BROOKFIELD, Wis., Oct. 17, 2024 (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 nine months ended September 30, 2024. Earnings are up $0.7 million for the quarter when compared to the same quarter in 2023, and up by $0.6 million compared to the prior quarter in 2024, if excluding the effects of the gain on sale from the sale-leaseback transaction in the prior quarter.
Net income for the quarter was $1.1 million, or $0.79 basic and $0.59 diluted earnings per share, compared to $0.4 million, or $0.28 basic and $0.21 diluted earnings per share, for the same period of 2023. Net income for the nine months ended September 30, 2024, was $5.0 million, or $3.73 basic and $2.75 diluted earnings per share, compared to $1.8 million, or $1.34 basic and $0.98 diluted earnings per share, for the same period of 2023. Excluding the effects of the non-recurring sale-leaseback transaction gain on sale reported in the second quarter of 2024, net income for the nine-month period ended September 30, 2024, was $1.7 million, or $1.27 basic and $0.94 diluted earnings per share.
Financial highlights for the quarter include:
Net interest income was up $0.4 million from the prior quarter and net interest margin improved to 2.55% compared to 2.38% in the prior quarter and 2.43% in the third quarter of 2023. The improvement from the prior quarter was due to a 4 basis point increase in yields on earning assets and a 5 basis point decrease in the cost of funds. Net interest income was up $0.6 million for the quarter compared to the same quarter of 2023, and down $0.6 million for the nine months ended September 30, 2024, compared to the same period of 2023, due to the rise in cost of funds versus yields on assets over those time periods.
Loan portfolio balances decreased $12 million over the quarter and decreased $15 million since December 31, 2023, due to high loan rates and the Company’s balance sheet management strategy, with further balance declines expected in the fourth quarter of 2024. Deposits decreased $22 million for the quarter due to planned payoffs of maturing time deposits and reductions in money market savings accounts, and increased $20 million from December 31, 2023, as lower-cost deposits were generated and used to pay down Federal Home Loan Bank of Chicago (“FHLB”) borrowings.
As of September 30, 2024, non-performing assets, modified loans to borrowers experiencing financial difficulty, and loans 90 days or more past due and still accruing to total assets and nonaccrual loans to total loans ratios were 1.25% and 0.44%, respectively, compared to 0.90% and 0.50%, respectively, on December 31, 2023, and 0.49% and 0.50%, respectively, on September 30, 2023. The primary reason for the increase in the ratios over the time period is due to four credit relationships with borrowers in or related to the transportation industry, including one modified loan in compliance with the modified terms, two relationships with non-accrual loans, and one that is 90 plus days past due in the process of collection.
Also, as of September 30, 2024, the allowance for credit losses on loans (“ACLL”) to loans was 1.27% compared to 1.27% on December 31, 2023, and 1.30% on September 30, 2023. The ACLL is impacted by third-party economic forecasts and qualitative factors. Over the course of 2023 and 2024, forecasts for gross domestic product and unemployment have generally improved while certain qualitative factors related to loan performance have trended up, resulting in a lower ACLL to loans ratio.
For the nine months ended September 30, 2024, Banking Division net income was $5.8 million up from $2.9 million for the same period in 2023, primarily due to the sale-leaseback gain on sale and cost reduction activities in the 2024 period. The Mortgage Division was profitable for the third quarter of 2024. For the nine months ended September 30, 2024, its net loss was $0.1 million, improved from a $0.5 million loss in the same period in 2023 thanks to cost saving actions and despite production being down due to housing market challenges.
Mr. J. Brian Chaffin, CIB Marine’s President and CEO, commented, “Operating results from our Banking and Mortgage Divisions improved for the quarter as highlighted above, at a time that continues to present many challenges for both community banking and mortgage banking companies. Our cost of funds and net interest margins showed nice improvements on a trending basis recently and we are working toward continued improvement, which should be accelerated by the recent decline in the Federal Funds Target Rates by the Federal Reserve. Our targeted expense controls implemented in late 2023 and early 2024 have supported improved operating results.”
He concluded, “Our plans for a final redemption of all remaining preferred stock during the fourth quarter of 2024 continue to move ahead. Earlier today, we announced the complete and final redemption of all preferred stock will occur on October 31, 2024. Although we now have sufficient cash on hand at CIB Marine for the final redemption, we have also secured lender commitments for a term loan and a line of credit for contingency purposes. This marks a significant achievement of the Company and improves prospects for building future shareholder value.”
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 ten 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:
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.
CIB MARINE BANCSHARES, INC.
Selected Unaudited Consolidated Financial Data
At or for the
Quarters Ended
9 Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
2024
2024
2024
2023
2023
2024
2023
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income
$
12,283
$
12,052
$
11,801
$
11,328
$
10,117
$
36,136
$
27,741
Interest expense
6,707
6,897
6,840
6,190
5,180
20,444
11,424
Net interest income
5,576
5,155
4,961
5,138
4,937
15,692
16,317
Provision for (reversal of) credit losses
(113
)
10
(28
)
135
(140
)
(131
)
(227
)
Net interest income after provision for (reversal of) credit losses
5,689
5,145
4,989
5,003
5,077
15,823
16,544
Noninterest income (1)
2,897
6,904
1,627
1,824
2,368
11,428
7,076
Noninterest expense
7,163
6,904
6,421
6,669
7,007
20,488
21,269
Income before income taxes
1,423
5,145
195
158
438
6,763
2,351
Income tax expense
347
1,361
17
1,050
59
1,725
579
Net income (loss)
$
1,076
$
3,784
$
178
$
(892
)
$
379
$
5,038
$
1,772
Common Share Data:
Basic net income (loss) per share
$
0.79
$
2.79
$
0.13
$
(0.67
)
$
0.28
$
3.73
$
1.34
Diluted net income (loss) per share
0.59
2.06
0.10
(0.67
)
0.21
2.75
0.98
Dividend
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tangible book value per share (2)
57.80
55.36
52.59
53.35
52.05
57.80
52.05
Book value per share (2)
56.06
53.61
50.84
51.58
50.28
56.06
50.28
Weighted average shares outstanding - basic
1,357,259
1,356,255
1,341,181
1,334,163
1,333,900
1,351,205
1,320,342
Weighted average shares outstanding - diluted
1,833,586
1,833,881
1,820,498
1,813,207
1,814,727
1,828,956
1,811,151
Financial Condition Data:
Total assets
$
888,283
$
901,634
$
897,595
$
899,060
$
874,247
$
888,283
$
874,247
Loans
707,310
719,129
736,019
722,084
688,446
707,310
688,446
Allowance for credit losses on loans
(8,973
)
(9,083
)
(9,087
)
(9,136
)
(8,947
)
(8,973
)
(8,947
)
Investment securities
120,349
123,814
119,300
131,529
130,476
120,349
130,476
Deposits
747,168
768,984
772,377
727,565
644,165
747,168
644,165
Borrowings
33,583
28,222
32,120
76,956
138,469
33,583
138,469
Stockholders' equity
92,358
89,008
85,091
85,075
83,313
92,358
83,313
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (3)
2.55
%
2.38
%
2.29
%
2.41
%
2.43
%
2.41
%
2.84
%
Net interest spread (4)
1.80
%
1.71
%
1.63
%
1.79
%
1.85
%
1.71
%
2.34
%
Noninterest income to average assets (5)
1.25
%
3.09
%
0.73
%
0.78
%
1.15
%
1.69
%
1.19
%
Noninterest expense to average assets
3.17
%
3.09
%
2.87
%
3.00
%
3.31
%
3.04
%
3.55
%
Efficiency ratio (6)
85.32
%
57.19
%
97.20
%
97.13
%
95.06
%
75.67
%
90.66
%
Earnings (loss) on average assets (7)
0.48
%
1.69
%
0.08
%
-0.40
%
0.18
%
0.75
%
0.30
%
Earnings (loss) on average equity (8)
4.71
%
17.92
%
0.84
%
-4.21
%
1.78
%
7.74
%
2.82
%
Asset Quality Ratios:
Nonaccrual loans to loans (9)
0.44
%
0.47
%
0.48
%
0.50
%
0.50
%
0.44
%
0.50
%
Nonaccrual loans, modified loans to borrowers experiencing financial difficulty, loans 90 days or more past due and still accruing to total loans
1.54
%
1.38
%
1.04
%
1.07
%
0.56
%
1.54
%
0.56
%
Nonaccrual loans, modified loans to borrowers experiencing financial difficulty, loans 90 days or more past due and still accruing to total assets
1.25
%
1.14
%
0.89
%
0.90
%
0.49
%
1.25
%
0.49
%
Allowance for credit losses on loans to total loans (9)
1.27
%
1.26
%
1.23
%
1.27
%
1.30
%
1.27
%
1.30
%
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 (9)
82.53
%
91.24
%
118.77
%
118.59
%
231.01
%
82.53
%
231.01
%
Net charge-offs (recoveries) annualized to average loans (9)
-0.01
%
0.03
%
0.03
%
0.01
%
-0.01
%
0.02
%
-0.01
%
Capital Ratios:
Total equity to total assets
10.40
%
9.87
%
9.48
%
9.46
%
9.53
%
10.40
%
9.53
%
Total risk-based capital ratio
14.54
%
13.90
%
13.07
%
13.24
%
13.58
%
14.54
%
13.58
%
Tier 1 risk-based capital ratio
11.89
%
11.27
%
10.48
%
10.62
%
10.91
%
11.89
%
10.91
%
Leverage capital ratio
9.30
%
8.93
%
8.50
%
8.62
%
8.93
%
9.30
%
8.93
%
Other Data:
Number of employees (full-time equivalent)
170
172
177
193
194
170
194
Number of banking facilities
9
9
9
9
9
9
9
(1) Noninterest income includes gains and losses on securities.
(2) 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.
(3) Net interest margin is the ratio of net interest income to average interest-earning assets.
(4) Net interest spread is the yield on average interest-earning assets less the rate on average interest-bearing liabilities.
(5) Noninterest income to average assets excludes gains and losses on securities.
(6) The efficiency ratio is noninterest expense divided by the sum of net interest income plus noninterest income, excluding gains and losses on securities.
(7) Earnings on average assets are net income divided by average total assets.
(8) Earnings on average equity are net income divided by average stockholders' equity.
(9) Excludes loans held for sale.
CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
September 30,
June 30,
March 31,
December 31,
September 30,
2024
2024
2024
2023
2023
(Dollars in Thousands, Except Shares)
Assets
Cash and due from banks
$
13,814
$
10,690
$
7,727
$
9,491
$
9,203
Reverse repurchase agreements
-
-
-
-
-
Securities available for sale
118,145
121,687
117,160
129,370
128,413
Equity securities at fair value
2,204
2,127
2,140
2,159
2,063
Loans held for sale
19,472
17,897
8,048
9,209
15,011
Loans
707,310
719,129
736,019
722,084
688,446
Allowance for credit losses on loans
(8,973
)
(9,083
)
(9,087
)
(9,136
)
(8,947
)
Net loans
698,337
710,046
726,932
712,948
679,499
Federal Home Loan Bank Stock
2,238
2,238
2,328
2,709
4,645
Premises and equipment, net
1,526
1,569
3,550
3,602
3,675
Accrued interest receivable
2,926
3,230
3,271
2,983
2,748
Deferred tax assets, net
12,796
14,840
14,849
14,753
16,815
Other real estate owned, net
211
283
375
375
375
Bank owned life insurance
6,388
6,340
6,291
6,247
6,204
Goodwill and other intangible assets
64
64
64
64
70
Other assets
10,162
10,623
4,860
5,150
5,526
Total assets
$
888,283
$
901,634
$
897,595
$
899,060
$
874,247
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand
$
95,471
$
95,457
$
87,621
$
89,025
$
88,674
Interest-bearing demand
90,095
86,728
92,092
90,232
73,086
Savings
234,969
244,595
261,998
256,059
254,211
Time
326,633
342,204
330,666
292,249
228,194
Total deposits
747,168
768,984
772,377
727,565
644,165
Short-term borrowings
23,829
18,477
22,383
67,227
128,748
Long-term borrowings
9,754
9,745
9,737
9,729
9,721
Accrued interest payable
2,101
2,145
1,982
1,883
1,491
Other liabilities
13,073
13,275
6,025
7,581
6,809
Total liabilities
795,925
812,626
812,504
813,985
790,934
Stockholders' Equity
Preferred stock, $1 par value; 5,000,000 authorized shares at both September 30, 2024 and December 31, 2023; 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
13,806
13,806
13,806
Common stock, $1 par value; 75,000,000 authorized shares; 1,372,642 and 1,349,392 issued shares; 1,358,573 and 1,335,323 outstanding shares at September 30, 2024 and December 31, 2023, respectively. (1)
1,372
1,372
1,369
1,349
1,349
Capital surplus
181,603
181,486
181,380
181,282
181,144
Accumulated deficit
(100,297
)
(101,373
)
(105,157
)
(105,335
)
(104,443
)
Accumulated other comprehensive income (loss), net
(3,592
)
(5,749
)
(5,773
)
(5,493
)
(8,009
)
Treasury stock, 14,791 shares on September 30, 2024 and December 31, 2023 (2)
(534
)
(534
)
(534
)
(534
)
(534
)
Total stockholders' equity
92,358
89,008
85,091
85,075
83,313
Total liabilities and stockholders' equity
$
888,283
$
901,634
$
897,595
$
899,060
$
874,247
(1) Both issued and outstanding shares as stated here exclude 46,437 shares and 48,308 shares of unvested restricted stock awards at September 30, 2024 and December 31, 2023, 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
9 Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
September 30,
September 30,
2024
2024
2024
2023
2023
2024
2023
(Dollars in thousands)
Interest Income
Loans
$
10,573
$
10,582
$
10,394
$
9,752
$
8,718
$
31,549
$
23,781
Loans held for sale
300
213
142
200
227
655
466
Securities
1,183
1,217
1,231
1,330
1,132
3,631
3,148
Other investments
227
40
34
46
40
301
346
Total interest income
12,283
12,052
11,801
11,328
10,117
36,136
27,741
Interest Expense
Deposits
6,354
6,466
6,227
5,071
3,918
19,047
9,358
Short-term borrowings
232
310
493
998
1,141
1,035
1,704
Long-term borrowings
121
121
120
121
121
362
362
Total interest expense
6,707
6,897
6,840
6,190
5,180
20,444
11,424
Net interest income
5,576
5,155
4,961
5,138
4,937
15,692
16,317
Provision for (reversal of) credit losses
(113
)
10
(28
)
135
(140
)
(131
)
(227
)
Net interest income after provision for (reversal of) credit losses
5,689
5,145
4,989
5,003
5,077
15,823
16,544
Noninterest Income
Deposit service charges
63
67
66
74
101
196
256
Other service fees
(5
)
1
(5
)
3
6
(9
)
33
Mortgage banking revenue, net
2,264
2,166
1,209
1,397
1,984
5,639
4,628
Other income
150
273
163
165
132
586
413
Net gains on sale of securities available for sale
0
0
0
0
0
0
0
Unrealized gains (losses) recognized on equity securities
78
(14
)
(18
)
96
(66
)
46
(66
)
Net gains (loss) on sale of SBA loans
420
0
202
0
0
622
151
Net gains on sale of assets and (writedowns)
(73
)
4,411
10
89
211
4,348
1,661
Total noninterest income
2,897
6,904
1,627
1,824
2,368
11,428
7,076
Noninterest Expense
Compensation and employee benefits
4,852
4,700
4,289
4,369
4,631
13,841
14,282
Equipment
504
457
462
493
484
1,423
1,463
Occupancy and premises
495
391
436
415
490
1,322
1,332
Data Processing
243
208
212
224
245
663
665
Federal deposit insurance
182
219
199
170
123
600
360
Professional services
254
219
199
243
271
672
866
Telephone and data communication
51
51
56
66
57
158
174
Insurance
78
80
81
79
82
239
238
Other expense
504
579
487
610
624
1,570
1,889
Total noninterest expense
7,163
6,904
6,421
6,669
7,007
20,488
21,269
Income from operations before income taxes
1,423
5,145
195
158
438
6,763
2,351
Income tax expense
347
1,361
17
1,050
59
1,725
579
Net (loss) income
1,076
3,784
178
(892
)
379
5,038
1,772
Preferred stock dividend
0
0
0
0
0
0
0
Discount from repurchase of preferred stock
0
0
0
0
0
0
0
Net income (loss) allocated to common stockholders
