CIB Marine Bancshares, Inc. Announces 2018 First Quarter Results

 | Source: CIBM Bank CIBM Bank

WAUKESHA, Wis., April 13, 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 first quarter of 2018. Pre-tax net income for the quarter ending March 31, 2018, was $1.0 million compared to $0.9 million for March 31, 2017. Pre-tax basic net income per share was $0.05 and $0.03 on a diluted basis for the quarter ending March 31, 2018, compared to $0.05 and $0.02, respectively, for the same period ending March 31, 2017. 

A summary of financial results for the quarter is attached. Select highlights include: 

  • Return on average assets on a pre-tax basis was 0.62% for the quarter ending March 31, 2018, compared to 0.56% for the same period in 2017.
  • Book and tangible book value per share of common stock improved to $2.06 and $2.54, respectively, for March 31, 2018, compared to $2.04 and $2.53 at December 31, 2017. 
  • Pre-tax net income for subsidiary CIBM Bank was $1.1 million for the quarter, the same as in 2017. Net interest income and non-interest income were higher in 2018, but offset by higher non-interest expenses. 
  • The net interest margin was reported at 3.20% for the quarter ending March 31, 2018, compared to 3.02% for the same quarter of 2017. Net interest income was up $0.1 million compared to the same period of 2017.
  • Non-interest income of $1.9 million for the quarter ending March 31, 2018, was roughly the same as the same period in 2017, reflecting higher net mortgage banking revenues and lower gains on sale of SBA loans. 
  • Non-performing assets to total assets fell to 0.85% at March 31, 2018, from 1.13% at December 31, 2017, and 1.77% at March 31, 2017, due mostly to lower non-accrual loans.
  • Non-accrual loans to total loans declined to 0.19% at March 31, 2018, from 0.69% at December 31, 2017, and 1.32% at March 31, 2017, due to collection activity and improved performance in prior non-accrual loans. 

J. Brian Chaffin, CIB Marine’s President and CEO, commented, “We were able to improve pre-tax earnings in the first quarter of 2018 compared to the same period last year on improved net interest income and higher mortgage revenues.”

Mr. Chaffin added, “Our asset quality, reflected through our non-performing assets and non-accrual loan ratios, continued to improve and achieved new cyclical lows. Current lending markets reflect heightened price competition and term concessions. This explains, in part, our lower loan growth in 2017 and the first quarter of 2018. The Company continues to seek opportunities to add the right people in all our revenue producing areas to enhance growth in our main product and service lines.”

CIB Marine Bancshares, Inc. owns and operates CIBM Bank, and 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.

Notice that Preferred Dividend has not been declared: Pursuant to Sections 5.4(e)(v) and 5.5(e)(v) of the Company’s Articles of Incorporation, notice is hereby given that the Board of Directors of the Company has not declared a dividend on its Series A Preferred Stock or its Series B Convertible Preferred Stock for the period ended March 31, 2018, and, accordingly, no dividend will be paid to preferred shareholders for such Dividend Period.

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 3 Months Ended
  March 31,
 December 31,
 September 30,
 June 30,
 March 31, March 31,
 March 31,
  2018
 2017
 2017
 2017
 2017
 2018
 2017
  (Dollars in thousands, except share and per share data)
Selected Statement of Operations Data         
Interest and dividend income $6,009  $6,177  $6,056  $5,732  $5,562  $6,009  $5,562 
Interest expense  1,185   1,121   1,140   973   892   1,185   892 
Net interest income  4,824   5,056   4,916   4,759   4,670   4,824   4,670 
Provision for (reversal of) loan losses  (126)  (218)  149   47   228   (126)  228 
Net interest income after provision for         
(reversal of) loan losses  4,950   5,274   4,767   4,712   4,442   4,950   4,442 
Noninterest income (1)  1,871   2,015   2,257   2,611   1,847   1,871   1,847 
Noninterest expense  5,824   6,070   5,865   6,279   5,401   5,824   5,401 
Income before income taxes  997   1,219   1,159   1,044   888   997   888 
Income tax expense (benefit)  300   (22,689)  25   20   0   300   0 
Net income $697  $23,908  $1,134  $1,024  $888  $697  $888 
          
Common Share Data         
Basic net income per share $0.04  $1.32  $0.06  $0.06  $0.05  $0.04  $0.05 
Diluted net income per share  0.02   0.65   0.03   0.03   0.02   0.02   0.02 
Dividend  0   0   0   0   0   0   0 
Tangible book value per share (2)  2.54   2.53   1.23   1.16   1.08   2.54   1.08 
Book value per share (2)  2.06   2.04   0.75   0.68   0.60   2.06   0.60 
Weighted average shares outstanding - basic  18,161,989   18,161,989   18,161,989   18,153,029   18,127,892   18,161,989   18,127,892 
Weighted average shares outstanding - diluted  36,544,029   36,512,804   36,512,804   36,516,207   36,198,171   36,544,029   36,198,171 
Financial Condition Data         
Total assets $663,580  $662,394  $640,340  $650,051  $631,160  $663,580  $631,160 
Loans  472,746   483,611   490,089   488,289   483,501   472,746   483,501 
Allowance for loan losses  (7,331)  (7,701)  (7,905)  (7,653)  (7,567)  (7,331)  (7,567)
Investment securities  115,596   114,801   112,670   111,160   111,745   115,596   111,745 
Deposits  484,258   478,633   479,285   493,364   497,144   484,258   497,144 
Borrowings  79,227   84,217   84,903   82,025   60,837   79,227   60,837 
Stockholders' equity  97,407   97,066   73,556   72,279   70,819   97,407   70,819 
Financial Ratios and Other Data         
Performance Ratios:         
Net interest margin (3)  3.20%  3.25%  3.07%  3.09%  3.02%  3.20%  3.02%
Net interest spread (4)  2.99%  3.05%  2.88%  2.92%  2.87%  2.99%  2.87%
Noninterest income to average assets (5)  1.15%  1.26%  1.37%  1.65%  1.16%  1.15%  1.16%
Noninterest expense to average assets  3.63%  3.79%  3.55%  3.96%  3.40%  3.63%  3.40%
Efficiency ratio (6)  87.28%  85.84%  81.76%  85.20%  82.88%  87.28%  82.88%
Earnings on average assets (7)  0.43%  14.93%  0.69%  0.65%  0.56%  0.43%  0.56%
Earnings on average equity (8)  2.89%  124.19%  6.11%  5.71%  5.10%  2.89%  5.10%
Asset Quality Ratios:         
Nonaccrual loans to loans (9)  0.19%  0.69%  0.99%  0.99%  1.32%  0.19%  1.32%
Nonaccrual loans, restructured loans and         
loans 90 days or more past due and still         
accruing to total loans (9)  0.53%  1.02%  1.30%  1.36%  1.65%  0.53%  1.65%
Nonperforming assets, restructured loans         
and loans 90 days or more past due and still         
accruing to total assets (9)  0.85%  1.13%  1.49%  1.51%  1.77%  0.85%  1.77%
Allowance for loan losses to total loans  1.55%  1.59%  1.61%  1.57%  1.57%  1.55%  1.57%
Allowance for loan losses to nonaccrual loans,         
restructured loans and loans 90 days or         
more past due and still accruing (9)  294.77%  156.68%  124.21%  72.81%  94.67%  294.77%  94.67%
Net charge-offs (recoveries) annualized         
to average loans  0.21%  -0.01%  -0.08%  -0.03%  0.21%  0.21%  0.21%
Capital Ratios:         
Total equity to total assets  14.68%  14.65%  11.49%  11.12%  11.22%  14.68%  11.22%
Total risk-based capital ratio  16.91%  16.62%  16.05%  15.93%  15.90%  16.91%  15.90%
Tier 1 risk-based capital ratio  15.66%  15.36%  14.80%  14.68%  14.65%  15.66%  14.65%
Leverage capital ratio  12.16%  12.39%  11.41%  11.56%  11.21%  12.16%  11.21%
Other Data:         
Number of employees (full-time equivalent)  184   183   179   181   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.
Consolidated Balance Sheets (unaudited)
       
  March 31,
 December 31,
 September 30,
 June 30,
 March 31, 
  2018 2017 2017 2017 2017
   
Assets      
Cash and due from banks $10,829  $14,371  $9,569  $10,462  $12,773 
Reverse repurchase agreements  23,032   5,449   10,289   20,440   11,019 
Securities available for sale  115,596   114,801   112,670   111,160   111,745 
Loans held for sale  6,689   11,070   7,164   9,166   2,448 
       
Loans  472,746   483,611   490,089   488,289   483,501 
Allowance for loan losses  (7,331)  (7,701)  (7,905)  (7,653)  (7,567)
Net loans  465,415   475,910   482,184   480,636   475,934 
       
Federal Home Loan Bank Stock  2,857   3,083   3,128   2,948   2,070 
Premises and equipment, net  4,314   4,334   4,371   4,309   4,369 
Accrued interest receivable  1,583   1,558   1,507   1,386   1,377 
Deferred tax assets, net  22,836   22,613   -   -   - 
Other real estate owned, net  3,164   2,584   3,153   3,153   3,153 
Bank owned life insurance  4,516   4,494   4,468   4,441   4,414 
Goodwill and other intangible assets  193   198   204   209   215 
Other assets  2,556   1,929   1,633   1,741   1,643 
Total Assets $663,580  $662,394  $640,340  $650,051  $631,160 
       
Liabilities and Stockholders' Equity       
Deposits:      
Noninterest-bearing demand $74,397  $70,024  $72,875  $79,888  $76,088 
Interest-bearing demand  34,657   32,979   31,756   31,961   33,027 
Savings  182,795   182,581   174,174   183,608   192,175 
Time  192,409   193,049   200,480   197,907   195,854 
Total deposits  484,258   478,633   479,285   493,364   497,144 
Short-term borrowings  79,227   84,217   84,903   82,025   60,837 
Accrued interest payable  398   383   404   358   327 
Other liabilities  2,290   2,095   2,192   2,025   2,033 
Total liabilities  566,173   565,328   566,784   577,772   560,341 
       
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; 18,383,891 issued shares; 18,172,844 outstanding shares  18,384   18,384   18,384   18,384   18,346 
Capital surplus  158,749   158,672   158,713   158,640   158,602 
Accumulated deficit  (127,866)  (128,563)  (152,471)  (153,605)  (154,629)
Accumulated other comprehensive loss, net  (2,326)  (1,893)  (1,537)  (1,611)  (1,971)
Treasury stock 221,902 shares at cost  (534)  (534)  (533)  (529)  (529)
Total stockholders' equity  97,407   97,066   73,556   72,279   70,819 
Total liabilities and stockholders' equity $663,580  $662,394  $640,340  $650,051  $631,160 


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,
  2018 2017 2017 2017 2017 2018 2017
  (Dollars in thousands)
          
Interest Income         
Loans $5,125  $5,384  $5,188 $4,997 $4,826 $5,125  $4,826
Loans held for sale  73   102   104  79  46  73   46
Securities  775   643   640  598  611  775   611
Other investments  36   48   124  58  79  36   79
Total interest income  6,009   6,177   6,056  5,732  5,562  6,009   5,562
          
Interest Expense         
Deposits  948   910   871  817  749  948   749
Short-term borrowings  237   211   269  156  143  237   143
Total interest expense  1,185   1,121   1,140  973  892  1,185   892
Net interest income  4,824   5,056   4,916  4,759  4,670  4,824   4,670
Provision for (reversal of) loan losses  (126)  (218)  149  47  228  (126)  228
Net interest income after provision for         
(reversal of) loan losses  4,950   5,274   4,767  4,712  4,442  4,950   4,442
          
Noninterest Income         
Deposit service charges  111   126   132  129  113  111   113
Other service fees  34   36   45  54  46  34   46
Mortgage Banking revenue, net  1,374   1,507   1,821  2,027  1,142  1,374   1,142
Other income  132   229   127  127  97  132   97
Net gains on sale of securities  22   0   0  0  0  22   0
Net gains (losses) on sale of assets         
and (writedowns)  198   117   132  274  449  198   449
Total noninterest income  1,871   2,015   2,257  2,611  1,847  1,871   1,847
          
Noninterest Expense         
Compensation and employee benefits  4,056   4,015   4,099  4,333  3,705  4,056   3,705
Equipment  311   309   320  319  290  311   290
Occupancy and premises  417   413   386  381  390  417   390
Data Processing  154   143   168  136  140  154   140
Federal deposit insurance  49   24   55  81  87  49   87
Professional services  166   330   158  130  200  166   200
Telephone and data communication  78   90   87  88  81  78   81
Insurance  61   62   60  96  59  61   59
Other expense  532   684   532  715  449  532   449
Total noninterest expense  5,824   6,070   5,865  6,279  5,401  5,824   5,401
Income from operations         
before income taxes  997   1,219   1,159  1,044  888  997   888
Income tax expense (benefit)  300   (22,689)  25  20  0  300   0
Net income   697   23,908   1,134  1,024  888  697   888
Preferred stock dividend  0   0   0  0  0  0   0
Net income allocated to         
 common stockholders $697  $23,908  $1,134 $1,024 $888 $697  $888
          

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