CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (April 2018)
30 slides from CIB Marine Bancshares's shareholder meeting presentation, Apr 26, 2018
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING April 26, 2018 Previous Close (April 25, 2018) S&P 500 Index INX $2,639.40 Dow Jones Industrial Average Index INDU $24,083.83 KBW Regional Banking Total Return Index KRXTR $179.92 CIB Marine Bancshares, Inc. CIBH $1.46 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 Horwath LLP, Godfrey & Kahn, Computershare
CROWE HORWATH LLP • Mark Taylor & 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 Mark Elste Mark Henderson Charles Mires Ronald Rhoades Elected directors will serve until 2020. 7
Slide 8: Proposal II: Second Amendment to Articles of Incorporation
PROPOSAL II: SECOND AMENDMENT TO ARTICLES OF INCORPORATION Vote Results* For: 96.27% Against: 2.55% Abstain: 1.18% *Voting percentages are as of 5:00PM (Central), April 25, 2018, and do not include votes cast subsequently or at the Annual Meeting of Shareholders. Final voting results will be publish
Slide 9: Proposal III: Third Amendment to Articles of Incorporation
PROPOSAL III: THIRD AMENDMENT TO ARTICLES OF INCORPORATION Vote Results* For: 74.94% Against: 24.02% Abstain: 1.04% *Voting percentages are as of 5:00PM (Central), April 25, 2018, and do not include votes cast subsequently or at the Annual Meeting of Shareholders. Final voting results will be publis
Slide 10: Proposal IV: Ratification of Independent Registered Public Accounting Firm
PROPOSAL IV: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Crowe Horwath LLP Vote Results* For: 98.51% Against: 1.16% Abstain: 0.33% *Voting percentages are as of 5:00PM (Central), April 25, 2018, and do not include votes cast subsequently or at the Annual Meeting of Shareholders. Fi
Slide 11: Management's Presentation to Shareholders
MANAGEMENT’S PRESENTATION TO SHAREHOLDERS J. Brian Chaffin President & CEO 11
Slide 12: 2017 Results vs. Stated Outlook Range
2017 RESULTS VS. STATED OUTLOOK RANGE 2017 Actual Range Pre-Tax Earnings $4.3 million $3.1 to $4.5 million Total Assets $662 million $635 to $670 million Pre-Tax Return on Average Assets 0.66% 0.50% to 0.70% Pre-Tax EPS - Basic $0.24 $0.17 to $0.25 - Diluted $0.12 $0.09 to $0.13 12
Slide 13: Non-Core Banking Activity
NON-CORE BANKING ACTIVITY 2017 2016 Net ($ in millions) Pre-Tax Earnings $4.3 $4.1 $0.2 NLSR* $0.0 $1.5 $(1.5) Gain(Loss) on OREO $(0.1) $0.9 $(1.0) Less SubTotal $(0.1) $2.4 $(2.5) Adj. Pre-Tax Earnings $4.4 $1.7 $2.7 *Net Litigation Settlement Recovery 13
Slide 14: Deferred Tax Assets
DEFERRED TAX ASSETS 2017 ($ in millions) Net Deferred Tax Assets $22.6 Change in Valuation Allowance $24.4 Income Tax Expense $1.7 14
Slide 15: Revenue Growth
REVENUE GROWTH Banking Revenues (000s) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 YTD 2013 YTD 2014 YTD 2015 YTD 2016 YTD 2017 Net interest income Deposit service charges Other service fees Mortgage banking revenue, net Other income SBA Gain on Sale 15
Slide 16: 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 YTD YTD YTD YTD YTD Illinois Wisconsin Indiana Other 2013 2014 2015 2016 2017 C&I
Slide 17: Mortgage Banking Volume & Mix
MORTGAGE BANKING Volume & Mix Mortgage Loan Mix and Volume 400,000,000 Refinance Purchase 300,000,000 200,000,000 100,000,000 0 2014 2015 2016 2017 17
Slide 18: Government Guaranteed Lending
GOVERNMENT GUARANTEED LENDING SBA Loan Activity SBA 7(a) Loan Activity (000s) SBA 7(a) Loan Interest Income $16,000 $1,109 $1,200 $200,000 Gains on Sale of Loans Sold $12,000 $900 $150,000 Loan Originations $8,000 $600 $100,000 $4,000 $300 $50,000 $68 $0 $0 $0 YTD 2016 YTD 2017 YTD 2016 YTD 2017 Loa
Slide 19: SBA Repo Activity
TRUST DEPARTMENT SBA Repo Activity SBA Repo Activity (000s) SBA Reverse Repo Balances at End of Month $279 35,000,000 $18,000 $300 30,000,000 $16,000 $260 25,000,000 SBA Repo Activity SBA Interest Income $14,000 $220 20,000,000 $147 $12,000 $180 15,000,000 $10,000 $140 10,000,000 $8,000 $100 5,000,0
Slide 20: Credit Administration
CREDIT ADMINISTRATION Non-Accrual Loans / Total Loans Non-Performing Assets / Total Assets 4.48% 4.00% 5.00% 2.80% 4.00% 2.94% 3.00% 2.25% 3.00% 2.00% 1.67% 1.26% 1.16% 1.06% 2.00% 1.13% 0.70% 0.69% 1.00% 1.00% 0.00% 0.00% 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 20
Slide 21: Credit Administration
CREDIT ADMINISTRATION Net Charge Offs to Average Loans Loan Classifications / Total Loans 0.95% 6.00% 0.85% 5.00% 0.60% 4.00% 0.31% 0.35% 3.00% 0.02% 2.00% 0.10% 1.00% -0.02% -0.15% -0.11% 0.00% -0.40% 2012 2013 2014 2015 2016 2017 YTD YTD YTD YTD YTD Special Mention Substandard-Accrual 2013 2014 20
Slide 22: Serving Our Communities
SERVING OUR COMMUNITIES Financial Education Services Volunteer Service Hours & Donations Danville, IL and The Salvation Army Indianapolis, IN Financial literacy education including budget and credit Big Brothers/Big Sisters Indianapolis, IN coaching Ronald McDonald House Milwaukee, WI The County Cou
Slide 23: First Quarter 2018
FIRST QUARTER 2018 First Quarter 2018 2017 Pre-Tax Net Income $1.0 million $0.9 million Pre-Tax ROAA(1) 0.62% 0.56% Net Interest Margin 3.20% 3.02% Non-Interest Income $1.9 million $1.9 million Non-Performing Asset Ratio 0.85% 1.77% (1) ROAA is return on average assets. 23
Slide 24: Earnings Outlook
EARNINGS OUTLOOK 2016 2017 2017 2018 Actual Actual Outlook Outlook ($ millions) Pre-Tax Earnings $4.1 $4.3 $3.1 - $4.5 $3.5 - $5.2 Key Elements • Moderating loan growth near-term due to competition on credit terms. • Continue hiring of revenue producing professionals in traditional banking space. •
Slide 25: Chairman's Presentation
CHAIRMAN’S PRESENTATION Mark A. Elste 25
Slide 26: 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 12/31/2012 12/31/17 Period (1) YTD (1) (2) (2) (2) 12/31/2009 $0.11 862,997 $0.15 12/31/2010
Slide 27: Days Traded and Traded Volume on OTC Markets
Days Traded on OTC Markets 250 Days Traded 200 Linear (Days Traded) 150 100 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CIBH Traded Volume on OTC Markets 3,000,000 2,000,000 1,000,000 0 2014 2015 2016 2017 27
Slide 28: Shareholders' Questions & Comments
SHAREHOLDERS’ QUESTIONS & COMMENTS 28
Slide 29: Director & Management Stock Ownership
DIRECTOR & MANAGEMENT STOCK OWNERSHIP Shares Held % of Outstanding Directors and Executive Management: 1,164,382 6.41% Directors and all management*: 1,632,205 8.98% as of 03/31/18 * Includes restricted stock and stock owned outright, but may not include shares owned by management that are held in n
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