FT Markets Data
Customers Bancorp Inc

Customers Bancorp Reports Results for First Quarter 2025

WEST READING, Pa.--(BUSINESS WIRE)--Apr. 24, 2025-- Customers Bancorp, Inc. (NYSE:CUBI):

First Quarter 2025 Highlights

  • Q1 2025 net income available to common shareholders was $9.5 million, or $0.29 per diluted share; ROAA was 0.23% and ROCE was 2.23%.
  • Q1 2025 core earnings*1 were $50.0 million, or $1.54 per diluted share; Core ROAA* was 0.97% and Core ROCE* was 11.72%.
  • Q1 2025 net income available to common shareholders included $39.9 million of post-tax losses in connection with a securities portfolio repositioning to improve structural liquidity, enhance credit profile, reduce asset sensitivity and benefit margin.
  • Total loans and leases held for investment grew by $611.7 million, or 4.2%, in Q1 2025 from Q4 2024.
  • Total deposits increased by $86.5 million or 0.5% in Q1 2025 from Q4 2024.
  • Non-interest bearing demand deposits decreased $55.7 million or 1.0% in Q1 2025 from Q4 2024; non-interest bearing deposits represented 29.3% of total deposits at March 31, 2025.
  • Q1 2025 average cost of deposits was 2.82% compared to Q4 2024 of 3.07%, a decrease of 25 basis points.
  • Q1 2025 net interest margin, tax equivalent (“NIM”) was 3.13%, compared to Q4 2024 NIM of 3.11%, an increase of 2 basis points primarily due to lower deposit costs.
  • Ratio of non-performing assets to total assets was 0.26% at March 31, 2025 compared to 0.25% at December 31, 2024.
  • Q1 2025 provision for credit losses was $28.3 million compared to $21.2 million in Q4 2024
  • The allowance for credit losses on loans and leases equaled 324% of non-performing loans at March 31, 2025, compared to 316% at December 31, 2024.
  • CET 1 ratio of 11.7%2 at March 31, 2025, compared to 12.1% at December 31, 2024.
  • TCE / TA ratio* of 7.7% at March 31, 2025, compared to 7.6% at December 31, 2024.
  • Q1 2025 book value per share and tangible book value per share* both grew by approximately $0.66, or 1.2% over Q4 2024, or 4.9% annualized, with a tangible book value per share* of $54.74 at March 31, 2025. This was driven by current quarter earnings and a decrease in AOCI losses of $28.9 million.

 

 

 

 

 

*

Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

1

Excludes pre-tax impairment loss on investment securities of $51.3 million, unrealized losses on loans held for sale of $0.7 million, derivative credit valuation adjustment of $0.3 million and gains on investment securities of $0.2 million.

2

Regulatory capital ratios as of March 31, 2025 are estimates.

CEO Commentary

“We are pleased to share our first quarter results that highlight the company’s continuing incredible deposit transformation and underscore our success in growing franchise value. Though there is currently a high degree of economic uncertainty and volatility in the macro environment, we believe that Customers’ differentiated business model positions us well to navigate these challenges while we remain flexible and responsive to changes in the external environment. And importantly, with our customer-centric mindset and commitment to service provided by our extraordinary colleagues, we are here to serve our clients as the business environment continues to evolve,” said Customers Bancorp Chairman and CEO Jay Sidhu.

“In the first quarter, we once again demonstrated the power of our deposit remix efforts. The impact can be seen in a 24 basis points lower average cost of interest bearing deposits in Q1 2025 compared to last quarter as we continue to improve the quality of our deposit franchise. Non-interest bearing deposits remained at a healthy level of 29.3% of total deposits. As a result of these efforts we had a 25 basis point reduction in our total 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 $2.1 billion or 11% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by 53% since year end 2022, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. 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 Q1 2025 GAAP earnings were $9.5 million, or $0.29 per diluted share, and core earnings* were $50.0 million, or $1.54 per diluted share. First quarter GAAP results include an impact in connection with a balance sheet optimization through a securities portfolio repositioning that the Bank decided to undertake as of March 31, 2025 designed to enhance structural liquidity, extend duration and benefit margin while reducing the credit sensitive portion of the portfolio given the volatile and uncertain macroeconomic environment. Even with the impact of the balance sheet optimization transaction and balance sheet growth we experienced during the quarter, our TCE / TA ratio* increased by 9 basis points. We maintain a strong liquidity position, with $8.7 billion of liquidity immediately available, which covers approximately 155% of uninsured deposits1 and our loan to deposit ratio was 80%, at March 31, 2025. We continue to focus on loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $611.7 million driven by strong commercial loan growth of $460.3 million led by growth in our existing specialized lending verticals. Asset quality remains strong with our NPA ratio at just 0.26% of total assets and reserve levels are robust at 324% of total non-performing loans at the end of Q1 2025. 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 $54.74. 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,” Jay Sidhu continued.

 

 

 

 

 

*

Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

1

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 $198.9 million.

Financial Highlights

(Dollars in thousands, except per share data)

 

At or Three Months Ended

 

Increase (Decrease)

 

March 31,
2025

 

December 31,
2024

 

Profitability Metrics:

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

9,523

 

 

$

23,266

 

 

$

(13,743

)

 

(59.1

)%

Diluted earnings per share

 

$

0.29

 

 

$

0.71

 

 

$

(0.42

)

 

(59.2

)%

Core earnings*

 

$

50,002

 

 

$

44,168

 

 

$

5,834

 

 

13.2

%

Adjusted core earnings*

 

$

50,002

 

 

$

44,168

 

 

$

5,834

 

 

13.2

%

Core earnings per share*

 

$

1.54

 

 

$

1.36

 

 

$

0.18

 

 

13.2

%

Adjusted core earnings per share*

 

$

1.54

 

 

$

1.36

 

 

$

0.18

 

 

13.2

%

Return on average assets (“ROAA”)

 

 

0.23

%

 

 

0.48

%

 

 

(0.25

)

 

 

Core ROAA*

 

 

0.97

%

 

 

0.86

%

 

 

0.11

 

 

 

Adjusted core ROAA*

 

 

0.97

%

 

 

0.86

%

 

 

0.11

 

 

 

Return on average common equity (“ROCE”)

 

 

2.23

%

 

 

5.50

%

 

 

(3.27

)

 

 

Core ROCE*

 

 

11.72

%

 

 

10.44

%

 

 

1.28

 

 

 

Adjusted core ROCE*

 

 

11.72

%

 

 

10.44

%

 

 

1.28

 

 

 

Net interest margin, tax equivalent

 

 

3.13

%

 

 

3.11

%

 

 

0.02

 

 

 

Yield on loans (Loan yield)

 

 

6.57

%

 

 

6.78

%

 

 

(0.21

)

 

 

Cost of deposits

 

 

2.82

%

 

 

3.07

%

 

 

(0.25

)

 

 

Efficiency ratio

 

 

52.94

%

 

 

56.86

%

 

 

(3.92

)

 

 

Core efficiency ratio*

 

 

52.69

%

 

 

56.12

%

 

 

(3.43

)

 

 

Adjusted core efficiency ratio*

 

 

52.69

%

 

 

56.12

%

 

 

(3.43

)

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

Total assets

 

$

22,423,044

 

 

$

22,308,241

 

 

$

114,803

 

 

0.5

%

Total cash and investment securities

 

$

6,424,406

 

 

$

6,797,562

 

 

$

(373,156

)

 

(5.5

)%

Total loans and leases

 

$

15,097,968

 

 

$

14,653,556

 

 

$

444,412

 

 

3.0

%

Non-interest bearing demand deposits

 

$

5,552,605

 

 

$

5,608,288

 

 

$

(55,683

)

 

(1.0

)%

Total deposits

 

$

18,932,925

 

 

$

18,846,461

 

 

$

86,464

 

 

0.5

%

Capital Metrics:

 

 

 

 

 

 

 

 

Common Equity to Total Assets

 

 

7.7

%

 

 

7.6

%

 

 

0.1

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

7.7

%

 

 

7.6

%

 

 

0.1

 

 

 

Book Value per common share

 

$

54.85

 

 

$

54.20

 

 

$

0.65

 

 

1.2

%

Tangible Book Value per common share*

 

$

54.74

 

 

$

54.08

 

 

$

0.66

 

 

1.2

%

Common equity Tier 1 capital ratio (1)

 

 

11.7

%

 

 

12.1

%

 

 

(0.4

)

 

 

Total risk based capital ratio (1)

 

 

14.6

%

 

 

14.9

%

 

 

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

(1) Regulatory capital ratios as of March 31, 2025 are estimates.

* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights

(Dollars in thousands, except per share data)

 

At or Three Months Ended

 

Increase (Decrease)

 

March 31,
2025

 

March 31,
2024

 

Profitability Metrics:

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

9,523

 

 

$

45,926

 

 

$

(36,403

)

 

(79.3

)%

Diluted earnings per share

 

$

0.29

 

 

$

1.40

 

 

$

(1.11

)

 

(79.3

)%

Core earnings*

 

$

50,002

 

 

$

46,532

 

 

$

3,470

 

 

7.5

%

Adjusted core earnings*

 

$

50,002

 

 

$

55,137

 

 

$

(5,135

)

 

(9.3

)%

Core earnings per share*

 

$

1.54

 

 

$

1.42

 

 

$

0.12

 

 

8.5

%

Adjusted core earnings per share*

 

$

1.54

 

 

$

1.68

 

 

$

(0.14

)

 

(8.3

)%

Return on average assets (“ROAA”)

 

 

0.23

%

 

 

0.94

%

 

 

(0.71

)

 

 

Core ROAA*

 

 

0.97

%

 

 

0.95

%

 

 

0.02

 

 

 

Adjusted core ROAA*

 

 

0.97

%

 

 

1.11

%

 

 

(0.14

)

 

 

Return on average common equity (“ROCE”)

 

 

2.23

%

 

 

12.08

%

 

 

(9.85

)

 

 

Core ROCE*

 

 

11.72

%

 

 

12.24

%

 

 

(0.52

)

 

 

Adjusted core ROCE*

 

 

11.72

%

 

 

14.50

%

 

 

(2.78

)

 

 

Net interest margin, tax equivalent

 

 

3.13

%

 

 

3.10

%

 

 

0.03

 

 

 

Yield on loans (Loan yield)

 

 

6.57

%

 

 

7.05

%

 

 

(0.48

)

 

 

Cost of deposits

 

 

2.82

%

 

 

3.45

%

 

 

(0.63

)

 

 

Efficiency ratio

 

 

52.94

%

 

 

54.58

%

 

 

(1.64

)

 

 

Core efficiency ratio*

 

 

52.69

%

 

 

54.24

%

 

 

(1.55

)

 

 

Adjusted core efficiency ratio*

 

 

52.69

%

 

 

48.02

%

 

 

4.67

 

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

Total assets

 

$

22,423,044

 

 

$

21,347,367

 

 

$

1,075,677

 

 

5.0

%

Total cash and investment securities

 

$

6,424,406

 

 

$

7,338,025

 

 

$

(913,619

)

 

(12.5

)%

Total loans and leases

 

$

15,097,968

 

 

$

13,256,871

 

 

$

1,841,097

 

 

13.9

%

Non-interest bearing demand deposits

 

$

5,552,605

 

 

$

4,688,880

 

 

$

863,725

 

 

18.4

%

Total deposits

 

$

18,932,925

 

 

$

17,961,383

 

 

$

971,542

 

 

5.4

%

Capital Metrics:

 

 

 

 

 

 

 

 

Common Equity to Total Assets

 

 

7.7

%

 

 

7.3

%

 

 

0.4

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

7.7

%

 

 

7.3

%

 

 

0.4

 

 

 

Book Value per common share

 

$

54.85

 

 

$

49.29

 

 

$

5.56

 

 

11.3

%

Tangible Book Value per common share*

 

$

54.74

 

 

$

49.18

 

 

$

5.56

 

 

11.3

%

Common equity Tier 1 capital ratio (1)

 

 

11.7

%

 

 

12.6

%

 

 

(0.9

)

 

 

Total risk based capital ratio (1)

 

 

14.6

%

 

 

15.9

%

 

 

(1.3

)

 

 

 

 

 

 

 

 

 

 

 

(1) Regulatory capital ratios as of March 31, 2025 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)

March 31,
2025

 

% of
Total

 

December 31,
2024

 

% of
Total

 

March 31,
2024

 

% of
Total

Loans and Leases Held for Investment

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

Specialized lending

$

6,070,093

 

40.3

%

 

$

5,842,420

 

40.4

%

 

$

5,104,405

 

39.6

%

Other commercial & industrial

 

1,062,933

 

7.0

 

 

 

1,062,631

 

7.4

 

 

 

1,113,517

 

8.6

 

Mortgage finance

 

1,477,896

 

9.8

 

 

 

1,440,847

 

10.0

 

 

 

1,071,146

 

8.3

 

Multifamily

 

2,322,123

 

15.4

 

 

 

2,252,246

 

15.6

 

 

 

2,123,675

 

16.5

 

Commercial real estate owner occupied

 

1,139,126

 

7.6

 

 

 

1,100,944

 

7.6

 

 

 

806,278

 

6.3

 

Commercial real estate non-owner occupied

 

1,438,906

 

9.6

 

 

 

1,359,130

 

9.4

 

 

 

1,182,084

 

9.2

 

Construction

 

154,647

 

1.0

 

 

 

147,209

 

1.0

 

 

 

185,601

 

1.3

 

Total commercial loans and leases

 

13,665,724

 

90.7

 

 

 

13,205,427

 

91.4

 

 

 

11,586,706

 

89.8

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential

 

496,772

 

3.3

 

 

 

496,559

 

3.4

 

 

 

482,537

 

3.8

 

Manufactured housing

 

31,775

 

0.2

 

 

 

33,123

 

0.3

 

 

 

37,382

 

0.3

 

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

493,276

 

3.3

 

 

 

463,854

 

3.2

 

 

 

492,892

 

3.8

 

Other

 

372,892

 

2.5

 

 

 

249,799

 

1.7

 

 

 

299,714

 

2.3

 

Total installment loans

 

866,168

 

5.8

 

 

 

713,653

 

4.9

 

 

 

792,606

 

6.1

 

Total consumer loans

 

1,394,715

 

9.3

 

 

 

1,243,335

 

8.6

 

 

 

1,312,525

 

10.2

 

Total loans and leases held for investment

$

15,060,439

 

100.0

%

 

$

14,448,762

 

100.0

%

 

$

12,899,231

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

 

 

 

 

 

 

 

 

 

 

Residential

$

1,465

 

3.9

%

 

$

1,836

 

0.9

%

 

$

870

 

0.2

%

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

36,000

 

95.9

 

 

 

40,903

 

20.0

 

 

 

137,755

 

38.5

 

Other

 

64

 

0.2

 

 

 

162,055

 

79.1

 

 

 

219,015

 

61.3

 

Total installment loans

 

36,064

 

96.1

 

 

 

202,958

 

99.1

 

 

 

356,770

 

99.8

 

Total loans held for sale

$

37,529

 

100.0

%

 

$

204,794

 

100.0

%

 

$

357,640

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

15,097,968

 

 

 

$

14,653,556

 

 

 

$

13,256,871

 

 

Loans and Leases Held for Investment

Loans and leases held for investment were $15.1 billion at March 31, 2025, up $611.7 million, or 4.2%, from December 31, 2024. Specialized lending increased by $227.7 million, or 3.9% quarter-over-quarter, to $6.1 billion. Non-owner occupied commercial real estate loans increased by $79.8 million, or 5.9% to $1.4 billion. Multifamily loans increased by $69.9 million, or 3.1% to $2.3 billion. Mortgage finance loans increased by $37.0 million, or 2.6% to $1.5 billion. Owner-occupied commercial real estate loans increased by $38.2 million, or 3.5% to $1.1 billion. Consumer installment loans increased by $152.5 million, or 21.4% to $866.2 million, inclusive of the transfer of $133.8 million from loans held for sale in Q1 2025 as it elected to retain these loans in connection with the sunsetting of an arrangement with a fintech company, which recently was acquired by a bank.

Loans and leases held for investment of $15.1 billion at March 31, 2025 were up $2.2 billion, or 16.8%, year-over-year. Specialized lending increased by $965.7 million, or 18.9% year-over-year. Mortgage finance loans increased by $406.8 million. Owner-occupied commercial real estate loans increased by $332.8 million. Non-owner occupied commercial real estate loans increased by $256.8 million. Multifamily loans increased by $198.4 million. Consumer installment loans increased $73.6 million, inclusive of the transfer from loans held for sale in Q1 2025. These increases were partially offset by a decrease in other commercial and industrial loans of $50.6 million.

Loans Held for Sale

Loans held for sale decreased $167.3 million quarter-over-quarter, and were $37.5 million at March 31, 2025. In Q1 2025, the Bank transferred $133.8 million of other consumer installment loans from held for sale to held for investment as it elected to retain these loans in connection with the sunsetting of an arrangement with a fintech company, which recently was acquired by a bank, whereby the Bank has been originating and holding these loans prior to sale.

Allowance for Credit Losses on Loans and Leases

The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:

 

At or Three Months Ended

 

Increase
(Decrease)

 

At or Three Months Ended

 

Increase
(Decrease)

(Dollars in thousands)

March 31,
2025

 

December 31,
2024

 

 

March 31,
2025

 

March 31,
2024

 

Allowance for credit losses on loans and leases

$

141,076

 

 

$

136,775

 

 

$

4,301

 

$

141,076

 

 

$

133,296

 

 

$

7,780

 

Provision (benefit) for credit losses on loans and leases

$

21,445

 

 

$

18,229

 

 

$

3,216

 

$

21,445

 

 

$

15,953

 

 

$

5,492

 

Net charge-offs from loans held for investment

$

17,144

 

 

$

14,612

 

 

$

2,532

 

$

17,144

 

 

$

17,968

 

 

$

(824

)

Annualized net charge-offs to average loans and leases

 

0.48

%

 

 

0.41

%

 

 

 

 

0.48

%

 

 

0.55

%

 

 

Coverage of credit loss reserves for loans and leases held for investment

 

1.04

%

 

 

1.04

%

 

 

 

 

1.04

%

 

 

1.12

%

 

 

Net charge-offs increased with $17.1 million in Q1 2025, compared to $14.6 million in Q4 2024, and decreased slightly from $18.0 million in Q1 2024.

Provision (benefit) for Credit Losses

 

Three Months Ended

 

Increase
(Decrease)

 

Three Months Ended

 

Increase
(Decrease)

(Dollars in thousands)

March 31,
2025

 

December 31,
2024

 

 

March 31,
2025

 

March 31,
2024

 

Provision (benefit) for credit losses on loans and leases

$

21,445

 

$

18,229

 

 

$

3,216

 

$

21,445

 

$

15,953

 

$

5,492

Provision (benefit) for credit losses on available for sale debt securities

 

6,852

 

 

2,965

 

 

 

3,887

 

 

6,852

 

 

1,117

 

 

5,735

Provision for credit losses

 

28,297

 

 

21,194

 

 

 

7,103

 

 

28,297

 

 

17,070

 

 

11,227

Provision (benefit) for credit losses on unfunded commitments

 

1,208

 

 

(664

)

 

 

1,872

 

 

1,208

 

 

430

 

 

778

Total provision for credit losses

$

29,505

 

$

20,530

 

 

$

8,975

 

$

29,505

 

$

17,500

 

$

12,005

The provision for credit losses on loans and leases in Q1 2025 was $21.4 million, compared to $18.2 million in Q4 2024. The higher provision in Q1 2025 was primarily due to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q1 2025 was $6.9 million, compared to $3.0 million in Q4 2024.

The provision for credit losses on loans and leases in Q1 2025 was $21.4 million, compared to $16.0 million in Q1 2024. The higher provision in Q1 2025 compared to the year ago period was primarily due to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q1 2025 was $6.9 million compared to $1.1 million in Q1 2024.

Asset Quality

The following table presents asset quality metrics as of the dates indicated:

(Dollars in thousands)

March 31,
2025

 

December 31,
2024

 

Increase
(Decrease)

 

March 31,
2025

 

March 31,
2024

 

Increase
(Decrease)

Non-performing assets (“NPAs”):

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual / non-performing loans (“NPLs”)

$

43,513

 

 

$

43,275

 

 

$

238

 

 

$

43,513

 

 

$

35,654

 

 

$

7,859

 

Non-performing assets

$

57,960

 

 

$

55,807

 

 

$

2,153

 

 

$

57,960

 

 

$

35,753

 

 

$

22,207

 

NPLs to total loans and leases

 

0.29

%

 

 

0.30

%

 

 

 

 

0.29

%

 

 

0.27

%

 

 

Reserves to NPLs

 

324.22

%

 

 

316.06

%

 

 

 

 

324.22

%

 

 

373.86

%

 

 

NPAs to total assets

 

0.26

%

 

 

0.25

%

 

 

 

 

0.26

%

 

 

0.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases (1) risk ratings:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

 

 

 

 

 

 

 

 

 

Pass

$

11,818,846

 

 

$

11,403,930

 

 

$

414,916

 

 

$

11,818,846

 

 

$

10,095,611

 

 

$

1,723,235

 

Special Mention

 

189,155

 

 

 

175,055

 

 

 

14,100

 

 

 

189,155

 

 

 

194,365

 

 

 

(5,210

)

Substandard

 

272,575

 

 

 

282,563

 

 

 

(9,988

)

 

 

272,575

 

 

 

282,163

 

 

 

(9,588

)

Total commercial loans and leases

 

12,280,576

 

 

 

11,861,548

 

 

 

419,028

 

 

 

12,280,576

 

 

 

10,572,139

 

 

 

1,708,437

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

Performing

 

1,242,753

 

 

 

1,227,359

 

 

 

15,394

 

 

 

1,242,753

 

 

 

1,293,457

 

 

 

(50,704

)

Non-performing

 

13,803

 

 

 

15,976

 

 

 

(2,173

)

 

 

13,803

 

 

 

19,068

 

 

 

(5,265

)

Total consumer loans

 

1,256,556

 

 

 

1,243,335

 

 

 

13,221

 

 

 

1,256,556

 

 

 

1,312,525

 

 

 

(55,969

)

Loans and leases receivable (1)

$

13,537,132

 

 

$

13,104,883

 

 

$

432,249

 

 

$

13,537,132

 

 

$

11,884,664

 

 

$

1,652,468

 

(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, loans

held for sale, loans receivable, installment, 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 March 31, 2025 were less than 4% of total assets and approximately 6% of total loans and leases held for investment, and were supported by an allowance for credit losses of $51.6 million. At March 31, 2025, the consumer installment portfolio had the following characteristics: average original FICO score of 739, average debt-to-income of 20% and average borrower income of $104 thousand.

Non-performing loans at March 31, 2025 decreased to 0.29% of total loans and leases, compared to 0.30% at December 31, 2024 and increased, compared to 0.27% at March 31, 2024.

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)

March 31,
2025

 

December 31,
2024

 

March 31,
2024

Debt securities, available for sale

$

2,024,437

 

$

1,985,438

 

$

2,571,139

Equity securities

 

33,118

 

 

34,256

 

 

33,729

Investment securities, at fair value

 

2,057,555

 

 

2,019,694

 

 

2,604,868

Debt securities, held to maturity

 

938,161

 

 

991,937

 

 

1,032,037

Total investment securities portfolio

$

2,995,716

 

$

3,011,631

 

$

3,636,905

Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At March 31, 2025, the AFS debt securities portfolio, excluding the securities that the Bank decided to sell, had a spot yield of 5.50%, an effective duration of approximately 3.6 years, and approximately 22% are variable rate. Additionally, 66% of the AFS securities portfolio was AAA rated at March 31, 2025.

At March 31, 2025, the HTM debt securities portfolio represented only 4.2% of total assets at March 31, 2025, had a spot yield of 3.95% and an effective duration of approximately 4.1 years. Additionally, at March 31, 2025, approximately 51% of the HTM securities were AAA rated and $0.4 billion 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)

March 31,
2025

 

% of
Total

 

December 31,
2024

 

% of
Total

 

March 31,
2024

 

% of
Total

Demand, non-interest bearing

$

5,552,605

 

29.3

%

 

$

5,608,288

 

29.7

%

 

$

4,688,880

 

26.1

%

Demand, interest bearing

 

5,137,961

 

27.2

 

 

 

5,553,698

 

29.5

 

 

 

5,661,775

 

31.5

 

Total demand deposits

 

10,690,566

 

56.5

 

 

 

11,161,986

 

59.2

 

 

 

10,350,655

 

57.6

 

Savings

 

1,327,854

 

7.0

 

 

 

1,131,819

 

6.0

 

 

 

2,080,374

 

11.6

 

Money market

 

4,057,458

 

21.4

 

 

 

3,844,451

 

20.4

 

 

 

3,347,843

 

18.6

 

Time deposits

 

2,857,047

 

15.1

 

 

 

2,708,205

 

14.4

 

 

 

2,182,511

 

12.2

 

Total deposits

$

18,932,925

 

100.0

%

 

$

18,846,461

 

100.0

%

 

$

17,961,383

 

100.0

%

Total deposits increased $86.5 million, or 0.5%, to $18.9 billion at March 31, 2025 as compared to the prior quarter. Money market deposits increased $213.0 million, or 5.5%, to $4.1 billion, savings deposits increased $196.0 million, or 17.3%, to $1.3 billion and time deposits increased $148.8 million, or 5.5%, to $2.9 billion. These increases were offset by decreases in interest bearing demand deposits of $415.7 million, or 7.5%, to $5.1 billion and non-interest bearing demand deposits of $55.7 million, or 1.0%, to $5.6 billion. The total average cost of deposits decreased by 25 basis points to 2.82% in Q1 2025 from 3.07% in the prior quarter primarily due to a favorable shift in deposit mix and lower market interest rates. Total estimated uninsured deposits were $5.6 billion1, or 30% of total deposits (inclusive of accrued interest) at March 31, 2025 with immediately available liquidity covering approximately 155% of these deposits.

Total deposits increased $971.5 million, or 5.4%, to $18.9 billion at March 31, 2025 as compared to a year ago. Non-interest bearing demand deposits increased $863.7 million, or 18.4%, to $5.6 billion, money market deposits increased $709.6 million, or 21.2%, to $4.1 billion and time deposits increased $674.5 million, or 30.9% to $2.9 billion. These increases were offset by decreases in savings deposits of $752.5 million, or 36.2%, to $1.3 billion and interest bearing demand deposits of $523.8 million, or 9.3%, to $5.1 billion. The total average cost of deposits decreased by 63 basis points to 2.82% in Q1 2025 from 3.45% in the prior year primarily due to a favorable shift in deposit mix and lower market interest rates.

On April 1, 2025, Customers transferred approximately $166.7 million of deposits serviced by BM Technologies, Inc. under a white label relationship to a new sponsor bank.

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 $198.9 million.

Borrowings

The following table presents the composition of our borrowings as of the dates indicated:

(Dollars in thousands)

March 31,
2025

 

December 31,
2024

 

March 31,
2024

FHLB advances

$

1,133,456

 

$

1,128,352

 

$

1,195,088

Senior notes

 

99,103

 

 

99,068

 

 

123,905

Subordinated debt

 

182,579

 

 

182,509

 

 

182,300

Total borrowings

$

1,415,138

 

$

1,409,929

 

$

1,501,293

Total borrowings increased $5.2 million, or 0.4%, to $1.4 billion at March 31, 2025 as compared to the prior quarter. As of March 31, 2025, 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 $86.2 million, or 5.7%, to $1.4 billion at March 31, 2025 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)

March 31,
2025

 

December 31,
2024

 

March 31,
2024

Customers Bancorp, Inc.

 

 

 

 

 

Common Equity

$

1,726,766

 

 

$

1,698,889

 

 

$

1,553,823

 

Tangible Common Equity*

$

1,723,137

 

 

$

1,695,260

 

 

$

1,550,194

 

Common Equity to Total Assets

 

7.7

%

 

 

7.6

%

 

 

7.3

%

Tangible Common Equity to Tangible Assets*

 

7.7

%

 

 

7.6

%

 

 

7.3

%

Book Value per common share

$

54.85

 

 

$

54.20

 

 

$

49.29

 

Tangible Book Value per common share*

$

54.74

 

 

$

54.08

 

 

$

49.18

 

Common equity Tier 1 (“CET 1”) capital ratio (1)

 

11.7

%

 

 

12.1

%

 

 

12.6

%

Total risk based capital ratio (1)

 

14.6

%

 

 

14.9

%

 

 

15.9

%

 

 

 

 

 

 

(1) Regulatory capital ratios as of March 31, 2025 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 $27.9 million to $1.7 billion, and tangible common equity* increased $27.9 million to $1.7 billion, at March 31, 2025 compared to the prior quarter, respectively, primarily from earnings of $9.5 million and decreased unrealized losses on investment securities of $28.9 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). These increases were offset in part by $5.6 million of common share repurchases in Q1 2025. Similarly, book value per common share increased to $54.85 from $54.20, and tangible book value per common share* increased to $54.74 from $54.08, at March 31, 2025 and December 31, 2024, respectively.

Customers Bancorp’s common equity increased $172.9 million to $1.7 billion, and tangible common equity* increased $172.9 million to $1.7 billion, at March 31, 2025 compared to a year ago, respectively, primarily from earnings of $130.0 million and decreased unrealized losses on investment securities in AOCI of $64.7 million (net of taxes), offset in part by $24.9 million of common share repurchases. Similarly, book value per common share increased to $54.85 from $49.29, and tangible book value per common share* increased to $54.74 from $49.18, at March 31, 2025 and March 31, 2024, 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 11.7%, 14.6%, 7.7%, and 7.7%, respectively, at March 31, 2025.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At March 31, 2025, Tier 1 capital (estimate) and total risk based capital (estimate) were 12.4% and 13.9%, respectively.

Key Profitability Trends

Net Interest Income

Net interest income totaled $167.4 million in Q1 2025, a decrease of $0.4 million from Q4 2024. This decrease was driven by a decrease in interest income of $15.0 million primarily due to lower interest income from interest-earning deposits and investment securities, partially offset by lower interest expense of $14.6 million due to a favorable shift in deposit mix and lower market interest rates.

“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 25 basis points during the quarter.

Additionally, diversified and robust loan growth late in the quarter which we achieved through taking market share should provide a strong foundation for our net interest income throughout the remainder of 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,” stated Sam Sidhu.

Net interest income totaled $167.4 million in Q1 2025, an increase of $7.1 million from Q1 2024. This increase was primarily due to lower interest expense from a favorable shift in deposit mix and lower market interest rates, partially offset by lower interest income from interest-earning deposits and investment securities.

Non-Interest Income (Loss)

The following table presents details of non-interest income (loss) for the periods indicated:

 

Three Months Ended

 

Increase
(Decrease)

 

Three Months Ended

 

Increase
(Decrease)

(Dollars in thousands)

March 31,
2025

 

December 31,
2024

 

 

March 31,
2025

 

March 31,
2024

 

Commercial lease income

$

10,668

 

 

$

10,604

 

 

$

64

 

 

$

10,668

 

 

$

9,683

 

 

$

985

 

Loan fees

 

7,235

 

 

 

8,639

 

 

 

(1,404

)

 

 

7,235

 

 

 

5,280

 

 

 

1,955

 

Bank-owned life insurance

 

4,660

 

 

 

2,125

 

 

 

2,535

 

 

 

4,660

 

 

 

3,261

 

 

 

1,399

 

Mortgage finance transactional fees

 

933

 

 

 

1,010

 

 

 

(77

)

 

 

933

 

 

 

946

 

 

 

(13

)

Net gain (loss) on sale of loans and leases

 

2

 

 

 

(852

)

 

 

854

 

 

 

2

 

 

 

10

 

 

 

(8

)

Net gain (loss) on sale of investment securities

 

—

 

 

 

(26,260

)

 

 

26,260

 

 

 

—

 

 

 

(30

)

 

 

30

 

Impairment loss on investment securities

 

(51,319

)

 

 

—

 

 

 

(51,319

)

 

 

(51,319

)

 

 

—

 

 

 

(51,319

)

Unrealized gain on equity method investments

 

—

 

 

 

389

 

 

 

(389

)

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

3,331

 

 

 

3,954

 

 

 

(623

)

 

 

3,331

 

 

 

2,081

 

 

 

1,250

 

Total non-interest income (loss)

$

(24,490

)

 

$

(391

)

 

$

(24,099

)

 

$

(24,490

)

 

$

21,231

 

 

$

(45,721

)

 

 

 

 

 

 

 

 

 

 

 

 

Reported non-interest income totaled a loss of $24.5 million for Q1 2025, an increase of $24.1 million compared to a loss of $0.4 million for Q4 2024. The increase in losses was primarily due to $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell as of March 31, 2025, in order to further improve structural liquidity, enhance credit profile, reduce asset sensitivity and benefit margin, partially offset by a decrease of $26.3 million in net realized loss on sale of investment securities and an increase in bank-owned life insurance income of $2.5 million primarily due to death benefits received from insurance carriers.

Excluding the impact of the securities repositioning in Q1 2025 and Q4 2024, non-interest income was $26.8 million in Q1 2025 compared to $25.9 million in Q4 2024.

Non-interest income totaled a loss of $24.5 million for Q1 2025, a decrease of $45.7 million compared to Q1 2024. The increase in losses was primarily due to $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell as of March 31, 2025, partially offset by increases in commercial lease income of $1.0 million, loan fees of $2.0 million primarily resulting from increased unused line of credit fees, bank-owned life insurance income of $1.4 million primarily due to death benefits received from insurance carriers and deposit account fees of $2.1 million.

Non-Interest Expense

The following table presents details of non-interest expense for the periods indicated:

 

Three Months Ended

 

Increase
(Decrease)

 

Three Months Ended

 

Increase
(Decrease)

(Dollars in thousands)

March 31,
2025

 

December 31,
2024

 

 

March 31,
2025

 

March 31,
2024

 

Salaries and employee benefits

$

42,674

 

$

47,147

 

$

(4,473

)

 

$

42,674

 

$

36,025

 

$

6,649

 

Technology, communication and bank operations

 

11,312

 

 

13,435

 

 

(2,123

)

 

 

11,312

 

 

21,904

 

 

(10,592

)

Commercial lease depreciation

 

8,463

 

 

8,933

 

 

(470

)

 

 

8,463

 

 

7,970

 

 

493

 

Professional services

 

11,857

 

 

13,473

 

 

(1,616

)

 

 

11,857

 

 

6,353

 

 

5,504

 

Loan servicing

 

4,630

 

 

4,584

 

 

46

 

 

 

4,630

 

 

4,031

 

 

599

 

Occupancy

 

3,412

 

 

3,335

 

 

77

 

 

 

3,412

 

 

2,347

 

 

1,065

 

FDIC assessments, non-income taxes and regulatory fees

 

11,750

 

 

10,077

 

 

1,673

 

 

 

11,750

 

 

13,469

 

 

(1,719

)

Advertising and promotion

 

528

 

 

1,645

 

 

(1,117

)

 

 

528

 

 

682

 

 

(154

)

Other

 

8,145

 

 

7,746

 

 

399

 

 

 

8,145

 

 

6,388

 

 

1,757

 

Total non-interest expense

$

102,771

 

$

110,375

 

$

(7,604

)

 

$

102,771

 

$

99,169

 

$

3,602

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses totaled $102.8 million in Q1 2025, a decrease of $7.6 million compared to Q4 2024. The decrease was primarily attributable to decreases of $4.5 million in salaries and employee benefits primarily due to lower headcount, severance and incentives, $2.1 million in technology, communication and bank operations primarily due to lower software-as-a-service expenses and $1.6 million in professional fees, partially offset by an increase of $1.7 million in FDIC assessments, non-income taxes and regulatory fees primarily due to higher FDIC assessments.

“During the quarter we realized the benefit of our operational excellence initiatives which are providing the capacity for the continued investments which we are making in our franchise to position us for success in the both the near-term and over the long-term. While we are pleased with the results of these efforts, we will look for continued opportunities to build on this success in the future,” stated Sam Sidhu.

Non-interest expenses totaled $102.8 million in Q1 2025, an increase of $3.6 million compared to Q1 2024. The increase was primarily attributable to increases of $6.6 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in April 2024 and annual merit increases, and $5.5 million in professional fees including the investment in our risk management infrastructure. These increases were partially offset by decreases in technology, communication and bank operations primarily due to $7.1 million of deposit servicing fees and FDIC assessments, non-income taxes and regulatory fees, primarily due to $4.2 million of FDIC premiums recorded in Q1 2024, both of which relate to periods prior to 2024.

Taxes

Income tax expense decreased by $10.0 million to a benefit of $1.0 million in Q1 2025 from a provision of $8.9 million in Q4 2024 primarily due to lower pre-tax income and an increase in discrete tax benefits from share-based compensation for 2025, partially offset by lower investment tax credits estimated in 2025 as compared to 2024.

Income tax expense decreased by $16.7 million to a benefit of $1.0 million in Q1 2025 from a provision of $15.7 million in Q1 2024 primarily due to lower pre-tax income and an increase in discrete tax benefits from share-based compensation for 2025. The effective tax rate was (8.6)% for Q1 2025.

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. We began the year with strong performance toward achievement of our loan, deposit, and net interest income growth targets as well as our target of lowering our core efficiency ratio. 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 take market share winning 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, April 25, 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 1st Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Head of Corporate Communications, Jordan Baucum at jbaucum@customersbank.com.

The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $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. 72 out of the 100 largest publicly traded banks in 2025 Forbes Best Banks list
  • 2024 Inc. Magazine Best in Business List in Financial Services Category

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 ongoing 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; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; 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, 2024, 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.

Q1 2025 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 2025 and the preceding four quarters:

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

EARNINGS SUMMARY - UNAUDITED

 

(Dollars in thousands, except per share data and stock price data)

Q1

 

Q4

 

Q3

 

Q2

 

Q1

2025

 

2024

 

2024

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

GAAP Profitability Metrics:

Net income available to common shareholders

 

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

45,926

 

Per share amounts:

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

0.30

 

 

$

0.74

 

 

$

1.36

 

 

$

1.72

 

 

$

1.46

 

Earnings per share - diluted

$

0.29

 

 

$

0.71

 

 

$

1.31

 

 

$

1.66

 

 

$

1.40

 

Book value per common share (1)

$

54.85

 

 

$

54.20

 

 

$

53.07

 

 

$

50.81

 

 

$

49.29

 

CUBI stock price (1)

$

50.20

 

 

$

48.68

 

 

$

46.45

 

 

$

47.98

 

 

$

53.06

 

CUBI stock price as % of book value (1)

 

92

%

 

 

90

%

 

 

88

%

 

 

94

%

 

 

108

%

Average shares outstanding - basic

 

31,447,623

 

 

 

31,346,920

 

 

 

31,567,797

 

 

 

31,649,715

 

 

 

31,473,424

 

Average shares outstanding - diluted

 

32,490,572

 

 

 

32,557,621

 

 

 

32,766,488

 

 

 

32,699,149

 

 

 

32,854,534

 

Shares outstanding (1)

 

31,479,132

 

 

 

31,346,507

 

 

 

31,342,107

 

 

 

31,667,655

 

 

 

31,521,931

 

Return on average assets (“ROAA”)

 

0.23

%

 

 

0.48

%

 

 

0.88

%

 

 

1.11

%

 

 

0.94

%

Return on average common equity (“ROCE”)

 

2.23

%

 

 

5.50

%

 

 

10.44

%

 

 

13.85

%

 

 

12.08

%

Net interest margin, tax equivalent

 

3.13

%

 

 

3.11

%

 

 

3.06

%

 

 

3.29

%

 

 

3.10

%

Efficiency ratio

 

52.94

%

 

 

56.86

%

 

 

62.40

%

 

 

51.87

%

 

 

54.58

%

Non-GAAP Profitability Metrics (2):

 

 

 

 

 

 

 

 

 

Core earnings

$

50,002

 

 

$

44,168

 

 

$

43,838

 

 

$

48,567

 

 

$

46,532

 

Core pre-tax pre-provision net income

$

93,489

 

 

$

84,224

 

 

$

64,824

 

 

$

89,220

 

 

$

83,674

 

Per share amounts:

 

 

 

 

 

 

 

 

 

Core earnings per share - diluted

$

1.54

 

 

$

1.36

 

 

$

1.34

 

 

$

1.49

 

 

$

1.42

 

Tangible book value per common share (1)

$

54.74

 

 

$

54.08

 

 

$

52.96

 

 

$

50.70

 

 

$

49.18

 

CUBI stock price as % of tangible book value (1)

 

92

%

 

 

90

%

 

 

88

%

 

 

95

%

 

 

108

%

Core ROAA

 

0.97

%

 

 

0.86

%

 

 

0.89

%

 

 

1.00

%

 

 

0.95

%

Core ROCE

 

11.72

%

 

 

10.44

%

 

 

10.66

%

 

 

12.39

%

 

 

12.24

%

Core pre-tax pre-provision ROAA

 

1.70

%

 

 

1.51

%

 

 

1.21

%

 

 

1.71

%

 

 

1.58

%

Core pre-tax pre-provision ROCE

 

21.11

%

 

 

19.04

%

 

 

14.84

%

 

 

21.79

%

 

 

21.01

%

Core efficiency ratio

 

52.69

%

 

 

56.12

%

 

 

61.69

%

 

 

53.47

%

 

 

54.24

%

Asset Quality:

 

 

 

 

 

 

 

 

 

Net charge-offs

$

17,144

 

 

$

14,612

 

 

$

17,044

 

 

$

18,711

 

 

$

17,968

 

Annualized net charge-offs to average total loans and leases

 

0.48

%

 

 

0.41

%

 

 

0.50

%

 

 

0.56

%

 

 

0.55

%

Non-performing loans (“NPLs”) to total loans and leases (1)

 

0.29

%

 

 

0.30

%

 

 

0.34

%

 

 

0.35

%

 

 

0.27

%

Reserves to NPLs (1)

 

324.22

%

 

 

316.06

%

 

 

281.36

%

 

 

279.52

%

 

 

373.86

%

Non-performing assets (“NPAs”) to total assets

 

0.26

%

 

 

0.25

%

 

 

0.22

%

 

 

0.23

%

 

 

0.17

%

Customers Bank Capital Ratios (3):

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital to risk-weighted assets

 

12.4

%

 

 

12.96

%

 

 

13.64

%

 

 

14.17

%

 

 

14.16

%

Tier 1 capital to risk-weighted assets

 

12.4

%

 

 

12.96

%

 

 

13.64

%

 

 

14.17

%

 

 

14.16

%

Total capital to risk-weighted assets

 

13.9

%

 

 

14.34

%

 

 

15.06

%

 

 

15.64

%

 

 

15.82

%

Tier 1 capital to average assets (leverage ratio)

 

8.4

%

 

 

8.65

%

 

 

9.08

%

 

 

9.16

%

 

 

8.82

%

 

 

 

 

 

 

 

 

 

 

(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 Q1 2025 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 was phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of March 31, 2025, our regulatory capital ratios reflected the full effect of CECL on regulatory capital.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

2025

 

2024

 

2024

 

2024

 

2024

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

$

231,008

 

 

$

230,534

 

 

$

228,659

 

 

$

224,265

 

 

$

217,999

 

Investment securities

 

34,339

 

 

 

39,638

 

 

 

46,265

 

 

 

47,586

 

 

 

46,802

 

Interest earning deposits

 

42,914

 

 

 

48,147

 

 

 

44,372

 

 

 

45,506

 

 

 

52,817

 

Loans held for sale

 

4,761

 

 

 

9,447

 

 

 

10,907

 

 

 

13,671

 

 

 

12,048

 

Other

 

1,887

 

 

 

2,140

 

 

 

1,910

 

 

 

3,010

 

 

 

2,111

 

Total interest income

 

314,909

 

 

 

329,906

 

 

 

332,113

 

 

 

334,038

 

 

 

331,777

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

131,308

 

 

 

144,974

 

 

 

155,829

 

 

 

148,784

 

 

 

153,725

 

FHLB advances

 

11,801

 

 

 

12,595

 

 

 

12,590

 

 

 

13,437

 

 

 

13,485

 

Subordinated debt

 

3,212

 

 

 

3,349

 

 

 

3,537

 

 

 

2,734

 

 

 

2,689

 

Other borrowings

 

1,142

 

 

 

1,167

 

 

 

1,612

 

 

 

1,430

 

 

 

1,493

 

Total interest expense

 

147,463

 

 

 

162,085

 

 

 

173,568

 

 

 

166,385

 

 

 

171,392

 

Net interest income

 

167,446

 

 

 

167,821

 

 

 

158,545

 

 

 

167,653

 

 

 

160,385

 

Provision for credit losses

 

28,297

 

 

 

21,194

 

 

 

17,066

 

 

 

18,121

 

 

 

17,070

 

Net interest income after provision for credit losses

 

139,149

 

 

 

146,627

 

 

 

141,479

 

 

 

149,532

 

 

 

143,315

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Commercial lease income

 

10,668

 

 

 

10,604

 

 

 

10,093

 

 

 

10,282

 

 

 

9,683

 

Loan fees

 

7,235

 

 

 

8,639

 

 

 

8,011

 

 

 

5,233

 

 

 

5,280

 

Bank-owned life insurance

 

4,660

 

 

 

2,125

 

 

 

2,049

 

 

 

2,007

 

 

 

3,261

 

Mortgage finance transactional fees

 

933

 

 

 

1,010

 

 

 

1,087

 

 

 

1,058

 

 

 

946

 

Net gain (loss) on sale of loans and leases

 

2

 

 

 

(852

)

 

 

(14,548

)

 

 

(238

)

 

 

10

 

Net gain (loss) on sale of investment securities

 

—

 

 

 

(26,260

)

 

 

—

 

 

 

(719

)

 

 

(30

)

Impairment loss on investment securities

 

(51,319

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unrealized gain on equity method investments

 

—

 

 

 

389

 

 

 

—

 

 

 

11,041

 

 

 

—

 

Other

 

3,331

 

 

 

3,954

 

 

 

1,865

 

 

 

2,373

 

 

 

2,081

 

Total non-interest income (loss)

 

(24,490

)

 

 

(391

)

 

 

8,557

 

 

 

31,037

 

 

 

21,231

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

42,674

 

 

 

47,147

 

 

 

47,717

 

 

 

44,947

 

 

 

36,025

 

Technology, communication and bank operations

 

11,312

 

 

 

13,435

 

 

 

13,588

 

 

 

16,227

 

 

 

21,904

 

Commercial lease depreciation

 

8,463

 

 

 

8,933

 

 

 

7,811

 

 

 

7,829

 

 

 

7,970

 

Professional services

 

11,857

 

 

 

13,473

 

 

 

9,048

 

 

 

6,104

 

 

 

6,353

 

Loan servicing

 

4,630

 

 

 

4,584

 

 

 

3,778

 

 

 

3,516

 

 

 

4,031

 

Occupancy

 

3,412

 

 

 

3,335

 

 

 

2,987

 

 

 

3,120

 

 

 

2,347

 

FDIC assessments, non-income taxes and regulatory fees

 

11,750

 

 

 

10,077

 

 

 

7,902

 

 

 

10,236

 

 

 

13,469

 

Advertising and promotion

 

528

 

 

 

1,645

 

 

 

908

 

 

 

1,254

 

 

 

682

 

Other

 

8,145

 

 

 

7,746

 

 

 

10,279

 

 

 

10,219

 

 

 

6,388

 

Total non-interest expense

 

102,771

 

 

 

110,375

 

 

 

104,018

 

 

 

103,452

 

 

 

99,169

 

Income before income tax expense (benefit)

 

11,888

 

 

 

35,861

 

 

 

46,018

 

 

 

77,117

 

 

 

65,377

 

Income tax expense (benefit)

 

(1,024

)

 

 

8,946

 

 

 

(725

)

 

 

19,032

 

 

 

15,651

 

Net income

 

12,912

 

 

 

26,915

 

 

 

46,743

 

 

 

58,085

 

 

 

49,726

 

Preferred stock dividends

 

3,389

 

 

 

3,649

 

 

 

3,806

 

 

 

3,785

 

 

 

3,800

 

Net income available to common shareholders

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

45,926

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.30

 

 

$

0.74

 

 

$

1.36

 

 

$

1.72

 

 

$

1.46

 

Diluted earnings per common share

 

0.29

 

 

 

0.71

 

 

 

1.31

 

 

 

1.66

 

 

 

1.40

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2025

 

2024

 

2024

 

2024

 

2024

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

62,146

 

 

$

56,787

 

 

$

39,429

 

 

$

45,045

 

 

$

51,974

 

Interest earning deposits

 

3,366,544

 

 

 

3,729,144

 

 

 

3,048,593

 

 

 

3,003,542

 

 

 

3,649,146

 

Cash and cash equivalents

 

3,428,690

 

 

 

3,785,931

 

 

 

3,088,022

 

 

 

3,048,587

 

 

 

3,701,120

 

Investment securities, at fair value

 

2,057,555

 

 

 

2,019,694

 

 

 

2,412,069

 

 

 

2,511,650

 

 

 

2,604,868

 

Investment securities held to maturity

 

938,161

 

 

 

991,937

 

 

 

1,064,437

 

 

 

962,799

 

 

 

1,032,037

 

Loans held for sale

 

37,529

 

 

 

204,794

 

 

 

275,420

 

 

 

375,724

 

 

 

357,640

 

Loans and leases receivable

 

13,555,820

 

 

 

13,127,634

 

 

 

12,527,283

 

 

 

12,254,204

 

 

 

11,936,621

 

Loans receivable, mortgage finance, at fair value

 

1,366,460

 

 

 

1,321,128

 

 

 

1,250,413

 

 

 

1,002,711

 

 

 

962,610

 

Loans receivable, installment, at fair value

 

138,159

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Allowance for credit losses on loans and leases

 

(141,076

)

 

 

(136,775

)

 

 

(133,158

)

 

 

(132,436

)

 

 

(133,296

)

Total loans and leases receivable, net of allowance for credit losses on loans and leases

 

14,919,363

 

 

 

14,311,987

 

 

 

13,644,538

 

 

 

13,124,479

 

 

 

12,765,935

 

FHLB, Federal Reserve Bank, and other restricted stock

 

96,758

 

 

 

96,214

 

 

 

95,035

 

 

 

92,276

 

 

 

100,067

 

Accrued interest receivable

 

105,800

 

 

 

108,351

 

 

 

115,588

 

 

 

112,788

 

 

 

120,123

 

Bank premises and equipment, net

 

6,653

 

 

 

6,668

 

 

 

6,730

 

 

 

7,019

 

 

 

7,253

 

Bank-owned life insurance

 

298,551

 

 

 

297,641

 

 

 

295,531

 

 

 

293,108

 

 

 

293,400

 

Goodwill and other intangibles

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,629

 

Other assets

 

530,355

 

 

 

481,395

 

 

 

455,083

 

 

 

410,916

 

 

 

361,295

 

Total assets

$

22,423,044

 

 

$

22,308,241

 

 

$

21,456,082

 

 

$

20,942,975

 

 

$

21,347,367

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing deposits

$

5,552,605

 

 

$

5,608,288

 

 

$

4,670,809

 

 

$

4,474,862

 

 

$

4,688,880

 

Interest bearing deposits

 

13,380,320

 

 

 

13,238,173

 

 

 

13,398,580

 

 

 

13,203,231

 

 

 

13,272,503

 

Total deposits

 

18,932,925

 

 

 

18,846,461

 

 

 

18,069,389

 

 

 

17,678,093

 

 

 

17,961,383

 

FHLB advances

 

1,133,456

 

 

 

1,128,352

 

 

 

1,117,229

 

 

 

1,018,349

 

 

 

1,195,088

 

Other borrowings

 

99,103

 

 

 

99,068

 

 

 

99,033

 

 

 

123,970

 

 

 

123,905

 

Subordinated debt

 

182,579

 

 

 

182,509

 

 

 

182,439

 

 

 

182,370

 

 

 

182,300

 

Accrued interest payable and other liabilities

 

210,421

 

 

 

215,168

 

 

 

186,812

 

 

 

193,328

 

 

 

193,074

 

Total liabilities

 

20,558,484

 

 

 

20,471,558

 

 

 

19,654,902

 

 

 

19,196,110

 

 

 

19,655,750

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

Common stock

 

35,995

 

 

 

35,758

 

 

 

35,734

 

 

 

35,686

 

 

 

35,540

 

Additional paid in capital

 

570,172

 

 

 

575,333

 

 

 

571,609

 

 

 

567,345

 

 

 

567,490

 

Retained earnings

 

1,335,534

 

 

 

1,326,011

 

 

 

1,302,745

 

 

 

1,259,808

 

 

 

1,205,508

 

Accumulated other comprehensive income (loss), net

 

(67,641

)

 

 

(96,560

)

 

 

(106,082

)

 

 

(131,358

)

 

 

(132,305

)

Treasury stock, at cost

 

(147,294

)

 

 

(141,653

)

 

 

(140,620

)

 

 

(122,410

)

 

 

(122,410

)

Total shareholders’ equity

 

1,864,560

 

 

 

1,836,683

 

 

 

1,801,180

 

 

 

1,746,865

 

 

 

1,691,617

 

Total liabilities and shareholders’ equity

$

22,423,044

 

 

$

22,308,241

 

 

$

21,456,082

 

 

$

20,942,975

 

 

$

21,347,367

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31, 2025

 

December 31, 2024

 

March 31, 2024

 

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

$

3,857,617

 

$

42,914

 

4.51

%

 

$

3,973,262

 

$

48,147

 

4.82

%

 

$

3,865,028

 

$

52,817

 

5.50

%

Investment securities (1)

 

3,100,429

 

 

34,339

 

4.49

%

 

 

3,392,850

 

 

39,638

 

4.65

%

 

 

3,771,097

 

 

46,802

 

4.99

%

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialized lending loans and leases (2)

 

6,474,034

 

 

120,951

 

7.58

%

 

 

6,022,062

 

 

121,818

 

8.05

%

 

 

5,268,345

 

 

115,590

 

8.82

%

Other commercial & industrial loans (2)

 

1,542,846

 

 

23,933

 

6.29

%

 

 

1,529,478

 

 

25,514

 

6.64

%

 

 

1,654,665

 

 

26,714

 

6.49

%

Mortgage finance loans

 

1,252,602

 

 

14,752

 

4.78

%

 

 

1,316,884

 

 

16,704

 

5.05

%

 

 

1,033,177

 

 

12,830

 

4.99

%

Multifamily loans

 

2,273,893

 

 

23,664

 

4.22

%

 

 

2,162,825

 

 

22,400

 

4.12

%

 

 

2,121,650

 

 

21,255

 

4.03

%

Non-owner occupied commercial real estate loans

 

1,550,372

 

 

21,564

 

5.64

%

 

 

1,491,170

 

 

21,770

 

5.81

%

 

 

1,348,468

 

 

20,179

 

6.02

%

Residential mortgages

 

530,613

 

 

6,228

 

4.76

%

 

 

535,833

 

 

6,301

 

4.68

%

 

 

522,528

 

 

5,708

 

4.39

%

Installment loans

 

938,193

 

 

24,677

 

10.67

%

 

 

1,023,569

 

 

25,474

 

9.90

%

 

 

1,179,721

 

 

27,771

 

9.47

%

Total loans and leases (3)

 

14,562,553

 

 

235,769

 

6.57

%

 

 

14,081,821

 

 

239,981

 

6.78

%

 

 

13,128,554

 

 

230,047

 

7.05

%

Other interest-earning assets

 

127,793

 

 

1,887

 

5.99

%

 

 

122,784

 

 

2,140

 

6.93

%

 

 

107,525

 

 

2,111

 

7.90

%

Total interest-earning assets

 

21,648,392

 

 

314,909

 

5.89

%

 

 

21,570,717

 

 

329,906

 

6.09

%

 

 

20,872,204

 

 

331,777

 

6.39

%

Non-interest-earning assets

 

666,571

 

 

 

 

 

 

609,253

 

 

 

 

 

 

463,025

 

 

 

 

Total assets

$

22,314,963

 

 

 

 

 

$

22,179,970

 

 

 

 

 

$

21,335,229

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

5,358,206

 

$

49,903

 

3.78

%

 

$

5,597,302

 

$

57,268

 

4.07

%

 

$

5,538,846

 

$

61,531

 

4.47

%

Money market deposit accounts

 

3,882,855

 

 

37,767

 

3.94

%

 

 

3,974,776

 

 

42,492

 

4.25

%

 

 

3,233,103

 

 

36,811

 

4.58

%

Other savings accounts

 

1,151,439

 

 

10,691

 

3.77

%

 

 

1,258,018

 

 

12,939

 

4.09

%

 

 

1,753,118

 

 

21,399

 

4.91

%

Certificates of deposit

 

2,749,720

 

 

32,947

 

4.86

%

 

 

2,612,246

 

 

32,275

 

4.92

%

 

 

2,750,788

 

 

33,984

 

4.97

%

Total interest-bearing deposits (4)

 

13,142,220

 

 

131,308

 

4.05

%

 

 

13,442,342

 

 

144,974

 

4.29

%

 

 

13,275,855

 

 

153,725

 

4.66

%

Borrowings

 

1,346,941

 

 

16,155

 

4.86

%

 

 

1,364,138

 

 

17,111

 

4.99

%

 

 

1,506,707

 

 

17,667

 

4.72

%

Total interest-bearing liabilities

 

14,489,161

 

 

147,463

 

4.13

%

 

 

14,806,480

 

 

162,085

 

4.36

%

 

 

14,782,562

 

 

171,392

 

4.66

%

Non-interest-bearing deposits (4)

 

5,710,644

 

 

 

 

 

 

5,346,912

 

 

 

 

 

 

4,620,986

 

 

 

 

Total deposits and borrowings

 

20,199,805

 

 

 

2.96

%

 

 

20,153,392

 

 

 

3.20

%

 

 

19,403,548

 

 

 

3.55

%

Other non-interest-bearing liabilities

 

246,455

 

 

 

 

 

 

204,947

 

 

 

 

 

 

264,677

 

 

 

 

Total liabilities

 

20,446,260

 

 

 

 

 

 

20,358,339

 

 

 

 

 

 

19,668,225

 

 

 

 

Shareholders’ equity

 

1,868,703

 

 

 

 

 

 

1,821,631

 

 

 

 

 

 

1,667,004

 

 

 

 

Total liabilities and shareholders’ equity

$

22,314,963

 

 

 

 

 

$

22,179,970

 

 

 

 

 

$

21,335,229

 

 

 

 

Net interest income

 

 

 

167,446

 

 

 

 

 

 

167,821

 

 

 

 

 

 

160,385

 

 

Tax-equivalent adjustment

 

 

 

363

 

 

 

 

 

 

377

 

 

 

 

 

 

394

 

 

Net interest earnings

 

 

$

167,809

 

 

 

 

 

$

168,198

 

 

 

 

 

$

160,779

 

 

Interest spread

 

 

 

 

2.93

%

 

 

 

 

 

2.89

%

 

 

 

 

 

2.84

%

Net interest margin

 

 

 

 

3.13

%

 

 

 

 

 

3.10

%

 

 

 

 

 

3.09

%

Net interest margin tax equivalent (5)

 

 

 

 

3.13

%

 

 

 

 

 

3.11

%

 

 

 

 

 

3.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.

(4) Total costs of deposits (including interest bearing and non-interest bearing) were 2.82%, 3.07% and 3.45% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

(5) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, presented to approximate interest income as a taxable asset.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2025

 

2024

 

2024

 

2024

 

2024

Loans and leases held for investment

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

Specialized lending

$

6,070,093

 

$

5,842,420

 

$

5,468,507

 

$

5,528,745

 

$

5,104,405

Other commercial & industrial

 

1,062,933

 

 

1,062,631

 

 

1,087,222

 

 

1,092,146

 

 

1,113,517

Mortgage finance

 

1,477,896

 

 

1,440,847

 

 

1,367,617

 

 

1,122,812

 

 

1,071,146

Multifamily

 

2,322,123

 

 

2,252,246

 

 

2,115,978

 

 

2,067,332

 

 

2,123,675

Commercial real estate owner occupied

 

1,139,126

 

 

1,100,944

 

 

981,904

 

 

805,779

 

 

806,278

Commercial real estate non-owner occupied

 

1,438,906

 

 

1,359,130

 

 

1,326,591

 

 

1,202,606

 

 

1,182,084

Construction

 

154,647

 

 

147,209

 

 

174,509

 

 

163,409

 

 

185,601

Total commercial loans and leases

 

13,665,724

 

 

13,205,427

 

 

12,522,328

 

 

11,982,829

 

 

11,586,706

Consumer:

 

 

 

 

 

 

 

 

 

Residential

 

496,772

 

 

496,559

 

 

500,786

 

 

481,503

 

 

482,537

Manufactured housing

 

31,775

 

 

33,123

 

 

34,481

 

 

35,901

 

 

37,382

Installment:

 

 

 

 

 

 

 

 

 

Personal

 

493,276

 

 

463,854

 

 

453,739

 

 

474,481

 

 

492,892

Other

 

372,892

 

 

249,799

 

 

266,362

 

 

282,201

 

 

299,714

Total installment loans

 

866,168

 

 

713,653

 

 

720,101

 

 

756,682

 

 

792,606

Total consumer loans

 

1,394,715

 

 

1,243,335

 

 

1,255,368

 

 

1,274,086

 

 

1,312,525

Total loans and leases held for investment

$

15,060,439

 

$

14,448,762

 

$

13,777,696

 

$

13,256,915

 

$

12,899,231

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

 

 

 

 

 

 

 

Residential

$

1,465

 

$

1,836

 

$

2,523

 

$

2,684

 

$

870

Installment:

 

 

 

 

 

 

 

 

 

Personal

 

36,000

 

 

40,903

 

 

55,799

 

 

125,598

 

 

137,755

Other

 

64

 

 

162,055

 

 

217,098

 

 

247,442

 

 

219,015

Total installment loans

 

36,064

 

 

202,958

 

 

272,897

 

 

373,040

 

 

356,770

Total loans held for sale

$

37,529

 

$

204,794

 

$

275,420

 

$

375,724

 

$

357,640

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

15,097,968

 

$

14,653,556

 

$

14,053,116

 

$

13,632,639

 

$

13,256,871

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END DEPOSIT COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2025

 

2024

 

2024

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing

$

5,552,605

 

$

5,608,288

 

$

4,670,809

 

$

4,474,862

 

$

4,688,880

Demand, interest bearing

 

5,137,961

 

 

5,553,698

 

 

5,606,500

 

 

5,894,056

 

 

5,661,775

Total demand deposits

 

10,690,566

 

 

11,161,986

 

 

10,277,309

 

 

10,368,918

 

 

10,350,655

Savings

 

1,327,854

 

 

1,131,819

 

 

1,399,968

 

 

1,573,661

 

 

2,080,374

Money market

 

4,057,458

 

 

3,844,451

 

 

3,961,028

 

 

3,539,815

 

 

3,347,843

Time deposits

 

2,857,047

 

 

2,708,205

 

 

2,431,084

 

 

2,195,699

 

 

2,182,511

Total deposits

$

18,932,925

 

$

18,846,461

 

$

18,069,389

 

$

17,678,093

 

$

17,961,383

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2025

 

As of December 31, 2024

 

As of March 31, 2024

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

$

7,244,462

 

$

30,584

 

0.42

%

 

$

7,024,770

 

$

29,379

 

0.42

%

 

$

6,326,458

 

$

23,003

 

0.36

%

Multifamily

 

2,322,123

 

 

18,790

 

0.81

%

 

 

2,252,246

 

 

18,511

 

0.82

%

 

 

2,123,675

 

 

18,307

 

0.86

%

Commercial real estate owner occupied

 

1,139,126

 

 

10,780

 

0.95

%

 

 

1,100,944

 

 

10,755

 

0.98

%

 

 

806,278

 

 

10,201

 

1.27

%

Commercial real estate non-owner occupied

 

1,438,906

 

 

18,058

 

1.25

%

 

 

1,359,130

 

 

17,405

 

1.28

%

 

 

1,182,084

 

 

18,320

 

1.55

%

Construction

 

154,647

 

 

1,264

 

0.82

%

 

 

147,209

 

 

1,250

 

0.85

%

 

 

185,601

 

 

1,866

 

1.01

%

Total commercial loans and leases receivable

 

12,299,264

 

 

79,476

 

0.65

%

 

 

11,884,299

 

 

77,300

 

0.65

%

 

 

10,624,096

 

 

71,697

 

0.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

496,772

 

 

6,163

 

1.24

%

 

 

496,559

 

 

5,968

 

1.20

%

 

 

482,537

 

 

6,707

 

1.39

%

Manufactured housing

 

31,775

 

 

3,800

 

11.96

%

 

 

33,123

 

 

3,829

 

11.56

%

 

 

37,382

 

 

4,160

 

11.13

%

Installment

 

728,009

 

 

51,637

 

7.09

%

 

 

713,653

 

 

49,678

 

6.96

%

 

 

792,606

 

 

50,732

 

6.40

%

Total consumer loans receivable

 

1,256,556

 

 

61,600

 

4.90

%

 

 

1,243,335

 

 

59,475

 

4.78

%

 

 

1,312,525

 

 

61,599

 

4.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases receivable held for investment

 

13,555,820

 

 

141,076

 

1.04

%

 

 

13,127,634

 

 

136,775

 

1.04

%

 

 

11,936,621

 

 

133,296

 

1.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, mortgage finance, at fair value

 

1,366,460

 

 

—

 

—

%

 

 

1,321,128

 

 

—

 

—

%

 

 

962,610

 

 

—

 

—

%

Loans receivable, installment, at fair value

 

138,159

 

 

—

 

—

%

 

 

—

 

 

—

 

—

%

 

 

—

 

 

—

 

—

%

Loans held for sale

 

37,529

 

 

—

 

—

%

 

 

204,794

 

 

—

 

—

%

 

 

357,640

 

 

—

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

15,097,968

 

$

141,076

 

0.93

%

 

$

14,653,556

 

$

136,775

 

0.93

%

 

$

13,256,871

 

$

133,296

 

1.01

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED (CONTINUED)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2025

 

As of December 31, 2024

 

As of March 31, 2024

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

$

18,754

 

0.26

%

 

163.08

%

 

$

4,041

 

0.06

%

 

727.02

%

 

$

3,608

 

0.06

%

 

637.56

%

Multifamily

 

—

 

—

%

 

—

%

 

 

11,834

 

0.53

%

 

156.42

%

 

 

5,161

 

0.24

%

 

354.72

%

Commercial real estate owner occupied

 

7,793

 

0.68

%

 

138.33

%

 

 

8,090

 

0.73

%

 

132.94

%

 

 

8,920

 

1.11

%

 

114.36

%

Commercial real estate non-owner occupied

 

62

 

—

%

 

29125.81

%

 

 

354

 

0.03

%

 

4916.67

%

 

 

62

 

0.01

%

 

29548.39

%

Construction

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

Total commercial loans and leases receivable

 

26,609

 

0.22

%

 

298.68

%

 

 

24,319

 

0.20

%

 

317.86

%

 

 

17,751

 

0.17

%

 

403.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

8,151

 

1.64

%

 

75.61

%

 

 

8,714

 

1.75

%

 

68.49

%

 

 

8,089

 

1.68

%

 

82.92

%

Manufactured housing

 

1,653

 

5.20

%

 

229.89

%

 

 

1,852

 

5.59

%

 

206.75

%

 

 

2,268

 

6.07

%

 

183.42

%

Installment

 

4,659

 

0.64

%

 

1108.33

%

 

 

5,613

 

0.79

%

 

885.05

%

 

 

6,958

 

0.88

%

 

729.12

%

Total consumer loans receivable

 

14,463

 

1.15

%

 

425.91

%

 

 

16,179

 

1.30

%

 

367.61

%

 

 

17,315

 

1.32

%

 

355.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases receivable

 

41,072

 

0.30

%

 

343.48

%

 

 

40,498

 

0.31

%

 

337.73

%

 

 

35,066

 

0.29

%

 

380.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, mortgage finance, at fair value

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

Loans receivable, installment, at fair value

 

2,059

 

1.49

%

 

—

%

 

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

Loans held for sale

 

382

 

1.02

%

 

—

%

 

 

2,777

 

1.36

%

 

—

%

 

 

588

 

0.16

%

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

43,513

 

0.29

%

 

324.22

%

 

$

43,275

 

0.30

%

 

316.06

%

 

$

35,654

 

0.27

%

 

373.86

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

2025

 

2024

 

2024

 

2024

 

2024

Loan type

 

 

 

 

 

 

 

 

 

Commercial & industrial, including specialized lending

$

3,231

 

 

$

3,653

 

 

$

5,056

 

 

$

5,665

 

 

$

3,672

Multifamily

 

3,834

 

 

 

—

 

 

 

2,167

 

 

 

1,433

 

 

 

473

Commercial real estate owner occupied

 

16

 

 

 

339

 

 

 

4

 

 

 

—

 

 

 

22

Commercial real estate non-owner occupied

 

—

 

 

 

145

 

 

 

—

 

 

 

—

 

 

 

—

Construction

 

(3

)

 

 

—

 

 

 

(3

)

 

 

(7

)

 

 

—

Residential

 

—

 

 

 

(18

)

 

 

(21

)

 

 

(20

)

 

 

18

Installment

 

10,066

 

 

 

10,493

 

 

 

9,841

 

 

 

11,640

 

 

 

13,783

Total net charge-offs (recoveries) from loans held for investment

$

17,144

 

 

$

14,612

 

 

$

17,044

 

 

$

18,711

 

 

$

17,968

 

 

 

 

 

 

 

 

 

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

 
We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.

The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.

 

Core Earnings and Adjusted Core Earnings - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

(Dollars in thousands, except per share data)

USD

Per
share

 

USD

Per
share

 

USD

Per
share

 

USD

Per
share

 

USD

Per
share

GAAP net income to common shareholders

$

9,523

 

$

0.29

 

$

23,266

 

$

0.71

 

 

$

42,937

 

$

1.31

 

 

$

54,300

 

$

1.66

 

 

$

45,926

$

1.40

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

—

 

 

—

 

 

1,198

 

 

0.04

 

 

 

540

 

 

0.02

 

 

 

1,928

 

 

0.06

 

 

 

—

 

—

Impairment loss on investment securities

 

39,875

 

 

1.23

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

—

Legal settlement

 

—

 

 

—

 

 

157

 

 

0.00

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

—

(Gains) losses on investment securities

 

(124

)

 

0.00

 

 

20,035

 

 

0.62

 

 

 

(322

)

 

(0.01

)

 

 

561

 

 

0.02

 

 

 

57

 

0.00

Derivative credit valuation adjustment

 

210

 

 

0.01

 

 

(306

)

 

(0.01

)

 

 

185

 

 

0.01

 

 

 

(44

)

 

0.00

 

 

 

169

 

0.01

FDIC special assessment

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

138

 

 

0.00

 

 

 

380

 

0.01

Unrealized (gain) on equity method investments

 

—

 

 

—

 

 

(292

)

 

(0.01

)

 

 

—

 

 

—

 

 

 

(8,316

)

 

(0.25

)

 

 

—

 

—

Unrealized losses on loans held for sale

 

518

 

 

0.02

 

 

110

 

 

0.00

 

 

 

498

 

 

0.02

 

 

 

—

 

 

—

 

 

 

—

 

—

Core earnings

$

50,002

 

$

1.54

 

$

44,168

 

$

1.36

 

 

$

43,838

 

$

1.34

 

 

$

48,567

 

$

1.49

 

 

$

46,532

$

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One-time non-interest expense items recorded in 2024 (after-tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit servicing fees prior to 2024

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

5,405

 

0.16

FDIC premiums prior to 2024

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

3,200

 

0.10

Non-income taxes prior to 2024

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(2,457

)

 

(0.07

)

 

 

—

 

 

—

 

 

 

—

 

—

Total one-time non-interest expense items

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(2,457

)

 

(0.07

)

 

 

—

 

 

—

 

 

 

8,605

 

0.26

Adjusted core earnings (adjusted for one-time non-interest expense items)

$

50,002

 

$

1.54

 

$

44,168

 

$

1.36

 

 

$

41,381

 

$

1.26

 

 

$

48,567

 

$

1.49

 

 

$

55,137

$

1.68

Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

GAAP net income

$

12,912

 

 

$

26,915

 

 

$

46,743

 

 

$

58,085

 

 

$

49,726

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

Severance expense

 

—

 

 

 

1,198

 

 

 

540

 

 

 

1,928

 

 

 

—

 

Impairment loss on investment securities

 

39,875

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Legal settlement

 

—

 

 

 

157

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

(124

)

 

 

20,035

 

 

 

(322

)

 

 

561

 

 

 

57

 

Derivative credit valuation adjustment

 

210

 

 

 

(306

)

 

 

185

 

 

 

(44

)

 

 

169

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

380

 

Unrealized (gain) on equity method investments

 

—

 

 

 

(292

)

 

 

—

 

 

 

(8,316

)

 

 

—

 

Unrealized losses on loans held for sale

 

518

 

 

 

110

 

 

 

498

 

 

 

—

 

 

 

—

 

Core net income

$

53,391

 

 

$

47,817

 

 

$

47,644

 

 

$

52,352

 

 

$

50,332

 

 

 

 

 

 

 

 

 

 

 

One-time non-interest expense items recorded in 2024 (after-tax):

 

 

 

 

 

 

 

 

 

Deposit servicing fees prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,405

 

FDIC premiums prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,200

 

Non-income taxes prior to 2024

 

—

 

 

 

—

 

 

 

(2,457

)

 

 

—

 

 

 

—

 

Total one-time non-interest expense items

 

—

 

 

 

—

 

 

 

(2,457

)

 

 

—

 

 

 

8,605

 

Adjusted core net income (adjusted for one-time non-interest expense items)

$

53,391

 

 

$

47,817

 

 

$

45,187

 

 

$

52,352

 

 

$

58,937

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

22,314,963

 

 

$

22,179,970

 

 

$

21,230,404

 

 

$

20,985,203

 

 

$

21,335,229

 

 

 

 

 

 

 

 

 

 

 

Core return on average assets

 

0.97

%

 

 

0.86

%

 

 

0.89

%

 

 

1.00

%

 

 

0.95

%

 

 

 

 

 

 

 

 

 

 

Adjusted core return on average assets (adjusted for one-time non-interest expense items)

 

0.97

%

 

 

0.86

%

 

 

0.85

%

 

 

1.00

%

 

 

1.11

%

Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

GAAP net income

$

12,912

 

 

$

26,915

 

 

$

46,743

 

 

$

58,085

 

 

$

49,726

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(1,024

)

 

 

8,946

 

 

 

(725

)

 

 

19,032

 

 

 

15,651

 

Provision (benefit) for credit losses

 

28,297

 

 

 

21,194

 

 

 

17,066

 

 

 

18,121

 

 

 

17,070

 

Provision (benefit) for credit losses on unfunded commitments

 

1,208

 

 

 

(664

)

 

 

642

 

 

 

1,594

 

 

 

430

 

Severance expense

 

—

 

 

 

1,595

 

 

 

659

 

 

 

2,560

 

 

 

—

 

Impairment loss on investment securities

 

51,319

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Legal settlement

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

(160

)

 

 

26,678

 

 

 

(394

)

 

 

744

 

 

 

75

 

Derivative credit valuation adjustment

 

270

 

 

 

(407

)

 

 

226

 

 

 

(58

)

 

 

222

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

183

 

 

 

500

 

Unrealized (gain) on equity method investments

 

—

 

 

 

(389

)

 

 

—

 

 

 

(11,041

)

 

 

—

 

Unrealized losses on loans held for sale

 

667

 

 

 

147

 

 

 

607

 

 

 

—

 

 

 

—

 

Core pre-tax pre-provision net income

$

93,489

 

 

$

84,224

 

 

$

64,824

 

 

$

89,220

 

 

$

83,674

 

 

 

 

 

 

 

 

 

 

 

One-time non-interest expense items recorded in 2024 (after-tax):

 

 

 

 

 

 

 

 

 

Deposit servicing fees prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,106

 

FDIC premiums prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,208

 

Non-income taxes prior to 2024

 

—

 

 

 

—

 

 

 

(2,997

)

 

 

—

 

 

 

—

 

Total one-time non-interest expense items

 

—

 

 

 

—

 

 

 

(2,997

)

 

 

—

 

 

 

11,314

 

Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)

$

93,489

 

 

$

84,224

 

 

$

61,827

 

 

$

89,220

 

 

$

94,988

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

22,314,963

 

 

$

22,179,970

 

 

$

21,230,404

 

 

$

20,985,203

 

 

$

21,335,229

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax pre-provision ROAA

 

1.70

%

 

 

1.51

%

 

 

1.21

%

 

 

1.71

%

 

 

1.58

%

 

 

 

 

 

 

 

 

 

 

Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)

1.70

%

1.51

%

1.16

%

1.71

%

1.79

%

Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

GAAP net income to common shareholders

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

45,926

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

Severance expense

 

—

 

 

 

1,198

 

 

 

540

 

 

 

1,928

 

 

 

—

 

Impairment loss on investment securities

 

39,875

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Legal settlement

 

—

 

 

 

157

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

(124

)

 

 

20,035

 

 

 

(322

)

 

 

561

 

 

 

57

 

Derivative credit valuation adjustment

 

210

 

 

 

(306

)

 

 

185

 

 

 

(44

)

 

 

169

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

380

 

Unrealized (gain) on equity method investments

 

—

 

 

 

(292

)

 

 

—

 

 

 

(8,316

)

 

 

—

 

Unrealized losses on loans held for sale

 

518

 

 

 

110

 

 

 

498

 

 

 

—

 

 

 

—

 

Core earnings

$

50,002

 

 

$

44,168

 

 

$

43,838

 

 

$

48,567

 

 

$

46,532

 

 

 

 

 

 

 

 

 

 

 

One-time non-interest expense items recorded in 2024 (after-tax):

 

 

 

 

 

 

 

 

 

Deposit servicing fees prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,405

 

FDIC premiums prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,200

 

Non-income taxes prior to 2024

 

—

 

 

 

—

 

 

 

(2,457

)

 

 

—

 

 

 

—

 

Total one-time non-interest expense items

 

—

 

 

 

—

 

 

 

(2,457

)

 

 

—

 

 

 

8,605

 

Adjusted core earnings (adjusted for one-time non-interest expense items)

$

50,002

 

 

$

44,168

 

 

$

41,381

 

 

$

48,567

 

 

$

55,137

 

 

 

 

 

 

 

 

 

 

 

Average total common shareholders’ equity

$

1,730,910

 

 

$

1,683,838

 

 

$

1,636,242

 

 

$

1,576,595

 

 

$

1,529,211

 

 

 

 

 

 

 

 

 

 

 

Core return on average common equity

 

11.72

%

 

 

10.44

%

 

 

10.66

%

 

 

12.39

%

 

 

12.24

%

 

 

 

 

 

 

 

 

 

 

Adjusted core return on average common equity (adjusted for one-time non-interest expense items)

 

11.72

%

 

 

10.44

%

 

 

10.06

%

 

 

12.39

%

 

 

14.50

%

Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

GAAP net income to common shareholders

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

45,926

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(1,024

)

 

 

8,946

 

 

 

(725

)

 

 

19,032

 

 

 

15,651

 

Provision (benefit) for credit losses

 

28,297

 

 

 

21,194

 

 

 

17,066

 

 

 

18,121

 

 

 

17,070

 

Provision (benefit) for credit losses on unfunded commitments

 

1,208

 

 

 

(664

)

 

 

642

 

 

 

1,594

 

 

 

430

 

Severance expense

 

—

 

 

 

1,595

 

 

 

659

 

 

 

2,560

 

 

 

—

 

Impairment loss on investment securities

 

51,319

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Legal settlement

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

(160

)

 

 

26,678

 

 

 

(394

)

 

 

744

 

 

 

75

 

Derivative credit valuation adjustment

 

270

 

 

 

(407

)

 

 

226

 

 

 

(58

)

 

 

222

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

183

 

 

 

500

 

Unrealized (gain) on equity method investments

 

—

 

 

 

(389

)

 

 

—

 

 

 

(11,041

)

 

 

—

 

Unrealized losses on loans held for sale

 

667

 

 

 

147

 

 

 

607

 

 

 

—

 

 

 

—

 

Core pre-tax pre-provision net income available to common shareholders

$

90,100

 

 

$

80,575

 

 

$

61,018

 

 

$

85,435

 

 

$

79,874

 

 

 

 

 

 

 

 

 

 

 

One-time non-interest expense items recorded in 2024 (after-tax):

 

 

 

 

 

 

 

 

 

Deposit servicing fees prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,106

 

FDIC premiums prior to 2024

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,208

 

Non-income taxes prior to 2024

 

—

 

 

 

—

 

 

 

(2,997

)

 

 

—

 

 

 

—

 

Total one-time non-interest expense items

 

—

 

 

 

—

 

 

 

(2,997

)

 

 

—

 

 

 

11,314

 

Adjusted core pre-tax pre-provision net income available to common shareholders

$

90,100

 

 

$

80,575

 

 

$

58,021

 

 

$

85,435

 

 

$

91,188

 

 

 

 

 

 

 

 

 

 

 

Average total common shareholders’ equity

$

1,730,910

 

 

$

1,683,838

 

 

$

1,636,242

 

 

$

1,576,595

 

 

$

1,529,211

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax pre-provision ROCE

 

21.11

%

 

 

19.04

%

 

 

14.84

%

 

 

21.79

%

 

 

21.01

%

 

 

 

 

 

 

 

 

 

 

Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)

 

21.11

%

 

 

19.04

%

 

 

14.11

%

 

 

21.79

%

 

23.98

%

Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp

 

 

 

 

 

(Dollars in thousands, except per share data)

Q1 2025

Q4 2024

Q3 2024

Q2 2024

Q1 2024

GAAP net interest income

$

167,446

 

$

167,821

 

$

158,545

 

$

167,653

 

$

160,385

 

 

 

 

 

 

 

GAAP non-interest income (loss)

$

(24,490

)

$

(391

)

$

8,557

 

$

31,037

 

$

21,231

 

(Gains) losses on investment securities

 

(160

)

 

26,678

 

 

(394

)

 

744

 

 

75

 

Derivative credit valuation adjustment

 

270

 

 

(407

)

 

226

 

 

(58

)

 

222

 

Unrealized (gain) on equity method investments

 

—

 

 

(389

)

 

—

 

 

(11,041

)

 

—

 

Unrealized losses on loans held for sale

 

667

 

 

147

 

 

607

 

 

—

 

 

—

 

Impairment loss on investment securities

 

51,319

 

 

—

 

 

—

 

 

—

 

 

—

 

Core non-interest income

 

27,606

 

 

25,638

 

 

8,996

 

 

20,682

 

 

21,528

 

Core revenue

$

195,052

 

$

193,459

 

$

167,541

 

$

188,335

 

$

181,913

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP non-interest expense

$

102,771

 

$

110,375

 

$

104,018

 

$

103,452

 

$

99,169

 

Severance expense

 

—

 

 

(1,595

)

 

(659

)

 

(2,560

)

 

—

 

FDIC special assessment

 

—

 

 

—

 

 

—

 

 

(183

)

 

(500

)

Legal settlement

 

—

 

 

(209

)

 

—

 

 

—

 

 

—

 

Core non-interest expense

$

102,771

 

$

108,571

 

$

103,359

 

$

100,709

 

$

98,669

 

 

 

 

 

 

 

One-time non-interest expense items recorded in 2024:

 

 

 

 

 

Deposit servicing fees prior to 2024

 

—

 

 

—

 

 

—

 

 

—

 

 

(7,106

)

FDIC premiums prior to 2024

 

—

 

 

—

 

 

—

 

 

—

 

 

(4,208

)

Non-income taxes prior to 2024

 

—

 

 

—

 

 

2,997

 

 

—

 

 

—

 

Total one-time non-interest expense items

 

—

 

 

—

 

 

2,997

 

 

—

 

 

(11,314

)

Adjusted core non-interest expense

$

102,771

 

$

108,571

 

$

106,356

 

$

100,709

 

$

87,355

 

 

 

 

 

 

 

Core efficiency ratio (1)

 

52.69

%

 

56.12

%

 

61.69

%

 

53.47

%

 

54.24

%

 

 

 

 

 

 

Adjusted core efficiency ratio(adjusted for one-time non-interest expense items) (2)

 

52.69

%

 

56.12

%

 

63.48

%

 

53.47

%

 

48.02

%

(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.

Tangible Common Equity to Tangible Assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

GAAP total shareholders’ equity

$

1,864,560

 

 

$

1,836,683

 

 

$

1,801,180

 

 

$

1,746,865

 

 

$

1,691,617

 

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

$

1,723,137

 

 

$

1,695,260

 

 

$

1,659,757

 

 

$

1,605,442

 

 

$

1,550,194

 

 

 

 

 

 

 

 

 

 

 

GAAP total assets

$

22,423,044

 

 

$

22,308,241

 

 

$

21,456,082

 

 

$

20,942,975

 

 

$

21,347,367

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible assets

$

22,419,415

 

 

$

22,304,612

 

 

$

21,452,453

 

 

$

20,939,346

 

 

$

21,343,738

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

7.7

%

 

 

7.6

%

 

 

7.7

%

 

 

7.7

%

 

 

7.3

%

Tangible Book Value per Common Share - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except share and per share data)

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

Q1 2024

GAAP total shareholders’ equity

$

1,864,560

 

 

$

1,836,683

 

 

$

1,801,180

 

 

$

1,746,865

 

 

$

1,691,617

 

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

$

1,723,137

 

 

$

1,695,260

 

 

$

1,659,757

 

 

$

1,605,442

 

 

$

1,550,194

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

31,479,132

 

 

 

31,346,507

 

 

 

31,342,107

 

 

 

31,667,655

 

 

 

31,521,931

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

$

54.74

 

 

$

54.08

 

 

$

52.96

 

 

$

50.70

 

 

$

49.18

 

 

Jordan Baucum, Head of Corporate Communications 951-608-8314

Source: Customers Bancorp, Inc.