DUBLIN, Ga., Feb. 02, 2023 (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, 2022. Year over year and quarter by quarter comparisons are included herewith. Following is a summary of the quarterly and annual highlights:
Fourth Quarter 2022 Highlights
- Net income for the fourth quarter of 2022 was $6.6 million, compared to $2.1 million for the third quarter of 2022 and $7.1 million for the fourth quarter of 2021.
- Diluted earnings per share for the fourth quarter of 2022 was $3.14, compared to $0.99 for the third quarter of 2022 and $3.38 for the fourth quarter of 2021.
- Earnings before taxes for the fourth quarter of 2022 was $5.9 million, compared to $2.7 million for the third quarter of 2022 and $7.1 million for the fourth quarter of 2021.
- Average cost of funds for the fourth quarter of 2022 was 77 basis points, compared to 43 basis points for the third quarter of 2022 and 17 basis points for the fourth quarter of 2021.
- Loans net of PPP grew $20.5 million, or 7.8% annualized, during the fourth quarter of 2022 as compared to September 30, 2022.
- Return on average assets at the bank level for the fourth quarter of 2022 was 2.03%, compared to 0.80% for the third quarter of 2022 and 2.24% annualized for the fourth quarter of 2021.
Full Year 2022 Highlights
- Total assets were $1.44 billion at December 31, 2022, compared to $1.41 billion at December 31, 2021.
- Total shareholders’ equity was $165.0 million at December 31, 2022, compared to $148.3 at December 31, 2021.
- Full year net income of $21.1 million in 2022, compared to $24.0 million in 2021.
- Diluted earnings per share of $9.98 in 2022, compared to $11.40 in 2021.
- Net loans grew $125.7 million, or 13.57%, during 2022.
- Bank-level efficiency ratio of 52.11% in 2022, compared to 50.56% in 2021.
- Tangible book value per share of $72.65 at December 31, 2022, compared to $64.77 at December 31, 2021.
- Return on average assets at the bank level of 1.66% for the full year 2022, compared to 1.96% for 2021.
“We are very pleased with the overall financial performance of the Company in 2022. In a year in which the Fed raised interest rates an unprecedented seven times and the occurrence of a fraud-related $3 million isolated loan loss we were still able to produce very strong returns for our shareholders,” said Spence Mullis, Chairman and CEO. “At the bank level we produced a 1.66% return on average assets and 13.45% return on average equity while growing assets $25.5 million and total equity $16.8 million at the company level after distributing $3.7 million in dividends back to our shareholders.”
On January 25, 2023, the company approved a first quarter dividend of $0.44 per share payable on or about March 15, 2023, to all shareholders of record as of February 28, 2023. The company also announced that Morris Bank’s Chief Banking Officer Stacy Brantley will be leaving the bank on February 3, 2023, to pursue other career opportunities. Mullis stated, “I would like to thank Stacy Brantley for his contributions to the bank since joining in 2009. Stacy is a great friend to me and has contributed to the growth and success of Morris Bank. I wish him well in his future endeavors.” Mullis was appointed to the additional role of Acting Chief Banking Officer of Morris Bank with Stacy’s departure.
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 December 31, 2022 | |||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | Change | % Change | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 49,302,788 | $ | 162,649,843 | $ | (113,347,055 | ) | -69.69 | % | ||||||
| Federal funds sold | 21,007,642 | 14,278,248 | 6,729,394 | 47.13 | % | ||||||||||
| Total cash and cash equivalents | 70,310,430 | 176,928,091 | (106,617,661 | ) | -60.26 | % | |||||||||
| Interest-bearing time deposits in other banks | 100,000 | 350,000 | (250,000 | ) | -71.43 | % | |||||||||
| Securities available for sale, at fair value | -- | 244,979,034 | (244,979,034 | ) | -- | ||||||||||
| Securities held to maturity, at cost | 259,677,508 | 11,123,253 | 248,554,255 | 2234.55 | % | ||||||||||
| Federal Home Loan Bank stock, restricted, at cost | 1,578,400 | 624,300 | 954,100 | 152.83 | % | ||||||||||
| Loans, net of unearned income | 1,051,888,290 | 926,226,134 | 125,662,156 | 13.57 | % | ||||||||||
| Less-allowance for loan losses | (13,629,255 | ) | (12,008,416 | ) | (1,620,839 | ) | 13.50 | % | |||||||
| Loans, net | 1,038,259,035 | 914,217,718 | 124,041,317 | 13.57 | % | ||||||||||
| Bank premises and equipment, net | 13,865,943 | 14,938,591 | (1,072,648 | ) | -7.18 | % | |||||||||
| ROU assets for operating lease, net | 1,529,545 | 1,239,826 | 289,719 | 23.37 | % | ||||||||||
| Goodwill | 9,361,704 | 9,361,704 | -- | -- | |||||||||||
| Intangible assets, net | 2,023,540 | 2,369,390 | (345,850 | ) | -14.60 | % | |||||||||
| Other real estate and foreclosed assets | 3,715,202 | 5,332,096 | (1,616,894 | ) | -30.32 | % | |||||||||
| Accrued interest receivable | 5,341,616 | 4,647,197 | 694,419 | 14.94 | % | ||||||||||
| Cash surrender value of life insurance | 14,333,544 | 13,977,951 | 355,593 | 2.54 | % | ||||||||||
| Other assets | 16,558,916 | 11,014,182 | 5,544,734 | 50.34 | % | ||||||||||
| Total Assets | $ | 1,436,655,383 | $ | 1,411,103,333 | $ | 25,552,050 | 1.81 | % | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest bearing | $ | 339,657,309 | $ | 337,810,442 | $ | 1,846,867 | 0.55 | % | |||||||
| Interest bearing | 876,009,017 | 886,394,003 | (10,384,986 | ) | -1.17 | % | |||||||||
| 1,215,666,326 | 1,224,204,445 | (8,538,119 | ) | -0.70 | % | ||||||||||
| Other borrowed funds | 48,826,681 | 28,752,079 | 20,074,602 | 69.82 | % | ||||||||||
| Lease liability for operating lease | 1,529,545 | 1,239,826 | 289,719 | 23.37 | % | ||||||||||
| Accrued interest payable | 143,899 | 134,392 | 9,507 | 7.07 | % | ||||||||||
| Accrued expenses and other liabilities | 5,461,126 | 8,513,648 | (3,052,522 | ) | -35.85 | % | |||||||||
| Total liabilities | 1,271,627,577 | 1,262,844,390 | 8,783,187 | 0.70 | % | ||||||||||
| Shareholders' Equity: | |||||||||||||||
| Common stock | 2,171,665 | 2,159,148 | 12,517 | 0.58 | % | ||||||||||
| Paid in capital surplus | 41,086,276 | 40,349,139 | 737,137 | 1.83 | % | ||||||||||
| Retained earnings | 99,943,774 | 80,075,546 | 19,868,228 | 24.81 | % | ||||||||||
| Current year earnings | 21,108,630 | 23,964,290 | (2,855,660 | ) | -11.92 | % | |||||||||
| Accumulated other comprehensive income (loss) | 2,608,086 | 3,404,364 | (796,278 | ) | -23.39 | % | |||||||||
| Treasury Stock, at cost 56,912 shares | (1,890,625 | ) | (1,693,544 | ) | (197,081 | ) | 11.64 | % | |||||||
| Total shareholders' equity | 165,027,806 | 148,258,943 | 16,768,863 | 11.31 | % | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,436,655,383 | $ | 1,411,103,333 | 25,552,050 | 1.81 | % | ||||||||
| MORRIS STATE BANCSHARES, INC. AND SUBSIDIARIES | |||||||||||||||
| Consolidating Statement of Income December 31, 2022 | |||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | Change | % Change | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Interest and Dividend Income: | |||||||||||||||
| Interest and fees on loans | $ | 52,930,545 | $ | 52,043,715 | $ | 886,830 | 1.70 | % | |||||||
| Interest income on securities | 7,294,294 | 5,895,358 | 1,398,936 | 23.73 | % | ||||||||||
| Income on federal funds sold | 186,056 | 74,911 | 111,145 | 148.37 | % | ||||||||||
| Income on time deposits held in other banks | 807,990 | 130,572 | 677,418 | 518.81 | % | ||||||||||
| Other interest and dividend income | 460,924 | 177,004 | 283,920 | 160.40 | % | ||||||||||
| Total interest and dividend income | 61,679,809 | 58,321,560 | 3,358,249 | 5.76 | % | ||||||||||
| Interest Expense: | |||||||||||||||
| Deposits | 4,530,637 | 2,338,787 | 2,191,850 | 93.72 | % | ||||||||||
| Interest on other borrowed funds | 1,741,037 | 1,559,428 | 181,609 | 11.65 | % | ||||||||||
| Interest on federal funds purchased | 3,221 | -- | 3,221 | -- | |||||||||||
| Total interest expense | 6,274,895 | 3,898,215 | 2,376,680 | 60.97 | % | ||||||||||
| Net interest income before provision for loan losses | 55,404,914 | 54,423,345 | 981,569 | 1.80 | % | ||||||||||
| Less-provision for loan losses | 5,100,000 | 2,000,000 | 3,100,000 | 155.00 | % | ||||||||||
| Net interest income after provision for loan losses | 50,304,914 | 52,423,345 | (2,118,431 | ) | -4.04 | % | |||||||||
| Noninterest Income: | |||||||||||||||
| Service charges on deposit accounts | 2,417,905 | 1,983,721 | 434,184 | 21.89 | % | ||||||||||
| Other service charges, commissions and fees | 1,512,194 | 1,600,219 | (88,025 | ) | -5.50 | % | |||||||||
| Gain on sales of foreclosed assets | 608,935 | -- | 608,935 | -- | |||||||||||
| Gain on sales and calls of securities | -- | 299,870 | (299,870 | ) | -- | ||||||||||
| Gain on sale of loans | -- | 37,683 | (37,683 | ) | -- | ||||||||||
| Increase in CSV of life insurance | 355,593 | 357,508 | (1,915 | ) | -0.54 | % | |||||||||
| Other income | 162,625 | 380,138 | (217,513 | ) | -57.22 | % | |||||||||
| Total noninterest income | 5,057,252 | 4,659,139 | 398,113 | 8.54 | % | ||||||||||
| Noninterest Expense: | |||||||||||||||
| Salaries and employee benefits | 18,532,771 | 18,241,891 | 290,880 | 1.59 | % | ||||||||||
| Occupancy and equipment expenses, net | 2,290,897 | 2,201,420 | 89,477 | 4.06 | % | ||||||||||
| (Gain) Loss on sales of foreclosed assets and other real estate | -- | (2,610 | ) | 2,610 | -100.00 | % | |||||||||
| Loss on sales of premises and equipment | 201,009 | -- | 201,009 | -- | |||||||||||
| Other expenses | 12,397,182 | 10,413,609 | 1,983,573 | 19.05 | % | ||||||||||
| Total noninterest expense | 33,421,859 | 30,854,310 | 2,567,549 | 8.32 | % | ||||||||||
| Income Before Income Taxes | 21,940,307 | 26,228,174 | (4,287,867 | ) | -16.35 | % | |||||||||
| Provision for income taxes | 831,677 | 2,263,886 | (1,432,209 | ) | -63.26 | % | |||||||||
| Net Income | $ | 21,108,630 | $ | 23,964,288 | (2,855,658 | ) | -11.92 | % | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 9.98 | $ | 11.40 | (1.42 | ) | -12.46 | % | |||||||
| Diluted | $ | 9.98 | $ | 11.40 | (1.42 | ) | -12.46 | % | |||||||
| 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, | |||||||||||||||||||||
| 2022 | 2021 | 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||||
| (Dollars in thousand, except per share data) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||
| Per Share Data | |||||||||||||||||||||||||||
| Basic Earnings per Common Share | $ | 9.98 | $ | 11.40 | $ | 3.14 | $ | 0.99 | $ | 3.21 | $ | 1.79 | $ | 3.38 | |||||||||||||
| Diluted Earnings per Common Share | 9.98 | 11.40 | 3.14 | 0.99 | 3.21 | 1.79 | 3.38 | ||||||||||||||||||||
| Dividends per Common Share | 1.76 | 1.52 | 0.44 | 0.44 | 0.44 | 0.44 | 0.38 | ||||||||||||||||||||
| Book Value per Common Share | 78.04 | 70.34 | 78.04 | 75.42 | 74.97 | 72.49 | 70.34 | ||||||||||||||||||||
| Tangible Book Value per Common Share | 72.65 | 64.77 | 72.65 | 70.01 | 69.52 | 66.98 | 64.77 | ||||||||||||||||||||
| Average Diluted Shares Outstanding | 2,115,032 | 2,102,359 | 2,116,521 | 2,118,910 | 2,116,526 | 2,108,037 | 2,106,819 | ||||||||||||||||||||
| End of Period Common Shares Outstanding | 2,114,753 | 2,107,857 | 2,114,753 | 2,116,921 | 2,120,374 | 2,114,439 | 2,107,857 | ||||||||||||||||||||
| Selected Balance Sheet Data (Bank Only) | |||||||||||||||||||||||||||
| Loans (net of PPP) | 1,049,916 | 913,818 | 1,049,916 | 1,029,464 | 1,006,632 | 952,139 | 913,818 | ||||||||||||||||||||
| PPP Loans | 33 | 9,974 | 33 | 66 | 2,768 | 5,284 | 9,974 | ||||||||||||||||||||
| Total Loans | 1,049,949 | 923,792 | 1,049,949 | 1,029,530 | 1,009,399 | 957,423 | 923,792 | ||||||||||||||||||||
| Non-Interest Bearing Deposits | 339,785 | 343,437 | 339,785 | 366,924 | 367,639 | 365,018 | 343,437 | ||||||||||||||||||||
| Interest Bearing Demand Deposits | 270,473 | 271,693 | 270,473 | 271,193 | 283,448 | 288,575 | 271,693 | ||||||||||||||||||||
| Savings & Money Market Deposits | 444,170 | 436,462 | 444,170 | 434,765 | 415,922 | 434,635 | 436,462 | ||||||||||||||||||||
| Earnings Summary | |||||||||||||||||||||||||||
| Net Interest Income | 55,405 | 54,423 | 13,846 | 13,946 | 14,054 | 13,558 | 14,029 | ||||||||||||||||||||
| Provision for Loan Losses | 5,100 | 2,000 | 600 | 3,750 | 375 | 375 | 150 | ||||||||||||||||||||
| Non-Interest Income | 5,057 | 4,659 | 1,000 | 1,213 | 1,488 | 1,376 | 1,397 | ||||||||||||||||||||
| Non-Interest Expense | 33,422 | 30,854 | 8,306 | 8,740 | 7,944 | 8,452 | 8,186 | ||||||||||||||||||||
| Earnings before Taxes | 21,940 | 26,228 | 5,940 | 2,669 | 7,223 | 6,108 | 7,090 | ||||||||||||||||||||
| Income Taxes | 832 | 2,264 | (704 | ) | 568 | 421 | 547 | - | |||||||||||||||||||
| Net Income | 21,109 | 23,964 | 6,644 | 2,101 | 6,802 | 5,561 | 7,090 | ||||||||||||||||||||
| Annualized Performance Ratios (Bank Only) | |||||||||||||||||||||||||||
| Return on Average Assets | 1.66 | % | 1.96 | % | 2.03 | % | 0.80 | % | 2.08 | % | 1.74 | % | 2.24 | % | |||||||||||||
| Return on Average Equity | 13.45 | % | 16.55 | % | 15.90 | % | 6.34 | % | 16.93 | % | 14.87 | % | 18.99 | % | |||||||||||||
| Equity/Assets | 12.83 | % | 11.85 | % | 12.83 | % | 12.49 | % | 12.44 | % | 11.90 | % | 11.85 | % | |||||||||||||
| Cost of Funds | 0.38 | % | 0.20 | % | 0.77 | % | 0.43 | % | 0.16 | % | 0.15 | % | 0.17 | % | |||||||||||||
| Net Interest Margin | 4.11 | % | 4.18 | % | 4.13 | % | 4.12 | % | 4.14 | % | 4.04 | % | 4.16 | % | |||||||||||||
| Efficiency Ratio | 52.11 | % | 50.56 | % | 54.12 | % | 52.81 | % | 48.06 | % | 53.50 | % | 51.25 | % | |||||||||||||
