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Merchants & Marine Bancorp, Inc. Announces Second Quarter Financial Results

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Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) reported net income of $1.72 million ($1.29 per share) for Q2 2024, compared to $1.87 million ($1.41 per share) in Q2 2023. Gross income increased by 33.43% to $24.53 million. Balance sheet footings grew 18.25% to $777.40 million. Net loans increased 6.83% to $442.17 million, while total deposits rose 11.61% to $588.44 million. The acquisition of Mississippi River Bank, completed on April 10, 2024, drove balance sheet growth and one-time non-interest expenses. Total interest income grew 28.15% to $19.06 million, primarily due to increased interest income on loans. Credit quality remained strong, with past due and non-accrual loan ratios improving. The company maintains a healthy liquidity position with $93.51 million in cash and cash equivalents.

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) ha riportato un utile netto di 1,72 milioni di dollari (1,29 dollari per azione) per il secondo trimestre del 2024, rispetto a 1,87 milioni di dollari (1,41 dollari per azione) nel secondo trimestre del 2023. Il reddito lordo è aumentato del 33,43% raggiungendo 24,53 milioni di dollari. I totali di bilancio sono cresciuti del 18,25% fino a 777,40 milioni di dollari. Il totale dei prestiti è aumentato del 6,83% fino a 442,17 milioni di dollari, mentre i depositi totali sono aumentati dell'11,61% fino a 588,44 milioni di dollari. L'acquisizione della Mississippi River Bank, completata il 10 aprile 2024, ha favorito la crescita del bilancio e l'incidenza di spese non interpolari una tantum. Il reddito da interessi totali è aumentato del 28,15% fino a 19,06 milioni di dollari, principalmente per un incremento del reddito da interessi sui prestiti. La qualità del credito è rimasta solida, con miglioramenti nei rapporti di prestiti scaduti e non in captazione. L'azienda mantiene una posizione di liquidità sana con 93,51 milioni di dollari in contante e mezzi equivalenti.

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) reportó un ingreso neto de 1.72 millones de dólares (1.29 dólares por acción) para el segundo trimestre de 2024, en comparación con 1.87 millones de dólares (1.41 dólares por acción) en el segundo trimestre de 2023. Los ingresos brutos aumentaron un 33.43% alcanzando 24.53 millones de dólares. Los activos del balance crecieron un 18.25% hasta 777.40 millones de dólares. Los préstamos netos aumentaron un 6.83% hasta 442.17 millones de dólares, mientras que los depósitos totales crecieron un 11.61% hasta 588.44 millones de dólares. La adquisición de Mississippi River Bank, completada el 10 de abril de 2024, impulsó el crecimiento del balance y algunos gastos no relacionados con intereses extraordinarios. Los ingresos por intereses totales crecieron un 28.15% hasta 19.06 millones de dólares, principalmente debido al aumento de los ingresos por intereses de los préstamos. La calidad del crédito se mantuvo sólida, con mejoras en las proporciones de préstamos atrasados y no devengados. La empresa mantiene una posición de liquidez saludable con 93.51 millones de dólares en efectivo y equivalentes de efectivo.

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB)는 2024년 2분기 동안 172만 달러의 순이익 (주당 1.29 달러)을 보고했으며, 이는 2023년 2분기의 187만 달러 (주당 1.41 달러)와 비교됩니다. 총 수익은 33.43% 증가하여 2453만 달러에 달했습니다. 대차대조표의 총액은 18.25% 증가하여 7억 7740만 달러에 달했습니다. 순대출은 6.83% 증가하여 4억 4217만 달러에 달하며, 총 예금은 11.61% 증가하여 5억 8844만 달러에 도달했습니다. 2024년 4월 10일 완료된 미시시피 리버 뱅크의 인수는 대차대조표 성장을 이끌고 일회성 비이자 비용을 발생시켰습니다. 총 이자 수익은 28.15% 증가하여 1906만 달러에 이르렀으며, 이는 주로 대출의 이자 수익 증가에 따른 것입니다. 신용 품질은 지속적으로 강하며, 연체 및 비율의 비은행 대출 비율이 개선되었습니다. 이 회사는 현금 및 현금 등가물로 9351만 달러를 보유하여 건전한 유동성 상태를 유지하고 있습니다.

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) a déclaré un revenu net de 1,72 million de dollars (1,29 dollar par action) pour le deuxième trimestre de 2024, par rapport à 1,87 million de dollars (1,41 dollar par action) au deuxième trimestre de 2023. Le revenu brut a augmenté de 33,43% pour atteindre 24,53 millions de dollars. Les actifs au bilan ont crû de 18,25% pour atteindre 777,40 millions de dollars. Les prêts nets ont augmenté de 6,83% pour atteindre 442,17 millions de dollars, tandis que les dépôts totaux ont augmenté de 11,61% pour s'élever à 588,44 millions de dollars. L'acquisition de la Mississippi River Bank, finalisée le 10 avril 2024, a favorisé la croissance du bilan et des frais ponctuels non liés aux intérêts. Le revenu total d'intérêts a augmenté de 28,15% pour atteindre 19,06 millions de dollars, principalement en raison d'une augmentation des revenus d'intérêts des prêts. La qualité du crédit est restée solide, avec des améliorations dans les ratios de prêts en retard et non acquittés. L’entreprise maintient une position de liquidité saine avec 93,51 millions de dollars en espèces et équivalents de liquidités.

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) berichtete von einem Nettoeinkommen von 1,72 Millionen Dollar (1,29 Dollar pro Aktie) für das zweite Quartal 2024, im Vergleich zu 1,87 Millionen Dollar (1,41 Dollar pro Aktie) im zweiten Quartal 2023. Der Bruttoertrag stieg um 33,43% auf 24,53 Millionen Dollar. Die Bilanzsumme wuchs um 18,25% auf 777,40 Millionen Dollar. Die Nettokredite stiegen um 6,83% auf 442,17 Millionen Dollar, während die Gesamteinlagen um 11,61% auf 588,44 Millionen Dollar zugenommen haben. Die Übernahme der Mississippi River Bank, die am 10. April 2024 abgeschlossen wurde, trieb das Bilanzwachstum und einmalige nichtzinsbezogene Aufwendungen voran. Die Gesamterträge aus Zinsen stiegen um 28,15% auf 19,06 Millionen Dollar, hauptsächlich aufgrund gestiegener Zinserträge aus Krediten. Die Kreditqualität blieb stark, mit Verbesserungen bei den Überfälligkeits- und Nicht-Zinsaufwandsquoten. Das Unternehmen hält eine gesunde Liquiditätsposition mit 93,51 Millionen Dollar in Bar und Barmittelnäquivalenten.

Positive
  • Gross income increased by 33.43% to $24.53 million
  • Balance sheet footings grew 18.25% to $777.40 million
  • Net loans increased 6.83% to $442.17 million
  • Total deposits rose 11.61% to $588.44 million
  • Total interest income grew 28.15% to $19.06 million
  • Credit quality improved with lower past due and non-accrual loan ratios
  • Strong liquidity position with $93.51 million in cash and cash equivalents
Negative
  • Net income decreased from $1.87 million in Q2 2023 to $1.72 million in Q2 2024
  • Earnings per share declined from $1.41 in Q2 2023 to $1.29 in Q2 2024
  • One-time merger-related expenses exceeding $600 thousand impacted earnings
  • Accumulated Other Comprehensive Income (AOCI) mark-to-market losses in the securities portfolio increased to ($12.95 million)

PASCAGOULA, Miss.--(BUSINESS WIRE)-- Merchants & Marine Bancorp, Inc. (OTCQX: MNMB), the parent company of Merchants & Marine Bank, reported net income through the second quarter of $1.72 million, or $1.29 per share, compared with earnings of $1.87 million, or $1.41 per share, in the same period of the prior year. Gross income through the first six months of 2024 totaled $24.53 million, an increase of 33.43% from the prior year. Balance sheet footings increased by 18.25% to $777.40 million during the 12 months ended June 30, 2024. Net loans grew to $442.17 million in at June 30, 2024 from $413.91 million at the end of the same period in the prior year, an increase of 6.83%. Total deposits increased 11.61% from the same period in the prior year, from $527.45 million to $588.44 million. Balance sheet growth, and the significant increase in one-time non-interest expenses during the first half of 2024, was driven primarily by the acquisition of Mississippi River Bank, which was completed on April 10, 2024.

Selected financial highlights:

  • Net loans grew by $28.26 million, or 6.83%, from June 20, 2023.
  • Total interest income for the first six months of the year increased to $19.06 million from $14.87 million during the same period in 2023, a lift of 28.15%. The increase is primarily due to increased interest income on loans, which increased to $15.07 million the first six months of 2024 from $12.06 million during the same period in 2023. This increase is due both to improved loan yields and, to a lesser extent, loan growth from the Mississippi River Bank acquisition.
  • The company’s cost of funding its assets also increased through June 30th, though much more slowly than seen in the broader market. Interest expense as a function of total assets grew to 60 basis points (annualized)from 20 basis points (annualized) in the first six months of 2023. The increase in funding costs is primarily due to the company’s utilization of the Federal Reserve Bank Term Funding Program (BTFP).
  • Credit quality remained strong at the end of the second quarter. The ratio of loans past due 30-89 days fell to just 0.63% of total loans compared to 1.07% at the end of the second quarter of 2023. The ratio of non-accrual loans decreased to 0.50% of total loans at the end of the second quarter 2024 from 1.42% of total loans at the end of the second quarter of the prior year.
  • Accumulated Other Comprehensive Income (AOCI) mark-to-market losses in the securities portfolio increased to ($12.95 million) at the end of the quarter from ($9.51 million) at the end of the same period in 2023. These losses represent just 7.82% and 6.60% of the total portfolio for the respective reporting periods. A material portion of the increase is due to the addition of securities that were added through the Mississippi River Bank acquisition.
  • On balance sheet liquidity levels remain very healthy, with cash and cash equivalents totaling $93.51 million at the end of the second quarter 2024. In addition to these large cash balances, the Company’s $166 million investment portfolio remains highly liquid, with a significant portion able to be liquidated with minimal losses.
  • In addition to the sizeable on-balance sheet liquidity position, the Company has more than $250 million in additional borrowing capacity at the Federal Home Loan Bank of Dallas and the Federal Reserve.

“The company’s core financial performance continued to strengthen during the first half of 2024. Both top line revenue and net interest margin continue to grow as assets continue to reprice at a faster rate than liabilities, something that is relatively unique in today’s banking environment,” said the company’s Chief Financial Officer, Casey Hill. He continued “In addition to strong core performance in our legacy operations, the addition of the Mississippi River Bank balance sheet stands to lift forward earnings significantly. The merger was detrimental to earnings in the first half of the year as the company realized one-time merger-related expenses exceeding $600 thousand. We expect the second half of 2024 to reflect further increases in profitability, now that we’re clear of the non-recurring expenses associated with acquiring an exceptionally high performing bank like Mississippi River Bank.”

The bank drew on the Federal Reserve’s Bank Term Funding Program (BTFP) in November of 2023, and financed the $50 million balance in December to capitalize on lower rates. The advance rate, at that time, was based on the overnight one-year overnight index swap rate plus 10 basis points, fixed for one year. Since that time, the Federal Reserve has updated the rate on new borrowings to be floored at the effective Federal Funds rate.

“The company possesses enough on-balance sheet cash to repay the BTFP at any point that we deem it advantageous to do so and still maintain a highly liquid balance sheet. However, due to small net profit position that we realize on those borrowed funds, we do not foresee prepaying at this time unless and until the rate environment changes,” commented Hill. “In the meantime, we will continue to explore avenues of opportunity and growth, but will only execute on those opportunities if they are highly accretive to our current enterprise.”

”Our team’s performance through the first half of 2024, and the strong financial results produced by the efforts, are very encouraging,” remarked Clayton Legear, the company’s Chief Executive Officer. “In addition to shepherding increasingly strong financial results of our core franchises, our team successfully integrated Mississippi River Bank into our growing Family of Brands. We are excited to already see tangible positive impacts from this addition both in terms of earnings and through contributions to our ‘Battle Ready Balance Sheet.’ We look forward to even more progress as Mississippi River Bank Brand Chief Executive Officer Mike Bush and his team further leverage the expanded tools and resources now at their disposal. As we move into the second half of the year, we remain focused on operating from a position of strength across each of our brands and in being opportunistic in seizing opportunities to drive significant value for our clients, our team members, our shareholders and the communities we serve.”

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) is the parent company of Merchants & Marine Bank, a Mississippi chartered community bank serving the Gulf South region. Originally founded in 1899, Merchants & Marine Bank was reborn in 1932 during the middle of the worst economic disaster in the history of the United States: The Great Depression. More than eight decades later, Merchants & Marine Bank has grown from $25,000 to nearly $800 million in assets. The bank offers banking services to customers in Southern Mississippi and Coastal Alabama under its legacy Merchants & Marine Bank brand, and in Southern Louisiana through its Mississippi River Bank division. It offers mortgage financing through its Canvas Mortgage division, medical cannabis banking through its CannaFirst Financial division, and access to government-guaranteed credit through Voyager Lending. It provides bank operational, risk, and support services through its Community of Resources bank services division. For more information on Merchants & Marine Bancorp, Inc., visit https://mandmbank.com/investor-relations.

MERCHANTS & MARINE BANCORP, INC.
CONSOLIDATED FINANCIALS (UNAUDITED)
BALANCE SHEET
 
ASSETS June 30, 2024 June 30, 2023
TOTAL CASH & DUE FROM

 

93,507,728.62

 

 

43,471,583.41

 

 
TOTAL SECURITIES

 

165,650,760.36

 

 

143,986,019.05

 

TOTAL FEDERAL FUNDS SOLD

 

97,006.75

 

 

199,563.45

 

 
TOTAL LOANS

 

449,991,168.99

 

 

422,226,713.78

 

Begin Year Reserve for Loss

 

(7,684,072.00

)

 

(3,566,893.00

)

Recoveries on Charge Off

 

(134,827.56

)

 

(189,056.20

)

Charge Offs Current Year

 

174,673.38

 

 

387,559.91

 

Allowance-Current Year

 

(177,845.82

)

 

(4,945,682.71

)

RESERVE FOR LOSSES ON LOANS

 

(7,822,072.00

)

 

(8,314,072.00

)

NET LOANS

 

442,169,096.99

 

 

413,912,641.78

 

 
NET FIXED ASSETS

 

29,211,629.53

 

 

25,458,102.98

 

 
Other Real Estate

 

-

 

 

27,000.00

 

Other Assets

 

46,765,538.94

 

 

30,355,581.79

 

TOTAL OTHER ASSETS

 

46,765,538.94

 

 

30,382,581.79

 

TOTAL ASSETS

$

777,401,761.19

 

$

657,410,492.46

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Demand Deposits

$

405,391,088.52

 

$

361,025,898.80

 

Public Funds

 

16,479,553.86

 

 

18,821,588.29

 

TOTAL DEMAND DEPOSITS

 

421,870,642.38

 

 

379,847,487.09

 

 
Savings

 

111,727,068.43

 

 

95,629,788.93

 

C D's

 

44,750,226.36

 

 

41,012,210.52

 

I R A's

 

7,636,171.47

 

 

8,304,380.75

 

CDARS

 

2,458,674.07

 

 

2,452,228.58

 

TOTAL TIME & SAVINGS DEPOSITS

 

166,572,140.33

 

 

147,398,608.78

 

TOTAL DEPOSITS

 

588,442,782.71

 

 

527,246,095.87

 

 
SECURITIES SOLD UNDER REPO
& BORRROWINGS

 

52,917,019.62

 

 

3,362,542.82

 

 
DIVIDENDS PAYABLE

 

399,101.40

 

 

399,101.40

 

 
TOTAL OTHER LIABILITIES

 

11,541,966.66

 

 

9,573,008.57

 

 
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

 

66,917,737.88

 

 

61,332,410.71

 

Current Profits

 

1,722,734.72

 

 

1,161,435.04

 

Total Unrealized Gain/Loss AFS

 

(9,135,917.80

)

 

(9,505,333.95

)

Defined Benefit Pension FASB 158

 

(3,824,509.00

)

 

(4,579,613.00

)

TOTAL CAPITAL

 

124,100,890.80

 

 

116,829,743.80

 

 
TOTAL LIABILITIES & CAPITAL

$

777,401,761.19

 

$

657,410,492.46

 

 
MERCHANTS & MARINE BANCORP, INC.
CONSOLIDATED FINANCIALS (UNAUDITED)
INCOME STATEMENT
ACCOUNT NAME Through June 30, 2024 Through June 30, 2023
Interest & Fees on Loans

$

15,067,319.01

$

12,064,896.09

 

Interest on Securities Portfolio

 

3,742,622.12

 

2,394,390.89

 

Interest on Fed Funds & EBA

 

250,003.00

 

414,137.91

 

TOTAL INTEREST INCOME

 

19,059,944.13

 

14,873,424.89

 

 
Total Service Charges

 

1,631,360.13

 

1,413,344.60

 

Total Miscellaneous Income

 

3,653,343.63

 

2,069,246.32

 

TOTAL NON INT INCOME

 

5,284,703.76

 

3,482,590.92

 

 
Gains/(Losses) on Secs

 

183,835.86

 

-

 

Gains/(Losses) on Sales REO

 

823.47

 

27,000.00

 

Gains/(Losses) on Sale of Loans

 

-

 

-

 

TOTAL INCOME

 

24,529,307.22

 

18,383,015.81

 

 
TOTAL INT ON DEPOSITS

 

1,284,613.89

 

653,909.88

 

Int Fed Funds Purchased/Sec Sold Repo

 

1,062,881.73

 

2,467.52

 

TOTAL INT EXPENSE

 

2,347,495.62

 

656,377.40

 

 
PROVISION-LOAN LOSS

 

128,845.82

 

(1,230.14

)

 
Salary & Employee Benefits

 

11,092,460.29

 

8,177,902.00

 

Total Premises Expense

 

4,108,006.93

 

3,114,019.58

 

FDIC, Sales and Franchise

 

248,001.78

 

201,214.70

 

Professional Fees

 

1,332,231.41

 

1,129,837.10

 

Miscellaneous Office Expense

 

445,394.37

 

384,094.25

 

Dues, Donations and Advertising

 

401,719.47

 

449,975.28

 

Checking, ATM/Debit Card Expenses

 

1,058,199.68

 

912,678.15

 

ORE Expenses

 

869.64

 

4,200.00

 

Total Miscellaneous Expense

 

1,330,360.82

 

1,166,651.14

 

TOTAL OTHER OPERATING

 

20,017,244.39

 

15,540,572.20

 

 
FEDERAL & STATE INCOME TAXES

 

290,500.00

 

316,752.38

 

 
TOTAL EXPENSES

 

22,784,085.83

 

16,512,471.84

 

NET INCOME

$

1,745,221.39

$

1,870,543.97

 

Preferred Stock Dividends

$

22,486.67

$

-

 

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$

1,722,734.72

$

1,870,543.97

 

 

 

Casey Hill

Chief Financial Officer

(228) 934-1307

Source: Merchants & Marine Bancorp, Inc.

FAQ

What was Merchants & Marine Bancorp's (MNMB) net income for Q2 2024?

Merchants & Marine Bancorp (MNMB) reported net income of $1.72 million, or $1.29 per share, for Q2 2024.

How much did MNMB's gross income increase in Q2 2024?

MNMB's gross income increased by 33.43% to $24.53 million in Q2 2024 compared to the same period in the previous year.

When did MNMB complete the acquisition of Mississippi River Bank?

MNMB completed the acquisition of Mississippi River Bank on April 10, 2024.

What was the growth in MNMB's total deposits for Q2 2024?

MNMB's total deposits increased by 11.61% from $527.45 million to $588.44 million in Q2 2024 compared to the same period in the previous year.

How much cash and cash equivalents did MNMB have at the end of Q2 2024?

MNMB had $93.51 million in cash and cash equivalents at the end of Q2 2024.

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