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 30^th 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
[email protected]

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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