CIB Marine Bancshares, Inc. Announces 2016 First Quarter Results
/EINPresswire.com/ -- 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
--------------------------------------
March 31, December 31, September
2016 2015 30, 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
Interest expense 735 654 595
--------------------------------------
Net interest income 4,441 4,220 4,062
Provision for (reversal
of) loan losses 61 215 (337)
--------------------------------------
Net interest income
after provision for
(reversal of) loan
losses 4,380 4,005 4,399
Noninterest income (1) 2,053 592 1,022
Noninterest expense 5,481 5,386 5,114
--------------------------------------
Income (loss) before
income taxes 952 (789) 307
Income tax expense 0 6 0
--------------------------------------
Net income (loss) $ 952 $ (795)$ 307
======================================
Common Share Data
Basic net income (loss)
per share $ 0.05 $ (0.04)$ 0.02
Diluted net income
(loss) per share 0.03 (0.04) 0.01
Dividend 0 0 0
Tangible book value per
share (2) 0.90 0.79 0.90
Book value per share (2) 0.41 0.31 0.42
Weighted average shares
outstanding - basic 18,127,892 18,127,892 18,127,892
Weighted average shares
outstanding - diluted 35,631,892 18,127,892 35,631,892
Financial Condition Data
Total assets $ 597,089 $ 571,233 $ 531,744
Loans 470,424 445,050 414,643
Allowance for loan
losses (8,235) (8,064) (7,883)
Investment securities 9 9 9
7 4 2
, , ,
4 7 6
7 0 7
4 2 4
Deposits 4 4 4
6 4 1
7 3 5
, , ,
3 5 1
3 7 8
4 1 5
Borrowings 57,929 58,883 45,396
Stockholders' equity 67,475 65,586 67,616
Financial Ratios and Other
Data
Performance Ratios:
Net interest margin
(3) 3.15% 3.14% 3.18%
Net interest spread
(4) 3.00% 2.98% 3.03%
Noninterest income to
average assets (5) 1.42% 0.43% 0.77%
Noninterest expense to
average assets 3.78% 3.89% 3.87%
Efficiency ratio (6) 84.40% 111.93% 100.59%
Earnings (loss) on
average assets (7) 0.66% -0.57% 0.23%
Earnings (loss) on
average equity (8) 5.75% -4.65% 1.79%
Asset Quality Ratios:
Nonaccrual loans to
loans (9) 0.81% 0.70% 0.75%
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%
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%
Allowance for loan
losses to total loans 1.75% 1.81% 1.90%
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%
Net charge-offs
(recoveries) annualized
to average loans
-0.10% 0.03% -0.54%
Capital Ratios:
Total equity to total
assets 11.30% 11.48% 12.72%
Total risk-based capital
ratio 15.18% 15.45% 16.57%
Tier 1 risk-based
capital ratio 13.92% 14.20% 15.31%
Leverage capital ratio 11.72% 12.27% 13.01%
Other Data:
Number of employees
(full-time equivalent) 180 173 159
Number of banking
facilities 11 11 11
--------------------------
(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.
Selected Unaudited Consolidated Financial Data
At or for the
------------------------------------------------
Quarters Ended Three Months Ended
-------------------------------------------------
June 30, March 31, March 31, March 31,
2015 2015 2016 2015
------------------------ ------------------------
(Dollars in thousands, except share and per
share data)
Selected Statement of
Operations Data
Interest and dividend
income $ 4,539 $ 4,460 $ 5,176 $ 4,460
Interest expense 557 571 735 571
------------------------ ------------------------
Net interest income 3,982 3,889 4,441 3,889
Provision for (reversal
of) loan losses 97 86 61 86
------------------------ ------------------------
Net interest income
after provision for
(reversal of) loan
losses 3,885 3,803 4,380 3,803
Noninterest income (1) 1,436 1,376 2,053 1,376
Noninterest expense 5,464 5,153 5,481 5,153
------------------------ ------------------------
Income (loss) before
income taxes (143) 26 952 26
Income tax expense 0 0 0 0
------------------------ ------------------------
Net income (loss) $ (143)$ 26 $ 952 $ 26
======================== ========================
Common Share Data
Basic net income (loss)
per share $ (0.01)$ 0.00 $ 0.05 $ 0.00
Diluted net income
(loss) per share (0.01) 0.00 0.03 0.00
Dividend 0 0 0 0
Tangible book value per
share (2) 0.89 0.93 0.90 0.93
Book value per share (2) 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
Weighted average shares
outstanding - diluted 18,127,892 35,631,892 35,631,892 35,631,892
Financial Condition Data
Total assets $ 525,513 $ 522,346 $ 597,089 $ 522,346
Loans 394,319 386,588 470,424 386,588
Allowance for loan
losses (7,670) (7,586) (8,235) (7,586)
Investment securities 9 9 9 9
0 6 7 6
, , , ,
9 6 4 6
1 9 7 9
2 6 4 6
Deposits 4 4 4 4
0 0 6 0
2 7 7 7
, , , ,
8 2 3 2
5 4 3 4
8 7 4 7
Borrowings 52,288 43,753 57,929 43,753
Stockholders' equity 67,466 68,068 67,475 68,068
Financial Ratios and Other
Data
Performance Ratios:
Net interest margin
(3) 3.18% 3.22% 3.15% 3.22%
Net interest spread
(4) 3.03% 3.05% 3.00% 3.05%
Noninterest income to
average assets (5) 1.11% 1.09% 1.42% 1.09%
Noninterest expense to
average assets 4.22% 4.13% 3.78% 4.13%
Efficiency ratio (6) 100.85% 98.12% 84.40% 98.12%
Earnings (loss) on
average assets (7) -0.11% 0.02% 0.66% 0.02%
Earnings (loss) on
average equity (8) -0.84% 0.15% 5.75% 0.15%
Asset Quality Ratios:
Nonaccrual loans to
loans (9) 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) 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) 2.83% 2.95% 1.96% 2.95%
Allowance for loan
losses to total loans 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) 79.70% 74.66% 105.00% 74.66%
Net charge-offs
(recoveries) annualized
to average loans
0.01% 0.06% -0.10% 0.06%
Capital Ratios:
Total equity to total
assets 12.84% 13.03% 11.30% 13.03%
Total risk-based capital
ratio 16.86% 16.94% 15.18% 16.94%
Tier 1 risk-based
capital ratio 15.60% 15.68% 13.92% 15.68%
Leverage capital ratio 13.09% 13.45% 11.72% 13.45%
Other Data:
Number of employees
(full-time equivalent) 158 153 180 153
Number of banking
facilities 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, December September June 30, March 31,
2016 31, 2015 30, 2015 2015 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
------------------------------------------------------
March 31, December September June 30, March 31,
2016 31, 2015 30, 2015 2015 2015
------------------------------------------------------
(Dollars in thousands)
Interest Income
Loans $ 4,572 $ 4,248 $ 4,044 $ 3,850 $ 3,830
Loans held for sale 83 77 58 134 72
Securities 517 546 553 552 555
Other investments 4 3 2 3 3
------------------------------------------------------
Total interest
income 5,176 4,874 4,657 4,539 4,460
Interest Expense
Deposits 705 640 583 542 562
Short-term
borrowings 30 14 12 15 9
------------------------------------------------------
Total interest
expense 735 654 595 557 571
------------------------------------------------------
Net interest
income 4,441 4,220 4,062 3,982 3,889
Provision for
(reversal of) loan
losses 61 215 (337) 97 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
Noninterest Income
Deposit service
charges 103 113 119 110 108
Other service fees 67 60 73 54 49
Mortgage Banking
revenue, net 1,336 545 805 1,253 1,121
Other income 117 104 102 50 188
Net gains on sale of
securities 0 0 0 0 13
Net gains (losses)
on sale of assets
and (writedowns) 430 (230) (77) (31) (103)
------------------------------------------------------
Total noninterest
income 2,053 592 1,022 1,436 1,376
Noninterest Expense
Compensation and
employee benefits 3,624 3,419 3,195 3,443 3,458
Equipment 273 277 262 261 268
Occupancy and
premises 435 396 404 376 400
Data Processing 154 158 173 144 146
Federal deposit
insurance 106 104 110 106 105
Professional
services 249 228 277 284 153
Telephone and data
communication 109 113 86 103 109
Insurance 54 53 55 56 57
Other expense 477 638 552 691 457
------------------------------------------------------
Total noninterest
expense 5,481 5,386 5,114 5,464 5,153
------------------------------------------------------
Income (loss) from
operations before
income taxes 952 (789) 307 (143) 26
------------------------------------------------------
Income tax expense 0 6 0 0 0
------------------------------------------------------
Net income (loss) 952 (795) 307 (143) 26
Preferred stock
dividend 0 0 0 0 0
------------------------------------------------------
Net income
(loss)
allocated to
common
stockholders $ 952 $ (795) $ 307 $ (143) $ 26
======================================================
At or for the
----------------------
Three Months Ended
----------------------
March 31, March 31,
2016 2015
----------------------
(Dollars in
thousands)
Interest Income
Loans $ 4,572 $ 3,830
Loans held for sale 83 72
Securities 517 555
Other investments 4 3
----------------------
Total interest
income 5,176 4,460
Interest Expense
Deposits 705 562
Short-term
borrowings 30 9
----------------------
Total interest
expense 735 571
----------------------
Net interest
income 4,441 3,889
Provision for
(reversal of) loan
losses 61 86
----------------------
Net interest
income after
provision for
(reversal of)
loan losses for
(reversal of)
loan losses 4,380 3,803
Noninterest Income
Deposit service
charges 103 108
Other service fees 67 49
Mortgage Banking
revenue, net 1,336 1,121
Other income 117 188
Net gains on sale of
securities 0 13
Net gains (losses)
on sale of assets
and (writedowns) 430 (103)
----------------------
Total noninterest
income 2,053 1,376
Noninterest Expense
Compensation and
employee benefits 3,624 3,458
Equipment 273 268
Occupancy and
premises 435 400
Data Processing 154 146
Federal deposit
insurance 106 105
Professional
services 249 153
Telephone and data
communication 109 109
Insurance 54 57
Other expense 477 457
----------------------
Total noninterest
expense 5,481 5,153
----------------------
Income (loss) from
operations before
income taxes 952 26
----------------------
Income tax expense 0 0
----------------------
Net income (loss) 952 26
Preferred stock
dividend 0 0
----------------------
Net income
(loss)
allocated to
common
stockholders $ 952 $ 26
======================
FOR INFORMATION CONTACT:
J. Brian Chaffin
President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com
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