GlobeNewswire Inc | Apr 12, 2021 05:00AM EDT

April 12, 2021

BROOKFIELD, Wis., April 12, 2021 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the Company or CIBM) (OTCQB: CIBH), the holding company of CIBM Bank, announced its unaudited results of operations and financial condition for the first quarter of 2021. Net income for the quarter ended March 31, 2021, was $2.1 million or $1.67 basic and $0.97 diluted earnings per share, compared to $0.8 million or $0.63 basic and $0.36 diluted earnings per share for the same period of 2020.

Financial highlights for the quarter include:

-- Tangible book value attributable to the common stock increased to $53.25 per share outstanding at March 31, 2021 compared to $52.28 at December 31, 2020, and $46.05 at March 31, 2020, reflecting a 15.7% year-on-year increase. -- Net mortgage banking revenues were up $2.8 million for the quarter versus the same period of 2020, reflecting a $63 million increase in residential mortgage loans for the period, due primarily to refinance activity driven by lower interest rates. Compensation expenses increased $1.5 million compared to the same period in 2020, largely related to mortgage lending compensation. -- When compared to the first quarter of 2020, first quarter 2021 net interest income was up $0.8 million; net interest margin was up 19 basis points to 3.23%, reflecting an 89 basis point improvement in the cost of interest bearing liabilities compared to a 55 basis point decline in interest earning asset yields; and average interest earning assets were up $65 million, primarily in commercial segment loans and residential loans held for sale. -- Non-performing assets, restructured loans, and loans 90 days or more past due and still accruing to total assets and nonaccrual loans to total loans were 0.52% and 0.23%, respectively, at March 31, 2021, compared to 0.54% and 0.23%, respectively, at December 31, 2020, and down from 1.24% and 0.97%, respectively, at March 31, 2020. Recent measures continue to be near this credit cycles best. -- During the first quarter, CIBM Bank originated $18 million in new Paycheck Protection Plan (PPP) loans and received SBA forgiveness funding to close $19 million in PPP loans originated in 2020. -- Deposits for checking, savings, and money market accounts grew by $44 million during the quarter, reflecting federal fiscal and monetary policies (e.g., low interest rates) and marketing activity results.

Mr. J. Brian Chaffin, CIB Marines President and CEO, commented, We are pleased with another quarter of strong income and a return on average assets of 1.14% due to continued strength in mortgage lending activity and solid progress in the net interest margin. We typically see a seasonal uptick in purchase money mortgage activity in the warmer months, and we expect that to be countered by reduced refinance activity as a result of the recent increase in long term interest rates.

Our balance sheet has grown since year-end as a result of (a) surging checking and money market account balances due, in part, to federal economic stimulus policies and programs and (b) steady commercial loan production, which has replaced residential loan balances as refinanced mortgages are sold. While the banking industry as a whole performed better than many experts predicted over the past year, and CIBM performed even better than the peer, particularly with regard to credit metrics, we remain cautious about future credit quality in higher risk segments of the loan portfolio due to the lingering impact of the pandemic, he concluded.

CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates ten banking offices and five mortgage loan 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 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 Marines current views with respect to future events and financial performance that are subject to many uncertainties and factors relating to CIB Marines 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 Marines 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 Marines 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 Marines 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 Marines actual results may differ materially from the results discussed in forward-looking statements.

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



CIB MARINE BANCSHARES, INC.Selected Unaudited Consolidated Financial Data At or for the Quarters Ended 3 Months Ended March 31, December 31, September 30, June 30, March 31, March 31, March 31, 2021 2020 2020 2020 2020 2021 2020 (Dollars in thousands, except share and per share data)SelectedStatement of OperationsData:Interest anddividend $ 6,265 $ 6,489 $ 7,202 $ 6,669 $ 6,636 $ 6,265 $ 6,636 incomeInterest 536 765 1,017 1,343 1,689 536 1,689 expenseNet interest 5,729 5,724 6,185 5,326 4,947 5,729 4,947 incomeProvision for 20 101 501 249 202 20 202 loan lossesNet interestincome after provision forloan losses 5,709 5,623 5,684 5,077 4,745 5,709 4,745 Noninterest 5,146 6,566 8,104 4,489 2,642 5,146 2,642 income (1)Noninterest 7,940 9,317 9,056 7,308 6,322 7,940 6,322 expenseIncome before 2,915 2,872 4,732 2,258 1,065 2,915 1,065 income taxesIncome tax 798 565 1,322 575 281 798 281 expenseNet income $ 2,117 $ 2,307 $ 3,410 $ 1,683 $ 784 $ 2,117 $ 784 Common Share Data (2):Basic netincome per $ 1.67 $ 1.82 $ 2.69 $ 1.36 $ 0.63 $ 1.67 $ 0.63 share (3)Diluted netincome per 0.97 1.06 1.56 0.79 0.36 0.98 0.36 share (3)Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Tangible bookvalue per 53.25 52.28 50.35 47.25 46.05 53.25 46.05 share (4)Book value 48.21 47.19 45.27 42.00 40.95 48.21 40.95 per share (4)Weightedaverageshares 1,268,947 1,267,584 1,267,582 1,266,174 1,248,275 1,268,947 1,248,275 outstanding -basicWeightedaverageshares 2,185,433 2,181,142 2,181,868 2,160,201 2,155,315 2,185,433 2,155,315 outstanding -dilutedFinancialCondition Data:Total assets $ 752,715 $ 750,982 $ 793,604 $ 793,151 $ 705,473 $ 752,715 $ 705,473 Loans 540,206 539,227 546,351 535,692 513,992 540,206 513,992 Allowance for (9,253 ) (9,122 ) (9,037 ) (8,483 ) (8,107 ) (9,253 ) (8,107 )loan lossesInvestment 112,400 108,492 107,351 113,303 120,105 112,400 120,105 securitiesDeposits 608,433 586,373 593,370 566,811 531,999 608,433 531,999 Borrowings 30,736 51,310 87,994 120,233 68,950 30,736 68,950 Stockholders' 105,593 103,704 101,271 97,347 95,841 105,593 95,841 equityFinancialRatios and Other Data:Performance Ratios:Net interest 3.23 % 3.14 % 3.30 % 2.96 % 3.04 % 3.23 % 3.04 %margin (5)Net interest 3.13 % 3.01 % 3.16 % 2.76 % 2.78 % 3.13 % 2.78 %spread (6)Noninterestincome to 2.79 % 3.43 % 4.12 % 2.36 % 1.51 % 2.79 % 1.51 %averageassets (7)Noninterestexpense to 4.27 % 4.86 % 4.60 % 3.86 % 3.67 % 4.27 % 3.67 %averageassetsEfficiency 72.72 % 75.77 % 63.38 % 74.61 % 83.74 % 72.72 % 83.74 %ratio (8)Earnings onaverage 1.14 % 1.20 % 1.73 % 0.89 % 0.45 % 1.14 % 0.45 %assets (9)Earnings onaverage 8.10 % 8.83 % 13.51 % 6.97 % 3.32 % 8.10 % 3.32 %equity (10)Asset Quality Ratios:Nonaccrualloans to 0.23 % 0.23 % 0.32 % 0.92 % 0.97 % 0.23 % 0.97 %loans (11)Nonaccrualloans, restructuredloans andloans 90 daysor more past due and stillaccruing tototal loans 0.37 % 0.40 % 0.49 % 1.07 % 1.25 % 0.37 % 1.25 %(11)Nonperformingassets, restructuredloansand loans 90days or more past due andstillaccruing tototal assets 0.52 % 0.54 % 0.60 % 1.02 % 1.24 % 0.52 % 1.24 %(11)Allowance forloan losses 1.71 % 1.69 % 1.65 % 1.58 % 1.58 % 1.71 % 1.58 %to totalloans (11)Allowance forloan losses to nonaccrualloans,restructuredloans and loans 90 daysormore past dueand still 459.21 % 421.14 % 338.59 % 147.79 % 126.26 % 459.21 % 126.26 %accruing (11)Netcharge-offs (recoveries)annualizedto average -0.08 % 0.01 % -0.04 % -0.09 % 0.08 % -0.01 % 0.15 %loans (11)Capital Ratios:Total equityto total 14.03 % 13.81 % 12.76 % 12.27 % 13.59 % 14.03 % 13.59 %assetsTotalrisk-based 18.15 % 17.44 % 16.13 % 15.49 % 15.36 % 18.15 % 15.36 %capital ratioTier 1risk-based 16.89 % 16.19 % 14.87 % 14.23 % 14.11 % 16.89 % 14.11 %capital ratioLeverage 11.88 % 11.46 % 11.20 % 10.82 % 11.08 % 11.88 % 11.08 %capital ratioOther Data: Number ofemployees 179 176 176 177 177 179 177 (full-timeequivalent)Number ofbanking 10 11 11 11 11 10 11 facilities (1) Noninterest income includes gains and losses on securities.(2) Common share data prior to September 14, 2020, is adjusted to reflect the1:15 reverse split to allow for comparability between the pre- and post-reverse split periods.(3) Net income available to common stockholders in the calculation of earningsper share includes the difference between the carrying amount less theconsideration paid for redeemed preferred stock of $0.03 million for the 2ndquarter and 12 months ended 2020.(4) Tangible book value per share is the stockholder equity less the carryvalue of the preferred stock and less the goodwill and intangible assets,divided by the total shares of common outstanding. Book value per share is thestockholder equity less the liquidation preference of the preferred stock,divided by the total shares of common outstanding. Book value measures arereported inclusive of the net deferred tax assets. As presented here, shares ofcommon outstanding excludes unvested restricted stock awards.(5) Net interest margin is the ratio of net interest income to averageinterest-earning assets.(6) Net interest spread is the yield on average interest-earning assets lessthe rate on average interest-bearing liabilities.(7) Noninterest income to average assets excludes gains and losses onsecurities.(8) The efficiency ratio is noninterest expense divided by the sum of netinterest income plus noninterest income, excluding gains and losses onsecurities.(9) Earnings on average assets are net income divided by average total assets.(10) Earnings on average equity are net income divided by average stockholders'equity.(11) Excludes loans held for sale.

CIB MARINE BANCSHARES, INC.Consolidated Balance Sheets (unaudited) March 31, December 31, September 30, June 30, March 31, 2021 2020 2020 2020 2020 (Dollars in Thousands, Except Shares)Assets Cash and due from $ 51,691 $ 29,927 $ 30,544 $ 9,120 $ 9,006 banksReverse repurchase - - 8,208 18,117 3,622 agreementsSecurities 109,965 106,014 104,866 110,818 117,640 available for saleEquity securities 2,435 2,478 2,485 2,485 2,465 at fair valueLoans held for sale 18,136 42,977 67,496 83,997 24,988 Loans 540,206 539,227 546,351 535,692 513,992 Allowance for loan (9,253 ) (9,122 ) (9,037 ) (8,483 ) (8,107 )lossesNet loans 530,953 530,105 537,314 527,209 505,885 Federal Home Loan 3,140 3,140 3,140 2,948 2,947 Bank StockPremises and 4,476 4,682 4,667 4,679 4,769 equipment, netAccrued interest 1,983 2,050 2,075 1,973 1,610 receivableDeferred tax 16,417 16,292 18,547 19,325 19,509 assets, netOther real estate 1,875 1,875 2,103 2,334 2,335 owned, netBank owned life 4,831 4,802 4,774 4,745 4,718 insuranceGoodwill and other 126 131 137 142 148 intangible assetsOther assets 6,687 6,509 7,248 5,259 5,831 Total Assets $ 752,715 $ 750,982 $ 793,604 $ 793,151 $ 705,473 Liabilities andStockholders' EquityDeposits: Noninterest-bearing $ 109,466 $ 92,544 $ 91,134 $ 90,450 $ 67,459 demandInterest-bearing 63,033 59,679 61,262 54,288 47,760 demandSavings 268,026 243,888 225,724 205,470 196,797 Time 167,908 190,262 215,250 216,603 219,983 Total deposits 608,433 586,373 593,370 566,811 531,999 Short-term 30,736 51,310 54,052 77,273 68,950 borrowingsLong-term - - 33,942 42,960 - borrowingsAccrued interest 140 246 398 447 543 payableOther liabilities 7,813 9,349 10,571 8,313 8,140 Total liabilities 647,122 647,278 692,333 695,804 609,632 Stockholders' EquityPreferred stock, $1par value;5,000,000authorized sharesat both March 31,2021 and December31, 2020; 7% fixedrate noncumulative 37,308 37,308 37,308 37,308 37,490 perpetual issued;40,690 shares ofseries A and 3,201shares of series B;convertible; $43.9million aggregateliquidationpreference Common stock, $1par value;75,000,000authorized shares;1,294,665 and1,282,385 issuedshares; 1,280,596 1,295 1,282 1,282 19,240 19,162 and 1,268,316outstanding sharesat March 31, 2021and December 31,2020, respectively.(1)(2)Capital surplus (2) 179,291 179,188 179,090 161,032 160,990 Accumulated deficit (113,452 ) (115,569 ) (117,875 ) (121,285 ) (122,969 )Accumulated othercomprehensive 1,685 2,029 2,000 1,586 1,702 income, netTreasury stock,14,791 shares onMarch 31, 2021 and (534 ) (534 ) (534 ) (534 ) (534 )December 31, 2020and 221,902 sharesprior at cost (2)Total stockholders' 105,593 103,704 101,271 97,347 95,841 equityTotal liabilitiesand stockholders' $ 752,715 $ 750,982 $ 793,604 $ 793,151 $ 705,473 equity (1) Both issued and outstanding shares as stated here exclude 75,146 shares ofunvested restricted stock awards at March 31, 2021 and 59,842 at December 31,2020.(2) Effective September 14, 2020, the Company executed a reverse stock split of1 share for every 15 shares outstanding. Fractional shares were remitted cashat the then-current market value of $15.75 per share.

CIB MARINE BANCSHARES, INC.Consolidated Statements of Operations (Unaudited) At or for the Quarters Ended 3 Months Ended March 31, December September June 30, March 31, March 31, March 31, 31, 30, 2021 2020 2020 2020 2020 2021 2020 (Dollars in thousands) Interest IncomeLoans $ 5,524 $ 5,577 $ 6,054 $ 5,540 $ 5,703 $ 5,524 $ 5,703 Loans held 175 331 537 451 119 175 119 for saleSecurities 555 564 573 661 763 555 763 Other 11 17 38 17 51 11 51 investmentsTotalinterest 6,265 6,489 7,202 6,669 6,636 6,265 6,636 income Interest ExpenseDeposits 512 735 942 1,263 1,512 512 1,512 Short-term 24 30 38 54 177 24 177 borrowingsLong-term 0 0 37 26 0 0 0 borrowingsTotalinterest 536 765 1,017 1,343 1,689 536 1,689 expenseNet interest 5,729 5,724 6,185 5,326 4,947 5,729 4,947 incomeProvision for 20 101 501 249 202 20 202 loan lossesNet interestincome after provision forloan losses 5,709 5,623 5,684 5,077 4,745 5,709 4,745 Noninterest IncomeDepositservice 84 91 89 88 96 84 96 chargesOther service 40 37 36 36 20 40 20 feesMortgagebanking 4,983 6,387 7,741 3,990 2,177 4,983 2,177 revenue, netOther income 192 165 226 266 265 192 265 Net gains onsale ofsecurities 0 0 0 0 0 0 0 available forsaleUnrealizedgains(losses) (43 ) (6 ) 0 20 39 (43 ) 39 recognized onequitysecuritiesNet gains(loss) on 0 55 (55 ) 87 437 0 437 sale of SBAloansNet gains(losses) onsale of (110 ) (163 ) 67 2 (392 ) (110 ) (392 )assets and(writedowns)Totalnoninterest 5,146 6,566 8,104 4,489 2,642 5,146 2,642 income Noninterest ExpenseCompensationand employee 5,956 7,015 7,329 5,451 4,421 5,956 4,421 benefitsEquipment 379 402 352 379 363 379 363 Occupancy and 434 452 390 407 460 434 460 premisesData 185 178 177 155 164 185 164 ProcessingFederaldeposit 48 49 48 47 0 48 0 insuranceProfessional 253 322 162 242 298 253 298 servicesTelephone anddata 60 82 71 67 68 60 68 communicationInsurance 68 62 58 55 54 68 54 Other expense 557 755 469 505 494 557 494 Totalnoninterest 7,940 9,317 9,056 7,308 6,322 7,940 6,322 expenseIncome from operationsbefore income 2,915 2,872 4,732 2,258 1,065 2,915 1,065 taxesIncome tax 798 565 1,322 575 281 798 281 expenseNet income 2,117 2,307 3,410 1,683 784 2,117 784 Preferredstock 0 0 0 0 0 0 0 dividendDiscount fromrepurchase of 0 0 33 0 0 0 0 preferredstockNet income allocated tocommon $ 2,117 $ 2,307 $ 3,443 $ 1,683 $ 784 $ 2,117 $ 784 stockholders