Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — IPO Roadshow (December 2019)
20 slides from Customers Bancorp's IPO roadshow presentation, Dec 4, 2019
Slide 1: Investor Presentation December 2019
Member FDIC Investor Presentation December 2019 NYSE: CUBI
Slide 2: Forward-Looking Statements
2 This presentation, as well as other written or oral communications made from time to time by us, contains forward - looking inform ation within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to future events or future
Slide 3: Forward-Looking Statements (Cont.)
3 • material differences in the actual financial results of merger and acquisition activities compared with our expectations, such as with respect to the full realization of anticipated cost savings and revenue enhancements within the expected time frame; • our ability to successfully implement our
Slide 4: Transaction Summary
4 Transaction Summary (1) Actual offering size and pricing may differ materially from the figures shown; offering size and pricing to be determined by neg otiations between the Company and the underwriters (2) Callable prior to December 30, 2029 upon the occurrence of a Tax Event, a Tier 2 Capital E
Slide 5: Q3 2019 Highlights
5 Q3 2019 Highlights • Net interest margin, tax equivalent (1) (“NIM”), expanded 19 basis points during the quarter • Total deposits grew 5% year over year and 9% during Q3 2019; DDA’s grew 25% year over year • Loan mix improved • Multi - family loans declined 20% year over year and 7% during Q3 201
Slide 6: Q3 2019 Profitability – Significant Improvement
6 Q3 2019 Profitability – Significant Improvement (1) Non - GAAP measures ; refer to the reconciliation schedules at the end of this document NM – not meaningful QoQ YoY ($ in thousands) Q3 2019 Q2 2019 Q3 2018 $ Change % Change $ Change % Change GAAP Profitability Metrics: GAAP earnings $23,451 $5,
Slide 7: Q3 2019 Consolidated Results
7 Q3 2019 Consolidated Results Q3 2019 Net Income to Common Shareholders of $23.5 million, and Diluted Earnings Per Common Share of $0.74. • $0.72 of diluted EPS from the Customers Bank Business Banking segment • $0.02 of diluted EPS from the BankMobile segment (1) A non - GAAP measure ; refer to th
Slide 8: Q3 2019 Net Interest Margin
8 Q3 2019 Net Interest Margin Source : Company data FTE Net Interest Margin (1) (1) A non - GAAP measure; refer to the reconciliation schedules at the end of this document 16 bps increase in yield on interest earning assets Q3 2019 over Q2 2019: 17 bps increase in yield on total loans and leases (6
Slide 9: 2019 Deposits: Growth In The Right Areas
9 We are improving our funding mix as we r e place higher cost funding with lower cost core deposits from BankMobile, our Digital Direct Bank, and core business units Source: Company Data Total may not sum due to rounding 2019 Deposits: Growth In The Right Areas Deposit Growth Sep 2018 Dec 2018 Mar
Slide 10: Q3 2019 Loans
10 QoQ YoY $0.1 B 16% $0.6 B NM $0.0 B -4% $0.1 B 19% $0.1 B 7% $0.1 B 6% $0.1 B 6% $0.5 B 26% $0.5 B 24% $1.0 B 62% -$0.2 B -7% -$0.7 B -20% $0.6 B 6% $1.5 B 17% Growth Q3 2019 Loans Q3 2019 loans totaled $10.3 Billion • The yield on loans increased 17 bps from Q2 2019, and 41 bps over Q3 2018 • 10
Slide 11: Superior Operating Efficiency and Costs
11 Superior Operating Efficiency and Costs (1) Source : S&P Global and Company data . Data based on Customers Bank Business Banking Segment unless labeled Consolidated . Peer data consists of Northeast and Mid - Atlantic banks and thrifts with comparable asset size and predominantly commercial busin
Slide 12: Outstanding Credit Quality
12 NPLs to Total Loans Source : S&P Global, Company data . Peer data consists of Northeast and Mid - Atlantic banks and thrifts with comparable asset size and predominantly commercial business focused loan portfolios as further described in our 2019 proxy . Industry data includes all commercial and
Slide 13: Strategic Priorities Articulated at Analyst Day in October 2018
13 Strategic Priorities Articulated at Analyst Day in October 2018 – Summing It Up • ROAA was 0.95% in Q3 2019, up significantly from Q2 2019 and Q3 2018 • NIM (1) expanded to 2.83% in Q3 2019 • Customers effectively restructured its balance sheet resulting in NIM expansion of 36 bps in one year • B
Slide 14: Contacts
14 Contacts Company: Carla Leibold, CFO Tel: 484 - 923 - 8802 cleibold@customersbank.com Jay Sidhu Chairman & CEO Tel: 610 - 935 - 8693 jsidhu@customersbank.com Bob Ramsey Director of IR Tel: 484 - 926 - 7118 rramsey@customersbank.com
Slide 15: BankMobile Segment Expanded Financials
15 BankMobile Segment Expanded Financials (1) A Non - GAAP measure ; refer to the reconciliation schedule at the end of this document Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Interest income -$ -$ -$ -$ -$ 2$ 1$ 2$ 1$ -$
Slide 16: Non-GAAP Measures
16 Customers believes that the non - GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions . These non - GAAP financial measures are freq
Slide 17: Core Earnings Reconciliation
17 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 USD Per Share USD Per Share USD Per Share USD Per Share USD Per Share GAAP net income to common shareholders $ 23,451 $ 0.74 $ 5,681 $ 0.18 $ 11,825 $ 0.38 $ 14,247 $ 0.44 $ 2,414 $ 0.07 Reconciling items (after tax): Severance expense - - 373 0.01 - - 1,42
Slide 18: BankMobile Segment Core Earnings Reconciliation
18 Q3 2019 Q2 2019 Q1 2019 USD Per Share USD Per Share USD Per Share GAAP net income (loss) to common shareholders 684$ 0.02$ (7,097)$ (0.22)$ (163)$ (0.01)$ Reconciling items (after tax): Severance expense - - 13 - - - Merger and acquisition related expenses - - - - - - Catch-up depreciation/amorti
Slide 19: Tangible Book Value per Common Share
19 Tangible Book Value per Common Share - Customers Bancorp, Inc. Consolidated ($ in thousands, except per share data) Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q4 2017 Q4 2016 Q4 2015 Q4 2014 GAAP -Total Shareholders' Equity 1,019,919$ 991,405$ 978,373$ 956,816$ 920,964$ 855,872$ 553,902$ 443,145$ Reconcilin
Slide 20: Reconciliation of Measures – Core Return on Average Assets
20 Reconciliation of Non - GAAP Measures – Unaudited (Cont.) Core Return on Average Assets - Customers Bancorp (dollars in thousands except per share data) Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 2019 2018 GAAP net income 27,066 9,296 15,440 17,862 6,029 51,801 53,833 Reconciling items (after tax):