SOURCE: CIB Marine Bancshares, Inc.

CIB Marine Bancshares, Inc.

April 11, 2016 13:05 ET

CIB Marine Bancshares, Inc. Announces 2016 First Quarter Results

WAUKESHA, WI--(Marketwired - April 11, 2016) - 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 2016. Net income for the first quarter was $952,000 or $0.05 per share. This compares to a loss of $795,000 or $0.04 per share for the fourth quarter of 2015 and net income of $26,000 or $0.00 per share for the first quarter of 2015.

Select highlights for the quarter include:

  • Return on average assets for the first quarter of 2016 is 0.66%, compared to -0.57% for the fourth quarter of 2015 and 0.02% for the first quarter of 2015.
  • Net income for subsidiary CIBM Bank was $662,000 -- reflecting solid improvements in net interest income and non-interest income due to the growth in loans and a growing mortgage division.
  • Total loans are up to $470.4 million at quarter end, representing a 5.7% increase from year-end 2015 and 21.7% increase from the first quarter of 2015.
  • Net interest income of $4.4 million for the quarter is an increase of $0.2 million from the fourth quarter of 2015 and $0.6 million from the first quarter of 2015.
  • Non-interest income of $2.1 million for the quarter is an increase of $1.5 million from the fourth quarter of 2015 and $0.7 million from the first quarter of 2015; reflecting a doubling of the mortgage lender force, seasonal factors, and $430,000 for the quarter in net gains from sale of OREO assets net of other write-downs.
  • Non-performing assets to total assets at quarter end was 1.96%, compared to 2.25% from year-end 2015 and 2.95% from the first quarter of 2015.
  • Net charge-offs to average loans for the quarter was -0.10% net recovery, compared to 0.03% net charge-off for the fourth quarter of 2015 and 0.06% net charge-off for the first quarter of 2015.
  • The first quarter results do not yet reflect the $1.1 million per annum cost savings announced in the February 4, 2016 Shareholder Letter, the effects of which will be more directly seen in the second half of the year.

"CIB Marine's performance for the quarter was very strong and reflects achievements in our core banking fronts, consistent with our strategy for growing the Company," said Mr. J. Brian Chaffin, President and Chief Executive Officer of CIB Marine Bancshares, Inc. "Quarterly earnings were up nicely as we continue to focus on revenue and profit goals. Performance was solid across the commercial and mortgage sales platforms with retail providing substantial new deposits to fund new asset growth."

Mr. Chaffin added, "At the same time, our operational areas of the bank were very active assimilating the new mortgage loan officers added at the end of last year, developing our SBA related business activities, and implementing the cost reduction strategy we announced previously that will provide a cost savings of $1.1 million per annum when fully implemented later in the year. As we look forward, there is no let-up on our part in growing our client relationship-based banking businesses along our corporate, mortgage and retail lines. We continue to pursue substantial targets across all business lines to deliver results for our shareholders and clients, but we are pleased with this quarter's performance as an indicator of the type of core banking results we plan on delivering. Loan pipelines continue to be developed, local market development for mortgages is ongoing, and we have hired dedicated SBA lending staff." 

Mr. Chaffin concluded, "We did get a boost from net gains on sales of assets net of write-downs of about $430,000 as a result of certain collection-related and other activities. Net of those gains, net income was $522,000 for the quarter reflecting both a higher amount and a better quality of earnings, which are the direct result of the strategic accomplishments of the Company and the progress it has made in growing its business."

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.

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     Three Months Ended  
March 31,
2016
  December 31, 2015   September 30,  2015   June 30,
2015
  March 31,
2015
    March 31,
2016
  March 31,
2015
 
(Dollars in thousands, except share and per share data)  
Selected Statement of Operations Data                              
Interest and dividend income $ 5,176   $ 4,874   $ 4,657   $ 4,539   $ 4,460     $ 5,176   $ 4,460  
Interest expense   735     654     595     557     571       735     571  
  Net interest income   4,441     4,220     4,062     3,982     3,889       4,441     3,889  
Provision for (reversal of) loan losses   61     215     (337 )   97     86       61     86  
  Net interest income after provision for (reversal of) loan losses  
4,380
   
4,005
   
4,399
   
3,885
   
3,803
     
4,380
   
3,803
 
Noninterest income (1)   2,053     592     1,022     1,436     1,376       2,053     1,376  
Noninterest expense   5,481     5,386     5,114     5,464     5,153       5,481     5,153  
  Income (loss) before income taxes   952     (789 )   307     (143 )   26       952     26  
Income tax expense   0     6     0     0     0       0     0  
  Net income (loss) $ 952   $ (795 ) $ 307   $ (143 ) $ 26     $ 952   $ 26  
                                             
Common Share Data                                            
  Basic net income (loss) per share $ 0.05   $ (0.04 ) $ 0.02   $ (0.01 ) $ 0.00     $ 0.05   $ 0.00  
  Diluted net income (loss) per share   0.03     (0.04 )   0.01     (0.01 )   0.00       0.03     0.00  
  Dividend   0     0     0     0     0       0     0  
  Tangible book value per share (2)   0.90     0.79     0.90     0.89     0.93       0.90     0.93  
  Book value per share (2)   0.41     0.31     0.42     0.41     0.45       0.41     0.45  
  Weighted average shares outstanding - basic   18,127,892     18,127,892     18,127,892     18,127,892     18,127,892       18,127,892     18,127,892  
  Weighted average shares outstanding - diluted   35,631,892     18,127,892     35,631,892     18,127,892     35,631,892       35,631,892     35,631,892  
Financial Condition Data                                            
  Total assets $ 597,089   $ 571,233   $ 531,744   $ 525,513   $ 522,346     $ 597,089   $ 522,346  
  Loans   470,424     445,050     414,643     394,319     386,588       470,424     386,588  
  Allowance for loan losses   (8,235 )   (8,064 )   (7,883 )   (7,670 )   (7,586 )     (8,235 )   (7,586 )
  Investment securities 97,474
    94,702     92,674     90,912
    96,696
      97,474
    96,696
 
  Deposits 467,334     443,571
    415,185     402,858     407,247
      467,334
    407,247
 
  Borrowings   57,929     58,883     45,396     52,288     43,753       57,929     43,753  
  Stockholders' equity   67,475     65,586     67,616     67,466     68,068       67,475     68,068  
Financial Ratios and Other Data                                            
  Performance Ratios:                                            
    Net interest margin (3)   3.15 %   3.14 %   3.18 %   3.18 %   3.22 %     3.15 %   3.22 %
    Net interest spread (4)   3.00 %   2.98 %   3.03 %   3.03 %   3.05 %     3.00 %   3.05 %
    Noninterest income to average assets (5)   1.42 %   0.43 %   0.77 %   1.11 %   1.09 %     1.42 %   1.09 %
    Noninterest expense to average assets   3.78 %   3.89 %   3.87 %   4.22 %   4.13 %     3.78 %   4.13 %
    Efficiency ratio (6)   84.40 %   111.93 %   100.59 %   100.85 %   98.12 %     84.40 %   98.12 %
    Earnings (loss) on average assets (7)   0.66 %   -0.57 %   0.23 %   -0.11 %   0.02 %     0.66 %   0.02 %
    Earnings (loss) on average equity (8)   5.75 %   -4.65 %   1.79 %   -0.84 %   0.15 %     5.75 %   0.15 %
Asset Quality Ratios:                                            
  Nonaccrual loans to loans (9)   0.81 %   0.70 %   0.75 %   1.39 %   1.55 %     0.81 %   1.55 %
  Nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing to total loans (9)  

1.67


%
 

1.96


%
 

1.68


%
 

2.44


%
 

2.63


%
   

1.67


%
 

2.63


%
  Nonperforming assets, restructured loans and loans 90 days or more past due and still accruing to total assets (9)  

1.96


%
 

2.25


%
 

2.20


%
 

2.83


%
 

2.95


%
   

1.96


%
 

2.95


%
  Allowance for loan losses to total loans   1.75 %   1.81 %   1.90 %   1.95 %   1.96 %     1.75 %   1.96 %
  Allowance for loan losses to nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing (9)  

105.00


%
 

92.25


%
 

113.03


%
 

79.70


%
 

74.66


%
   

105.00


%
 

74.66


%
  Net charge-offs (recoveries) annualized to average loans                                            
    -0.10 %   0.03 %   -0.54 %   0.01 %   0.06 %     -0.10 %   0.06 %
Capital Ratios:                                            
  Total equity to total assets   11.30 %   11.48 %   12.72 %   12.84 %   13.03 %     11.30 %   13.03 %
  Total risk-based capital ratio   15.18 %   15.45 %   16.57 %   16.86 %   16.94 %     15.18 %   16.94 %
  Tier 1 risk-based capital ratio   13.92 %   14.20 %   15.31 %   15.60 %   15.68 %     13.92 %   15.68 %
  Leverage capital ratio   11.72 %   12.27 %   13.01 %   13.09 %   13.45 %     11.72 %   13.45 %
Other Data:                                            
  Number of employees (full-time equivalent)   180     173     159     158     153       180     153  
  Number of banking facilities   11     11     11     11     10       11     10  
                                             
(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,
2016
  December
31,
2015
  September
30,
2015
  June 30,
2015
  March 31,
2015
 
   
  (Dollars in thousands, except share data)  
Assets                    
Cash and due from banks $ 9,136   $ 9,170   $ 8,037   $ 9,407   $ 6,694  
Securities available for sale   97,474     94,702     92,674     90,912     96,696  
Loans held for sale   10,176     12,275     5,157     18,440     20,359  
                               
Loans   470,424     445,050     414,643     394,319     386,588  
Allowance for loan losses   (8,235 )   (8,064 )   (7,883 )   (7,670 )   (7,586 )
  Net loans   462,189     436,986     406,760     386,649     379,002  
                               
Federal Home Loan Bank Stock   2,170     2,170     2,170     2,170     2,170  
Premises and equipment, net   4,716     4,771     4,830     4,826     4,790  
Accrued interest receivable   1,468     1,296     1,471     1,245     1,412  
Other real estate owned, net   3,859     4,126     4,698     5,229     5,259  
Bank owned life insurance   4,310     4,285     4,259     4,234     4,209  
Goodwill and other intangible assets   237     243     248     254     260  
Other assets   1,354     1,209     1,440     2,147     1,495  
  Total Assets $ 597,089   $ 571,233   $ 531,744   $ 525,513   $ 522,346  
                               
Liabilities and Stockholders' Equity                              
Deposits:                              
  Noninterest-bearing demand $ 74,564   $ 77,580   $ 70,644   $ 74,514   $ 75,121  
  Interest-bearing demand   32,096     33,192     30,320     29,909     33,149  
  Savings   175,576     162,663     153,134     155,364     159,105  
  Time   185,098     170,136     161,087     143,071     139,872  
    Total deposits   467,334     443,571     415,185     402,858     407,247  
Short-term borrowings   57,929     58,883     45,396     52,288     43,753  
Accrued interest payable   339     321     305     272     271  
Other liabilities   4,012     2,872     3,242     2,629     3,007  
    Total liabilities   529,614     505,647     464,128     458,047     454,278  
                               
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; 18,346,391 issued shares; 18,135,344 outstanding shares   18,346     18,346     18,346     18,346     18,346  
Capital surplus   158,493     158,493     158,493     158,493     158,493  
Accumulated deficit   (158,636 )   (159,588 )   (158,793 )   (159,100 )   (158,957 )
Accumulated other comprehensive loss, net   (1,199 )   (2,136 )   (901 )   (744 )   (285 )
Treasury stock 218,499 shares at cost   (529 )   (529 )   (529 )   (529 )   (529 )
    Total stockholders' equity   67,475     65,586     67,616     67,466     68,068  
    Total liabilities and stockholders' equity $ 597,089   $ 571,233   $ 531,744   $ 525,513   $ 522,346  
                               
 
CIB MARINE BANCSHARES, INC.
Consolidated Statements of Operations (Unaudited)
                                       
    At or for the  
    Quarters Ended     Three Months Ended  
 
 
  March 31,
2016
  December
31,
2015
    September
30,
2015
    June 30,
2015
    March 31,
2015
    March 31,
2016
  March 31,
2015
 
    (Dollars in thousands)  
                                       
Interest Income                                      
Loans   $ 4,572   $ 4,248     $ 4,044     $ 3,850     $ 3,830     $ 4,572   $ 3,830  
Loans held for sale     83     77       58       134       72       83     72  
Securities     517     546       553       552       555       517     555  
Other investments     4     3       2       3       3       4     3  
  Total interest income     5,176     4,874       4,657       4,539       4,460       5,176     4,460  
                                                     
Interest Expense                                                    
Deposits     705     640       583       542       562       705     562  
Short-term borrowings     30     14       12       15       9       30     9  
  Total interest expense     735     654       595       557       571       735     571  
  Net interest income     4,441     4,220       4,062       3,982       3,889       4,441     3,889  
Provision for (reversal of) loan losses     61     215       (337 )     97       86       61     86  
  Net interest income after provision for (reversal of) loan losses for (reversal of) loan losses    
4,380
   
4,005
     
4,399
     
3,885
     
3,803
     
4,380
   
3,803
 
                                                     
Noninterest Income                                                    
Deposit service charges     103     113       119       110       108       103     108  
Other service fees     67     60       73       54       49       67     49  
Mortgage Banking revenue, net     1,336     545       805       1,253       1,121       1,336     1,121  
Other income     117     104       102       50       188       117     188  
Net gains on sale of securities     0     0       0       0       13       0     13  
Net gains (losses) on sale of assets and (writedowns)    
430
   
(230

)
   
(77

)
   
(31

)
   
(103

)
   
430
   
(103

)
  Total noninterest income     2,053     592       1,022       1,436       1,376       2,053     1,376  
                                                     
Noninterest Expense                                                    
Compensation and employee benefits     3,624     3,419       3,195       3,443       3,458       3,624     3,458  
Equipment     273     277       262       261       268       273     268  
Occupancy and premises     435     396       404       376       400       435     400  
Data Processing     154     158       173       144       146       154     146  
Federal deposit insurance     106     104       110       106       105       106     105  
Professional services     249     228       277       284       153       249     153  
Telephone and data communication     109     113       86       103       109       109     109  
Insurance     54     53       55       56       57       54     57  
Other expense     477     638       552       691       457       477     457  
  Total noninterest expense     5,481     5,386       5,114       5,464       5,153       5,481     5,153  
Income (loss) from operations before income taxes     952     (789     307       (143     26       952     26  
Income tax expense     0     6       0       0       0       0     0  
  Net income (loss)     952     (795 )     307       (143 )     26       952     26  
Preferred stock dividend     0     0       0       0       0       0     0  
    Net income (loss) allocated to  common stockholders  
$

952
 
$

(795

)
 
$

307
   
$

(143

)
 
$

26
   
$

952
 
$

26
 

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