April 19, 2024

Dear Marine Shareholders:

I am pleased to announce that Marine Bank continues to grow and gain new clients as their preferred bank in the communities we serve. Our team of talented Bankers strives to exceed our clients’ expectations, and nurture unwavering client loyalty, even during these unusual economic times.

This achievement has been recognized in our financial performance by Bauer Financial, the premier bank-rating organization, by rating Marine Bank 4-Stars, Excellent. The financial results below are for Marine Bank’s parent, Marine Bancorp of Florida, Inc.

First Quarter (Q1) 2024 Financial Summary:

million $

1st Quarter 2024

1st Quarter


% change

Net Income




Total Assets




million $

Total Loans




Total Deposits




Total Checking + NOW





Marine Bancorp Tangible Book Value Per Common Share




Actual Q1 Earnings Per Share




Return on Shareholders’ Equity




million $

Non-Performing Assets





Quarter Over Quarter 2024 Financial Summary:

million $

Quarter Ended 3/31/2024


Ended 12/31/2023

Quarterly Net Income



Total Assets



million $

Total Loans



Total Deposits



Total Checking + NOW




Year-to-Date Earnings Per Share



Financial Results

Net income for the quarter ending March 31, 2024, was $876 thousand, down from $1.462 million for the quarter ending March 31, 2023, a 40% year-over-year decrease. The net income for the first quarter of 2024 is slightly off from the net income of the fourth quarter in 2023.

The decrease in earnings is due primarily to the high interest rate environment and the resulting increased deposit competition which is driving up our cost of funds. Also, this economic environment has caused a slowdown in loan growth and a reduction in mortgage origination income.

Asset and Loan Growth

Total Assets grew $13 million, or 2%, from March 2023 to March 2024. During the same period, Total Loans grew $7 million or 2%.

This growth rate slowed in the first quarter of 2024 over the fourth quarter of 2023 as Total Assets increased $12 million and Total Loans decreased $10 million quarter over quarter.

Deposit Growth

Total Deposits as of March 31, 2024, were $594 million compared to $598 million the same time last year, a decrease of $4 million or 1%. 

Our non-interest and interest-bearing checking accounts, the key to customer relationships, declined to $259 million as of March 31, 2024, compared to $299 million on March 31, 2023, a decrease of $40 million or 13%.

We continue to attract new clients to our popular business and personal checking accounts due to our outstanding personal service and technological conveniences. While we actually have more checking accounts now, the average balances have declined as depositors seek other higher rate alternatives.

Continued core deposit growth and controlling our cost of funds remains our primary challenge in 2024. This is where our deposit base of 40%+ in checking accounts benefits the shareholders.

Credit Quality

Credit quality continues to be very strong. As of March 31, 2024, we had one loan with a balance of $120,000 in non-accrual with no loss expected. We had good news this quarter as the $1.5 million loan in non-accrual status paid off in full this February and the Bank received reimbursements for interest and legal fees totaling approximately $150,000.


For the quarter ending March 31, 2024, Return on Shareholders’ Equity (ROE) was 6.54% as compared to 11.89% for the quarter ended March 31, 2023.

For the quarter ending March 31, 2024, the earnings per share was $0.48, versus $0.80 for the same period in 2023, a decrease of $0.32 per share or 40%.

Common Stock Book Value

The common stock tangible book value increased to $19.41 per share on March 31, 2024, from $16.54 in the same period last year, an increase of 17%. This is the result of a decline in the AOCI, or interest rate mark, on our bond portfolio as the bonds paydown and the interest rates declined a bit.

The Economy  

The economy seems to be strengthening, which allows the Federal Reserve to maintain the current interest rate levels longer than previously anticipated.

The ongoing inverted yield curve, where short-term interest rates are higher than long term interest rates, is the biggest challenge to the banking industry. Banks typically borrow short and lend long, thus earning a spread on the funding cost difference and the credit risk. The inverted yield curve eliminates this funding cost advantage. It is also a fairly accurate predictor of a future recession, but so far this does not seem to be the case.

Meanwhile, the Florida economy is strong with positive population growth and low unemployment.  Marine Bank is the only community bank headquartered in the growing Central East Coast Florida market, and we are in a strong position to benefit from the growth in these communities.

Annual Shareholder Meeting

The 2024 Annual Shareholder Meeting will be held on Wednesday, April 24th at 4:30 p.m. at our Vero Beachside Banking Center on Beachland Boulevard. The meeting will be held in person and virtually. You can always get updates on the MarineBank.bank website under About/Investor Relations.

Marine Stock Trading

Your Marine Bancorp of Florida stock is listed on the OTC exchange under the ticker symbol of MBOF. Mike Acampora of DA Davidson is our market maker. If you have an interest in buying or selling Marine stock, please contact Mike at (904) 456-6153 or macampora@dadco.com.

Wealth Management

Through our partnership with Warren Capital Management, Marine Bank customers can manage their financial needs in one convenient location – Marine Bank.  Led by partner and Senior Financial Advisor at Warren Capital Management, Sue Tompkins provides our customers with financial planning, investment management, trust, and estate services. Please contact us at (772) 231-6611 to set up an appointment to review your portfolio and investment goals.

What You Can Do

Please refer your friends, family members, business associates or someone you think will be a good customer of your Bank. Over the last three years, more than 99% of the respondents to our service survey said they would recommend Marine Bank to others, so you can be assured we will exceed their expectations.

Please check our social media pages on Facebook and LinkedIn.  They provide value-added banking and financial related information and news about your Bank.  Your “likes” and “shares” are important so please follow us!

Our Commitment to You

Our commitment is to manage Marine Bank to obtain the best possible results in serving our clients and communities while delivering a fair return to our shareholders. The current interest rate and economic environment makes this very challenging but please rest assured we approach every decision considering what is the best outcome for all our constituencies. We personally thank you for your continued confidence in us.

Sincerely yours,

Bill Penney Signature                                                                                                               

William J. Penney
President, CEO & Chairman

Dan Richey Signature

Daniel R. Richey
Chairman of the Board