WAUKESHA, Wis. — Central Illinois Bank's parent company reported net income of $34,000 in the first quarter of 2013, a turnaround from a year earlier when the banking concern had a net loss of $111,000.
For shareholders of CIB Marine Bancshares, that translated to essentially no earnings per share for the quarter, compared with a net loss of 1 cent per share a year earlier.
In a letter to shareholders, CIB Marine CEO Chuck Ponicki said the bank's capital ratios, asset quality and earnings have all improved.
The improvement in earnings stemmed from lower expenses for federal deposit insurance and professional services, as well as lower expenses for compensation and employee benefits, insurance and occupancy.
CIB Marine's bank, CIBM Bank — which operates as Central Illinois Bank in Illinois and as Marine Bank in the Indianapolis and Milwaukee areas — had 11 facilities as of March 31, down from 13 a year earlier, and 134 employees, down from 139 a year earlier.
The company had $469 million in assets, down from $502 million a year earlier. Ponicki said the decline was "primarily the result of reductions in loan portfolio balances, some of which were lower-quality assets."
But he added that "the significant shrinkage in our loan portfolio has begun to subside" as a result of new business development efforts in the bank's commercial and consumer business.
Central Illinois Bank has two offices in Champaign and one each in Urbana, Danville, Monticello, Bloomington and Peoria. The four Marine Bank offices are in Indianapolis and the Wisconsin communities of Franklin, Elm Grove and Waukesha.
At the company's annual meeting Thursday in Milwaukee, shareholders will be asked to re-elect John P. Hickey Jr. and Charles E. Baker to the board of directors. Hickey is the current chairman.
They would join six other directors not up for election this year, including Ronald E. Rhoades, chairman, president and CEO of Plastic Container Corp., which has plants in Urbana and Brownsville, Tenn.