WAUKESHA, WI--(Marketwired - April 11, 2016) - CIB Marine Bancshares, Inc. (the "Company" or "CIBM") (
Select highlights for the quarter include:
- Return on average assets for the first quarter of 2016 is 0.66%, compared to -0.57% for the fourth quarter of 2015 and 0.02% for the first quarter of 2015.
- Net income for subsidiary CIBM Bank was $662,000 -- reflecting solid improvements in net interest income and non-interest income due to the growth in loans and a growing mortgage division.
- Total loans are up to $470.4 million at quarter end, representing a 5.7% increase from year-end 2015 and 21.7% increase from the first quarter of 2015.
- Net interest income of $4.4 million for the quarter is an increase of $0.2 million from the fourth quarter of 2015 and $0.6 million from the first quarter of 2015.
- Non-interest income of $2.1 million for the quarter is an increase of $1.5 million from the fourth quarter of 2015 and $0.7 million from the first quarter of 2015; reflecting a doubling of the mortgage lender force, seasonal factors, and $430,000 for the quarter in net gains from sale of OREO assets net of other write-downs.
- Non-performing assets to total assets at quarter end was 1.96%, compared to 2.25% from year-end 2015 and 2.95% from the first quarter of 2015.
- Net charge-offs to average loans for the quarter was -0.10% net recovery, compared to 0.03% net charge-off for the fourth quarter of 2015 and 0.06% net charge-off for the first quarter of 2015.
- The first quarter results do not yet reflect the $1.1 million per annum cost savings announced in the February 4, 2016 Shareholder Letter, the effects of which will be more directly seen in the second half of the year.
"CIB Marine's performance for the quarter was very strong and reflects achievements in our core banking fronts, consistent with our strategy for growing the Company," said Mr. J. Brian Chaffin, President and Chief Executive Officer of CIB Marine Bancshares, Inc. "Quarterly earnings were up nicely as we continue to focus on revenue and profit goals. Performance was solid across the commercial and mortgage sales platforms with retail providing substantial new deposits to fund new asset growth."
Mr. Chaffin added, "At the same time, our operational areas of the bank were very active assimilating the new mortgage loan officers added at the end of last year, developing our SBA related business activities, and implementing the cost reduction strategy we announced previously that will provide a cost savings of $1.1 million per annum when fully implemented later in the year. As we look forward, there is no let-up on our part in growing our client relationship-based banking businesses along our corporate, mortgage and retail lines. We continue to pursue substantial targets across all business lines to deliver results for our shareholders and clients, but we are pleased with this quarter's performance as an indicator of the type of core banking results we plan on delivering. Loan pipelines continue to be developed, local market development for mortgages is ongoing, and we have hired dedicated SBA lending staff."
Mr. Chaffin concluded, "We did get a boost from net gains on sales of assets net of write-downs of about $430,000 as a result of certain collection-related and other activities. Net of those gains, net income was $522,000 for the quarter reflecting both a higher amount and a better quality of earnings, which are the direct result of the strategic accomplishments of the Company and the progress it has made in growing its business."
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates 11 banking offices in Illinois, Wisconsin and Indiana. 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, 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 | Three Months Ended | |||||||||||||||||||||||
|
March 31,
2016 |
December 31, 2015 | September 30, 2015 |
June 30,
2015 |
March 31,
2015 |
March 31,
2016 |
March 31,
2015 |
||||||||||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||||||||||||||||
| Selected Statement of Operations Data | ||||||||||||||||||||||||
| Interest and dividend income | $ | 5,176 | $ | 4,874 | $ | 4,657 | $ | 4,539 | $ | 4,460 | $ | 5,176 | $ | 4,460 | ||||||||||
| Interest expense | 735 | 654 | 595 | 557 | 571 | 735 | 571 | |||||||||||||||||
| Net interest income | 4,441 | 4,220 | 4,062 | 3,982 | 3,889 | 4,441 | 3,889 | |||||||||||||||||
| Provision for (reversal of) loan losses | 61 | 215 | (337 | ) | 97 | 86 | 61 | 86 | ||||||||||||||||
| Net interest income after provision for (reversal of) loan losses |
4,380 |
4,005 |
4,399 |
3,885 |
3,803 |
4,380 |
3,803 |
|||||||||||||||||
| Noninterest income (1) | 2,053 | 592 | 1,022 | 1,436 | 1,376 | 2,053 | 1,376 | |||||||||||||||||
| Noninterest expense | 5,481 | 5,386 | 5,114 | 5,464 | 5,153 | 5,481 | 5,153 | |||||||||||||||||
| Income (loss) before income taxes | 952 | (789 | ) | 307 | (143 | ) | 26 | 952 | 26 | |||||||||||||||
| Income tax expense | 0 | 6 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
| Net income (loss) | $ | 952 | $ | (795 | ) | $ | 307 | $ | (143 | ) | $ | 26 | $ | 952 | $ | 26 | ||||||||
| Common Share Data | ||||||||||||||||||||||||
| Basic net income (loss) per share | $ | 0.05 | $ | (0.04 | ) | $ | 0.02 | $ | (0.01 | ) | $ | 0.00 | $ | 0.05 | $ | 0.00 | ||||||||
| Diluted net income (loss) per share | 0.03 | (0.04 | ) | 0.01 | (0.01 | ) | 0.00 | 0.03 | 0.00 | |||||||||||||||
| Dividend | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
| Tangible book value per share (2) | 0.90 | 0.79 | 0.90 | 0.89 | 0.93 | 0.90 | 0.93 | |||||||||||||||||
| Book value per share (2) | 0.41 | 0.31 | 0.42 | 0.41 | 0.45 | 0.41 | 0.45 | |||||||||||||||||
| Weighted average shares outstanding - basic | 18,127,892 | 18,127,892 | 18,127,892 | 18,127,892 | 18,127,892 | 18,127,892 | 18,127,892 | |||||||||||||||||
| Weighted average shares outstanding - diluted | 35,631,892 | 18,127,892 | 35,631,892 | 18,127,892 | 35,631,892 | 35,631,892 | 35,631,892 | |||||||||||||||||
| Financial Condition Data | ||||||||||||||||||||||||
| Total assets | $ | 597,089 | $ | 571,233 | $ | 531,744 | $ | 525,513 | $ | 522,346 | $ | 597,089 | $ | 522,346 | ||||||||||
| Loans | 470,424 | 445,050 | 414,643 | 394,319 | 386,588 | 470,424 | 386,588 | |||||||||||||||||
| Allowance for loan losses | (8,235 | ) | (8,064 | ) | (7,883 | ) | (7,670 | ) | (7,586 | ) | (8,235 | ) | (7,586 | ) | ||||||||||
| Investment securities | 97,474 |
94,702 | 92,674 | 90,912 |
96,696 |
97,474 |
96,696 |
|||||||||||||||||
| Deposits | 467,334 | 443,571 |
415,185 | 402,858 | 407,247 |
467,334 |
407,247 |
|||||||||||||||||
| Borrowings | 57,929 | 58,883 | 45,396 | 52,288 | 43,753 | 57,929 | 43,753 | |||||||||||||||||
| Stockholders' equity | 67,475 | 65,586 | 67,616 | 67,466 | 68,068 | 67,475 | 68,068 | |||||||||||||||||
| Financial Ratios and Other Data | ||||||||||||||||||||||||
| Performance Ratios: | ||||||||||||||||||||||||
| Net interest margin (3) | 3.15 | % | 3.14 | % | 3.18 | % | 3.18 | % | 3.22 | % | 3.15 | % | 3.22 | % | ||||||||||
| Net interest spread (4) | 3.00 | % | 2.98 | % | 3.03 | % | 3.03 | % | 3.05 | % | 3.00 | % | 3.05 | % | ||||||||||
| Noninterest income to average assets (5) | 1.42 | % | 0.43 | % | 0.77 | % | 1.11 | % | 1.09 | % | 1.42 | % | 1.09 | % | ||||||||||
| Noninterest expense to average assets | 3.78 | % | 3.89 | % | 3.87 | % | 4.22 | % | 4.13 | % | 3.78 | % | 4.13 | % | ||||||||||
| Efficiency ratio (6) | 84.40 | % | 111.93 | % | 100.59 | % | 100.85 | % | 98.12 | % | 84.40 | % | 98.12 | % | ||||||||||
| Earnings (loss) on average assets (7) | 0.66 | % | -0.57 | % | 0.23 | % | -0.11 | % | 0.02 | % | 0.66 | % | 0.02 | % | ||||||||||
| Earnings (loss) on average equity (8) | 5.75 | % | -4.65 | % | 1.79 | % | -0.84 | % | 0.15 | % | 5.75 | % | 0.15 | % | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||
| Nonaccrual loans to loans (9) | 0.81 | % | 0.70 | % | 0.75 | % | 1.39 | % | 1.55 | % | 0.81 | % | 1.55 | % | ||||||||||
| Nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing to total loans (9) |
1.67 |
% |
1.96 |
% |
1.68 |
% |
2.44 |
% |
2.63 |
% |
1.67 |
% |
2.63 |
% |
||||||||||
| Nonperforming assets, restructured loans and loans 90 days or more past due and still accruing to total assets (9) |
1.96 |
% |
2.25 |
% |
2.20 |
% |
2.83 |
% |
2.95 |
% |
1.96 |
% |
2.95 |
% |
||||||||||
| Allowance for loan losses to total loans | 1.75 | % | 1.81 | % | 1.90 | % | 1.95 | % | 1.96 | % | 1.75 | % | 1.96 | % | ||||||||||
| Allowance for loan losses to nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing (9) |
105.00 |
% |
92.25 |
% |
113.03 |
% |
79.70 |
% |
74.66 |
% |
105.00 |
% |
74.66 |
% |
||||||||||
| Net charge-offs (recoveries) annualized to average loans | ||||||||||||||||||||||||
| -0.10 | % | 0.03 | % | -0.54 | % | 0.01 | % | 0.06 | % | -0.10 | % | 0.06 | % | |||||||||||
| Capital Ratios: | ||||||||||||||||||||||||
| Total equity to total assets | 11.30 | % | 11.48 | % | 12.72 | % | 12.84 | % | 13.03 | % | 11.30 | % | 13.03 | % | ||||||||||
| Total risk-based capital ratio | 15.18 | % | 15.45 | % | 16.57 | % | 16.86 | % | 16.94 | % | 15.18 | % | 16.94 | % | ||||||||||
| Tier 1 risk-based capital ratio | 13.92 | % | 14.20 | % | 15.31 | % | 15.60 | % | 15.68 | % | 13.92 | % | 15.68 | % | ||||||||||
| Leverage capital ratio | 11.72 | % | 12.27 | % | 13.01 | % | 13.09 | % | 13.45 | % | 11.72 | % | 13.45 | % | ||||||||||
| Other Data: | ||||||||||||||||||||||||
| Number of employees (full-time equivalent) | 180 | 173 | 159 | 158 | 153 | 180 | 153 | |||||||||||||||||
| Number of banking facilities | 11 | 11 | 11 | 11 | 10 | 11 | 10 | |||||||||||||||||
| (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. | |||||||||||||||||
| Consolidated Balance Sheets (unaudited) | |||||||||||||||||
|
March 31,
2016 |
December 31, 2015 |
September 30, 2015 |
June 30,
2015 |
March 31,
2015 |
|||||||||||||
| (Dollars in thousands, except share data) | |||||||||||||||||
| Assets | |||||||||||||||||
| Cash and due from banks | $ | 9,136 | $ | 9,170 | $ | 8,037 | $ | 9,407 | $ | 6,694 | |||||||
| Securities available for sale | 97,474 | 94,702 | 92,674 | 90,912 | 96,696 | ||||||||||||
| Loans held for sale | 10,176 | 12,275 | 5,157 | 18,440 | 20,359 | ||||||||||||
| Loans | 470,424 | 445,050 | 414,643 | 394,319 | 386,588 | ||||||||||||
| Allowance for loan losses | (8,235 | ) | (8,064 | ) | (7,883 | ) | (7,670 | ) | (7,586 | ) | |||||||
| Net loans | 462,189 | 436,986 | 406,760 | 386,649 | 379,002 | ||||||||||||
| Federal Home Loan Bank Stock | 2,170 | 2,170 | 2,170 | 2,170 | 2,170 | ||||||||||||
| Premises and equipment, net | 4,716 | 4,771 | 4,830 | 4,826 | 4,790 | ||||||||||||
| Accrued interest receivable | 1,468 | 1,296 | 1,471 | 1,245 | 1,412 | ||||||||||||
| Other real estate owned, net | 3,859 | 4,126 | 4,698 | 5,229 | 5,259 | ||||||||||||
| Bank owned life insurance | 4,310 | 4,285 | 4,259 | 4,234 | 4,209 | ||||||||||||
| Goodwill and other intangible assets | 237 | 243 | 248 | 254 | 260 | ||||||||||||
| Other assets | 1,354 | 1,209 | 1,440 | 2,147 | 1,495 | ||||||||||||
| Total Assets | $ | 597,089 | $ | 571,233 | $ | 531,744 | $ | 525,513 | $ | 522,346 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing demand | $ | 74,564 | $ | 77,580 | $ | 70,644 | $ | 74,514 | $ | 75,121 | |||||||
| Interest-bearing demand | 32,096 | 33,192 | 30,320 | 29,909 | 33,149 | ||||||||||||
| Savings | 175,576 | 162,663 | 153,134 | 155,364 | 159,105 | ||||||||||||
| Time | 185,098 | 170,136 | 161,087 | 143,071 | 139,872 | ||||||||||||
| Total deposits | 467,334 | 443,571 | 415,185 | 402,858 | 407,247 | ||||||||||||
| Short-term borrowings | 57,929 | 58,883 | 45,396 | 52,288 | 43,753 | ||||||||||||
| Accrued interest payable | 339 | 321 | 305 | 272 | 271 | ||||||||||||
| Other liabilities | 4,012 | 2,872 | 3,242 | 2,629 | 3,007 | ||||||||||||
| Total liabilities | 529,614 | 505,647 | 464,128 | 458,047 | 454,278 | ||||||||||||
| Stockholders' Equity | |||||||||||||||||
| Preferred stock, $1 par value; 5,000,000 authorized shares; 7% fixed rate noncumulative perpetual issued-55,624 shares of series A and 4,376 shares of series B; convertible; aggregate liquidation preference- $60,000 | 51,000 | 51,000 | 51,000 | 51,000 | 51,000 | ||||||||||||
| Common stock, $1 par value; 50,000,000 authorized shares; 18,346,391 issued shares; 18,135,344 outstanding shares | 18,346 | 18,346 | 18,346 | 18,346 | 18,346 | ||||||||||||
| Capital surplus | 158,493 | 158,493 | 158,493 | 158,493 | 158,493 | ||||||||||||
| Accumulated deficit | (158,636 | ) | (159,588 | ) | (158,793 | ) | (159,100 | ) | (158,957 | ) | |||||||
| Accumulated other comprehensive loss, net | (1,199 | ) | (2,136 | ) | (901 | ) | (744 | ) | (285 | ) | |||||||
| Treasury stock 218,499 shares at cost | (529 | ) | (529 | ) | (529 | ) | (529 | ) | (529 | ) | |||||||
| Total stockholders' equity | 67,475 | 65,586 | 67,616 | 67,466 | 68,068 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 597,089 | $ | 571,233 | $ | 531,744 | $ | 525,513 | $ | 522,346 | |||||||
| CIB MARINE BANCSHARES, INC. | ||||||||||||||||||||||||||||
| Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||||||||||
| At or for the | ||||||||||||||||||||||||||||
| Quarters Ended | Three Months Ended | |||||||||||||||||||||||||||
| |
March 31,
2016 |
December 31, 2015 |
September 30, 2015 |
June 30,
2015 |
March 31,
2015 |
March 31,
2016 |
March 31,
2015 |
|||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||||||||
| Loans | $ | 4,572 | $ | 4,248 | $ | 4,044 | $ | 3,850 | $ | 3,830 | $ | 4,572 | $ | 3,830 | ||||||||||||||
| Loans held for sale | 83 | 77 | 58 | 134 | 72 | 83 | 72 | |||||||||||||||||||||
| Securities | 517 | 546 | 553 | 552 | 555 | 517 | 555 | |||||||||||||||||||||
| Other investments | 4 | 3 | 2 | 3 | 3 | 4 | 3 | |||||||||||||||||||||
| Total interest income | 5,176 | 4,874 | 4,657 | 4,539 | 4,460 | 5,176 | 4,460 | |||||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||
| Deposits | 705 | 640 | 583 | 542 | 562 | 705 | 562 | |||||||||||||||||||||
| Short-term borrowings | 30 | 14 | 12 | 15 | 9 | 30 | 9 | |||||||||||||||||||||
| Total interest expense | 735 | 654 | 595 | 557 | 571 | 735 | 571 | |||||||||||||||||||||
| Net interest income | 4,441 | 4,220 | 4,062 | 3,982 | 3,889 | 4,441 | 3,889 | |||||||||||||||||||||
| Provision for (reversal of) loan losses | 61 | 215 | (337 | ) | 97 | 86 | 61 | 86 | ||||||||||||||||||||
| Net interest income after provision for (reversal of) loan losses for (reversal of) loan losses |
4,380 |
4,005 |
4,399 |
3,885 |
3,803 |
4,380 |
3,803 |
|||||||||||||||||||||
| Noninterest Income | ||||||||||||||||||||||||||||
| Deposit service charges | 103 | 113 | 119 | 110 | 108 | 103 | 108 | |||||||||||||||||||||
| Other service fees | 67 | 60 | 73 | 54 | 49 | 67 | 49 | |||||||||||||||||||||
| Mortgage Banking revenue, net | 1,336 | 545 | 805 | 1,253 | 1,121 | 1,336 | 1,121 | |||||||||||||||||||||
| Other income | 117 | 104 | 102 | 50 | 188 | 117 | 188 | |||||||||||||||||||||
| Net gains on sale of securities | 0 | 0 | 0 | 0 | 13 | 0 | 13 | |||||||||||||||||||||
| Net gains (losses) on sale of assets and (writedowns) |
430 |
(230 |
) |
(77 |
) |
(31 |
) |
(103 |
) |
430 |
(103 |
) |
||||||||||||||||
| Total noninterest income | 2,053 | 592 | 1,022 | 1,436 | 1,376 | 2,053 | 1,376 | |||||||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||||||||||
| Compensation and employee benefits | 3,624 | 3,419 | 3,195 | 3,443 | 3,458 | 3,624 | 3,458 | |||||||||||||||||||||
| Equipment | 273 | 277 | 262 | 261 | 268 | 273 | 268 | |||||||||||||||||||||
| Occupancy and premises | 435 | 396 | 404 | 376 | 400 | 435 | 400 | |||||||||||||||||||||
| Data Processing | 154 | 158 | 173 | 144 | 146 | 154 | 146 | |||||||||||||||||||||
| Federal deposit insurance | 106 | 104 | 110 | 106 | 105 | 106 | 105 | |||||||||||||||||||||
| Professional services | 249 | 228 | 277 | 284 | 153 | 249 | 153 | |||||||||||||||||||||
| Telephone and data communication | 109 | 113 | 86 | 103 | 109 | 109 | 109 | |||||||||||||||||||||
| Insurance | 54 | 53 | 55 | 56 | 57 | 54 | 57 | |||||||||||||||||||||
| Other expense | 477 | 638 | 552 | 691 | 457 | 477 | 457 | |||||||||||||||||||||
| Total noninterest expense | 5,481 | 5,386 | 5,114 | 5,464 | 5,153 | 5,481 | 5,153 | |||||||||||||||||||||
| Income (loss) from operations before income taxes | 952 | (789 | ) | 307 | (143 | ) | 26 | 952 | 26 | |||||||||||||||||||
| Income tax expense | 0 | 6 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Net income (loss) | 952 | (795 | ) | 307 | (143 | ) | 26 | 952 | 26 | |||||||||||||||||||
| Preferred stock dividend | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Net income (loss) allocated to common stockholders |
$ |
952 |
$ |
(795 |
) |
$ |
307 |
$ |
(143 |
) |
$ |
26 |
$ |
952 |
$ |
26 |
||||||||||||
Contact Information:
FOR INFORMATION CONTACT:
J. Brian Chaffin
President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com