Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Investor Presentation (October 2014)
33 slides from Customers Bancorp's investor presentation, Oct 21, 2014
Slide 1: Highly Focused, Low Risk, Above Average Growth Bank Holding Company
Exhibit 99.2 Highly Focused, Low Risk, Above Average Growth Bank Holding Company Investor Presentation NASDAQ: October 2014 CUBI Note: All information in this document has been adjusted for the10% stock dividend that was declared on May 15, 2014 to shareholders of record on May 27th payable on June
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 • the ability to increase market share and control expenses; • continued volatility in the credit and equity markets and its effect on the general economy; and • the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as we
Slide 4: Our Biggest Advantage: A Highly Experienced Management Team
Our Biggest Advantage: A Highly Experienced Management Team 4
Slide 5: Investment Proposition
Investment Proposition High Organic Growth, Well Capitalized, Low Risk, Branch Lite Bank in Attractive Markets § $6.5 billion asset bank § Well capitalized at an estimated 11.0% + total risk based capital and 6.8% tier 1 leverage § Target market from Boston to Washington D.C. along interstate 95 Str
Slide 6: Investment Proposition: Low Interest Rate Risk, Attractive Valuation
Investment Proposition Low Interest Rate Risk § Approximately 40% of the loan portfolio will re-price within one year (1) § 40% of loans have an average life of 3.8 years § ~16% of deposits, on average, are non-interest bearing § Extending liabilities at this time § $150 million in forward starting
Slide 7: Customers Bancorp Will Become A Stronger Performer
Customers Bancorp Will Become A Stronger Performer Return on Average Assets Return on Average Equity Efficiency Ratio NPAs Source: SNL Financial on an LTM basis as of 4Q2013 7
Slide 8: Execution Timeline
Execution Timeline § We invested in and § Enhanced credit and risk § Recruited proven lending § Single Point of Contact took control of a $270 management teams Private Banking model million asset executed - commercial § Developed infrastructure § Built out Commercial and focus Customers Bank (FKA fo
Slide 9: Disciplined Model for Superior Shareholder Value Creation
Disciplined Model for Increasing Shareholder Value Disciplined Model for Superior Shareholder Value Creation § Strong organic revenue growth + scalable infrastructure = sustainable double digit EPS growth and increased shareholder value § A very robust risk management driven business strategy § Buil
Slide 10: Business Banking Strategy and Consumer Banking Strategy
Banking Strategy Business Banking Strategy - ~95% of revenues come from business • Loan and deposit business through these segments: • Banking Privately Held Businesses • Banking High Net Worth Families • Banking Mortgage Companies Consumer Banking Strategy • Principal focus is getting deposits in a
Slide 11: Consumer Deposit Strategy - High Touch, High Tech
Consumer Deposit Strategy - High Touch, High Tech Concierge Banking Sales Force Pricing Technology § Takes banker to the § Experienced § Low cost banking § Implementation of customer’s home or bankers who own a model allows for technology suite office, 12 hours a portfolio of more pricing allows for
Slide 12: Results of Deposit Growth: Organic Growth With Controlled Costs
Results of Deposit Growth: Organic Growth With Controlled Costs Customers strategies of single point of contact and recruiting known teams in target markets produce rapid deposit growth with low total cost Total Deposit Growth ($mm) Average DDA Growth ($mm) Source: Company data. 12
Slide 13: Customers Bank Advantage: Single Point of Contact
Customers Bank Advantage Single Point of Contact Private / All Consumer Personal Products Client Bankers Client Makes All Business One Concierge Products Call Bankers All Non-Credit High Touch / High Tech Products Loan Portfolio Mix ($mm) 13
Slide 14: C&I & Owner Occupied CRE Banking Strategy
C&I & Owner Occupied CRE Banking Strategy Banking Privately Held Business Small Business §Target companies with less than $5.0 million annual revenue §Principally SBA loans originated by small business relationship managers or branch network §Current focus PA & NJ markets Private & Commercial §Targe
Slide 15: Multi-Family Banking Strategy
Multi-Family Banking Strategy Banking High Net Worth Families § Focus on families that have income producing real estate in their portfolios Multi-Family Loan and Deposit Growth ($mm) § Private banking approach § Focus Markets: New York & Philadelphia MSAs § Average Loan Size: $4.0 - $7.0 million §
Slide 16: Mortgage Warehouse Banking Strategy
Mortgage Warehouse Banking Strategy Banking Mortgage Companies §Private banking focused on mortgage companies with $5 to $10 million equity §Lower interest rate and credit risk line of business §~75 strong warehouse clients §All warehouse loans classified as held for sale §All deposits are non-inter
Slide 17: Deposit and Lending Strategies Result in Disciplined & Profitable Growth
These Deposit and Lending Strategies Results in Disciplined & Profitable Growth • Strategy execution has produced superior growth in revenues and earnings Core Revenue ($mm) Net Interest Income ($mm) Core Net Income ($mm) (1) Source: SNL Financial and Company data. (1)Core income is net income befor
Slide 18: Strong Growth Provides for Shareholder Value Creation
Strong Growth Provides for Shareholder Value Creation § Per share tangible book value up consistently each year § Focused on continuous growth of TBV aligns executive management compensation with shareholder value creation § Any tangible book value dilution from acquisition must be recovered within
Slide 19: 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 § Credit Improving 4 NPAs and NCOs greatly declining across the sector § Asset Generation 4 Banks are starved for interest-earning assets and explor
Slide 20: Customers Bank Views Itself As An Innovator
Customers Bank Views Itself As An Innovator That Is Poised To Take Advantage Of Changes Taking Place In The Industry • Changes in technology have resulted in the digitization of consumer and business transactions and automation of the payment system • Technology dependent consumers and small busines
Slide 21: bankmobile - A Division Of Customers Bank
Customers Bancorp, Inc. bankmobile A Division Of Customers Bank 21
Slide 22: 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 23: Mobile Banking - Creating a Virtual Bank for the Future
Mobile Banking - Creating a Virtual Bank for the Future § New no fee banking vertical supplementing Consumer and Community Banking § Marketing Strategy § Reach markets through Affinity Banking Groups § Revenue generation from debit card interchange and margin from low cost core deposits § We are als
Slide 24: Key Financial Targets for the Next 2-3 Years
Key Financial Targets for the Next 2-3 Years Focus in future years •Single point of contact model - “High touch supported by high tech” •Only superior credit quality niches Criteria 2 - 3 Year Targets •Above average organic growth •Expense management Earnings per share growth estimated at ~ 17% year
Slide 25: Summary
Summary § Strong high performing $6.5 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 26: Regional Bank Comparison
Regional Bank Comparison High Performance Regional Banks Source: SNL Financial, Company documents. Market data as of 6/30/2014. Consists of Northeast and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion and most recent quarter core ROAA greater than 90 bps. Excludes m
Slide 27: Contacts
Contacts Company: Investor Relations: Robert Wahlman, CFO Ted Haberfield Tel: 610-743-8074 President, MZ North America rwahlman@customersbank.com Tel: 760-755-2716 www.customersbank.com thaberfield@mzgroup.us www.mzgroup.us Jay Sidhu Chairman & CEO Tel: 610-301-6476 jsidhu@customersbank.com www.cust
Slide 28: Appendix
ee Appendix Customers Bancor p, Inc.
Slide 29: Balance Sheet
B alanc e S he et Customers Bancorp, Inc. 0 CONSOLIDATED BALANCE SHEET - UNAUDITED (Dotiars in thousands) September 30, December 31, September 30, 2014 2013 2013 ASSETS Cash and due from banks $ 99,728 $ 60,709 $ 88,539 Interest-earning deposits 241,578 172,359 167,114 Cash and cash equivalents 331,
Slide 30: Income Statement
Income Statement Customers Bancorp, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED. (Oottars in thousands, except per share data) a a a 204 204 203, Interest income: ‘Loans receivable, induding fees $ 39,640 $ 200 $ 22,485 Loans held for sate 8.503 6ns 9895 Investm
Slide 31: Income Statement
Income Statement Customers Bancorp, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED - UNAUDITED {Dollars in thousands, except per share data) September 30, 2014 23 Interest income: Loans receivable, including fees $ 3216S 7.70 Loans held forsale 20,301 31,536 Investment securiti
Slide 32: Net Interest Margin
Net Intere st Margin Customers Bancorp, Inc. CC Average Balance Sheet / Net Interest Margin (Unaudited) (Dollars in thousands) Three Months Ended September 30, 2014 2013 Average yield Average yield Average Balance or cost (%) Average Balance or cost (%) Assets Interest earning deposits $ 244,013 0.2
Slide 33: Asset Quality
AS S et Quality Customers Bancorp, Inc. CC Asset Quality as of September 30, 2014 (Unaudited) (Dollars in thousands) Non Other Real Performing Allowance Total Total Non Accrual Estate Assets forloan Cash Credit NPL's! Reserves to Loan Type Total Loans INPL's Owned (NPA's) losses Reserve Reserves Tot
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