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BM Technologies Reports EBITDA Positive Results for Fourth Quarter and Full Year 2020 NYSE:BMTX

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New Business1 Serviced Deposits Increased 579{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} YOY

RADNOR, Pa., March 17, 2021 (GLOBE NEWSWIRE) — BM Technologies Inc. (NYSE American: BMTX) (“BM Technologies,” “BMTX,” “we,” or the “Company”) one of the largest digital banking platforms in the country, today reported results for the fourth quarter and full year 2020.


  • Q4 2020 GAAP revenues: $17.3 million; Q4 2020 pro forma2 core revenues of $17.3 million, a 16{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase compared to Q4 2019
  • 2020 GAAP revenues: $66.9 million; 2020 pro forma core revenues of $66.7 million, a 9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase compared to 2019
  • Added nearly 450 thousand new accounts in 2020
  • EBITDA positive; full year 2020 pro forma core EBITDA of $3.5 million; EBITDA margin has expanded to 5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for 2020 and 8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for 4Q20
  • Total serviced deposits of $960 million at December 31, 2020, a 139{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase compared to 2019. New business serviced deposits increased 579{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to 2019. Subsequent to year-end, deposit growth has continued with over $1.3 billion in deposits as of March 15, 2021   
  • Debit card spend was $2.8 billion in 2020, an 18{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase compared to 2019; New business debit spend increased nearly 250{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} compared to 2019   
  • Our high volume, low-cost customer acquisition strategy continues to yield a customer acquisition cost (CAC) below $10 per active account3
  • Positive operating leverage in 2020, given $5.4 million of pro forma core revenue growth exceeded $2.2 million of pro forma core operating expense growth
  • We recently executed a contract with a higher education services partner giving us access to new colleges and universities
  • Continued tailwinds from federal stimulus – the latest legislation includes $40 billion for higher education and students
  • On January 4, 2021, BankMobile Technologies, Inc. completed its planned business combination with Megalith Financial Acquisition Corp., Inc. and was rebranded BM Technologies, Inc. The company is now fully independent with no ownership by Customers Bank, and trades under the ticker BMTX.

Luvleen Sidhu, BMTX’s Chair, Chief Executive Officer, and Founder commented, “We are happy with our results in 2020, and even more excited about the opportunities that lie ahead as an independent publicly traded company. In 2020 we were EBITDA positive, a differentiator among fintech companies, and we grew our business despite COVID-19 uncertainties. Looking forward, we expect growth to accelerate in 2021, fueled by expansion of our existing white label business, developments in our student business, and the addition of our newest workplace banking business.”

On January 4, 2021, BankMobile Technologies, Inc. became an independent company after the completion of a divestiture transaction and was rebranded BM Technologies, Inc. Previously, BankMobile Technologies was a wholly owned subsidiary of Customers Bank, which is a wholly owned subsidiary of Customers Bancorp. All of the business and financial results disclosed here-in occurred during the period BankMobile Technologies was a wholly owned subsidiary of Customers Bank, unless otherwise indicated.

Business Update

BMTX operates in 3 verticals: higher education and student banking, white label banking and workplace banking.

Despite COVID-related higher education headwinds in 2020, we retained more than 99{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of our higher education institutions and disbursed $11.7 billion in refunds to students, including $1.9 billion into BankMobile Vibe Accounts. In addition, organic deposits (deposits that are not part of a school disbursement) increased 32{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} over 2019 to $1.9 billion. Looking to 2021 we are excited to expand our overall product offerings to colleges and universities including a new vendor payments product. Additionally, we have recently signed a contract with a higher education services company that should significantly expand our reach to new colleges and universities. We are also targeting a pilot program of a co-branded BankMobile Google Plex account this fall, which we expect will result in more students choosing a BankMobile account to receive their refund.   The number of active accounts4 with at least one organic deposit5 in 5 out of the last 6 months rose 16{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} in 2020 to 51 thousand; approximately 13{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of active accounts had a monthly deposit of $300 or more in December of 2020, an increase from 5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} at the end of 2019.

Our white label business is experiencing significant growth, including 579{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} growth in 2020 year-end serviced deposits and 247{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} growth in 2020 debit card spend. We continue to actively work a pipeline of prospective new white label customers and are in final stages of due diligence with a potential new white label partner.   We also want to highlight the significant primary account usage patterns of our most active white label account holders. Highly active users with both direct deposit and a minimum of 5 customer driven transactions per month are spending in excess of $17,000 annually on their debit cards and have average deposit balances of $844. This very attractive cohort makes up approximately 14{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of accounts.

In late 2020, we launched our workplace banking business. We see considerable opportunity to partner with employers to provide financial services benefits, including competitive checking accounts, savings accounts, and lending products to their employees. There are over 20 million US employees that work at Fortune 1000 companies, which we consider our primary target. In the fourth quarter we were excited to announce a partnership with Prudential Financial, Inc. to provide financial wellness services as part of the Workplace Banking offering, and also announced a partnership with BenefitHub a leading marketplace for employee benefits.


2020 GAAP revenues totaled $66.9 million, an 8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} reduction from 2019. 2020 pro forma core revenues increased 9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $66.7 million compared to 2019. Pro forma core revenues are a non-GAAP measure which management believes provide investors an enhanced understanding of our business by normalizing the deposit servicing fee in all periods to conform with the current agreement and excluding the effects of items we do not consider indicative of our core operating performance; a reconciliation appears on page 7 of this release.

    For the Quarter

December 31,
(dollars in thousands)   2020     2019     Change     Change  
GAAP revenues   $ 17,330     $ 17,601     $ (271     (2 ){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core revenues6     17,250       14,865       2,385       16 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core EBITDA     1,323       37       1,286       NA  
Pro Forma Core EBITDA Margin     8 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}      0 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}                 
    For the Year Ended 
December 31,
(dollars in thousands)   2020     2019     Change     Change  
GAAP revenues   $ 66,858     $ 72,307     $ (5,449     (8 ){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core revenues     66,679       61,337       5,342       9 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core EBITDA     3,549       (2,230 )     5,779       NA  
Pro Forma Core EBITDA Margin     5 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}      (4 ){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}                 


    December 31,           {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}  
(dollars in millions)   2020     2019     Change     Change  
Ending Serviced deposits   $ 960     $ 401     $ 559       139 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Debit spend     2,791       2,370       421       18 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}


“With our divestiture behind us, we are excited about the opportunities that lay ahead as an independent publicly traded company. Already this year, we have expanded our team with select key hires, signed several important LOIs, and are on track to sign another significant white label partner. We are excitedly working towards launching new options for student customers in partnership with Google, and our existing business continues to scale. We are on track to reach our 2021 EBITDA target of $21.5 million,” concluded Sidhu.

2020 Income Statement Trends

Pro Forma Core EBITDA totaled $3.5 million in 2020, compared to -$2.2 million in 2019.

    For the Year Ended December 31,     YoY Chg  
($ in millions)   2020     2019     $     {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}  
Interchange and card revenue   $ 26.3     $ 28.1     $ (1.8 )   (7 ){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Deposit servicing fees     22.3       16.5       5.8     35 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Account fees     11.3       10.9       0.4     3 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
University fees     5.3       5.0       0.4     7 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Other     1.5       0.9       0.6     73 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core Revenues   $ 66.7     $ 61.3     $ 5.3     9 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core OpEx (Excl. Depr. & Amort.)     63.1       63.6       (0.4 )   (1 ){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core EBITDA   $ 3.5     $ (2.2 )   $ 5.8     NM  
Less: Interest Expense     1.4       0.5       0.9     NM  
Less: Depreciation & Amortization     11.9       9.3       2.6     29 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Pro Forma Core Pre-Tax Income   $ (9.8 )   $ (12.1 )   $ 2.3     (19 ){14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

“NM” refers to changes greater than 150{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Interchange and card revenue declined 7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $26.3 million as an 18{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase in debit spend was mitigated by a lower rate of interchange as a percentage of debit spend (which we attribute largely to COVID-related change in spending patterns that should normalize higher), and a $1.3 million reduction in foreign ATM fees. Pro forma core deposit servicing fees increased 35{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $22.3 million, driven by a 37{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase in average serviced deposits. Account fees increased 3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $11.3 million. University fees increased 7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $5.3 million given the addition of new schools and benefits of COVID-related services provided to new, non-subscription clients. Other income totaled $1.5 million, compared to $0.9 million in 2019.

2020 GAAP expenses, including depreciation and amortization totaled $77.2 million, a 3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} reduction from 2019. Pro forma core operating expenses, excluding depreciation and amortization, increased 3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} to $75.1 million. Pro forma core operating expenses in 2020 exclude $739 thousand of merger related costs related to our divestiture from Customers Bank, and a $1.2 million non-cash work-in-progress (WIP) write-down for discontinued product, net of partner cost reimbursements. Investments in the business and growth were offset by contract optimization initiatives launched in 2H 2019 and additional operating leverage initiatives implemented in October 2020 which will bring continued benefits in 2021. These efforts have yielded a combined $17 million in annualized benefits which has been partially offset by investment in the business.

Depreciation and amortization totaled $11.9 million in 2020, a 29{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} increase from 2019 driven by the launch of white label products and amortization of capitalized development expenses.

Interest expense totaled $1.4 million in 2020, compared to $0.5 million in 2019. In conjunction with our separation from Customers Bank, BMTX paid down its $40 million in borrowings to $21 million at December 31, 2020. Concurrent with the closing of the separation from Customers, BMTX paid off the prior $21 million of intracompany debt, and drew $5.4 million on a new $10 million line of credit with an interest rate equal to one-month LIBOR plus 375 bps. The $5.4 million drawn on the $10 million line is the company’s only debt outstanding from the January 4 divestiture close through the time of this release.

An updated version of BMTX’s investor presentation is available on the Company’s Investor Relations website at

Contact Information

Bob Ramsey
Chief Financial Officer, BM Technologies, Inc. (BMTX)
[email protected]

Media Inquiries:
Kati Waldenburg
Vice President, Rubenstein Public Relations, Inc.
[email protected]

ABOUT BM Technologies, Inc.

BM Technologies, Inc. (NYSE American: BMTX, BMTX.W) is among the largest digital banking platforms in the U.S., providing access to checking and savings accounts, personal loans, credit cards, and financial wellness. It is focused on technology, innovation, easy-to-use products, and education with the mission of being “customer-obsessed” and creating “customers for life.” The BMTX digital banking platform employs a multi-partner distribution model, known as “Banking-as-a-Service” (BaaS), that enables the acquisition of customers at higher volumes and substantially lower expense than traditional banks, while providing significant benefits to its customers, partners, and business. BMTX currently serves over two million account-holders and provides disbursement services at approximately 725 college and university campuses (covering one out of every three students in the U.S.). BM Technologies, Inc. is a technology company and is not a bank, which means it provides banking services through its partner banks. More information can also be found at


This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Such statements are based on management’s current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Please refer to the risks detailed from time to time in the reports we file with the Securities and Exchange Commission (“SEC”), including our proxy statement/prospectus filed with the SEC on December 11, 2020, our Registration Statement on Form S-1 filed with the SEC on February 12, 2021, as well as other filings for additional factors that could cause actual results to differ materially from those stated or implied by such forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.


(amounts in thousands)

    For the Years Ended
December 31,
    2020     2019     2018  
Operating revenues:                  
Interchange and card revenue   $ 26,285     $ 28,124     $ 29,923  
Servicing fees from Customers Bank     22,465       27,425       16,140  
Account fees     11,308       10,937       6,544  
University fees     5,320       4,964       4,720  
Other     1,480       857       189  
Total revenues     66,858       72,307       57,516  
Operating expenses:                        
Technology, communication, and processing     27,404       27,310       30,281  
Salaries and employee benefits     26,076       22,758       14,607  
Professional services     9,304       10,646       8,301  
Provision for operating losses     5,170       9,367       5,417  
Occupancy     1,428       1,791       1,656  
Customer related supplies     825       1,538       2,117  
Advertising and promotion     941       1,354       557  
Merger and acquisition related expenses     739       100       4,090  
Other     5,346       4,744       5,065  
Total expenses     77,233       79,608       72,091  
Loss from operations     (10,375 )     (7,301 )     (14,575 )
Non-operating expenses:                        
Interest expense     1,395       535        
Loss before income tax expense     (11,770 )     (7,836 )     (14,575 )
Income tax expense     23       27       28  
Net loss   $ (11,793 )   $ (7,863 )   $ (14,603 )


Certain financial measures used in this Press Release are not defined by U.S. generally accepted accounting principles (“GAAP”) and as such are considered non-GAAP financial measures. Pro forma core revenues, expenses, and EBITDA exclude the effects of items we do not consider indicative of our core operating performance and normalize the deposit servicing fee in past periods to be consistent with the current servicing agreement. Management believes the use of pro forma core revenues, expenses, and EBITDA are appropriate to provide investors with an additional tool to evaluate the Company’s ongoing business performance. Investors are cautioned that these non-GAAP financial measures may not be defined in the same manner by other companies and, as a result, may not be comparable to other similarly titled measures used by other companies. Also, these non-GAAP financial measures should not be construed as alternatives, or superior, to other measures determined in accordance with GAAP.

Reconciliation – GAAP Revenues to Pro Forma Core Revenues (in thousands)

      Three Months Ended
December 31,
  Year Ended
December 31,
      2020   2019   2020   2019
GAAP revenues   $ 17,330     $ 17,601     $ 66,858     $ 72,307  
Deposit servicing fee adjustment           (2,736 )           (10,970 )
Fraud reimbursement adjustment     (80 )           (179 )     0  
Pro Forma Core Revenues   $ 17,250     $ 14,865     $ 66,679     $ 61,337  

Reconciliation – GAAP Operating Expenses to Pro Forma Core Operating Expenses (in thousands)

      Year Ended
December 31,
      2020   2019    
GAAP total expenses   $ 77,233     $ 79,608      
Non-cash loss on software write-down     (1,248 )          
Fraud reimbursement adjustment     (179 )     (4,653 )    
Merger expenses and DOE settlement     (739 )     (2,100 )    
Pro Forma Core Operating Expenses
    (Before Depreciation)
    75,067       72,855      
Depreciation and amortization     (11,937 )     (9,288 )    
 Pro Forma Core Expenses   $ 63,130     $ 63,567      

Reconciliation – GAAP Net Income to Pro Forma Core EBITDA (in thousands)

      Three Months Ended
December 31,
  Year Ended
December 31, 
      2020   2019   2020   2019
GAAP net loss   $ (3,390 )   $ (2,118 )   $ (11,793 )   $   (7,863 )
Non-cash loss on software write-down     1,248             1,248        
Deposit service fee & fraud reimbursement adj           (2,549 )           (6,317 )
Merger expenses & DOE settlement     287       1,100       739       2,100  
Interest and taxes     251       409       1,418       562  
Depreciation and amortization     2,927       3,195       11,937       9,288  
Pro Forma Core EBITDA   $ 1,323     $ 37     $ 3,549     $ (2,230 )

Key Performance Metrics

  1Q19     2Q19     3Q19     4Q19     1Q20     2Q20     3Q20     4Q20     2019     2020     YOY Change  
Debit card POS spend ($ Millions)                                                                      
Debit card POS spend – higher education $686     $511     $559     $506     $614     $606     $633     $567     $2,262     $2,419     $157     7 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Debit card POS spend – new business 5     14     39     50     61     88     108     115     107     372     265     247 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Debit card POS spend – Total 691     525     597     557     675     693     741     682     2370     2791     422     18 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Serviced Deposits ($ Millions)                                                                      
Ending serviced deposits – higher education $616     $410     $598     $319     $503     $500     $645     $405     $319     $405     $85     27 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Ending serviced deposits – new business 11     47     68     82     107     163     299     555     81.84     555.30     473     579 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Ending serviced deposits – Total 627     456     666     401     610     663     944     960     401     960     559     139 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Average serviced deposits – higher education 626     461     471     467     528     552     541     511     506     533     27     5 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Average serviced deposits – new business 9     28     58     75     94     138     217     418     43     217     174     407 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Average serviced deposits – Total 635     489     529     543     622     690     758     928     549     750     202     37 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Higher Ed Metrics                                                                      
Higher Ed Retention 99.5 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.5 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.1 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   98.2 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.9 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.8 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.7 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.4 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   98.2 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   99.4 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}   1.2 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}      
FAR1 disbursements amount ($ Billions) $3.8     $1.5     $3.2     $1.7     $3.9     $2.6     $3.3     $1.9     $10.3     $11.7     $1.4     13 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
Organic Deposits2 higher education $416     $335     $334     $323     $413     $527     $501     $438     $1,408     $1,879     $471     33 {14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
1  FAR disbursements are Financial Aid Refund disbursements from a higher education institution
2  Organic Deposits are all higher ed deposits excluding any funds disbursed directly from the school

1 “New Business” refers to everything outside of the higher education business
2 Pro forma core metrics are non-GAAP measures which exclude the effects of items we do not consider indicative of our core operating performance and normalize the deposit servicing fee in past periods to be consistent with the current servicing agreement and management believes provide a clearer view of our business. A reconciliation is included on page 7 of this release
3 CAC is calculated based on TTM Total Marketing and Client Operations expense, net of subscription fees paid to BMTX for higher education clients, divided by TTM newly active accounts
4 “Active Accounts” are defined as any account in the higher education vertical with activity in the trailing 12 months
5 “Organic deposits” are defined as deposits in the higher education vertical that are not disbursed directly through the school
6 Pro forma core metrics are Non-GAAP measures which adjust revenues to reflect our current servicing agreement and exclude non-recurring items; a reconciliation appears on page 7 of this release

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