July 30, 2025
Dear Marine Bank Shareholders:
We continue to prepare for our upcoming merger with ELGA Credit Union of Grand Blanc, Michigan.
The indicated price per share to the Marine Bancorp shareholders is $43.75, to be paid in cash to shareholders of record as of the closing date. Please see the merger update later in this letter.
The following are the financial results for Marine Bank's parent company, Marine Bancorp of Florida, Inc.
2025 Year-to-Date Financial Summar vs. 2024
|
million $ |
Six Months Ended Ended 6/30/2025 |
Six Months |
% change |
|
Net Income |
1.781 |
1.472 |
21% |
|
Total Assets |
630 |
640 |
-2% |
|
million $ |
|
|
|
|
Total Loans |
442 |
436 |
1% |
|
Total Deposits |
569 |
567 |
0% |
|
Total Checking + NOW |
226 |
233 |
-3% |
|
|
|
|
|
|
Marine Bancorp Tangible Book Value Per Common Share |
$21.96 |
$20.03 |
10% |
|
Actual YTD Earnings |
$0.97 |
$0.81 |
20% |
|
Return on Shareholders’ Equity |
9.07% |
8.42% |
8% |
|
million $ |
|
|
|
|
Non-Performing Assets |
0 |
120 |
-100% |
Quarter Over Quarter 2025 Financial Summary
|
million $ |
Quarter Ended 6/30/2025 |
Quarter Ended |
|
Quarterly Net Income |
0.926 |
0.854 |
|
Total Assets |
630 |
643 |
|
million $ |
|
|
|
Total Loans |
442 |
440 |
|
Total Deposits |
569 |
594 |
|
Total Checking + NOW |
226 |
243 |
|
|
|
|
|
Quarter-to-Date Earnings Per Share |
$0.51 |
$0.47 |
Financial Results
Net income for the six months ending June 30, 2025, was $1.781 million, up from $1.472 million the previous year, a 21% increase. Net income for the second quarter of 2025 was $926 thousand, up from $854 thousand for the first quarter of 2025, an 8.4% increase.
Asset and Loan Growth
Total assets decreased $10 million, or 2%, from June 2024 to June 2025. During the same period, total loans were up $6 million or 1%. Total assets decreased by $12 million in the second quarter of 2025 from the first quarter of 2025, and total loans were up slightly quarter over quarter.
Deposit Growth
Total deposits as of June 30, 2025, were $569 million, up $2 million from June 30, 2024. Our non-interest and interest-bearing checking accounts declined to $226 million as of June 30, 2025, compared to $233 million as of June 30, 2024, a decrease of $7 million or 3%. New client deposit account activity continues to be strong, however; depositors continue the trend of carrying lower average balances per account as the market interest rates remain elevated. Maintaining core deposit growth and controlling our cost of funds continues to be a challenge. Our core checking account deposit base is respectable at 39% of total deposits.
Credit quality continues to be very strong. As of June 30, 2025, we had zero non-performing assets. At this time, we continue to have no non-performing assets.
Profitability
For the six months ending June 30, 2025, the annualized return on shareholders’ equity (ROE) was 9.07% as compared to 8.42% annualized for the six months ending June 30, 2024. Earnings per share were $0.97 for the six months ending June 30, 2025, compared to $0.81 for the same period in 2024.
Common Stock Book Value
The common stock tangible book value was $21.96 per share on June 30, 2025. The stock has been trading on the OTC marketplace (symbol MBOF) at approximately $39.15, apparently in anticipation of the merger.
Update On Our Merger with ELGA Credit Union
We recently sent our shareholders the following letter advising them of the status of our merger:
We had hoped, and initially expected, the merger would have closed in June. However, ELGA and its advisors, with Marine’s input, continue to diligently work with the regulatory agencies that must approve the merger to move the applications to approval. To address this delay, Marine and ELGA have agreed that at the closing of the merger, Marine will pay its shareholders a cash dividend in addition to the $43.75 per share price that ELGA will pay for your stock. The amount of the dividend will be 50% of Marine’s consolidated net income from June 1, 2025, to the last day of the month prior to closing. As a point of reference, our consolidated net income for June was approximately $309,480.
In addition, Marine and ELGA have agreed to extend the date on which either party may terminate the merger agreement. If Marine and ELGA have not seen material progress with the regulatory applications by January 31, 2026, either of us may terminate the agreement. Further, if the merger does not close by April 30, 2026, either party will have the right to terminate the agreement.
While the extended time for regulatory approval and closing is disappointing, we are pleased with the agreement to provide our shareholders with a portion of our profits moving forward.
What We Are Doing
We continue to be focused on providing our clients with an extraordinary banking experience, both before and after the merger. Bauer Financial, a leading bank-rating organization, has acknowledged our efforts by awarding Marine Bank a 5-Star "Superior" rating. Most importantly, our clients continue to acknowledge the outstanding service they receive with frequent 5-Star reviews on Google. Please follow our social media for information on this recognition.
What You Can Do
We continue to advise our shareholders to locate your stock certificate or brokerage statement (if held in street name) in preparation to turn it over to our transfer agent in exchange for the cash consideration at closing. While we focus on providing the best possible banking experience available, please continue to refer your friends, family members, business associates and anyone you think will be a good client of your Bank.
Please follow Marine Bank on Facebook and LinkedIn for worthwhile banking and financial related information including news about your Bank. Your “likes” and “shares” are important so please follow us!
Sincerely yours,
William J. Penney
Chief Executive Officer and President
Daniel R. Richey
Chairman of the Board