News
CIB Marine Bancshares, Inc. Announces 2017 Second Quarter Results
WAUKESHA, WI--(Marketwired - July 12, 2017) - 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 second quarter of 2017. Net income for the quarter was $1.0 million, or $0.06 basic earnings per share and $0.03 diluted earnings per share, and for the six months ending June 30, 2017, $1.9 million, or $0.11 basic and $0.05 diluted earnings per share.
A summary of financial results for the quarter is attached. Select highlights include:
Return on average assets was 0.65% for the quarter and 0.60% for the six months ending June 30, 2017, compared to 0.80% and 0.73% for the same periods in 2016.
Book and tangible book value per share of common stock are reported at $0.68 and $1.16, respectively, for June 30, 2017, compared to $0.51 and $0.99 from one year prior.
Net income for subsidiary CIBM Bank was $1.2 million for the quarter and $2.3 million for the six month period ending June 30, 2017, compared to net income of $1.4 million and $2.1 million for the same periods of 2016; reflecting stronger year to date results.
Net interest income of $4.8 million for the quarter is an increase of $0.3 million from the same quarter of 2016, and net interest income of $9.4 million for the six months ending June 30, 2017, is an increase of $0.5 million from the same period of 2016. The growth primarily reflects higher earning asset balances.
Noninterest income of $2.6 million for the quarter is a decrease of $0.2 million from the same quarter of 2016 and noninterest income of $4.5 million for the six months ending June 30, 2017, is a decrease of $0.4 million from the same period of 2016. The results reflect lower net mortgage banking revenue this year due to reduced refinancing activity and the prior year's net gain on sale of assets and write-downs related to collection activities which was $0.8 million in the 2016 year to date period.
During the first six months of 2017, gains on sale of SBA loans have been $0.7 million compared to $0.1 million in the same period of 2016.
Non-performing assets to total assets reported at 2.10% at June 30, 2017, compared to 1.67% at December 31, 2016, reflecting higher other real estate owned related to one relationship offset in part by lower non-accrual loans.
Non-accrual loans to total loans reported at 0.99% at June 30, 2017, compared to 1.26% at December 31, 2016, as a result of the collection of a larger construction and development loan.
J. Brian Chaffin, CIB Marine's President and CEO, commented, "CIB Marine's second quarter improvement over the first quarter of 2017 reflects the higher level of earning assets and improved quality of our non-interest income with more coming from our core business activities as opposed to collection activities. Thirteen of the last fourteen quarters have been profitable at CIBM Bank, and this marks the sixth consecutive quarter of profits. Although loan growth has slowed this year so far, our net interest margin has improved from 2.84% as reported in the fourth quarter of 2016 to 3.09% in the second quarter of 2017. Our balance sheet repricing structure, including interest rate swaps hedging certain fixed rate commercial real estate loans, has responded well to the three Fed rate hikes between December of last year and June of this year."
Mr. Chaffin added, "Improved gains on sale of SBA loans are a continued sign of progress in the development of our new Government Guaranteed Lending Division. At Avenue Mortgage, loan volumes have picked up from the first quarter but still lag behind last year due to the market slow-down in refinancing activity caused by higher interest rates. However, home purchase loans have picked up recently and our new lenders in central Illinois are gaining some traction."
Mr. Chaffin concluded, "We are very proud of the level of commercial lending we do within our communities to support local job creation and retention, as well as our growth in mortgage lending which supports local home ownership and property maintenance. Over the last several years, we have consistently been in the top quartile among peer banks in the loan to deposit ratio and our loan growth has exceeded the median peer level. Improved financial results have allowed us to make significant investments in the form of securities purchased that support affordable housing and small businesses, as well as provide both financial and professional service support for a variety of non-profit community service organizations within our markets. Community lending is an area of focus for our organization. It presents certain challenges in the current market environment, but we have committed substantial resources to continue growing and improving this area of the bank in order to meet the needs of our communities."
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates 11 banking offices in Illinois, Wisconsin, and Indiana and 4 separate 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.
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 June 30, 2017 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 Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2017 2017 2016 2016 2016 2017 2016
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data
Interest and dividend income $ 5,732 $ 5,562 $ 5,273 $ 5,286 $ 5,214 $ 11,294 $ 10,390
Interest expense 973 892 793 740 729 1,865 1,464
Net interest income 4,759 4,670 4,480 4,546 4,485 9,429 8,926
Provision for (reversal of) loan losses 47 228 (796 ) 69 118 275 179
Net interest income after provision for (reversal of) loan losses
4,712
4,442
5,276
4,477
4,367
9,154
8,747
Noninterest income (1) 2,611 1,847 1,908 2,651 2,788 4,458 4,841
Noninterest expense 6,279 5,401 6,127 6,220 5,951 11,680 11,432
Income before income taxes 1,044 888 1,057 908 1,204 1,932 2,156
Income tax expense 20 0 (5 ) 40 15 20 15
Net income $ 1,024 $ 888 $ 1,062 $ 868 $ 1,189 $ 1,912 $ 2,141
Common Share Data
Basic net income (loss) per share $ 0.06 $ 0.05 $ 0.06 $ 0.05 $ 0.07 $ 0.11 $ 0.12
Diluted net income (loss) per share 0.03 0.02 0.03 0.02 0.03 0.05 0.06
Dividend 0 0 0 0 0 0 0
Tangible book value per share (2) 1.16 1.08 1.01 1.04 0.99 1.16 0.99
Book value per share (2) 0.68 0.60 0.53 0.56 0.51 0.68 0.51
Weighted average shares outstanding - basic 18,153,029 18,127,892 18,127,892 18,127,892 18,127,892 18,140,530 18,127,892
Weighted average shares outstanding - diluted 36,516,207 36,193,353 36,082,522 35,818,022 35,631,892 36,355,672 35,631,892
Financial Condition Data
Total assets $ 650,051 $ 631,160 $ 653,559 $ 632,628 $ 615,708 $ 650,051 $ 615,708
Loans 488,289 483,501 483,518 466,057 461,859 488,289 461,859
Allowance for loan losses (7,653 ) (7,567 ) (7,592 ) (8,549 ) (8,219 ) (7,653 ) (8,219 )
Investment securities 111,160 111,745 112,072 103,853 103,542 111,160 103,542
Deposits 493,364 497,144 483,097 476,428 468,377 493,364 468,377
Borrowings 82,025 60,837 96,944 81,636 72,833 82,025 72,833
Stockholders' equity 72,279 70,819 69,523 70,094 69,266 72,279 69,266
Financial Ratios and Other Data
Performance Ratios:
Net interest margin (3) 3.09 % 3.02 % 2.84 % 2.95 % 3.11 % 3.06 % 3.13 %
Net interest spread (4) 2.92 % 2.87 % 2.70 % 2.80 % 2.96 % 2.89 % 2.98 %
Noninterest income to average assets (5) 1.65 % 1.16 % 1.18 % 1.68 % 1.88 % 1.40 % 1.65 %
Noninterest expense to average assets 3.96 % 3.40 % 3.79 % 3.93 % 4.02 % 3.68 % 3.90 %
Efficiency ratio (6) 85.20 % 82.88 % 95.91 % 86.42 % 81.82 % 84.11 % 83.04 %
Earnings (loss) on average assets (7) 0.65 % 0.56 % 0.66 % 0.55 % 0.80 % 0.60 % 0.73 %
Earnings (loss) on average equity (8) 5.71 % 5.10 % 5.93 % 4.89 % 6.98 % 5.41 % 6.37 %
Asset Quality Ratios:
Nonaccrual loans to loans (9) 0.99 % 1.32 % 1.26 % 1.16 % 0.81 % 0.99 % 0.81 %
Nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing to total loans (9)
2.15 %
1.65 %
1.60 %
1.58 %
1.63 %
2.15 %
1.63 %
Nonperforming assets, restructured loans and loans 90 days or more past due and still accruing to total assets (9)
2.10 %
1.77 %
1.67 %
1.32 %
1.59 %
2.10 %
1.59 %
Allowance for loan losses to total loans 1.57 % 1.57 % 1.57 % 1.83 % 1.78 % 1.57 % 1.78 %
Allowance for loan losses to nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing (9)
72.81 %
94.67 %
97.99 %
116.08 %
109.14 %
72.81 %
109.14 %
Net charge-offs (recoveries) annualized to average loans -0.03 % 0.21 % 0.14 % -0.22 % 0.12 % 0.09 % 0.01 %
Capital Ratios:
Total equity to total assets 11.12 % 11.02 % 10.64 % 11.08 % 11.25 % 11.12 % 11.25 %
Total risk-based capital ratio 15.92 % 15.90 % 15.40 % 15.66 % 15.60 % 15.92 % 15.60 %
Tier 1 risk-based capital ratio 14.66 % 14.65 % 14.15 % 14.41 % 14.34 % 14.66 % 14.34 %
Leverage capital ratio 11.56 % 11.21 % 11.14 % 11.20 % 11.69 % 11.56 % 11.69 %
Other Data:
Number of employees (full-time equivalent) 181 181 171 169 167 181 167
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)
June 30, March 31, December 31, September 30, June 30,
2017 2017 2016 2016 2016
(Dollars in thousands, except share data)
Assets
Cash and due from banks $ 10,462 $ 12,773 $ 10,291 $ 11,427 $ 9,808
Reverse repurchase agreements 20,440 11,019 24,275 27,560 20,313
Securities available for sale 111,160 111,745 112,072 103,853 103,542
Loans held for sale 9,166 2,448 11,469 15,875 11,602
Loans 488,289 483,501 483,518 466,057 461,859
Allowance for loan losses (7,653 ) (7,567 ) (7,592 ) (8,549 ) (8,219 )
Net loans 480,636 475,934 475,926 457,508 453,640
Federal Home Loan Bank Stock 2,948 2,070 3,803 3,803 2,170
Premises and equipment, net 4,309 4,369 4,427 4,256 4,358
Accrued interest receivable 1,386 1,377 1,382 1,289 1,290
Other real estate owned, net 3,153 3,153 3,159 982 2,283
Bank owned life insurance 4,441 4,414 4,389 4,363 4,336
Goodwill and other intangible assets 209 215 221 226 232
Other assets 1,741 1,643 2,145 1,486 2,134
Total Assets $ 650,051 $ 631,160 $ 653,559 $ 632,628 $ 615,708
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand $ 79,888 $ 76,088 $ 77,154 $ 87,216 $ 82,460
Interest-bearing demand 31,961 33,027 33,832 29,821 31,508
Savings 183,608 192,175 176,435 169,390 175,955
Time 197,907 195,854 195,676 190,001 178,454
Total deposits 493,364 497,144 483,097 476,428 468,377
Short-term borrowings 82,025 60,837 96,944 81,636 72,833
Accrued interest payable 358 327 349 319 335
Other liabilities 2,025 2,033 3,646 4,151 4,897
Total liabilities 577,772 560,341 584,036 562,534 546,442
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
18,346
18,346
18,346
18,346
Capital surplus 158,640 158,602 158,552 158,510 158,493
Accumulated deficit (153,605 ) (154,629 ) (155,517 ) (156,579 ) (157,446 )
Accumulated other comprehensive loss, net (1,611 ) (1,971 ) (2,329 ) (654 ) (598 )
Treasury stock 218,499 shares at cost (529 ) (529 ) (529 ) (529 ) (529 )
Total stockholders' equity 72,279 70,819 69,523 70,094 69,266
Total liabilities and stockholders' equity $ 650,051 $ 631,160 $ 653,559 $ 632,628 $ 615,708
CIB MARINE BANCSHARES, INC.
Consolidated Statements of Operations (Unaudited)
At or for the
Quarters Ended Six Months Ended
June 30, March 31, December 31, September 30, June 30, June 30, June 30,
2017 2017 2016 2016 2016 2017 2016
(Dollars in thousands)
Interest Income
Loans $ 4,997 $ 4,826 $ 4,493 $ 4,540 $ 4,635 $ 9,823 $ 9,207
Loans held for sale 79 46 141 153 95 125 178
Securities 598 611 563 513 478 1,209 995
Other investments 58 79 76 80 6 137 10
Total interest income 5,732 5,562 5,273 5,286 5,214 11,294 10,390
Interest Expense
Deposits 817 749 697 659 692 1,566 1,397
Short-term borrowings 156 143 96 81 37 299 67
Total interest expense 973 892 793 740 729 1,865 1,464
Net interest income 4,759 4,670 4,480 4,546 4,485 9,429 8,926
Provision for (reversal of) loan losses 47 228 (796 ) 69 118 275 179
Net interest income after provision for (reversal of) loan losses 4,712 4,442 5,276 4,477 4,367 9,154 8,747
Noninterest Income
Deposit service charges 129 113 121 125 121 242 224
Other service fees 54 46 45 47 52 100 119
Mortgage Banking revenue, net 2,027 1,142 1,414 2,285 2,102 3,169 3,438
Other income 127 97 136 206 96 224 213
Net gains on sale of securities 0 0 0 0 0 0 0
Net gains (losses) on sale of assets and (writedowns) 274 449 192 (12 ) 417 723 847
Total noninterest income 2,611 1,847 1,908 2,651 2,788 4,458 4,841
Noninterest Expense
Compensation and employee benefits 4,333 3,705 4,228 4,426 4,143 8,038 7,767
Equipment 319 290 305 277 293 609 566
Occupancy and premises 381 390 390 377 389 771 824
Data Processing 136 140 123 185 151 276 305
Federal deposit insurance 81 87 92 105 106 168 212
Professional services 130 200 156 157 213 330 462
Telephone and data communication 88 81 90 92 99 169 208
Insurance 96 59 60 60 56 155 110
Other expense 715 449 683 541 501 1,164 978
Total noninterest expense 6,279 5,401 6,127 6,220 5,951 11,680 11,432
Income from operations
before income taxes 1,044 888 1,057 908 1,204 1,932 2,156
Income tax expense 20 0 (5 ) 40 15 20 15
Net income 1,024 888 1,062 868 1,189 1,912 2,141
Preferred stock dividend 0 0 0 0 0 0 0
Net income allocated to common stockholders $ 1,024 $ 888 $ 1,062 $ 868 $ 1,189 $ 1,912 $ 2,141
FOR INFORMATION CONTACT:
J. Brian Chaffin
President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com
Copyright © 2017 Marketwired. All Rights Reserved
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.
AI
