CHAMPAIGN — Central Illinois Bank's parent company reported a net loss of $1.5 million in the second quarter.
The loss, announced Friday, was the latest in a string of quarterly losses by CIB Marine Bancshares. But it was much smaller than the $2.9 million loss recorded in the same quarter last year.
For shareholders, it amounted to a loss of 8 cents per share, down from a loss of 16 cents per share a year earlier.
In a letter to shareholders, CIB Marine Bancshares CEO Chuck Ponicki said he was encouraged by the progress, but added that "the tepid economic recovery" and "weak real estate and labor markets" continue to hinder asset quality and generation of new loans.
Ponicki said Champaign-based CIBM Bank — which operates as Central Illinois Bank in Illinois — will close its Arrowsmith office in the fourth quarter. He said the bank closed its Scottsdale, Ariz., branch in the second quarter.
As of June 30, CIBM Bank had 14 offices and 140 employees, down from 17 offices and 163 employees a year earlier.
That bank operates as Central Illinois Bank at 10 locations — two in Champaign and one each in Urbana, Sidney, Danville, Monticello, Bloomington, Arrowsmith, Peoria and East Peoria.
It operates as Marine Bank in four locations — one in Indianapolis and three in the Wisconsin cities of Franklin, Waukesha and Wauwatosa.
The Marine Bank office in Champaign is part of a Springfield-based bank that is not associated with Wisconsin-based CIB Marine Bancshares.
As of June 30, CIB Marine Bancshares had $558 million in assets, down from $589 million in assets a year earlier.
CIBM Bank's capital ratios were above the ratios required for "well-capitalized" banks, but regulators consider the bank to be only "adequately capitalized."
That's because it continues to operate under a consent order with the Federal Deposit Insurance Corp. and state banking regulators and under a written agreement with the Federal Reserve Bank.
In another bank report:
Centrue Bank's parent company, Centrue Financial Corp., on Tuesday reported a net loss of $2.4 million for the second quarter.
That was down from a net loss of $3.9 million for the same quarter last year.
For shareholders, it amounted to a loss of 48 cents per common diluted share, compared with a net loss of 73 cents per common diluted share a year earlier.
"We still have more work to do on improving asset quality, but we were able to make meaningful progress in reducing our problem loans and assets," President and CEO Thomas A. Daiber said.
In late July, Centrue announced it had agreed to sell its Champaign branch, at 1001 S. Neil St., to Springfield-based Marine Bank.