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CIB Marine Bancshares, Inc. Announces First Quarter 2021 Results
BROOKFIELD, Wis., April 12, 2021 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the “Company” or “CIBM”) (OTCQB: CIBH), the holding company of CIBM Bank, announced its unaudited results of operations and financial condition for the first quarter of 2021. Net income for the quarter ended March 31, 2021, was $2.1 million or $1.67 basic and $0.97 diluted earnings per share, compared to $0.8 million or $0.63 basic and $0.36 diluted earnings per share for the same period of 2020.
Financial highlights for the quarter include:
Tangible book value attributable to the common stock increased to $53.25 per share outstanding at March 31, 2021 compared to $52.28 at December 31, 2020, and $46.05 at March 31, 2020, reflecting a 15.7% year-on-year increase.
Net mortgage banking revenues were up $2.8 million for the quarter versus the same period of 2020, reflecting a $63 million increase in residential mortgage loans for the period, due primarily to refinance activity driven by lower interest rates. Compensation expenses increased $1.5 million compared to the same period in 2020, largely related to mortgage lending compensation.
When compared to the first quarter of 2020, first quarter 2021 net interest income was up $0.8 million; net interest margin was up 19 basis points to 3.23%, reflecting an 89 basis point improvement in the cost of interest bearing liabilities compared to a 55 basis point decline in interest earning asset yields; and average interest earning assets were up $65 million, primarily in commercial segment loans and residential loans held for sale.
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 0.52% and 0.23%, respectively, at March 31, 2021, compared to 0.54% and 0.23%, respectively, at December 31, 2020, and down from 1.24% and 0.97%, respectively, at March 31, 2020. Recent measures continue to be near this credit cycle’s best.
During the first quarter, CIBM Bank originated $18 million in new Paycheck Protection Plan (PPP) loans and received SBA forgiveness funding to close $19 million in PPP loans originated in 2020.
Deposits for checking, savings, and money market accounts grew by $44 million during the quarter, reflecting federal fiscal and monetary policies (e.g., low interest rates) and marketing activity results.
Mr. J. Brian Chaffin, CIB Marine’s President and CEO, commented, “We are pleased with another quarter of strong income and a return on average assets of 1.14% due to continued strength in mortgage lending activity and solid progress in the net interest margin. We typically see a seasonal uptick in purchase money mortgage activity in the warmer months, and we expect that to be countered by reduced refinance activity as a result of the recent increase in long term interest rates.
“Our balance sheet has grown since year-end as a result of (a) surging checking and money market account balances due, in part, to federal economic stimulus policies and programs and (b) steady commercial loan production, which has replaced residential loan balances as refinanced mortgages are sold. While the banking industry as a whole performed better than many experts predicted over the past year, and CIBM performed even better than the peer, particularly with regard to credit metrics, we remain cautious about future credit quality in higher risk segments of the loan portfolio due to the lingering impact of the pandemic,” he concluded.
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates ten banking offices and five 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.
FOR INFORMATION CONTACT:
J. Brian Chaffin, President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com
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,
2021 2020 2020 2020 2020 2021 2020
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income $ 6,265 $ 6,489 $ 7,202 $ 6,669 $ 6,636 $ 6,265 $ 6,636
Interest expense 536 765 1,017 1,343 1,689 536 1,689
Net interest income 5,729 5,724 6,185 5,326 4,947 5,729 4,947
Provision for loan losses 20 101 501 249 202 20 202
Net interest income after provision for
loan losses 5,709 5,623 5,684 5,077 4,745 5,709 4,745
Noninterest income (1) 5,146 6,566 8,104 4,489 2,642 5,146 2,642
Noninterest expense 7,940 9,317 9,056 7,308 6,322 7,940 6,322
Income before income taxes 2,915 2,872 4,732 2,258 1,065 2,915 1,065
Income tax expense 798 565 1,322 575 281 798 281
Net income $ 2,117 $ 2,307 $ 3,410 $ 1,683 $ 784 $ 2,117 $ 784
Common Share Data (2):
Basic net income per share (3) $ 1.67 $ 1.82 $ 2.69 $ 1.36 $ 0.63 $ 1.67 $ 0.63
Diluted net income per share (3) 0.97 1.06 1.56 0.79 0.36 0.98 0.36
Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tangible book value per share (4) 53.25 52.28 50.35 47.25 46.05 53.25 46.05
Book value per share (4) 48.21 47.19 45.27 42.00 40.95 48.21 40.95
Weighted average shares outstanding - basic 1,268,947 1,267,584 1,267,582 1,266,174 1,248,275 1,268,947 1,248,275
Weighted average shares outstanding - diluted 2,185,433 2,181,142 2,181,868 2,160,201 2,155,315 2,185,433 2,155,315
Financial Condition Data:
Total assets $ 752,715 $ 750,982 $ 793,604 $ 793,151 $ 705,473 $ 752,715 $ 705,473
Loans 540,206 539,227 546,351 535,692 513,992 540,206 513,992
Allowance for loan losses (9,253 ) (9,122 ) (9,037 ) (8,483 ) (8,107 ) (9,253 ) (8,107 )
Investment securities 112,400 108,492 107,351 113,303 120,105 112,400 120,105
Deposits 608,433 586,373 593,370 566,811 531,999 608,433 531,999
Borrowings 30,736 51,310 87,994 120,233 68,950 30,736 68,950
Stockholders' equity 105,593 103,704 101,271 97,347 95,841 105,593 95,841
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (5) 3.23 % 3.14 % 3.30 % 2.96 % 3.04 % 3.23 % 3.04 %
Net interest spread (6) 3.13 % 3.01 % 3.16 % 2.76 % 2.78 % 3.13 % 2.78 %
Noninterest income to average assets (7) 2.79 % 3.43 % 4.12 % 2.36 % 1.51 % 2.79 % 1.51 %
Noninterest expense to average assets 4.27 % 4.86 % 4.60 % 3.86 % 3.67 % 4.27 % 3.67 %
Efficiency ratio (8) 72.72 % 75.77 % 63.38 % 74.61 % 83.74 % 72.72 % 83.74 %
Earnings on average assets (9) 1.14 % 1.20 % 1.73 % 0.89 % 0.45 % 1.14 % 0.45 %
Earnings on average equity (10) 8.10 % 8.83 % 13.51 % 6.97 % 3.32 % 8.10 % 3.32 %
Asset Quality Ratios:
Nonaccrual loans to loans (11) 0.23 % 0.23 % 0.32 % 0.92 % 0.97 % 0.23 % 0.97 %
Nonaccrual loans, restructured loans and
loans 90 days or more past due and still
accruing to total loans (11) 0.37 % 0.40 % 0.49 % 1.07 % 1.25 % 0.37 % 1.25 %
Nonperforming assets, restructured loans
and loans 90 days or more past due and still
accruing to total assets (11) 0.52 % 0.54 % 0.60 % 1.02 % 1.24 % 0.52 % 1.24 %
Allowance for loan losses to total loans (11) 1.71 % 1.69 % 1.65 % 1.58 % 1.58 % 1.71 % 1.58 %
Allowance for loan losses to nonaccrual loans,
restructured loans and loans 90 days or
more past due and still accruing (11) 459.21 % 421.14 % 338.59 % 147.79 % 126.26 % 459.21 % 126.26 %
Net charge-offs (recoveries) annualized
to average loans (11) -0.08 % 0.01 % -0.04 % -0.09 % 0.08 % -0.01 % 0.15 %
Capital Ratios:
Total equity to total assets 14.03 % 13.81 % 12.76 % 12.27 % 13.59 % 14.03 % 13.59 %
Total risk-based capital ratio 18.15 % 17.44 % 16.13 % 15.49 % 15.36 % 18.15 % 15.36 %
Tier 1 risk-based capital ratio 16.89 % 16.19 % 14.87 % 14.23 % 14.11 % 16.89 % 14.11 %
Leverage capital ratio 11.88 % 11.46 % 11.20 % 10.82 % 11.08 % 11.88 % 11.08 %
Other Data:
Number of employees (full-time equivalent) 179 176 176 177 177 179 177
Number of banking facilities 10 11 11 11 11 10 11
(1) Noninterest income includes gains and losses on securities.
(2) Common share data prior to September 14, 2020, is adjusted to reflect the 1:15 reverse split to allow for comparability between the pre- and post- reverse split periods.
(3) 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 $0.03 million for the 2nd quarter and 12 months ended 2020.
(4) 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.
(5) Net interest margin is the ratio of net interest income to average interest-earning assets.
(6) Net interest spread is the yield on average interest-earning assets less the rate on average interest-bearing liabilities.
(7) Noninterest income to average assets excludes gains and losses on securities.
(8) The efficiency ratio is noninterest expense divided by the sum of net interest income plus noninterest income, excluding gains and losses on securities.
(9) Earnings on average assets are net income divided by average total assets.
(10) Earnings on average equity are net income divided by average stockholders' equity.
(11) Excludes loans held for sale.
CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
March 31, December 31, September 30, June 30, March 31,
2021 2020 2020 2020 2020
(Dollars in Thousands, Except Shares)
Assets
Cash and due from banks $ 51,691 $ 29,927 $ 30,544 $ 9,120 $ 9,006
Reverse repurchase agreements - - 8,208 18,117 3,622
Securities available for sale 109,965 106,014 104,866 110,818 117,640
Equity securities at fair value 2,435 2,478 2,485 2,485 2,465
Loans held for sale 18,136 42,977 67,496 83,997 24,988
Loans 540,206 539,227 546,351 535,692 513,992
Allowance for loan losses (9,253 ) (9,122 ) (9,037 ) (8,483 ) (8,107 )
Net loans 530,953 530,105 537,314 527,209 505,885
Federal Home Loan Bank Stock 3,140 3,140 3,140 2,948 2,947
Premises and equipment, net 4,476 4,682 4,667 4,679 4,769
Accrued interest receivable 1,983 2,050 2,075 1,973 1,610
Deferred tax assets, net 16,417 16,292 18,547 19,325 19,509
Other real estate owned, net 1,875 1,875 2,103 2,334 2,335
Bank owned life insurance 4,831 4,802 4,774 4,745 4,718
Goodwill and other intangible assets 126 131 137 142 148
Other assets 6,687 6,509 7,248 5,259 5,831
Total Assets $ 752,715 $ 750,982 $ 793,604 $ 793,151 $ 705,473
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand $ 109,466 $ 92,544 $ 91,134 $ 90,450 $ 67,459
Interest-bearing demand 63,033 59,679 61,262 54,288 47,760
Savings 268,026 243,888 225,724 205,470 196,797
Time 167,908 190,262 215,250 216,603 219,983
Total deposits 608,433 586,373 593,370 566,811 531,999
Short-term borrowings 30,736 51,310 54,052 77,273 68,950
Long-term borrowings - - 33,942 42,960 -
Accrued interest payable 140 246 398 447 543
Other liabilities 7,813 9,349 10,571 8,313 8,140
Total liabilities 647,122 647,278 692,333 695,804 609,632
Stockholders' Equity
Preferred stock, $1 par value; 5,000,000 authorized shares at both March 31, 2021 and December 31, 2020; 7% fixed rate noncumulative perpetual issued; 40,690 shares of series A and 3,201 shares of series B; convertible; $43.9 million aggregate liquidation preference 37,308 37,308 37,308 37,308 37,490
Common stock, $1 par value; 75,000,000 authorized shares; 1,294,665 and 1,282,385 issued shares; 1,280,596 and 1,268,316 outstanding shares at March 31, 2021 and December 31, 2020, respectively. (1)(2) 1,295 1,282 1,282 19,240 19,162
Capital surplus (2) 179,291 179,188 179,090 161,032 160,990
Accumulated deficit (113,452 ) (115,569 ) (117,875 ) (121,285 ) (122,969 )
Accumulated other comprehensive income, net 1,685 2,029 2,000 1,586 1,702
Treasury stock, 14,791 shares on March 31, 2021 and December 31, 2020 and 221,902 shares prior at cost (2) (534 ) (534 ) (534 ) (534 ) (534 )
Total stockholders' equity 105,593 103,704 101,271 97,347 95,841
Total liabilities and stockholders' equity $ 752,715 $ 750,982 $ 793,604 $ 793,151 $ 705,473
(1) Both issued and outstanding shares as stated here exclude 75,146 shares of unvested restricted stock awards at March 31, 2021 and 59,842 at December 31, 2020.
(2) Effective September 14, 2020, the Company executed a reverse stock split of 1 share for every 15 shares outstanding. Fractional shares were remitted cash at the then-current market value of $15.75 per share.
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,
2021 2020 2020 2020 2020 2021 2020
(Dollars in thousands)
Interest Income
Loans $ 5,524 $ 5,577 $ 6,054 $ 5,540 $ 5,703 $ 5,524 $ 5,703
Loans held for sale 175 331 537 451 119 175 119
Securities 555 564 573 661 763 555 763
Other investments 11 17 38 17 51 11 51
Total interest income 6,265 6,489 7,202 6,669 6,636 6,265 6,636
Interest Expense
Deposits 512 735 942 1,263 1,512 512 1,512
Short-term borrowings 24 30 38 54 177 24 177
Long-term borrowings 0 0 37 26 0 0 0
Total interest expense 536 765 1,017 1,343 1,689 536 1,689
Net interest income 5,729 5,724 6,185 5,326 4,947 5,729 4,947
Provision for loan losses 20 101 501 249 202 20 202
Net interest income after provision for
loan losses 5,709 5,623 5,684 5,077 4,745 5,709 4,745
Noninterest Income
Deposit service charges 84 91 89 88 96 84 96
Other service fees 40 37 36 36 20 40 20
Mortgage banking revenue, net 4,983 6,387 7,741 3,990 2,177 4,983 2,177
Other income 192 165 226 266 265 192 265
Net gains on sale of securities available for sale 0 0 0 0 0 0 0
Unrealized gains (losses) recognized on equity securities (43 ) (6 ) 0 20 39 (43 ) 39
Net gains (loss) on sale of SBA loans 0 55 (55 ) 87 437 0 437
Net gains (losses) on sale of assets and (writedowns) (110 ) (163 ) 67 2 (392 ) (110 ) (392 )
Total noninterest income 5,146 6,566 8,104 4,489 2,642 5,146 2,642
Noninterest Expense
Compensation and employee benefits 5,956 7,015 7,329 5,451 4,421 5,956 4,421
Equipment 379 402 352 379 363 379 363
Occupancy and premises 434 452 390 407 460 434 460
Data Processing 185 178 177 155 164 185 164
Federal deposit insurance 48 49 48 47 0 48 0
Professional services 253 322 162 242 298 253 298
Telephone and data communication 60 82 71 67 68 60 68
Insurance 68 62 58 55 54 68 54
Other expense 557 755 469 505 494 557 494
Total noninterest expense 7,940 9,317 9,056 7,308 6,322 7,940 6,322
Income from operations
before income taxes 2,915 2,872 4,732 2,258 1,065 2,915 1,065
Income tax expense 798 565 1,322 575 281 798 281
Net income 2,117 2,307 3,410 1,683 784 2,117 784
Preferred stock dividend 0 0 0 0 0 0 0
Discount from repurchase of preferred stock 0 0 33 0 0 0 0
Net income allocated to
common stockholders $ 2,117 $ 2,307 $ 3,443 $ 1,683 $ 784 $ 2,117 $ 784
Source: CIBM Bank
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