19 slides from Customers Bancorp's shareholder meeting presentation, Jun 27, 2012
Slide 1: Annual Shareholders Meeting
Annual Shareholders Meeting June 27, 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 $2.0 billion in assets, 14 branches in suburban Philadelphia, Hamilton, NJ and Rye, NY. Proforma, $3.0 billion assets and about $250 million in equity. § Ranked #1 Top Performing Bank in Pennsylvani
Slide 5: Timeline of Recent Events
Timeline of Recent Events § Formed bank holding company, Customers Bancorp, in April 2010 § Recruited experienced senior management and developed strategic 5 year plan Q1 2010 July 2010 September 2011 § Customers raises $60M § Acquisition of USA Bank (Port § Completion of acquisition of Berkshire Ba
Slide 6: Directors
Customers Bancorp, Inc. Customers Bancorp, Inc. and Customers Bank Name Position Background Daniel K. Rothermel Director * President and CEO of Cumru Associates, Inc. Served over 20 (Chairman of Risk Management Committee) years on the Board of Sovereign Bancorp & Sovereign Bank Jay Sidhu Chairman an
Slide 7: Management Team
Management Team § Experienced and cohesive management team with an average tenure of 30 years leadership experience § Management interests aligned with shareholders 7
Slide 8: 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 9: Franchise Overview
Franchise Overview Branch Franchise § Assets: ~$2.0 billion § Gross Loans: ~$1.5 billion § Deposits: ~$1.8 billion § Tangible Common Equity: ~$148 million All data as of March 31, 2012 Source: SNL Financial, Company data 9
Slide 10: Investment Highlights
Investment Highlights § Identified existing problems at New Century Bank in 2009 § Customers is now a well-capitalized, scalable bank; which we believe to be Strong adequately reserved for legacy issues Bank § Achieved 0.7% ROA while increasing book value per share about 35% over the last Foundation
Slide 11: 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 12: 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 13: 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 14: Lending Strategy
Lending Strategy Commercial Lending Consumer Lending Small Business Real Estate Secured Lending § Target companies with less than $5.0 million annual revenue § Home equity and residential mortgage § Loans (incl. SBA loans) originated by branch network § Conservative underwriting and specialist small
Slide 15: Bank Roll-Up Opportunity
Bank Roll-Up Opportunity § Potential Sizeable consolidation opportunity in the region Total Assets ($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 15
Slide 16: Key Financial Targets
Key Financial Targets Profitability §Return on Equity = 10% or greater §Return on Assets = .90 to 1.00% §Net Interest Margin = 3.00% to 3.25% §Efficiency Ratio = 50% Capital §Tier 1 Leverage Ratio = 8% or greater §Total-Risk Based Capital Ratio = 12% plus Balance Sheet / Revenue Mix Targets §Loan-to
Slide 17: 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 18: 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 19: Summary
Summary Experienced Management Organic Growth Platform Low Risk Profile Capital to Support Risks & Growth 19