Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Merger or Acquisition (October 2017)
10 slides from Customers Bancorp's merger presentation, October 2017
Slide 1: BankMobile Spin-Off /Merger Discussion
BankMobile Spin-Off /Merger Discussion Member FDIC
Slide 2: BankMobile Overview
BankMobile Overview • BankMobile is a completely branchless, digital bank, offering customers low cost banking services. – A fin-tech company with a bank charter – Profitability is driven by interchange income, university fees, spread from low cost deposits and controlled operating expenses – BankMo
Slide 3: History of BankMobile
History of BankMobile • 2014 – Customers Bank began expanding existing deposit delivery channels using mobile and internet technology to take advantage of the changing banking model – The resulting BankMobile division of Customers bank is a completely branchless experience, offering better products
Slide 4: BankMobile Strategic Options Overview
BankMobile Strategic Options Overview BankMobile Retain at CUBI Sell Spin/Merge Benefits: Low cost core deposit funding Quickest transaction to execute; Financially compelling for boosts liquidity and gain immediately boosts shareholders; BankMobile strengthens balance sheet; Customers' capital beco
Slide 5: Why a Spin-off /Merger is the Best Option
Why a Spin-off /Merger is the Best Option • Retention is costly. We would ideally keep BankMobile to develop further and benefit from low cost deposits, but the Durbin amendment to the Dodd-Frank Act limits interchange income for banks with assets over $10 billion. Customers would have to start char
Slide 6: BankMobile Spin-off / Merger Diagram
BankMobile Spin-off / Merger Diagram Key Steps CUBI Shareholders 1) Customers Bank dividends BMT to Flagship New Investors CUBI Shareholders 2) CUBI dividends BMT to CUBI 2 3 shareholders on a pro rata basis Flagship Raises 3) BMT merges into Flagship with BMT CUBI Equity shareholders exchanging the
Slide 7: Key Steps in Spin-off /Merger for Customers
Key Steps in Spin-off /Merger for Customers Event Target Date Sign a revised purchase and sale agreement with Flagship Community Bank October, 2017 Flagship raises new equity capital, and files an application with the FDIC to 4Q17 acquire BankMobile deposits Prepare SEC filings for spin-off of BankM
Slide 8: 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 9: 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 10: 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
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