Cib Marine Bancshares Inc Stock Price, News & Analysis

CIB Marine Bancshares has announced a strategic agreement with Hildene Capital Management for the repurchase of all preferred stock over four years, starting with an initial repurchase of $18 million in 2021. The shares will be bought back at $825 each, representing a 17.5% discount on their liquidation preference value. Shareholder approval for the Second Amended and Restated Articles of Incorporation is required, with the rescheduled annual meeting set for September 2021. This initiative aims to align interests and conclude a proxy contest, thereby enhancing shareholder value.

CIB Marine Bancshares, Inc. (CIBH) reported strong financial results for the first half of 2021, with net income of $3.5 million, up from $2.5 million last year. The company saw a return on average assets improvement to 0.94% and increased tangible book value to $54.19 per share. Net interest income rose by $1.2 million for the six months due to a decline in interest-bearing liabilities. Meanwhile, checking and savings deposits grew by $31.1 million and $22.2 million, respectively. However, mortgage banking revenues declined in Q2 compared to last year, reflecting a shift in refinance activity as interest rates rise.

CIB Marine Bancshares plans to adjourn its Annual Meeting of Shareholders from May 19 to July 29, 2021, to facilitate a Repurchase Plan targeting their preferred stock. The company is conducting a Section 382 analysis, finalizing an agreement with Hildene Capital Management, and preparing amended Articles of Incorporation for regulatory approval. Shareholders should expect a potential rescheduling of the meeting and are advised that all submitted proxies remain valid. CEO J. Brian Chaffin expresses confidence in meeting necessary prerequisites by the rescheduled date.

CIB Marine Bancshares, Inc. (OTCQB: CIBH) announced a plan with Hildene Capital Management to repurchase all preferred stock over the next four years. The Annual Meeting of Shareholders has been postponed to May 19, 2021, to allow for regulatory approvals and finalization of the agreement. The postponement may lead to further rescheduling if a third proxy proposal is added to approve an amendment necessary for the Repurchase Plan. CEO J. Brian Chaffin emphasized the significance of this agreement for maximizing shareholder value.

CIB Marine Bancshares proposed a $17 million preferred stock repurchase plan at $775 per share. This was in response to a competing offer from Hildene Opportunities Master Fund, which demanded $850 per share. Shareholder feedback has been positive, urging the company to retire the preferred stock for future growth. However, negotiations with Hildene reached a standstill as critical issues remained unresolved. The company remains committed to its repurchase plan, emphasizing that the $850 per share offer may not be available again after pursuing alternative growth plans.

CIB Marine Bancshares, Inc. (OTCQB: CIBH) reported a net income of $2.1 million for Q1 2021, up from $0.8 million in the same quarter last year. Basic earnings per share increased to $1.67 from $0.63. Tangible book value rose 15.7% year-on-year to $53.25 per share. Mortgage banking revenues improved by $2.8 million due to a $63 million boost in residential mortgage loans driven by lower interest rates. Non-performing assets declined to 0.52%. The bank originated $18 million in new PPP loans in Q1 2021, reflecting strong income and a return on average assets of 1.14%.

CIB Marine Bancshares, Inc. (CIBH) has addressed shareholders regarding a proxy statement from Hildene Opportunities Master Fund. The Company highlights its financial performance over five years and proposes a preferred stock repurchase plan, aiming to buy back 50% of outstanding preferred stock in 2021, with a goal of retiring all within four years. This plan is positioned as more beneficial than Hildene's, which the Company argues would incur $20 million in debt and dividends. Shareholders are encouraged to support CIB Marine's nominees through a WHITE proxy card.

CIB Marine Bancshares (CIBH) received proposals from a Cayman Islands investment fund, including nominations for two board members and amendments to the Articles of Incorporation, which could undermine preferred stock repurchase policies. The fund, the largest preferred stockholder, seeks to enforce mandatory dividend payments and fixed-price repurchases, raising costs significantly. CIBH's President, J. Brian Chaffin, emphasized the need for individually negotiated transactions rather than one stakeholder imposing terms. The company intends to oppose these proposals at the annual meeting.

CIB Marine Bancshares reported significant improvements in net income, achieving $3.4 million in Q3 2020, up from $1.0 million in Q3 2019. For the nine months ending September 30, 2020, net income reached $5.9 million, compared to $2.4 million the previous year. Driven by a surge in mortgage banking, net mortgage revenues were $13.9 million, up from $6.1 million YoY. However, provisions for loan losses increased to $1.0 million, citing credit deterioration from COVID-19. A reverse stock split was executed on September 14, 2020, with plans to upgrade to OTCQX anticipated.