BROOKFIELD, Wis, July 11, 2025 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the "Company" or "CIB Marine") (OTCQX: CIBH), the holding company of CIBM Bank (the "Bank"), announced its unaudited results of operations and financial condition for the quarter and six months ended June 30, 2025. During the quarter, net interest income and mortgage operations both improved operating results on a quarterly and year-to-date basis as further outlined below.
Net income for the quarter was $0.7 million, or $0.50 basic and $0.48 diluted earnings per share, compared to $0.5 million, or $0.34 basic and $0.25 diluted earnings per share, for the same period of 2024 excluding the effects of the sale-leaseback transaction gain on sale reported in the second quarter of 2024. Net income for the six months ended June 30, 2025, was $1.0 million, or $0.74 basic and $0.71 diluted earnings per share, compared to $0.6 million, or $0.80 basic and $0.35 diluted earnings per share, for the same period of 2024 also excluding the effects of the sale-leaseback transaction gain on sale.
Financial highlights for the quarter and six months ended June 30 include:
-- Net interest margin increased to 2.69% from 2.62% in the first quarter of
2025 and 2.38% in the second quarter of 2024. The cost of funds declined
51 basis points compared to the same quarterly period last year, due to
the repricing of interest-bearing liabilities in a lower-cost interest
rate environment, while yields on earning assets declined by 16 basis
points. The net interest margin improved to 2.65% for the six months
ended June 30, 2025, compared to 2.34% for the same period of 2024 as the
cost of funds declined 45 basis points compared to a 10 basis point
decline in yields on earning assets. Net interest income rose $0.3
million for the quarter compared to the same period of 2024, and $0.6
million for the six months ended June 30th compared to the same period of
2024.
-- Although quarter-end loan balances declined $19 million from March 31,
2025, and $32 million from December 31, 2024, the allowance for credit
losses to loans rose from 1.26% at December 31, 2024, and 1.29% at March
31, 2025, to 1.32% at June 30, 2025, primarily due to continued
deterioration in the Federal Reserve's economic forecasts used in the
Company's credit loss analysis. Non-performing assets to total assets
were 0.68% and non-accrual loans to loans were 0.85% on June 30, 2025,
compared to 0.67% and 0.84% on March 31, 2025, and 0.68% and 0.81% on
December 31, 2024, respectively. Business plans continue to include
higher loan balances by year-end 2025, primarily driven by anticipated
growth in the commercial segments. Non-performing loans, other real
estate loans, modified loans to borrowers experiencing financial
difficulty and loans 90 days or more past due but still accruing to total
assets increased to 1.85% at June 30, 2025, compared to 0.97% at March
31, 2025, and 0.98% at December 31, 2024. The increase was primarily due
to two commercial loans--one in the transportation industry and the other
in manufacturing--that were both 90 days or more past due but still
accruing interest and in the collection process. Since June 30, 2025, one
of the loans has been brought current and the adjusted ratio would be
1.43%.
-- The Banking Division reported net income of $1.6 million for the six
months ended June 30, 2025, a $0.4 million improvement over the same
period in 2024 excluding the sale-leaseback transaction gain on sale,
driven primarily by higher net interest margins and continued cost
controls. The Mortgage Division's $0.1 million net loss for the six
months ended June 30, 2025, is an improvement of $0.1 million from the
prior year. This modest progress reflects the decline in lending staff
noted in the first-quarter earnings release. The net remaining Other
Division, comprised primarily of parent company operations, had a net
loss of $0.5 million with roughly one-third of that amount attributed to
subordinated debt interest expense. Although the parent company has a $2
million line of credit, no draws have been made on that potential funding
source to date.
Mr. J. Brian Chaffin, CIB Marine's President and CEO, commented, "Net interest margins continue to improve as we actively manage our cost of funds in a lower rate environment compared to last year. This contributed to stronger operating results from our Banking Division. While loan balances declined again, our commercial group continues to build the loan pipeline, and we anticipate higher balances by year-end. The Mortgage Division showed modest improvement despite ongoing challenges in the residential mortgage market. Although mortgage production is expected to be lower than last year due to lender staff reductions, our current team is well-positioned to maintain consistent performance in a competitive market. Expense controls continue to support improved operating results."
He added, "In February, we launched our 2025 common stock repurchase program, authorizing up to $1 million in share buybacks. During the second quarter of 2025, we repurchased 8,083 shares through open market transactions for a total of $262,000, at an average price of $32.37 per share. Year to date, we have repurchased 15,512 shares for a total of $497,000, at an average price of $32.02 per share. Barring unforeseen factors, we intend to complete our 2025 common stock repurchase program during the second half of the year, using available resources including $0.7 million in cash on hand at the parent company, our $2 million line of credit, and other potential sources such as a possible capital distribution from CIBM Bank."
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates nine banking offices in Illinois, Wisconsin, and Indiana, and has mortgage loan officers and/or offices in six states. More information on the Company is available at www.cibmarine.com, including recent shareholder letters, links to regulatory financial reports, and audited financial statements.
FORWARD-LOOKING STATEMENTS
CIB Marine has made statements in this release that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. CIB Marine intends these forward-looking statements to be subject to the safe harbor created thereby and is including this statement to avail itself of the safe harbor. Forward-looking statements are identified generally by statements containing words and phrases such as "may," "project," "are confident," "should be," "intend," "predict," "believe," "plan," "expect, " "estimate," "anticipate" and similar expressions. These forward-looking statements reflect CIB Marine's current views with respect to future events and financial performance that are subject to many uncertainties and factors relating to CIB Marine's operations and the business environment, which could change at any time.
There are inherent difficulties in predicting factors that may affect the accuracy of forward-looking statements.
Stockholders should note that many factors, some of which are discussed elsewhere in this Earnings Release and in the documents that are incorporated by reference, could affect the future financial results of CIB Marine and could cause those results to differ materially from those expressed in forward-looking statements contained or incorporated by reference in this document. These factors, many of which are beyond CIB Marine's control, include but are not limited to:
-- operating, legal, execution, credit, market, security (including cyber),
and regulatory risks;
-- economic, political, and competitive forces affecting CIB Marine's
banking business;
-- the impact on net interest income and securities values from changes in
monetary policy and general economic and political conditions; and
-- the risk that CIB Marine's analyses of these risks and forces could be
incorrect and/or that the strategies developed to address them could be
unsuccessful.
These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. CIB Marine undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to significant risks and uncertainties and CIB Marine's actual results may differ materially from the results discussed in forward-looking statements.
FOR INFORMATION CONTACT:
J. Brian Chaffin, President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com
CIB MARINE BANCSHARES, INC.
Selected Unaudited Consolidated Financial Data
At or for the
--------------------------------------------------------------------------------------------------------------
Quarters Ended 6 Months Ended
------------------------------------------------------------------------------ ------------------------------
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2025 2025 2024 2024 2024 2025 2024
(Dollars in thousands, except share and per share
data)
Selected Statement of
Operations Data:
Interest and dividend
income $ 11,017 $ 10,941 $ 11,408 $ 12,283 $ 12,052 $ 21,958 $ 23,853
Interest expense 5,541 5,652 6,259 6,707 6,897 11,193 13,737
--------- --------- --------- --------- --------- --------- ---------
Net interest income 5,476 5,289 5,149 5,576 5,155 10,765 10,116
Provision for (reversal
of) credit losses 9 42 (332) (113) 10 51 (18)
--------- --------- --------- --------- --------- --------- ---------
Net interest income
after provision for
(reversal of) credit
losses 5,467 5,247 5,481 5,689 5,145 10,714 10,134
Noninterest income (1) 1,765 1,552 1,724 2,897 6,904 3,317 8,531
Noninterest expense 6,311 6,373 6,678 7,163 6,904 12,684 13,325
--------- --------- --------- --------- --------- --------- ---------
Income before income
taxes 921 426 527 1,423 5,145 1,347 5,340
Income tax expense 253 105 123 347 1,361 358 1,378
--------- --------- --------- --------- --------- --------- ---------
Net income (loss) $ 668 $ 321 $ 404 $ 1,076 $ 3,784 $ 989 $ 3,962
========= ========= ========= ========= ========= ========= =========
Common Share Data:
Basic net income (loss)
per share (2) $ 0.50 $ 0.24 $ 0.60 $ 0.79 $ 2.79 $ 0.74 $ 2.94
Diluted net income
(loss) per share (2) 0.48 0.23 0.54 0.59 2.06 0.71 2.17
Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tangible book value per
share (3) 59.55 58.46 57.37 57.80 55.36 59.55 55.36
Book value per share
(3) 59.59 58.51 57.42 56.06 53.61 59.59 53.61
Weighted average shares
outstanding - basic 1,349,613 1,348,995 1,357,737 1,357,259 1,356,255 1,344,573 1,348,440
Weighted average shares
outstanding - diluted 1,397,365 1,396,274 1,507,344 1,833,586 1,833,881 1,392,090 1,826,911
Financial Condition Data:
Total assets $ 838,441 $ 852,018 $ 866,474 $ 888,283 $ 901,634 $ 838,441 $ 901,634
Loans 665,393 684,787 697,093 707,310 719,129 665,393 719,129
Allowance for credit
losses on loans (8,793) (8,818) (8,790) (8,973) (9,083) (8,793) (9,083)
Investment securities 126,795 124,109 120,339 120,349 123,814 126,795 123,814
Deposits 684,480 692,028 692,378 747,168 768,984 684,480 768,984
Borrowings 59,292 67,214 81,735 33,583 28,222 59,292 28,222
Stockholders' equity 80,492 79,309 77,961 92,358 89,008 80,492 89,008
Financial Ratios and
Other Data:
Performance Ratios:
Net interest margin
(4) 2.69% 2.62% 2.44% 2.55% 2.38% 2.65% 2.34%
Net interest spread
(5) 2.06% 1.99% 1.74% 1.80% 1.71% 2.03% 1.67%
Noninterest income to
average assets (6) 0.83% 0.73% 0.82% 1.25% 3.09% 0.78% 1.91%
Noninterest expense
to average assets 3.00% 3.05% 3.06% 3.17% 3.09% 3.02% 2.98%
Efficiency ratio (7) 87.24% 93.65% 96.17% 85.32% 57.19% 90.35% 71.34%
Earnings (loss) on
average assets (8) 0.32% 0.15% 0.19% 0.48% 1.69% 0.24% 0.88%
Earnings (loss) on
average equity (9) 3.36% 1.65% 1.94% 4.71% 17.92% 2.52% 9.38%
Asset Quality Ratios:
Nonaccrual loans to
loans (10) 0.85% 0.84% 0.81% 0.44% 0.47% 0.85% 0.47%
Nonperformance assets
to total assets (11) 0.68% 0.67% 0.68% 0.38% 0.41% 0.68% 0.41%
Nonaccrual loans,
modified loans to
borrowers experiencing
financial difficulty,
loans 90 days or more
past due and still
accruing to total
loans (12) 2.33% 1.21% 1.19% 1.62% 1.38% 2.33% 1.38%
Nonaccrual loans, OREO,
modified loans to
borrowers
experiencing
financial difficulty,
loans 90 days or more
past
due and still
accruing to total
assets (12) 1.85% 0.97% 0.98% 1.32% 1.14% 1.85% 1.14%
Allowance for credit
losses on loans to
total loans (10) 1.32% 1.29% 1.26% 1.27% 1.26% 1.32% 1.26%
Allowance for credit
losses on loans to
nonaccrual loans,
modified loans to
borrowers
experiencing
financial difficulty
loans
and loans 90 days or
more past due and
still accruing (10) 56.76% 106.25% 105.95% 82.53% 91.24% 56.76% 91.24%
Net charge-offs
(recoveries)
annualized
to average loans (10) -0.02% -0.01% -0.01% -0.01% 0.03% -0.01% 0.03%
Capital Ratios:
Total equity to total
assets 9.60% 9.31% 9.00% 10.40% 9.87% 9.60% 9.87%
Total risk-based
capital ratio 13.55% 13.34% 13.02% 14.54% 13.90% 13.55% 13.90%
Tier 1 risk-based
capital ratio 10.82% 10.62% 10.33% 11.89% 11.27% 10.82% 11.27%
Leverage capital ratio 8.54% 8.40% 8.14% 9.30% 8.93% 8.54% 8.93%
Other Data:
Number of employees
(full-time
equivalent) 144 152 165 170 172 144 172
Number of banking
facilities 9 9 9 9 9 9 9
(1) Noninterest income includes gains and losses on
securities.
(2) Net income available to common stockholders in
the calculation of earnings per share includes the
difference between the carrying amount less the consideration
paid for redeemed preferred stock of $0.4 million
for the quarter ended December 31, 2024.
(3) Tangible book value per share is the stockholder
equity less the carry value of the preferred stock
and less the goodwill and intangible assets, divided
by the total shares of common outstanding. Book value
per share is the stockholder equity less the liquidation
preference of the preferred stock, divided by the
total shares of common outstanding. Book value measures
are reported inclusive of the net deferred tax assets.
As presented here, shares of common outstanding excludes
unvested restricted stock awards.
(4) Net interest margin is the ratio of net interest
income to average interest-earning assets.
(5) Net interest spread is the yield on average interest-earning
assets less the rate on average interest-bearing liabilities.
(6) Noninterest income to average assets excludes
gains and losses on securities.
(7) The efficiency ratio is noninterest expense divided
by the sum of net interest income plus noninterest
income, excluding gains and losses on securities.
(8) Earnings on average assets are net income divided
by average total assets.
(9) Earnings on average equity are net income divided
by average stockholders' equity.
(10) Excludes loans held for sale.
(11) Nonperforming assets includes nonaccrual loans
and securities and other real estate owned.
(12) A large loan 90 days or more past due and still
accruing was brought current after June 30, 2025.
The adjusted ratio to total loans would be 1.80% and
to total assets 1.43%.
CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
December September
June 30, March 31, 31, 30, June 30,
2025 2025 2024 2024 2024
(Dollars in Thousands, Except Shares)
Assets
Cash and due from
banks $ 10,363 $ 7,717 $ 6,748 $ 13,814 $ 10,690
Reverse repurchase
agreements - - - - -
Securities available
for sale 124,618 121,939 118,206 118,145 121,687
Equity securities at
fair value 2,177 2,170 2,133 2,204 2,127
Loans held for sale 7,733 7,685 13,291 19,472 17,897
Loans 665,393 684,787 697,093 707,310 719,129
Allowance for credit
losses on loans (8,793) (8,818) (8,790) (8,973) (9,083)
------- ------- ------- -------- --------
Net loans 656,600 675,969 688,303 698,337 710,046
Federal Home Loan Bank
Stock 3,401 2,607 2,607 2,238 2,238
Premises and
equipment, net 1,660 1,486 1,570 1,526 1,569
Accrued interest
receivable 2,733 2,680 2,651 2,926 3,230
Deferred tax assets,
net 12,160 12,529 12,955 12,796 14,840
Other real estate
owned, net - - 200 211 283
Bank owned life
insurance 6,536 6,486 6,437 6,388 6,340
Goodwill and other
intangible assets 64 64 64 64 64
Other assets 10,396 10,686 11,309 10,162 10,623
Total assets $838,441 $852,018 $866,474 $ 888,283 $ 901,634
======= ======= ======= ======== ========
Liabilities and
Stockholders' Equity
Deposits:
Noninterest-bearing
demand $ 87,479 $ 98,403 $ 86,886 $ 95,471 $ 95,457
Interest-bearing
demand 74,921 77,620 84,833 90,095 86,728
Savings 226,663 232,046 224,960 234,969 244,595
Time 295,417 283,959 295,699 326,633 342,204
------- ------- ------- -------- --------
Total deposits 684,480 692,028 692,378 747,168 768,984
Short-term borrowings 49,514 57,444 71,973 23,829 18,477
Long-term borrowings 9,778 9,770 9,762 9,754 9,745
Accrued interest
payable 1,656 1,614 1,911 2,101 2,145
Other liabilities 12,521 11,853 12,489 13,073 13,275
------- ------- ------- -------- --------
Total liabilities 757,949 772,709 788,513 795,925 812,626
Stockholders' Equity
Preferred stock, $1
par value; 5,000,000
authorized shares at
periods prior to
December 31, 2024; 7%
fixed rate
noncumulative
perpetual issued;
14,633 shares of
series A and 1,610
shares of series B;
convertible; $16.2
million aggregate
liquidation
preference - - - 13,806 13,806
Common stock, $1 par
value; 75,000,000
authorized shares;
1,385,842 and
1,372,642 issued
shares; 1,351,397 and
1,358,473 outstanding
shares at June 30,
2025 and December 31,
2024, respectively
(1) 1,386 1,383 1,372 1,372 1,372
Capital surplus 181,908 181,801 181,708 181,603 181,486
Accumulated deficit (98,498) (99,167) (99,487) (100,297) (101,373)
Accumulated other
comprehensive income
(loss), net (3,273) (3,939) (5,098) (3,592) (5,749)
Treasury stock, 35,167
shares on June 30,
2025 and 14,791
shares December 31,
2024 (2) (1,031) (769) (534) (534) (534)
------- ------- ------- -------- --------
Total
stockholders'
equity 80,492 79,309 77,961 92,358 89,008
Total liabilities
and stockholders'
equity $838,441 $852,018 $866,474 $ 888,283 $ 901,634
======= ======= ======= ======== ========
(1) Both issued and outstanding shares as stated here
exclude 46,686 shares and 42,259 shares of unvested
restricted stock awards at June 30, 2025 and December
31, 2024, respectively.
(2) Treasury stock includes 722 shares held by subsidiary
bank CIBM Bank.
CIB MARINE BANCSHARES, INC.
Consolidated Statements of Operations (Unaudited)
At or for the
-----------------------------------------------------------------------
Quarters Ended 6 Months Ended
--------------------------------------------------- ------------------
March December September
June 30, 31, 31, 30, June 30, June 30, June 30,
2025 2025 2024 2024 2024 2025 2024
(Dollars in thousands)
Interest Income
Loans $ 9,653 $ 9,623 $ 9,999 $ 10,573 $10,582 $19,276 $20,976
Loans held for sale 149 137 215 300 213 286 355
Securities 1,186 1,150 1,151 1,183 1,217 2,336 2,448
Other investments 29 31 43 227 40 60 74
Total interest
income 11,017 10,941 11,408 12,283 12,052 21,958 23,853
Interest Expense
Deposits 4,795 5,029 5,638 6,354 6,466 9,824 12,693
Short-term
borrowings 625 504 500 232 310 1,129 803
Long-term borrowings 121 119 121 121 121 240 241
Total interest
expense 5,541 5,652 6,259 6,707 6,897 11,193 13,737
------ ------ ------ ------ ------ ------ ------
Net interest
income 5,476 5,289 5,149 5,576 5,155 10,765 10,116
Provision for
(reversal of)
credit losses 9 42 (332) (113) 10 51 (18)
------ ------ ------ ------ ------ ------ ------
Net interest
income after
provision for
(reversal of)
credit losses 5,467 5,247 5,481 5,689 5,145 10,714 10,134
Noninterest Income
Deposit service
charges 65 59 55 63 67 124 133
Other service fees (10) (9) (5) (5) 1 (19) (4)
Mortgage banking
revenue, net 1,424 1,140 1,564 2,264 2,166 2,564 3,375
Other income 279 177 192 150 273 456 436
Net gains on sale of
securities
available for sale 0 0 0 0 0 0 0
Unrealized gains
(losses) recognized
on equity
securities 7 36 (71) 78 (14) 43 (32)
Net gains (loss) on
sale of SBA loans 0 161 0 420 0 161 202
Net gains on sale of
assets and
(writedowns) 0 (12) (11) (73) 4,411 (12) 4,421
Total
noninterest
income 1,765 1,552 1,724 2,897 6,904 3,317 8,531
Noninterest Expense
Compensation and
employee benefits 4,060 4,066 4,344 4,852 4,700 8,126 8,989
Equipment 583 559 467 504 457 1,142 919
Occupancy and
premises 519 549 500 495 391 1,068 827
Data Processing 212 221 220 243 208 433 420
Federal deposit
insurance 101 129 144 182 219 230 418
Professional
services 218 278 240 254 219 496 418
Telephone and data
communication 57 52 74 51 51 109 107
Insurance 75 64 71 78 80 139 161
Other expense 486 455 618 504 579 941 1,066
Total
noninterest
expense 6,311 6,373 6,678 7,163 6,904 12,684 13,325
------ ------ ------ ------ ------ ------ ------
Income from
operations
before income
taxes 921 426 527 1,423 5,145 1,347 5,340
Income tax expense 253 105 123 347 1,361 358 1,378
Net income
(loss) 668 321 404 1,076 3,784 989 3,962
Preferred stock
dividend 0 0 0 0 0 0 0
Discount from
repurchase of
preferred stock 0 0 406 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Net income
(loss)
allocated to
common
stockholders $ 668 $ 321 $ 810 $ 1,076 $ 3,784 $ 989 $ 3,962
====== ====== ====== ====== ====== ====== ======
(END) Dow Jones Newswires
July 11, 2025 05:57 ET (09:57 GMT)
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