DUBLIN, Ga., Feb. 03, 2026 (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, 2025. Year-over-year and quarter-by-quarter comparisons are included herewith.
On January 28, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.13 per common share--an increase of $0.01 per share or 8.33% over the quarterly dividend of $0.12 paid in each quarter 2025. This dividend will be payable on or about March 10, 2026, to all shareholders of record as of February 10, 2026. In addition to this quarterly dividend, the Board also approved a one-time special dividend of $0.16 per common share. This special dividend will be payable on or about March 20, 2026, to all shareholders of record as of February 16, 2026.
"We had another strong year in 2025 and I couldn't be more proud of what our team accomplished. We delivered net earnings of $26.5 million, driven by steady, disciplined execution across the balance sheet. We continued to build momentum in our core earnings, growing our net interest margin from 4.06% for 2024 to 4.48% in 2025. That improvement reflects thoughtful pricing, better earning-asset yields, and continued progress in lowering our cost of funds while realizing healthy growth in our non-interest-bearing deposits. Altogether, those efforts generated more than $6 million in additional net interest income beyond what came from balance-sheet growth alone." said Spence Mullis, Chairman and CEO. "At the bank level, we produced a 1.86% return on average assets and a 14.42% return on average equity, results that speak to the strength of our operating model and the consistency of our execution. Most importantly, these results are a direct reflection of our people. Their focus, discipline, and commitment to serving our customers and communities continue to make the difference. While we did benefit from a couple of one-time items we discussed in our third quarter release, the underlying performance of the bank is very strong and well-positioned for our anticipated upcoming merger with Vallant Financial, Inc. and its subsidiary Pinnacle Bank based in Elberton, Georgia."
Mullis further commented "I and the rest of our team are looking forward with great optimism as we approach our partnership with the great folks at Vallant. I'm pleased to report that we've received approval for our merger from each of our banking regulators and look to forward to completing the process as we move through a fairness hearing with the Georgia Secretary of State's office and a final shareholder vote planned for March of this year."
Following is a summary of the quarterly and annual highlights:
Fourth Quarter 2025 Highlights
-- Net income for the fourth quarter of 2025 was $6.4 million, compared to
$9.2 million for the third quarter of 2025 and $6.1 million for the
fourth quarter of 2024.
-- Diluted earnings per share for the fourth quarter of 2025 was $0.60,
compared to $0.86 for the third quarter of 2025 and $0.52 for the fourth
quarter of 2024.
-- Earnings before taxes for the fourth quarter of 2025 was $8.5 million,
compared to $12.1 million for the third quarter of 2025 and $6.6 million
for the fourth quarter of 2024.
-- Net loans at year end 2025 totaled $1.18 billion, versus $1.16 billion at
September 30, 2025 and $1.10 billion at year end 2024.
-- Average cost of funds for the fourth quarter of 2025 was 184 basis points,
compared to 196 basis points for the third quarter of 2025 and 206 basis
points for the fourth quarter of 2024.
-- Return on average assets (annualized) at the bank level for the fourth
quarter of 2025 was 1.86%, compared to 2.43% for the third quarter of
2025 and 1.79% for the fourth quarter of 2024.
Full Year 2025 Highlights
-- Total assets increased to $1.55 billion at December 31, 2025, compared to
$1.49 billion at December 31, 2024.
-- Earnings before income taxes totaled $34.9 million for 2025 compared to
$23.0 million in 2024.
-- Full year net income of $26.5 million in 2025, compared to $21.8 million
in 2024.
-- Return on average assets at the bank level of 1.86% for the full year
2025, compared to 1.68% for 2024.
-- Diluted earnings per share of $2.49 in 2025, compared to $2.06 in 2024.
-- Total shareholders' equity increased 8.57% or $16.8 million to $212.4
million at December 31, 2025, compared to $195.6 million at December 31,
2024.
-- Tangible book value per share of $18.99 at December 31, 2025, compared to
$17.45 at December 31, 2024.
-- Net loans grew $78.5 million, or 7.13%, during 2025.
-- The Bank's asset quality remains solid, ending the year with
nonperforming assets to total loans and other real estate of 0.28%, past
due and nonaccrual loans of 1.10% and net charge offs to average loans of
0.15% for 2025.
-- Bank-level efficiency ratio was 47.94% in 2025, compared to 58.27% in
2024.
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 expected timing of the closing of the proposed merger with Vallant Financial, Inc.; the ability of the parties to complete the proposed transaction considering the various closing conditions; risks related to the integration of the Company and Vallant Financial, Inc.; the business and economic conditions; 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.
CONTACT:
Morris State Bancshares
Chris Bond
Chief Financial Officer
478-272-5202
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Consolidating Balance Sheet
December 31, 2025
December 31, December 31,
2025 2024 Change % Change
------------- ------------- ------------- -----------
(Unaudited) (Unaudited)
ASSETS
--------------------
Cash and due from banks $ 68,557,088 $ 53,898,138 $ 14,658,950 27.20%
Federal funds sold 24,222,527 42,064,131 (17,841,604) -42.42%
------------- ------------- ----------- -------
Total cash and cash
equivalents 92,779,615 95,962,269 (3,182,654) -3.32%
------------- ------------- ----------- -------
Interest-bearing time deposits
in other banks 100,000 100,000 -- 0.00%
Securities available for sale,
at fair value 23,890,954 9,726,716 14,164,238 0.00%
Securities held to maturity, at
cost 186,027,966 215,836,502 (29,808,536) -13.81%
Federal Home Loan Bank stock,
restricted, at cost 1,084,300 1,032,800 51,500 4.99%
Loans, net of unearned income 1,195,494,788 1,116,074,659 79,420,129 7.12%
Less-allowance for loan losses (15,367,077) (14,488,525) (878,552) 6.06%
------------- ------------- ----------- -------
Loans, net 1,180,127,711 1,101,586,134 78,541,577 7.13%
------------- ------------- ----------- -------
Bank premises and equipment,
net 14,915,617 12,780,014 2,135,603 16.71%
ROU assets for operating lease,
net 565,759 776,979 (211,220) -27.18%
Goodwill 9,361,704 9,361,704 -- 0.00%
Intangible assets, net 1,009,542 1,338,964 (329,422) -24.60%
Other real estate and
foreclosed assets 1,059,930 21,898 1,038,032 4740.31%
Accrued interest receivable 7,871,717 7,278,258 593,459 8.15%
Cash surrender value of life
insurance 15,559,812 15,128,762 431,050 2.85%
Other assets 15,673,514 22,674,658 (7,001,144) -30.88%
------------- ------------- ----------- -------
Total Assets $1,550,028,141 $1,493,605,658 $ 56,422,483 3.78%
============= ============= =========== =======
LIABILITIES AND
SHAREHOLDERS'
EQUITY
--------------------
Deposits:
Non-interest bearing $ 350,297,726 $ 325,534,335 $ 24,763,391 7.61%
Interest bearing 970,980,044 939,354,005 31,626,039 3.37%
------------- ------------- ----------- -------
1,321,277,770 1,264,888,340 56,389,430 4.46%
Other borrowed funds 4,124,000 19,019,372 (14,895,372) -78.32%
Lease liability for operating
lease 565,759 776,979 (211,220) -27.18%
Accrued interest payable 2,873,678 2,111,093 762,585 36.12%
Accrued expenses and other
liabilities 8,828,315 11,206,717 (2,378,402) -21.22%
------------- ------------- ----------- -------
Total liabilities 1,337,669,522 1,298,002,501 39,667,021 3.06%
------------- ------------- ----------- -------
Shareholders'
Equity:
Common stock 10,754,034 10,688,723 65,311 0.61%
Paid in capital surplus 36,181,552 34,936,059 1,245,493 3.57%
Retained earnings 141,831,290 130,111,050 11,720,240 9.01%
Current year earnings 26,486,986 21,804,345 4,682,641 21.48%
Accumulated other
comprehensive income
(loss) 920,256 1,422,709 (502,453) -35.32%
Treasury Stock, at cost
116,428 shares (3,815,499) (3,359,729) (455,770) 13.57%
Total shareholders'
equity 212,358,619 195,603,157 16,755,462 8.57%
------------- ------------- ----------- -------
Total Liabilities and
Shareholders' Equity $1,550,028,141 $1,493,605,658 56,422,483 3.78%
============= ============= =========== =======
MORRIS STATE BANCSHARES, INC.
AND SUBSIDIARIES
Consolidating Statement of Income
December 31, 2025
December December
31, 31,
2025 2024 Change % Change
---------- ---------- ------------ ----------
(Unaudited) (Unaudited)
Interest and
Dividend Income:
Interest and fees
on loans $82,359,442 $72,453,630 $ 9,905,812 13.67%
Interest income on
securities 6,364,282 7,368,157 (1,003,875) -13.62%
Income on federal
funds sold 1,043,787 851,717 192,070 22.55%
Income on time
deposits held in
other banks 3,051,688 1,699,224 1,352,464 79.59%
Other interest and
dividend income 84,634 183,239 (98,605) -53.81%
------
Total interest
and dividend
income 92,903,833 82,555,967 10,347,866 12.53%
---------- ---------- ---------- ------
Interest Expense:
Deposits 25,690,690 25,981,731 (291,041) -1.12%
Interest on other
borrowed funds 808,907 1,548,980 (740,073) -47.78%
Interest on federal
funds purchased 827 296 531 179.39%
Total interest
expense 26,500,424 27,531,007 (1,030,583) -3.74%
---------- ---------- ---------- ------
Net interest income
before provision for
loan losses 66,403,409 55,024,960 11,378,449 20.68%
Less-provision for
loan losses 2,794,426 556,913 2,237,513 401.77%
---------- ---------- ---------- ------
Net interest
income after
provision for
loan losses 63,608,983 54,468,047 9,140,936 16.78%
---------- ---------- ---------- ------
Noninterest
Income:
Service charges on
deposit accounts 2,315,270 2,164,988 150,282 6.94%
Other service
charges,
commisions and
fees 1,561,610 1,553,493 8,117 0.52%
Gain on sales of
foreclosed assets -- -- -- 0.00%
Gain on sales and
calls of
securities -- 182 (182) 0.00%
Gain on sale of
premises amd
equipment 12,950 -- 12,950 --
Increase in CSV of
life insurance 431,050 417,139 13,911 3.33%
Other income 3,542,178 644,868 2,897,310 449.29%
---------- ------
Total
noninterest
income 7,863,058 4,780,670 3,082,388 64.48%
---------- ---------- ---------- ------
Noninterest
Expense:
Salaries and
employee benefits 20,601,965 19,050,416 1,551,549 8.14%
Occupancy and
equipment
expenses, net 2,336,478 2,223,832 112,646 5.07%
(Gain) Loss on
sales of other
assets 2,326 9,681 (7,355) 0.00%
Other expenses 13,588,142 14,961,004 (1,372,862) -9.18%
---------- ---------- ---------- ------
Total
noninterest
expense 36,528,911 36,244,933 283,978 0.78%
---------- ---------- ---------- ------
Income Before Income
Taxes 34,943,130 23,003,784 11,939,346 51.90%
Provision for
income taxes 8,456,145 1,199,439 7,256,706 605.01%
---------- ---------- ---------- ------
Net Income $26,486,985 $21,804,345 4,682,640 21.48%
========== ========== ========== ======
Earnings per
common share:
Basic $ 2.49 $ 2.06 0.43 21.09%
========== ========== ========== ======
Diluted $ 2.49 $ 2.06 0.43 21.09%
========== ========== ========== ======
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,
2025 2024 2025 2025 2025 2025 2024
(Dollars in thousand,
except per share
data) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Per Share Data
----------------------
Basic Earnings per
Common Share $ 2.49 $ 2.06 $ 0.60 $ 0.86 $ 0.57 $ 0.46 $ 0.52
Diluted Earnings per
Common Share 2.49 2.06 0.60 0.86 0.57 0.46 0.52
Dividends per Common
Share 0.63 0.368 0.12 0.120 0.120 0.270 0.092
Book Value per Common
Share 19.96 18.46 19.96 19.49 19.05 18.66 18.46
Tangible Book Value per
Common Share 18.99 17.45 18.99 18.51 18.06 17.66 17.45
Average Diluted Shares
Outstanding 10,629,599 10,603,218 10,649,977 10,622,703 10,608,771 10,593,370 10,596,432
End of Period Common
Shares Outstanding 10,637,606 10,593,225 10,637,606 10,650,112 10,650,112 10,606,258 10,593,225
Selected Balance Sheet
Data (Bank Only)
----------------------
Net Loans $ 1,180,128 $ 1,101,586 $ 1,180,128 $ 1,159,077 $ 1,140,919 $ 1,124,890 $ 1,101,286
Non-Interest Bearing
Deposits 361,832 347,929 361,832 344,745 370,879 353,158 347,929
Interest Bearing Demand
Deposits 246,320 260,371 246,320 245,707 252,487 264,937 260,371
Savings & Money Market
Deposits 405,914 402,641 405,914 406,430 404,427 397,973 402,641
Time Deposits 319,109 276,898 319,109 326,022 316,118 301,281 276,898
Earnings Summary
----------------------
Net Interest Income 66,403 55,025 17,716 16,955 16,220 15,476 14,496
Provision for Credit
Losses 2,794 557 644 1,134 439 577 28
Non-Interest Income 7,863 4,781 1,480 3,966 1,371 1,046 1,076 Non-Interest Expense 36,529 36,245 10,012 7,656 9,269 9,555 8,934 Earnings before Taxes 34,943 23,004 8,540 12,131 7,882 6,389 6,610 Income Taxes 8,456 1,199 2,169 2,927 1,883 1,476 465 Net Income 26,487 21,805 6,371 9,204 5,999 4,913 6,145 Annualized Performance Ratios (Bank Only) ---------------------- Return on Average Assets 1.86% 1.68% 1.86% 2.43% 1.71% 1.41% 1.79% Return on Average Equity 14.42% 12.74% 14.05% 18.97% 13.33% 11.12% 13.69% Equity/Assets 13.20% 12.84% 13.20% 13.03% 12.70% 12.75% 12.84% Cost of Funds 1.93% 2.12% 1.84% 1.96% 1.98% 1.97% 2.06% Net Interest Margin 4.48% 4.06% 4.73% 4.48% 4.43% 4.29% 4.17% Efficiency Ratio 47.94% 58.27% 48.42% 36.96% 50.97% 57.90% 54.21% Nonperforming Assets to Total Loans and Other Real Estate 0.28% 0.41% 0.38% 0.38% 0.37% 0.41% 0.41% Past Due and Nonaccural Loans Ratio 1.10% 0.72% 0.69% 0.69% 0.61% 0.68% 0.72% Net Chargeoffs to Average Loans 0.15% 0.04% 0.10% 0.31% 0.18% 0.01% 0.01%
(END) Dow Jones Newswires
February 03, 2026 08:02 ET (13:02 GMT)