BROOKFIELD, Wis., Oct. 10, 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 nine months ended September 30, 2025. Improved net interest income and stronger mortgage operations both contributed to better operating results during the third quarter, compared to the prior quarter and the same period last year, as outlined below.
Net income for the quarter was $0.9 million, or $0.68 basic and $0.65 diluted earnings per share, compared to $1.1 million, or $0.79 basic and $0.59 diluted earnings per share, for the same period of 2024. Net income for the nine months ended September 30, 2025, was $1.9 million, or $1.41 basic and $1.37 diluted earnings per share, compared to $1.7 million, or $1.27 basic and $0.94 diluted earnings per share, for the same period of 2024, excluding the effects of the sale-leaseback transaction gain on sale in 2024.
Financial highlights for the quarter and nine-month period include:
-- Net interest margin rose to 2.78%, up from 2.69% in the second quarter of
2025 and 2.55% in the third quarter of 2024. The cost of funds for the
quarter declined 62 basis points compared to the same period in 2024, due
to the repricing of interest-bearing liabilities in a lower-cost interest
rate environment, while yields on earning assets declined by 26 basis
points. The net interest margin improved to 2.69% for the nine-month
period, up from 2.41% for the same period of 2024 as a 51 basis point
decline in the cost of funds outpaced a 15 basis point decrease in yields
on earning assets. Net interest income increased $0.1 million for the
quarter compared to the second quarter of 2025, rose nominally compared
to the same quarter in 2024, and was up $0.7 million for the nine months
ended September 30th compared to the same period of 2024. Although net
interest margins increased, net interest income saw only modest growth in
the third quarter of 2025 compared to the same period in 2024 primarily
due to a $56 million decline in average loan balances and an $8 million
decrease in average non-interest bearing checking account balances. The
decline in loan balances was partly due to prior-year efforts to reduce
loan balances in support of preferred stock redemption, as well as a
higher-than-expected volume of early payoffs in 2025 for reasons
unrelated to service.
-- Quarter-end loan balances declined by $10 million from June 30, 2025, and
by $52 million from December 31, 2024. The allowance for credit losses to
loans ratio rose from 1.26% at December 31, 2024, and 1.32% at June 30,
2025, to 1.33% at September 30, 2025, primarily due to prior
deterioration in the Federal Reserve's economic forecasts used in the
Company's credit loss analysis. While the forecast has recently begun
to improve, our portfolio mix has shifted toward commercial loans, which
carry higher reserve rates than residential loans. Additionally, we
increased the allowance for certain non-accrual loans, which are
evaluated at an individual loan level.
-- As of September 30, 2025, non-performing assets represented 0.75% of
total assets, and non-accrual loans accounted for 0.95% of total
loans--up from 0.68% and 0.85%, respectively, on June 30, 2025, and 0.68%
and 0.81% on December 31, 2024. Business plans continue to target higher
loan balances by year-end 2025, primarily driven by anticipated growth in
the commercial segments. As of quarter-end, non-performing loans, other
real estate loans, modified loans to borrowers experiencing financial
difficulty and loans 90 days or more past due but still accruing totaled
1.87% of total assets compared to 1.85% at June 30, 2025, 0.97% at March
31, 2025, and 0.98% at December 31, 2024. The increase was primarily due
to two commercial loans--one a restructured loan in the transportation
industry, and the other 90 days or more past due but still accruing and
in the process of collection.
-- The Banking Division reported net income of $2.6 million for the nine
months ended September 30, 2025, a $0.2 million improvement over the same
period in 2024 excluding the sale-leaseback transaction gain on sale,
driven primarily by higher net interest margins and continued cost
controls, but limited by a decline in the loan portfolio. The Mortgage
Division's $0.1 million net income for the nine months ended September
30, 2025, is an improvement of $0.1 million over the prior year. This
modest gain reflects the reduction in lending staff noted in the
first-quarter earnings release. The net remaining Other Division,
comprised primarily of parent company operations, had a net loss of $0.7
million with roughly one-third of that amount attributed to subordinated
debt interest expense.
Mr. J. Brian Chaffin, CIB Marine's President and CEO, commented, "Improved net interest margins and disciplined expense management contributed to stronger results from the Banking Division. While loan balances declined, our commercial team continues to build momentum, with growth targeted by year-end. The Mortgage Division posted modest gains in operating results, supported by increased refinance activity. Despite reduced staffing, expense controls continue to support improved operating results and our team remains well-positioned to perform in a competitive market."
He concluded, "In early October 2025, CIBM Bank received regulatory approval and distributed $3 million in capital to its parent company, CIB Marine Bancshares, Inc. The parent company also maintains a $2 million line of credit, though no draws have been made to date. These available resources support the 2025 common stock repurchase program, which authorizes up to $1 million in buybacks. During the third quarter, 4,800 shares were repurchased through open-market transactions for a total of $170,820 at an average price of $35.59 per share. Year to date, 20,312 shares have been repurchased for $667,558 at an average price of $32.87 per share. Provided current trends continue, we expect to complete the repurchase program by year-end."
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 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 9 Months Ended
--------------------------------------------------------------- --------------------------
September December September September
30, June 30, March 31, 31, 30, 30, September 30,
2025 2025 2025 2024 2024 2025 2024
(Dollars in thousands, except share and per share
data)
Selected Statement of
Operations Data:
Interest and dividend
income $ 10,780 $ 11,017 $ 10,941 $ 11,408 $ 12,283 $ 32,738 $ 36,136
Interest expense 5,196 5,541 5,652 6,259 6,707 16,389 20,444
--------- --------- --------- --------- --------- --------- ---------
Net interest income 5,584 5,476 5,289 5,149 5,576 16,349 15,692
Provision for (reversal
of) credit losses (90) 9 42 (332) (113) (39) (131)
--------- --------- --------- --------- --------- --------- ---------
Net interest income
after provision for
(reversal of) credit
losses 5,674 5,467 5,247 5,481 5,689 16,388 15,823
Noninterest income (1) 1,908 1,765 1,552 1,724 2,897 5,225 11,428
Noninterest expense 6,375 6,311 6,373 6,678 7,163 19,059 20,488
--------- --------- --------- --------- --------- --------- ---------
Income before income
taxes 1,207 921 426 527 1,423 2,554 6,763
Income tax expense 299 253 105 123 347 657 1,725
--------- --------- --------- --------- --------- --------- ---------
Net income (loss) $ 908 $ 668 $ 321 $ 404 $ 1,076 $ 1,897 $ 5,038
========= ========= ========= ========= ========= ========= =========
Common Share Data:
Basic net income (loss)
per share (2) $ 0.68 $ 0.50 $ 0.24 $ 0.60 $ 0.79 $ 1.41 $ 3.73
Diluted net income
(loss) per share (2) 0.65 0.48 0.23 0.54 0.59 1.37 2.75
Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tangible book value per
share (3) 60.72 59.55 58.46 57.37 57.80 60.72 57.80
Book value per share
(3) 60.77 59.59 58.51 57.42 56.06 60.77 56.06
Weighted average shares
outstanding - basic 1,345,233 1,349,613 1,348,995 1,357,737 1,357,259 1,341,077 1,351,205
Weighted average shares
outstanding - diluted 1,391,648 1,397,365 1,396,274 1,507,344 1,833,586 1,388,222 1,828,956
Financial Condition Data:
Total assets $ 836,760 $ 838,441 $ 852,018 $ 866,474 $ 888,283 $ 836,760 $ 888,283
Loans 655,620 665,393 684,787 697,093 707,310 655,620 707,310
Allowance for credit
losses on loans (8,721) (8,793) (8,818) (8,790) (8,973) (8,721) (8,973)
Investment securities 128,214 126,795 124,109 120,339 120,349 128,214 120,349
Deposits 702,078 684,480 692,028 692,378 747,168 702,078 747,168
Borrowings 39,245 59,292 67,214 81,735 33,583 39,245 33,583
Stockholders' equity 81,789 80,492 79,309 77,961 92,358 81,789 92,358
Financial Ratios and
Other Data:
Performance Ratios:
Net interest margin
(4) 2.78% 2.69% 2.62% 2.44% 2.55% 2.69% 2.41%
Net interest spread
(5) 2.17% 2.06% 1.99% 1.74% 1.81% 2.07% 1.71%
Noninterest income to
average assets (6) 0.91% 0.83% 0.73% 0.82% 1.25% 0.82% 1.69%
Noninterest expense
to average assets 3.06% 3.00% 3.05% 3.06% 3.17% 3.04% 3.04%
Efficiency ratio (7) 85.33% 87.24% 93.65% 96.17% 85.32% 88.61% 75.67%
Earnings (loss) on
average assets (8) 0.44% 0.32% 0.15% 0.19% 0.48% 0.30% 0.75%
Earnings (loss) on
average equity (9) 4.46% 3.36% 1.65% 1.94% 4.71% 3.18% 7.74%
Asset Quality Ratios:
Nonaccrual loans to
loans (10) 0.95% 0.85% 0.84% 0.81% 0.44% 0.95% 0.44%
Nonperformance assets
to total assets (11) 0.75% 0.68% 0.67% 0.68% 0.38% 0.75% 0.38%
Nonaccrual loans,
modified loans to
borrowers experiencing
financial difficulty,
loans 90 days or more
past due and still
accruing to total loans 2.38% 2.33% 1.21% 1.19% 1.68% 2.38% 1.68%
Nonaccrual loans, OREO,
modified loans to
borrowers experiencing
financial difficulty,
loans 90 days or more
past
due and still accruing
to total assets 1.87% 1.85% 0.97% 0.98% 1.36% 1.87% 1.36%
Allowance for credit
losses on loans to
total loans (10) 1.33% 1.32% 1.29% 1.26% 1.27% 1.33% 1.27%
Allowance for credit
losses on loans to
nonaccrual loans,
modified loans to
borrowers experiencing
financial difficulty
loans and loans 90
days or more past due
and still accruing
(10) 55.78% 56.76% 106.25% 105.95% 75.68% 55.78% 75.68%
Net charge-offs
(recoveries)
annualized to average
loans (10) 0.00% -0.02% -0.01% -0.01% -0.01% -0.01% 0.02%
Capital Ratios:
Total equity to total
assets 9.77% 9.60% 9.31% 9.00% 10.40% 9.77% 10.40%
Total risk-based
capital ratio 13.90% 13.55% 13.34% 13.02% 14.54% 13.90% 14.54%
Tier 1 risk-based
capital ratio 11.15% 10.82% 10.62% 10.33% 11.90% 11.15% 11.90%
Leverage capital ratio 8.88% 8.54% 8.40% 8.14% 9.30% 8.88% 9.30%
Other Data:
Number of employees
(full-time
equivalent) 143 144 152 165 170 143 170
Number of banking
facilities 9 9 9 9 9 9 9
(1) Noninterest income includes gains and losses on
securities.
(2) 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 $0.4 million
for the quarter ended December 31, 2024.
(3) 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.
(4) Net interest margin is the ratio of net interest
income to average interest-earning assets.
(5) Net interest spread is the yield on average interest-earning
assets less the rate on average interest-bearing liabilities.
(6) Noninterest income to average assets excludes
gains and losses on securities.
(7) The efficiency ratio is noninterest expense divided
by the sum of net interest income plus noninterest
income, excluding gains and losses on securities.
(8) Earnings on average assets are net income divided
by average total assets.
(9) Earnings on average equity are net income divided
by average stockholders' equity.
(10) Excludes loans held for sale.
(11)Nonperforming assets includes nonaccrual loans,
nonaccrual securities, and other real estate owned.
CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
September December September
30, June 30, March 31, 31, 30,
2025 2025 2025 2024 2024
(Dollars in Thousands, Except Shares)
Assets
Cash and due from
banks $ 19,016 $ 10,363 $ 7,717 $ 6,748 $ 13,814
Reverse repurchase
agreements - - - - -
Securities available
for sale 126,017 124,618 121,939 118,206 118,145
Equity securities at
fair value 2,197 2,177 2,170 2,133 2,204
Loans held for sale 7,287 7,733 7,685 13,291 19,472
Loans 655,620 665,393 684,787 697,093 707,310
Allowance for credit
losses on loans (8,721) (8,793) (8,818) (8,790) (8,973)
------- ------- ------- ------- --------
Net loans 646,899 656,600 675,969 688,303 698,337
Federal Home Loan Bank
Stock 2,195 3,401 2,607 2,607 2,238
Premises and
equipment, net 1,731 1,660 1,486 1,570 1,526
Accrued interest
receivable 2,803 2,733 2,680 2,651 2,926
Deferred tax assets,
net 11,745 12,160 12,529 12,955 12,796
Other real estate
owned, net - - - 200 211
Bank owned life
insurance 6,589 6,536 6,486 6,437 6,388
Goodwill and other
intangible assets 64 64 64 64 64
Other assets 10,217 10,396 10,686 11,309 10,162
Total assets $836,760 $838,441 $852,018 $866,474 $ 888,283
======= ======= ======= ======= ========
Liabilities and
Stockholders' Equity
Deposits:
Noninterest-bearing
demand $ 95,307 $ 87,479 $ 98,403 $ 86,886 $ 95,471
Interest-bearing
demand 107,512 74,921 77,620 84,833 90,095
Savings 222,450 226,663 232,046 224,960 234,969
Time 276,809 295,417 283,959 295,699 326,633
------- ------- ------- ------- --------
Total deposits 702,078 684,480 692,028 692,378 747,168
Short-term borrowings 29,458 49,514 57,444 71,973 23,829
Long-term borrowings 9,787 9,778 9,770 9,762 9,754
Accrued interest
payable 1,456 1,656 1,614 1,911 2,101
Other liabilities 12,192 12,521 11,853 12,489 13,073
------- ------- ------- ------- --------
Total liabilities 754,971 757,949 772,709 788,513 795,925
Stockholders' Equity
Preferred stock, $1
par value; 5,000,000
authorized shares at
periods prior to
December 31, 2024; 7%
fixed rate
noncumulative
perpetual issued;
14,633 shares of
series A and 1,610
shares of series B;
convertible; $16.2
million aggregate
liquidation
preference - - - - 13,806
Common stock, $1 par
value; 75,000,000
authorized shares;
1,385,842 and
1,372,642 issued
shares; 1,346,597 and
1,358,473 outstanding
shares at September
30, 2025 and December
31, 2024,
respectively (1) 1,386 1,386 1,383 1,372 1,372
Capital surplus 182,003 181,908 181,801 181,708 181,603
Accumulated deficit (97,591) (98,498) (99,167) (99,487) (100,297)
Accumulated other
comprehensive income
(loss), net (2,808) (3,273) (3,939) (5,098) (3,592)
Treasury stock, 39,967
shares on September
30, 2025 and 14,791
shares December 31,
2024 (2) (1,201) (1,031) (769) (534) (534)
------- ------- ------- ------- --------
Total
stockholders'
equity 81,789 80,492 79,309 77,961 92,358
Total liabilities
and stockholders'
equity $836,760 $838,441 $852,018 $866,474 $ 888,283
======= ======= ======= ======= ========
(1) Both issued and outstanding shares as stated here
exclude 45,546 shares and 42,259 shares of unvested
restricted stock awards at September 30, 2025 and
December 31, 2024, respectively.
(2) Treasury stock includes 722 shares held by subsidiary
bank CIBM Bank.
CIB MARINE BANCSHARES, INC.
Consolidated Statements of Operations (Unaudited)
At or for the
----------------------------------------------------------------------------------
Quarters Ended 9 Months Ended
------------------------------------------------------ --------------------------
September March December September September
30, June 30, 31, 31, 30, 30, September 30,
2025 2025 2025 2024 2024 2025 2024
(Dollars in thousands)
Interest Income
Loans $ 9,347 $ 9,653 $ 9,623 $ 9,999 $ 10,573 $ 28,623 $ 31,549
Loans held for sale 123 149 137 215 300 409 655
Securities 1,229 1,186 1,150 1,151 1,183 3,565 3,631
Other investments 81 29 31 43 227 141 301
Total interest
income 10,780 11,017 10,941 11,408 12,283 32,738 36,136
Interest Expense
Deposits 4,772 4,795 5,029 5,638 6,354 14,596 19,047
Short-term
borrowings 302 625 504 500 232 1,431 1,035
Long-term
borrowings 122 121 119 121 121 362 362
Total interest
expense 5,196 5,541 5,652 6,259 6,707 16,389 20,444
------ ------ ------ ------ ------ ------ ------
Net interest
income 5,584 5,476 5,289 5,149 5,576 16,349 15,692
Provision for
(reversal of)
credit losses (90) 9 42 (332) (113) (39) (131)
------ ------ ------ ------ ------ ------ ------
Net interest
income after
provision for
(reversal of)
credit losses 5,674 5,467 5,247 5,481 5,689 16,388 15,823
Noninterest Income
Deposit service
charges 62 65 59 55 63 186 196
Other service fees (7) (10) (9) (5) (5) (26) (9)
Mortgage banking
revenue, net 1,483 1,424 1,140 1,564 2,264 4,047 5,639
Other income 239 279 177 192 150 695 586
Net gains on sale
of securities
available for
sale 0 0 0 0 0 0 0
Unrealized gains
(losses)
recognized on
equity securities 21 7 36 (71) 78 64 46
Net gains (loss) on
sale of SBA loans 110 0 161 0 420 271 622
Net gains on sale
of assets and
(writedowns) 0 0 (12) (11) (73) (12) 4,348
Total
noninterest
income 1,908 1,765 1,552 1,724 2,897 5,225 11,428
Noninterest Expense
Compensation and
employee benefits 4,047 4,060 4,066 4,344 4,852 12,173 13,841
Equipment 577 583 559 467 504 1,719 1,423
Occupancy and
premises 514 519 549 500 495 1,582 1,322
Data Processing 243 212 221 220 243 676 663
Federal deposit
insurance 138 101 129 144 182 368 600
Professional
services 205 218 278 240 254 701 672
Telephone and data
communication 65 57 52 74 51 174 158
Insurance 92 75 64 71 78 231 239
Other expense 494 486 455 618 504 1,435 1,570
Total
noninterest
expense 6,375 6,311 6,373 6,678 7,163 19,059 20,488
------ ------ ------ ------ ------ ------ ------
Income from
operations
before income
taxes 1,207 921 426 527 1,423 2,554 6,763
Income tax expense 299 253 105 123 347 657 1,725
Net income
(loss) 908 668 321 404 1,076 1,897 5,038
Preferred stock
dividend 0 0 0 0 0 0 0
Discount from
repurchase of
preferred stock 0 0 0 406 0 0 0
------ ------ ------ ------ ------ ------ ------
Net income
(loss)
allocated to
common
stockholders $ 908 $ 668 $ 321 $ 810 $ 1,076 $ 1,897 $ 5,038
====== ====== ====== ====== ====== ====== ======
(END) Dow Jones Newswires
October 10, 2025 05:56 ET (09:56 GMT)