Core Insights - Morris State Bancshares, Inc. reported a net income of $9.2 million for Q3 2025, a 53.43% increase from $5.9 million in Q2 2025 and a 68.98% increase from $5.4 million in Q3 2024, driven by non-recurring items that boosted non-interest income and reduced non-interest expenses [1][2][11] Financial Performance - The net interest margin (NIM) increased by 5 basis points to 4.48% in Q3 2025, compared to 4.43% in Q2 2025 and 4.10% in Q3 2024, supported by higher net interest income [2][12] - Total interest and dividend income rose to $23.8 million, a 3.23% increase from $23.1 million in Q2 2025 and a 13.44% increase from $21.0 million in Q3 2024 [10] - Non-interest income surged to $4.0 million, a 189.35% increase from $1.4 million in Q2 2025, primarily due to the COVID Employee Retention Credit and other one-time items [11] Asset and Liability Management - Total deposits decreased slightly by $5.5 million, or 0.42%, while loans increased by $18.2 million during the quarter [3][4] - The allowance for credit losses as a percentage of total loans was 1.27% as of September 30, 2025, down from 1.28% in Q2 2025 [4][12] Shareholder Equity and Dividends - Total shareholders' equity increased by 2.27% to $207.5 million as of September 30, 2025, compared to $202.9 million as of June 30, 2025 [5] - The board approved a fourth-quarter dividend of $0.12 per share, payable on or about December 10, 2025 [5] Efficiency and Credit Metrics - The efficiency ratio improved significantly to 36.96% from 50.97% in Q2 2025, reflecting enhanced income from the ERC and PAM accounting adjustments [4][12] - The adversely classified index decreased slightly to 9.39% as of September 30, 2025, from 9.51% in Q2 2025 [4][12]