Customers Bancorp, Inc · NYSE:CUBI
Customers Bancorp — Investor Presentation (May 2014)
29 slides from Customers Bancorp's investor presentation, May 5, 2014
Slide 1: Highly Focused, Low Risk, High Growth Bank Holding Company
Exhibit 99.1 Highly Focused, Low Risk, High Growth Bank Holding Company Investor Presentation NASDAQ: May 2014 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 cont.
Forwarding Looking Statements cont. § timely development and acceptance of new banking products and services and perceived overall value of these products and services by users; § volatility in the credit and equity markets and its effect on the general economy; § the potential for customer fraud, e
Slide 4: Investment Proposition: Strong, High Growth, Low Risk, Branch Lite Bank
Investment Proposition Strong, High Growth, Low Risk, Branch Lite Bank in Attractive Markets § ~$5.0 billion asset bank § Well capitalized at 11% + total risk based capital and 9% + tier 1 leverage § Target market from Boston to Washington D.C. along interstate 95 Profitability § ROA goal of 1% + an
Slide 5: Investment Proposition: Low Interest Rate Risk and Valuation
Investment Proposition Low Interest Rate Risk § Over half of the loan portfolio will re-price within one year § 40% of loans have an average life of 3.8 years § ~ 20% of deposits are non-interest bearing § Extending liabilities at this time § $150 million in forward starting swaps Valuation § Curren
Slide 6: Execution Timeline
Execution Timeline § We invested in and § Enhanced credit and risk § Recruited proven lending § Single Point of Contact took control of a $270 management teams Private Banking model million asset executed - commercial § Developed infrastructure § Built out Commercial and focus Customers Bank (FKA fo
Slide 7: What Customers Bank Stands For
What Customers Bank Stands For Vision ( our dream) “We want to build a highly successful bank that makes our customers say “WOW” Mission (the path) “We achieve our Visions by taking pride in delivering”: •Absolutely memorable service to our customers •High-touch personal or private banking supported
Slide 8: Disciplined Model for Superior Shareholder Value Creation
Disciplined Model for Increasing Shareholder Value Disciplined Model for Superior Shareholder Value Creation § Strong organic revenue growth + scalable infrastructure = sustainable double digit EPS growth § A clear and simple risk management driven business strategy § Build tangible book value per s
Slide 9: Banking Strategy
Banking Strategy Consumer Banking Strategy • Principal focus is getting deposits in a highly efficient and • unique model Introduce Bank Mobile and Prepaid business for Gen Y and under-banked; strategic partnerships for credit services Business Banking Strategy • Loan and deposit business through th
Slide 10: Consumer Deposit Strategy - High Touch, High Tech
Consumer Deposit Strategy - High Touch, High Tech § Organic deposit growth goals of 20%+ a year from consumers Concierge Banking Sales Force Pricing Technology § Takes banker to the § Experienced § Low cost banking § Implementation of customer’s home or bankers who own a model allows for technology
Slide 11: Deposits: Organic Growth With Controlled Costs
Deposits: Organic Growth With Controlled Costs Customers strategies of single point of contact and recruiting known teams in target markets produce rapid deposit growth with low total cost Total Deposit Growth ($mm) Cost of Deposits 11
Slide 12: 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 ($mm) (1) Includes C&I and owner occupied CRE loans (2) Includes No
Slide 13: Business Banking Strategy: Banking Privately Held Business
Business Banking Strategy Banking Privately Held Business Small Business Loan and Deposit Growth ($B) §Target companies with less than $5.0 million annual revenue §Principally SBA loans originated by small business relationship managers or branch network §Current focus PA & NJ markets Private & Comm
Slide 14: Business Banking Strategy: Banking High Net Worth Families
Business Banking Strategy Banking High Net Worth Families § Focus on families that have income producing real estate in their portfolios Loan and Deposit Growth ($mm) § Private banking approach § Multi Family and non owner occupied income CRE loan products § Focus Markets: New York & Philadelphia MS
Slide 15: Business Banking Strategy: Banking Mortgage Companies
Business Banking Strategy Loan and Deposit Growth ($B) 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 dep
Slide 16: 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 Net Income (1) Source: SNL Financial and Company data. 16
Slide 17: Strong Growth Provides for Shareholder Value Creation
Strong Growth Provides for Shareholder Value Creation § Per share tangible book value up 31% since December 2010 § 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 18: Highly Experienced Management Team
Highly Experienced Management Team Years of Banking Name Title Experience Background Jay S. Sidhu Chairman & CEO 35 Chairman and CEO of Sovereign Bank & Sovereign Bancorp, Inc. EVP, Commercial Middle Market, Regional President (Berks County) and Managing Richard A. Ehst President & COO 44 Director o
Slide 19: Key Financial Targets for the Next 3-5 Years
Key Financial Targets for the Next 3-5 Years Focus in future years •Single point of contact model - “High touch supported by high tech” Criteria 3 -5 Year Targets •Only superior credit quality niches •Above average organic growth •Expense management Earnings per share growth estimated at ~ 17% year
Slide 20: Always on.
(CS S) Always on.
Slide 21: Mobile Banking - Creating a Virtual Bank for the Future
Mobile Banking - Creating a Virtual Bank for the Future § New banking vertical supplementing Consumer and Community Banking § Marketing Strategy § Target technology dependent <35 years old and larger depositors >50 years old segments § Reach markets through Affinity Banking Groups § Revenue generati
Slide 22: Summary
Summary § Strong high performing ~$5.0 billion bank with significant growth opportunities § “High touch, high tech” processes and technologies result in superior growth, returns and efficiencies § Shareholder value results from the combination of increasing tangible book value with strong and consis
Slide 23: Peer Group Comparison
Peer Group Comparison High Performance Regional Peers Source: SNL Financial, Company documents. Market data as of 12/31/13. 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 75bps. Excludes merger
Slide 24: Contacts
Contacts Company Robert Wahlman, CFO Tel: 610-743-8074 rwahlman@customersbank.com www.customersbank.com Investor Relations Ted Haberfield President, MZ North America Tel: 760-755-2716 thaberfield@mzgroup.us www.mzgroup.us 24
Slide 25: Appendix
ee Appendix Customers Bancor p, Inc.
Slide 26: Balance Sheet
Balance Sheet customers¥@ Bancorp ne — CONSOLIDATED BALANCE SHEET - UNAUDITED (Dollars in thousands) March 31, December 31, March 31, 2014 2013 2013 ASSETS Cash and due from banks $ Baa $ 59,339 $ 6731 Interest earning deposits 216,923 173,729 174,409 Cash and cash equivalents 290,467 233,068 181,14
Slide 27: Income Statement
Income Statement Customers Bancorp, nc. SS CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED. (Dotiars in thousands, except per share data) a a an 24 203 23 Interest income: Loans receivable, including fees $ 28.355 $ wan $ 16,059 Loans held for sale $083 6608 10,884 Inves
Slide 28: Net Interest Margin
Net Interest Margin Customers Bancorp inc. Se Average Balance Sheet / Net Interest Margin (Unaudited) (Dollars in thousands) Three Months Ended March 31, 2014 2013 Ave ield Ave: ield Average Balance or cost (%) Average Balance or cost (%) Assets Interest earning deposits $ 187,085 0.25% $ 174,637 0.
Slide 29: Asset Quality
Asset Quality canner Banco ne rr Asset Quality as of March 31, 2014 (Unaudited) (Dollars in thousands) Other Real Non Allowance Total Total Non Accrual Estate Performing for loan Cash Credit NPL's! Reserves to Loan Type Total Loans INPL's Owned Assets losses Reserve Reserves TotallLoans Total NPL's