Both Marine Bank and Anchor Bancorp posted lower earnings in the second quarter, compared with their earnings in same period a year ago 2007.
Losses mount for Marine Bank’s parent company
Pewaukee-based CIB Marine Bancshares Inc. joins the growing list of American financial institutions under severe distress from the collapse of the housing market. The company recently reported it lost $14.0 million, or 76 cents per share, from its continuing operations in the second quarter. For the first half of the year, the firm lost $16.7 million.
CIB Marine said key contributors to the large continuing operating loss included continued depression of its net interest margin, continued deterioration in its purchased home equity loan portfolios and general declining economic conditions in some of its markets.
At the direction of its board of directors, the company engaged an investment banker to assist management in identifying and contacting other bank holding companies regarding a possible merger or business combination.
CIB Marine is the parent company of Wauwatosa-based Marine Bank, Central Illinois Bank in Champaign, Ill., and Citrus Bank N.A. in Vero Beach, Fla. CIB Marine continues to take steps to implement a capital plan discussed in the company’s Form 10-K for the year ended Dec. 31, 2007.
CIB Marine previously announced that it had entered into a definitive agreement to sell the branches, deposits and most of the loans of Citrus Bank N.A. to a third party.
John Hickey Jr., president and chief executive officer of CIB Marine, said, "The management and board of CIB Marine continue to execute on the capital plan in an effort to provide the greatest value possible to the shareholders during these difficult times for CIB Marine and the financial service industry in general. I would like to emphasize to our customers and employees that CIB, Marine Bank and Citrus Bank exceed the regulatory requirements for well-capitalized financial institutions."
Madison’s Anchor Bancorp posts lower earnings for 2Q
Anchor Bancorp, the parent company for Madison-based Anchor Bank, recently posted second quarter net earnings of $5.5 million, down from $9.9 million in the second quarter of 2007.
The bank also posted $9.4 million in loan loss provisions, up from $2.3 million in the second quarter of 2007. The bank’s loan loss increase was largely due to the deteriorating residential real estate market, said Douglas Timmerman, chairman and CEO.
"While net interest income was up, this was offset by our decision to increase our provision for loan losses, which we felt (was) sensible given the continued sluggish performance of the real estate market and the increase of our non-performing assets," Timmerman said.
Anchor Bank is the largest creditor for First Place on the River, a 151-unit condo project in Milwaukee’s Third Ward that filed for receivership earlier this year. The bank has provided a $48 million mortgage for the project.
