April 30, 2025
Dear Marine Bank Shareholders:
We continue to prepare for our upcoming merger with ELGA Credit Union of Grand Blanc, Michigan.
It is currently in the hands of five government regulatory agencies for review and approval. The indicated price per share to the Marine Bancorp shareholders is $43.75, to be paid in cash to shareholders of record as of the closing date. At this writing we do not have a specific closing date.
We advise our shareholders to locate your stock certificate or brokerage statement (if held in the street name) in preparation to turn it over to our transfer agent in exchange for the cash consideration at closing. More on that later in this letter.
During this transition, we remain focused on providing our clients with an extraordinary banking experience, both before and after the merger. Bauer Financial, a leading bank-rating organization, has acknowledged our efforts by awarding Marine Bank a 5-Star "Superior" rating. Most importantly, our clients continue to acknowledge the outstanding service they receive with frequent 5-Star reviews on Google, follow our social media for information on this recognition.
The following are the financial results for Marine Bank's parent company, Marine Bancorp of Florida, Inc.
2025 Year-to-Date Financial Summary vs. 2024:
|
million $ |
Three Months Ended 3/31/2025 |
Three Months Ended 3/31/2024 |
% change |
|
Net Income |
0.854 |
0.876 |
-3% |
|
Total Assets |
643 |
666 |
-4% |
|
million $ |
|||
|
Total Loans |
440 |
438 |
1% |
|
Total Deposits |
594 |
594 |
0% |
|
Total Checking + NOW |
243 |
259 |
-6% |
|
Marine Bancorp Tangible Book Value Per Common Share |
$21.49 |
$19.41 |
11% |
|
Actual YTD Earnings Per Share |
$0.47 |
$0.48 |
-2% |
|
Return on Shareholders’ Equity |
8.74% |
9.93% |
-12% |
|
million $ |
|||
|
Non-Performing Assets |
0 |
120 |
-100% |
Quarter Over Quarter 2025 Financial Summary:
|
million $ |
Quarter Ended 3/31/2025 |
Quarter Ended 12/31/2024 |
|
Quarterly Net Income |
0.854 |
0.795 |
|
Total Assets |
643 |
646 |
|
million $ |
||
|
Total Loans |
440 |
442 |
|
Total Deposits |
594 |
568 |
|
Total Checking + NOW |
243 |
245 |
|
Quarter-to-Date Earnings Per Share |
$0.47 |
$0.43 |
Financial Results
Net income for the three months ending March 31, 2025, was $854 thousand, down from $876 thousand the year earlier, a 2% decrease.
The continued high-interest rate environment has intensified competition for deposits, thus raising our cost of funds. Additionally, the Bank continues to incur merger-related expenses. Also, the higher interest rates have restrained lending activity; negatively impacting the willingness and capacity of our borrowers to consider new investments and become obligated to new debt.
Asset and Loan Growth
Total assets decreased $23 million, or 4%, from March 2024 to March 2025. During the same period, Total Loans were up slightly.
Total assets decreased by $3 million in the first quarter of 2025 from the fourth quarter of 2024, and Total Loans declined slightly quarter over quarter.
Deposit Growth
Total deposits as of March 31, 2025, were $594 million, the same as March 31, 2024.
Our non-interest and interest-bearing checking accounts declined to $243 million as of March 31, 2025, compared to $259 million as of March 31, 2024, a decrease of $16 million or 6%.
We continue to open new accounts, but the average balance per account is decreasing as clients seek higher investment returns and use cash instead of borrowing for asset purchases due to the higher cost of credit. This is having a negative impact on both loans and deposits.
Maintaining core deposit growth and controlling our cost of funds has been an ongoing challenge. Our core checking account deposit base is still respectable at 41% of total deposits.
Credit Quality
Credit quality continues to be very strong. As of March 31, 2025, we had zero non-performing assets. At this time, we continue to have no non-performing assets.
Profitability
For the three months ending March 31, 2025, the annualized return on shareholders’ equity (ROE) was 8.74% as compared to 9.93% annualized for the three months ending March 31, 2024.
Earnings per share were $0.47 for the three months ending March 31, 2025, compared to $0.48 for the same period in 2024.
Common Stock Book Value
The common stock tangible book value was $21.49 per share on March 31, 2025. The stock has been trading on the OTC marketplace (symbol MBOF) at approximately $39.60, apparently in anticipation of the merger.
More on Our Merger with ELGA Credit Union
We continue to receive positive responses from our clients and employees regarding the announcement. ELGA Credit Union's focus on employees, clients, and the community aligns well with Marine's culture. We have complementary business lines, allowing both parties to benefit; Marine gains access to ELGA Credit Union's consumer banking expertise, while ELGA Credit Union gains access to Marine's business banking expertise, including our advanced treasury management services.
When the merger is complete you will continue banking with the same people, at the same locations, but with the addition of more services and potentially more locations in the future.” This promises to be an exciting year.
Marine Stock Ownership Evidence
This is a good time to ensure that you have your Marine Bancorp stock certificates safely in your possession (a Marine Bank safe deposit box) or that the account at your broker is accessible. Also please ensure the owner’s name on the certificate is valid, i.e. not a deceased person or discontinued business. This will ensure you can easily negotiate the proceeds check after you have surrendered the stock at closing. The lost stock certificate replacement process is arduous and costly.
What You Can Do
We focus on providing the best possible banking experience available. Please continue to refer your friends, family members, business associates and anyone you think will be a good client of your Bank.
Please follow Marine Bank on Facebook and LinkedIn for value-added banking and financial related information including news about your Bank. Your “likes” and “shares” are important so please follow us!
Sincerely yours,
William J. Penney
President, CEO & Chairman
Daniel R. Richey
Chairman of the Board