Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Investor Presentation (September 2013)
28 slides from Customers Bancorp's investor presentation, Sep 3, 2013
Slide 1: Committed to Shareholder Value Creation
Exhibit 99.1 Committed to Shareholder Value Creation September 2013 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 § timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; § changes in consumer spending, borrowing and saving habits; § technological changes; § our ability to grow, increase market share
Slide 4: Forward Looking Statements
Forward Looking Statements Any decision to invest in the Company’s securities should be made after reviewing an Offering Memorandum, conducting such investigations as the investor deems necessary or appropriate, and consulting the investor’s own legal, accounting, tax, and other advisors in order to
Slide 5: Investment Highlights
Investment Highlights Clean Profitable § $3.8 billion asset bank with non-covered NPAs less than .70% Bank in § ROA of 0.90% - 1.00% and ROE of 10% or greater Attractive § Attractive target market from Boston to Washington D.C. along Interstate 95 Markets Experienced § Senior management team with an
Slide 6: Current Company Overview
Current Company Overview § $3.8 bn institution with 18 sales offices with target Current Markets market from Boston to Washington D.C. – Additional 6 branches from CMS post close § Operating in key Mid-Atlantic and Northeast markets – New York City area (Westchester County and Manhattan) – Philadelp
Slide 7: Customers Bank Advantage - Single Point of Contact Banking
Customers Bank Advantage - Single Point of Contact Banking Cash Management Single point of contact banking Residential Real Estate Private / Credit Personal Cards Bankers Client Client Makes Commercial One Call Real Estate Concierge Banking Commercial Banking Retail High Touch supported by Branches
Slide 8: Disciplined Model for Superior Shareholder Value Creation
Disciplined Model for Superior Shareholder Value Creation § Build tangible book value per share each quarter § Above average and consistent revenue growth, resulting in above average EPS growth § A clear and simple risk management driven business strategy § Above average to average ROAA and ROAE § P
Slide 9: Enhancing Shareholder Value by Growing Tangible Book Value
Enhancing Shareholder Value by Growing Tangible Book Value § Per share tangible book value up 58% since June 2010 § Management focused on continuous growth of TBV § Strategies and key decisions are framed by estimated effect on per share TBV § Customers growth strategy is directed to increasing earn
Slide 10: Strong Capital Levels Enable EPS Growth
Strong Capital Levels Enable EPS Growth Equity § Strong capital enables asset and deposit growth § Customers raised $200+ million of equity capital in past year at book value or better. § Current capital levels will provide for over $1.0 billion + of growth (assumes risk weighted assets are 90% of t
Slide 11: Results of Disciplined and Profitable Growth
Results of Disciplined and Profitable Growth § Strategy has produced superior growth in revenues and earnings Revenue ($mm) Net Interest Income ($mm) CAGR: 99% CAGR: 93% Adjusted PTPP Earnings ($mm) (1) Core EPS (2) CAGR: 95% CAGR: 184% Source: SNL Financial and Company data. (1)Adjusted PTPP earnin
Slide 12: Loan Portfolio: High Growth With Strong Credit Quality
Loan Portfolio: High Growth With Strong Credit Quality § High credit quality derives from Customers’ underwriting standards and conservative loan mix § Loan portfolio has grown rapidily while credit quality has improved § No losses on loans originated since new management team took over Loan Portfol
Slide 13: Minimal Credit Issues
Minimal Credit Issues § No charge-offs on loans originated since 2009 § Less than 0.70% of NPAs from non-FDIC covered and acquired loans § Strong credit and risk management cultures ($ in millions) Non-covered Nonperforming Assets Source: Company documents. 13 *Excludes accruing TDRs and loans 90 da
Slide 14: Deposits: Organic Growth With Controlled Costs
Deposits: Organic Growth With Controlled Costs § Customers strategies of single point of contact and recruiting known teams in target markets produce rapid deposit growth with low cost Average DDA Growth Cost of Deposits Deposits per Branch CAGR (21%) CAGR 34% 14 Source: Company data.
Slide 15: Highly Efficient Cost Structure
Highly Efficient Cost Structure § +20% more efficient than peers leading to higher ROAE vs. peers Efficiency Ratio: Customers Bancorp vs. Peers Customers Peers Source: SNL Financial and Company data. Peers consists of Northeast and Mid-Atlantic banks and thrifts with assets between $2.0 billion and
Slide 16: Critical Success Factors Drive Business Strategy and Superior Performance
Critical Success Factors Drive Business Strategy and Superior Performance § High Credit Quality - ensures low non-performers and charge offs. § Revenues 2X Expenses - gets bank to 50% or less efficiency ratio through positive operating leverage. § Customers Come First - results in strong relationshi
Slide 17: Key Financial Targets
Key Financial Targets § Targets were made public in 2009 § Management’s commitment is to build on its accomplishments and continuously improve the company’s financial performance 17
Slide 18: High Quality Board of Directors
High Quality Board of Directors § A strong risk management culture begins with the Board of Directors § Customers’ engaged and accomplished Board of Directors provides strategic input and oversight Name Position Background Jack Miller, CPA Director • Former Vice Chairman of KPMG (Financial Expert) •
Slide 19: Strong Risk Management Culture
Strong Risk Management Culture § Seasoned management team with the board develops strategy and it’s execution Years of Banking Name Title Experience Background Jay S. Sidhu Chairman & CEO 35 Chairman and CEO of Sovereign Bank & Sovereign Bancorp, Inc. EVP, Commercial Middle Market, Regional Presiden
Slide 20: Comparison with Two Highly Successful Banks (Similar Banking Models)
Comparison with Two Highly Successful Banks (Similar Banking Models) Signature Bank SBNY - (5 year 440+% Shareholder Value) Customers Bancorp CUBI - (3 year % Shareholder Value) Asset Size / Growth Asset Size / Growth Total Assets (MRO) $18.0billion Total Assets (MRO) $4.0billion 5 yr CAGR Deposits
Slide 21: Comparison with Two Highly Successful Banks (Similar Banking Models)
Comparison with Two Highly Successful Banks (Similar Banking Models) Texas Capital Bancshares TCBI - (5 year 316% Shareholder Value) Customers Bancorp CUBI - (3 year % Shareholder Value) Asset Size / Growth Asset Size / Growth Total Assets (MRO) $10.0billion Total Assets (MRO) $4.0billion 5 yr CAGR
Slide 22: Summary
Summary § Clean high performing ~$4.0 billion bank with significant growth opportunities § Shareholder value results from the combination of increasing tangible book value with strong and consistent earnings growth § Customers has delivered increases in TBV and earnings each quarter over the past th
Slide 23: Appendix
MUSAT WS. 08.2 Appendix Customers Bancorp, Inc.
Slide 24: Federal Reserve Bank ("FRB") Referral
Federal Reserve Bank (“FRB”) Referral § For 2011 and 2012 lending activities, the FRB of Philadelphia (the “FRB”) believes Customers Bank may have been redlining Philadelphia County § Pursuant to FRB policy, all circumstances where the agency believes a bank may have been redlining must be referred
Slide 25: Investment in Religare
Investment in Religare § Customers Bancorp Inc., the holding company for Customers Bank, has announced it is making an equity investment in Religare Enterprices Limited (“Religare”) § Religare is a leading non-bank financial services company in India which is applying for a banking license in India.
Slide 26: Peer Group Comparison
Peer Group Comparison High Performance Regional Peers Source: SNL Financial, Company documents. Market data as of 5/6/13. Consists of Northeast and Mid-Atlantic banks and thrifts with assets between $2.0 billion and $6.0 billion and most recent quarter core ROAA greater than 90bps. Excludes merger t
Slide 27: The Thesis on Current U.S. Banking Environment
The Thesis on Current U.S. Banking Environment Credit Improving - Though Banks Face a Capital Accumulation Continues To Number of Operational Headwinds Create Deployment Challenges ¡ Credit Improving } NPAs and NCOs generally declining across the sector ¡ Asset Generation } Banks are starved for int
Slide 28: Customers Bancorp, Inc.
Customers Bancorp, Inc. 28
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