CIB Marine Bancshares Stock

CIB Marine Bancshares, Inc. operates as a financial services holding company.

The company provides a full range of banking and related services through its banking subsidiary, CIBM Bank, and one non-bank subsidiary that holds legacy loan and other real estate owned being collected. The primary sources of revenue are predominantly from loans to small and middle-market business customers, investments in securities, and mortgage banking activity. CIBM Bank also offers a range of deposit and other financial products to its customers. Its offices and, generally, customers are located in the central and northeastern Illinois, Milwaukee, and Indianapolis markets.

The company has agreed with a local depository institution to sell its Danville, Illinois, branch retail deposits. The company originates loans approved under the Small Business Administration 7(a) loan program (SBA 7(a) loans).

Loans

Commercial loans are dependent on the condition of the industries of the related borrowers and the strength of their businesses. Commercial loans are typically advances for equipment purchases or to provide working capital or meet other financing needs of business enterprises. These loans may be secured by accounts receivable, inventory, equipment, or other business assets.

Commercial real estate loans and construction development loans are dependent on the industries tied to these loans, the local commercial real estate market, and other relevant factors like the local labor markets. The loans are secured by the real estate, and appraisals are obtained to support the loan amount. An evaluation of the project's cash flows is performed to evaluate the borrower's ability to repay the loan at the time of origination and periodically updated during the life of the loan.

Residential real estate and home equity loans are loans secured with a mortgage on a residential property. These loans may be affected by the local residential real estate market, the labor markets in the local economy, and, for variable rate mortgages, movement in indices tied to these loans. At the time of origination, CIBM Bank evaluates the borrower's repayment ability through a review of credit scores, debt to income ratios, and other relevant factors. Appraisals are obtained to support the loan amount.

Consumer loans are affected by labor markets in the local economy. The loans may be unsecured or secured by various assets, including automobiles, equity investments, deposits, and other eligible collateral. At the time of origination, borrower credit worthiness is evaluated using the borrower's credit score, debt to income ratio, and other relevant factors.

CIBM Bank is a member of the FHLB (Federal Home Loan Bank) system.

Operating Segments

The Mortgage segment includes the operations of the mortgage division of CIBM Bank with revenue derived from residential real estate loan originations and sales.

The Banking segment includes the operations of CIBM Bank and CIB Marine Capital, LLC. The Banking segment derives its revenue principally from investments in interest-earning assets, as well as noninterest income typical for the banking industry.

The Corporate segment includes the holding company's financing and investment activities.

Investment Securities

The company's investment securities are the U.S. treasury securities, the U.S. government agencies, states and political subdivisions, trust preferred collateralized debt obligations, other debt obligations, asset backed securities, and residential mortgage-backed securities (agencies).

Deposits

The company's deposits are noninterest-bearing demand deposits, interest-bearing demand deposits, savings accounts, and time deposits.

History

The company was incorporated in 1985. It was formerly known as Central Illinois Bancorp, Inc. and changed its name to CIB Marine Bancshares, Inc. in 1999.