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 Six Months of 2022 Financial Summary:


million $

Six Month’s Ended 6/30/2022

Six Month’s Ended 6/30/2021

% change

Net Income




Total Assets




million $

Total Loans




Total Deposits




Total Checking + Now





Marine Bancorp Tangible Book Value Per Common Share




Actual Q2 Earnings Per Share




Return on Shareholders’ Equity




thousand $

Non-performing assets




Financial Results

Net income for the first six months of 2022 was $2.458 million, down from $2.567 million in the first six months of 2021 for a -4% year-over-year decline. The earnings decline was due to $961,000 of SBA Paycheck Protection Program forgiveness income was recognized in Q2 2021. PPP loan forgiveness and the corresponding fee income was completed in 2021.

Your Bank has experienced year-over-year asset growth with $591 million in total assets as of June 30, 2022, compared to $488 million as of June 30, 2021, an increase of $103 million or a 21% growth rate.

Loans outstanding as of June 30, 2022 were $371 million as compared to $331 million on June 30, 2021, an increase of $40 million or 12%.  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 June 30, 2022 were $559 million compared to $453 million the same time last year, an increase of $106 million or 23%. 

Our non-interest and interest-bearing checking accounts, the key to customer relationships, grew to $292 million as of June 30, 2022 compared to $212 million as of June 30, 2021, an increase of $80 million or 38%.

For the first six months of 2022, Return on Shareholders’ Equity (ROE) was 11.02% as compared to 18.28% for the first six months of 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 the first six months of 2022 the actual earnings per share was $1.35, versus $1.86 for the same period in 2021, a decrease of $0.51 per share or 27%. This decline was due to the reduction in earnings as noted above and the increased number of new shares outstanding from the capital raise.

The common stock tangible book value of your company decreased to $15.40 per share as of June 30, 2022, from $20.68 in Q2 2021, a decrease of $5.28 per share, or 26%. As mentioned in last quarter’s Shareholder letter, rising interest rates have caused book value reductions in the bank’s investment portfolio. These unrealized losses are reflected as a reduction in equity, resulting in the decreased tangible book value calculations.

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 community bank and we are excited to begin serving this community.

Interest Rates and the Economy

We have very successfully managed through the last two very challenging 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 salable 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 a bumpy ride along the way.

Wealth Management

We are pleased to have Warren Capital Management as our strategic partner for wealth management. Warren Capital Management is led by Sue Tompkins, a local and highly skilled investment advisor.  If you have not already done so, please contact us at (772) 231-8222 to set up an appointment to review your portfolio and investment goals.

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

What You Can Do

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

Remember to 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.


Sincerely yours,


Bill Penney Signature                                                                                                               

William J. Penney
President, CEO & Chairman