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CIB Marine Bancshares, Inc. Announces 2024 Results

BROOKFIELD, Wis., Jan. 24, 2025 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the 鈥淐ompany鈥� or 鈥淐IB Marine鈥�) (OTCQX: CIBH), the holding company of CIBM Bank (the 鈥淏ank鈥�), announced its unaudited results of operations and financial condition for the quarter and year ending December 31, 2024. Earnings for the year are up $4.6 million compared to 2023, the Company redeemed the remainder of its Preferred Stock during the fourth quarter, the net interest margin has improved from the last quarter of 2023 and the first quarter of 2024, and the Mortgage Division had its best year since 2021.

Net income allocated to common shareholders for the year was $5.8 million, or $4.32 basic and $3.38 diluted earnings per share, compared to $0.9 million, or $0.66 basic and $0.49 diluted earnings per share, for the same period of 2023. Excluding the effects of the non-recurring sale-leaseback transaction gain on sale reported in the second quarter of 2024, net income for the year ended December 31, 2024, was $2.5 million, or $1.87 basic and $1.46 diluted earnings per share.

Financial highlights for the quarter and year include:

• Net interest margins (NIM) have generally trended up over the course the year. The Company鈥檚 NIM also showed an upward trend through most of 2024, starting at 2.29% in the first quarter and climbing to 2.55% in the third quarter. The NIM had a slight decline to 2.44% in the fourth quarter, mainly due to an accrued interest charge-off related to a $2.5 million non-accrual loan and volatility in the net interest margin caused by Fed rate changes. Net interest income declined in 2024 primarily due to cost of funds pressure compared to 2023, with the cost of interest-bearing liabilities up 102 basis points for the year due to the high level of bank deposit rates and competition.
• Loan portfolio balances decreased $25 million over the year due to high loan rates and the Company鈥檚 balance sheet management strategy in support of the redemption of the remaining preferred stock. With the preferred stock redemptions completed we plan to resume growing the loan portfolio in 2025. Deposits decreased $35 million for the year due primarily to declines in our money market savings accounts reflecting rate cuts in the latter half of the year and increased demand for time deposits.
• As of December 31, 2024, non-performing assets, OREO, modified loans to borrowers experiencing financial difficulty, and loans 90 days or more past due and still accruing to total assets and nonaccrual loans to total loans ratios were 0.98% and 0.81%, respectively, compared to 0.90% and 0.50%, respectively, on December 31, 2023. The primary reason for the increase in the ratios over the time-period is due to three non-accrual credit relationships with borrowers in or related to the transportation industry. One of the non-accrual loans is a loan that was reported as 90 plus days and still accruing in the third quarter of 2024.
• As of December 31, 2024, the allowance for credit losses on loans (鈥淎CLL鈥�) to loans was 1.26% compared to 1.27% on December 31, 2023. Over the course of 2023 and 2024, forecasts for gross domestic product and unemployment generally improved while certain qualitative factors related to loan performance deteriorated, as reflected in the increase in our asset quality ratios discussed above.
• For the year ending December 31, 2024, Banking Division net income was $6.5 million, which is up from $2.3 million for the same period in 2023. Excluding the sale-leaseback gain on sale, Banking Division net income for 2024 was $3.2 million. Improvements were the result of cost save initiatives, improving the trend in the net interest margin over the course of the year, and adjustments in the provision for credit losses on loans. The Mortgage Division improved to a $0.1 million net loss compared to $0.7 million net loss in 2023, the result of cost save initiatives while maintaining loan production levels similar to those in 2023, despite the continued challenges of high mortgage rates and housing affordability.
  

Mr. J. Brian Chaffin, CIB Marine鈥檚 President and CEO, commented, 鈥淒uring 2024, we were able to improve our operating results, redeem the remaining preferred stock and commence improvements on NIM. Cost controls resulted in reduced staffing at the Mortgage Division and helped it turn out its best operating results over the last three years, in a very challenging operating environment. We also reduced our portfolio loan growth during 2024, but with the preferred stock redemption completed we have begun to rebuild our commercial client pipelines with a keen focus on net interest margin contributions and concentration risks. While recent federal funds rate reductions and a positively sloped yield curve are welcome, they can create some short term 鈥榖umpy鈥� outcomes for the NIM, an area of significant focus for us in 2024.鈥�

He concluded, 鈥淲e can鈥檛 overstate the significance of the final preferred stock redemption. We have simplified our capital structure and eliminated the potentially dilutive impact on our common stock, while improving our book value. Our focus for 2025 is earnings, efficiency and building a brighter future for the organization and its shareholders.鈥�

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 nine states. More information on the Company is available at , 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 鈥渇orward-looking statements鈥� 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 鈥渕ay,鈥� 鈥減roject,鈥� 鈥渁re confident,鈥� 鈥渟hould be,鈥� 鈥渋ntend,鈥� 鈥減redict,鈥� 鈥渂elieve,鈥� 鈥減lan,鈥� 鈥渆xpect,鈥� 鈥渆stimate,鈥� 鈥渁nticipate鈥� and similar expressions. These forward-looking statements reflect CIB Marine鈥檚 current views with respect to future events and financial performance that are subject to many uncertainties and factors relating to CIB Marine鈥檚 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鈥檚 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鈥檚 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鈥檚 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鈥檚 actual results may differ materially from the results discussed in forward-looking statements.

FOR INFORMATION CONTACT:
J. Brian Chaffin, President & CEO
(217) 355-0900