CIB Marine Bancshares Inc. (CIBH)

[Churak]

CEO: No buyers yet for CIB Marine Bancshares

The Business Journal of Milwaukee - by Rich Kirchen
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* Restructuring swings CIB Marine to 2009 profit
* Marine Bank names Wisconsin market president
* CIB Marine sheds branches
* Marine Bank hires former Banc One manager Blaesing
* Banking execs believe more failures possible

* CIB Marine Bancshares Inc.

CIB Marine Bancshares Inc., the parent company of Marine Bank, is continuing to seek a buyer but has no prospects due to the dearth of activity in the conventional mergers-and-acquisitions market for banks.

The deals getting done at the moment are assisted or facilitated by the Federal Deposit Insurance Corp. and involve failing banks, CIB Marine Bancshares Inc. chairman and CEO John Hickey Jr. said in an interview Thursday after the company’s annual shareholders meeting.

While the company is under a regulatory order to improve its operations and finances, Hickey’s goal is to return to profitability and exit the order. He has no plans for CIB Marine to become a failing bank and eligible for an FDIC-assisted transaction.

“We’re going to have to wait for things to improve and get back to a more traditional (M&A) market,” Hickey said after the meeting at the Milwaukee Athletic Club in downtown Milwaukee.

Pewaukee-based CIB Marine’s (Pink Sheets: CIBH) operating losses decreased for the quarter that ended March 31, but the company still posted a net loss of $2.4 million, or 13 cents per share.

Hickey said the company needs to continue cutting costs and improving its credit quality. The company has added staff to focus on working out problem loans, he said.

The company is benefiting from lower debt payments since its prepackaged Chapter 11 case was resolved in December 2009, Hickey said. The case involved a debt-for-preferred shares exchange.

Hickey, 62, announced that he will remain at the company as chairman and CEO but that he is relinquishing the president’s title. Chuck Ponicki, who has been senior vice president and chief credit officer, is now president and chief operating officer.

Read more: CEO: No buyers yet for CIB Marine Bancshares - The Business Journal of Milwaukee


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