BMTX - Earnings call transcript Q2 2022

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Robert H. Ramsey

Thank you Fred and good morning everyone. And thank you for enjoying us for BM Technologies Second Quarter Earnings Conference Call.

Our earnings release and investor presentation were filed this morning and both were posted on the Investor Relations page of the company’s website at ir.bmtxinc.com.

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

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

Luvleen Sidhu

joining half the earnings up second of challenging the XX% and for million, to second Thank half and first in over half strong report are To year-over-year X.X and call. pleased core this we and you BM the Technologies environment, the XX excited of you, morning, core record of you of Bob. Good to first for to million first QX XXXX quarter quarter EBITDA EBITDA performance we everyone. year. begin, are XXXX. And in report Even results for thank

that, strategy. on year-over-year, would service average details will before deposits on like X our more I Additionally, deposits. to discuss our increased totaling I Bob details in but financials and XX% briefly Both billion later more provide

newer key As the a other today. We which pursue of is from banking strategy and Fintech. a digital country differentiators reminder, the is in Banking-as-a-Service BMTX one of our provider platforms largest BXBXC banking one

edge less main cost customers we to acquire high traditional and Today, two bank Our this, To most $XX in us tremendous which at to banks strategy and provides at BXBXC today, we competitive verticals. approach banks. a volumes. are with executing enables customers challenger at are relative quantify our to low acquiring than us

XXX,XXX accounts where the vertical, of in education year our checking students while billion being we The several first $XX creating for a year refunds, with are a life. aid opening financial over higher customer dispersing a goal also

our different different second a times, become The recent to means things and Banking-as-a-Service has is really people. sometimes buzzword business. Banking-as-a-Service vertical in

revenue non-banks customers. it us, of the creates services In embed with this enabling their means to with to purpose increase more infrastructure value. and build existing help technology streams, loyalty differentiation personalized return brands value be which For access lifetime which of of banking used more and all ecosystems their new for can customer and attract create points new to also creating for within the them provides customers, more data to experiences,

With fraction to their branded Overall, launch roll employees we a products that a able at fraction user in today. one $XX interface, to be help the we go We them give the customers invested market clients million and positioning. at brands of are Banking-as-a-Service own. take are and technology, banking their them provider API our ready with and provide their of app within and our ecosystems to brand positioned to label it financial own Banking-as-a-Service driven and or their to product building and choice in embed proprietary on their well have platform, the fully and to the proud the this cost experience Fintechs control fully to our Banking-as-a-Service our over competitively most reflects white time to out would user a services of out

we management, program BMTX and is to operations, provide support management. but of banking key not Banking-as-a-Service only to compliance customer Once manage positioning we run unparalleled, bank with and a other This management, Banking-as-a-Service will all become the provide launch programs, known Additionally, these that Banking-as-a-Service in the become support. combination and differentiator is program space investigations, not bank, service technology also means often our end, the a but sponsor end provider, that entire fully relative experience we limited fully manager, back we as and fraud Once competitive of we provider are office -- a to marketplace to technology, the including integrated, the the today. and critical risk provide in the we integrated perhaps can are one. and once pricing program the in relationship best most vertically

our with T-Mobile by our called and the Banking-as-a-Service of is partnership with launch savings accounts best vertical Our exemplified checking today and Money. T-Mobile,

grow have We this and a to expand continue relationship. great and partnership

you significant in Banking-as-a-Service with was global the to term RFP a BMTX best the vast contracts millions share This partner new from marketplace. sheet moved Additionally, of of its operations to awarded are XXs assigned we customers. and through partner. competitive relationship offerings that we this of have underscoring competitiveness new process, thrilled U.S. within has

BMTX commercial work we second This of this to development to if this addition in expected with addition in valuable the able partner have become integrate roster brand partner XXXX. perform occur remainder and relationship which will charter. identify this strategy, additional not through launch early new with the In BMTX partners. partnership With partners quarter vertically of work the more expanded the this well-known we the the begun even by partner, banking launch, name until a year. protect this To name has of to meantime, is may is of large, its expect

vertical vertical. strategy, which nascent to which Lastly, niche our is direct a our is most third consumer we have

We underserved on This this but conviction an after vertical extend employee plan continue to that. a beyond on continuing demographic, strategies include in bank. execute become to market, need the we focus to value direct also groups. in We targeted high and will to executing consumer have affinity to

I the also the QX to let's X revenues started. So and million of get to XX% XX% to increased in results half second XX% in strong performance X% report QX from EBITDA XXXX. QX year-over-year record of quarter to for to Core XXXX increased in from QX margin to up million X.X million XX.X XXXX. from EBITDA X, Slide Core in Flipping QX first am million year. increased delighted XX you XXXX.

XXXX core from per million increased first Additionally, X.X in EBITDA or earnings half share. from period core $X.XX first half X% of million, to the the increased to XX.X XX XXX% year XXXX. million And diluted of ago

half of First XX% per million XXXX core share. to period increased X.X the or diluted year ago earnings from $X.XX

show the to continue in new approximately we XXXX. opening XXX,XXX accounts Lastly, strength half account origination, in first of new

to of X, you XXXX, new see XXXX. and business is QX Moving in billion from which to our accounts compared to X.X our of average on Average totaled the service students to in X In XX% a the half on student the increased deposits by billion XXX do half about increase. XXXX bank first that student's based Slide QX X% to increase service compared business, QX and so. XXXX mobile billion refunds deposits million can first totaled into these choice checking an disbursed to $X.X increase XX% X.X over disbursements of deposited billion, XXXX were of

indicating totaled the addition made from into first to These students the half the deposits above year million are during refund behavior. Organic this, school. and In organic account strong deposits deposits XXX any into the accounts. over of coming banking primary these

and a X. million Bob given period. card of QX of remains Slide economic debit perhaps debit XX% per spend, XXXX to current in XXX will revenue now was headwinds, half Despite card on in absence XXXX, strong, spend on economic talk stimulus the the our of account the compared which decrease Moving growth factors these first Ramsey to through

Robert H. Ramsey

as compensation we're filing, I complete base we had touch reflected Luvleen. our partnered Thank lot to excited no largely gotten to timely and non-cash former on expense Quickly, Earlier before which X such In impact progress prominent us our I a wanted cumulative engage began did our to it questions. equity. EBITDA, to new XXXX you certain talk and of auditor and is did which investor the we a important firm. year about be July, cash on getting from very back with restatement our this we've or Slide parent, KPMG

first new our XX-Q Director who had to Additionally, in quarter, committee has Board did our valuable add been experience. today, delayed. we and bank file quarter the second audit will And we which a

filing that filing November file that and After the will file the good towards before again financials process do and file that this earnings filing within the we that five the And that to morning business I or on along be our will with days. our third for to this we five XXb-XX complete we to file XXth filing in next hope current are quarter which our deadline. permitted we ability XX-Q us expect Additionally, everyone far indicates release XX-Q, the day second within filing expect we quarter it's feel to extension. that our evident fairly about

very So timely end I that the X. on coming soon be we will fortunately, said, filer Slide a will that out are one and process this other again. begin is we With of

on per the approximately X, So quarter. have which we important did generate XX% and per we $XX I business we in the in increase that is account, about year-over-year our Slide what's here account talk that think most metrics in the second revenue was

in which absence account and driven in You and per stimulus of growth reduction period. can is our in here you do account, basis on and per spend per see the each the year-over-year And of experienced some on ago consolidated in see businesses deposits that by what account deposits spend account, we per year the a the is really basis. a the

stimulus came the didn't you X, tailwind XXXX Slide we as lower any half than and trend approximately the factor debit $XXX that basis first see here. that's year ago you on the have year-over-year a did year a accounts. in the first that have in million big year money can spend in and a our was in we to And of a see the of reminder, this into of Turning that half

financial a by expenses. this partners amount from And have it first it that deposits just five in ago period statement college line do did Luvleen emphasize the university breakout we're increased that our excited than gives X, our have I pass dispersed the we grew record a did with Our we I walk half item. but to that as in quarter service year, we Slide revenue want average did to and well EBITDA, before about revenues I great and back then faster increase EBITDA won't detail total the X%. XX% of through as by view year to

cash to the back Number we Luvleen XX. we will positive on With to very it continue turn have soon filings all to excited about. as cash And our flow, will Luvleen balances I that We Slide generate over that about touched new partner really BaaS increased our talk be timely. are

Luvleen Sidhu

Bob. Thanks,

quarter. like Slide key few would So, to accomplishments I a on and with second XX you for highlights now provide the

approximately and year-over-year deposits in billion X XX% increase. averaged BMTX First

Sound expect Second, our continue to First the true and remain Fintech very the merger charter have close business about a future the underscore and that by value strategy a continues to business by we current to profitable merger an We with progress Bank the bank, macro to brings becoming environment charter our acquisition model. excited With generation we end. into our a strategy. continues a asset are combining deposit sustainable, able with model year to bank to

Our create the no our immense on side student and will franchise deposits partnerships our low as value coupled Banking-as-a-Service infrastructure a of bank. business to cost with

also from changes the will require will considering our significantly raise the sheet, us are to slowing of the which environment, capital benefits deposits standpoint. current balance have less Additionally, EPS in we and an macro on valuation given growth

accomplish off We brokering are banks partnering to with this. considering or additional sponsor deposits

as keep forward. you will the We process move to continues posted

have business. continued we Banking-as-a-Service our Next, to expand

new signed a building with we shared As Banking-as-a-Service earlier, to this significant contract and have forward partnership. look partner a

opportunity. expand to strong on. the we future future continue a Banking-as-a-Service roadmap working of And T-Mobile we to and robust pipeline build also We are of continue relationship have delivery a

life business, Lastly, experience. most the with place we XXXX. help as working stack, will This which also our transitioning experience and technology students an once to take allow to on in plug our the will customers Higher on products Ed which are upgraded side in These best modern for user provides the of easily graduate be new will developments strategy. features, enabled which API more our platform, will us our they

disbursements, credit we agreements, also add accounts. colleges providing before which Additionally, and unenrolled approximately once BankMobile and graduated to as new via universities students We and improve retention. access students, for we expect had the XX,XXX BankMobile become a bank, with said additional signed the we XX year-to-date will to products checking

highlight skip six I signed colleges slides full banking have our will include expanding a the which relationship. of also have vision platform vendor suite These through and products tremendous talked overall banking opportunities for pay continue XX and universities through these our before. services. and We of stickiness Slide digital to XX growth a I and improves to our as college our offering, digital

I that effective Before customers there December acknowledge like officially moving our with are XXst to bank relationship customers. no we have would to Slide ensure for we our disruptions hard and XX to as terminated been expected, working

As completed not of have That mentioned expect expected Sound the bring to the before, merger, planning to we with being First we said merger day all our of the closing do time. on that are by Bank on one. deposits even

additional brokering this. out sponsor considering are accomplish with banks We to or deposits partnering

by options bank tremendous our preparation available strong end this, before, will have close we mentioned amount if our needed. need to raise and the for year have planning are have this will to confident deal. done the of and In the to deposits bank As several a significantly reduce plan a capital backup us partner of for we

Moving on summarizing would to to key like investment XX. our Slide I by end highlights.

have performance XXXX to record second continue strong quarter results. financial with We

We of continue significant well-known partners. a to brand our new roster show the business Banking-as-a-Service relationship, our expansion name most expanding of BaaS addition recently in with

annualized over driven We this to revenue have solid active an by on $XX and and quarter. our engagement, customer Remember, our basis. is spend. the per solid growth in We're number demonstrating year-over-year XXX,XXX strong second balances is an XX% revenue that approximately account average accounts annualized increased account opening

our T-Mobile existing new XXX strong partnerships and over have university We partner. BaaS with now partners,

and which and proprietary developed integrate quickly is white Banking-as-a-Service a easily is to and heavily label enabled API ready and platform, a partners out invested available roll also have capacity. in with We

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

Operator

Instructions]. [Operator you. Thank

Chris with Sakai Research. Our from first question is Singular

Your line is open.

Christopher Sakai

on for Hi, good anticipated work how expensed? the partner year? morning. BaaS comment much the already development has Can how you been costing for you And new much

Robert H. Ramsey

Chris. So I'll take that one,

is not of any get tell tell amount to to the will will that individual what not partner. I going we're So you, I the you to significant. been into that sort work development related spent has date is

we're of see as it from But do to out it going You in financials sort break reported. our separate not other.

Christopher Sakai

Can what at and still you looking into guys the categories? bucket mention same this partner at looking are category falls new you --

Luvleen Sidhu

one. that answer I'll

of So bucket we will not be our Banking-as-a-Service the commenting partner. on

understand U.S. the commercial the we out what to the Banking-as-a-Service continue of privacy expand excited this significant as partner But that to see is. we the we we as learn launch, the we and potential And global embedded have continued and have really information As as will not players opportunities to finance for for in we to for we provided shared much so much being a to Banking-as-a-Service share begin the able of so here. a more. before, pipeline that even We're with have be strong can. over about, company have a XXs shared see market excitement said, we and of they're enough exponentially That customers millions is respect

are helpful, to to are a business see are discuss, how in and buzzword because actually this it As into knowledgeable and to us this remarks, seeing about incorporate now can to have coming this models. and their a I learn, my they become buzzword industries has said is opportunity

areas as to to the areas first happens limited Fintech also your be So continue but question to such gaming, we're retailers, to development about a charter. not -- these be ecommerce, work, that grocers, And airlines, a to add opportunities.

development company, million over work, technology low, already. over a our XX try being technology keep do the in our invested to we've so And we costs we years

us margin developing you. opportunity up providers serve And and partners. that relatively to our ended as it for low. customizing so, being to And Thank remains cost development

Christopher Sakai

an Okay, you how are this lastly, And affecting And banking rate quality? in seeing rates? increasing environment what is in regards thanks. product to your

Robert H. Ramsey

the Chris, of we to part what… sorry, was what seeing what I'm are regards last that, in

Christopher Sakai

Speakers]? [Multiple rates, Banking

Robert H. Ramsey

seen, market So, pricing we move have the begin market to deposit rates.

I think moved market all. they lag adjust pricing it from movements really up, see as is to tight the the begin cumulative pricing. positive stand at were it to they we competitors of as But expected initial has Fed during have able in and the the sort of added banks begun increases if to to amount do

that having July. we customer driven is moving recognizing an pricing month the of increase activity, impact did some is so deposit in that and And that rates on

Luvleen Sidhu

like would I that. add Yeah, to to

us said that So, since deposits our total believe rate increase we depending that of about earnings given rates become the we we benefit also interest a deposits somewhat in fluctuate have capital. balances with from future is did in rate so given our did increases EPS our is, sensitive rising our also raise and the become value, And in bank, sheet runoff also, of decided the of benefits that's environment slowing we which side talked portfolio growth we're attractive said in stabilized changes see to can more seen that's valuation market we us some is rate that mentioned considering standpoint. less it we'll that we've our as this require the environment, our a release, and on will sensitive the say our time. it that interest flip as will rate significantly Bob important evaluated more change as rate reducing periods. but And once and Bob mid-July. in positioning franchise the other and one balance thing to we macro a side as positive deposits And have also on is in But But bank. current deposits we

for environment rate interest over affect rate Hope it positive, the helpful. franchise we that's but seen have us rather we've ways, for creates So deposits as negatives even different than in time deposits. negative, immense value the sensitive some slightly core some us

Christopher Sakai

Yes, okay, great. Thanks for answer. the

Operator

Grondhahl next question The from Security. with Mike is Northland

line open. Your is

Michael Grondhahl

guys. Hey you. thank Hey,

Luvleen Sidhu

morning. good Mike, Hey

Michael Grondhahl

maybe. growth guess it is Luvleen Maybe you I side, running would revenue X% is Higher more is is it about first which expected of why the or at little customers, I have but revenue business X%? retention for this the one new bit a you side, Can only Ed the talk is sort growth lack of of it

Luvleen Sidhu

I'll you chime and begin please in. to want then if Bob,

then not the seen we for look of sensitive is The is of deposits, that a our the so business in environment, one of. that think And is interest very us, deposits. rising growth have student I about the is drives we firstly, operating the and we're despite a coin university rate revenue our from And is environment sensitive, headwinds when that side beauty and And spend, which back it that, our talked unheard have what already that our in. And revenue, you revenue, challenging rate significant fees. our business of rate these environment proud of at we're standpoint, this that certain areas. growth macro you

the average environment of rate is student the million So franchise deposits our our doesn't in is, value. are about of no cost change. matter on That XXX And deposits true what business.

We not Mike, have deposits. said, through. earlier, value. conscious fact those off revenue it that So could are But portion decision. business deposits some more affected That side so the and that. sensitive was these we franchise reaching of the our rate as we're we're the of business, changed I is rate there run rate the for very by a have more changed that was but of is higher, sensitive could a us, not lucky news In for

continues they're preparation some be capital contributing important not and less willing especially let also strengthen raised, of to we further. to retention are so value, capital, acquisition transformational a in have cognizant the think engagement that'll about if was business very remains us, even those becoming which we're forward. I is of to Account strong, taking an current there's I our deposits opportunity less to And my where to steps remains that to with And less run franchise off. to the for retention of we see be help and remarks, that very bank opportunity investors. really, we're some that piece the student The strong, going clear

that's helpful. I So hope

Robert H. Ramsey

quarter And because me at about the tailwind as year really a last stimulus. you half see did period the talked are stimulus part we tough have and first second comps, of time. let any this We the We from think the strength. and I well, year-over-year of remind real half year first this a of Mike, coming the didn't in year have And what in dollars so of off first you that's we're change. that

Michael Grondhahl

Got it.

revenues With was XQ any to in expect you do in any times on the had development some congrats development? or new at you've I there that, know related BaaS related customer to prior win revenue XQ on side, the that,

Robert H. Ramsey

really we quarter our type did in earnings we some begin there customer, so do specific in think and say steer the there. release second is we're to Yeah, agreements going on away that but the work of question from I impacts answering again, that under a

there's little going but So numbers, not in consolidated detailed bit any we're that. a the than to more say

Michael Grondhahl

Okay.

you three large international to ago, big bank. talking win still guys and were an this Okay. quarters active, was of And then box a those? several those grocer, retailer one a Are

Luvleen Sidhu

that one. take I'll

very are to launches. confidential -- being they want in I realizing strong in we're don't as pride these we're business, becoming Banking-as-a-Service themselves scaled really and experts that and So secretive having nature, in more it opportunities the commercial

I in pipeline that strong. would existing with say so Mike, that remains And our mind,

opportunities come remain and Some but the overall, about. pipeline opportunities and I've categories the talked go in that

going forward. still the that as those of opportunities pipeline mentioned, And you in some remain

Michael Grondhahl

Got it.

deposit bit are partner you replacing some kind sponsor on banks what's new and this loans rate, guys that growth, call you generating it's How of deposit. you some thinking XXXX for, some how some X% off, value paying deposits early and thinking and talked about deposit little deposits maybe that a letting sponsor slowing for NIM low or partner And prices, or lastly, the whether paying tweaking run there? banks your banks Okay. then you you've NIM latest or with about

Robert H. Ramsey

our be Yeah, is higher sure I'll and margin the could Certainly take one above even or our near has given depending don't and likely first. bank Mike, changed business as at we deposits, with end a in that of think X% the offsetting balance or view reasonable environment. high a I on sheet rate the loans that the a top we that with think range, think bank that time that interest over between rate it a X% potentially consumer mix. rising net environment,

So, that able into loan can the which the sheet. really to will over higher done by time on what's targeting depend when we're applies, the to out a think are end be I build and close time that take of acquisition, balance course, that year-end. little that and It of how quickly to still still close grow of will be range we for at on bit we'd strategy and

earnings benefit much which capital Luvleen balance side to, hold quite charter. sheet, efficient than be a earn sheet more capital can a on capital it ability you business levels, ever side where it's a current something earn bank sheet, and then sheet. driven, off have to the sheet. to balance be a of margin. interest sheet of balance share at you bit the more you a And has have as to really organically. net will off I Off is balance capital will that alluded bank per frankly, prices more balance or think share can less that same raise be we little to flip And On that the do have an on we'll the that as accretive balance transition on we much don't the less don't on over pursuing to business balance to value but what time and lot a of do off the which as earn amount sheet with But we things, generate is that, full again, market and

Michael Grondhahl

And what you is today, balance relationship on roughly a can off market you sheet comment sponsor bank? with an if had

Robert H. Ramsey

opportunity not going today, comment to point that if the said, I even will Bank. evaluating at Luvleen end is market deposits to with what what or Sound to to knowing were will we bank am a we we the this you of put some of off I and on what sheet partner going First with acquisition Sound balance there close as these Yeah, of First are are be Bank do year merger

I don't competitive it to of that information those so you. advance share think have we And be willing helps our set and having expectations are something… exploring options. And we with pricing position once finalized in the to we'll deal, some

Michael Grondhahl

think Got deposits of decision it trying approach instead XXXX. to a a and work those in hey, it's hybrid to I good go do all with put to

So to that. hear good

Robert H. Ramsey

Mike. Thank you

Operator

Greg next with Chardan. The Pendy is question from

open. is line Your

Greg Pendy

half? Pendy. seasonality we Greg us, should the we But look up year. of half? Brian normal for at stimulus as we that back then last about XQ thinking the were takes last seasonality on there compares for is of am to the Good stimulus the Dobson. Can impacts as into puts you guess it I and the you we I what year, XQ is impact last the back at And just half, year or any calling of remind kind look second now last be in appreciate of XQ look Hi, and morning, what be year as I normalized would

Robert H. Ramsey

Yeah, so I'll that. take

March, think April. of was So I it's certainly, maybe the think Federal about mailed the stimulus was, the end were you checks of that last as lift, round it

of Now, end really I don't was the first the quarter. think -- it

little half bit the was And was some year. the the was year. the But that higher of first the so in stimulus year that half think spend trickled saw and back benefit as there last do sort of the share benefit lion's tailwind out. definitely you a balances of really tapering in I the effective concentrated remained in half of first

So seasonal the I student any keep degree business stimulus of business, what quarter not peak in of student do strongest a the of business, seasonality the same sort in the be affects think think the this And the white at that falls side within the year. see of quarter. normal first going that is business, asked business, banking same not mind that in would seasonality is drop is entire label nearly you see the not only really about, I that semester sort BaaS you're or tailwind half In related to the the you of because which quarter. in the business. least of our servicing back

quarter to semesters. the weakest second be is The those between you're where sort because of it's going

that The first the third third between because what a in and and straddles fourth quarters tend you've to of peak sort second, got semester be is fourth the quarter. and

July, It to fall taper do the then year, at numbers, quarter. have point that's though September of benefit timeframe around month of it get So get you in and both. when the August, does even don't when and fourth sort benefit does some peak you of some the weakest the sort peak but in you're of of the monthly we you report really December,

So helps. hopefully that

Greg Pendy

lot. Thanks a helps That a lot.

Operator

from Instructions]. next [Operator Capital. Bill Dezellem question is Tieton with The

Your line is open.

Bill Dezellem

our we integration you relative value think specifically customer in even may but about that charter with Banking-as-a-Service not general to just Relative I you talk don't morning, that new the concept? to be -- the case, and the good banking around can add this customer maybe could head get -- how how think wrapped Thank you. would

Robert H. Ramsey

one you want to with want do you that do take to it? Luvleen, or start me

Luvleen Sidhu

think you. there's lot background about [Technical of I talked a Thank that, -- Difficulty]. we Sure, sorry,

a most vertically we talked we to So, competitively stand accounts this those is as that about and being Banking-as-a-Service today, provider. And well really deal delivering the and of the program little in provider, really well manage most program, of positioned strong servicing current as in capacity. are side, where technology manager, and the That be bit is integrating technology or the the sponsor as sort bank. as ideal ecosystem servicer

And revenue deal. software a revenues technology, current the are in so really and drivers revenues service as biggest where of the development are

As to develop a asset expands deploy generation charter that acquire opportunity opportunities be programs. to assets in able the multiplier be It's them those them to and come, new effect deposits deposits, get have opportunities to take opportunities able a us multiply to then profitability opportunities, then into these expand, and to those for of or as to the evolve really we -- being existing and assets. charter able deploy

manager that sponsor a evolves deposits evolution relationship more a the of programs. see effect profitability that's hope program really the I So bank you as to and these that and from technology helpful relationship, can the for creating of

Bill Dezellem

That you. makes of Thank sense. a lot

Luvleen Sidhu

Thank you.

Operator

to will questions. back turn audio over it no further have We I Mr. Ramsey.

Robert H. Ramsey

the will you questions have few in thank a online handful run We Alright, very from a web minutes do here. and much. these I of our through final

the a got deposits. have about that what and needed We capital be ask going to to do couple about support was

that times banks. one. through had a balance were on been either be plan few of a we've touched We just with sort day never on or all some this our think reiterate our would has always broker these sheet of deposits held networks that partner view so deposits on off to sheet balance that come of going I I'll

off Additionally, deposits rate is notably the our given a sheet is that the of of dynamics, cost higher given market environment, higher in higher trades shifts balance our where also some today. stock capital and most that in value of

earnings maximize do can to and We we dilutions. minimize are share really looking potential at per any what our

right I phenomenon see But the which moved clearly level, lived -- the numbers. we some to to tax don't filing So anything as all see around you filing. I deadline, and do the trends? that citing April, we around year decline a at in I think weren't April. would play a deposits tax be the to did month in season and that overall taxes question short at want are that we very will that know in in was IRS our directly outflows are will concerns that due shareholders deposits dilution, and some dilutive of mindful the either. any here tell we role here the did today, looking ago, were of the did tax about it of deposit when it's and to in that different investor related think something at we you apparent Fintech that in much very certainly I more is through a it tell about of probably compared to that needs don't really that lens. We talks flew a look granular pay a we're as business month there's capital to and

customer have As all about insurance a with I partner looked deposits whether is current here, today there bank. FDIC full our through question

offer deposits up in or through partner full Fintechs some And the how says insured with are we we a customer side. is bank about our talks we customers offer other mishaps limit. either services, the to all as full continue will question really will the merger. Yes, First Bank being bank we Some Bank as FDIC important expanding to and the are we're lending able today small our Sound have to There additional be banks, understand is here. certainly After here FDIC Sound First to business of particularly it excited we that work about a our on ensure had additional insurance able FDIC future, merger, the after partner products into insurance. that

business is First with community small commercial bank a lending. very Bank strong Sound already and good

participate small together expand that the already. really the ability relationships. they augment their one their of to are same quality that there's quickly part into looked to institution, a the plans legal have we at is of a are franchise run looking as what team, sort business build expand business lending so do portfolio, we of and on high camps them opportunity as out. they do. commercial institution, the they like we part wouldn't natural they well and of this lending I as of And And that and have And that's and about existing to business we have business. to to strength given is their some commercial the for management as their that team lending larger the out size an that loan good limited limits, seek be think This going

about and are see of partnerships. definitely So that couple balance for questions about growth. a it's There here an area opportunity are we excited

ask One place. we of if year infrastructure XX X in the a them why couldn't sort out of roll was to

I that what model. say been I think there that would not has our really is

the looking and XX frankly, year on really we're at brands meaningful, We been I don't quite think at a focused just realistic have big, size a significant it's expectation.

then XX a more into we stock buyback there the then to business that do in and think the that back have one I can to questions we do would stock back as are piece last partner for -- take couple be we terms love we And our I'll thinking every is XX still the how in are continue to and any bank would to here we add are capital I here headed is we buying and The there that which is last expect of merger trading what believe we first find and a later. capital do question a months. about are right think -- significant where thing is market with share we warrants do stock to buyback? needed pertain are decision. want The plans it share we Banking-as-a-Service buy and we the

strategic attractive I price buybacks weren't And situation. position into consider needing so if looking share a the we're makes we just not to think open would and think in definitely share or we capital the sense. potentially future, buyback we more I But be at a

we and the can the potential from any dilution We're In very terms what warrants. warrants, much looking up do of reduce it's same. at the continually to clean

we valuable think continue dilution for is at well. look of affect opportunities pretty lot out otherwise scale clean as to reason, at a of And that to or spending mindful capital to reduced have to capital and going tough depleting tender up do warrants. capital. justify how to without I hey, But would are significantly it's us there that We are a any

that to So be we may look there. able are That at looking sums had it's of Q&A opportunistic we an area the that to we something ways continue do and sort for up any to time. it round, sorry be online, but to to with happy I'll back we're that about closing to Luvleen I do But handle that, out remarks. lightning over of turn know

Luvleen Sidhu

Bob. Thanks,

we couldn't I more we mentioned as are before, be than know, today. excited You where

an exciting Fintech customer opportunities being a expanding a invest to really we're in engine, think really life. but becoming not for business, acquisition Banking-as-a-Service I able of student our creating around such at our just bank, opportunities, transform from the precipice

to very and journey So next quarter. touching have grateful to we're Thank forward along you. this look your support base

Operator

gentlemen, you today's Ladies and concludes call. for participating. this Thank conference

You may now disconnect.

BM (BMTX) 16 Aug 222022 Q2 Earnings call transcript