BROOKFIELD, Wis. - CIB Marine Bancshares, Inc. (OTCQX: CIBH) has announced the completion of a significant financial transaction with the full and final redemption of all its preferred stock, amounting to $13.4 million. The transaction took place today, with the company transferring the required funds to Computershare Trust Company, N.A., its redemption agent, to repurchase the shares at $825 each.
The President & CEO of CIB Marine, Brian Chaffin, remarked on the milestone, stating, "This is an important accomplishment for the Company." He highlighted the dual benefits of providing liquidity to preferred shareholders and creating value for common shareholders, as well as opening up strategic opportunities for the company.
Preferred shareholders who have not yet tendered their shares for redemption have been urged to do so promptly. CIB Marine has provided contact information for Computershare for questions related to the redemption process and has made available a Shareholder Relations Manager for additional inquiries.
CIB Marine Bancshares, Inc. is the parent company of CIBM Bank, which operates nine banking offices and employs mortgage loan officers in ten states. The company has directed stakeholders to its website for more information, including access to shareholder letters and financial reports.
The press release also contained forward-looking statements regarding the company's future performance and potential uncertainties affecting its business environment. CIB Marine emphasized that these statements are subject to risks and uncertainties that could cause actual results to differ from those projected.
This financial move comes as part of CIB Marine's broader strategy to optimize its capital structure and enhance shareholder value. The information regarding this redemption is based on a press release statement from the company.
In other recent news, CIB Marine Bancshares, Inc., the parent organization of CIBM Bank, has announced the redemption of all its outstanding preferred stock. Effective October 31, 2024, the company will redeem approximately 14,633 Series A Preferred shares and 1,610 Series B Preferred shares at a price of $825 per share. This price is below the balance sheet carrying value and the liquidation preference value, which are $850 and $1,000 per share, respectively. The $13.4 million required for the redemption will be sourced from cash on hand following distributions from CIBM Bank and CIB Marine Capital, LLC, as well as a portion of the $10 million subordinated debt offering completed in early 2022. J. Brian Chaffin, President and CEO of CIB Marine, stated that the redemption will increase liquidity for the remaining preferred shares and benefit common shareholders by eliminating the potentially dilutive convertible Series B shares. Mark Elste, Chairman of the Board of Directors, also commented on the redemption, stating that it simplifies the company's capital structure to only common stock with full voting rights and opens up opportunities for building shareholder value. These are the latest developments in the company's operations.
InvestingPro Insights
CIB Marine Bancshares, Inc.'s (OTCQX: CIBH) recent move to redeem all of its preferred stock aligns with several key financial metrics and trends highlighted by InvestingPro. The company's market capitalization stands at $39.45 million, reflecting its position in the regional banking sector.
Notably, CIB Marine has demonstrated strong financial performance, with a revenue of $34.08 million in the last twelve months as of Q3 2023, representing a 9.23% growth. This growth trajectory is further emphasized by a 15.33% quarterly revenue increase in Q3 2023. The company's profitability is underscored by its adjusted P/E ratio of 9.24, suggesting a relatively attractive valuation compared to earnings.
InvestingPro Tips reveal that CIB Marine has been profitable over the last twelve months, which supports the company's ability to execute significant financial transactions like the preferred stock redemption. Additionally, the stock has shown a strong return over the last three months, with InvestingPro data indicating a remarkable 53.59% price total return over this period. This positive momentum is further reflected in the stock trading near its 52-week high, currently at 95.76% of that peak.
These insights suggest that CIB Marine's decision to redeem its preferred stock comes from a position of financial strength and may indeed create value for common shareholders as mentioned by CEO Brian Chaffin. The company's solid revenue growth and profitability provide a foundation for this strategic move.
For investors seeking a deeper understanding of CIB Marine's financial health and future prospects, InvestingPro offers 10 additional tips, providing a comprehensive analysis to inform investment decisions.
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