{"id":470262,"date":"2021-04-01T18:48:29","date_gmt":"2021-04-01T22:48:29","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=470262"},"modified":"2021-04-01T18:48:29","modified_gmt":"2021-04-01T22:48:29","slug":"cib-marine-bancshares-inc-issues-counterproposal-to-hildene-plan","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/cib-marine-bancshares-inc-issues-counterproposal-to-hildene-plan\/","title":{"rendered":"CIB Marine Bancshares, Inc. Issues Counterproposal to Hildene Plan"},"content":{"rendered":"
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BROOKFIELD, Wis., April 01, 2021 (GLOBE NEWSWIRE) — CIB Marine Bancshares, Inc. (the \u201cCompany\u201d or \u201cCIB Marine\u201d) (OTCQB: CIBH), has issued a letter to its shareholders in response to a proxy statement issued by offshore hedge fund, Hildene Opportunities Master Fund, Ltd. (\u201cHildene\u201d). CIB Marine\u2019s letter highlights financial performance measures over the last five years, answers shareholder questions related to Hildene\u2019s recent communications and, most importantly, proposes a fair plan that is accretive to value as an alternative to Hildene\u2019s self-enriching repurchase plan. The Company\u2019s proposed preferred stock repurchase plan includes the repurchase of 50% of the Company\u2019s currently outstanding preferred stock in 2021 with intentions to pursue future repurchases with a goal of retiring all preferred stock within four years of the first repurchase, subject to financial and other considerations. Highlights are included here with additional detail in the letter, which is available along with other Annual Meeting materials on CIB Marine\u2019s website: www.cibmarine.com\/2021AnnualMeeting.asp<\/a>.<\/p>\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\n CIB Marine Plan<\/strong>\n <\/td>\n\n Hildene Plan<\/strong>\n <\/td>\n<\/tr>\n
\n Shares to be Repurchased in 2021<\/strong>\n <\/td>\n21,946 pro-rata (50.0%)<\/td>\n23,529 (53.6%)<\/td>\n<\/tr>\n
\n Price Per Share<\/strong>\n <\/td>\n$775<\/td>\n$850<\/td>\n<\/tr>\n
\n SubDebt Required<\/strong>\n <\/td>\nNone<\/td>\n$20 million<\/td>\n<\/tr>\n
\n Mandatory Payment of 7% Dividends<\/strong>\n <\/td>\nNo (no change to current
noncumulative terms)<\/td>\n		Yes (changes current
noncumulative terms)<\/td>\n<\/tr>\n
\n Repurchase Order<\/strong>\n <\/td>\nPro-rata Series A and
Series B<\/td>\n		Mandatory purchase of
Series\u00a0A before Series B<\/td>\n<\/tr>\n
\n Accretive to Common Tangible Book
Value<\/strong>\n <\/td>\n		Yes<\/td>\nNo<\/td>\n<\/tr>\n
\n Article Amendment Required<\/strong>\n <\/td>\nYes<\/td>\nYes<\/td>\n<\/tr>\n<\/table>\n

J. Brian Chaffin, CIB Marine\u2019s President and CEO said, \u201cOur estimates indicate that Hildene\u2019s proposed plan would take twice as long as our plan to repurchase all outstanding preferred shares and it would require us to pay more than $20 million combined in debt service and preferred dividends, not including the repayment of subordinated debt or the price paid for the repurchased shares. We believe that using our currently available cash for repurchases is far more productive for all parties and would create immediate value for our common shareholders at a price above prior Preferred Stock repurchases.\u201d<\/p>\n

Mr. Chaffin concluded, \u201cOur shareholders will receive a copy of our letter with a WHITE proxy card in an upcoming mailing from CIB Marine. While shareholders may be tempted to express displeasure with Hildene\u2019s proposal, the strongest message our shareholders could send to Hildene is to discard any materials received from Hildene and overwhelmingly vote our WHITE Proxy Card in support of our Board nominees, who have guided us in our disciplined repurchase efforts.\u201d\u00a0\u00a0\u00a0<\/p>\n

CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates ten banking offices and five mortgage loan offices in Illinois, Wisconsin and Indiana. More information on the Company is available at www.cibmarine.com, including recent shareholder letters, links to regulatory financial reports, and audited financial statements.<\/p>\n

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\n FORWARD-LOOKING STATEMENTS<\/em>
\n <\/strong>
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\n CIB Marine has made statements in this release that may constitute \u201cforward-looking statements\u201d 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 created thereby and is including this statement to avail itself of the safe harbor. Forward-looking statements are identified generally by statements containing words and phrases such as \u201cmay,\u201d \u201cproject,\u201d \u201care confident,\u201d \u201cshould be,\u201d \u201cintend,\u201d \u201cpredict,\u201d \u201cbelieve,\u201d \u201cplan,\u201d \u201cexpect,\u201d \u201cestimate,\u201d \u201canticipate\u201d and similar expressions. These forward-looking statements reflect CIB Marine\u2019s current views with respect to future events and financial performance that are subject to many uncertainties and factors relating to CIB Marine\u2019s operations and the business environment, which could change at any time.<\/em>\n <\/p>\n

\n There are inherent difficulties in predicting factors that may affect the accuracy of forward-looking statements. <\/em>\n <\/p>\n

\n Stockholders should note that many factors, some of which are discussed elsewhere in this Earnings Release and in the documents that are incorporated by reference, could affect the future financial results of CIB Marine and could cause those results to differ materially from those expressed in forward-looking statements contained or incorporated by reference in this document. These factors, many of which are beyond CIB Marine\u2019s control, include but are not limited to:<\/em>\n <\/p>\n