Merchants & Marine Bancorp, Inc. Announces 2023 Financial Results
- Record net income of $6.29 million in 2023, with earnings per share of $4.73.
- Gross income increased by 34.82% to $42.77 million.
- Net loans grew by 4.81% to $418.01 million.
- Total deposits decreased by 10.03% to $498.13 million.
- Improved loan yields and increased interest income contributed to the strong financial performance.
- Credit quality remained strong with a decrease in past due loans and non-accrual loans.
- None.
Selected financial highlights:
-
Loans continued to grow in 2023, although at a slower pace than in recent years, with annual loan growth of
4.81% . Yield on net loans increased by 125 basis points, or26.04% , to6.05% at year-end 2023 from4.80% at the end of 2022. -
Total interest income for 2023 increased to
from$31.09 million in 2022, a lift of$23.78 million 30.73% . The increase is primarily due to increased interest income on loans, which increased to in 2023 from$25.29 million in 2022. This increase is due both to improved loan yields and incremental loan growth.$19.16 million - The company’s cost of funds increased slightly in 2023, though much more slowly than seen in the broader banking market. Interest expense as a function of total assets grew totaled 28 basis points for the 2023 fiscal year. While this is a marked increase from just 15 basis points during 2022, the company’s cost of funds remains substantially below peer averages and serves as a strategic advantage.
-
Credit quality remained strong at the end of 2023. The ratio of loans past due 30-89 days fell to just
0.25% of total loans at the end of the year compared to0.74% at the end of 2022. The ratio of non-accrual loans decreased to0.70% of total loans at the end of 2023 from1.29% of total loans at the end of the prior year. -
Accumulated Other Comprehensive Income (AOCI) mark-to-market losses in the securities portfolio improved to (
) at the end of 2023 from ($8.57 million ) at the end of 2022. This represents just$10.09 million 6.92% of tangible equity. -
On balance sheet liquidity levels remain robust. Cash and cash equivalents remain healthy at
. In addition, the bank’s$65.96 million investment portfolio remains liquid, with a significant portion able to be liquidated with no or only minimal losses.$146 million -
In addition to the sizeable on-balance sheet liquidity position, the bank has more than
in additional borrowing capacity at the Federal Home Loan Bank of$250 million Dallas and the Federal Reserve Bank ofAtlanta . -
The bank took advantage of beneficial terms on the Bank Term Funding Program (BTFP) from the Federal Reserve, borrowing
at a rate of$50 million 4.9% for 12 months in December of 2023. Funds borrowed through the BTFP can be repaid at any time by the bank without penalty. The bank earns the effective Federal Funds Rate on sold balances generated from this borrowing, usually around5.3% , creating a spread of around 40 basis points. These funds provided the company additional flexibility in managing its strong deposit base and low cost of funds through the current rate cycle.
“The company’s financial performance through 2023 constituted a record year in terms of both top-line revenues and in net income,” remarked Casey Hill, the company’s Chief Financial Officer. “We saw marked growth in both gross loan yields and our net interest margin. This is thanks to the efforts of our team in repricing our loan portfolio to market rates, and in providing value to our depositors that kept our interest expense very low. In addition, asset quality is better than it has ever been. While we have seen deposit betas continue to increase slightly, the fact that we ended 2023 with a negative non-core funding dependency should lead us to believe that most of the deposits that have exited and continue to do so are non-core in nature, and our empirical data supports that conclusion. Instead of purchasing securities with the glut of cash caused by government stimulus in response to COVID-19, we chose to allow the cash to sit on the balance sheet because we expected to see material runoff of non-core deposits. This has served to allow us to keep funding costs exceptionally low while also avoiding the AOCI investment losses to which many of our competitors are now exposed.”
The bank drew on the Federal Reserve’s Bank Term Funding Program (BTFP) in November of 2023, and then repaid and refinanced the
“In December, the bank refinanced its
“We are very pleased with our team’s superior performance in 2023, and the strong financial results they produced,” remarked Clayton Legear, the Company’s Chief Executive Officer. “Our Battle-Ready Balance Sheet, which was built in the aftermath of COVID-19, has allowed us to not only drive strong financial results but to also maintain significant agility in managing through market conditions that have negatively impacted many of our peers. We have leveraged our position of strength to not only grow our Family of Brands – which will soon include Mississippi River Bank – but to also provide support and stability to businesses and individuals throughout the communities we serve. We look forward to continuing to leverage our Battle-Ready Balance Sheet and our unique Family of Brands to drive sustained strong performance.”
Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) is the parent company of Merchants & Marine Bank, a
MERCHANTS & MARINE BANCORP, INC. | |||||||
CONSOLIDATED FINANCIALS (UNAUDITED) | |||||||
BALANCE SHEET | |||||||
ASSETS | December 31, 2023 | December 31,2022 | |||||
TOTAL CASH & DUE FROM |
|
65,963,381.02 |
|
|
23,135,852.03 |
|
|
TOTAL SECURITIES |
|
145,712,911.18 |
|
|
208,540,009.22 |
|
|
TOTAL FEDERAL FUNDS SOLD |
|
156,524.85 |
|
|
3,625,000.00 |
|
|
TOTAL LOANS |
|
425,691,618.58 |
|
|
402,386,981.23 |
|
|
Begin Year Reserve for Loss |
|
(3,566,893.00 |
) |
|
(3,609,893.00 |
) |
|
Recoveries on Charge Off |
|
(306,032.03 |
) |
|
(515,029.28 |
) |
|
Charge Offs Current Year |
|
596,625.42 |
|
|
762,796.58 |
|
|
Allowance-Current Year |
|
(4,407,772.39 |
) |
|
(204,767.30 |
) |
|
RESERVE FOR LOSSES ON LOANS |
|
(7,684,072.00 |
) |
|
(3,566,893.00 |
) |
|
NET LOANS |
|
418,007,546.58 |
|
|
398,820,088.23 |
|
|
NET FIXED ASSETS |
|
26,813,425.17 |
|
|
23,684,084.55 |
|
|
Other Real Estate |
|
22,400.00 |
|
|
- |
|
|
Other Assets |
|
30,180,802.52 |
|
|
28,854,803.13 |
|
|
TOTAL OTHER ASSETS |
|
30,203,202.52 |
|
|
28,854,803.13 |
|
|
TOTAL ASSETS | $ |
686,856,991.32 |
|
|
686,659,837.16 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Liabilities | |||||||
Demand Deposits | $ |
347,482,353.12 |
|
|
377,271,926.41 |
|
|
Public Funds |
|
16,084,627.24 |
|
|
18,004,742.81 |
|
|
TOTAL DEMAND DEPOSITS |
|
363,566,980.36 |
|
|
395,276,669.22 |
|
|
Savings |
|
93,624,942.27 |
|
|
99,077,343.32 |
|
|
C D's |
|
30,898,001.64 |
|
|
45,527,868.51 |
|
|
I R A's |
|
7,809,136.18 |
|
|
8,990,442.96 |
|
|
CDARS |
|
2,232,281.72 |
|
|
4,816,144.96 |
|
|
TOTAL TIME & SAVINGS DEPOSITS |
|
134,564,361.81 |
|
|
158,411,799.75 |
|
|
TOTAL DEPOSITS |
|
498,131,342.17 |
|
|
553,688,468.97 |
|
|
SECURITIES SOLD UNDER REPO | |||||||
& BORRROWINGS |
|
53,631,490.57 |
|
|
4,167,435.06 |
|
|
DIVIDENDS PAYABLE |
|
731,685.90 |
|
|
731,685.90 |
|
|
TOTAL OTHER LIABILITIES |
|
10,612,969.69 |
|
|
7,181,731.20 |
|
|
Stockholders' Equity | |||||||
Preferred Stock | $ |
50,595,000.00 |
|
$ |
50,595,000.00 |
|
|
Common Stock |
|
3,325,845.00 |
|
|
3,325,845.00 |
|
|
Earned Surplus |
|
14,500,000.00 |
|
|
14,500,000.00 |
|
|
Undivided Profits |
|
61,683,336.80 |
|
|
64,166,966.88 |
|
|
Current Profits |
|
6,032,603.88 |
|
|
2,971,728.83 |
|
|
Total Unrealized Gain/Loss AFS |
|
(8,562,773.69 |
) |
|
(10,089,411.68 |
) |
|
Defined Benefit Pension FASB 158 |
|
(3,824,509.00 |
) |
|
(4,579,613.00 |
) |
|
TOTAL CAPITAL |
|
123,749,502.99 |
|
|
120,890,516.03 |
|
|
TOTAL LIABILITIES & CAPITAL | $ |
686,856,991.32 |
|
$ |
686,659,837.16 |
|
|
INCOME STATEMENT | FYE 2023 | FYE 2022 | |||
Interest & Fees on Loans | $ |
25,286,310.16 |
$ |
19,156,421.55 |
|
Interest on Securities Portfolio |
|
5,083,409.04 |
|
3,877,506.22 |
|
Interest on Fed Funds & EBA |
|
719,802.42 |
|
748,453.36 |
|
TOTAL INTEREST INCOME |
|
31,089,521.62 |
|
23,782,381.13 |
|
Total Service Charges |
|
2,951,242.96 |
|
2,850,783.51 |
|
Total Miscellaneous Income |
|
8,694,426.04 |
|
4,936,201.85 |
|
TOTAL NON INT INCOME |
|
11,645,669.00 |
|
7,786,985.36 |
|
Gains/(Losses) on Secs |
|
- |
|
- |
|
Gains/(Losses) on Sales REO |
|
36,786.16 |
|
155,819.72 |
|
Gains/(Losses) on Sale of Loans |
|
- |
|
- |
|
TOTAL INCOME |
|
42,771,976.78 |
|
31,725,186.21 |
|
TOTAL INT ON DEPOSITS |
|
1,935,251.98 |
|
1,380,724.87 |
|
Int Fed Funds Purchased/Sec Sold Repo |
|
5,089.92 |
|
6,759.96 |
|
TOTAL INT EXPENSE |
|
1,940,341.90 |
|
1,387,484.83 |
|
PROVISION-LOAN LOSS |
|
90,859.54 |
|
204,767.30 |
|
Salary & Employee Benefits |
|
17,878,250.53 |
|
13,865,816.65 |
|
Total Premises Expense |
|
6,641,297.55 |
|
5,722,734.44 |
|
FDIC, Sales and Franchise |
|
464,879.80 |
|
337,159.57 |
|
Professional Fees |
|
1,825,480.22 |
|
1,186,597.83 |
|
Miscellaneous Office Expense |
|
816,846.31 |
|
854,169.22 |
|
Dues, Donations and Advertising |
|
1,177,870.36 |
|
1,043,095.01 |
|
Checking, ATM/Debit Card Expenses |
|
1,725,066.63 |
|
1,861,004.65 |
|
ORE Expenses |
|
2,913.81 |
|
8,218.72 |
|
Total Miscellaneous Expense |
|
2,444,425.69 |
|
2,076,741.20 |
|
TOTAL OTHER OPERATING |
|
32,977,030.90 |
|
26,955,537.29 |
|
Pre-Tax Net Income |
|
7,763,744.44 |
|
3,177,396.79 |
|
FEDERAL & STATE INCOME TAXES |
|
1,476,357.38 |
|
38,550.00 |
|
TOTAL EXPENSES |
|
36,484,589.72 |
|
28,586,339.42 |
|
NET INCOME | $ |
6,287,387.06 |
$ |
3,138,846.79 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226862855/en/
Casey Hill, CFO
casey.hill@mandmbank.com
(228) 934-1307
Source: Merchants & Marine Bancorp, Inc.
FAQ
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