Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Investor Presentation (November 2013)
30 slides from Customers Bancorp's investor presentation, Nov 18, 2013
Slide 1: High Tech Supported by High Touch: Focused on Delivering Profitable Growth
* “High Tech Supported by High Touch” Focused on Delivering Profitable Growth November 2013
Slide 2: 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 statements relate to future event
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 and co
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
Slide 5: Investment Proposition
* Investment Proposition ~$4.0 billion asset bank with year-to-date ROA of .95% and ROE of 9.64% and equity to assets of 10% Non-performing assets not covered by FDIC under .60% Target community bank market from Boston to Washington D.C. along Interstate 95 Clean Profitable Bank in Attractive Market
Slide 6: Current Company Overview
* Current Company Overview Source: SNL Financial and Company data. Note: Branch proposed in northeastern Philadelphia. *Source: Company Documents. Represents deposits pro forma for the acquisition of CMS Bancorp (expected to close in Q1 2014). Actual deposits transferred may be different. ~$4.0 bn i
Slide 7: Disciplined Model for Superior Shareholder Value Creation
* Disciplined Model for Superior Shareholder Value Creation Build tangible book value per share each quarter via earnings 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 R
Slide 8: Customers Bank Advantage – Single Point of Contact Banking
* Customers Bank Advantage – Single Point of Contact Banking Cash Management Residential Real Estate Credit Cards Commercial Real Estate Commercial Banking Retail Branches Client Makes One Call Client High Touch supported by High Tech Single point of contact banking Private / Personal Bankers Concie
Slide 9: Enhancing Shareholder Value by Growing Tangible Book Value Per Share
* Enhancing Shareholder Value by Growing Tangible Book Value Per share tangible book value up 34% since December 2009 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 earnin
Slide 10: Strong Capital Levels Enable EPS Growth
* Strong Capital Levels Enable EPS Growth Strong capital enables asset and deposit growth Customers raised $200+ million of equity capital in past 15 months at book value or better Current capital levels will provide for over $1.0 billion of growth (assumes risk weighted assets are 90% of total asse
Slide 11: Results of Disciplined and Profitable Growth
* Results of Disciplined and Profitable Growth Revenue ($mm) Adjusted PTPP Earnings ($mm) (1) Core Net Income ($mm) (2) Source: SNL Financial and Company data. Adjusted PTPP earnings is calculated as: Pretax earnings + provision expense + adjustments for realized gains, nonrecurring revenue, and non
Slide 12: Loan Portfolio: High Growth With Strong Credit Quality
* Loan Portfolio: High Growth With Strong Credit Quality Loan Portfolio Mix & Yield ($mm) Centralized credit committee approval for all loans Average C&I loan < $2.0 million Average Multi-family loans < $5 million; concentrated in New York City ~90 strong warehouse clients Warehouse loans structured
Slide 13: Minimal Credit Issues
* No charge-offs on loans originated since 2009 Less than 0.60% of NPAs from non-FDIC covered and acquired loans Strong credit and risk management cultures Minimal Credit Issues Source: Company documents. *Excludes accruing TDRs and loans 90 days+ past due and still accruing. Non-covered Nonperformi
Slide 14: Deposits: Organic Growth With Controlled Costs
* Deposits: Organic Growth With Controlled Costs Source: Company data. Total Deposit Growth ($mm) Average DDA Growth ($mm) Cost of Deposits Deposits per Branch ($mm) Customers strategies of high tech supported by single point of contact and recruiting known teams in target markets produce rapid depo
Slide 15: Highly Efficient Cost Structure
* Highly Efficient Cost Structure 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 billion and most recent quarter core ROAA greater than 90bps. Efficiency ratio calculated as noninterest expense and noni
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 relationships,
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
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 Customers Bancorp, Inc. Name Position Background Jack Miller, CPA (Retired) Director (Financial Expert)
Slide 19: Strong Risk Management Culture
* Strong Risk Management Culture Seasoned management team with the board develops strategy and its execution Name Title Years of Banking Experience Background Jay S. Sidhu Chairman & CEO 35 Chairman and CEO of Sovereign Bank & Sovereign Bancorp, Inc. Richard A. Ehst President & COO 44 EVP, Commercia
Slide 20: Comparison with Two Highly Successful Banks (Similar Banking Models)
* Comparison with Two Highly Successful Banks (Similar Banking Models)
Slide 21: Comparison with Two Highly Successful Banks (Similar Banking Models)
* Comparison with Two Highly Successful Banks (Similar Banking Models)
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 three
Slide 23: Appendix
MUN ATs 205. Appendix Customers¥3 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 to
Slide 25: Investment in Religare
* Investment in Religare Customers Bancorp Inc., the holding company for Customers Bank, has purchased 4.1 million Religare Enterprises Limited (“Religare”) common shares for $23 million Religare is a leading non-bank financial services company in India which is applying for a banking license in Ind
Slide 26: Peer Group Comparison
* Peer Group Comparison High Performance Regional Peers Source: SNL Financial, Company documents. Market data as of 6/30/13. 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 merge
Slide 27: Balance Sheet
Balance Sheet Customers Bancorp, Inc. a ‘CUSTOMERS BANCORP, INC. AND SUBSIDIARIES ‘CONSOLIDATED BALANCE SHEET - UNAUDITED (Dotaromountsin thousands, except per shore dota) ASSETS Cash & Due From Banks 8 a3s2 $ 12908 Interest aming Deposits 167321 173,108 Federal Funds old Cash and Cash Equivalents 7
Slide 28: Income Statement
Income Statement Customers Bancorp, Inc. ——— {oot omoun nso ep pert cte), Tresor Sams er ses a Intestine Seiten te 1 ca a $96 Tousen cone Bs me sa ea eres apes: Inert sce slur Agere epee Inert Goer Bormge ron ey so o Texter pene 0 San nan ian ect Bt m5 501 saat? ‘roland oe a ite hem ea ‘etter ames)
Slide 29: Net Interest Margin
Net Interest Margin Customers Bancorp, Inc. a eee Customers Bancorp, Inc. and Subsidiaries Net Interest Income (Doller amounts in thousands) Three Months Ended September 30, Ear) 7a Interest income or Average yield or Interest income or Average yield or ‘Average Balance expense cost (4) Average Bala
Slide 30: Customers Bancorp, Inc.
Customers Bancorp, Inc. 30
Customers Bancorp — Investor Presentation (November 2013) on 6ix