BMTX - Earnings call transcript Q4 2021

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Operator

Good day and thank you for standing by. Welcome to the BMTX Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Bob Ramsey, CFO. Please go ahead.

Bob Ramsey

Thank you, Jerome, and good morning, everyone, and thank you for joining us for BM Technologies Fourth Quarter and Full Year 2021 Earnings Call.

investor of both ir.bmtxinc.com. the and Investor on release page Relations company's earnings presentation posted are the Our website at

investor and details on important pull presentation be copy. Our through walking up that a this encourage I we'll call, everyone to morning's includes

the call my except Please Thank by laws. detailed Form and applicable XX-Q, to to SEC for statements performance These Sidhu. of section begin, the differ This the anticipated. including of forward-looking light actual these obtained materially website. forward-looking affect may from At may undertake our refer Please be note to subject CEO, statements by a speak update what Investor to time, of Chair would I'm number factors the by extent is in more our the SEC statements filings, from our results. XX-K risk currently this and some new securities we that I may a Copies information uncertainties cause only date and to you. today statements joined that we this these it's may required our to as the remind of morning, BM the Luvleen Luvleen. presentation Relations or are turn make Before Technologies' obligation that be visiting risks of future over no that you forward-looking results like of or we considered forward-looking. to to of and pleasure events, description

Luvleen Sidhu

XXXX joining Full Earnings BM Good Technologies morning, Fourth Year for everyone. and Thank Call. you Quarter

our the Bob also is if available call the line Diegel, Q&A joining Bob who on us today CFO; me on Joining and Ramsey, needed. during section and is the COO, is our

last and are and year results highlight to accomplishments sharing QX record full be with also thrilled our over year. our great the you We

awards connection severance related of get to yesterday, started, awards also divestiture wanted restatement that financials of XXXX, we the associated expense These expense and Board since BMTX noncash but reported was they X, Customers Customers an because filings, executives in Technologies. certain not BM by awards. its Bank was Bank were company's BM it we our Technologies' to granted considered BMTX management the a January made our were of to employees recognized announced with in Before involved of by award. not I granting acknowledge and these the of in

and granted share-based technical of determined included Technologies' in expense analysis be to the company's the accounting severance no awards emphasize equity noncash I fundamentals. this this financials. related Ramsey previously balance, reported operations and the core or that EBITDA further correction details more upon share will has customers BM shortly. underlying stand-alone no these company's impact However, Bob or compensation company should bank cash revenues, principles, to that want impact its on assets business on

to on now more exciting So matters.

today. For digital those of joining of in and the are. banking the overview I brief one provide platforms Banking-as-a-Service very country a time, is BMTX wanted for we the to us who providers largest first

and bank charter to fintechs model the business first one affordable public last profitable go experience. bank to We mission Americans model, business to an first of into financially profitable a empower on are a the a embracing of create now providing to a first neo-banking more with have a pursue the future. a fintech are are among fintechs the consumer-friendly sustainable, and innovative We transparent millions of year, by one were We customer. an a banks, traditional than customers are edge exorbitant This main Banking-as-a-Service we acquire a Today, which leveraging $XX. spend banks, us are X and to customers strategy and in relative a to verticals. having low and provides bank Banking-as-a-Service challenger only most tremendous volumes. BXBXC cost at strategy, our acquire acquiring but also not at we amount allows Today, BXBXC bank to to high for which at competitive to less us banking are

The relationships in XXX approximately education bank. which across through to every first country, us offer Technologies BankMobile touch the and open students a X choice where introduce our checking being them with to allows vertical, campuses we X our and have a higher college-bound BM to account partner them Vibe

fintechs as The Through second platform business. API-driven label able vertical is our to Service launched a we branded and white financial fully Banking-as-a-Service proprietary help our our and are brand interface, would of services their own. products a out them to fraction the at time their to their it take roll employees at this to the fraction customers of on and a and Banking cost

with them customers, data adding more experience that accessing strong loyalty, of building and new their greater provide to to offerings point new customers. customer even streams personalized an revenue provide leads differentiation to Our a attracting

a and Additionally, we risk important and which competitive space. the in program fraud customer compliance, management support, manage banking the operations, provide and is an entire end-to-end also edge back-office Banking-as-a-Service service differentiator and

is T-Mobile today vertical our partnership and exemplified Our MONEY. product, with vast checking with our of launch best the T-Mobile by account

this and relationship. We significantly grow to continue expand

our our nascent Lastly, is vertical most vertical. direct-to-consumer niche

market to as More have direct-to-consumer next executing about over X in come before, already to segments. billion continue to X standpoint, to employee an other will targeted This And next the executing our be beyond From we foundation have this and by We to to continue attractive laid on we'll we've our to the progress the on with strategy and continues continuing high vision conviction we of years focus to need XX X upon overall, solid a the over in that underserved $X but strong on that demographic have. in extend affinity a to strategy market months. to include the out $XXX value groups. talked verticals. of X cap building a all company to financial create we make million

and the year get to delighted to X. full quarter So results XXXX. you report fourth Flipping started. record let's Slide am I to for

$XX.X XXXX. XXXX to QX increased XXXX pleased are full $XX.X up revenues from increased revenues in from $XX.X year million XXXX. million, to $XX.X report We QX XX% million in to million XX%

$X.X million of million in $XX.X and or in loss of XXXX. EBITDA earnings $X.X XXXX share share from QX over from a XXXX. $XX.X Additionally, to core year to compared diluted were compared core million to core XXXX, million per $X.XX $X.XX loss were XXX% in core XXXX. million QX QX diluted per or XXX% $X.X in $X.X XXXX increased to million a million EBITDA $X.X $X.X million QX increased earnings full

continue strength Lastly, originations, opening show in new account XXXX. we XXX,XXX to accounts in new approximately

to on Slide X. Moving

increase. a deposits increased to billion XXXX. XXX% a over our service new which to deposits see that $X service compared totaled to business $X.X XXXX, QX You QX billion $XXX can average XXX% Average increase QX about in XXXX, is million compared

new a billion increased deposits and a deposits ended above As beyond XX% reminder, indicating Banking as direct-to-consumer are also includes the banking months business primary a XX and our and strong our our school year-over-year these niche -- Service banking as for organic verticals. reminder, that segment business, to XXXX, organic student $X.X behavior. any December In are deposits These disbursement. XX,

QX QX debit QX million spend was increase increased compared XXXX. Additionally, to XXXX, to compared debit XX% card And business XXXX. a in new $XXX XX% spend

accounts the refunds which in to was for held Lastly, our year, we of full billion education BankMobile bank. the $XX.X at billion deposited in higher students $X.X Vibe partner vertical, dispersed into

to Slide move X. Let's

the in performance strong see to overall business. continue We

about $XXX and less to or XX% per at active Our metric by revenue balances Again, cost, healthy The strong per increased XX-day low XXXX. CAP, our year-over-year demonstrating account than some the our our pass acquisition across approximately Ramsey, strong financial the remains Again, on is customer margin account be for fourth portfolio. financial more revenue record driven in I results for average spend per $XX, our additional quarter details. full account XXXX. and will basis. now CFO, a we year on to Bob excited it couldn't

Bob Ramsey

been business year-over-year spend fourth. typical seasonal Thank vertical. referenced also that deposit the XXXX of tailwind year. the is peaks by strong as and you, growth the our and business stimulus is the third business lower in in with first evident in and in new in education half evident spend and But growth really in and as from higher first both in the seasonality end The second quarters the the spend balances Luvleen. The well both driven Luvleen XX% higher has

X. Turning Slide to

You on can was year-over-year quarter from a fourth increased increased back fourth service average fourth little increased for in quarter quarter timing and XX%. step XXXX The of XXXX, the all a a of quarter exclude XX% total quarterly the debit approximately by deposits XX%. the increase of see disbursements fourth XXXX volatility, spend to from basis And taking to XXX%. the to disbursements

compensation from to separation already X. want to though Customers we should the to because restatement not connection recognized we received preparation after it GAAP our financials award severance that the awards consideration Slide with divestiture these a be accounting made BMTX the expense with disclosed even in the that was Customers as have connection based the the U.S. was expense I related Luvleen of closed. employees. did certain make an that financials, X, technical We Customers but discuss to of minute in award considered January as made consolidated it Bank XXXX, application Customers awards Turning shares of the the noncash to expense referenced. of In in the financials the had included on Bank, that associated In did merger take stand-alone year-end our awards. determine our not previously

the our for the need to reflect to quarters we've those of a appropriate be issued previously that concluded awards. restated accounting of As XXXX financials X result, first

total activities business to It very liabilities, EBITDA, activities. the capital or reported impact equity, financing company. expense underlying previously total It want investing no its noncash or operations is no company's on effect this the or assets, Now emphasize restatement touches this working operations, scope. has flows narrow correction compensation on of the total cash, I the has company's revenues, that from Similarly, net in fundamentals. cash only

amounts you the million. to see can the Slide by and here release this I grew XXXX geography XX% our would that XX to do $XX.X year-over-year XX, which deck, additional and point the of in filed restated point earnings Slide to that restatement slides was Our On appendix an that investor touches. details revenues for in amounts. reflect you exactly morning our the And impressive

to of balance Luvleen exceeded back to guidance. our approximately note our we that, discuss just XXXX, the $XX grew I'd remind expenses on it million. in core much growth, to yielded our I'll Our more also EBITDA disciplined combined million, expense revenue expense a management increase core million strong which over in with With to by paid million increase The $X over cash $XX.X sheet million an Slide $XX off and I'll also impressive X% debt. $XX.X everyone modest full in our year during discipline, that resulted turn X.

Luvleen Sidhu

would few Thank I Bob. provide key you and highlights accomplishments On of you, with Slide X, a like now to XXXX.

strong one deposits go First, let billion. to we first over the XXX% public this, the were with On exceeded and over revenue XXXX. forget average us XX%. increasing our guidance of finished EBITDA in successfully with and over year-over-year year fintechs performance increasing We of top $X not neobanking grew

we step vision forward in the business a merge agreement definitive disruptive Washington-based of Sound was a a Additionally, bank, executing to First our create Bank, major Seattle, signing which to fintech announced bank. with a

profitable in a order We company regulatory similar the these the working for the Similar as step are fintech merger. VORO we fintechs innovative a taken SoFi. LendingClub, create our to and to plan we believe sustainable, Square, merger marketplace with are numerous a with a application submitted such critical in future. few process growth the a joining other through as of likes other combining this recently step fintechs, that opportunities in is of We a and have the charter,

in We merger close excited of we chartered the will And as expect a our bank. about fintech opportunities half XXXX. the sometime are second

business. our Banking Service Next we to expand continue a as

Name their display example, continue account. MONEY of that name T-Mobile card. expand their and debit the to chosen the T-Mobile Mastercard, as product can T-Mobile on now features we use customers MONEY customers by MONEY For True feature a

account. Additionally, also T-Mobile open can customers account now savings MONEY checking a

selected that leading the organization. of share Partnership to XXXX, as one T-Mobile proud BMTX also at Finovate and are We Best were FinTech fintech

For launching of the have through MONEY innovation the checking we account. T-Mobile together demonstrated the

aspire to board Lastly, partner our Banking-as-a-Service X months. still on pipeline meaningful significant XX XX and remains we every bring to [BaaS] strong,

our business. demonstrate to in continue education also higher We growth

and students grow the year to In we full $XX.X account. refunds BankMobile opening hundred side December students disbursement continued BankMobile of billion new added and new XXXX to universities through addition and XX, business student several additional dispersing thousand to XX the to our in Vibe providing accounts, XX,XXX roster for access BXB XXXX, to colleges also over our and the checking

our and In which our a colleges stickiness vendor increases with with addition, offering, revenue small provides we pay opportunity. X us and signed generation even up for schools universities new

students we months X and Lastly, stronger for lifetime are rollout over non-enrolled to product the next credit to engagement drive value. graduated a or preparing customer XX to

Next, customers. we in gives opportunities continue last is college to I that we we on covered to time, of to front of this on us. and work we Slide relationships that have, expanding tremendous student here XX. who students can In our point growth to number potentially which more the continue account the convert have bank us access business,

investing product offering to to regards partnerships, our T-Mobile existing Banking-as-a-Service retention. With enhancements bank continue drive product for also marketing account and are adoption enhance We in MONEY. to we more and

also to on continue our We partners. for new work pipeline

this we with at time that bring can to with choosy and scale. picky and brands with larger committed work bit a are working remain who to We want

On possible we X our insurance. offerings reiterate have with where of equal example more. includes advice, announced opportunities so and want banking, investing can to Bank. we plus merger platform we M&A Slide product X our Lastly, best-in-class Sound banking X XX, are lending, The open this to exploring or strategic latest digital First that the also is continue we expanding crypto, that

We will products key I add services X over months. to and Slide next XX as our end we would by highlights. continue keep posted to to summarizing XX, investment like the you On new

up year-over-year with We over up continue results and EBITDA to record over share year-over-year. XX% core revenue XXX%

demonstrate accounts. customer approximately base accounts XXX,XXX We X We customer and new an solid had growth account million with XXXX. approximately established engagement. opened deep have in We

to higher Our XX% year-over-year increased revenue driven average per XXXX, in account approximately $XXX and by balances spend.

partnerships XXX with and strong T-Mobile. have partners approximately existing university We

a We with to and is developed which quickly partners roll proprietary easily. out have Banking-as-a-Service integrate API-driven platform, and ready

and excited private attractive public is once line our merger we Once dedication whose for valuation, a And a bank. become is investors of Operator, BMTX peers. shareholders and all complete, this fintech discount support and questions. we more and relative about have deep the their again, of both couldn't growth I very now passion you. we want members like to be continued prospects and our makes today lastly, We would at possible. which also to the to thrilled to for thank true all team a and our Thank open

Operator

Securities. Mike comes of Your Instructions] [Operator question line first from the Grondahl with Northland

Mike Grondahl

whatnot. XQ? just some question, revenues I a onetime ago, adjusted First in or of anything know quarters EBITDA was couple for -- there like development fees and

Just trying there's anything understand if to onetime.

Bob Ramsey

Yes.

one, happy So I'd There's really take anything that not be to Mike. onetime.

quarter, I not that said times out revenues does and be of they in onetime, development-related There would in less our a tell our and have onetime that but million, what do have are the that little call in are is but some certainly We would but lumpy, earnings I they And EBITDA. reconciliation are quarter. would was that calls you have in It that onetime that in and as be was it recurring would nature. it exclude we point fourth the consider nature. expenses I not there in revenues that. what $X than at we $XX,XXX core we you characterize was the about to onetime. would that I merger-related that [not] to bit

Mike Grondahl

had RFPs, X was an I in and large guys thought still were XXXX. roughly Are to they And think out? guys a bank. you Did a one you big-box grocer, retailer the I enough. going think. then year you said pipeline? fall had a in those ago, Fair There get you international

helpful. there update an would Just be

Luvleen Sidhu

Sure.

put life create out that larger given of actually talked cycle on these individual brands are very strategic because -- et being nature said, the longer sort or Mike, closing these we've much these we tends these in don't secretive That like in strong and hard said, because to call have I nature, companies emphasis As this. to differentiation. to pipeline. really about be of priorities brands, what cetera, very We a how how work

a heavy diligence it's very process. so And much a

will pipeline, and that the to soon. All optimistic of opportunity good opportunities news the we the very we're bring to market some in still are those have

Mike Grondahl

in sort of strong through? keeps to or growth out Anything was think it. employed your of that can you pushing that -- Got call that business kind marketing category, anything help new that us

Luvleen Sidhu

general, in constantly and think enhancing we're I innovating both and marketing our products.

to, to daily So the individually, on and product make of fresh, there's that but product the our to new importance very product nothing bringing at marketing positioning, that forward value and our to and branding, we best constant call teams hold out work iteration closely to These sort look sure innovation the our constant all are proposition to constant that market matter of continuing enhancement. pursue. of keeping our on something we're the actively evolution, and are things

Mike Grondahl

I'll EBITDA jump queue. ask the or In then million. press release, think you of you'll consensus $XX adjusted back for meet it. the Got exceed estimate 'XX for I one that said more guys and in the

and Do in trying You And really $XX.X XXXX $XX.X guys relation growth. some to think I'm did core to XXXX. question that just million in stuff number XXXX? million is core? of is -- or the through the you the closer development of to -- guys just And in sort to million growth about consider how just the the that because you that had $XX fees in think

Bob Ramsey

take one, I'll Mike. that So

and we are actually had The it recurring core I do in We our piece fees think call core noncore. consider we to that of development-related So business. XXXX strip a anything EBITDA consider absolutely be the core. we EBITDA out

tailwind part a the have And so stimulus there. first I that XXXX. in leave of from would We did certainly in

that all XXXX say dropped. that debit expect We or times our to core that I to mitigating business. spend as is certainly that we is the challenges were But at consensus core and still number. exceed meet think there in did

I focused. First as transaction when bank, different meet feel able tends I to closes those are very right we we we'll exceed But numbers evaluated because think may we full at Bank pivot be Sound bank EBITDA sort are of on now look there think numbers. that more year than to fintech depend numbers becoming metrics consensus there be will that a that out when the the to be or good

Luvleen Sidhu

Bob around year as we this do of uncertainty to just well, And be and continue merger. to some the sustainable that optimistic over timing. we for there's years. to the to able merger expect that EBITDA want revenue, latter I emphasize strongly and future we're to that I combined believe in profitable. building very do We're execute trajectory earnings want Yes. the half do to that, as X next emphasize the the be the said, that company will on And significantly we company's still successfully very the And has accretive a that will X

Operator

question from line Maxim next Group. Michael your comes And of with the Diana

Michael Diana

Luvleen, once something from you become a actually bank? remind a benefits how the could metrics model could different Bob, in mentioned -- us And changes about look you you going just are us your tell you you once business financials of and/or can bank? the to become you changing,

Luvleen Sidhu

absolutely. Yes,

to can I Ramsey me your of sorry, question. call get second part Let started, answer him Ramsey. your continue then -- Bob

benefits for model us think in becoming this that business to there's And direction. best we many fintech the operating excited, we're bank. so go in. that So the And for I are a it's thrilled, about

more provides and those expand two, as the but in that Specifically, very offering into you or more a Service, the to client meaning provide but a only compelling asset-generating low-cost gatherer the a deposits partner, charter And technology wants strategy provides supplement it provide volume. for engine. that program Banking a we acquirer integrated really the only program, able already being X to to an you a able it which experience, vast deploy are all. to not and the for to better way offering also sponsor deposits to bank great with not share our you also to vertically is economics could X economics be having work with platform, is for future, of less opportunity at friction adds powerful you because Number is now complicated which X an maintain high

very So tangible that's benefit. another

customer the talked Third opportunities, is, being and cetera. are really by products charter and as operating sponsorship services, new a that access lastly, think services that and cross-sell provide bin now customers, offer our And yet, opportunities, and of them opportunities able able for. only greater models and our the not products revenue products, suite to being et for other untapped value to broader the really even to We're lifetime also beneficial a all lending, which fintech and that debit deeper things the to support customer of enabling I our haven't about model bank. really untapped to looking but that we're are expansive, find future we cetera, and forward we're opening experience et are bank in is door that more a fintechs payment, opportunities revenue having these

Bob Ramsey

bank that revenues. and interest X% a would about it's deposit you today, increase would -- go I'll as of Most tell -- when revenue between as fee look expectation a What Mike. margin look All do we Thanks, servicing would that be financials item will that greater real to know that, reasons one net profitability we our the say monetize deposits. servicing business I item, generate the transaction would I at XXXX, a to that by of more all of had put, would the bank. so somewhere so -- we X% you how interest came driving deposit asked become Simply that be and Today, And a then to jump deposits that different percent the we do right. of the that look we is of I if out income revenues statement replaced have this income. could be and our we be will do and fee, net X.XX%. same. as generate is away our to

a order little that take to time into may that generate bit in a of portfolio. to it grow to because margin, we'll leg have loan Now

and we know noncash a I we reflect all you losses off concentrated greater -- is expense that the I more be would justified generate than the we'll provision cover portfolio, and statement. banks start is But portfolio, will may sort transition a be earnings margin see down will to we loan that, your but you today. when think securities revenues is we heavily part a of grow as wider expected as that the servicing build, But of income that dust we what on so And by bank in net normal that which greater a there short-term bit well. sort have attention also of little -- than all fee as a settles will call the more road. loan interest

You on addition some statement would and expense provision will see the basically of same. the the the be other items income

Operator

Brian the Dobson next Chardan Capital your from Markets. line of with question comes And

Brian Dobson

[indiscernible] you partnerships flipping you companies Banking of guess needs? or rather think on So as your be are branded I to over what service? as Service, you ideal of a seeking to do Are would consumer continuing for types focus types what

Luvleen Sidhu

Sure, I'll this take one.

and XXXX it's XXXX, is. I finance. finally, astounding. forefront for of were and the become can with had now that And we're, brands in model business number we a that that back reflect into and you really business in T-Mobile later, back we if really companies. And how insight XXXX, coming one, It's a of [sort] and be Banking this powerful it's of embedded that such think -- and such Service a looking in powerful how signed as remembering for a contract really model years to first mover space think I in has So back graceful kind this the buzzword

the it's pipeline number help sort potential for been saying so is engine educating how you it us of execute powerful two, And normalized. can it's companies on are the can us instead be realizing -- it's this. And benefit now because and them. to been Brands, almost a we what like potentially about it's been recognize socialized, benefit coming helpful us of

and evolving to people how evolution us. helping and is how wanted insight that understand I So that business so provide model background is this actually

type generically, Banking business the many different Service powerful finance, as be -- Second, of a can in models. embedded

a scale I sort think larger is sort to And of greater get that balance a of take these lot support. of work companies, scale started, brands the of to on fixed that the being you much able of lot doing just a is with out work the program really of higher obviously to because intricacy, some -- programs investment getting better faster. cost return

embedded sort we And so where for us, engagement. brands have customer this place there services nature. between natural the of look access strong and natural already very strong seamless case some customers large millions experience can is financial that taking the already be of they customer and a at potential can be that have to, Maybe brand of And use embedded. hopefully, loyalty, sort of in is and transaction

board, the that -- are model. so I subscription the we're at. fintechs, really different And the can retailers, of mean, many modeled e-commerce, models Banking-as-a-Service from benefit grocers, I looking so things some those And recurring across many so mean,

So hopefully, that's helpful.

Brian Dobson

looking in Americans fintech pertains the big And of I future at X That's very company? to the are market your the picture, own about helpful. as that your then roughly in servicing guess, thoughts Bitcoin What X now. it

Luvleen Sidhu

Sorry, I Did coughed it. Bitcoin? and say you missed

Brian Dobson

market it did pertains your to say of was about that X servicing What's Americans. not your it fintech as X I a company? but about Bitcoin. -- in thought all Yes, sure and I'm It's

Luvleen Sidhu

Yes.

moving the X Bitcoin, able happening for have to X more quarters access going XX a no the under where financial think example, for there the over last to of them which be So we X months, all us, back is deck that foundation. services really owning And services is products expectation the types to to kind wants doubt one, one means -- last a for I to convenience strong that consumer, we've the slide maybe that that American understand in an that had number that's enable financial of in unbundling in one that rebundling XX, have umbrella are now. financial really to from

And it's this XX% at how financial hey, can to to our that so financial services and their they're customer if incorporating of us be how Americans you kind own customers. begin have and like, we our value see to And on can provide this a opportunity planning, we into as to experience customers. of the provider, to best, look that most that compelling provide and

it of that as round regulatory think looking regulation about months. we sure are to think Hope XX the is, features of product innovation, out is we sort to over environment. have at that we're And the with we our up making that product of I mindful X that how being next so And also it would that's many helpful. and able we that And of one to that to in the comes anything be of terms market. speed mindful the respectful bring of offering to

Brian Dobson

that's No, And final then one question. Yes. great. housekeeping just

tailwind core think so You at look can for apples-to-apples growth kind you the a year? last mentioned that Do quantify can the stimulus we you year. of coming

Bob Ramsey

Yes.

relative bit it's gives would to a of was say I our but tailwind, revenue. It not are a and overall there certainly significant takes. So

numbers to be expect year's certainly we last materially. them revenues and to to off grow able of continue grow -- So

on So emphasis I that. wouldn't put much too

Operator

And your Sakai Chris of Singular Research. line from next with question the comes

Chris Sakai

just workplace Does dropping idea you're sort the about rebranding strategy. banking had Just a BXC of that this or mean question the it?

Luvleen Sidhu

this. take I'll Yes,

So this thanks bringing for up.

so rebrand because did say, could sort it want limiting we and didn't vertical, in we this you it's nature. of to be So

people pretty of I become to looking is them. what more that is is think a very it's market wide-spread important what direct-to-consumer relative experience saturated to that mass them, for to unique personalized clear sort are and strategy

And be to BMTX continues of or where think served the that can opportunity are so potentially or in niche there currently more where sort thinks certain better I do personalized market, by an underserved where nuanced, approach. being be a taking is segments they still

we that no limit banking to question want angle there's just And angle workplace point. and so think is this take that so an direct helpful? away. employees, continue didn't because Is to in the within to we your opportunities But for solving gain pain we employee actually about vertical, that and way going an that it that will beyond employees

Chris Sakai

a Yes. can Do to all had subset? just pay universities you think vendor the then I Great. a And about option. market question you or

Luvleen Sidhu

So definitely...

Bob Ramsey

Yes... So definitely --

Luvleen Sidhu

ahead. Go

Bob Ramsey

all. be definitely We'll Yes. it marketing

Chris Sakai

QX Okay. you they And to been a ago? compared on 'XX trends? have year comment How enrollment can

Bob Ramsey

you to tell even though would statistics normalize over, is that's be a would that, significantly will too I lagged too was is broader I reliable expect early numbers just overall is that other but say data. are in some things to since COVID say. QX there moving in reduction that it's early I trend direction, as to would very technically that that back the the reliable enrollment difficult get enrollment. have it's and

Operator

Capital. And Dezellem line Bill next of with from your question Tieton the comes

Bill Dezellem

First relative the your students. nonenrolled question about please? there, more is to talk comment strategy and Would about you graduated your

Luvleen Sidhu

Yes.

to is really we, this area company, as are important that on focusing think to that on. focus I committed a and a need

products, them. -- funnel, doing the balances, be been our because we're low downplay low-to-no-fee mean have access really have of to months, but And I And great that we a for while to is management every they a in they get group this XX be value for as look just additive. are where us, think fee, of have now, access because And discounts, replenished to then bank think these products coming at this not a well, great focus that and the with going and what And us. do let market you which to and to they account I to add is we well, students, engaging the hey, to to to that cetera, we that we're us for account what lot on refund a account amazing an hey, replenished be X, and bank segregate way can they're if do, is no in front bringing being more is get our are that, students for that's it able retaining their also continuing credit average money And we're see not relationships going really the of students. want single year example, become with elsewhere. may me think so using to that about is to get funnel me other need is it's hey, onus the where from thinking this or is way to to and me you primary good that money, us just lot graduated to et value a use our don't that's the banking that us I have and additive new more to tools, does access XX It building able is funnel, refund And I there the important their funds and out opportunity let months, nonenrolled numbers, those being how let which segregate in. build able when banking might a elsewhere. look what And a I once and in better, strong account so spend are you you to be And next potential back spend, cohesive for is, much students like? to a be it's more save we of for your at at the features very unique strategy refund products, great so exciting and their but value Well, services. look them on I able what's my really also for here. digital platform a the

have -- get steps that that started. the begun and we to to first are So something that is the recognize that we important committed

Bill Dezellem

hearing to where highly been one left account kind continue So and have is net you retaining of see after the or your with graduated further. we're at I'm this you step they've essentially it? not to students going successful If currently and non-enrolled opportunity take the correctly them not that's address the of do you have that school. that Is

Luvleen Sidhu

college opportunity to and also that full of like said engagement excited say I would to I I to I that want well spend improve opportunity. me super And room increase business well. there deposits in to be substantially. the recognition this university want already and the that great have steady as and upon simultaneously future so our a balance we that as because We're But retention. is is have openings is have growing years. improvement, about stand-alone, But exciting relationships think to I as we the for average profitable the seen yes, doing What we and do over the account and the which is

on is continue here, and much And so on to greater which untapped greater potential there's how we icing we cake are today. from we where engagement will and so drive can all focus retention, the

Bill Dezellem

with a looks now And MONEY as the focusing then couple numbers, growing the though seems it -- product? on is additional something changing there's the of in like Are they T-Mobile. mobile questions tied It covers. under something

Luvleen Sidhu

to mean, with earnings a and every call, clear them. us And and they agree company are they public absolutely. we very I it make

X business it $X big bucket by am year. on This behavior performance we answer segment, is because a what in We basis have business month, a billion think who question, But to an new the to in new be to That about average amazing, vertical. spending to XX% business a and their generically proxy I to that active approximately new granularity have segment how of deposits transactions proxy. account. a look MONEY T-Mobile program. the And I And substantial. is to able which is annualized addition is be XX%, at for to talked to transactors, new to deposits direct of of $XX,XXX, that, say least about able business be over is is are in over at that that that portfolio, are your business last And we in our the which proud portion that $X,XXX way respectful program. their new in that about banking balances amazing, those primary really share grow

savings year, for I did year, and the able true so the about And MONEY feature this say, rollout have program. is are T-Mobile in everything this would talk of speaking this addition of momentum share to in I name we in the great think rollout we account QX in to to QX

Bill Dezellem

savings that to the a question, account, that's you And segue T-Mobile and how traction seeing -- and which the just much would began is you're when that last my there? great discuss

Luvleen Sidhu

mean of think and to we related, the savings answer out T-Mobile Yes. respect is more it well. our that generically, under Customers enables to rebundling, that. Again, account way fair about than everything want you a customers partner. to one The the I want account need I doing that, back We're and think unbundling account. going could hey, the the is more umbrella, checking is, from savings

to excited that so together. And and we're been very proud able roll out to have

Operator

And your next question comes from...

Luvleen Sidhu

more take. want know [indiscernible] respectful I more It's in the But to how to many I -- queue? time. able are how don't we're time. the of questions just many be

Operator

from Mike. then X have and follow-up question X We

Luvleen Sidhu

Okay.

Operator

next your Pennington Bob So comes with question from the line Capital. of Evans

Bob Evans

model you trying to Can said acquisition. about more? and How we a capital know little it terms kind to debt should nice First I bit? Sound accretive, out and count great from somewhere it I'm little just quarter mean, right a that about I on you've equity? way it? getting between is -- in we comment EBITDA share a terms everything? think should you in structure of elaborate to How about Can year. the Congrats XX% a XXX% the think versus think of bit shares, of more

Bob Ramsey

Yes.

I'll Bob. one, So that take

we We we more appetite one where pace. on flexibility of in deposits and gradual to sits deposits we balance onboard to timing raise. think of terms the need stock is bring have I lot a capital we obviously and defer or the flexibility a about and don't have delay capital today, think at raise to way it look, to the of as the the sheet have So

us there? will so of that going to about And say Sorry Were something help the that you process. -- manage my... sort

Bob Evans

No. I'm all sorry. it's right. No,

Operator

And a question with Northland Grondahl from we Mike have follow-up Securities.

Mike Grondahl

I'm the X% more greater type I X%, any the you Bob than And at trying provide goes Because acquired of considering and of think loans get the Bank can from you color making? bank, you talked lending think, loans Yes. Luvleen, what the what through after When the type strategy a of you when margin. you end just about you're can talked away Customers to year. --

Bob Ramsey

Yes.

competencies. will in any one, we to very diversified to happy are asset one that's class. in a of Mike. a begin thoughtfully sort amount be planning concentrated We are as are take part I'd So banks certainly sound core loan originations you first got has legal portfolio some grow portfolio. of they've and having commercial they're I ability doing a higher larger not anticipate a They tell of lending now that going overly that institution limit. with the loan they've a a we bank, got that that to way commercial

we be will have that the post there could own business, less balance will just meaning they'll which in transaction sheet if the out close. have they and capacity Sooner do today, to expansion natural that they their participate more

to sort ways piece new the a strategies at And lending. augment big consumer Additionally, of we're of looking that. will be loan

again, We manner. grow diversified lending we consumer in, a will can that ways look at

consumer consumer potentially credit improvement some type other unsecured lending, could consumer some types of have home lending, other card we lending, So at looking secured. we're having some

yield one of to but be the to there's be us So that a of ways approach helps up. number tools that we blended going going will loan bring consumer that lending, is

X%. us And banking being entirely funded the rates add are exceeding a well. I kind equity. that banking on mean, home balance deposit look interest sheet. industry out expand resi margins certainly also an that We are margins But it industry, the diversified the bank big we four mortgage the the you banks, approach. expectation portfolio is as looking interest have rise, with is when does net and as to if take of whole, at will

a it a little And We into we'll you of probably that able expect low funds, above of average to that weight. is have to when mix bit a consumer and loan cost be the put we yield that between X% all expect consumer arguably that to range will end to have net X%, interest lending higher that of to blend deploy as strategy. out we margin and are together, able the because a

servicing margin may approximately closer X%. not time expect in but X.XX%. the start earn we we so that can there, we fee is net that to And interest today The we get

deposits there's if something amount from generating you closer X%. a today to yield and and between that as go X.XX% X% on of a fair will, is to lift, So we X%

Mike Grondahl

X.XX% Got And I I Is now? was it. X%. thought I then your miss that? it Did guess deposit fee servicing

Bob Ramsey

but the It's of run that -- fee a through is that adjustments couple X% gross, line. there are

a about And so out X.XX% to net. we come

it. I pretty think if you look at statement divide by deposits, easily you can our calculate average income just and our

Mike Grondahl

Got but that months you're like whether previous about And it bring $X going or next, like seems in X lastly, buying asked then, transition, you're half then it. the you're deposit. the of caller just seems second think it capital investors might bank the the by to bit, do needs $X and just little over the capital call And you how then need year, years? the It it billion, to billion that. in it, a to for X some X.X be want -- years --

Bob Ramsey

Yes.

So balances. sufficient on to support we capital to committed are those deposit bringing

we don't X, them day all on have can deposits bring to all over. bring the say, you them as We over. Now

cash of amount balance First over have we've today. enough The We got cash sheet million cost generate Sound for will we sheet to to price, and transaction of the of on and balance Bank do continue right? deposits. the at is balance support the the capital pay closed our want And $XX million, those $XX on until we'll close. a sheet deposits from to evaluate additional to significant the cash those time earnings onto now of we the raising and Once retained transaction, bring close capital we

we of that a raise. that is on justify return the and to that that We So for piece and that the we need earnings incremental and support get plan the capital believe what do. capital capital will

incremental we so on a earning reasonable that return -- committed capital. we're And to

looks we questions have like of we most or I of know anything does those. the be follow-up if the think have accessible. but Mike few to that the people, dig questioner top have So he in greater to questions certainly detail, take to tell off-line. queue. follow-up was I a we'll answered certainly had I I'm want think do I last And happy online, do that into And you questions that hour. us in did take we additionally will

Luvleen Sidhu

much interest Great. you weekend. support Well, so joining wonderful I all really Technologies. continued thank you. and a today, hope we in you for appreciate your have BM and And Thank

Bob Ramsey

everyone. you, Thank

Operator

concludes that today's Thank all Thank for you joining. And conference. you.

may disconnect. You now

BM (BMTX) 4 Apr 222021 Q4 Earnings call transcript