CIB Marine Bancshares, Inc. Announces First Quarter 2025 Results
BROOKFIELD, Wis., April 11, 2025 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the "Company" or "CIB Marine") (OTCQX:CIBH), the holding company of CIBM Bank (the "Bank"), announced its unaudited results of operations and financial condition for the quarter and three months ended March 31, 2025. Net income of $0.3 million for the first quarter of 2025, or $0.24 basic and $0.23 diluted net income per share, compares to $0.2 million during the same quarter of 2024, or $0.13 basic and $0.10 diluted net income per share.
Financial highlights for the quarter include:
Net interest margin increased to 2.62% compared to 2.44% for the fourth quarter of 2024 and 2.29% for the first quarter of 2024. The rising trend continues as the cost of funds reprices lower relative to the changes in yields on earning assets. Net interest income rose $0.3 million compared to the same quarter of 2024, primarily due to declining cost of funds and improved net interest margin.
Although quarter-end loan balances declined $12 million compared to December 31, 2024, the allowance for credit losses to loans rose from 1.26% to 1.29%, primarily due to a deterioration in forecasted short-term economic outcomes. Non-performing assets to total assets of 0.67% and non-accrual loans to loans of 0.84% on March 31, 2025, compares to 0.68% and 0.81%, respectively, on December 31, 2024. In 2024, the Bank maintained lower loan balances to support the preferred stock redemption and ensure appropriate capital ratios. Looking ahead, an increase in the loan portfolio is expected over the remainder of the year, primarily driven by growth in the commercial segments.
The Banking Division's $0.8 million of net income for the quarter was unchanged from the same period the prior year. Due to seasonal factors and high interest rates, the Mortgage Division experienced a slow first quarter, resulting in a net loss of $0.2 million, which is an improvement of $0.2 million compared to the same period in 2024 due to cost-saving actions implemented earlier. The net remaining Other Division, comprised primarily of parent company operations, had a net loss of $0.3 million with roughly one-third of that amount attributed to subordinated debt interest expense. Although the parent company has a $2 million line of credit, no draws have been made on that potential funding source to date.
Mr. J. Brian Chaffin, CIB Marine's President and CEO, commented, "Our banking operations have gained momentum, with our strong corporate banking group rebuilding the commercial loan pipeline and our net interest margin trending higher due to management's diligent efforts to lower our cost of funds. Despite an improvement of $0.2 million from the first quarter of the previous year, the Mortgage Division reported a loss due to the challenging business environment for residential mortgages. We anticipate a decline in overall mortgage production for the remainder of the year compared to the previous year, primarily due to lender staff reductions, but remain confident in the capabilities of our current lending team to deliver solid mortgage production."
He added, "In February, we announced the launch of our 2025 common stock repurchase program, which is expected to buy back up to $1 million worth of shares through the end of the year. During the first quarter of 2025, we spent $235,000 in open market transactions to buy 7,429 shares at an average price of $31.65 per share. This price was significantly lower than the tangible book value of $57.37 per share as of December 31, 2024, and the repurchases contributed to an increase in the tangible book value to $58.46 per share by March 31, 2025."
As the Company prepares for its upcoming annual meeting, he concluded, "We look forward to discussing key topics related to our operating results and capital plans at the Annual Shareholder Meeting on Thursday, April 24th, 2025. Shareholders are encouraged to visit our website for more information about the virtual meeting and to review the meeting materials."
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates nine banking offices in Illinois, Wisconsin, and Indiana, and has mortgage loan officers and/or offices in six states. 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 STATEMENTSCIB 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)
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,
2025
2024
2024
2024
2024
2025
2024
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income
$
10,941
$
11,408
$
12,283
$
12,052
$
11,801
$
10,941
$
11,801
Interest expense
5,652
6,259
6,707
6,897
6,840
5,652
6,840
Net interest income
5,289
5,149
5,576
5,155
4,961
5,289
4,961
Provision for (reversal of) credit losses
42
(332
)
(113
)
10
(28
)
42
(28
)
Net interest income after provision for
(reversal of) credit losses
5,247
5,481
5,689
5,145
4,989
5,247
4,989
Noninterest income (1)
1,552
1,724
2,897
6,904
1,627
1,552
1,627
Noninterest expense
6,373
6,678
7,163
6,904
6,421
6,373
6,421
Income before income taxes
426
527
1,423
5,145
195
426
195
Income tax expense
105
123
347
1,361
17
105
17
Net income (loss)
$
321
$
404
$
1,076
$
3,784
$
178
$
321
$
178
Common Share Data:
Basic net income (loss) per share (2)
$
0.24
$
0.60
$
0.79
$
2.79
$
0.13
$
0.24
$
0.13
Diluted net income (loss) per share (2)
0.23
0.54
0.59
2.06
0.10
0.23
0.10
Dividend
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tangible book value per share (3)
58.46
57.37
57.80
55.36
52.59
58.46
52.59
Book value per share (3)
58.51
57.42
56.06
53.61
50.84
58.51
50.84
Weighted average shares outstanding - basic
1,348,995
1,357,737
1,357,259
1,356,255
1,341,181
1,348,995
1,341,181
Weighted average shares outstanding - diluted
1,396,274
1,507,344
1,833,586
1,833,881
1,820,498
1,396,274
1,820,498
Financial Condition Data:
Total assets
$
852,018
$
866,474
$
888,283
$
901,634
$
897,595
$
852,018
$
897,595
Loans
684,787
697,093
707,310
719,129
736,019
684,787
736,019
Allowance for credit losses on loans
(8,818
)
(8,790
)
(8,973
)
(9,083
)
(9,087
)
(8,818
)
(9,087
)
Investment securities
124,109
120,339
120,349
123,814
119,300
124,109
119,300
Deposits
692,028
692,378
747,168
768,984
772,377
692,028
772,377
Borrowings
67,214
81,735
33,583
28,222
32,120
67,214
32,120
Stockholders' equity
79,309
77,961
92,358
89,008
85,091
79,309
85,091
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (4)
2.62
%
2.44
%
2.55
%
2.38
%
2.29
%
2.62
%
2.29
%
Net interest spread (5)
1.99
%
1.74
%
1.80
%
1.71
%
1.63
%
1.99
%
1.63
%
Noninterest income to average assets (6)
0.73
%
0.82
%
1.25
%
3.09
%
0.73
%
0.73
%
0.73
%
Noninterest expense to average assets
3.05
%
3.06
%
3.17
%
3.09
%
2.87
%
3.05
%
2.87
%
Efficiency ratio (7)
93.65
%
96.17
%
85.32
%
57.19
%
97.20
%
93.65
%
97.20
%
Earnings (loss) on average assets (8)
0.15
%
0.19
%
0.48
%
1.69
%
0.08
%
0.15
%
0.08
%
Earnings (loss) on average equity (9)
1.65
%
1.94
%
4.71
%
17.92
%
0.84
%
