Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
HighlyFocused,LowRisk,AboveAverageGrowthBankHoldingCompany
AnnualShareholderMeetingMay31,2017NYSE:CUBI
Member FDIC
2
CustomersBancorp,Inc.andCustomerBankBoardofDirectors
Name Position BackgroundAndrea Allon Director
(Audit Committee Financial Expert)• COO Chamber of Commerce for Greater Philadelphia
Larry Way, CPA - retired, J.D. Director(Chairman of the Audit Committee)
• Retired Chairman and CEO of ALCO Industries, Inc.
Steven J. Zuckerman Director(Chairman of Compensation Committee)
• Partner, Oak Tree Development Group
Daniel K. Rothermel, J.D. Director(Chairman Directors Risk Committee)
• Chairman of the Board of Cumru Associates, Inc.• Served over 20 years on the Board of Sovereign Bancorp & Sovereign Bank
Jay Sidhu Chairman and Chief Executive Officer • Former Chairman and CEO of Sovereign Bank and Sovereign Bancorp.• Former Chairman and CEO of SIDHU Advisors
Bhanu Choudhrie Director • Executive Director of C&C Alpha Group Limited
Rick Burkey Director • Chariman of the Board of Burkey Construction
Richard Ehst (Bank Only) Director • President and COO Customers Bank• Former President of Sovereign Bank
Sam Sidhu (Bank Only) Director • Founder and CEO of Megalith Capital Management, LLC
3
Forward-Looking Statements
Thispresentation,aswellasotherwrittenororalcommunicationsmadefromtimetotimebyus,containsforward-lookinginformationwithinthemeaningofthesafeharborprovisionsoftheU.S.PrivateSecuritiesLitigationReformActof1995.Thesestatementsrelatetofutureevents or futurepredictions,includingeventsorpredictionsrelatingtofuturefinancialperformance,andaregenerallyidentifiablebytheuseofforward-lookingterminologysuchas“believe,”“expect,”“may,”“will,”“should,”“plan,”“intend,”or“anticipate”orthenegativethereoforcomparableterminology.Forward- lookingstatementsinthispresentationinclude,amongothermatters,guidanceforourfinancialperformance,andourfinancialperformancetargets.Forward-lookingstatementsreflectnumerousassumptions,estimatesandforecastsastofutureevents.Noassurancecanbegiventhattheassumptions,estimatesandforecastsunderlyingsuchforward-lookingstatementswillaccuratelyreflectfutureconditions,orthatanyguidance,goals,targetsorprojectedresultswillberealized.Theassumptions,estimatesandforecastsunderlyingsuchforward-lookingstatementsinvolvejudgmentswithrespectto,amongotherthings,futureeconomic,competitive,regulatoryandfinancialmarketconditionsandfuturebusinessdecisions,whichmaynotberealizedandwhichareinherentlysubjecttosignificantbusiness, economic,competitiveandregulatoryuncertaintiesandknownandunknownrisks,includingtherisksdescribedunder“RiskFactors”inourAnnualReportonForm10-KfortheyearendedDecember31,2016andsubsequentQuarterlyReportsonForm10-Q,assuchfactorsmaybeupdatedfromtimetotimeinourfilingswiththeSEC.Ouractualresultsmaydiffermateriallyfromthosereflectedintheforward-lookingstatements.
Inadditiontotherisksdescribedunder“RiskFactors”inourfilingswiththeSEC,importantfactorstoconsiderandevaluatewithrespecttoourforward-lookingstatementsinclude:
• changesinexternalcompetitivemarketfactorsthatmightimpactourresultsofoperations;• changesinlawsandregulations,includingwithoutlimitationchangesincapitalrequirementsunderBaselIII;• changesinourbusinessstrategyoraninabilitytoexecuteourstrategyduetotheoccurrenceofunanticipatedevents;• ourabilitytoidentifypotentialcandidatesfor,andconsummate,acquisitionorinvestmenttransactions;• thetimingofacquisition,investmentordispositiontransactions;• constraintsonourabilitytoconsummateanattractiveacquisitionorinvestmenttransactionbecauseofsignificantcompetitionforthese opportunities;• local,regionalandnationaleconomicconditionsandeventsandtheimpacttheymayhaveonusandourcustomers;• costsandeffectsofregulatoryandlegaldevelopments,includingtheresultsofregulatoryexaminationsandtheoutcomeofregulatory orothergovernmental
inquiriesandproceedings,suchasfinesorrestrictionsonourbusinessactivities;• ourabilitytoattractdepositsandothersourcesofliquidity;• changesinthefinancialperformanceand/orconditionofourborrowers;• changesinthelevelofnon-performingandclassifiedassetsandcharge-offs;• changesinestimatesoffutureloanlossreserverequirementsbasedupontheperiodicreviewthereofunderrelevantregulatoryandaccountingrequirements;• inflation,interestrate,securitiesmarketandmonetaryfluctuations;
4
Forward-Looking Statements
• timelydevelopmentandacceptanceofnewbankingproductsandservicesandperceivedoverallvalueoftheseproductsandservicesbyusers,includingtheproductsandservicesbeingdevelopedandintroducedtothemarketbytheBankMobiledivisionofCustomersBank;
• changesinconsumerspending,borrowingandsavinghabits;• technologicalchanges;• ourabilitytoincreasemarketshareandcontrolexpenses;• continuedvolatilityinthecreditandequitymarketsanditseffectonthegeneraleconomy;• effectsofchangesinaccountingpoliciesandpractices,asmaybeadoptedbytheregulatoryagencies,aswellasthePublicCompanyAccountingOversight
Board,theFinancialAccountingStandardsBoardandotheraccountingstandardsetters;• thebusinessesofCustomersBankandanyacquisitiontargetsormergerpartnersandsubsidiariesnotintegratingsuccessfullyorsuchintegrationbeingmore
difficult,time-consumingorcostlythanexpected;• materialdifferencesintheactualfinancialresultsofmergerandacquisitionactivitiescomparedwithourexpectations,suchaswith respecttothefullrealization
ofanticipatedcostsavingsandrevenueenhancementswithintheexpectedtimeframe;• ourabilitytosuccessfullyimplementourgrowthstrategy,controlexpensesandmaintainliquidity;• CustomersBank'sabilitytopaydividendstoCustomersBancorp;• risksrelatedtoourproposedsaleofBankMobiletoFlagshipBank,including:
• ourabilitytosuccessfullycompletetheproposedsaleandthetimingofcompletion;• theabilityofCustomersandFlagshipBanktomeetalloftheconditionstocompletionoftheproposedsale;• theimpactoftheannouncementoftheproposedsaleonthevalueofoursecurities,ourbusinessandourrelationshipwithemployees and
customers;• ouruseoftheproceedsfromthesale;• theeffectonCustomers'businessiftheproposedsaleisnotcompletedandCustomersisunabletosellorotherwisedisposeofBankMobile
beforeexceeding$10billioninassets;• risksrelatingtoBankMobile,including:
• thatintegrationoftheHigherOneDisbursementbusinesswithBankMobilemaybelesssuccessful,moredifficult,time-consumingorcostlythanexpected,andthatBankMobilemaybeunabletorealizeanticipatedcostsavingsandrevenueenhancementswithintheexpectedtimeframeoratall;
• thenumberofexistingstudentcustomerswhotransfertheiraccountstoBankMobilefromoneofHigherOne'sformerbankpartners;• materialvariancesintheadoptionrateofBankMobile'sservicesbynewstudentsand/ortheusagerateofBankMobile'sservicesbycurrent
studentcustomerscomparedtoourexpectations;
5
Forward-Looking Statements
• thelevelsofusageofotherBankMobilestudentcustomersfollowinggraduationofadditionalproductandserviceofferingsofBankMobileorCustomersBank,includingmortgagesandconsumerloans,andthemixofproductsandservicesused;
• ourabilitytoimplementchangestoBankMobile'sproductandserviceofferingsundercurrentandfutureregulationsandgovernmental policies;• ourabilitytoeffectivelymanagerevenueandexpensefluctuationsthatmayoccurwithrespecttoBankMobile'sstudent-orientedbusiness
activities,whichresultfromseasonalfactorsrelatedtothehigher-educationacademicyear;• ourabilitytoimplementourstrategyregardingBankMobile,includingwithrespecttoourintenttosellorotherwisedisposeofthe BankMobile
businessinthefuture,dependinguponmarketconditionsandopportunities;and• BankMobile'sabilitytosuccessfullyimplementitsgrowthstrategyandcontrolexpenses.
Youarecautionednottoplaceunduerelianceonanyforward-lookingstatementswemake,whichspeakonlyasofthedatetheyaremade.Wedonotundertakeanyobligationtoreleasepubliclyorotherwiseprovideanyrevisionstoanyforward-lookingstatementswemaymake,includinganyforward-lookingfinancialinformation,toreflecteventsorcircumstancesoccurringafterthedatehereofortoreflecttheoccurrenceofunanticipated events,exceptasmayberequiredunderapplicablelaw.
6
InvestmentProposition
CustomersBank’sBankMobileDivisionisClassifiedasHeldforSaleinallCustomers’Consolidated
FinancialStatementsreleasedsinceJanuary2017,IncludingtheJanuaryandAprilEarningsReleases,theForm10Kasof,andforthePeriodEnding
December31,2016andtheForm10Qasof,andfortheperiodendingMarch31,2017.AmountsIncludedinthisInvestorPresentationare“Combined”,IncludingBothContinuingandDiscontinuedOperations,UnlessOtherwise
Indicated
7
OurCompetitiveAdvantage:AHighlyExperiencedManagementTeam
Name TitleYears of Banking
Experience Background
Jay S. Sidhu Chairman & CEO 41 Chairman and CEO of Sovereign Bank & Sovereign Bancorp, Inc.
Richard A. Ehst President & COO 49 EVP, Commercial Middle Market, Regional President and Managing Director of Corporate Communications at Sovereign Bank
Robert E. Wahlman, CPA Chief Financial Officer 36 CFO of Doral Financial and Merrill Lynch Banks; various roles at Bank One, US GAO and KPMG.
Steve Issa EVP, New England Market President, Chief Lending Officer 40 EVP, Managing Director of Commercial and Specialty Lending at Flagstar and Sovereign Bank.
George Maroulis EVP, Group Director of Private & Commercial Banking - NY Metro 25 Group Director and SVP at Signature Bank; various positions at Citibank and Fleet/Bank of America's
Global Commercial & Investment Bank
Timothy D. Romig EVP, Group Director of Commercial Banking - PA/NJ 33 SVP and Regional Executive for Commercial Lending (Berks and Montgomery County), VIST
Financial; SVP at Keystone / M&T Bank
Ken Keiser EVP, Director CRE and Multi-Family Housing Lending 40 SVP and Market Manager, Mid-Atlantic CRE Lending at Sovereign Bank; SVP & Senior Real Estate
Officer, Allfirst Bank / M&T Bank
Glenn Hedde EVP, President Banking for Mortgage Companies 30 President of Commercial Operations at Popular Warehouse Lending, LLC; various positions at GE
Capital Mortgage Services and PNC Bank
James Collins EVP, Chief Administrative Officer 26 Various positions at Sovereign including Director of Small Business Banking
Thomas Jastrem EVP, Chief Credit Officer 39 Various positions at First Union Bank and First Fidelity Bank
Robert B. White EVP, Chief Risk Officer 30 President RBW Financial Consulting; various positions at Citizens Bank and GE Capital
Mary Lou Scalese EVP, Chief Auditor 41 Chief Auditor at Sovereign Bank and Chief Risk Officer at Customers Bank
Michael A. De Tommaso, Esquire
VP, General Counsel and Corporate Secretary 23 Former trial attorney and in-house counsel for Univest and National Penn Bank
Karen Kirchner SVP, Director Team Member Services 29 SVP, Human Resources/CoreStates Bank- various positions including Manager for HR Business Partners, Manager of Recruitment and generalist in compensation and training
8
Q12017Highlights
Amounts presented are on a “Combined” basis unless otherwise noted.
• Q12017NetIncometoCommonShareholdersof$22.1millionUp31.0%OverQ12016
• Q12017DilutedEarningsPerCommonShareof$0.67,Up15.5%fromQ12016
• Q12017NetIncometoCommonShareholdersfromContinuingOperationswas$23.3millionUp29.3%OverQ12016
• Q12017DilutedEarningsPerCommonSharefromContinuingOperationswas$0.71forQ12017Up14.5%fromQ12016
• Q12017ReturnonAverageAssetsof1.09%
• Q12017ReturnonAverageCommonEquityof13.80%
• Pre-tax,pre-provisionROAA(1)andROACE(2)forQ12017was1.51%and20.07%respectively
• BookValuePerCommonShareof$21.62Up12.5%fromQ12016
• TotalRiskBasedCapital(estimated)of13.0%,9.0%tier1leverage,and6.7%tangiblecommonequitytoaveragetangibleassets(3)
• Q12017TotalLoansUp5.1%to$8.3billion,andTotalDepositsUp7.9%to$6.6billion,fromQ12016
• Q12017EfficiencyRatiofromContinuingOperationswas43.3%ComparedtoQ12016EfficiencyRatiofromContinuingOperationsof50.7%
• BankMobileClassifiedasHeldforSaleandReportedasDiscontinuedOperationsinFinancialReports
• Non-PerformingLoanstoTotalLoansonly.33%andReservesforLoanLosses149.85%ofNon-PerformingLoans
(1) Non-GAAP measure calculated as GAAP total shareholders equity less preferred stock, less goodwill and other intangibles divided by average total assets less average goodwill and other intangibles.(2) Non-GAAP measure calculated as GAAP net income, plus provisions for loan losses and income tax expense divided by average total assets.(3) Non-GAAP measure calculated as GAAP net income available to common shareholders, plus provision for loan losses and income tax expense divided by average common equity.
9
CustomersBank=
Relationships&Innovation
Innovator/Disruptor
ExperiencedLeadership
BranchLite
Unique“SinglePointofContact”
Model
HighTech/HighTouch
ProductDominance
StrongAssetQuality
HighGrowth/SuperiorPerformer
Customers Business Model
ApproachtoWinningModel
Relationship driven but never deviate from following critical success factors• Only focus on very strong credit quality niches
• Very strong risk management culture• Operate at lower efficiency ratio than peers to deliver sustainable strong profitability and
growth • Always attract and retain top quality talent• Culture of innovation and continuous improvement
10
Very Experienced Teams Exceptional Service Risk Based Incentive Compensation
BankingStrategy– CommunityBusinessBanking
CommunityBusinessBankisFocusedonthefollowingbusinesses:
• BankingPrivatelyHeldBusinesses– CommercialC&Iloansare37%oftheportfolio
• Manufacturing,service,technology,wholesale,equipmentfinancing,privatemidsizemortgagecompanies
• BankingHighNetWorthFamilies– MultiFamilyloansare41%oftheportfolio;NewYorkandregionalmultifamilylending
• SelectedCommercialRealEstateloansareonly16%ofportfolio
Amounts presented are on a continuing operations basis.
Non-OwnerOccupiedCRE16%
Commerical- MortgageWarehouse
21%
Commercial- C&I,OwnerOccupied
16%
MultiFamilyloans41%
Consumer&Residential
6%
Commercial37%
11
PerformanceTrend
Amounts presented are on a “Combined” basis.
Source: SNL FinancialNote: Chart begins 2/21/2012, date of first public stock quote for CUBI
CUBI
KBW Regional
Bank
$0.35
$1.57$1.30
$1.55
$1.96
$2.31
$0.67
$0
$10
$20
$30
$40
$50
$60
$70
$80
2011 2012 2013 2014 2015 2016 Q1 2017
NetIncome&EarningsPerShare
NetIncomeAvailabletoCommonShareholders FullyDilutedEPS
12
Customers Bank
Executing On Our Unique High PerformingBanking Model
13
Resultsin:OrganicGrowthofDepositswithControlledCosts
Source: Company data.
Total Deposit Growth ($mm) Average DDA Growth ($mm)
Cost of Deposits Total Deposits per Branch ($mm)
Customers’strategiesofsinglepointofcontactandrecruitingknownteamsintargetmarketsproducerapiddepositgrowthwithlowtotalcost
$124 $251 $500 $575 $657
$1,058 $1,256
$34 $42
$57 $75
$127
$353 $318
$0
$400
$800
$1,200
$1,600
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17
$'sinmill ions
NonInterestBearingDDA InterestBearingDDA
CAGR: 55%
1.19%
0.87%0.70% 0.66% 0.64%
0.76% 0.80%
0.25% 0.25% 0.25% 0.25% 0.26%
0.51%
0.79%
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17
BankCOD AverageFedFundsTargetRate
CAGR: -7%
$0.7 $1.2 $1.1 $1.7 $2.3 $2.8 $2.6$0.7$1.0 $1.3
$2.2$2.8
$3.2 $3.2
$0.2$0.3 $0.5
$0.6
$0.8$1.3 $1.5
$0.0
$2.0
$4.0
$6.0
$8.0
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17
$'sinbil l ionsCD's MoneyMarket&Savings DDA
CAGR: 34%
$112 $129$152
$233
$319
$395 $387
$0
$50
$100
$150
$200
$250
$300
$350
$400
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17$'sinmill ions
CAGR: 27%
Amounts presented are on a “Combined” basis.
14
LendingStrategy
High Growth with Strong Credit Quality§ Continuous recruitment and retention of high quality teams
§ Centralized credit committee approval for all loans§ Loans are stress tested for higher rates and a slower economy
§ Insignificant delinquencies on loans originated since new management team took over§ Creation of solid foundation for future earnings
Source: Company data. Includes deferred costs and fees.
$0.5 $0.6 $0.9 $1.0 $1.3 $1.3$0.1 $0.4$1.1
$2.3$2.9 $3.2 $3.4
$0.9$1.6
$1.3
$2.1
$2.9 $3.5 $3.1
$0.2
$0.3$0.3
$0.4
$0.4
$0.3 $0.5
$0$1$2$3$4$5$6$7$8$9
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17
Non-OwnerOccupiedCRE MultiFamilyloans
Commercial Consumer&Residential
CAGR: 38%
$'sinBillion
s
Loan Growth
15
NPL
Source: SNL Financial, Company data. Peer data consists of Northeast and Mid-Atlantic banks and thrifts with comparable size in assets and loan portfolios (excluding banks with largeresidential mortgage loan portfolios). Industry data includes all commercial and savings banks. Peer and Industry data as of December 31, 2016
Build an Outstanding Loan Quality Portfolio
Charge Offs
3.33%
2.64%
2.06%1.70% 1.70%1.83%
1.44%1.09% 0.91% 0.89%0.72% 0.60%0.20% 0.15% 0.22% 0.33%
0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%
2012 2013 2014 2015 2016 Q12017
Industry Peer CustomersBancorp,Inc.
1.09%
0.68%
0.48% 0.42% 0.45%0.48%
0.28%0.15%
0.12% 0.12%0.29% 0.22% 0.07%0.19%
0.02% 0.01%0.00%0.20%0.40%0.60%0.80%1.00%1.20%
2012 2013 2014 2015 2016 Q12017
Industry Peer CustomersBancorp,Inc.
Asset Quality Indicators Continue to be Strong
Note: Customers 2015 charge-offs includes 12 bps for a $9 million fraudulent loan
Charge Off amounts presented are on a “Combined” basis and include $592 thousand of charge offs related to BankMobile in 2016.
16
Staff Expense Ratio
Build Efficient Operations
Source: SNL Financial, Company data based on continuing operations. Peer data consists of Northeast and Mid-Atlantic banks and thrifts with comparable size in assets and loanportfolios (excluding banks with large residential mortgage loan portfolios). Industry data includes SEC reporting banks. Peer and Industry data as of December 31, 2016.
Occupancy Expense Ratio
Total Costs as a % of Assets
Total Revenue per Employee ($000s) Assets per Employee ($mm)
0.37% 0.38% 0.38% 0.36%0.30%
0.39% 0.39% 0.40% 0.38% 0.35%0.22% 0.19% 0.15% 0.12% 0.11% 0.11%
0.00%
0.50%
2012 2013 2014 2015 2016 Q12017Industry Peer CustomersBancorp,Inc.
$4.7 $4.7 $5.0 $5.3 $5.5
$6.3 $6.5 $6.9 $7.4 $8.0$9.3 $9.0$13.3
$15.1 $17.6 $18.7
$0.0
$10.0
$20.0
2012 2013 2014 2015 2016 Q12017Industry Peer CustomersBancorp,Inc.
1.71% 1.74% 1.71% 1.73% 1.73%1.45% 1.45% 1.43% 1.38% 1.36%
1.03% 1.03%0.83% 0.78% 0.75% 0.68%
0.00%
1.00%
2.00%
2012 2013 2014 2015 2016 Q12017Industry Peer CustomersBancorp,Inc.
3.02% 3.06% 3.00% 2.99% 2.87%
2.76% 2.83% 2.63% 2.58% 2.45%
2.18% 2.13% 1.75% 1.48% 1.45% 1.27%0.00%
2.00%
4.00%
2012 2013 2014 2015 2016 Q12017Industry Peer CustomersBancorp,Inc.
$188 $187 $193 $204 $201$256 $259 $271 $289 $305
$402$330
$424 $465 $529 $533
$0
$500
2012 2013 2014 2015 2016 Q12017Industry Peer CustomersBancorp,Inc.
Amounts presented are on a Continuing Operations basis.
17
Deposit,LendingandEfficiencyStrategiesResultinDisciplined&ProfitableGrowth
Net Interest Income ($mm) (1)
$39.0
$72.1
$103.9
$151.9
$196.3
$57.6 $62.4
$63.2
$64.6
$64.1
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
2011 2012 2013 2014 2015 2016 2017
CAGR: 42%
Q3
Q1
Q2
Q1
1Q '17vs.1Q'16Growth8%
Q2
Q4
$249.5
Q3
$62.4
Q4
(1) Source:Companydata(2) NIISimulationbasedonALMmodeldataandassumesaflatbalancesheetwithnovolumeincreasesordecline(3) Non-GAAPmeasurecalculatedasGAAPnetincomeless/plussecuritiesgainsandlosses(includingtheimpairmentlossrecognizedontheequityinvestment).
Amounts presented are on a Continuing Operations basis.
Net Interest Income Simulation (1)(2)
1.89%
3.00%
1.20%
2.34%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
3/31/2017 3/31/2018
+200basispoints +100basispoints
Estimated IncreaseinNetInterest IncomeovertheNextTwelveMonths
$9 $20 $22 $22 $28 $30 $7$39
$72
$103
$152
$196
$250
$62$37 $51 $74 $97 $108 $131
$30
2011 2012 2013 2014 2015 2016 YTD20170
50
100
150
200
250
3001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Non-interestIncome NetInterestIncome OperatingExpenses
Core Income / Expense Growth($mm) (1) (3)
18
Deposit,LendingandEfficiencyStrategiesResultinDisciplined&ProfitableGrowth
• StrategyexecutionhasproducedsuperiorgrowthinrevenuesandearningsEfficiency Ratio(1)
(1) Source:Companydata(2) Non-GAAPmeasurecalculatedasGAAPnetincomeless/plussecuritiesgainsandlosses(includingtheimpairmentlossrecognizedontheequityinvestment).
Amounts presented are on a Continuing Operations basis.
78%
55% 59% 56%48% 47% 43%
0%10%20%30%40%50%60%70%80%90%
2011 2012 2013 2014 2015 2016 2017
CAGR: -11%
Core Net Income ($mm) (1) (2)
$2.1
$17.9
$32.1
$42.7
$60.6
$18.0 $21.5
$19.7
$20.7
$26.9
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2011 2012 2013 2014 2015 2016 2017
CAGR: 101%
Q1
Q2
1Q '17vs.1Q'16Growth16%
Q3
Q4
Q1
$85.3
Q2
Q3
$21.5
Q4
Total Revenue ($mm) (1)
$50.3
$101.0$126.6
$177.0
$223.9
$62.9 $67.9
$69.0
$75.7
$65.1
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
2011 2012 2013 2014 2015 2016 2017
CAGR: 38%
Q4
Q2
Q1 Q1
1Q '17vs.1Q'16Growth8%
Q3
$272.7
Q2$67.9
Q3
Q4
19
Tangible BV per Share (1)
Building Customers Bank to Provide Superior Returns to Investors
Recent Performance Results
Financial Performance Targets
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
$24.00
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Mar-17TangibleBookValue $11.54 $13.09 $14.37 $16.43 $18.39 $20.49 $21.04BookValue $11.84 $13.27 $14.51 $16.57 $18.52 $21.08 $21.62
CAGR: 12% Q12016 Q22016 Q32016 Q42016 Q12017
ROA 0.9% 0.8% 0.9% 0.8% 1.1%
ROCE 13.2% 13.1% 13.2% 10.5% 13.8%
NIM 2.88% 2.83% 2.83% 2.84% 2.73%
Efficiency 54% 53% 61% 58% 57%
EPS $0.58 $0.59 $0.63 $0.51 $0.67
Criteria Goals
ReturnonAssets ~1%
ReturnonCommonEquity 11%orgreater
NetInterestMargin ~3%
EPS ~15%annualcompoundedgrowth
EfficiencyRatio(continuingoperations) Inthe40's
(1) Non-GAAP measure calculated as GAAP total shareholders equity less preferred stock, less goodwill and other intangibles divided by common shares outstanding.Amounts presented are on a “Combined” basis.
20
Contacts
Company:RobertWahlman,CFOTel:[email protected]
JaySidhuChairman&CEOTel:[email protected]