Merchants & Marine Bancorp, Inc. Announces 2023 Financial Results
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, or 26.04%, to 6.05% at year-end 2023 from 4.80% at the end of 2022.
-
Total interest income for 2023 increased to
$31.09 million from$23.78 million in 2022, a lift of 30.73%. The increase is primarily due to increased interest income on loans, which increased to$25.29 million in 2023 from$19.16 million in 2022. This increase is due both to improved loan yields and incremental loan growth. - 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 to 0.74% at the end of 2022. The ratio of non-accrual loans decreased to 0.70% of total loans at the end of 2023 from 1.29% 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 (
$8.57 million ) at the end of 2023 from ($10.09 million ) at the end of 2022. This represents just 6.92% of tangible equity. -
On balance sheet liquidity levels remain robust. Cash and cash equivalents remain healthy at
$65.96 million . In addition, the bank’s$146 million investment portfolio remains liquid, with a significant portion able to be liquidated with no or only minimal losses. -
In addition to the sizeable on-balance sheet liquidity position, the bank has more than
$250 million in additional borrowing capacity at theFederal Home Loan Bank of Dallas and theFederal Reserve Bank of Atlanta . -
The bank took advantage of beneficial terms on the Bank Term Funding Program (BTFP) from the
Federal Reserve , borrowing$50 million at a rate of 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 around 5.3%, 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
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
|
|||||||
CONSOLIDATED FINANCIALS (UNAUDITED) | |||||||
BALANCE SHEET | |||||||
ASSETS |
|
|
|||||
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 |
|
|
|
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@mandmbank.com
(228) 934-1307
Source: