accrued expenses and other liabilities
6,726,119
11,206,717
(4,480,598
)
-39.98
%
10,830,616
(4,104,497
)
-37.90
%
Total liabilities
1,323,589,854
1,298,002,501
25,587,353
1.97
%
1,247,447,663
76,142,191
6.10
%
Shareholders' Equity:
Common stock
10,701,756
10,688,723
13,033
0.12
%
10,645,509
56,247
0.53
%
Paid in capital surplus
35,307,009
34,936,059
370,950
1.06
%
34,349,749
957,260
2.79
%
Retained earnings
149,055,224
130,111,050
18,944,174
14.56
%
133,038,717
16,016,507
12.04
%
Current year earnings
4,913,056
21,804,345
(16,891,289
)
-77.47
%
4,890,818
22,238
0.45
%
Accumulated other comprehensive income (loss)
1,289,137
1,422,709
(133,572
)
-9.39
%
1,811,160
(522,023
)
-28.82
%
Treasury Stock, at cost 95,498
(3,359,729
)
(3,359,729
)
--
0.00
%
(2,757,084
)
(602,645
)
21.86
%
Total shareholders' equity
197,906,453
195,603,157
2,303,296
1.18
%
181,978,869
15,927,584
8.75
%
Total Liabilities and Shareholders' Equity
$
1,521,496,307
$
1,493,605,658
27,890,649
1.87
%
$
1,429,426,532
92,069,775
6.44
%
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Consolidating Statement of Income
for the Three Months Ended
March 31,
December 31,
March 31,
2025
2024
Change
% Change
2024
Change
% Change
(Unaudited)
(Unaudited)
(Unaudited)
Interest and Dividend Income:
Interest and fees on loans
$
19,338,360
$
18,818,919
$
519,441
2.76
%
$
17,124,889
$
2,213,471
12.93
%
Interest income on securities
1,671,657
1,735,131
(63,474
)
-3.66
%
1,970,394
(298,737
)
-15.16
%
Income on federal funds sold
534,479
363,781
170,698
46.92
%
168,129
366,350
217.90
%
Income on time deposits held in other banks
605,454
362,174
243,280
67.17
%
408,412
197,042
48.25
%
Other interest and dividend income
25,413
22,116
3,297
14.91
%
75,848
(50,435
)
-66.49
%
Total interest and dividend income
22,175,363
21,302,121
873,242
4.10
%
19,747,672
2,427,691
12.29
%
Interest Expense:
Deposits
6,413,065
6,401,228
11,837
0.18
%
6,339,843
73,222
1.15
%
Interest on other borrowed funds
286,480
404,974
(118,494
)
-29.26
%
445,278
(158,798
)
-35.66
%
Interest on federal funds purchased
--
129
(129
)
-100.00
%
--
--
0.00
%
Total interest expense
6,699,545
6,806,331
(106,786
)
-1.57
%
6,785,121
(85,576
)
-1.26
%
Net interest income before provision for loan losses
15,475,818
14,495,790
980,028
6.76
%
12,962,551
2,513,267
19.39
%
Less-provision for credit losses
577,123
27,972
549,151
1963.22
%
4,501
572,622
12722.11
%
Net interest income after provision for credit losses
14,898,695
14,467,818
430,877
2.98
%
12,958,050
1,940,645
14.98
%
Noninterest Income:
Service charges on deposit accounts
540,600
560,822
(20,222
)
-3.61
%
491,568
49,032
9.97
%
Other service charges, commissions and fees
380,482
393,175
(12,693
)
-3.23
%
362,692
17,790
4.90
%
Gain on sales of foreclosed assets
--
--
--
--
700
(700
)
-100.00
%
Gain on sale of securities available for sale
--
447
(447
)
-100.00
%
--
--
447
Increase in CSV of life insurance
104,750
106,388
(1,638
)
-1.54
%
101,516
3,234
3.19
%
Other income
20,407
15,349
5,058
32.95
%
251,361
(230,954
)
-91.88
%
Total noninterest income
1,046,239
1,076,181
(29,942
)
-2.78
%
1,207,837
(161,598
)
-13.38
%
Noninterest Expense:
Salaries and employee benefits
5,122,152
4,743,238
378,914
7.99
%
4,861,534
260,618
5.36
%
Occupancy and equipment expenses, net
527,532
550,212
(22,680
)
-4.12
%
545,126
(17,594
)
-3.23
%
Loss on sales of foreclosed assets
--
8,457
(8,457
)
-100.00
%
--
--
--
Other expenses
3,905,857
3,632,476
273,381
7.53
%
3,716,219
189,638
5.10
%
Total noninterest expense
9,555,541
8,934,383
621,158
6.95
%
9,122,879
432,662
4.74
%
Income Before Income Taxes
6,389,393
6,609,616
(220,223
)
-3.33
%
5,043,008
1,346,385
26.70
%
Provision for income taxes
1,476,337
465,314
1,011,023
217.28
%
152,190
1,324,147
870.06
%
-
Net Income
$
4,913,056
$
6,144,302
(1,231,246
)
-20.04
%
$
4,890,818
22,238
0.45
%
Earnings per common share:
Basic
$
0.46
$
0.58
(0.12
)
-20.69
%
$
0.46
-
0.00
%
Diluted
$
0.46
$
0.58
(0.12
)
-20.69
%
$
0.46
-
0.00
%
.
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Quarter Ending
March 31,
December 31,
March 31,
2025
2024
2024
Dollars in thousand, except per share data
(Unaudited)
(Unaudited)
(Unaudited)
Per Share Data
Basic Earnings per Common Share
$
0.46
$
0.58
$
0.46
Diluted Earnings per Common Share
0.46
0.58
0.46
Dividends per Common Share
0.27
0.092
0.092
Book Value per Common Share
18.66
18.46
17.20
Tangible Book Value per Common Share
17.66
17.45
16.17
Average Diluted Shared Outstanding
10,593,370
10,596,432
10,602,289
End of Period Common Shares Outstanding
10,606,258
10,593,225
10,624,932
Annualized Performance Ratios (Bank Only)
Return on Average Assets
1.41
%
1.79
%
1.55
%
Return on Average Equity
11.12
%
13.69
%
11.74
%
Equity/Assets
12.75
%
12.84
%
13.09
%
Yield on Earning Assets
6.07
%
6.01
%
5.87
%
Cost of Funds
1.97
%
2.06
%
2.09
%
Net Interest Margin
4.29
%
4.17
%
3.99
%
Efficiency Ratio
57.90
%
54.21
%
61.48
%
Credit Metrics
Allowance for Credit Losses to Total Loans
1.30
%
1.30
%
1.34
%
Adversely Classified Assets to Tier 1 Capital
plus Allowance for Credit Losses
4.66
%
4.96
%
5.22
%
CONTACT: CONTACT: Morris State Bancshares Chris Bond Chief Financial Officer 478-272-5202
