Morris State Bancshares Announces Solid Earnings in 2025 and Declares Quarterly and Special Dividend
03-Feb-2026 08:00:16 EST
Morris State Bancshares Announces Solid Earnings in 2025 and Declares Quarterly and Special Dividend
GlobeNewswire February 03, 2026
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
