CIB Marine Bancshares, Inc. Announces Second Quarter 2025 Results

GlobeNewswire | CIB Marine Bancshares, Inc.
Today at 9:45am UTC

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 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.

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

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% 0.88%
Earnings (loss) on average equity (9) 3.36% 1.65% 1.94% 4.71% 17.92%  2.52% 9.38%
Asset Quality Ratios:        
Nonaccrual loans to loans (10) 0.85% 0.84% 0.81% 0.44% 0.47%  0.85% 0.47%
Nonperformance assets to total assets (11) 0.68% 0.67% 0.68% 0.38% 0.41%  0.68% 0.41%
Nonaccrual loans, modified loans to borrowers experiencing        
financial difficulty, loans 90 days or more past due and still        
accruing to total loans (12) 2.33% 1.21% 1.19% 1.62% 1.38%  2.33% 1.38%
Nonaccrual loans, OREO, modified loans to borrowers        
experiencing financial difficulty, loans 90 days or more past        
due and still accruing to total assets (12) 1.85% 0.97% 0.98% 1.32% 1.14%  1.85% 1.14%
Allowance for credit losses on loans to total loans (10) 1.32% 1.29% 1.26% 1.27% 1.26%  1.32% 1.26%
Allowance for credit losses on loans to nonaccrual loans,        
modified loans to borrowers experiencing financial difficulty loans        
and loans 90 days or more past due and still accruing (10) 56.76% 106.25% 105.95% 82.53% 91.24%  56.76% 91.24%
Net charge-offs (recoveries) annualized        
to average loans (10) -0.02% -0.01% -0.01% -0.01% 0.03%  -0.01% 0.03%
Capital Ratios:        
Total equity to total assets 9.60% 9.31% 9.00% 10.40% 9.87%  9.60% 9.87%
Total risk-based capital ratio 13.55% 13.34% 13.02% 14.54% 13.90%  13.55% 13.90%
Tier 1 risk-based capital ratio 10.82% 10.62% 10.33% 11.89% 11.27%  10.82% 11.27%
Leverage capital ratio 8.54% 8.40% 8.14% 9.30% 8.93%  8.54% 8.93%
Other Data:        
Number of employees (full-time equivalent) 144  152  165  170  172   144  172 
Number of banking facilities 9  9  9  9  9   9  9 
         
(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 of $0.4 million for the quarter ended December 31, 2024.
(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. Book value measures are reported inclusive of the net deferred tax assets. As presented here, shares of common outstanding excludes unvested restricted stock awards.
(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.
(11) Nonperforming assets includes nonaccrual loans and securities and other real estate owned.
(12) A large loan 90 days or more past due and still accruing was brought current after June 30, 2025. The adjusted ratio to total loans would be 1.80% and to total assets 1.43%.



CIB MARINE BANCSHARES, INC. 
Consolidated Balance Sheets (unaudited) 
       
 June 30,March 31,December 31,September 30,June 30, 
  2025  2025  2024  2024  2024  
 (Dollars in Thousands, Except Shares) 
Assets      
Cash and due from banks$10,363 $7,717 $6,748 $13,814 $10,690  
Reverse repurchase agreements -  -  -  -  -  
Securities available for sale 124,618  121,939  118,206  118,145  121,687  
Equity securities at fair value 2,177  2,170  2,133  2,204  2,127  
Loans held for sale 7,733  7,685  13,291  19,472  17,897  
       
Loans 665,393  684,787  697,093  707,310  719,129  
Allowance for credit losses on loans (8,793) (8,818) (8,790) (8,973) (9,083) 
Net loans 656,600  675,969  688,303  698,337  710,046  
       
Federal Home Loan Bank Stock 3,401  2,607  2,607  2,238  2,238  
Premises and equipment, net 1,660  1,486  1,570  1,526  1,569  
Accrued interest receivable 2,733  2,680  2,651  2,926  3,230  
Deferred tax assets, net 12,160  12,529  12,955  12,796  14,840  
Other real estate owned, net -  -  200  211  283  
Bank owned life insurance 6,536  6,486  6,437  6,388  6,340  
Goodwill and other intangible assets 64  64  64  64  64  
Other assets 10,396  10,686  11,309  10,162  10,623  
Total assets$838,441 $852,018 $866,474 $888,283 $901,634  
       
Liabilities and Stockholders' Equity       
Deposits:      
Noninterest-bearing demand$87,479 $98,403 $86,886 $95,471 $95,457  
Interest-bearing demand 74,921  77,620  84,833  90,095  86,728  
Savings 226,663  232,046  224,960  234,969  244,595  
Time 295,417  283,959  295,699  326,633  342,204  
Total deposits 684,480  692,028  692,378  747,168  768,984  
Short-term borrowings 49,514  57,444  71,973  23,829  18,477  
Long-term borrowings 9,778  9,770  9,762  9,754  9,745  
Accrued interest payable 1,656  1,614  1,911  2,101  2,145  
Other liabilities 12,521  11,853  12,489  13,073  13,275  
Total liabilities 757,949  772,709  788,513  795,925  812,626  
       
Stockholders' Equity       
Preferred stock, $1 par value; 5,000,000 authorized shares at periods prior to December 31, 2024; 7% fixed rate noncumulative perpetual issued; 14,633 shares of series A and 1,610 shares of series B; convertible; $16.2 million aggregate liquidation preference -  -  -  13,806  13,806  
Common stock, $1 par value; 75,000,000 authorized shares; 1,385,842 and 1,372,642 issued shares; 1,351,397 and 1,358,473 outstanding shares at June 30, 2025 and December 31, 2024, respectively (1) 1,386  1,383  1,372  1,372  1,372  
Capital surplus 181,908  181,801  181,708  181,603  181,486  
Accumulated deficit (98,498) (99,167) (99,487) (100,297) (101,373) 
Accumulated other comprehensive income (loss), net (3,273) (3,939) (5,098) (3,592) (5,749) 
Treasury stock, 35,167 shares on June 30, 2025 and 14,791 shares December 31, 2024 (2) (1,031) (769) (534) (534) (534) 
Total stockholders' equity 80,492  79,309  77,961  92,358  89,008  
Total liabilities and stockholders' equity$838,441 $852,018 $866,474 $888,283 $901,634  
       
(1) Both issued and outstanding shares as stated here exclude 46,686 shares and 42,259 shares of unvested restricted stock awards at June 30, 2025 and December 31, 2024, respectively.
(2) Treasury stock includes 722 shares held by subsidiary bank CIBM Bank. 
       



CIB MARINE BANCSHARES, INC. 
Consolidated Statements of Operations (Unaudited) 
          
 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) 
          
Interest Income         
Loans$9,653 $9,623 $9,999 $10,573 $10,582  $19,276 $20,976  
Loans held for sale 149  137  215  300  213   286  355  
Securities 1,186  1,150  1,151  1,183  1,217   2,336  2,448  
Other investments 29  31  43  227  40   60  74  
Total interest income 11,017  10,941  11,408  12,283  12,052   21,958  23,853  
          
Interest Expense         
Deposits 4,795  5,029  5,638  6,354  6,466   9,824  12,693  
Short-term borrowings 625  504  500  232  310   1,129  803  
Long-term borrowings 121  119  121  121  121   240  241  
Total 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         
Deposit service charges 65  59  55  63  67   124  133  
Other service fees (10) (9) (5) (5) 1   (19) (4) 
Mortgage banking revenue, net 1,424  1,140  1,564  2,264  2,166   2,564  3,375  
Other income 279  177  192  150  273   456  436  
Net gains on sale of securities available for sale 0  0  0  0  0   0  0  
Unrealized gains (losses) recognized on equity securities 7  36  (71) 78  (14)  43  (32) 
Net gains (loss) on sale of SBA loans 0  161  0  420  0   161  202  
Net gains on sale of assets and (writedowns) 0  (12) (11) (73) 4,411   (12) 4,421  
Total noninterest income 1,765  1,552  1,724  2,897  6,904   3,317  8,531  
          
Noninterest Expense         
Compensation and employee benefits 4,060  4,066  4,344  4,852  4,700   8,126  8,989  
Equipment 583  559  467  504  457   1,142  919  
Occupancy and premises 519  549  500  495  391   1,068  827  
Data Processing 212  221  220  243  208   433  420  
Federal deposit insurance 101  129  144  182  219   230  418  
Professional services 218  278  240  254  219   496  418  
Telephone and data communication 57  52  74  51  51   109  107  
Insurance 75  64  71  78  80   139  161  
Other expense 486  455  618  504  579   941  1,066  
Total noninterest expense 6,311  6,373  6,678  7,163  6,904   12,684  13,325  
Income from operations         
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  
Preferred stock dividend 0  0  0  0  0   0  0  
Discount from repurchase of preferred
stock
 0  0  406  0  0   0  0  
Net income (loss) allocated to         
 common stockholders$668 $321 $810 $1,076 $3,784  $989 $3,962  
          

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