CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (April 2024)
44 slides from CIB Marine Bancshares's shareholder meeting presentation, Apr 25, 2024
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting April 25, 2024 1:00pm Central Previous Close (April 24, 2024) S&P 500 Index INX $5,071.63 Dow Jones Industrial Average Index INDU $38,460.92 KBW Regional Banking Total Return Index KRXTR $187.38 CIB Marine Bancshares, Inc. CIBH $18.55 Source: Bloomberg L.P. (Financial info
Slide 2: Call to Order
Call to Order Mark A Elste Chairman of the Board of Directors
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 cre
Slide 4: Meeting Organization
Meeting Organization Official Business o Proposal 1: Election of Directors o Proposal 2: Ratification of Independent Public Accounting Firm o Adjournment ¢ Management’s Presentation to Shareholders ¢ Chairman’s Presentation to Shareholders Shareholder Questions
Slide 5: In Memoriam
In Memoriam Gary L. Longman 1948 - 2023
Slide 6: 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 Mark A. Elste Chairman of the Boards of CIB Marine Bancshares, Inc. and CIBM Bank Chief Inform
Slide 7: Board Committee Leadership
Board Committee Leadership Audit Chair: JoAnn Cotter ViceChair: Mark Henderson New Business Chair: Charles Mires ViceChairs: Gina Cocking & JoAnn Cotter - wa Nominating mi Investment Advisory Chair: Ronald Rhoades Chair: Mark Elste
Slide 8: Advisors
Advisors Crowe LLP Mike Berti & Zach Lambert Godfrey & Kahn Patrick Murphy Computershare Shawn Sharp
Slide 9: Executive Management
Executive Management J. Brian Chaffin Patrick J. Straka Daniel J. Rasmussen Scott C. Winkel Lee W. Abner Frank Binetti Michelle Bragstad Dawn M. DeRidder Gary A. Maughan James P. Mullaney Mark W. Wilmington President & CEO of CIB Marine Bancshares & CIBM Bank Chief Financial Officer of CIB Marine Ba
Slide 10: Proposal 1: Election of Directors
Proposal 1: Election of Directors Nominated Directors Elected to serve until 2026. Elected to serve until 2027. Mark A. Elste Mark D. Henderson CharlesD. Mires Ronald E. Rhoades
Slide 11: Proposal 2: Ratification of Independent Registered Public Accounting Firm
Proposal 2: Ratification of Independent Registered Public Accounting Firm Crowe LLP
Slide 12: Meeting Adjourned
Meeting Adjourned Any shareholders wishing to vote via phone or internet must submit votes at this time.
Slide 13: Management's Presentation to Shareholders
Management's Presentation to Shareholders J Brian Chaffin President & CEO
Slide 14: Select Earnings Variance
Select Earnings Variance (dollars in thousands) 2023 2022 Variance Description Net Interest Income $21,455 $23,915 ($2,460) Higher cost of funds Provision for Loan Loss ($92) ($893) $801 Improved economic forecasts Non-Interest Income $8,900 $5,469 $3,431 Net Mortgage Banking Revenue $6,025 $4,421 $
Slide 15: 2023 Key Financial Highlights
2023 Key Financial Highlights (dollars in 000s) FY 2023 FY 2022 Net Income $880 $3,726 ROAA (2) 0.11% 0.49% Net Interest Income $21,455 $23,915 Net Interest Margin 2.72% 3.27% Provision for (Reversal of) Loan Losses ($92) ($893) Non-Interest Income $8,900 $5,469 Non-Accrual Loans/Loans 0.50% 0.16% N
Slide 16: Revenue Trends
Revenue Trends PRIMARY BANKING REVENUES (000s) 2019 2020 2021 2022 2025 Q1'24 @ Net interest income m@ Deposit service charges m Other service fees m Mortgage banking revenue, net | Other income = SBA 7(a) gains on sale $45,000 $30,000 $15,000 So
Slide 17: Select Segment Income & Efficiency
Select Segment Income & Efficiency Mortgage Mortgage Other (dollars in millions) Total Banking Banking Other Total Banking Banking NA 2019 $2.5 $1.9 $1.2 ($0.6) 2019 89% 86% 88% - 2020 $10.9 $3.6 $8.1 ($0.8) 2020 72% 76% 65% - 2021 $9.2 $6.5 $3.8 ($1.1) 2021 79% 77% 75% - 2022 $5.0 $7.2 ($1.2) ($1.0
Slide 18: Select Segment Level Revenue Components
Select Segment Level Revenue Components Net Interest Income Non-Interest Income Mortgage Mortgage (dollars in millions) Total Banking Banking Other (dollars in millions) Total Banking Banking Other 2019 $19.3 $19.0 $0.3 $0.0 2019 $10.2 $0.6 $9.6 $0.0 2020 $22.2 $20.9 $1.3 $0.0 2020 $21.8 $0.3 $21.5
Slide 19: Mortgage Banking
Mortgage Banking CIBM Mortgage CIBM Mortgage Loan Originations (000s) Net Income (000s) $600,000 $7,000 $5,000 $300,000 ; $3,000 L $1,000 $0 i —_— ——— 2019 2020 2021 2022 2023 QI124 -$1,000 mPurchase money mRefinance 2019 2020 2021 2022 2023 = QT'24
Slide 20: Commercial Loan Originations
Commercial Loan Originations $150,000,000 300% 200% $75,000,000 100% Te) | | 0% 2019 2020 2021 2022 2023 QN24 mg Originations —e—Actual to Budget
Slide 21: Loan Portfolio Segments & Geographic Distribution
Loan Portfolio Segments & Geographic Distribution LOAN GEOGRAPHIC DISTRIBUTION (000s) LOAN PORTFOLIO (000s) $300,000 $600,000 $200,000 $300,000 $100,000 = So ———— Xe) Illinois = Wisconsin — Indiana Other 2019 2020 2021 2022 2023 QI124 = Commercial & Industrial = Commercial Real Estate m Commercial &
Slide 22: Government Guaranteed Lending
Government Guaranteed Lending SBA 7(A) LOANS AND GAINS ON SALE (000s) SBA LOANS BY TYPE (000s) $60,000 $70,000 $40,000 $1,024 $35,000 $20,000 EH $157 sisi. $202 So) — — | Slr $ fe) 2019 2020 2021 2022 2023 QT24 2019 2020 2021 2022 2023 QI24 mag SBA 7(a) Loans Sold . imi SBA PPP Loans Originated = SB
Slide 23: Retail Division
Retail Division DEPOSITS BY MARKET (000s) Deposits by Type (000s) $400,000 Time Deposits $800,000 m Savings ™ Checking _ - I ; : : so a Se) Illinois —§ Wisconsin Indiana Other 2019 2020 2021 2022 2023 QI1'24 Branches: 6 2 1 . m Time Deposits *Other includes parent and non-bank subsidiary, brokered,
Slide 24: Net Interest Income & Margin
Net Interest Income & Margin NET INTEREST INCOME (000s) NET INTEREST MARGIN m9 ou N ( o ee) N Mm a = 7 Ny) N + O N O UU} > a) iy uy “I Uy $19,3 © oO + Uy 2019 2020 2021 2022 2025 QI124 2019 2020 2021 2022 2025 QI'24 Mg Net interest margin e===Yield on earning assets ===Cost of interest bearing liabi
Slide 25: Credit Administration
Credit Administration NET CHARGE OFFS TO AVERAGE LOANS LOAN CLASSIFICATION/T ‘OTAL LOANS 4% 0.15% = 03% 2% -0.08% -0.08% 0% 2019 2020 2021 2022 2023 Ql24 2019 2020 2021 2022 2023 QI24 m Special Mention m= Substandard = Doubtful
Slide 26: Credit Administration
Credit Administration NoNAccRUAL LOANS/TOTAL LOANS NoNPERFORMING ASSETS/TOTAL ASSETS 1.09% 135% 0.90% 0.89% 0.50% 048% 0.54% 0.23% - 014% 0.16% m= 21% z 20% 2019 2020 2021 2022 2023 Q1N24 2019 2020 2021 2022 2023 Q124
Slide 27: Staffing Cost & Efficiency
Staffing Cost & Efficiency COMPENSATION EXPENSE (000s) $30,000 “| ' i . $0 = 2019 2020 2021 2022 2023 QI1'24 mCIBM Non-Mortgage Compensation ms CIBM Mortgage Compensation 2023 2022 2021 2020 2019 Average personnel expense per employee (5000s) CIBM Bank () $96.28 $100.59 $103.31 $89.91 $88.47 Custom
Slide 28: 1st Quarter 2024 Highlights
1t Quarter 2024 Highlights (dollars in 000s) Qi 2024") Qi 2023) FY 2023 FY 2022 Net Income $178 $228 $880 $3,726 ROAA (2) 0.08% 0.12% 0.11% 0.49% Net Interest Income $4,961 $5,871 $21,455 $23,915 Net Interest Margin 2.29% 3.22% 2.72% 3.27% Provision for (Reversal of) Loan Losses'?) ($28) $159 ($92)
Slide 29: Uninsured Deposits & Unrealized Securities Loss
Uninsured Deposits & Unrealized Securities Loss Q1’24 2023 2022 Uninsured Deposits/Total Deposits 20% 23% 29% envealized Gain (Loss) on AFS Securities, net (in ($5.8) ($5.5) ($6.8) Unrealized Gain (Loss) on AFS Securities/ AFS Securities CIBM Bank (6.7%) (5.5%) (7.1%) Custom local peer median Not av
Slide 30: Redemption Plan Key Dates
Redemption Plan Key Dates As of 03/31/24 SeriesA SeriesB") Total Original Shares 14,633. 1,610 16,243 60,000 Through October 2025: ($sin millions) * Redemption price: $825/share. Liquidation Preference $14.6 $1.6 $16.2 $60.0 Carry Value $12.4 $1.4 $13.8 $51.0 * After the initial $18 million redempti
Slide 31: Deferred Tax Asset (DTA)
Deferred Tax Asset (DTA) (dollars in 000s, except per share data) 2023 2022 Last 7 Yrs Current tax provision (excluding other changes in the valuation allowance) $530 $1,287 910,862 Net DTA () $14,753 $16,273 $22.6 (2) Net DTA per share of common stock $11.05 $12.43/share °18.68/share (2) (1) | Net
Slide 32: 2023 Results & 2024 Guidance
2023 Results & 2024 Guidance ds lee tiles. wacvs sos 2023 Actual 2023 Guidance 2024 Guidance Net Income $0.9 $2.2 - $5.3 $1.9 - $2.7 Total Assets $899 $821 - $852 $811 - $897 ROAA 0.11% 0.28% -0.65% 0.22% - 0.30% EPS - Basic $0.66 $1.64 - $4.03 $1.40 - $2.00 - Diluted $0.49 $1.20 - $2.95 $1.05 - $1.
Slide 33: Chairman's Presentation to Shareholders
Chairman’s Presentation to Shareholders Mark A Elste Chairman of the Board of Directors
Slide 34: Preferred Redemption History & Forecast
Preferred Redemption History & Forecast TOTAL PREFERRED SHARES DISPOSITION (through March 31, 2024) Redeemed 2023 0% Remaining Outstanding 27% Redeemed 2022 10% Redeemed 2021 36% Redeemed 2018 23% Redeemed Redeemed 2020 2019 0% 4% (Dollars in 000s, Liquidation Carry Redemption TBV except per share d
Slide 35: Shareholder Questions
Slide 36: Stock Ownership
Stock Ownership Director and Executive Officer Stock Ownership") Shares (2) % of Outstanding Mark Elste, Chair 23,200 1.74% |Gina Cocking, Director 2,562 0.19% JoAnn Cotter, Director 1,687 0.13% Mark Henderson, Director 3,113 0.23% IRhonda Hopps, Director 589 0.04% Charles Mires, Director (3) 27,197
Slide 37: Director Compensation
Director Compensation Non-Employee Chair and Other Director Compensation for 2023 ') Mark Elste, Chair $116,000 $20,010 so so 0) $136,010 JoAnn Cotter $34,850 $10,020 so so 0) $44,870 Charles Mires $34,700 $10,020 $o so $o $44,720 Gary Longman $33,200 $10,020 so so so $43,220 Mark Henderson $29,050
Slide 38: Management Compensation
Management Compensation Executive (Reg O) Officer Compensation for 2023 (1) J Brian Chaffin 2023 $274,507 $21,961 $42,000 so $25,113 $363,581 President & Chief Executive Officer 2022 $265,995 $53,199 $60,037 0) $51,944 $431,175 2021 $258,750 $106,087 $60,015 $45,565 $47,656 $519,072 Patrick Straka 2
Slide 39: Management Compensation - Survey Information
Management Compensation - Survey Information Executive Pay Survey Information (from year 2022 information reported) Full-Time Base Salary Bonus Pay 25th 50th 75th Bonus % of Percentile Percentile Percentile Average Bonus Wavg Base Chief Executive Officer & President $500 million to $1 billion total
Slide 40: Compensation & Stock Ownership Disclosure Footnote
Compensation & Stock Ownership Disclosure Footnote CIB Marine is not an SEC reporting company and is not subject to the SEC’s Schedule 14A disclosure requirements related to director and executive officer compensation and beneficial stock ownership applicable to public reporting companies. As such,
Slide 41: CIBH Stock Performance
CIBH Stock Performance Traded Stock Ending Price per Volume Volume Weighted Average Annual Total Return Since Share!) (current yr annualized) Average Price YTD 12/31/09) 12/31/15?) 12/31/2002) 12/31/2009 $1.65 57,531 $2.31 12/31/2010 $1.28 125,221 $3.51 -23% 12/31/2011 $2.70 149,595 $1.79 28% 12/31/
Slide 42: CIBH Stock Performance
CIBH Stock Performance $100 Investment in CIBH and KRXTR e CIBH =——= 10 per. mov. avg. (CIBH) @ KRXTR =——= 10 per. mov. avg. (KRXTR) 12/31/2015 - 3/31/2024 $600 $300 Si6) f T T T T T T T T 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 $300 12/31/2020 to 3/31/2024 s
Slide 43: Tangible Book Value
Tangible Book Value 2022 (2) 2021 2020 2019 Tangible Book Value S$ 52.59 $53.35 $53.19 $56.44 $52.28 $44.86 Tangible Book Value § 41.63 $42.30 $40.75 $45.03 $39.42 $28.71 Excluding DTA Tangible Book Value Post Pref. Series B Conversion $ 40.70 $41.14 $40.84 $43.16 $32.52 S 27.84 (1) The change in 20
Slide 44: CIB Marine Bancshares Inc
J)\\\ cib marine YA BANCSHARES INC
CIB Marine Bancshares — Shareholder Meeting (April 2024) on 6ix