Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Shareholder Meeting (May 2017)
20 slides from Customers Bancorp's shareholder meeting presentation, May 31, 2017
Slide 1: Highly Focused, Low Risk, Above Average Growth Bank Holding Company
Highly Focused, Low Risk, Above Average Growth Bank Holding Company Annual Shareholder Meeting Member FDIC May 31, 2017 NYSE: CUBI
Slide 2: Board of Directors
Customers Bancorp, Inc. and Customer Bank Board of Directors Name Position Background Andrea Allon Director • COO Chamber of Commerce for Greater Philadelphia (Audit Committee Financial Expert) Larry Way, CPA - retired, J.D. Director • Retired Chairman and CEO of ALCO Industries, Inc. (Chairman of t
Slide 3: 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 4: 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 5: 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 6: Investment Proposition
Investment Proposition Customers Bank’s BankMobile Division is Classified as Held for Sale in all Customers’ Consolidated Financial Statements released since January 2017, Including the January and April Earnings Releases, the Form 10K as of, and for the Period Ending December 31, 2016 and the Form
Slide 7: Our Competitive Advantage: A Highly Experienced Management Team
Our Competitive Advantage: A Highly Experienced Management Team Years of Banking Name Title Experience Background Jay S. Sidhu Chairman & CEO 41 Chairman and CEO of Sovereign Bank & Sovereign Bancorp, Inc. EVP, Commercial Middle Market, Regional President and Managing Director of Corporate Richard A
Slide 8: Q1 2017 Highlights
Q1 2017 Highlights • Q1 2017 Net Income to Common Shareholders of $22.1 million Up 31.0% Over Q1 2016 • Q1 2017 Diluted Earnings Per Common Share of $0.67, Up 15.5% from Q1 2016 • Q1 2017 Net Income to Common Shareholders from Continuing Operations was $23.3 million Up 29.3% Over Q1 2016 • Q1 2017 D
Slide 9: Customers Business Model
Customers Business Model Unique “Single Point High Tech / of Contact” High Touch Model Product Branch Lite Dominance Experienced Strong Asset Leadership Quality Customers Bank = High Growth Innovator / Relationships / Superior Disruptor & Innovation Performer Approach to Winning Model Relationship d
Slide 10: Banking Strategy – Community Business Banking
Banking Strategy – Community Business Banking Very Experienced Teams Exceptional Service Risk Based Incentive Compensation Community Business Bank is Focused on the following businesses: Consumer & • Banking Privately Held Businesses – Commercial C&I loans are Residential 6% 37% of the portfolio • M
Slide 11: Performance Trend
Performance Trend $80 Net Income & Earnings Per Share $2.31 $70 $1.96 $60 $1.57 $1.55 $50 $1.30 $40 $30 $0.67 $20 $0.35 $10 $0 2011 2012 2013 2014 2015 2016 Q1 2017 Net Income Available to Common Shareholders Fully Diluted EPS CUBI KBW Regional Bank Source: SNL Financial Note: Chart begins 2/21/2012
Slide 12: Customers Bank: Executing On Our Unique High Performing Banking Model
Customers Bank Executing On Our Unique High Performing Banking Model 12
Slide 13: Results in: Organic Growth of Deposits with Controlled Costs
Results in: Organic Growth of Deposits with Controlled Costs Customers’ strategies of single point of contact and recruiting known teams in target markets produce rapid deposit growth with low total cost Total Deposit Growth ($mm) Average DDA Growth ($mm) $1,600 CAGR: 55% $8.0 CAGR: 34% $1.3 $1.5 $3
Slide 14: Lending Strategy
Lending Strategy High Growth with Strong Credit Quality § Continuous recruitment and retention of high quality teams § Centralized credit committee approval for all loans § Loans are stress tested for higher rates and a slower economy § Insignificant delinquencies on loans originated since new manag
Slide 15: Build an Outstanding Loan Quality Portfolio
Build an Outstanding Loan Quality Portfolio Asset Quality Indicators Continue to be Strong NPL Charge Offs 3.50% 3.33% 1.20% 1.09% 3.00% 2.64% 1.00% 2.50% 2.06% 1.83% 0.80% 0.68% 2.00% 1.70% 1.70% 1.44% 0.60% 0.48% 0.48% 0.45% 1.50% 1.09% 0.42% 0.91% 0.89% 0.40% 0.28% 1.00% 0.72% 0.60% 0.15% 0.19% 0
Slide 16: Build Efficient Operations
Build Efficient Operations Staff Expense Ratio Occupancy Expense Ratio 0.50% 2.00% 1.71% 1.74% 1.71% 1.73% 1.73% 0.37% 0.38% 0.38% 0.36% 1.45% 1.45% 1.43% 1.38% 1.36% 0.30% 0.39% 0.39% 0.40% 0.38% 1.03% 1.03% 0.22% 0.19% 0.35% 0.83% 0.78% 0.75% 0.15% 0.12% 1.00% 0.68% 0.11% 0.11% 0.00% 0.00% 2012 20
Slide 17: Deposit, Lending and Efficiency Strategies Result in Disciplined & Profitable Growth
Deposit, Lending and Efficiency Strategies Result in Disciplined & Profitable Growth Net Interest Income ($mm) (1) Net Interest Income Simulation (1)(2) 1Q '17 vs. 1Q '16 3.50% Estimated Increase in Net Interest Income over Growth 8% 3.00% the Next Twelve Months $300.0 CAGR: 42% 3.00% $249.5 Q4 2.50
Slide 18: Deposit, Lending and Efficiency Strategies Result in Disciplined & Profitable Growth
Deposit, Lending and Efficiency Strategies Result in Disciplined & Profitable Growth • Strategy execution has produced superior growth in revenues and earnings Efficiency Ratio(1) CAGR: -11% 90% 78% 80% 70% 59% 60% 55% 56% 48% 47% 50% 43% 40% 30% 20% 10% 0% 2011 2012 2013 2014 2015 2016 2017 Total R
Slide 19: Building Customers Bank to Provide Superior Returns to Investors
Building Customers Bank to Provide Superior Returns to Investors Tangible BV per Share (1) Recent Performance Results $24.00 $22.00 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 CAGR: 12% $20.00 ROA 0.9% 0.8% 0.9% 0.8% 1.1% $18.00 $16.00 ROCE 13.2% 13.1% 13.2% 10.5% 13.8% $14.00 $12.00 NIM 2.88% 2.83% 2.8
Slide 20: Contacts
Contacts Company: Robert Wahlman, CFO Tel: 610-743-8074 rwahlman@customersbank.com www.customersbank.com Jay Sidhu Chairman & CEO Tel: 610-301-6476 jsidhu@customersbank.com www.customersbank.com 20