Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — KBW Conference 2012
17 slides from Customers Bancorp's conference presentation, Aug 1, 2012
Slide 1: KBW Conference
Exhibit 99.1 KBW Conference August 1, 2012 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation as well as other written or oral communications made from time to time by us, may contain certain forward-looking information within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statemen
Slide 3: Forward-Looking Statements
Forward-Looking Statements · changes in estimates of future loan loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; · the integration of the Bank’s recent FDIC-assisted acquisitions may present unforeseen challenges; · inflation, i
Slide 4: Where We Stand Today
Where We Stand Today § Well-capitalized and profitable bank headquartered in Wyomissing, PA with over $2.2 billion in assets, 14 branches in suburban Philadelphia, Hamilton, NJ and Rye, NY. Proforma, $3.0 billion assets and about $250 million in equity by year end 2012. § Very experienced management
Slide 5: Management Team
Management Team § Experienced and cohesive management team with an average tenure of 30 years leadership experience § Management interests aligned with shareholders 5
Slide 6: Management Team Track Record
Management Team Track Record § Jay Sidhu, Customers Bank Chairman and CEO, served at Sovereign from 1986 to 2006 § As CEO, Mr. Sidhu oversaw the growth from a $500 million asset financially-challenged thrift to a $90 billion financial institution § Sovereign had more than 785 branch locations spanni
Slide 7: Franchise Overview
Franchise Overview Branch Franchise § Assets: ~$2.2 billion § Gross Loans: ~$1.8 billion § Deposits: ~$1.9 billion § Tangible Common Equity: ~$160 million All data as of March 31, 2012 Source: SNL Financial, Company data 7
Slide 8: Investment Highlights
Investment Highlights § Identified existing problems at New Century Bank in 2009 Strong § Customers is now a well-capitalized, scalable bank; which we believe to be Bank adequately reserved for legacy issues Foundation § Increased book value per share more than 30% over the last 24 months. § New man
Slide 9: Our Business Model
Our Business Model § Focus on doing a few things well § Conservative underwriting in lending – In-market small business lending, multi-family lending and basic consumer lending supplemented with niche low-risk specialty lending business § Continue leveraging low-cost deposit model – Focus on larger
Slide 10: Critical Success Factors
Critical Success Factors 1. Talent - Acquire and retain very experienced, talented and high producing team members dedicated to exceptional service, personal development, and profitable growth 2. Absolute Focus on Asset Quality 3. Focus on Profitability - Revenues equal to two times expenses 4. Risk
Slide 11: High Touch, High Tech
High Touch, High Tech Concierge Banking Sales Force Pricing Technology § Brings banker to the § Bankers own a § Low cost banking § Implementation of customer, home or portfolio of model allows for more technology suite allows office, 12 hours a customers pricing flexibility for unique product day, 7
Slide 12: Lending Strategy
Lending Strategy Commercial Lending Consumer Lending Small Business Real Estate Secured Lending § Target companies with less than $5.0 million annual revenue § Home equity and residential mortgage § Loans (incl. SBA loans) originated by branch network § Conservative underwriting and specialist small
Slide 13: Bank Roll-Up Opportunity
Bank Roll-Up Opportunity § Potential Sizeable consolidation opportunity in the region Total Assets ($B) # of Banks: 474 # of Banks: 40 # of Banks: 41 Ø Source: SNL Financial Ø Note: Data for all institutions headquartered in PA, NJ, NY, MD, CT and DE with assets less than $2B 13
Slide 14: Key Financial Targets
Key Financial Targets Profitability First Six Months 2012 Results * § Return on Equity = 10% or greater 12.7% § Return on Assets = .90 to 1.00% 0.97% § Net Interest Margin = 3.00% to 3.25% 2.95% § Efficiency Ratio = 50% 70.5% Capital § Tier 1 Leverage Ratio = 8% or greater 7.5% § Total-Risk Based Ca
Slide 15: Key Financial Targets (continued)
Key Financial Targets continued These long-term goals should not be regarded as an indication that Customers Bancorp considered, or now considers, them to be necessarily predictive of actual future results, and these goals should not be relied upon as such. These goals were based necessarily on the
Slide 16: Conclusion
Conclusion § Unique bank platform; current banking dislocation provides significant potential opportunity for M&A growth that is supported by a strong organic business model § Management team with proven capability of organic growth, integrating acquisitions and delivering above average shareholder
Slide 17: Summary
Summary Experienced Management Organic and M&A Growth Platform Low Risk Profile Capital to Support Risks & Growth Above Average Shareholder Returns 17