Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — SPAC Merger (October 2020)
16 slides from Customers Bancorp's SPAC merger presentation, Oct 21, 2020
Slide 1: Q3 2020 Update
Q3 2020 Update • Q3 pro forma core revenue of $18.2mm, represents 19.5% YoY growth Q3 Financial Overview • Q3 pro forma core EBITDA of $4.1mm • YTD pro forma adjusted EBITDA of $2.5mm • Q3 End of Period (EOP) serviced deposits rise to $944mm, represents 42% YoY growth • Q3 Card Spend of $741mm, repr
Slide 2: Where Does BankMobile Technologies Stand Today?
Where Does BankMobile Technologies Stand Today? Delivering Full-Featured Digital Banking Platform to Large Scale Non-Bank Partners One of America’s Largest Digital Expert in B2B2C Banking… …Award Winning Banking Technology, Banking Platforms… Focused on Banking Services for Millennials & Middle Inco
Slide 3: Highly Attractive Business Model: Income Statement Historical & Forecasted
7 Highly Attractive Business Model Income Statement – Historical & Forecasted Revenue Breakout by Major Categories Historical & Projected Income Statement 2019 Pro Forma Core (1) 2020E 2021E 2022E Interchange and MasterCard incentive income based Pro Forma Core Revenues ($mm) $61.3 $72.4 $104.0 $144
Slide 4: Demonstrating Strong Performance Across Key Metrics
Demonstrating Strong Performance Across Key Metrics Key Performance Indicators – Metrics of Company Success Card Spend Q3 Card Spend YTD EoP Serviced Deposits Organic Deposits YTD Higher Ed Account Interchange Retention Rate YTD 24% 16% 42% 32% 1% 13% $944mm $741mm $2.1bn $1.4bn 98.5% 99.7% 79bps 69
Slide 5: New Business Verticals Performance
New Business Verticals Performance Number of Open Accounts EOP Serviced Deposit Balances Card Spend ($MM) ($MM) Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Q over Q Q4’19 Q1’20 Q2’20 Q3’20 Q over Q Q4’19 Q1’20 Q2’20 Q3’20 Q over Q Q4’19 Q1’20 Q2’20
Slide 6: Income Statement – Historical & Forecasted
Income Statement – Pro Forma Core Historical & Forecasted 2019 Pro Forma Core (1) 2020E 2021E 2022E Pro Forma Core Revenues ($mm) $61.3 $72.4 $104.0 $144.4 Less: Pro Forma Core OpEx (Excl. Deprec. & Amort.) ($mm) 63.6 67.2 82.6 94.1 Pro Forma Core EBITDA ($mm) (2) ($2.2) $5.3 $21.5 $50.3 Less: Inter
Slide 7: Financial Summary
Financial Summary Pro Forma Core Financial Metrics ($ in millions) 2019 Q3 2020 Q3 YoY Chg % 2019Q3 YTD 2020Q3YTD YoY Chg % Commentary Interchange and card revenue $6.7 $7.4 11% $21.8 $20.1 (8%) • Interchange and card revenues declined, despite significant growth in card spend due to $1mm drop in AT
Slide 8: Cost Controls and Revenue Growth Drive Operating Leverage
Cost Controls and Revenue Growth Drive Operating Leverage Focus on Expense Control as BMT Initiatives Launch and Exit “Build” Phase 2019 2020 2021 Beyond Ongoing $10mm Contract Optimization Initiative (1) Recurring Focus on Expense Annualized Benefit $17mm Annual Savings Management • Initiatives foc
Slide 9: Financial & Operating Highlights
Financial & Operating Highlights BankMobile (BMT)’s Model has enabled it to establish a highly attractive financial & operating profile >5mm $11.7bn *SSEs (1) BankMobile Serves Approximately Total Student Refund 1 in 3 of all US College Students Dollars Processed (3) Pro Forma Core Revenue Revenue E
Slide 10: Valuation Overview
Valuation Overview ▪ Enterprise Value multiples are valued at a significant discount when looking at 2021E EBITDA and revenue Enterprise Value / (1) (1) Public Comparable Companies Public Comparable Companies 2021E Rev. 2021E EBITDA Bank Tech Comparables EV / 2021E EBITDA Multiples EV / 2021E Revenu
Slide 11: Investment Thesis
Investment Thesis Unique Opportunity to Invest in a Premier Brand Positioned for Significant Growth Recognized Rapid Market Best-in-Class Positioned For Strong Market Leader Expansion Digital Bank Significant Growth Financial Profile Among the Largest Sophisticated Planned 2021 Launch ~$72M Digital
Slide 12: BankMobile Average Account Performance Comparison
BankMobile Average Account Performance Comparison Key Operating Metrics Comparison against Leading UK based Digital Banks Illustrative Analysis Highlights $32 $31 BankMobile compares Revenue per Account (1) $29 favorably with both Monzo $27 and Revolut on key metrics Category 1 Category 2 Category 3
Slide 13: Proposed Capitalization and Ownership
Proposed Capitalization and Ownership Proposed Sources & Uses Analysis Capitalization at Closing Proposed Sources ($mm) Share Price $10.38 (1) CUBI Rollover Equity $54.7 Total Shares Outstanding 11.3 PIPE Proceeds 20.0 BMT Pro Forma Equity Value $117.2 Pre-Closing Cash on B/S at MFAC 33.2 Net Debt a
Slide 14: Reconciliation to Financials
Reconciliation to Pro Forma Core Financials 2019 Financials 2020 Financials Quarterly Financials YTD Full Year Quarterly Financials YTD Pro Forma Core Adjustments ($ shown in 000s) Q1' 19 Q2' 19 Q3' 19 Q4' 19 Q3' 19 2019 Q1' 20 Q2' 20 Q3' 20 Q3' 20 Revenues $19,811 $16,995 $17,900 $17,601 $54,706 $7
Slide 15: Reconciliation to Non-GAAP Financial Measures
Reconciliation to Non-GAAP Financial Measures ($ shown in millions) 2019 Pro Forma Core (1) 2020E 2021E 2022E Pro Forma Core Pre-Tax Income ($12.1) ($8.1) $6.2 $33.3 Addback of Interest Expense (2) 0.5 1.4 0.6 0.3 Addback of Depreciation & Amortization 9.3 13.0 14.7 16.7 Pro Forma Core EBITDA ($2.2)
Slide 16: Reconciliation to Non-GAAP Financial Measures (Continued)
Reconciliation to Non-GAAP Financial Measures (Continued) 2020E BankMobile Estimated Debt at Closing $40.0 Trust Cash Allocated for Debt Paydown (1) (11.6) Pro Forma Estimated Debt at Closing $28.4 Beginning BankMobile Cash $10.3 Less: BankMobile Excess Cash Used in Cash Consideration (2) (5.3) Plus