WAUKESHA, WI -- (Marketwired) -- 10/13/16 -- CIB Marine Bancshares, Inc. (CIBH) (the "Company" or "CIBM") (OTCQB: CIBH), the holding company of CIBM Bank, announced its results of operations and financial condition for the third quarter of 2016. Net income for the quarter was $0.9 million or $0.05 basic earnings per share, and for the nine months ending September 30, 2016, $3.0 million or $0.17 per share. Earnings per share on a diluted basis for the same quarter and nine month period were $0.02 and $0.08, respectively. This reflects a substantial increase over the prior year's results for the same periods as shown in the included financial information.
Select highlights for the quarter include:
Return on average assets was 0.55% for the third quarter of 2016 and 0.67% for the nine months ending September 30, 2016, showing a substantial improvement over the 0.23% and 0.05% reported for the same periods in 2015.
Net income for subsidiary CIBM Bank was $1.0 million for the third quarter and $3.1 million for the nine months ending September 30, 2016; compared to $0.6 million and $0.9 million for the same periods of 2015.
The growing and diversified loan portfolio has been the main driver of CIBM's net interest income growth as it has increased $0.5 million for the third quarter and $1.5 million for the nine months ending September 30, 2016, relative to the same periods of 2015.
Non-interest income increased $1.6 million for the third quarter and $3.7 million for the nine months ending September 30, 2016, relative to the same periods of 2015, due primarily to mortgage activity.
In addition to the growing revenues, our expense management activities discussed in prior earnings releases and shareholder letters have played a role in this outcome as well. The primary source of noninterest expense growth has been from higher commissions related to mortgage production.
Although net recoveries from prior charge-offs annualized to average loans has been fairly strong this past quarter and year to date, the approximately $1.3 million (net of costs) structured settlement payment announced earlier this year has not yet been received or recorded.
Non-performing assets to total assets continued its decline to 1.32% from 1.59% the prior quarter, 2.25% at the year-end 2015, and 2.20% at the same quarter-end of 2015.
"CIB Marine is pleased to be reporting year-on-year earnings improvements, continued growth in revenues and key accomplishments in executing some expense reductions," said Mr. J. Brian Chaffin, President and Chief Executive Officer of CIB Marine Bancshares, Inc. "Our third quarter saw growth in all of our key production units with especially strong results coming out of our mortgage banking division. In addition, we have received our first full quarter's results from the SBA financing facility discussed in the prior quarter, this facility is reported under reverse repurchase agreements in the balance sheet and other investments in the income statement."
Mr. Chaffin added, "We continue to focus on fulfilling our mission and growing our client relationship-based banking businesses along our corporate, mortgage and retail lines. We have made several new hires in our retail banking division recently, and Joe Arie joined our management team in the third quarter to develop our SBA lending business. Joe has a long history in SBA lending management and participation in various roles with key SBA trade organizations. In addition, CIBM successfully implemented a new customer relationship management system this past quarter -- this will assist in better meeting our customers' financial service needs and coordinate those efforts internally across our divisions and geographies."
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates 11 banking 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 quarter ended September 30, 2016, and, accordingly, no dividend will be paid to preferred shareholders for such Dividend Period.
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