BM Technologies, Inc.

Thank you, Chris. Good morning, everyone. Thank you for joining us for BM Technologies' second quarter earnings conference call. Our earnings release and investor presentation were filed this morning, and both are posted on the investor relations page of the company's website at ir.bmtxinc.com. Our investor presentation includes important details that we'll 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. 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. At this time, it's my pleasure to turn the call over to Lavleen Sidhu, VM Technologies Chair and CEO.

Thank you, Bob. Good morning, everyone. and thank you for joining BM Technology's second quarter and first half of 2022 earnings call. To begin, we are excited to report to you record results in the second quarter and strong performance for the first half of the year. Even in this challenging environment, we are pleased to report Q2 core EBITDA of $5.9 million, up 16% year over year, and over $15 million in core EBITDA for the first half of 2022. Additionally, Our average service deposits increased 29% year over year, totaling $2 billion in deposits. Both Bob and I will later provide more details on financials, but before that, I would like to briefly discuss more details on our strategy. As a reminder, BMTX is one of the largest digital banking platforms and banking as a service providers in the country today. We pursue a B2B2C strategy, which is one of our key differentiators from other neobanking fintechs. Our strategy enables us to acquire bank customers at low cost and at high volumes. To quantify this, we are acquiring customers at less than $10 today, which provides us with a tremendous competitive edge relative to traditional banks and to most challenger banks. Today, we are executing our B2B2C approach in two main verticals, the first being our higher education vertical, where we are dispersing over $12 billion a year in financial aid refunds while also opening several hundred thousand student checking accounts a year with the goal of creating a customer for life. The second vertical is our banking as a service business. Banking as a service has really become a buzzword in recent times and sometimes means different things to different people. For us, it means enabling non-banks and brands with the technology and infrastructure to embed banking services within their existing ecosystem with the purpose of creating more value for their customers. In return, this creates for them new revenue streams, points of differentiation to attract new customers, provides access to more data, which can also be used to create more personalized experiences, all of which help build loyalty and increase customer lifetime value. We have invested well over $60 million in building out our banking-as-a-service technology and are proud to be one of the most competitively positioned banking-as-a-service providers in the market today. With our proprietary, API-driven banking-as-a-service platform and our white-label user interface, we give choice to our clients to embed banking within their own ecosystems and control the user experience fully or effectively. provide them with a ready-to-go app that reflects their brand and product positioning. Overall, 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. Additionally, a key differentiator of BMTX relative to other banking as a service providers is that we manage the entire program end-to-end. often known as program management. This means we not only provide the technology, but also provide the back office support that is critical to launch and run these programs, including but not limited to banking operations, compliance and risk management, fraud management and investigations, and customer service support. Once we become a bank, our positioning in the banking as a service space will become unparalleled. with the combination of a banking as a service technology provider, program manager, and sponsor bank relationship all in one. Once we are fully integrated, once we are fully vertically integrated, we can provide the best experience and perhaps the most competitive pricing in the marketplace today. Our Banking as a Service vertical is best exemplified today by our partnership with T-Mobile and with the launch of our checking and savings accounts called T-Mobile Money. We have a great partnership and continue to expand and grow this relationship. Additionally, we are thrilled to share with you that we have moved from term sheet to a signed contract with a new significant Banking as a Service partner. This new BAS partner has global operations and tens of millions of U.S. customers. BMTX was awarded this relationship through a competitive RFP process, underscoring the competitiveness of its vast offerings in the marketplace. With the addition of this partner, BMTX has expanded its roster of large, well-known brand name partners. This relationship may become even more valuable if BMTX is able to vertically integrate this new partnership with the addition of a banking charter. To protect this partner's launch strategy, we will not identify the partner by name until commercial launch, which is expected to occur in early 2023. In the meantime, we have begun development work with this partner in the second quarter and expect to perform additional work through the remainder of this year. Lastly, we have a third vertical, which is our niche direct to consumer strategy, which is our most nascent vertical. We continue to have high conviction in the market need and value in executing targeted direct-to-consumer strategies to underserved affinity groups. This will include continuing to focus on an employee demographic, but also extend beyond that. We plan to execute on this vertical after we become a bank. So let's get started. Flipping to slide five, I am delighted to report to you record second quarter results and strong performance for the first half of the year. Q2 revenues increased 3% year-over-year to $23 million, up from $22.4 million in Q2 2021. Core EBITDA increased 16% to $5.9 million from $5 million in Q2 2021. Core EBITDA margin also increased to 25% in Q2 2022 from 22% in Q2 of 2021. Additionally, first half of 2022 core EBITDA increased 8% to 15.1 million from 14 million in the first half of 2021. And core earnings increased 184% from the year-ago period to 1.9 million, or 15 cents per diluted share. First half of 2022 core earnings increased 30% from the year-ago period to 6.3 million, or $0.50 per diluted share. Lastly, we continue to show strength in new account origination, opening approximately 215,000 new accounts in the first half of 2022. Moving on to slide six, you can see that our average service deposits total $2 billion in Q2 2022, a 29% increase compared to Q2 2021. Average new business service deposits increased over 50% to $1.5 billion compared to Q2 2021, which is about a half a billion dollar increase. In our student business, refunds disbursed to students in the first half of 2022 totaled $6.9 billion, an increase of 7% from the first half of 2021. And $800 million of these disbursements were deposited into Bank Mobile Vibe check-in accounts based on the student's choice to do so. In addition to this, students made organic deposits into these accounts. These are deposits over and above any refund coming into the account from the school. Organic deposits totaled $925 million during the first half of the year, indicating strong primary banking behavior. Moving on to debit card spend, debit card spend was $700 million in Q2 2022, a decrease of 12% compared to the first half of 21, given the absence of stimulus and perhaps economic factors in the current period. Despite these economic headwinds, our revenue per account growth remains strong, which Bob Ramsey will now talk through on slide seven.

Thank you, Loveline.