CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (April 2023)
37 slides from CIB Marine Bancshares's shareholder meeting presentation, Apr 27, 2023
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING April 27, 2023 Previous Close (April 26, 2023) S&P 500 Index INX $4,055.99 Dow Jones Industrial Average Index INDU $33,301.87 KBW Regional Banking Total Return Index KRXTR $156.33 CIB Marine Bancshares, Inc. CIBH $28.50 Source: Bloomberg L.P. This presentation has not been
Slide 2: Call to Order
CALL TO ORDER Mark A. Elste Chairman of the Board of Directors 2
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS CIB Marine has made statements during today’s presentation 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 crea
Slide 4: Board of Directors
BOARD OF DIRECTORS President & CEO of J. Brian Chaffin CIB Marine Bancshares & CIBM Bank Gina M. Cocking CEO & Managing Director of Colonnade Advisors, LLC JoAnn M. Cotter Retired partner of Wipfli LLP Chairman of the Boards of Mark A. Elste CIB Marine Bancshares, Inc. and CIBM Bank Chief Informatio
Slide 5: Board Committee Leadership
BOARD COMMITTEE LEADERSHIP Audit Trust Chairman: Gary Longman Chairman: Charles Mires Vice Chairman: Mark Henderson Compensation Nominating Chairman: Ron Rhoades Chairman: Ron Rhoades Vice Chair: JoAnn Cotter New Business Lines Investment Advisory Chairman: Gina Cocking Chairman: Mark Elste 5
Slide 6: Crowe LLP, Godfrey & Kahn, Computershare
CROWE LLP • Mike Berti & Zach Lambert GODFREY & KAHN • Patrick Murphy COMPUTERSHARE • Shawn Sharp 6
Slide 7: Executive Management Team
EXECUTIVE MANAGEMENT TEAM President & CEO of J. Brian Chaffin CIB Marine Bancshares & CIBM Bank Chief Financial Officer of Patrick J. Straka CIB Marine Bancshares & CIBM Bank Chief Administrative Officer & General Counsel of Daniel J. Rasmussen CIB Marine Bancshares & CIBM Bank Chief Credit Officer
Slide 8: Proposal I: Election of Directors
PROPOSAL I: ELECTION OF DIRECTORS Nominated Directors Gina M. Cocking Gary L. Longman Steven C. Palmitier Elected directors will serve until 2026. 8
Slide 9: Proposal II: Ratification of Independent Registered Public Accounting Firm
PROPOSAL II: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Crowe LLP 9
Slide 10: Meeting Adjourned
Meeting Adjourned All shareholders in attendance must submit their votes to the check-in table at this time. 10
Slide 11: Management's Presentation to Shareholders
MANAGEMENT’S PRESENTATION TO SHAREHOLDERS J. Brian Chaffin President & CEO Any year-to-date (YTD) information provided herein is as of March 31, 2023. All historical per-share stock values have been adjusted to reflect the September 2020 1-for-15 reverse stock split. 11
Slide 12: 2022 Key Financial Highlights
2022 KEY FINANCIAL HIGHLIGHTS (dollars in millions) FY 2022 FY 2021 Net Income $3.9 $7.2 ROAA(1) 0.49% 0.88% Net Interest Income $23.9 $23.3 Net Interest Margin 3.27% 3.22% Provision For (Reversal of) Loan Losses ($0.9) ($1.2) Non-Interest Income $5.5 $15.1 Non-Accrual Loans / Loans 0.16% 0.14% Non-
Slide 13: Select Earnings Variance
SELECT EARNINGS VARIANCE (dollars in thousands) 2022 2021 Variance Mortgage Division Net Income $(903) $2,745 $(3,648) PPP Fee Accrual $269 $1,043 $(774) Sub-Debt Interest $(419) $0 $(419) TOTAL: $(1,053) $3,788 $(4,841) 13
Slide 14: Revenue Trends
REVENUE TRENDS PRIMARY BANKING REVENUES (000s) $50,000 $25,000 $0 2018 2019 2020 2021 2022 2023 Q1 Net interest income Deposit service charges Other service fees Mortgage banking revenue, net Other income SBA 7(a) Gains on Sale 14
Slide 15: Select Segment Income and Efficiency
SELECT SEGMENT INCOME AND EFFICIENCY Income Efficiency (revenues / costs) (dollars in Mortgage (dollars in Mortgage Other millions) Total Banking Banking Other millions) Total Banking Banking NA 2018 $4.5 $5.4 $0.3 ($1.1) 2018 88% 81% 97% 2019 $2.5 $1.9 $1.2 ($0.6) 2019 89% 86% 88% 2020 $10.9 $3.6 $
Slide 16: Select Segment Level Revenue Components
SELECT SEGMENT LEVEL REVENUE COMPONENTS Net Interest Income Non-Interest Income (dollars in Mortgage (dollars in Mortgage millions) Total Banking Banking Other millions) Total Banking Banking Other 2018 $19.8 $19.5 $0.3 $0.0 2018 $9.4 $2.1 $7.3 $0.0 2019 $19.3 $19.0 $0.3 $0.0 2019 $10.2 $0.6 $9.6 $0
Slide 17: Mortgage Banking
MORTGAGE BANKING CIBM MORTGAGE CIBM MORTGAGE LOAN ORIGINATIONS (000s) NET INCOME (000s) $600,000 $6,000 $4,000 $300,000 $2,000 $0 $0 2018 2019 2020 2021 2022 2023 Q1 Purchase Money Refinance -$2,000 2018 2019 2020 2021 2022 2023 Q1 17
Slide 18: Commercial Loan Originations
COMMERCIAL LOAN ORIGINATIONS 300% 256% $100,000,000 166% 200% 136% 126% 118% 100% $50,000,000 100% $0 0% 2018 2019 2020 2021 2022 2023 Q1 Originations Actual to Budget Excluding PPP loans. 18
Slide 19: Loan Portfolio Segments & Geographic Distribution
LOAN PORTFOLIO SEGMENTS & GEOGRAPHIC DISTRIBUTION CIBM BANK LOAN PORTFOLIO (000s) LOAN GEOGRAPHIC DISTRIBUTION (000s) $300,000 $600,000 $200,000 $400,000 $100,000 $200,000 $0 $0 Illinois Wisconsin Indiana Other 2018 2019 2020 2021 2022 2023 Q1 Commercial & Industrial Commercial Real Estate Commercia
Slide 20: Government Guaranteed Lending
GOVERNMENT GUARANTEED LENDING SBA 7(A) LOANS (000s) $1,741 $60,000 $1,800 $1,024 $40,000 $1,200 $524 $20,000 $600 $271 $157 $151 $0 $0 2018 2019 2020 2021 2022 2023 Q1 SBA PPP Loans Originated SBA 7(a) Loans Sold SBA PPP Gross Fees Received SBA 7(a) Gains on Sale 20
Slide 21: Retail Division
RETAIL DIVISION CIBM BANK DEPOSITS BY MARKET (000s) CIBM BANK DEPOSITS (000s) $400,000 $600,000 Time Deposits Savings Checking $200,000 $300,000 $0 $0 Illinois Wisconsin Indiana Other 2018 2019 2020 2021 2022 2023 Branches: 7 2 1 * Time Deposits Savings Q1 * Other includes parent and non-bank subsid
Slide 22: Net Interest Income & Margin
NET INTEREST INCOME & MARGIN NET INTEREST INCOME (000s) NET INTEREST MARGIN 3.27% 3.23% 3.22% 3.11% 3.05% $23,915 2.91% $23,263 $20,000 $22,182 $19,781 $19,301 $10,000 $5,871 $0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Q1 Q1 Net Interest Margin Yield on Earning Assets Cost of Inte
Slide 23: Credit Administration
CREDIT ADMINISTRATION NET CHARGE OFFS TO AVERAGE LOANS LOAN CLASSIFICATION/TOTAL LOANS 0.50% 4.0% 0.15% 0.00% 2.0% -0.01% -0.02% -0.08% -0.08% -0.29% -0.50% 0.0% 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Q1 Q1 Special Mention Substandard-Accrual Substandard-NonAccrual Doubtful 23
Slide 24: Credit Administration
CREDIT ADMINISTRATION NONACCRUAL LOANS/TOTAL LOANS NONPERFORMING ASSETS/TOTAL ASSETS 1.50% 2.00% 1.34% 1.09% 1.45% 1.35% 1.00% 1.00% 0.50% 0.54% 0.23% 0.14% 0.16% 0.21% 0.20% 0.08% 0.14% 0.00% 0.00% 2018 2019 2020 2021 2022 2023 Q1 2018 2019 2020 2021 2022 2023 Q1 24
Slide 25: Subordinated Debt
SUBORDINATED DEBT $10 million issued February 18, 2022 • Rate: o First 5 years: 4.50% per annum interest o Remaining 5 years: quarterly floating rate equal to Three- Month Term SFOR + 275 bps • Qualifies as Tier 2 capital for Total Risk Based Capital (TRBC) 25
Slide 26: DTA (Deferred Tax Asset)
DTA (Deferred Tax Asset) 2022 2021 Last 6 Yrs (dollars in millions, except per share data) Current tax provision (excluding other $1.3 $2.5 $11.7 changes in the valuation allowance) Net DTA(1) $16.2 $14.7 $22.6 (2) Net DTA per Share of Common Stock $12.43/share $11.40/share $18.68/share (2) (1) Net
Slide 27: 1st Quarter 2023 Highlights
1ST QUARTER 2023 HIGHLIGHTS (dollars in millions) Q1 2023(1) Q1 2022(1) FY 2022 FY 2021 Net Income $0.2 $0.9 $3.9 $7.2 ROAA(2) 0.12% 0.48% 0.49% 0.88% Net Interest Income $5.9 $5.5 $23.9 $23.3 Net Interest Margin 3.23% 3.06% 3.27% 3.22% Provisions for (reversal of) $0.2 ($0.3) ($0.9) ($1.2) credit l
Slide 28: Uninsured Deposits & Unrealized Securities Loss
UNINSURED DEPOSITS & UNREALIZED SECURITIES L (as of March 31, 2023) OSS • CIBM Bank’s uninsured deposit balances are estimated to be no more than 25% of total deposit balances. • CIB Marine Bancshares, Inc. had $5.9 million in unrealized losses net of tax in its available for sale securities. The lo
Slide 29: 2022 Results & 2023 Guidance
2022 RESULTS & 2023 GUIDANCE (dollars in millions, except per share data) 2022 Actual 2022 Guidance 2023 Guidance (1) Net Income $3.9 $3.7 - $5.5 $2.2 - $5.3 Total Assets $753 $720 - $790 $821 - $852 ROAA 0.49% 0.51% - 0.72% 0.28% - 0.65 EPS(2) - Basic $2.97 $2.96 - $4.29 $1.64 - $4.03 - Diluted $2.
Slide 30: Chairman's Presentation to Shareholders
CHAIRMAN’S PRESENTATION TO SHAREHOLDERS Mark A. Elste Chairman of the Board of Directors 30
Slide 31: CIBH Stock Performance
CIBH STOCK PERFORMANCE Traded Stock Volume Weighted Ending Price per Volume Average Price Average Annual Total Return Since Period Share(1) (current yr annualized) YTD(1) 12/31/2009(2) 12/31/2015(2) 12/31/2020(2) 12/31/2009 $1.65 57,531 $2.31 12/31/2010 $1.28 125,221 $3.51 -23% 12/31/2011 $2.70 149,
Slide 32: CIBH Stock Performance
CIBH STOCK PERFORMANCE $100 Investment in CIBH and KRXTR 12/31/2015 - 03/31/2023 CIBH KRXTR 10 per. Mov. Avg. (CIBH) 10 per. Mov. Avg. (KRXTR) $600 $400 $200 $0 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 CIBH CIBH KRXTR KRXTR 5 per. Mov. Avg. (CIBH) 5 per. Mov. Avg. (CIB
Slide 33: Tangible Book Value
TANGIBLE BOOK VALUE 2023 2022 2021 2020 2019 2018 (YTD) (1) Tangible Book Value $53.28 $53.19 $56.44 $52.28 $44.86 $42.35 Tangible Book Value $40.70 $40.75 $45.03 $39.42 $28.71 $24.72 Excluding DTA Tangible Book Value $40.90 $40.84 $43.16 $32.52 $27.84 $25.68 Post Pref. Series B Conversion (1) The d
Slide 34: Preferred Redemption History & Forecast
PREFERRED REDEMPTION HISTORY & FORECAST TOTAL PREFERRED SHARES PRO-FORMA FULLY DILUTED DISPOSITION AND FORECAST COMMON STOCK INCLUSIVE OF (as of 03/31/23 and by agreement date) CONVERTED SERIES B PREFERRED SHARES Remaining Outstanding (After Forecast 2024 Forecast Redemption) Redemption 0% 24% 24% 2
Slide 35: Shareholders' Questions
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Slide 36: Director & Management Common Stock Ownership
DIRECTOR & MANAGEMENT COMMON STOCK OWNERSHIP 16.00% 14.31% 13.80% 12.46% 12.00% 10.44% 8.98% 9.45% 8.00% 9.78% 9.69% 8.42% 7.42% 6.41% 6.83% 4.00% 0.00% 03/31/18 03/31/19 03/31/20 06/30/21 03/31/22 03/31/23 Board & Exec Mgt Board & all management • Includes vested and unvested shares granted under t
Slide 37: CIB Marine Bancshares
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CIB Marine Bancshares — Shareholder Meeting (April 2023) on 6ix