Customers Bancorp Reports Results for Fourth Quarter and Full Year 2024
WEST READING, Pa.–(BUSINESS WIRE)–
Customers Bancorp, Inc. (NYSE:CUBI):
Fourth Quarter 2024 Highlights
- Q4 2024 net income available to common shareholders was $23.3 million, or $0.71 per diluted share; ROAA was 0.48% and ROCE was 5.50%.
- Q4 2024 core earnings*1 were $44.2 million, or $1.36 per diluted share; Core ROAA* was 0.86% and Core ROCE* was 10.44%.
- Q4 2024 net income available to common shareholders included $20.0 million of post-tax losses in connection with the securities portfolio repositioning executed to improve structural liquidity, reduce asset sensitivity and benefit margin.
- Total loans and leases held for investment grew by $671.1 million in Q4 2024 from Q3 2024 or 19% annualized.
- Total deposits increased by $777.1 million or 4.3% in Q4 2024 from Q3 2024.
- Non-interest bearing demand deposits increased $937.5 million or 20.1% in Q4 2024 from Q3 2024; non-interest bearing deposits represented 29.7% of total deposits at December 31, 2024.
- Q4 2024 average cost of deposits was 3.07% compared to Q3 2024 of 3.46%, a decrease of 39 basis points.
- Q4 2024 net interest margin, tax equivalent (“NIM”) was 3.11%, compared to Q3 2024 NIM of 3.06%, an increase of 5 basis points primarily due to lower deposit costs.
- Ratio of non-performing assets to total assets was 0.25% at December 31, 2024 compared to 0.22% at September 30, 2024.
- Q4 2024 provision for credit losses on loans and leases was $18.2 million compared to $17.8 million in Q3 2024 and the allowance for credit losses on loans and leases equaled 316% of non-performing loans at December 31, 2024, compared to 281% at September 30, 2024.
- CET 1 ratio of 12.0%2 at December 31, 2024, compared to 12.5% at September 30, 2024.
- TCE / TA ratio* of 7.6% at December 31, 2024, compared to 7.7% at September 30, 2024.
- Q4 2024 book value per share and tangible book value per share* both grew by approximately $1.12, or 2.1% over Q3 2024, or 8.4% annualized, with a tangible book value per share* of $54.08 at December 31, 2024. This was driven by current quarter earnings and a decrease in AOCI losses of $9.5 million.
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* |
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. |
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1 |
Excludes pre-tax losses on investment securities of $26.7 million, severance expense of $1.6 million, derivative credit valuation adjustment of $0.4 million, unrealized gain on equity method investments of $0.4 million, legal settlement of $0.2 million and unrealized losses on loans held for sale of $0.1 million. |
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2 |
Regulatory capital ratios as of December 31, 2024 are estimates. |
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Full Year 2024 Highlights
- 2024 net income available to common shareholders was $166.4 million, or $5.09 per diluted share; ROAA was 0.85% and ROCE was 10.36%.
- 2024 core earnings* were $183.1 million, or $5.60 per diluted share; Core ROAA* was 0.92% and Core ROCE* was 11.40%.
- Total loans and leases held for investment grew by $1.6 billion or 12.3% from December 31, 2023 to December 31, 2024.
- Total deposits increased by $926.2 million or 5.2%, from December 31, 2023 to December 31, 2024.
- Non-interest bearing demand deposits increased $1.2 billion, or 26.8%, from December 31, 2023 to December 31, 2024.
- 2024 NIM was 3.15% compared to 2023 NIM of 3.29%.
- Ratio of non-performing assets to total assets was 0.25% at December 31, 2024 compared to 0.13% at December 31, 2023.
- Allowance for credit losses on loans and leases equaled 316% of non-performing loans at December 31, 2024, compared to 499% at December 31, 2023.
- CET 1 capital ratio of 12.0%1 at December 31, 2024, compared to 12.2% at December 31, 2023.
- TCE / TA ratio* of 7.6% at December 31, 2024, compared to 7.0% at December 31, 2023.
- Book value per share and tangible book value per share* grew year over year by approximately $6.47 or 13.6%, driven by strong 2024 annual earnings combined with the decreased AOCI losses of $40.0 million over the same time period. Tangible book value per share* has grown at a 16% compound annual growth rate (CAGR) over the past 5 years, significantly higher than the regional bank peer median2 of 4%.
- Repurchased 393,303 common shares below book value at a weighted-average price of $48.36 for $19.2 million in 2024.
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* |
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 is included at the end of this document. |
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1 |
Regulatory capital ratios as of December 31, 2024 are estimates. |
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2 |
Regional bank peers based on selected 2024 proxy peers with a reporting date on or before January 22, 2025. |
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CEO Commentary
“We are pleased to share our fourth quarter and full year 2024 results that highlight the company’s continuing incredible deposit transformation and underscore our success in growing franchise value in a competitive market environment. Exceptional client service is the cornerstone of our culture and business model, and is so important it is in our name. To measure customer satisfaction, we recently participated in an annual Net Promoter Score survey, also known as NPS. Our most recent score of 73 is well above the U.S. banking industry average of 411 and is above the scores of many other service-oriented brands across all industries. We are delighted by the positive response from our customers and the trust they place in us. This is a testament to our customer-centric mindset and commitment to service provided by our extraordinary colleagues,” said Customers Bancorp Chairman and CEO Jay Sidhu.
“In the fourth quarter, we once again brought in over $1 billion of gross deposit inflows which we utilized in part to paydown higher-cost and brokered deposits. Non-interest bearing deposits increased by $937.5 million and represented 29.7% of total deposits at December 31, 2024. These efforts, along with proactive management of the cost of our existing deposit portfolio, resulted in a 39 basis point reduction in our cost of deposits during the quarter.
“Our deposit pipelines continue to expand with a significant conversion ratio. In addition, deposit focused teams we have recruited since March 2023 managed $1.7 billion or 9% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by 48% over the past two years, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. During the quarter, we opportunistically repositioned a portion of the securities portfolio to improve structural liquidity, reduce asset sensitivity and benefit margin. Even with the repositioning transaction and balance sheet growth we experienced during the quarter, our TCE / TA ratio* remained roughly flat. 2024 was a year in which we made significant investments in our future. We believe the company is extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.
“Our Q4 2024 GAAP earnings were $23.3 million, or $0.71 per diluted share, and core earnings* were $44.2 million, or $1.36 per diluted share. Fourth quarter GAAP results include losses in connection the accretive securities portfolio repositioning. We maintain a strong liquidity position, with $9.1 billion of liquidity immediately available, which covers approximately 159% of uninsured deposits2 and our loan to deposit ratio was 78%, at December 31, 2024. We continue to focus on loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $671.1 million which represent a 19% annualized growth rate, driven by strong commercial loan growth of $683.1 million led by growth in our existing specialized lending verticals. In 2024, total loans and leases held for investment grew by $1.6 billion which represent a 12.3% growth rate. Asset quality remains strong with our NPA ratio at just 0.25% of total assets and reserve levels are robust at 316% of total non-performing loans at the end of Q4 2024. Total net charge-offs declined by $2.4 million. 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 $54.08. We believe that our unique strategy and the investments we have and are making, along with the exceptional talent in our organization, will position us for success in 2025 and beyond. We are extremely excited about the future of this company especially in what we expect to be a more favorable banking environment,” Jay Sidhu continued.
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* |
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. |
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1 |
The Qualtrics U.S. Banking Relational Net Promoter® Score (NPS®) benchmark is derived from Qualtrics’ vast Customer Experience dataset. The dataset includes 2022-2023 anonymized results from 50+ U.S. banking organizations, covering 80+ separate relationship surveys, and encompassing 400,000 individual survey respondents. |
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2 |
Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $176.2 million. |
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Financial Highlights
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At or Three Months Ended |
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December 31, 2024 |
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September 30, 2024 |
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Increase (Decrease) |
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Profitability Metrics: |
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Net income available for common shareholders |
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$ |
23,266 |
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$ |
42,937 |
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$ |
(19,671 |
) |
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(45.8 |
)% |
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Diluted earnings per share |
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$ |
0.71 |
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$ |
1.31 |
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$ |
(0.60 |
) |
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(45.8 |
)% |
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Core earnings* |
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$ |
44,168 |
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$ |
43,838 |
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$ |
330 |
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0.8 |
% |
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Adjusted core earnings* |
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$ |
44,168 |
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$ |
41,381 |
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$ |
2,787 |
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6.7 |
% |
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Core earnings per share* |
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$ |
1.36 |
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$ |
1.34 |
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$ |
0.02 |
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1.5 |
% |
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Adjusted core earnings per share* |
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$ |
1.36 |
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$ |
1.26 |
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$ |
0.10 |
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7.9 |
% |
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Return on average assets (“ROAA”) |
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0.48 |
% |
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0.88 |
% |
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(0.40 |
) |
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Core ROAA* |
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0.86 |
% |
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0.89 |
% |
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(0.03 |
) |
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Adjusted core ROAA* |
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0.86 |
% |
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0.85 |
% |
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0.01 |
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Return on average common equity (“ROCE”) |
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5.50 |
% |
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10.44 |
% |
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(4.94 |
) |
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Core ROCE* |
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10.44 |
% |
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10.66 |
% |
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(0.22 |
) |
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Adjusted core ROCE* |
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10.44 |
% |
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10.06 |
% |
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0.38 |
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Core pre-tax pre-provision net income* |
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$ |
84,224 |
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$ |
64,824 |
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$ |
19,400 |
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29.9 |
% |
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Adjusted core pre-tax pre-provision net income* |
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$ |
84,224 |
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$ |
61,827 |
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$ |
22,397 |
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36.2 |
% |
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Net interest margin, tax equivalent |
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3.11 |
% |
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3.06 |
% |
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0.05 |
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Yield on loans (Loan yield) |
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6.78 |
% |
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6.99 |
% |
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(0.21 |
) |
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Cost of deposits |
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3.07 |
% |
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3.46 |
% |
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(0.39 |
) |
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Efficiency ratio |
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56.86 |
% |
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62.40 |
% |
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(5.54 |
) |
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Core efficiency ratio* |
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56.12 |
% |
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61.69 |
% |
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(5.57 |
) |
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Adjusted core efficiency ratio* |
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56.12 |
% |
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63.48 |
% |
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(7.36 |
) |
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Non-interest expense to average total assets |
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1.98 |
% |
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1.95 |
% |
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0.03 |
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Core non-interest expense to average total assets* |
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1.95 |
% |
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1.94 |
% |
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0.01 |
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Adjusted core non-interest expense to average total assets* |
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1.95 |
% |
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1.99 |
% |
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(0.04 |
) |
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Balance Sheet Trends: |
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Total assets |
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$ |
22,308,241 |
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$ |
21,456,082 |
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$ |
852,159 |
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4.0 |
% |
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Total cash and investment securities |
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$ |
6,797,562 |
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$ |
6,564,528 |
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$ |
233,034 |
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3.5 |
% |
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Total loans and leases |
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$ |
14,653,556 |
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$ |
14,053,116 |
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$ |
600,440 |
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4.3 |
% |
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Non-interest bearing demand deposits |
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$ |
5,608,288 |
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$ |
4,670,809 |
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$ |
937,479 |
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20.1 |
% |
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Total deposits |
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$ |
18,846,461 |
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$ |
18,069,389 |
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$ |
777,072 |
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4.3 |
% |
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Capital Metrics: |
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Common Equity |
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$ |
1,698,889 |
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$ |
1,663,386 |
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$ |
35,503 |
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2.1 |
% |
|
Tangible Common Equity* |
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$ |
1,695,260 |
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$ |
1,659,757 |
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$ |
35,503 |
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2.1 |
% |
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Common Equity to Total Assets |
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7.6 |
% |
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7.8 |
% |
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(0.2 |
) |
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Tangible Common Equity to Tangible Assets* |
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7.6 |
% |
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7.7 |
% |
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(0.1 |
) |
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Book Value per common share |
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$ |
54.20 |
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$ |
53.07 |
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$ |
1.13 |
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2.1 |
% |
|
Tangible Book Value per common share* |
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$ |
54.08 |
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$ |
52.96 |
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$ |
1.12 |
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2.1 |
% |
|
Common equity Tier 1 capital ratio (1) |
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|
12.0 |
% |
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12.5 |
% |
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(0.5 |
) |
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Total risk based capital ratio (1) |
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14.8 |
% |
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15.4 |
% |
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(0.6 |
) |
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(1) Regulatory capital ratios as of December 31, 2024 are estimates. |
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* 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. |
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Financial Highlights
|
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At or Three Months Ended |
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Twelve Months Ended |
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| (Dollars in thousands, except per share data) |
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December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
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Profitability Metrics: |
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Net income available for common shareholders |
|
$ |
23,266 |
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|
$ |
58,223 |
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|
$ |
(34,957 |
) |
|
(60.0 |
)% |
|
$ |
166,429 |
|
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$ |
235,448 |
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$ |
(69,019 |
) |
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(29.3 |
)% |
|
Diluted earnings per share |
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$ |
0.71 |
|
|
$ |
1.79 |
|
|
$ |
(1.08 |
) |
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(60.3 |
)% |
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$ |
5.09 |
|
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$ |
7.32 |
|
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$ |
(2.23 |
) |
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(30.5 |
)% |
|
Core earnings* |
|
$ |
44,168 |
|
|
$ |
61,633 |
|
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$ |
(17,465 |
) |
|
(28.3 |
)% |
|
$ |
183,105 |
|
|
$ |
248,233 |
|
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$ |
(65,128 |
) |
|
(26.2 |
)% |
|
Adjusted core earnings* |
|
$ |
44,168 |
|
|
$ |
61,633 |
|
|
$ |
(17,465 |
) |
|
(28.3 |
)% |
|
$ |
189,253 |
|
|
$ |
248,233 |
|
|
$ |
(58,980 |
) |
|
(23.8 |
)% |
|
Core earnings per share* |
|
$ |
1.36 |
|
|
$ |
1.90 |
|
|
$ |
(0.54 |
) |
|
(28.4 |
)% |
|
$ |
5.60 |
|
|
$ |
7.72 |
|
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$ |
(2.12 |
) |
|
(27.5 |
)% |
|
Adjusted core earnings per share* |
|
$ |
1.36 |
|
|
$ |
1.90 |
|
|
$ |
(0.54 |
) |
|
(28.4 |
)% |
|
$ |
5.78 |
|
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$ |
7.72 |
|
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$ |
(1.94 |
) |
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(25.1 |
)% |
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Return on average assets (“ROAA”) |
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|
0.48 |
% |
|
|
1.16 |
% |
|
|
(0.68 |
) |
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0.85 |
% |
|
|
1.16 |
% |
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(0.31 |
) |
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Core ROAA* |
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|
0.86 |
% |
|
|
1.22 |
% |
|
|
(0.36 |
) |
|
|
|
|
0.92 |
% |
|
|
1.22 |
% |
|
|
(0.30 |
) |
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||
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Adjusted core ROAA* |
|
|
0.86 |
% |
|
|
1.22 |
% |
|
|
(0.36 |
) |
|
|
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|
0.95 |
% |
|
|
1.22 |
% |
|
|
(0.27 |
) |
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|
Return on average common equity (“ROCE”) |
|
|
5.50 |
% |
|
|
15.93 |
% |
|
|
(10.43 |
) |
|
|
|
|
10.36 |
% |
|
|
17.33 |
% |
|
|
(6.97 |
) |
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||
|
Core ROCE* |
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|
10.44 |
% |
|
|
16.87 |
% |
|
|
(6.43 |
) |
|
|
|
|
11.40 |
% |
|
|
18.27 |
% |
|
|
(6.87 |
) |
|
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||
|
Adjusted core ROCE* |
|
|
10.44 |
% |
|
|
16.87 |
% |
|
|
(6.43 |
) |
|
|
|
|
11.78 |
% |
|
|
18.27 |
% |
|
|
(6.49 |
) |
|
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|
Core pre-tax pre-provision net income* |
|
$ |
84,224 |
|
|
$ |
101,884 |
|
|
$ |
(17,660 |
) |
|
(17.3 |
)% |
|
$ |
321,942 |
|
|
$ |
416,563 |
|
|
$ |
(94,621 |
) |
|
(22.7 |
)% |
|
Adjusted core pre-tax pre-provision net income* |
|
$ |
84,224 |
|
|
$ |
101,884 |
|
|
$ |
(17,660 |
) |
|
(17.3 |
)% |
|
$ |
330,259 |
|
|
$ |
416,563 |
|
|
$ |
(86,304 |
) |
|
(20.7 |
)% |
|
Net interest margin, tax equivalent |
|
|
3.11 |
% |
|
|
3.31 |
% |
|
|
(0.20 |
) |
|
|
|
|
3.15 |
% |
|
|
3.29 |
% |
|
|
(0.14 |
) |
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Yield on loans (Loan yield) |
|
|
6.78 |
% |
|
|
7.30 |
% |
|
|
(0.52 |
) |
|
|
|
|
6.99 |
% |
|
|
7.16 |
% |
|
|
(0.17 |
) |
|
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|
Cost of deposits |
|
|
3.07 |
% |
|
|
3.39 |
% |
|
|
(0.32 |
) |
|
|
|
|
3.34 |
% |
|
|
3.27 |
% |
|
|
0.07 |
|
|
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||
|
Efficiency ratio |
|
|
56.86 |
% |
|
|
49.08 |
% |
|
|
7.78 |
|
|
|
|
|
56.21 |
% |
|
|
46.49 |
% |
|
|
9.72 |
|
|
|
||
|
Core efficiency ratio* |
|
|
56.12 |
% |
|
|
46.70 |
% |
|
|
9.42 |
|
|
|
|
|
56.25 |
% |
|
|
45.45 |
% |
|
|
10.80 |
|
|
|
||
|
Adjusted core efficiency ratio* |
|
|
56.12 |
% |
|
|
46.70 |
% |
|
|
9.42 |
|
|
|
|
|
55.11 |
% |
|
|
45.45 |
% |
|
|
9.66 |
|
|
|
||
|
Non-interest expense to average total assets |
|
|
1.98 |
% |
|
|
1.75 |
% |
|
|
0.23 |
|
|
|
|
|
1.95 |
% |
|
|
1.64 |
% |
|
|
0.31 |
|
|
|
||
|
Core non-interest expense to average total assets* |
|
|
1.95 |
% |
|
|
1.67 |
% |
|
|
0.28 |
|
|
|
|
|
1.92 |
% |
|
|
1.62 |
% |
|
|
0.30 |
|
|
|
||
|
Adjusted core non-interest expense to average total assets* |
|
|
1.95 |
% |
|
|
1.67 |
% |
|
|
0.28 |
|
|
|
|
|
1.88 |
% |
|
|
1.62 |
% |
|
|
0.26 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(1) Regulatory capital ratios as of December 31, 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
|
At or Three Months Ended |
|
||||||||||||||
| (Dollars in thousands, except per share data) |
December 31, 2024 |
December 31, 2023 |
Increase (Decrease) |
||||||||||||
|
Balance Sheet Trends: |
|
|
|
|
|||||||||||
|
Total assets |
$ |
22,308,241 |
|
$ |
21,316,265 |
|
$ |
991,976 |
|
4.7 |
% |
||||
|
Total cash and investment securities |
$ |
6,797,562 |
|
$ |
7,355,156 |
|
$ |
(557,594 |
) |
(7.6 |
)% |
||||
|
Total loans and leases |
$ |
14,653,556 |
|
$ |
13,202,084 |
|
$ |
1,451,472 |
|
11.0 |
% |
||||
|
Non-interest bearing demand deposits |
$ |
5,608,288 |
|
$ |
4,422,494 |
|
$ |
1,185,794 |
|
26.8 |
% |
||||
|
Total deposits |
$ |
18,846,461 |
|
$ |
17,920,236 |
|
$ |
926,225 |
|
5.2 |
% |
||||
|
Capital Metrics: |
|
|
|
|
|||||||||||
|
Common Equity |
$ |
1,698,889 |
|
$ |
1,500,600 |
|
$ |
198,289 |
|
13.2 |
% |
||||
|
Tangible Common Equity* |
$ |
1,695,260 |
|
$ |
1,496,971 |
|
$ |
198,289 |
|
13.2 |
% |
||||
|
Common Equity to Total Assets |
|
7.6 |
% |
|
7.0 |
% |
|
0.6 |
|
|
|||||
|
Tangible Common Equity to Tangible Assets* |
|
7.6 |
% |
|
7.0 |
% |
|
0.6 |
|
|
|||||
|
Book Value per common share |
$ |
54.20 |
|
$ |
47.73 |
|
$ |
6.47 |
|
13.6 |
% |
||||
|
Tangible Book Value per common share* |
$ |
54.08 |
|
$ |
47.61 |
|
$ |
6.47 |
|
13.6 |
% |
||||
|
Common equity Tier 1 capital ratio (1) |
|
12.0 |
% |
|
12.2 |
% |
|
(0.2 |
) |
|
|||||
|
Total risk based capital ratio (1) |
|
14.8 |
% |
|
15.3 |
% |
|
(0.5 |
) |
|
|||||
|
|
|
|
|
|
|||||||||||
|
(1) Regulatory capital ratios as of December 31, 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) |
December 31, 2024 |
|
% of Total |
|
September 30, 2024 |
|
% of Total |
|
December 31, 2023 |
|
% of Total |
|||||||
|
Loans and Leases Held for Investment |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Specialized lending |
$ |
5,842,420 |
|
40.4 |
% |
|
$ |
5,468,507 |
|
39.7 |
% |
|
$ |
5,006,693 |
|
38.9 |
% |
|
|
Other commercial & industrial (1) |
|
1,062,631 |
|
7.4 |
|
|
|
1,087,222 |
|
7.9 |
|
|
|
1,162,317 |
|
9.1 |
|
|
|
Mortgage finance |
|
1,440,847 |
|
10.0 |
|
|
|
1,367,617 |
|
9.9 |
|
|
|
1,014,742 |
|
7.9 |
|
|
|
Multifamily |
|
2,252,246 |
|
15.6 |
|
|
|
2,115,978 |
|
15.4 |
|
|
|
2,138,622 |
|
16.6 |
|
|
|
Commercial real estate owner occupied |
|
1,100,944 |
|
7.6 |
|
|
|
981,904 |
|
7.1 |
|
|
|
797,319 |
|
6.2 |
|
|
|
Commercial real estate non-owner occupied |
|
1,359,130 |
|
9.4 |
|
|
|
1,326,591 |
|
9.6 |
|
|
|
1,177,650 |
|
9.2 |
|
|
|
Construction |
|
147,209 |
|
1.0 |
|
|
|
174,509 |
|
1.3 |
|
|
|
166,393 |
|
1.2 |
|
|
|
Total commercial loans and leases |
|
13,205,427 |
|
91.4 |
|
|
|
12,522,328 |
|
90.9 |
|
|
|
11,463,736 |
|
89.1 |
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential |
|
496,559 |
|
3.4 |
|
|
|
500,786 |
|
3.6 |
|
|
|
484,435 |
|
3.8 |
|
|
|
Manufactured housing |
|
33,123 |
|
0.3 |
|
|
|
34,481 |
|
0.3 |
|
|
|
38,670 |
|
0.3 |
|
|
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Personal |
|
463,854 |
|
3.2 |
|
|
|
453,739 |
|
3.3 |
|
|
|
555,533 |
|
4.3 |
|
|
|
Other |
|
249,799 |
|
1.7 |
|
|
|
266,362 |
|
1.9 |
|
|
|
319,393 |
|
2.5 |
|
|
|
Total installment loans |
|
713,653 |
|
4.9 |
|
|
|
720,101 |
|
5.2 |
|
|
|
874,926 |
|
6.8 |
|
|
|
Total consumer loans |
|
1,243,335 |
|
8.6 |
|
|
|
1,255,368 |
|
9.1 |
|
|
|
1,398,031 |
|
10.9 |
|
|
|
Total loans and leases held for investment |
$ |
14,448,762 |
|
100.0 |
% |
|
$ |
13,777,696 |
|
100.0 |
% |
|
$ |
12,861,767 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential |
$ |
1,836 |
|
0.9 |
% |
|
$ |
2,523 |
|
0.9 |
% |
|
$ |
1,215 |
|
0.3 |
% |
|
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Personal |
|
40,903 |
|
20.0 |
|
|
|
55,799 |
|
20.3 |
|
|
|
151,040 |
|
44.4 |
|
|
|
Other |
|
162,055 |
|
79.1 |
|
|
|
217,098 |
|
78.8 |
|
|
|
188,062 |
|
55.3 |
|
|
|
Total installment loans |
|
202,958 |
|
99.1 |
|
|
|
272,897 |
|
99.1 |
|
|
|
339,102 |
|
99.7 |
|
|
|
Total loans held for sale |
$ |
204,794 |
|
100.0 |
% |
|
$ |
275,420 |
|
100.0 |
% |
|
$ |
340,317 |
|
100.0 |
% |
|
|
Total loans and leases portfolio |
$ |
14,653,556 |
|
|
|
$ |
14,053,116 |
|
|
|
$ |
13,202,084 |
|
|
||||
|
(1) |
Includes PPP loans of $22.8 million, $30.5 million and $74.7 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. |
Loans and Leases Held for Investment
Loans and leases held for investment were $14.4 billion at December 31, 2024, up $671.1 million, or 4.9%, from September 30, 2024. Specialized lending increased by $373.9 million, or 6.8% quarter-over-quarter, to $5.8 billion. Multifamily loans increased by $136.3 million, or 6.4% to $2.3 billion. Owner-occupied commercial real estate loans increased by $119.0 million, or 12.1% to $1.1 billion. Mortgage finance loans increased by $73.2 million, or 5.4% to $1.4 billion. Non-owner occupied commercial real estate loans increased by $32.5 million, or 2.5% to $1.4 billion. These increases were partially offset by a decrease in other commercial and industrial loans of $24.6 million, or 2.3%, to $1.1 billion.
Loans and leases held for investment of $14.4 billion at December 31, 2024 were up $1.6 billion, or 12.3%, year-over-year. Specialized lending increased by $835.7 million, or 16.7% year-over-year. Mortgage finance loans increased by $426.1 million. Owner-occupied commercial real estate loans increased by $303.6 million. Non-owner occupied commercial real estate loans increased by $181.5 million. Multifamily loans increased by $113.6 million. These increases were partially offset by decreases in consumer installment loans of $161.3 million and other commercial and industrial loans of $99.7 million.
Loans Held for Sale
Loans held for sale decreased $70.6 million quarter-over-quarter, and were $204.8 million at December 31, 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 |
|
|
At or Three Months Ended |
|
|||||||||||||||||||
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Allowance for credit losses on loans and leases |
$ |
136,775 |
|
|
$ |
133,158 |
|
|
$ |
3,617 |
|
|
$ |
136,775 |
|
|
$ |
135,311 |
|
|
$ |
1,464 |
|
|
|
Provision (benefit) for credit losses on loans and leases |
$ |
18,229 |
|
|
$ |
17,766 |
|
|
$ |
463 |
|
|
$ |
18,229 |
|
|
$ |
13,420 |
|
|
$ |
4,809 |
|
|
|
Net charge-offs from loans held for investment |
$ |
14,612 |
|
|
$ |
17,044 |
|
|
$ |
(2,432 |
) |
|
$ |
14,612 |
|
|
$ |
17,322 |
|
|
$ |
(2,710 |
) |
|
|
Annualized net charge-offs to average loans and leases |
|
0.41 |
% |
|
|
0.50 |
% |
|
|
|
|
0.41 |
% |
|
|
0.51 |
% |
|
|
|||||
|
Coverage of credit loss reserves for loans and leases held for investment |
|
1.04 |
% |
|
|
1.06 |
% |
|
|
|
|
1.04 |
% |
|
|
1.13 |
% |
|
|
|||||
Net charge-offs decreased with $14.6 million in Q4 2024, compared to $17.0 million in Q3 2024 and $17.3 million in Q4 2023.
Provision (benefit) for Credit Losses
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|||||||||||||||||||
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Provision (benefit) for credit losses on loans and leases |
$ |
18,229 |
|
|
$ |
17,766 |
|
|
$ |
463 |
|
|
$ |
18,229 |
|
|
$ |
13,420 |
|
|
$ |
4,809 |
|
|
|
Provision (benefit) for credit losses on available for sale debt securities |
|
2,965 |
|
|
|
(700 |
) |
|
|
3,665 |
|
|
|
2,965 |
|
|
|
103 |
|
|
|
2,862 |
|
|
|
Provision for credit losses |
|
21,194 |
|
|
|
17,066 |
|
|
|
4,128 |
|
|
|
21,194 |
|
|
|
13,523 |
|
|
|
7,671 |
|
|
|
Provision (benefit) for credit losses on unfunded commitments |
|
(664 |
) |
|
|
642 |
|
|
|
(1,306 |
) |
|
|
(664 |
) |
|
|
(136 |
) |
|
|
(528 |
) |
|
|
Total provision for credit losses |
$ |
20,530 |
|
|
$ |
17,708 |
|
|
$ |
2,822 |
|
|
$ |
20,530 |
|
|
$ |
13,387 |
|
|
$ |
7,143 |
|
|
The provision for credit losses on loans and leases in Q4 2024 was $18.2 million, compared to $17.8 million in Q3 2024. The higher provision in Q4 2024 was primarily due to slight deterioration in macroeconomic forecasts.
The provision for credit losses on available for sale investment securities in Q4 2024 was a provision of $3.0 million, compared to a benefit to provision of $0.7 million in Q3 2024.
The provision for credit losses on loans and leases in Q4 2024 was $18.2 million, compared to $13.4 million in Q4 2023. The higher provision in Q4 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 improvements in macroeconomic forecasts and lower balances in consumer installment loans held for investment.
The provision for credit losses on available for sale investment securities in Q4 2024 was a provision of $3.0 million compared to $0.1 million in Q4 2023.
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Non-performing assets (“NPAs”): |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Nonaccrual / non-performing loans (“NPLs”) |
$ |
43,275 |
|
|
$ |
47,326 |
|
|
$ |
(4,051 |
) |
|
$ |
43,275 |
|
|
$ |
27,110 |
|
|
$ |
16,165 |
|
|
|
Non-performing assets |
$ |
55,807 |
|
|
$ |
47,326 |
|
|
$ |
8,481 |
|
|
$ |
55,807 |
|
|
$ |
27,209 |
|
|
$ |
28,598 |
|
|
|
NPLs to total loans and leases |
|
0.30 |
% |
|
|
0.34 |
% |
|
|
|
|
0.30 |
% |
|
|
0.21 |
% |
|
|
|||||
|
Reserves to NPLs |
|
316.06 |
% |
|
|
281.36 |
% |
|
|
|
|
316.06 |
% |
|
|
499.12 |
% |
|
|
|||||
|
NPAs to total assets |
|
0.25 |
% |
|
|
0.22 |
% |
|
|
|
|
0.25 |
% |
|
|
0.13 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Loans and leases (1) risk ratings: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Commercial loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Pass |
$ |
11,403,930 |
|
|
$ |
10,844,500 |
|
|
$ |
559,430 |
|
|
$ |
11,403,930 |
|
|
$ |
9,955,243 |
|
|
$ |
1,448,687 |
|
|
|
Special Mention |
|
175,055 |
|
|
|
178,026 |
|
|
|
(2,971 |
) |
|
|
175,055 |
|
|
|
196,182 |
|
|
|
(21,127 |
) |
|
|
Substandard |
|
282,563 |
|
|
|
218,921 |
|
|
|
63,642 |
|
|
|
282,563 |
|
|
|
339,664 |
|
|
|
(57,101 |
) |
|
|
Total commercial loans and leases |
|
11,861,548 |
|
|
|
11,241,447 |
|
|
|
620,101 |
|
|
|
11,861,548 |
|
|
|
10,491,089 |
|
|
|
1,370,459 |
|
|
|
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Performing |
|
1,227,359 |
|
|
|
1,240,581 |
|
|
|
(13,222 |
) |
|
|
1,227,359 |
|
|
|
1,379,603 |
|
|
|
(152,244 |
) |
|
|
Non-performing |
|
15,976 |
|
|
|
14,787 |
|
|
|
1,189 |
|
|
|
15,976 |
|
|
|
18,428 |
|
|
|
(2,452 |
) |
|
|
Total consumer loans |
|
1,243,335 |
|
|
|
1,255,368 |
|
|
|
(12,033 |
) |
|
|
1,243,335 |
|
|
|
1,398,031 |
|
|
|
(154,696 |
) |
|
|
Loans and leases receivable (1) |
$ |
13,104,883 |
|
|
$ |
12,496,815 |
|
|
$ |
608,068 |
|
|
$ |
13,104,883 |
|
|
$ |
11,889,120 |
|
|
$ |
1,215,763 |
|
|
|
(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: a 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 a challenging economic and rate 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 December 31, 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 $49.7 million. At December 31, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 742, average debt-to-income of 20% and average borrower income of $102 thousand.
Non-performing loans at December 31, 2024 decreased to 0.30% of total loans and leases, compared to 0.34% at September 30, 2024 and increased, compared to 0.21% at December 31, 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) |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
||||
|
Debt securities, available for sale |
$ |
1,985,438 |
|
$ |
2,377,733 |
|
$ |
2,376,860 |
|
|
Equity securities |
|
34,256 |
|
|
34,336 |
|
|
28,780 |
|
|
Investment securities, at fair value |
|
2,019,694 |
|
|
2,412,069 |
|
|
2,405,640 |
|
|
Debt securities, held to maturity |
|
991,937 |
|
|
1,064,437 |
|
|
1,103,170 |
|
|
Total investment securities portfolio |
$ |
3,011,631 |
|
$ |
3,476,506 |
|
$ |
3,508,810 |
|
Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At December 31, 2024, the AFS debt securities portfolio had a spot yield of 5.62%, an effective duration of approximately 2.6 years, and approximately 32% are variable rate. Additionally, 66% of the AFS securities portfolio was AAA rated at December 31, 2024.
At December 31, 2024, the HTM debt securities portfolio represented only 4.4% of total assets at December 31, 2024, had a spot yield of 4.13% and an effective duration of approximately 3.5 years. Additionally, at December 31, 2024, approximately 44% of the HTM securities were AAA rated and 52% were credit enhanced asset backed securities with no current expectation of credit losses.
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
|
(Dollars in thousands) |
December 31, 2024 |
|
% of Total |
|
September 30, 2024 |
|
% of Total |
|
December 31, 2023 |
|
% of Total |
|||||||
|
Demand, non-interest bearing |
$ |
5,608,288 |
|
29.7 |
% |
|
$ |
4,670,809 |
|
25.9 |
% |
|
$ |
4,422,494 |
|
24.7 |
% |
|
|
Demand, interest bearing |
|
5,553,698 |
|
29.5 |
|
|
|
5,606,500 |
|
31.0 |
|
|
|
5,580,527 |
|
31.1 |
|
|
|
Total demand deposits |
|
11,161,986 |
|
59.2 |
|
|
|
10,277,309 |
|
56.9 |
|
|
|
10,003,021 |
|
55.8 |
|
|
|
Savings |
|
1,131,819 |
|
6.0 |
|
|
|
1,399,968 |
|
7.7 |
|
|
|
1,402,941 |
|
7.8 |
|
|
|
Money market |
|
3,844,451 |
|
20.4 |
|
|
|
3,961,028 |
|
21.9 |
|
|
|
3,226,395 |
|
18.0 |
|
|
|
Time deposits |
|
2,708,205 |
|
14.4 |
|
|
|
2,431,084 |
|
13.5 |
|
|
|
3,287,879 |
|
18.4 |
|
|
|
Total deposits |
$ |
18,846,461 |
|
100.0 |
% |
|
$ |
18,069,389 |
|
100.0 |
% |
|
$ |
17,920,236 |
|
100.0 |
% |
|
Total deposits increased $777.1 million, or 4.3%, to $18.8 billion at December 31, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $937.5 million, or 20.1%, to $5.6 billion and time deposits increased $277.1 million, or 11.4%, to $2.7 billion. These increases were offset by decreases in savings deposits of $268.1 million, or 19.2%, to $1.1 billion, money market deposits of $116.6 million, or 2.9%, to $3.8 billion and interest bearing demand deposits of $52.8 million, or 0.9%, to $5.6 billion. The total average cost of deposits decreased by 39 basis points to 3.07% in Q4 2024 from 3.46% in the prior quarter primarily due to a favorable shift in deposit mix and lower market interest rates. Total estimated uninsured deposits were $5.7 billion1, or 30% of total deposits (inclusive of accrued interest) at December 31, 2024.
Total deposits increased $926.2 million, or 5.2%, to $18.8 billion at December 31, 2024 as compared to a year ago. Non-interest bearing demand deposits increased $1.2 billion, or 26.8%, to $5.6 billion and money market deposits increased $618.1 million, or 19.2%, to $3.8 billion. These increases were offset by decreases in time deposits of $579.7 million, or 17.6% to $2.7 billion, savings deposits of $271.1 million, or 19.3%, to $1.1 billion and interest bearing demand deposits of $26.8 million, or 0.5%, to $5.6 billion. The total average cost of deposits decreased by 32 basis points to 3.07% in Q4 2024 from 3.39% in the prior year primarily due to a favorable shift in deposit mix and lower market interest rates.
1 Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $176.2 million.
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
||||
|
FHLB advances |
$ |
1,128,352 |
|
$ |
1,117,229 |
|
$ |
1,203,207 |
|
|
Senior notes |
|
99,068 |
|
|
99,033 |
|
|
123,840 |
|
|
Subordinated debt |
|
182,509 |
|
|
182,439 |
|
|
182,230 |
|
|
Total borrowings |
$ |
1,409,929 |
|
$ |
1,398,701 |
|
$ |
1,509,277 |
|
Total borrowings increased $11.2 million, or 0.8%, to $1.4 billion at December 31, 2024 as compared to the prior quarter. This increase primarily resulted from net draws of $25.0 million in FHLB advances. As of December 31, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.9 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 $99.3 million, or 6.6%, to $1.4 billion at December 31, 2024 as compared to a year ago. This decrease primarily resulted from net repayments of $70.0 million in FHLB advances and $25.0 million in senior notes upon maturity.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
|
(Dollars in thousands except per share data) |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|||||||
|
Customers Bancorp, Inc. |
|
|
|
|
|
|||||||
|
Common Equity |
$ |
1,698,889 |
|
|
$ |
1,663,386 |
|
|
$ |
1,500,600 |
|
|
|
Tangible Common Equity* |
$ |
1,695,260 |
|
|
$ |
1,659,757 |
|
|
$ |
1,496,971 |
|
|
|
Common Equity to Total Assets |
|
7.6 |
% |
|
|
7.8 |
% |
|
|
7.0 |
% |
|
|
Tangible Common Equity to Tangible Assets* |
|
7.6 |
% |
|
|
7.7 |
% |
|
|
7.0 |
% |
|
|
Book Value per common share |
$ |
54.20 |
|
|
$ |
53.07 |
|
|
$ |
47.73 |
|
|
|
Tangible Book Value per common share* |
$ |
54.08 |
|
|
$ |
52.96 |
|
|
$ |
47.61 |
|
|
|
Common equity Tier 1 (“CET 1”) capital ratio (1) |
|
12.0 |
% |
|
|
12.5 |
% |
|
|
12.2 |
% |
|
|
Total risk based capital ratio (1) |
|
14.8 |
% |
|
|
15.4 |
% |
|
|
15.3 |
% |
|
|
|
|
|
|
|
|
|||||||
|
(1) Regulatory capital ratios as of December 31, 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 $35.5 million to $1.7 billion, and tangible common equity* increased $35.5 million to $1.7 billion, at December 31, 2024 compared to the prior quarter, respectively, primarily from earnings of $23.3 million and decreased unrealized losses on investment securities of $9.5 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). These increases were offset in part by $1.0 million of common share repurchases in Q4 2024. Similarly, book value per common share increased to $54.20 from $53.07, and tangible book value per common share* increased to $54.08 from $52.96, at December 31, 2024 and September 30, 2024, respectively.
Customers Bancorp’s common equity increased $198.3 million to $1.7 billion, and tangible common equity* increased $198.3 million to $1.7 billion, at December 31, 2024 compared to a year ago, respectively, primarily from earnings of $166.4 million and decreased unrealized losses on investment securities in AOCI of $40.0 million (net of taxes), offset in part by $19.2 million of common share repurchases. Similarly, book value per common share increased to $54.20 from $47.73, and tangible book value per common share* increased to $54.08 from $47.61, at December 31, 2024 and December 31, 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 12.0%, 14.8%, 7.6%, and 7.6%, respectively, at December 31, 2024.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At December 31, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 12.9% and 14.3%, respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $167.8 million in Q4 2024, an increase of $9.3 million from Q3 2024. This increase was primarily due to lower interest expense of $11.5 million due to a favorable shift in deposit mix and lower market interest rates. Interest income decreased $2.2 million primarily due to lower interest income from investment securities, partially offset by higher balances in interest-earning deposits.
“Net interest income and net interest margin expanded in the quarter primarily driven by improvements in the liability side of the balance sheet as we lowered interest bearing deposit costs and had higher levels of average non-interest bearing deposits. This is evident in the fact that our total cost of deposits declined by 39 basis points during the quarter. Additionally, robust loan growth late in the quarter should provide a strong foundation for our net interest income in 2025,” stated Customers Bancorp President Sam Sidhu. “We have positive drivers to net interest income on both sides of the balance sheet though we continue to believe the best opportunity remains in reducing our interest expense with continued momentum from our new deposit focused commercial banking teams and across our franchise.”
Net interest income totaled $167.8 million in Q4 2024, a decrease of $4.7 million from Q4 2023. This decrease was primarily due to lower interest income in specialized lending and investment securities, partially offset by lower interest expense from a favorable shift in deposit mix, lower market interest rates and lower balances in other borrowings.
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|||||||||||||||||||
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Commercial lease income |
$ |
10,604 |
|
|
$ |
10,093 |
|
|
$ |
511 |
|
|
$ |
10,604 |
|
|
$ |
9,035 |
|
|
$ |
1,569 |
|
|
|
Loan fees |
|
8,639 |
|
|
|
8,011 |
|
|
|
628 |
|
|
|
8,639 |
|
|
|
5,926 |
|
|
|
2,713 |
|
|
|
Bank-owned life insurance |
|
2,125 |
|
|
|
2,049 |
|
|
|
76 |
|
|
|
2,125 |
|
|
|
2,160 |
|
|
|
(35 |
) |
|
|
Mortgage finance transactional fees |
|
1,010 |
|
|
|
1,087 |
|
|
|
(77 |
) |
|
|
1,010 |
|
|
|
927 |
|
|
|
83 |
|
|
|
Net gain (loss) on sale of loans and leases |
|
(852 |
) |
|
|
(14,548 |
) |
|
|
13,696 |
|
|
|
(852 |
) |
|
|
(91 |
) |
|
|
(761 |
) |
|
|
Net gain (loss) on sale of investment securities |
|
(26,260 |
) |
|
|
— |
|
|
|
(26,260 |
) |
|
|
(26,260 |
) |
|
|
(145 |
) |
|
|
(26,115 |
) |
|
|
Unrealized gain on equity method investments |
|
389 |
|
|
|
— |
|
|
|
389 |
|
|
|
389 |
|
|
|
— |
|
|
|
389 |
|
|
|
Other |
|
3,954 |
|
|
|
1,865 |
|
|
|
2,089 |
|
|
|
3,954 |
|
|
|
860 |
|
|
|
3,094 |
|
|
|
Total non-interest income |
$ |
(391 |
) |
|
$ |
8,557 |
|
|
$ |
(8,948 |
) |
|
$ |
(391 |
) |
|
$ |
18,672 |
|
|
$ |
(19,063 |
) |
|
Reported non-interest income totaled a loss of $0.4 million for Q4 2024, a decrease of $8.9 million compared to Q3 2024. The decrease was primarily due to $26.3 million in net realized loss on sale of investment securities, partially offset by a decrease of $13.6 million in 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, and an increase in deposit account fees of $1.9 million. The commercial clean vehicle leases generated the same amount of investment tax credits that were included as a benefit to income tax expense in Q4 2024 and Q3 2024. In Q4 2024, the Bank invested the proceeds from the sale of lower yielding investment securities into higher yielding loans and investment securities.
Non-interest income totaled a loss of $0.4 million for Q4 2024, a decrease of $19.1 million compared to Q4 2023. The decrease was primarily due to $26.3 million in net realized loss on sale of investment securities, partially offset by increases in commercial lease income of $1.6 million, loan fees of $2.7 million primarily resulting from increased unused line of credit fees, and deposit account fees of $1.9 million.
Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|||||||||||||||
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||
|
Salaries and employee benefits |
$ |
47,147 |
|
$ |
47,717 |
|
$ |
(570 |
) |
|
$ |
47,147 |
|
$ |
33,965 |
|
$ |
13,182 |
|
|
|
Technology, communication and bank operations |
|
13,435 |
|
|
13,588 |
|
|
(153 |
) |
|
|
13,435 |
|
|
16,887 |
|
|
(3,452 |
) |
|
|
Commercial lease depreciation |
|
8,933 |
|
|
7,811 |
|
|
1,122 |
|
|
|
8,933 |
|
|
7,357 |
|
|
1,576 |
|
|
|
Professional services |
|
13,473 |
|
|
9,048 |
|
|
4,425 |
|
|
|
13,473 |
|
|
9,820 |
|
|
3,653 |
|
|
|
Loan servicing |
|
4,584 |
|
|
3,778 |
|
|
806 |
|
|
|
4,584 |
|
|
3,779 |
|
|
805 |
|
|
|
Occupancy |
|
3,335 |
|
|
2,987 |
|
|
348 |
|
|
|
3,335 |
|
|
2,320 |
|
|
1,015 |
|
|
|
FDIC assessments, non-income taxes and regulatory fees |
|
10,077 |
|
|
7,902 |
|
|
2,175 |
|
|
|
10,077 |
|
|
13,977 |
|
|
(3,900 |
) |
|
|
Advertising and promotion |
|
1,645 |
|
|
908 |
|
|
737 |
|
|
|
1,645 |
|
|
850 |
|
|
795 |
|
|
|
Other |
|
7,746 |
|
|
10,279 |
|
|
(2,533 |
) |
|
|
7,746 |
|
|
4,812 |
|
|
2,934 |
|
|
|
Total non-interest expense |
$ |
110,375 |
|
$ |
104,018 |
|
$ |
6,357 |
|
|
$ |
110,375 |
|
$ |
93,767 |
|
$ |
16,608 |
|
|
Non-interest expenses totaled $110.4 million in Q4 2024, an increase of $6.4 million compared to Q3 2024. The increase was primarily attributable to increases of $4.4 million in professional fees including continued investment in our risk management infrastructure, and $2.2 million in FDIC assessments, non-income taxes and regulatory fees mainly due to a credit of $3.0 million in non-income taxes recorded in Q3 2024 for periods prior to 2024.
“In the quarter we incurred professional services expense of approximately $5.7 million as we made investments to enhance our risk management infrastructure. We expect these costs to remain elevated for the next quarter or so before tapering down 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. During the quarter we advanced our operational excellence initiative to provide the capacity for these and other investments which we are, and will continue to make, in our franchise to position us for success in the both the near-term and over the long-term,” stated Sam Sidhu.
Non-interest expenses totaled $110.4 million in Q4 2024, an increase of $16.6 million compared to Q4 2023. The increase was primarily attributable to increases of $13.2 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in 2024, annual merit increases, incentives and severance, $3.7 million in professional fees including the investment in our risk management infrastructure, and fees paid to a fintech company related to consumer installment loans originated and held for sale. These increases were partially offset by decreases in FDIC assessments primarily due to $3.7 million of FDIC special assessment in Q4 2023 and deposit servicing fees.
Taxes
Income tax expense increased by $9.7 million to a provision of $8.9 million in Q4 2024 from a benefit of $0.7 million in Q3 2024 primarily due to lower investment tax credits in Q4 2024, partially offset by lower pre-tax income. The decrease in investment tax credits was primarily due to $0.6 million of investment tax credits generated from commercial clean vehicles in Q4 2024 as compared to $14.3 million in Q3 2024. The 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 in Q4 2024 and Q3 2024.
Income tax expense decreased by $12.9 million to a provision of $8.9 million in Q4 2024 from a provision of $21.8 million in Q4 2023 primarily due to lower pre-tax income and an increase in income tax credits for 2024, including $14.9 million of investment tax credits generated from commercial clean vehicles in 2024. The 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 in 2024. The effective tax rate was 24.9% for Q4 2024 and 19.1% for the full year 2024.
Outlook
“Looking forward, our strategy remains unchanged. We are focused on continuing the transformation of our deposit franchise, further strengthening our risk management and compliance infrastructure, improving our profitability and growing net interest income, and maintaining strong capital ratios, liquidity, and credit quality. Our deposit transformation momentum is continuing. As a result, we expect deposit growth of 5% to 9% during 2025 with gross inflows expected to be higher as we continue to remix out less strategic deposits especially in the first half of the year. With strong loan pipelines and attractive opportunities from across our various verticals we are targeting to increase the loan portfolio by about 7% to 10% in 2025. Through the combination of these factors we expect our net interest income to increase between 3% to 7% in 2025. Operating efficiency has been and remains a priority for us even while we continue to make significant investments in our future. We see our core efficiency ratio* for the year in the low to mid 50’s as the execution of our strategic priorities take hold and as we move toward completion of some of our outsized investment. We remain committed to maintaining higher levels of capital with CET 1 ratio target of 11.5% in 2025. We expect an effective tax rate to be between 22% to 25%. We remain focused on executing in those areas which differentiate us from our peers and believe that providing truly exceptional service, sophisticated product offerings and a single-point-of-contact service model will deliver strategic, organic growth. We believe we are incredibly well positioned to continue to win new client relationships and that we have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond,” 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. |
||||
|
Webcast |
|
|
|
Date: |
Friday, January 24, 2025 |
|
|
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 4th Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Head of Corporate Communications, Jordan Baucum at [email protected].
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 $22 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.
Q4 2024 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended December 31, 2024 and the preceding four quarters, and full year 2024 and 2023:
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||
|
EARNINGS SUMMARY – UNAUDITED |
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Twelve Months Ended December 31, |
|||||||||||||||||||||||
| (Dollars in thousands, except per share data and stock price data) |
2024 |
2024 |
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
GAAP Profitability Metrics: |
||||||||||||||||||||||||||||
|
Net income available to common shareholders
|
$ |
23,266 |
|
$ |
42,937 |
|
$ |
54,300 |
|
$ |
45,926 |
|
$ |
58,223 |
|
$ |
166,429 |
|
$ |
235,448 |
|
|||||||
|
Per share amounts: |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Earnings per share – basic |
$ |
0.74 |
|
$ |
1.36 |
|
$ |
1.72 |
|
$ |
1.46 |
|
$ |
1.86 |
|
$ |
5.28 |
|
$ |
7.49 |
|
|||||||
|
Earnings per share – diluted |
$ |
0.71 |
|
$ |
1.31 |
|
$ |
1.66 |
|
$ |
1.40 |
|
$ |
1.79 |
|
$ |
5.09 |
|
$ |
7.32 |
|
|||||||
|
Book value per common share (1) |
$ |
54.20 |
|
$ |
53.07 |
|
$ |
50.81 |
|
$ |
49.29 |
|
$ |
47.73 |
|
$ |
54.20 |
|
$ |
47.73 |
|
|||||||
|
CUBI stock price (1) |
$ |
48.68 |
|
$ |
46.45 |
|
$ |
47.98 |
|
$ |
53.06 |
|
$ |
57.62 |
|
$ |
48.68 |
|
$ |
57.62 |
|
|||||||
|
CUBI stock price as % of book value (1) |
|
90 |
% |
|
88 |
% |
|
94 |
% |
|
108 |
% |
|
121 |
% |
|
90 |
% |
|
121 |
% |
|||||||
|
Average shares outstanding – basic |
|
31,346,920 |
|
|
31,567,797 |
|
|
31,649,715 |
|
|
31,473,424 |
|
|
31,385,043 |
|
|
31,509,179 |
|
|
31,435,647 |
|
|||||||
|
Average shares outstanding – diluted |
|
32,557,621 |
|
|
32,766,488 |
|
|
32,699,149 |
|
|
32,854,534 |
|
|
32,521,787 |
|
|
32,719,134 |
|
|
32,158,788 |
|
|||||||
|
Shares outstanding (1) |
|
31,346,507 |
|
|
31,342,107 |
|
|
31,667,655 |
|
|
31,521,931 |
|
|
31,440,906 |
|
|
31,346,507 |
|
|
31,440,906 |
|
|||||||
|
Return on average assets (“ROAA”) |
|
0.48 |
% |
|
0.88 |
% |
|
1.11 |
% |
|
0.94 |
% |
|
1.16 |
% |
|
0.85 |
% |
|
1.16 |
% |
|||||||
|
Return on average common equity (“ROCE”) |
|
5.50 |
% |
|
10.44 |
% |
|
13.85 |
% |
|
12.08 |
% |
|
15.93 |
% |
|
10.36 |
% |
|
17.33 |
% |
|||||||
|
Net interest margin, tax equivalent |
|
3.11 |
% |
|
3.06 |
% |
|
3.29 |
% |
|
3.10 |
% |
|
3.31 |
% |
|
3.15 |
% |
|
3.29 |
% |
|||||||
|
Efficiency ratio |
|
56.86 |
% |
|
62.40 |
% |
|
51.87 |
% |
|
54.58 |
% |
|
49.08 |
% |
|
56.21 |
% |
|
46.49 |
% |
|||||||
|
Non-GAAP Profitability Metrics (2): |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Core earnings |
$ |
44,168 |
|
$ |
43,838 |
|
$ |
48,567 |
|
$ |
46,532 |
|
$ |
61,633 |
|
$ |
183,105 |
|
$ |
248,233 |
|
|||||||
|
Core pre-tax pre-provision net income |
$ |
84,224 |
|
$ |
64,824 |
|
$ |
89,220 |
|
$ |
83,674 |
|
$ |
101,884 |
|
$ |
321,942 |
|
$ |
416,563 |
|
|||||||
|
Per share amounts: |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Core earnings per share – diluted |
$ |
1.36 |
|
$ |
1.34 |
|
$ |
1.49 |
|
$ |
1.42 |
|
$ |
1.90 |
|
$ |
5.60 |
|
$ |
7.72 |
|
|||||||
|
Tangible book value per common share (1) |
$ |
54.08 |
|
$ |
52.96 |
|
$ |
50.70 |
|
$ |
49.18 |
|
$ |
47.61 |
|
$ |
54.08 |
|
$ |
47.61 |
|
|||||||
|
CUBI stock price as % of tangible book value (1) |
|
90 |
% |
|
88 |
% |
|
95 |
% |
|
108 |
% |
|
121 |
% |
|
90 |
% |
|
121 |
% |
|||||||
|
Core ROAA |
|
0.86 |
% |
|
0.89 |
% |
|
1.00 |
% |
|
0.95 |
% |
|
1.22 |
% |
|
0.92 |
% |
|
1.22 |
% |
|||||||
|
Core ROCE |
|
10.44 |
% |
|
10.66 |
% |
|
12.39 |
% |
|
12.24 |
% |
|
16.87 |
% |
|
11.40 |
% |
|
18.27 |
% |
|||||||
|
Core pre-tax pre-provision ROAA |
|
1.51 |
% |
|
1.21 |
% |
|
1.71 |
% |
|
1.58 |
% |
|
1.90 |
% |
|
1.50 |
% |
|
1.94 |
% |
|||||||
|
Core pre-tax pre-provision ROCE |
|
19.04 |
% |
|
14.84 |
% |
|
21.79 |
% |
|
21.01 |
% |
|
26.82 |
% |
|
19.10 |
% |
|
29.58 |
% |
|||||||
|
Core efficiency ratio |
|
56.12 |
% |
|
61.69 |
% |
|
53.47 |
% |
|
54.24 |
% |
|
46.70 |
% |
|
56.25 |
% |
|
45.45 |
% |
|||||||
|
Asset Quality: |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Net charge-offs |
$ |
14,612 |
|
$ |
17,044 |
|
$ |
18,711 |
|
$ |
17,968 |
|
$ |
17,322 |
|
$ |
68,335 |
|
$ |
69,035 |
|
|||||||
|
Annualized net charge-offs to average total loans and leases |
|
0.41 |
% |
|
0.50 |
% |
|
0.56 |
% |
|
0.55 |
% |
|
0.51 |
% |
|
0.50 |
% |
|
0.48 |
% |
|||||||
|
Non-performing loans (“NPLs”) to total loans and leases (1) |
|
0.30 |
% |
|
0.34 |
% |
|
0.35 |
% |
|
0.27 |
% |
|
0.21 |
% |
|
0.30 |
% |
|
0.21 |
% |
|||||||
|
Reserves to NPLs (1) |
|
316.06 |
% |
|
281.36 |
% |
|
279.52 |
% |
|
373.86 |
% |
|
499.12 |
% |
|
316.06 |
% |
|
499.12 |
% |
|||||||
|
Non-performing assets (“NPAs”) to total assets |
|
0.25 |
% |
|
0.22 |
% |
|
0.23 |
% |
|
0.17 |
% |
|
0.13 |
% |
|
0.25 |
% |
|
0.13 |
% |
|||||||
|
Customers Bank Capital Ratios (3): |
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Common equity Tier 1 capital to risk-weighted assets |
|
12.9 |
% |
|
13.64 |
% |
|
14.17 |
% |
|
14.16 |
% |
|
13.77 |
% |
|
12.9 |
% |
|
13.77 |
% |
|||||||
|
Tier 1 capital to risk-weighted assets |
|
12.9 |
% |
|
13.64 |
% |
|
14.17 |
% |
|
14.16 |
% |
|
13.77 |
% |
|
12.9 |
% |
|
13.77 |
% |
|||||||
|
Total capital to risk-weighted assets |
|
14.3 |
% |
|
15.06 |
% |
|
15.64 |
% |
|
15.82 |
% |
|
15.28 |
% |
|
14.3 |
% |
|
15.28 |
% |
|||||||
|
Tier 1 capital to average assets (leverage ratio) |
|
8.7 |
% |
|
9.08 |
% |
|
9.16 |
% |
|
8.82 |
% |
|
8.71 |
% |
|
8.7 |
% |
|
8.71 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
(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 Q4 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 December 31, 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) |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|||||||||||||||||
|
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
December 31, |
|||||||||||||||||
|
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Loans and leases |
$ |
230,534 |
|
|
$ |
228,659 |
|
|
$ |
224,265 |
|
|
$ |
217,999 |
|
|
$ |
239,453 |
|
|
$ |
901,457 |
|
|
$ |
996,517 |
|
|
|
Investment securities |
|
39,638 |
|
|
|
46,265 |
|
|
|
47,586 |
|
|
|
46,802 |
|
|
|
51,074 |
|
|
|
180,291 |
|
|
|
200,659 |
|
|
|
Interest earning deposits |
|
48,147 |
|
|
|
44,372 |
|
|
|
45,506 |
|
|
|
52,817 |
|
|
|
44,104 |
|
|
|
190,842 |
|
|
|
125,923 |
|
|
|
Loans held for sale |
|
9,447 |
|
|
|
10,907 |
|
|
|
13,671 |
|
|
|
12,048 |
|
|
|
8,707 |
|
|
|
46,073 |
|
|
|
36,221 |
|
|
|
Other |
|
2,140 |
|
|
|
1,910 |
|
|
|
3,010 |
|
|
|
2,111 |
|
|
|
2,577 |
|
|
|
9,171 |
|
|
|
8,040 |
|
|
|
Total interest income |
|
329,906 |
|
|
|
332,113 |
|
|
|
334,038 |
|
|
|
331,777 |
|
|
|
345,915 |
|
|
|
1,327,834 |
|
|
|
1,367,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Deposits |
|
144,974 |
|
|
|
155,829 |
|
|
|
148,784 |
|
|
|
153,725 |
|
|
|
150,307 |
|
|
|
603,312 |
|
|
|
576,437 |
|
|
|
FHLB advances |
|
12,595 |
|
|
|
12,590 |
|
|
|
13,437 |
|
|
|
13,485 |
|
|
|
18,868 |
|
|
|
52,107 |
|
|
|
80,008 |
|
|
|
FRB advances |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,286 |
|
|
|
Subordinated debt |
|
3,349 |
|
|
|
3,537 |
|
|
|
2,734 |
|
|
|
2,689 |
|
|
|
2,688 |
|
|
|
12,309 |
|
|
|
10,755 |
|
|
|
Other borrowings |
|
1,167 |
|
|
|
1,612 |
|
|
|
1,430 |
|
|
|
1,493 |
|
|
|
1,546 |
|
|
|
5,702 |
|
|
|
6,425 |
|
|
|
Total interest expense |
|
162,085 |
|
|
|
173,568 |
|
|
|
166,385 |
|
|
|
171,392 |
|
|
|
173,409 |
|
|
|
673,430 |
|
|
|
679,911 |
|
|
|
Net interest income |
|
167,821 |
|
|
|
158,545 |
|
|
|
167,653 |
|
|
|
160,385 |
|
|
|
172,506 |
|
|
|
654,404 |
|
|
|
687,449 |
|
|
|
Provision for credit losses |
|
21,194 |
|
|
|
17,066 |
|
|
|
18,121 |
|
|
|
17,070 |
|
|
|
13,523 |
|
|
|
73,451 |
|
|
|
74,611 |
|
|
|
Net interest income after provision for credit losses |
|
146,627 |
|
|
|
141,479 |
|
|
|
149,532 |
|
|
|
143,315 |
|
|
|
158,983 |
|
|
|
580,953 |
|
|
|
612,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Commercial lease income |
|
10,604 |
|
|
|
10,093 |
|
|
|
10,282 |
|
|
|
9,683 |
|
|
|
9,035 |
|
|
|
40,662 |
|
|
|
36,179 |
|
|
|
Loan fees |
|
8,639 |
|
|
|
8,011 |
|
|
|
5,233 |
|
|
|
5,280 |
|
|
|
5,926 |
|
|
|
27,163 |
|
|
|
20,216 |
|
|
|
Bank-owned life insurance |
|
2,125 |
|
|
|
2,049 |
|
|
|
2,007 |
|
|
|
3,261 |
|
|
|
2,160 |
|
|
|
9,442 |
|
|
|
11,777 |
|
|
|
Mortgage finance transactional fees |
|
1,010 |
|
|
|
1,087 |
|
|
|
1,058 |
|
|
|
946 |
|
|
|
927 |
|
|
|
4,101 |
|
|
|
4,395 |
|
|
|
Net gain (loss) on sale of loans and leases |
|
(852 |
) |
|
|
(14,548 |
) |
|
|
(238 |
) |
|
|
10 |
|
|
|
(91 |
) |
|
|
(15,628 |
) |
|
|
(1,200 |
) |
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,037 |
) |
|
|
Net gain (loss) on sale of investment securities |
|
(26,260 |
) |
|
|
— |
|
|
|
(719 |
) |
|
|
(30 |
) |
|
|
(145 |
) |
|
|
(27,009 |
) |
|
|
(574 |
) |
|
|
Unrealized gain on equity method investments |
|
389 |
|
|
|
— |
|
|
|
11,041 |
|
|
|
— |
|
|
|
— |
|
|
|
11,430 |
|
|
|
— |
|
|
|
Other |
|
3,954 |
|
|
|
1,865 |
|
|
|
2,373 |
|
|
|
2,081 |
|
|
|
860 |
|
|
|
10,273 |
|
|
|
4,809 |
|
|
|
Total non-interest income |
|
(391 |
) |
|
|
8,557 |
|
|
|
31,037 |
|
|
|
21,231 |
|
|
|
18,672 |
|
|
|
60,434 |
|
|
|
70,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Salaries and employee benefits |
|
47,147 |
|
|
|
47,717 |
|
|
|
44,947 |
|
|
|
36,025 |
|
|
|
33,965 |
|
|
|
175,836 |
|
|
|
133,275 |
|
|
|
Technology, communication and bank operations |
|
13,435 |
|
|
|
13,588 |
|
|
|
16,227 |
|
|
|
21,904 |
|
|
|
16,887 |
|
|
|
65,154 |
|
|
|
65,550 |
|
|
|
Commercial lease depreciation |
|
8,933 |
|
|
|
7,811 |
|
|
|
7,829 |
|
|
|
7,970 |
|
|
|
7,357 |
|
|
|
32,543 |
|
|
|
29,898 |
|
|
|
Professional services |
|
13,473 |
|
|
|
9,048 |
|
|
|
6,104 |
|
|
|
6,353 |
|
|
|
9,820 |
|
|
|
34,978 |
|
|
|
35,177 |
|
|
|
Loan servicing |
|
4,584 |
|
|
|
3,778 |
|
|
|
3,516 |
|
|
|
4,031 |
|
|
|
3,779 |
|
|
|
15,909 |
|
|
|
17,075 |
|
|
|
Occupancy |
|
3,335 |
|
|
|
2,987 |
|
|
|
3,120 |
|
|
|
2,347 |
|
|
|
2,320 |
|
|
|
11,789 |
|
|
|
10,070 |
|
|
|
FDIC assessments, non-income taxes and regulatory fees |
|
10,077 |
|
|
|
7,902 |
|
|
|
10,236 |
|
|
|
13,469 |
|
|
|
13,977 |
|
|
|
41,684 |
|
|
|
35,036 |
|
|
|
Advertising and promotion |
|
1,645 |
|
|
|
908 |
|
|
|
1,254 |
|
|
|
682 |
|
|
|
850 |
|
|
|
4,489 |
|
|
|
3,095 |
|
|
|
Legal settlement expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,096 |
|
|
|
Other |
|
7,746 |
|
|
|
10,279 |
|
|
|
10,219 |
|
|
|
6,388 |
|
|
|
4,812 |
|
|
|
34,632 |
|
|
|
19,391 |
|
|
|
Total non-interest expense |
|
110,375 |
|
|
|
104,018 |
|
|
|
103,452 |
|
|
|
99,169 |
|
|
|
93,767 |
|
|
|
417,014 |
|
|
|
352,663 |
|
|
|
Income before income tax expense (benefit) |
|
35,861 |
|
|
|
46,018 |
|
|
|
77,117 |
|
|
|
65,377 |
|
|
|
83,888 |
|
|
|
224,373 |
|
|
|
330,740 |
|
|
|
Income tax expense (benefit) |
|
8,946 |
|
|
|
(725 |
) |
|
|
19,032 |
|
|
|
15,651 |
|
|
|
21,796 |
|
|
|
42,904 |
|
|
|
80,597 |
|
|
|
Net income |
|
26,915 |
|
|
|
46,743 |
|
|
|
58,085 |
|
|
|
49,726 |
|
|
|
62,092 |
|
|
|
181,469 |
|
|
|
250,143 |
|
|
|
Preferred stock dividends |
|
3,649 |
|
|
|
3,806 |
|
|
|
3,785 |
|
|
|
3,800 |
|
|
|
3,869 |
|
|
|
15,040 |
|
|
|
14,695 |
|
|
|
Net income available to common shareholders |
$ |
23,266 |
|
|
$ |
42,937 |
|
|
$ |
54,300 |
|
|
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
166,429 |
|
|
$ |
235,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Basic earnings per common share |
$ |
0.74 |
|
|
$ |
1.36 |
|
|
$ |
1.72 |
|
|
$ |
1.46 |
|
|
$ |
1.86 |
|
|
$ |
5.28 |
|
|
$ |
7.49 |
|
|
|
Diluted earnings per common share |
|
0.71 |
|
|
|
1.31 |
|
|
|
1.66 |
|
|
|
1.40 |
|
|
|
1.79 |
|
|
|
5.09 |
|
|
|
7.32 |
|
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEET – UNAUDITED |
||||||||||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||||||||
|
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|||||||||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cash and due from banks |
$ |
56,787 |
|
|
$ |
39,429 |
|
|
$ |
45,045 |
|
|
$ |
51,974 |
|
|
$ |
45,210 |
|
|
|
Interest earning deposits |
|
3,729,144 |
|
|
|
3,048,593 |
|
|
|
3,003,542 |
|
|
|
3,649,146 |
|
|
|
3,801,136 |
|
|
|
Cash and cash equivalents |
|
3,785,931 |
|
|
|
3,088,022 |
|
|
|
3,048,587 |
|
|
|
3,701,120 |
|
|
|
3,846,346 |
|
|
|
Investment securities, at fair value |
|
2,019,694 |
|
|
|
2,412,069 |
|
|
|
2,511,650 |
|
|
|
2,604,868 |
|
|
|
2,405,640 |
|
|
|
Investment securities held to maturity |
|
991,937 |
|
|
|
1,064,437 |
|
|
|
962,799 |
|
|
|
1,032,037 |
|
|
|
1,103,170 |
|
|
|
Loans held for sale |
|
204,794 |
|
|
|
275,420 |
|
|
|
375,724 |
|
|
|
357,640 |
|
|
|
340,317 |
|
|
|
Loans and leases receivable |
|
13,127,634 |
|
|
|
12,527,283 |
|
|
|
12,254,204 |
|
|
|
11,936,621 |
|
|
|
11,963,855 |
|
|
|
Loans receivable, mortgage finance, at fair value |
|
1,321,128 |
|
|
|
1,250,413 |
|
|
|
1,002,711 |
|
|
|
962,610 |
|
|
|
897,912 |
|
|
|
Allowance for credit losses on loans and leases |
|
(136,775 |
) |
|
|
(133,158 |
) |
|
|
(132,436 |
) |
|
|
(133,296 |
) |
|
|
(135,311 |
) |
|
|
Total loans and leases receivable, net of allowance for credit losses on loans and leases |
|
14,311,987 |
|
|
|
13,644,538 |
|
|
|
13,124,479 |
|
|
|
12,765,935 |
|
|
|
12,726,456 |
|
|
|
FHLB, Federal Reserve Bank, and other restricted stock |
|
96,214 |
|
|
|
95,035 |
|
|
|
92,276 |
|
|
|
100,067 |
|
|
|
109,548 |
|
|
|
Accrued interest receivable |
|
108,351 |
|
|
|
115,588 |
|
|
|
112,788 |
|
|
|
120,123 |
|
|
|
114,766 |
|
|
|
Bank premises and equipment, net |
|
6,668 |
|
|
|
6,730 |
|
|
|
7,019 |
|
|
|
7,253 |
|
|
|
7,371 |
|
|
|
Bank-owned life insurance |
|
297,641 |
|
|
|
295,531 |
|
|
|
293,108 |
|
|
|
293,400 |
|
|
|
292,193 |
|
|
|
Goodwill and other intangibles |
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
Other assets |
|
481,395 |
|
|
|
455,083 |
|
|
|
410,916 |
|
|
|
361,295 |
|
|
|
366,829 |
|
|
|
Total assets |
$ |
22,308,241 |
|
|
$ |
21,456,082 |
|
|
$ |
20,942,975 |
|
|
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Demand, non-interest bearing deposits |
$ |
5,608,288 |
|
|
$ |
4,670,809 |
|
|
$ |
4,474,862 |
|
|
$ |
4,688,880 |
|
|
$ |
4,422,494 |
|
|
|
Interest bearing deposits |
|
13,238,173 |
|
|
|
13,398,580 |
|
|
|
13,203,231 |
|
|
|
13,272,503 |
|
|
|
13,497,742 |
|
|
|
Total deposits |
|
18,846,461 |
|
|
|
18,069,389 |
|
|
|
17,678,093 |
|
|
|
17,961,383 |
|
|
|
17,920,236 |
|
|
|
FHLB advances |
|
1,128,352 |
|
|
|
1,117,229 |
|
|
|
1,018,349 |
|
|
|
1,195,088 |
|
|
|
1,203,207 |
|
|
|
Other borrowings |
|
99,068 |
|
|
|
99,033 |
|
|
|
123,970 |
|
|
|
123,905 |
|
|
|
123,840 |
|
|
|
Subordinated debt |
|
182,509 |
|
|
|
182,439 |
|
|
|
182,370 |
|
|
|
182,300 |
|
|
|
182,230 |
|
|
|
Accrued interest payable and other liabilities |
|
215,168 |
|
|
|
186,812 |
|
|
|
193,328 |
|
|
|
193,074 |
|
|
|
248,358 |
|
|
|
Total liabilities |
|
20,471,558 |
|
|
|
19,654,902 |
|
|
|
19,196,110 |
|
|
|
19,655,750 |
|
|
|
19,677,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Preferred stock |
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
Common stock |
|
35,758 |
|
|
|
35,734 |
|
|
|
35,686 |
|
|
|
35,540 |
|
|
|
35,459 |
|
|
|
Additional paid in capital |
|
575,333 |
|
|
|
571,609 |
|
|
|
567,345 |
|
|
|
567,490 |
|
|
|
564,538 |
|
|
|
Retained earnings |
|
1,326,011 |
|
|
|
1,302,745 |
|
|
|
1,259,808 |
|
|
|
1,205,508 |
|
|
|
1,159,582 |
|
|
|
Accumulated other comprehensive income (loss), net |
|
(96,560 |
) |
|
|
(106,082 |
) |
|
|
(131,358 |
) |
|
|
(132,305 |
) |
|
|
(136,569 |
) |
|
|
Treasury stock, at cost |
|
(141,653 |
) |
|
|
(140,620 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
Total shareholders’ equity |
|
1,836,683 |
|
|
|
1,801,180 |
|
|
|
1,746,865 |
|
|
|
1,691,617 |
|
|
|
1,638,394 |
|
|
|
Total liabilities and shareholders’ equity |
$ |
22,308,241 |
|
|
$ |
21,456,082 |
|
|
$ |
20,942,975 |
|
|
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
|
AVERAGE BALANCE SHEET / NET INTEREST MARGIN – UNAUDITED |
|||||||||||||||||||||||||||
|
(Dollars in thousands) |
|
||||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||||||
|
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 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 |
$ |
3,973,262 |
|
$ |
48,147 |
|
4.82 |
% |
|
$ |
3,224,940 |
|
$ |
44,372 |
|
5.47 |
% |
|
$ |
3,191,677 |
|
$ |
44,104 |
|
5.48 |
% |
|
|
Investment securities (1) |
|
3,392,850 |
|
|
39,638 |
|
4.65 |
% |
|
|
3,706,974 |
|
|
46,265 |
|
4.97 |
% |
|
|
4,007,418 |
|
|
51,074 |
|
5.10 |
% |
|
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Specialized lending loans and leases (2) |
|
6,022,062 |
|
|
121,818 |
|
8.05 |
% |
|
|
5,805,389 |
|
|
124,667 |
|
8.54 |
% |
|
|
5,574,149 |
|
|
130,838 |
|
9.31 |
% |
|
|
Other commercial & industrial loans (2)(3) |
|
1,529,478 |
|
|
25,514 |
|
6.64 |
% |
|
|
1,533,057 |
|
|
24,654 |
|
6.40 |
% |
|
|
1,666,052 |
|
|
28,053 |
|
6.68 |
% |
|
|
Mortgage finance loans |
|
1,316,884 |
|
|
16,704 |
|
5.05 |
% |
|
|
1,267,656 |
|
|
17,723 |
|
5.56 |
% |
|
|
997,353 |
|
|
13,726 |
|
5.46 |
% |
|
|
Multifamily loans |
|
2,162,825 |
|
|
22,400 |
|
4.12 |
% |
|
|
2,071,340 |
|
|
21,147 |
|
4.06 |
% |
|
|
2,131,750 |
|
|
22,347 |
|
4.16 |
% |
|
|
Non-owner occupied commercial real estate loans |
|
1,491,170 |
|
|
21,770 |
|
5.81 |
% |
|
|
1,411,533 |
|
|
21,065 |
|
5.94 |
% |
|
|
1,392,684 |
|
|
20,686 |
|
5.89 |
% |
|
|
Residential mortgages |
|
535,833 |
|
|
6,301 |
|
4.68 |
% |
|
|
525,285 |
|
|
6,082 |
|
4.61 |
% |
|
|
526,422 |
|
|
5,942 |
|
4.48 |
% |
|
|
Installment loans |
|
1,023,569 |
|
|
25,474 |
|
9.90 |
% |
|
|
1,029,812 |
|
|
24,228 |
|
9.36 |
% |
|
|
1,198,043 |
|
|
26,568 |
|
8.80 |
% |
|
|
Total loans and leases (4) |
|
14,081,821 |
|
|
239,981 |
|
6.78 |
% |
|
|
13,644,072 |
|
|
239,566 |
|
6.99 |
% |
|
|
13,486,453 |
|
|
248,160 |
|
7.30 |
% |
|
|
Other interest-earning assets |
|
122,784 |
|
|
2,140 |
|
6.93 |
% |
|
|
118,914 |
|
|
1,910 |
|
6.39 |
% |
|
|
116,756 |
|
|
2,577 |
|
8.75 |
% |
|
|
Total interest-earning assets |
|
21,570,717 |
|
|
329,906 |
|
6.09 |
% |
|
|
20,694,900 |
|
|
332,113 |
|
6.39 |
% |
|
|
20,802,304 |
|
|
345,915 |
|
6.61 |
% |
|
|
Non-interest-earning assets |
|
609,253 |
|
|
|
|
|
|
535,504 |
|
|
|
|
|
|
449,969 |
|
|
|
|
|||||||
|
Total assets |
$ |
22,179,970 |
|
|
|
|
|
$ |
21,230,404 |
|
|
|
|
|
$ |
21,252,273 |
|
|
|
|
|||||||
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest checking accounts |
$ |
5,597,302 |
|
$ |
57,268 |
|
4.07 |
% |
|
$ |
5,787,026 |
|
$ |
65,554 |
|
4.51 |
% |
|
$ |
5,656,212 |
|
$ |
62,041 |
|
4.35 |
% |
|
|
Money market deposit accounts |
|
3,974,776 |
|
|
42,492 |
|
4.25 |
% |
|
|
3,676,994 |
|
|
42,128 |
|
4.56 |
% |
|
|
2,802,309 |
|
|
29,990 |
|
4.25 |
% |
|
|
Other savings accounts |
|
1,258,018 |
|
|
12,939 |
|
4.09 |
% |
|
|
1,563,970 |
|
|
18,426 |
|
4.69 |
% |
|
|
1,218,118 |
|
|
13,849 |
|
4.51 |
% |
|
|
Certificates of deposit |
|
2,612,246 |
|
|
32,275 |
|
4.92 |
% |
|
|
2,339,937 |
|
|
29,721 |
|
5.05 |
% |
|
|
3,625,311 |
|
|
44,427 |
|
4.86 |
% |
|
|
Total interest-bearing deposits (5) |
|
13,442,342 |
|
|
144,974 |
|
4.29 |
% |
|
|
13,367,927 |
|
|
155,829 |
|
4.64 |
% |
|
|
13,301,950 |
|
|
150,307 |
|
4.48 |
% |
|
|
Borrowings |
|
1,364,138 |
|
|
17,111 |
|
4.99 |
% |
|
|
1,334,905 |
|
|
17,739 |
|
5.29 |
% |
|
|
1,816,047 |
|
|
23,102 |
|
5.05 |
% |
|
|
Total interest-bearing liabilities |
|
14,806,480 |
|
|
162,085 |
|
4.36 |
% |
|
|
14,702,832 |
|
|
173,568 |
|
4.70 |
% |
|
|
15,117,997 |
|
|
173,409 |
|
4.55 |
% |
|
|
Non-interest-bearing deposits (5) |
|
5,346,912 |
|
|
|
|
|
|
4,557,815 |
|
|
|
|
|
|
4,270,557 |
|
|
|
|
|||||||
|
Total deposits and borrowings |
|
20,153,392 |
|
|
|
3.20 |
% |
|
|
19,260,647 |
|
|
|
3.59 |
% |
|
|
19,388,554 |
|
|
|
3.55 |
% |
||||
|
Other non-interest-bearing liabilities |
|
204,947 |
|
|
|
|
|
|
195,722 |
|
|
|
|
|
|
276,198 |
|
|
|
|
|||||||
|
Total liabilities |
|
20,358,339 |
|
|
|
|
|
|
19,456,369 |
|
|
|
|
|
|
19,664,752 |
|
|
|
|
|||||||
|
Shareholders’ equity |
|
1,821,631 |
|
|
|
|
|
|
1,774,035 |
|
|
|
|
|
|
1,587,521 |
|
|
|
|
|||||||
|
Total liabilities and shareholders’ equity |
$ |
22,179,970 |
|
|
|
|
|
$ |
21,230,404 |
|
|
|
|
|
$ |
21,252,273 |
|
|
|
|
|||||||
|
Net interest income |
|
|
|
167,821 |
|
|
|
|
|
|
158,545 |
|
|
|
|
|
|
172,506 |
|
|
|||||||
|
Tax-equivalent adjustment |
|
|
|
377 |
|
|
|
|
|
|
392 |
|
|
|
|
|
|
398 |
|
|
|||||||
|
Net interest earnings |
|
|
$ |
168,198 |
|
|
|
|
|
$ |
158,937 |
|
|
|
|
|
$ |
172,904 |
|
|
|||||||
|
Interest spread |
|
|
|
|
2.89 |
% |
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
3.06 |
% |
|||||||
|
Net interest margin |
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.05 |
% |
|
|
|
|
|
3.30 |
% |
|||||||
|
Net interest margin tax equivalent (6) |
|
|
|
|
3.11 |
% |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.31 |
% |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(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 3.07%, 3.46% and 3.39% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. |
|||||||||||||||||||||||||||
|
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended December 31, 2024, September 30, 2024 and December 31, 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) |
||||||||||||||||||
|
|
Twelve Months Ended |
|||||||||||||||||
|
|
December 31, 2024 |
|
December 31, 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 |
$ |
3,597,260 |
|
$ |
190,842 |
|
5.31 |
% |
|
$ |
2,375,488 |
|
$ |
125,923 |
|
5.30 |
% |
|
|
Investment securities (1) |
|
3,650,320 |
|
|
180,291 |
|
4.94 |
% |
|
|
4,057,564 |
|
|
200,659 |
|
4.95 |
% |
|
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Specialized lending loans and leases (2) |
|
5,637,189 |
|
|
483,052 |
|
8.57 |
% |
|
|
5,704,220 |
|
|
513,976 |
|
9.01 |
% |
|
|
Other commercial & industrial loans (2)(3) |
|
1,564,167 |
|
|
102,001 |
|
6.52 |
% |
|
|
1,976,924 |
|
|
133,451 |
|
6.75 |
% |
|
|
Mortgage finance loans |
|
1,192,827 |
|
|
62,344 |
|
5.23 |
% |
|
|
1,179,141 |
|
|
67,660 |
|
5.74 |
% |
|
|
Multifamily loans |
|
2,116,168 |
|
|
86,263 |
|
4.08 |
% |
|
|
2,165,067 |
|
|
85,204 |
|
3.94 |
% |
|
|
Non-owner occupied commercial real estate loans |
|
1,412,201 |
|
|
83,484 |
|
5.91 |
% |
|
|
1,423,929 |
|
|
81,970 |
|
5.76 |
% |
|
|
Residential mortgages |
|
526,133 |
|
|
24,046 |
|
4.57 |
% |
|
|
533,213 |
|
|
23,240 |
|
4.36 |
% |
|
|
Installment loans |
|
1,104,470 |
|
|
106,340 |
|
9.63 |
% |
|
|
1,437,078 |
|
|
127,237 |
|
8.85 |
% |
|
|
Total loans and leases (4) |
|
13,553,155 |
|
|
947,530 |
|
6.99 |
% |
|
|
14,419,572 |
|
|
1,032,738 |
|
7.16 |
% |
|
|
Other interest-earning assets |
|
114,983 |
|
|
9,171 |
|
7.98 |
% |
|
|
118,574 |
|
|
8,040 |
|
6.78 |
% |
|
|
Total interest-earning assets |
|
20,915,718 |
|
|
1,327,834 |
|
6.35 |
% |
|
|
20,971,198 |
|
|
1,367,360 |
|
6.52 |
% |
|
|
Non-interest-earning assets |
|
518,472 |
|
|
|
|
|
|
515,185 |
|
|
|
|
|||||
|
Total assets |
$ |
21,434,190 |
|
|
|
|
|
$ |
21,486,383 |
|
|
|
|
|||||
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Interest checking accounts |
$ |
5,660,890 |
|
$ |
248,400 |
|
4.39 |
% |
|
$ |
6,048,797 |
|
$ |
241,025 |
|
3.98 |
% |
|
|
Money market deposit accounts |
|
3,559,362 |
|
|
159,598 |
|
4.48 |
% |
|
|
2,358,437 |
|
|
93,434 |
|
3.96 |
% |
|
|
Other savings accounts |
|
1,595,357 |
|
|
73,947 |
|
4.64 |
% |
|
|
1,029,951 |
|
|
41,556 |
|
4.03 |
% |
|
|
Certificates of deposit |
|
2,434,622 |
|
|
121,367 |
|
4.99 |
% |
|
|
4,401,855 |
|
|
200,422 |
|
4.55 |
% |
|
|
Total interest-bearing deposits (5) |
|
13,250,231 |
|
|
603,312 |
|
4.55 |
% |
|
|
13,839,040 |
|
|
576,437 |
|
4.17 |
% |
|
|
Federal funds purchased |
|
— |
|
|
— |
|
— |
% |
|
|
3,781 |
|
|
188 |
|
4.97 |
% |
|
|
Borrowings |
|
1,414,583 |
|
|
70,118 |
|
4.96 |
% |
|
|
2,073,553 |
|
|
103,286 |
|
4.98 |
% |
|
|
Total interest-bearing liabilities |
|
14,664,814 |
|
|
673,430 |
|
4.59 |
% |
|
|
15,916,374 |
|
|
679,911 |
|
4.27 |
% |
|
|
Non-interest-bearing deposits (5) |
|
4,807,647 |
|
|
|
|
|
|
3,801,053 |
|
|
|
|
|||||
|
Total deposits and borrowings |
|
19,472,461 |
|
|
|
3.46 |
% |
|
|
19,717,427 |
|
|
|
3.45 |
% |
|||
|
Other non-interest-bearing liabilities |
|
217,172 |
|
|
|
|
|
|
272,599 |
|
|
|
|
|||||
|
Total liabilities |
|
19,689,633 |
|
|
|
|
|
|
19,990,026 |
|
|
|
|
|||||
|
Shareholders’ equity |
|
1,744,557 |
|
|
|
|
|
|
1,496,357 |
|
|
|
|
|||||
|
Total liabilities and shareholders’ equity |
$ |
21,434,190 |
|
|
|
|
|
$ |
21,486,383 |
|
|
|
|
|||||
|
Net interest income |
|
|
|
654,404 |
|
|
|
|
|
|
687,449 |
|
|
|||||
|
Tax-equivalent adjustment |
|
|
|
1,556 |
|
|
|
|
|
|
1,568 |
|
|
|||||
|
Net interest earnings |
|
|
$ |
655,960 |
|
|
|
|
|
$ |
689,017 |
|
|
|||||
|
Interest spread |
|
|
|
|
2.89 |
% |
|
|
|
|
|
3.07 |
% |
|||||
|
Net interest margin |
|
|
|
|
3.14 |
% |
|
|
|
|
|
3.28 |
% |
|||||
|
Net interest margin tax equivalent (6) |
|
|
|
|
3.15 |
% |
|
|
|
|
|
3.29 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
(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 3.34% and 3.27% for the twelve months ended December 31, 2024 and 2023, respectively. |
||||||||||||||||||
|
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the twelve months ended December 31, 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) |
|
|
|
|
|
|
|
|
|
||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||
|
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
||||||
|
Loans and leases held for investment |
|
|
|
|
|
|
|
|
|
||||||
|
Commercial: |
|
|
|
|
|
|
|
|
|
||||||
|
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
||||||
|
Specialized lending |
$ |
5,842,420 |
|
$ |
5,468,507 |
|
$ |
5,528,745 |
|
$ |
5,104,405 |
|
$ |
5,006,693 |
|
|
Other commercial & industrial (1) |
|
1,062,631 |
|
|
1,087,222 |
|
|
1,092,146 |
|
|
1,113,517 |
|
|
1,162,317 |
|
|
Mortgage finance |
|
1,440,847 |
|
|
1,367,617 |
|
|
1,122,812 |
|
|
1,071,146 |
|
|
1,014,742 |
|
|
Multifamily |
|
2,252,246 |
|
|
2,115,978 |
|
|
2,067,332 |
|
|
2,123,675 |
|
|
2,138,622 |
|
|
Commercial real estate owner occupied |
|
1,100,944 |
|
|
981,904 |
|
|
805,779 |
|
|
806,278 |
|
|
797,319 |
|
|
Commercial real estate non-owner occupied |
|
1,359,130 |
|
|
1,326,591 |
|
|
1,202,606 |
|
|
1,182,084 |
|
|
1,177,650 |
|
|
Construction |
|
147,209 |
|
|
174,509 |
|
|
163,409 |
|
|
185,601 |
|
|
166,393 |
|
|
Total commercial loans and leases |
|
13,205,427 |
|
|
12,522,328 |
|
|
11,982,829 |
|
|
11,586,706 |
|
|
11,463,736 |
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
||||||
|
Residential |
|
496,559 |
|
|
500,786 |
|
|
481,503 |
|
|
482,537 |
|
|
484,435 |
|
|
Manufactured housing |
|
33,123 |
|
|
34,481 |
|
|
35,901 |
|
|
37,382 |
|
|
38,670 |
|
|
Installment: |
|
|
|
|
|
|
|
|
|
||||||
|
Personal |
|
463,854 |
|
|
453,739 |
|
|
474,481 |
|
|
492,892 |
|
|
555,533 |
|
|
Other |
|
249,799 |
|
|
266,362 |
|
|
282,201 |
|
|
299,714 |
|
|
319,393 |
|
|
Total installment loans |
|
713,653 |
|
|
720,101 |
|
|
756,682 |
|
|
792,606 |
|
|
874,926 |
|
|
Total consumer loans |
|
1,243,335 |
|
|
1,255,368 |
|
|
1,274,086 |
|
|
1,312,525 |
|
|
1,398,031 |
|
|
Total loans and leases held for investment |
$ |
14,448,762 |
|
$ |
13,777,696 |
|
$ |
13,256,915 |
|
$ |
12,899,231 |
|
$ |
12,861,767 |
|
|
Loans held for sale |
|
|
|
|
|
|
|
|
|
||||||
|
Residential |
$ |
1,836 |
|
$ |
2,523 |
|
$ |
2,684 |
|
$ |
870 |
|
$ |
1,215 |
|
|
Installment: |
|
|
|
|
|
|
|
|
|
||||||
|
Personal |
|
40,903 |
|
|
55,799 |
|
|
125,598 |
|
|
137,755 |
|
|
151,040 |
|
|
Other |
|
162,055 |
|
|
217,098 |
|
|
247,442 |
|
|
219,015 |
|
|
188,062 |
|
|
Total installment loans |
|
202,958 |
|
|
272,897 |
|
|
373,040 |
|
|
356,770 |
|
|
339,102 |
|
|
Total loans held for sale |
$ |
204,794 |
|
$ |
275,420 |
|
$ |
375,724 |
|
$ |
357,640 |
|
$ |
340,317 |
|
|
Total loans and leases portfolio |
$ |
14,653,556 |
|
$ |
14,053,116 |
|
$ |
13,632,639 |
|
$ |
13,256,871 |
|
$ |
13,202,084 |
|
|
(1) |
Includes PPP loans. |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||
|
PERIOD END DEPOSIT COMPOSITION – UNAUDITED |
|||||||||||||||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||
|
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Demand, non-interest bearing |
$ |
5,608,288 |
|
$ |
4,670,809 |
|
$ |
4,474,862 |
|
$ |
4,688,880 |
|
$ |
4,422,494 |
|
|
Demand, interest bearing |
|
5,553,698 |
|
|
5,606,500 |
|
|
5,894,056 |
|
|
5,661,775 |
|
|
5,580,527 |
|
|
Total demand deposits |
|
11,161,986 |
|
|
10,277,309 |
|
|
10,368,918 |
|
|
10,350,655 |
|
|
10,003,021 |
|
|
Savings |
|
1,131,819 |
|
|
1,399,968 |
|
|
1,573,661 |
|
|
2,080,374 |
|
|
1,402,941 |
|
|
Money market |
|
3,844,451 |
|
|
3,961,028 |
|
|
3,539,815 |
|
|
3,347,843 |
|
|
3,226,395 |
|
|
Time deposits |
|
2,708,205 |
|
|
2,431,084 |
|
|
2,195,699 |
|
|
2,182,511 |
|
|
3,287,879 |
|
|
Total deposits |
$ |
18,846,461 |
|
$ |
18,069,389 |
|
$ |
17,678,093 |
|
$ |
17,961,383 |
|
$ |
17,920,236 |
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
|
ASSET QUALITY – UNAUDITED |
|||||||||||||||||||||||||||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
As of December 31, 2024 |
|
As of September 30, 2024 |
|
As of December 31, 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) |
$ |
7,024,770 |
|
$ |
29,379 |
|
0.42 |
% |
|
$ |
6,672,933 |
|
$ |
25,191 |
|
0.38 |
% |
|
$ |
6,285,840 |
|
$ |
23,503 |
|
0.37 |
% |
|
|
Multifamily |
|
2,252,246 |
|
|
18,511 |
|
0.82 |
% |
|
|
2,115,978 |
|
|
18,090 |
|
0.85 |
% |
|
|
2,138,622 |
|
|
16,343 |
|
0.76 |
% |
|
|
Commercial real estate owner occupied |
|
1,100,944 |
|
|
10,755 |
|
0.98 |
% |
|
|
981,904 |
|
|
10,913 |
|
1.11 |
% |
|
|
797,319 |
|
|
9,882 |
|
1.24 |
% |
|
|
Commercial real estate non-owner occupied |
|
1,359,130 |
|
|
17,405 |
|
1.28 |
% |
|
|
1,326,591 |
|
|
17,303 |
|
1.30 |
% |
|
|
1,177,650 |
|
|
16,859 |
|
1.43 |
% |
|
|
Construction |
|
147,209 |
|
|
1,250 |
|
0.85 |
% |
|
|
174,509 |
|
|
1,606 |
|
0.92 |
% |
|
|
166,393 |
|
|
1,482 |
|
0.89 |
% |
|
|
Total commercial loans and leases receivable |
|
11,884,299 |
|
|
77,300 |
|
0.65 |
% |
|
|
11,271,915 |
|
|
73,103 |
|
0.65 |
% |
|
|
10,565,824 |
|
|
68,069 |
|
0.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Residential |
|
496,559 |
|
|
5,968 |
|
1.20 |
% |
|
|
500,786 |
|
|
5,838 |
|
1.17 |
% |
|
|
484,435 |
|
|
6,586 |
|
1.36 |
% |
|
|
Manufactured housing |
|
33,123 |
|
|
3,829 |
|
11.56 |
% |
|
|
34,481 |
|
|
4,080 |
|
11.83 |
% |
|
|
38,670 |
|
|
4,239 |
|
10.96 |
% |
|
|
Installment |
|
713,653 |
|
|
49,678 |
|
6.96 |
% |
|
|
720,101 |
|
|
50,137 |
|
6.96 |
% |
|
|
874,926 |
|
|
56,417 |
|
6.45 |
% |
|
|
Total consumer loans receivable |
|
1,243,335 |
|
|
59,475 |
|
4.78 |
% |
|
|
1,255,368 |
|
|
60,055 |
|
4.78 |
% |
|
|
1,398,031 |
|
|
67,242 |
|
4.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans and leases receivable held for investment |
|
13,127,634 |
|
|
136,775 |
|
1.04 |
% |
|
|
12,527,283 |
|
|
133,158 |
|
1.06 |
% |
|
|
11,963,855 |
|
|
135,311 |
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans receivable, mortgage finance, at fair value |
|
1,321,128 |
|
|
— |
|
— |
% |
|
|
1,250,413 |
|
|
— |
|
— |
% |
|
|
897,912 |
|
|
— |
|
— |
% |
|
|
Loans held for sale |
|
204,794 |
|
|
— |
|
— |
% |
|
|
275,420 |
|
|
— |
|
— |
% |
|
|
340,317 |
|
|
— |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total loans and leases portfolio |
$ |
14,653,556 |
|
$ |
136,775 |
|
0.93 |
% |
|
$ |
14,053,116 |
|
$ |
133,158 |
|
0.95 |
% |
|
$ |
13,202,084 |
|
$ |
135,311 |
|
1.02 |
% |
|
|
(1) |
Includes PPP loans. |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
|
ASSET QUALITY – UNAUDITED |
|||||||||||||||||||||||||||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
As of December 31, 2024 |
|
As of September 30, 2024 |
|
As of December 31, 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) |
$ |
4,041 |
|
0.06 |
% |
|
727.02 |
% |
|
$ |
4,615 |
|
0.07 |
% |
|
545.85 |
% |
|
$ |
4,436 |
|
0.07 |
% |
|
529.82 |
% |
|
|
Multifamily |
|
11,834 |
|
0.53 |
% |
|
156.42 |
% |
|
|
11,834 |
|
0.56 |
% |
|
152.86 |
% |
|
|
— |
|
— |
% |
|
— |
% |
|
|
Commercial real estate owner occupied |
|
8,090 |
|
0.73 |
% |
|
132.94 |
% |
|
|
8,613 |
|
0.88 |
% |
|
126.70 |
% |
|
|
5,869 |
|
0.74 |
% |
|
168.38 |
% |
|
|
Commercial real estate non-owner occupied |
|
354 |
|
0.03 |
% |
|
4916.67 |
% |
|
|
763 |
|
0.06 |
% |
|
2267.76 |
% |
|
|
— |
|
— |
% |
|
— |
% |
|
|
Construction |
|
— |
|
— |
% |
|
— |
% |
|
|
— |
|
— |
% |
|
— |
% |
|
|
— |
|
— |
% |
|
— |
% |
|
|
Total commercial loans and leases receivable |
|
24,319 |
|
0.20 |
% |
|
317.86 |
% |
|
|
25,825 |
|
0.23 |
% |
|
283.07 |
% |
|
|
10,305 |
|
0.10 |
% |
|
660.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Residential |
|
8,714 |
|
1.75 |
% |
|
68.49 |
% |
|
|
7,997 |
|
1.60 |
% |
|
73.00 |
% |
|
|
6,802 |
|
1.40 |
% |
|
96.82 |
% |
|
|
Manufactured housing |
|
1,852 |
|
5.59 |
% |
|
206.75 |
% |
|
|
1,869 |
|
5.42 |
% |
|
218.30 |
% |
|
|
2,331 |
|
6.03 |
% |
|
181.85 |
% |
|
|
Installment |
|
5,613 |
|
0.79 |
% |
|
885.05 |
% |
|
|
6,328 |
|
0.88 |
% |
|
792.30 |
% |
|
|
7,211 |
|
0.82 |
% |
|
782.37 |
% |
|
|
Total consumer loans receivable |
|
16,179 |
|
1.30 |
% |
|
367.61 |
% |
|
|
16,194 |
|
1.29 |
% |
|
370.85 |
% |
|
|
16,344 |
|
1.17 |
% |
|
411.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans and leases receivable |
|
40,498 |
|
0.31 |
% |
|
337.73 |
% |
|
|
42,019 |
|
0.34 |
% |
|
316.90 |
% |
|
|
26,649 |
|
0.22 |
% |
|
507.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans receivable, mortgage finance, at fair value |
|
— |
|
— |
% |
|
— |
% |
|
|
— |
|
— |
% |
|
— |
% |
|
|
— |
|
— |
% |
|
— |
% |
|
|
Loans held for sale |
|
2,777 |
|
1.36 |
% |
|
— |
% |
|
|
5,307 |
|
1.93 |
% |
|
— |
% |
|
|
461 |
|
0.14 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total loans and leases portfolio |
$ |
43,275 |
|
0.30 |
% |
|
316.06 |
% |
|
$ |
47,326 |
|
0.34 |
% |
|
281.36 |
% |
|
$ |
27,110 |
|
0.21 |
% |
|
499.12 |
% |
|
|
(1) |
Includes PPP loans. |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
|
NET CHARGE-OFFS/(RECOVERIES) – UNAUDITED |
|||||||||||||||||||||||||||
|
(Dollars in thousands) |
|
||||||||||||||||||||||||||
|
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Twelve Months Ended December 31, |
||||||||||||||||
|
|
2024 |
|
2024 |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||
|
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial & industrial, including specialized lending |
$ |
3,653 |
|
|
$ |
5,056 |
|
|
$ |
5,665 |
|
|
$ |
3,672 |
|
$ |
5,282 |
|
|
$ |
18,046 |
|
|
$ |
8,443 |
|
|
|
Multifamily |
|
— |
|
|
|
2,167 |
|
|
|
1,433 |
|
|
|
473 |
|
|
127 |
|
|
|
4,073 |
|
|
|
3,574 |
|
|
|
Commercial real estate owner occupied |
|
339 |
|
|
|
4 |
|
|
|
— |
|
|
|
22 |
|
|
— |
|
|
|
365 |
|
|
|
5 |
|
|
|
Commercial real estate non-owner occupied |
|
145 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(288 |
) |
|
|
145 |
|
|
|
4,212 |
|
|
|
Construction |
|
— |
|
|
|
(3 |
) |
|
|
(7 |
) |
|
|
— |
|
|
— |
|
|
|
(10 |
) |
|
|
(116 |
) |
|
|
Residential |
|
(18 |
) |
|
|
(21 |
) |
|
|
(20 |
) |
|
|
18 |
|
|
(1 |
) |
|
|
(41 |
) |
|
|
34 |
|
|
|
Installment |
|
10,493 |
|
|
|
9,841 |
|
|
|
11,640 |
|
|
|
13,783 |
|
|
12,202 |
|
|
|
45,757 |
|
|
|
52,883 |
|
|
|
Total net charge-offs (recoveries) from loans held for investment |
$ |
14,612 |
|
|
$ |
17,044 |
|
|
$ |
18,711 |
|
|
$ |
17,968 |
|
$ |
17,322 |
|
|
$ |
68,335 |
|
|
$ |
69,035 |
||
|
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. |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||||||||||||||||||||||||||||
| Core Earnings and Adjusted Core Earnings – Customers Bancorp |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 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 |
$ |
23,266 |
|
$ |
0.71 |
|
|
$ |
42,937 |
|
$ |
1.31 |
|
|
$ |
54,300 |
|
$ |
1.66 |
|
|
$ |
45,926 |
$ |
1.40 |
|
$ |
58,223 |
|
$ |
1.79 |
|
$ |
166,429 |
|
$ |
5.09 |
|
|
$ |
235,448 |
$ |
7.32 |
|
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Severance expense |
|
1,198 |
|
|
0.04 |
|
|
|
540 |
|
|
0.02 |
|
|
|
1,928 |
|
|
0.06 |
|
|
|
— |
|
— |
|
|
473 |
|
|
0.01 |
|
|
3,666 |
|
|
0.11 |
|
|
|
1,251 |
|
0.04 |
|
|
Impairments on fixed assets and leases |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
98 |
|
0.00 |
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,914 |
|
0.12 |
|
|
Legal settlement |
|
157 |
|
|
0.00 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
157 |
|
|
0.00 |
|
|
|
— |
|
— |
|
|
(Gains) losses on investment securities |
|
20,035 |
|
|
0.62 |
|
|
|
(322 |
) |
|
(0.01 |
) |
|
|
561 |
|
|
0.02 |
|
|
|
57 |
|
0.00 |
|
|
(85 |
) |
|
0.00 |
|
|
20,331 |
|
|
0.62 |
|
|
|
407 |
|
0.01 |
|
|
Derivative credit valuation adjustment |
|
(306 |
) |
|
(0.01 |
) |
|
|
185 |
|
|
0.01 |
|
|
|
(44 |
) |
|
0.00 |
|
|
|
169 |
|
0.01 |
|
|
267 |
|
|
0.01 |
|
|
4 |
|
|
0.00 |
|
|
|
219 |
|
0.01 |
|
|
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 |
|
|
|
2,755 |
|
0.09 |
|
|
Unrealized (gain) on equity method investments |
|
(292 |
) |
|
(0.01 |
) |
|
|
— |
|
|
— |
|
|
|
(8,316 |
) |
|
(0.25 |
) |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(8,608 |
) |
|
(0.26 |
) |
|
|
— |
|
— |
|
|
Unrealized losses on loans held for sale |
|
110 |
|
|
0.00 |
|
|
|
498 |
|
|
0.02 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
608 |
|
|
0.02 |
|
|
|
— |
|
— |
|
|
Core earnings |
$ |
44,168 |
|
$ |
1.36 |
|
|
$ |
43,838 |
|
$ |
1.34 |
|
|
$ |
48,567 |
|
$ |
1.49 |
|
|
$ |
46,532 |
$ |
1.42 |
|
$ |
61,633 |
|
$ |
1.90 |
|
$ |
183,105 |
|
$ |
5.60 |
|
|
$ |
248,233 |
$ |
7.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
One-time non-interest expense items recorded in 2024 (after-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Deposit servicing fees prior to 2024 |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
5,405 |
|
0.16 |
|
|
— |
|
|
— |
|
|
5,405 |
|
|
0.17 |
|
|
|
— |
|
— |
|
|
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 |
) |
|
(0.08 |
) |
|
|
— |
|
— |
|
|
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) |
$ |
44,168 |
|
$ |
1.36 |
|
|
$ |
41,381 |
|
$ |
1.26 |
|
|
$ |
48,567 |
|
$ |
1.49 |
|
|
$ |
55,137 |
$ |
1.68 |
|
$ |
61,633 |
|
$ |
1.90 |
|
$ |
189,253 |
|
$ |
5.78 |
|
|
$ |
248,233 |
$ |
7.72 |
|
|
Core Return on Average Assets and Adjusted Core Return on Average Assets – Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
GAAP net income |
$ |
26,915 |
|
|
$ |
46,743 |
|
|
$ |
58,085 |
|
|
$ |
49,726 |
|
|
$ |
62,092 |
|
|
$ |
181,469 |
|
|
$ |
250,143 |
|
|
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Severance expense |
|
1,198 |
|
|
|
540 |
|
|
|
1,928 |
|
|
|
— |
|
|
|
473 |
|
|
|
3,666 |
|
|
|
1,251 |
|
|
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
98 |
|
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
Legal settlement |
|
157 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
(Gains) losses on investment securities |
|
20,035 |
|
|
|
(322 |
) |
|
|
561 |
|
|
|
57 |
|
|
|
(85 |
) |
|
|
20,331 |
|
|
|
407 |
|
|
|
Derivative credit valuation adjustment |
|
(306 |
) |
|
|
185 |
|
|
|
(44 |
) |
|
|
169 |
|
|
|
267 |
|
|
|
4 |
|
|
|
219 |
|
|
|
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
FDIC special assessment |
|
— |
|
|
|
— |
|
|
|
138 |
|
|
|
380 |
|
|
|
2,755 |
|
|
|
518 |
|
|
|
2,755 |
|
|
|
Unrealized (gain) on equity method investments |
|
(292 |
) |
|
|
— |
|
|
|
(8,316 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,608 |
) |
|
|
— |
|
|
|
Unrealized losses on loans held for sale |
|
110 |
|
|
|
498 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
608 |
|
|
|
— |
|
|
|
Core net income |
$ |
47,817 |
|
|
$ |
47,644 |
|
|
$ |
52,352 |
|
|
$ |
50,332 |
|
|
$ |
65,502 |
|
|
$ |
198,145 |
|
|
$ |
262,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
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) |
$ |
47,817 |
|
|
$ |
45,187 |
|
|
$ |
52,352 |
|
|
$ |
58,937 |
|
|
$ |
65,502 |
|
|
$ |
204,293 |
|
|
$ |
262,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Average total assets |
$ |
22,179,970 |
|
|
$ |
21,230,404 |
|
|
$ |
20,985,203 |
|
|
$ |
21,335,229 |
|
|
$ |
21,252,273 |
|
|
$ |
21,434,190 |
|
|
$ |
21,486,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core return on average assets |
|
0.86 |
% |
|
|
0.89 |
% |
|
|
1.00 |
% |
|
|
0.95 |
% |
|
|
1.22 |
% |
|
|
0.92 |
% |
|
|
1.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted core return on average assets (adjusted for one-time non-interest expense items) |
|
0.86 |
% |
|
|
0.85 |
% |
|
|
1.00 |
% |
|
|
1.11 |
% |
|
|
1.22 |
% |
|
|
0.95 |
% |
|
|
1.22 |
% |
|
|
Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA – Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
GAAP net income |
$ |
26,915 |
|
|
$ |
46,743 |
|
|
$ |
58,085 |
|
|
$ |
49,726 |
|
|
$ |
62,092 |
|
|
$ |
181,469 |
|
|
$ |
250,143 |
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Income tax expense (benefit) |
|
8,946 |
|
|
|
(725 |
) |
|
|
19,032 |
|
|
|
15,651 |
|
|
|
21,796 |
|
|
|
42,904 |
|
|
|
80,597 |
|
|
|
Provision (benefit) for credit losses |
|
21,194 |
|
|
|
17,066 |
|
|
|
18,121 |
|
|
|
17,070 |
|
|
|
13,523 |
|
|
|
73,451 |
|
|
|
74,611 |
|
|
|
Provision (benefit) for credit losses on unfunded commitments |
|
(664 |
) |
|
|
642 |
|
|
|
1,594 |
|
|
|
430 |
|
|
|
(136 |
) |
|
|
2,002 |
|
|
|
(112 |
) |
|
|
Severance expense |
|
1,595 |
|
|
|
659 |
|
|
|
2,560 |
|
|
|
— |
|
|
|
639 |
|
|
|
4,814 |
|
|
|
1,630 |
|
|
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
Legal settlement |
|
209 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
209 |
|
|
|
— |
|
|
|
(Gains) losses on investment securities |
|
26,678 |
|
|
|
(394 |
) |
|
|
744 |
|
|
|
75 |
|
|
|
(114 |
) |
|
|
27,103 |
|
|
|
512 |
|
|
|
Derivative credit valuation adjustment |
|
(407 |
) |
|
|
226 |
|
|
|
(58 |
) |
|
|
222 |
|
|
|
361 |
|
|
|
(17 |
) |
|
|
298 |
|
|
|
FDIC special assessment |
|
— |
|
|
|
— |
|
|
|
183 |
|
|
|
500 |
|
|
|
3,723 |
|
|
|
683 |
|
|
|
3,723 |
|
|
|
Unrealized (gain) on equity method investments |
|
(389 |
) |
|
|
— |
|
|
|
(11,041 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,430 |
) |
|
|
— |
|
|
|
Unrealized losses on loans held for sale |
|
147 |
|
|
|
607 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
754 |
|
|
|
— |
|
|
|
Core pre-tax pre-provision net income |
$ |
84,224 |
|
|
$ |
64,824 |
|
|
$ |
89,220 |
|
|
$ |
83,674 |
|
|
$ |
101,884 |
|
|
$ |
321,942 |
|
|
$ |
416,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
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) |
$ |
84,224 |
|
|
$ |
61,827 |
|
|
$ |
89,220 |
|
|
$ |
94,988 |
|
|
$ |
101,884 |
|
|
$ |
330,259 |
|
|
$ |
416,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Average total assets |
$ |
22,179,970 |
|
|
$ |
21,230,404 |
|
|
$ |
20,985,203 |
|
|
$ |
21,335,229 |
|
|
$ |
21,252,273 |
|
|
$ |
21,434,190 |
|
|
$ |
21,486,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core pre-tax pre-provision ROAA |
|
1.51 |
% |
|
|
1.21 |
% |
|
|
1.71 |
% |
|
|
1.58 |
% |
|
|
1.90 |
% |
|
|
1.50 |
% |
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) |
|
1.51 |
% |
|
|
1.16 |
% |
|
|
1.71 |
% |
|
|
1.79 |
% |
|
|
1.90 |
% |
|
|
1.54 |
% |
|
|
1.94 |
% |
|
|
Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity – Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
GAAP net income to common shareholders |
$ |
23,266 |
|
|
$ |
42,937 |
|
|
$ |
54,300 |
|
|
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
166,429 |
|
|
$ |
235,448 |
|
|
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Severance expense |
|
1,198 |
|
|
|
540 |
|
|
|
1,928 |
|
|
|
— |
|
|
|
473 |
|
|
|
3,666 |
|
|
|
1,251 |
|
|
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
98 |
|
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
Legal settlement |
|
157 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
157 |
|
|
|
— |
|
|
|
(Gains) losses on investment securities |
|
20,035 |
|
|
|
(322 |
) |
|
|
561 |
|
|
|
57 |
|
|
|
(85 |
) |
|
|
20,331 |
|
|
|
407 |
|
|
|
Derivative credit valuation adjustment |
|
(306 |
) |
|
|
185 |
|
|
|
(44 |
) |
|
|
169 |
|
|
|
267 |
|
|
|
4 |
|
|
|
219 |
|
|
|
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
FDIC special assessment |
|
— |
|
|
|
— |
|
|
|
138 |
|
|
|
380 |
|
|
|
2,755 |
|
|
|
518 |
|
|
|
2,755 |
|
|
|
Unrealized (gain) on equity method investments |
|
(292 |
) |
|
|
— |
|
|
|
(8,316 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,608 |
) |
|
|
— |
|
|
|
Unrealized losses on loans held for sale |
|
110 |
|
|
|
498 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
608 |
|
|
|
— |
|
|
|
Core earnings |
$ |
44,168 |
|
|
$ |
43,838 |
|
|
$ |
48,567 |
|
|
$ |
46,532 |
|
|
$ |
61,633 |
|
|
$ |
183,105 |
|
|
$ |
248,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
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) |
$ |
44,168 |
|
|
$ |
41,381 |
|
|
$ |
48,567 |
|
|
$ |
55,137 |
|
|
$ |
61,633 |
|
|
$ |
189,253 |
|
|
$ |
248,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Average total common shareholders’ equity |
$ |
1,683,838 |
|
|
$ |
1,636,242 |
|
|
$ |
1,576,595 |
|
|
$ |
1,529,211 |
|
|
$ |
1,449,728 |
|
|
$ |
1,606,764 |
|
|
$ |
1,358,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core return on average common equity |
|
10.44 |
% |
|
|
10.66 |
% |
|
|
12.39 |
% |
|
|
12.24 |
% |
|
|
16.87 |
% |
|
|
11.40 |
% |
|
|
18.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted core return on average common equity (adjusted for one-time non-interest expense items) |
|
10.44 |
% |
|
|
10.06 |
% |
|
|
12.39 |
% |
|
|
14.50 |
% |
|
|
16.87 |
% |
|
|
11.78 |
% |
|
|
18.27 |
% |
|
|
Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE – Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
GAAP net income to common shareholders |
$ |
23,266 |
|
|
$ |
42,937 |
|
|
$ |
54,300 |
|
|
$ |
45,926 |
|
|
$ |
58,223 |
|
|
$ |
166,429 |
|
|
$ |
235,448 |
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Income tax expense (benefit) |
|
8,946 |
|
|
|
(725 |
) |
|
|
19,032 |
|
|
|
15,651 |
|
|
|
21,796 |
|
|
|
42,904 |
|
|
|
80,597 |
|
|
|
Provision (benefit) for credit losses |
|
21,194 |
|
|
|
17,066 |
|
|
|
18,121 |
|
|
|
17,070 |
|
|
|
13,523 |
|
|
|
73,451 |
|
|
|
74,611 |
|
|
|
Provision (benefit) for credit losses on unfunded commitments |
|
(664 |
) |
|
|
642 |
|
|
|
1,594 |
|
|
|
430 |
|
|
|
(136 |
) |
|
|
2,002 |
|
|
|
(112 |
) |
|
|
Severance expense |
|
1,595 |
|
|
|
659 |
|
|
|
2,560 |
|
|
|
— |
|
|
|
639 |
|
|
|
4,814 |
|
|
|
1,630 |
|
|
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
Legal settlement |
|
209 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
209 |
|
|
|
— |
|
|
|
(Gains) losses on investment securities |
|
26,678 |
|
|
|
(394 |
) |
|
|
744 |
|
|
|
75 |
|
|
|
(114 |
) |
|
|
27,103 |
|
|
|
512 |
|
|
|
Derivative credit valuation adjustment |
|
(407 |
) |
|
|
226 |
|
|
|
(58 |
) |
|
|
222 |
|
|
|
361 |
|
|
|
(17 |
) |
|
|
298 |
|
|
|
FDIC special assessment |
|
— |
|
|
|
— |
|
|
|
183 |
|
|
|
500 |
|
|
|
3,723 |
|
|
|
683 |
|
|
|
3,723 |
|
|
|
Unrealized (gain) on equity method investments |
|
(389 |
) |
|
|
— |
|
|
|
(11,041 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,430 |
) |
|
|
— |
|
|
|
Unrealized losses on loans held for sale |
|
147 |
|
|
|
607 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
754 |
|
|
|
— |
|
|
|
Core pre-tax pre-provision net income available to common shareholders |
$ |
80,575 |
|
|
$ |
61,018 |
|
|
$ |
85,435 |
|
|
$ |
79,874 |
|
|
$ |
98,015 |
|
|
$ |
306,902 |
|
|
$ |
401,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
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 |
$ |
80,575 |
|
|
$ |
58,021 |
|
|
$ |
85,435 |
|
|
$ |
91,188 |
|
|
$ |
98,015 |
|
|
$ |
315,219 |
|
|
$ |
401,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Average total common shareholders’ equity |
$ |
1,683,838 |
|
|
$ |
1,636,242 |
|
|
$ |
1,576,595 |
|
|
$ |
1,529,211 |
|
|
$ |
1,449,728 |
|
|
$ |
1,606,764 |
|
|
$ |
1,358,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core pre-tax pre-provision ROCE |
|
19.04 |
% |
|
|
14.84 |
% |
|
|
21.79 |
% |
|
|
21.01 |
% |
|
|
26.82 |
% |
|
|
19.10 |
% |
|
|
29.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items) |
|
19.04 |
% |
|
|
14.11 |
% |
|
|
21.79 |
% |
|
|
23.98 |
% |
|
|
26.82 |
% |
|
|
19.62 |
% |
|
|
29.58 |
% |
|
|
Core Efficiency Ratio and Adjusted Core Efficiency Ratio – Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
GAAP net interest income |
$ |
167,821 |
|
|
$ |
158,545 |
|
|
$ |
167,653 |
|
|
$ |
160,385 |
|
|
$ |
172,506 |
|
|
$ |
654,404 |
|
|
$ |
687,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
GAAP non-interest income |
$ |
(391 |
) |
|
$ |
8,557 |
|
|
$ |
31,037 |
|
|
$ |
21,231 |
|
|
$ |
18,672 |
|
|
$ |
60,434 |
|
|
$ |
70,565 |
|
|
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
(Gains) losses on investment securities |
|
26,678 |
|
|
|
(394 |
) |
|
|
744 |
|
|
|
75 |
|
|
|
(114 |
) |
|
|
27,103 |
|
|
|
512 |
|
|
|
Derivative credit valuation adjustment |
|
(407 |
) |
|
|
226 |
|
|
|
(58 |
) |
|
|
222 |
|
|
|
361 |
|
|
|
(17 |
) |
|
|
298 |
|
|
|
Unrealized (gain) on equity method investments |
|
(389 |
) |
|
|
— |
|
|
|
(11,041 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,430 |
) |
|
|
— |
|
|
|
Unrealized losses on loans held for sale |
|
147 |
|
|
|
607 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
754 |
|
|
|
— |
|
|
|
Core non-interest income |
|
25,638 |
|
|
|
8,996 |
|
|
|
20,682 |
|
|
|
21,528 |
|
|
|
18,919 |
|
|
|
76,844 |
|
|
|
76,412 |
|
|
|
Core revenue |
$ |
193,459 |
|
|
$ |
167,541 |
|
|
$ |
188,335 |
|
|
$ |
181,913 |
|
|
$ |
191,425 |
|
|
$ |
731,248 |
|
|
$ |
763,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
GAAP non-interest expense |
$ |
110,375 |
|
|
$ |
104,018 |
|
|
$ |
103,452 |
|
|
$ |
99,169 |
|
|
$ |
93,767 |
|
|
$ |
417,014 |
|
|
$ |
352,663 |
|
|
|
Severance expense |
|
(1,595 |
) |
|
|
(659 |
) |
|
|
(2,560 |
) |
|
|
— |
|
|
|
(639 |
) |
|
|
(4,814 |
) |
|
|
(1,630 |
) |
|
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(124 |
) |
|
|
FDIC special assessment |
|
— |
|
|
|
— |
|
|
|
(183 |
) |
|
|
(500 |
) |
|
|
(3,723 |
) |
|
|
(683 |
) |
|
|
(3,723 |
) |
|
|
Legal settlement |
|
(209 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(209 |
) |
|
|
— |
|
|
|
Core non-interest expense |
$ |
108,571 |
|
|
$ |
103,359 |
|
|
$ |
100,709 |
|
|
$ |
98,669 |
|
|
$ |
89,405 |
|
|
$ |
411,308 |
|
|
$ |
347,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
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 |
$ |
108,571 |
|
|
$ |
106,356 |
|
|
$ |
100,709 |
|
|
$ |
87,355 |
|
|
$ |
89,405 |
|
|
$ |
402,991 |
|
|
$ |
347,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core efficiency ratio (1) |
|
56.12 |
% |
|
|
61.69 |
% |
|
|
53.47 |
% |
|
|
54.24 |
% |
|
|
46.70 |
% |
|
|
56.25 |
% |
|
|
45.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted core efficiency ratio(adjusted for one-time non-interest expense items) (2) |
|
56.12 |
% |
|
|
63.48 |
% |
|
|
53.47 |
% |
|
|
48.02 |
% |
|
|
46.70 |
% |
|
|
55.11 |
% |
|
|
45.45 |
% |
|
|
(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 |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
|||||||||||||||
|
GAAP non-interest expense |
$ |
110,375 |
|
|
$ |
104,018 |
|
|
$ |
103,452 |
|
|
$ |
99,169 |
|
|
$ |
93,767 |
|
|
$ |
417,014 |
|
|
$ |
352,663 |
|
|
|
Severance expense |
|
(1,595 |
) |
|
|
(659 |
) |
|
|
(2,560 |
) |
|
|
— |
|
|
|
(639 |
) |
|
|
(4,814 |
) |
|
|
(1,630 |
) |
|
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(124 |
) |
|
|
FDIC special assessment |
|
— |
|
|
|
— |
|
|
|
(183 |
) |
|
|
(500 |
) |
|
|
(3,723 |
) |
|
|
(683 |
) |
|
|
(3,723 |
) |
|
|
Legal settlement |
|
(209 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(209 |
) |
|
|
— |
|
|
|
Core non-interest expense |
$ |
108,571 |
|
|
$ |
103,359 |
|
|
$ |
100,709 |
|
|
$ |
98,669 |
|
|
$ |
89,405 |
|
|
$ |
411,308 |
|
|
$ |
347,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
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 |
$ |
108,571 |
|
|
$ |
106,356 |
|
|
$ |
100,709 |
|
|
$ |
87,355 |
|
|
$ |
89,405 |
|
|
$ |
402,991 |
|
|
$ |
347,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Average total assets |
$ |
22,179,970 |
|
|
$ |
21,230,404 |
|
|
$ |
20,985,203 |
|
|
$ |
21,335,229 |
|
|
$ |
21,252,273 |
|
|
$ |
21,434,190 |
|
|
$ |
21,486,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core non-interest expense to average total assets |
|
1.95 |
% |
|
|
1.94 |
% |
|
|
1.93 |
% |
|
|
1.86 |
% |
|
|
1.67 |
% |
|
|
1.92 |
% |
|
|
1.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items) |
|
1.95 |
% |
|
|
1.99 |
% |
|
|
1.93 |
% |
|
|
1.65 |
% |
|
|
1.67 |
% |
|
|
1.88 |
% |
|
|
1.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Tangible Common Equity to Tangible Assets – Customers Bancorp |
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
(Dollars in thousands, except per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|||||||||||
|
GAAP total shareholders’ equity |
$ |
1,836,683 |
|
|
$ |
1,801,180 |
|
|
$ |
1,746,865 |
|
|
$ |
1,691,617 |
|
|
$ |
1,638,394 |
|
|
|
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 |
$ |
1,695,260 |
|
|
$ |
1,659,757 |
|
|
$ |
1,605,442 |
|
|
$ |
1,550,194 |
|
|
$ |
1,496,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
GAAP total assets |
$ |
22,308,241 |
|
|
$ |
21,456,082 |
|
|
$ |
20,942,975 |
|
|
$ |
21,347,367 |
|
|
$ |
21,316,265 |
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Goodwill and other intangibles |
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
Tangible assets |
$ |
22,304,612 |
|
|
$ |
21,452,453 |
|
|
$ |
20,939,346 |
|
|
$ |
21,343,738 |
|
|
$ |
21,312,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Tangible common equity to tangible assets |
|
7.6 |
% |
|
|
7.7 |
% |
|
|
7.7 |
% |
|
|
7.3 |
% |
|
|
7.0 |
% |
|
|
Tangible Book Value per Common Share – Customers Bancorp |
|
|||||||||||||||||||
|
|
|
|||||||||||||||||||
|
(Dollars in thousands, except share and per share data) |
Q4 2024 |
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|||||||||||
|
GAAP total shareholders’ equity |
$ |
1,836,683 |
|
|
$ |
1,801,180 |
|
|
$ |
1,746,865 |
|
|
$ |
1,691,617 |
|
|
$ |
1,638,394 |
|
|
|
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 |
$ |
1,695,260 |
|
|
$ |
1,659,757 |
|
|
$ |
1,605,442 |
|
|
$ |
1,550,194 |
|
|
$ |
1,496,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Common shares outstanding |
|
31,346,507 |
|
|
|
31,342,107 |
|
|
|
31,667,655 |
|
|
|
31,521,931 |
|
|
|
31,440,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Tangible book value per common share |
$ |
54.08 |
|
|
$ |
52.96 |
|
|
$ |
50.70 |
|
|
$ |
49.18 |
|
|
$ |
47.61 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122783498/en/
Jordan Baucum, Head of Corporate Communications 951-608-8314
KEYWORDS: Pennsylvania United States North America
INDUSTRY KEYWORDS: Banking Professional Services Finance
MEDIA:
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