CIB Marine Bancshares, Inc. Announces Second Quarter 2025 Results
BROOKFIELD, Wis, July 11, 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 six months ended June 30, 2025. During the quarter, net interest income and mortgage operations both improved operating results on a quarterly and year-to-date basis as further outlined below.
Net income for the quarter was $0.7 million, or $0.50 basic and $0.48 diluted earnings per share, compared to $0.5 million, or $0.34 basic and $0.25 diluted earnings per share, for the same period of 2024 excluding the effects of the sale-leaseback transaction gain on sale reported in the second quarter of 2024. Net income for the six months ended June 30, 2025, was $1.0 million, or $0.74 basic and $0.71 diluted earnings per share, compared to $0.6 million, or $0.80 basic and $0.35 diluted earnings per share, for the same period of 2024 also excluding the effects of the sale-leaseback transaction gain on sale.
Financial highlights for the quarter and six months ended June 30 include:
Net interest margin increased to 2.69% from 2.62% in the first quarter of 2025 and 2.38% in the second quarter of 2024. The cost of funds declined 51 basis points compared to the same quarterly period last year, due to the repricing of interest-bearing liabilities in a lower-cost interest rate environment, while yields on earning assets declined by 16 basis points. The net interest margin improved to 2.65% for the six months ended June 30, 2025, compared to 2.34% for the same period of 2024 as the cost of funds declined 45 basis points compared to a 10 basis point decline in yields on earning assets. Net interest income rose $0.3 million for the quarter compared to the same period of 2024, and $0.6 million for the six months ended June 30th compared to the same period of 2024.
Although quarter-end loan balances declined $19 million from March 31, 2025, and $32 million from December 31, 2024, the allowance for credit losses to loans rose from 1.26% at December 31, 2024, and 1.29% at March 31, 2025, to 1.32% at June 30, 2025, primarily due to continued deterioration in the Federal Reserve's economic forecasts used in the Company's credit loss analysis. Non-performing assets to total assets were 0.68% and non-accrual loans to loans were 0.85% on June 30, 2025, compared to 0.67% and 0.84% on March 31, 2025, and 0.68% and 0.81% on December 31, 2024, respectively. Business plans continue to include higher loan balances by year-end 2025, primarily driven by anticipated growth in the commercial segments. 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 to total assets increased to 1.85% at June 30, 2025, compared to 0.97% at March 31, 2025, and 0.98% at December 31, 2024. The increase was primarily due to two commercial loans—one in the transportation industry and the other in manufacturing—that were both 90 days or more past due but still accruing interest and in the collection process. Since June 30, 2025, one of the loans has been brought current and the adjusted ratio would be 1.43%.
The Banking Division reported net income of $1.6 million for the six months ended June 30, 2025, a $0.4 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. The Mortgage Division's $0.1 million net loss for the six months ended June 30, 2025, is an improvement of $0.1 million from the prior year. This modest progress reflects the decline 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 $0.5 million with roughly one-third of that amount attributed to subordinated debt interest expense. Although the parent company has a $2 million line of credit, no draws have been made on that potential funding source to date.
Mr. J. Brian Chaffin, CIB Marine's President and CEO, commented, "Net interest margins continue to improve as we actively manage our cost of funds in a lower rate environment compared to last year. This contributed to stronger operating results from our Banking Division. While loan balances declined again, our commercial group continues to build the loan pipeline, and we anticipate higher balances by year-end. The Mortgage Division showed modest improvement despite ongoing challenges in the residential mortgage market. Although mortgage production is expected to be lower than last year due to lender staff reductions, our current team is well-positioned to maintain consistent performance in a competitive market. Expense controls continue to support improved operating results."
He added, "In February, we launched our 2025 common stock repurchase program, authorizing up to $1 million in share buybacks. During the second quarter of 2025, we repurchased 8,083 shares through open market transactions for a total of $262,000, at an average price of $32.37 per share. Year to date, we have repurchased 15,512 shares for a total of $497,000, at an average price of $32.02 per share. Barring unforeseen factors, we intend to complete our 2025 common stock repurchase program during the second half of the year, using available resources including $0.7 million in cash on hand at the parent company, our $2 million line of credit, and other potential sources such as a possible capital distribution from CIBM Bank."
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 STATEMENTSCIB 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)
CIB MARINE BANCSHARES, INC.
Selected Unaudited Consolidated Financial Data
At or for the
Quarters Ended
6 Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
2025
2025
2024
2024
2024
2025
2024
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income
$
11,017
$
10,941
$
11,408
$
12,283
$
12,052
$
21,958
$
23,853
Interest expense
5,541
5,652
6,259
6,707
6,897
11,193
13,737
Net interest income
5,476
5,289
5,149
5,576
5,155
10,765
10,116
Provision for (reversal of) credit losses
9
42
(332
)
(113
)
10
51
(18
)
Net interest income after provision for
(reversal of) credit losses
5,467
5,247
5,481
5,689
5,145
10,714
10,134
Noninterest income (1)
1,765
1,552
1,724
2,897
6,904
3,317
8,531
Noninterest expense
6,311
6,373
6,678
7,163
6,904
12,684
13,325
Income before income taxes
921
426
527
1,423
5,145
1,347
5,340
Income tax expense
253
105
123
347
1,361
358
1,378
Net income (loss)
$
668
$
321
$
404
$
1,076
$
3,784
$
989
$
3,962
Common Share Data:
Basic net income (loss) per share (2)
$
0.50
$
0.24
$
0.60
$
0.79
$
2.79
$
0.74
$
2.94
Diluted net income (loss) per share (2)
0.48
0.23
0.54
0.59
2.06
0.71
2.17
Dividend
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tangible book value per share (3)
59.55
58.46
57.37
57.80
55.36
59.55
55.36
Book value per share (3)
59.59
58.51
57.42
56.06
53.61
59.59
53.61
Weighted average shares outstanding - basic
1,349,613
1,348,995
1,357,737
1,357,259
1,356,255
1,344,573
1,348,440
Weighted average shares outstanding - diluted
1,397,365
1,396,274
1,507,344
1,833,586
1,833,881
1,392,090
1,826,911
Financial Condition Data:
Total assets
$
838,441
$
852,018
$
866,474
$
888,283
$
901,634
$
838,441
$
901,634
Loans
665,393
684,787
697,093
707,310
719,129
665,393
719,129
Allowance for credit losses on loans
(8,793
)
(8,818
)
(8,790
)
(8,973
)
(9,083
)
(8,793
)
(9,083
)
Investment securities
126,795
124,109
120,339
120,349
123,814
126,795
123,814
Deposits
684,480
692,028
692,378
747,168
768,984
684,480
768,984
Borrowings
59,292
67,214
81,735
33,583
28,222
59,292
28,222
Stockholders' equity
80,492
79,309
77,961
92,358
89,008
80,492
89,008
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (4)
2.69
%
2.62
%
2.44
%
2.55
%
2.38
%
2.65
%
2.34
%
Net interest spread (5)
2.06
%
1.99
%
1.74
%
1.80
%
1.71
%
2.03
%
1.67
%
Noninterest income to average assets (6)
0.83
%
0.73
%
0.82
%
1.25
%
3.09
%
0.78
%
1.91
%
Noninterest expense to average assets
3.00
%
3.05
%
3.06
%
3.17
%
3.09
%
3.02
%
2.98
%
Efficiency ratio (7)
87.24
%
93.65
%
96.17
%
85.32
%
57.19
%
90.35
%
71.34
%
Earnings (loss) on average assets (8)
0.32
%
0.15
%
0.19
%
0.48
%
1.69
%
0.24
%
