Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — IPO Roadshow (September 2011)
23 slides from Customers Bancorp's IPO roadshow presentation, Sep 7, 2011
Slide 1: Issuer Free Writing Prospectus
Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration No: 333-166225 September 6, 2011 Attached is the presentation by management during the Annual Meeting of Shareholders of Customers Bank on September 6, 2011.
Slide 2: Annual Shareholders Meeting
Annual Shareholders Meeting September 6, 2011
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements, including statements about future results. These statements are subject to uncertainties and risks, including but not limited to our ability to integrate the business and operations of companies and banks that we may a
Slide 4: Forward-Looking Statements updated
Forward-Looking Statements updated 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
Slide 5: Forward-Looking Statements updated
Forward-Looking Statements updated · changes in estimates of future loan loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; · the integration of the Bank’s recent FDIC-assisted acquisitions may present unforeseen challenges; · infl
Slide 6: Where We Stand Today
Where We Stand Today § Well-capitalized bank headquartered in Wyomissing, PA with over $1.7 billion in assets, 11 branches in suburban Philadelphia, Hamilton, NJ and Port Chester, NY § Ranked #1 Top Performing Bank in Pennsylvania and #4 among America’s top performing banks with assets under $3 bill
Slide 7: Directors
Directors Name Position Background Bhanu Choudhrie Director * Executive Director of C&C Alpha Group, a London-based family private equity Group Jack Miller Director * Former Vice Chairman of KPMG Kenneth Mumma Director (former Chairman and CEO) « Former Chairman and CEO of New Century Bank Daniel K.
Slide 8: Experienced Management Team
Experienced Management Team § Highly experienced and cohesive management team with an average tenure of 30 years leadership experience § Management interests aligned with shareholders 7
Slide 9: Management Team Track Record
Management Team Track Record § Jay Sidhu, Customers Bank Chairman and CEO, served at Sovereign from 1986 to 2006 § As CEO, Mr. Sidhu oversaw the growth from a $500 million asset financially-challenged thrift to a $90 billion financial institution § Sovereign had more than 785 branch locations spanni
Slide 10: Investment Highlights
Investment Highlights § Well-capitalized, scalable and reserves for legacy credit issues Existing § Achieved stand-alone profitability organically Bank § Strong risk management culture and strategy in place Platform § New management and board members significantly invested Proven § Experience in bui
Slide 11: Strategic Initiatives
Strategic Initiatives § “High tech, high touch” model designed to take the bank to the customer § Capture market share from larger bank competitors by employing high producing team members, providing superior service, and leveraging technological infrastructure § Long-term goal, add 4 - 6 branches a
Slide 12: Deposit Strategy
Deposit Strategy § Capture market share from larger competitors by providing customers with a “high tech, high touch” customer experience Concierge Banking Sales Force Pricing Technology § Brings banker to § Top producers § Low cost banking model § Implementation of new customer, 12 hours a § Banker
Slide 13: Lending Strategy
Lending Strategy § Capitalize on management’s in-market experience with a focus on commercial lending Commercial Banking Specialty Lending Consumer Lending Small Business Business Banking § Capitalize on recent § Focus on real estate- § Target companies § Target companies with with less than $5.0 $5
Slide 14: Target Franchise Market
Target Franchise Market Target Markets Existing Markets Berks County, PA Bucks County, PA Chester County, PA Delaware County, PA Mercer County, NJ Westchester County, NY Selected Attractive Counties Lackawanna County, PA Montgomery County, PA Northampton County, PA Schuylkill County, PA Middlesex Co
Slide 15: Key Financial Targets
Key Financial Targets § Return on Equity = 10% to 12% § Return on Assets = 1.00% to 1.10% § Tier 1 Leverage Ratio = 8% to 10% § Total-Risk Based Capital Ratio = 12% plus § Loan-to-Deposit Ratio = 70% to 90% § Investments / Assets < = 25% § Borrowings / Assets < = 15% § Fee Revenue / Total Revenue =
Slide 16: Deposit Growth
Deposit Growth ($ thousands) 200.000 180.000 160,000 140,000 120.000 100,000 80.000 60.000 40.000 20.000 @ August-09 @May-11
Slide 17: Financial Highlights
Financial Highlights Cash and Investments $ 364/$ 1135 ,$ 1568|$ 4445/$ 7348 Commercial Loans 188.1 180.9 189.8 341.0 342.5 Consumer Loans 36.1 32.9 31.6 167.1 162.2 Warehouse Loans - 16.4 247.2 386.1 410.4 Allowance for Loan Losses (9.9) (10.0) (12.2) (15.1) (13.9) Purchase Credit Discount - - - (1
Slide 18: USA Bank Acquisition
USA Bank Acquisition § 1 Branch bank headquartered in Port Chester, NY § Acquired $196 million of assets and $202 million of liabilities § All loans have 80% loss sharing protection from the FDIC § Branch is near very affluent areas including Greenwich, Stamford, CT, White Plains, NY, etc. § Goal is
Slide 19: ISN Bank Acquisition
ISN Bank Acquisition § 1 Branch bank headquartered in Cherry Hill, NJ § Acquired $78 million of assets and $76 million of liabilities § All loans have 80% loss sharing protection from the FDIC § Bargain purchase gain is over $8.2 million after tax § No capital raise needed for this deal as the book
Slide 20: Berkshire Bank Acquisition
Berkshire Bank Acquisition § 5 Branch bank headquartered in Wyomissing, PA § $140 million bank with $125 million of deposits and $107 million of loans § Purchase price is book value; price adjusts lower if book value drops with a price floor; if non-performing assets increase 20% between now and clo
Slide 21: Conclusion
Conclusion § Unique bank platform; current banking dislocation provides significant opportunity for M&A growth that is supported by a strong organic business model § Management team with proven capability of integrating acquisitions and delivering above average shareholder returns § Considerable opp
Slide 22: Annual Shareholders Meeting
Annual Shareholders Meeting September 6, 2011 21
Slide 23: Customers Bank filed a registration statement on Form S-1
Customers Bank filed a registration statement on Form S-1 (File no. 333-166225) with the U.S. Securities and Exchange Commission (“SEC”) which included the prospectus for the offer and sale of securities of a bank holding company (the “Holding Company”) to shareholders of the Bank in connection with