Merchants & Marine Bancorp, Inc. Announces Second Quarter Financial Results and Share Repurchase Program

PASCAGOULA, Miss.--(BUSINESS WIRE)--Merchants & Marine Bancorp, Inc. (OTCQX: MNMB), the parent company of Merchants & Marine Bank, reported net income available to common shareholders through the second quarter of 2026 of $11.37 million, or $8.36 per share, compared with earnings of $875 thousand, or $0.66 per share, in the same period of the prior year. Gross income through the second quarter totaled $53.31 million, an increase of 109.8% from the prior year. Balance sheet footings increased by 42.12% to $1.35 billion during the 12 months ended June 30, 2026. Net loans grew to $677.13 million over the trailing 12 months from $464.29 million, an increase of 42.12%. Total deposits increased 61.41% during the same period, from $602.77 million at June 30, 2025, to $972.95 million. Significant growth in the balance sheet and in earnings is primarily the result of the successful consummation of the previously announced acquisition of Farmers-Merchants Bank, Breaux Bridge, LA, (FM Bank) which closed on April 1, 2026.

Selected financial highlights:

• Net loans increased significantly to $677.13 million at the end of second quarter. Loans added through the FM Bank acquisition comprise $239.50 million of the end of quarter total.
• Total interest income during the second quarter increased to $16.50 million from $11.71 million during the same period in 2025, an increase of 40.90%. Interest income associated with the FM Bank acquisition accounts for 84.04% of the increase.
• Deposit costs totaled 73 basis points at the end of the second quarter 2026, an increase from 43 basis points in the first quarter of 2026. The increase is directly linked to the FM Bank acquisition, with deposit costs throughout existing brands remaining very stable.
• Credit quality remained solid at the end of the second quarter. The ratio of loans past due 30-89 days increased to 1.70% of total loans at the end of the second quarter from 1.39% the end of the first quarter. This is concentrated in two larger loan relationships, and is not indicative of more widespread deterioration in any segment of the portfolio. The ratio of non-accrual loans also increased slightly in the same period, totaling 1.94% of total loans at the end of the second quarter compared to 1.55% at the end of the first quarter.
• Accumulated Other Comprehensive Income (AOCI) mark-to-market losses in the securities portfolio improved slightly to ($5.81 million) at the end of the second quarter of 2026 from ($6.03 million) at the end of the first quarter of 2026. These losses represent just 1.32% and 1.85% the total securities portfolio for these reporting periods, respectively.
• On-balance sheet liquidity levels remain healthy, with cash and cash equivalents totaling $115.80 million at the end of the second quarter of 2026. In addition to these large cash balances, the Company’s investment portfolio remains highly liquid, with a significant portion of the portfolio able to be liquidated with minimal losses.
• In addition to the sizable on-balance sheet liquidity position, the Company has more than $200 million in additional borrowing capacity at the Federal Home Loan Bank of Dallas and the Federal Reserve.

“While there was a good amount of noise in our second quarter earnings due to the acquisition of a relatively large partner in the form of Farmers-Merchants Bank, we are very excited about our core performance in the quarter and what it means for our forward earnings,” remarked Casey Hill, the company’s Chief Financial Officer. He continued: “Fair market accounting necessitated by the merger resulted in material markups on legacy Farmers-Merchants Bank assets, which produced outsized earnings for the quarter. However, core earnings exceeded $1.1 million per month on a pre-tax, pre-provision basis during the quarter, and we still have yet to gain full efficiencies and cost savings associated with a core systems conversions that will take place very early next year,” continued Hill.

“We are very happy with the performance of the combined companies and are very excited about what the future holds for our institution. In addition to strong performance by our new Farmers-Merchants Bank brand, our Merchants & Marine Bank and Mississippi River Bank brands continued the strong performance seen in previous quarters, and our Voyager Lending and Canvas Mortgage brands saw significant performance enhancements that now have both performing near record levels. Furthermore, our CannaFirst Financial brand has embarked on a major expansionary effort that will see their geographic footprint and client base increase significantly,” said Hill.

Chairman and Chief Executive Officer Clayton Legear remarked, “The second quarter represents more than the successful completion of an acquisition – it marks the beginning of the next chapter in our Company’s evolution. The successful integration of Farmers-Merchants Bank reflects years of intentional investment in our people, technology, infrastructure, and operating model, positioning us to grow while remaining true to who we are and the competitive advantages of community banking.”

“We believe the future of our Company lies in combining Community Focus, Local Leadership, and Regional Strength. Our model allows each of our local brands to remain deeply rooted in the communities they serve while benefiting from the scale, expertise, and operational strength of a larger organization.”

Legear continued, “While there is still meaningful work ahead as we complete systems conversion and realize additional efficiencies, we are encouraged by the performance of our combined franchise and believe we are well positioned to continue creating long-term value for our shareholders, clients, communities, and team members.”

Share Repurchase Program

The Board of Directors of Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) has authorized the repurchase of up to three percent (3%) of the Company’s outstanding common stock.

“While we are very excited to announce this program for our shareholders, we will be very disciplined and opportunistic in its implementation,” remarked Casey Hill, the Company’s Chief Financial Officer. He continued: “We are very steadfast in our belief that our ‘Family of Brands’ business model will continue to lead to outsized growth in tangible book value and earnings, and the quarter being reported is very confirmative of that. We see this program not as a ceding of that belief, but simply as an additional tool to support that growth when and if it is needed.”

Repurchases of the Company’s common stock will be made in accordance with applicable laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions or otherwise. The board authorized the repurchase program to remain in effect through June 30, 2027, unless the entire repurchase amount has been acquired before that date. The Company intends to fund the program with a combination of cash on hand and cash generated from operations.

The share repurchase program may be extended, modified, amended, suspended or discontinued at any time at the Company’s discretion and does not commit the Company to repurchase shares of its common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by the Company at its discretion and will depend on a number of factors, including the performance of the Company's stock price, the Company’s ongoing capital planning considerations, general market and other conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness.

Merchants & Marine Bancorp, Inc. (OTCQX: MNMB) is the parent company of Merchants & Marine Bank, a Mississippi chartered community bank serving the Gulf South region. Originally founded in 1899, Merchants & Marine Bank was reborn in 1932 during the middle of the worst economic disaster in the history of the United States: The Great Depression. The Bank offers banking services to customers in Southern Mississippi and Coastal Alabama under its legacy Merchants & Marine Bank brand, in Southeastern Louisiana through its Mississippi River Bank brand, and in the Acadiana Region of Louisiana through its Farmers-Merchants Bank brand. It offers mortgage financing through its Canvas Mortgage brand, medical cannabis banking through its CannaFirst Financial brand, and access to government-guaranteed credit through its Voyager Lending brand. It provides bank operational, risk, and support services through its Community of Resources bank services brand. For more information on Merchants & Marine Bancorp, Inc., visit https://mandmbank.com/investor-relations.

MERCHANTS & MARINE BANCORP, INC.
CONSOLIDATED FINANCIALS (UNAUDITED)
BALANCE SHEET
ASSETS	June 30, 2026			June 30, 2025
TOTAL CASH & DUE FROM		115,796,798.55			53,958,700.86
TOTAL SECURITIES		439,331,326.80			347,609,498.58
TOTAL FEDERAL FUNDS SOLD		32,913.23			198.00
TOTAL LOANS		684,964,655.39			470,969,298.47
Begin Year Reserve for Loss		(5,361,649.01	)		(6,286,501.00	)
Recoveries on Charge Off		(236,415.56	)		(155,784.39	)
Charge Offs Current Year		284,364.45			301,998.80
Allowance-Current Year		(2,517,942.46	)		(538,828.41	)
RESERVE FOR LOSSES ON LOANS		(7,831,642.58	)		(6,679,115.00	)
NET LOANS		677,133,012.81			464,290,183.47
NET FIXED ASSETS		48,092,159.05			34,902,569.33
Other Real Estate		170,000.00			-
Other Assets		68,158,526.65			48,205,969.54
TOTAL OTHER ASSETS		68,328,526.65			48,205,969.54
TOTAL ASSETS	$	1,348,714,737.09		$	948,967,119.78
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Demand Deposits	$	625,133,907.03		$	417,367,501.27
Public Funds		25,564,473.81			22,560,757.91
TOTAL DEMAND DEPOSITS		650,698,380.84			439,928,259.18
Savings		182,666,221.04			111,433,006.40
C D's		131,073,763.04			42,302,687.08
I R A's		6,051,188.00			6,648,355.44
CDARS		2,458,703.48			2,459,349.02
TOTAL TIME & SAVINGS DEPOSITS		322,249,875.56			162,843,397.94
TOTAL DEPOSITS		972,948,256.40			602,771,657.12
SECURITIES SOLD UNDER REPO
& BORRROWINGS		210,924,000.00			209,808,080.79
DIVIDENDS PAYABLE		399,101.40			399,101.40
TOTAL OTHER LIABILITIES		876,847.35			10,171,001.55
Stockholders' Equity	6/30/2026			6/30/2025
Preferred Stock	$	71,519,000.00		$	50,595,000.00
Common Stock		3,325,845.00			3,325,845.00
Earned Surplus		14,500,000.00			14,500,000.00
Undivided Profits		71,485,601.58			69,889,977.76
Current Profits		11,878,638.56			1,380,447.11
Total Unrealized Gain/Loss AFS		(5,810,105.20	)		(9,580,840.95	)
Defined Benefit Pension FASB 158		(3,332,448.00	)		(4,293,150.00	)
TOTAL CAPITAL		163,566,531.94			125,817,278.92
TOTAL LIABILITIES & CAPITAL	$	1,348,714,737.09		$	948,967,119.78

MERCHANTS & MARINE BANCORP, INC.
CONSOLIDATED FINANCIALS (UNAUDITED)
INCOME STATEMENT
ACCOUNT NAME	THROUGH JUNE 30, 2026			THROUGH JUNE 30, 2025
Interest & Fees on Loans	$	19,330,217.94		$	16,692,765.15
Interest on Securities Portfolio		7,606,411.39			4,177,528.96
Interest on Fed Funds & EBA		993,640.80			295,753.65
TOTAL INTEREST INCOME		27,930,270.13			21,166,047.76
Total Service Charges		1,936,343.32			1,642,048.81
Total Miscellaneous Income		23,472,984.73			2,600,778.98
TOTAL NON INT INCOME		25,409,328.05			4,242,827.79
Gains/(Losses) on Secs		-			-
Gains/(Losses) on Sales REO		-			-
Gains/(Losses) on Sale of Loans		(31,863.36	)		-
TOTAL INCOME		53,307,734.82			25,408,875.55
TOTAL INT ON DEPOSITS		2,534,397.56			1,272,653.77
Int on Borrowings/Sec Sold Repo		3,746,555.88			1,493,632.47
TOTAL INT EXPENSE		6,280,953.44			2,766,286.24
PROVISION-LOAN LOSS		2,516,486.12			536,382.41
Salary & Employee Benefits		17,595,900.18			11,366,377.74
Total Premises Expense		4,035,270.57			3,040,511.58
FDIC, Sales and Franchise		334,725.42			210,960.42
Professional Fees		756,482.82			920,578.09
Miscellaneous Office Expense		539,114.35			466,411.78
Dues, Donations and Advertising		3,352,607.94			359,132.28
Checking, ATM/Debit Card Expenses		6,980,103.58			1,156,196.81
ORE Expenses		3,639.28			100.00
Total Miscellaneous Expense		1,675,062.56			3,018,091.09
TOTAL OTHER OPERATING		35,272,906.70			20,538,359.79
FEDERAL & STATE INCOME TAXES		(2,641,250.00	)		187,400.00
TOTAL EXPENSES		41,429,096.26			24,028,428.44
NET INCOME	$	11,878,638.56		$	1,380,447.11
Preferred Stock Dividends	$	505,950.00		$	505,950.00
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	11,372,688.56		$	874,497.11