BROOKFIELD, Wis., Oct. 14, 2022 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the “Company” or “CIBM”) (OTCQX: CIBH), the holding company of CIBM Bank, announced its unaudited results of operations and financial condition for the quarter and nine months ended September 30, 2022. Continued strong net interest income supported increased earnings over the prior quarter, however, third quarter earnings are down compared to the same period in 2021 due to substantially reduced mortgage banking income in the rapidly changing interest rate environment. Net income for the quarter was $1.0 million, or $0.78 basic and $0.57 diluted earnings per share, compared to $2.1 million, or $1.61 basic and $0.94 diluted earnings per share, for the same period of 2021; and net income for the nine-month period was $2.8 million, or $2.16 basic and $1.57 diluted earnings per share, compared to $5.6 million, or $4.36 basic and $2.53 diluted earnings per share, for the same period in 2021.

Financial highlights for the quarter include:

  • Net interest income and margin were $6.4 million and 3.45%, respectively, compared to $5.9 million and 3.21%, respectively, in the same period of 2021; and $17.8 million and 3.25%, respectively, for the nine-month period compared to $17.4 million and 3.23%, respectively, for the same period of 2021. The nine-month period in 2022 has $0.6 million less PPP loan fee accretion income and $0.3 million more subordinated debt interest expense compared to the same period in 2021. Improvements reflect higher earning assets, asset yield increases outpacing liability cost increases, and growth in non-interest bearing checking accounts. All remaining PPP loans were fully repaid in the third quarter of 2022.
  • Net mortgage banking revenues were down $2.5 million and $7.5 million for the quarter and nine-month period, respectively, compared to the same periods of 2021. The change was due to a 54% decline in loan originations for the nine months ended September 30, 2022, compared to the same period of 2021, as a result of a substantial increase in residential mortgage rates and the dramatic competitive tightening of pricing margins across the industry.
  • As of September 30, 2022, non-performing assets, restructured loans, and loans 90 days or more past due and still accruing to total assets and nonaccrual loans to total loans were 0.18% and 0.13%, respectively, compared to 0.21% and 0.14%, respectively, on December 31, 2021, and 0.25% and 0.18%, respectively, on September 30, 2021.
  • Over the longer-term, improving deposit mix is crucial to our success in managing consistently higher net interest margins. Since December 31, 2021, the Fed has increased their target fed funds rate by 300 basis points putting pressure on deposit mix over the shorter term. Over the year, time deposit balances have increased $20 million, money market accounts have decreased by $37 million, and combined interest and non-interest bearing checking accounts have increased by $30 million.

Mr. J. Brian Chaffin, CIBM’s President and CEO, commented, “Despite declining real gross domestic product, rapidly rising interest rates, and declining asset prices, we have been able to improve our core banking operating revenues with solid lending and deposit activity while maintaining strong asset quality measures. Although residential lending and related earnings have receded dramatically this year, we are positioned for longer-term success as the marketplace continues to consolidate.”  

CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates ten banking offices and two mortgage loan 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, 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 9 Months Ended
 September 30,June 30,March 31,December 31,September 30,
 September 30,September 30,
 20222022202220212021 20222021
 (Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:        
Interest and dividend income$7,234 $6,411 $5,879 $6,244 $6,311  $19,524 $18,815 
Interest expense 823  517  413  387  417   1,753  1,409 
Net interest income 6,411  5,894  5,466  5,857  5,894   17,771  17,406 
Provision for (reversal of) loan losses 34  40  (325) (502) (413)  (251) (693)
Net interest income after provision for        
(reversal of) loan losses 6,377  5,854  5,791  6,359  6,307   18,022  18,099 
Noninterest income (1) 1,313  1,660  1,705  2,718  4,072   4,678  12,353 
Noninterest expense 6,311  6,374  6,262  7,641  7,517   18,947  22,736 
Income before income taxes 1,379  1,140  1,234  1,436  2,862   3,753  7,716 
Income tax expense 352  251  334  336  788   937  2,144 
Net income$1,027 $889 $900 $1,100 $2,074  $2,816 $5,572 
         
Common Share Data:         
Basic net income per share (2)$0.78 $0.68 $0.69 $1.28 $1.61  $2.16 $4.36 
Diluted net income per share (2) 0.57  0.49  0.50  0.92  0.94   1.57  2.53 
Dividend 0.00  0.00  0.00  0.00  0.00   0.00  0.00 
Tangible book value per share (3) 52.24  53.68  54.53  57.06  55.60   52.24  55.60 
Book value per share (3) 49.78  51.22  52.07  54.55  50.58   49.78  50.58 
Weighted average shares outstanding - basic 1,308,752  1,307,289  1,295,573  1,287,438  1,286,536   1,302,872  1,278,818 
Weighted average shares outstanding - diluted 1,797,721  1,798,002  1,792,181  1,784,005  2,208,493   1,794,941  2,200,867 
Financial Condition Data:        
Total assets$762,965 $774,356 $764,641 $745,393 $775,912  $762,965 $775,912 
Loans 564,841  549,175  529,212  543,819  559,079   564,841  559,079 
Allowance for loan losses (8,061) (8,010) (8,011) (8,352) (8,699)  (8,061) (8,699)
Investment securities 127,954  122,483  109,533  106,647  102,243   127,954  102,243 
Deposits 633,234  642,500  631,953  618,991  624,579   633,234  624,579 
Borrowings 37,168  37,693  36,789  27,049  34,577   37,168  34,577 
Stockholders' equity 87,228  89,111  89,931  91,780  108,984   87,228  108,984 
Financial Ratios and Other Data:        
Performance Ratios:        
Net interest margin (4) 3.45% 3.23% 3.05% 3.18% 3.21%  3.25% 3.23%
Net interest spread (5) 3.29% 3.14% 2.98% 3.10% 3.12%  3.13% 3.14%
Noninterest income to average assets (6) 0.72% 0.91% 0.97% 1.43% 2.13%  0.87% 2.20%
Noninterest expense to average assets 3.24% 3.34% 3.35% 3.98% 3.92%  3.31% 4.03%
Efficiency ratio (7) 80.73% 83.52% 85.98% 88.87% 75.34%  83.35% 76.28%
Earnings on average assets (8) 0.53% 0.47% 0.48% 0.57% 1.08%  0.49% 0.99%
Earnings on average equity (9) 4.52% 3.96% 3.98% 4.47% 7.59%  4.15% 6.95%
Asset Quality Ratios:        
Nonaccrual loans to loans (10) 0.13% 0.22% 0.13% 0.14% 0.18%  0.13% 0.18%
Nonaccrual loans, restructured loans and        
loans 90 days or more past due and still        
accruing to total loans (10) 0.17% 0.28% 0.20% 0.21% 0.27%  0.17% 0.27%
Nonperforming assets, restructured loans        
and loans 90 days or more past due and still        
accruing to total assets (10) 0.18% 0.25% 0.19% 0.21% 0.25%  0.18% 0.25%
Allowance for loan losses to total loans (10) 1.43% 1.46% 1.51% 1.54% 1.56%  1.43% 1.56%
Allowance for loan losses to nonaccrual loans,        
restructured loans and loans 90 days or        
more past due and still accruing (10) 852.11% 512.48% 742.45% 726.26% 575.33%  852.11% 575.33%
Net charge-offs (recoveries) annualized        
to average loans (10) -0.01% 0.03% 0.01% -0.11% 0.04%  0.01% -0.07%
Capital Ratios:        
Total equity to total assets 11.43% 11.51% 11.76% 12.31% 14.05%  11.43% 14.05%
Total risk-based capital ratio 16.42% 16.85% 17.52% 15.53% 18.14%  16.42% 18.14%
Tier 1 risk-based capital ratio 13.48% 13.85% 14.43% 14.28% 16.89%  13.48% 16.89%
Leverage capital ratio 10.16% 10.20% 10.27% 10.22% 12.44%  10.16% 12.44%
Other Data:        
Number of employees (full-time equivalent) 166  159  172  177  179   166  179 
Number of banking facilities 10  10  10  10  10   10  10 
         
(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 $0.5 million for the quarter ended December 31, 2021.
(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)
      
 September 30,June 30,March 31,December 31,September 30,
 20222022202220212021
 (Dollars in Thousands, Except Shares)
Assets     
Cash and due from banks$36,454 $68,097 $88,605 $59,184 $69,217 
Reverse repurchase agreements -  -  -  -  - 
Securities available for sale 125,830  120,265  107,237  104,240  99,813 
Equity securities at fair value 2,124  2,218  2,296  2,407  2,430 
Loans held for sale 6,471  7,519  9,567  9,859  18,258 
      
Loans 564,841  549,175  529,212  543,819  559,079 
Allowance for loan losses (8,061) (8,010) (8,011) (8,352) (8,699)
Net loans 556,780  541,165  521,201  535,467  550,380 
      
Federal Home Loan Bank Stock 1,897  2,897  3,140  3,140  3,140 
Premises and equipment, net 4,159  4,138  4,226  4,200  3,979 
Accrued interest receivable 1,807  1,644  1,611  1,605  1,813 
Deferred tax assets, net 16,977  16,142  15,758  14,731  15,193 
Other real estate owned, net 403  403  403  403  403 
Bank owned life insurance 6,040  6,002  5,966  5,930  5,894 
Goodwill and other intangible assets 92  98  103  109  115 
Other assets 3,931  3,768  4,528  4,118  5,277 
Total Assets$762,965 $774,356 $764,641 $745,393 $775,912 
      
Liabilities and Stockholders' Equity      
Deposits:     
Noninterest-bearing demand$134,765 $129,457 $124,724 $120,479 $122,441 
Interest-bearing demand 79,306  66,495  67,362  63,693  62,414 
Savings 254,146  287,159  294,255  289,943  287,609 
Time 165,017  159,389  145,612  144,876  152,115 
Total deposits 633,234  642,500  631,953  618,991  624,579 
Short-term borrowings 27,480  28,013  27,117  27,049  34,577 
Long-term borrowings 9,688  9,680  9,672  -  - 
Accrued interest payable 227  287  144  100  111 
Other liabilities 5,108  4,765  5,824  7,473  7,661 
Total liabilities 675,737  685,245  674,710  653,613  666,928 
      
Stockholders' Equity      
Preferred stock, $1 par value; 5,000,000 authorized shares at September 30, 2022 and December 31, 2021; 7% fixed rate noncumulative perpetual issued; 20,463 shares and 40,690 shares of series A and 1,610 shares and 3,201 shares of series B; convertible; $22.1 million and $43.9 million aggregate liquidation preference, respectively 18,762  18,762  18,762  18,762  37,308 
Common stock, $1 par value; 75,000,000 authorized shares; 1,323,547 and 1,306,660 issued shares; 1,309,478 and 1,292,591 outstanding shares at September 30, 2022 and December 31, 2021, respectively. (1) 1,324  1,324  1,318  1,307  1,302 
Capital surplus 180,664  180,544  180,431  180,360  179,557 
Accumulated deficit (106,081) (107,108) (107,997) (108,897) (109,997)
Accumulated other comprehensive income, net (6,907) (3,877) (2,049) 782  1,348 
Treasury stock, 14,791 shares on September 30, 2022 and December 31, 2021 (2) (534) (534) (534) (534) (534)
Total stockholders' equity 87,228  89,111  89,931  91,780  108,984 
Total liabilities and stockholders' equity$762,965 $774,356 $764,641 $745,393 $775,912 
      
(1) Both issued and outstanding shares as stated here exclude 59,676 shares of unvested restricted stock awards at June 30, 2022 and 66,299 shares at December 31, 2021.
(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 9 Months Ended
 September 30,June 30,March 31,December 31,September 30,
 September 30,September 30,
 20222022202220212021 20222021
 (Dollars in thousands)
         
Interest Income        
Loans$6,029 $5,542 $5,254 $5,572 $5,646  $16,825 $16,753 
Loans held for sale 96  90  58  131  135   244  405 
Securities 826  683  537  516  509   2,046  1,615 
Other investments 283  96  30  25  21   409  42 
Total interest income 7,234  6,411  5,879  6,244  6,311   19,524  18,815 
         
Interest Expense        
Deposits 662  384  350  379  409   1,396  1,368 
Short-term borrowings 40  12  7  8  8   59  41 
Long-term borrowings 121  121  56  0  0   298  0 
Total interest expense 823  517  413  387  417   1,753  1,409 
Net interest income 6,411  5,894  5,466  5,857  5,894   17,771  17,406 
Provision for (reversal of) loan losses 34  40  (325) (502) (413)  (251) (693)
Net interest income after provision for        
(reversal of) loan losses 6,377  5,854  5,791  6,359  6,307   18,022  18,099 
         
Noninterest Income        
Deposit service charges 86  92  88  95  97   266  271 
Other service fees 18  71  25  23  35   114  118 
Mortgage banking revenue, net 1,126  1,268  1,430  2,300  3,626   3,824  11,372 
Other income 147  141  212  185  186   500  658 
Net gains on sale of securities available for sale 0  0  0  0  0   0  0 
Unrealized gains (losses) recognized on equity securities (93) (78) (112) (23) (12)  (283) (48)
Net gains (loss) on sale of SBA loans 0  126  31  120  151   157  151 
Net gains (losses) on sale of assets and (writedowns) 29  40  31  18  (11)  100  (169)
Total noninterest income 1,313  1,660  1,705  2,718  4,072   4,678  12,353 
         
Noninterest Expense        
Compensation and employee benefits 4,240  4,175  4,229  5,334  5,436   12,644  16,491 
Equipment 396  439  442  446  390   1,277  1,153 
Occupancy and premises 390  408  422  400  395   1,220  1,272 
Data Processing 205  171  166  167  105   542  471 
Federal deposit insurance 58  51  52  51  46   161  141 
Professional services 244  284  224  353  227   752  808 
Telephone and data communication 61  60  61  67  70   182  186 
Insurance 74  74  85  72  66   233  198 
Other expense 643  712  581  751  782   1,936  2,016 
Total noninterest expense 6,311  6,374  6,262  7,641  7,517   18,947  22,736 
Income from operations        
before income taxes 1,379  1,140  1,234  1,436  2,862   3,753  7,716 
Income tax expense 352  251  334  336  788   937  2,144 
Net income  1,027  889  900  1,100  2,074   2,816  5,572 
Preferred stock dividend 0  0  0  0  0   0  0 
Discount from repurchase of preferred stock 0  0  0  546  0   0  0 
Net income allocated to        
 common stockholders$1,027 $889 $900 $1,646 $2,074  $2,816 $5,572 
         

 

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

 


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Source: CIB Marine Bancshares, Inc.

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