CIB Marine Bancshares, Inc. Announces 2016 Second Quarter Results
/EINPresswire.com/ -- WAUKESHA, WI --(Marketwired - July 14, 2016) - CIB Marine Bancshares, Inc. (the "Company" or "CIBM") (OTCQB: CIBH), the holding company of CIBM Bank, announced its results of operations and financial condition for the second quarter of 2016. Net income for the quarter was $1.2 million or $0.07 basic earnings per share, and for the six months ending June 30, 2016, $2.1 million or $0.12 per share. Earnings per share on a diluted basis for the same quarter and six month period were $0.03 and $0.06, respectively. This reflects a substantial increase over the prior year's results for the same periods.
Select highlights for the quarter include:
- Return on average assets was 0.80% for the second quarter of 2016 and 0.73% for the six months ending June 30, 2016, compared to -0.11% and -0.05% for the same periods in 2015.
- Net income for subsidiary CIBM Bank was $1.4 million for the second quarter and $2.1 million for the six months ending June 30, 2016; compared to $0.1 million and $0.3 million for the same periods of 2015, respectively.
- Due primarily to an increase in average loan balances, net interest income increased $0.5 million for the second quarter and $1.1 million for the six months ending June 30, 2016, relative to the same periods of 2015.
- Non-interest income increased $1.4 million for the second quarter and $2.0 million for the six months ending June 30, 2016, relative to the same periods of 2015. Year-to-date results compared to the same period of 2015 reflect a $1.1 million improvement in net mortgage banking revenues and $1.0 million in net gains/(losses) on sale of assets and write-downs, comprised primarily of gains on sale of other real estate owned.
- Non-performing assets to total assets continued its decline to 1.59%, compared to 2.25% from year-end 2015 and 2.83% from the same quarter-end of 2015.
- By the end of the second quarter of 2016, our actions for expense reductions announced in February 2016 were substantially complete. The second half of 2016 will more directly reflect the full amount of the $1.1 million per annum expense reductions.
"CIB Marine is reporting an even stronger second quarter than the first with substantial revenue improvements and relatively limited increases in expenses. Results reflect continued improvement in the critical areas we identified in our strategic goals," said Mr. J. Brian Chaffin, President and Chief Executive Officer of CIB Marine Bancshares, Inc. "Whereas the first quarter was dominated by stronger loan growth, the second quarter has started to reflect improved results from our mortgage banking division and our initiative to originate and sell the government guaranteed portion of SBA loans. In addition, CIB Marine began funding a SBA asset financing facility and increased its investment security holdings."
The Company also announced that it recently agreed to settle claims related to asset purchase transactions in 2006 and 2007. CIB Marine will receive approximately $1.3 million net of costs in a structured settlement, the majority of which is expected to be received in the second half of 2016. To date, none of the structured settlement has been received or recorded. As the payments are received, CIB Marine will record them as a loan loss recovery, which may result in a credit provision (i.e., a reversal of loan losses) in those future reporting periods thereby potentially increasing CIB Marine's net income by an amount up to the recovery.
Mr. Chaffin added, "As we look forward, we are focused on fulfilling our mission and growing our client relationship-based banking businesses along our corporate, mortgage and retail lines; at the same time further developing our SBA lending business and other related complementary banking and trust services as we leverage our geographic footprint and operations."
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
------------------------------------------------------------
December September
June 30, March 31, 31, 30, June 30,
2016 2016 2015 2015 2015
------------------------------------------------------------
(Dollars in thousands, except share and per share data)
Selected
Statement of
Operations
Data
Interest and
dividend
income $ 5,214 $ 5,176 $ 4,874 $ 4,657 $ 4,539
Interest
expense 729 735 654 595 557
------------------------------------------------------------
Net interest
income 4,485 4,441 4,220 4,062 3,982
Provision for
(reversal of)
loan losses 118 61 215 (337) 97
-------------------------------------------------------------
Net interest
income after
provision
for
(reversal
of) loan
losses 4,367 4,380 4,005 4,399 3,885
Noninterest
income (1) 2,788 2,053 592 1,022 1,436
Noninterest
expense 5,951 5,481 5,386 5,114 5,464
------------------------------------------------------------
Income (loss)
before
income taxes 1,204 952 (789) 307 (143)
Income tax
expense 15 0 6 0 0
-------------------------------------------------------------
Net income
(loss) $ 1,189 $ 952 $ (795) $ 307 $ (143)
=============================================================
Common Share
Data
Basic net
income
(loss) per
share $ 0.07 $ 0.05 $ (0.04) $ 0.02 $ (0.01)
Diluted net
income
(loss) per
share 0.03 0.03 (0.04) 0.01 (0.01)
Dividend 0 0 0 0 0
Tangible book
value per
share (2) 0.99 0.90 0.79 0.90 0.89
Book value
per share
(2) 0.51 0.41 0.31 0.42 0.41
Weighted
average
shares
outstanding
- basic 18,127,892 18,127,892 18,127,892 18,127,892 18,127,892
Weighted
average
shares
outstanding
- diluted 35,631,892 35,631,892 18,127,892 35,631,892 18,127,892
Financial
Condition Data
Total assets $ 615,708 $ 597,089 $ 571,233 $ 531,744 $ 525,513
Loans 461,859 470,424 445,050 414,643 394,319
Allowance for
loan losses (8,219) (8,235) (8,064) (7,883) (7,670)
Investment
securities 103,542 97,474 94,702 92,674 90,912
Deposits 468,377 467,334 443,571 415,185 402,858
Borrowings 72,833 57,929 58,883 45,396 52,288
Stockholders'
equity 69,266 67,475 65,586 67,616 67,466
Financial
Ratios and
Other Data
Performance
Ratios:
Net
interest
margin (3) 3.11% 3.15% 3.14% 3.18% 3.18%
Net
interest
spread (4) 2.96% 3.00% 2.98% 3.03% 3.03%
Noninterest
income to
average
assets (5) 1.88% 1.42% 0.43% 0.77% 1.11%
Noninterest
expense to
average
assets 4.02% 3.78% 3.89% 3.87% 4.22%
Efficiency
ratio (6) 81.82% 84.40% 111.93% 100.59% 100.85%
Earnings
(loss) on
average
assets (7) 0.80% 0.66% -0.57% 0.23% -0.11%
Earnings
(loss) on
average
equity (8) 6.98% 5.75% -4.65% 1.79% -0.84%
Asset Quality
Ratios:
Nonaccrual
loans to
loans (9) 0.81% 0.81% 0.70% 0.75% 1.39%
Nonaccrual
loans,
restructured
loans and
loans 90
days or more
past due and
still
accruing to
total loans
(9) 1.63% 1.64% 1.96% 1.68% 2.44%
Nonperforming
assets,
restructured
loans and
loans 90
days or more
past due and
still
accruing to
total assets
(9) 1.59% 1.94% 2.25% 2.20% 2.83%
Allowance for
loan losses
to total
loans 1.78% 1.75% 1.81% 1.90% 1.95%
Allowance for
loan losses
to
nonaccrual
loans,
restructured
loans and
loans 90
days or more
past due and
still
accruing (9) 109.14% 106.74% 92.25% 113.03% 79.70%
Net charge-
offs
(recoveries)
annualized
to average
loans 0.12% -0.10% 0.03% -0.54% 0.01%
Capital Ratios:
Total equity
to total
assets 11.25% 11.30% 11.48% 12.72% 12.84%
Total risk-
based
capital
ratio 15.59% 15.19% 15.45% 16.57% 16.86%
Tier 1 risk-
based
capital
ratio 14.34% 13.93% 14.20% 15.31% 15.60%
Leverage
capital
ratio 11.69% 11.72% 12.27% 13.01% 13.09%
Other Data:
Number of
employees
(full-time
equivalent) 167 180 173 159 158
Number of
banking
facilities 11 11 11 11 11
At or for the
---------------------------
Six Months Ended
---------------------------
June 30, June 30,
2016 2015
---------------------------
(Dollars in thousands,
except share and per share
data)
Selected
Statement of
Operations
Data
Interest and
dividend
income $ 10,390 $ 8,999
Interest
expense 1,464 1,128
---------------------------
Net interest
income 8,926 7,871
Provision for
(reversal of)
loan losses 179 183
---------------------------
Net interest
income after
provision
for
(reversal
of) loan
losses 8,747 7,688
Noninterest
income (1) 4,841 2,812
Noninterest
expense 11,432 10,617
---------------------------
Income (loss)
before
income taxes 2,156 (117)
Income tax
expense 15 0
---------------------------
Net income
(loss) $ 2,141 $ (117)
===========================
Common Share
Data
Basic net
income
(loss) per
share $ 0.12 $ (0.01)
Diluted net
income
(loss) per
share 0.06 (0.01)
Dividend 0 0
Tangible book
value per
share (2) 0.99 0.89
Book value
per share
(2) 0.51 0.41
Weighted
average
shares
outstanding
- basic 18,127,892 18,127,892
Weighted
average
shares
outstanding
- diluted 35,631,892 18,127,892
Financial
Condition Data
Total assets $ 615,708 $ 525,513
Loans 461,859 394,319
Allowance for
loan losses (8,219) (7,670)
Investment
securities 103,542 90,912
Deposits 468,377 402,858
Borrowings 72,833 52,288
Stockholders'
equity 69,266 67,466
Financial
Ratios and
Other Data
Performance
Ratios:
Net
interest
margin (3) 3.13% 3.20%
Net
interest
spread (4) 2.98% 3.05%
Noninterest
income to
average
assets (5) 1.65% 1.10%
Noninterest
expense to
average
assets 3.90% 4.17%
Efficiency
ratio (6) 83.04% 99.50%
Earnings
(loss) on
average
assets (7) 0.73% -0.05%
Earnings
(loss) on
average
equity (8) 6.37% -0.34%
Asset Quality
Ratios:
Nonaccrual
loans to
loans (9) 0.81% 1.39%
Nonaccrual
loans,
restructured
loans and
loans 90
days or more
past due and
still
accruing to
total loans
(9) 1.63% 2.44%
Nonperforming
assets,
restructured
loans and
loans 90
days or more
past due and
still
accruing to
total assets
(9) 1.59% 2.83%
Allowance for
loan losses
to total
loans 1.78% 1.95%
Allowance for
loan losses
to
nonaccrual
loans,
restructured
loans and
loans 90
days or more
past due and
still
accruing (9) 109.14% 79.70%
Net charge-
offs
(recoveries)
annualized
to average
loans 0.01% 0.04%
Capital Ratios:
Total equity
to total
assets 11.25% 12.84%
Total risk-
based
capital
ratio 15.59% 16.86%
Tier 1 risk-
based
capital
ratio 14.34% 15.60%
Leverage
capital
ratio 11.69% 13.09%
Other Data:
Number of
employees
(full-time
equivalent) 167 158
Number of
banking
facilities 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.
Consolidated Balance Sheets (unaudited)
December September
June 30, March 31, 31, 30, June 30,
2016 2016 2015 2015 2015
-------------------------------------------------------
(Dollars in thousands, except share data)
Assets
Cash and due from
banks $ 9,808 $ 9,136 $ 9,170 $ 8,037 $ 9,407
Reverse repurchase
agreements $ 20,313 $ - $ - $ - $ -
Securities available
for sale 103,542 97,474 94,702 92,674 90,912
Loans held for sale 11,602 10,176 12,275 5,157 18,440
Loans 461,859 470,424 445,050 414,643 394,319
Allowance for loan
losses (8,219) (8,235) (8,064) (7,883) (7,670)
-------------------------------------------------------
Net loans 453,640 462,189 436,986 406,760 386,649
Federal Home Loan
Bank Stock 2,170 2,170 2,170 2,170 2,170
Premises and
equipment, net 4,358 4,716 4,771 4,830 4,826
Accrued interest
receivable 1,290 1,468 1,296 1,471 1,245
Other real estate
owned, net 2,283 3,859 4,126 4,698 5,229
Bank owned life
insurance 4,336 4,310 4,285 4,259 4,234
Goodwill and other
intangible assets 232 237 243 248 254
Other assets 2,134 1,354 1,209 1,440 2,147
-------------------------------------------------------
Total Assets $ 615,708 $ 597,089 $ 571,233 $ 531,744 $ 525,513
=======================================================
Liabilities and
Stockholders'
Equity
Deposits:
Noninterest-
bearing demand $ 82,460 $ 74,564 $ 77,580 $ 70,644 $ 74,514
Interest-bearing
demand 31,508 32,096 33,192 30,320 29,909
Savings 175,955 175,576 162,663 153,134 155,364
Time 178,454 185,098 170,136 161,087 143,071
-------------------------------------------------------
Total deposits 468,377 467,334 443,571 415,185 402,858
Short-term
borrowings 72,833 57,929 58,883 45,396 52,288
Accrued interest
payable 335 339 321 305 272
Other liabilities 4,897 4,012 2,872 3,242 2,629
-------------------------------------------------------
Total
liabilities 546,442 529,614 505,647 464,128 458,047
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 (157,446) (158,636) (159,588) (158,793) (159,100)
Accumulated other
comprehensive loss,
net (598) (1,199) (2,136) (901) (744)
Treasury stock
218,499 shares at
cost (529) (529) (529) (529) (529)
Total
stockholders'
equity 69,266 67,475 65,586 67,616 67,466
Total
liabilities and
stockholders'
equity $ 615,708 $ 597,089 $ 571,233 $ 531,744 $ 525,513
CIB MARINE BANCSHARES, INC.
Consolidated Statements of Operations (Unaudited)
At or for the
-----------------------------------------------------------
Quarters Ended
----------------------------------------------------------
September
June 30, March 31, December 31, 30, June 30,
2016 2016 2015 2015 2015
----------------------------------------------------------
(Dollars in thousands)
Interest Income
Loans $ 4,635 $ 4,572 $ 4,248 $ 4,044 $ 3,850
Loans held for
sale 95 83 77 58 134
Securities 478 517 546 553 552
Other investments 6 4 3 2 3
-----------------------------------------------------------
Total interest
income 5,214 5,176 4,874 4,657 4,539
Interest Expense
Deposits 692 705 640 583 542
Short-term
borrowings 37 30 14 12 15
-----------------------------------------------------------
Total interest
expense 729 735 654 595 557
-----------------------------------------------------------
Net interest
income 4,485 4,441 4,220 4,062 3,982
Provision for
(reversal of)
loan losses 118 61 215 (337) 97
----------------------------------------------------------
Net interest
income after
provision for
(reversal of)
loan losses
for (reversal
of) loan
losses 4,367 4,380 4,005 4,399 3,885
Noninterest
Income
Deposit service
charges 121 103 113 119 110
Other service
fees 52 67 60 73 54
Mortgage Banking
revenue, net 2,102 1,336 545 805 1,253
Other income 96 117 104 102 50
Net gains on sale
of securities 0 0 0 0 0
Net gains
(losses) on sale
of assets and
(writedowns) 417 430 (230) (77) (31)
-----------------------------------------------------------
Total
noninterest
income 2,788 2,053 592 1,022 1,436
Noninterest
Expense
Compensation and
employee
benefits 4,143 3,624 3,419 3,195 3,443
Equipment 293 273 277 262 261
Occupancy and
premises 389 435 396 404 376
Data Processing 151 154 158 173 144
Federal deposit
insurance 106 106 104 110 106
Professional
services 213 249 228 277 284
Telephone and
data
communication 99 109 113 86 103
Insurance 56 54 53 55 56
Other expense 501 477 638 552 691
-----------------------------------------------------------
Total
noninterest
expense 5,951 5,481 5,386 5,114 5,464
-----------------------------------------------------------
Income (loss)
from operations
before income
taxes 1,204 952 (789) 307 (143)
Income tax
expense 15 0 6 0 0
-----------------------------------------------------------
Net income
(loss) 1,189 952 (795) 307 (143)
Preferred stock
dividend 0 0 0 0 0
-----------------------------------------------------------
Net income
(loss)
allocated to
common
stockholders $ 1,189 $ 952 $ (795) $ 307 $ (143)
===========================================================
At or for the
---------------------
Six Months Ended
---------------------
June 30, June 30,
2016 2015
---------------------
(Dollars in
thousands)
Interest Income
Loans $ 9,207 $ 7,680
Loans held for
sale 178 206
Securities 995 1,107
Other investments 10 6
---------------------
Total interest
income 10,390 8,999
Interest Expense
Deposits 1,397 1,104
Short-term
borrowings 67 24
---------------------
Total interest
expense 1,464 1,128
---------------------
Net interest
income 8,926 7,871
Provision for
(reversal of)
loan losses 179 183
---------------------
Net interest
income after
provision for
(reversal of)
loan losses
for (reversal
of) loan
losses 8,747 7,688
Noninterest
Income
Deposit service
charges 224 218
Other service
fees 119 103
Mortgage Banking
revenue, net 3,438 2,374
Other income 213 238
Net gains on sale
of securities 0 13
Net gains
(losses) on sale
of assets and
(writedowns) 847 (134)
---------------------
Total
noninterest
income 4,841 2,812
Noninterest
Expense
Compensation and
employee
benefits 7,767 6,901
Equipment 566 529
Occupancy and
premises 824 776
Data Processing 305 290
Federal deposit
insurance 212 211
Professional
services 462 437
Telephone and
data
communication 208 212
Insurance 110 113
Other expense 978 1,148
---------------------
Total
noninterest
expense 11,432 10,617
---------------------
Income (loss)
from operations
before income
taxes 2,156 (117)
Income tax
expense 15 0
---------------------
Net income
(loss) 2,141 (117)
Preferred stock
dividend 0 0
---------------------
Net income
(loss)
allocated to
common
stockholders$ 2,141 $ (117)
=====================
FOR INFORMATION CONTACT:
J. Brian Chaffin
President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com
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