BROOKFIELD, Wis., Jan. 24, 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 year ending December 31, 2024. Earnings for the year are up $4.6 million compared to 2023, the Company redeemed the remainder of its Preferred Stock during the fourth quarter, the net interest margin has improved from the last quarter of 2023 and the first quarter of 2024, and the Mortgage Division had its best year since 2021.
Net income allocated to common shareholders for the year was $5.8 million, or $4.32 basic and $3.38 diluted earnings per share, compared to $0.9 million, or $0.66 basic and $0.49 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 year ended December 31, 2024, was $2.5 million, or $1.87 basic and $1.46 diluted earnings per share.
Financial highlights for the quarter and year include:
Net interest margins (NIM) have generally trended up over the course the year. The Company’s NIM also showed an upward trend through most of 2024, starting at 2.29% in the first quarter and climbing to 2.55% in the third quarter. The NIM had a slight decline to 2.44% in the fourth quarter, mainly due to an accrued interest charge-off related to a $2.5 million non-accrual loan and volatility in the net interest margin caused by Fed rate changes. Net interest income declined in 2024 primarily due to cost of funds pressure compared to 2023, with the cost of interest-bearing liabilities up 102 basis points for the year due to the high level of bank deposit rates and competition.
Loan portfolio balances decreased $25 million over the year due to high loan rates and the Company’s balance sheet management strategy in support of the redemption of the remaining preferred stock. With the preferred stock redemptions completed we plan to resume growing the loan portfolio in 2025. Deposits decreased $35 million for the year due primarily to declines in our money market savings accounts reflecting rate cuts in the latter half of the year and increased demand for time deposits.
As of December 31, 2024, non-performing assets, OREO, 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 0.98% and 0.81%, respectively, compared to 0.90% and 0.50%, respectively, on December 31, 2023. The primary reason for the increase in the ratios over the time-period is due to three non-accrual credit relationships with borrowers in or related to the transportation industry. One of the non-accrual loans is a loan that was reported as 90 plus days and still accruing in the third quarter of 2024.
As of December 31, 2024, the allowance for credit losses on loans (“ACLL”) to loans was 1.26% compared to 1.27% on December 31, 2023. Over the course of 2023 and 2024, forecasts for gross domestic product and unemployment generally improved while certain qualitative factors related to loan performance deteriorated, as reflected in the increase in our asset quality ratios discussed above.
For the year ending December 31, 2024, Banking Division net income was $6.5 million, which is up from $2.3 million for the same period in 2023. Excluding the sale-leaseback gain on sale, Banking Division net income for 2024 was $3.2 million. Improvements were the result of cost save initiatives, improving the trend in the net interest margin over the course of the year, and adjustments in the provision for credit losses on loans. The Mortgage Division improved to a $0.1 million net loss compared to $0.7 million net loss in 2023, the result of cost save initiatives while maintaining loan production levels similar to those in 2023, despite the continued challenges of high mortgage rates and housing affordability.
Mr. J. Brian Chaffin, CIB Marine’s President and CEO, commented, “During 2024, we were able to improve our operating results, redeem the remaining preferred stock and commence improvements on NIM. Cost controls resulted in reduced staffing at the Mortgage Division and helped it turn out its best operating results over the last three years, in a very challenging operating environment. We also reduced our portfolio loan growth during 2024, but with the preferred stock redemption completed we have begun to rebuild our commercial client pipelines with a keen focus on net interest margin contributions and concentration risks. While recent federal funds rate reductions and a positively sloped yield curve are welcome, they can create some short term ‘bumpy’ outcomes for the NIM, an area of significant focus for us in 2024.”
He concluded, “We can’t overstate the significance of the final preferred stock redemption. We have simplified our capital structure and eliminated the potentially dilutive impact on our common stock, while improving our book value. Our focus for 2025 is earnings, efficiency and building a brighter future for the organization and its shareholders.”
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 nine 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
12 Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
2024
2024
2024
2024
2023
2024
2023
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income
$
11,408
$
12,283
$
12,052
$
11,801
$
11,328
$
47,544
$
39,069
Interest expense
6,259
6,707
6,897
6,840
6,190
26,703
17,614
Net interest income
5,149
5,576
5,155
4,961
5,138
20,841
21,455
Provision for (reversal of) credit losses
(332)
(113)
10
(28)
135
(463)
(92)
Net interest income after provision for (reversal of) credit losses
5,481
5,689
5,145
4,989
5,003
21,304
21,547
Noninterest income (1)
1,724
2,897
6,904
1,627
1,824
13,152
8,900
Noninterest expense
6,678
7,163
6,904
6,421
6,669
27,166
27,938
Income before income taxes
527
1,423
5,145
195
158
7,290
2,509
Income tax expense
123
347
1,361
17
1,050
1,848
1,629
Net income (loss)
$
404
$
1,076
$
3,784
$
178
$
(892)
$
5,442
$
880
Common Share Data:
Basic net income (loss) per share (2)
$
0.60
$
0.79
$
2.79
$
0.13
$
(0.67)
$
4.32
$
0.66
Diluted net income (loss) per share (2)
0.54
0.59
2.06
0.10
(0.67)
3.38
0.49
Dividend
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tangible book value per share (3)
57.37
57.80
55.36
52.59
53.35
57.37
53.35
Book value per share (3)
57.42
56.06
53.61
50.84
51.58
57.42
51.58
Weighted average shares outstanding – basic
1,357,737
1,357,259
1,356,255
1,341,181
1,334,163
1,352,585
1,324,131
Weighted average shares outstanding – diluted
1,507,344
1,833,586
1,833,881
1,820,498
1,813,207
1,729,521
1,811,975
Financial Condition Data:
Total assets
$
866,474
$
888,283
$
901,634
$
897,595
$
899,060
$
866,474
$
899,060
Loans
697,093
707,310
719,129
736,019
722,084
697,093
722,084
Allowance for credit losses on loans
(8,790)
(8,973)
(9,083)
(9,087)
(9,136)
(8,790)
(9,136)
Investment securities
120,339
120,349
123,814
119,300
131,529
120,339
131,529
Deposits
692,378
747,168
768,984
772,377
727,565
692,378
727,565
Borrowings
81,735
33,583
28,222
32,120
76,956
81,735
76,956
Stockholders’ equity
77,961
92,358
89,008
85,091
85,075
77,961
85,075
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (4)
2.44%
2.55%
2.38%
2.29%
2.41%
2.42%
2.72%
Net interest spread (5)
1.74%
1.80%
1.71%
1.63%
1.79%
1.72%
2.18%
Noninterest income to average assets (6)
0.82%
1.25%
3.09%
0.73%
0.78%
1.48%
1.08%
Noninterest expense to average assets
3.06%
3.17%
3.09%
2.87%
3.00%
3.05%
3.40%
Efficiency ratio (7)
96.17%
85.32%
57.19%
97.20%
97.13%
79.86%
92.13%
Earnings (loss) on average assets (8)
0.19%
0.48%
1.69%
0.08%
-0.40
0.61%
0.11%
Earnings (loss) on average equity (9)
1.94%
4.71%
17.92%
0.84%
-4.21
6.33%
1.05%
Asset Quality Ratios:
Nonaccrual loans to loans (10)
0.81%
0.44%
0.47%
0.48%
0.50%
0.81%
0.50%
Nonaccrual loans, modified loans to borrowers experiencing financial difficulty, loans 90 days or more past due and still accruing to total loans
1.19%
1.62%
1.38%
1.04%
1.07%
1.19%
1.07%
Nonaccrual loans, OREO, modified loans to borrowers experiencing financial difficulty, loans 90 days or more past due and still accruing to total assets
0.98%
1.32%
1.14%
0.89%
0.90%
0.98%
0.90%
Allowance for credit losses on loans to total loans (10)
1.26%
1.27%
1.26%
1.23%
1.27%
1.26%
1.27%
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)
105.95%
82.53%
91.24%
118.77%
118.59%
105.95%
118.59%
Net charge-offs (recoveries) annualized to average loans (10)
-0.01%
-0.01%
0.03%
0.03%
0.01%
0.01%
-0.01%
Capital Ratios:
Total equity to total assets
9.00%
10.40%
9.87%
9.48%
9.46%
9.00%
9.46%
Total risk-based capital ratio
13.02%
14.54%
13.90%
13.07%
13.24%
13.02%
13.24%
Tier 1 risk-based capital ratio
10.33%
11.89%
11.27%
10.48%
10.62%
10.33%
10.62%
Leverage capital ratio
8.14%
9.30%
8.93%
8.50%
8.62%
8.14%
8.62%
Other Data:
Number of employees (full-time equivalent)
165
170
172
177
193
165
193
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 and year 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.
CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
(Dollars in Thousands, Except Shares)
Assets
Cash and due from banks
$
6,748
$
13,814
$
10,690
$
7,727
$
9,491
Reverse repurchase agreements
-
-
-
-
-
Securities available for sale
118,206
118,145
121,687
117,160
129,370
Equity securities at fair value
2,133
2,204
2,127
2,140
2,159
Loans held for sale
13,291
19,472
17,897
8,048
9,209
Loans
697,093
707,310
719,129
736,019
722,084
Allowance for credit losses on loans
(8,790)
(8,973)
(9,083)
(9,087)
(9,136)
Net loans
688,303
698,337
710,046
726,932
712,948
Federal Home Loan Bank Stock
2,607
2,238
2,238
2,328
2,709
Premises and equipment, net
1,570
1,526
1,569
3,550
3,602
Accrued interest receivable
2,651
2,926
3,230
3,271
2,983
Deferred tax assets, net
12,955
12,796
14,840
14,849
14,753
Other real estate owned, net
200
211
283
375
375
Bank owned life insurance
6,437
6,388
6,340
6,291
6,247
Goodwill and other intangible assets
64
64
64
64
64
Other assets
11,309
10,162
10,623
4,860
5,150
Total assets
$
866,474
$
888,283
$
901,634
$
897,595
$
899,060
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand
$
86,886
$
95,471
$
95,457
$
87,621
$
89,025
Interest-bearing demand
84,833
90,095
86,728
92,092
90,232
Savings
224,960
234,969
244,595
261,998
256,059
Time
295,699
326,633
342,204
330,666
292,249
Total deposits
692,378
747,168
768,984
772,377
727,565
Short-term borrowings
71,973
23,829
18,477
22,383
67,227
Long-term borrowings
9,762
9,754
9,745
9,737
9,729
Accrued interest payable
1,911
2,101
2,145
1,982
1,883
Other liabilities
12,489
13,073
13,275
6,025
7,581
Total liabilities
788,513
795,925
812,626
812,504
813,985
Stockholders’ Equity
Preferred stock, $1 par value; 5,000,000 authorized shares at 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
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 December 31, 2024 and December 31, 2023, respectively. (1)
1,372
1,372
1,372
1,369
1,349
Capital surplus
181,708
181,603
181,486
181,380
181,282
Accumulated deficit
(99,487)
(100,297)
(101,373)
(105,157)
(105,335)
Accumulated other comprehensive income (loss), net
(5,098)
(3,592)
(5,749)
(5,773)
(5,493)
Treasury stock, 14,791 shares on December 31, 2024 and December 31, 2023 (2)
(534)
(534)
(534)
(534)
(534)
Total stockholders’ equity
77,961
92,358
89,008
85,091
85,075
Total liabilities and stockholders’ equity
$
866,474
$
888,283
$
901,634
$
897,595
$
899,060
(1) Both issued and outstanding shares as stated here exclude 42,259 shares and 49,308 shares of unvested restricted stock awards at December 31, 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
12 Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
December 31,
December 31,
2024
2024
2024
2024
2023
2024
2023
(Dollars in thousands)
Interest Income
Loans
$
9,999
$
10,573
$
10,582
$
10,394
$
9,752
$
41,548
$
33,533
Loans held for sale
215
300
213
142
200
870
666
Securities
1,151
1,183
1,217
1,231
1,330
4,782
4,478
Other investments
43
227
40
34
46
344
392
Total interest income
11,408
12,283
12,052
11,801
11,328
47,544
39,069
Interest Expense
Deposits
5,638
6,354
6,466
6,227
5,071
24,685
14,429
Short-term borrowings
500
232
310
493
998
1,535
2,702
Long-term borrowings
121
121
121
120
121
483
483
Total interest expense
6,259
6,707
6,897
6,840
6,190
26,703
17,614
Net interest income
5,149
5,576
5,155
4,961
5,138
20,841
21,455
Provision for (reversal of) credit losses
(332)
(113)
10
(28)
135
(463)
(92)
Net interest income after provision for (reversal of) credit losses
5,481
5,689
5,145
4,989
5,003
21,304
21,547
Noninterest Income
Deposit service charges
55
63
67
66
74
251
330
Other service fees
(5)
(5)
1
(5)
3
(14)
36
Mortgage banking revenue, net
1,564
2,264
2,166
1,209
1,397
7,203
6,025
Other income
192
150
273
163
165
778
578
Net gains on sale of securities available for sale
0
0
0
0
0
0
0
Unrealized gains (losses) recognized on equity securities
(71)
78
(14)
(18)
96
(25)
30
Net gains (loss) on sale of SBA loans
0
420
0
202
0
622
151
Net gains on sale of assets and (writedowns)
(11)
(73)
4,411
10
89
4,337
1,750
Total noninterest income
1,724
2,897
6,904
1,627
1,824
13,152
8,900
Noninterest Expense
Compensation and employee benefits
4,344
4,852
4,700
4,289
4,369
18,185
18,651
Equipment
467
504
457
462
493
1,890
1,956
Occupancy and premises
500
495
391
436
415
1,822
1,747
Data Processing
220
243
208
212
224
883
889
Federal deposit insurance
144
182
219
199
170
744
530
Professional services
240
254
219
199
243
912
1,109
Telephone and data communication
74
51
51
56
66
232
240
Insurance
71
78
80
81
79
310
317
Other expense
618
504
579
487
610
2,188
2,499
Total noninterest expense
6,678
7,163
6,904
6,421
6,669
27,166
27,938
Income from operations before income taxes
527
1,423
5,145
195
158
7,290
2,509
Income tax expense
123
347
1,361
17
1,050
1,848
1,629
Net income (loss)
404
1,076
3,784
178
(892)
5,442
880
Preferred stock dividend
0
0
0
0
0
0
0
Discount from repurchase of preferred stock
406
0
0
0
0
406
0
Net income (loss) allocated to common stockholders
