CIB Marine emerges from bankruptcy with profits
CIB Marine Bancshares Inc., the Pewaukee-based holding company that operates Marine Bank, reported 2009 net income of $13.7 million for the year after recording an extraordinary gain of $54.5 million resulting from the successful completion of a pre-packaged plan of bankruptcy reorganization.
"Completing the reorganization is significant and positive news for the company and our shareholders," said John Hickey Jr., chairman and chief executive officer of CIB Marine Bancshares Inc. "We have removed one of the significant hurdles that the company faced. We have eliminated the debt related to the trust preferred securities, as well as approximately $8.9 million of annual interest expense in future years. Capital ratios have been significantly improved and all of this was accomplished while preserving the rights of our common shareholders."
Although the 2009 financial results for CIB Marine Bancshares show the first annual positive net income for the company since 2002, the company continued to sustain operating losses in 2009 of $40.8 million before extraordinary items, largely due to the adverse affect that economic and real estate market conditions had on asset quality.
"With the reorganization behind us, we will continue to work to improve asset quality, increase operating efficiencies, improve our core banking business and maintain adequate capital levels. We believe we are on the right path to improved performance going forward," Hickey said.