Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Shareholder Meeting (May 2013)
27 slides from Customers Bancorp's shareholder meeting presentation, May 29, 2013
Slide 1: Effortless Banking: 2013 Annual Shareholders Meeting
Exhibit 99.1 Effortless Banking 2013 Annual Shareholders Meeting
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: Investment Highlights
Investment Highlights § Profitable, well-capitalized $3.5 billion bank in attractive markets in New England, New York, New Jersey, and Pennsylvania § Clean bank with Non-Covered NPAs of 0.77% § 10.0% - 12.0% ROE driven by prudent organic loan growth, increased revenue and stable noninterest expense
Slide 5: Timeline of Recent Events
Timeline of Recent Events § $100 million of capital raised in early September 2012 has been deployed to profitably grow loan portfolio § Strong first quarter 2013 earnings results with core ROAA of 1.15%(1), core ROAE of 12.4%(1) § Hired a team of 6 bankers and plan on hiring 2 more in New York to r
Slide 6: Key Profitability Targets
Key Profitability Targets Criteria Target Mar 31, MRQ Peer Delta 2013 Median(3) Return on Assets 0.90% to 1.00% 1.15%(1) 1.07% 7.5% Higher Return on Equity 10% or greater 12.4%(1) 10.3% 20.4% Higher Net Interest 3.00% to 3.25% 3.26% 3.55% 8.2% Margin Lower Efficiency Ratio 50% 51% 62% 18.1% Lower Cu
Slide 7: Current Company Overview
Current Company Overview § $3.5 billion institution with 14 branches with a target market Current Markets from Boston to Washington D.C. – New York City area (Westchester County and Manhattan) Boston – Philadelphia area (Bucks, Berks, Chester, Delaware and Philadelphia Counties in southeastern Penns
Slide 8: Illustrative Five-Year Strategic Plan Envisions a $8-$10bn Asset Bank in Target Markets
Illustrative Five-Year Strategic Plan Envisions a $8-$10bn Asset Bank in Target Markets 5 Year Targets Target Asset Size ~$1.0 billion in assets Region (in billions) ~$4.0 billion in assets Pennsylvania $4.0 Boston New England $0.5-$1.0 Providence New York $1.0-$2.0 ~$3.0 billion in assets Connectic
Slide 9: Seasoned Management Team
Seasoned Management Team § Experienced and cohesive management team with an average of 30 years experience – 9 out of 15 senior executives previously worked at Sovereign § Significant management and Board ownership (~20% as of March 31, 2013) 9 *Indicates joined management team since last capital ra
Slide 10: Single Point of Contact - Our Advantage
Single Point of Contact - Our Advantage Cash Customers Cash Management Other Banks Management “Only Client” Model “Traditional Service” Model Residential Residential Real Estate Real Estate Single Point of Multiple Points of Contact Contact Credit Credit Cards Cards Commercial Banking Client Client
Slide 11: Deposit Strategy - High Touch, High Tech
Deposit Strategy - High Touch, High Tech § Deposit generation greatly driven by hiring teams of private bankers and providing them with cutting edge technology and flexible pricing authority § A business model designed to attract and retain top talent Sales Force Concierge Banking Pricing Technology
Slide 12: Delivering Organic Growth - Deposits
Delivering Organic Growth - Deposits Deposits per Branch Cost of Deposits CAGR: 34% CAGR: -22% Branch Deposit Growth Average DDA Growth CAGR: 65% CAGR: 91% Source: Company data. 12
Slide 13: Lending Strategy - Local Lending Plus Specialty Niche
Lending Strategy - Local Lending Plus Specialty Niche Commercial Lending Consumer Lending Specialty Lending Small Business Real Estate Secured Lending § Warehouse Lending § Target companies with less than § Select home equity and residential § Diversify earning assets and $5.0 million annual revenue
Slide 14: Delivering Organic Growth - Loans
Delivering Organic Growth - Loans § Experienced C&I team acquired from local and regional banks; centralized credit committee approval for all loans ($ in millions) Loans Held for Investment (excludes Warehouse Loans) Source: Company documents. (1)Consists of C&I and owner occupied CRE. 14 (2)Consis
Slide 15: Significant Warehouse Lender
Significant Warehouse Lender § Exit by larger mortgage warehouse lenders has created opportunity to provide credit at attractive spreads § Warehouse segment led by professionals with over 25+ years experience in the sector § Generally low-risk lending business due to high quality collateral, histori
Slide 16: Minimal Credit Issues
Minimal Credit Issues § No charge-offs on loans originated since 2009 § Less than 0.8% of NPAs from non-FDIC covered and acquired loans § Strong credit and risk management cultures ($ in millions) Non-covered Nonperforming Assets Source: Company documents. *Excludes accruing TDRs and loans 90 days+
Slide 17: Disciplined and Profitable Growth
Disciplined and Profitable Growth Revenue ($mm) (1) Net Interest Income ($mm) CAGR: 87% CAGR: 94% Adjusted PTPP Earnings ($mm) (2) Core EPS (3) CAGR: 190% Source: SNL Financial and Company data. (1)Revenue equals net interest income plus noninterest income. 17 (3)Core income, on a diluted per-share
Slide 18: Efficient Cost Structure
Efficient Cost Structure § 18% more efficient than peers leading to higher ROAE vs. peers Efficiency Ratio: Customers Bancorp vs. Peers (1) 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 $6.0
Slide 19: Superior Financial Returns
Superior Financial Returns § Operating leverage has created inflection point in profitability and returns Core ROAA Core ROAE (1) (1) 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 $6.0 billi
Slide 20: High Return on Investment
High Return on Investment § Return on Investment for Customers Bancorp 42% higher than peer group § Return on Investment calculated as Return on Average Equity (MRQ) divided by Price/Book Value Return on Investment 42% Higher Peer Median: 8.1% Source: SNL Financial and Company data. Market data as o
Slide 21: Enhancing Shareholder Value
Enhancing Shareholder Value § Over 50% increase in tangible book value per share in the past 11 quarters(1) CAGR: 17% BV/Share $9.66 $12.52 $13.02 $14.60 $14.98 Source: SNL Financial, Company documents. (1) December 2012 and March 2013 data includes effects of September 2012 common stock offering at
Slide 22: Bank Director Magazine 2013 Growth Leader Rankings
Bank Director Magazine 2013 Growth Leader Rankings § Ranked #1 overall by Bank Director Magazine in the 2013 Growth Leader Rankings § Rankings independently conducted by Fiserv based on commercial banks, savings banks and BHCs with assets greater than $1.0 billion Source: Bank Director Magazine, 2nd
Slide 23: Investment Highlights
Investment Highlights § Profitable, well-capitalized $3.5 billion bank in attractive markets in New England, New York, New Jersey, and Pennsylvania § Clean bank with Non-Covered NPAs of 0.77% § 10.0% - 12.0% ROE driven by prudent organic loan growth, increased revenue and stable noninterest expense
Slide 24: Appendix
Appendix Customers Bancorpalnc.
Slide 25: 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 26: GAAP Reconciliation
GAAP Reconciliation Source: Company documents. 26 (1) One-time adjustment for 1Q13 reflects $2.0 million loss due to warehouse mortgage fraud. One-time adjustment for 4Q11 reflects interest and loan commitment fee reversals due to timing differences and other miscellaneous expenses due to timing dif
Slide 27: Effortless Banking
Effortless Banking 2013 Annual Shareholders Meeting