CIB Marine Bancshares, Inc. Announces First Quarter 2025 Results

CIB Marine Bancshares, Inc.

Fri, Apr 11, 2025, 3:45 AM 15 min read

BROOKFIELD, Wis., April 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 three months ended March 31, 2025. Net income of $0.3 million for the first quarter of 2025, or $0.24 basic and $0.23 diluted net income per share, compares to $0.2 million during the same quarter of 2024, or $0.13 basic and $0.10 diluted net income per share.

Financial highlights for the quarter include:

Net interest margin increased to 2.62% compared to 2.44% for the fourth quarter of 2024 and 2.29% for the first quarter of 2024. The rising trend continues as the cost of funds reprices lower relative to the changes in yields on earning assets. Net interest income rose $0.3 million compared to the same quarter of 2024, primarily due to declining cost of funds and improved net interest margin.
Although quarter-end loan balances declined $12 million compared to December 31, 2024, the allowance for credit losses to loans rose from 1.26% to 1.29%, primarily due to a deterioration in forecasted short-term economic outcomes. Non-performing assets to total assets of 0.67% and non-accrual loans to loans of 0.84% on March 31, 2025, compares to 0.68% and 0.81%, respectively, on December 31, 2024. In 2024, the Bank maintained lower loan balances to support the preferred stock redemption and ensure appropriate capital ratios. Looking ahead, an increase in the loan portfolio is expected over the remainder of the year, primarily driven by growth in the commercial segments.

The Banking Division’s $0.8 million of net income for the quarter was unchanged from the same period the prior year. Due to seasonal factors and high interest rates, the Mortgage Division experienced a slow first quarter, resulting in a net loss of $0.2 million, which is an improvement of $0.2 million compared to the same period in 2024 due to cost-saving actions implemented earlier. The net remaining Other Division, comprised primarily of parent company operations, had a net loss of $0.3 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, “Our banking operations have gained momentum, with our strong corporate banking group rebuilding the commercial loan pipeline and our net interest margin trending higher due to management's diligent efforts to lower our cost of funds. Despite an improvement of $0.2 million from the first quarter of the previous year, the Mortgage Division reported a loss due to the challenging business environment for residential mortgages. We anticipate a decline in overall mortgage production for the remainder of the year compared to the previous year, primarily due to lender staff reductions, but remain confident in the capabilities of our current lending team to deliver solid mortgage production.”

He added, “In February, we announced the launch of our 2025 common stock repurchase program, which is expected to buy back up to $1 million worth of shares through the end of the year. During the first quarter of 2025, we spent $235,000 in open market transactions to buy 7,429 shares at an average price of $31.65 per share. This price was significantly lower than the tangible book value of $57.37 per share as of December 31, 2024, and the repurchases contributed to an increase in the tangible book value to $58.46 per share by March 31, 2025.”

As the Company prepares for its upcoming annual meeting, he concluded, “We look forward to discussing key topics related to our operating results and capital plans at the Annual Shareholder Meeting on Thursday, April 24th, 2025. Shareholders are encouraged to visit our website for more information about the virtual meeting and to review the meeting materials.”

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															3 Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,			March 31,			March 31,
	2025			2024			2024			2024			2024			2025			2024
	(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income	$	10,941		$	11,408		$	12,283		$	12,052		$	11,801		$	10,941		$	11,801
Interest expense		5,652			6,259			6,707			6,897			6,840			5,652			6,840
Net interest income		5,289			5,149			5,576			5,155			4,961			5,289			4,961
Provision for (reversal of) credit losses		42			(332	)		(113	)		10			(28	)		42			(28	)
Net interest income after provision for
(reversal of) credit losses		5,247			5,481			5,689			5,145			4,989			5,247			4,989
Noninterest income (1)		1,552			1,724			2,897			6,904			1,627			1,552			1,627
Noninterest expense		6,373			6,678			7,163			6,904			6,421			6,373			6,421
Income before income taxes		426			527			1,423			5,145			195			426			195
Income tax expense		105			123			347			1,361			17			105			17
Net income (loss)	$	321		$	404		$	1,076		$	3,784		$	178		$	321		$	178

Common Share Data:
Basic net income (loss) per share (2)	$	0.24		$	0.60		$	0.79		$	2.79		$	0.13		$	0.24		$	0.13
Diluted net income (loss) per share (2)		0.23			0.54			0.59			2.06			0.10			0.23			0.10
Dividend		0.00			0.00			0.00			0.00			0.00			0.00			0.00
Tangible book value per share (3)		58.46			57.37			57.80			55.36			52.59			58.46			52.59
Book value per share (3)		58.51			57.42			56.06			53.61			50.84			58.51			50.84
Weighted average shares outstanding - basic		1,348,995			1,357,737			1,357,259			1,356,255			1,341,181			1,348,995			1,341,181
Weighted average shares outstanding - diluted		1,396,274			1,507,344			1,833,586			1,833,881			1,820,498			1,396,274			1,820,498
Financial Condition Data:
Total assets	$	852,018		$	866,474		$	888,283		$	901,634		$	897,595		$	852,018		$	897,595
Loans		684,787			697,093			707,310			719,129			736,019			684,787			736,019
Allowance for credit losses on loans		(8,818	)		(8,790	)		(8,973	)		(9,083	)		(9,087	)		(8,818	)		(9,087	)
Investment securities		124,109			120,339			120,349			123,814			119,300			124,109			119,300
Deposits		692,028			692,378			747,168			768,984			772,377			692,028			772,377
Borrowings		67,214			81,735			33,583			28,222			32,120			67,214			32,120
Stockholders' equity		79,309			77,961			92,358			89,008			85,091			79,309			85,091
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (4)		2.62	%		2.44	%		2.55	%		2.38	%		2.29	%		2.62	%		2.29	%
Net interest spread (5)		1.99	%		1.74	%		1.80	%		1.71	%		1.63	%		1.99	%		1.63	%
Noninterest income to average assets (6)		0.73	%		0.82	%		1.25	%		3.09	%		0.73	%		0.73	%		0.73	%
Noninterest expense to average assets		3.05	%		3.06	%		3.17	%		3.09	%		2.87	%		3.05	%		2.87	%
Efficiency ratio (7)		93.65	%		96.17	%		85.32	%		57.19	%		97.20	%		93.65	%		97.20	%
Earnings (loss) on average assets (8)		0.15	%		0.19	%		0.48	%		1.69	%		0.08	%		0.15	%		0.08	%
Earnings (loss) on average equity (9)		1.65	%		1.94	%		4.71	%		17.92	%		0.84	%		1.65	%		0.84	%
Asset Quality Ratios:
Nonaccrual loans to loans (10)		0.84	%		0.81	%		0.44	%		0.47	%		0.48	%		0.84	%		0.48	%
Nonperformance assets to total assets (11)		0.67	%		0.68	%		0.38	%		0.41	%		0.43	%		0.67	%		0.43	%
Nonaccrual loans, modified loans to borrowers experiencing
financial difficulty, loans 90 days or more past due and still
accruing to total loans		1.21	%		1.19	%		1.62	%		1.38	%		1.04	%		1.21	%		1.04	%
Nonaccrual loans, OREO, modified loans to borrowers
experiencing financial difficulty, loans 90 days or more past
due and still accruing to total assets		0.97	%		0.98	%		1.32	%		1.14	%		0.89	%		0.97	%		0.89	%
Allowance for credit losses on loans to total loans (10)		1.29	%		1.26	%		1.27	%		1.26	%		1.23	%		1.29	%		1.23	%
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)		106.25	%		105.95	%		82.53	%		91.24	%		118.77	%		106.25	%		118.77	%
Net charge-offs (recoveries) annualized
to average loans (10)		-0.01	%		-0.01	%		-0.01	%		0.03	%		0.03	%		-0.01	%		0.03	%
Capital Ratios:
Total equity to total assets		9.31	%		9.00	%		10.40	%		9.87	%		9.48	%		9.31	%		9.48	%
Total risk-based capital ratio		13.34	%		13.02	%		14.54	%		13.90	%		13.07	%		13.34	%		13.07	%
Tier 1 risk-based capital ratio		10.62	%		10.33	%		11.89	%		11.27	%		10.48	%		10.62	%		10.48	%
Leverage capital ratio		8.40	%		8.14	%		9.30	%		8.93	%		8.50	%		8.40	%		8.50	%
Other Data:
Number of employees (full-time equivalent)		152			165			170			172			177			152			177
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.

CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
	(Dollars in Thousands, Except Shares)
Assets
Cash and due from banks	$	7,717		$	6,748		$	13,814		$	10,690		$	7,727
Reverse repurchase agreements		-			-			-			-			-
Securities available for sale		121,939			118,206			118,145			121,687			117,160
Equity securities at fair value		2,170			2,133			2,204			2,127			2,140
Loans held for sale		7,685			13,291			19,472			17,897			8,048

Loans		684,787			697,093			707,310			719,129			736,019
Allowance for credit losses on loans		(8,818	)		(8,790	)		(8,973	)		(9,083	)		(9,087	)
Net loans		675,969			688,303			698,337			710,046			726,932

Federal Home Loan Bank Stock		2,607			2,607			2,238			2,238			2,328
Premises and equipment, net		1,486			1,570			1,526			1,569			3,550
Accrued interest receivable		2,680			2,651			2,926			3,230			3,271
Deferred tax assets, net		12,529			12,955			12,796			14,840			14,849
Other real estate owned, net		-			200			211			283			375
Bank owned life insurance		6,486			6,437			6,388			6,340			6,291
Goodwill and other intangible assets		64			64			64			64			64
Other assets		10,686			11,309			10,162			10,623			4,860
Total assets	$	852,018		$	866,474		$	888,283		$	901,634		$	897,595

Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand	$	98,403		$	86,886		$	95,471		$	95,457		$	87,621
Interest-bearing demand		77,620			84,833			90,095			86,728			92,092
Savings		232,046			224,960			234,969			244,595			261,998
Time		283,959			295,699			326,633			342,204			330,666
Total deposits		692,028			692,378			747,168			768,984			772,377
Short-term borrowings		57,444			71,973			23,829			18,477			22,383
Long-term borrowings		9,770			9,762			9,754			9,745			9,737
Accrued interest payable		1,614			1,911			2,101			2,145			1,982
Other liabilities		11,853			12,489			13,073			13,275			6,025
Total liabilities		772,709			788,513			795,925			812,626			812,504

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			13,806
Common stock, $1 par value; 75,000,000 authorized shares; 1,382,609 and 1,372,642 issued shares; 1,356,247 and 1,358,473 outstanding shares at March 31, 2025 and December 31, 2024, respectively. (1)		1,383			1,372			1,372			1,372			1,369
Capital surplus		181,801			181,708			181,603			181,486			181,380
Accumulated deficit		(99,167	)		(99,487	)		(100,297	)		(101,373	)		(105,157	)
Accumulated other comprehensive income (loss), net		(3,939	)		(5,098	)		(3,592	)		(5,749	)		(5,773	)
Treasury stock, 27,084 shares on March 31, 2025 and 14,791 shares December 31, 2024 (2)		(769	)		(534	)		(534	)		(534	)		(534	)
Total stockholders' equity		79,309			77,961			92,358			89,008			85,091
Total liabilities and stockholders' equity	$	852,018		$	866,474		$	888,283		$	901,634		$	897,595

(1) Both issued and outstanding shares as stated here exclude 51,684 shares and 42,259 shares of unvested restricted stock awards at March 31, 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															3 Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,			March 31,			March 31,
	2025			2024			2024			2024			2024			2025			2024
	(Dollars in thousands)

Interest Income
Loans	$	9,623		$	9,999		$	10,573		$	10,582		$	10,394		$	9,623		$	10,394
Loans held for sale		137			215			300			213			142			137			142
Securities		1,150			1,151			1,183			1,217			1,231			1,150			1,231
Other investments		31			43			227			40			34			31			34
Total interest income		10,941			11,408			12,283			12,052			11,801			10,941			11,801

Interest Expense
Deposits		5,029			5,638			6,354			6,466			6,227			5,029			6,227
Short-term borrowings		504			500			232			310			493			504			493
Long-term borrowings		119			121			121			121			120			119			120
Total interest expense		5,652			6,259			6,707			6,897			6,840			5,652			6,840
Net interest income		5,289			5,149			5,576			5,155			4,961			5,289			4,961
Provision for (reversal of) credit losses		42			(332	)		(113	)		10			(28	)		42			(28	)
Net interest income after provision for
(reversal of) credit losses		5,247			5,481			5,689			5,145			4,989			5,247			4,989

Noninterest Income
Deposit service charges		59			55			63			67			66			59			66
Other service fees		(9	)		(5	)		(5	)		1			(5	)		(9	)		(5	)
Mortgage banking revenue, net		1,140			1,564			2,264			2,166			1,209			1,140			1,209
Other income		177			192			150			273			163			177			163
Net gains on sale of securities available for sale		0			0			0			0			0			0			0
Unrealized gains (losses) recognized on equity securities		36			(71	)		78			(14	)		(18	)		36			(18	)
Net gains (loss) on sale of SBA loans		161			0			420			0			202			161			202
Net gains on sale of assets and (writedowns)		(12	)		(11	)		(73	)		4,411			10			(12	)		10
Total noninterest income		1,552			1,724			2,897			6,904			1,627			1,552			1,627

Noninterest Expense
Compensation and employee benefits		4,066			4,344			4,852			4,700			4,289			4,066			4,289
Equipment		559			467			504			457			462			559			462
Occupancy and premises		549			500			495			391			436			549			436
Data Processing		221			220			243			208			212			221			212
Federal deposit insurance		129			144			182			219			199			129			199
Professional services		278			240			254			219			199			278			199
Telephone and data communication		52			74			51			51			56			52			56
Insurance		64			71			78			80			81			64			81
Other expense		455			618			504			579			487			455			487
Total noninterest expense		6,373			6,678			7,163			6,904			6,421			6,373			6,421
Income from operations
before income taxes		426			527			1,423			5,145			195			426			195
Income tax expense		105			123			347			1,361			17			105			17
Net income (loss)		321			404			1,076			3,784			178			321			178
Preferred stock dividend		0			0			0			0			0			0			0
Discount from repurchase of preferred stock		0			406			0			0			0			0			0
Net income (loss) allocated to
common stockholders	$	321		$	810		$	1,076		$	3,784		$	178		$	321		$	178

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