Morris State Bancshares Announces Solid Earnings in 2024, Declares Special Dividend, and Increases Quarterly Dividend

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:
Morris State Bancshares
Chris Bond
Chief Financial Officer
478-272-5202

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