Customers Bancorp, Inc. (NYSE:CUBI):
Third Quarter 2024 Highlights
- Q3 2024 net income available to common shareholders was $42.9
million, or $1.31 per diluted share; ROAA was 0.88% and ROCE was
10.44%.
- Q3 2024 core earnings*1 were $43.8 million, or $1.34 per
diluted share; Core ROAA* was 0.89% and Core ROCE* was 10.66%.
- CET 1 ratio of 12.5%2 at September 30, 2024, compared to 12.8%
at June 30, 2024, above the 11.5% target.
- TCE / TA ratio* of 7.7% at September 30, 2024, compared to 7.7%
at June 30, 2024, above the 7.5% target.
- Total loans and leases held for investment grew by $520.8
million in Q3 2024 from Q2 2024 or 16% annualized.
- Q3 2024 deposit inflows from commercial customers of $1.1
billion funded the paydown of $0.7 billion of higher-cost
commercial and consumer deposits. Total deposits increased by
$391.3 million in Q3 2024 from Q2 2024.
- Total estimated insured deposits were 75%3 of total deposits at
September 30, 2024, with immediately available liquidity covering
estimated uninsured deposits3 by approximately 183%.
- Q3 2024 net interest margin, tax equivalent (“NIM”) was 3.06%,
compared to Q2 2024 NIM of 3.29% primarily due to lower discount
accretion and prepayment income in Q3 2024 as well as lower average
consumer installment loan balances and securities portfolio
repositioning.
- Non-performing assets were $47.3 million, or 0.22% of total
assets, at September 30, 2024 compared to 0.23% at June 30,
2024.
- Q3 2024 provision for credit losses on loans and leases was
$17.8 million compared to $17.9 million in Q2 2024 and the
allowance for credit losses on loans and leases equaled 281% of
non-performing loans at September 30, 2024, compared to 280% at
June 30, 2024.
- Q3 2024 book value per share and tangible book value per share*
both grew by approximately $2.26, or 4.5% over Q2 2024, or 17.7%
annualized, with a tangible book value per share* of $52.96 at
September 30, 2024. This was driven by current quarter earnings and
a decrease in AOCI losses of $25.3 million.
*
Non-GAAP measure. Customers’
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
1
Excludes pre-tax severance
expense of $0.7 million, unrealized losses on loans held for sale
of $0.6 million, gain on investment securities of $0.4 million and
derivative credit valuation adjustment of $0.2 million.
2
Regulatory capital ratios as of
September 30, 2024 are estimates.
3
Uninsured deposits (estimate) of
$6.1 billion to be reported on the Bank’s call report, less
deposits of $1.4 billion collateralized by standby letters of
credit from the FHLB and from our affiliates of $136.5 million.
CEO Commentary
“Customers Bancorp continued to deliver on its strategic
priorities to grow our franchise value through lower-cost and
granular deposit inflows and diversified loan growth while we
manage our operational risks,” said Customers Bancorp Chairman and
CEO Jay Sidhu. “We have strong momentum as we pursue phase two of
our deposit transformation strategy – remixing existing higher-cost
business unit deposits*1 and brokered deposits into core lower-cost
and granular deposits. We started the year with robust pipeline
within our existing businesses which has been materially enhanced
by the new commercial banking teams that joined Customers in April.
In the quarter, we utilized deposit growth from commercial
customers of $1.1 billion to paydown $0.7 billion of higher-cost
commercial and consumer client deposits. In the third quarter,
these inflows were, once again, broad-based with more than 25
different channels increasing balances and 70% of channels
contributing $25 million or more. Our new deposit focused
commercial banking teams have opened over 3,000 new deposit
accounts since joining and gathered $536 million in deposits at an
interest rate of approximately 2.9% with approximately 30% being
non-interest bearing. Our deposit pipelines continue to grow with
an extraordinary conversion ratio. We repurchased 373,974 shares of
common stock under the previously authorized share repurchase
program at an average price below Tangible Book Value per share*.
Even with the share repurchase and balance sheet growth, our TCE /
TA ratio* remained flat. Enhanced by the addition of our new
banking teams, we believe we are extremely well-positioned to
continue to strengthen our deposit franchise, improve our
profitability, and maintain our already strong capital ratios,”
stated Jay Sidhu.
“Our Q3 2024 GAAP earnings were $42.9 million, or $1.31 per
diluted share, and core earnings* were $43.8 million, or $1.34 per
diluted share. At September 30, 2024, our deposit base was well
diversified, with approximately 75%2 of total deposits insured. We
maintain a strong liquidity position, with $8.3 billion of
liquidity immediately available, which covers approximately 183% of
uninsured deposits2 and our loan to deposit ratio was 78%. We
continue to focus loan production where we have a holistic and
primary relationship. Total loans and leases held for investment
grew by $520.8 million which represent a 16% annualized growth
rate, driven by strong commercial loan growth of $539.5 million.
Our loan pipeline continued to build during the third quarter, and
we remain confident in achieving the 10% – 15% loan growth outlook
previously provided. We continue to hold strong levels of liquidity
and capital to support the needs of our customers. Asset quality
remains strong, and a clear differentiator for us, with our NPA
ratio at just 0.22% of total assets and reserve levels are robust
at 281% of total non-performing loans at the end of Q3 2024. Total
net charge-offs declined by $1.7 million and the combined level of
special mention and substandard commercial loans declined by $44.0
million during the quarter. Our exposure to the higher risk
commercial real estate office sector is minimal, representing
approximately 1% of the loan portfolio. We will remain disciplined,
but opportunistic, with our balance sheet capacity to manage risk
and maintain robust capital levels. Tangible Book Value per share*
grew to $52.96. We are excited and optimistic about the
opportunities ahead which have been enhanced by the addition of the
new banking teams,” Jay Sidhu continued.
*
Non-GAAP measure. Customers’
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
1
Total deposits excluding
wholesale CDs and BMTX student-related deposits.
2
Uninsured deposits (estimate) of
$6.1 billion to be reported on the Bank’s call report, less
deposits of $1.4 billion collateralized by standby letters of
credit from the FHLB and from our affiliates of $136.5 million.
Financial Highlights
(Dollars in thousands, except per
share data)
At or Three Months
Ended
Increase (Decrease)
September 30,
2024
June 30,
2024
Profitability Metrics:
Net income available for common
shareholders
$
42,937
$
54,300
$
(11,363
)
(20.9
)%
Diluted earnings per share
$
1.31
$
1.66
$
(0.35
)
(21.1
)%
Core earnings*
$
43,838
$
48,567
$
(4,729
)
(9.7
)%
Adjusted core earnings*
$
41,381
$
48,567
$
(7,186
)
(14.8
)%
Core earnings per share*
$
1.34
$
1.49
$
(0.15
)
(10.1
)%
Adjusted core earnings per share*
$
1.26
$
1.49
$
(0.23
)
(15.4
)%
Return on average assets (“ROAA”)
0.88
%
1.11
%
(0.23
)
Core ROAA*
0.89
%
1.00
%
(0.11
)
Adjusted core ROAA*
0.85
%
1.00
%
(0.15
)
Return on average common equity
(“ROCE”)
10.44
%
13.85
%
(3.41
)
Core ROCE*
10.66
%
12.39
%
(1.73
)
Adjusted core ROCE*
10.06
%
12.39
%
(2.33
)
Core pre-tax pre-provision net income*
$
64,824
$
89,220
$
(24,396
)
(27.3
)%
Adjusted core pre-tax pre-provision net
income*
$
61,827
$
89,220
$
(27,393
)
(30.7
)%
Net interest margin, tax equivalent
3.06
%
3.29
%
(0.23
)
Yield on loans (Loan yield)
6.99
%
7.17
%
(0.18
)
Cost of deposits
3.46
%
3.40
%
0.06
Efficiency ratio
62.40
%
51.87
%
10.53
Core efficiency ratio*
61.69
%
53.47
%
8.22
Adjusted core efficiency ratio*
63.48
%
53.47
%
10.01
Non-interest expense to average total
assets
1.95
%
1.98
%
(0.03
)
Core non-interest expense to average total
assets*
1.94
%
1.93
%
0.01
Adjusted core non-interest expense to
average total assets*
1.99
%
1.93
%
0.06
Balance Sheet Trends:
Total assets
$
21,456,082
$
20,942,975
$
513,107
2.5
%
Total cash and investment securities
$
6,564,528
$
6,523,036
$
41,492
0.6
%
Total loans and leases
$
14,053,116
$
13,632,639
$
420,477
3.1
%
Non-interest bearing demand deposits
$
4,670,809
$
4,474,862
$
195,947
4.4
%
Total deposits
$
18,069,389
$
17,678,093
$
391,296
2.2
%
Capital Metrics:
Common Equity
$
1,663,386
$
1,609,071
$
54,315
3.4
%
Tangible Common Equity*
$
1,659,757
$
1,605,442
$
54,315
3.4
%
Common Equity to Total Assets
7.8
%
7.7
%
0.1
Tangible Common Equity to Tangible
Assets*
7.7
%
7.7
%
—
Book Value per common share
$
53.07
$
50.81
$
2.26
4.4
%
Tangible Book Value per common share*
$
52.96
$
50.70
$
2.26
4.5
%
Common equity Tier 1 capital ratio (1)
12.5
%
12.8
%
(0.3
)
Total risk based capital ratio (1)
15.4
%
15.8
%
(0.4
)
(1) Regulatory capital ratios as
of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
Financial Highlights
(Dollars in thousands, except per
share data)
At or Three Months
Ended
Increase (Decrease)
Nine Months Ended
Increase (Decrease)
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Profitability Metrics:
Net income available for common
shareholders
$
42,937
$
82,953
$
(40,016
)
(48.2
)%
$
143,163
$
177,225
$
(34,062
)
(19.2
)%
Diluted earnings per share
$
1.31
$
2.58
$
(1.27
)
(49.2
)%
$
4.37
$
5.53
$
(1.16
)
(21.0
)%
Core earnings*
$
43,838
$
83,294
$
(39,456
)
(47.4
)%
$
138,937
$
186,600
$
(47,663
)
(25.5
)%
Adjusted core earnings*
$
41,381
$
83,294
$
(41,913
)
(50.3
)%
$
145,085
$
186,600
$
(41,515
)
(22.2
)%
Core earnings per share*
$
1.34
$
2.59
$
(1.25
)
(48.3
)%
$
4.24
$
5.82
$
(1.58
)
(27.1
)%
Adjusted core earnings per share*
$
1.26
$
2.59
$
(1.33
)
(51.4
)%
$
4.43
$
5.82
$
(1.39
)
(23.9
)%
Return on average assets (“ROAA”)
0.88
%
1.57
%
(0.69
)
0.97
%
1.17
%
(0.20
)
Core ROAA*
0.89
%
1.57
%
(0.68
)
0.95
%
1.22
%
(0.27
)
Adjusted core ROAA*
0.85
%
1.57
%
(0.72
)
0.99
%
1.22
%
(0.23
)
Return on average common equity
(“ROCE”)
10.44
%
23.97
%
(13.53
)
12.10
%
17.84
%
(5.74
)
Core ROCE*
10.66
%
24.06
%
(13.40
)
11.74
%
18.79
%
(7.05
)
Adjusted core ROCE*
10.06
%
24.06
%
(14.00
)
12.26
%
18.79
%
(6.53
)
Core pre-tax pre-provision net income*
$
64,824
$
128,564
$
(63,740
)
(49.6
)%
$
237,718
$
314,679
$
(76,961
)
(24.5
)%
Adjusted core pre-tax pre-provision net
income*
$
61,827
$
128,564
$
(66,737
)
(51.9
)%
$
246,035
$
314,679
$
(68,644
)
(21.8
)%
Net interest margin, tax equivalent
3.06
%
3.70
%
(0.64
)
3.16
%
3.28
%
(0.12
)
Yield on loans (Loan yield)
6.99
%
7.87
%
(0.88
)
7.07
%
7.12
%
(0.05
)
Cost of deposits
3.46
%
3.24
%
0.22
3.44
%
3.23
%
0.21
Efficiency ratio
62.40
%
41.01
%
21.39
55.97
%
45.62
%
10.35
Core efficiency ratio*
61.69
%
41.04
%
20.65
56.29
%
45.03
%
11.26
Adjusted core efficiency ratio*
63.48
%
41.04
%
22.44
54.75
%
45.03
%
9.72
Non-interest expense to average total
assets
1.95
%
1.62
%
0.33
1.93
%
1.61
%
0.32
Core non-interest expense to average total
assets*
1.94
%
1.62
%
0.32
1.91
%
1.60
%
0.31
Adjusted core non-interest expense to
average total assets*
1.99
%
1.62
%
0.37
1.86
%
1.60
%
0.26
(1) Regulatory capital ratios as
of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
Financial Highlights
(Dollars in thousands, except per share
data)
At or Three Months
Ended
Increase (Decrease)
September 30,
2024
September 30,
2023
Balance Sheet Trends:
Total assets
$
21,456,082
$
21,857,152
$
(401,070
)
(1.8
)%
Total cash and investment securities
$
6,564,528
$
7,371,551
$
(807,023
)
(10.9
)%
Total loans and leases
$
14,053,116
$
13,713,482
$
339,634
2.5
%
Non-interest bearing demand deposits
$
4,670,809
$
4,758,682
$
(87,873
)
(1.8
)%
Total deposits
$
18,069,389
$
18,195,364
$
(125,975
)
(0.7
)%
Capital Metrics:
Common Equity
$
1,663,386
$
1,423,813
$
239,573
16.8
%
Tangible Common Equity*
$
1,659,757
$
1,420,184
$
239,573
16.9
%
Common Equity to Total Assets
7.8
%
6.5
%
1.3
Tangible Common Equity to Tangible
Assets*
7.7
%
6.5
%
1.2
Book Value per common share
$
53.07
$
45.47
$
7.60
16.7
%
Tangible Book Value per common share*
$
52.96
$
45.36
$
7.60
16.8
%
Common equity Tier 1 capital ratio (1)
12.5
%
11.3
%
1.2
Total risk based capital ratio (1)
15.4
%
14.3
%
1.1
(1) Regulatory capital ratios as
of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and
leases as of the dates indicated:
(Dollars in thousands)
September 30,
2024
% of
Total
June 30,
2024
% of
Total
September 30,
2023
% of
Total
Loans and Leases Held for
Investment
Commercial:
Commercial & industrial:
Specialized lending
$
5,468,507
39.7
%
$
5,528,745
41.7
%
$
5,422,161
40.0
%
Other commercial & industrial (1)
1,087,222
7.9
1,092,146
8.2
1,252,427
9.2
Mortgage finance
1,367,617
9.9
1,122,812
8.5
1,042,549
7.7
Multifamily
2,115,978
15.4
2,067,332
15.6
2,130,213
15.7
Commercial real estate owner occupied
981,904
7.1
805,779
6.1
794,815
5.9
Commercial real estate non-owner
occupied
1,326,591
9.6
1,202,606
9.1
1,178,203
8.7
Construction
174,509
1.3
163,409
1.2
252,588
1.8
Total commercial loans and leases
12,522,328
90.9
11,982,829
90.4
12,072,956
89.0
Consumer:
Residential
500,786
3.6
481,503
3.6
483,133
3.6
Manufactured housing
34,481
0.3
35,901
0.3
40,129
0.3
Installment:
Personal
453,739
3.3
474,481
3.6
629,843
4.6
Other
266,362
1.9
282,201
2.1
337,053
2.5
Total installment loans
720,101
5.2
756,682
5.7
966,896
7.1
Total consumer loans
1,255,368
9.1
1,274,086
9.6
1,490,158
11.0
Total loans and leases held for
investment
$
13,777,696
100.0
%
$
13,256,915
100.0
%
$
13,563,114
100.0
%
Loans Held for Sale
Residential
$
2,523
0.9
%
$
2,684
0.7
%
$
1,005
0.7
%
Installment:
Personal
55,799
20.3
125,598
33.4
124,848
83.0
Other
217,098
78.8
247,442
65.9
24,515
16.3
Total installment loans
272,897
99.1
373,040
99.3
149,363
99.3
Total loans held for sale
$
275,420
100.0
%
$
375,724
100.0
%
$
150,368
100.0
%
Total loans and leases
portfolio
$
14,053,116
$
13,632,639
$
13,713,482
(1) Includes PPP loans of $30.5
million, $38.3 million and $137.1 million as of September 30, 2024,
June 30, 2024 and September 30, 2023, respectively.
Loans and Leases Held for Investment
Loans and leases held for investment were $13.8 billion at
September 30, 2024, up $520.8 million, or 3.9%, from June 30, 2024.
Mortgage finance loans increased by $244.8 million, or 21.8%
quarter-over-quarter. Owner-occupied commercial real estate loans
increased by $176.1 million, or 21.9% to $981.9 million. Non-owner
occupied commercial real estate loans increased by $124.0 million,
or 10.3% to $1.3 billion. Multifamily loans increased by $48.6
million, or 2.4% to $2.1 billion. Specialized lending decreased by
$60.2 million, or 1.1% quarter-over-quarter, to $5.5 billion. Other
commercial and industrial loans decreased by $4.9 million, or 0.5%
quarter-over-quarter, to $1.1 billion. Consumer installment loans
held for investment decreased by $36.6 million, or 4.8%
quarter-over-quarter, to $720.1 million.
Loans and leases held for investment of $13.8 billion at
September 30, 2024 were up $214.6 million, or 1.6%, year-over-year.
Mortgage finance loans increased by $325.1 million, or 31.2%
year-over-year due to higher mortgage activity from lower interest
rates. Owner-occupied commercial real estate loans increased by
$187.1 million. Non-owner occupied commercial real estate loans
increased by $148.4 million. Specialized lending increased by $46.3
million. Consumer installment loans decreased by $246.8 million, or
25.5% year-over-year due to the continued build out of the
held-for-sale strategy and de-risking of the held-for-investment
loan portfolio. Other commercial and industrial loans decreased by
$165.2 million, which included decreases in PPP loans primarily
from guarantee payments. Construction loans decreased by $78.1
million.
Loans Held for Sale
Loans held for sale decreased $100.3 million
quarter-over-quarter, and were $275.4 million at September 30, 2024
including the sale of consumer installment loans that were
classified as held for sale with a carrying value of $200.8 million
in Q3 2024. As part of these sales, Customers recognized a loss on
sale of $0.3 million, which is presented within net gain (loss) on
sale of loans and leases in the consolidated statement of income in
Q3 2024.
Allowance for Credit Losses on Loans and Leases
The following table presents the allowance for credit losses on
loans and leases as of the dates and for the periods presented:
At or Three Months
Ended
Increase
(Decrease)
At or Three Months
Ended
Increase
(Decrease)
(Dollars in thousands)
September 30,
2024
June 30,
2024
September 30,
2024
September 30,
2023
Allowance for credit losses on loans and
leases
$
133,158
$
132,436
$
722
$
133,158
$
139,213
$
(6,055
)
Provision (benefit) for credit losses on
loans and leases
$
17,766
$
17,851
$
(85
)
$
17,766
$
17,055
$
711
Net charge-offs from loans held for
investment
$
17,044
$
18,711
$
(1,667
)
$
17,044
$
17,498
$
(454
)
Annualized net charge-offs to average
loans and leases
0.50
%
0.56
%
0.50
%
0.50
%
Coverage of credit loss reserves for loans
and leases held for investment
1.06
%
1.08
%
1.06
%
1.10
%
Net charge-offs decreased modestly with $17.0 million in Q3
2024, compared to $18.7 million in Q2 2024 and $17.5 million in Q3
2023.
Provision (benefit) for Credit Losses
Three Months Ended
Increase
(Decrease)
Three Months Ended
Increase
(Decrease)
(Dollars in thousands)
September 30,
2024
June 30,
2024
September 30,
2024
September 30,
2023
Provision (benefit) for credit losses on
loans and leases
$
17,766
$
17,851
$
(85
)
$
17,766
$
17,055
$
711
Provision (benefit) for credit losses on
available for sale debt securities
(700
)
270
(970
)
(700
)
801
(1,501
)
Provision for credit losses
17,066
18,121
(1,055
)
17,066
17,856
(790
)
Provision (benefit) for credit losses on
unfunded commitments
642
1,594
(952
)
642
48
594
Total provision for credit losses
$
17,708
$
19,715
$
(2,007
)
$
17,708
$
17,904
$
(196
)
The provision for credit losses on loans and leases in Q3 2024
was $17.8 million, compared to $17.9 million in Q2 2024. The lower
provision in Q3 2024 was primarily due to slight improvements in
macroeconomic forecasts.
The provision for credit losses on available for sale investment
securities in Q3 2024 was a benefit to provision of $0.7 million,
compared to provision of $0.3 million in Q2 2024.
The provision for credit losses on loans and leases in Q3 2024
was $17.8 million, compared to $17.1 million in Q3 2023. The higher
provision in Q3 2024 compared to the year ago period was primarily
due to higher balances in commercial and industrial loan balances
held for investment, partially offset by lower balances in consumer
installment loans held for investment.
The provision for credit losses on available for sale investment
securities in Q3 2024 was a benefit to provision of $0.7 million
compared to provision of $0.8 million in Q3 2023.
Asset Quality
The following table presents asset quality metrics as of the
dates indicated:
(Dollars in thousands)
September 30,
2024
June 30,
2024
Increase
(Decrease)
September 30,
2024
September 30,
2023
Increase
(Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans
(“NPLs”)
$
47,326
$
47,380
$
(54
)
$
47,326
$
29,867
$
17,459
Non-performing assets
$
47,326
$
47,444
$
(118
)
$
47,326
$
29,970
$
17,356
NPLs to total loans and leases
0.34
%
0.35
%
0.34
%
0.22
%
Reserves to NPLs
281.36
%
279.52
%
281.36
%
466.11
%
NPAs to total assets
0.22
%
0.23
%
0.22
%
0.14
%
Loans and leases (1) risk
ratings:
Commercial loans and leases
Pass
$
10,844,500
$
10,500,922
$
343,578
$
10,844,500
$
10,503,731
$
340,769
Special Mention
178,026
170,014
8,012
178,026
189,329
(11,303
)
Substandard
218,921
270,898
(51,977
)
218,921
280,267
(61,346
)
Total commercial loans and leases
11,241,447
10,941,834
299,613
11,241,447
10,973,327
268,120
Consumer loans
Performing
1,240,581
1,256,816
(16,235
)
1,240,581
1,473,493
(232,912
)
Non-performing
14,787
17,270
(2,483
)
14,787
16,665
(1,878
)
Total consumer loans
1,255,368
1,274,086
(18,718
)
1,255,368
1,490,158
(234,790
)
Loans and leases receivable (1)
$
12,496,815
$
12,215,920
$
280,895
$
12,496,815
$
12,463,485
$
33,330
(1) Risk ratings are assigned to
loans and leases held for investment, and excludes loans held for
sale, loans receivable, mortgage finance, at fair value and
eligible PPP loans that are fully guaranteed by the Small Business
Administration.
Over the last decade, the Bank has developed a suite of
commercial loan products with one particularly important common
denominator: relatively low credit risk assumption. The Bank’s
commercial and industrial (“C&I”), mortgage finance, corporate
and specialized lending lines of business, and multifamily loans
for example, are characterized by conservative underwriting
standards and historically low loss rates. Because of this
emphasis, the Bank’s credit quality to date has been incredibly
healthy despite an adverse economic environment. Maintaining strong
asset quality also requires a highly active portfolio monitoring
process. In addition to frequent client outreach and monitoring at
the individual loan level, management employs a bottom-up data
driven approach to analyze the commercial portfolio.
Total consumer installment loans held for investment at
September 30, 2024 were less than 4% of total assets and
approximately 5% of total loans and leases held for investment, and
were supported by an allowance for credit losses of $50.1 million.
At September 30, 2024, the consumer installment portfolio had the
following characteristics: average original FICO score of 746,
average debt-to-income of 20% and average borrower income of $101
thousand.
Non-performing loans at September 30, 2024 decreased to 0.34% of
total loans and leases, compared to 0.35% at June 30, 2024 and
increased, compared to 0.22% at September 30, 2023.
Investment Securities
The investment securities portfolio, including debt securities
classified as available for sale (“AFS”) and held to maturity
(“HTM”) provides periodic cash flows through regular maturities and
amortization, can be used as collateral to secure additional
funding, and is an important component of the Bank’s liquidity
position.
The following table presents the composition of the investment
securities portfolio as of the dates indicated:
(Dollars in thousands)
September 30,
2024
June 30,
2024
September 30,
2023
Debt securities, available for sale
$
2,377,733
$
2,477,758
$
2,746,729
Equity securities
34,336
33,892
26,478
Investment securities, at fair value
2,412,069
2,511,650
2,773,207
Debt securities, held to maturity
1,064,437
962,799
1,178,370
Total investment securities portfolio
$
3,476,506
$
3,474,449
$
3,951,577
Customers’ securities portfolio is highly liquid, short in
duration, and high in yield. At September 30, 2024, the AFS debt
securities portfolio had a spot yield of 5.23%, an effective
duration of approximately 2.0 years, and approximately 30% are
variable rate. Additionally, 63% of the AFS securities portfolio
was AAA rated at September 30, 2024.
At September 30, 2024, the HTM debt securities portfolio
represented only 5.0% of total assets at September 30, 2024, had a
spot yield of 4.31% and an effective duration of approximately 3.5
years. Additionally, at September 30, 2024, approximately 43% of
the HTM securities were AAA rated and 51% were credit enhanced
asset backed securities with no current expectation of credit
losses.
As a part of the sales of consumer installment loans that were
classified as held for sale, Customers provided financing to the
purchaser for a portion of the sale price in the form of $160.0
million of asset-backed securities, collateralized by the sold
loans, which mostly accounted for the increase in HTM debt
securities at September 30, 2024 as compared to the prior
quarter.
Deposits
The following table presents the composition of our deposit
portfolio as of the dates indicated:
(Dollars in thousands)
September 30,
2024
% of
Total
June 30,
2024
% of
Total
September 30,
2023
% of
Total
Demand, non-interest bearing
$
4,670,809
25.9
%
$
4,474,862
25.3
%
$
4,758,682
26.2
%
Demand, interest bearing
5,606,500
31.0
5,894,056
33.4
5,824,410
32.0
Total demand deposits
10,277,309
56.9
10,368,918
58.7
10,583,092
58.2
Savings
1,399,968
7.7
1,573,661
8.9
1,118,353
6.1
Money market
3,961,028
21.9
3,539,815
20.0
2,499,593
13.7
Time deposits
2,431,084
13.5
2,195,699
12.4
3,994,326
22.0
Total deposits
$
18,069,389
100.0
%
$
17,678,093
100.0
%
$
18,195,364
100.0
%
Total deposits increased $391.3 million, or 2.2%, to $18.1
billion at September 30, 2024 as compared to the prior quarter.
Non-interest bearing demand deposits increased $195.9 million, or
4.4%, to $4.7 billion. Money market deposits increased $421.2
million, or 11.9%, to $4.0 billion and time deposits increased
$235.4 million, or 10.7%, to $2.4 billion. These increases were
offset by decreases in interest bearing demand deposits of $287.6
million, or 4.9%, to $5.6 billion and savings deposits of $173.7
million, or 11.0%, to $1.4 billion. The total average cost of
deposits increased by 6 basis points to 3.46% in Q3 2024 from 3.40%
in the prior quarter. Total estimated uninsured deposits were $4.5
billion1, or 25% of total deposits (inclusive of accrued interest)
at September 30, 2024. Customers is also highly focused on total
deposits with contractual term to manage its liquidity profile and
the funding of loans and securities.
“Our deposit costs increased in the quarter attributable to
strong deposit growth in the interest bearing category. We’re
extremely excited about the success we’re having in bringing new
clients to the bank and the long-term franchise value it will drive
outweighing any short-term impacts. With the remix efforts underway
and in a declining rate environment we expect to have flexibility
lowering interest bearing deposit costs going forward including as
these newer relationships season,” stated Jay Sidhu.
Total deposits decreased $126.0 million, or 0.7%, to $18.1
billion at September 30, 2024 as compared to a year ago. Time
deposits decreased $1.6 billion, or 39.1% to $2.4 billion, interest
bearing demand deposits decreased $217.9 million, or 3.7%, to $5.6
billion and non-interest bearing demand deposits decreased $87.9
million, or 1.8%, to $4.7 billion. These decreases were offset by
increases in money market deposits of $1.5 billion, or 58.5%, to
$4.0 billion and savings deposits of $281.6 million, or 25.2%, to
$1.4 billion. The total average cost of deposits increased by 22
basis points to 3.46% in Q3 2024 from 3.24% in the prior year
primarily due to higher market interest rates.
Borrowings
The following table presents the composition of our borrowings
as of the dates indicated:
(Dollars in thousands)
September 30,
2024
June 30,
2024
September 30,
2023
FHLB advances
$
1,117,229
$
1,018,349
$
1,529,839
Senior notes
99,033
123,970
123,775
Subordinated debt
182,439
182,370
182,161
Total borrowings
$
1,398,701
$
1,324,689
$
1,835,775
Total borrowings increased $74.0 million, or 5.6%, to $1.4
billion at September 30, 2024 as compared to the prior quarter.
This increase primarily resulted from an increase of $80.0 million
in FHLB advances, partially offset by repayment of $25.0 million in
senior notes upon maturity. As of September 30, 2024, Customers’
immediately available borrowing capacity with the FRB and FHLB was
approximately $7.7 billion, of which $1.1 billion of available
capacity was utilized in borrowings and $1.5 billion was utilized
to collateralize deposits.
Total borrowings decreased $437.1 million, or 23.8%, to $1.4
billion at September 30, 2024 as compared to a year ago. This
decrease primarily resulted from net repayments of $435.0 million
in FHLB advances and $25.0 million in senior notes upon
maturity.
1
Uninsured deposits (estimate) of
$6.1 billion to be reported on the Bank’s call report, less
deposits of $1.4 billion collateralized by standby letters of
credit from the FHLB and from our affiliates of $136.5 million.
Capital
The following table presents certain capital amounts and ratios
as of the dates indicated:
(Dollars in thousands except per share
data)
September 30,
2024
June 30,
2024
September 30,
2023
Customers Bancorp, Inc.
Common Equity
$
1,663,386
$
1,609,071
$
1,423,813
Tangible Common Equity*
$
1,659,757
$
1,605,442
$
1,420,184
Common Equity to Total Assets
7.8
%
7.7
%
6.5
%
Tangible Common Equity to Tangible
Assets*
7.7
%
7.7
%
6.5
%
Book Value per common share
$
53.07
$
50.81
$
45.47
Tangible Book Value per common share*
$
52.96
$
50.70
$
45.36
Common equity Tier 1 (“CET 1”) capital
ratio (1)
12.5
%
12.8
%
11.3
%
Total risk based capital ratio (1)
15.4
%
15.8
%
14.3
%
(1) Regulatory capital ratios as
of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
Customers Bancorp’s common equity increased $54.3 million to
$1.7 billion, and tangible common equity* increased $54.3 million
to $1.7 billion, at September 30, 2024 compared to the prior
quarter, respectively, primarily from earnings of $42.9 million and
decreased unrealized losses on investment securities of $25.3
million (net of taxes) deferred in accumulated other comprehensive
income (“AOCI”). These increases were offset in part by $18.2
million of common share repurchases in Q3 2024. Similarly, book
value per common share increased to $53.07 from $50.81, and
tangible book value per common share* increased to $52.96 from
$50.70, at September 30, 2024 and June 30, 2024, respectively.
Customers Bancorp’s common equity increased $239.6 million to
$1.7 billion, and tangible common equity* increased $239.6 million
to $1.7 billion, at September 30, 2024 compared to a year ago,
respectively, primarily from earnings of $201.4 million and
decreased unrealized losses on investment securities in AOCI of
$43.7 million (net of taxes), offset in part by $18.2 million of
common share repurchases. Similarly, book value per common share
increased to $53.07 from $45.47, and tangible book value per common
share* increased to $52.96 from $45.36, at September 30, 2024 and
September 30, 2023, respectively.
At the Customers Bancorp level, the CET 1 ratio (estimate),
total risk based capital ratio (estimate), common equity to total
assets ratio and tangible common equity to tangible assets ratio*
(“TCE / TA ratio”) were 12.5%, 15.4%, 7.8%, and 7.7%, respectively,
at September 30, 2024.
At the Customers Bank level, capital levels remained strong and
well above regulatory minimums. At September 30, 2024, Tier 1
capital (estimate) and total risk based capital (estimate) were
13.6% and 15.1%, respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $158.5 million in Q3 2024, a
decrease of $9.1 million from Q2 2024. This decrease was due to
lower interest income of $1.9 million primarily due to lower
interest income from loans in specialized lending, lower consumer
installment loans and higher interest expense of $7.2 million due
to higher costs of deposits and other borrowings.
“Net interest income and net interest margin declined in the
quarter impacted by higher discount accretion and prepayment income
that were benefits in Q2 2024 and did not repeat at the same levels
in Q3 2024, as well as initiatives that were proactive risk
management strategies including the $200.8 million consumer
installment loan sale in Q3 2024 resulting in lower average
balances and the well-timed securities portfolio repositioning
completed in Q2 2024. These factors accounted for over 80% of the
decline in reported net interest margin. Robust loan growth and
accretive deposit remix remain as positive drivers that we expect
to help increase net interest income and net interest margin in
2025,” stated Customers Bancorp President Sam Sidhu. “These
positive drivers are bolstered by the recent team additions. Our
new commercial deposit-focused banking teams have substantial
momentum and it is clear we have the bankers, products and balance
sheet strength to deliver for our new and existing clients. We
continue to believe the overwhelming majority of client prospects
will become Customers Bank clients in the near future,” stated Sam
Sidhu.
Net interest income totaled $158.5 million in Q3 2024, a
decrease of $41.2 million from Q3 2023. This decrease was due to
lower interest income in specialized lending primarily due to
approximately $27.0 million of interest income attributable to
outsized discount accretion recognized on the acquired loan
portfolio in Q3 2023.
Non-Interest Income
The following table presents details of non-interest income for
the periods indicated:
Three Months Ended
Increase
(Decrease)
Three Months Ended
Increase
(Decrease)
(Dollars in thousands)
September 30,
2024
June 30,
2024
September 30,
2024
September 30,
2023
Commercial lease income
$
10,093
$
10,282
$
(189
)
$
10,093
$
8,901
$
1,192
Loan fees
8,011
5,233
2,778
8,011
6,029
1,982
Bank-owned life insurance
2,049
2,007
42
2,049
1,973
76
Mortgage finance transactional fees
1,087
1,058
29
1,087
1,018
69
Net gain (loss) on sale of loans and
leases
(14,548
)
(238
)
(14,310
)
(14,548
)
(348
)
(14,200
)
Net gain (loss) on sale of investment
securities
—
(719
)
719
—
(429
)
429
Unrealized gain on equity method
investments
—
11,041
(11,041
)
—
—
—
Other
1,865
2,373
(508
)
1,865
631
1,234
Total non-interest income
$
8,557
$
31,037
$
(22,480
)
$
8,557
$
17,775
$
(9,218
)
Reported non-interest income totaled $8.6 million for Q3 2024, a
decrease of $22.5 million compared to Q2 2024. The decrease was
primarily due to $11.0 million of unrealized gain on equity method
investments purchased at a discount in Q2 2024 and $14.3 million of
loss on leases of commercial clean vehicles that were accounted for
as sales-type leases and included within net gain (loss) on sale of
loans and leases. These commercial clean vehicle leases generated
the same amount of investment tax credits that were included as a
benefit to income tax expense in Q3 2024. These decreases were
partially offset by an increase of $2.8 million in loan fees
primarily resulting from increased unused line of credit fees.
Non-interest income totaled $8.6 million for Q3 2024, a decrease
of $9.2 million compared to Q3 2023. As stated above, the decrease
was primarily due to $14.3 million of loss on leases of commercial
clean vehicles that were accounted for as sales-type leases and
included within net gain (loss) on sale of loans and leases. These
commercial clean vehicle leases generated the same amount of
investment tax credits that were included as a corresponding
benefit to income tax expense in Q3 2024. This decrease was
partially offset by increases in commercial lease income of $1.2
million and loan fees of $2.0 million primarily resulting from
increased unused line of credit fees.
Non-Interest Expense
The following table presents details of non-interest expense for
the periods indicated:
Three Months Ended
Increase
(Decrease)
Three Months Ended
Increase
(Decrease)
(Dollars in thousands)
September 30,
2024
June 30,
2024
September 30,
2024
September 30,
2023
Salaries and employee benefits
$
47,717
$
44,947
$
2,770
$
47,717
$
33,845
$
13,872
Technology, communication and bank
operations
13,588
16,227
(2,639
)
13,588
15,667
(2,079
)
Commercial lease depreciation
7,811
7,829
(18
)
7,811
7,338
473
Professional services
9,048
6,104
2,944
9,048
8,569
479
Loan servicing
3,778
3,516
262
3,778
3,858
(80
)
Occupancy
2,987
3,120
(133
)
2,987
2,471
516
FDIC assessments, non-income taxes and
regulatory fees
7,902
10,236
(2,334
)
7,902
8,551
(649
)
Advertising and promotion
908
1,254
(346
)
908
650
258
Legal settlement expense
—
—
—
—
4,096
(4,096
)
Other
10,279
10,219
60
10,279
4,421
5,858
Total non-interest expense
$
104,018
$
103,452
$
566
$
104,018
$
89,466
$
14,552
Non-interest expenses totaled $104.0 million in Q3 2024, an
increase of $0.6 million compared to Q2 2024. The increase was
primarily attributable to increases of $2.8 million in salaries and
employee benefits driven by higher headcount including the full
quarter impact of Q2 2024 hires, annual merit increases, incentives
partially offset by lower severance and $2.9 million in
professional fees, partially offset by lower non-income taxes,
software expenditures and processing fees.
“In the quarter we incurred professional services expense of
approximately $3.0 million as we made investments to enhance our
risk management infrastructure. We expect to spend an additional
$3.0-$5.0 million in each of the next two quarters as we seek to
build a best-in-class risk management function which we believe can
be a competitive advantage for the bank in the future,” stated Sam
Sidhu.
Non-interest expenses totaled $104.0 million in Q3 2024, an
increase of $14.6 million compared to Q3 2023. The increase was
primarily attributable to increases of $13.9 million in salaries
and employee benefits primarily due to higher headcount including
the addition of new banking teams in Q2 2024, annual merit
increases, incentives and severance, fees paid to a fintech company
related to consumer installment loans originated and held for sale
as a part of the Bank’s held for sale strategy, and provision for
operating losses. These increases were partially offset by $4.1
million of expenses from a settlement with a third party PPP
service provider in Q3 2023 and a decrease in deposit servicing
fees.
Taxes
Income tax expense decreased by $19.8 million to a benefit of
$0.7 million in Q3 2024 from a provision of $19.0 million in Q2
2024 primarily due to lower pre-tax income and higher estimated
income tax credits for 2024, including $14.3 million of investment
tax credits generated from commercial clean vehicles in Q3 2024.
These investment tax credits from commercial clean vehicle leases
were the same amount as the loss on leases of commercial clean
vehicles included within net gain (loss) on sale of loans and
leases.
Income tax expense decreased by $24.2 million to a benefit of
$0.7 million in Q3 2024 from a provision of $23.5 million in Q3
2023 primarily due to lower pre-tax income and an increase in
estimated income tax credits for 2024, including $14.3 million of
investment tax credits generated from commercial clean vehicles in
Q3 2024. These investment tax credits from commercial clean vehicle
leases were the same amount as the loss on leases of commercial
clean vehicles included within net gain (loss) on sale of loans and
leases. The effective tax rate for Q3 2024 was (1.6)%.
Outlook
“Looking forward, our strategy remains unchanged. We are focused
on strengthening our deposit franchise, improving our profitability
and maintaining our strong capital ratios. Our deposit pipelines
are expected to continue to improve the quality and mix of
deposits, reducing higher cost business unit deposits*1 with lower
cost deposits where we have a holistic and primary relationship.
The addition of the new banking teams is accelerating and enhancing
these efforts which were already well underway. We see attractive
opportunities to execute franchise-enhancing loan growth and our
pipeline continues to be strong. We remain confident in our ability
to deliver 10% - 15% loan growth for the full year. While the
interest earning asset repositioning and the hedging we executed
impacts our short term margin and will be a headwind in 2024, they
will positively impact profitability and earnings in 2025. We
expect net interest margin in Q4 2024 to be roughly flattish with
Q3 2024. The management of non-interest expenses remains a priority
for us. We expect the investments made in recruiting the new
commercial banking teams will produce significant benefits by
increasing our net interest income and net interest margin as well
as improving the overall quality of our deposit franchise. We
believe the investments we are making to enhance our risk
management infrastructure will pay dividends over the long-term. We
previously noted an $8.0-$10.0 million quarterly investment in the
new commercial banking teams in 2024 and now about $3.0-$5.0
million of quarterly professional service expense in enhancing our
risk management infrastructure for a few quarters. Looking forward
we expect the new teams to breakeven in Q1 2025 and payoff
throughout 2025 as well as a sunsetting of the additional
professional services costs. We would also note that we had an
$11.0 million unrealized gain on equity method investments
purchased at a discount in Q2 2024 which helped offset some of
these investment related expenses. While our efficiency ratio will
be elevated in the near term as we make these investments in our
future, we remain fundamentally focused on positive operating
leverage and working to enable the organization to operate at a
mid-40’s efficiency ratio over the medium-term. We are adjusting
our guidance on effective tax rate to 18% - 20% primarily as a
result of higher estimated investment tax credits in 2024. We
remain committed to maintaining CET 1 ratio and TCE / TA ratio*
targets of 11.5% and 7.5%, respectively in 2024. We are highly
focused on preserving superior credit quality, managing interest
rate risk, maintaining robust liquidity, operating with higher
capital ratios and generating positive operating leverage,”
concluded Sam Sidhu.
*
Non-GAAP measure. Customers'
reasons for the use of the non-GAAP measure and a detailed
reconciliation between the non-GAAP measure and the comparable GAAP
amount are included at the end of this document.
1
Total deposits excluding
wholesale CDs and BMTX student-related deposits.
Webcast
Date:
Friday, November 1, 2024
Time:
9:00 AM EDT
The live audio webcast, presentation slides, and earnings press
release will be made available at https://www.customersbank.com and
at the Customers Bancorp 3rd Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by
emailing our Head of Corporate Communications, Jordan Baucum at
jbaucum@customersbank.com.
The webcast will be archived for viewing on the Customers Bank
Investor Relations page and available beginning approximately two
hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s
top-performing banking companies with over $21 billion in assets
making it one of the 80 largest bank holding companies in the U.S.
Customers Bank’s commercial and consumer clients benefit from a
full suite of technology-enabled tailored product experiences
delivered by best-in-class customer service distinguished by a
Single Point of Contact approach. In addition to traditional lines
such as C&I lending, commercial real estate lending and
multifamily lending, Customers Bank also provides a number of
national corporate banking services to specialized lending clients.
Major accolades include:
- No. 1 on American Banker 2024 list of top-performing banks with
$10B to $50B in assets
- No. 29 out of the 100 largest publicly traded banks in 2024
Forbes Best Banks list
- No. 52 on Investor’s Business Daily 100 Best Stocks for
2023
A member of the Federal Reserve System with deposits insured by
the Federal Deposit Insurance Corporation, Customers Bank is an
equal opportunity lender. Learn more: www.customersbank.com.
“Safe Harbor” Statement
In addition to historical information, this press release may
contain “forward-looking statements” within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include
statements with respect to Customers Bancorp, Inc.’s strategies,
goals, beliefs, expectations, estimates, intentions, capital
raising efforts, financial condition and results of operations,
future performance and business. Statements preceded by, followed
by, or that include the words “may,” “could,” “should,” “pro
forma,” “looking forward,” “would,” “believe,” “expect,”
“anticipate,” “estimate,” “intend,” “plan,” “project,” or similar
expressions generally indicate a forward-looking statement. These
forward-looking statements involve risks and uncertainties that are
subject to change based on various important factors (some of
which, in whole or in part, are beyond Customers Bancorp, Inc.’s
control). Numerous competitive, economic, regulatory, legal and
technological events and factors, among others, could cause
Customers Bancorp, Inc.’s financial performance to differ
materially from the goals, plans, objectives, intentions and
expectations expressed in such forward-looking statements,
including: a continuation of the recent turmoil in the banking
industry, responsive measures taken by us and regulatory
authorities to mitigate and manage related risks, regulatory
actions taken that address related issues and the costs and
obligations associated therewith, such as the FDIC special
assessments; the potential for negative consequences resulting from
regulatory violations, investigations and examinations, including
potential supervisory actions, the assessment of fines and
penalties, the imposition of sanctions, the need to undertake
remedial actions and possible damage to our reputation; effects of
competition on deposit rates and growth, loan rates and growth and
net interest margin; failure to identify and adequately and
promptly address cybersecurity risks, including data breaches and
cyberattacks; public health crises and pandemics and their effects
on the economic and business environments in which we operate;
geopolitical conditions, including acts or threats of terrorism,
actions taken by the United States or other governments in response
to acts or threats of terrorism and military conflicts, including
the war between Russia and Ukraine and escalating conflict in the
Middle East, which could impact economic conditions in the United
States; the impact that changes in the economy have on the
performance of our loan and lease portfolio, the market value of
our investment securities, the demand for our products and services
and the availability of sources of funding; the effects of actions
by the federal government, including the Board of Governors of the
Federal Reserve System and other government agencies, that affect
market interest rates and the money supply; actions that we and our
customers take in response to these developments and the effects
such actions have on our operations, products, services and
customer relationships; higher inflation and its impacts; and the
effects of any changes in accounting standards or policies.
Customers Bancorp, Inc. cautions that the foregoing factors are not
exclusive, and neither such factors nor any such forward-looking
statement takes into account the impact of any future events. All
forward-looking statements and information set forth herein are
based on management’s current beliefs and assumptions as of the
date hereof and speak only as of the date they are made. For a more
complete discussion of the assumptions, risks and uncertainties
related to our business, you are encouraged to review Customers
Bancorp, Inc.’s filings with the Securities and Exchange
Commission, including its most recent annual report on Form 10-K
for the year ended December 31, 2023, subsequently filed quarterly
reports on Form 10-Q and current reports on Form 8-K, including any
amendments thereto, that update or provide information in addition
to the information included in the Form 10-K and Form 10-Q filings,
if any. Customers Bancorp, Inc. does not undertake to update any
forward-looking statement whether written or oral, that may be made
from time to time by Customers Bancorp, Inc. or by or on behalf of
Customers Bank, except as may be required under applicable law.
Q3 2024 Overview
The following table presents a summary of key earnings and
performance metrics for the quarter ended September 30, 2024 and
the preceding four quarters:
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share
data and stock price data)
Q3
Q2
Q1
Q4
Q3
Nine Months Ended
September 30,
2024
2024
2024
2023
2023
2024
2023
GAAP Profitability Metrics:
Net income available to common
shareholders
$
42,937
$
54,300
$
45,926
$
58,223
$
82,953
$
143,163
$
177,225
Per share amounts:
Earnings per share - basic
$
1.36
$
1.72
$
1.46
$
1.86
$
2.65
$
4.54
$
5.63
Earnings per share - diluted
$
1.31
$
1.66
$
1.40
$
1.79
$
2.58
$
4.37
$
5.53
Book value per common share (1)
$
53.07
$
50.81
$
49.29
$
47.73
$
45.47
$
53.07
$
45.47
CUBI stock price (1)
$
46.45
$
47.98
$
53.06
$
57.62
$
34.45
$
46.45
$
34.45
CUBI stock price as % of book value
(1)
88
%
94
%
108
%
121
%
76
%
88
%
76
%
Average shares outstanding - basic
31,567,797
31,649,715
31,473,424
31,385,043
31,290,581
31,563,660
31,452,700
Average shares outstanding - diluted
32,766,488
32,699,149
32,854,534
32,521,787
32,175,084
32,773,365
32,036,459
Shares outstanding (1)
31,342,107
31,667,655
31,521,931
31,440,906
31,311,254
31,342,107
31,311,254
Return on average assets (“ROAA”)
0.88
%
1.11
%
0.94
%
1.16
%
1.57
%
0.97
%
1.17
%
Return on average common equity
(“ROCE”)
10.44
%
13.85
%
12.08
%
15.93
%
23.97
%
12.10
%
17.84
%
Net interest margin, tax equivalent
3.06
%
3.29
%
3.10
%
3.31
%
3.70
%
3.16
%
3.28
%
Efficiency ratio
62.40
%
51.87
%
54.58
%
49.08
%
41.01
%
55.97
%
45.62
%
Non-GAAP Profitability Metrics
(2):
Core earnings
$
43,838
$
48,567
$
46,532
$
61,633
$
83,294
$
138,937
$
186,600
Core pre-tax pre-provision net income
$
64,824
$
89,220
$
83,674
$
101,884
$
128,564
$
237,718
$
314,679
Per share amounts:
Core earnings per share - diluted
$
1.34
$
1.49
$
1.42
$
1.90
$
2.59
$
4.24
$
5.82
Tangible book value per common share
(1)
$
52.96
$
50.70
$
49.18
$
47.61
$
45.36
$
52.96
$
45.36
CUBI stock price as % of tangible book
value (1)
88
%
95
%
108
%
121
%
76
%
88
%
76
%
Core ROAA
0.89
%
1.00
%
0.95
%
1.22
%
1.57
%
0.95
%
1.22
%
Core ROCE
10.66
%
12.39
%
12.24
%
16.87
%
24.06
%
11.74
%
18.79
%
Core pre-tax pre-provision ROAA
1.21
%
1.71
%
1.58
%
1.90
%
2.32
%
1.50
%
1.95
%
Core pre-tax pre-provision ROCE
14.84
%
21.79
%
21.01
%
26.82
%
36.04
%
19.12
%
30.59
%
Core efficiency ratio
61.69
%
53.47
%
54.24
%
46.70
%
41.04
%
56.29
%
45.03
%
Asset Quality:
Net charge-offs
$
17,044
$
18,711
$
17,968
$
17,322
$
17,498
$
53,723
$
51,713
Annualized net charge-offs to average
total loans and leases
0.50
%
0.56
%
0.55
%
0.51
%
0.50
%
0.54
%
0.47
%
Non-performing loans (“NPLs”) to total
loans and leases (1)
0.34
%
0.35
%
0.27
%
0.21
%
0.22
%
0.34
%
0.22
%
Reserves to NPLs (1)
281.36
%
279.52
%
373.86
%
499.12
%
466.11
%
281.36
%
466.11
%
Non-performing assets (“NPAs”) to total
assets
0.22
%
0.23
%
0.17
%
0.13
%
0.14
%
0.22
%
0.14
%
Customers Bank Capital Ratios
(3):
Common equity Tier 1 capital to
risk-weighted assets
13.6
%
14.17
%
14.16
%
13.77
%
12.97
%
13.6
%
12.97
%
Tier 1 capital to risk-weighted assets
13.6
%
14.17
%
14.16
%
13.77
%
12.97
%
13.6
%
12.97
%
Total capital to risk-weighted assets
15.1
%
15.64
%
15.82
%
15.28
%
14.45
%
15.1
%
14.45
%
Tier 1 capital to average assets (leverage
ratio)
9.1
%
9.16
%
8.82
%
8.71
%
8.25
%
9.1
%
8.25
%
(1) Metric is a spot balance for
the last day of each quarter presented.
(2) Customers’ reasons for the
use of these non-GAAP measures and a detailed reconciliation
between the non-GAAP measures and the comparable GAAP amounts are
included at the end of this document.
(3) Regulatory capital ratios are
estimated for Q3 2024 and actual for the remaining periods. In
accordance with regulatory capital rules, Customers elected to
apply the CECL capital transition provisions which delayed the
effects of CECL on regulatory capital for two years until January
1, 2022, followed by a three-year transition period. The cumulative
CECL capital transition impact as of December 31, 2021 which
amounted to $61.6 million will be phased in at 25% per year
beginning on January 1, 2022 through December 31, 2024. As of
September 30, 2024, our regulatory capital ratios reflected 25%, or
$15.4 million, benefit associated with the CECL transition
provisions.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS -
UNAUDITED
(Dollars in thousands, except per share
data)
Nine Months Ended
Q3
Q2
Q1
Q4
Q3
September 30,
2024
2024
2024
2023
2023
2024
2023
Interest income:
Loans and leases
$
228,659
$
224,265
$
217,999
$
239,453
$
271,107
$
670,923
$
757,064
Investment securities
46,265
47,586
46,802
51,074
54,243
140,653
149,585
Interest earning deposits
44,372
45,506
52,817
44,104
43,800
142,695
81,819
Loans held for sale
10,907
13,671
12,048
8,707
4,664
36,626
27,514
Other
1,910
3,010
2,111
2,577
2,526
7,031
5,463
Total interest income
332,113
334,038
331,777
345,915
376,340
997,928
1,021,445
Interest expense:
Deposits
155,829
148,784
153,725
150,307
145,825
458,338
426,130
FHLB advances
12,590
13,437
13,485
18,868
26,485
39,512
61,140
FRB advances
—
—
—
—
—
—
6,286
Subordinated debt
3,537
2,734
2,689
2,688
2,689
8,960
8,067
Other borrowings
1,612
1,430
1,493
1,546
1,568
4,535
4,879
Total interest expense
173,568
166,385
171,392
173,409
176,567
511,345
506,502
Net interest income
158,545
167,653
160,385
172,506
199,773
486,583
514,943
Provision for credit losses
17,066
18,121
17,070
13,523
17,856
52,257
61,088
Net interest income after provision for
credit losses
141,479
149,532
143,315
158,983
181,917
434,326
453,855
Non-interest income:
Commercial lease income
10,093
10,282
9,683
9,035
8,901
30,058
27,144
Loan fees
8,011
5,233
5,280
5,926
6,029
18,524
14,290
Bank-owned life insurance
2,049
2,007
3,261
2,160
1,973
7,317
9,617
Mortgage finance transactional fees
1,087
1,058
946
927
1,018
3,091
3,468
Net gain (loss) on sale of loans and
leases
(14,548
)
(238
)
10
(91
)
(348
)
(14,776
)
(1,109
)
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
(5,037
)
Net gain (loss) on sale of investment
securities
—
(719
)
(30
)
(145
)
(429
)
(749
)
(429
)
Unrealized gain on equity method
investments
—
11,041
—
—
—
11,041
—
Other
1,865
2,373
2,081
860
631
6,319
3,949
Total non-interest income
8,557
31,037
21,231
18,672
17,775
60,825
51,893
Non-interest expense:
Salaries and employee benefits
47,717
44,947
36,025
33,965
33,845
128,689
99,310
Technology, communication and bank
operations
13,588
16,227
21,904
16,887
15,667
51,719
48,663
Commercial lease depreciation
7,811
7,829
7,970
7,357
7,338
23,610
22,541
Professional services
9,048
6,104
6,353
9,820
8,569
21,505
25,357
Loan servicing
3,778
3,516
4,031
3,779
3,858
11,325
13,296
Occupancy
2,987
3,120
2,347
2,320
2,471
8,454
7,750
FDIC assessments, non-income taxes and
regulatory fees
7,902
10,236
13,469
13,977
8,551
31,607
21,059
Advertising and promotion
908
1,254
682
850
650
2,844
2,245
Legal settlement expense
—
—
—
—
4,096
—
4,096
Other
10,279
10,219
6,388
4,812
4,421
26,886
14,579
Total non-interest expense
104,018
103,452
99,169
93,767
89,466
306,639
258,896
Income before income tax expense
(benefit)
46,018
77,117
65,377
83,888
110,226
188,512
246,852
Income tax expense (benefit)
(725
)
19,032
15,651
21,796
23,470
33,958
58,801
Net income
46,743
58,085
49,726
62,092
86,756
154,554
188,051
Preferred stock dividends
3,806
3,785
3,800
3,869
3,803
11,391
10,826
Net income available to common
shareholders
$
42,937
$
54,300
$
45,926
$
58,223
$
82,953
$
143,163
$
177,225
Basic earnings per common share
$
1.36
$
1.72
$
1.46
$
1.86
$
2.65
$
4.54
$
5.63
Diluted earnings per common share
1.31
1.66
1.40
1.79
2.58
4.37
5.53
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEET -
UNAUDITED
(Dollars in thousands)
September 30,
June 30,
March 31,
December 31,
September 30,
2024
2024
2024
2023
2023
ASSETS
Cash and due from banks
$
39,429
$
45,045
$
51,974
$
45,210
$
68,288
Interest earning deposits
3,048,593
3,003,542
3,649,146
3,801,136
3,351,686
Cash and cash equivalents
3,088,022
3,048,587
3,701,120
3,846,346
3,419,974
Investment securities, at fair value
2,412,069
2,511,650
2,604,868
2,405,640
2,773,207
Investment securities held to maturity
1,064,437
962,799
1,032,037
1,103,170
1,178,370
Loans held for sale
275,420
375,724
357,640
340,317
150,368
Loans and leases receivable
12,527,283
12,254,204
11,936,621
11,963,855
12,600,548
Loans receivable, mortgage finance, at
fair value
1,250,413
1,002,711
962,610
897,912
962,566
Allowance for credit losses on loans and
leases
(133,158
)
(132,436
)
(133,296
)
(135,311
)
(139,213
)
Total loans and leases
receivable, net of allowance for credit losses on loans and
leases
13,644,538
13,124,479
12,765,935
12,726,456
13,423,901
FHLB, Federal Reserve Bank, and other
restricted stock
95,035
92,276
100,067
109,548
126,098
Accrued interest receivable
115,588
112,788
120,123
114,766
123,984
Bank premises and equipment, net
6,730
7,019
7,253
7,371
7,789
Bank-owned life insurance
295,531
293,108
293,400
292,193
291,670
Goodwill and other intangibles
3,629
3,629
3,629
3,629
3,629
Other assets
455,083
410,916
361,295
366,829
358,162
Total assets
$
21,456,082
$
20,942,975
$
21,347,367
$
21,316,265
$
21,857,152
LIABILITIES AND SHAREHOLDERS’
EQUITY
Demand, non-interest bearing deposits
$
4,670,809
$
4,474,862
$
4,688,880
$
4,422,494
$
4,758,682
Interest bearing deposits
13,398,580
13,203,231
13,272,503
13,497,742
13,436,682
Total deposits
18,069,389
17,678,093
17,961,383
17,920,236
18,195,364
FHLB advances
1,117,229
1,018,349
1,195,088
1,203,207
1,529,839
Other borrowings
99,033
123,970
123,905
123,840
123,775
Subordinated debt
182,439
182,370
182,300
182,230
182,161
Accrued interest payable and other
liabilities
186,812
193,328
193,074
248,358
264,406
Total liabilities
19,654,902
19,196,110
19,655,750
19,677,871
20,295,545
Preferred stock
137,794
137,794
137,794
137,794
137,794
Common stock
35,734
35,686
35,540
35,459
35,330
Additional paid in capital
571,609
567,345
567,490
564,538
559,346
Retained earnings
1,302,745
1,259,808
1,205,508
1,159,582
1,101,359
Accumulated other comprehensive income
(loss), net
(106,082
)
(131,358
)
(132,305
)
(136,569
)
(149,812
)
Treasury stock, at cost
(140,620
)
(122,410
)
(122,410
)
(122,410
)
(122,410
)
Total shareholders’ equity
1,801,180
1,746,865
1,691,617
1,638,394
1,561,607
Total liabilities and shareholders’
equity
$
21,456,082
$
20,942,975
$
21,347,367
$
21,316,265
$
21,857,152
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST
MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
September 30, 2024
June 30, 2024
September 30, 2023
Average
Balance
Interest
Income or
Expense
Average
Yield or
Cost (%)
Average
Balance
Interest
Income or
Expense
Average
Yield or
Cost (%)
Average
Balance
Interest
Income or
Expense
Average
Yield or
Cost (%)
Assets
Interest earning deposits
$
3,224,940
$
44,372
5.47%
$
3,325,771
$
45,506
5.50%
$
3,211,753
$
43,800
5.41%
Investment securities (1)
3,706,974
46,265
4.97%
3,732,565
47,586
5.13%
4,240,116
54,243
5.12%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases
(2)
5,805,389
124,667
8.54%
5,446,882
120,977
8.93%
5,717,252
157,671
10.94%
Other commercial & industrial loans
(2)(3)
1,533,057
24,654
6.40%
1,540,191
25,119
6.56%
1,779,778
28,616
6.38%
Mortgage finance loans
1,267,656
17,723
5.56%
1,151,407
15,087
5.27%
1,159,698
16,916
5.79%
Multifamily loans
2,071,340
21,147
4.06%
2,108,835
21,461
4.09%
2,141,384
21,292
3.94%
Non-owner occupied commercial real estate
loans
1,411,533
21,065
5.94%
1,396,771
20,470
5.89%
1,425,831
21,208
5.90%
Residential mortgages
525,285
6,082
4.61%
520,791
5,955
4.60%
528,022
5,965
4.48%
Installment loans
1,029,812
24,228
9.36%
1,186,486
28,867
9.79%
1,147,069
24,103
8.34%
Total loans and leases (4)
13,644,072
239,566
6.99%
13,351,363
237,936
7.17%
13,899,034
275,771
7.87%
Other interest-earning assets
118,914
1,910
6.39%
110,585
3,010
10.95%
134,416
2,526
7.45%
Total interest-earning assets
20,694,900
332,113
6.39%
20,520,284
334,038
6.54%
21,485,319
376,340
6.96%
Non-interest-earning assets
535,504
464,919
492,691
Total assets
$
21,230,404
$
20,985,203
$
21,978,010
Liabilities
Interest checking accounts
$
5,787,026
$
65,554
4.51%
$
5,719,698
$
64,047
4.50%
$
5,758,215
$
58,637
4.04%
Money market deposit accounts
3,676,994
42,128
4.56%
3,346,718
38,167
4.59%
2,181,184
22,983
4.18%
Other savings accounts
1,563,970
18,426
4.69%
1,810,375
21,183
4.71%
1,077,298
11,582
4.27%
Certificates of deposit
2,339,937
29,721
5.05%
2,034,605
25,387
5.02%
4,466,522
52,623
4.67%
Total interest-bearing deposits (5)
13,367,927
155,829
4.64%
12,911,396
148,784
4.63%
13,483,219
145,825
4.29%
Borrowings
1,334,905
17,739
5.29%
1,454,010
17,601
4.87%
2,328,955
30,742
5.24%
Total interest-bearing
liabilities
14,702,832
173,568
4.70%
14,365,406
166,385
4.66%
15,812,174
176,567
4.43%
Non-interest-bearing deposits (5)
4,557,815
4,701,695
4,347,977
Total deposits and borrowings
19,260,647
3.59%
19,067,101
3.51%
20,160,151
3.48%
Other non-interest-bearing liabilities
195,722
203,714
306,822
Total liabilities
19,456,369
19,270,815
20,466,973
Shareholders’ equity
1,774,035
1,714,388
1,511,037
Total liabilities and shareholders’
equity
$
21,230,404
$
20,985,203
$
21,978,010
Net interest income
158,545
167,653
199,773
Tax-equivalent adjustment
392
393
405
Net interest earnings
$
158,937
$
168,046
$
200,178
Interest spread
2.80%
3.03%
3.48%
Net interest margin
3.05%
3.28%
3.70%
Net interest margin tax equivalent
(6)
3.06%
3.29%
3.70%
(1) For presentation in this
table, average balances and the corresponding average yields for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.
(2) Includes owner occupied
commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans,
the effect of which is to reduce the yield earned on loans and
leases, and deferred loan fees.
(5) Total costs of deposits
(including interest bearing and non-interest bearing) were 3.46%,
3.40% and 3.24% for the three months ended September 30, 2024, June
30, 2024 and September 30, 2023, respectively.
(6) Tax-equivalent basis, using
an estimated marginal tax rate of 26% for the three months ended
September 30, 2024, June 30, 2024 and September 30, 2023, presented
to approximate interest income as a taxable asset.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST
MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
Nine Months Ended
September 30, 2024
September 30, 2023
Average
Balance
Interest
Income or
Expense
Average
Yield or
Cost (%)
Average
Balance
Interest
Income or
Expense
Average
Yield or
Cost (%)
Assets
Interest earning deposits
$
3,471,011
$
142,695
5.49%
$
2,100,435
$
81,819
5.21%
Investment securities (1)
3,736,770
140,653
5.03%
4,074,464
149,585
4.90%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases
(2)
5,507,963
361,234
8.76%
5,748,053
383,138
8.91%
Other commercial & industrial loans
(2)(3)
1,575,815
76,487
6.48%
2,081,688
105,398
6.77%
Mortgage finance loans
1,151,173
45,640
5.30%
1,240,403
53,934
5.81%
Multifamily loans
2,100,501
63,863
4.06%
2,176,294
62,857
3.86%
Non-owner occupied commercial real estate
loans
1,385,685
61,714
5.95%
1,434,459
61,284
5.71%
Residential mortgages
522,876
17,745
4.53%
535,502
17,298
4.32%
Installment loans
1,131,633
80,866
9.55%
1,517,632
100,669
8.87%
Total loans and leases (4)
13,375,646
707,549
7.07%
14,734,031
784,578
7.12%
Other interest-earning assets
112,365
7,031
8.36%
119,187
5,463
6.13%
Total interest-earning assets
20,695,792
997,928
6.44%
21,028,117
1,021,445
6.49%
Non-interest-earning assets
487,991
537,160
Total assets
$
21,183,783
$
21,565,277
Liabilities
Interest checking accounts
$
5,682,240
$
191,132
4.49%
$
6,181,097
$
178,984
3.87%
Money market deposit accounts
3,419,880
117,106
4.57%
2,208,853
63,444
3.84%
Other savings accounts
1,708,625
61,008
4.77%
966,539
27,707
3.83%
Certificates of deposit
2,374,982
89,092
5.01%
4,663,548
155,995
4.47%
Total interest-bearing deposits (5)
13,185,727
458,338
4.64%
14,020,037
426,130
4.06%
Federal funds purchased
—
—
—%
5,055
188
4.97%
Borrowings
1,431,520
53,007
4.95%
2,160,332
80,184
4.96%
Total interest-bearing
liabilities
14,617,247
511,345
4.67%
16,185,424
506,502
4.18%
Non-interest-bearing deposits (5)
4,626,580
3,642,832
Total deposits and borrowings
19,243,827
3.55%
19,828,256
3.42%
Other non-interest-bearing liabilities
221,278
271,387
Total liabilities
19,465,105
20,099,643
Shareholders’ equity
1,718,678
1,465,634
Total liabilities and shareholders’
equity
$
21,183,783
$
21,565,277
Net interest income
486,583
514,943
Tax-equivalent adjustment
1,179
1,170
Net interest earnings
$
487,762
$
516,113
Interest spread
2.89%
3.08%
Net interest margin
3.15%
3.27%
Net interest margin tax equivalent
(6)
3.16%
3.28%
(1) For presentation in this table,
average balances and the corresponding average yields for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial
real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect
of which is to reduce the yield earned on loans and leases, and
deferred loan fees.
(5) Total costs of deposits (including
interest bearing and non-interest bearing) were 3.44% and 3.23% for
the nine months ended September 30, 2024 and 2023,
respectively.
(6) Tax-equivalent basis, using an
estimated marginal tax rate of 26% for the nine months ended
September 30, 2024 and 2023, presented to approximate interest
income as a taxable asset.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION -
UNAUDITED
(Dollars in thousands)
September 30,
June 30,
March 31,
December 31,
September 30,
2024
2024
2024
2023
2023
Loans and leases held for
investment
Commercial:
Commercial & industrial:
Specialized lending
$
5,468,507
$
5,528,745
$
5,104,405
$
5,006,693
$
5,422,161
Other commercial & industrial (1)
1,087,222
1,092,146
1,113,517
1,162,317
1,252,427
Mortgage finance
1,367,617
1,122,812
1,071,146
1,014,742
1,042,549
Multifamily
2,115,978
2,067,332
2,123,675
2,138,622
2,130,213
Commercial real estate owner occupied
981,904
805,779
806,278
797,319
794,815
Commercial real estate non-owner
occupied
1,326,591
1,202,606
1,182,084
1,177,650
1,178,203
Construction
174,509
163,409
185,601
166,393
252,588
Total commercial loans and leases
12,522,328
11,982,829
11,586,706
11,463,736
12,072,956
Consumer:
Residential
500,786
481,503
482,537
484,435
483,133
Manufactured housing
34,481
35,901
37,382
38,670
40,129
Installment:
Personal
453,739
474,481
492,892
555,533
629,843
Other
266,362
282,201
299,714
319,393
337,053
Total installment loans
720,101
756,682
792,606
874,926
966,896
Total consumer loans
1,255,368
1,274,086
1,312,525
1,398,031
1,490,158
Total loans and leases held for
investment
$
13,777,696
$
13,256,915
$
12,899,231
$
12,861,767
$
13,563,114
Loans held for sale
Residential
$
2,523
$
2,684
$
870
$
1,215
$
1,005
Installment:
Personal
55,799
125,598
137,755
151,040
124,848
Other
217,098
247,442
219,015
188,062
24,515
Total installment loans
272,897
373,040
356,770
339,102
149,363
Total loans held for sale
$
275,420
$
375,724
$
357,640
$
340,317
$
150,368
Total loans and leases
portfolio
$
14,053,116
$
13,632,639
$
13,256,871
$
13,202,084
$
13,713,482
(1) Includes PPP loans.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION -
UNAUDITED
(Dollars in thousands)
September 30,
June 30,
March 31,
December 31,
September 30,
2024
2024
2024
2023
2023
Demand, non-interest bearing
$
4,670,809
$
4,474,862
$
4,688,880
$
4,422,494
$
4,758,682
Demand, interest bearing
5,606,500
5,894,056
5,661,775
5,580,527
5,824,410
Total demand deposits
10,277,309
10,368,918
10,350,655
10,003,021
10,583,092
Savings
1,399,968
1,573,661
2,080,374
1,402,941
1,118,353
Money market
3,961,028
3,539,815
3,347,843
3,226,395
2,499,593
Time deposits
2,431,084
2,195,699
2,182,511
3,287,879
3,994,326
Total deposits
$
18,069,389
$
17,678,093
$
17,961,383
$
17,920,236
$
18,195,364
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of September 30,
2024
As of June 30, 2024
As of September 30,
2023
Loan
type
Total loans
Allowance
for credit
losses
Total
reserves to
total loans
Total loans
Allowance
for credit
losses
Total
reserves to
total loans
Total loans
Allowance
for credit
losses
Total
reserves to
total loans
Commercial:
Commercial & industrial, including
specialized lending (1)
$
6,672,933
$
25,191
0.38
%
$
6,740,992
$
23,721
0.35
%
$
6,754,571
$
24,986
0.37
%
Multifamily
2,115,978
18,090
0.85
%
2,067,332
20,652
1.00
%
2,130,213
15,870
0.74
%
Commercial real estate owner occupied
981,904
10,913
1.11
%
805,779
8,431
1.05
%
794,815
10,363
1.30
%
Commercial real estate non-owner
occupied
1,326,591
17,303
1.30
%
1,202,606
17,966
1.49
%
1,178,203
15,819
1.34
%
Construction
174,509
1,606
0.92
%
163,409
1,856
1.14
%
252,588
3,130
1.24
%
Total commercial loans and leases
receivable
11,271,915
73,103
0.65
%
10,980,118
72,626
0.66
%
11,110,390
70,168
0.63
%
Consumer:
Residential
500,786
5,838
1.17
%
481,503
5,884
1.22
%
483,133
6,802
1.41
%
Manufactured housing
34,481
4,080
11.83
%
35,901
4,094
11.40
%
40,129
4,080
10.17
%
Installment
720,101
50,137
6.96
%
756,682
49,832
6.59
%
966,896
58,163
6.02
%
Total consumer loans receivable
1,255,368
60,055
4.78
%
1,274,086
59,810
4.69
%
1,490,158
69,045
4.63
%
Loans and leases receivable held for
investment
12,527,283
133,158
1.06
%
12,254,204
132,436
1.08
%
12,600,548
139,213
1.10
%
Loans receivable, mortgage finance, at
fair value
1,250,413
—
—
%
1,002,711
—
—
%
962,566
—
—
%
Loans held for sale
275,420
—
—
%
375,724
—
—
%
150,368
—
—
%
Total loans and leases
portfolio
$
14,053,116
$
133,158
0.95
%
$
13,632,639
$
132,436
0.97
%
$
13,713,482
$
139,213
1.02
%
(1) Includes PPP loans.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of September 30,
2024
As of June 30, 2024
As of September 30,
2023
Loan
type
Non accrual
/NPLs
Total NPLs
to total
loans
Total
reserves to
total NPLs
Non accrual
/NPLs
Total NPLs
to total
loans
Total
reserves to
total NPLs
Non accrual
/NPLs
Total NPLs
to total
loans
Total
reserves to
total NPLs
Commercial:
Commercial & industrial, including
specialized lending (1)
$
4,615
0.07
%
545.85
%
$
5,488
0.08
%
432.23
%
$
5,767
0.09
%
433.26
%
Multifamily
11,834
0.56
%
152.86
%
14,002
0.68
%
147.49
%
—
—
%
—
%
Commercial real estate owner occupied
8,613
0.88
%
126.70
%
9,612
1.19
%
87.71
%
7,442
0.94
%
139.25
%
Commercial real estate non-owner
occupied
763
0.06
%
2267.76
%
62
0.01
%
28977.42
%
—
—
%
—
%
Construction
—
—
%
—
%
—
—
%
—
%
—
—
%
—
%
Total commercial loans and leases
receivable
25,825
0.23
%
283.07
%
29,164
0.27
%
249.03
%
13,209
0.12
%
531.21
%
Consumer:
Residential
7,997
1.60
%
73.00
%
8,179
1.70
%
71.94
%
6,559
1.36
%
103.70
%
Manufactured housing
1,869
5.42
%
218.30
%
2,047
5.70
%
200.00
%
2,582
6.43
%
158.02
%
Installment
6,328
0.88
%
792.30
%
5,614
0.74
%
887.64
%
7,299
0.75
%
796.86
%
Total consumer loans receivable
16,194
1.29
%
370.85
%
15,840
1.24
%
377.59
%
16,440
1.10
%
419.98
%
Loans and leases receivable
42,019
0.34
%
316.90
%
45,004
0.37
%
294.28
%
29,649
0.24
%
469.54
%
Loans receivable, mortgage finance, at
fair value
—
—
%
—
%
—
—
%
—
%
—
—
%
—
%
Loans held for sale
5,307
1.93
%
—
%
2,376
0.63
%
—
%
218
0.14
%
—
%
Total loans and leases
portfolio
$
47,326
0.34
%
281.36
%
$
47,380
0.35
%
279.52
%
$
29,867
0.22
%
466.11
%
(1) Includes PPP loans.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) -
UNAUDITED
(Dollars in thousands)
Q3
Q2
Q1
Q4
Q3
Nine Months Ended
September 30,
2024
2024
2024
2023
2023
2024
2023
Loan
type
Commercial & industrial, including
specialized lending
$
5,056
$
5,665
$
3,672
$
5,282
$
2,974
$
14,393
$
3,161
Multifamily
2,167
1,433
473
127
1,999
4,073
3,447
Commercial real estate owner occupied
4
—
22
—
39
26
5
Commercial real estate non-owner
occupied
—
—
—
(288
)
—
—
4,500
Construction
(3
)
(7
)
—
—
—
(10
)
(116
)
Residential
(21
)
(20
)
18
(1
)
13
(23
)
35
Installment
9,841
11,640
13,783
12,202
12,473
35,264
40,681
Total net charge-offs (recoveries) from
loans held for investment
$
17,044
$
18,711
$
17,968
$
17,322
$
17,498
$
53,723
$
51,713
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES - UNAUDITED
We believe that the non-GAAP
measurements disclosed within this document are useful for
investors, regulators, management and others to evaluate our core
results of operations and financial condition relative to other
financial institutions. These non-GAAP financial measures are
frequently used by securities analysts, investors, and other
interested parties in the evaluation of companies in our industry.
These non-GAAP financial measures exclude from corresponding GAAP
measures the impact of certain elements that we do not believe are
representative of our ongoing financial results, which we believe
enhance an overall understanding of our performance and increases
comparability of our period to period results. Investors should
consider our performance and financial condition as reported under
GAAP and all other relevant information when assessing our
performance or financial condition. The non-GAAP measures presented
are not necessarily comparable to non-GAAP measures that may be
presented by other financial institutions. Although non-GAAP
financial measures are frequently used in the evaluation of a
company, they have limitations as analytical tools and should not
be considered in isolation or as a substitute for analysis of our
results of operations or financial condition as reported under
GAAP.
The following tables present
reconciliations of GAAP to non-GAAP measures disclosed within this
document.
Core Earnings and Adjusted
Core Earnings - Customers Bancorp
Nine Months Ended
September 30,
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
(Dollars in thousands, except per
share data)
USD
Per
share
USD
Per
share
USD
Per
share
USD
Per
share
USD
Per
share
USD
Per
share
USD
Per
share
GAAP net income to common shareholders
$
42,937
$
1.31
$
54,300
$
1.66
$
45,926
$
1.40
$
58,223
$
1.79
$
82,953
$
2.58
$
143,163
$
4.37
$
177,225
$
5.53
Reconciling items (after tax):
Severance expense
540
0.02
1,928
0.06
—
—
473
0.01
—
—
2,468
0.08
778
0.02
Impairments on fixed assets and leases
—
—
—
—
—
—
—
—
—
—
—
—
98
0.00
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
—
—
—
—
—
—
3,914
0.12
(Gains) losses on investment
securities
(322
)
(0.01
)
561
0.02
57
0.00
(85
)
0.00
492
0.02
296
0.01
492
0.02
Derivative credit valuation adjustment
185
0.01
(44
)
0.00
169
0.01
267
0.01
(151
)
0.00
310
0.01
(48
)
0.00
Tax on surrender of bank-owned life
insurance policies
—
—
—
—
—
—
—
—
—
—
—
—
4,141
0.13
FDIC special assessment
—
—
138
0.00
380
0.01
2,755
0.08
—
—
518
0.02
—
—
Unrealized (gain) on equity method
investments
—
—
(8,316
)
(0.25
)
—
—
—
—
—
—
(8,316
)
(0.25
)
—
—
Unrealized losses on loans held for
sale
498
0.02
—
—
—
—
—
—
—
—
498
0.02
—
—
Core earnings
$
43,838
$
1.34
$
48,567
$
1.49
$
46,532
$
1.42
$
61,633
$
1.90
$
83,294
$
2.59
$
138,937
$
4.24
$
186,600
$
5.82
One-time non-interest expense items
recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024
—
—
—
—
5,405
0.16
—
—
—
—
5,405
0.16
—
—
FDIC premiums prior to 2024
—
—
—
—
3,200
0.10
—
—
—
—
3,200
0.10
—
—
Non-income taxes prior to 2024
(2,457
)
(0.07
)
—
—
—
—
—
—
—
—
(2,457
)
(0.07
)
—
—
Total one-time non-interest expense
items
(2,457
)
(0.07
)
—
—
8,605
0.26
—
—
—
—
6,148
0.19
—
—
Adjusted core earnings (adjusted for
one-time non-interest expense items)
$
41,381
$
1.26
$
48,567
$
1.49
$
55,137
$
1.68
$
61,633
$
1.90
$
83,294
$
2.59
$
145,085
$
4.43
$
186,600
$
5.82
Core Return on Average Assets and
Adjusted Core Return on Average Assets - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
GAAP net income
$
46,743
$
58,085
$
49,726
$
62,092
$
86,756
$
154,554
$
188,051
Reconciling items (after tax):
Severance expense
540
1,928
—
473
—
2,468
778
Impairments on fixed assets and leases
—
—
—
—
—
—
98
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
3,914
(Gains) losses on investment
securities
(322
)
561
57
(85
)
492
296
492
Derivative credit valuation adjustment
185
(44
)
169
267
(151
)
310
(48
)
Tax on surrender of bank-owned life
insurance policies
—
—
—
—
—
—
4,141
FDIC special assessment
—
138
380
2,755
—
518
—
Unrealized (gain) on equity method
investments
—
(8,316
)
—
—
—
(8,316
)
—
Unrealized losses on loans held for
sale
498
—
—
—
—
498
—
Core net income
$
47,644
$
52,352
$
50,332
$
65,502
$
87,097
$
150,328
$
197,426
One-time non-interest expense items
recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024
—
—
5,405
—
—
5,405
—
FDIC premiums prior to 2024
—
—
3,200
—
—
3,200
—
Non-income taxes prior to 2024
(2,457
)
—
—
—
—
(2,457
)
—
Total one-time non-interest expense
items
(2,457
)
—
8,605
—
—
6,148
—
Adjusted core net income (adjusted for
one-time non-interest expense items)
$
45,187
$
52,352
$
58,937
$
65,502
$
87,097
$
156,476
$
197,426
Average total assets
$
21,230,404
$
20,985,203
$
21,335,229
$
21,252,273
$
21,978,010
$
21,183,783
$
21,565,277
Core return on average assets
0.89
%
1.00
%
0.95
%
1.22
%
1.57
%
0.95
%
1.22
%
Adjusted core return on average assets
(adjusted for one-time non-interest expense items)
0.85
%
1.00
%
1.11
%
1.22
%
1.57
%
0.99
%
1.22
%
Core Pre-Tax Pre-Provision Net Income and ROAA and
Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers
Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
GAAP net income
$
46,743
$
58,085
$
49,726
$
62,092
$
86,756
$
154,554
$
188,051
Reconciling items:
Income tax expense (benefit)
(725
)
19,032
15,651
21,796
23,470
33,958
58,801
Provision (benefit) for credit losses
17,066
18,121
17,070
13,523
17,856
52,257
61,088
Provision (benefit) for credit losses on
unfunded commitments
642
1,594
430
(136
)
48
2,666
24
Severance expense
659
2,560
—
639
—
3,219
991
Impairments on fixed assets and leases
—
—
—
—
—
—
124
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
5,037
(Gains) losses on investment
securities
(394
)
744
75
(114
)
626
425
626
Derivative credit valuation adjustment
226
(58
)
222
361
(192
)
390
(63
)
FDIC special assessment
—
183
500
3,723
—
683
—
Unrealized (gain) on equity method
investments
—
(11,041
)
—
—
—
(11,041
)
—
Unrealized losses on loans held for
sale
607
—
—
—
—
607
—
Core pre-tax pre-provision net income
$
64,824
$
89,220
$
83,674
$
101,884
$
128,564
$
237,718
$
314,679
One-time non-interest expense items
recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024
—
—
7,106
—
—
7,106
—
FDIC premiums prior to 2024
—
—
4,208
—
—
4,208
—
Non-income taxes prior to 2024
(2,997
)
—
—
—
—
(2,997
)
—
Total one-time non-interest expense
items
(2,997
)
—
11,314
—
—
8,317
—
Adjusted core pre-tax pre-provision net
income (adjusted for one-time non-interest expense items)
$
61,827
$
89,220
$
94,988
$
101,884
$
128,564
$
246,035
$
314,679
Average total assets
$
21,230,404
$
20,985,203
$
21,335,229
$
21,252,273
$
21,978,010
$
21,183,783
$
21,565,277
Core pre-tax pre-provision ROAA
1.21
%
1.71
%
1.58
%
1.90
%
2.32
%
1.50
%
1.95
%
Adjusted core pre-tax pre-provision ROAA
(adjusted for one-time non-interest expense items)
1.16
%
1.71
%
1.79
%
1.90
%
2.32
%
1.55
%
1.95
%
Core Return on Average Common Equity and Adjusted Core
Return on Average Common Equity - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
GAAP net income to common shareholders
$
42,937
$
54,300
$
45,926
$
58,223
$
82,953
$
143,163
$
177,225
Reconciling items (after tax):
Severance expense
540
1,928
—
473
—
2,468
778
Impairments on fixed assets and leases
—
—
—
—
—
—
98
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
3,914
(Gains) losses on investment
securities
(322
)
561
57
(85
)
492
296
492
Derivative credit valuation adjustment
185
(44
)
169
267
(151
)
310
(48
)
Tax on surrender of bank-owned life
insurance policies
—
—
—
—
—
—
4,141
FDIC special assessment
—
138
380
2,755
—
518
—
Unrealized (gain) on equity method
investments
—
(8,316
)
—
—
—
(8,316
)
—
Unrealized losses on loans held for
sale
498
—
—
—
—
498
—
Core earnings
$
43,838
$
48,567
$
46,532
$
61,633
$
83,294
$
138,937
$
186,600
One-time non-interest expense items
recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024
—
—
5,405
—
—
5,405
—
FDIC premiums prior to 2024
—
—
3,200
—
—
3,200
—
Non-income taxes prior to 2024
(2,457
)
—
—
—
—
(2,457
)
—
Total one-time non-interest expense
items
(2,457
)
—
8,605
—
—
6,148
—
Adjusted core earnings (adjusted for
one-time non-interest expense items)
$
41,381
$
48,567
$
55,137
$
61,633
$
83,294
$
145,085
$
186,600
Average total common shareholders’
equity
$
1,636,242
$
1,576,595
$
1,529,211
$
1,449,728
$
1,373,244
$
1,580,885
$
1,327,841
Core return on average common equity
10.66
%
12.39
%
12.24
%
16.87
%
24.06
%
11.74
%
18.79
%
Adjusted core return on average common
equity (adjusted for one-time non-interest expense items)
10.06
%
12.39
%
14.50
%
16.87
%
24.06
%
12.26
%
18.79
%
Core Pre-Tax Pre-Provision ROCE and
Adjusted Core Pre-Tax Pre-Provision ROCE - Customers
Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
GAAP net income to common shareholders
$
42,937
$
54,300
$
45,926
$
58,223
$
82,953
$
143,163
$
177,225
Reconciling items:
Income tax expense (benefit)
(725
)
19,032
15,651
21,796
23,470
33,958
58,801
Provision (benefit) for credit losses
17,066
18,121
17,070
13,523
17,856
52,257
61,088
Provision (benefit) for credit losses on
unfunded commitments
642
1,594
430
(136
)
48
2,666
24
Severance expense
659
2,560
—
639
—
3,219
991
Impairments on fixed assets and leases
—
—
—
—
—
—
124
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
5,037
(Gains) losses on investment
securities
(394
)
744
75
(114
)
626
425
626
Derivative credit valuation adjustment
226
(58
)
222
361
(192
)
390
(63
)
FDIC special assessment
—
183
500
3,723
—
683
—
Unrealized (gain) on equity method
investments
—
(11,041
)
—
—
—
(11,041
)
—
Unrealized losses on loans held for
sale
607
—
—
—
—
607
—
Core pre-tax pre-provision net income
available to common shareholders
$
61,018
$
85,435
$
79,874
$
98,015
$
124,761
$
226,327
$
303,853
One-time non-interest expense items
recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024
—
—
7,106
—
—
7,106
—
FDIC premiums prior to 2024
—
—
4,208
—
—
4,208
—
Non-income taxes prior to 2024
(2,997
)
—
—
—
—
(2,997
)
—
Total one-time non-interest expense
items
(2,997
)
—
11,314
—
—
8,317
—
Adjusted core pre-tax pre-provision net
income available to common shareholders
$
58,021
$
85,435
$
91,188
$
98,015
$
124,761
$
234,644
$
303,853
Average total common shareholders’
equity
$
1,636,242
$
1,576,595
$
1,529,211
$
1,449,728
$
1,373,244
$
1,580,885
$
1,327,841
Core pre-tax pre-provision ROCE
14.84
%
21.79
%
21.01
%
26.82
%
36.04
%
19.12
%
30.59
%
Adjusted core pre-tax pre-provision ROCE
(adjusted for one-time non-interest expense items)
14.11
%
21.79
%
23.98
%
26.82
%
36.04
%
19.83
%
30.59
%
Core Efficiency Ratio and Adjusted Core Efficiency Ratio
- Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
GAAP net interest income
$
158,545
$
167,653
$
160,385
$
172,506
$
199,773
$
486,583
$
514,943
GAAP non-interest income
$
8,557
$
31,037
$
21,231
$
18,672
$
17,775
$
60,825
$
51,893
Loss on sale of capital call lines of
credit
—
—
—
—
—
—
5,037
(Gains) losses on investment
securities
(394
)
744
75
(114
)
626
425
626
Derivative credit valuation adjustment
226
(58
)
222
361
(192
)
390
(63
)
Unrealized (gain) on equity method
investments
—
(11,041
)
—
—
—
(11,041
)
—
Unrealized losses on loans held for
sale
607
—
—
—
—
607
—
Core non-interest income
8,996
20,682
21,528
18,919
18,209
51,206
57,493
Core revenue
$
167,541
$
188,335
$
181,913
$
191,425
$
217,982
$
537,789
$
572,436
GAAP non-interest expense
$
104,018
$
103,452
$
99,169
$
93,767
$
89,466
$
306,639
$
258,896
Severance expense
(659
)
(2,560
)
—
(639
)
—
(3,219
)
(991
)
Impairments on fixed assets and leases
—
—
—
—
—
—
(124
)
FDIC special assessment
—
(183
)
(500
)
(3,723
)
—
(683
)
—
Core non-interest expense
$
103,359
$
100,709
$
98,669
$
89,405
$
89,466
$
302,737
$
257,781
One-time non-interest expense items
recorded in 2024:
Deposit servicing fees prior to 2024
—
—
(7,106
)
—
—
(7,106
)
—
FDIC premiums prior to 2024
—
—
(4,208
)
—
—
(4,208
)
—
Non-income taxes prior to 2024
2,997
—
—
—
—
2,997
—
Total one-time non-interest expense
items
2,997
—
(11,314
)
—
—
(8,317
)
—
Adjusted core non-interest expense
$
106,356
$
100,709
$
87,355
$
89,405
$
89,466
$
294,420
$
257,781
Core efficiency ratio (1)
61.69
%
53.47
%
54.24
%
46.70
%
41.04
%
56.29
%
45.03
%
Adjusted core efficiency ratio (adjusted
for one-time non-interest expense items) (2)
63.48
%
53.47
%
48.02
%
46.70
%
41.04
%
54.75
%
45.03
%
(1) Core efficiency ratio
calculated as core non-interest expense divided by core
revenue.
(2) Adjusted core efficiency
ratio calculated as adjusted core non-interest expense divided by
core revenue.
Core Non-Interest Expense to Average
Total Assets and Adjusted Core Non-Interest Expense to Average
Total Assets- Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
2024
2023
GAAP non-interest expense
$
104,018
$
103,452
$
99,169
$
93,767
$
89,466
$
306,639
$
258,896
Severance expense
(659
)
(2,560
)
—
(639
)
—
(3,219
)
(991
)
Impairments on fixed assets and leases
—
—
—
—
—
—
(124
)
FDIC special assessment
—
(183
)
(500
)
(3,723
)
—
(683
)
—
Core non-interest expense
$
103,359
$
100,709
$
98,669
$
89,405
$
89,466
$
302,737
$
257,781
One-time non-interest expense items
recorded in 2024:
Deposit servicing fees prior to 2024
—
—
(7,106
)
—
—
(7,106
)
—
FDIC premiums prior to 2024
—
—
(4,208
)
—
—
(4,208
)
—
Non-income taxes prior to 2024
2,997
—
—
—
—
2,997
—
Total one-time non-interest expense
items
2,997
—
(11,314
)
—
—
(8,317
)
—
Adjusted core non-interest expense
$
106,356
$
100,709
$
87,355
$
89,405
$
89,466
$
294,420
$
257,781
Average total assets
$
21,230,404
$
20,985,203
$
21,335,229
$
21,252,273
$
21,978,010
$
21,183,783
$
21,565,277
Core non-interest expense to average total
assets
1.94
%
1.93
%
1.86
%
1.67
%
1.62
%
1.91
%
1.60
%
Adjusted core non-interest expense to
average total assets (adjusted for one-time non-interest expense
items)
1.99
%
1.93
%
1.65
%
1.67
%
1.62
%
1.86
%
1.60
%
Business Unit Deposits (formerly, Core
Deposits, Total Deposits, excluding Wholesale CDs and BMTX student
deposits) - Customers Bancorp
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Total deposits
$
18,069,389
$
17,678,093
$
17,961,383
$
17,920,236
$
18,195,364
Reconciling items:
Wholesale CDs
1,585,081
1,545,885
1,809,573
2,970,615
3,713,933
BMTX student deposits
—
—
850
1,157
636,951
Business Unit Deposits (formerly, Core
Deposits, Total deposits, excluding wholesale CDs and BMTX student
deposits)
$
16,484,308
$
16,132,208
$
16,150,960
$
14,948,464
$
13,844,480
Tangible Common Equity to Tangible
Assets - Customers Bancorp
(Dollars in thousands, except per share
data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
GAAP total shareholders’ equity
$
1,801,180
$
1,746,865
$
1,691,617
$
1,638,394
$
1,561,607
Reconciling items:
Preferred stock
(137,794
)
(137,794
)
(137,794
)
(137,794
)
(137,794
)
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,629
)
(3,629
)
Tangible common equity
$
1,659,757
$
1,605,442
$
1,550,194
$
1,496,971
$
1,420,184
GAAP total assets
$
21,456,082
$
20,942,975
$
21,347,367
$
21,316,265
$
21,857,152
Reconciling items:
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,629
)
(3,629
)
Tangible assets
$
21,452,453
$
20,939,346
$
21,343,738
$
21,312,636
$
21,853,523
Tangible common equity to tangible
assets
7.7
%
7.7
%
7.3
%
7.0
%
6.5
%
Tangible Book Value per Common Share - Customers
Bancorp
(Dollars in thousands, except share and
per share data)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
GAAP total shareholders’ equity
$
1,801,180
$
1,746,865
$
1,691,617
$
1,638,394
$
1,561,607
Reconciling Items:
Preferred stock
(137,794
)
(137,794
)
(137,794
)
(137,794
)
(137,794
)
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,629
)
(3,629
)
Tangible common equity
$
1,659,757
$
1,605,442
$
1,550,194
$
1,496,971
$
1,420,184
Common shares outstanding
31,342,107
31,667,655
31,521,931
31,440,906
31,311,254
Tangible book value per common share
$
52.96
$
50.70
$
49.18
$
47.61
$
45.36
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030045128/en/
Jordan Baucum, Head of Corporate Communications 951-608-8314
Customers Bancorp (NYSE:CUBI)
Historical Stock Chart
From Nov 2024 to Dec 2024
Customers Bancorp (NYSE:CUBI)
Historical Stock Chart
From Dec 2023 to Dec 2024
