Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Q2 2019 Earnings Presentation
16 slides from Customers Bancorp's earnings presentation, Jul 24, 2019
Slide 1: Q2 2019 Earnings Call Presentation
Q2 2019 Earnings Call Presentation July 24, 2019 NYSE: CUBI Member FDIC
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, contains forward-looking information within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to f
Slide 3: Forward-Looking Statements (Cont.)
Forward-Looking Statements (Cont.) • timely development and acceptance of new banking products and services and perceived overall value of these products and services by users, including the products and services being developed and introduced to the market by the BankMobile division of Customers Ba
Slide 4: Forward-Looking Statements (Cont.)
Forward-Looking Statements (Cont.) • the levels of usage of other BankMobile student customers following graduation of additional product and service offerings of BankMobile or Customers Bank, including mortgages and consumer loans, and the mix of products and services used; • our ability to impleme
Slide 5: Q2 2019 Highlights
Q2 2019 Highlights • Net interest margin, tax equivalent(1) (“NIM”), expanded 5 basis points during the quarter • Expect NIM expansion of approximately 15 basis points during second half of 2019 • Total deposits grew 12% year over year and 10% during Q2 2019; DDA’s grew 35% year over year • Loan mix
Slide 6: Q2 2019 Consolidated Results
Q2 2019 Consolidated Results GAAP vs. Core EPS(1) Q2 2019 Net Income to Common Shareholders of $5.7 million, and Diluted Earnings Per Common Share of $0.18. • $0.40 of diluted EPS from the Customers Bank Business Banking segment • ($0.22) of diluted loss per share from the BankMobile Segment compare
Slide 7: Q2 2019 Net Interest Margin
Q2 2019 Net Interest Margin (1) FTE Net Interest Margin $12 Earning Assets 6.0% $10 4.56% 5.0% 4.41% 4.18% 4.24% 4.31% $70 $67.3 2.8% $8 4.0% $64.0 $64.7 $61.5 $60 $59.3 2.7% $ in billions $6 $8.8 $8.9 3.0% 2.64% $8.6 $8.4 $9.0 $50 2.62% 2.7% $4 2.0% 2.59% $40 2.57% 2.6% $2 1.0% $30 2.6% $ in millio
Slide 8: 2019 Deposits: Growth In The Right Areas
2019 Deposits: Growth In The Right Areas Deposit Growth 9.0 8.0 $2.4 7.0 $2.4 $1.6 $2.1 $1.7 6.0 5.0 4.0 $3.9 $3.7 $3.4 $3.5 $3.5 3.0 Deposits ($ in Billions)Deposits in ($ 2.0 $2.2 $2.2 $2.3 1.0 $1.7 $1.9 Growth - Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 QoQ YoY CD's $2.1 B $2.4 B $1.7 B $1.6 B
Slide 9: Q2 2019 Loans
Q2 2019 Loans Loan Growth $12 4.62% 5.0% 4.48% 4.35% 4.38% 4.37% $10 $0.0 $0.5 4.0% $0.0 $0.1 $0.1 $0.6 $0.7 $0.6 $0.7 $0.7 $8 $1.2 $1.2 $1.3 $1.2 $1.2 3.0% $1.8 $6 $2.1 $1.8 $1.9 $2.0 2.0% $2.0 $1.6 Loans on Yield $4 $1.5 $1.5 $2.1 Loans ($ in Billions) 1.0% $2 $3.5 $3.5 $3.3 $3.2 $3.0 Growth $0 0.
Slide 10: Superior Operating Efficiency and Costs
Superior Operating Efficiency and Costs Our Customers Bank Business Banking Segment operating costs(2), as a percentage of average assets, are at least 95 bps lower than peers and approximately 140 bps lower than the industry Total Operating Costs as a % of Average Assets (1) 3.50% 3.17% 3.13% 3.08%
Slide 11: Outstanding Credit Quality
Outstanding Credit Quality Credit metrics remain better than peers NPLs to Total Loans Net Charge Offs / Average Total Loans 2.25% 2.06% 0.50% 0.48% 0.45% 0.47% 0.45% 0.47% 0.42% 1.70% 1.75% 1.55% 1.55% 0.40% 1.18% 1.11% 1.13% 0.30% 1.25% 0.92% 0.85% 0.80% 0.19% 0.73% 0.70% 0.20% 0.16% 0.15% 0.18% 0
Slide 12: Outlook
Outlook 2019: • On track to earn at least $2.20 of core EPS in 2019 • Net Interest Income • Net Interest Margin: Expansion through 2019 to 2.80% by Q4 2019, with a full-year net interest margin above 2.70% • Deposits: Core deposit growth is expected to maintain the same pace in the second half of 20
Slide 13: Contacts
Contacts Company: Carla Leibold, CFO Tel: 484-923-8802 cleibold@customersbank.com Jay Sidhu Chairman & CEO Tel: 610-935-8693 jsidhu@customersbank.com Bob Ramsey Director of IR Tel: 484-926-7118 rramsey@customersbank.com 13
Slide 14: BankMobile Segment Expanded Financials
BankMobile Segment Expanded Financials BankMobile Segment Income Statement ($ in 000s), Except Per Share Data 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 Interest income $0 $0 $0 $0 $0 $2 $1 $2 $1 $0 $2 $1,344 $2,590 $6,761 Interest
Slide 15: Reconciliation of Non-GAAP Measures - Unaudited
Reconciliation of Non-GAAP Measures - Unaudited Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our results of operations and financial condition relative to other financial institutions. Present
Slide 16: Reconciliation of Non-GAAP Measures - Core Earnings
Reconciliation of Non-GAAP Measures - Unaudited Core Earnings - Customers Bancorp, Inc. Consolidated ($ in thousands, not including per share amounts) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 US D Per Share US D Per Share US D Per Share US D Per Share US D Per Share GAAP net income to common sharehol