CHAMPAIGN – Admitting it will be "challenging" to find a strategic partner, the parent company of Central Illinois Bank says it's "prepared to run independently as long as necessary."
At an informational teleconference for shareholders Friday, CIB Marine Bancshares spelled out goals for the next two years and outlined recent developments.
Noting it had hired investment banker Stifel Nicolaus to find a strategic partner, CIB Marine warned shareholders it will be difficult to find one, given current market conditions.
The Pewaukee, Wis.-based company filed for Chapter 11 bankruptcy Sept. 15, and its prepackaged plan of reorganization was confirmed by the court a month and a half later. The company expects to emerge from Chapter 11 by year's end.
The reorganization allows the company to convert its debt to preferred stock, strengthening CIB Marine Bancshares' capital position.
As of Sept. 30, three of the company's capital ratios were negative, but once the debt-to-stock conversion takes place, those ratios will range from 12.54 percent to 17.41 percent.
In a PowerPoint presentation, CIB Marine stated its goal for 2010 is to bring its banking subsidiary back to profitability by the fourth quarter. Its goal for the following year is to make the whole company profitable by cutting costs, improving credit quality and managing margins.
The company has 17 bank branches in Illinois, Indiana, Wisconsin and Arizona and has 165 full-time employees.
For the quarter that ended Sept. 30, CIB Marine Bancshares reported a net loss of $13.9 million or 77 cents a share. For the first nine months of this year, the company had a net loss of $30 million or $1.65 a share. It said 9.18 percent of its loans are nonperforming, meaning that principal and interest payments are 90 days or more past due.
Because the company was originally based in Champaign County, many of its shareholders live in central Illinois. The company is not associated with Marine Bank, Springfield, which has an office in Champaign.