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 BancsharesChris BondChief Financial Officer478-272-5202
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
