CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (May 2016)
31 slides from CIB Marine Bancshares's shareholder meeting presentation, May 26, 2016
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING May 26, 26 2016 Previous Close (May 25, 2016) S&P 500 Index INX $2,090.54 Dow Jones Industrial Average Index INDU $17,851.51 KBW Regional i l Banking ki Totall Return Index d KRXTR $126 71 $126.71 CIB Marine Bancshares, Inc. CIBH $0.6115 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 1995. CIB Marine intends these forward-looking forward looking statements to be subject to
Slide 4: Board of Directors
BOARD OF DIRECTORS President P id t & CEO off J. Brian Chaffin CIB Marine Bancshares & CIBM Bank Retired President, CEO & Chairman of John P. Hickey, Jr. CIB Marine Bancshares, Bancshares Inc. Inc & CIBM Bank Charles E. Baker, CPA Retired Partner of Ernst & Young, LLP Willard Bunn III Managing Direc
Slide 5: Crowe Horwath / Computershare
CROWE HORWATH • Brian B i Sterwald St ld • Aaron O’Connor COMPUTERSHARE • Ginger Lawrence 5
Slide 6: Management Team
MANAGEMENT TEAM President & CEO of J Brian Chaffin J. 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 Daniel J. Ra
Slide 7: Proposal I: Election of Directors
PROPOSAL I: ELECTION OF DIRECTORS N i t d Di Nominated Directors: t Charles E. Baker J. Brian Chaffin John P. Hickey, Jr. El Elected d directors di will ill serve until il 2019. 2019 7
Slide 8: Proposal II: Ratification of Independent Registered Public Accounting Firm
PROPOSAL II: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Crowe Horwath LLP 8
Slide 9: Presentation to Shareholders
PRESENTATION TO SHAREHOLDERS Mark A. Elste Chairman of the Board of Directors 9
Slide 10: Dramatic improvements in capital standing and asset quality
Dramatic improvements p in capital p standing g and asset quality led to the removal of all regulatory orders in 2014. 10.80% CAPITAL RATIOS ASSET QUALITY 18% 12% 14.89% 14.39% 13.50% 88.04% 13.15% 16% 12.97% 10% 7.53% 7.442% 7.440% 12.27% 12..24% 12.08% 87% 80% 14% 10.93% % 10.93% % 1 11.8 11.8 5.9
Slide 11: Stock price, volume and total return by period
Traded Volume Average Annual Average Annual Ending Stock Weighted Total Return Total Return Price per Volume Average Price Since 12/31/2009 Since 12/31/2010 P i d Period Sh Share (1) YTD YTD (2) (3) (3) 12/31/2009 $0.11 862,997 $0.15 12/31/2010 $0.09 1,878,293 $0.23 -23% 12/31/2011 $0 18 $0.18 2 243
Slide 12: $100 Investment in CIBH and KRXTR
$100 INVESTMENT IN CIBH AND KRXTR - AT CALENDAR YEAR END 5 YEARS AGO 12/31/2010 $1,000 CIBH on OTC Markets KBW Regional Banking Total $800 Return Index (KRXTR) Linear (CIBH on OTC Markets) Linear (KBW Regional $600 Banking Total Return Index) $400 $200 $0 12/311/2010 3/31/2011 6/300/2011 9/300/2011
Slide 13: John P. Hickey, Jr.
JOHN P. P HICKEY, JR. CIB Marine Bancshares, Inc. Director May 2007 – Present Chairman February 2009 – October 2015 President & CEO March 2007 – August 2010/January 2011 President & CEO January 2015 – October 2015 (interim basis) Marine Bank & CIBM Bank Director April 2006 – Present Chairman Februar
Slide 14: Management Presentation to Shareholders
MANAGEMENT PRESENTATION TO SHAREHOLDERS J. Brian Chaffin President & CEO 14
Slide 15: Asset Quality
ASSET QUALITY 10.80% 12% 10% 8.04% 7.53% 7.42% 7.40% 8% 5.993% 5.48% 4.48% 6% 2.94% 2.80% 4% 2.225% 1.16% 1.06% 0.70% 2% 0% YTD 2009 YTD 2010 YTD 2011 YTD 2012 YTD 2013 YTD 2014 YTD 2015 (Nonperforming Assets+Restructured Lns+90Day Past Due Lns) / Total Assets Nonaccrual Lns / Total Lns 15
Slide 16: Capital Ratios
CAPITAL RATIOS 18% 14.89% 144.39% 16% 13.500% 13.15% % 12.97% % 12.27% 12.24% 12.08% 11.87% 11.80% 14% 10.93% 10.93% 10.04% 12% 9.79% 10% 8% 6% 4% 2% 0% YTD 2009 YTD 2010 YTD 2011 YTD 2012 YTD 2013 YTD 2014 YTD 2015 CIBM Leverage Ratio CIBM Bank Leverage Ratio Well Capitalized Level Linear (Well Cap
Slide 17: Loans (000s)
LOANS (000S) $500,000 $450,000 $400,000 $350,000 $300,000 $250 000 $250,000 $200,000 $150,000 $100 000 $100,000 $50,000 $0 YTD YTD YTD YTD YTD YTD YTD 2009 2010 2011 2012 2013 2014 2015 Commercial Commercial Real Estate Construction and Development Residential Real Estate Home Equity q y Purchased H
Slide 18: Other 2015 Activity
OTHER 2015 ACTIVITY • Addition of Wheaton, IL branch; OREO write write-downs; downs; parent company expenses; and expense reduction plan. • Increased net interest income; lower net interest margin. • Avenue Mortgage growth. • $43 Million deposit growth; Avenue Bank branch; Acceleration Banking. 18
Slide 19: Earnings Improvement Strategies
EARNINGS IMPROVEMENT STRATEGIES • Expense Reduction. • Revenue Growth Growth. 19
Slide 20: Expense Reduction Plan
EXPENSE REDUCTION PLAN • Benchmarking B h ki ffor ddepartment t t llevell staffing. t ffi • Consolidate two non-bank branch offices into other existing locations. • $1.1 $1 1 Milli Million savings; i effective ff ti 2nd2 d half h lf off 2016. 20
Slide 21: Revenue Growth
REVENUE GROWTH • Continue strong commercial loan growth • Grow Avenue Mortgage • SBA 7a lending • Other SBA related activities • Limited trust powers p • Retail banking 21
Slide 22: CIB Marine Bancshares Selected Unaudited Consolidated Financial Data
CIB MARINE BANCSHARES, INC. Selected Unaudited Consolidated Financial Data At or for the Quarters Ended March 31, December 31, March 31, 2016 2015 2015 (Dollars in thousands, except share and per share data) Selected Statement of Operations Data Interest and dividend income $ 5,176 $ 4,874 $ 4,460 I
Slide 23: CIBM Bank Selected Unaudited Consolidated Financial Data
CIBM BANK Selected Unaudited Consolidated Financial Data At or for the Quarters Ended March 31 31, December 31, 31 March 31 31, 2016 2015 2015 (Dollars in thousands, except share and per share data) Selected Statement of Operations Data Net interest income 4,448 4,195 3,885 Provision for (reversal o
Slide 24: Selected Financial Data: Asset Quality Ratios
CIB MARINE BANCSHARES, INC. Selected Unaudited Consolidated Financial Data At or for the Quarters Ended March 31, December 31, March 31, 2016 2015 2015 (Dollars in thousands, except share and per share data) Asset Quality Ratios: Nonaccrual loans to loans (9) 0.81% 0.70% 1.55% Nonaccrual loans loans
Slide 25: Selected Financial Data: Financial Condition
CIB MARINE BANCSHARES, INC. Selected Unaudited Consolidated Financial Data At or for the Quarters Ended March 31, December 31, March 31, 2016 2015 2015 (Dollars in thousands, except share and per share data) Financial Condition Data Total assets $ 597,089 $ 571,233 $ 522,346 Loans 470,424 445,050 38
Slide 26: Earnings Improvement Q1 2016
EARNINGS IMPROVEMENT Q1 2016 • Increase net interest income from fourth quarter 2015 loan g growth. • Modest increase in non-interest income from Avenue Mortgage. • Minimal impact from expense reduction plan. • No SBA related lending activities in the first quarter. • First quarter $430,000 gain fro
Slide 27: Avenue Mortgage Acquisition
AVENUE MORTGAGE ACQUISITION • Acquired q Avenue in September p 2013. • Pre-acquisition residential loan portfolio around $30 million; at end of Q1 2016 around $110 million. • Nearly $400 million loans sold to investors since acquisition. • Residential loan pportfolio ARMs and fixed rate upp to 15 ye
Slide 28: Avenue Mortgage Expansion
AVENUE MORTGAGE EXPANSION • Added 20 new mortgage loan officers and 5 support staff at the end of 2015. 2015 • Footprint in western metro Chicago area and Indianapolis, a ggood fit. • No acquisition costs. • Short hiring timeline achieved with leadership from David Pendley and support from Avenue, I
Slide 29: Earnings Outlook
EARNINGS OUTLOOK (1) 2015 2016 2017 (actual) (forecast) (forecast) (Dollars in millions) Total Assets $ 570 $ 615 to 640 $ 635 to 670 Net Income, after tax (2) (605) 2.6 to 3.8 3.1 to 4.5 Earnings per share Basic $ ‐0.03 $ 0.14 to 0.21 $ 0.17 to 0.25 Diluted ‐0.03 0.03 0.07 to 0.11 0.09 to 0.13 (1)
Slide 30: Shareholders' Questions & Comments
SHAREHOLDERS’ QUESTIONS & COMMENTS 30
Slide 31: Slide 31
CIB Marine Bancshares — Shareholder Meeting (May 2016) on 6ix