BM Technologies, Inc.

Good day and thank you for standing by. Welcome to the BMTX 3Q 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. If you require any further assistance, press star 0. I would now like to hand the conference over to your speaker today, Bob Ramsey, CFO. Thank you. Please go ahead.

Thank you, and good morning, everyone, and thank you for joining us on BM Technologies' third quarter 2021 earnings webcast. Our earnings release, merger announcement, and investor presentation were issued earlier this morning, and all are 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, I would like to remind you that some of the statements we make today may be considered forward-looking. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance results to differ materially from what is currently anticipated. Please note that these forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to update these forward-looking statements in light of new information or future events, except to the extent required by applicable securities laws. Please refer to our SEC filings, including our Form 10-K and 10-Q, for a more detailed description of the risk factors that may affect our results. Copies may be obtained from the SEC or by visiting the Investor Relations section of our website. This morning, I am joined by BM Technologies CEO, Loveline Sadu, Chief Operating Officer, Bob Deagle, and CTO, Jamie Donahue. At this time, it's my pleasure to turn the call over to Loveline.

Thank you, Bob. Good morning, everyone, and thank you for joining BM Technologies' third quarter earnings call. As Bob said, joining us today is also our COO, Bob Deagle, and our CTO, Jamie Donahue. who are on the line and available during the Q&A section. We are thrilled to be sharing with you two great accomplishments this morning, the first being our record Q3 results and the second, our exciting strategic merger with First Sound Bank. Before we get started diving into both of these significant updates, for those joining us for the first time, I wanted to provide a brief overview of who we are. BMTX is one of the largest digital banking platforms in the country today with over 2 million accounts. We are on a mission to make banking better for millions of Americans by providing a more affordable, transparent, and consumer-friendly banking experience. We were one of the first neobanking fintechs to go public earlier this year, are one of the first to have a profitable business model, and are now among the first fintechs embracing a bank charter to create an innovative fintech bank with a sustainable, profitable business model into the future. We pursue a B2B2C and a banking as a service strategy, which allows us to acquire bank customers at low cost and at high volume. Today, we are acquiring customers at less than $10. This provides a tremendous competitive edge for us relative to not only traditional banks, but also to most challenger banks, which are having to spend an exorbitant amount to acquire a bank customer. Today, we are leveraging our B2B2C and banking as a service strategy in three main verticals. The first being higher education vertical, where we have relationships with approximately 745 campuses across the country which allows us to touch one in every three college-bound students and introduce them to BM Technologies and offer to them a choice to open a BankMobile Vibe checking account through our partner bank. It is through this vertical that we disburse $11 to $12 billion a year, of which approximately $2 billion flow into BankMobile Vibe checking accounts. And we are opening several hundred thousand new accounts a year through this channel. The second vertical is our banking as a service business. Through our proprietary API-driven banking as a service platform and our white label interface, we are able to help fintechs and brands launch fully branded financial services products to their customers and to their employees at a fraction of the cost and at a fraction of the time it would take them to roll this out on their own. Our offering provides them with a strong point of differentiation that leads to attracting new customers, building greater customer loyalty, adding new revenue streams, and accessing data to provide an even more personalized experience to their customers. Additionally, our technology can also be used by community banks and credit unions to accelerate their digital strategies with state-of-the-art mobile and web-based banking apps. And we can also provide back office banking operations, compliance, fraud and risk management, and customer service support if needed. Our banking as a service vertical is best exemplified today by our partnership with T-Mobile and with the launch of our checking account product, T-Mobile Money. We continue to expand and significantly grow this relationship. Lastly, our workplace banking vertical, where we distribute the BankMobile suite of banking products to employees across the country as a financial wellness offering. We continue to make solid progress in all three of these verticals. As mentioned, we are a mission-driven company first and foremost and are dedicated to our vision of making financial services more accessible and affordable and to financially empower millions of Americans. From a financial standpoint, our vision continues to be to create a company with a market cap of 500 million to a billion over the next three to five years by executing on the strategy that we've laid out and building upon the strong foundation we already have. So let's get started. Flipping to slide four. I am delighted to report to you record results for the third quarter and first nine months of 2021. we are pleased to report Q3 2021 EBITDA of $7 million, up 91% year-over-year, and Q3 year-to-date EBITDA of $20.9 million. Additionally, given our performance to date, we are excited to raise our 2021 EBITDA guidance to $26 million from $24 million. Q1 revenues improved 20% year-over-year with Q3 revenues of $22 million. Additionally, we continued to add new accounts to our portfolio and added approximately 157,000 new accounts in Q3 and approximately 350,000 new accounts year-to-date. Moving on to slide five. Here we graphically show our strong year-over-year growth in revenue and EBITDA. Revenue for the first nine months of 2021 totaled $69.3 million, a 40% increase from the first nine months of 2020. Core EBITDA for the first nine months of 2021 totaled $20.9 million, an 867% increase from the first nine months of 2020. On slide six, you can see that our average service deposits totaled $1.7 billion in Q3 2021, a 128% increase compared to Q3 2020. I would like to point out that at the end of the quarter, service deposits surpassed $2 billion for the first time. Specifically, average new business service deposits increased 433% compared to Q3 2020. which is a $940 million increase. As a reminder, our new business segment includes our banking as a service and workplace banking verticals. In our student business, organic deposits, also as a reminder, these are deposits that are above and beyond any school disbursement, increased 17% year over year to $1.7 billion for the nine months ending September 30th, 2021, indicating strong primary banking behavior. Additionally, debit card spend was $773 million in Q3 2021, a 4% increase compared to Q3 2020, and new business debit spend increased 44% compared to Q3 2020. Lastly, in the higher education vertical, we disbursed $10.6 billion to students year to date, of which $1.4 billion has been deposited into BankMobile Vibe accounts held at our partner bank. Moving to slide seven. We continue to see strong performance in the overall business. Our revenues per active account increased 31% year-over-year to $47. Again, this is an unannualized third quarter revenue number. The strong revenue per account metric is driven by healthy average balances and spend across the portfolio. Again, we couldn't be more excited about our record financial results, and now I will pass it on to our CFO, Bob Ramsey, for some additional financial details.