CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (April 2022)
36 slides from CIB Marine Bancshares's shareholder meeting presentation, Apr 28, 2022
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING April 28, 2022 Previous Close (April 27, 2022) S&P 500 Index INX $4,183.96 Dow Jones Industrial Average Index INDU $33,301.93 KBW Regional Banking Total Return Index KRXTR $198.53 CIB Marine Bancshares, Inc. CIBH $37.25 Source: Bloomberg L.P. This presentation has not been
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 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 Chairman of the Boards of Mark A. Elste CIB Marine Bancshares, Inc. and CIBM Bank Chief Informatio
Slide 5: Board Committee Leadership
BOARD COMMITTEE LEADERSHIP Audit Trust Chairman: Gary Longman Chairman: Charles Mires Vice Chairman: Mark Henderson Compensation Nominating Chairman: Ron Rhoades Chairman: Ron Rhoades New Business Lines Investment Advisory Chairman: Gina Cocking Chairman: Mark Elste 5
Slide 6: Crowe LLP, Godfrey & Kahn, Computershare
CROWE LLP • Chris Camp & Brian Sterwald GODFREY & KAHN • Patrick Murphy COMPUTERSHARE • Andrew Waford 6
Slide 7: 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 Administrative Officer & General Counsel of Daniel J. Rasmussen CIB Marine Bancshares & CIBM Bank Chief Credit Officer
Slide 8: Proposal I: Election of Directors
PROPOSAL I: ELECTION OF DIRECTORS Nominated Directors J. Brian Chaffin JoAnn M. Cotter Rhonda L. Hopps Elected directors will serve until 2025. 8
Slide 9: Proposal II: Ratification of Independent Registered Public Accounting Firm
PROPOSAL II: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Crowe LLP 9
Slide 10: Meeting Adjourned
Meeting Adjourned All shareholders in attendance must submit their votes to the check-in table at this time. 10
Slide 11: Management's Presentation to Shareholders
MANAGEMENT’S PRESENTATION TO SHAREHOLDERS J. Brian Chaffin President & CEO Any year-to-date (YTD) information provided herein is as of March 31, 2022. All historical per-share stock values have been adjusted to reflect the September 2020 1-for-15 reverse stock split. 11
Slide 12: 2021 Key Financial Highlights
2021 KEY FINANCIAL HIGHLIGHTS (dollars in millions) FY 2021 FY 2020 Net Income $7.2 $8.2 ROAA(1) 0.88% 1.09% Net Interest Income $23.3 $22.2 Net Interest Margin 3.22% 3.11% Provision For (Reversal of) ($1.2) $1.1 Loan Losses Non-Interest Income $15.1 $21.8 Non-Accrual Loans / Loans 0.14% 0.23% Non-P
Slide 13: Revenue Growth
REVENUE GROWTH PRIMARY BANKING REVENUES (000s) $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2017 2018 2019 2020 2021 2022 Q1 Net interest income Deposit service charges Other service fees Mortgage banking revenue, net Other income SBA 7(a) Gains on Sale 13
Slide 14: Mortgage Banking
MORTGAGE BANKING CIBM MORTGAGE CIBM MORTGAGE LOAN ORIGINATIONS (000s) NET INCOME (000s) $5,832 $6,000 $600,000 $5,000 $4,000 $400,000 $2,746 $3,000 $2,000 $200,000 $860 $1,000 $162 $186 $0 $0 -$75 2017 2018 2019 2020 2021 2022 -$1,000 Q1 2017 2018 2019 2020 2021 2022 Q1 Purchase Money Refinance 14
Slide 15: Commercial Loan Originations
COMMERCIAL LOAN ORIGINATIONS COMMERCIAL LOAN ORIGINATIONS $140,000,000 225% $120,000,000 200% $100,000,000 166% 162% 175% $80,000,000 150% $60,000,000 126% 118% 125% $40,000,000 100% $20,000,000 100% $0 75% 2018 2019 2020 2021 2022 Q1 Originations Actual to Budget Excluding PPP loans. 15
Slide 16: Loan Portfolio Segments & Geographic Distribution
LOAN PORTFOLIO SEGMENTS & GEOGRAPHIC DISTRIBUTION LOAN GEOGRAPHIC DISTRIBUTION (000s) LOAN PORTFOLIO (000s) $600,000 $200,000 $160,000 $400,000 $120,000 $200,000 $80,000 $40,000 $0 $0 Illinois Wisconsin Indiana Other 2017 2018 2019 2020 2021 2022 Q1 Commercial & Industrial Commercial Real Estate Com
Slide 17: Government Guaranteed Lending
GOVERNMENT GUARANTEED LENDING SBA 7(A) LOANS (000s) $1,741 PPP Lending 2022 Q1 2021 $60,000 $1,800 (dollars in millions) $50,000 $1,500 Loans Originated to Date $62.2 $62.2 $1,024 Loans Outstanding at Date $3.4 $8.3 $40,000 $1,200 Loan Payoff % from Funds Paid $30,000 $900 99.7% 99.6% By SBA (i.e.,
Slide 18: Retail Division
RETAIL DIVISION DEPOSITS BY MARKET (000s) ELECTRONIC BANKING CLIENTS 5,000 $400,000 Time Deposits $350,000 Savings 4,000 $300,000 Checking 3,000 $250,000 $200,000 2,000 $150,000 1,000 $100,000 $50,000 0 $0 2017 2018 2019 2020 2021 2022 Illinois Wisconsin Indiana Other Q1 Online Banking Branches by s
Slide 19: Net Interest Income & Margin
NET INTEREST INCOME & MARGIN NET INTEREST INCOME (000s) NET INTEREST MARGIN 3.22% 3.11% 3.11% 3.06% 3.05% $25,000 2.91% $20,000 $23,263 $22,182 $19,781 $19,301 $19,401 $15,000 $10,000 $5,000 $5,466 2017 2018 2019 2020 2021 2022 Q1 $0 Net Interest Margin 2017 2018 2019 2020 2021 2022 Yield on Earning
Slide 20: Credit Administration
CREDIT ADMINISTRATION NET CHARGE OFFS TO AVERAGE LOANS LOAN CLASSIFICATION/TOTAL LOANS 0.50% 3.5% 3.0% 0.15% 0.25% 2.5% 0.02% 0.01% 2.0% 0.00% 1.5% -0.01% -0.08% 1.0% -0.25% 0.5% -0.29% -0.50% 0.0% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Q1 Q1 Special Mention Substandard-Accrual
Slide 21: Credit Administration
CREDIT ADMINISTRATION NONACCRUAL LOANS/TOTAL LOANS NON-PERFORMING ASSETS/TOTAL ASSETS 2.00% 2.00% 1.45% 1.34% 1.35% 1.13% 1.09% 1.00% 1.00% 0.69% 0.54% 0.23% 0.21% 0.19% 0.14% 0.13% 0.00% 0.00% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Q1 Q1 21
Slide 22: 1st Quarter 2022 Highlights
1ST QUARTER 2022 HIGHLIGHTS (dollars in millions) Q1 2022(1) Q1 2021(1) FY 2021 FY 2020 Net Income $0.9 $2.1 $7.2 $8.2 ROAA(2) 0.48% 1.14% 0.88% 1.09% Net Interest Income $5.5 $5.7 $23.3 $22.2 Net Interest Margin 3.06% 3.23% 3.22% 3.11% Provision for (reversal of) ($0.3) $0.0 ($1.2) $1.1 Loan Losses
Slide 23: Subordinated Debt
SUBORDINATED DEBT $10 million issued February 18, 2022 • Rate: o First 5 years: 4.50% per annum interest o Remaining 5 years: quarterly floating rate equal to Three- Month Term SFOR + 275 bps • Qualifies as Tier 2 capital for Total Risk Based Capital (TRBC) o September 30, 2021 TRBC: 18.14% (prior t
Slide 24: CIBH Stock Performance
CIBH STOCK PERFORMANCE Volume Weighted Ending Price Traded Stock Average Price Average Annual Total Return Since Period per Share(1) Volume YTD(1) 12/31/2009(2) 12/31/2015(2) 12/31/2018(2) 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% 12/31/2012
Slide 25: CIBH Stock Performance
CIBH STOCK PERFORMANCE $100 Investment in CIBH and KRXTR 12/31/2015 - 3/31/22 CIBH KRXTR 10 per. Mov. Avg. (CIBH) 10 per. Mov. Avg. (KRXTR) $600 $400 $200 $0 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 CIBH CIBH KRXTR KRXTR 5 per. Mov. Avg. (CIBH) 5 per. Mov. Avg. (CIBH) 12/31/201
Slide 26: Director & Management Common Stock Ownership
DIRECTOR & MANAGEMENT COMMON STOCK OWNERSHIP 16.00% 14.07% 12.46% 12.00% 10.44% 8.98% 9.44% 9.78% 8.00% 8.42% 7.42% 6.41% 6.83% 4.00% 0.00% 03/31/18 03/31/19 03/31/20 06/30/21 03/31/22 Board & Exec Mgt Board & all management • Includes vested and unvested shares granted under the Company’s Restricte
Slide 27: Tangible Book Value
TANGIBLE BOOK VALUE 2022 2021 2020 2019 2018 2017 (YTD) (1) Tangible Book Value $54.53 $56.44 $52.28 $44.86 $42.35 $37.88 Tangible Book Value $42.44 $45.03 $39.42 $28.71 $24.72 $19.21 Excluding DTA Tangible Book Value $41.81 $43.16 $32.52 $27.84 $25.68 $20.85 Post Pref. Series B Conversion (1) The d
Slide 28: 2021 Results & 2022 Guidance
2021 RESULTS & 2022 GUIDANCE (dollars in millions, except per share data) 2021 Actual 2022 Guidance Net Income $7.2 $3.7 - $5.5 Total Assets $745 $720 - $790 ROAA 0.88% 0.51% - 0.72% EPS(1) - Basic $5.64 $2.96 - $4.29 - Diluted $4.06 $2.14 - $3.11 (1) Actual for 2021 includes a $545,000 discount to
Slide 29: Chairman's Presentation to Shareholders
CHAIRMAN’S PRESENTATION TO SHAREHOLDERS Mark A. Elste Chairman of the Board of Directors 29
Slide 30: Preferred Stock Redemption History
PREFERRED STOCK REDEMPTION HISTORY PREFERRED STOCK REDEMPTIONS TOTAL PREFERRED SHARES DISPOSITION (as of 03/31/22) (as of 03/31/22 and by agreement date) 25,000 $850 Remaining Redeemed 2021 $825 Outstanding 36% 20,000 37% $800 # of Shares Redeemed Price per Share 15,000 $775 $750 10,000 $725 $700 5,
Slide 31: DTA (Deferred Tax Asset)
DTA (Deferred Tax Asset) 2021 2020 Last 5 Yrs (dollars in millions, except per share data) Current tax provision (excluding other $2.5 $2.9 $9.0 changes in the valuation allowance) Net DTA $14.7 $16.3 $22.6 (1) Net DTA per Share of Common Stock $11.40/share $12.85/share $18.68/share (1) (1) Amount r
Slide 32: Redemption Forecast 2022
REDEMPTION FORECAST 2022 TOTAL PREFERRED SHARES PRO-FORMA FULLY DILUTED COMMON DISPOSITION AND 2022 FORECAST STOCK INCLUSIVE OF CONVERTED SERIES B (as of 03/31/22 and by agreement date) PREFERRED SHARES Forecast Redemption 2022 10% Remaining Outstanding (Forecast Redemption 2024) 24% 24% 27% 41% 40%
Slide 33: Pro-Forma Book Value & Capital Ratios Upon 2022 Forecasted Redemption
PRO-FORMA BOOK VALUE & CAPITAL RATIOS UPON 2022 FORECASTED REDEMPTION Dec. 31, 2021 Pro-Forma Tangible Book Value per Share Common (basic) $56.44 $56.55 Tangible Book Value per Share Common (diluted)(1) $43.16 $43.24 EPS (basic)(2) $5.64 $5.75 EPS (diluted)(2) $4.06 $4.14 CIB Marine, Tier 1 Leverage
Slide 34: Board of Directors Agenda Items
BOARD OF DIRECTORS AGENDA ITEMS • Execute Preferred Stock Redemption Plan • Improve overall efficiency • Increase revenue • Build shareholder value • Enhance governance initiatives ESG: diversity, opportunity, pay equity 34
Slide 35: John P. Hickey, Jr. farewell
John P. Hickey, Jr. Director: 2006 – 2022 President & CEO: 2007 – 2011 The Board of Directors offers its appreciation and a fond farewell to Mr. Hickey after more than 15 years of service to the Company and its shareholders. 35
Slide 36: CIB Marine Bancshares Inc
YX cio marine BANCSHARES INC
CIB Marine Bancshares — Shareholder Meeting (April 2022) on 6ix