Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Q1 2018 Earnings Presentation
18 slides from Customers Bancorp's earnings presentation, April 2018
Slide 1: Highly Focused, Above Average Growth
Highly Focused, Above Average Growth Bank Holding Company Investor Presentation Member FDIC April, 2018 NYSE: CUBI
Slide 2: Q1 2018 Key Financial Results
Q1 2018 Key Financial Results Community Business Banking GAAP Consolidated Segment Diluted Earnings Per Share (EPS) $0.64 $0.67 (1) YOY Change -4% 16% Net Income Available to Common ($ millions) $20.5 $21.5 (1) YOY Change -7% 14% Tangible Book Value (TBV)(2) $21.74 YOY Change + $0.70 Return on Avera
Slide 3: Q1 2018 Consolidated Results
Q1 2018 Consolidated Results GAAP vs. Adjusted EPS(1) $0.80 $0.70 $0.67 $0.60 $0.62 $0.64 $0.64 $0.59 $0.58 $0.55 Q1 2018 Net Income to Common Shareholders of $0.50 $0.55 $20.5 million, and Diluted Earnings Per Common Share of $0.64. $0.40 $0.48 • $0.67 of diluted EPS from the Community EPS $0.30 Bu
Slide 4: Q1 2018 Highlights: Community Business Banking Segment
Q1 2018 Highlights: Community Business Banking Segment Community Business Bank Segment GAAP vs. Adjusted EPS(1) $0.80 $0.70 $0.73$0.72 Community Business Banking segment Q1 2018 profits of $0.68$0.68 $0.67 $0.60 $0.63 $21.5 million ($0.67 per diluted share) $0.58 $0.67 $0.50 $0.64 • YOY adjusted EPS
Slide 5: Q1 Highlights and 2018 Outlook
Q1 Highlights and 2018 Outlook Q1 2018 Highlights • Superior expense management offset NIM compression • Pristine credit quality • 6.5% YOY loan growth, driven by 23% growth in C&I lending and 11% in mortgage warehouse • 4.0% YOY decline in total deposits, largely reflecting 26% decline in high cost
Slide 6: Top Strategic Priorities
Top Strategic Priorities • Grow and Successfully Divest BankMobile in 2018 • Announced on October 19, 2017 plans to spin-off BankMobile to shareholders and then merge BankMobile into Flagship Community Bank • Flagship has filed an application with the FDIC for its acquisition of BankMobile’s deposit
Slide 7: Q1 2018 NIM: -12 bps sequentially; -6 bps from Q1 2017
Q1 2018 NIM: -12 bps sequentially; -6 bps from Q1 2017 Net Interest Income FTE NIM(1) narrowed 12 bps sequentially to 2.67% $68.6 $68.0 $68.3 • ~ 6 bps reduction from lower prepayments $65.0 $62.4 3.80% 3.97% • Q1 2018 prepayments totaled $575,000 (2 bps benefit) vs. 3.77% 3.97% 3.64% $1.163 million
Slide 8: Q1 2018 Loans and Deposits
Q1 2018 Loans and Deposits Loan Growth Deposit Growth 1.14% 1.2% $12.0 1.07% 4.26% 4.10% 1.0% Deposits ($ in Billions) $10.0 $12 3.88% 3.76% 3.81% 3.98% 4.5% Cost of Deposits 4.0% 0.76% $10 $8.0 0.70% 0.8% 3.5% 0.66% 0.64% Loans ($ in Billions) $0.3 $0.3 $0.3 Yield on Loans $8 $0.4 3.0% $6.0 $2.8 $1
Slide 9: Outstanding Loan Quality Portfolio
Outstanding Loan Quality Portfolio Credit metrics remain better than peers NPL Charge Offs 3.00% 0.80% 2.64% 0.68% 0.70% 2.50% 2.06% 0.60% 2.00% 1.70% 1.70% 0.48% 0.45% 0.47% 0.50% 0.42% 1.48% 1.50% 1.30% 0.40% 1.18% 0.30% 0.92% 0.85% 0.30% 1.00% 0.80% 0.19% 0.60% 0.16% 0.20% 0.15% 0.15% 0.50% 0.30%
Slide 10: Superior Operating Efficiency and Costs
Superior Operating Efficiency and Costs Our operating costs as a percentage of assets are 125 bps lower than peers Total Operating Costs as a % of Assets (1) 3.50% 3.26% 3.18% 3.13% 3.08% 2.98% 3.00% 2.86% 2.50% 2.64% 2.58% 2.56% 2.43% 2.00% 1.50% 1.00% 0.50% 2.13% 1.75% 1.48% 1.44% 1.27% 1.35% 0.00
Slide 11: Investment Proposition
Investment Proposition Highly Focused, Innovative, Relationship Banking Based Commercial Bank Providing; Business bank with a unique private banking service model; over $10 billion in assets and growing Strong Organic Growth, Well Capitalized, Branch Lite Bank in Attractive Markets Highly skilled te
Slide 12: Customers Bank
Customers Bank Executing On Our Unique High Performing Banking Model 12
Slide 13: Contacts
Contacts Company: Robert Wahlman, CFO Tel: 610-743-8074 rwahlman@customersbank.com Jay Sidhu Chairman & CEO Tel: 610-301-6476 jsidhu@customersbank.com Bob Ramsey Director of IR and Strategic Planning Tel: 484-926-7118 rramsey@customersbank.com 13
Slide 14: 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 15: Forward-Looking Statements
Forward-Looking Statements • 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 Bank; • ch
Slide 16: Forward-Looking Statements
Forward-Looking Statements • 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 implement chang
Slide 17: 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. These n
Slide 18: Reconciliation of Non-GAAP Measures - Unaudited
Reconciliation of Non-GAAP Measures - Unaudited Adjusted Net Income to Common Shareholders - Customers Bancorp, Inc. Consolidated ($ in thousands, not including per share amounts) Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 USD Per Share USD Per Share USD Per Share USD Per Share USD Per Share GAAP net i