(MENAFN- GlobeNewsWire - Nasdaq) itemprop="articleBody">BROOKFIELD, Wis., April 12, 2019 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the 'Company' or 'CIBM') (OTCQB: CIBH), the holding company of CIBM Bank, announced its unaudited results of operations and financial condition for the first quarter of 2019. Net income for the quarter ended March 31, 2019, was $0.6 million or $0.03 basic and $0.02 diluted earnings per share, compared to $0.7 million or $0.04 basic and $0.02 diluted earnings per share for the same period of 2018. Pre-tax income for the quarter ended March 31, 2019, was $0.9 million compared to $1.0 million for the same period of 2018.
Select highlights for the quarter include:
Tangible book value per share and stated book value per share at March 31, 2019, were $2.90 and $2.53 per share of common stock, respectively, compared to $2.82 and $2.45, respectively, at December 31, 2018. The increase reflects income for the quarter and a reduction in accumulated other comprehensive loss due to improved available for sale security values as a result of lower mid- and long-term interest rates. Income before taxes for subsidiary CIBM Bank was $0.8 million for the quarter ended March 31, 2019, compared to $1.1 million in the same period of 2018. Comparing the two periods, there was a $0.6 million decrease in non-interest income due primarily to lower mortgage production resulting in a $0.4 million decline in net mortgage banking revenues, and reduced SBA originations resulting in a $0.1 million decline in gain on sale of assets. There was likewise a reduction in non-interest expenses of $0.3 million due to a decline in compensation related mainly to the reduction in residential and SBA loan production. Non-performing assets, restructured loans, and loans 90 days or more past due and still accruing to total assets was 1.51% at March 31, 2019, versus 1.45% at December 31, 2018, and 0.85% at March 31, 2018. The increase from one year prior is primarily the result of one loan placed on non-accrual during the fourth quarter of 2018. CIB Marine's allowance for loan losses to total loans was 1.61% and had net recoveries of loans previously charged of $76,000 for the quarter ending March 31, 2019, compared to 1.55% and net charge-offs of $244,000 during the same period ending in 2018. Mr. J. Brian Chaffin, President and CEO of CIBM, commented, 'Net interest income was up for the first quarter compared to the first quarter of last year and, although it was behind compared to the fourth quarter of 2018, our net interest margin improved slightly over that same period. Our net interest margin has been challenged with rising cost of funds and some of our unique lower spread higher quality assets, like the SBA repo, even though the latter contributes favorably to the bottom line.'
He added, 'Our corporate banking team opened the year with stronger than budgeted originations despite a $5 million reduction of high-quality, short-term commercial paper in the loan portfolio. Our non-interest income business lines had a softer first quarter as our SBA group felt the effects of the government shut-down and our mortgage group was impacted by seasonal factors. Although we did not record any gains on the sale of SBA loans in the first quarter of 2019, the pipeline has grown and, coupled with lower mortgage rates, a seasonal turn in housing, and our welcoming of several new originators to the mortgage team, we are planning on a stronger second quarter for non-interest income.
'CIBM Bank and the industry as a whole have seen a significant upturn in their cost of funds and, in particular, at the margin for new and repricing deposits used to help fund the strong loan growth seen in our markets the last several years. CIBM continues to focus on its deposit products and services and plans to enhance them in 2019 through the addition of person-to-person and person-to-business electronic money transfer capabilities, and reciprocal deposit services (i.e., a transparent and convenient way of providing broader FDIC insurance coverage for larger balance clients). To support developing new deposit customers, we have upgraded our website, unified all markets and divisions under the name CIBM Bank, focused on ways to make banking with us easier and more convenient, and established a full-time marketing director position to ensure more consistent and proactive marketing activities in the future.
'Lastly, our shareholder meeting is just around the corner. We plan on providing an update on our banking activities and our preferred stock activities at the meeting, which will be held on April 25th in Champaign, Illinois. We hope to see many of you there.'
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates eleven banking offices and four mortgage loan 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, 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.
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,
2019 2018 2018 2018 2018 2019 2018
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data
Interest and dividend income $ 7,015 $ 7,009 $ 6,798 $ 6,387 $ 6,009 $ 7,015 $ 6,009
Interest expense 2,178 2,064 1,767 1,406 1,185 2,178 1,185
Net interest income 4,837 4,945 5,031 4,981 4,824 4,837 4,824
Provision for (reversal of) loan losses (158 ) (1,195 ) (13 ) 149 (126 ) (158 ) (126 )
Net interest income after provision for
(reversal of) loan losses 4,995 6,140 5,044 4,832 4,950 4,995 4,950
Noninterest income (1) 1,362 1,546 3,063 2,968 1,832 1,362 1,832
Noninterest expense 5,505 6,415 6,871 6,737 5,824 5,505 5,824
Income before income taxes 852 1,271 1,236 1,063 958 852 958
Income tax expense 229 313 345 241 289 229 289
Net income $ 623 $ 958 $ 891 $ 822 $ 669 $ 623 $ 669
Common Share Data
Basic net income per share (2) $ 0.03 $ 0.05 $ 0.14 $ 0.05 $ 0.04 $ 0.03 $ 0.04
Diluted net income per share (2) 0.02 0.03 0.07 0.02 0.02 0.02 0.02
Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tangible book value per share (3) 2.90 2.82 2.71 2.58 2.54 2.90 2.54
Book value per share (3) 2.53 2.45 2.34 2.10 2.06 2.53 2.06
Weighted average shares outstanding - basic 18,232,169 18,232,169 18,232,169 18,209,032 18,161,989 18,232,169 18,161,989
Weighted average shares outstanding - diluted 32,815,744 32,757,855 34,589,375 36,783,724 36,544,029 32,815,744 36,544,029
Financial Condition Data
Total assets $ 702,152 $ 721,259 $ 723,733 $ 694,812 $ 663,580 $ 702,152 $ 663,580
Loans 489,273 491,337 507,677 488,762 472,746 489,273 472,746
Allowance for loan losses (7,865 ) (7,947 ) (8,217 ) (8,055 ) (7,331 ) (7,865 ) (7,331 )
Investment securities 123,500 121,281 118,345 119,571 115,596 123,500 115,596
Deposits 542,938 536,931 523,729 517,452 484,258 542,938 484,258
Borrowings 57,220 86,710 104,357 76,427 79,227 57,220 79,227
Stockholders' equity 92,507 91,035 88,993 97,313 97,407 92,507 97,407
Financial Ratios and Other Data
Performance Ratios:
Net interest margin (4) 2.94 % 2.89 % 2.97 % 3.15 % 3.20 % 2.94 % 3.20 %
Net interest spread (5) 2.64 % 2.62 % 2.72 % 2.92 % 3.00 % 2.64 % 3.00 %
Noninterest income to average assets (6) 0.78 % 0.84 % 1.72 % 1.77 % 1.15 % 0.78 % 1.15 %
Noninterest expense to average assets 3.14 % 3.54 % 3.82 % 3.99 % 3.63 % 3.14 % 3.63 %
Efficiency ratio (7) 88.80 % 99.18 % 84.63 % 84.56 % 87.28 % 88.80 % 87.28 %
Earnings on average assets (8) 0.36 % 0.53 % 0.50 % 0.49 % 0.42 % 0.36 % 0.42 %
Earnings on average equity (9) 2.76 % 4.23 % 3.77 % 3.36 % 2.78 % 2.76 % 2.78 %
Asset Quality Ratios:
Nonaccrual loans to loans (10) 1.29 % 1.34 % 0.73 % 0.53 % 0.19 % 1.29 % 0.19 %
Nonaccrual loans, restructured loans and
loans 90 days or more past due and still
accruing to total loans (10) 1.66 % 1.62 % 1.09 % 0.82 % 0.53 % 1.66 % 0.53 %
Nonperforming assets, restructured loans
and loans 90 days or more past due and still
accruing to total assets (10) 1.51 % 1.45 % 1.11 % 0.94 % 0.85 % 1.51 % 0.85 %
Allowance for loan losses to total loans (10) 1.61 % 1.62 % 1.62 % 1.65 % 1.55 % 1.61 % 1.55 %
Allowance for loan losses to nonaccrual loans,
restructured loans and loans 90 days or
more past due and still accruing (10) 96.96 % 99.72 % 148.99 % 200.97 % 294.77 % 96.96 % 294.77 %
Net charge-offs (recoveries) annualized
to average loans (10) (0.06 %) (0.74 %) (0.14 %) (0.48 %) 0.21 % (0.06 %) 0.21 %
Capital Ratios:
Total equity to total assets 13.17 % 12.62 % 12.30 % 14.01 % 14.68 % 13.17 % 14.68 %
Total risk-based capital ratio 15.56 % 15.34 % 14.43 % 16.40 % 16.90 % 15.56 % 16.90 %
Tier 1 risk-based capital ratio 14.30 % 14.09 % 13.18 % 15.14 % 15.64 % 14.30 % 15.64 %
Leverage capital ratio 10.39 % 10.10 % 9.90 % 11.70 % 12.15 % 10.39 % 12.15 %
Other Data:
Number of employees (full-time equivalent) 177 183 188 184 184 177 184
Number of banking facilities 11 11 11 11 11 11 11
(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, and that difference was $1.7 million and $0.1 million for the third and second quarters of 2018, respectively.
(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. As presented here, shares of common outstanding excludes unvested Restricted Stock Awards totalling 1,331,384 shares of common stock at March 31, 2019.
(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.
CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
March 31, December 31, September 30, June 30, March 31,
2019 2018 2018 2018 2018
(Dollars in Thousands, Except Shares)
Assets
Cash and due from banks $ 8,168 $ 13,037 $ 10,055 $ 9,752 $ 10,829
Reverse repurchase agreements 42,729 58,662 45,076 28,403 23,032
Securities available for sale 121,115 118,926 116,013 117,221 113,227
Equity securities at fair value 2,385 2,355 2,332 2,350 2,369
Loans held for sale 4,467 4,632 8,145 15,407 6,689
Loans 489,273 491,337 507,677 488,762 472,746
Allowance for loan losses (7,865 ) (7,947 ) (8,217 ) (8,055 ) (7,331 )
Net loans 481,408 483,390 499,460 480,707 465,415
Federal Home Loan Bank Stock 2,003 3,172 3,870 2,610 2,857
Premises and equipment, net (1) 7,220 4,498 4,409 4,296 4,314
Accrued interest receivable 1,873 1,570 1,858 1,580 1,583
Deferred tax assets, net 21,156 21,422 22,410 22,604 22,836
Other real estate owned, net 2,466 2,486 2,494 2,494 3,164
Bank owned life insurance 4,613 4,590 4,565 4,541 4,516
Goodwill and other intangible assets 171 176 181 187 193
Other assets 2,378 2,343 2,865 2,660 2,556
Total Assets $ 702,152 $ 721,259 $ 723,733 $ 694,812 $ 663,580
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand $ 62,553 $ 63,507 $ 69,165 $ 72,839 $ 74,397
Interest-bearing demand 32,467 33,660 33,701 32,615 34,657
Savings 188,110 181,432 164,603 175,343 182,795
Time 259,808 258,332 256,260 236,655 192,409
Total deposits 542,938 536,931 523,729 517,452 484,258
Short-term borrowings 57,220 86,710 104,357 76,427 79,227
Accrued interest payable 727 710 694 497 398
Other liabilities 8,760 5,873 5,960 3,123 2,290
Total liabilities 609,645 630,224 634,740 597,499 566,173
Stockholders' Equity
Preferred stock, $1 par value; 5,000,000
authorized shares; 7% fixed rate noncumulative perpetual issued; 42,955 shares of series A and 3,380 shares of series B; convertible; aggregate liquidation preference- $46.3 million 39,384 39,384 39,384 50,107 51,000
Common stock, $1 par value; 75,000,000
authorized shares; 18,455,610 issued shares; 18,244,563 outstanding shares 18,456 18,456 18,454 18,454 18,384
Capital surplus 160,930 160,815 160,716 158,903 158,749
Accumulated deficit (125,173 ) (125,796 ) (126,754 ) (127,140 ) (127,962 )
Accumulated other comprehensive loss, net (556 ) (1,290 ) (2,273 ) (2,477 ) (2,230 )
Treasury stock 221,902 shares at cost (534 ) (534 ) (534 ) (534 ) (534 )
Total stockholders' equity 92,507 91,035 88,993 97,313 97,407
Total liabilities and stockholders' equity $ 702,152 $ 721,259 $ 723,733 $ 694,812 $ 663,580
(1) Increase in premise and equipment, net in 2018 is due to the adoption of new lease accounting standards effective January 1, 2019.
CIB MARINE BANCSHARES, INC.
Consolidated Statements of Operations (Unaudited)
At or for the
Quarters Ended 3 Months Ended
March 31, December 31, September 30, June 30, March 31, March 31, March 31,
2019 2018 2018 2018 2018 2019 2018
(Dollars in thousands)
Interest Income
Loans $ 5,693 $ 5,686 $ 5,638 $ 5,372 $ 5,125 $ 5,693 $ 5,125
Loans held for sale 85 86 112 117 73 85 73
Securities 804 828 720 720 775 804 775
Other investments 433 409 328 178 36 433 36
Total interest income 7,015 7,009 6,798 6,387 6,009 7,015 6,009
Interest Expense
Deposits 1,805 1,547 1,343 1,038 948 1,805 948
Short-term borrowings 373 517 424 368 237 373 237
Total interest expense 2,178 2,064 1,767 1,406 1,185 2,178 1,185
Net interest income 4,837 4,945 5,031 4,981 4,824 4,837 4,824
Provision for (reversal of) loan losses (158 ) (1,195 ) (13 ) 149 (126 ) (158 ) (126 )
Net interest income after provision for
(reversal of) loan losses 4,995 6,140 5,044 4,832 4,950 4,995 4,950
Noninterest Income
Deposit service charges 83 79 105 110 111 83 111
Other service fees 20 31 30 40 34 20 34
Mortgage Banking revenue, net 978 1,057 1,760 2,155 1,374 978 1,374
Other income 165 143 173 153 132 165 132
Net gains (losses) on sale of securities available for sale 0 0 (7 ) 0 22 0 22
Unrealized gains (losses) recognized on equity securities 30 23 (18 ) (18 ) (39 ) 30 (39 )
Net gains on sale of assets 86 213 1,020 528 198 86 198
Total noninterest income 1,362 1,546 3,063 2,968 1,832 1,362 1,832
Noninterest Expense
Compensation and employee benefits 3,687 4,206 4,514 4,682 4,056 3,687 4,056
Equipment 335 364 351 337 311 335 311
Occupancy and premises 456 423 378 422 417 456 417
Data Processing 166 169 184 162 154 166 154
Federal deposit insurance 82 74 51 48 49 82 49
Professional services 140 270 623 290 166 140 166
Telephone and data communication 78 86 78 79 78 78 78
Insurance 53 47 60 63 61 53 61
Other expense 508 776 632 654 532 508 532
Total noninterest expense 5,505 6,415 6,871 6,737 5,824 5,505 5,824
Income from operations
before income taxes 852 1,271 1,236 1,063 958 852 958
Income tax expense 229 313 345 241 289 229 289
Net income 623 958 891 822 669 623 669
Preferred stock dividend 0 0 0 0 0 0 0
Discount from repurchase of preferred shares 0 0 1,703 105 0 0 0
Net income allocated to
common stockholders $ 623 $ 958 $ 2,594 $ 927 $ 669 $ 623 $ 669
FOR INFORMATION CONTACT:
J. Brian Chaffin, President & CEO
(217) 355-0900
MENAFN1204201900703653ID1098382704
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.