BM Technologies Reports Record Q1 2021 Results; Q1 2021 EBITDA of $8.7M, a 10X Increase YOY; Ending Serviced Deposits Exceed $1.5 billion, a 155% Increase YOY

Tuesday, 18. May 2021 00:35

RADNOR, Pa., May 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 record results for first quarter 2021.


  • Q1 2021 GAAP revenues of $24.4 million, a 55% increase compared to Q1 2020. Q1 2021 core1 revenues were $24.1 million, a 54% increase compared to Q1 2020.
  • GAAP net income of $18.9 million, compared to a loss of $4.5 million in Q1 2020. Q1 2021 includes a $15.0 million gain on the fair value of private warrant liability; diluted earnings per share equaled $0.25, compared to $(0.74) per share in Q1 2020.
  • EBITDA of $8.7 million; EBITDA margin expanded to 36% in Q1 2021 compared to (6)% in Q1 2020.
  • Continued positive operating leverage, as Q1 2021 core revenue increased $8.5 million even as Core Operating Expenses excluding depreciation and amortization decreased $1.2 million.
  • Positive operating cash flow. Cash provided by operating activities was $9.5 million in Q1 2021.
  • Strong liquidity. BMTX had $17.4 million of cash at March 31, 2021 and a $10.0 million credit line with $5.4 million drawn.


  • Average serviced deposits of $1.32 billion in Q1 2021, a 112% increase compared to March 31, 2020 and a 42% increase compared to December 31, 2020. New business serviced deposits increased 665% compared to Q1 2020. Serviced deposits ended March at $1.55 billion.
  • Debit card spend was $881 million in Q1 2021, a 31% increase compared to Q1 2020. New business debit spend increased 137% compared to Q1 2020.
  • Q1 2020 Higher Ed Organic Deposits (deposits that are not part of a school disbursement) increased 58% year over year to $651 million, a strong indicator of primary banking behavior.
  • Continued tailwinds from federal stimulus – In Q1 2021 stimulus funds into our accounts exceeded $187 million, nearly double our highest quarter in 2020.
  • In February, BMTX logged it's one millionth SSE (Signed School Enrollment) since acquiring the student disbursement business in 2016, providing access to 1M more students to potentially convert into bank account customers.
  • Our high volume, low-cost customer acquisition strategy continues to yield a customer acquisition cost (CAC) below $10 per active account.2
  • Un-annualized revenue per 90 day active account increased 42% YOY to $42 in Q1 2021.

Luvleen Sidhu, BMTX’s Chair, Chief Executive Officer, and Founder commented, "We are happy to report record results in the first quarter of 2021. The significant growth in our serviced deposits and spend were reflected in our significant increase in revenues, which, coupled with expense control, resulted in first quarter EBITDA that was almost triple all of 2020. We remain excited about our outlook both strategically and financially.”

On January 4, 2021, BankMobile Technologies, Inc. became an independent company after the completion of a merger transaction and the new consolidated company 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. Periods prior to 2021 presented for comparative purposes represent the balances and activity of BankMobile Technologies, Inc. (other than shares which were retroactively restated in connection with the merger).

On April 12, 2021, the SEC issued a statement on the accounting of warrants issued by special purpose acquisition companies entitled "Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies ("SPACs") to highlight potential accounting implications of certain terms that may be common in warrants included in SPAC transactions. The company has considered this statement and other appropriate guidance, and made the determination that its private warrants should be accounted for as a liability and carried on the balance sheet at fair value, with changes in fair value running through the income statement. At March 31, 2021 that value was $15.8 million, a reduction of $15.0 million from its merger transaction, and the $15.0 million is reflected in the company's Q1 earnings. This item is non-cash, and management excludes it from core metrics including expense and EBITDA, given its view that this does not reflect the fundamentals of its business.

Business Update

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

Higher Education

During Q1 2021 we retained more than 99% of our higher education institutions and disbursed $4.2 billion in refunds to students (up 10% year over year), including $592 million into BankMobile Vibe Accounts held at our partner bank. In addition, organic deposits (deposits that are not part of a school disbursement) increased 58% compared to Q1 2020 to $651 million, indicating strong primary banking behavior. The average balance per active account increased 30% YoY to over $1,600 and the spend per active account increased 37% YoY to over $2,000. Additionally, approximately 11% of active accounts had a monthly deposit of $300 or more in March 2021. We also saw an increase in savings accounts of approximately 31% YOY. Savings account customers are more engaged and loyal customers.

We continue to be excited about the expansion of our overall product offerings in the colleges and universities vertical; in the first quarter we introduced a new vendor payments product and signed a contract with a higher education services to significantly expand our reach to new colleges and universities. We are also working towards the launch of a co-branded BankMobile Google Plex account, which we expect will result in more students choosing a BankMobile account to receive their refund.

"New Business" (White Label and Workplace Banking)

We continue to experience significant growth in our "new" business, with Q1 2021 year-over-year growth of 665% in average serviced deposits and 137% growth in debit card spend. We also want to highlight the significant primary account usage patterns of our most active white label account holders. In Q1 2021, highly active users with both direct deposit and a minimum of 5 customer driven transactions per month are spending in excess of $19,500 annually on their debit cards and have average deposit balances of $1,200 which compares to $14,700 in annualized spend and $570 in average deposit balances in the year ago period. This very attractive cohort makes up approximately 14% of accounts.

We continue to actively work a pipeline of prospective new white label customers whereby we enable them to offer a suite of financial services products through our proprietary technology stack. 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 late 2020, we announced partnerships with Prudential Financial, Inc. to provide financial wellness services as part of the Workplace Banking offering, and BenefitHub a leading marketplace for employee benefits.


Q1 2021 GAAP revenues totaled $24.4 million, a 55% increase compared to Q1 2020. Q1 2021 core revenues increased 58% to $24.1 million compared to Q1 2020. Core revenues are a non-GAAP measure which management believes provide investors an enhanced understanding of our business excluding the effects of items we do not consider indicative of our core operating performance; a reconciliation appears later in this release.

(dollars in thousands)Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020YOY $
Interchange & card revenue$8,351  $6,232  $7,377  $6,069  $6,607  $1,744   26 %
Deposit servicing fees9,372  6,862  5,814  5,024  4,765  4,607   97 %
Account fees2,686  2,791  2,789  2,819  2,909  (223)  (8)%
University fees1,324  1,292  1,348  1,395  1,285  39   3 %
Other2,650  154  1,010  124  192  2,458   NM
Total GAAP revenues$24,383  $17,331  $18,338  $15,431  15,758  $8,625   55 %
Servicing fee Adjustment3(283) (80) (96) 120  (123) (160)  NM
Core revenues4$24,100  $17,251  $18,242  $15,551  $15,635  $8,465   54 %
Core EBITDA$8,727  $1,438  $3,588  $(643) $(903) $9,630   NM
Core EBITDA Margin36 %8 %20 %(4)%(6)%    

NM refers to changes greater than 150%.

Income Statement Trends

Core EBITDA5 totaled $8.7 million in Q1 2021 compared to $(0.9) million in Q1 2020:

       YOY Change
(dollars in thousands)Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020 $%
Interchange and card revenue$8,351 $6,232  $7,377 $6,069  $6,607  $1,744  26 %
Deposit servicing fees9,089 6,782  5,718 5,144  4,642  4,447  96 %
Account fees2,686 2,791  2,789 2,819  2,909  (223) (8)%
University fees1,324 1,292  1,348 1,395  1,285  39  3 %
Other2,650 154  1,010 124  192  2,458  NM
Core Revenues$24,100 $17,251  $18,242 $15,551  $15,635  $8,465  54 %
Core OpEx (Ex. Dep & Amor)15,373 15,813  14,654 16,194  16,538  (1,165) (7)%
Core EBITDA$8,727 $1,438  $3,588 $(643) $(903) $9,630  NM
Less: Interest Expense54 249  353 399  $394  $(340) (86)%
Less: Merger expenses   377 25       %
Less: Dep & Amor2,960 3,042  2,601 3,045  3,180  (220) (7)%
Core Pre-Tax Income $5,713 $(1,853) $634 $(4,087) $(4,477) $10,190  NM

NM refers to changes greater than 150%

Interchange and card revenue increased 26% to $8.4 million in Q1 2021 driven by a 31% increase in debit spend. Core deposit servicing fees increased 96% to $9.0 million, driven by a 112% increase in average serviced deposits. Account fees declined $0.2 million, or 8%. Other revenues increased $2.5 million, primarily due to additional development revenues from a white label partner, which vary from quarter-to-quarter based on project status, costs, contract status, and milestones.

Q1 2021 GAAP expenses, including depreciation and amortization, totaled $18.6 million, a 6% reduction from Q1 2020. Core operating expenses, excluding depreciation and amortization, decreased 7% to $15.4 million, driven largely by contractor conversions to lower cost full time employees and a headcount reduction in October 2020. Depreciation and amortization totaled $3.0 million in Q1 2021, a 7% decrease from Q1 2020. Interest expense declined to $54 thousand in Q1 2021 compared to $0.4 million in Q1 2020 given the reduction in debt outstanding.

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


“2021 is off to a strong start, as we embark on our journey as a newly independent publicly traded company. Our results reflect strong growth in deposits and spend. We are excitedly working towards expanding our existing partnerships, adding new white label partners, launching a co-branded BankMobile Google Plex account in partnership with Google, and opportunities to expand our product offerings. We are on track to reach our 2021 EBITDA target of $20 million to $22 million,” concluded Sidhu.


The company will host a live webcast to discuss its first quarter results at 9AM on Tuesday, May 18, 2021. The webcast can be accessed via its investor relations site ( by clicking on "Events & Presentations", then "Events Calendar," and following the link under "Upcoming Events;" or directly at

Contact Information
Bob Ramsey
Chief Financial Officer, BM Technologies, Inc. (BMTX)

Media Inquiries:
Kati Waldenburg
Vice President, Rubenstein Public Relations, Inc.

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. These risks and uncertainties include, but are not limited to, general economic conditions, consumer adoption, technology and competition, the ability to enter into new partnerships, regulatory risks, risks associated with the higher education industry and financing, and the operations and performance of the Company’s partners, including white-label partners, and other factors described in the section entitled “Risk Factors” and in the Company’s periodic filings with the Securities and Exchange Commission (“SEC”). The Company’s SEC filings are available publicly on the SEC website at The Company disclaims 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, except earnings per share)

  For the Three Months Ended
March 31,
  2021 2020 
Operating revenues:     
Interchange and card revenue $8,351  $6,607  
Servicing fees from Customers Bank  9,372   4,765  
Account fees  2,686   2,909  
University fees  1,324   1,285  
Other  2,650   192  
Total revenues $24,383  $15,758  
Operating expenses:       
Technology, communication, and processing  8,652   6,078  
Salaries and employee benefits  5,423   7,465  
Professional services  1,737   3,958  
Provision for operating losses  1,329   883  
Occupancy  352   419  
Customer related supplies  475   51  
Advertising and promotion  191   217  
Merger and acquisition related expenses     50  
Other  457   770  
Total expenses  18,616   19,891  
Income (loss) from operations  5,767   (4,133) 
Non-operating expenses:       
Gain on fair value of private warrant liability  15,003     
Interest expense  54   394  
Income (loss) before income tax expense  20,716   (4,527) 
Income tax expense  1,827   7  
Net income (loss) $18,889  $(4,534) 
Basic shares outstanding  11,900   6,123  
Diluted shares outstanding  15,512   6,123  
Basic earnings (loss) per common share  1.59   (0.74) 
Diluted earnings (loss) per common share  0.25   (0.74) 


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. Core revenues, expenses, and EBITDA exclude the effects of items we do not consider indicative of our core operating performance, including fair value mark to market income or expense associated with certain warrants. Management believes the use of 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 Core Revenues (in thousands):

   Three Months Ended
March 31,
   2021 2020
GAAP revenues $24,383   $15,758  
Deposit servicing fee adjustment6 (283)  (123) 
Core Revenues $24,100   $15,635  

Reconciliation - GAAP Operating Expenses to Core Operating Expenses (in thousands):

  Three Months Ended March 31,
  2021 2020
GAAP total expenses    $18,616   $19,891  
Deposit servicing fee adjustment 6(283)   (123) 
Merger expenses    (50) 
Core Operating Expenses (before depreciation) 18,333   19,718  
Depreciation and amortization 2,960   3,180  
Core Expenses    $15,373   $16,538  

Reconciliation - GAAP Net Income to Core EBITDA (in thousands)

  Three Months Ended March 31,
  2021 2020
GAAP net income (loss)   $18,889  $(4,534)
Gain on fair value of private warrant liability    (15,003)   
Merger expenses   50 
Interest and taxes 1,881  401 
Depreciation and amortization 2,960  3,180 
  Core EBITDA   $8,727  $(903)

1 Core metrics are non-GAAP measures which exclude the effects of items we do not consider indicative of our core operating performance. A reconciliation is included on page 7 of this release.
2 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.
3 Core revenue and expense are adjusted to remove fraud losses from expense and the reimbursement by BMTX's bank partner from revenues. Core Revenues are a Non-GAAP measure; a reconciliation appears on page 7 of this release.
4 Core metrics are Non-GAAP measures which adjust revenues to exclude certain items; a reconciliation appears on page 7 of this release.
5 Core metrics are Non-GAAP measures which adjust revenues to exclude certain items; a reconciliation appears on page 7 of this release.
6 Core revenue and expense are adjusted to remove fraud losses from expense and the reimbursement by BMTX's bank partner from revenues. Core revenue and expense are adjusted to remove fraud losses from expense and the reimbursement by BMTX's bank partner from revenues.

Key Performance Metrics

        YoY Change 
  1Q202Q203Q204Q201Q21 $ % 
Debit card POS spend ($ millions)           
Debit card POS spend - higher education $614 $606 $633 $567 $735  $122   20 % 
Debit card POS spend - new business 61 88 108 115 145  84   137 % 
Debit card POS spend - total $675 $693 $741 $682 $881  $206   31 % 
Serviced deposits ($ millions)            
Ending service deposits - higher education $503 $500 $645 $405 $665  $162   32 % 
Ending service deposits - new business 107 163 299 555 892  785   734 % 
Ending service deposits - total $610 $663 $944 $960 $1,557  $948   155 % 
Average service deposits - higher education 528 552 541 511 600  71   14 % 
Average service deposits - new business 94 138 217 418 718  624   665 % 
Average service deposits - total $622 $690 $758 $928 $1,317  $695   112 % 
Higher Education Metrics           
Higher Ed retention 99.9%99.8%99.7%99.4%99.5% (0.4)%   
FAR(1) disbursement amount ($ billions) $3.9 $2.6 $3.3 $1.9 $4.2  $0.4   10 % 
Organic deposits (2) - higher education $413 $527 $501 $438 $651  $238   58 % 

(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.

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