CIB Marine Bancshares, Inc. Announces Third Quarter 2026 Results

BROOKFIELD, Wis., Oct. 21, 2026 (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, 2026. Net income for the quarter was $0.8 million, or $0.58 basic and $0.57 diluted net income per share, compared to $0.9 million, or $0.67 basic and $0.65 diluted net income per share, for the same quarter of 2025. For the nine-month period, net income increased to $2.3 million, or $1.73 basic and $1.69 diluted net income per share, compared to $1.9 million, or $1.41 basic and $1.36 diluted net income per share, for the same period in 2025.

Financial highlights for the quarter include: * Net interest margin increased to 3.05% compared to 3.03% for the second quarter of 2026 and 2.77% for the third quarter of 2025. In addition, the net interest margin increased to 3.02% for the nine months ended September 30, 2026, compared to 2.69% for the same period of 2025. The rising trend continued as the cost of funds declined and earning asset yields rose. Net interest income increased $0.5 million for the quarter compared to the same quarter of 2025, and by $1.5 million for the nine months ended September 30, 2026, compared to the same period of 2025, primarily as a result of improved net interest margins that more than offset the impact of lower average earning asset balances. * Net income for the Banking Division increased by $0.5 million, while net income for the Mortgage Division decreased by $0.1 million for the nine months ended September 30, 2026, compared to the same period in 2025. The Banking Division’s increase was driven primarily by higher net interest income, which more than offset the $0.4 million increase in provisions for credit losses. The Mortgage Division’s results were primarily the result of lower mortgage volumes due to higher mortgage rates and limited housing inventory, offset in part by effective cost controls. * The allowance for credit losses (“ACL”) to loans was 1.23% at September 30, 2026, compared to 1.20% at June 30, 2026, and 1.27% at December 31, 2025. Provision for credit losses increased year to date, and annualized net charge-offs also increased. Improved economic forecasts from the Federal Reserve and lower loan balances since June 30, 2026, partially offset deterioration in qualitative adjustments related to changes in credit classifications and other factors. Non-performing assets to total assets and non-accrual loans to loans were 0.92% and 1.15%, respectively, on September 30, 2026, compared to 1.04% and 1.31%, respectively, on December 31, 2025. While these measures of non-performing asset quality remained relatively consistent during the period, migration within other credit risk categories resulted in the combined total of credits classified as Special Mention, Substandard, and Doubtful increasing from $37 million at December 31, 2025, to $56 million at September 30, 2026. This increase was primarily due to migration in the Commercial and Commercial Real Estate loan portfolio segments, while the Construction & Development, Residential, Home Equity or Consumer segments experienced little overall total classified balance change. Management is closely monitoring these credits and has increased its focus on problem loan management. * Since year-end 2025, loan balances have decreased by $15 million, primarily due to a $10 million and $5 million decline in the residential and commercial (inclusive of the construction and development segment) portfolios, respectively. The decline in residential loans was consistent with portfolio strategy, as these loans generally generate lower net interest spreads. Although commercial loan originations increased compared with the same period in the prior year, elevated prepayment activity, largely attributable to borrower business and property sales rather than interest rate or service considerations, contributed to the decline in commercial loan balances. Deposits increased since December 31, 2025, primarily in money market and noninterest-bearing checking accounts, reflecting targeted growth initiatives and increased marketing expenditures. Short-term borrowings, primarily those from the Federal Home Loan Bank of Chicago, decreased by $29 million during the period with that reduction funded from higher deposit balances and lower loan balances. Mr. J. Brian Chaffin, CIB Marine’s President and CEO, commented, “Earnings improved again as expansion of the net interest margin and disciplined expense management more than offset higher provisions for credit losses. Net interest margin for CIBM Bank was 3.11% for the third quarter, up from 2.84% in the same quarter in 2025, and up from 3.09% in the second quarter of 2026. We remain focused on growing new customer relationships and continuing the repricing of loans and deposits, supported by enhanced marketing activities. Provisions for credit losses increased compared to the same period last year as we have had some credit migration and charge-off activity, as noted above. Management is addressing these issues with the highest priority.”