CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (April 2019)
34 slides from CIB Marine Bancshares's shareholder meeting presentation, Apr 25, 2019
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING April 25, 2019 Previous Close (April 24, 2019) S&P 500 Index INX $2,927.25 Dow Jones Industrial Average Index INDU $26,597.05 KBW Regional Banking Total Return Index KRXTR $165.76 CIB Marine Bancshares, Inc. CIBH $1.56 Source: Bloomberg L.P.
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 Charles E. Baker Retired Partner of Ernst & Young, LLP Willard Bunn III Managing Director of Colonnade Advisors, LLC President & CEO of J. Brian Chaffin CIB Marine Bancshares & CIBM Bank Chairman of the Boards of Mark A. Elste CIB Marine Bancshares, Inc. and CIBM Bank Chief Inform
Slide 5: Crowe LLP, Godfrey & Kahn, Computershare
CROWE LLP • Brian Sterwald GODFREY & KAHN • Patrick Murphy COMPUTERSHARE • Andrew Waford 5
Slide 6: 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 Credit Officer of Paul C. Melnick CIB Marine Bancshares & CIBM Bank Chief Administrative Officer & General Counsel of D
Slide 7: Proposal I: Election of Directors
PROPOSAL I: ELECTION OF DIRECTORS Nominated Directors Charles Baker J. Brian Chaffin John Hickey, Jr. Elected directors will serve until 2022. 7
Slide 8: Proposal II: Ratification of Independent Registered Public Accounting Firm
PROPOSAL II: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Crowe LLP 8
Slide 9: Management's Presentation to Shareholders
MANAGEMENT’S PRESENTATION TO SHAREHOLDERS J. Brian Chaffin President & CEO 9
Slide 10: 2018 Results vs. Stated Outlook Range
2018 RESULTS VS. STATED OUTLOOK RANGE 2018 Actual Range Pre-Tax Earnings $4.5 million $3.5 - $5.2 million Total Assets $721 million $660 - $698 million Pre-Tax Return on Average Assets 0.66% 0.52% - 0.76% Pre-Tax EPS (1) - Basic $0.25 $0.19 - $0.28 - Diluted $0.13 $0.09 – $0.14 (1) Excluding gains t
Slide 11: Revenue Growth
REVENUE GROWTH Primary Banking Revenues (000s) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2014 2015 2016 2017 2018 Net interest income Deposit service charges Other service fees Mortgage banking revenue, net Other income SBA 7(a) Gains on Sale 11
Slide 12: Loan Portfolio Segments & Geographic Distribution
LOAN PORTFOLIO SEGMENTS & GEOGRAPHIC DISTRIBUTION Loan Portfolio Segment Growth (000s) Loan Geographic Distribution (000s) $500,000 $250,000 $400,000 $200,000 $300,000 $150,000 $200,000 $100,000 $100,000 $50,000 $0 $0 2014 2015 2016 2017 2018 C&I Comm Real Est C&I Comm Real Est Constr & Dev Resident
Slide 13: Commercial Loan Originations
COMMERCIAL LOAN ORIGINATIONS Originations Actual to Budget 126% $100,000,000 130% 114% $80,000,000 110% $60,000,000 $40,000,000 85% 90% $20,000,000 $0 70% 2016 2017 2018 13
Slide 14: Retail Division
RETAIL DIVISION Deposits by Banking Markets (000s) Retail Electronic Banking $400,000 $350,000 6,000 $300,000 $250,000 $200,000 3,000 $150,000 $100,000 $50,000 $0 0 2017 2018 Remote Consumer Deposit Mobile Banking Time Deposits Savings Checking Online Banking 14
Slide 15: Mortgage Banking Volume & Mix
MORTGAGE BANKING Volume & Mix Mortgage Originations (000s) $400,000 $300,000 $200,000 $100,000 $0 2014 2015 2016 2017 2018 Purchase Refinance 15
Slide 16: Government Guaranteed Lending
GOVERNMENT GUARANTEED LENDING SBA 7(a) Loan Activity (000s) $25,000 $2,000 $1,741 $1,800 $20,000 $1,600 $1,400 $1,109 $15,000 $1,200 $1,000 $10,000 $800 $600 $5,000 $400 $68 $200 $0 $0 2016 2017 2018 SBA 7(a) Loan Originations SBA 7(a) Gains on Sale 16
Slide 17: Trust & Investment
Ys cibmBANK TRUST & INVESTMENT
Slide 18: SBA 7(a) Repo Rates
SBA 7(A) REPO RATES Comparison to Other Products Product Rate Date Source SBA Repo: Fed Funds Rate Target (midpoint) 2.375% 12/19/18 Fed Spread to Fed Funds Rate Target 0.125% 3/27/19 CIBM Bank All-In Effective SBA Repo Rate (1) 2.500% 3/27/19 CIBM Bank Gov’t Guaranteed or Gov’t Assets: Avg Bank Mon
Slide 19: Credit Administration
CREDIT ADMINISTRATION Non-Accrual Loans / Total Loans Non-Performing Assets / Total Assets 3.00% 4.00% 2.94% 3.00% 2.25% 1.34% 2.00% 1.26% 1.67% 1.16% 1.45% 2.00% 1.13% 0.70% 0.69% 1.00% 1.00% 0.00% 0.00% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 19
Slide 20: Credit Administration
CREDIT ADMINISTRATION Net Charge Offs to Average Loans Loan Classification / Total Loans 1.00% 2.5% 0.75% 2.0% 0.31% 0.50% 1.5% 0.02% 0.25% 1.0% 0.00% -0.02% 0.5% -0.11% -0.25% -0.29% -0.50% 0.0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Special Mention Substandard-Accrual Substandard-NonAcc
Slide 21: Serving Our Communities
SERVING OUR COMMUNITIES Court Appointed Special Advocates (CASA) of the Tenth Judicial Circuit – Peoria, Illinois Judy Morris Memorial Kappa Alpha Theta CASA Community Award Recipient (2018) 21
Slide 22: Brand Unification
BRAND UNIFICATION mF ILLINOIS BANK CENTRAL
Slide 23: 23
23
Slide 24: First Quarter 2019
FIRST QUARTER 2019 Q1 2019(1) 2018 2017 Pre-Tax Net Income $0.9 million $4.5 million $4.3 million Pre-Tax ROAA(2) 0.49% 0.66% 0.66% Net Interest Income $4.8 million $19.8 million $19.4 million Non-Interest Income $1.4 million $9.4 million $8.7 million Non-Performing Asset Ratio 1.51% 1.45% 1.13% (1)
Slide 25: Earnings Outlook
EARNINGS OUTLOOK 2017 2018 2018 2019 Actual Actual Outlook Outlook ($ millions, except share data) Pre-Tax Income $4.3 $4.5 $3.5 - $5.2 $3.7 - $5.4 Total Assets $662 $721 $660 - $698 $700 - $730 Pre-Tax ROAA 0.66% 0.66% 0.52% - 0.76% 0.50% - 0.75% Pre-Tax Earnings per Share Basic $0.24 $0.25 $0.19 -
Slide 26: Chairman's Presentation
CHAIRMAN’S PRESENTATION Mark A. Elste 26
Slide 27: Stock Performance
STOCK PERFORMANCE Ending Volume Average Average Average Price Traded Weighted Annual Total Annual Total Annual Total per Stock Average Return Since Return Since Return since Share Volume Price YTD 12/31/2009 12/31/2013 12/31/16 Period (1) YTD (1) (2) (2) (2) 12/31/2009 $0.11 862,997 $0.15 12/31/2010
Slide 28: Days Traded on OTC Markets
Days Traded on OTC Markets 250 200 150 100 Days Traded 50 Linear (Days Traded) 0 2004 2006 2008 2010 2012 2014 2016 2018 CIBH Traded Volume on OTC Markets 3,000,000 2,000,000 1,000,000 0 2014 2015 2016 2017 2018 28
Slide 29: Tax Payment Estimates Offset by Tax Assets
TAX PAYMENT E STIMATES O FFSET BY TAX A SSETS (Dollars in thousands) Federal Taxes State Taxes $205 $210 $269 $1,549 $1,508 $950 2016 2017 2018 2016 2017 2018 Federal Taxes $1,549 $1,508 $950 State Taxes $205 $210 $269 Total Taxes $1,754 $1,718 $1,219 29
Slide 30: 2018 Preferred Stock Repurchase Activity
2018 P REFERRED S TOCK R EPURCHASE A CTIVITY Shares Paid Transaction Description Modified Dutch auction and directly negotiated with preferred shareholders; 8,743 $6.3 million transactions settled during the second and third quarters of 2018, respectively. Directly negotiated with preferred sharehol
Slide 31: 2019 Board Initiatives
2019 B OARD I NITIATIVES • Cybersecurity • Strategic Acquisitions • Board Quality & Diversity • Enhance Shareholder Value 31
Slide 32: Shareholders' Questions & Comments
SHAREHOLDERS’ QUESTIONS & COMMENTS 32
Slide 33: Director & Management Stock Ownership
DIRECTOR & MANAGEMENT STOCK OWNERSHIP Shares Held % of Outstanding Directors and Executive Management: 1,353,618 7.42% Directors and all management*: 1,905,469 10.44% as of 03/31/19 * Includes restricted stock and stock owned outright, but may not include shares owned by management that are held in
Slide 34: New Logo in 2019
NEW LOGO IN 2019 ZN \ cib marine BANCSHARES INC
CIB Marine Bancshares — Shareholder Meeting (April 2019) on 6ix