News
CIB Marine Bancshares, Inc. Announces 2018 First Quarter ResultsPress Release | 04/13/2018
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
