CIB Marine Bancshares, Inc. · OTC:CIBH
CIB Marine Bancshares — Shareholder Meeting (April 2020)
32 slides from CIB Marine Bancshares's shareholder meeting presentation, Apr 30, 2020
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING April 30, 2020 Previous Close (April 29, 2020) S&P 500 Index INX $2,941.00 Dow Jones Industrial Average Index INDU $24,633.86 KBW Regional Banking Total Return Index KRXTR $126.61 CIB Marine Bancshares, Inc. CIBH $1.22 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 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 Gina M. Cocking CEO & Managing Director of Colonnade Advisors, LLC JoAnn M. Cotter Retired par
Slide 5: Farewell to Mr. Bunn
Willard Bunn Director 2010 - 2020 The Board of Directors offers its gratitude and a fond farewell to Mr. Bunn after a decade of invaluable service to the Company and its shareholders. 5
Slide 6: Crowe LLP, Godfrey & Kahn, Computershare
CROWE LLP • Mark Taylor & 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 Credit Officer of Paul C. Melnick CIB Marine Bancshares & CIBM Bank Chief Administrative Officer & General Counsel of D
Slide 8: Proposal I: Election of Directors
PROPOSAL I: ELECTION OF DIRECTORS Nominated Directors Gina M. Cocking Gary L. Longman Steven C. Palmitier Elected directors will serve until 2023. 8
Slide 9: Proposal II: Fourth Amendment to Articles of Incorporation
PROPOSAL II: FOURTH AMENDMENT TO ARTICLES OF INCORPORATION Vote Results* For: 93% Against: 5% Abstain: 2% *Voting percentages are as of 5:00PM (Central), April 29, 2020, and do not include votes cast subsequently or at the Annual Meeting of Shareholders. Final voting results will be published at www
Slide 10: Proposal III: Fifth Amendment to Articles of Incorporation
PROPOSAL III: FIFTH AMENDMENT TO ARTICLES OF INCORPORATION Vote Results* For: 95% Against: 3% Abstain: 2% *Voting percentages are as of 5:00PM (Central), April 29, 2020, and do not include votes cast subsequently or at the Annual Meeting of Shareholders. Final voting results will be published at www
Slide 11: Proposal IV: Ratification of Independent Registered Public Accounting Firm
PROPOSAL IV: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Crowe LLP 11
Slide 12: Management's Presentation to Shareholders
MANAGEMENT’S PRESENTATION TO SHAREHOLDERS J. Brian Chaffin President & CEO 12
Slide 13: 2019 Results vs. Stated Outlook Range
2019 RESULTS VS. STATED OUTLOOK RANGE (dollars in millions, except per share data) 2019 Actual Range Pre-Tax Income $2.5 $3.7 - $5.4 Total Assets $704 $700 - $730 Pre-Tax Return on Average Assets 0.35% 0.50% - 0.75% Pre-Tax EPS (1) - Basic $0.15 $0.19 - $0.29 - Diluted $0.08 $0.11 - $0.16 (1) Exclud
Slide 14: Revenue Growth
REVENUE GROWTH PRIMARY BANKING REVENUES (000s) $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2015 2016 2017 2018 2019 Net interest income Deposit service charges Other service fees Mortgage banking revenue, net Other income SBA 7(a) Gains on Sale 14
Slide 15: Mortgage Banking
MORTGAGE BANKING MORTGAGE INCOME, LOAN ORIGINATIONS (000s) BEFORE TAX (000s) $400,000 $1,500 $1,190 $1,186 $300,000 $1,000 $200,000 $500 $338 $265 $248 $100,000 $0 $0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Purchase Money Refinance 15
Slide 16: Loan Portfolio Segments & Geographic Distribution
LOAN PORTFOLIO SEGMENTS & GEOGRAPHIC DISTRIBUTION PORTFOLIO SEGMENT GROWTH (000s) GEOGRAPHIC DISTRIBUTION (000s) $600,000 $250,000 $500,000 $200,000 $400,000 $150,000 $300,000 $100,000 $200,000 $50,000 $100,000 $0 $0 2015 2016 2017 2018 2019 Illinois Wisconsin Indiana Other C&I Comm Real Est C&I Com
Slide 17: Commercial Loan Originations
COMMERCIAL LOAN ORIGINATIONS Originations Actual to Budget $100,000,000 145% 126% $80,000,000 130% 114% $60,000,000 115% 100% $40,000,000 100% 85% $20,000,000 85% $0 70% 2016 2017 2018 2019 17
Slide 18: Government Guaranteed Lending
GOVERNMENT GUARANTEED LENDING SBA 7A LOANS (000s) $25,000 $2,000 $1,741 $1,800 $20,000 $1,600 $1,400 $1,109 $15,000 $1,024 $1,200 $1,000 $10,000 $800 $600 $5,000 $400 $68 $200 $0 $0 2016 2017 2018 2019 SBA 7(a) Loan Originations SBA 7(a) Gains on Sale 18
Slide 19: Retail Division
RETAIL DIVISION DEPOSITS BY MARKET (000s) ELECTRONIC BANKING CLIENTS $400,000 7,000 $350,000 $300,000 $250,000 $200,000 3,500 $150,000 $100,000 $50,000 $0 0 Illinois Wisconsin Indiana Other 2017 2018 2019 Time Deposits Savings Checking Remote Consumer Deposit Mobile Banking Online Banking 19
Slide 20: Net Interest Income
NET INTEREST INCOME NET INTEREST INCOME (000s) $19,781 $19,401 $19,301 $17,952 $20,000 $16,153 $16,000 $12,000 $8,000 $4,000 $0 2015 2016 2017 2018 2019 20
Slide 21: Credit Administration
CREDIT ADMINISTRATION NET CHARGE OFFS TO AVERAGE LOANS LOAN CLASSIFICATION / TOTAL LOANS 0.50% 3.0% 2.5% 0.15% 0.25% 2.0% 0.02% 0.00% 1.5% ‐0.02% 1.0% ‐0.11% ‐0.25% 0.5% ‐0.29% ‐0.50% 0.0% 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Special Mention Substandard‐Accrual Substandard‐NonAccru
Slide 22: Credit Administration
CREDIT ADMINISTRATION NON‐PERFORMING ASSETS / NONACCRUAL LOANS/ TOTAL LOANS TOTAL ASSETS 2.00% 3.00% 2.25% 1.34% 1.26% 1.67% 1.09% 2.00% 1.45% 1.35% 1.13% 1.00% 0.70% 0.69% 1.00% 0.00% 0.00% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 22
Slide 23: Project Falcon
PROJECT FALCON Team Name Focus Deposit Improve cost of funds by improving mix of non‐interest bearing deposits. Acquisition Yield Improve yield in residential loan portfolio and deposit services. Improvement Loan Operations Streamline processes within Loan Servicing to gain operational efficiencies.
Slide 24: First Quarter 2020
FIRST QUARTER 2020 (dollars in millions) Q1 2020(1) Q1 2019(1) FY 2019 FY 2018 Pre-Tax Net Income $1.1 $0.9 $2.5 $4.5 Pre-Tax ROAA(2) 0.62% 0.49% 0.35% 0.66% Net Interest Income $4.9 $4.8 $19.3 $19.8 Provision for (reversal of) $0.2 ($0.2) $0.8 ($1.2) Loan Losses Non-Interest Income $2.6 $1.4 $10.2
Slide 25: COVID-19 Emergency Response
COVID-19 EMERGENCY RESPONSE • Remote Banking Solutions • Online Banking • CIBM Bank mobile app • iTalk telephone banking • Branch activity limited to drive-thru service or by-appointment only. • 2/3 of employees currently work from home. • Implementation of electronic solutions when possible. • Loan
Slide 26: Paycheck Protection Program
PAYCHECK PROTECTION PROGRAM • All loans 100% backed by the federal government. • Total number of loans approved: 289 • Total amount of approved funds: $42.3 million • Total fees expected: $1.5 million 26
Slide 27: Moving Forward in 2020
MOVING FORWARD IN 2020 • Management has stress tested various areas of the bank, including earnings, capital and liquidity. • Credit quality is expected to deteriorate while credit losses and other costs increase in the foreseeable future due to the impact of the pandemic and economic downturn. • Th
Slide 28: Shareholders' Questions
SHAREHOLDERS’ QUESTIONS 28
Slide 29: Efficiency Ratio
EFFICIENCY RATIO (non‐interest expense/net interest income + non‐interest income) 103% 110% 100% 89% 88% 90% 87% 84% 80% 70% 2015 2016 2017 2018 2019 29
Slide 30: Stock Performance
STOCK PERFORMANCE Traded Volume Average Average Average Ending Stock Weighted Annual Total Annual Total Annual Total Price per Volume, Average Price Return Since Return Since Return since Period Share (1) Annualized YTD (1) 12/31/2009 (2) 12/31/2014 (2) 12/31/2016 (2) 12/31/2009 $0.11 862,997 $0.15
Slide 31: Stock Performance
STOCK PERFORMANCE $100 Investment in CIBH and KRXTR 12/30/16 ‐ 12/31/19 $200 $150 $100 CIBH KRXTR 5 per. Mov. Avg. (CIBH) 5 per. Mov. Avg. (KRXTR) $50 12/30/16 3/30/17 6/30/17 9/30/17 12/31/17 3/31/18 6/30/18 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 12/31/19 $100 Investment in CIBH and KRXTR 12/31/2
Slide 32: Stock Performance
STOCK PERFORMANCE $100 Investment in CIBH and KRXTR 12/31/2019 ‐ 4/28/2020 $150 CIBH KRXTR 5 per. Mov. Avg. (CIBH) 5 per. Mov. Avg. (KRXTR) $100 $50 12/31/2019 3/31/2020 As of 04.29.20 Previous Close 52 Week Range CIBH $1.22 $0.88 ‐ $1.52 Source: OTCMarkets.com 32
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