Customers Bancorp 8K Regulation FD Disclosure | CUBI 14 May 14

Exhibit 99.1

Effortless Banking

Building a Unique High Performing Banking Model

Customers Bancorp, Inc.

Overall Corporate
Strategy

Jay Sidhu

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 events or future predictions, including events or predictions relating to our future
financial performance, and are generally identifiable by the use of forward-looking terminology such as “believes,” “expects,”
“may,” “will,” “should,” “plan,” “intend,” “target,” or “anticipates” or the negative thereof or comparable terminology, or by
discussion of strategy or goals that involve risks and uncertainties. These forward-looking statements are only predictions and
estimates regarding future events and circumstances and involve known and unknown risks, uncertainties and other factors that
may cause our actual results, levels of activity, performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such forward-looking statements. This information is
based on various assumptions by us that may not prove to be correct.

Important factors to consider and evaluate in such forward-looking statements include:

• changes in the external competitive market factors that might impact our results of operations;

• changes in laws and regulations, including without limitation changes in capital requirements under the federal

prompt corrective action regulations;

• changes in our business strategy or an inability to execute our strategy due to the occurrence of unanticipated events;

• our ability to identify potential candidates for, and consummate, acquisition or investment transactions;

• the timing of acquisition or investment transactions;

• constraints on our ability to consummate an attractive acquisition or investment transaction because of significant competition
for these opportunities;

• the failure of the Bank to complete any or all of the transactions described herein on the terms currently contemplated;

• local, regional and national economic conditions and events and the impact they may have on us and our customers;

• ability to attract deposits and other sources of liquidity;

• changes in the financial performance and/or condition of our borrowers;

• changes in the level of non-performing and classified assets and charge-offs;

Forward-Looking Statements

• 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;

• inflation, interest rate, securities market and monetary fluctuations;

• the 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;

• 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 well as the
Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard
setters;

• the businesses of the Bank and any acquisition targets or merger partners and subsidiaries not integrating successfully or such
integration being more difficult, time-consuming or costly than expected;

• material differences in the actual financial results of merger and acquisition activities compared with expectations, such as with
respect to the full realization of anticipated cost savings and revenue enhancements within the expected time frame;

• revenues following any merger being lower than expected; and

• deposit attrition, operating costs, customer loss and business disruption following the merger, including, without limitation,
difficulties in maintaining relationships with employees being greater than expected.

These forward-looking statements are subject to significant uncertainties and contingencies, many of which are beyond our
control. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance or achievements. Accordingly, there can be no assurance that actual
results will meet expectations or will not be materially lower than the results contemplated in this presentation. You are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document
or, in the case of documents referred to or incorporated by reference, the dates of those documents. We do not undertake any
obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events, except as may be required under applicable law.

Forward-Looking Statements

This presentation also includes estimated guidance regarding our fully diluted earnings per share for the years 2014 and
2015, which we have previously disclosed and is subject to the assumptions and qualifications included in that previous
disclosure. The guidance consists solely of estimates prepared by management based on currently available information
and assumptions of future performance of the company and the general economy. Our independent registered public
accounting firm has not audited, reviewed or performed any procedures with respect to the guidance and, accordingly,
does not express an opinion or any other form of assurance with respect to this data. Our actual results may differ from
the guidance, and any such differences could be material. Accordingly, undue reliance should not be placed on this
information. The factors discussed above should be considered and evaluated with respect to our guidance. In addition,
this presentation depicts a hypothetical scenario based on our having assets of $6.5 billion and certain additional
assumptions relating to our strategic plan, including assumptions as to loan assets, return on average assets, return on
average equity and efficiency ratio. This hypothetical scenario is not intended to alter or supplement our estimated
guidance. As a result, you should not consider this information to be a projection or estimate of our anticipated future
performance.

My Agenda

1. The changing face of banks in the United
States

2. Our approach in positioning bank to take
advantage of this changing environment

3. Customers Bancorp: Where we started
and where we are headed

4. Organic growth vs. M&A growth

5. Why Bank Mobile is an additional vertical

6. What investors should expect from CUBI

Highly Experienced Management Team

The U.S. Banking Industry

U.S. Banking Sector Analysis

Source: FDIC, SNL Financial as of 12/31/2013

Banking Market

Key Market Statistics

U.S. Banking Industry Continues
to Consolidate…Biggest declines in banks below $500 million

Total U.S. Depository Institutions

…And Further Consolidation Expected With Over

90% of Remaining U.S. Banks Less Than $1B in Assets

Number of US Banks & Thrifts by Asset Size

Number of Banks & Thrifts Headquartered in DE, MD, NJ, NY, PA and VA by Asset Size

Source: SNL Financial

5,832

295

174

1,000

2,000

3,000

4,000

5,000

6,000

7,000

<$1B

$1B

$2B

$5B

$10B

$25B

$25B+

Since the End of the Crisis, U.S. Banks Have Also Shown

Meaningful Improvement Across Operating, Credit

and Capital Performance Metrics

___________________________

Source: SNL Financial. Median performance metrics for top 50 U.S. banks.

1. Nonperforming assets defined by SNL Financial as nonaccrual loans and leases, renegotiated loans and leases, and real estate owned.

U.S. Bank Operating Environment

Strong loan growth in recent years in a

challenging operating environment

Asset quality has shown substantial improvement
since the end of the credit crisis

NIM has gradually declined over the past several years

Efficiency ratios have meaningfully increased

since 2009

After declines during the crisis, ROAA has

rebounded in recent years

Strong capital levels in response to new environment

Customers Bancorp, Inc. Has Already Out Performed The Median

Or Kept Pace With The Improvement of US Banks

Efficiency Ratio

Net Interest Margin

ROAA

NPAs / Assets (1)

Loan HFI Growth

TCE / TA

___________________________

Source: SNL Financial and Company Documents. Median performance metrics for top 50 U.S. banks.

1. Nonperforming assets defined by SNL Financial as nonaccrual loans and leases, renegotiated loans and leases, and real estate owned Customers nonperforming loans do not include covered loans..

U.S. Bank Operating Environment

Strong loan growth in recent years in a

challenging operating environment

Asset quality has shown substantial improvement
since the end of the credit crisis

NIM has gradually declined over the past several years

Efficiency ratios have meaningfully increased

since 2009

After declines during the crisis, ROAA has

rebounded in recent years

Strong capital levels in response to new environment

Return on Average Equity

Efficiency Ratio

NPAs

Return on Average Assets

Source: SNL Financial on an LTM basis as of 4Q2013

Smaller Banks Lacking Scale to Get to 1.0% ROA

Return on Average Equity

Efficiency Ratio

NPAs

Return on Average Assets

Source: SNL Financial on an LTM basis as of 4Q2013

Smaller Banks Lacking Scale to Get to 1.0% ROA

Besides Size, Higher Profitability Key Driver in

Premium Tangible Book Value Multiple

Source: SNL Financial.

Note: All banks with assets between $1.0 billion - $20.0 billion and Texas Ratios less than 75%. Excludes merger targets and MHCs.

P/TBV as of 3/14/2014. ROATCE LTM as of most recent quarter available.

1.04x

1.35x

1.69x

2.20x

7.4%

10.1%

11.1%

13.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0.00x

0.50x

1.00x

1.50x

2.00x

2.50x

25% Percentile

50% Percentile

75% Percentile

100% Percentile

Median P/TBV

Median ROATCE

Customers Bank on pace to
the 75th + percentile

Taking Advantage Of This Changing
Environment

Organic vs. M&A Growth Strategies

Where We are in the Cycle

Stages in a Typical Market Recovery Cycle

Market
Decline

Assisted
Transactions

Alternative Structures:

• Reorg/Recap

• Earnouts

• Bankruptcy (363 / Pre-
Pack Structures)

• Good Bank / Bad Bank

Traditional
M&A

Lower valuations,
distressed targets with
higher credit marks

Higher valuations,
normalized credit
marks

§ Entered a new stage in the Recap/Reorg and M&A cycle

§ Volume of FDIC assisted deals continues to decline

§ Majority of 10% + growth is M&A driven. Few strong “organic” growth banks emerging

§ Separation between “builders”, “sellers” and “watchers”

§ New models of “banking” emerging

Stage 1

Stage 2

Stage 3

We are
here

Customers Bancorp’s Headquarters

Public Companies’ Headquarters

Private Companies’ Headquarters

Potential M&A Target For CUBI

Source: SNL Financial. Data as of most recent quarter available. Excludes merger targets. Eastern PA defined as the Allentown MSA and east of the Allentown MSA.

Public and Private Banks and Thrifts with Assets Less than $750 Million

Wyomissing

Role of CEO and Board …
Especially in this environment

1. Absolute clarity of your vision, strategy, goals and
tactics; there must be absolute alignment
between board and management

2. Become a master of your internal environment

§ What’s going on inside your bank

3. Be a master of your external environment

§ Competition, economy, technology, regulatory,
etc.

4. Highest level of integrity and fairness in all we do

5. Passion for continuous improvement

How Do We Deal With these Issues

Impediments to Growth

External Forces

• Role of traditional bank branches
changing very rapidly

• Mobile banking fastest growing channel

• Banks of all sizes revisiting their
business strategies, revenue generation
models and cost structures

• Technology & customer need, desires
and style changing rapidly

• Traditional CRE lending very difficult to
do

• Very little consumer loan growth

• Good banks experiencing 60%+/-
turndown rates for C & I loans

• Mortgage banking revenues down
dramatically

• Regulators have no appreciation or
incentive to see banks grow profitability

Business Issues

Model for Shareholder Value
Creation

• Start bank and sell at 2 to 3x book no
longer an option - what do small
privately held banks do?

• Equity markets not available to small
banks

• Banks need to earn 10% or more ROE if
they want to remain independent

• Consistent ROE of 12%or greater and
ROA of 1% or greater being rewarded
well by market

• Slow economic growth

• Low good quality consumer and
business loan demand

• Difficult to attract good talent

• Very difficult and inconsistent regulatory
environment

Issues facing
Boards &
CEO’s

• What is our unique
strategy for revenue and
profitable growth

• How do we attract and
retain best talent?

• How do we take
advantage of technology?

• How do we deal with
growing compliance
burden?

• How do we lower our
efficiency ratios?

§ Innovator /
disruptor

§ Differentiated /
Unique model

§ Technology savvy

§ Product dominance

The Thesis on Current

U.S. Banking Environment

Credit Improving - Though Banks Face a

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 exploring new asset
classes, competing on price and looking into specialty finance business /
lending

§ NIM Compression

4 Low rate environment for the foreseeable future will continue to compress NIM

4 Several institutions have undergone balance sheet restructuring to alleviate
near-term NIM pressure

§ Operational leverage

4 Expense management is top of mind as banks try to improve efficiency in light
of revenue pressure and increased regulatory / compliance costs

Capital Accumulation Continues To

ROI Continues to Trend Below 10% Despite

Being Modestly Higher Than Pre-Recession1

Critical to Have a Winning Business Model

§ Local dominance

§ Strong credit
quality

§ Core deposits

Relationship
Banks

§ Diversity

§ Cross sell

§ Capital efficiency

§ Higher profitability /
consistent earnings

Fee Income
Leaders

Innovators

Customers Bank

Executing on Building a Unique High Performing
Banking Model

#1 in USA in Organic Top Line Growth in 2013 & 2012

* Excludes banks below $1 billion in assets

Investment Proposition

§ ~$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

§ ROA goal of 1% + and ROE of 12% + within 3-5 years

§ 3.00% net interest margin goal; Targeting efficiency ratio in the 40’s

§ 97% compounded annual growth in loans since 2009

§ DDA and total deposits compounded annual growth of 115% and 78% respectively since 2009

§ 300% compounded annual growth in core earnings since 2011

§ No charge-offs on loans originated after 2009

§ 0.32% non-performing assets (non-FDIC covered loans)

§ Total reserves to non-performing loans of 165.4%

Strong, High Growth, Low Risk, Branch Lite Bank in Attractive Markets

Profitability

Strong Credit Quality

* Includes mortgage warehouse

Investment Proposition

§ 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

§ Current share price ($21.85) is 13.0x estimated 2014 earnings, and 11.1x estimated 2015 earnings

§ Price/tangible book estimated at 1.3x and 1.2x for 2014 and 2015 respectively

Low Interest Rate Risk

Valuation

* Includes mortgage warehouse

Execution Timeline

§ We invested in and
took control of a $270
million asset
Customers Bank (FKA
New Century Bank)

§ Identified existing
credit problems,
adequately reserved
and recapitalized the
bank

§ Actively worked out
very extensive loan
problems

§ Recruited experienced
management team

§ Enhanced credit and risk
management

§ Developed infrastructure
for organic growth

§ Built out warehouse
lending platform and
doubled deposit and loan
portfolio

§ Completed 3 small
acquisitions:

– ISN Bank (FDIC-
assisted) ~ $70 mm

– USA Bank (FDIC-
assisted) ~ $170 mm

– Berkshire Bancorp
(Whole bank) ~ $85
mm

§ Recruited proven lending
teams

§ Built out Commercial and
Multi-family lending
platforms

§ De Novo expansion;4-6
sales offices or teams
added each year

§ Continue to show strong
loan and deposit growth

§ Built a “branch lite” high
growth Community Bank
and model for future
growth

§ Goals to ~12%+ ROE;
~1% ROA

2009

Assets: $350M

Equity: $22M

2010-2011

Assets: $2.1B

Equity: $148M

2012-2013

Assets: ~$4.2B

Equity: ~$400M

1Q 2014

Assets: ~$5.0B

Equity: ~$401M

§ Single Point of Contact
Private Banking model
executed - commercial
focus

§ Introduce bankmobile -
banking of the future
for consumers

§ Continue to show
strong loan and
deposit growth

§ ~12%+ ROE; ~1%
ROA

§ ~$6 billion asset bank
by end of 2014

§ ~$9 billion asset bank
by end of 2019

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 by high-tech for all our customers

• Concierge Banking by meeting our customers 7 days a week - wherever and whenever

• Helping our customers succeed

Critical Success Factors (what we consider most important in running a strong bank)

“We will never deviate from the following five critical success factors”:

• We will always put our customers first and execute that strategy by having the best people
on our team

• Always attempt to maintain the highest quality loans and investments on our books

• Have best systems, practices and team in place to manage all risks we encounter as we run
a profitable bank

• Strive to grow our revenues 2X greater than expenses

• Maintain strong capital levels

Disciplined Model for Increasing Shareholder Value

§ Strong organic revenue growth + scalable infrastructure =
sustainable double digit EPS growth and increased shareholder
value

§ A clear and simple risk management driven business strategy

§ Build tangible book value per share each quarter via earnings

§ Any book value dilution from any acquisitions must be overcome
within 1-2 years

§ Superior execution through proven management team

Disciplined Model for Superior Shareholder Value Creation

Banking Strategy

Consumer Banking Strategy

• Principal focus is getting deposits in a highly efficient and
unique model while meeting the needs of all the
communities in our assessment area

• 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 these segments:

• Banking Privately Held Businesses

• Banking High Net Worth Families

• Banking Mortgage Companies

Consumer Deposit Strategy - High Touch, High Tech

§ Organic deposit growth goals of 20%+ a year from consumers

§ Implementation of
technology suite
allows for unique
product offerings:

§ Remote account
opening &
deposit capture

§ Internet/mobile
banking

§ Free ATM
deployment in
U.S.

Cost of Funds + Branch Operating Expense - Fees = ALL-IN-Cost < Competitors

Goal: All-in cost less than competitors funding cost over the long-term

Technology

§ Low cost banking
model allows for
more pricing
flexibility

§ Significantly lower
overhead costs vs. a
traditional branch

§ Pricing/profitability
measured across
relationship

Pricing

§ Experienced
bankers who own a
portfolio of
customers

§ Customer
acquisition &
retention strongly
incentivized

§ Takes banker to the
customer’s home or
office, 12 hours a
day, 7 days a week

§ Appointment
banking approach

§ Customer access to
private bankers

§ “Virtual Branches”
out of sales offices

Sales Force

Concierge Banking

Deposits: Organic Growth With Controlled Costs

Source: Company data.

Total Deposit Growth ($mm)

Average DDA Growth ($mm)

Cost of Deposits

Customers strategies of single point of contact and recruiting known teams in target markets produce
rapid deposit growth with low total cost

Customers Bank Advantage

All Consumer
Products

All Business
Products

All Non-Credit
Products

Client
Makes
One Call

Client

Private /
Personal
Bankers

Concierge
Bankers

Loan Portfolio Mix ($mm)

Single Point of Contact

High Touch / High Tech

§Creation of solid foundation for future
earnings

Business Banking Strategy

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

§ Target companies with up to $100 million
annual revenues

§ Very experienced teams

§ Single point of contact

§ NE, NY, PA & NJ markets

Banking Privately Held Business

Business Banking Loan and Deposit Growth ($B)

Multi-Family and Non-Owner Occupied Commercial Real Estate Banking Strategy

Banking High Net Worth Families

§ Focus on families that have income
producing real estate in their portfolios

§ Private banking approach

§ Multi Family and non owner occupied
income CRE loan products

§ Focus Markets: New York & Philadelphia
MSAs

§ Average Loan Size: $4.0 - $7.0 million

§ Remote banking for deposits and other
relationship based loans

§ 342% compounded annual growth rate since
2011

§ Portfolio grown organically from a start up
with very experienced teams hired in the
past 3 years

§ Strong credit quality niche

§ Interest rate risk managed actively

Mortgage Warehouse Banking Strategy

§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-interest bearing DDA’s

§Balances not expected to be materially
higher in 2014

§Loan balances below 2011 levels but fees
and deposits remain strong

§Selected lending against servicing portfolios
introduced in 2014

§Opportunistic purchases of variable rate
mortgage loans

Banking Mortgage Companies

These Deposit and Lending Strategies Results in Disciplined & Profitable Growth

Core Net Income (1)

Source: SNL Financial and Company data.

• Strategy execution has produced superior growth in revenues and earnings

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 1 to 2 years

Tangible Book Value Growth

Key Financial Targets for the Next 3-5 Years

Focus in future years

•Single point of contact model - “High touch supported by high tech”

•Only superior credit quality niches

•Above average organic growth

•Expense management

Earnings per share growth estimated at ~ 17% year over year

•Assumes no additional common shares are issued during 2014 or 2015

Expecting banking for mortgage companies balances to remain flat and
continue to shrink as a percentage of total assets

Strategically aligned technology partners

•Core Banking Platform - Fiserv

•Mobile Banking Platform - Malauzai

Unique branch model

•24 hours concierge bankers

•All-In-Cost (interest expense + operating cost)

•Alternative channels emerging in our model

•Use of technology to reduce branch traffic

•Bank Mobile & prepaid cards

Criteria 3 -5 Year Targets

Year EPS Expectations

*Efficiency ratio = non-interest expenses/(net interest income + non-interest
income - securities gains)

Startling Facts About Banks

§ Banks each year charge $32 billion in over draft fees - that’s
allowing or creating over 1 billion over drafts 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

§ Combined this is about 50% of all America spends on Food Stamps

§ Some of banking industries most profitable consumer customers
hate banks

§ Another estimated 25% consumers are unbanked or under banked

This should not be happening in America

We hope to start, in a small way, a new revolution
to address this problem

Customers Bank Views Itself As A Marketing
Company With A Bank Charter

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 generation from debit card interchange and margin from low cost
core deposits

§ Total investment not to exceed $5.0 million by end of 2015 but expected to be
offset by revenues

§ Expected to achieve above average ROA and ROE within 5 years

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 consistent earnings growth

§ Attractive risk-reward: growing several times faster than industry average but
yet trading at a significant discount to peers

§ Experienced management team delivers with strong results

§ Ranked #1 overall by Bank Director Magazine in the 2012 and 2013 Growth
Leader Rankings

§ Introducing among the 1st mobile banking application for account opening and
complete mobile platform based servicing in the USA

Regional Bank Comparison

High Performance Regional Banks

Source: SNL Financial, Company documents. Market data as of 3/31/2014. 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 merger targets and MHCs.

(1)Customers Bancorp NPAs/Assets calculated as non-covered NPAs divided by total assets. Non-covered NPAs excludes accruing TDRs and loans 90+ days past due and still accruing.

(2)Customers Bancorp Core ROAA & ROAE include adjustments for securities gains along with unusual provision related to significant growth at the end of March.

		MRQ Profitability				Capitalization				Asset Quality		Market Trading
Name	State	Assets ($MM)	Core ROAA	Core ROAE	Effic. Ratio	TCE/TCA	Tier 1 Ratio	Leverage Ratio	Total Capital Ratio	NPA's/ Assets (1)	Reserves/N PL's	Market Cap ($MM)	Price/TBV	Price/LTM EPS
OFG Bancorp	PR	$7,856	1.06%	9.51%	58.4%	8.0%	14.8%	9.5%	16.6%	2.9%	70.0%	$773.6	1.24 x	9.6 x
NBT Bancorp Inc.	NY	$7,753	0.99%	9.10%	64.0%	8.2%	11.8%	9.1%	13.1%	0.8%	116.4%	$1,066.3	na	14.9 x
Provident Financial Services, Inc.	NJ	$7,501	0.92%	6.74%	60.0%	8.4%	11.6%	8.5%	12.9%	2.0%	44.2%	$1,099.6	na	15.1 x
Community Bank System, Inc.	NY	$7,397	1.25%	10.14%	59.2%	7.5%	14.2%	9.5%	15.3%	0.4%	177.0%	$1,586.5	3 x	19.7 x
Boston Private Financial Holdings, Inc.	MA	$6,705	0.96%	10.34%	68.9%	8.9%	13.7%	10.2%	15.0%	1.0%	111.6%	$1,082.4	2.37 x	18.5 x
Tompkins Financial Corporation	NY	$5,042	1.03%	11.01%	64.7%	7.4%	NA	8.7%	13.7%	0.8%	79.6%	$726.0	1.99 x	14 x
S&T Bancorp, Inc.	PA	$4,707	1.23%	9.84%	59.2%	8.9%	12.4%	9.8%	14.4%	1.2%	81.7%	$704.3	1.74 x	13.5 x
TrustCo Bank Corp NY	NY	$4,579	0.88%	10.83%	51.3%	8.1%	17.1%	8.1%	18.4%	1.4%	87.4%	$665.7	1.79 x	16 x
WSFS Financial Corporation	DE	$4,546	1.50%	16.73%	65.5%	8.2%	13.5%	10.7%	14.7%	1.2%	79.9%	$636.4	1.72 x	12.1 x
Dime Community Bancshares, Inc.	NY	$4,280	0.93%	8.73%	48.4%	9.1%	12.5%	9.2%	13.1%	0.8%	65.3%	$623.5	1.62 x	14 x
Sandy Spring Bancorp, Inc.	MD	$4,169	1.09%	8.87%	61.6%	10.4%	14.6%	11.4%	15.9%	1.0%	98.3%	$625.6	1.47 x	14 x
Eagle Bancorp, Inc.	MD	$3,804	1.34%	12.34%	51.9%	10.0%	11.6%	10.8%	13.0%	1.2%	115.2%	$937.7	na	20.1 x
Washington Trust Bancorp, Inc.	RI	$3,194	1.22%	11.56%	59.8%	8.7%	12.4%	9.6%	13.6%	1.2%	69.2%	$623.3	2.29 x	16.6 x
Financial Institutions, Inc.	NY	$3,016	0.95%	10.81%	57.1%	6.6%	10.9%	7.5%	12.1%	0.6%	166.9%	$318.9	1.63 x	12.6 x

Median		$4,579	1.06%	10.1%	59.2%	8.4%	13.0%	9.5%	14.4%	1.0%	87.4%	$723.1	1.63 x	14.9 x

Customers Bancorp, Inc.	MA	$5,014	0.76%	8.5%	60.6%	7.9%	10.9%	9.1%	11.6%	0.4%	162.1%	$507.0	1.28 x	15 x

Aspirational Banks
Signature Bank	NY	$23,104	1.17%	14.25%	36.1%	8.3%	14.1%	8.5%	15.1%	0.3%	235.2%	$6,123.5	3.2 x	24.7 x
Texas Capital Bancshares, Inc.	TX	$12,144	0.97%	10.95%	58.5%	8.7%	9.9%	11.6%	12.7%	0.4%	196.0%	$2,789.7	2.63 x	25.7 x

Customers Bank
Operating Strategies

Richard A. Ehst

Operating Strategies

Critical Success Factors - Driver of Consistent High Performance

Talent & Execution of SPOC

• Creating an exceptional customer experience at a low cost.

Asset Quality

• Maintain exceptional underwriting standards.

Master of External Environment

• Develop keen awareness of external influences on the operating model.

Master of Internal Environment

• Maintain the culture.

Expense Management

• Generate $2 in revenue for every $1 in expense.

Well capitalized

Branch Lite
Community Banking

Model

Warren Taylor

Deposit Strategy

Primary Goal - Low cost core deposits from consumers and commercial in
Southeast PA, NY, and NJ.

Concierge Banking

§ Takes banker to the
customer’s home or
office, 12 hours a
day, 7 days a week

§ Appointment banking
approach

§ Customer access to
private bankers

§ “Virtual Branches”
out of sales offices

Sales Force

§ Experienced
bankers who own
a portfolio of
customers

§ Customer
acquisition &
retention strongly
incentivized

Pricing

§ Low cost banking
model allows for more
pricing flexibility

§ Significantly lower
overhead costs vs. a
traditional branch

§ Pricing/profitability
measured across
relationship

Technology

§ Implementation of
technology suite allows
for unique product
offerings:

§ Remote account
opening, deposit
capture & Picture Pay

§ Internet/mobile
banking

§ Free ATM deployment
in U.S.

Cost of Funds

Plus: Branch Operating
Expense

Less: Fees

= All-in Cost < Competitors

Goal: All-in cost less than wholesale funding cost over the long-term

1.64%

Deposit Strategy- High Tough, High Tech

Results

Deposits
in
Millions

Results

347%

260%

165%

Wyomissing Office

1.19%

All-In Cost

$163
Million in
deposits

$22.6
million in
DDAs

Hamilton, NJ Office

Low
Overhead

Rent

$24,000 / yr

$134 million
in deposits

Conclusion

• Effortless banking coupled with:

• Maintaining extremely low overhead

• Hiring the best bankers in the market

• Providing a better value proposition for customers

• Service designed to build relationships and loyal
customers.

• Convenience via technology that enables customers
to manage their money from anywhere, anytime

• We support our Commercial partners through SPOC

• But… what if we could:

• Drive overhead lower, “Branch” anywhere, increase
our value proposition even more, target customers
better, and open thousands of accounts in a day?

Banking to Private

Owned Business’

George Maroulis

Steve Issa

Tim Romig

CB Private & Commercial Banking

New York Metropolitan Division

George Maroulis

gmaroulis@cbpcb.com

212.843.2490

Overview of CB Private & Commercial Banking

Vision/Mission of Division

vOur mission is to grow organically to $1 Billion in earning assets and liabilities, respectively,
within 4 - 5 years; and build a highly successful bank that makes our customers say “wow!”

vProvide absolutely memorable service to our customers.

vHigh-tech, high touch private banking model for all of our customers

Values

vAlways putting our customers first

vPracticing the highest level of integrity

vDelivering exceptional results for our investors, customers, and team members

Execution

vNew York Metropolitan Area (NYM, NY Metro): the world’s most lucrative & competitive banking
market

vCompete using a unique game-changing model

vAttract deposits with the current operating model

vModel produces better assets and deeper relationships

vOrganic, low-cost growth yields superior and sustainable ROE over time

vModel produces a superior efficiency ratio

vModel aligns the interests of shareholders, customers, team members & management

New York Metro Footprint

CBPCB’s New York Metro (NYM) Division

vNYM’s primary footprint is our assessment area

vNYM’s secondary footprint is defined as the Federal Reserve Bank’s Second District

vBanking Groups follow their clients beyond the primary marketing area

Primary Market

Secondary Market

New York Metro Opportunity

Compete By Being Unique

vExecute on a unique operating model that affords us to
compete in overbanked yet underserved markets by being
different

vGame changing method of interacting with your
clients/customers using a high-tech, high-touch
model via a single point of contact

vMake every client/customer feel like they are our only
client/customer

v$1 billion deposits = only a 0.077% market share

vLongstanding and deep relationships in the C&I lending
world located within a 20 block radius of our Manhattan

Divisional headquarters.

"While big banks have
traditionally had an
advantage over smaller
banks in terms of
convenience of branch
locations and technology,
their disadvantage was
often in the personal
service customers
desired"¹

-- Jim Miller

Senior Director of Banking

J.D. Power & Associates

¹ Press Release: J.D. Power and Associates Reports. 19 April 2013.

Execution

Single Point of Contact

v Aligns the interests of shareholders, clients, team members & management

v “Bank within a bank” model yields a superior efficiency ratio over time

v Can be integrated into current sales & client management structure

v Deeper and more profitable and “sticky” relationships

v Higher quality and more profitable assets

v Deeper KYC & BSA

mitigates risk

v Minimizes attrition

v Scalable

New York Metro Deposits

Division Sourced & Manages More Deposits than 4,634 Institutions in the US ²

¹ The Division’s deposit gathering activities occur solely out of the Bank’s Rye Brook Branch located at 14 Rye Bridge Plaza, Rye Brook, NY 10573.

² Balances and statistic are as of 5 May 2014. As of the same search date there were 6,725 institutions in the United States. Source: FDIC.gov.

With just 1 in-market branch and
in approximately 6 months of
operation, we are 26% of our
$1 billion in deposits
by 2017 goal !

Commercial & High Net Worth Lending

What We Primarily Do in C&I:

vCommercial and Industrial (C&I) lending to the middle market¹ including primary,

bi-lateral, club, assignments, syndicated facilities and other direct lending

vBusiness Banking² C&I lending

vOwner-occupied commercial mortgages

vSmall Business Administration guaranteed lending programs & lending using other

government-backed economic incentives

What We Primarily Do With High-net Worth Individuals:

v Competitive loan to value facilities for Investor real estate³

v Primary and secondary residence portfolio lending

v Personal loans >$1 million used for commercial purposes

v Secured non-purpose lending4

Competitive Advantage:

v Rapid and thoughtful decisioning

v Highly experienced in-market chief lending officer

¹ Commercial obligors ≥ $20 million - $2 Billion in total revenue.

² We define Business Banking by deal structure and or total exposure and we do not employ a pure gross revenue definition as is common in the marketplace.

³ We rely on and do not deviate from, the Bank’s Commercial Real Estate policy.

4 Loans secured by marketable securities for non-specified purposes

Why Customers Bank?

Talent in the marketplace is attracted to Customers Bank because of our:

Culture:

vAt the core of the company is a culture built on trust and teamwork—NO SILOS

Values:

vShared values that puts customers/clients first

vMutual respect among all whom we deal

vPracticing the highest level of integrity

vDelivering exceptional results with a positive attitude

Leadership:

vJay Sidhu

vRichard Ehst

vEntire executive management team

vFlatter organization

Current Banking Groups

¹ The regional Chief Lending Officer (CLO) and the credit staff are locally based at the Division’s NYC office. CBPCB’s CLO reports directly to the Bank’s Chief

Credit Officer located in Phoenixville, PA. This setup permits the Division to be very responsive to client credit request while simultaneously maintaining a

“Chinese Wall” between the credit and line functions.

Experienced Team

Over 275 years of experience forged at premiere institutions

Why Buy Banks When Seasoned Banking
Group May Be Recruited?

v Growth by sourcing seasoned & established

Banking Groups from competitors.

v Branch based talent sourced in branches with

>$100mm in footings

v Each new location can house several groups

v Phase 1, 2015 plan: grow to six groups

v Phase 2, 2015 - 2016 plan: onboard new groups
in strategic locations & obtain branch licensing

v Phase 3, 2016 - 2017 plan: expand into strategic

areas of Long Island, Westchester County and

Northern New Jersey

v Preferred locations are close to courthouses,

major offices complexes and industrial parks

v New banking groups will determine new locations

v Occupancy rates outside of Manhattan are

significantly lower and have little or no

commercial lease tax, resulting in new groups

attaining profitability over a shorter period

New England Commercial &
Specialty Lending

Team Overview

ØCurrently have 2 commercial offices in NE; Providence, RI and Boston, MA and
recently opened Specialty group in PA. A total of 18 team members, that provide full
commercial banking services in each location.

ØMajority of the team has worked together for over 15 years with a successful track
record of starting/building a successful commercial business.

ØHighly talented energized individuals with the right “DNA” that demonstrate strong
“Integrity, Commitment & Values.”

ØDiverse experience in each position within each team structure; providing a “High-
touch world class service” experience to every customer.

ØDepth of long-term relationships with customers and referral sources, ie (CPA’s,
Atty’s, Investment bankers, State and local economic development agencies)

ØAverage deal size is $3MM to $10MM.

ØFocused on high quality commercial loans diversified by industry, region and
collateral type.

ØOur target industries include, mfg, service businesses, professional firms,
distributors, etc..

ØStrong cash mgmt products & services as well as in-market product specialists to
offset lack of branches.

NE Commercial Banking

Steve Issa - EVP, Serving as NE Market president & Managing Director of Commercial & Specialty Lending

§ Over 35 years of experience in Commercial Banking in Northeast.

§ Former EVP & Managing Director of Commercial & Specialty Banking at Flagstar Bank, prior to that Sovereign & Fleet Bank.

Paula Pais - SVP, Serving as NE Director of Planning & Administration

§ Over 25 years of experience in Commercial Banking in Northeast.

§ Former VP of Planning & Administration at Flagstar Bank, prior to that Sovereign Bank

Kevin Farrell - SVP, Serving as Market Manager of Commercial & Specialty lending in RI/CT

§ Over 27 years of experience in Commercial Banking in Northeast.

§ Former SVP & Market Manager of Commercial Banking for RI/ SE Mass at Flagstar Bank, prior to that Sovereign & Fleet Bank.

Joe O’Leary - SVP, Serving as Market Manager of Commercial lending in Mass

§ Over 32 years of experience in Commercial Banking in Northeast.

§ Former SVP & Market Manager of Commercial Banking for Mass, prior to that Sovereign & Fleet Bank.

George Drapeaux - SVP, Serving as NE Cash Mgmt Sales Manager

§ Over 25 years of experience in Cash Management in Northeast.

§ Former SVP & Treasury Mgmt Sales Director at Flagstar Bank, prior to that Sovereign Bank.

Lyle Cunningham - SVP, Serving as Managing Director of Specialty Finance

§ Over 28 years of experience in Specialty Finance in Northeast.

§ Former Managing Director at National City bank sponsor finance.

Relationship Managers, Loan Administrators, & Product specialists

§ Seasoned sales teams with avg of 18 yrs in commercial banking in Northeast.

§ Live and work in the communities they serve.

§ Volunteer in community outreach efforts

NE Commercial Banking

Seasoned Management Team

§ Seamless transition to Customers Bank in Q2 2013 with 100% customer

and team member retention.

§ Total middle market relationships grew by 40% since March, $215MM
from $150MM, despite a 78% turndown rate.

§ 2013 fees totaled $500K.

§ Instituted a bank wide SWAP program working with Treasury, Finance,

Credit and Risk Management which resulted in approximately $750K in

total first year bank-wide swap fees.

§ Total commercial deposits were $26MM with cash mgmt fees totaling

approximately $120K in revenue.

NE Commercial Banking

2013 Accomplishments

NE Commercial Banking

Strategic Plan to $1Billion GOAL over next 3-4 years

§ Continue to deliver profitable growth with solid profit margins, strong fee
income, relatively flat expenses, steady deposit growth, while maintaining a strong
credit culture.

§ Plan to grow net loan outstanding's on an annual basis, in the $200MM range to
achieve the $1Billion over the next 3-4 years.

§ Plan to add loan fees on cash basis of $1MM within the next 12-18mths.

§ Continue to cross sell “high tech, high touch” world class products, exceptional
service, value & convenience.

§ Pay for performance by aligning Rewards with Behaviors.

§ Sustained business development efforts with our key referrals sources for
Commercial & Specialty finance.

NE Commercial Banking

Strengths & Opportunities

§ Local decisioning and authority with a Senior credit officers that reside in each
market.

§ Maintain excellent rapport with credit risk admin teams.

§ Deal screen prepared on each deal to provide quick level of interest.

§ Quick response time with multiple client touches & communication.

§ Large banks seem to be internally focused

o Lack of attention to client needs

o Very intense & slow credit approval process

o High turnover of Rm’s - business lines have no authority

§ Grow & Deepen relationships thru compelling and timely cross-sell/up-sell that
will prompt a willingness for Customers Bank to service their entire banking
relationship.

Right DNA

NE Commercial Banking

Pennsylvania and

New Jersey

Banking Private Owned Business

Investor Day May 2014

Strategic Vision

• Porters model of competitive advantage employing both Cost Leadership and Differentiation
to achieve superior financial results.

• Strategically located branches and loan production offices in high performing markets.

• Leverage technology to cost effectively gather and manage deposits and deploy the low cost
deposits to high quality small business and corporate borrowers .

• Differentiate from competition by employing Single Point of Contact strategy.

• The Single Point of Contact strategy will be delivered though a flat, regionally based sales
force, with local leadership and decision making capabilities.

• Outperform the ten billion plus asset banking institutions that have become disconnected
from the marketplace, caught in corporate bureaucracy, are slow to respond and compete
primarily on price.

• Outperform local smaller community banks who routinely provide the Private Banking style of
service, but lack the effective size, technological sophistication and resources to effectively
meet the clients needs.

Investor Day May 2014

Target Market

• “Mutual Fund” approach to target client base.

• Average size of credit relationship $2.5 to $7.0 million

• Broad spectrum of business and industries, no concentrations

• Clients that need “Value Add” in a relationship

• Price important but willing to pay up for a relationship

• Long term relationship oriented

• Clients with proven track records, experienced management, strong credit quality

Investor Day May 2014

Strengths:

• Highly skilled team members that can execute the Single point of contact strategy. Private
Relationship Managers that add value, not just order takers.

• The Commercial Banking staff has an average of 20 years experience in commercial banking.

• Technology as a way of doing business. Continued emphasis on Remote Deposit Capture and
the adoption of Mobile Banking on both a business and personal level. High Tech and High
Touch model.

• Flat organization with no business silos. Private Relationship Manager delivers the Bank to
the Client.

• Localized approval and decision making, bankers are part of the community they serve.

• Continued emphasis on strong and conservative credit culture, no compromise on credit
quality.

Investor Day May 2014

Pennsylvania and New Jersey Where Do We Stand Today

Current Infrastructure and Talent: The Commercial Banking function in Southeastern
Pennsylvania and New Jersey is presently broken down into four (4) regional sales teams and a
small business portfolio management/SBA Guaranty Lending Team. Additionally there is a
commercial deposit services team consisting of four people that support the entire footprint.

Team Private Portfolio Average Assets

Region Leader RM Outstanding Private RM

Berks 1 4 $272 million $54.5 million

Del-Val 1 2 $129 million $43.2 million

Bucks 1 1 $ 70 million $35.0 million

Phila 0 2 $ 11 million $ 5.5 million

Small Bus 1 3 $ 48 million $16.0 million

5 teams 4 12 $530 million $40.0 commercial/$12 sm. bus

Investor Day May 2014

Pennsylvania and New Jersey Where Do We Stand Today

2013 Production Highlights:

• Originated $265.4 million in new commercial and small business loans.

• Increased outstanding Loan balances $126 million dollars .

• Generated a Gain on sale of SBA Guaranty Loans of $1.0 million

• Increased commercial deposits outstanding by $70.1 million

Investor Day May 2014

Pennsylvania and New Jersey as a One Billion Dollar Market

• The goal is to make Pennsylvania and New Jersey a $1.0 billion dollar market in three to five years.

• Execution of the Single Point of Contact Strategy, a unique market strategy

• Drive business referrals from centers of influence and existing client base.

• Employ Technology to efficiently gather deposits and manage client relationships

• Create loyal customer base and limit customer turnover

• Build out the four (4) existing markets and teams

• Expand into contiguous sales markets by opportunistically hiring experienced teams.

• Specialty Teams support the entire regional market

• Measurable Goals, Metrics and Regional Business Plans

Investor Day May 2014

SBA and Government Guaranty Lending

• Customers Bank generated SBA 7-A loans totaling $13.2 million with a gain on sale of $1.0 million in 2013

• Customers Bank ranked in top 10 percent nationwide of 2,344 SBA lenders and number 10 in the
Philadelphia District, in total SBA guaranty lending.

• Incorporate SBA loan goals into relationship manager and branch manager goals

• Expand the SBA sales effort to cover the entire bank footprint from New England to Washington DC.

• Hire an SBA Sales manager and SBA Specialists in each market.

• Continue to partner with third party service providers for back office and technical support

• Increase partnerships with local CDC and other economic development groups in market to generate new
loan opportunities

• Target niche industries including Medical/Dental/Pharmaceutical, Veterinary, Funeral Services and
Franchise Food and Hospitality Services.

• Direct marketing into trade publications and conferences on a regional basis.

Investor Day May 2014

New Market Expansion

We will look to be opportunistic and hire teams of experienced commercial lenders in
contiguous markets with the below two markets being identified as expansion opportunities.

Mercer County New Jersey: We are already in this market form a retail branch perspective.
We are presently interviewing a potential team of lenders in this market in the Robbinsville
area and would look to locate a team in the Robbinsville, Princeton or Trenton area. It is
necessary from a CRA standpoint that we develop a lending presence in this market. This is
contiguous to our Bucks County market .

Lancaster County Pennsylvania: This market is contiguous to the Berks market and has similar
market characteristics. We have already been approached by a team of lenders to join us but
were unable to agree on compensation. We will actively look for other teams in this market.

Banking to High Net

Worth Families

Christopher McGowan

Jonathan Lewis

Banking to High Net Worth Families

Ken Keiser - EVP, Director of Multi-Family and Investment CRE Lending

•Over thirty-seven (37) years as a banking professional including:

•Eight (8) years as SVP and Market Manager responsible for CRE Lending in Sovereign Bank’s Central
PA region

•Twenty-five (25) years with Bank of Pennsylvania (now part of M&T Bank) in various positions
including Senior Real Estate Officer

•Worked as a consultant to Banks participating in the FDIC’s Shared Loss Program

Jonathan Lewis - EVP, Managing Director Business Development

•Over thirty (30) years of Lending experience including:

•Eight (8) years as the State Manager for NY and NJ for Residential Lending for Allied Home Mortgage
Capital Corp.

•Former President of Atlantic Coast Bank’s Mortgage Division

Christopher McGowan, - EVP, Managing Director Multifamily Lending (The Meridian Relationship)

•Over 15-years of experience in Commercial Lending in the Northeast.

•Former SVP & Director of Originations for Capital One / Beech Street Capital (Fannie Mae / Freddie
Mac seller servicer), prior to that Peoples United Bank, prior to that Santander Real Estate Capital

Banking The High Net Worth Families (Individuals and Family Offices)

•4 of the top 10 MSA’s are within our core market and house some of the oldest real estate
families in the US, primarily NYC and Philadelphia.

•These folks are our target customer for 3 reasons: geography, reputation, net worth &
liquidity.

•These are the folks who have the time tested ability to manage through any type of market.

•Typically 2, 3rd and 4th generation of the family in the business with thousands of multifamily
units under management and over 30-years of operational experience. These folks also own
other asset types like retail, office and warehouse. Customers has the expertise to execute for
all of these but the multifamily loan remains our core focus for these folks.

•Their reputation is paramount. These are not the folks who make late payments, but the flip
side is they demand a very high level of service and a quality execution. This what they are
used to.

Banking to High Net Worth Families

Banking The High Net Worth Families (Individuals and Family Offices)

• Typical entry to this client base is through a multifamily real estate loan. $4-$7MM average
size located in the 5- boroughs of NYC and Philadelphia.

•The Customers Unique 5 Point Approach - build on relationships, speed, flexibility, creativity,
certainty of execution that these clients demand.

•Primary focus is also Meridian Capital Group. Largest broker of multifamily loans in the NYC
market.

•As we grow as an institution we are exploring all options that our capabilities allow including:
Originating loans for our balance sheet, originating loans to sell to other Banking institutions or
investors (servicing retained or released).

•Our unique approach allows us the ability to generate assets in an efficient way and our
expertise gives us the tools to meet our customers needs and the needs of the organization.

Banking to High Net Worth Families

High Net Worth Families

Three years ago We were given the task of Building
Lasting Relationships with High Net Worth Families

Phase I-Planting (CRE has been the initial tool to make
introductions)

•Meet

•Set Expectations

•Communicate

•Exceed Expectations

When our customers speak to their friends we want to be a topic of
conversation.

The WOW factor.

Results

Phase 2-Polination

Our Results

•$121.5 Million of Loans in first 6 months of 2011

•$399 Million in 2012

•$836 Million in 2013. In the last quarter of 2013 we ramped up to meet
Bank needs.

•$623 Million in the Q1 2014.

•Total deposits currently $75 Million growing at $7 Million per month.

By being responsive to requests, honoring our term sheets and closing
quickly we created excitement in the industry.

WE ALWAYS ASK FOR REFERRALS AND DEPOSITS

Harvesting Relationships

Phase 3-Harvesting

•Follow up with customers

•Determine other needs

•Cross Sell Products-In the last 3 months we have identified over $100
million of C&I opportunities

•Get Referrals

Review results and repeat.

Who are our Customers

Customer Mix

•355 Plus Transactions

•150 Different customers

•Five C’s ( Character, Capability, Credit, Collateral, Cash Flow)-We are
highly focused and disciplined.

•We continue to be laser focused on credit quality.

•Our Q1’14 efforts taught us that a thoughtful quick response is a
Strategic Advantage

•Our customers are willing to pay a ¼ of a percent more for quicker
execution and certainty

•We believe that we are making an extra $4,500,000 per year as a
result of our execution

Banking to

Mortgage Companies

Glenn Hedde

Banking for Mortgage Companies

State of the Industry (prior to mid-2013):

•Industry enjoyed strong origination volume post-crisis driven by
refinance activity due to low interest rates

•Strong margins due to limited industry capacity

Annual Industry Mortgage Origination Volume -- 2006 - 2012 ($ Tril.)

- Originations are estimates from the Mortgage Bankers Association

Banking for Mortgage Companies

Current State of the Industry:

•Mortgage Rate increase in mid-2013 led to 50-60% drop in volume

•Profit margins shrink with excess industry capacity

•Moderate growth predicted in - 2014 thru 2016

Industry Quarterly Mortgage Originations 2013 & 2014 ($ Tril.)

* - Indicates forecasted periods per the Mortgage Bankers Association

Banking for Mortgage Companies

Customers Bank Business Growth

•Business unit grown from $0 in late 2009

Banking for Mortgage Companies

Key Success Factors:

•Very experienced team in sales, credit and operations

•Institutional Understanding/Commitment of Business

•High Service model driven by single point of contact model

•Strong Risk Management Controls

Attractive Financial Results:

•Fee Income

•Deposit Gathering

Banking for Mortgage Companies

Differentiating Factors:

•Financing mortgage servicing rights on a term basis

•Warehouse Construction-to-perm loans and other salable products

•Private Banking for owners of mortgage companies

Customers Bank

Operating Strategies

Q & A

Technology

Jim Collins

Table of Contents

• Customers Bank Advantage……………………………………. 101

• Single Point of Contact - CRM ……………………………....... 102

• Single Point of Contact - Business Intelligence……………… 103

• High Touch supported by High Tech…………………………… 104

• Malauzai Software……………………………………………….. 105

• BOLTS Partnership………………………………………………. 114

• Security……………………………………………………………. 117

• Conclusion………………………………………………………… 119

100

Customers Bank Advantage

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

Concierge
Banking

Other Products/
Services

101

• Account Management Features: Contact records – demographic information, as well as account history.• Activity Management Features: Calendars, task assignments, Outlook integration, etc.• Customer Service Features: Case/ticket management, agent workflow tools, service resolution tools (i.e. decision trees)• Mobile Support: Dedicated apps, HTML5.• Reporting and Analytics: Real-time dashboards for marketing, sales and service.• Sales Management Features: Lead generation, qualification, and pipeline management.

102

SPOC - Business Intelligence

Data Analytics and Distributed Data Views

•Provisioning the data analytics and mobile distribution will be
accomplished by QlikView (Qlik Technologies).

•Leading edge provider for this service and leader in the financial
services field particularly

Foundation Data Warehouse Architecture

•Oracle will be the primary database used to support the data
warehouse

•Fiserv will be contracted to provide OpenData table updates for
consolidated DNA information tables

103

High Touch supported by High Tech

High Tech

§Implementation of
technology suite
allows for unique
product offerings:

§ Remote account
opening

§ Remote & Mobile
deposit capture

§ Mobile banking

§ Picture Pay

§ Internet Banking
transition to
Smart Web App

Technology

High Touch

§Takes banker to the
customer’s home or
office, 12 hours a day,
7 days a week

§Appointment banking
approach

§Customer access to
private bankers

§“Virtual Branches”
out of sales offices

§Commercial & Retail
account opening
capabilities

Concierge Banking

104

Malauzai Software

Customers and Partners

Mission - Cool SmartApps, Easily Managed and Measured

170+ Customers in Live Production with:

- 15 different core systems

- 3 different bill payment systems

6 Strong Business Partners

- Computer Services Inc. - 460+ core customers

- Catalyst Corporate Federal Credit Union - 1,200+ capitalized members

- Corporate Central Credit Union - 300+ capitalized members

- CFC Technology - 500+ payment customers

- Bottomline Technologies, Inc. - 600+ business and commercial banking customers

- Jack Henry Symitar Division - 300+ core customers

4 Mobile Platforms - iOS, Android, Native iPad, SmartwebApps

3 Applications - Consumer, Business and Corporate, Enterprise Employee-Facing

105

Malauzai Software

106

Malauzai Software

Standard “Cool” Features

• Mobile Onboarding- Sign up for a new account via a mobile device

• Real-Time Account Data- Stay up-to-date with your account balances

• Quick Balance- Access balances/history with the touch of a button

• Picture Bill Pay- Take a picture of a bill to make payments

• Mobile Check Deposit- Deposit checks from anywhere, anytime

• Debit Card Management- Turn On/Off your debit card in REAL-TIME

• Personalized SmartApp- End-user defined custom views

107

Malauzai Software

Advanced “Sizzle” Features

• Can I Buy?- Automated cash calendar that predicts future balances

• Voice Mobile Banking- Allow end-users to talk to mobile SmartApp

• Video Chat- Deliver a superior remote service experience

• Gamification- Mobile rewards program to increase end-user engagement

• Mobile Payments- Pay any merchant, anytime, anywhere (future)

• Mobile Mortgage Quotes- Take a picture of a house & get a quote (future)

• Biometric Login- Increase security with fingerprints, voice and pictures

108

Innovation

“Can I Buy” Feature

This feature allows a customer to see if they can afford to buy something either
today or in the future. Based on their cash available and an estimate of a future
balance, a customer can make an immediate decision on what they can buy. A
customer can take a picture of a bar-code of a product OR enter details manually
(such as for a TV that does not have a package or bar code) AND decide on when
they want to buy and the Mobile Banking SmartApp will tell them if they can afford
it.

The SmartApp will automatically predict funds available based on looking at
previous transactions i.e., there will be no data entry, which is critical to making
this work as if people have to enter data, they will not use the feature. Think of
this as automated Personal Financial Management (PFM).

The “Innovation”:

Helping customers manage their funds i.e. making PFM useful to the
masses and the automation as it will require no data entry.

109

Innovation

Voice Mobile Banking Features

This feature allows a customer to interact with Mobile Banking using voice
commands. First, a customer will be able to hear their balances when they
enter the SmartApp. Especially when the customer is in “SmarText-Mode”,
the App will tell them their balance right away. Second, a customer will be
able to access certain features, such as bill pay or P2P by talking to the
SmartApp.

This covers both using voice as an “output” mechanism, i.e. read me my
balance and recent history AND using voice as an “input” mechanism, i.e.
Issuing requests to pay a bill or send money to a friend.

The “Innovation”:

Use of voice and ease of interaction with the bank via BankMobile SmartApp.

110

Innovation

Mobile Picture Banking

This set of features allows the customer to extensively use the camera to
perform banking transactions. Starting with opening an account where they
take a picture of their drivers license, through funding the account by taking a
picture of a check, and including taking pictures of bills to make payments,
the camera will be a main-stay of BankMobile’s SmartApp.

The “Innovation”:

extensive use of the camera which is unique the mobile device.

Real Time Person to Person Payments

This feature allows a customer to transfer money to a friend in REAL-TIME.
Using a friends debit card, which they take a picture of, a customer can
transfer money in seconds to a friend. This innovation here it REAL-TIME
transfers. Current P2P (via Harland as Customers Bank is doing it) uses
ACH to settle and it keeps volumes very very low. The debit card number
and the Visa settlement rails make this an instant transfer.

The “Innovation”:

REAL-TIME settlement AND the use of the camera to minimize data entry.

111

Innovation

Cash Deposits Anywhere

This feature allows a customer to make a cash deposit at a merchant
such as Walmart and get access to the funds Immediately. It is called
MoneyPak today (as implemented by Higher One). The feature uses
the GreenDot network to settle the funds. To our knowledge there are
very few banks doing this and one of them is Higher One.

The “Innovation”:

Ability to allow cash deposits from anywhere in the nation and the fact that
few others are doing it in association with a bank account (usually used for
pre-paid cards).

112

What is BOLTS all about………

•Serves Community Banks and Credit Unions in Solving Complex Technology
Challenges and Helps them Bring Innovative Products and Services to the Market
Faster, Better, Cheaper

•Uses Process-Centric Approach to Deliver Streamlined Back Office

•Develops Integrated Products that Drastically Reduce Costs by Reducing/Eliminating
Manual Processes

•Leverages Technology to Solve Today’s Demanding Risk & Compliance Challenges
by Embedding Controls in the Process Engine

•Provides Enterprise Business Process Work Flows to Connect 3rd Party Systems with
Bank’s Line Functions to Reduce Errors and Improve Service to Internal and External
Customers

•Provides Support As A Service Using Multi-Channel, Unified, Customer Contact
Management Platform to Address the Needs of Today’s Mobile Customer

113

BOLTS Partnership

• BOLTS team is providing integration and work-flow based
framework to ensure a fully automated customer onboarding &
support solution that includes:

• Real-time Customer Identification, Verification & Validation

• Real-time Account Provisioning (Checking and Saving with Overdraft)

• Real-time Debit Card Provisioning

• Real-time Exceptions Management

• Full Integration with Back Office Functions for Fully Automated Work Flow

• Welcome Kit Provisioning

• Support Case Management

• Contact Management Center Solutions for Mobile Customers

• Information Security Management

• Deep expertise in systems integration & agile product development

• Innovative solutions to reduce operating costs, increase
efficiencies and expand customer relationships

114

BOLTS Partnership

Automated Onboarding Business Process

115

BOLTS Partnership

Customer Support & Contact Management Solutions

116

Security

Current Threat Environment

•Malware

•Hacking

•Social Engineering

•Identity Theft

•Card Breaches

•ACH / Wire

117

Security

Solutions & Business Partners

•Enhanced Multi-Factor Authentication

•Intrusion Detection Tools

•Anti-Malware & Anti-Virus Tools

•Vulnerability Management

•Security Administration

118

Conclusion

Technology………

……………….drives innovation

……………….enables a superior customer experience

……………….creates operational efficiency

……………….supports regulatory, compliance, and security mandates

……………….significantly impacts the bottom line of the organization

119

120

BankMobile.com

Warren Taylor

Luvleen Sidhu

121

Banking of the Future

Mobility. Simplicity. No Fees.

122

Mission

1. Effortless experience

2. Loyalty Creation

3. Win / Win Outcome

123

Opportunity

• Capitol One, Schwab, Ally - have less than 4%
of US Deposits

• “Big Banks” can’t compete

• Durbin interchange impact

• Overhead, structure, bureaucracy

• Technology lags

• Value - fees, rates, service

124

Generation Y

Gen Y

What are their banking expectations?

125

Houston, we have a problem…

Mobility has revolutionized our world…

…however, banks have been slow to adapt

Millennial Desperate for a
Better Banking Experience

(50%) indicate they are counting on start
up firms to overhaul how banks work

A THREE-YEAR STUDY FINDS THAT
MILLENNIALS ARE LOOKING FOR WAYS TO
LIVE A BANK-FREE EXISTENCE IN THE
FUTURE.

With the widespread adoption of
smartphones, the use of mobile banking
services is expected to approach
50% by 2016 versus 15% today

126

bankmobile is born!

•bankmobile is a virtual bank designed for the on-the-go lifestyle
and specific needs of the digital consumer

•Our mission is to make the frustrated millennial say “Wow! I finally
found a transparent, effortless bank!

•bankmobile brings all your banking to your smartphone & tablet
letting you bank where, when, and how you want

127

Competition

Customer Target

Branch Density

heavy

none

Millennial

Baby Boomers

* not bank

128

How are we different?

Mobile banking is only an add on service adding
costs

Low rates & High fees

Product offering/pricing the same whether you
open an account in a branch or on mobile device

Defensive: Mobile apps are not used to attract
new customers; Only to respond to demand for
mobile with a costly & large branch network still
there

They just have a mobile banking app…

129

Banks are looking for ways to cut
their branch networks

Branch Sales and Closings Since 12/31/12 by Top 50 Largest Banks

Source: SNL Financial. Market data as of 4/30/14, operating data as of most recent quarter

130

How are we different?

Virtual Banks

• Attract age 55+, higher
balance, rate sensitive
customer

• Not focused on creating
simplistic mobile
experience with innovative
banking features

Internet Banks

Neo Banks

bankmobile

• One of the first mobile
virtual bank

• Effortless, simple, superior
user experience, premium
customer service, free ATM
access

• Absolutely NO Fees is our
goal; HIGHER rates, a full
suite of banking products

• Commitment to building a
trusting community of loyal
customers through
financial education and
transparency

• Provide superior user
experience, simplified
banking and above average
customer service

• Revenue model built
entirely around interchange
fee from debit or prepaid
cards

• Do not provide a full suite
of banking products &
services. Little cross-sell
capabilities

131

Guiding principles

Keep it simple - with goal of NO FEES

Best-in-class user experience and
customer service are how we will win

We need to speak with an authentic
voice - absolute transparent disclosures

You can’t manage what you can’t
measure

132

Product Launch Plans

July 2014

October 2014

• Picture account opening

• Checking account

• Savings account

• Real time account data

• Remote check deposit

• P2P payments

• Picture bill pay

• Traditional bill pay

• Debit card management
(on/off capability)

• 4 digit pin

• E-statement viewer

• Automated customer service

Jan 2015 & Beyond

• Can I buy feature

• Voice mobile banking

• Gamification

• Biometric login

• Auto loans

• Mortgages

• Credit cards

• Prepaid cards

• Insurance

• Video chat for personalized
customer service

• Text chat

• PFM integration

• Marketing offers

• Daily financial tip “push
notification”

• Increase debit card limit

• Real time P2P payments

133

Product demo

134

bankmobile strategy

Who are they?

Why are they
attractive?

How will we
do it?

§ Ages 18-35; Largest generation at around 84 million

§ Not just future customers, but influencers

§ Millennials rank the four largest banks among the 10 least loved brands in
America

§ Tech savvy, tech dependent, largest group of mobile users

§ 33% say they are switching banks in the next 90 days

§ Overburdened with debt

§ Purchasing power over $1.3 trillion

§ Looking for banks to provide financial knowledge and advice

§ Partnership with Higher One; access to ~250K graduates each year

§ Create hype and engagement through multiple social media platforms

§ Utilize college students as brand ambassadors

§ Develop & distribute content on financial topics to build loyalty & trust

§ Digital ad campaign

1. PrincipallyTarget Millennials

135

Customer acquisition

Attract users leveraging a multi-channel marketing approach

Channel	Strategy Detail
PR	Target key blogs & publications. Pitch ‘mobile’ and ‘community bank’ focused message
Social Media	Establish FB & Twitter presence & drive traffic through commentary & questions
Blog	Leverage to give bankmobile a personal touch and communicate our feelings and opinions to users
Conferences & Events	Secure panel & presenter opportunities to promote the bankmobile team & brand
SEO	Entire site is optimized for content search and discovery
Affiliate Marketing	Affiliate sales model / campus ambassadors
Gorilla Marketing	Campus activations, campus tours, etc.
Above the line advertising	Select advertising through digital channels, including paid search and targeted banner ads

136

bankmobile strategy

2. Affinity Marketing

Objective

Partnership
Structure

Examples

§ Create affinity relationships with not for profits as well as profit generating
organizations

§ Members, followers, or customers must feel passionate about the
organizations we partner with

§ Develop a win/win partnership - Enter into a marketing fee agreement

§ Customers receive a branded banking experience

§ We financially compensate the organization our customers are passionate
about

§ We receive loyal banking customers

§ Credit card companies targeting affinity groups in the 80’s

§ USAA & Veterans

§ Bancorp Bank & T Mobile

§ We plan to target alumni associations, foundations, charities, advocacy groups
religious groups etc

137

Revenue model

bankmobile
Revenue
Model

Interchange Fees

(Debit & Prepaid)

Margin from Interest
Bearing Deposits

Margin from Non Interest
Bearing Deposits

Offering Credit

bankmobile Advantage

Banks below $10B can generate at least 2X more from interchange than banks
>$10B

138

Goals

Over a 5 year period, acquire ~250,000
customers

Make 1.25% plus ROA

Make 15% plus ROE

139

“ideas are just one thing; execution
is everything.”

- Jay Sidhu, CEO Customers Bank

140

Any questions?

141

Future Financial Model/

Risk Management

Robert Wahlman

142

What Makes Us Unique

§ We are building a new kind of bank using technology and relationship
building to develop a new kind of customer relationship

§ Our innovative organic growth model is a great way to build a profitable
bank and create shareholder value at a low cost

o The branch lite, high touch/high tech, single point of contact
approach builds strong relationships while it lowers costs

§ Selective M&A of smaller financial companies gives us access to new
geographies or products that we expand with our organic growth model

§ We focus on rapid growth of strong credit quality niche products and
deposit products providing above average returns

§ We support our businesses with state of the art technology obtained
through partners, converting developmental costs to variable costs

§ Bank Mobile provides an incredible opportunity for future profitable
growth

143

Q1 2014 Results

• With one time items, in both revenue and expense, of ~ $3.0 million
each the net change to our core earnings was immaterial.

144

Hypothetical $6.5 Billion Bank

145

Customers has adopted a CAMELS+ approach to identify, measure,
monitor and control risk throughout the organization. The eight
phase process is shown graphically below . . .

q Set Risk
Thresholds/
Tolerances

q Horizontal
Risk
Assessment

Capital

Asset
Quality

Liquidity

Sensitivity

+’s

Manage-
ment

Earnings

q Vertical Risk
Assessment

Pre-Phase

q Setup Risk
Committee

q Adopt
CAMELS+
Approach

Model
Base
Case
Scenario

1. Variable
Stress Tests

2. Enterprise
Wide Stress
Tests

Two
Approaches:

Stress
Test the
Base
Case

Model
Alternative
Scenarios

Pro Forma
CAMELS+
Assessment

CAMELS+
Assessment

Identify
Trigger
Events

Mitigation
Strategies/
Policies/
Procedures

146

CAMELS + ERM Program

Enterprise Risk Management
Tone at the Top • Risk Management Compliance Program Board of Directors • Board Risk Committee • Board Audit Committee • Board Compliance Committee Capital Committee • Loan Committee • Management Risk Committee • Asset Liability Committee • Management Compliance Committee
C	ALCO Capital Committee Treasury	Capital Policy Capital Plan Capital Metrics Capital Stress Testing
A	Risk Management Committee Loan Committee Watch List Committee ALLL Committee Credit and Loan Review	Performance Metrics and Monitoring Migration Analysis Credit Concentration Analysis Underwriting Policies
M	Risk Management Committee Various and numerous Policies and Committees Corporate Ethics Policy	All Metrics and Monitoring All Stress Testing Strategic Plan and Budget All Scorecards Enterprise Risk Management
E	ALCO Business Review Committee FP & A	Annual Budget and Continuous Forecast Annual Strategic Plan Performance Metrics Monitoring Budget to Activate at Manager Level
L	ALCO Treasury Risk Management Committee	Liquidity Plan Liquidity Performance Metrics and Monitoring Contingency Funding Plan Liquidity Stress Testing
S	ALCO Treasury Risk Management Committee	Interest Rate Sensitivity Analysis Interest Rate Risk Metrics and Monitoring Interest Rate Risk Guidelines Interest Rate Risk Stress Testing

147

CAMELS + ERM Program

Enterprise Risk Management
Tone at the Top • Risk Management Compliance Program Board of Directors • Board Risk Committee • Board Audit Committee • Board Compliance Committee Capital Committee • Loan Committee • Management Risk Committee • Asset Liability Committee • Management Compliance Committee
+ + + + + + +	Compliance CRA and Fair Lending Bank Secrecy Act Legal and Regulatory Reputation Operational Risk Information Technology	Board Compliance Committee Management Compliance Committee IT Steering Committee Internal Audit Legal, Finance, Technology, Operations Functions Operating Policies and Procedures Annual Internal Control Review and Effectiveness Assessments Public Relations Plan Investor Relations Plan Security Information Plan

148

Q & A

149

Customers Bancorp (CUBI) 8-KRegulation FD Disclosure