CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Corporate Update (June 2004)
13 slides from CIB Marine Bancshares's corporate update, Jun 24, 2004
Slide 1: Welcome and introduction by CEO Stan Calderon
Good afternoon, and thank you all for joining us. I am Stan Calderon, the Chief Executive Officer of CIB Marine Bancshares. I accepted the position of CEO in April 2004 because I was impressed by the potential of this Company and the quality and dedication of its people. We clearly have serious prob
Slide 2: Forward-looking statements notice
First, I need to call your attention to this notice, which states that this presentation may contain forward-looking statements. Please refer to the company’s regulatory filings with the SEC for a description of factors that may cause actual results to differ from the forward-looking statements.
Slide 3: Our situation and eight-point plan
Now, let’s look at our situation and what we are doing about it. As you know, CIB Marine is experiencing deficiencies in capital, earnings and liquidity, and we certainly have suffered a loss of confidence. These problems were, for the most part, the result of too-rapid growth. This growth put strai
Slide 4: Identifying credit problems: nonperforming assets
In terms of identifying the credit problems, CIB Marine had a total of approximately $205 million in nonperforming assets as of December 31, 2003. That is an unaudited number, based on the information available at the present time, and is subject to change. As this chart illustrates, most of the non
Slide 5: Improving risk management and credit processes
One area where we have made solid progress, even before I joined the Company, is in improving our risk management and credit processes. We set a new threshhold for the Executive Loan Committees at our banking units, requiring that they approve any loan in excess of $ million. We also restructured th
Slide 6: Working with regulators and the cease and desist orders
Obviously, we have worked hard to build a constructive, credible relationship with our regulators. We believe that the regulators share a common goal with us: ensuring the strength and soundness of CIB Marine and its banking subsidiaries. This is a good time to explain the cease and desist orders, w
Slide 7: Specific requirements of the orders
Other specific requirements of the orders include: • Increasing the capital levels of several of our banking subsidiaries. • Refraining from payment of dividends. I should note that the company has never paid a cash dividend to shareholders, so this point is somewhat moot. • Restricting our asset gr
Slide 8: Commitment to regulatory compliance
We are committed to full compliance with the terms of the regulatory orders. To ensure that we are in compliance, we have taken a number of measures: - We have added staff in the financial, planning and compliance areas. - We are closely managing and coordinating all aspects of the compliance requir
Slide 9: Expected 2003 net loss update
Now, I would like to provide an update on the expected net loss that we reported to you in April. As you know, we do not yet have audited financial statements for 2003, and we are still determining the extent to which we will need to restate prior periods. All of the estimates I am about to share wi
Slide 10: First quarter 2004 expected results
Today, for the first time, we are commenting on the results for the first quarter ended March 31, 2004. We expect the net loss for the first quarter to be approximately $15 million, due to additional loan losses. The nonperforming assets at March 31, 2004 are expected to be $ million. Again, these a
Slide 11: Efforts to increase capital level
Let me comment on the efforts we are making to increase our capital level. - We have engaged an investment advisor to assist with our capital-raising efforts. - We also are seeking to reduce our classified assets. - We are seeking to reduce assets overall. - As you know, we are pursuing the sale of
Slide 12: Future direction: community bank model
I think you can see that we are working diligently to correct the problems of the past. It’s also critical that we create a new road map for the Company’s future-a future that provides superior service to customers and solid earnings performance for shareholders. • We believe our future lies in the
Slide 13: Conclusion and questions
Let me conclude this presentation by saying that, as we look toward CIB Marine’s future, we know there are many challenges ahead. But, I can assure you that your Board of Directors, management, and every member of our staff are committed to restoring CIB Marine to a Company whose performance we can