Morris State Bancshares Announces Quarterly Earnings, Announces Retirement of Subordinated Debt and Declares Third Quarter Dividend
DUBLIN, Ga., July 29, 2025 (GLOBE NEWSWIRE) — Morris State Bancshares, Inc. (OTCQX: MBLU) (the “Company”), the parent of Morris Bank (the “Bank”), today announced net income of $6.0 million for the quarter ending June 30, 2025, representing an increase of $1.1 million, or 22.10%, compared to net income of $4.9 million for the quarter ended March 31, 2025. Compared to the same quarter a year ago, net income increased by $677 thousand, or 12.71%, from $5.3 million for the quarter ending June 30, 2024. Net interest income before provision for credit losses increased from the linked and prior year quarters by $744 thousand and $2.7 million, respectively.
“The Company delivered solid second quarter results, driven by continued net interest margin expansion and steady balance sheet growth,” said Spence Mullis, Chairman and CEO. “Our net interest margin at the end of June was 4.43%, an increase of 14 basis points from the linked quarter and 41 basis points higher than the same quarter a year ago. The average yield on earning assets grew 13 basis points during the second quarter from 6.07% to 6.20%, while the Bank’s cost of funds increased 1 basis point from 1.97% to 1.98% during the same period. While we experienced significant payoffs during the quarter, our loan portfolio expanded by $16.0 million, or 1.41% for the quarter, an annualized growth rate of approximately 5.7%. Deposits increased by $24.8 million, or 1.91% for the quarter, which equates to an annualized growth rate of roughly 7.8%. As previously communicated, it was our intention to pay off the Company’s remaining subordinated debt as soon as the opportunity became available. We’re pleased to report that on July 22, 2025, we retired the full $15.0 million. This will result in significant interest expense savings for the Company going forward.”
The Bank’s allowance for credit losses as a percentage of total loans was 1.28% for June 30, 2025, as compared to 1.30% for March 31, 2025, and 1.30% for June 30, 2024. The Bank’s adversely classified index increased during the quarter from 4.66% as of March 31, 2025, to 9.51% as of June 30, 2025. The quarterly change was concentrated in one loan relationship. Overall, classified assets levels remain below historical trends.
The Bank’s efficiency ratio improved to 50.97% for the quarter ending June 30, 2025, from 57.97% at March 31, 2025 and 58.36% at June 30, 2024. Noninterest expense declined by $287,000, or 3.00%, compared to the quarter ending March 31, 2025. This decrease was driven by lower salary and benefits costs, along with several routine operating expenses coming in below budget. Provision for income taxes increased $407 thousand, or 27.58%, as a result of higher pre-tax income.
The Company’s total shareholders’ equity increased 2.53% during the quarter to $203 million as of June 30, 2025, and up 8.97%, or $16.7 million, from June 30, 2024. The tangible book value of the Company grew to $18.06 as of June 30, 2025, from $17.66 as of March 31, 2025, and was up 9.26% from $16.53 as of June 30, 2024. On July 17, 2025, the board of directors approved a third quarter dividend of $0.12 per share payable on or about September 15, 2025, to all shareholders of record as of August 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.
| MORRIS STATE BANCSHARES, INC. | ||||||||||||||||||||||||||
| AND SUBSIDIARIES | ||||||||||||||||||||||||||
| Consolidating Balance Sheet | ||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||||
| 2025 | 2025 | Change | % Change | 2024 | Change | % Change | ||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 106,289,134 | $ | 92,342,678 | $ | 13,946,456 | 15.10 | % | $ | 43,688,884 | $ | 62,600,250 | 143.29 | % | ||||||||||||
| Federal funds sold | 24,863,860 | 15,606,716 | 9,257,144 | 59.32 | % | 14,624,710 | 10,239,150 | 70.01 | % | |||||||||||||||||
| Total cash and cash equivalents | 131,152,994 | 107,949,394 | 23,203,600 | 21.49 | % | 58,313,594 | 72,839,400 | 124.91 | % | |||||||||||||||||
| Interest-bearing time deposits in other banks | 100,000 | 100,000 | — | 0.00 | % | 100,000 | — | 0.00 | % | |||||||||||||||||
| Securities available for sale, at fair value | 9,805,608 | 9,414,147 | 391,461 | 4.16 | % | 7,669,642 | 2,135,966 | 0.00 | % | |||||||||||||||||
| Securities held to maturity, at cost (net of CECL Reserve) | 205,814,736 | 208,561,077 | (2,746,341 | ) | -1.32 | % | 227,532,821 | (21,718,085 | ) | -9.55 | % | |||||||||||||||
| Federal Home Loan Bank stock, restricted, at cost | 1,084,200 | 1,084,200 | — | 0.00 | % | 1,027,800 | 56,400 | 5.49 | % | |||||||||||||||||
| Loans, net of unearned income | 1,155,735,771 | 1,139,719,828 | 16,015,943 | 1.41 | % | 1,081,790,223 | 73,945,548 | 6.84 | % | |||||||||||||||||
| Less-allowance for credit losses | (14,816,647 | ) | (14,829,709 | ) | 13,062 | -0.09 | % | (14,109,191 | ) | (707,456 | ) | 5.01 | % | |||||||||||||
| Loans, net | 1,140,919,124 | 1,124,890,119 | 16,029,005 | 1.42 | % | 1,067,681,032 | 73,238,092 | 6.86 | % | |||||||||||||||||
| – | ||||||||||||||||||||||||||
| Bank premises and equipment, net | 14,720,155 | 14,844,597 | (124,442 | ) | -0.84 | % | 13,051,972 | 1,668,183 | 12.78 | % | ||||||||||||||||
| ROU assets for operating lease, net | 601,700 | 692,339 | (90,639 | ) | -13.09 | % | 945,268 | (343,568 | ) | -36.35 | % | |||||||||||||||
| Goodwill | 9,361,704 | 9,361,704 | — | 0.00 | % | 9,361,704 | — | 0.00 | % | |||||||||||||||||
| Intangible assets, net | 1,167,611 | 1,253,288 | (85,677 | ) | -6.84 | % | 1,508,214 | (340,603 | ) | -22.58 | % | |||||||||||||||
| Other real estate and foreclosed assets | 3,300 | 15,503 | (12,203 | ) | -78.71 | % | 43,408 | (40,108 | ) | -92.40 | % | |||||||||||||||
| Accrued interest receivable | 6,760,207 | 6,369,932 | 390,275 | 6.13 | % | 6,421,999 | 338,208 | 5.27 | % | |||||||||||||||||
| Cash surrender value of life insurance | 15,340,444 | 15,233,512 | 106,932 | 0.70 | % | 14,915,967 | 424,477 | 2.85 | % | |||||||||||||||||
| Other assets | 17,574,139 | 21,726,495 | (4,152,356 | ) | -19.11 | % | 21,721,225 | (4,147,086 | ) | -19.09 | % | |||||||||||||||
| Total Assets | $ | 1,554,405,922 | $ | 1,521,496,307 | $ | 32,909,615 | 2.16 | % | $ | 1,430,294,646 | 124,111,276 | 8.68 | % | |||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||
| Non-interest bearing | $ | 346,323,393 | $ | 330,414,834 | $ | 15,908,559 | 4.81 | % | $ | 298,997,994 | 47,325,399 | 15.83 | % | |||||||||||||
| Interest bearing | 972,826,660 | 963,948,287 | 8,878,373 | 0.92 | % | 914,360,430 | 58,466,230 | 6.39 | % | |||||||||||||||||
| 1,319,150,053 | 1,294,363,121 | 24,786,932 | 1.91 | % | 1,213,358,424 | 105,791,629 | 8.72 | % | ||||||||||||||||||
| Other borrowed funds | 19,039,839 | 19,029,606 | 10,233 | 0.05 | % | 18,998,904 | 40,935 | 0.22 | % | |||||||||||||||||
| Lease liability for operating lease | 601,700 | 692,339 | (90,639 | ) | -13.09 | % | 945,268 | (343,568 | ) | -36.35 | % | |||||||||||||||
| Accrued interest payable | 3,331,983 | 2,778,669 | 553,314 | 19.91 | % | 1,730,280 | 1,601,703 | 92.57 | % | |||||||||||||||||
| Accrued expenses and other liabilities | 9,362,044 | 6,726,119 | 2,635,925 | 39.19 | % | 9,038,821 | 323,223 | 3.58 | % | |||||||||||||||||
| – | ||||||||||||||||||||||||||
| Total liabilities | 1,351,485,619 | 1,323,589,854 | 27,895,765 | 2.11 | % | 1,244,071,697 | 107,413,922 | 8.63 | % | |||||||||||||||||
| Shareholders’ Equity: | ||||||||||||||||||||||||||
| Common stock | 10,754,034 | 10,701,756 | 52,278 | 0.49 | % | 10,688,223 | 65,811 | 0.62 | % | |||||||||||||||||
| Paid in capital surplus | 35,876,904 | 35,307,009 | 569,895 | 1.61 | % | 34,729,351 | 1,147,553 | 3.30 | % | |||||||||||||||||
| Retained earnings | 147,779,527 | 149,055,224 | (1,275,697 | ) | -0.86 | % | 132,061,494 | 15,718,033 | 11.90 | % | ||||||||||||||||
| Current year earnings | 10,912,007 | 4,913,056 | 5,998,951 | 122.10 | % | 10,213,197 | 698,810 | 6.84 | % | |||||||||||||||||
| Accumulated other comprehensive income (loss) | 1,153,839 | 1,289,137 | (135,298 | ) | -10.50 | % | 1,648,392 | (494,553 | ) | -30.00 | % | |||||||||||||||
| Treasury Stock, at cost 83,142 | (3,556,008 | ) | (3,359,729 | ) | (196,279 | ) | 5.84 | % | (3,117,708 | ) | (438,300 | ) | 14.06 | % | ||||||||||||
| Total shareholders’ equity | 202,920,303 | 197,906,453 | 5,013,850 | 2.53 | % | 186,222,949 | 16,697,354 | 8.97 | % | |||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,554,405,922 | $ | 1,521,496,307 | 32,909,615 | 2.16 | % | $ | 1,430,294,646 | 124,111,276 | 8.68 | % | ||||||||||||||
| MORRIS STATE BANCSHARES, INC. | |||||||||||||||||||||||
| AND SUBSIDIARIES | |||||||||||||||||||||||
| Consolidating Statement of Income | |||||||||||||||||||||||
| for the Three Months Ended | |||||||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||||||
| 2025 | 2025 | Change | % Change | 2024 | Change | % Change | |||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||
| Interest and Dividend Income: | |||||||||||||||||||||||
| Interest and fees on loans | $ | 20,414,871 | $ | 19,338,360 | $ | 1,076,511 | 5.57 | % | $ | 17,879,134 | $ | 2,535,737 | 14.18 | % | |||||||||
| Interest income on securities | 1,568,867 | 1,671,657 | (102,790 | ) | -6.15 | % | 1,837,396 | (268,529 | ) | -14.61 | % | ||||||||||||
| Income on federal funds sold | 201,101 | 534,479 | (333,378 | ) | -62.37 | % | 156,184 | 44,917 | 28.76 | % | |||||||||||||
| Income on time deposits held in other banks | 850,388 | 605,454 | 244,934 | 40.45 | % | 590,205 | 260,183 | 44.08 | % | ||||||||||||||
| Other interest and dividend income | 19,576 | 25,413 | (5,837 | ) | -22.97 | % | 64,639 | (45,063 | ) | -69.71 | % | ||||||||||||
| Total interest and dividend income | 23,054,803 | 22,175,363 | 879,440 | 3.97 | % | 20,527,558 | 2,527,245 | 12.31 | % | ||||||||||||||
| Interest Expense: | |||||||||||||||||||||||
| Deposits | 6,545,646 | 6,413,065 | 132,581 | 2.07 | % | 6,568,679 | (23,033 | ) | -0.35 | % | |||||||||||||
| Interest on other borrowed funds | 289,514 | 286,480 | 3,034 | 1.06 | % | 389,629 | (100,115 | ) | -25.69 | % | |||||||||||||
| Interest on federal funds purchased | — | — | — | 0.00 | % | — | — | 0.00 | % | ||||||||||||||
| Total interest expense | 6,835,160 | 6,699,545 | 135,615 | 2.02 | % | 6,958,308 | (123,148 | ) | -1.77 | % | |||||||||||||
| Net interest income before provision for loan losses | 16,219,643 | 15,475,818 | 743,825 | 4.81 | % | 13,569,250 | 2,650,393 | 19.53 | % | ||||||||||||||
| Less-provision for credit losses | 439,040 | 577,123 | (138,083 | ) | -23.93 | % | 272,419 | 166,621 | 61.16 | % | |||||||||||||
| Net interest income after provision for credit losses | 15,780,603 | 14,898,695 | 881,908 | 5.92 | % | 13,296,831 | 2,483,772 | 18.68 | % | ||||||||||||||
| Noninterest Income: | |||||||||||||||||||||||
| Service charges on deposit accounts | 546,848 | 540,600 | 6,248 | 1.16 | % | 535,847 | 11,001 | 2.05 | % | ||||||||||||||
| Other service charges, commisions and fees | 384,400 | 380,482 | 3,918 | 1.03 | % | 397,787 | (13,387 | ) | -3.37 | % | |||||||||||||
| Gain on sales of premises and equipment | — | — | — | — | 141 | (141 | ) | 0.00 | % | ||||||||||||||
| Increase in CSV of life insurance | 106,932 | 104,750 | 2,182 | 2.08 | % | 102,828 | 4,104 | 3.99 | % | ||||||||||||||
| Other income | 332,498 | 20,407 | 312,091 | 1529.33 | % | 355,155 | (22,657 | ) | -6.38 | % | |||||||||||||
| Total noninterest income | 1,370,678 | 1,046,239 | 324,439 | 31.01 | % | 1,391,758 | (21,080 | ) | -1.51 | % | |||||||||||||
| Noninterest Expense: | |||||||||||||||||||||||
| Salaries and employee benefits | 4,951,680 | 5,122,152 | (170,472 | ) | -3.33 | % | 4,650,704 | 300,976 | 6.47 | % | |||||||||||||
| Occupancy and equipment expenses, net | 609,642 | 527,532 | 82,110 | 15.56 | % | 536,330 | 73,312 | 13.67 | % | ||||||||||||||
| Loss on sales and calls of securities | — | — | — | — | 265 | (265 | ) | -100.00 | % | ||||||||||||||
| Loss on sales of foreclosed assets | 1,400 | — | — | — | — | 1,400 | 0.00 | % | |||||||||||||||
| Other expenses | 3,706,152 | 3,905,857 | (199,705 | ) | -5.11 | % | 3,860,188 | (154,036 | ) | -3.99 | % | ||||||||||||
| Total noninterest expense | 9,268,874 | 9,555,541 | (286,667 | ) | -3.00 | % | 9,047,487 | 221,387 | 2.45 | % | |||||||||||||
| Income Before Income Taxes | 7,882,407 | 6,389,393 | 1,493,014 | 23.37 | % | 5,641,102 | 2,241,305 | 39.73 | % | ||||||||||||||
| Provision for income taxes | 1,883,456 | 1,476,337 | 407,119 | 27.58 | % | 318,723 | 1,564,733 | 490.94 | % | ||||||||||||||
| – | |||||||||||||||||||||||
| Net Income | $ | 5,998,951 | $ | 4,913,056 | 1,085,895 | 22.10 | % | $ | 5,322,379 | 676,572 | 12.71 | % | |||||||||||
| Earnings per common share: | |||||||||||||||||||||||
| Basic | $ | 0.57 | $ | 0.46 | 0.10 | 21.92 | % | $ | 0.50 | 0.06 | 12.74 | % | |||||||||||
| Diluted | $ | 0.57 | $ | 0.46 | 0.11 | 22.93 | % | $ | 0.50 | 0.07 | 13.09 | % | |||||||||||
| Quarter Ending | ||||||||||
| June 30, | March 31, | June 30, | ||||||||
| 2025 | 2025 | 2024 | ||||||||
| Dollars in thousand, except per share data | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Per Share Data | ||||||||||
| Basic Earnings per Common Share | $ | 0.57 | $ | 0.46 | $ | 0.50 | ||||
| Diluted Earnings per Common Share | 0.57 | 0.46 | 0.50 | |||||||
| Dividends per Common Share | 0.12 | 0.12 | 0.092 | |||||||
| Book Value per Common Share | 19.05 | 18.66 | 17.56 | |||||||
| Tangible Book Value per Common Share | 18.06 | 17.66 | 16.53 | |||||||
| Average Diluted Shared Outstanding | 10,608,771 | 10,593,370 | 10,611,811 | |||||||
| End of Period Common Shares Outstanding | 10,650,112 | 10,606,258 | 10,605,080 | |||||||
| Annualized Performance Ratios (Bank Only) | ||||||||||
| Return on Average Assets | 1.71 | % | 1.41 | % | 1.73 | % | ||||
| Return on Average Equity | 13.33 | % | 11.12 | % | 13.12 | % | ||||
| Equity/Assets | 12.70 | % | 12.75 | % | 13.18 | % | ||||
| Yield on Earning Assets | 6.20 | % | 6.07 | % | 5.96 | % | ||||
| Cost of Funds | 1.98 | % | 1.97 | % | 2.16 | % | ||||
| Net Interest Margin | 4.43 | % | 4.29 | % | 4.02 | % | ||||
| Efficiency Ratio | 50.97 | % | 57.90 | % | 58.36 | % | ||||
| Credit Metrics | ||||||||||
| Allowance for Loan Losses to Total Loans | 1.28 | % | 1.30 | % | 1.30 | % | ||||
| Adversely Classified Assets to Tier 1 Capital | ||||||||||
| plus Allowance for Loan Losses | 9.51 | % | 4.66 | % | 6.02 | % | ||||
CONTACT: CONTACT: Morris State Bancshares Chris Bond Chief Financial Officer 478-272-5202
