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 30th 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 STATEMENTSCIB 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)
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%
