Merchants & Marine Bancorp, Inc. Announces Second Quarter Financial Results and Share Repurchase Program
Selected financial highlights:
-
Net loans increased significantly to
$677.13 million $239.50 million -
Total interest income during the second quarter increased to
$16.50 million $11.71 million 40.90% . Interest income associated with the FM Bank acquisition accounts for84.04% of the increase. - Deposit costs totaled 73 basis points at the end of the second quarter 2026, an increase from 43 basis points in the first quarter of 2026. The increase is directly linked to the FM Bank acquisition, with deposit costs throughout existing brands remaining very stable.
-
Credit quality remained solid at the end of the second quarter. The ratio of loans past due 30-89 days increased to
1.70% of total loans at the end of the second quarter from1.39% the end of the first quarter. This is concentrated in two larger loan relationships, and is not indicative of more widespread deterioration in any segment of the portfolio. The ratio of non-accrual loans also increased slightly in the same period, totaling1.94% of total loans at the end of the second quarter compared to1.55% at the end of the first quarter. -
Accumulated Other Comprehensive Income (AOCI) mark-to-market losses in the securities portfolio improved slightly to (
$5.81 million $6.03 million 1.32% and1.85% the total securities portfolio for these reporting periods, respectively. -
On-balance sheet liquidity levels remain healthy, with cash and cash equivalents totaling
$115.80 million -
In addition to the sizable on-balance sheet liquidity position, the Company has more than
$200 million Dallas and the Federal Reserve.
“While there was a good amount of noise in our second quarter earnings due to the acquisition of a relatively large partner in the form of Farmers-Merchants Bank, we are very excited about our core performance in the quarter and what it means for our forward earnings,” remarked Casey Hill, the company’s Chief Financial Officer. He continued: “Fair market accounting necessitated by the merger resulted in material markups on legacy Farmers-Merchants Bank assets, which produced outsized earnings for the quarter. However, core earnings exceeded
“We are very happy with the performance of the combined companies and are very excited about what the future holds for our institution. In addition to strong performance by our new Farmers-Merchants Bank brand, our Merchants & Marine Bank and Mississippi River Bank brands continued the strong performance seen in previous quarters, and our Voyager Lending and Canvas Mortgage brands saw significant performance enhancements that now have both performing near record levels. Furthermore, our CannaFirst Financial brand has embarked on a major expansionary effort that will see their geographic footprint and client base increase significantly,” said Hill.
Chairman and Chief Executive Officer Clayton Legear remarked, “The second quarter represents more than the successful completion of an acquisition – it marks the beginning of the next chapter in our Company’s evolution. The successful integration of Farmers-Merchants Bank reflects years of intentional investment in our people, technology, infrastructure, and operating model, positioning us to grow while remaining true to who we are and the competitive advantages of community banking.”
“We believe the future of our Company lies in combining Community Focus, Local Leadership, and Regional Strength. Our model allows each of our local brands to remain deeply rooted in the communities they serve while benefiting from the scale, expertise, and operational strength of a larger organization.”
Legear continued, “While there is still meaningful work ahead as we complete systems conversion and realize additional efficiencies, we are encouraged by the performance of our combined franchise and believe we are well positioned to continue creating long-term value for our shareholders, clients, communities, and team members.”
Share Repurchase Program
The Board of Directors of Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) has authorized the repurchase of up to three percent (
“While we are very excited to announce this program for our shareholders, we will be very disciplined and opportunistic in its implementation,” remarked Casey Hill, the Company’s Chief Financial Officer. He continued: “We are very steadfast in our belief that our ‘Family of Brands’ business model will continue to lead to outsized growth in tangible book value and earnings, and the quarter being reported is very confirmative of that. We see this program not as a ceding of that belief, but simply as an additional tool to support that growth when and if it is needed.”
Repurchases of the Company’s common stock will be made in accordance with applicable laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions or otherwise. The board authorized the repurchase program to remain in effect through June 30, 2027, unless the entire repurchase amount has been acquired before that date. The Company intends to fund the program with a combination of cash on hand and cash generated from operations.
The share repurchase program may be extended, modified, amended, suspended or discontinued at any time at the Company’s discretion and does not commit the Company to repurchase shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company's stock price, the Company’s ongoing capital planning considerations, general market and other conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness.
Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) is the parent company of Merchants & Marine Bank, a
MERCHANTS & MARINE BANCORP, INC. |
|||||||
CONSOLIDATED FINANCIALS (UNAUDITED) |
|||||||
BALANCE SHEET |
|||||||
| ASSETS | June 30, 2026 |
June 30, 2025 |
|||||
| TOTAL CASH & DUE FROM |
|
115,796,798.55 |
|
|
53,958,700.86 |
|
|
| TOTAL SECURITIES |
|
439,331,326.80 |
|
|
347,609,498.58 |
|
|
| TOTAL FEDERAL FUNDS SOLD |
|
32,913.23 |
|
|
198.00 |
|
|
| TOTAL LOANS |
|
684,964,655.39 |
|
|
470,969,298.47 |
|
|
| Begin Year Reserve for Loss |
|
(5,361,649.01 |
) |
|
(6,286,501.00 |
) |
|
| Recoveries on Charge Off |
|
(236,415.56 |
) |
|
(155,784.39 |
) |
|
| Charge Offs Current Year |
|
284,364.45 |
|
|
301,998.80 |
|
|
| Allowance-Current Year |
|
(2,517,942.46 |
) |
|
(538,828.41 |
) |
|
| RESERVE FOR LOSSES ON LOANS |
|
(7,831,642.58 |
) |
|
(6,679,115.00 |
) |
|
| NET LOANS |
|
677,133,012.81 |
|
|
464,290,183.47 |
|
|
| NET FIXED ASSETS |
|
48,092,159.05 |
|
|
34,902,569.33 |
|
|
| Other Real Estate |
|
170,000.00 |
|
|
- |
|
|
| Other Assets |
|
68,158,526.65 |
|
|
48,205,969.54 |
|
|
| TOTAL OTHER ASSETS |
|
68,328,526.65 |
|
|
48,205,969.54 |
|
|
| TOTAL ASSETS | $ |
1,348,714,737.09 |
|
$ |
948,967,119.78 |
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities | |||||||
| Demand Deposits | $ |
625,133,907.03 |
|
$ |
417,367,501.27 |
|
|
| Public Funds |
|
25,564,473.81 |
|
|
22,560,757.91 |
|
|
| TOTAL DEMAND DEPOSITS |
|
650,698,380.84 |
|
|
439,928,259.18 |
|
|
| Savings |
|
182,666,221.04 |
|
|
111,433,006.40 |
|
|
| C D's |
|
131,073,763.04 |
|
|
42,302,687.08 |
|
|
| I R A's |
|
6,051,188.00 |
|
|
6,648,355.44 |
|
|
| CDARS |
|
2,458,703.48 |
|
|
2,459,349.02 |
|
|
| TOTAL TIME & SAVINGS DEPOSITS |
|
322,249,875.56 |
|
|
162,843,397.94 |
|
|
| TOTAL DEPOSITS |
|
972,948,256.40 |
|
|
602,771,657.12 |
|
|
| SECURITIES SOLD UNDER REPO | |||||||
| & BORRROWINGS |
|
210,924,000.00 |
|
|
209,808,080.79 |
|
|
| DIVIDENDS PAYABLE |
|
399,101.40 |
|
|
399,101.40 |
|
|
| TOTAL OTHER LIABILITIES |
|
876,847.35 |
|
|
10,171,001.55 |
|
|
| Stockholders' Equity | 6/30/2026 |
6/30/2025 |
|||||
| Preferred Stock | $ |
71,519,000.00 |
|
$ |
50,595,000.00 |
|
|
| Common Stock |
|
3,325,845.00 |
|
|
3,325,845.00 |
|
|
| Earned Surplus |
|
14,500,000.00 |
|
|
14,500,000.00 |
|
|
| Undivided Profits |
|
71,485,601.58 |
|
|
69,889,977.76 |
|
|
| Current Profits |
|
11,878,638.56 |
|
|
1,380,447.11 |
|
|
| Total Unrealized Gain/Loss AFS |
|
(5,810,105.20 |
) |
|
(9,580,840.95 |
) |
|
| Defined Benefit Pension FASB 158 |
|
(3,332,448.00 |
) |
|
(4,293,150.00 |
) |
|
| TOTAL CAPITAL |
|
163,566,531.94 |
|
|
125,817,278.92 |
|
|
| TOTAL LIABILITIES & CAPITAL | $ |
1,348,714,737.09 |
|
$ |
948,967,119.78 |
|
|
MERCHANTS & MARINE BANCORP, INC. |
|||||||
CONSOLIDATED FINANCIALS (UNAUDITED) |
|||||||
INCOME STATEMENT |
|||||||
| ACCOUNT NAME | THROUGH JUNE 30, 2026 |
THROUGH JUNE 30, 2025 |
|||||
| Interest & Fees on Loans | $ |
19,330,217.94 |
|
$ |
16,692,765.15 |
||
| Interest on Securities Portfolio |
|
7,606,411.39 |
|
|
4,177,528.96 |
||
| Interest on Fed Funds & EBA |
|
993,640.80 |
|
|
295,753.65 |
||
| TOTAL INTEREST INCOME |
|
27,930,270.13 |
|
|
21,166,047.76 |
||
| Total Service Charges |
|
1,936,343.32 |
|
|
1,642,048.81 |
||
| Total Miscellaneous Income |
|
23,472,984.73 |
|
|
2,600,778.98 |
||
| TOTAL NON INT INCOME |
|
25,409,328.05 |
|
|
4,242,827.79 |
||
| Gains/(Losses) on Secs |
|
- |
|
|
- |
||
| Gains/(Losses) on Sales REO |
|
- |
|
|
- |
||
| Gains/(Losses) on Sale of Loans |
|
(31,863.36 |
) |
|
- |
||
| TOTAL INCOME |
|
53,307,734.82 |
|
|
25,408,875.55 |
||
| TOTAL INT ON DEPOSITS |
|
2,534,397.56 |
|
|
1,272,653.77 |
||
| Int on Borrowings/Sec Sold Repo |
|
3,746,555.88 |
|
|
1,493,632.47 |
||
| TOTAL INT EXPENSE |
|
6,280,953.44 |
|
|
2,766,286.24 |
||
| PROVISION-LOAN LOSS |
|
2,516,486.12 |
|
|
536,382.41 |
||
| Salary & Employee Benefits |
|
17,595,900.18 |
|
|
11,366,377.74 |
||
| Total Premises Expense |
|
4,035,270.57 |
|
|
3,040,511.58 |
||
| FDIC, Sales and Franchise |
|
334,725.42 |
|
|
210,960.42 |
||
| Professional Fees |
|
756,482.82 |
|
|
920,578.09 |
||
| Miscellaneous Office Expense |
|
539,114.35 |
|
|
466,411.78 |
||
| Dues, Donations and Advertising |
|
3,352,607.94 |
|
|
359,132.28 |
||
| Checking, ATM/Debit Card Expenses |
|
6,980,103.58 |
|
|
1,156,196.81 |
||
| ORE Expenses |
|
3,639.28 |
|
|
100.00 |
||
| Total Miscellaneous Expense |
|
1,675,062.56 |
|
|
3,018,091.09 |
||
| TOTAL OTHER OPERATING |
|
35,272,906.70 |
|
|
20,538,359.79 |
||
| FEDERAL & STATE INCOME TAXES |
|
(2,641,250.00 |
) |
|
187,400.00 |
||
| TOTAL EXPENSES |
|
41,429,096.26 |
|
|
24,028,428.44 |
||
| NET INCOME | $ |
11,878,638.56 |
|
$ |
1,380,447.11 |
||
| Preferred Stock Dividends | $ |
505,950.00 |
|
$ |
505,950.00 |
||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ |
11,372,688.56 |
|
$ |
874,497.11 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260807147252/en/
Casey Hill
Chief Financial Officer
(228) 934-1307
casey.hill@mandmbank.com
Source: Merchants & Marine Bancorp, Inc.