Earnings call transcript Q1 2023

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Operator

Good afternoon, everyone, and welcome to the BM Technologies First Quarter 2023 Earnings Call. Please note that this event is being recorded. [Operator Instructions]

At this time, I'd like to turn the conference over to Brian Prenoveau, Investor Relations for BM Technologies. Please go ahead, Brian.

Brian Prenoveau

good and operator, you, afternoon, everyone. Thank for earnings call. you joining us quarter first Technologies BM for Thank

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

materially currently note as would may these we uncertainties statements of securities results Before except update light today a forward-looking you that the obligation events, the we and considered future number in what these to subject that to no forward-looking. actual These applicable anticipated. law. from of presentation, to of some we extent like differ that remind Please or and the may by speak new forward-looking of statements date only cause of to begin, statements undertake information to are risks we be this make is forward-looking statements required

risk for Relations our and detailed the Please the description our Form obtained Investor be by refer XX-K SEC the website. that of filings, including from or to visiting a more our Copies may factors the XX-Qs section may SEC of results. affect

Technologies this Luvleen? call over BM turn it is the At Luvleen Sidhu, my to to time, pleasure CEO.

Luvleen Sidhu

On today's quarter you, and afternoon, on we'll good Thank results discuss our Brian, first and initiatives. call, everyone. financial various updates provide

want Additionally, you Singh. to to introduce we our co-CEO Raj

us closely the to our have all ways, some fintech just system, and increases, landscape, for to into have examine changes rate been months few, and, of the specifically realities regulatory business last impacted have The quite a end unprecedented nine in To These the the and fintech stimulus it pressure today. to six that for name broader clear the unprecedented valuations in begin, market the is effects our changes volatile of on adapt interest to companies. business. forced of reposition to

build a on shareholder the for we and growth it stronger grateful us increased back this few foundation months, value the believe look is we as change helping for As last into we are future.

of our these will more We changes some today. call about throughout talk

would Before spend totaled service XXXX. XX% $XX.X that, some mention $X.X billion financial fourth card increase debit billion, quarter. I average getting briefly from deposits into a like highlights totaled and Operating totaled the from $X.X revenues million, to quarter

our first As release, mentioned XXXX to in very expectations. earnings tracked closely quarter our

results Exempt Our transition Interchange Durbin negatively our a first the education to of quarter business were by until loss we temporarily sponsor higher new impacted bank.

bank. metrics with and and to deposit Bank and receive spend to for transition fundamentals improved revenue to positive will our Our new have Regulatory these partner drive we of continue business is review positive date. our progress quarter-over-quarter growth we once underway, partnership Carolina this First

steps At like environment. on of now margin high recap focused First today's Customers rate of growth took top continued our Carolina Bank, Bank help in for key establishing strengthen the to the the we quarter to we our expansion first our partnership position would and to some company business. largest and in BaaS year, the agreements I significant with and renewals

to improve margins over rate at our current funds rate second Beginning the by variable Fed fee agreements. in to servicing basis we quarter, new the deposit XXX servicing expect points due

fintech. and profit been a has reinforce to our profitability, work significant advance cash positive commitment enhancement efficient and plan to lean ensure Additionally, done being flow to our

of cutting targeted profit XXXX. of million our the on comprised first our costs the completed the goal We with operating XXXX. Initiatives track by XX% $XX are enhancement realized realize quarter core nearly savings goal throughout $XX million will of cost plan, to the that during collectively in be benefits of remainder

new we and company. horizon has co-CEO for helped opportunities our adding significant our team, on Lastly, strengthen our Raj as see the

and productivity throughout retention, we product to addition and the in to business. increase upgrades In on also improving customer effectiveness adoption operational investing focusing are

investments this the to and decisioning. leverage expanded believe are use our of shareholders. We these experiences financial and accomplishing data-driven improvements, operations We of technology streamline to lead continued creation for will better automation, and customer value through enhanced

will Jim? the to over performance financial CFO, now review our Jim Dullinger, during the to our call I quarter.

Jim Dullinger

Thank you, Luvleen.

During quarter first million interchange for Servicing for and prior earned year of of million, down while totaled and of quarter of both operating the revenue, first company $XX the XXXX, million. the quarter prior million $XX.X $X.X XXXX fees $XX.X reduced interchange revenues were card agreements $X.X fees the rate totaled servicing current same term. the addressed loss with of will for the factors in limiting revenue by Durbin-exempt near both deposit associated the be revenue negatively million These fixed and period. impacted our temporary the

Beginning current fed we basis servicing rate the the the fee to service at margins new expect March improve fund XXX to variable points deposit of over XX, due agreements. impact rates by

addition, transition in partner second bank fees a significantly In will interchange upon the the of increase planned Durbin-exempt new to XXXX. half

slightly down our XXXX. for service $X.X balance first this balance XXXX down Average $X.X billion BaaS from of for the totaled of first occurred Most quarter fourth $X.X from quarter significantly the the stimulus-elevated reduction deposits in the quarter of of and for the vertical. XXXX, billion billion within

versus our we strategically allowed off repricing at prior call, our run to in highly late and in deposit XXXX accounts discussed unprofitable year-to-date interest As rate-sensitive XXXX levels.

growth fourth begin X% our deposits customer our resuming base. and the service beyond. education interest XXXX, runoff continuing to peak from deposits rates higher XX%, late higher with quarter of Within and moderate in of average vertical, XXXX student indicating respectively, and this anticipate engagement deposit organic We to as increased

active $X,XXX averages. first the fourth the market our Deposits XX-day both to $XXX XXXX. quarter within $XXX from vertical, XX for March XXXX million for from $XXX of down for favorably comparing totaled up of the million significantly vertical and and XXXX, of for in Spend totaled $X,XXX quarter education BaaS million first quarter slightly at account our was higher

accounts of Spend during first per $X,XXX active and our per the normalizing vertical each for during quarter both of XXXX; active total of spend we $X,XXX during active the in per account of Overall, XXXX and quarter accounts spend active during to increased first education $X,XXX with of fourth first see XXXX; for the XX-day levels. spend of pre-COVID higher vertical quarter account XXXX, spend in of XXXX. the to continue quarter in

bank and improved and note, our fees. Of spend have deposit new agreements higher these Durbin-exempt fundamentals metrics revenue deposit quarter-over-quarter revenue drive we and partner realize positive benefits significantly will the vertical of servicing our once interchange transition interchange education for new higher variable rate servicing and with deposit to the

for XXXX. five cohort This was ago compared makes $XX,XXX XX, up as approximately XXXX, attractive debit both quarter with active those a direct and the at BaaS year period. XX% first very transactions active approximately of accounts per XX% in card the Annualized customer-driven of month, spend users, minimum of highly to deposits March during

first university $X.X and were season of the for first million million first for of sign-ups down fees $X.X approximately of new million Account the quarter XXXX. quarter up XXXX, $X.X fourth There from the quarter XXX,XXX for of XXXX totaled XXXX. quarter from the during account

over vertical, the active universities Two students, BankMobile checking education account access in signed additional XXXX, our Vibe checking year-over-year. on BMTX disbursements new of higher during in first account sign-ups new continued the and With XX% improved we number account. providing colleges activity. XX,XXX continued both to growth accounts and our of In XXXX, anticipate with BankMobile and quarter strategic focus the

of campus aid quarter $X of $X.X existing This XXX our of billion college during relationships. financial university the quarter XXXX. student builds during first during compared disbursements billion We processed over first billion XXXX of to and upon the and fourth refund as quarter $X.X approximately the XXXX

Core incurred quarterly quarter operating expenses totaled of first $XX.X the $XX.X quarter quarter third XXXX the million for fourth quarter sequential the million first comparing since $XX.X and the incurred XXXX. XXXX a of reductions with the of XXXX, for million to of favorably for

completed anticipated As under plan previously we profit during of $X the cost annualized million our yielding cost quarter noted savings. enhancement by of Luvleen, XXXX, approximately first reductions

implementing actively savings announced operational plan quarter is XXXX The year the incurred efficiency with improvements of million yield for approximately annual these first operations charges its The throughout to of company range XXXX. projected during to business the full charges remain million enhancement profit million within previously multiple the aggressively $XX totaling $X.X of achieve expected $XXX,XXX $X XXXX. the savings and

second $X.X for I decrease is year-over-year negative quarter the down XXXX flat of and the the XXXX, fourth of factors XXXX. of beginning with million moment by expected noted the first the first in - $X.Xmillion ago, quarter revenue totaled in this EBITDA all of the Core quarter driven of the from quarter for with reduction improvement Substantially, XXXX. for a

the transfer year million in about Bank deposits expectation Carolina core expect EBITDA second to our XXXX for the to education beginning to half higher the And XXXX. core be EBITDA the line XXXX, with will continue of results of that we we target estimate or under first $XX half on of We the full customer approximately of X. for July First

million $XX.X quarter XXXX cash, $XX.X million the with and working of strong included of first remained of XX. debt million March during $X.X no non-recurring at of cash Use items. for Liquidity capital

the correlate change cash XXXX. We to of change closely in our EBITDA core our with remainder expect in over

With turn call to that to the update, we'd like back Luvleen? Luvleen.

Luvleen Sidhu

Jim. Thanks,

team working Raj to come you few and and some the new building we've execute himself like and to together we months same taken the are have are all opportunity with of Many business. quarter the renewed management the and on Raj? focus past you. have also over given foundation a continue of time. with initiatives introduce transformative These of him our the us as to on at I share past to would also steps a

Raj Singh

you, thank everyone, afternoon, Good joining. and for

for I'm excited of you to myself time. to the first introduce all

implement company integrate and know, partnering of team meeting almost and many and an I've months been dedicated you It's been role two and pleasure the individuals. to and to with co-CEO and getting know rest collaborating been closely initiatives. Luvleen variety so absolute our the quickly of now the team have the of talented As - broader strategic in with a for

I among The is most the landscape why asked BMTX? is did, I'm company incredibly companies. It's particularly of This unique, I'm answering. also quite other question question. join about a passionate often fintech

gigantic We holders. available us. to to fortunate extremely to to student are beyond need access our existing tens have business a potential millions our BaaS We don't have of partnership look account of channel or to sales

peers gain identify to to win relationships are set. opportunity scaled struggling and customer to us Most a

that marketing expand on identify improve to The partnerships increase our to and challenge to develop expand and pool are tuck-in pool ahead continue us product to growth strategic a adoption acquisitions currently sitting work is our to retention. of customers. We products, or strategies potential other and offerings, massive through

on, items being believe I these will actively focused results and are follow. All

So simple. the answer is

the for wood All further. our this have even our an said, within channels to and have business is we are chop team, opportunity to up ahead plenty of still existing our there incredibly challenge. for We and significantly propel work large

an efficiencies and is Luvleen identifying to and costs. lower Jim As implementing noted, there operational focus active on

in have enhancements, Some remain can automation, that been there areas leveraging right process and and referenced prior learning several AI technology that improvements calls, functionality machine-based efficiency. and improve for are but

have working multiple direction. We the areas within improve identified and to in that are actively business

Under higher in across and set outcomes, quality improved performance. result improved the organization, will efficiency this output financial right of the

message six data areas striving next better generation and we Our systems drive in mantras additional all the the consistent are Data-driven faster decisions. across implementation leverage that gains of operations. our to over make and and XX is both automation one our for that process revenue and improvement months, of will is decision-making to results to in

begin do end forward we as we - time team for These I you with to by to to but moves support, appreciate this I benefits, take significant of shareholder and expect your continue to XXXX. these all the call. plan work to executive creation. our be will value execute our the taking time long-term join of realizing look reap benefits

the call back I'll Luvleen. turn to

Luvleen Sidhu

being to working support of you, about market dedicated Thank and excited far with investors credit truly to tirelessly basis. on with our felt for team come. the been in to daily tumultuous Raj background are by who working employees His immediately all thanking great new us. by are products, It's who I'm our what's experience and through ideas user end so a Raj. experience and operations. continue I improvements want

Big changes time. for often take are and organizations never easy

do. to-date remains However, future that the has core what been innovative we an to everyday we of untapped, a set see driven exciting by at banking largely solutions opportunity massive needs

are changes We heading. direction in company the are we about the and the excited

Thank and I'll to operator today, the questions. for call return you time for your your the

Operator

question first with our take We'll Instructions]. [Operator you Thank Brian Chardan Dobson from Markets. Capital

Luvleen Sidhu

Brian. Hi

Brian Dobson

are you? Thanks hey Yes, my taking for how question.

elaborate process. in So Do or call you that management remarks, prepared bit? on decision-making mentioned considering a the could your now team you think you that a that it, enhanced is data data-driven little new,

Luvleen Sidhu

Sure.

of trying I is Brian, we're renewed that a sense think there efficiency. the overall that at point the make here, looking to is

the we talked model, of we think pivoted end So from market us really lean year to of the fintech. at reoriented and bank when we efficient a and the as

different And includes AI the way multitude right a is having process really and operational all leveraging downwards Baas, and people that of then the right strategies that really your all that implemented to improvements, our to the data. question, of from people with which and at help and places we've and efficiencies, looking in machine learning automation looking additionally, to

we're one that and data the have and a a of So sources of companies as a myriad wealth access services of unique financial company, data. depth to different

operational leverage create it the as better efficiencies that and we the how at ways to can extracting just future, and company. also able that continue in and And to for that being data monetize use better so, to utilize the in better side, on revenue And getting well. we are

that's I So helpful. hope

Brian Dobson

Yes, you. months? of landscape, that potential over your, it, few find the customers some past still as you eager look in of you Do that in is, call them at to of as thank over of And changed type customers potential the or business? viewpoint how broader does engage new the banking-as-a-service, terms

Luvleen Sidhu

appreciate I No, question. Yes. that

a business, potential participate I BaaS market as in about for really actually reality is Banking-as-a-Service very I what's But unprofitable a way. as the think I for the huge. is growth think many in operate actually that be we us And an of space that explore opportunity. to think BaaS continue that players important that upside the the authentic that to with interesting

the not thereafter one, really strike quickly in quite deals partners has find way scale. to day right Banking-as-a-Service And if be on a structured profitable you and win-win they to can to where have with at be

see continue we so, to interest. And

only with robust that that can are differentiator program our a deals structured we a in continue said be can deal. way we pipeline, We to our looking partner, and I have and before, one where be platform on. that are management as in a Helix, working our technology But win-win key a for particularly

about opportunity. we're so, And excited really the

to we we short getting have be profitable I that untapped, said, quite it's that in but pick only have As road a are or also there. grounded will the deals to reality map

Brian Dobson

very that's helpful. thanks excellent Yes,

Luvleen Sidhu

you. Thank

Operator

Grondahl Securities. take with next question our Mike We'll from Northland

Mike Grondahl

good you thank Hi, and guys afternoon.

XXX deposit clarify said X? you statement? servicing The Is going to guys point that first like question, I think basis that agreement, XQ. in that First, you're from a benefit the April could just you

Jim Dullinger

Yes, Mike, this is are Jim. How you?

Mike Grondahl

Good.

Jim Dullinger

is point date the agreements. margin is effective upon based X April rate. that basis date effective of XXX And in current improvement new the expected

correct So in you statement. your are

Mike Grondahl

it. Got

want So I bounce mean, that you, to - think Jim. I but I off

be $X.XX benefit. $X.X $X.X in deposits. would billion annualized, XXX had correct? you revenue billion all like the $XX potential, of It's that points deposits, equal of on see all million you'll like If XQ XQ, Is being of basis things servicing million

Jim Dullinger

Yes.

in the is Mike, basis the it, again, portfolio. for about think certainly as pricing across XXX to environment, remainder that is by if with the that would again, way would yield we our rate QX margins entire beginning And getting the the without XXXX. increase into think current year specifics fiscal I of benefit the points, look at

Luvleen Sidhu

As their at rates, as current remain long levels.

Jim Dullinger

Right.

Mike Grondahl

to servicing think - approval need the tied then said X the First you Carolina it. then there agreement, the What by July July we get X, to I with step-up me help And Got assuming contemplate? step-up another and Bank. you that get understand, one is is deposit

Luvleen Sidhu

$X to that relative And million breaking up would servicing in First revenue to any at an of level, spend and over not aggregate like fluctuations today. every fee to Mike, that quarter, by between estimate caveat, we conservatively on deposit least for Carolina moving the significant enhancement deposit I Bank. where to So, individually, But we're - interchange. is are and

Mike Grondahl

Okay.

points clear, so we're so talking - I'm XXX basis And about? to the just - that's that X the July incremental

Luvleen Sidhu

apart way. $X - giving primarily actual not million of we're no you aggregate gave an that number the But say wouldn't again, at it I not interchange. in deposit splitting the pricing we're from least side. a quarter I that on benefit

a So that, of cost I give that But out is the number. of good significant of revenue. a proportion can't absolute you flat more interchange revenue proportion a than

Mike Grondahl

it. Got

Luvleen Sidhu

yes? that sense, Does make

Mike Grondahl

inclusive? I year phrase all be stuff kind you for this think starting to and sounds let safe tell be rest it, like the conservative, To me XXX try can captures to that the basis points XQ, of it the me. benefit of this in

Jim Dullinger

think There But I quarter, all-in at the current Mike. $X to expectation. benefit per mentioned, the that's the that's rates of Durbin-exempt deposit your answer question, is the that is I current it, million Again, coming number incremental most the Luvleen levels. think and an from interchange.

Mike Grondahl

of you revenue that exemption out you that? Got Can lack the on by lost What XQ? the not a was it. comment having amount Durbin in

Luvleen Sidhu

It's - again, it's at least $X million.

Mike Grondahl

Okay.

Luvleen Sidhu

look of that's and you shown if quarter-over-quarter, So have increased the of Durbin-exempt our revenue interchange. lack not would been because

Jim Dullinger

roughly break spent the it versus of Mike, Durbin spend. is each Durbin of think is if way the about to XX% the [ph] so cut It's a and exempt our regulated,

Mike Grondahl

it. Got

Jim Dullinger

level about and QX kind have interchange the way you being I get things applied that For of that it. QX been, could what all equal. the our other think would It's

Mike Grondahl

it. Got

of of Okay to achieve sounds to tied annualized have on questions operating kind It lastly, way - savings thanks. of like savings. know hey your expenses. $XX achieved And to I two annualized you $X then, million million try

targeting once these whether question to gotten go on a core, or million? The what's $X that what efficient, basis? left of then and is $XX And you're - of is more to rough get you've GAAP out operating secondly, costs it's first from kind million to expenses quarterly goal run

Jim Dullinger

Yes.

those million million continuum full are achieving are where that And of continue question first - the over people-related $XX is multiple your other The in full there are year for we to the so of areas attack and executing annualized levers and correct, is me and upon $X operational we XXXX. you the are other costs are first will costs. year. majority of working currently the multiple Let remainder the

we our third to the there with first think might and initiating order in big achieved But last obviously partners beyond are the call, you of in costs I strategies we savings one levers discussed various the providers procurement as in and our variety expect, working them is of further quarter. levers. people a with achieve - as

Luvleen Sidhu

And core we for we year, of had - at expenses Mike, full operating $XX last operating reported the XX/XX/XXXX core million right, so total the in million quarter, $XX expenses.

So we the year goal in reduction $XX see is that that million line this item. that

So that's how on a you guidance give to ready of quarterly We're it. not basis. should quantify kind

the But what that able as very we've to with balance clear for be of you. that range to of some I be there about want that $X be these out please in actualize million. to $X could charges implementing could that to million relates it And been

Mike Grondahl

okay. you. it, Thank Got

Operator

question our with We'll Dezellem take next Bill from Tieton Capital.

Bill Dezellem

couple A you. additional questions thank of please. Great,

deposits, First the that through from please today be of also the about trend December talk then helpful? can share XX would until all, quarter QX? you relative throughout and forward end And the the of from you XX March Banking-as-a-Service to insights whatever would

Jim Dullinger

it's Jim again. Yes -

will we anticipate first second upon a strategic in growth XXXX, half, within in strategic is end first the and as education standpoint quarter And the likely our investments stabilized. the I mentioned then of stabilization. it So is the from call, to higher a initiatives. vertical of we we of be overall growth based a of come to and the as first expect period our return deposits, our overall last think By half

the from to a but deposit the you there QX, by QX was we stabilization half. of can from our overall, slight end reduction So first occur expect total as see numbers, into

Bill Dezellem

then stabilization me happen really see specifically leads rate of the then does Did the part let in of really of as last Or that so continue from second you and in quarter quarter? QX? And to with business progressed so point - outflow the slow the BaaS that the that. half deposit forward, stabilization this the that the

Raj Singh

portion of That This interest portfolio. the the is Raj. rate-sensitive overall is

move it going is to what continue is think relates So, has have we to Jim But rate But will and portion. we one-off closely to are runoff stabilize. to that see to as of as quarter. started monitor articulate into the I - that we to the next trying higher declined

Bill Dezellem

you. organic been organic that's you relative had And have growth growth? thank - that there. you Great, deposits then successful the leading What to to doing student

Luvleen Sidhu

Sure.

So to I'll deciding, take that answer one. just because we all We're questions. want [ph] your

- as business, to is student about upside wanted But huge ground way the business I There's the I that opportunities for potential before, the they're the in deals that I come in hopefully, said harder everyone there. can to are very BaaS is think ways, exciting. profitable So that come that there structured realities be structured be unique of need along to and between. but

on so we have able meantime awesome is a being be our in capitalizing student efforts leveraging much our the to for. this proud and we're destiny control and really Well, to under business pay and is refocused more the that of part

X million have market every we a huge replenishing market of so, students year. single we serve, that's a that And

we're because want affordable. foundation give for creating we're best here, always in that mission-driven And really of students the to and them is financial interest positive a students, and we

tactics. mission getting of into just So tell before our to you some I want our

tactics few. So a just our to name is

product our one technology single side the business. really unifying on we're So, to platform on focusing across

that business and sure most making equivalent so has to student technology. that is student experience our app really And that best our modern,

moving our year goal have get that to we that by hands beginning the an technology experience students the side. And most our API-based platform, student BaaS the in so, it's nature. our driven And modern app of also which end side have to would and of that's the on we be is into

what product. over enhancements time, we'll that continue And more be we and platform, at. empower also financially are we're help have engage it's API-based an of more. pipeline features, the to to and a that ask That's customer-centric what could to students are that products the respond what and you to able with our you, that, looking feature given quickly the much really So very more

and just we're then And the as Raj side. marketing remarks, said revamping in reinvesting, his on

leveraging working to loyalty segmentation to communication primary revamp encourage launch well. to of We're in population. banking program and communicating on working incentives So process personalization before and of some our as student for type our on the relationships. We're rewards-based year-end students

whole wanted but activities of So give teams a I we're a that technology of just what to product doing, list there's and you working flavor marketing here on. our

Bill Dezellem

that, were had key And Luvleen, basis. was on the specifically or QX go-forward a about driver How drivers is in key what the you for the there? success

Luvleen Sidhu

it's things innings I So beginning the of of said. that just some the

business, also, We do be all seasonal QX stronger in transparency, to a for a have and quarter tends us.

it so those things. of a And mix of was really both

Bill Dezellem

then Great. Thank you. questions. of a couple And additional

are and Luvleen all, you co-CEO responsibilities? of the splitting two of First Raj, how the

Luvleen Sidhu

Sure.

But more excitement talk firstly, and and as a so innovation table. they same remarks, you would to to his key to on employees, continue to our a the through in he's the impact I for as And organization. grateful So that answer to and my enthusiasm partner. is handling chance if your them, have what had I'm Raj vision, sales. I the strategy, being the felt focus I to ever directly think share bringing said prepared the And customer relationships question, the

well as fraud, us at for revenue as profitability risk, customer opportunities actually on well. to to focused he drive continues additionally, also opportunities different reporting HR, support opportunistically these him M&A really and Raj me But efficiencies he's legal, as has service, looking helping and to us find in operational functions.

Bill Dezellem

built Thank the you. half relative Great. full your second numbers? to will savings have for year, the then in cost And how much to guidance those

Jim Dullinger

We be it would I year. the of half. QX Yes. we quarter XX% that of be of -- I that remaining million the in of expect savings the be remainder continued of in would course of in second over achieved our goal from would the expect year. mentioned end people that to half the bulk expect through initiatives. the QX, will but achieve half $XX second would There roughly this million the $X about achieved would the will be We've the -- in the first the

Bill Dezellem

by basically annualized we're when million -- $X you Is number? that But second so that million And that's the actually end say? so by of in would be what of December, $XX embedded the half be present. the hearing would

Jim Dullinger

think I you're proportions. correctly slightly north about thinking it probably I million, of think $X but in

Bill Dezellem

all you for Thank the time. Perfect.

Luvleen Sidhu

you. Thank

Jim Dullinger

Thank you.

Operator

questions to web. there this the submitted over at for the call the Brian time. Thank turn I'll you. audio And via further are questions no

Brian Prenoveau

Thank operator. you,

Our first question do process? the ongoing FCB? with you the you crisis potentially approval on is, do foresee bank update And regulatory partnership any regional have that impacting

Raj Singh

Sure.

We as with to They remain than more and the -- current have process or based feedback, dialogue expected. FCB weekly continue on us they're a basis. going on to active continue the to weekly through as with well that provide as that updates optimistic respect to their continue standing is proceeding

we to existing today. key that's set think just we of unfortunate obviously, here And company, tremendous exist events our and model. as Customers our other able Bank with with and believe need. and crisis, versus bank has has us bank overall And to regulatory strength continued relationship support well-being the strength, their continue financial that sit an and to sponsor fintechs differentiates services to a been steadfast that provide asset all the continue us to of has a terms extremely be In been I

their also in terms that We process respect to similarly their selecting regulatory capitalization, well of position their them underwent controls, us will we ongoing with with stability. the standing believe for FCB

programs. relationships, developing that of partnerships well very, lot primary parties terms So of a ongoing to of two our in I very make our sense those of done stability think we've relationships, economically in having both terms and ensure

Brian Prenoveau

Raj. Great. Thanks,

in questions program two is that still was We effect? program repurchase on the And have actually if that announced.

Jim Dullinger

Yes. This is Jim again.

our XXXX. I is So cash mentioned generate I core in both to of flow the well positive over think remainder EBITDA my as expectation is positive as -- as remarks

is it obviously, for the invest to flow shareholder maximum cash we positive return. to opportunities generated, that As look

cash. One at of the we'd -- of that of opportunities opportunities pre-communicated the options that the one use one previously is is many the repurchase for of obviously of announced for that program look that

Brian Prenoveau

you. Thank Great.

question in have in explain you the another expenses that cash? cash about We the balance. expand of and and on drop Could sort the dip nonrecurring

Jim Dullinger

Yes. Yes.

of my to cash being single as working profit that think QX, are remarks, nature nonrecurring in the then the took first first expenses the quarter, in mentioned nonrecurring payment as I also, some I And relates during the we enhancement outlays. to the there that was Part occurred well. nonrecurring the included capital and that activities items of quarter there so related largest. plan in severance

expectation of would would of that EBITDA, we forward expect those EBITDA in close in of correlation is remainder the we the I throughout improvement an from say cash a movement XXXX. core core as achieve for very continue we improvements as

Brian Prenoveau

And plans the have Bank not -- First are merger, merger Jim. -- what the after organically Carolina you sorry grow partnership. do Thanks, or any deposits to I'm plans

Raj Singh

This seeing is at That's the this among parts exciting the we're time. what probably Raj. Yes. of most Yes. in business

the ways that think terms whole already Luvleen marketing effect, I adapt that have we at onboarding different products, have channels, of initiatives and sign-ups actively that. communication of improved in platforms which there's way mentioned, shown we're those a think integrating to a initiatives positive some our some and which leveraging ability technology variety variety our looking changing had processes, by of be I underway, leveraged, technology product can

it market the opportunity I enormous longer various an implement that during think start there and XXXX, little that continue strategize experiencing I term, around. half but solutions is of And which we'll a there, think impact. bit we'll untapped And will take just to of time, second

Brian Prenoveau

further Thanks, on see Raj. no questions webcast. I the

call to the back So I'll over Luvleen. turn

Luvleen Sidhu

you, Thank today. you that Thank joined to everyone Brian.

of moment, and we're see you about we're lot and future pivotal As can in going. a the that excitement a where there's

base and support, So continued Thank you I touch you. next with your we'll quarter. appreciate

Operator

today's your And may you now And Thank participation. that presentation. you disconnect. concludes for

BM (BMTX) 22 May 232023 Q1 Earnings call transcript