CIB Marine Bancshares, Inc. Announces Third Quarter 2025 Results

Rhea-AI Summary

CIB Marine Bancshares (OTCQX: CIBH) reported unaudited results for Q3 2025 and nine months ended Sept 30, 2025. Q3 net income was $0.9M ($0.68 basic, $0.65 diluted); 9-month net income was $1.9M ($1.41 basic, $1.37 diluted). Net interest margin rose to 2.78% in Q3 and 2.69% for nine months. Average loan balances fell by about $56M, limiting NII growth despite margin gains. Allowance for credit losses to loans increased to 1.33%. Nonperforming assets were 0.75% of assets and nonaccrual loans 0.95% of loans. The company authorized a $1M buyback program; $667,558 repurchased YTD.

Positive

• Net interest margin improved to 2.78% in Q3 2025
• Nine-month net income of $1.9M, up from $1.7M YoY (adjusted)
• Net interest income up $0.7M for nine months vs prior year
• Year-to-date share repurchases of $667,558 under $1M program

Negative

• Average loan balances declined by ~$56M year-over-year
• Quarter-end loans down $52M from Dec 31, 2024
• Allowance for credit losses to loans rose to 1.33%
• Nonaccrual loans increased to 0.95% of total loans

BROOKFIELD, Wis., Oct. 10, 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 nine months ended September 30, 2025. Improved net interest income and stronger mortgage operations both contributed to better operating results during the third quarter, compared to the prior quarter and the same period last year, as outlined below.  

Net income for the quarter was $0.9 million, or $0.68 basic and $0.65 diluted earnings per share, compared to $1.1 million, or $0.79 basic and $0.59 diluted earnings per share, for the same period of 2024. Net income for the nine months ended September 30, 2025, was $1.9 million, or $1.41 basic and $1.37 diluted earnings per share, compared to $1.7 million, or $1.27 basic and $0.94 diluted earnings per share, for the same period of 2024, excluding the effects of the sale-leaseback transaction gain on sale in 2024.

Financial highlights for the quarter and nine-month period include:

• Net interest margin rose to 2.78%, up from 2.69% in the second quarter of 2025 and 2.55% in the third quarter of 2024. The cost of funds for the quarter declined 62 basis points compared to the same period in 2024, due to the repricing of interest-bearing liabilities in a lower-cost interest rate environment, while yields on earning assets declined by 26 basis points. The net interest margin improved to 2.69% for the nine-month period, up from 2.41% for the same period of 2024 as a 51 basis point decline in the cost of funds outpaced a 15 basis point decrease in yields on earning assets. Net interest income increased $0.1 million for the quarter compared to the second quarter of 2025, rose nominally compared to the same quarter in 2024, and was up $0.7 million for the nine months ended September 30^th compared to the same period of 2024. Although net interest margins increased, net interest income saw only modest growth in the third quarter of 2025 compared to the same period in 2024 primarily due to a $56 million decline in average loan balances and an $8 million decrease in average non-interest bearing checking account balances. The decline in loan balances was partly due to prior-year efforts to reduce loan balances in support of preferred stock redemption, as well as a higher-than-expected volume of early payoffs in 2025 for reasons unrelated to service.
• Quarter-end loan balances declined by $10 million from June 30, 2025, and by $52 million from December 31, 2024. The allowance for credit losses to loans ratio rose from 1.26% at December 31, 2024, and 1.32% at June 30, 2025, to 1.33% at September 30, 2025, primarily due to prior deterioration in the Federal Reserve’s economic forecasts used in the Company’s credit loss analysis.   While the forecast has recently begun to improve, our portfolio mix has shifted toward commercial loans, which carry higher reserve rates than residential loans. Additionally, we increased the allowance for certain non-accrual loans, which are evaluated at an individual loan level.
• As of September 30, 2025, non-performing assets represented 0.75% of total assets, and non-accrual loans accounted for 0.95% of total loans--up from 0.68% and 0.85%, respectively, on June 30, 2025, and 0.68% and 0.81% on December 31, 2024. Business plans continue to target higher loan balances by year-end 2025, primarily driven by anticipated growth in the commercial segments.   As of quarter-end, 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 totaled 1.87% of total assets compared to 1.85% at June 30, 2025, 0.97% at March 31, 2025, and 0.98% at December 31, 2024. The increase was primarily due to two commercial loans—one a restructured loan in the transportation industry, and the other 90 days or more past due but still accruing and in the process of collection.

• The Banking Division reported net income of $2.6 million for the nine months ended September 30, 2025, a $0.2 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, but limited by a decline in the loan portfolio. The Mortgage Division’s $0.1 million net income for the nine months ended September 30, 2025, is an improvement of $0.1 million over the prior year. This modest gain reflects the reduction 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 $0.7 million with roughly one-third of that amount attributed to subordinated debt interest expense.
  
  

Mr. J. Brian Chaffin, CIB Marine’s President and CEO, commented, “Improved net interest margins and disciplined expense management contributed to stronger results from the Banking Division. While loan balances declined, our commercial team continues to build momentum, with growth targeted by year-end. The Mortgage Division posted modest gains in operating results, supported by increased refinance activity. Despite reduced staffing, expense controls continue to support improved operating results and our team remains well-positioned to perform in a competitive market.”

He concluded, “In early October 2025, CIBM Bank received regulatory approval and distributed $3 million in capital to its parent company, CIB Marine Bancshares, Inc. The parent company also maintains a $2 million line of credit, though no draws have been made to date. These available resources support the 2025 common stock repurchase program, which authorizes up to $1 million in buybacks. During the third quarter, 4,800 shares were repurchased through open-market transactions for a total of $170,820 at an average price of $35.59 per share. Year to date, 20,312 shares have been repurchased for $667,558 at an average price of $32.87 per share. Provided current trends continue, we expect to complete the repurchase program by year-end.”

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																9 Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2025			2025			2025			2024			2024				2025			2024
	(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income	$	10,780		$	11,017		$	10,941		$	11,408		$	12,283			$	32,738		$	36,136
Interest expense		5,196			5,541			5,652			6,259			6,707				16,389			20,444
Net interest income		5,584			5,476			5,289			5,149			5,576				16,349			15,692
Provision for (reversal of) credit losses		(90	)		9			42			(332	)		(113	)			(39	)		(131	)
Net interest income after provision for
(reversal of) credit losses		5,674			5,467			5,247			5,481			5,689				16,388			15,823
Noninterest income (1)		1,908			1,765			1,552			1,724			2,897				5,225			11,428
Noninterest expense		6,375			6,311			6,373			6,678			7,163				19,059			20,488
Income before income taxes		1,207			921			426			527			1,423				2,554			6,763
Income tax expense		299			253			105			123			347				657			1,725
Net income (loss)	$	908		$	668		$	321		$	404		$	1,076			$	1,897		$	5,038
Common Share Data:
Basic net income (loss) per share (2)	$	0.68		$	0.50		$	0.24		$	0.60		$	0.79			$	1.41		$	3.73
Diluted net income (loss) per share (2)		0.65			0.48			0.23			0.54			0.59				1.37			2.75
Dividend		0.00			0.00			0.00			0.00			0.00				0.00			0.00
Tangible book value per share (3)		60.72			59.55			58.46			57.37			57.80				60.72			57.80
Book value per share (3)		60.77			59.59			58.51			57.42			56.06				60.77			56.06
Weighted average shares outstanding - basic		1,345,233			1,349,613			1,348,995			1,357,737			1,357,259				1,341,077			1,351,205
Weighted average shares outstanding - diluted		1,391,648			1,397,365			1,396,274			1,507,344			1,833,586				1,388,222			1,828,956
Financial Condition Data:
Total assets	$	836,760		$	838,441		$	852,018		$	866,474		$	888,283			$	836,760		$	888,283
Loans		655,620			665,393			684,787			697,093			707,310				655,620			707,310
Allowance for credit losses on loans		(8,721	)		(8,793	)		(8,818	)		(8,790	)		(8,973	)			(8,721	)		(8,973	)
Investment securities		128,214			126,795			124,109			120,339			120,349				128,214			120,349
Deposits		702,078			684,480			692,028			692,378			747,168				702,078			747,168
Borrowings		39,245			59,292			67,214			81,735			33,583				39,245			33,583
Stockholders' equity		81,789			80,492			79,309			77,961			92,358				81,789			92,358
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (4)		2.78%			2.69%			2.62%			2.44%			2.55%				2.69%			2.41%
Net interest spread (5)		2.17%			2.06%			1.99%			1.74%			1.81%				2.07%			1.71%
Noninterest income to average assets (6)		0.91%			0.83%			0.73%			0.82%			1.25%				0.82%			1.69%
Noninterest expense to average assets		3.06%			3.00%			3.05%			3.06%			3.17%				3.04%			3.04%
Efficiency ratio (7)		85.33%			87.24%			93.65%			96.17%			85.32%				88.61%			75.67%
Earnings (loss) on average assets (8)		0.44%			0.32%			0.15%			0.19%			0.48%				0.30%			0.75%
Earnings (loss) on average equity (9)		4.46%			3.36%			1.65%			1.94%			4.71%				3.18%			7.74%
Asset Quality Ratios:
Nonaccrual loans to loans (10)		0.95%			0.85%			0.84%			0.81%			0.44%				0.95%			0.44%
Nonperformance assets to total assets (11)		0.75%			0.68%			0.67%			0.68%			0.38%				0.75%			0.38%
Nonaccrual loans, modified loans to borrowers experiencing financial difficulty, loans 90 days or more past due and still
accruing to total loans		2.38%			2.33%			1.21%			1.19%			1.68%				2.38%			1.68%
Nonaccrual loans, OREO, modified loans to borrowers experiencing financial difficulty, loans 90 days or more past
due and still accruing to total assets		1.87%			1.85%			0.97%			0.98%			1.36%				1.87%			1.36%
Allowance for credit losses on loans to total loans (10)		1.33%			1.32%			1.29%			1.26%			1.27%				1.33%			1.27%
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)		55.78%			56.76%			106.25%			105.95%			75.68%				55.78%			75.68%
Net charge-offs (recoveries) annualized to average loans (10)		0.00%			-0.02%			-0.01%			-0.01%			-0.01%				-0.01%			0.02%
Capital Ratios:
Total equity to total assets		9.77%			9.60%			9.31%			9.00%			10.40%				9.77%			10.40%
Total risk-based capital ratio		13.90%			13.55%			13.34%			13.02%			14.54%				13.90%			14.54%
Tier 1 risk-based capital ratio		11.15%			10.82%			10.62%			10.33%			11.90%				11.15%			11.90%
Leverage capital ratio		8.88%			8.54%			8.40%			8.14%			9.30%				8.88%			9.30%
Other Data:
Number of employees (full-time equivalent)		143			144			152			165			170				143			170
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, nonaccrual securities, and other real estate owned.

CIB MARINE BANCSHARES, INC.
Consolidated Balance Sheets (unaudited)
	September 30,			June 30,			March 31,			December 31,			September 30,
		2025			2025			2025			2024			2024
	(Dollars in Thousands, Except Shares)
Assets
Cash and due from banks	$	19,016		$	10,363		$	7,717		$	6,748		$	13,814
Reverse repurchase agreements		-			-			-			-			-
Securities available for sale		126,017			124,618			121,939			118,206			118,145
Equity securities at fair value		2,197			2,177			2,170			2,133			2,204
Loans held for sale		7,287			7,733			7,685			13,291			19,472
Loans		655,620			665,393			684,787			697,093			707,310
Allowance for credit losses on loans		(8,721	)		(8,793	)		(8,818	)		(8,790	)		(8,973	)
Net loans		646,899			656,600			675,969			688,303			698,337
Federal Home Loan Bank Stock		2,195			3,401			2,607			2,607			2,238
Premises and equipment, net		1,731			1,660			1,486			1,570			1,526
Accrued interest receivable		2,803			2,733			2,680			2,651			2,926
Deferred tax assets, net		11,745			12,160			12,529			12,955			12,796
Other real estate owned, net		-			-			-			200			211
Bank owned life insurance		6,589			6,536			6,486			6,437			6,388
Goodwill and other intangible assets		64			64			64			64			64
Other assets		10,217			10,396			10,686			11,309			10,162
Total assets	$	836,760		$	838,441		$	852,018		$	866,474		$	888,283
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand	$	95,307		$	87,479		$	98,403		$	86,886		$	95,471
Interest-bearing demand		107,512			74,921			77,620			84,833			90,095
Savings		222,450			226,663			232,046			224,960			234,969
Time		276,809			295,417			283,959			295,699			326,633
Total deposits		702,078			684,480			692,028			692,378			747,168
Short-term borrowings		29,458			49,514			57,444			71,973			23,829
Long-term borrowings		9,787			9,778			9,770			9,762			9,754
Accrued interest payable		1,456			1,656			1,614			1,911			2,101
Other liabilities		12,192			12,521			11,853			12,489			13,073
Total liabilities		754,971			757,949			772,709			788,513			795,925
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
Common stock, $1 par value; 75,000,000 authorized shares; 1,385,842 and 1,372,642 issued shares; 1,346,597 and 1,358,473 outstanding shares at September 30, 2025 and December 31, 2024, respectively (1)		1,386			1,386			1,383			1,372			1,372
Capital surplus		182,003			181,908			181,801			181,708			181,603
Accumulated deficit		(97,591	)		(98,498	)		(99,167	)		(99,487	)		(100,297	)
Accumulated other comprehensive income (loss), net		(2,808	)		(3,273	)		(3,939	)		(5,098	)		(3,592	)
Treasury stock, 39,967 shares on September 30, 2025 and 14,791 shares December 31, 2024 (2)		(1,201	)		(1,031	)		(769	)		(534	)		(534	)
Total stockholders' equity		81,789			80,492			79,309			77,961			92,358
Total liabilities and stockholders' equity	$	836,760		$	838,441		$	852,018		$	866,474		$	888,283
(1) Both issued and outstanding shares as stated here exclude 45,546 shares and 42,259 shares of unvested restricted stock awards at September 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																9 Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2025			2025			2025			2024			2024				2025			2024
	(Dollars in thousands)
Interest Income
Loans	$	9,347		$	9,653		$	9,623		$	9,999		$	10,573			$	28,623		$	31,549
Loans held for sale		123			149			137			215			300				409			655
Securities		1,229			1,186			1,150			1,151			1,183				3,565			3,631
Other investments		81			29			31			43			227				141			301
Total interest income		10,780			11,017			10,941			11,408			12,283				32,738			36,136
Interest Expense
Deposits		4,772			4,795			5,029			5,638			6,354				14,596			19,047
Short-term borrowings		302			625			504			500			232				1,431			1,035
Long-term borrowings		122			121			119			121			121				362			362
Total interest expense		5,196			5,541			5,652			6,259			6,707				16,389			20,444
Net interest income		5,584			5,476			5,289			5,149			5,576				16,349			15,692
Provision for (reversal of) credit losses		(90	)		9			42			(332	)		(113	)			(39	)		(131	)
Net interest income after provision for
(reversal of) credit losses		5,674			5,467			5,247			5,481			5,689				16,388			15,823
Noninterest Income
Deposit service charges		62			65			59			55			63				186			196
Other service fees		(7	)		(10	)		(9	)		(5	)		(5	)			(26	)		(9	)
Mortgage banking revenue, net		1,483			1,424			1,140			1,564			2,264				4,047			5,639
Other income		239			279			177			192			150				695			586
Net gains on sale of securities available for sale		0			0			0			0			0				0			0
Unrealized gains (losses) recognized on equity securities		21			7			36			(71	)		78				64			46
Net gains (loss) on sale of SBA loans		110			0			161			0			420				271			622
Net gains on sale of assets and (writedowns)		0			0			(12	)		(11	)		(73	)			(12	)		4,348
Total noninterest income		1,908			1,765			1,552			1,724			2,897				5,225			11,428
Noninterest Expense
Compensation and employee benefits		4,047			4,060			4,066			4,344			4,852				12,173			13,841
Equipment		577			583			559			467			504				1,719			1,423
Occupancy and premises		514			519			549			500			495				1,582			1,322
Data Processing		243			212			221			220			243				676			663
Federal deposit insurance		138			101			129			144			182				368			600
Professional services		205			218			278			240			254				701			672
Telephone and data communication		65			57			52			74			51				174			158
Insurance		92			75			64			71			78				231			239
Other expense		494			486			455			618			504				1,435			1,570
Total noninterest expense		6,375			6,311			6,373			6,678			7,163				19,059			20,488
Income from operations
before income taxes		1,207			921			426			527			1,423				2,554			6,763
Income tax expense		299			253			105			123			347				657			1,725
Net income (loss)		908			668			321			404			1,076				1,897			5,038
Preferred stock dividend		0			0			0			0			0				0			0
Discount from repurchase of preferred stock		0			0			0			406			0				0			0
Net income (loss) allocated to common stockholders	$	908		$	668		$	321		$	810		$	1,076			$	1,897		$	5,038

FAQ

What were CIBH Q3 2025 earnings and EPS?

CIBH reported Q3 2025 net income of $0.9M, basic EPS $0.68 and diluted EPS $0.65.

How did CIBH’s net interest margin change in Q3 2025?

Net interest margin rose to 2.78% in Q3 2025 from 2.69% in Q2 2025 and 2.55% in Q3 2024.

What drove CIBH’s loan balance decline in 2025?

Average loans fell ~$56M due to prior-year balance reductions supporting preferred redemption and higher-than-expected early payoffs in 2025.

What is CIBH’s asset-quality position as of Sept 30, 2025?

Nonperforming assets were 0.75% of total assets and nonaccrual loans were 0.95% of total loans at Sept 30, 2025.

What is the status of CIBH’s share repurchase program in 2025?

A $1M repurchase program is authorized; year-to-date repurchases total $667,558 (20,312 shares).

Did CIBH receive capital from the bank to the parent in Oct 2025?

Yes; in early Oct 2025 CIBM Bank distributed $3M of capital to the parent and the parent maintains a $2M undrawn line of credit.