Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Merger or Acquisition (June 2016)
14 slides from Canadian Imperial Bank Of Commerce's merger presentation, Jun 29, 2016
Slide 1: CIBC to acquire PrivateBancorp, Inc.
CIBC to acquire PrivateBancorp, Inc. Enhances CIBC’s U.S. presence while accelerating our growth & client focused strategy June 29, 2016
Slide 2: Forward-Looking Statements
1 Forward-Looking Statements From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communica
Slide 3: Victor Dodig
Victor Dodig CIBC President & CEO
Slide 4: Transaction rationale
3 Transaction rationale PrivateBancorp • Deep expertise and strong competitive positions is a high quality • Consistent record of superior loan growth and thoughtful approach to credit commercial and • Strong and proven management team private banking • Robust financial returns, with meaningful upsi
Slide 5: Transaction structure
4 Transaction structure • Total purchase price of USD$3.8B, or approximately CAD$4.9B • Implied value of USD$47.00 per PrivateBancorp common share, consisting of US$18.80 Consideration cash and 0.3657 of a CIBC common share for each share of PrivateBancorp stock - 24% premium over PrivateBancorp’s v
Slide 6: PrivateBancorp is a high quality Chicago-based commercial & private bank with a national U.S. presence
PrivateBancorp is a high quality Chicago-based commercial 5 & private bank with a national U.S. presence Franchise highlights1 (USD) (3/31/16) • Strong management team with extensive U.S. banking experience Founded 1989 − Long track record of performance Total commercial offices / branches 35 / 24 −
Slide 7: Chicago is one of the most attractive banking markets in the U.S.
Chicago is one of the most attractive banking markets in 6 the U.S. Chicago overview Key statistics (2016, USD) U.S. position • Diversified economy with strength in trade, Population (MM) 9.6 Rank = 3 rd manufacturing, and financial/professional rd services GDP (2014 $B) $ 610.6 Rank = 3 • More than
Slide 8: PrivateBancorp has delivered consistent growth and strong returns
PrivateBancorp has delivered consistent growth and 7 strong returns NIAT to Common Stockholders (USD$MM) Diluted, Cash EPS (USD) $2.32 $185 $1.94 $153 $123 $1.57 $50 $0.62 2013 2014 2015 2016Q1 2013 2014 2015 2016Q1 Efficiency Ratio (%) Return on Average Assets (%) 56 54 51 52 1.13 1.15 1.04 0.90 20
Slide 9: PrivateBancorp has delivered strong loan growth supported by a diversified deposit base
PrivateBancorp has delivered strong loan growth 8 supported by a diversified deposit base Commercial and Industrial (C&I) and Non-C&I loan growth (2012Q1-2016Q1) Deposit composition (3/31/16) Term Deposits PrivateBancorp Industry >USD$100k Term Deposits 10% 12.3% <USD$100k 5% Demand 8.8% Deposits 40
Slide 10: PrivateBancorp has a diversified loan portfolio with strong credit performance
PrivateBancorp has a diversified loan portfolio with 9 strong credit performance Total loan portfolio: USD$13.5B (3/31/16) C&I loan portfolio: USD$8.6B (3/31/16) Manufacturing 21% Healthcare 20% Construction Consumer 4% Finance and insurance 16% 6% Wholesale trade 9% Professional, scientific & techn
Slide 11: PrivateBancorp's asset sensitive balance sheet provides meaningful upside in rising rate environment
PrivateBancorp’s asset sensitive balance sheet provides 10 meaningful upside in rising rate environment Loan portfolio pricing (3/31/16) 12-month change in net interest income (USD$MM)¹ Fixed rate loans 4% Variable rate 96% +68 +37 • USD$13.5B loan portfolio: +19 ─ 70% tied to 1-month LIBOR • USD$3.
Slide 12: Key transaction assumptions and financial metrics
11 Key transaction assumptions and financial metrics • Since 2013, PrivateBancorp has delivered annualized revenue1 and NIAT1 growth of 10% and 23%, respectively, and improved its efficiency ratio from 56% to just over 50% • Limited revenue synergies from the cross-selling of wealth management and c
Slide 13: Larry Richman
Larry Richman PrivateBancorp President and CEO
Slide 14: PrivateBancorp advances CIBC's client-focused strategy and provides a platform for long term growth
PrivateBancorp advances CIBC’s client-focused strategy 13 and provides a platform for long term growth High quality U.S. business banking Ability to service cross-border and Robust, full-service private banking platform U.S. clients across all businesses & wealth Management capabilities PrivateBanco