RADNOR — BM Technologies Inc., reported record results for the second quarter of 2022 and “good performance” for the first half of the year.
The Radnor-based digital banking platform and banking-as-a-service (BaaS) provider reported record high core EBITDA (earnings before interest, tax, depreciation and amortization) this week of 15.1 million for the first half of the year, which represents an increase of 8% compared to the same period in 2021. The company reported a base EBITDA for the second quarter of $5.9 million, an increase of 16% increase compared to the same period in 2021.
The results were achieved “…despite the lack of stimulus last year and the macroeconomic environment this year,” according to Luvleen Sidhu, president and CEO of BM Technologies.
Net income for the second quarter totaled $4.5 million, or $0.35 per diluted share, which includes a $5.6 million non-cash gain on the revaluation of the private warrant liability. For the first six months of the year, net earnings totaled $8.4 million or $0.67 per diluted share, which includes a non-cash gain of $8.3 million on the revaluation of private warrants.
Additionally, the company reported revenue of $23 million, a 3% increase for the same period in 2021.
The company reported several business highlights.
• Average managed deposits totaled $2 billion in the second quarter, a 29% increase over the same period in 2021, while average new business managed deposits increased by $0.5 billion to $1.5 billion, compared to $1.0 billion in 2021.
• Debit card spending was $0.7 billion in the second quarter and $1.5 billion in the first half of 2022, down -12% from the first half of 2021 given the absence of stimulus measures in the current period and economic factors in the current period.
• Around 100,000 new accounts opened in the second quarter and around 215,000 opened in the first half of 2022.
“We are also delighted to share that we have now signed an important new BaaS partner and we look forward to building this relationship,” Sidhu added in a statement.
The company said the new Business-as-a-Service partner — whom it won’t name until the partnership officially launches in early 2023, according to the press release — “has global operations and tens of millions of American customers”. The company began development work with this partner in the second quarter and plans to carry out additional work during the remainder of this year.
Additionally, BM Technologies has signed a definitive merger agreement with Seattle, Washington-based merchant bank First Sound Bank. The combined company, which will be called BMTX Bank, will be a fintech-based bank focused on digitally serving customers nationwide.
“As we continue through 2022, our top strategic priority remains the completion of our merger with First Sound Bank,” Sidhu said. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the second half of this year.
Launched in January 2015, BM Technologies, formerly known as BankMobile, is a financial technology company that provides cutting-edge technologies. The company operates in three verticals: higher education and student banking; Banking-as-a-Service (“BaaS” or “white label banking”); and Direct to Consumer (D2C) niche. For more information, visit www.bmtx.com.