CIB Marine Bancshares, Inc. Announces $4.8 Million Redemption of Preferred Stock

Rhea-AI Summary

CIB Marine Bancshares, Inc. (OTCQX: CIBH) has announced the redemption of approximately 26.4% of its Series A Preferred shares, effective December 19, 2022. This redemption, amounting to $4.8 million, will be funded by $10 million of subordinated debt issued earlier in 2022. Shareholders will receive $825 per share on a pro-rata basis. Documentation has been sent to all preferred shareholders of record by Computershare Trust Company, N.A. The company operates ten banking offices and two mortgage loan offices across Illinois, Wisconsin, and Indiana.

Positive

• Redemption of 26.4% of Series A Preferred shares indicates strong financial management.
• Redemption funding secured through $10 million subordinated debt shows liquidity.

Negative

• Redemption of preferred shares may indicate the company is managing financial obligations due to potential liquidity issues.

BROOKFIELD, Wis., Dec. 07, 2022 (GLOBE NEWSWIRE) -- CIB Marine Bancshares, Inc. (the “Company” or “CIB Marine”) (OTCQX: CIBH) has confirmed the redemption date for its previously announced second redemption of preferred stock pursuant to its Second Amended and Restated Articles of Organization. Effective December 19, 2022, approximately 26.4% of CIB Marine’s Series A Preferred shares will be redeemed, on a pro-rata basis, at $825 per share. The $4.8 million redemption will be funded by the $10 million of sub-debt issued by the Company during the first quarter of 2022. Documentation has been mailed to all preferred shareholders of record by the Company’s redemption agent, Computershare Trust Company, N.A.

CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates ten banking offices and two mortgage loan offices in Illinois, Wisconsin and Indiana. More information on the Company is available at www.cibmarine.com, including recent shareholder letters, links to regulatory financial reports, and audited financial statements.

FORWARD-LOOKING STATEMENTS
CIB Marine has made statements in this release that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. CIB Marine intends these forward-looking statements to be subject to the safe harbor created thereby and is including this statement to avail itself of the safe harbor. Forward-looking statements are identified generally by statements containing words and phrases such as “may,” “project,” “are confident,” “should be,” “intend,” “predict,” “believe,” “plan,” “expect,” “estimate,” “anticipate” and similar expressions. These forward-looking statements reflect CIB Marine’s current views with respect to future events and financial performance that are subject to many uncertainties and factors relating to CIB Marine’s operations and the business environment, which could change at any time.

There are inherent difficulties in predicting factors that may affect the accuracy of forward-looking statements.

Stockholders should note that many factors, some of which are discussed elsewhere in this release and in the documents that are incorporated by reference, could affect the future financial results of CIB Marine and could cause those results to differ materially from those expressed in forward-looking statements contained or incorporated by reference in this document. These factors, many of which are beyond CIB Marine’s control, include but are not limited to:

• operating, legal, execution, credit, market, security (including cyber), and regulatory risks;
• economic, political, and competitive forces affecting CIB Marine’s banking business;
• the impact on net interest income and securities values from changes in monetary policy and general economic and political conditions; and
• the risk that CIB Marine’s analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. CIB Marine undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to significant risks and uncertainties and CIB Marine’s actual results may differ materially from the results discussed in forward-looking statements.

FOR INFORMATION CONTACT:
J. Brian Chaffin, President & CEO
(217) 355-0900
brian.chaffin@cibmbank.com

FAQ

What is the redemption date for CIB Marine Bancshares' preferred stock?

The redemption date for CIB Marine Bancshares' preferred stock is December 19, 2022.

How much of CIB Marine's Series A Preferred shares are being redeemed?

Approximately 26.4% of CIB Marine's Series A Preferred shares are being redeemed.

What is the redemption price for CIB Marine's preferred shares?

The redemption price for CIB Marine's preferred shares is $825 per share.

How is the redemption being funded for CIB Marine?

The redemption is being funded by $10 million of subordinated debt issued in the first quarter of 2022.

Who is the redemption agent for CIB Marine's preferred stock?

The redemption agent for CIB Marine's preferred stock is Computershare Trust Company, N.A.