CIB Marine Bancshares, Inc Announces Third 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 nine months ended September 30, 2023. During the quarter, CIBM Bank grew its commercial loan portfolio, took cost reduction actions, and continued to adjust its mortgage operations at an increasingly challenged time in this interest rate cycle. The Mortgage Division had a nominal operating loss in the third quarter versus a small operating profit in the second quarter of 2023. The Bank's cost of funds was sharply higher, causing a reduction in Banking Division earnings. Net income for the quarter was $0.4 million, or $0.28 basic and $0.21 diluted earnings per share, compared to $1.0 million, or $0.78 basic and $0.57 diluted earnings per share, for the same period of 2022. Net income for the nine months ended September 30, 2023, was $1.8 million, or $1.34 basic and $0.98 diluted earnings per share, compared to $2.8 million, or $2.16 basic and $1.57 diluted earnings per share, for the same period of 2022.

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

As of September 30, 2023, 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 0.49% and 0.50%, respectively, compared to 0.20% and 0.16%, respectively, on December 31, 2022, and 0.18% and 0.13%, respectively, on September 30, 2022. Also, as of September 30, 2023, the allowance for credit losses on loans ("ACLL") to loans was 1.30% compared to an allowance for loan and lease losses of 1.37% at December 31, 2022, and 1.43% at September 30, 2022. The ACLL is down 9 basis points from June 30, 2023, due to improved economic forecasts and other qualitative factors offset in part by slower prepayment speeds, as well as a higher portion of the loan portfolio being in residential loans that generally have a lower expected loss rate than commercial segment loans.

Net interest income and margins have been declining this year with our banking peers. CIBM's were $16.3 million and 2.84%, respectively, for the nine months ended September 30, 2023, compared to $17.8 million and 3.25%, respectively, in the same period of 2022. The nine-month period in 2023 had $0.3 million less Paycheck Protection Program loan fee accretion income and $0.1 million more subordinated debt...