DUBLIN, Ga., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Morris State Bancshares, Inc. (OTCQX: MBLU) (the “Company”), the parent of Morris Bank (the “Bank”), today reported its financial results for the quarter and year ended December 31, 2024. Year over year and quarter by quarter comparisons are included herewith.
On January 29, 2025, the Company’s Board of Directors announced a 30.43% increase in its quarterly cash dividend, raising it to $0.12 per common share—an increase of $0.028 per share over the quarterly dividend of $0.092 paid in each of the prior quarters last year1. This dividend will be payable on or about March 14, 2025, to all shareholders of record as of February 15, 2025. In addition to this increase, the Board also approved a one-time special dividend of $0.15 per common share. This special dividend will be payable on or about March 21, 2025, to all shareholders of record as of February 15, 2025.
"We are extremely pleased with the Company's strong financial performance in 2024, achieving net earnings of $21.8 million. As the Federal Reserve pivoted during the year and decreased interest rates for the first time since March of 2020, our team effectively managed our net interest margin, closing the year at 4.06%—an increase of 8 basis points from the prior year end," said Spence Mullis, Chairman and CEO. "At the bank level, we achieved a 1.68% return on average assets and a 12.74% return on average equity, closing the year with a leverage ratio of 12.84%, placing us in the top 10% of our FDIC peer group* in terms of capital strength. As mentioned in our third-quarter earnings release, given our strong capital position at both the bank and holding company and solid cash position at the holding company, we have the ability and plan to retire the remaining $15.0 million in subordinated debt when the window for retirement opens in July 2025. With our robust capital levels and strong earnings performance, we are well-positioned to capitalize on strategic opportunities and drive continued organic growth within our existing footprint while continuing to grow value for our shareholders through earnings and dividends."
Following is a summary of the quarterly and annual highlights:
Fourth Quarter 2024 Highlights
Net income for the fourth quarter of 2024 was $6.1 million, compared to $5.4 million for the third quarter of 2024 and $5.9 million for the fourth quarter of 2023.
Diluted earnings per share for the fourth quarter of 2024 was $0.52, compared to $0.51 for the third quarter of 2024 and $0.56 for the fourth quarter of 2023.
Earnings before taxes for the fourth quarter of 2024 was $6.6 million, compared to $5.7 million for the third quarter of 2024 and $5.5 million for the fourth quarter of 2023.
Net loans in the fourth quarter of 2024 totaled $1.10 billion, versus $1.05 billion in the third quarter of 2024 and $1.06 billion at year end 2023.
Average cost of funds for the fourth quarter of 2024 was 206 basis points, compared to 218 basis points for the third quarter of 2024 and 192 basis points for the fourth quarter of 2023.
Return on average assets (annualized) at the bank level for the fourth quarter of 2024 was 1.79%, compared to 1.65% for the third quarter of 2024 and 1.84% for the fourth quarter of 2023.
Full Year 2024 Highlights
Total assets remained level at $1.49 billion at December 31, 2024, compared to $1.44 billion at December 31, 2023.
Earnings before income taxes totaled $23.0 million at December 31, 2024 compared to $21.5 million at December 31, 2023.
Full year net income of $21.8 million in 2024, compared to $19.3 million in 2023.
Return on average assets at the bank level of 1.68% for the full year 2024, compared to 1.55% for 2023.
Diluted earnings per share of $2.72 in 2024, compared to $1.83 in 2023.
Total shareholders’ equity increased 9.81% or $17.5 million to $195.6 million at December 31, 2024, compared to $178.1 million at December 31, 2023.
Tangible book value per share of $17.45 at December 31, 2024, compared to $15.79 at December 31, 2023.
Net loans grew $52.1 million, or 4.96%, during 2024.
The Bank’s asset quality remains solid, ending the year with nonperforming assets to total loans and other real estate of 0.41%, past due and nonaccrual loans of 0.72% and net charge offs to average loans of 0.04% for 2024.
Bank-level efficiency ratio net of tax credit amortization expense was 53.30% in 2024, compared to 52.99% in 2023.
*as defined in the FDIC’s Uniform Bank Performance Report
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,” “plan,” “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 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
Consolidated Balance Sheets
December 31, 2024 and 2023
December 31,
December 31,
2024
2023
Change
% Change
(Unaudited)
(Unaudited)
ASSETS
Cash and due from banks
$
53,898,138
$
51,060,389
$
2,837,749
5.56
%
Federal funds sold
42,064,131
17,268,446
24,795,685
143.59
%
Total cash and cash equivalents
95,962,269
68,328,835
27,633,434
40.44
%
Interest-bearing time deposits in other banks
100,000
100,000
--
0.00
%
Securities available for sale, at fair value
9,726,716
7,875,780
1,850,936
0.00
%
Securities held to maturity, at cost
215,836,502
240,205,635
(24,369,133
)
-10.15
%
Federal Home Loan Bank stock, restricted, at cost
1,032,800
1,029,600
3,200
0.31
%
Loans, net of unearned income
1,116,074,659
1,063,772,222
52,302,437
4.92
%
Less-allowance for loan losses
(14,488,525
)
(14,291,923
)
(196,602
)
1.38
%
Loans, net
1,101,586,134
1,049,480,299
52,105,835
4.96
%
Bank premises and equipment, net
12,780,014
13,188,353
(408,339
)
-3.10
%
ROU assets for operating lease, net
776,979
1,126,156
(349,177
)
-31.01
%
Goodwill
9,361,704
9,361,704
--
0.00
%
Intangible assets, net
1,338,964
1,679,989
(341,025
)
-20.30
%
Other real estate and foreclosed assets
21,898
3,611,235
(3,589,337
)
-99.39
%
Accrued interest receivable
7,278,258
6,424,090
854,168
13.30
%
Cash surrender value of life insurance
15,128,762
14,711,623
417,139
2.84
%
Other assets
22,674,658
25,321,092
(2,646,434
)
-10.45
%
Total Assets
$
1,493,605,658
$
1,442,444,391
$
51,161,267
3.55
%
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing
$
325,534,335
$
316,224,444
$
9,309,891
2.94
%
Interest bearing
939,354,005
909,976,336
29,377,669
3.23
%
1,264,888,340
1,226,200,780
38,687,560
3.16
%
Other borrowed funds
19,019,372
27,151,283
(8,131,911
)
-29.95
%
Lease liability for operating lease
776,979
1,126,156
(349,177
)
-31.01
%
Accrued interest payable
2,111,093
1,059,226
1,051,867
99.31
%
Accrued expenses and other liabilities
11,206,717
8,773,430
2,433,287
27.73
%
Total liabilities
1,298,002,501
1,264,310,875
33,691,626
2.66
%
Shareholders' Equity:
Common stock
10,688,723
10,645,508
43,215
0.41
%
Paid in capital surplus
34,936,059
33,711,561
1,224,498
3.63
%
Retained earnings
130,111,050
115,232,196
14,878,854
12.91
%
Current year earnings
21,804,345
19,332,489
2,471,856
12.79
%
Accumulated other comprehensive income (loss)
1,422,709
1,968,846
(546,137
)
-27.74
%
Treasury Stock, at cost 95,498 shares
(3,359,729
)
(2,757,084
)
(602,645
)
21.86
%
Total shareholders' equity
195,603,157
178,133,516
17,469,641
9.81
%
Total Liabilities and Shareholders' Equity
$
1,493,605,658
$
1,442,444,391
51,161,267
3.55
%
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Consolidated Statements of Income
For the Years Ended December 31, 2024 and 2023
December 31,
December 31,
2024
2023
Change
% Change
(Unaudited)
(Unaudited)
Interest and Dividend Income:
Interest and fees on loans
$
72,453,630
$
62,157,217
$
10,296,413
16.57
%
Interest income on securities
7,368,157
8,196,152
(827,995
)
-10.10
%
Income on federal funds sold
851,717
627,235
224,482
35.79
%
Income on time deposits held in other banks
1,699,224
1,214,072
485,152
39.96
%
Other interest and dividend income
183,239
255,689
(72,450
)
-28.34
%
Total interest and dividend income
82,555,967
72,450,365
10,105,602
13.95
%
Interest Expense:
Deposits
25,981,731
18,599,664
7,382,067
39.69
%
Interest on other borrowed funds
1,548,980
2,148,019
(599,039
)
-27.89
%
Interest on federal funds purchased
296
842
(546
)
-64.85
%
Total interest expense
27,531,007
20,748,525
6,782,482
32.69
%
Net interest income before provision for loan losses
55,024,960
51,701,840
3,323,120
6.43
%
Less-provision for loan losses
556,913
450,475
106,438
23.63
%
Net interest income after provision for loan losses
54,468,047
51,251,365
3,216,682
6.28
%
Noninterest Income:
Service charges on deposit accounts
2,164,988
2,143,550
21,438
1.00
%
Other service charges, commissions and fees
1,553,493
1,589,747
(36,254
)
-2.28
%
Gain on sales of foreclosed assets
--
--
--
0.00
%
Gain on sales and calls of securities
182
--
182
0.00
%
Gain on sale of loans
--
--
--
--
Increase in CSV of life insurance
417,139
378,079
39,060
10.33
%
Other income
644,868
606,754
38,114
6.28
%
Total noninterest income
4,780,670
4,718,130
62,540
1.33
%
Noninterest Expense:
Salaries and employee benefits
19,050,416
17,414,685
1,635,731
9.39
%
Occupancy and equipment expenses, net
2,223,832
2,250,663
(26,831
)
-1.19
%
(Gain) Loss on sales of foreclosed assets and other real estate
9,681
321,783
(312,102
)
0.00
%
Loss on sales of premises and equipment
--
54,269
(54,269
)
-100.00
%
Tax credit amortization expense
2,920,825
2,733,248
187,577
6.86
%
Other expenses
12,040,179
11,713,425
326,754
2.79
%
Total noninterest expense
36,244,933
34,488,073
1,756,860
5.09
%
Income Before Income Taxes
23,003,784
21,481,422
1,522,362
7.09
%
Provision for income taxes
1,199,439
2,148,933
(949,494
)
-44.18
%
Net Income
$
21,804,345
$
19,332,489
2,471,856
12.79
%
Earnings per common share:
Basic
$
2.72
$
1.83
0.89
48.63
%
Diluted
$
2.72
$
1.83
0.89
48.63
%
Per share amounts for December 31, 2023 has been adjusted to reflect the April 22, 2024 4-for-1 stock dividend.
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Selected Financial Information
Year Ending
Quarter Ended
December 31,
December 31,
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2023
2024
2024
2024
2024
2023
(Dollars in thousand, except per share data)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Per Share Data
Basic Earnings per Common Share
$
2.72
$
1.83
$
0.52
$
0.51
$
0.50
$
0.46
$
0.56
Diluted Earnings per Common Share
2.72
1.83
0.52
0.51
0.50
0.46
0.56
Dividends per Common Share
0.368
0.352
0.092
0.092
0.092
0.092
0.088
Book Value per Common Share
18.46
16.84
18.46
17.99
17.56
17.20
16.84
Tangible Book Value per Common Share
17.45
15.79
17.45
16.97
16.53
16.17
15.79
Average Diluted Shares Outstanding
10,603,218
10,582,377
10,596,432
10,602,348
10,611,811
10,582,377
10,582,820
End of Period Common Shares Outstanding
10,593,225
10,582,219
10,593,225
10,596,345
10,605,080
10,582,218
10,581,052
Selected Balance Sheet Data (Bank Only)
Net Loans
$
1,101,586
$
1,049,480
$
1,101,586
$
1,048,418
$
1,023,367
$
1,040,412
$
1,063,772
Non-Interest Bearing Deposits
347,929
315,953
347,929
336,698
339,177
346,232
339,785
Interest Bearing Demand Deposits
260,371
286,112
260,371
249,649
243,744
260,624
270,473
Savings & Money Market Deposits
402,641
393,139
402,641
401,234
422,048
441,911
444,170
Time Deposits
276,898
231,692
276,898
211,590
193,110
175,534
161,933
Earnings Summary
Net Interest Income
55,025
51,701
14,496
13,998
13,569
12,963
12,934
Provision for Credit Losses
557
450
28
252
272
5
242
Non-Interest Income
4,781
4,718
1,076
1,106
1,392
1,208
1,098
Non-Interest Expense
36,245
34,488
8,934
9,142
9,047
9,123
8,275
Earnings before Taxes
23,004
21,481
6,610
5,710
5,641
5,043
5,515
Income Taxes
1,199
2,149
465
263
319
152
(416
)
Net Income
21,804
19,332
6,144
5,447
5,322
4,891
5,931
Annualized Performance Ratios (Bank Only)
Return on Average Assets
1.68
%
1.55
%
1.79
%
1.65
%
1.73
%
1.55
%
1.84
%
Return on Average Equity
12.74
%
12.25
%
13.69
%
12.37
%
13.12
%
11.74
%
14.11
%
Equity/Assets
12.84
%
13.07
%
12.84
%
13.23
%
13.18
%
13.09
%
13.07
%
Cost of Funds
2.12
%
1.57
%
2.06
%
2.18
%
2.16
%
2.09
%
1.92
%
Net Interest Margin
4.06
%
3.98
%
4.17
%
4.10
%
4.02
%
3.95
%
3.97
%
Efficiency Ratio
58.27
%
57.51
%
54.21
%
58.90
%
58.36
%
61.92
%
55.17
%
Efficiency Ratio Net of Tax Credit Amortization Expense
53.30
%
52.99
%
49.45
%
53.96
%
53.40
%
56.68
%
50.90
%
Nonperforming Assets to Total Loans and Other Real Estate
0.41
%
0.58
%
0.41
%
0.46
%
0.39
%
0.28
%
0.58
%
Past Due and Nonaccural Loans Ratio
0.72
%
0.65
%
0.72
%
1.01
%
0.68
%
0.73
%
0.65
%
Net Chargeoffs to Average Loans
0.04
%
0.01
%
0.01
%
0.03
%
0.02
%
0.00
%
0.33
%
Shares outstanding and per share amounts for March 31, 2024 and prior quarters have been adjusted to reflect the April 22, 2024 4-for-1 stock dividend.
CONTACT: CONTACT: Morris State Bancshares Chris Bond Chief Financial Officer 478-272-5202
