There were 1,224 press releases posted in the last 24 hours and 449,153 in the last 365 days.

Morris State Bancshares Announces Solid Earnings in 2019 and Declares First Quarter Dividend

DUBLIN, Ga., Feb. 14, 2020 (GLOBE NEWSWIRE) -- Morris State Bancshares (OTCQX: MBLU) (the “Company”), the parent of Morris Bank, today announced net income of $13.6 million for the year ended December 31, 2019, representing a decrease of $1.6 million, or 10.60%, compared to net income of $15.2 million for the year ended December 31, 2018. The company also announced diluted earnings per share of $6.82 for 2019, representing a 18.23% decrease over diluted earnings per share of $8.34 for 2018. Net income for 2019 was impacted by a one-time merger related expense of $924 thousand related to the Company’s completed acquisition of FMB Equibanc, Inc. (“FMB”) as well as income tax expense of $2.1 million in 2019, versus none in 2018 as the company converted to a C corporation during 2019.  Excluding merger related expenses, 2019 pre-tax income was $16.7 million, versus $15.2 million for 2018, representing an increase of $1.5 million or 9.3%.  This increase was largely driven by the acquisition of FMB, which was completed at the end of April, as well as a one-time gain on sale of government guaranteed loans of $263 thousand of and a gain on sale of other real estate of $409 thousand.

“We are very pleased with the financial performance of the Company in 2019. It was a transformational year in that we completed the purchase and integration of FMB which not only significantly grew our bank’s footings but more importantly our core deposits and geographic diversity,” said Spence Mullis, President and CEO.  “We created significant value for our shareholders as we grew core deposits over 53% or $236.7 million.  Organic core deposit growth represented $109.0 million or 46% of the overall core deposit growth.”

The Company’s total shareholders’ equity to total assets ratio increased to 11.05%, as of December 31, 2019, as compared to 10.96% as of December 31, 2018. Tangible book value per share increased to $47.18 as of December 31, 2019 an 8.84% increase or $3.83 per share from December 31, 2018.  On January 9th, the board of directors approved a first quarter dividend of $0.35 per share payable on or about March 16th to all shareholders of record on March 2, 2020.  This quarterly dividend is in addition to the special dividend of the same amount which was paid to all shareholders on January 31, 2020. It is the company’s intentions to resume paying regular quarterly dividends throughout the rest of the calendar year.

Net interest income for the years ending December 31, 2019 and 2018 was $38.9 million and $32.3 million respectively, an increase of $6.7 million or 20.69%.  Net interest margin for the years ending December 31, 2019 and 2018 was 4.65% and 4.88%, respectively.  The contraction in the margin was a combination of a decline in the yield on earning assets that outpaced the decrease in cost of funds.  Our cost of funds increased as a result of the Fed’s tightening of deposit rates throughout 2018 that were priced forward into our 2019 costs.  However, we saw our cost of funds decrease towards the end of the year as evidenced by the cost of total deposits for the quarter ended December 31, 2019 of 0.91%, as compared to 0.99% for the quarter ended September 30, 2019. We expect further decreases in our costs throughout the rest of the year.

The provision for loan losses was $1.7 million for the year ending December 31, 2019 versus $1.4 million for the year ending December 31, 2018.  Our provision as a percentage of total loans was 1.32% as of December 31, 2019 versus 1.55% as of December 31, 2018.  Our adversely classified coverage ratio was 14.49% as of December 31, 2019 versus 15.25% as of December 31, 2018. Our level of ORE decreased to $384,310 at December 31, 2019 from $590,211 at December 31, 2018.  This level of ORE is the lowest held in over ten years.

Noninterest income increased $870 thousand or 27.52% for the year ending December 31, 2019.  The increase was driven primarily by an increase in service charges on deposit accounts as a result of the FMB merger.

Noninterest expense increased 36.39% or $6.8 million to $25.6 million at December 31, 2019 from $18.8 million as of December 31, 2018.  The majority of this increase was related to the aforementioned initial FMB transaction costs as well as 8 months of normal operating costs in the newly acquired market.

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
 
Consolidated Balance Sheet
December 31, 2019
                 
                 
                 
      2019       2018     $ Change   % Change
    (Unaudited)            
ASSETS                              
                               
Cash and due from banks   $ 77,696,887     $ 29,257,366     $ 48,439,521     165.6 %
Federal funds sold     16,293,628       14,044,014       2,249,614     16.0 %
Interest bearing time deposits in other banks     1,350,000       2,098,000       (748,000 )   -35.7 %
Securities available for sale, at fair value     124,315,098       70,845,928       53,469,170     75.5 %
Securities held to maturity, at cost     4,752,384       5,716,318       (963,934 )   -16.9 %
Federal Home Loan Bank stock     842,900       993,300       (150,400 )   -15.1 %
Loans, less allowance for loan losses                              
of $9,716,060 and $9,480,989 respectfully     729,170,345       603,548,731       125,621,614     20.8 %
Premises and equipment, net     15,618,198       8,884,433       6,733,765     75.8 %
Goodwill     9,361,770       2,237,890       7,123,880     318.3 %
Intangible assets, net     3,067,075       288,920       2,778,155     961.6 %
Other real estate and foreclosed assets     396,486       835,921       (439,435 )   -52.6 %
Accrued interest receivable     3,962,807       3,064,254       898,553     29.3 %
Cash surrender value of life insurance     13,248,384       7,035,138       6,213,246     88.3 %
Other assets     7,979,800       1,215,978       6,763,822     556.2 %
                               
Total assets   $ 1,008,055,762     $ 750,066,191     $ 257,989,571     34.4 %
                               
                               
LIABILITIES AND SHAREHOLDERS' EQUITY                              
                               
Deposits:                              
Non-interest-bearing demand   $ 195,016,771     $ 122,899,907     $ 72,116,864     58.7 %
Interest-bearing     682,509,497       532,608,585       149,900,912     28.1 %
      877,526,268       655,508,492       222,017,776     33.9 %
                               
Other borrowed funds     15,003,206       9,857,143       5,146,063     52.2 %
Accrued interest payable     537,928       401,934       135,994     33.8 %
Accrued expenses and other liabilities     3,556,513       2,066,457       1,490,056     72.1 %
                               
Total liabilities     896,623,915       667,834,026       228,789,889     34.3 %
                               
Shareholders' Equity:                              
Common stock     2,144,917       1,882,740       262,177     13.9 %
Paid in capital surplus     39,298,458       24,225,182       15,073,276     62.2 %
Less: treasury stock     (1,379,632 )     (1,211,099 )     (168,533 )   13.9 %
Retained earnings     55,916,996       42,556,445       13,360,551     31.4 %
Current year earnings     13,620,624       15,236,144       (1,615,520 )   -10.6 %
Accumulated other comprehensive income (loss)     1,830,484       (457,247 )     2,287,731     -500.3 %
Total shareholders' equity     111,431,847       82,232,165       29,199,682     35.5 %
                               
Total Liabilities and Shareholders' Equity   $ 1,008,055,762     $ 750,066,191       257,989,571     34.4 %
                               
                               


MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
                 
Consolidated Statement of Income
December 31, 2019
                 
                 
                 
      2019       2018     $ Change   % Change
    (Unaudited)            
Interest and dividend income:                              
Loans, including fees   $ 42,472,550     $ 35,472,471     $ 7,000,079     19.73 %
Securities     2,885,821       1,755,255       1,130,566     64.41 %
Federal funds sold     513,422       312,613       200,809     64.24 %
Interest-bearing deposits in banks     925,860       42,579       883,281     2074.45 %
FHLB stock     71,588       79,172       (7,584 )   -9.58 %
Other interest and dividend income     751,317       317,821       433,496     136.40 %
Total interest income     47,620,558       37,979,911       9,640,647     25.38 %
                               
Interest expense:                              
Deposits     7,963,852       5,408,394     $ 2,555,458     47.25 %
Borrowed funds     733,660       319,560       414,100     129.58 %
Federal funds purchased     151       946       (795 )   -84.04 %
Total interest expense     8,697,663       5,728,900       2,968,763     51.82 %
                               
Net interest income     38,922,895       32,251,011       6,671,884     20.69 %
                               
Provision for loan losses     1,650,000       1,425,000       225,000     15.79 %
                               
Net interest income after                              
provision for loan losses     37,272,895       30,826,011       6,446,884     20.91 %
                               
Noninterest income:                              
Service charges on deposit accounts     3,076,556       2,384,911       691,645     29.00 %
Other fees and commissions     61,413       155,083       (93,670 )   -60.40 %
Gain (loss) on sales and calls of securities     (24,471 )     (3,351 )     (21,120 )   630.26 %
Gain on sale of loans     263,029       47,493       215,536     453.83 %
Increase in CSV of life insurance     213,246       183,956       29,290     15.92 %
Other income     443,079       394,494       48,585     12.32 %
Total noninterest income     4,032,852       3,162,586       870,266     27.52 %
                               
Noninterest expense:                              
Salaries and employee benefits     14,056,471       11,006,233       3,050,238     27.71 %
Occupancy and equipment expenses, net     2,372,548       1,771,953       600,595     33.89 %
Loss (gain) on sales and impairments of of foreclosed                              
and other real estate     (270,572 )     265,900       (536,472 )   -201.76 %
Loss (gain) on sales of premises and equipment     (1,000 )     435       (1,435 )   -329.89 %
Other operating     9,418,971       5,707,932       3,711,039     65.02 %
Total noninterest expense     25,576,418       18,752,453       6,823,965     36.39 %
   Income before Taxes     15,729,329       15,236,144       493,185     3.24 %
Income Taxes     2,108,705       --       2,108,705        
                               
Net Income   $ 13,620,624     $ 15,236,144     $ (1,615,520 )   -10.60 %
                               
                               
Earnings per Share   $ 6.82     $ 8.34     $ (1.52 )   -18.23 %
TBV per Common Share   $ 47.18     $ 43.35     $ 3.83     8.84 %
                               
                               


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,
      2019   2018*     2019       2019       2019       2019     2018*
(Dollars in thousand, except per share data)   (Unaudited)     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                                                       
Per Share Data                                                      
Basic Earnings per Common Share   $ 6.82   $ 8.34     $ 1.48     $ 1.95     $ 0.95     $ 2.50     $ 2.34  
Diluted Earnings per Common Share     6.82     8.34       1.48       1.95       0.95       2.50       2.34  
Dividends per Common Share     0.93     2.61       -       -       -       1.02       -  
Book Value per Common Share     53.11     44.72       53.11       51.87       49.78       46.71       44.72  
Tangible Book Value per Common Share     47.18     43.35       47.18       45.91       43.62       45.18       43.35  
                                                       
                                                       
Average Diluted Shares Outstanding     1,997,735     1,826,854       2,100,395       2,058,039       1,988,231       1,840,764       1,833,100  
End of Period Common Shares Outstanding     2,098,250     1,838,816       2,098,250       2,100,842       2,057,568       1,840,980       1,838,816  
                                                       
* Subchapter S Tax Status                                                      
                                                       
Annualized Performance Ratios (Bank Only)                                                      
Return on Average Assets     1.63 %   2.15 %     1.49 %     1.80 %     0.96 %     2.44 %     2.35 %
Return on Average Equity     14.56 %   20.65 %     12.37 %     14.51 %     9.52 %     23.74 %     22.23 %
Equity/Assets     11.65 %   10.66 %     11.65 %     12.23 %     12.14 %     10.92 %     10.66 %
Cost of Funds     1.02 %   0.89 %     0.91 %     0.99 %     1.06 %     1.17 %     1.05 %
Net Interest Margin     4.65 %   4.88 %     4.70 %     5.20 %     4.29 %     4.42 %     4.98 %
Efficiency Ratio     57.80 %   52.59 %     54.88 %     53.00 %     64.39 %     59.79 %     51.07 %
                                                       

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

Primary Logo