October 17, 2025
Dear Marine Bank Shareholders:
While we await final regulatory approval for our previously announced merger with ELGA Credit Union of Grand Blanc, Michigan, we continue to run the Bank for the best possible results for our stakeholders. Please see the merger update later in this letter.
Following are the third quarter financial results for Marine Bank's parent company, Marine Bancorp of Florida, Inc.
2025 Year-to-Date Financial Summary vs. 2024:
|
million $ |
Nine Months Ended 9/30/2025 |
Nine Months Ended 9/30/2024 |
% change |
|
Net Income |
2.761 |
2.037 |
36% |
|
Total Assets |
635 |
653 |
-3% |
|
million $ |
|||
|
Total Loans |
449 |
442 |
2% |
|
Total Deposits |
573 |
566 |
1% |
|
Total Checking + NOW |
238 |
239 |
0% |
|
Marine Bancorp Tangible Book Value Per Common Share |
24.06 |
22.62 |
6% |
|
Actual YTD Earnings Per Share |
$1.51 |
$1.11 |
36% |
|
Return on Shareholders’ Equity |
9.20% |
7.47% |
23% |
|
million $ |
|||
|
Non-Performing Assets |
0 |
0 |
0% |
Quarter Over Quarter 2025 Financial Summary:
|
million $ |
Quarter Ended 9/30/2025 |
Quarter Ended 6/30/2025 |
|
Quarterly Net Income |
0.980 |
0.926 |
|
Total Assets |
635 |
630 |
|
million $ |
||
|
Total Loans |
449 |
442 |
|
Total Deposits |
573 |
569 |
|
Total Checking + NOW |
238 |
226 |
|
Quarter-to-Date Earnings Per Share |
$0.54 |
$0.51 |
Financial Results
Net income for the nine months ending September 30, 2025, was $2.761 million, up from $2.037 million the previous year, a 36% increase. Net income for the third quarter of 2025 was $980 thousand, up from $926 thousand for the second quarter of 2025, a 5.8% increase.
Asset and Loan Growth
Total assets decreased $18 million, or 3%, from September 2024 to September 2025. During the same period, total loans were up $7 million or 2%. Total assets increased by $5 million in the third quarter of 2025 from the second quarter of 2025, and total loans were up slightly quarter over quarter.
Deposit Growth
Total deposits as of September 30, 2025, were $573 million, up $7 million from September 30, 2024. Our non-interest and interest-bearing checking accounts were essentially flat at $238 million as of September 30, 2025, compared to $239 million as of September 30, 2024. New client deposit account activity continues to be steady; however, as we have previously stated, depositors continue the trend of carrying lower average balances per account as the market interest rates remain elevated. Maintaining stable core deposits and controlling our cost of funds is one of our primary goals. Our core checking account deposit base is respectable at 42% of total deposits.
Credit Quality
Credit quality continues to be very strong. As of September 30, 2025, we had zero non-performing assets. At this time, we continue to have no non-performing assets.
Profitability
For the nine months ending September 30, 2025, the annualized return on shareholders’ equity (ROE) was 9.20% as compared to 7.47% annualized for the nine months ending September 30, 2024. Earnings per share were $1.51 for the nine months ending September 30, 2025, compared to $1.11 for the same period in 2024.
Common Stock Book Value
The common stock tangible book value was $24.06 per share on September 30, 2025, as compared to $22.62 per share last year at that time. The Company’s common stock is traded on the OTC marketplace (symbol MBOF). For the week ending October 3, 2025, the average closing price of the Company’s common stock was approximately $38.90.
Update On Our Merger with ELGA Credit Union
As a reminder, 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. In addition, Marine and ELGA have agreed that at the closing of the merger, Marine will pay its shareholders a cash dividend in addition to the $43.75 per share price that ELGA will pay for your stock. The amount of the dividend will be 50% of Marine’s consolidated net income from June 1, 2025, to the last day of the month prior to closing. As a point of reference, our consolidated net income from June 1, 2025, through September 30, 2025, was approximately $1,289,702, for a dividend per share of $0.35. This dividend amount continues to increase with each month’s positive earnings.
The final hurdle in the merger process is regulatory approval from the five regulatory agencies reviewing the transaction. This has taken longer than expected and Marine and ELGA have agreed to extend the date on which either party may terminate the merger agreement. If Marine and ELGA have not seen material progress with the regulatory applications by January 31, 2026, either of us may terminate the agreement. Further, if the merger does not close by April 30, 2026, either party will have the right to terminate the agreement.
Both parties are working diligently to achieve final regulatory approval, and we anticipate receiving approval before the dates noted above.
What We Are Doing
We are very proud of our Bankers as, despite the potential merger distraction, they continue to provide our clients with extraordinary banking experience. 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. Please follow our social media for information on this recognition.
What You Can Do
We continue to advise our shareholders to locate your stock certificate or brokerage statement (if held in street name) in preparation to turn it over to our transfer agent in exchange for the cash consideration at closing. Our promise is to continue providing the best possible banking experience available. We ask you, our owners, 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 worthwhile 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
Chief Executive Officer and President
Daniel R. Richey
Chairman of the Board