November 2, 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 Nine Months 2022 Financial Summary:

million $

Nine Month’s Ended


Nine Month’s Ended


% Change

Net Income




Total Assets




million $

Total Loans




Total Deposits




Total Checking + Now





Marine Bancorp Tangible Book Value Per Common Share




Marine Bancorp

Book Value w/o AOCI

Per Common Share




Actual Q3 Earnings Per Share




Return on Shareholders’ Equity




thousand $

Non-Performing Assets




Financial Results

Net income for the first nine months of 2022 was $3.906 million, down from $3.967 million in the first nine months of 2021 for a -2% year-over-year decline. The small earnings decline was due, in part, to $1.528 million of SBA Paycheck Protection Program forgiveness income that was recognized in the first nine months of 2021. This has been offset by a $1.809 million increase in interest income in 2022, as a result of the growth in the Bank’s loan and investment portfolios, in addition to the current rising rate environment. PPP loan forgiveness and the corresponding fee income was completed in 2021.  

Your Bank has experienced year-over-year asset growth with $623 million in total assets as of September 30, 2022, compared to $516 million as of September 30, 2021, an increase of $107 million or a 21% growth rate.

Loans outstanding as of September 30, 2022 were $401 million as compared to $320 million on September 30, 2021, an increase of $81 million or 25%.  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 September 30, 2022 were $551 million compared to $479 million the same time last year, an increase of $72 million or 15%. 

Our non-interest and interest-bearing checking accounts, the key to customer relationships, grew to $298 million as of September 30, 2022 compared to $233 million as of September 30, 2021, an increase of $65 million or 28%.

For the first nine months of 2022, Return on Shareholders’ Equity (ROE) was 11.29% as compared to 17.91% for the first nine months of 2021. By measuring the Bank’s income 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 $11.6 million in new capital that was raised in 2021.

For the first nine months of 2022 the actual earnings per share was $2.15, versus $2.87 for the same period in 2021, a decrease of $0.72 per share or 25%. This decline was due to the reduction in earnings as noted above and the increased number of new shares outstanding from the 2021 capital raise.

The common stock tangible book value decreased to $13.10 per share as of September 30, 2022, from $21.62 in Q3 2021, a decrease of $8.52 per share, or 39%. 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.

The common stock book value excluding the unrealized losses in the investment portfolio, also referred to as AOCI, increased to $23.53 per share as of September 30, 2022, from $21.52 in Q3 2021, an increase of $4.01 per share, or 19%.

The inclusion of the AOCI losses (or mark to market value) on one segment of the balance sheet is a GAAP accounting requirement. This requirement excludes loans, which is our biggest income source, and the entire liability and funding side of the balance sheet. If deposits were included, our 50%+ of checking accounts would have a significant increase in value as rates rise, given they are a zero-rate, low-cost funding source.

We, of course, follow the accounting rules but I hope this puts the decline in value per share into perspective.

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.

Our New Ft. Pierce Banking Center

Our new location in Ft. Pierce is off to a good start. The Community has been very welcoming to our local, people-based banking. Please visit Melissa Montanez and her Team at 600 N. US1, Suite 604B in Ft. Pierce.

While you are out, please visit all our Banking Centers, now stretching from Melbourne, south to Sebastian, Vero Beach now Ft. Pierce. I guarantee you will find the most knowledgeable and friendly bankers you have ever met!

Interest Rates and the Economy

We have successfully managed through almost three years of a tumultuous economy with the pandemic, the government forced shut-down and massive government stimulus. Now we face inflation and slowing economic growth as a result. The national economic news is not encouraging, except the strong unemployment numbers. The local and state economies seem to be doing relatively well. My discussions with local business people center on they can’t get enough help or supplies, but demand for their products and services remain good. Of course, inflation is a significant issue for all. The considerable increase in the cost of workforce housing is problematic for our employees and all workers in our communities. We will continue to operate the Bank to recognize and manage these risks, while still capitalizing on our local opportunities.

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 Market 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.

In closing, I urge you all to keep our friends in Southwest Florida in your thoughts and prayers as they rebuild from Hurricane Ian. Stories abound of the disaster toll but also the heroism of the locals including our fellow community bankers there. Our best to you all.

Bill Penney Signature                                                                                                               

William J. Penney
President, CEO & Chairman