April 14, 2023  

Dear Marine Shareholders:

I am pleased to announce that Marine Bancorp of Florida continues to achieve asset growth, good earnings, and profitability in 2023. As a result of our continued positive financial performance, Marine Bank is rated 4-Stars, Excellent by Bauer Financial, the premier bank-rating organization. 

First Quarter (Q1) 2023 Financial Summary:

million $

1st Quarter 2023

1st Quarter


% change

Net Income




Total Assets




million $

Total Loans




Total Deposits




Total Checking + Now 




Marine Bancorp Tangible Book Value Per Common Share 




Actual Q1 Earnings Per Share 




Return on Shareholders’ Equity 




million $

Non-Performing Assets 




Quarter Over Quarter 2023 Financial Summary:

million $

Quarter Ended 3/31/2023

Quarter Ended 12/31/2022

Quarterly Net Income



Total Assets



million $

Total Loans



Total Deposits



Total Checking + NOW



Earnings Per Share 



Financial Results

Net income for the quarter ending March 31, 2023, was $1.462 million, up from $1.050 million for the quarter ending March 31, 2022, for a 39% year-over-year increase. The increase in earnings is due largely to the rising rate environment and realizing earnings from the strong new loan production in 2022.

The net income of the first quarter of 2023 is slightly off from the net income of the fourth quarter in 2022 due to slowing loan growth, reduced mortgage origination income and the increasing cost of funds. 

Asset and Loan Growth

Total assets grew $60 million, or 10%, from March 2022 to March 2023. During the same period, total loans grew $94 million or 28%. 

This growth rate slowed in the first quarter of 2023 over the fourth quarter of 2022 as total assets increased $17 million and total loans increased $13 million quarter-over-quarter.

Deposit Growth

Total deposits as of March 31, 2023, were $598 million compared to $552 million the same time last year, an increase of $46 million or 8%.  

Our non-interest and interest-bearing checking accounts, the key to customer relationships, grew to $299 million as of March 31, 2023, compared to $283 million on March 31, 2022, an increase of $16 million or 5%.

Continued core deposit growth and controlling our cost of funds is the primary challenge in 2023. This is where our deposit base of 50%+ in checking accounts benefits the shareholders. 

Credit Quality 

Credit quality continues to be very strong. As of March 31, 2023, we had one loan with a balance of $1.5 million on non-accrual with no loss expected. As mentioned in the December 2022 letter, the Bank had moved another $1.5 million loan into non-accrual status, during March of 2023, the loan was placed back on accrual status and is again performing as agreed. 


For the quarter ending March 31, 2023, Return on Shareholders’ Equity (ROE) was 11.89% as compared to 9.73% for the quarter ended March 31, 2022.

For the quarter ending March 31, 2023, the earnings per share was $0.80, versus $0.58 for the same period in 2022, an increase of $0.22 per share or 38%. 

Common Stock Book Value

The common stock tangible book value decreased to $16.54 per share on March 31, 2023, from $19.92 in the same period last year, a decrease of 17%. As mentioned in the previous shareholder letter, rising interest rates have caused book value reductions in the Bank’s investment portfolio. These unrealized losses, also referred to as AOCI, are reflected as a reduction in equity, resulting in the decreased tangible book value calculation. 

The inclusion of the AOCI losses (or mark-to-market value) on one segment of the balance sheet is a GAAP accounting requirement. This requirement excludes loans, which is our biggest income source, any appreciated real estate and the entire liability and funding side of the balance sheet. If deposits were included, our 50%+ of checking accounts would have a significant increase in value as rates rise, given they are a zero-rate cost funding source. We, of course, follow the accounting rules, but I hope this helps put the decline in value per share into perspective.

The Current Banking Situation and Deposit Flows 

In March 2023, news broke of two bank failures. This caused a stir in the banking industry and relentless media coverage created doubts about the safety of the entire banking system. These rumors are totally unfounded. The American banking system is better capitalized and has more access to liquidity than ever before.   

The two banks that failed were very niche banks specializing in risky tech startups and crypto assets, clearly outside the norm for conservatively run banks like Marine Bank.

Nevertheless, we had clients inquire about the health and safety of their money in Marine Bank. We understand and welcome these discussions. While some deposit money moved during the month, we did open over 200 new accounts and total deposits were flat for the month. This realism refutes media coverage saying community banks had huge deposit outflows.

For customers desiring full FDIC insurance coverage our Bankers are trained on how to title various accounts to increase coverage and we utilize a reciprocal deposit service that helps our clients obtain FDIC insurance into the millions of dollars. If you have any questions, please let us know how we can help you.

It seems this so-called “crisis” is subsiding, but we will continue to monitor the news and be prepared for any customer concerns. In the meantime, I ask all our shareholders to help spread the word that Marine Bank, and all banks, are safe places to keep your money. No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933. 

Annual Shareholder Meeting 

The 2023 Annual Shareholder Meeting will be held on Wednesday, April 26th at 4:30 p.m. The meeting will be held in person and virtually. You can always get updates on the MarineBank.bank website under Investor Relations.

Marine Stock Trading

Your Marine Bancorp of Florida stock is listed on the OTC exchange under the ticker symbol of MBOF. Mike Acampora of DA Davidson is our market maker. If you have an interest in buying or selling Marine stock, please contact Mike at 904-456-6153 or macampora@dadco.com.

Wealth Management 

Through our partnership with Warren Capital Management, Marine Bank customers can handle their financial needs in one convenient location – Marine Bank.  Led by partner and Senior Financial Advisor Sue Tompkins, Warren Capital Management provides our customers with financial planning, investment management, trust, and estate services. Please contact us at (772) 231-6611 to set up an appointment to review your portfolio and investment goals.

What You Can Do

Please refer your friends, family members, business associates or someone you think will be a good customer of your Bank. Over the last three years, more than 99% of the respondents to our service survey said they would recommend Marine Bank to others, so you can be assured we will exceed their expectations. 

Please check our social media pages on Facebook and LinkedIn.  They provide value-added banking and financial related information and news about your Bank.  Your “likes” and “shares” are important so please follow us! 

Bill Penney Signature                                                                                                               

William J. Penney
President, CEO & Chairman