CIB Marine Bancshares, Inc. Announces 2018 Second Quarter Results

WAUKESHA, Wis., July 12, 2018 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the "Company" or "CIBM") (OTCQB:CIBH), the holding company of CIBM Bank (the "Bank"), today announces its results of operations and financial condition for the second quarter of 2018.  Pre-tax net income for the quarter was $1.1 million compared to $1.0 million for the same period in 2017, and for the six months ending June 30, 2018, it was $2.1 million compared to $1.9 million for the same period in 2017.

A summary of financial results for the quarter and six months ended June 30, 2018, is attached.  Select highlights include:

  • Pre-tax net income for subsidiary CIBM Bank was $1.4 million for the quarter compared to $1.3 million for the same period in 2017, and $2.6 million for the six months ending June 30, 2018, compared to $2.3 million for the same period in 2017.  All key revenue areas – net interest income, net mortgage banking revenue, and gains on sale of SBA loans – are up in 2018 compared to 2017. 
  • The net interest margin was reported at 3.18% for the six months ending June 30, 2018, compared to 3.06% for the same period in 2017.  Net interest income was up $0.4 million year to date compared to the same period of 2017.
  • Non-interest income improved $0.4 million for the six months ending June 30, 2018, compared to the same period in 2017, reflecting higher net mortgage banking revenues and gains on sale of SBA loans. 
  • Non-interest expenses were higher by $0.9 million for the six months ending June 30, 2018, compared to the same period in 2017, due primarily to higher compensation expenses related to higher salary, commissions and benefits, and higher professional fees related to the recent amendment to the Articles of Incorporation and activities associated with the solicitation of offers for the repurchase of preferred shares by the Company. 
  • Non-performing assets to total assets was 0.94% at June 30, 2018, compared to 1.13% at December 31, 2017, and 1.51% at June 30,  2017, reflecting lower non-accrual loans and other real estate owned.
  • Book and tangible book value per share of common stock improved to $2.10 and $2.58, respectively, for June 30, 2018, compared to $2.04 and $2.53 at December 31, 2017. 

J. Brian Chaffin, CIB Marine's President and CEO, commented, "Our second quarter results reflect improved revenues in all areas as we continue to make progress in all of our strategic growth areas." 

Mr. Chaffin added, "Mortgage loan production and SBA loan closings are higher in 2018 compared to 2017.  Our loan portfolio was up $15 million for the second quarter of 2018 and level for the year, despite moderated growth due to heightened price and term competition.  Asset quality ratios continue to reflect lower levels of loan quality issues and our loan loss reserves at 1.65% compares well to other commercial banks of similar size and mix."

CIB Marine Bancshares, Inc. owns and operates CIBM Bank, an Illinois chartered commercial bank, headquartered in Champaign, Illinois, which operates as "Marine Bank" in its Indiana and Wisconsin markets; "Central Illinois Bank" in its central Illinois market; and "Avenue Bank" in its Chicagoland market.  The Avenue Mortgage Division of the bank, headquartered in Naperville, Illinois, serves all CIBM Bank markets.  CIBM Bank operates eleven banking branches and six mortgage lending offices. 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.

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,
  2018
2018
2017
2017
2017
  2018
2017
  (Dollars in thousands, except share and per share data)
Selected Statement of Operations Data                
Interest and dividend income $ 6,387   $ 6,009   $ 6,177   $ 6,056   $ 5,732     $ 12,396   $ 11,294  
Interest expense   1,406     1,185     1,121     1,140     973       2,591     1,865  
Net interest income   4,981     4,824     5,056     4,916     4,759       9,805     9,429  
Provision for (reversal of) loan losses   149     (126 )   (218 )   149     47       23     275  
Net interest income after provision for                
(reversal of) loan losses   4,832     4,950     5,274     4,767     4,712       9,782     9,154  
Noninterest income (1)   2,986     1,871     2,015     2,257     2,611       4,857     4,458  
Noninterest expense   6,737     5,824     6,070     5,865     6,279       12,561     11,680  
Income before income taxes   1,081     997     1,219     1,159     1,044       2,078     1,932  
Income tax expense (benefit)   246     300     (22,689 )   25     20       546     20  
Net income $ 835   $ 697   $ 23,908   $ 1,134   $ 1,024     $ 1,532   $ 1,912  
                 
Common Share Data                
Basic net income per share $ 0.05   $ 0.04   $ 1.32   $ 0.06   $ 0.06     $ 0.08   $ 0.11  
Diluted net income per share   0.02     0.02     0.65     0.03     0.03       0.04     0.05  
Dividend   0     0     0     0     0       0     0  
Tangible book value per share (2)   2.58     2.54     2.53     1.23     1.16       2.58     1.16  
Book value per share (2)   2.10     2.06     2.04     0.75     0.68       2.10     0.68  
Financial Condition Data                
Total assets $ 694,812   $ 663,580   $ 662,394   $ 640,340   $ 650,051     $ 694,812   $ 650,051  
Loans   488,762     472,746     483,611     490,089     488,289       488,762     488,289  
Allowance for loan losses   (8,055 )   (7,331 )   (7,701 )   (7,905 )   (7,653 )     (8,055 )   (7,653 )
Investment securities   119,571     115,596     114,801     112,670     111,160       119,571     111,160  
Deposits   517,452     484,258     478,633     479,285     493,364       517,452     493,364  
Borrowings   76,427     79,227     84,217     84,903     82,025       76,427     82,025  
Stockholders' equity   97,313     97,407     97,066     73,556     72,279       97,313     72,279  
Financial Ratios and Other Data                
Performance Ratios:                
Net interest margin (3)   3.15 %   3.20 %   3.25 %   3.07 %   3.09 %     3.18 %   3.06 %
Net interest spread (4)   2.92 %   2.99 %   3.05 %   2.88 %   2.92 %     2.96 %   2.89 %
Noninterest income to average assets (5)   1.77 %   1.15 %   1.26 %   1.37 %   1.65 %     1.47 %   1.40 %
Noninterest expense to average assets   3.99 %   3.63 %   3.79 %   3.55 %   3.96 %     3.82 %   3.68 %
Efficiency ratio (6)   84.56 %   87.28 %   85.84 %   81.76 %   85.20 %     85.80 %   84.11 %
Earnings on average assets (7)   0.49 %   0.43 %   14.93 %   0.69 %   0.65 %     0.47 %   0.60 %
Earnings on average equity (8)   3.41 %   2.89 %   124.19 %   6.11 %   5.71 %     3.15 %   5.41 %
Asset Quality Ratios:                
Nonaccrual loans to loans (9)   0.53 %   0.19 %   0.69 %   0.99 %   0.99 %     0.53 %   0.99 %
Nonaccrual loans, restructured loans and                
loans 90 days or more past due and still                
accruing to total loans (9)   0.82 %   0.53 %   1.02 %   1.30 %   1.36 %     0.82 %   1.36 %
Nonperforming assets, restructured loans                
and loans 90 days or more past due and still                
accruing to total assets (9)   0.94 %   0.85 %   1.13 %   1.49 %   1.51 %     0.94 %   1.51 %
Allowance for loan losses to total loans   1.65 %   1.55 %   1.59 %   1.61 %   1.57 %     1.65 %   1.57 %
Allowance for loan losses to nonaccrual loans,                
restructured loans and loans 90 days or                
more past due and still accruing (9)   200.97 %   294.77 %   156.68 %   124.21 %   115.15 %     200.97 %   115.15 %
Net charge-offs (recoveries) annualized                
to average loans   -0.48 %   0.21 %   -0.01 %   -0.08 %   -0.03 %     -0.14 %   0.09 %
Capital Ratios:                
Total equity to total assets   14.01 %   14.68 %   14.65 %   11.49 %   11.12 %     14.01 %   11.12 %
Total risk-based capital ratio   16.65 %   16.91 %   16.62 %   16.05 %   15.93 %     16.65 %   15.93 %
Tier 1 risk-based capital ratio   15.39 %   15.66 %   15.36 %   14.80 %   14.68 %     15.39 %   14.68 %
Leverage capital ratio   11.72 %   12.16 %   12.39 %   11.41 %   11.56 %     11.72 %   11.56 %
Other Data:                
Number of employees (full-time equivalent)   184     184     183     179     181       184     181  
Number of banking facilities   11     11     11     11     11       11     11  
                 
(1) Noninterest income includes gains and losses on securities.
(2) Tangible book value per share is the shareholder 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 shareholder equity less the liquidation preference of the preferred stock, divided by the total shares of common outstanding.      
(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 common equity.      
(9) Excludes loans held for sale.      
CIB MARINE BANCSHARES, INC.
Summary Consolidated Balance Sheets (Unaudited)
             
  June 30,  March 31,  December 31, September 30,  June 30,       
  2018 2018
2017
2017 2017      
  (Dollars in thousands)      
Assets                
Cash and due from banks $ 9,752 $ 10,829   $ 14,371   $ 9,569 $ 10,462      
Reverse repurchase agreements   28,403   23,032     5,449     10,289   20,440      
Securities available for sale   119,571   115,596     114,801     112,670   111,160      
Loans Held for Sale   15,407   6,689     11,070     7,164   9,166      
Loans   480,707   465,415     475,910     482,184   480,636      
All other assets   40,972   42,019     40,793     18,464   18,187      
Total Assets $ 694,812 $ 663,580   $ 662,394   $ 640,340 $ 650,051      
                 
Liabilities and Stockholders' Equity                 
Deposits $ 517,452 $ 484,258   $ 478,633   $ 479,285 $ 493,364      
Short-term borrowings   76,427   79,227     84,217     84,903   82,025      
All other liabilities   3,620   2,688     2,478     2,596   2,383      
Total liabilities   597,499   566,173     565,328     566,784   577,772      
                 
Stockholders' Equity                 
Total stockholders' equity   97,313   97,407     97,066     73,556   72,279      
Total liabilities and stockholders' equity $ 694,812 $ 663,580   $ 662,394   $ 640,340 $ 650,051      
                 
                 
                 
                 
                 
                 
                 
                 
CIB MARINE BANCSHARES, INC.
Summary Consolidated Statements of Operations (Unaudited)
                 
  At or for the 
  Quarters Ended   6 Months Ended
  June 30, March 31, December 31, September 30, June 30,   June 30, June 30,
  2018 2018
2017
  2017 2017   2018 2017
  (Dollars in thousands)
Interest Income $ 6,387 $ 6,009   $ 6,177   $ 6,056 $ 5,732   $ 12,396 $ 11,294
Interest Expense   1,406   1,185     1,121     1,140   973     2,591   1,865
Net interest income   4,981   4,824     5,056     4,916   4,759     9,805   9,429
Provision for (reversal of) loan losses   149   (126 )   (218 )   149   47     23   275
Net interest income after provision for                 
(reversal of) loan losses   4,832   4,950     5,274     4,767   4,712     9,782   9,154
Noninterest Income   2,986   1,871     2,015     2,257   2,611     4,857   4,458
Compensation and employee benefits   4,682   4,056     4,015     4,099   4,333     8,738   8,038
Occupancy and premises   759   728     722     706   700     1,487   1,380
Other expenses   1,296   1,040     1,333     1,060   1,246     2,336   2,262
Total noninterest expense   6,737   5,824     6,070     5,865   6,279     12,561   11,680
Income from operations                 
before income taxes   1,081   997     1,219     1,159   1,044     2,078   1,932
Income tax expense (benefit)   246   300     (22,689 )   25   20     546   20
Net income    835   697     23,908     1,134   1,024     1,532   1,912
Preferred stock dividend   0   0     0     0   0     0   0
Net income allocated to                
common stockholders $ 835 $ 697   $ 23,908   $ 1,134 $ 1,024   $ 1,532 $ 1,912
                 

FOR INFORMATION CONTACT:
J. Brian Chaffin, President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com  

 

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