CIB Marine Bancshares, Inc. (CIBH: OTCQB) | CIB Marine Bancshares, Inc. Announces 2016 Results

OTC

CIB Marine Bancshares, Inc. Announces 2016 Results

Jan 13, 2017

OTC Disclosure News Service

– CIB Marine Bancshares, Inc. Announces 2016 Results

WAUKESHA, WI–(Marketwired – January 13, 2017) – 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 fourth quarter and year of 2016. Net income for the fourth quarter of 2016 was $1.4 million or $0.08 basic and $0.04 diluted earnings per share compared to a loss of $0.8 million or $0.04 basic and diluted earnings per share for the same period in 2015, and for the year ended December 31, 2016, net income was $4.4 million or $0.24 basic and $0.12 diluted earnings per share compared to a loss of $0.6 million or $0.03 basic and diluted earnings per share for the same period of 2015.

Select highlights for the quarter and year include:

  • Return on average assets was 0.71% for the year 2016, a substantial improvement over the (0.12%) reported for the year 2015.
  • Net income for subsidiary CIBM Bank was $4.6 million for the year 2016, an increase of $4.3 million from the year 2015.
  • Net interest income increased $1.8 million for the year 2016 compared 2015. The increase was primarily due to a $64 million dollar increase in average loans outstanding.
  • Non-interest income increased $5.0 million for the year 2016 compared to the same period of 2015, due primarily to mortgage activity and, to a lesser extent, gains related to assets previously charged or written down. For the quarter, net mortgage banking revenues were down $0.9 million due to seasonal factors and the increase in interest rates.
  • Reversal of loan losses was $0.9 million for the year ending December 31, 2016, compared to a provision for loan losses of $0.1 million for the same period in 2015. The reversal of loan losses was related to a $1.5 million structured settlement payment announced earlier in 2016 which has been received and recorded in the allowance for loan losses as a recovery of loans previously charged off.
  • Noninterest expenses rose for the year 2016 by $2.7 million versus the prior year, primarily due to a $2.9 million increase in compensation caused by commissions for higher loan originations offset by reductions in other areas.
  • Non-performing assets to total assets were 1.83% at the year-end 2016, down from 2.25% the prior year end and up from 1.32% at September 30, 2016. The increase from the prior quarter-end was due primarily to one relationship.
  • Net recoveries for loans previously charged off to average loans was (0.24%) for the year ending December 31, 2016, compared to (0.11%) for the same period in the prior year.

“CIB Marine completed a successful year in 2016 and is pleased to be reporting for the year an increase of 74% in the book value per share of common stock and progress in a number of strategic areas of the company,” said Mr. J. Brian Chaffin, President and Chief Executive Officer of CIB Marine Bancshares, Inc. “For the year 2016 our loan portfolio grew on net 8.8% reflecting more than $100 million in new portfolio loan originations, deposits grew 8.9% and mortgage revenues grew 92%. In addition, we started our SBA lending and facility financing activities; executed a significant expense management program; and made a number of investments in information technology to enhance our services and improve product delivery, as well as fund a number of security and infrastructure measures.”

Mr. Chaffin added, “Our eyes and energy are focused on 2017 and the future now. Interest rates are higher across the yield curve over the past year and Fed policy rates are forecast to increase further in 2017. During 2017 we expect a softer residential lending market due to the increase in mortgage rates, but we continue to work on expanding our mortgage lending activities more deeply through our banking markets and we are optimistic our SBA lending activities will increase over the prior year. Our traditional retail and commercial community banking activities contributed significantly to the results in 2016 and we are working towards continued development and growth of our customer relationships within the communities where we live and work.”

CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates 11 banking offices and 3 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.

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 period ended December 31, 2016 and, accordingly, no dividend will be paid to preferred shareholders for such Dividend Period.

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.

 
At or for the
 
Quarters Ended

 Years Ended
 
December 31,
 September 30,
 June 30,
 March 31,
 December 31,

 December 31,
 December 31,
 
2016
 2016
 2016
 2016
 2015

 2016
 2015
 
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data
  
   
   
   
   

   
   
Interest and dividend income
$5,273
 $5,286
 $5,214
 $5,176
 $4,874

 $20,949
 $18,530
Interest expense
 793
  740
  729
  735
  654

  2,997
  2,377
 Net interest income
 4,480
  4,546
  4,485
  4,441
  4,220

  17,952
  16,153
Provision for (reversal of) loan losses
 (1,101)
  69
  118
  61
  215

  (853)
  61
 Net interest income after provision for (reversal of) loan losses
 5,581
  4,477
  4,367
  4,380
  4,005

  18,805
  16,092
Noninterest income (1)
 1,908
  2,651
  2,788
  2,053
  592

  9,400
  4,426
Noninterest expense
 6,127
  6,220
  5,951
  5,481
  5,386

  23,779
  21,117
 Income (loss) before income taxes
 1,362
  908
  1,204
  952
  (789)

  4,426
  (599)
Income tax expense
 (5)
  40
  15
  0
  6

  50
  6
 Net income (loss)
$1,367
 $868
 $1,189
 $952
 $(795)

 $4,376
 $(605)
 
  
   
   
   
   

   
   
Common Share Data
  
   
   
   
   

   
   
 Basic net income (loss) per share
$0.08
 $0.05
 $0.07
 $0.05
 $(0.04)

 $0.24
 $(0.03)
 Diluted net income (loss) per share
 0.04
  0.02
  0.03
  0.03
  (0.04)

  0.12
  (0.03)
 Dividend
 0
  0
  0
  0
  0

  0
  0
 Tangible book value per share (2)
 1.03
  1.04
  0.99
  0.90
  0.79

  1.03
  0.79
 Book value per share (2)
 0.54
  0.56
  0.51
  0.41
  0.31

  0.54
  0.31
 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
 36,082,522
  35,818,022
  35,631,892
  35,631,892
  18,127,892

  35,791,952
  18,127,892
Financial Condition Data
  
   
   
   
   

   
   
 Total assets
$653,864
 $632,628
 $615,708
 $597,089
 $571,233

 $653,864
 $571,233
 Loans
 484,255
  466,057
  461,859
  470,424
  445,050

  484,255
  445,050
 Allowance for loan losses
 (8,329)
  (8,549)
  (8,219)
  (8,235)
  (8,064)

  (8,329)
  (8,064)
 Investment securities
 112,072
  103,853
  103,542
  97,474
  94,702

  112,072
  94,702
 Deposits
 483,097
  476,428
  468,377
  467,334
  443,571

  483,097
  443,571
 Borrowings
 96,944
  81,636
  72,833
  57,929
  58,883

  96,944
  58,883
 Stockholders’ equity
 69,828
  70,094
  69,266
  67,475
  65,586

  69,828
  65,586
Financial Ratios and Other Data
  
   
   
   
   

   
   
 Performance Ratios:
  
   
   
   
   

   
   
  Net interest margin (3)
 2.84%
  2.95%
  3.11%
  3.15%
  3.14%

  3.01%
  3.18%
  Net interest spread (4)
 2.70%
  2.80%
  2.96%
  3.00%
  2.98%

  2.86%
  3.03%
  Noninterest income to average assets (5)
 1.18%
  1.68%
  1.88%
  1.42%
  0.43%

  1.53%
  0.84%
  Noninterest expense to average assets
 3.79%
  3.93%
  4.02%
  3.78%
  3.89%

  3.88%
  4.02%
  Efficiency ratio (6)
 95.91%
  86.42%
  81.82%
  84.40%
  111.93%

  86.94%
  102.68%
  Earnings (loss) on average assets (7)
 0.85%
  0.55%
  0.80%
  0.66%
  -0.57%

  0.71%
  -0.12%
  Earnings (loss) on average equity (8)
 7.63%
  4.89%
  6.98%
  5.75%
  -4.65%

  6.32%
  -0.89%
Asset Quality Ratios:
  
   
   
   
   

   
   
 Nonaccrual loans to loans (9)
 1.41%
  1.16%
  0.81%
  0.81%
  0.70%

  1.41%
  0.70%
 Nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing to total loans (9)
 1.75%
  1.58%
  1.63%
  1.64%
  1.96%

  1.75%
  1.96%
 Nonperforming assets, restructured loans and loans 90 days or more past due and still accruing to total assets (9)
 1.83%
  1.32%
  1.59%
  1.94%
  2.25%

  1.83%
  2.25%
 Allowance for loan losses to total loans
 1.72%
  1.83%
  1.78%
  1.75%
  1.81%

  1.72%
  1.81%
 Allowance for loan losses to nonaccrual loans, restructured loans and loans 90 days or more past due and still accruing (9)
 98.16%
  116.08%
  109.14%
  106.74%
  92.25%

  98.16%
  92.25%
 Net charge-offs (recoveries) annualized to average loans
 -0.74%
  -0.22%
  0.12%
  -0.10%
  0.03%

  -0.24%
  -0.11%
Capital Ratios:
  
   
   
   
   

   
   
 Total equity to total assets
 10.68%
  11.08%
  11.25%
  11.30%
  11.48%

  10.68%
  11.48%
 Total risk-based capital ratio
 15.55%
  15.66%
  15.60%
  15.19%
  15.45%

  15.55%
  15.45%
 Tier 1 risk-based capital ratio
 14.29%
  14.41%
  14.34%
  13.93%
  14.20%

  14.29%
  14.20%
 Leverage capital ratio
 11.18%
  11.20%
  11.69%
  11.72%
  12.27%

  11.18%
  12.27%
Other Data:
  
   
   
   
   

   
   
 Number of employees (full-time equivalent)
 171
  169
  167
  180
  173

  171
  173
 Number of banking facilities
 11
  11
  11
  11
  11

  11
  11
                      CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
 
 
  
  
  
  
 
December 31,
 September 30,
 June 30,
 March 31,
 December 31,
 
2016
 2016
 2016
 2016
 2015
 
(Dollars in thousands, except share data)
Assets
  
    
    
    
    
 Cash and due from banks
$10,291
  $11,427
  $9,808
  $9,136
  $9,170
 Reverse repurchase agreements
 24,275
   27,560
   20,313
   –
   –
 Securities available for sale
 112,072
   103,853
   103,542
   97,474
   94,702
 Loans held for sale
 11,469
   15,875
   11,602
   10,176
   12,275
  
  
    
    
    
    
 Loans
 484,255
   466,057
   461,859
   470,424
   445,050
 Allowance for loan losses
 (8,329
)  (8,549
)  (8,219
)  (8,235
)  (8,064
) Net loans
 475,926
   457,508
   453,640
   462,189
   436,986
  
  
    
    
    
    
 Federal Home Loan Bank Stock
 3,803
   3,803
   2,170
   2,170
   2,170
 Premises and equipment, net
 4,427
   4,256
   4,358
   4,716
   4,771
 Accrued interest receivable
 1,382
   1,289
   1,290
   1,468
   1,296
 Other real estate owned, net
 3,464
   982
   2,283
   3,859
   4,126
 Bank owned life insurance
 4,389
   4,363
   4,336
   4,310
   4,285
 Goodwill and other intangible assets
 221
   226
   232
   237
   243
 Other assets
 2,145
   1,486
   2,134
   1,354
   1,209
  Total Assets
$653,864
  $632,628
  $615,708
  $597,089
  $571,233
  
  
    
    
    
    
 Liabilities and Stockholders’ Equity
  
    
    
    
    
 Deposits:
  
    
    
    
    
  Noninterest-bearing demand
$77,154
  $87,216
  $82,460
  $74,564
  $77,580
  Interest-bearing demand
 33,832
   29,821
   31,508
   32,096
   33,192
  Savings
 176,435
   169,390
   175,955
   175,576
   162,663
  Time
 195,676
   190,001
   178,454
   185,098
   170,136
   Total deposits
 483,097
   476,428
   468,377
   467,334
   443,571
 Short-term borrowings
 96,944
   81,636
   72,833
   57,929
   58,883
 Accrued interest payable
 349
   319
   335
   339
   321
 Other liabilities
 3,646
   4,151
   4,897
   4,012
   2,872
   Total liabilities
 584,036
   562,534
   546,442
   529,614
   505,647
  
  
    
    
    
    
 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
 158,552
   158,510
   158,493
   158,493
   158,493
 Accumulated deficit
 (155,212
)  (156,579
)  (157,446
)  (158,636
)  (159,588
)Accumulated other comprehensive loss, net
 (2,329
)  (654
)  (598
)  (1,199
)  (2,136
)Treasury stock 218,499 shares at cost
 (529
)  (529
)  (529
)  (529
)  (529
)  Total stockholders’ equity
 69,828
   70,094
   69,266
   67,475
   65,586
   Total liabilities and stockholders’ equity
$653,864
  $632,628
  $615,708
  $597,089
  $571,233
                                          
At or for the
  
Quarters Ended

  Years Ended
  
December 31,
  September 30,
  June 30,
 March 31,
 December 31,

  December 31,
  December 31,
  
2016
  2016
  2016
 2016
 2015

  2016
  2015
  
(Dollars in thousands)
  
  
    
    
   
   

    
    
 Interest Income
  
    
    
   
   

    
    
 Loans
$4,493
  $4,540
  $4,635
 $4,572
 $4,248

  $18,240
  $15,972
 Loans held for sale
 141
   153
   95
  83
  77

   472
   341
 Securities
 563
   513
   478
  517
  546

   2,071
   2,206
 Other investments
 76
   80
   6
  4
  3

   166
   11
  Total interest income
 5,273
   5,286
   5,214
  5,176
  4,874

   20,949
   18,530
  
  
    
    
   
   

    
    
 Interest Expense
  
    
    
   
   

    
    
 Deposits
 697
   659
   692
  705
  640

   2,753
   2,327
 Short-term borrowings
 96
   81
   37
  30
  14

   244
   50
  Total interest expense
 793
   740
   729
  735
  654

   2,997
   2,377
  Net interest income
 4,480
   4,546
   4,485
  4,441
  4,220

   17,952
   16,153
 Provision for (reversal of) loan losses
 (1,101
)  69
   118
  61
  215

   (853
)  61
  Net interest income after provision for (reversal of) loan losses
 5,581
   4,477
   4,367
  4,380
  4,005

   18,805
   16,092
  
  
    
    
   
   

    
    
 Noninterest Income
  
    
    
   
   

    
    
 Deposit service charges
 121
   125
   121
  103
  113

   470
   450
 Other service fees
 45
   47
   52
  67
  60

   211
   236
 Mortgage Banking revenue, net
 1,414
   2,285
   2,102
  1,336
  545

   7,137
   3,724
 Other income
 136
   206
   96
  117
  104

   555
   444
 Net gains on sale of securities
 0
   0
   0
  0
  0

   0
   13
 Net gains (losses) on sale of assets and (writedowns)
 192
   (12
)  417
  430
  (230

)  1,027
   (441
) Total noninterest income
 1,908
   2,651
   2,788
  2,053
  592

   9,400
   4,426
  
  
    
    
   
   

    
    
 Noninterest Expense
  
    
    
   
   

    
    
 Compensation and employee benefits
 4,228
   4,426
   4,143
  3,624
  3,419

   16,421
   13,515
 Equipment
 305
   277
   293
  273
  277

   1,148
   1,068
 Occupancy and premises
 390
   377
   389
  435
  396

   1,591
   1,576
 Data Processing
 123
   185
   151
  154
  158

   613
   621
 Federal deposit insurance
 92
   105
   106
  106
  104

   409
   425
 Professional services
 156
   157
   213
  249
  228

   775
   942
 Telephone and data communication
 90
   92
   99
  109
  113

   390
   411
 Insurance
 60
   60
   56
  54
  53

   230
   221
 Other expense
 683
   541
   501
  477
  638

   2,202
   2,338
  Total noninterest expense
 6,127
   6,220
   5,951
  5,481
  5,386

   23,779
   21,117
 Income (loss) from operations before income taxes
 1,362
   908
   1,204
  952
  (789

)  4,426
   (599
)Income tax expense
 (5
)  40
   15
  0
  6

   50
   6
  Net income (loss)
 1,367
   868
   1,189
  952
  (795

)  4,376
   (605
)Preferred stock dividend
 0
   0
   0
  0
  0

   0
   0
   Net income (loss) allocated to common stockholders
$1,367
  $868
  $1,189
 $952
 $(795

) $4,376
  $(605
)                            

FOR INFORMATION CONTACT:
J. Brian Chaffin
President CEO
(217) 355-0900
brian.chaffin@cibmbank.com

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