CIB Marine Bancshares, Inc. Announces Second Quarter 2023 Results.

BROOKFIELD, Wis: CIB Marine Bancshares, Inc. (the "Company" or "CIBM") (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, 2023. During the quarter, CIBM Bank grew its loan portfolio, expanded its mortgage operations, and completed the sale of the retail deposits from its Danville, Illinois, branch. The Mortgage Division had a small operating profit in the second quarter versus a significant loss in the first quarter of 2023, and the Bank's cost of funds were sharply higher. Net income for the quarter was $1.2 million, or $0.88 basic and $0.64 diluted earnings per share, compared to $0.9 million, or $0.68 basic and $0.49 diluted earnings per share, for the same period of 2022. Net income for the six months ended June 30, 2023, was $1.4 million, or $1.06 basic and $0.77 diluted earnings per share, compared to $1.8 million, or $1.38 basic and $1.00 diluted earnings per share, for the same period of 2022.

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

$23 million in retail deposits from the Bank's Danville, Illinois, branch were sold for a gain of $1.5 million, net of conversion-related data processing costs. In addition, approximately $0.2 million additional costs were incurred related to the deposit sale and the recently announced closure of the Danville branch during the first half of 2023 so that the combined effect was $1.3 million in total income and $1.0 million on a tax adjusted basis.

Loan portfolio balances increased $70 million year to date, comprised primarily of $38 million in residential mortgage loans and $31 million in commercial segment loans; and from March 31, 2023, to June 30, 2023, loan portfolio balances increased $39 million with $30 million in residential mortgage loans and $9 million in commercial segment loans. Loan growth is likely to slow significantly in the third quarter as more of the future residential mortgage loan originations will be sold in the foreseeable future. During the first half of the year, the Mortgage Division originated $126 million in residential mortgage loans with roughly two-thirds of the originated loans sold or held for sale. The remainder are held in the Bank's loan portfolio with the majority of those loans having the following terms: 5/1 ARM, 7/1 ARM, or 15-year fixed. Over the prior eight years, the Mortgage Division's loans originated for sale...