Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Investor Presentation (January 2015)
38 slides from Customers Bancorp's investor presentation, Jan 27, 2015
Slide 1: Highly Focused, Low Risk, Above Average Growth
Highly Focused, Low Risk, Above Average Growth Bank Holding Company Investor Presentation January, 2015 NYSE: CUBI
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 • continued volatility in the credit and equity markets and its effect on the general economy; • the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financia
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation also includes estimated guidance regarding our fully diluted earnings per share for the year 2015, which we have previously disclosed and is subject to the assumptions and qualifications included in that previous disclosure. The guidance consists solely o
Slide 5: Investment Proposition
Investment Proposition Strong Organic Growth, Well Capitalized, Branch Lite Bank in Attractive Markets § $6.8 billion asset bank with only 19 sales offices § Well capitalized at 11.2% total risk based capital (estimated), 6.7% tier 1 leverage, and 6.4% tangible equity to tangible assets § Target mar
Slide 6: Creating Shareholder Value
Creating Shareholder Value Our shareholder value creation strategy optimizes earnings growth, ROE and book value accretion § Build a high credit quality loan portfolio by marketing to high quality borrowers and charging them a little less interest rate § Build a stable core deposit platform by payin
Slide 7: Branches and Loan Production Offices
Branches and Loan Production Offices Current Company Overview Source: SNL Financial and Company data. Note: Branch proposed in northeastern Philadelphia ~$6.8 bn Business Bank with 19 sales offices with target market from Boston to Philadelphia Operating in key Mid-Atlantic and Northeast markets § G
Slide 8: Our Competitive Advantage: A Highly Experienced Management Team
Our Competitive Advantage: A Highly Experienced Management Team
Slide 9: Execution Timeline
Execution Timeline § We invested in and took control of a $270 million asset Customers Bank (FKA New Century Bank) § Identified existing credit problems, adequately reserved and recapitalized the bank § Actively worked out very extensive loan problems § Recruited experienced management team § Enhanc
Slide 10: Banking Strategy
All Consumer Products All Business Products All Non-Credit Products Client Makes One Call Client Private / Personal Bankers Concierge Bankers Banking Strategy Business Banking Focus - ~95% of revenues come from business segments • Loan and deposit business through these segments: • Banking Privately
Slide 11: Deposit Strategy - High Touch, High Tech
Cost of Funds + Branch Operating Expense - Fees = ALL-IN-Cost < Competitors Technology Pricing Sales Force Concierge Banking Deposit Strategy - High Touch, High Tech § Implementation of technology suite allows for unique product offerings: § Remote account opening & deposit capture § Internet/mobile
Slide 12: Deposit Rates and Deposit and Borrowing Mix
Deposit Rates Deposit and Borrowing Mix Pay a Little More for Core Deposits, Emphasize DDA’s Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Peer: 11% Peer: 89% • Borrowings pr
Slide 13: Total Deposit Growth and Average DDA Growth
Total Deposit Growth ($mm) Average DDA Growth ($mm) 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
Slide 14: Lending Strategy
Lending Strategy High Growth with Strong Credit Quality § Continuous recruitment of high quality teams § Centralized credit committee approval for all loans § Loans are stress tested for higher rates and a slower economy § No losses on loans originated since new management team took over § Creation
Slide 15: Loan Product Mix
Loan Product Mix Accept a Little Less Yield from Strong Credit Quality Customers Loan Quality, Product Mix, Duration and Collateral Influences Yield Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billi
Slide 16: NPL Charge Offs
NPL Charge Offs Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insured banks. Peer and Industry data as of Sep 2014 pending final CALL reports.
Slide 17: Banking Privately Held Business
Banking Privately Held Business C&I & Owner Occupied CRE Banking Strategy Private & Commercial Banking § Target companies with up to $100 million annual revenues § Very experienced teams § Single point of contact § NE, NY, PA & NJ markets Small Business § Target companies with less than $5.0 million
Slide 18: Banking High Net Worth Families
Banking High Net Worth Families Multi-Family Loan and Deposit Growth ($mm) Multi-Family Banking Strategy § Focus on families that have income producing real estate in their portfolios § Private banking approach § Focus Markets: New York & Philadelphia MSAs § Average Loan Size: $4.0 - $7.0 million §
Slide 19: Banking Mortgage Companies
Banking Mortgage Companies Mortgage Warehouse Banking Strategy § Private banking focused on mortgage companies with $5 to $10 million equity § Very strong credit quality relationship business with good fee income and deposits § ~75 strong warehouse clients § All outstanding loans are variable rate a
Slide 20: Build Efficient Operations
Staff Expense Ratio Occupancy Expense Ratio Total Costs as a % of Assets Total Revenue per Employee ($000s) Assets per Employee ($mm) Build Efficient Operations Source: SNL Financial, Company documents. Peer data consists of Northeast, Southeast, and Mid-Atlantic banks and thrifts with assets betwee
Slide 21: Disciplined & Profitable Growth
Core Revenue ($mm) Core Net Income ($mm) (1) Net Interest Income ($mm) Income / Expense Growth ($mm) Deposit, Lending and Efficiency Strategies Results in Disciplined & Profitable Growth (1) Core income is net income before extraordinary items. (2) CAGR calculated from Dec-09 to Sep-14 (annualized).
Slide 22: Building Customers to Provide Superior Returns to Investors
Tangible BV per Share Recent Performance Results Financial Performance Targets Earnings per Share Guidance / Valuation Multiples Source: Building Customers to Provide Superior Returns to Investors Source: Company documents.
Slide 23: Customers Bancorp, Inc. - BankMobile
Customers Bancorp, Inc. barkmeblle TIONARY bankmobile A Division Of Customers Bank
Slide 24: Startling Facts about Banks
Startling Facts about Banks § Banks each year charge $32 billion in overdraft fees - that’s allowing or creating over 1 billion overdrafts each year….Why?? § Payday lenders charge consumers another $7 billion in fees § That’s more than 3x what America spends on Breast Cancer and Lung Cancer combined
Slide 25: Creating a Virtual Bank for the Future for Consumers
§ New no fee banking, 25 bps higher interest savings, line of credit, 55,000 ATM’s, Personal Banker and more, all in the palm of your hand § Marketing Strategy § Target technology dependent younger consumers; including underserved / underbanked and middle income Americans § Capitalize on retaining a
Slide 26: App features at launch
App features at launch • Photo bill pay • P2P payments • Remote check deposit • Debit card on/off • Account balance quick access • 4 digit password • ATM Locator • Artificial intelligence knowledge base • Part of Apple Pay • Phase 1
Slide 27: App screenshots
App screenshots • Welcome screen & Onboarding
Slide 28: App screenshots
App screenshots • Some Features/Functionalities
Slide 29: Welcome to the Banking Revolution
Customers Bancorp, Inc. b Welcome to the Banking Revolution
Slide 30: Summary
Summary § Strong high performing $6.8 billion bank with significant growth opportunities § Very experienced management team delivers strong results § Ranked #1 overall by Bank Director Magazine in the 2012 and 2013 Growth Leader Rankings § “High touch, high tech” processes and technologies result in
Slide 31: Contacts
Contacts Company: Robert Wahlman, CFO Tel: 610-743-8074 rwahlman@customersbank.com www.customersbank.com Jay Sidhu Chairman & CEO Tel: 610-301-6476 jsidhu@customersbank.com www.customersbank.com Investor Relations: Ted Haberfield President, MZ North America Tel: 760-755-2716 thaberfield@mzgroup.us w
Slide 32: Customers Bancorp, Inc.
Customers @= Bancorp, Inc.
Slide 33: Consolidated Balance Sheet - Unaudited
Customers Bancorp, Inc. ‘CONSOLIDATED BALANCE SHEET- UNAUDITED {Doers n thousands) December3t, December 31, 213 assers ‘cash and due from banks S$ ame $ eno Interest eaming deposi sogz7r 172359 ‘ash and ash equivalents Sra 753,008, Investment securities avaiable forsale, at faivalue ages a7 573 toon
Slide 34: Income Statement
Income Statement (1) Earnings per share amounts have been adjusted to give effect to the 10% common stock dividend declared on May 15, 2014 and issued on June 30,2014.
Slide 35: Income Statement
Income Statement (1) Earnings per share amounts have been adjusted to give effect to the 10% common stock dividend declared on May 15, 2014 and issued on June 30,2014.
Slide 36: Average Balance Sheet / Net Interest Margin - Three Months
Customers Bancorp, Inc. ‘Average Balance Sheet / Net interest Margin (Unaudited) (Dollars in thousands) “Three Months Ended December 31, 2014 2013, ‘Average yield ‘Average vield ‘Average Balance or cost (9) Average Balance or cost (%) Assets Interest earning deposits $ 271,556 0.26% $ 176,636 0.25%
Slide 37: Average Balance Sheet / Net Interest Margin - Twelve Months
Customers Bancorp, Inc. ‘Average Balance Sheet / Net Interest Margin (Unaudited) (Dollars in thousands) ‘Twelve Months Ended December 31, 2014 2013 ‘Average yield ‘Average yield ‘Average Balance __orcost (%) Average Balance _or cost (%) Assets Interest earning deposits $ 228,668 0.25% $ 190,298 0.25
Slide 38: Asset Quality as of December 31, 2014
Customers Bancorp, Inc. ‘Asset Quality as of December 31, 2014 (Unaudited) (Doltars in thousands) Non ‘Other Real Performing Allowance Total Total Non Accrual Estate «Assets forloan Cah Credit, NPL ~—Reservesto Loan Type: Total Loans INPL’s__Owned_(NPA’s)_lossos__Resorve_Resorves Total Loans Total N
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