Morris State Bancshares Announces Solid Earnings in 2025 and Declares Quarterly and Special Dividend

Rhea-AI Summary

Morris State Bancshares (OTCQX: MBLU) reported full-year 2025 net income of $26.5 million and diluted EPS of $2.49. The board declared a quarterly cash dividend of $0.13 payable about March 10, 2026, and a one-time special dividend of $0.16 payable about March 20, 2026.

Key operating metrics: net interest margin rose to 4.48% from 4.06% in 2024, total assets were $1.55 billion, and return on average equity was 14.42%. Regulators have approved the planned merger with Vallant Financial; a shareholder vote is planned for March 2026.

Positive

• Net income of $26.5M in 2025
• Diluted EPS of $2.49 for 2025
• Net interest margin improved to 4.48% from 4.06% in 2024
• Total shareholders' equity rose 8.57% to $212.4M
• Bank-level efficiency ratio improved to 47.94%

Negative

• Quarterly net income declined 30.4% QoQ to $6.4M (Q4 2025 vs Q3 2025)
• Quarterly diluted EPS fell to $0.60 from $0.86 QoQ
• Special dividend of $0.16 creates a one-time cash outflow for shareholders

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 31,				December 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
(Dollars in thousand, except per share data)		December 31,			December 31,				December 31,			September 30,			June 30,			March 31,			December 31,
			2025			2024				2025			2025			2025			2025			2024
		(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	%

FAQ

What dividend did Morris State Bancshares (MBLU) declare for March 2026?

The board declared a quarterly cash dividend of $0.13 and a one-time special dividend of $0.16. According to the company, the quarterly dividend is payable about March 10, 2026, and the special dividend about March 20, 2026.

How much net income did MBLU report for full-year 2025?

Morris State reported full-year net income of $26.5 million for 2025. According to the company, that compares with $21.8 million in 2024 and reflects NIM expansion and loan growth.

What were MBLU's key profitability metrics for 2025?

The company posted diluted EPS of $2.49, bank ROA of 1.86%, and ROE of 14.42% for 2025. According to the company, these metrics reflect margin improvement and efficient operations.

Has Morris State Bancshares received merger approval for the Vallant deal?

Yes; Morris State has received regulatory approvals and expects a shareholder vote in March 2026. According to the company, a fairness hearing with Georgia's Secretary of State is planned before the final vote.

Did MBLU's net interest margin change in 2025 and why does it matter?

Net interest margin rose to 4.48% in 2025 from 4.06% in 2024, boosting net interest income. According to the company, the increase reflects pricing, higher earning-asset yields, and lower funding costs.