April 28, 2022                     

Dear Marine Shareholders:

I am pleased to announce that Marine Bancorp of Florida continues to achieve asset growth, good earnings, and profitability in 2022. 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) 2022 Financial Summary:

million $

1st Quarter

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




thousand $

Non-performing assets




Financial Results

Net income for the first quarter of 2022 was $1.050 million, down from $1.444 million in the first quarter of 2021 for a -27% year-over-year decline. The earnings decline was due to $508,000 of SBA Paycheck Protection Program forgiveness income recognized in Q1 2021. PPP loan forgiveness and the corresponding fee income was completed in 2021.

Your Bank experienced year-over-year asset growth with $593 million in total assets as of March 31, 2022, compared to $472 million as of March 31, 2021, an increase of $121 million or a 26% growth rate.

Loans outstanding as of March 31, 2022 were $343 million as compared to $331 million on March 31, 2021, an increase of $12 million or 4%.  We are seeing loan growth resume as the PPP loan forgiveness has run its course and we continue strong new loan production along with declining regular loan payoffs due to rising interest rates.

Total deposits as of March 31, 2022 were $552 million compared to $437 million the same time last year, an increase of $115 million or 26%. 

Our non-interest and interest-bearing checking accounts, the key to customer relationships, grew to $286 million as of March 31, 2022 compared to $202 million as of March 31, 2021, an increase of $84 million or 41%.

For Q1 2022, Return on Shareholders’ Equity (ROE) was 9.73% as compared to 21.52% for Q1 2021. By measuring the Bank’s income that is earned on our shareholders’ equity, ROE signals how effectively we are using your investment to generate increased profits. The decrease in ROE was expected as earnings declined due to the elimination of the non-recurring PPP loan income and the increase in equity resulting from the new $11.6 million in capital that was raised in 2021.

For Q1 2022, the actual earnings per share was $0.58, versus $1.04 for the same period in 2021, a decrease of $0.47 per share or 45%. This decline was due to the reduction in earnings as noted above and the increased number of new shares outstanding from the capital raise.

As a result of the financial results reported above, the common stock tangible book value of your company increased to $19.92 per share as of March 31, 2022, from $19.67 in Q1 2021, an increase of $0.25 per share, or 1%.

Credit Quality

Credit quality continues to be very strong. We have one loan with a balance of $1.5 million in non-accrual with no loss expected. There are no other non-performing loans or assets.

SBA Paycheck Protection Program

All the $94 million in SBA Paycheck Protection Program loans at Marine have been forgiven. In retrospect, this was an excellent government program to keep capital flowing to Main Street businesses and their employees.

Perhaps even more important was the psychological boost it gave to our business owners during the very scary and difficult times early in the pandemic.

Your Team at Marine Bank worked very hard to successfully execute on this program and it was financially rewarding to the Bank, our customers, our community reputation, and our shareholders.

New Team Members and a New Location

Please join me in welcoming Michael Lay to Team Marine. Michael is a residential loan officer serving the south Martin County and north Palm Beach County communities.

Also please join me in welcoming Melissa Montanez. Melissa was recently hired to lead our charge in opening a new banking office in Ft. Pierce. We have a site leased and expect to be open late in the second quarter. Ft. Pierce does not currently have a local bank and we are excited to begin serving this community.

Interest Rates and the Economy

We successfully overcame the obstacles presented during the last two years of the pandemic. Now we face different challenges. The national, state, and local economies are performing well, but the economic risks seem to increase daily. Interest rates are increasing which will benefit our net interest margin, but I am concerned that it will slow our loan volume. We are already seeing a decrease in secondary market saleable residential home loans. However, our adjustable-rate portfolio and construction loan volumes are increasing. Flexibility and maintaining our pristine credit quality is the recipe to navigate these uncertain times.

Rising interest rates also create a book value reduction in the bond portfolio (and the Bank’s tangible book value) but allow us to reinvest cash at a higher rate. In the long run, this will work out to our benefit, but we expect it will be a bumpy ride.

Wealth Management

When was the last time you updated your investment goals or reviewed your portfolio and its performance? I encourage you to meet with Sue Tompkins of Warren Capital Management, Marine Bank’s strategic partner for wealth management. Sue is a highly skilled investment advisor and we are fortunate to have her and Warren Capital Management available to assist our customers. Schedule your appointment by calling (772) 231-8222.  

Marine Stock Trading

Your Marine Bancorp of Florida stock is listed on the OTC exchange under the ticker symbol of MBOF. If you have an interest in buying or selling Marine stock, you are encouraged to contact our market maker, Mike Acampora of DA Davidson. Mike is an industry specialist in community bank stocks. Mike can be reached at 904-456-6153 or macampora@dadco.com.

Your Role in Our Success

Marine Bank has so much good news and information to share. When you follow our Facebook and LinkedIn pages, and “like” and “share” our content, you are helping us reach more potential customers with our value-added banking and financial related information and news about your Bank. 

I also want you to feel comfortable referring your friends, family members, and business associates to Marine Bank.  Our goal is more than to create satisfied customers, we create avid fans.  In fact, over the last three years, more than 99% of the respondents to our service survey said they would recommend Marine Bank to others.

Sincerely yours,

Bill Penney Signature                                                                                                               

William J. Penney
President, CEO & Chairman